MPs may now accept gifts to a value of R1500 without the need to declare them. This amount is perfectly rigged to ensure that a presentation pack of Johnny Walker Blue with matching crystal glasses will slip beneath the radar. This gift price ceiling was last set in 2001 at a mere R350 which demonstrates that the actual as opposed to official rate of inflation these past 6 years has averaged 27%pa. What poor timing to reveal this information as the civil servant’s strike continues to bicker about single digit percentage wage increases.
At least two other organisations made the papers this week with their own sob story about not having enough money. Unlike the teachers and nurses, they both fail to make a convincing case for their existence let alone deserving any more cash, particularly and especially from the taxpayers. Both Business South Africa and Proudly South African seek membership subscriptions for most of their income and clearly their members have come to realise that they were not getting value for money.
THE national broadcaster has been handed a few hard lessons on this topic of value for money recently. In the finest tradition of snoozing and losing which they attempted to disguise with arrogant bluster they failed to acquire broadcast rights for the country’s popular domestic soccer matches. This will not have escaped the attention of the big spending advertisers so I guess a TV licence fee increase won’t be far off. No mention of saving money by firing the hopeless sports staff.
Continuing in the vein of matters which I think are interesting and scary but which the markets are laughing off as irrelevant, comes the USD3.2 bn loan that Bear Sterns (not the most propitious name for a finance house) is borrowing from Peter to pay Paul. This cash, they hope, will prevent Paul from running down to the market with a basket of bonds to see if there are any buyers for the bonds and if so, at what price. Bear Sterns obviously feel that this trip is unwise. The basket might turn out to be worth more than its contents. And if the market hears about this then quite a few houses of cards, might fall down. One of these houses is a hedge fund named “The High-Grade Structured Credit Strategies Enhanced Leverage Fund” that has reportedly already lost wads of money for its investors. Frankly, they really should have known better than to invest in something with a name like that. Watch this space.
During the 100 minute long close out event on Thursday, JSE turnover was running at around R3bn per hour. This rate is more than double the average normal rate and thankfully the systems seem to have survived. I suppose that one really ought to take this as a sign to load up on shares in the JSE itself, but I personally have a few prejudices about this particular monopoly and furthermore it is dreadfully overvalued already. The All Share did indeed set a new high during the futures close-out but has now gone to sleep as the aftermath of the close-out party and the advent of half term and tomorrow’s test match in Durban has cleared many dealing rooms.
As well as being the venue for a Botha family reunion, the test match will be an exciting event. Let’s hope that none of the crowd chooses to repeat history and pop down on to the field and attempt to adjust the ref’s attitude. Did you see Chairman Blatter and the SA Soccer worthies beaming at the world from beneath their shiny and personalised hard hats at the site of a stadium this week? There didn’t seem to be any construction yet above knee height, so just what was the headgear for? Flying pigs?
James Greener
22nd June 2007
