Government has signaled that the tax payer will foot the bill.
Not R100 billion, not R200 billion, but the whole thing. Once municipalities know the tax payer on the hook, no incentive for them to pay either.
What tax payers in SA need to signal to government is that they are not going to pay a dime for the mismanagement. Tax revolt is the only way.
SARS can take on a % of tax revolters, but they can't handle a countrywide revolt.
The other point to note, is that in hindsight a large US concentrated tech fund would have beaten the S&P over the last 10 years - but did you know this 10 years ago? And will it do so over the next 10 years?
Unfortunately it is the Taxpayer, not the government, who is bailing Eskom out. The taxpayer who has no say, either as a voter (mostly in the minority) or as a consumer (prices will still rise way above inflation). Screwed from both ends.
Tito should introduce a special tax on all SoE's its staff and all ANC political employees from president downwards.
Call the tax "pay back the money tax" - can be set at 5% of gross monthly salary and is recoverable until 2060 or beyond in need. If an employee resigns then funds to be taken from their pension funds - thus no escaping culpability
You miss the point completely johannes!! Where else could our honourable MP,s fly free in Business class tgether with Family and friends ?? Maybe simply renaming SAA as ANC Airways would help. Have not for 20 yrs & will not ever fly SAA or its Mini me Mango again , on Principle !!
If applied broadly I agree Jaco. But I think targeted legislation, maybe like that for biker gangs in parts of Australia, should be applied to auditors. In SA, they have probably caused more damage than the biker gangs in Oz.
Jip, its going to be an interesting Budget Speech this year. I still think the Debt-to-GDP ratio will be critical and give us a good understanding of our current fiscal situation. Let's hope Minister Tito Mboweni can keep it at a manageable level.
What is still baffling me from the anc / government is to still try and keep the SAA afloat at the cost of the taxpayer. It probably had a right to exist 20 years ago in the boycott days of south africa – but those days are something of the past and many airways are available to choose from. Why try and keep something that does not generate enough money to just break even alive when it is an actual unnecessary entity???? – for an anc minister to see a SAA plan in New York and to be proud about it while it is actually an outdated aeroplane????
SAA announces: “we want to get the 17-year old court case behind us, pay R1050 million rand + interest and continue with our business” what business?? – business run at a loss at the cost of the taxpayer. – wonder where the R1050 million rand will come from??
The wasted money could be spent much better on essential schools, hospitals etc than on an actual stillborn to try and get it alive and well – under the current government’s management quality levels and ability it will not happen in the next 100 years.
Same for Eskom – its days are quickly running out due to pathetic management – if one can actually call it management at all.
In terms of rand-denominated global equity fund performance, yet again the passives funds predictably outperform the actives. This is very notewrothy, because, in principle, a global fund manager has his/her greatest opportunity at outperformance when he has the whole world as his investment oyster. He/she has the opportunity of exploiting every last bit of mispricing by that mispricing fool called Mr. Market may present. It is worth wondering why the smartest minds in the investment world fail so dismally do so in these global (and other) funds. If you like active fund managers and want to lose more money, please feel free to be involved in a large wager on the outcome of your 2 selected SA active global fund mangers against the above 2 passives over the next 10 years
The Sygnia S&P 500 is the cheapest and best performing S&P ETF (Total Investment Cost 0.21%)
The Sygnia World (9th out of 47 rand denominated global funds and ETFS over 5 years) and Satrix World (11/47 over 5 years) predictably outperform the vast majority of the 47 active global funds with 5 year track records (there may be others that have already folded in the past 5 years, thereby underestimating the outperformance of the passives), including the highly publicized and illustrious Allan Gray Orbis Global Equity Feeder Fund (28/47), as well as Prudential Global Equity Feeder Fund (20/47), Discovery Global Equity Feeder Fund (33/47), PSG Global Equity Feeder Fund (36/47), Investec Worldwide Equity Feeder Fund (37/47), Sanlam Global Equity Feeder Fund 46/47. Makes you think, doesn’t it?
The Sygnia S&P 500 and Sygnia World are dividend distributing ETFS (jolly nice for an income), while the Satrix World is a roll-up fund, forcing you to sell ETFs (with potential CGT implications) when you want some money to live on.
The evidence indicates that briggest minds in the financial service industry in SA cannot allocated money with greater success than a passive/unbiased low-cost approach, including in the funds where you would think they have their greatest chance of doing so!
So we ignore the population explosion from 1970 to 2015? An explosion that has no bearing on current issues in SA today? Why is the media so hell bent in attempting to spin or ignore the problem that SA is greatly overpopulated? I smell something and it isn't mud.
So, a taxpayer-funded regulator determined that the taxpayer pays for a taxpayer-funded monopoly for using taxpayer funds to unfairly compete with a tax-paying company. SA has reached new levels of absurdity.
The state of the infrastructure is a direct consequence of employment policy at government institutions. In all civilized nations, only the best-qualified individuals are considered for crucial positions. The qualification standards for employees at utilities determine the standard of service delivery by that utility. There is no alternative to this reality.
The qualification standards for a South African government- or municipal employee, ward-counselor or worker at a SOE is the ability to draw a cross on a piece of paper. The social group who draws the most crosses is handed the power to appoint themselves in critical positions. The ability to make a cross on paper is regarded as the highest qualification standard in South Africa.
Voting for the ANC automatically qualifies individuals for critical posts at crucial institutions. The lack of water and electricity, the implosion of medical services and the sewage running down the streets are the physical manifestations of the human capital involved.
So, the problem is much worse than described in this article. The real underlying problem is not the implosion of service delivery. The real problem is the loss of human capital. The right to vote is the conduit that equalizes, and brings equilibrium between the level of sophistication of infrastructure and service delivery on one hand, and the level of sophistication of the voting majority on the other hand. This equilibrium has not been found yet, the process is ongoing.......
We have to plan for the future , yet the past is our guiding light . Hoping the past market cycles will be repeated , and that the JSE will rebound to provide a 10% plus return on investment , is unfortunately just that ...a hope and a wish .
Massive mismanagement of the SA economy during the past 20 years , is now coming home to roost . For the JSE to to provide above average results , the economic fundamentals must be in place for companies to make excellent profits , which is not happening now .
So , history , unfortunately , this time around , is not going to assist us , and we have to plan for the actual SA scenario we are facing .
More wasted tax-payer money. The really, really strange thing about this country is that those who pay tax have come to the stark realisation that they should not expect anything in return whereas those that don't pay tax expect everything. I guess it is just the way payers and non-payers were brought up!
Not even worth analysing. Come on MW you can do better. There is nothing there! The PIC paid R4.3bn for nothing. Virtually the only earnings of this business is the interest on the self same money the PIC put in. To call it a Ponzi scheme would imply a level of sophistication that this bit of securities fraud does not have.
How Surve is still walking free is beyond me.
This drop in revenue collection must be of huge concern to our ANC government. How do people expect the politicians to make a dishonest living if they, the taxpayers, don't pay their tax ? People, if we do not all stand together and pay our tax diligently as required, then a rich part of our South African heritage and culture of theft and corruption will disapear forever and our disfunctional, failed state for which the ANC work so tirelessly, will go up in smoke.
During the 2018 illegal strike, many workers sabotaged power stations, and in terms of South African law, they should have been charged with treason.
" In South Africa treason remains a common-law offence . The crime of high treason is defined as:
“any conduct unlawfully committed by a person owing allegiance to a state with the intention of:
• overthrowing the government of the Republic;
• coercing the government by violence into any action or inaction;
• violating, threatening or endangering the existence, independence or security of the Republic;
• changing the constitutional structure of the Republic.”
But, Pravin Gordhan granted the saboteurs indemnity from prosecution and a R10 000 bonus. The ANC has already shown that it will do anything the unions demand (including indemnity for acts of sabotage and treason) - so how will it be different this time. Especially in an election year.
love the headline "blow for SAA". In case you haven't noticed SAA has for quite a while not been able to generate any money, so the blows flow straight through to us. Should have been "another blow for SA taxpayers"
Only god knows how many Zimbabweans are in SA. Never mind Malawians, etc etc.
I'm not exaggerating when I say I hear Shona way more than any language except English where I live (northern JHB).
If you trust StatsSA, I've got some oceanfront property in Sandton to sell you.
"The banks say the firm poses a ‘reputational risk’ for them as clients." Which basically means, 'We've known all along that you are completely corrupt to the core but now that everyone else does as well, we're out.'
Nothing to see here.
When England was held at ransom by the unions, Baroness Margaret Thatcher had the resolve to break their backs. Who do we have to confront the unions and save the country? Cyril the "fighting for unity" Squirrel. Margaret Thatcher carried the flag of free market capitalism, private property and rule of law. She had a mandate from the majority of voters, that gave her the power to confront the unions.
A socialist workers party who is in alliance with the unions, forms the government in South Africa. Cyril the unity crusader, has no power to confront the unions. On the contrary, the unions dictate his agenda. He will eventually print the money to pay the union members. He will steal the purchasing power of the currency in order to bribe the unions.
The demise of Eskom heralds the final freedom from colonization and the official end of Western Civilization in South Africa. This is exactly what the ANC supporters wanted. The demise of Eskom and the bankruptcy of most municipalities is the ultimate manifestation of socialism. This is how socialism presents, and expresses itself among its supporters. This destruction is the practical manifestation of The Freedom Charter.
Mike I love your articles and respect your research and knowledge, but I think this one you got 100% wrong! Half of Africa is in SA! There are no official numbers on illegal emigrants, but there are estimates of numbers between 20 and 30 million illegals. Then looking at the numbers we only have aprox. 5 million taxpayers of which high net worth tax payers are all leaving for Mauritius thanks to the brilliant communist Gordan who decided to tax us to death on all fronts! Nett effect is: less tax collection more theft and more demands of free education, free housing, free babies!!!! In 30 years from now we will have 100milj poor people in SA all wanting everything for free! Your population numbers are so far off, it's like saying we have an unemployment rate of 27%, although everyone knows it's bull...., people have stopped looking for jobs, so they don't count as unemployed. Well we have stopped counting the numbers that are coming over the borders because we do not have borders, how can you then trust any of your numbers, and to make it worse they have children here that are entitled to grants! I am sorry our biggest single problem in SA today is over population, stop kidding yourself take a drive through our country and open your eyes and then tell me our population is not exploding, regardless of the cause!
ESKOM cannot be fixed. Why? Its premised on a power production model that dates from Victorian times, being coal. The speed and scale of renewable has made ESKOM redundant already and it is not a dying giant, it is already dead. Further, the'product' that it produces is mostly not paid for by the large municipalities, or stolen. It has debt that boggles the mind and its new mega-projects are abject failures and should be immediately shut down. WHEN ESKOM defaults, it will trigger bankruptcy cross-default via the ISDA regime and lead to a full SA sovereign debt default. This has only one ending, IMF intervention. This is a scientific and historical certainty. Nice words at SONA don't fix these sorts of problems