Tuesday 2 October - DAILY NEWS SUMMARY
Pretoria News (www.pretorianews.co.za) Page 2 – Meghan attends UJ round-table talk
Page 11 – Activity in manufacturing sector hits 10-year low
The Star (www.iol.co.za)
Page 1 – FIRE DEVASTATES EKURHULENI COMMUNITY
Page 18 – Vehicle sales figures in S Africa continue their downward trend
Business Day (www.businesslive.co.za)
Page 1 – Markus Jooste fails to stop R740m claim Page 1 – Fiscal picture has deteriorated sharply — Bank
Citizen (www.citizen.co.za) Page 1 – Spooks’ lives in danger Page 1 – Boks face ‘do-or-die’ clash
Page 14 – N Korea-US nuke talks to resume News24 (www.news24.co.za)
Golfer gets 3-year ban for middle finger gesture
Meghan attends UJ round-table talk
ITUMELENG ENGLISH/African News Agency (ANA)BRITAIN’s Meghan, Duchess of Sussex, visits the University of Johannesburg, Kingsway Campus yesterday. |
THE HUGELY popular Duchess of Sussex Meghan yesterday graced the University of Johannesburg (UJ) where she addressed a selected group of students in a cordoned off area.
Lots of anticipation was evident on campus, but for some the excitement soon turned into disappointment once the students realised they would not be able to mingle with the famous royal who played Rachel Zane on the American legal drama
She retired from acting but remained an outspoken feminist who often addresses issues of gender inequality
A UJ final year journalism student Thembelihle Qwabe said while she felt sad, she also understood that the Duchess of Sussex needed to be protected.
She had been looking forward to hearing a message of hope from the royal who is of mixed heritage.
Qwabe complained that some students were not allowed to speak to, or interact with the royal.
“It is pretty sad that we didn’t get an opportunity to listen to her, especially for us as black African women. At first, we heard that she was coming but we thought it was just a rumour as nothing was communicated,” said Qwabe.
She said normally, events were announced by the university well in advance through a blackboard system.
“For us as students, nothing was arranged – she was simply brought through the VIP entrance with a lot of security. There were journalists from all over the world. Afterwards, she was just rushed off to her car surrounded by security and that was it.”
Qwabe said students were nonetheless still excited that she graced the institution with her presence.
During her visit to the UJ Kingsway Campus, Meghan took part in a round-table discussion with the Association of Commonwealth Universities.
She was met by director of the British Council in South Africa Susana Glavan, vice- chancellor of the university Professor Tshilidzi Marwala, and Joanna Newman, secretary- general of the Association of Commonwealth Universities.
The duchess was later expected to visit a Youth Employment Services hub in Tembisa, meet Graça Machel at the British High Commissioner’s residence and finally, President Cyril Ramaphosa.
Prince Harry was in Malawi and was only expected to join Meghan and their son Archie in South Africa today. | African News Agency (ANA)
Activity in manufacturing sector hits 10-year low
PMI drops to 10-year low as weak demand forces industry to cut back on production amid a gloomy picture
ACTIVITY in the country’s manufacturing sector tumbled to a 10-year low as worries about stagnant growth forced the industry to cut back on production on lower demand.
Absa yesterday reported that its Purchasing Managers’ Index (PMI) dropped to its lowest level since the 2008/09 recession, declining to 41.5 index points last month from 45.7 points in August.
This was the second consecutive decline and brought the index more than 10 points below a recent high of 52.1 points in July.
When the July print was released, Absa cautioned that the robust reading was unlikely to be sustained as the subdued growth in Europe and the US-China trade spat would hurt exports.
The new sales orders index recorded the biggest decline of the PMI’s five subcomponents, falling by 7.8 points to reach an almost one-year low in September.
Purchasing inventories and business activity also saw a sharp drop.
All three indices fell by more than six points to reach levels around 40 points.
The business activity index fell by 6.5 points to 39.3 points, the lowest level in just over a year, and suggested that output remained under significant pressure.
In July, manufacturing production fell 1.1 percent after a 3.6 percent contraction in June, while the August output data which is due next week was expected to show another decline.
Absa said that it was unlikely that the manufacturing output would improve on a sustained basis at a time when trading partners were struggling.
“Indeed, while the September PMI already paints a dismal picture of current conditions, respondents expect the environment to worsen further going forward,” it said.
The poor output comes against a backdrop of growing concerns about the health of the global economy and, in particular, South Africa’s trading partners in Europe.
Investec economist Kamilla Kaplan said that the declining PMI for September suggested weak actual manufacturing production for the third quarter.
“The deterioration in operating conditions in the manufacturing sector were driven by a more rapid pace of contraction in production, new business and inventories amid subdued domestic demand and weakening global growth,” Kaplan said.
“Against the backdrop of lower demand and a cutback in production, manufacturers continued to reduce workforce numbers and business confidence dipped,” she added.
In contrast, the supplier deliveries subcomponent edged back above 50 points after dropping below the level in August.
The employment subcomponent rose slightly, but remained weaker at 39.6 points.
The Steel and Engineering Industries Federation of Southern Africa (Seifsa) said that the deterioration in overall business activity in the broader manufacturing sector was
disappointing.
Seifsa economist Marique Kruger said that manufacturers were still struggling amid low business and consumer confidence.
“Worryingly, the trend in the majority of the sub-indices deteriorated in September 2019 when compared with August 2019, with the business activity sub-index (at 39.3 points) and the inventories sub-indices (at 39.6 points) performing the worst.
“However, the best performing sub-index was the supplier performance sub-index, rising from 48.7 points in August 2019 to 51.4 points in September 2019,” Kruger said.
But Kruger said that notwithstanding the decline, Seifsa remained hopeful that the performance of the sub-indices would recover and eventually improve the composite seasonally-adjusted PMI for this month.
FIRE DEVASTATES EKURHULENI COMMUNITY
Rebuilding under way at Ga Max informal settlement
| RASHID KHOZA African News Agency (ANA)MIRIAM Mabena, who has lived at the informal settlement in Pomona, Kempton Park since 1987, sits outside her razed shack yesterday.
RESIDENTS of an informal settlement in Pomona, Kempton Park, stand among their razed shacks following a blaze on Monday night.
THE process of rebuilding is under way after a fire engulfed almost 200 shacks at Ga Max informal settlement in Pomona. Most of the residents at the Ekurhuleni informal settlement were left with nothing after the raging fire consumed the little they had.
A devastated Miriam Mabena, who has been living on the plot since 1987, lost a house which was situated among the shacks.
“I lived here with my husband and grandchild, all my children grew up here. I was the first person to live on this plot of land,” said Mabena.
She heard of the fire on her way back home from work and quickly ran to rescue what she could, but was only able to retrieve her and her grandchild’s identity documents.
“My house is gone, it’s been here even before the shacks arrived. All my food, my clothes, my important documentation has all gone up in smoke,” she said.
Caswell Ramokome, 26, a construction worker, said he too was alerted to the blaze from friends as he was heading back home.
“I was making my way home and heard of the fire. This has really finished my brother and me. He was supposed to have taken money back home to my parents, now this happens,” said Ramokome.
Sitting in front of the springs of his burnt bed, he said they were both left with nothing – they had to beg from friends at a neighbouring informal settlement for a place to lay their heads.
“It’s the end of the month, we bought groceries thinking that they’d last us for a month. We have to start all over, when the next end of the month will come,” Ramokome said.
Dickson Sibanda, 61, was yesterday removing some of the poles that used to hold together his four shacks. He said he had been living at the settlement for more than nine years.
“There used to be almost four different families that occupied the homes. There were six people who lived here,” he said.
He said that to rebuild would cost him almost R4 000 and he survived on a grant so it would take time to rebuild.
Spokesperson for Ekurhuleni Disaster and Emergency Management Services, William Ntladi, said the preliminary investigations from information they received suggested the fire was caused by a gas stove left unmonitored.
“When the person was cooking, the person left the area, leaving with his vehicle. The pot which was left on the stove began burning. This led to the cylinder exploding,” he said.
The fire department arrived after a number of shacks were engulfed by flames.
“In total, we had about nine fire
“One shack during the blaze still had a person trapped inside, the shack was burning but through our efforts we rescued the person. There are currently no injuries or casualties,” said Ntladi.
Ekurhuleni mayor Mzwandile Masina said that the rebuilding process was already under way and affected residents would be housed at community halls around the area to get out of the chilly conditions at night.
“As of last night we’ve provided three community halls around Kempton Park, where some community members slept. We’ll be providing food and we want to make sure people move from the plot,” he said.
He said the city had a programme that dealt with informal settlements where work was already showing positive results.
“Unfortunately, this land is privately owned, there’s no way we can deploy public
infrastructure. We’re looking at an alternative where the residents will be relocated,” he said.
Vehicle sales figures in S Africa continue their downward trend
Dawie Roodt
VEHICLES sales in South Africa remained muted in September with a 0.9 percent aggregate decline.
Data from the National Association of Automobile Manufacturers of South Africa (Naamsa) yesterday showed the industry sold 439 units less than the 49 630 sold at the same time last year.
Naamsa said the industry, which has been in a slide for several years, was saved blushes by the car rental industry, whose uptake in the volume passenger car segment provided an unexpected uptick. But the sales represented the largest volume month for the year so far and were the second-best performing month year-onyear after April’s 0.7 percent increase.
Monthly export sales registered a modest decline compared to the high base level of the corresponding month last year but the upward momentum remains strong.
Light commercial vehicles, bakkies and mini-buses sold 13 473 units during the period from 14 367 last year.
Medium and heavy trucks reflected a mixed performance with 790 and 1 789 units respectively, reflecting an increase of 14 percent from last year.
“Although vehicle exports declined during the month compared to the corresponding month of last year, exports remain the main driver of vehicle production activity in the domestic market. The vehicle export momentum remains upward with the industry on track to achieve a new record in 2019,” Naamsa said.
Naamsa said that it expected consumers and businesses will continue to delay purchasing decisions on big items such as new vehicles until there is greater economic stability all around and they are more optimistic about their economic future.
“Although the economy grew in the second quarter of the year off the first quarter’s very low base, the underlying pace of activity remains weak. The second consecutive large fall in the Absa Purchasing Managers’ Index (PMI), from 45.7 index points in August 2019 to 41.6 index points in September 2019, reiterated the weak underlying demand conditions. The Absa PMI index tracking business conditions in six months’ time also declined, expecting the environment to worsen further going forward”, Naamsa said.
Ghana Msibi, WesBank executive head of the motor division, said the bank’s own inflation data largely mirrored that of the general economy, with an average deal size slightly above the South African number.
“This infers that new and used car price inflation falls within the general affordability challenge for cashstrapped South African households. Of greater concern is the need for South Africans to extend their car repayment contracts towards the maximum 72 months, while adding balloon payments to reduce the monthly instalment amount,” he said.
ESKOM’S mounting debt woes are posing the risk of crippling the country’s stagnant
economy further as the power utility’s credit rating has been pushed deeper into the abyss with a negative outlook, economists said yesterday.
This follows Fitch Ratings Agency on Monday downgrading Eskom’s stand-alone credit rating by one notch to junk, citing weakening revenue growth, as well as margin expectations resulting from lower tariff awards, and higher primary energy costs than previously expected.
Added to this is the possibility of Independent Power Producers (IPP) costs increasing by about 80 percent by 2023. Fitch said Eskom’s weak liquidity, high leverage and low interest coverage credit metrics were among the weakest in the peer group, which includes the Namibia Power Corporation. The rating agency said that while Eskom was still faced with financial and operational challenges, the explicit government support for the company was positive and will mitigate its liquidity challenges.
The government in a Special Appropriation Bill has allocated an additional R59 billion to Eskom over two years, to be paid in two tranches of R26bn in 2019/20 and R33bn in 2020/21.
Efficient Group’s chief economist, Dawie Roodt, said the economic outlook was getting increasingly bleak, with Eskom’s record loss of R20.7bn and spiralling government debt.
Roodt said South Africa’s growing fiscal deficit had also attracted attention from all the ratings agencies.
“One of my biggest fears at the moment is that Eskom is technically bankrupt, because its income from electricity sales is not covering its operating costs, especially from its vastly bloated workforce. All attempts to reduce its workers has been met with stern opposition from unions,” Roodt said.
“It seems likely to me, given our economic situation, that ratings agency Moody’s will downgrade South Africa’s sovereign debt to sub-investment grade later in the year. It has expressed concern over the vast sums of money needed to bail out stateowned entities and the lack of growth in the economy.”
Eskom has growing debt of more than R400bn and is increasingly unable to meet its interest obligations, but aims to borrow a further R46bn in the 2020 financial year.
The government is in the process of appointing a new chief executive and has appointed a chief restructuring officer for Eskom in a bid to implement a turnaround plan and optimise the company.
Fitch also downgraded the country’s outlook from stable to negative, citing concerns about the government’s financial support of Eskom and low economic growth.
Eskom’s acting group chief executive, Jabu Mabuza, said they were continuing to engage with shareholder ministries on feasible options to transition Eskom to financial sustainability.
In his first weekly email to the nation, President Cyril Ramaphosa said on Monday that the government will finalise a clear economic growth strategy within the next few weeks, to build on the stimulus and recovery plan.
He said this strategy will draw on the many valuable contributions that have been made by South Africans on the discussion paper released by the National Treasury.
The discussion paper estimates that the government could raise about R450bn if it sold Eskom coal-power stations through a series of auctions.
But trade union federation Cosatu has yet again warned it will not back the ANC’s proposed solutions if they are based on the economic policy plan released by Finance Minister Tito Mboweni late last month aimed at stimulating growth.
Markus Jooste fails to stop R740m claim
• Lawsuit claims former CEO hid Steinhoff’s true financial health
Markus Jooste, the alleged mastermind behind SA’s biggest corporate fraud, has failed to stall a R740m damages claim.
The former CEO of Steinhoff, which is in the middle of cleaning up its balance sheet after uncovering a more than R100bn fraud in its accounts, lost a court application seeking to have Cape Town businessman Jaap du Toit’s case against him amended or dismissed as it lacked specific detail for him to plead.
Du Toit, on behalf of a Le Toit Trust, launched the lawsuit in 2018 against Jooste, accusing him of misrepresenting Steinhoff’s true financial health in 2015 when he persuaded the trust to exchange shares in investment heavyweight PSG for Steinhoff.
But Jooste, who is facing the music for the first time since the Steinhoff implosion in 2017, filed an application arguing that the claim was “vague and embarrassing ”— a legal term meaning that a case lacks specific detail to allow lawyers to present a defence.
In court papers obtained by Business Day, the high court in Cape Town dismissed with costs Jooste’s application, saying his exceptions “do not in any real sense bring an end to any distinct part of the case”.
Du Toit was one of three major shareholders in PSG who was persuaded to swap PSG shares for Steinhoff shares. The deal was intended to lift the global retailer’s stake in PSG to an allegedly more tax-efficient 25% from 20%.
Former banker GT Ferreira and co-founder of Coronation Fund Management Thys du Toit (no relation to Jaap du Toit) were the other two investors.
Ferreira has launched separate legal action relating to the controversial share swap, while Du Toit apparently covered his exposure through a put option.
In June, Steinhoff launched a civil claim to recoup about R870m in remuneration and bonuses from the former CEO. Jooste is also the target of a class action launched in the Netherlands. Separately, Steinhoff launched a court application to consolidate all of the legal claims it is facing in a move described by some claimants as a cynical attempt to delay court action against the retail giant.
“Joining the claimants is not going to accelerate the process, and that is probably not the objective they [Steinhoff] had in mind,” one of the claimants, who did not want to be named, told Business Day on Tuesday.
A second claimant, who also wanted to remain anonymous, said it would be impossibly complicated to join the parties involved as they each had different claims against Steinhoff.
The largest claim against Steinhoff was launched by former chair Christo Wiese in April 2018.
Wiese’s private investment company, Titan, is suing Steinhoff for R59bn. The claim relates to the 2015 transaction which saw Titan exchange its 52% stake in Pepkor for 609-million Steinhoff shares. In addition, in 2016 Titan subscribed for shares in Steinhoff to enable it to meet its debt obligations at the time of its acquisition of Mattress Firm in the US.
Steinhoff has identified the many legal challenges facing it as the most significant risk to its continued survival. The company did not respond to a request for comment on its
consolidation application.
THE LARGEST CLAIM AGAINST STEINHOFF WAS LAUNCHED BY FORMER CHAIR CHRISTO WIESE
Fiscal picture has deteriorated sharply — Bank
• Reserve Bank says restoring confidence requires the implementation of reforms with vigour
Lesetja Kganyago
The SA Reserve Bank highlighted the country’s deteriorating fiscal circumstances, thanks largely to bailouts for ailing parastatals, as one of the main risks to the economy, in its latest monetary policy review released on Tuesday. Restoring confidence in the SA economy is critical, said governor Lesetja Kganyago.
The SA Reserve Bank highlighted the country’s deteriorating fiscal circumstances, thanks largely to bailouts for ailing parastatals, as one of the main risks to the economy, in its latest monetary policy review released on Tuesday
This, as well as risks posed by the slowdown in global trade and the possibility of a global recession, could worsen an “already difficult domestic growth situation”, the Bank said.
Restoring confidence in the South African economy was critical, said Reserve Bank governor Lesetja Kganyago.
This could be done, he said, but it required the implementation of reforms.
“To restore confidence you can’t just make pronouncements,” said Kganyago.
“What you said you are going to implement, you have got to implement and be seen to
implement with vigour and demonstration [of] progress”. Although the Bank typically prefers not to comment on fiscal policy, it underscored the effect of deteriorating state finances, along with issues such as policy uncertainty, on the ability of monetary policy to support growth.
The Bank had been relatively successful in using monetary policy to curb inflation as well as inflation expectations, which were moving increasingly to the midpoint range of 4.5%. But mounting fiscal risks are countering the banks success in reducing inflation
The Bank’s review comes as finance minister Tito Mboweni is due to give his medium-term budget policy statement (MTBPS) at the end of the month. Mboweni is expected to detail the effects of poor economic growth and additional support for state-owned entities (SOEs), particularly Eskom on government’s finances.
Since the previous review, published in April, the fiscal picture “has deteriorated sharply”, the Bank said.
The government’s budget deficit is now expanding again, it said. Economists have warned that the government’s budget deficit could reach 6% of GDP. This is significantly higher than the 4.7% forecast for 2019/2020 in February’s budget.
Similarly, the debt-to-GDP ratio is also expected to worsen to about 58%, up from February’s forecast of 56.2%
The country’s potential growth rate had slumped to below 1% in the context of supply constraints — particularly electricity shortages — and depressed business confidence.
Demand had also weakened, thanks to higher taxes and slowing wage growth among other factors, the Bank said.
“But the economy has also been buffeted by supply side shocks, and sentiment is suffering from ongoing policy uncertainty,” the Bank said. “Where monetary policy enjoys margin for manoeuvre, weak demand is a problem that can be addressed with interest rates. Supply shocks and policy uncertainty, however, are beyond the reach of the SA Reserve Bank.”
There are risks that a change in the environment could force an “outright-tight” policy stance, the Bank warned. “To control these risks, SA needs reforms,” it said, which are likely to entail, “short-term pain ... The cost of postponing reforms further, however, is rising at an accelerated rate.”
Global prospects, meanwhile, were clouded by trade tensions which had disrupted economic activity this year, and could precipitate a global recession the bank noted.
Trade developments notwithstanding, advance economies were generally health including in terms of low unemployment rates. But growth in emerging markets was underperforming badly thanks to rising debt levels, particularly at government level, and dollar strength.
SUPPLY SHOCKS AND POLICY UNCERTAINTY, HOWEVER, ARE BEYOND THE REACH OF THE SA RESERVE BANK
Spooks’ lives in danger
REPORT: EFF PUT SECRET FINDING ON SARS ROGUE UNIT IN PUBLIC DOMAIN
The release of a secret report on the ‘rogue unit’ at the SA Revenue Service into the public domain, endangers agents, operations, and reveals to the world how the country conducts its investigations, state and security minister tells court in bid to stop it.
It endangers intelligence officers and operations, minister tells court in bid to stop it.
The release of a secret, classified report on the “rogue unit” at the SA Revenue Service (Sars) into the public domain, endangers agents, operations, and reveal to the world how South Africa conducts its investigations.
That’s according to State Security Minister Ayanda Dlodlo’s affidavit to the High Court in Pretoria when she applied to prevent Public Protector Busisiwe Mkhwebane from getting her hands on it.
The 2014 office of the inspector-general of intelligence (IGI) report recently also became part of the record at the Commission of Inquiry into State Capture – and on Monday became part of the EFF’s papers in its response to the hate speech charges laid against its leader, Julius Malema, and his deputy Floyd Shivambu by Public Enterprises Minister Pravin Gordhan.
As for what’s next, the SSA is not saying – but it is still classified.
“Unfortunately, I cannot comment on the operational details regarding members,” Dlodlo’s spokesperson, Mava Scott, told The Citizen.
“With regard to publication of classified information, the law is crystal clear that any person who possesses or publishes classified information is in breach of the law.
“Protection of the Information Act, 84 of 1982, as amended in 2013 by the General Intelligence Laws Amendment Act, 11 of 2013, is instructive here.”
The report now forms part of the Malema v Gordhan hate speech trial, while Dlodlo’s action with the public protector is still ongoing, Scott said.
“In the papers, Gordhan’s representatives asked for the IGI report to be expunged from the EFF’s papers on the basis that it is not relevant to the matter,” Scott said.
“The judge refused. This does not mean that the judge declassified the report.”
In a statement following the plastering of the judgment on the internet, EFF spokesperson Mbuyiseni Ndlozi said they welcomed “the opportunity given by this judgment for the IGI rogue unit report to be deliberated in the open public court”.
Malema has accused Gordhan of being corrupt, a dog of white monopoly capital, and of hating black people.
Ndlozi believed the report found “Pravin Gordhan ran an illegal intelligence unit within Sars”.
“They determined that he must be criminally prosecuted,” Ndlozi said.
In his counter application to Dlodo, Malema noted the Constitutional Court had made it clear the state had a “heavy burden” when it tried to prevent the disclosure of information on the basis of secrecy.
“Endangering whose lives? Exposing which agents? Revealing what intelligence? The minister does not say,” Malema said in his affidavit in the matter.
In response to whether they will be taking action against the EFF for disseminating the report, Scott said: “We will decide what to do once our matter with the public protector has been finalised.”
No reasons were given by the Equality Court presiding officer for allowing the secret document into the public domain.
Endangering whose lives? Exposing which agents?
Boks face ‘do-or-die’ clash
RASSIE: NO SECOND CHANCES FOR BOKS AGAINST ITALY Willemse to fly to Japan to replace the injured Jesse Kriel.
Picture: AFPTHE BEAST. Springbok prop Tendai Mtawarira will start their crucial Rugby World Cup clash against Italy in Shizuoka on Friday.
Springbok coach Rassie Erasmus considers this week’s clash against Italy as a do-or-die eliminator for a place in the Rugby World Cup playoffs. While the Boks had dropped a game in their opener against New Zealand, Italy had secured big bonus-point wins over Namibia and Canada, and Erasmus admitted Friday’s clash with the Azzurri in Shizuoka would be crucial.
“We are at the stage already where there are no second chances,” he said. “That’s a message we have been emphasising to the players this week.”
Erasmus reverted to his firstchoice team yesterday after a ‘B’ side thumped Namibia in their second pool match last week.
With centre Jesse Kriel being forced to return home after failing to recover from a hamstring injury, joining prop Trevor Nyakane among the tournament casualties, he was set to be replaced by utility back Damian Willemse.
Currently on loan to Saracens, Willemse was expected to link up with the squad tomorrow, joining front-rower Thomas du Toit among their reinforcements.
Surprisingly, Erasmus named hooker Malcolm Marx, lock Franco Mostert and prop Steven Kitshoff on the bench, with Bongi Mbonambi, Lood de Jager and Beast Mtawarira retaining their starting places after making an impact in the win over Namibia.
It was Erasmus’ call to go into this Test with just two backline replacements, however, which had created the most interest following the team announcement.
“Italy have a very good pack and put a lot of effort in their set phases,” Erasmus said.
“People may think it is a gamble to have only two back replacements, but we want to have plenty of ammunition for what is likely to be a major forwards battle.”
He was confident they had enough versatility among their backs, who could cover a number of positions, and he felt they had planned for enough scenarios to give his side the edge.
It was clear from the Namibia clash that the Boks would continue to be spearheaded by their forwards, taking a rolling maul approach in their run for the playoffs, though they were also hoping to execute better with their kicking strategy.
“It’s a 23-player game these days and the players who come on will be expected to contribute almost as much in game time as those who start among the front rowers,” Erasmus said.
“But for this game we are asking the players we have chosen to start to set the tone.”
N Korea-US nuke talks to resume
– North Korea said yesterday it would hold working-level nuclear talks with the US on Saturday, signalling the resumption of much-anticipated negotiations after the collapse of a summit in February.
The two sides agreed to have “preliminary contact” on October 4 and hold working-level negotiations the following day, the North’s Vice-Foreign Minister Choe Son Hui said in a statement that was carried by the official Korean Central News Agency. –
Golfer gets 3-year ban for middle finger gesture
Seoul - A South Korean golfer has been suspended for three years for sticking up his middle finger at the crowd over a cellphone camera noise, the Korea Professional Golfers' Association (KPGA) said on Tuesday.
Kim Bi-o reacted angrily after he was startled by the shutter sound of a smartphone camera which affected his shot at the 16th hole at Sunday's DGB Financial Group Volvik Daegu Gyeongbuk Open.
Kim, who leading by a stroke at the time, turned to the crowd and made the gesture before slamming his club on the ground in frustration.
The 29-year-old went on to win the tournament - becoming the first two-time winner on the tour in 2019 - and later apologised for losing his temper.
On Tuesday, Kim kneeled in front of television cameras as he fought back tears and apologised again after attending an emergency KPGA meeting over his action.
But the KPGA later said it had reached a unanimous decision to suspend the golfer for three years from the Korean tour with a fine of 10 million won ($8 350).
"Kim Bi-o damaged the dignity of a golfer with etiquette violation and inappropriate behaviour," it said in a statement.
Kim leads the tour in money and Player of the Year points, but the suspension means he will not be able to finish the season.
Kim, who has six professional wins to his name, played on the PGA Tour in 2011 after earning his place via Q-School. He also had two seasons on the second-tier Web.com tour.
