Excuse me, everyone missing the point…answer the analysts questions!!? What happened to the PIC bailout money? Already all gone? Edcon as a going concern was never the case, just another attempt to milk cash like many SA inc. Everyone in the biz knows and is not falling for your fake tears.
I’ve always felt the bigger the twit the fancier the title.
I would imagine that losses (loans that go bad), go off the Rupert billion, so as not to impact BusinessPartners’ own capital. They probably are also paid a loan admin fee that also goes off the Rupert billion.
If one assumes a third of the loans never get repaid, then this would be R3b of liquidity.
Did people expect that the billion would be handed out?
If you had a private line to Johan you wouldn’t be here amongst us non-billionaires.
You also won’t be entertaining loans/grants if you had his private line.
You have a sense of humor.
Griet – I am not advocating donations. My scheme would add 1% of the taxpayers’ net VAT or PAYE to a forced savings account.
Best wishes for your extended family 🙁
All asset managers say”now is the time to buy”. How many told clients before this crash “now is the time to get out”. There is also plenty survivorship bias and consolidation of under forming funds that is under reported. No fund manager is going to admit that they add little value to their clients.
Past behaviour is the best indicator of future behaviour. So please, I will not donate a cent more to be looted. With children in alchohol sales, tourism and the construction sector, all of whom will in all probability soon be out of work, or have their small businesses fold, my husband and I will soon have 8 more mouths to feed, grandkids included. A year before we were to retire (no more). Retirement funds already decimated by now and the rest soon be looted, I’m sure. So donate whatever you like to whom you like, stop handing out other peoples’ money to proven thieves.
Context. From a base of extreme economic sanctions and high interest rates the economy moved to no sanctions and very low interest rates.
There is nothing for “mahala”…. there’s always a catch.
He will own all SME’s, I wish I had thought about that, damn!
Loan, efficiency, tax effective, whatever… still a great initiative and gesture to help small businesses stay afloat. And I would similarly not let government anywhere near the administration of it, that’s a rhetorical question to include here in my view.
Despite CR’s huge and superb leadership in this situation the history of theft makes it clear they could not administer this properly without a bunch of it sticking to their hands.
So it should be. This is not the dole, this is a true South African coming to the aid of the people. If it was a freeby it would be peed against the wall, plus every Tom Dick and Harry would be in line for their bit.
If your business is worth saving they will do it and 60 months is time enough to pay it back.
Wake up SA no freebies here, as are the Oppenheimers also doing, interest free loan.
What would be interesting would be to compare these active managers performance over 1,3 &5 years in USD vs the S&P500 after fees. And then this years performance also in USD to the same benchmark.
This will give a clearer and more useful picture of if having some offshore exposure is valuable and warranted or not.
Small town tourism started dying 25 years ago, the moment ANC councillors took them over. These people were teachers, health workers etc with no experience of running anything. They were cheque pullers, now they saw all the money coming in they decided it was time to reap.
No water, no sewage, no electricity,no station, everything and I mean everything fell apart. Ask me I know I come from a small town, too embarrassed to show people my little rural dorp.
Then the doctors left, the chemist closed and now the banks are leaving. another great ANC success story.
Don’t worry. Another retailer like Woolworths, Zara or H&M will buy the business just to get the leases in the malls and they will take over the employees. One thing Edgars does have in their favour is prime locations in all the big malls. The useless socks imported from China which had holes after I wore them only once was part of its undoing.
So… the chickens have come home to roost at the worst possible time
Will the authorities ever learn that running a welfare state without a tax base JUST DOES NOT WORK!
It’s time to part company with Marxist, Leninist political “partners” and create a culture of growth rather than living with the illusion that Government can solve the problem
Well then. We had a lot of time to get our act together and we did not. Every time Moody’s did not declare us as junk we were surprised. Now we are junk and we are shocked?
But what the hell, it’s not our fault, we can blame Corona 19.
If ever there was a case to sell non-performing SOEs (is there 1 that is??!) this is surely it!! Time to stand up to the unions!!!
The rating agencies will do anything to prop up the dollar in my opinion.
I’m not saying we aren’t complicit in our own economic demise but…this is a rigged wheel of fortune, they timed it perfectly.
South Africa has been here before – we can survive this but it will take enormous effort by business SA and a concerted effort by the ANC to rid itself of BEE policies, red tape and municiple corruption just for starters….
A hearty congratulations to the ANC on their fine achievement in record time. It is truly a gifted organisation/government that can take a country with world class infrastructure, abundant mineral resources, as well as unlimited tourism possibility and destroy it all in a paltry 25 years.
Moody’s took 25 years to realize that Luthuli House is junk. We have known it all along. We did not experience any tsunamis, earthquakes, hurricanes, floods, meteorite strikes, nor did we experience a military invasion by foreign forces. No bombings, sabotage or drone strikes.
We have got nothing, but the ANC, to blame junk status on. The Tripartite Alliance sabotaged the economy. They undermined economic growth. They plundered the shared resources. They use labour laws to extort money from businesses and to contract economic growth. They use BEE laws to extort capital from entrepreneurs and cashflow from the general public. They use the mining charter to detonate a bomb under exploration and job creation in the mining industry. They use local beneficiation requirements to decimate rural areas and to destroy mining towns. They use the security of tenure laws to demolish workers’ houses on farms. They use cadre deployment to bankrupt SOEs and municipalities and to destroy transport, electricity supply and service delivery.
They use the expropriation debate to destroy capital formation, to destroy jobs and investments. The destruction of the tax-base, the exploding Debt/GDP ratio, the rising Budget Deficit are all manifestations of the ANC policies.
Junk status emanates from the Freedom Charter. The “colonialists”, or free-market capitalists rather, handed a country over that was so strong and robust that it took the socialists 25 years to break it down to junk status. Therefore, it is not all citizens who must accept the description of junk status. It is only a certain part of society who is responsible for this description and who should own up to it. We knew it all along, but now it is official, ANC supporters are junk.
One of the very first signs of a company headed for trouble is when they start building lavish head offices. Maybe if Sasol had stayed in Rosebank, their thought and business processes would have been different. But management loves to spend money on itself.
Eskom’s prices are cost-reflective. They are very much aligned with the base cost of generation and routine maintenance.
What they aren’t aligned with is the extra cost of hordes of overpaid zombie staff, wholesale plundering by politicians and their lieutenants, and the capital equipment destruction caused by deferred maintenance arising from aforesaid plundering.
Eskom must get the money back from the people who stole it. Dubai might be a good place to look.
Get Soweto to pay and then we talk again !!!!!
Blame should go to the following: ANC, Zuma, Guptas, Eskom, KPMG, Other SOE’s, Bank of Baroda, Bain, Mckinsey, Bell Pottinger, Bosasa, SAP and Thales.
They believed that there was no limit to the plunder they could visit on South Africa.
Sorry if I left off any at the top of the pile. There are so many.
This was expected and will bring about untod challenges!
Will we recover?
Yes if we
cut the wage bill, shut SAA, involve the Private Sector to assist with Power Supply, abolish BEE to bring back the skill, finalize a decent land reform policy, get rid of all mayors and their perks, cut Government employees to curb the wage bill, bring to book the state capturers and get the unions to tow the line
A pipe dream? Perhaps
But so was winning the RWC
It’s possible even plausible, even the ANC can pull it off
No doubt they would like a lot more money – but first the multitude of surplus employees at all levels who caused the Eskom crisis must be disposed of forthwith.
Sa winning the rwc was an organized result with many professional administrators and ex rugby players creating a culture of excellence at rass roots levels. Having excellent feedstock withing the schooling and provincial systems and meritocracy playing a role helps. The “natural feedstocks ” at the civil service levels is fraught with poorly educated, morally compromised individuals with little interest in the welfare of many.
Not only SASOL, but what part of the ongoing exodus of senior management skills (due to emigration) caused SA companies to lose it’s luster over time?
Events happens sudden (like SASOL) as a result of gradual reduction of loss of skills (be it financial or technical). Yes, a company gets replacements, what they can find in the market.(..trying to attract foreign skills…you’re going to have to “show the money”, so you slowly lose your global competitiveness.)
The above is difficult to measure, but has played its quiet, incideous role in its demise. The reducing number of JSE-listed companies (now well under 400) is proof of what the size of SA’s economy once was.
Don’t me get starting on the (lack of) political leadership!
The generation of electricity by non Eskom sources is the way to go and is an important step towards privatization, splitting up Eskom and getting the electricity supply working.
What will derail this process is if wealth is destroyed. How do you destroy wealth? you buy electricity from the ISP at a higher price than you sell it to the municipality. If Eskom or the transmission company cannot make a profit then the whole process is doomed.
The article is disingenuous at best. Energy is traded not power. 13000MW is misleading as the added capacity will seldom if every produce this. On average it will probably produce 20% of this. Normally at the wrong time. An honest assessment would compare the energy these ISPs produce against the shortfall. There is no ways this is going to make up a 6000MW deficit.