IS DLAMINI CABAL CASHING IN ON SOCIAL GRANT FIASCO?

When Dr Mamphela Ramphele addressed a breakfast gathering in the city recently, she opined that the social grant payment fiasco was orchestrated for the financial enrichment of social development minister Bathabile Dlamini and a coterie of beneficiaries. A story in BDLive this morning appears to corroborate Ramphele’s claim when it wrote that “social development minister Bathabile Dlamini and a few hand-picked advisers have emerged as the clique that constructed the illegal new contract with Cash Paymaster Services (CPS)”. According to the article, officials of the department and the South African Social Security Agency (Sassa) were excluded from the process. “Their exposure helps shed light on the bizarre goings on in the department and the agency that culminated in the director-general Zane Dangor resigning and two Sassa CEOs taking ill. It also appears to suggest that the delay in solving the crisis in grant distribution was engineered by a group of consultants acting at Dlamini’s behest. It is said the advisers were appointed irregularly after first serving on an advisory panel to the minister in 2013. They advised on the establishment of the work streams and were later appointed to head these.” (BDLive)

DURBAN’S COMMONWEALTH GAMES DREAMS UP IN SMOKE 

Durban was stripped of the right to stage the 2022 Commonwealth Games yesterday after a trail of missed deadlines and financial problems, which highlight the burdens facing host cities of major sporting events. The Commonwealth Games Federation said the city had failed to meet the promises contained in its bid and the search for a replacement host was on. Africa has never hosted the Games, which take place every four years and bring together athletes from the 52 members of the Commonwealth. The writing had been on the wall for several weeks after sports minister Fikile Mbalula said the projected costs were more than the flagging economy could afford and talks to cut the budget had stalled. SA would have spent ZAR8 billion on the event, according to the organisers. It was expecting revenue of more than ZAR11 billion in direct investment as athletes, coaches, delegations, spectators and tourists visited the city. The setback follows a series of withdrawals by potential Olympic Games hosts on the grounds of cost and disruption. Boston, Hamburg, Rome and Budapest have dropped out of the running for the 2024 Games, leaving only Los Angeles and Paris in contention. (BDLive)

JONAS LASHES OUT AT TRANSFORMATIVE ‘ASSET GRABBING’

An asset-grabbing mindset was sweeping through SA’s transformation conversation, deputy finance minister Mcebisi Jonas warned yesterday. Jonas delivered this verdict in a 10-minute opening address at the Gordon Institute of Business Science (Gibs), ahead of his conversation about ethics with radio journalist Stephen Grootes. The government and business had been complicit in the current state of affairs, he said. The state could have done more in improving education and training outcomes; it could have performed better in regulating the cost of energy and logistics; and it could have done a better job in managing state-owned entities. He also identified rent-seeking as being fundamental to the lack of change in the structure of the economy, which has not created new assets or wealth. "Rent-seeking is at the essence of state capture because of the [current model of redistribution]," he said. "The narrow interpretation of redistribution is changing the ownership of current assets. "Simply changing the colour of ownership without restructuring the economy will create a new [black] elite," charged Jonas. By the same token, the private sector could have also done more, said Jonas, citing as an example the fact that banks could allocate more capital. But the state remained concerned about the low levels of fixed-asset investment and needed to work on lifting business confidence to unlock this investment, Jonas said. (BDLive)

PUBLIC SERVANTS IN RUSH TO DECLARE INTERESTS

The new disclosure framework of the Public Administration Management Act has resulted in an unprecedented increase in compliance with the stipulation that public servants declare their business interests. The cabinet’s governance and administration cluster listed 3 600 instances of public servants facing disciplinary processes, dismissal or prosecution for failing to comply with the framework of doing business with the state. There was no prohibition on doing business with the state before the act was promulgated. Since the enactment, national and provincial government departments have seen an unprecedented rise in the number of declarations of business interests by public servants. The act effectively bans public servants from doing business with the state through ownership of a business that supplies goods and services to a government department. (BDLive)

ANGLO VOWS TO REIN IN EXECUTIVE REMUNERATION

Anglo American has delivered on its promise and pared back the scope for mining executives to be excessively rewarded as a consequence of surging commodity prices and favourable exchange-rate movements. The undertaking to limit rewards was not as much as some shareholders demanded at the 2016 annual general meeting, but it marked an effort to ensure that executives do not score big remuneration payouts for developments beyond their control. In particular, it should help ensure that executives do not pocket hefty bonuses in times of negative returns. The mining group’s remuneration committee is also trying to limit the profit accruing to executives when they are awarded large tranches of shares during a slump in the share price. (BDLIVE)

OUTSURANCE WOES WEIGH ON RMI

Rand Merchant Investment Holdings (RMI) says it is focused on bolstering slowing new business growth in Outsurance, in which it holds a majority stake, after the insurer warned of  lower future premium income if market conditions persisted. Weak new business growth in the South African personal lines business and fierce competition in Australia and New Zealand, where Outsurance traded as Youi, weighed on growth for the six months to December 2016, RMI CEO Herman Bosman said on Monday. RMI holds an 83% stake in Outsurance. New policies fell 25% to ZAR1.6 billion from the comparable six months a year ago. It is the first drop in new business in five years. (BDLive)

SACOIL JOSTLES FOR POSITION IN VALUE CHAIN

JSE oil stock SacOil, where former Reserve Bank governor Tito Mboweni is chairman, has unveiled a strategic deal to buy Phembani Oil, a large South African oil company. Phembani Oil’s only asset is a 71% direct interest in Afric Oil Group, one of the largest independent fuel distributors in South Africa that distributes over 30 million litres of fuel monthly to local and national government, mining and construction companies. The acquisition will cost a maximum of ZAR200 million in Sacoil’s bid to solidify its position in the oil industry value chain. (Sharnet)

HOMECHOICE DECLARES DIVIDEND DESPITE TOUGH TIMES

Home-shopping and digital retailer HomeChoice International declared a dividend of 87c per share in the release of its financial statements for the year to end-December. The group’s revenue rose by 19.3% to ZAR2.7 billion and total profit and comprehensive income increased 7.7% to ZAR424.8 million. This growth took place despite tough economic and trading conditions in SA, the fall in the prescribed minimum interest rate and the increased restriction in the unsecured credit market. Revenue in all its divisions increased but the strongest growth was in retail sales, which were up 25.1% to ZAR1.5 billion. (BDLive)

POUND PUMMELED OVER BREXIT FEARS

The British Pound tumbled against all of its Group of 10 peers as London traders sold down the currency after UK prime minister Theresa May was given the go-ahead to trigger Brexit in the last week of March. The sell-off comes a day after Scottish first minister Nicola Sturgeon signaled the start of a legal process for an independence referendum, while the UK parliament gave May permission to start Brexit talks. (Fin24)

US STOCKPILES BEDEVIL OPEC PLANS

Oil held losses below US$49 (about ZAR648) a barrel before US government data forecast to show record crude inventories expanded further. Futures were little changed in New York after losing 9.2% the previous six sessions. US stockpiles probably increased by three million barrels for a 10th week of gains, according to a Bloomberg survey before data from the Energy Information Administration tomorrow. OPEC is due to release its monthly report later today that will show production figures for February, while Kuwait wants to extend the six-month OPEC-led deal to cut output beyond June. (Fin24)

OTHER NEWS, NOTICES AND APPEALS

DOING BUSINESS IN NIGERIA ON THE AGENDA
The author of Business in Africa, Di Games, is speaking at the Durban Country Club on March 24 about doing business in Nigeria. Hosted in conjunction with Trade and Investment KZN and Intertek, the presentation will cover an overview of the Nigerian economy, its efforts to diversify its oil-based economy, and opportunities for foreign companies. Proceedings start at 8 am and includes an English breakfast and while there is no cost, an RSVP is required. For more information, see www.sa-ncc.co.za, www.tikzn.co.za and www.intertek.co.za. To RSVP, contact 082 331 4225 or gamesdianna@gmail.com.

Providing your team with skills to get the job done

Simply Communicate workshops at

Pietermaritzburg Chamber of Business

08h30 – 12h30

Trainer: Ian Webster

Ensure your people are the differentiating factor in your business. Bring them to a Simply Communicate workshop or host one in house. Book now for:

HR: You’re On Your Own            
16 March 2017
For the person landed with the HR job, the issues and details you need to know about from a friendly guide who has been there. Book Now.

Managing Discipline           
4 May 2017
A joint PCB-Simply Communicate workshop. Making discipline work in your business and managing fair and ‘safe’ dismissals.

Business Ethics               
11 May 2017
Ethical businesses are more sustainable. Discover the ethical decisions that are critical in your business. 
 

Cost per workshop: R710 pp; R670 pp for 3 + delegates. NPOs R630 pp.
Bookings: Ian Webster 083 321 0699 or ian@simplycommunicate.co.za

Simply Communicate: People-management expertise for your workplace

PEOPLE MANAGEMENT FORUM

THE FORUM FOR HR PROFESSIONALS TO DISCUSS AND ADDRESS CURRENT
AND DIFFICULT HR MATTERS 
•    The New Union Federation.
•    Unemployment Insurance Fund Amendments.
Chaired by Raj Seeparsad - G.U.D. Holdings (Pty) Ltd.
ANY OTHER MATTERS CAN BE RAISED AT THE MEETING OR PRIOR  TO THE MEETING , AN E-MAIL CAN BE SENT TO HEIDI JADOO: pcb@pcb.org.za 
16:00, Chamber House, Royal Showgrounds, R50 non members