All over the world governments and similar meddlesome and larcenous organisations have for decades felt that their nation’s iron and steel businesses are too strategic to be left to the whim of market forces. Locally the appalling policy of political resource allocation, together with an incomprehensible loyalty points system of Bs and Es are extra factors facing the industry. This week ArcelorMittal published a self-congratulatory announcement from which it appears they are going for double platinum status in that loyalty program. The deal itself is worth R9bn and the list of beneficiaries include impeccably well-connected names, some of whom may well prove useful in the small matter of a difficulty that the company has over some mineral rights.
One rather timid “proper” analyst has suggested that this deal might perhaps dilute existing shareholder earnings a tad! This improper analyst assures you that it already has. Who do you think has paid for the expensive advisors and sponsors who, after a full year on the job, have come up with a deal that still refers to vague entities such as “a women-led consortium”? This suggests that the scrap for the spoils will go on for some time yet. Interestingly, the document also asks the government to guarantee that all the loyalty points that Mittal should earn with this deal will not be cancelled if, at some stage in the future, the prize-winners sell their shares and run.
With even the Standard Bank worrying that “pressure on public finance will escalate” those folk who enhance their lifestyles by nibbling on the public purse will have to take larger bites as the purse begins to shrink. This development has been noted by the numerous civil service employees who have been striking and marching and dancing in pursuit of better salaries. Their posters and spokesmen have pointed out the very large gap between even the official incomes of ministers and workers, although their complaint that a policeman’s wage packet weighs less than his service pistol is a bit puzzling.
Again the element carbon is grabbing the headlines. This story concerns a grubby bag of dirty-looking stones of dubious origin that was passed around at a dinner party. The party was held in South Africa in 1997 and was attended by grubby celebrities of equally dubious origin who are now squabbling in a Dutch court about whose motives and intentions was the purest when it came to dealing with these stones. Facts are in short supply.
Given the possible failure of global wheat harvests in the coming months perhaps there is an opportunity for those municipalities wondering what to do with that large area of well-irrigated flat space inside their new but little used world cup stadium. The local soccer sides have declared that most of the stadiums are too large for their purposes and they will be returning to their old familiar playing fields. A similar disappointing comment was made by City Lodge Hotels in their report this week. They are unhappy with the way FIFA’s buddies reneged on their promise to send hordes of fans to stay with them. Gradually the evidence is accumulating that playing host to the World Cup has not delivered untold riches to everyone.
Sentimentally, of course my supporter’s heart lies with the teams of Eastern Province whose Colours for shooting I hold with pride, but whose sporting representatives are today alas invisible. Therefore my more than 30 years of living and paying taxes in the Transvaal seem a worthy reason to support the teams of that province. But they do make it hard. For a moment there I thought they had the Sharks by the tail fin. Maybe in a year or so I shall be forced to make another change.
James Greener
13th August 2010
