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Daily Maverick
3 days ago
- Business
- Daily Maverick
Fact-checking the inaccuracies, half-truths and duplicity in the latest presidential newsletter
President Cyril Ramaphosa's latest newsletter is probably too long for most fellow citizens to make time to read, but it contains so many inaccurate, misleading and downright false statements that unpacking some of them is a worthwhile exercise. In the newsletter, the President refers to a statement made by the US State Department last year, in the context of a climate summit, and quotes the glowing terms from it: 'Last year's country Investment Climate Summit published by the US State Department highlights South Africa being an attractive investment hub, citing key factors such as deep and well-regulated capital markets, strengths in manufacturing stable institutions, an independent judiciary and robust legal sector, respect for the rule of law, a mature financial and services sector, and experienced local partners.' The President does not mention that these words are the work of the Biden administration, since replaced, in January 2025, by the Trump administration. Worse still, he leaves out the following portion of the State Department report for obvious reasons not unrelated to its gloomy and critical content: 'However, South Africa continues to suffer the effects from a 'lost decade' in which economic growth stagnated, hovering at zero percent pre-Covid, largely due to corruption and economic mismanagement, and a slow economic rebound post-Covid amid endemic logistics and energy crises. One of the biggest challenges to investment is persistent 'load shedding', South Africa's term for nationwide scheduled rolling blackouts. 'Other challenges include policy uncertainty, lack of regulatory oversight and enforcement, state-owned enterprise (SOE) drain on the fiscus, corruption, violent crime, labor unrest, lack of basic infrastructure and government service delivery, and lack of skilled labor. 'Moody's, Fitch, and S&P have affirmed South Africa's credit rating as stable but rate South Africa's sovereign debt as sub-investment grade. In February 2023, the Financial Action Task Force listed South Africa as a jurisdiction under increased monitoring, known as the 'grey list', to address deficiencies in its regime to counter money laundering and terrorist financing (AML/CFT). South Africa will remain under increased monitoring until it completes its action plan to strengthen its AML/CFT regime.' SA remains on that grey list and will likely languish there until necessary reforms to the criminal justice administration, needed to capacitate it to counter money laundering and terrorist financing, are effected. The Ramaphosa administration shows no urgency in this regard, despite the fact that while SA is on the grey list, borrowing (currently at an all-time high) will remain prohibitively expensive. SA services its debt at present at a cost of R1.2-billion a week, an amount the taxpayers can ill afford. Rule of law Ramaphosa suggests that his government shows fealty to the rule of law. He does not mention the recent trenchant criticism by Bonang Mohale, chancellor of the University of the Free State: 'The great problem for South Africa is rampant greed. [It] is essentially a problem for the once glorious African National Congress that has morphed into an organised crime syndicate, primarily because for a solid 30 years of our democracy, they held the absolute majority power in everything that matters.' 'Organised crime syndicates' by definition show no discernible regard for the rule of law. Fealty to the rule of law implies respect for property rights; indeed, that respect is built into the definition of the rule of law favoured by the World Justice Project. At the most basic level, it entails that: ' The rule of law ensures property rights by providing a framework of laws, institutions, and community commitment that protects those rights. It guarantees that everyone has the right to own property, both individually and collectively, and that no one can be arbitrarily deprived of their property. This framework also ensures that if property is taken, it is done in accordance with the law and with just compensation.' The abomination that is the new Expropriation Act envisages expropriation with nil compensation. The Constitution envisages 'just and equitable compensation' upon expropriation in section 25 of the Bill of Rights. The nil compensation does not have to be just and equitable on any reasonable interpretation of the new law. This renders it unconstitutional. It also exposes the government's lack of appreciation of the meaning of the rule of law. The Constitution itself regards the rule of law as supreme. Any attempt to dilute the rule of law has to have a 75% majority vote in Parliament, not the simple majority that passed the Expropriation Act. Independent judiciary Ramaphosa claims that there is an independent judiciary in SA. Has he forgotten the evidence he gave before the Zondo Commission of Inquiry into State Capture? There he revealed that the Bench in SA is regarded by the ANC as a site of cadre deployment. There is no better way to capture a judiciary than to deploy loyal cadres to serve on it. That is the death knell of independence. This ambiguous passage appears in the newsletter: 'President Trump agreed that the US should continue playing a key role in the G20, including attending the G20 Leaders' Summit in Johannesburg later this year, where South Africa will hand over the presidency of the G20 to the US.' Does Ramaphosa mean that Donald Trump is coming to the wreckage of Johannesburg later this year, or merely that the US will continue playing its key role in the G20 by sending a representative to Johannesburg? The answer is anyone's guess. Time will tell. There is more Orwellian doublespeak in this presidential observation: 'We were able to update US officials on the ongoing structural reform process underway to improve the ease of doing business and facilitate a favourable investment climate.' Every cautious would-be investor is acutely aware of the high violent crime levels in SA and also regards the rampant corruption, about which Bonang Mohale waxes so eloquent, as reasons to avoid making new investments in SA. Crime and corruption remain at unacceptably high levels and not enough is being done to address these barriers to new investment from which new jobs will flow. As long ago as 2011 the Constitutional Court ordered that a single body outside of the control of the executive (which Ramaphosa now heads) should be established to deal with corruption. No such body has been set up 14 years later. The binding nature of the court findings and the legal need to implement the criteria it set are ignored by a government that is content to allow State Capture, tenderpreneurism and the cosy type of comprador-capitalism that BEE laws and regulations have created (this despite recent polling that indicates that more than four in five of the SA population favour merit appointments over race quotas.) There is simply no political will to implement the 2011 judgment properly. This attitude is not indicative of fealty to the rule of law, nor of any real desire to create an investor friendly climate in SA. A great deal of new investment is necessary to attain secure peace, sustainable development on the embattled economic front and shared prosperity in which those genuinely previously disadvantaged enjoy the fruits of their currently hollow liberation. Progress bedevilled Before the formation of the Government of National Unity (GNU), the ANC and its tripartite alliance partners, the SACP and Cosatu, ruled the roost and created the BEE architecture that has so bedevilled progress in SA. The laws and policies in place have been trenchantly criticised by Professor William Gumede, but they are persisted in by the ANC element of the GNU. By now it ought to be screamingly apparent to any sentient observer that the BEE system has not served the constitutional purpose for which it was intended. The provisions of section 9 of the Bill of Rights contemplate redress via legislative and other measures designed to protect or advance persons or categories of persons disadvantaged by unfair discrimination. All that BEE has in fact achieved is the enrichment of ANC cadres and their friends in business. Those genuinely disadvantaged continue to languish in poverty. This fact is illustrated by the increase in the Gini Index, which is now the highest in the world among the 130 countries that produce a Gini Index and considerably higher than it was in SA when democracy dawned. The BEE system does not properly serve the purpose for which it was created. It should be scrapped in favour of the economic empowerment for the disadvantaged — the EED system proposed by the SA Institute of Race Relations. Whether the GNU will be able to break the shackles on progress that is in place due to the ANC fealty to its National Democratic Revolution (NDR) remains to be seen. The NDR is deeply and darkly inconsistent with constitutional principles, but the abandonment of the NDR would not suit that 'organised crime syndicate' to which Mohale refers. The private member's Bills introduced by the co-chair of the Justice Portfolio Committee, Glynnis Breytenbach, envisaging a new Chapter Nine Anti-Corruption Commission that will be set up in a constitutionally compliant way to deal with corruption, are currently undergoing processing in the parliamentary back office. Before the GNU dawned, Breytenbach was the DA's shadow minister of justice. Before that, she was a senior prosecutor, and she knows the National Prosecuting Authority inside out. Her suggested reforms deserve accelerated parliamentary debate and consideration. The DA and AfriForum have separately challenged the constitutionality of the Expropriation Act in litigation currently pending. New BEE regulations are similarly being challenged for want of constitutionality, also by the DA. There is furthermore a plethora of constitutional litigation around the National Health Insurance legislation. If the government that Ramaphosa leads was true to the clear intentions of the Constitution and showed greater fealty to the rule of law, these litigious efforts would be unnecessary, the criticisms would be taken to heart, the State Department's reservations recorded above, but omitted from his latest newsletter, would be taken more seriously and would be acted upon rather than omitted from the newsletter. DM
The Guardian
3 days ago
- Entertainment
- The Guardian
London tunnels that inspired James Bond creator will become spy museum
During his time in military intelligence, Ian Fleming, the author of the James Bond novels, regularly worked with Winston Churchill's spy organisation based 30 metres below ground in a labyrinth of tunnels in central London. The Kingsway Exchange tunnels complex, stretching out across 8,000 sq metres beneath High Holborn, near Chancery Lane underground station, hosted the Special Operations Executive (SOE) and is said to have inspired Q Branch in Fleming's novels. So it seems appropriate that plans to breathe new life into this long-abandoned second world war subterranean network will include a permanent exhibition about the history of military intelligence and espionage. The Military Intelligence Museum is to collaborate with the London Tunnels company, developing the complex to showcase its original artefacts, equipment, weapons and documents in a modern hi-tech experience at the proposed new £220m London tourist attraction, which is planned to open in 2028. Today the tunnels remain closed, but inside they yield many clues to their fascinating past. Construction began in 1940 to protect Londoners during the blitz but was not completed until 1942, so the tunnels were never used for their original purpose. A wide set of stairs remain, where those fleeing the Luftwaffe could descend from Chancery Lane tube station, though the entrance has long been blocked off. Later in the war, the SOE moved in to dream up all manner of imaginative ways to thwart the Nazis. The tunnels' next incarnation was as the Kingsway telephone exchange, which in the 1950s served as an internal communications exchange during the cold war. An artesian well, to provide fresh water to those stuck underground in the event of a nuclear attack, remains. British Telecom took over the site in the 1980s, creating the world's deepest licensed bar for use by the government staff. The old bar, decorated in then fashionable brown, orange and yellow, also remains, as does the long-disused staff canteen. The plan now is to create a new bar, with claims to be the deepest in any major city. Under the proposals, which have been granted full planning permission, the site will be developed into a three-in-one attraction – exhibitions, immersive interactive exhibitions and the bar. Exhibitions about James Bond and the cold war, as well as a memorial to the blitz, have all been mooted, and subjects will change regularly. Taking inspiration from venues such as Les Bassins des Lumières in Bordeaux, other spaces will provide fully immersive digital experiences. Sign up to First Edition Our morning email breaks down the key stories of the day, telling you what's happening and why it matters after newsletter promotion The London Tunnels said work was scheduled to begin in 2027, with completion in 2028. It aims to attract up to 3 million visitors a year, revitalising an area close to the City of London which has had reduced footfall since the Covid pandemic. The venue will provide 'the world's most authoritative permanent exhibition of military intelligence', said Gen Sir Jim Hockenhull, the commander of Strategic Command and colonel commandant of the Intelligence Corps. 'The tunnels will provide a dramatic and historic backdrop for an exciting new approach to telling the story of the past, present and future of military intelligence.' This exhibition will feature stories from the Battle of Britain and D-day, the extraordinary espionage operations of the cold war and the fight for the Falklands to peace-keeping missions and the terrorist threat of the 21st century. A special exhibition, created by the museum, will be dedicated to the SOE. Angus Murray, the chief executive of London Tunnels, said: 'The tunnels, built and designed to protect Londoners during the blitz, are the ideal backdrop to tell the remarkable, and untold, stories of the men and women who played a vital role in protecting Britain then, and the role of the armed services protecting Britain today.'
The Herald Scotland
4 days ago
- Science
- The Herald Scotland
'World's first' diving expedition to secluded Scottish shoreline
The team was made up of a marine archaeologist, a Royal Engineer bomb disposal diver, two marine biologists and a world-record-holding female powerboat racer. They were led by marine conservationist, broadcaster and former Royal Marine Monty Halls, whose most notable adventures include leading a multi-disciplinary team to the discovery of a sunken city off the Indian coast, three expeditions to Malawi to explore the ecosystems of the famous freshwater lake, and one to South Africa diving for evidence of prehistoric settlements in cave systems off the Cape. READ MORE: The successful expedition, which took place between May 17-24, found munitions, debris, and relics of the first amphibious training operations run the Commandos and SOE – the Special Operations Executive. The historical remnants, left on land and the seabed during secret military training during WWII, have helped build a picture of what was involved in the preparation. Using methodical surveying techniques to find relics beneath the sand, the team's diving operations were the first ever to take place where the amphibious landings had been rehearsed from June 1940 onwards.
The Citizen
5 days ago
- Business
- The Citizen
Salaries decreased by 2% in April, but higher than a year ago
If you feel that your wallet was a bit emptier in April than the month before, you are not alone. Salaries did decrease in April. Salaries decreased by 2% in April compared to March, but are still higher than a year ago, as take-home pay slowed again. Mounting pressure on salaries also puts this week's interest rate decision in the spotlight, raising hope for relief among salary earners. According to the Bankservafrica Take-home Pay Index (btpi), the average nominal take-home pay recorded a second consecutive month of moderation in April. The Index reflects data from approximately 3.8 million salary earners. 'The nominal average take-home pay declined to R17 495 in April 2025, down 2.0% from R17 846 in March. 'Despite this deceleration, levels remain significantly higher than the R15 370 recorded a year ago,' Shergeran Naidoo, BankservAfrica's head of stakeholder engagements, says. He points out that the upward trend in take-home pay from the middle of last year marks a positive development after years of sluggish growth and salaries lagging behind inflation. However, he says, the escalating global trade war has dampened sentiment worldwide, affecting confidence in South Africa and slowing economic activity as investors and households pull back on their spending. ALSO READ: Here's what some of South Africa's SOE bosses earn Economic forecasts not great, affecting salaries too Elize Kruger, an independent economist, says although the worst-case scenario for the trade war impact seems to have been averted, economic growth forecasts were trimmed notably for the global economy, while local growth prospects are also expected to disappoint. 'This could hurt employment and earnings prospects of salary earners in South Africa in the coming months.' Real take-home pay, adjusted for inflation, also moderated by 2.2% to R15 005 in April 2025, compared to R15 344 in March, but is still notably higher than a year ago. 'The significant moderation in consumer inflation during 2024 had a positive effect on the buying power of salary earners and the scenario is continuing into 2025, with the latest headline inflation figure at only 2.8% for April 2025,' she says. With headline CPI now forecast to average to be around 3.4% in 2025 compared to 4.4% in 2024, it will be the lowest annual rate since the 3.3% recorded in 2020. The recent increase in the rand exchange rate, combined with a lower international oil price will result in further fuel price declines in June despite the increase in the fuel levy, while the sluggishness in the economy keeps demand-driven pricing pressures well contained. ALSO READ: Capitec CEO tops banking pay charts — but how do staff salaries compare? A look at how SA's top five banks pay 2025 expected to be a good year for salaries 'With this favourable inflation scenario, 2025 will likely be the second consecutive year of positive real take-home pay growth, supporting demand in the economy,' Kruger says. However, with the elevated cost of living, additional taxes announced in Budget 2025, with no adjustment to tax brackets and an inflation-related fuel levy increase, as well as continuing high interest rates, salary earners remain under pressure. Early indications are that the real gross domestic product (GDP) growth rate for the first quarter of the year will likely be zero, or even negative. With the current repo rate at 7.5%, the real repo rate stands at 4.1%, which is a very restrictive stance if the neutral real repo rate of 2.8% is considered, Kruger says. 'A decrease in the cost of credit could go a long way to offer relief to households and the business sector, boosting confidence levels somewhat, while also lowering the hurdle rate on capital expenditure programmes. 'While a more aggressive cut would have been welcomed, the South African Reserve Bank (Sarb) is likely to cut interest rates by only 25 basis points at best at its Monetary Policy Committee meeting on Thursday.' ALSO READ: Increase in take-home pay in January shows positive start to 2025 Slightly higher salaries not enough – we need repo rate cut With the economy stalling in the first quarter and global pressures mounting, accelerating structural reforms is now critical. Tackling energy, logistics and governance challenges will help to unlock growth and buffer against external shocks. 'The current low inflation environment, supported by lower international oil prices and the rand's notable recovery in recent weeks, provides an opportunity for monetary policy to play a role in offsetting some of the pain inflicted on the economy by recent global developments, as many developing and developed economies have already done,' Kruger says. 'While the debate about lowering the inflation target band is ongoing, it should not prolong the pain inflicted on the economy by exceptionally high interest rates.'
Barnama
7 days ago
- Business
- Barnama
National Audit Dept Hosts Inaugural ASOSAI Meeting On State-owned Enterprises Audit
PUTRAJAYA, May 26 (Bernama) — The National Audit Department of Malaysia (NADM) is hosting the inaugural meeting of the Asian Organisation of Supreme Audit Institutions (ASOSAI) Working Group on State-Owned Enterprises (SOE) Audit from today to May 28 in Putrajaya. The meeting will bring together 41 representatives from 17 supreme audit institutions across Asia, including Brunei Darussalam, China, Georgia, India, Indonesia, Iran, the Maldives, Qatar and Yemen, with delegates from Jordan, Russia and South Korea participating virtually. In a statement today, NADM said the establishment of the working group was officially endorsed during the 16th ASOSAI Assembly held in New Delhi on Sept 24 last year, with Malaysia appointed as Chair this year. 'This initiative is the first under ASOSAI to focus specifically on strengthening the audit of SOEs among Asian countries. Its primary objective is to enhance the capacity and effectiveness of supreme audit institutions in strengthening governance, ethics, accountability and sustainability within the public sector,' it said. The meeting will finalise the key foundation documents of the working group, namely its terms of reference, work plan and a proposed framework for the SOE audit guidelines, as well as address the challenges of developing such guidelines. NADM added that one of the main outcomes of this initiative is the development and publication of the first-ever regional SOE audit guidelines in Asia, which will assist ASOSAI members in enhancing their audit approaches and governance. 'Given the complexities of SOE auditing, such as the vast number of SOEs in some countries, their cross-sector roles and diverse regulatory environments, a harmonised set of guidelines is crucial to standardise audit practices and promote consistency,' NADM said. The guidelines will also serve as a reference in updating NADM's existing SOE audit framework, aligning it more closely with international standards and best practices. In line with the recent amendment to the Audit Act 1957, the number of SOEs placed under the department's purview has increased significantly.
