Xenophobia: the solution is not better border control, but a change in economic policy

Johannes Wessels
@johannesEOSA1

Is Donald Trump advising the ANC and the DA?  Bashing (illegal?) immigration is a key pillar in both these campaigns and both parties are as wrong and misguided as Trump on this subject, trying to address consequences and ignoring the cause.

The ANC election manifesto promises the party will ensure “those who come to South Africa do so legally and that the country knows what they do while they are in the country”. It will take “tough measures against undocumented immigrants involved in criminal activities in the country or in cross-border crimes, including those involved in illegal trading and selling adulterated food in townships and villages”. 

It is hard to spot the difference when the DA’s Musi Maimane says “securing our borders is not simply about keeping people out. It is about ensuring that all migration occurs legally and knowing who has entered the country. It is about being able to plan ahead and make sure our budgets can stretch to cover all they need to cover. It is about making it easier for those who want to enter South Africa legally – because we want legal, law-abiding people to bring their skills here and help grow our economy – but making it impossible for those who want to enter illegally.”

the fault line of prejudice …

Continue reading “Xenophobia: the solution is not better border control, but a change in economic policy”

SA lost 83 000 companies in the financial & business sector in 10 years

Johannes Wessels@

@johannesEOSA1

The landscape of incorporated South Africa in the financial and business services sector has changed dramatically: in 2007 a total of 222 532 companies in this sector submitted tax returns, but SARS Company Income Tax (CIT) data show by 2016 this figure had shrunk to 139 664: a 37% decline.

The CIT data base records a decline by almost 83 000 incorporated firms.  What happened?

This sector includes banks, money lenders, short term insurance firms and independent brokers, investment advisors, business consulting firms as well as real estate services. Figure 1 shows how the number of firms were relatively stable from 2007 to 2010 before a rapid decline before stabilising again from 2014 onwards.

Continue reading “SA lost 83 000 companies in the financial & business sector in 10 years”

The Crusaders, Malema, the Wit Wolf & the Tempe killings: consent to smoke in a dynamite factory?

Johannes Wessels
@johannesEOSA1

Is South Africa trying its best to prompt a South African version of the horrendous Christchurch massacre or an upscale repeat of the callous Wit Wolf killings in Pretoria or those by Sibusiso Madubela at the Tempe Military base in Bloemfontein?   

This week’s xenophobic attacks on foreigners in Durban and the verdict by the Human Rights Commission exonerating Julius Malema from hate speech may in future be described as significant road signs pointing towards tragedies in waiting.

Continue reading “The Crusaders, Malema, the Wit Wolf & the Tempe killings: consent to smoke in a dynamite factory?”

SA enterprise sector critically ill

Johannes Wessels

@johannesEOSA1

The formal South African Enterprise Sector is critically ill. Were the company tax returns of the 768 000 companies combined and submitted as that of a single entity (say SA Amalgamated (Pty) Ltd) there would not have been any Company Income Tax (CIT) payable to SARS for three consecutive tax years.

SARS data on Company Income Tax (CIT) confirms the private sector is in a dismal state. In the tax years 2014 – 2016 assessed joint losses of all companies surpassed joint taxable income by R445 billion.

SARS data on CIT from 2007 to 2016 on assessed CIT returns bring the following to the fore (see Figure 1 below):

Continue reading “SA enterprise sector critically ill”

Guarantees for Eskom & SAA… some lessons from Zimbabwe

This video explains Economics by the State quite well.

A BEE service contract for air-conditioning more important than smooth functioning Deeds Office

Johannes Wessels

@johannesEOSA1

Awarding a service contract for maintenance work on air conditioners to a single BEE service provider was apparently more important than keeping one of the key institutions of a market-based economy ticking, namely the Deeds Office in the Free State.

For a full week (7 to 14 January 2019), no registration of title could be done and according to conveyancers, the system is still not functioning well. A conveyancer practising since the early 70s, it was the first time this has happened. This standstill has immense implications:

  • Delays in sellers obtaining their income, thus losing investment opportunity and interest;
  • Estate agents not receiving their expected income and thus resulting for several of them in additional financing costs;
  • Conveyancers foregoing fees and income;
  • Construction work for new or remedial work being delayed.

Public Protector

Continue reading “A BEE service contract for air-conditioning more important than smooth functioning Deeds Office”