Another long
weekend starts tonight, or even earlier for those affected by the minibus taxi
drivers’ strike. They appear to be protesting about the facts of life; like
stuff getting ever more expensive. It didn’t get better for those of us who
were within reach of the demonstration that the minister of mineral resources
has not a single clue about how business works. After ample evidence in the
past decade that the political allocation of resources does not work in any way
he has simply deemed that there must be even more of the same. It is just too
dreadful for the markets, mine workers and the nation.
The Bear that
has been shuffling around the JSE is getting bigger and bolder. In some sectors
there may even be the faint whiff of panic. The All Share is off more than 5%
in a month and the resources counters are chalking up losses of even 15% from
their 6 month highs. The rand and bond market meanwhile are both stable and so
we are watching a local phenomenon. Is the state pension fund – the county’s
largest– starting to liquidate holdings? This is run by a unit under control of
the minister of finance and the recent deluge of leaked emails has revealed
that the new man in this post (Malusi Gigaba) is quick to do what Number One
needs to make his friends happy. And his friends may be running out of cash. The
low hanging fruit at most of the state-owned enterprises has now been picked and
so another source of cash has to be tapped. That will be really bad if it has
even a grain of truth.
What a gift
to columnists. The new Financial Intelligence Act is now in place and ready to
make the Pips squeak! Pips are “prominent influential persons” who will in future
attract “enhanced due diligence” when opening a banking or broking account. It
all sounds very praiseworthy but it is also an admission that the existing
legislation has failed to stop money laundering. Those of us who are small and
insignificant enough for our banks to hassle us, have been hugely inconvenienced
over the years with demands to prove where we live and trips to the police
station so that a bored constable can certify a copy. Meanwhile the real money
did precisely what it liked. Like take overseas trips in big carry-on bags. Much
as we would like to believe that the bad guys are going to get caught, our
experience and cynicism suggests that not much will change.
A top-ranking
business man has come up with a new name for an old idea. Rightly appalled at
the utter moral decay of those who claim to be guiding this country, Mr Bonong Mohale,
chairman of Shell in SA, wants to try and get us back on track and protect the
constitutional order. He proposes a “fund” which will spend its donor’s (or is
it investor’s – it’s not entirely clear) money more effectively than they could
themselves. The name is The Integrity Fund. Beneficiaries of the fund would be
activities which were attempting to put the country on a better path.
Contributors would be the usual suspects – business. Sadly, it is very likely
that the first casualty of such a venture will be the failure to live up to its
name.
It is very
odd that New Zealand dilute their All Black brand by selecting a B team on
racial grounds. There is something very hypocritical about it all. It prompts most
of us to look forward to seeing the British & Irish Lions (vigorous
non-racialism there!) give them a hiding this weekend. The problem for those Lions,
however, is the amazement expressed by their coach that he has just learned
that New Zealand sides play for 80 minutes. Which is something the baby ‘bokke
failed to do in Georgia. And the Proteas entirely lost their way in the
Champions Trophy as well. Two ignominious early departures from their respective
international tournaments was very hard to watch. Reward for loyal SA rugby fans
however is possible with the Durban double header starting tomorrow when the Kings
Park faithful are being enticed to sample the Moses basket with a rare second
string international being played the day before the senior test match on
Saturday at the proper venue. I wonder if the soccer stadium management realise
the importance of easy access to well-priced refreshments for influencing
spectators?
James
Greener
Magna Carta
Day 15th June 2017
