The customs department enjoyed a late bonfire this week when they burned 1.2m “illegal cigarettes”. Their self-satisfaction extended to issuing a warning that “consumers (should be) wary of cigarettes being sold below the normal price.” Aside from the possibility of an unpleasant demise, what exactly is it that the said consumers should be wary of? Not paying tax to a deserving and worthy government? As an idle and wicked aside, one wonders how many civil servant smokers are delightedly buying the cheaper “illegal’ cigarettes and so depriving themselves of their own salaries?
Not to worry though. Some of the excise shortfall will have been made up with the R31.6m “administrative penalty” that was extracted from the nation’s motor dealers, who, it was decided, were not at fault for the fact that South Africa has about the most expensive cars in the world. But wait a minute. If there is any money coming back from these dealers for an administrative error or any other reason, surely it is the car buyers who should be receiving their share of the rather derisory fine? The state, after all, has already trousered the VAT on the high prices.
Back in the markets, it seems that the Insider Trading Inspectorate has morphed into the Directorate of Market Abuse with greater and wider powers than ever before. The word “abuse” sidesteps the worry that I have long held about the concept of “insider” which proved very difficult to define precisely. Nevertheless the new term is a little fierce when it really refers to those who feel unhappy upon learning that they have just bought expensive and sold cheap. Those who achieve the reverse transaction never feel abused I am sure. It really worries bureaucrats that investors could be gullible creatures who fall prey to their own greed and believe things which are very unlikely to be true. Like for example the “guarantee” that this share will go up or that there are no hidden costs. Quite why it is the state’s business is not clear. But now, merely by paying a small levy, the punters are assured of the ever-present vigilance of a guardian angel who will slay the dragon and retrieve their money. Well, sometimes so, perhaps.
Please don’t take this view as an expression of support for dishonesty of any kind. Because of the sums of money involved, this industry attracts more than its fair share of dodgy characters, some of whom are also to be found in the layers of regulation that are piled upon us. I merely observe that the truly deceived and deserving are rarely rescued from their plight which may have been caused by a mixture of naivety on their part and knavery on the industry’s part. Nothing is risk free – especially when it comes to money.
That’s is especially true in this sadly confused and abnormal society in which we are living. A wonderful restaurateur was murdered on Monday for the contents of the till and a cellphone. For more than a decade his pub has been the haunt of people in the markets and the media. Our shock and sympathies to his family and staff join thousands of fellow customers and friends. Ian Gillies’ death is an impossibly tragic affair. RIP my friend.
James Greener
9th December 2005
