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Pres Ramabosasa: has Duduzane’s father made way for Andile’s father?

Pres Cyril Ramabosasa’s written statement to the Speaker that he was not aware of a R500 000 donation by a company with large contracts with government to finance his acrimonious campaign for the leadership of the ANC, confirms he is a person with not the faintest interest in detail and quite satisfied to accept that it is “twelve o’clock and all’s well…”

It is the third time in a year that he denied any knowledge of wrongdoing at the time of the events and for a very long time afterwards. In baseball, it would have been the dreaded Strike Three and out.

But this is South African politics. And with a parliamentary system where the ANC as majority party has accepted as norm the precedent of a president that answers with a “I don’t know” and thereby dodging the crux of parliamentary questions, it will not be “Strike Three” for Ramabosasa.

The two prominent issues about which Ramaphosa also had denied any knowledge of wrong-doing, deal with:

  • the massive corruption of State Capture, and
  • the dreadful financial situation of Eskom.
Continue reading “Pres Ramabosasa: has Duduzane’s father made way for Andile’s father?”

State-owned enterprises: The Parable of the Talents

Total disregard for governance and the basic enterprise principle of return on investment emerged from testimonies before the Zondo Commission, confirming the ANC approach to enterprises and corporate governance considers productivity, accountability and skills as immaterial. Ideological nepotism and cash-for-cadres dominated appointments and decisions. 

Both Government and the ruling party cannot submit a defence of “we were not aware…” about the dire state of Eskom, Transnet, the SAA or the SABC.  Warnings against the mismanagement of state monopolies and the stifling effect of State-owned enterprises (SOEs) on the economy had been voiced over and over again, also in parliamentary standing committees. There the ANC majority vote repeatedly treasured party and cadre loyalty higher than their oath to keep the executive accountable. 

The testimony of Barbara Hogan as well as the annual reports to Parliament by Transnet, Portnet, SAA, Eskom, Sefa and others reminded me of the parable of the talents as recorded in Matthew 25: 14 – 30. Continue reading “State-owned enterprises: The Parable of the Talents”

White Monopoly Capital: astute reverse double somersault or a Janus performance?

Is the presidential acknowledgement of entrepreneurs as heroes and not villains the equivalent of Pope John Paul II’s admission that the church was wrong to condemn Galileo for endorsing a helio-centric view? If so, it is one of the most astute political reverse double summersaults. As deputy-president Mr. Ramaphosa himself sung heartily the “Down with White Monopoly Capital” song in the Zuma choir.

Janus Ramaphosa

Does the comment during the dinner of the Investment Summit really signal the dawn of economic freedom or was it merely a modern manifestation of Janus? Will the future reveal a Ramaphosa butterfly that was an ugly caterpillar under Zuma or is the two-mouths-two-messages the real reality?

The first requirement to assess future options is a proper understanding of the present. Let us explore that by assessing the ANC Government’s (and Ramaphosa’s) views on SMEs:  does it indicate an embrace of private initiative or something else?

Continue reading “White Monopoly Capital: astute reverse double somersault or a Janus performance?”

SMEs not the magic “Open Sesame” that unlocks growth & jobs (1)

Within a week of his inauguration as Finance Minister, Tito Mboweni muttered the magical “Open $e$ame” words that, according to legend, will reveal the treasures of economic growth, job-creation and the eradication of inequality.

open-sesame-your-uservame-o-password-are-ectu-open-segame-26200568Addressing the Association of Black Securities and Investment Professionals, Mboweni said “to get the economy performing, government needed to create an environment which allowed small and medium enterprises to operate at an optimum level.

“We must think in particular how to support small and medium enterprises. In Germany the economy is driven by the hidden champions that are small and medium enterprises,” Mboweni said.

Continue reading “SMEs not the magic “Open Sesame” that unlocks growth & jobs (1)”

SheNenegans and zol clouds: Summits almost like old-age home talent concerts

Government has developed a fool proof strategy to divert (most) attention from its frenetic fumbling of the economy that they had successfully put on full-throttle reverse.

The Job Summit’s rehearsed pitches and agreements to create jobs (almost as if jobs can be manufactured like overalls), to minimise retrenchments and to buy local,  reminds one of the annual retirement village talent concert: nothing new, innovative or inspiring. Rather old hat. It solicited respectful applause, but thankfully Nhlanhla Nene (ably assisted by Julius Malema and by the grace of the Guptas) diverted attention from the dreary Summit.

One has to give it to the ANC:  just as the Job Summit was obscured by sheNenegans, the previous big building block – the Emergency Stimulus Package – was enveloped by a court verdict releasing thick aromatic clouds of “Personal stimulus by zol”.  That high successfully obscured the regurgitating of empty promises of yesterday’s infrastructure development plans.

Can Trevor Noah develop such a script? Continue reading “SheNenegans and zol clouds: Summits almost like old-age home talent concerts”

Stimulus package ignores the Achilles heel of high crime

SA’s 2018 Crime statistics & the economy (2)

Government’s ad hoc stimulus package aims at infrastructure investment to promote growth.  It is totally silent on high crime levels that is one of the major causes of divestment with SA deteriorating into a combination of the Wild West and a Mafia state.

Screen Shot 2018-10-02 at 10.07.52 AM

South Africa’s shocking crime statistics were paraded on social media and media talk shops as being mainly caused by poverty.  Economic growth can therefore be considered as essential to get poverty down. Then crime levels would also decline…

Looking at data, an inverse picture emerges.

Continue reading “Stimulus package ignores the Achilles heel of high crime”