Some people have obviously made a new
years resolution to get as far away from the South African rand as possible. It
is being slaughtered and has lost almost 4% against the US dollar and 2%
against the pound sterling. The JSE index has also not started the year well,
which indicates that some of the sellers of rands are also sellers of shares.
Our self-awarded perception of being somehow special is being trashed and
handed back to us on a plate. Unfortunately the electioneering has got off to
an early and savage start and the words coming from the mouths of most
politicians are doing nothing to suggest that we are anything other than very ordinary.
Our president boasts that he used to
practice witchcraft against a large and loyal segment of taxpayers. The
minister of transport’s reaction to the shocking death toll on the roads this
holiday is to appoint a commission instead of firing every traffic cop. The
minister of higher education dismisses the idea of a pass mark for exams and so
insults and denigrates the amazing efforts of those pupils who did achieve the
incredibly poorly named bachelors pass. Another official reveals the truth
about the education system by suggesting that employers need to spend a year teaching
people stuff they never learned at school. Like reading and writing. Some
universities reportedly already have to do this.
There
has been widespread disregard for finance minister Gordhan’s request that
officials curb their lavish spending habits. Luxury wheels are still being
ordered with the excuse that The Ministerial Handbook allows it. The rewrite of
this pernicious and wholly unnecessary pamphlet has long been promised, but obviously
there is little incentive to do that quickly.
In fact that handbook should be replaced entirely
with a simple letter to all politicians and bureaucrats which says: “Congratulations on your appointment to this post.
Please remember at all times that you are a civil servant, employed by the
citizens of South Africa who pay your salary which includes all the allowances
provided for in law. Your employer is NOT responsible for any further
expenditure on your behalf including but not limited to personal accommodation,
transport, food, credit card bills, medical aid and provision for your
retirement. Like your fellow citizens you must meet those costs from your own
salary. Naturally as a taxpayer you may submit claims for all the permitted
deductions when filing your tax return. Remember to retain proof of all expenditures
to support these claims. Visits to the SARS offices must be in your own time. Should
you feel that your salary is insufficient remuneration for your skills and
efforts you are urged to resign and move to the private sector where, according
to your unions, the pay is far better. Thank you for serving the people of South Africa.”
Apparently research reveals that the majority
view amongst financial analysts in the US is that the economic recovery is
starting to happen. Inevitably there are some bears whimpering that they don’t
see it that way. Regular readers will be unsurprised to learn that I side with
those bears. Globally the amount of debt which looks as if it can never be
repaid continues to be a real, if very unfashionable, concern. There’s another
one of those unseemly squabbles about the US debt ceiling coming up and that
might unsettle investors.
And in this vein it will be interesting
to watch SANRAL, the beleaguered e-toll route operator when it comes back to
borrow in the bond market. Will it be able to show healthy cash flows capable
of servicing the loans or is their system unable to collect from the many disgruntled
road users?
The Australian cricketers arrive here in
a month. They seem unusually chipper and confident that the Proteas are “ripe for
the picking”. Certainly we have made it easier for them by not scheduling any
matches at the Wanderers bull ring – another mistake by the suits that run our
sports these days. Maybe we will need Jacob Zuma’s spells after all.
James Greener
Friday 10th January 2014
