Financial Mail articles from February 2012

Financial Mail archives from February 2012

BANKS. Must come onside.
February 24, 2012... BANKS Must come onside Finance minister Pravin Gordhan has again warned banks their fees are too high. He delivered a stern warning in last year's budget, saying he would take the matter up with banking executives. They have consistently denied...

COMMUNICATIONS. Bright spark needed.
February 24, 2012... COMMUNICATIONS Bright spark needed The budget revealed some unnerving facts about the communications department. Of the 434 posts it has budgeted for, 30% are vacant the vacancy rate for senior management is 34%. The fact that it does not have a...

Company tax.
February 24, 2012... Byline: Ruan Jooste Company tax SA is not known for having the most business-friendly tax environment, but national treasury has made an effort in the 2012 Budget Review to bring some clarity to the business realm. One positive move is that...

ECONOMIC OVERVIEW. On the offensive.
February 24, 2012... Byline: Claire Bisseker ECONOMIC OVERVIEW On the offensive Government hopes infrastructure spend will provide jobs and growth WHAT IT MEANS. Budget backs investment-led growth. Tough curbs on spending required We have a pipeline of...

INTERNATIONAL RELATIONS. Charity begins at home.
February 24, 2012... Byline: Larry Claasen INTERNATIONAL RELATIONS Charity begins at home SA's diplomats and foreign missions have to do their jobs with fewer resources as government's belt-tightening efforts have cut into the money allocated to the international...

Budget in a nutshell.
February 24, 2012... ECONOMY: Growth in GDP is forecast to slow from 3,1% in 2011 to 2,7% in 2012, rising to 3,6% in 2013 and to 4,2% by 2014. EXPENDITURE: Additional R55,9bn in government spending plans over the next three years. The revised estimate for...

INDIRECT TAXES. The clean-up begins.
February 24, 2012... Byline: Lise Pretorius INDIRECT TAXES The clean-up begins Dirty is becoming expensive. South Africans have already been paying a carbon tax of sorts through the levy on electricity generated from nonrenewable sources, and from July 1 they'll...

HEALTH. Beating about the bush.
February 24, 2012... Byline: Xolile Bhengu HEALTH Beating about the bush Finance minister Pravin Gordhan was short on detail when it came to how the National Health Insurance (NHI) scheme will be funded. But the 2012 Budget Review does say treasury has allocated...

HOUSING. Unsettling ambitions.
February 24, 2012... HOUSING Unsettling ambitions Government has thrown yet more money at the department of human settlements. Under minister Tokyo Sexwale, it has come regularly under the spotlight, though often for the wrong reasons. The department has huge...

INFRASTRUCTURE. Finding the funds.
February 24, 2012... Byline: Razina Munshi INFRASTRUCTURE Finding the funds No good project will be short of funding. That's the word from finance minister Pravin Gordhan. He took the lead from President Jacob Zuma's state of the nation address, which placed...

LAND REFORM. Progress still lacking.
February 24, 2012... Byline: Shannon Sherry LAND REFORM Progress still lacking The rural development & land reform department's expenditure on consultants alone ballooned to almost R660m in the past financial year. It represented an average yearly increase...

INDIVIDUAL TAX. Focus still on the rich.
February 24, 2012... INDIVIDUAL TAX Focus still on the rich Fears that wealthy individuals' tax rate could rise were put to rest by the 2012 Budget Review the maximum marginal individual tax rate remains 40%. People earning over R1m/year even get moderate tax relief...

POLITICAL OVERVIEW. A careful waiting game.
February 24, 2012... Byline: Prakash Naidoo POLITICAL OVERVIEW A careful waiting game Welfare is no match for job creation, which will take some time to materialise WHAT IT MEANS. Economic backdrop creates uncertainty. Levels of service delivery unacceptable...

PROPERTY. No joy from transfer duty.
February 24, 2012... Byline: Joan Muller PROPERTY No joy from transfer duty While many no doubt hoped for further transfer duty relief in this year's budget, it's no surprise that the tax-exempt threshold for home buyers has been kept at R600000. Last year the...

PROVINCES 2. More from the central pot.
February 24, 2012... PROVINCES 2 More from the central pot Treasury's allocation of 2012 budget revenue, once again, clearly shows up local government inefficiencies. Municipalities which are meant to generate their own working capital from rates and levies require...

HIGHER LEARNING. No bang for our bucks.
February 24, 2012... Byline: Lindo Xulu HIGHER LEARNING No bang for our bucks Despite large sums of money pumped into higher education each year, the department of higher education & training is unable to get much bang out of each buck. And, according to 2012...

STATE-OWNED ENTERPRISES. Still milking the taxpayer.
February 24, 2012... Byline: Lindo Xulu STATE-OWNED ENTERPRISES Still milking the taxpayer Despite the expanded role envisioned for state-owned enterprises (SOEs), their future funding, if finance minister Pravin Gordhan has his way, will gradually move towards...

TAX ADMINISTRATION. New ref on the field.
February 24, 2012... Byline: Maarten Mittner TAX ADMINISTRATION New ref on the field Improved administration brings higher returns for Sars WHAT IT MEANS. Tax ombudsman to be introduced. Tax returns up 23% year on year An ombudsman for tax matters is...

TOLLING. Free way? No way.
February 24, 2012... Byline: Razina Munshi TOLLING Free way? No way After a public outcry, national treasury will relieve the burden of Gauteng motorists by providing the Gauteng Freeway Improvement Project with a R5,75bn bailout. Tolled roads, however, will not...

WELFARE. Safety net widens.
February 24, 2012... Byline: Joan Muller WELFARE Safety net widens Government's social spending allocation continues to rise, comprising more than half (57%) of total government expenditure, up from 49% a decade ago. Some R105bn has been allocated for social...

Welfare, not warfare.
February 24, 2012... DEFENCE & VETERANS Welfare, not warfare Though the defence budget has again increased by a seemingly respectable amount (R3,1bn, or 9%, to R37,4bn), the numbers mask a persistent imbalance in the allocation of resources within the SA...

EDUCATION. The stuff of fantasy.
February 24, 2012... Byline: David Williams EDUCATION The stuff of fantasy Education spending continues to roar ahead, but with little assurance that the returns will improve and with indications that in several areas the departments are setting themselves up for...

Good neighbours.
February 24, 2012... Byline: MERVYN COOKSON Good neighbours Pravin Gordhan gave a sobering account of the global economic headwinds we still face. Slow growth in Europe, the US and Japan will continue to have a negative impact on SA. But Africa beckons,...

The next big thing.
February 24, 2012... The next big thing With infrastructure development, job creation and the National Health Insurance scheme taking centre stage on government's list of priorities, it is hardly surprising that there was little about the proposed National Social...

Too soon for a cure.
February 24, 2012... Byline: BLUM KHAN Too soon for a cure The 2012 budget spotlights infrastructure expansion as the key to growing the economy. Re-engineering our health system will be one of the most daunting tasks in this process. A shortage of skills,...

Collaboration is key.
February 24, 2012... Collaboration is key SA is a progressive emerging-market economy that continues to outperform many developed ones. However, we face some unique challenges, one of which is our tendency to focus on our problems rather than our achievements....

Focus must be jobs.
February 24, 2012... Byline: PHILLIP MATLAKALA Focus must be jobs It would have been hard to predict US president Barack Obama's current low approval ratings back in January 2009 when he was inaugurated. But since the onset of the financial crisis, the US has...

Key fight is poverty.
February 24, 2012... Byline: MORRIS MTHOMBENI Key fight is poverty Much will be written about the business end of the budget and that's as it should be we need to understand the numbers. We must also establish whether the budget best supports the policy choices...

In need of saving.
February 24, 2012... Byline: MARK VAN DER WATT In need of saving Each year, South Africans eagerly await the release of the budget to see how government views its long-term priorities and allocates funds. But how many SA households annually review their own...

BLACK ECONOMIC EMPOWERMENT. Questions on effectiveness.
February 24, 2012... Byline: Zweli Mokgata BLACK ECONOMIC EMPOWERMENT Questions on effectiveness Government's integration of black economic empowerment policy with industrial policy is expected to fast-track the growth of black businesses. The National...

Steady as she goes.
February 24, 2012... Byline: Stephen Cranston GOVERNMENT BORROWING Steady as she goes Foreigners appear to have more faith in the SA government than some of its own citizens. Foreign ownership of SA government bonds has increased from 12,8% in 2008 to 29,1% in...

HOME AFFAIRS. Now we know who we are.
February 24, 2012... Byline: Prakash Naidoo HOME AFFAIRS Now we know who we are A radical turnaround programme initiated at home affairs three years ago has reduced the waiting time for identity and travel documents. The department has since begun to modernise...

CRIME. Cuffed to inflation.
February 24, 2012... CRIME Cuffed to inflation South Africans concerned about crime, policing and justice should not expect greater focus on public order and safety in either the period covered by the budget or in the immediate future. Though the R97,9bn...

PROVINCES. Keeping a beady eye.
February 24, 2012... Byline: Marc Hasenfuss PROVINCES Keeping a beady eye Government intervention in the provinces' financial affairs will have to have an effective follow-up WHAT IT MEANS. Persistent overspending on personnel. Internal audit units have...

RETIREMENT SAVINGS. Adding some PEP.
February 24, 2012... RETIREMENT SAVINGS Adding some PEP With so little news on retirement fund reform, something needed to be introduced to show that government is serious about encouraging savings. We are still waiting for wholesale reform of retirement...

QUESTIONS & ANSWERS. Widening the net.
February 24, 2012... Byline: Stafford Thomas QUESTIONS & ANSWERS Widening the net speaks to Oupa Magashula, SA Revenue Services (Sars) commissioner, on improved collections and tax evaders With six weeks to go before the end of the 2011/2012 fiscal year, how...

SIN TAX. Pleasure and pain.
February 24, 2012... Byline: Lise Pretorius SIN TAX Pleasure and pain All things sinful will, as expected, come with a higher price tag an attempt at discouraging the unhealthy habits of booze, cigarettes and gambling. But taxing our dirty habits is also a sure...

SMEs. A boost for small business.
February 24, 2012... SMEs A boost for small business Government aims to increase the number of small and medium-sized enterprises from 5m to 8m by 2014. The Small Enterprise Development Agency, which provides nonfinancial business development and support...

IN HIS OWN WORDS. Holding the line.
February 24, 2012... Byline: David Furlonger IN HIS OWN WORDS Holding the line Economic uncertainty will remain a fact of SA life for some time, Pravin Gordhan told parliament. But sound management will see SA through potential troubles WHAT IT MEANS. Sars has...

TAX INCENTIVES. Much ado about nothing.
February 24, 2012... TAX INCENTIVES Much ado about nothing For industries and companies expecting growth-boosting concessions, the budget proved a big disappointment. For larger businesses, concessions were conspicuous by their absence, and for small businesses they...

SOCIAL GRANT VALUES.
February 24, 2012... SOCIAL GRANT VALUES Rand values 2011/12 2012/13 Increase State old-age grant 1140 1200 60 State old-age grant, over 75s 1160 1220 60 War veterans grant 1160 1220 60 Disability grant 1140 1200 60 Foster care grant 740 770 30 Care dependency grant...

Schemes sick of high claims.
February 24, 2012... Schemes sick of high claims Medical scheme members who don't control what they claim for are in for a rude awakening, says Resolution medical scheme principal officer Mark Arnold. He says schemes are re-examining benefits and claims driving up...

Did you hear?
February 24, 2012... It is always a mystery why some press releases are sent to the FM. Take this one from the Prince Mohammad bin Fahd University in Saudi Arabia. The e-mail politely says they've sent us a press release for publication in your esteemed publication...

Economic viewpoint. Runners-up cup.
February 24, 2012... Byline: NAZMEERA MOOLA Runners-up cup In the ANC's leaked nationalisation report, nationalisation was viewed as unworkable because it would threaten SA's fiscal sovereignty. However, a desire for increased state involvement in the platinum...

A start, but buy-in is needed.
February 24, 2012... A start, but buy-in is needed Reprioritisation, savings, haircuts these have been executed with singular determination PRAVIN GORDHAN Finance minister Pravin Gordhan has shown adroit footwork in setting out his national budget. There are...

Fight for your rights.
February 24, 2012... Byline: BARNEY MTHOMBOTHI Fight for your rights It's becoming difficult not to come to a conclusion that the ANC, or the faction led by Jacob Zuma, is bent on undoing the post-1994 social contract. It irritates them. It stands in the way of...

Executive Moves.
February 24, 2012... Christoff Pienaar has joined Webber Wentzel as a partner in the firm's Cape Town IT, electronic business, media & telecommunications practice. Pienaar joins Webber Wentzel from the London-based commercial law firm Wedlake Bell LLP. ...

On my mind. Top-up lessons.
February 24, 2012... Byline: RICHARD HAYWARD Top-up lessons Teachers in public schools started 2012 with a jolt. Newspapers reported that there would be a ban on bonuses for teachers at former Model C public schools. The actual facts were somewhat different from...

Technology & You. Mac changes spots.
February 24, 2012... Byline: DUNCAN McLEOD Mac changes spots In its efforts to make the Mac more like the iPad, Apple is introducing new features to its Mac OS X operating system that sometimes appear somewhat counterintuitive and are slowly driving this writer...

Another Week.
February 24, 2012... Another Week AFRICA BHP Billiton cancels its proposed aluminium smelter project in the Democratic Republic of Congo, following a review of its economics. It is a blow to the Inga 3 hydropower project, which was to have powered the smelter. ...

Another week.
February 24, 2012... Senegal's president Abdoulaye Wade is seeking a third term in elections on February 24. His bid has triggered violent protest, which a joint Ecowas/AU team led by ex-Nigerian president Olusegun Obasanjo is trying to end. Turkey's president...

Revisit the energy issue.
February 24, 2012... Byline: Rob Gentle Revisit the energy issue We seem to be pressing ahead with a carbon tax and renewable energy balancing act when developments abroad should make us pause, Crushing weight (Features February 17). Nations such as China,...

COMINGS & GOINGS.
February 24, 2012... COMINGS & GOINGS Fraser Shaw. In line with its refocused business model, Cadiz has appointed Shaw as CEO as from February 21. The former COO and FD of Cadiz succeeds Ram Barkai, who has resigned after electing to take early retirement....

ECONOMY. A nation in denial.
February 24, 2012... Byline: Claire Bisseker ECONOMY A nation in denial SA dreams of being a winning nation even as it wallows in mediocrity. confronts the lies SA tells itself about the economy WHAT IT MEANS Unemployment to stay stubbornly high SA offers high...

NTERNATIONAL. Back from the brink - again.
February 24, 2012... Byline: Claire Bisseker INTERNATIONAL Back from the brink again WHAT IT MEANS. Global activity is decelerating. The key challenge is to end the eurozone crisis Towards the end of last year there were heightened fears that the world was...

EURO. The final countdown.
February 24, 2012... Byline: Max King EURO The final countdown Those whom the gods wish to destroy are first made to look ridiculous. We are all tired of the empty reassurances from arrogant eurozone politicians that the crisis is under control. Proposals have...

DISTELL. DISTILLERS & VINTNERS.
February 24, 2012... Byline: Marc Hasenfuss DISTELL DISTILLERS & VINTNERS Price: R77,25 6m Dec T/O (Rbn) EBT (Rm) EPS (c) DPS (c) Mkt cap: R15,7bn 2011 7,972 1160 384,5 143 PE: 14,0 2010 6,878 948 313 124 Sector PE: 13,5 t s +16% +22% +23% +15% Nice to see a...

SEARDEL. Claim settlement.
February 24, 2012... Byline: Marc Hasenfuss SEARDEL Claim settlement Settlement has apparently been reached in a long-standing legal claim against former directors of clothing and textile company Seardel, including the late Aaron Searll, its founder and former...

MOTOR INDUSTRY. BMW's bargain.
February 24, 2012... Byline: David Furlonger MOTOR INDUSTRY BMW's bargain BMW SA hopes automotive industry incentives will enable it to recoup at least R500m of the R2,2bn it has invested in the new 3-Series to be built from next month at Rosslyn, near Pretoria....

INTEGRATED REPORTING. Data's new age.
February 24, 2012... Byline: Lise Pretorius INTEGRATED REPORTING Data's new age The decision to mandate integrated reporting for all listed companies in March 2010 (a global first) marked the start of a long road for SA companies. Many companies are only...

TAX 2 FINANCIAL TAX. No need to hurt investors.
February 24, 2012... Byline: Lindo Xulu TAX 2 FINANCIAL TAX No need to hurt investors We already have a form of FTT. It's called the securities transactions tax and 0,25% is already levied on the transfer of all listed and unlisted securities PETER BLOHM While...

WENDY MACHANIK. Change of tack?
February 24, 2012... WENDY MACHANIK Change of tack? I have a very different approach to what has been argued before, and believe that a different result could emerge MICHAEL SALOMON The fall of Wendy Machanik, once the baroness of the property industry, appears to...

SOFT DRINK MARKET. Making a fizz.
February 24, 2012... Byline: Larry Claasen SOFT DRINK MARKET Making a fizz The Cape has a long history of making its own soft drinks. Now local companies are beginning to build a national footprint WHAT IT MEANS. Cape cola makers are finding niche markets. ...

PROFILE. Concerted effort.
February 24, 2012... Byline: Roxana Gorecki PROFILE Concerted effort Rashid Lombard (60) has done a lot of things: documented politics and war as a photojournalist; produced a television series; managed radio stations; cofounded Africa's largest music event, the...

MINING AFGHANISTAN. Gold in them thar hills.
February 24, 2012... Byline: Charlotte Mathews MINING AFGHANISTAN Gold in them thar hills The US Geological Survey's 2010 estimate of $1trillion-$3trillion of untapped minerals in Afghanistan hasn't started a rush to do business in that country. That is not...

BUDGET OFFICE . Getting there slowly.
February 24, 2012... Byline: Prakash Naidoo BUDGET OFFICE Getting there slowly In my view, the credibility of fiscal policy making in SA would benefit in the long run from having a credible second source for budget analysis JOACHIM WEHNER Almost three years after...

JUDICIARY. Bench losing its appeal.
February 24, 2012... Byline: Prakash Naidoo JUDICIARY Bench losing its appeal The extended nomination deadline for a host of key judicial posts, including one on the constitutional court, closed last Friday, but it was still unclear whether a broader and more...

KFC AFRICA EXPANSION. Ambition takes wing.
February 24, 2012... Byline: Stafford Thomas KFC AFRICA EXPANSION Ambition takes wing Keith Warren, KFC Africa's MD, has a tough task. My challenge is to take KFC in Africa to the same level of success it has reached in China, says Warren. Setting the challenge...

HORSEBACK SAFARIS. Saddle up!
February 24, 2012... Byline: Julie Bain HORSEBACK SAFARIS Saddle up! Viewing game from the back of a horse is an exhilarating experience just don't fall off. tried not to. The sun is sliding behind the Zululand hills and dusk is swallowing the wooded savannah....

SHOPPING CENTRES. Tale of many markets.
February 24, 2012... Byline: Joan Muller SHOPPING CENTRES Tale of many markets South Africans have regained their appetite for retail therapy, judging by the recent strong growth in retail sales. The latter reached 7,9% (Stats SA) in the fourth quarter of 2011....

TAX 1 RESEARCH AND DEVELOPMENT. Tightening up.
February 24, 2012... Byline: Ruan Jooste TAX 1 RESEARCH AND DEVELOPMENT Tightening up Right now, SA is not the best place to invest in research and development (R& D). Not only do foreign investors consider other jurisdictions more tax friendly, but the...

Convention on Mutual Administrative Assistance in Tax Matters. 101.
February 24, 2012... Byline: Ruan Jooste What is the Convention on Mutual Administrative Assistance in Tax Matters? The convention aims to promote administrative assistance between tax authorities for the better operation of tax laws and to curb tax avoidance and...

ATMs. Go tell it in the country.
February 24, 2012... Byline: Stafford Thomas ATMs Go tell it in the country Having an ATM within easy reach is a convenience we take for granted. But for millions of people in rural areas and even many small towns, ATMs are still few and far between, says Marc...

DEAL OF THE WEEK. In through garage door.
February 24, 2012... Byline: Stephen Cranston DEAL OF THE WEEK In through garage door Darshan Daya. Partner Capitalworks Capitalworks has R2bn invested in its private equity funds. Duro Pressings will benefit from housing spend Private equity is often...

HOME LOANS. Banks stingy.
February 24, 2012... Byline: Joan Muller HOME LOANS Banks stingy Prospective home buyers waiting for a more relaxed lending stance from the banks shouldn't hold their breath. Data released last week by mortgage originator ooba shows that banks still require home...

GIMME: Prices compared.
February 24, 2012... GIMME: Prices compared It's become a whole lot easier to compare prices of products available in a store with those charged on popular online retailers' sites. Price Snap, a free application (app) developed by Cape-based Virtual Mobile...

IDASA. Funding slashed by half.
February 24, 2012... Byline: Prakash Naidoo IDASA Funding slashed by half As the effects of the global economic recession and the European financial crisis deepen, SA's leading political think-tank and several NGOs are battling to survive under the strain of...

ESKOM. Retro blunder.
February 24, 2012... Byline: Lise Pretorius ESKOM Retro blunder WHAT IT MEANS. R5m spent on unsafe retrofit lights. Local content loses to cheap Eastern imports Eskom has temporarily put a stop to the retrofitting of conventional fluorescent lights amid...

AGRIBUSINESS. MKB balks at Senwes.
February 24, 2012... Byline: Marc Hasenfuss AGRIBUSINESS MKB balks at Senwes An advance by Klerksdorp-based agribusiness giant Senwes on the Cape grain sector has been halted. Last week directors of Moorreesburg Koringboere (MKB) could not persuade enough...

Nonexecutive directors in numbers.
February 24, 2012... Nonexecutive directors in numbers 2267 is the total number of nonexecutive directors on the boards of the 377 JSE-listed companies (at end-November 2011). This is 265 (13%) more than in 2010. 48 is their average age, which is three years...

QUESTIONS & ANSWERS. State miner's goals. Sicelo Sikakane.
February 24, 2012... Byline: Lindo Xulu QUESTIONS & ANSWERS State miner's goals Sicelo Sikakane, executive manager of funding & portfolio management at the state-owned miner, speaks to The state-owned African Exploration Mining & Finance Corp has been...

WHERE ARE THEY NOW?. Busy strategic partner. Mzolisi Zoli Diliza.
February 24, 2012... Byline: Larry Claasen WHERE ARE THEY NOW? Busy strategic partner Mzolisi Zoli Diliza thought he would be enjoying a peaceful retirement when he left his job as CEO of the Chamber of Mines in 2010. But instead of taking time out, he has...

7 questions for ... Isabella Stepski, owner-manager of Pakamisa in KwaZulu Natal.
February 24, 2012... Byline: Julie Bain 7 questions for... Isabella Stepski, owner-manager of Pakamisa in KwaZulu Natal FM: What are the high points of viewing game on horseback? Stepski: Getting so close to the animals. Being higher up, the level and radius of...

BOOK OF THE WEEK. Digging up the past. BORN IN AFRICA.
February 24, 2012... Byline: Richard Steyn BOOK OF THE WEEK Digging up the past BORN IN AFRICA. The Quest for the Origins of Human Life. By Martin Meredith 230 pages Jonathan Ball R200 This concise and engaging book has twin narratives running through it. The...