Economic review

Zim economic slide continues: Zimbabwe had failed to repay its debts to the IMF by the end of June. This closes down the possibility of further loans from that institution.

La Niña looms: with the agriculture sector to revert to a normal weather pattern, agricultural futures are becoming more attractive.

Lean, aggressive, perhaps but dicey: After Hours Capital works on the basis that it seeks to double the value of investments in 90-day cycles and limit losses to 25%. Why invest at a return of 8% when you can have that! (Seriously, I’m kidding)

It’s an ill wind: it is interesting to listen comments for and against Brexit. Frankfurt has now done what some have predicted: it has forged ahead in the planned merger of its Bӧrse with the London Stock Exchange.

Some time back we were repeatedly warned that Nigeria was taking over as one of the better performing South African states rather than South Africa and hence the African destination of choice. News is filtering through that the Nigerian banking industry may not be healthy. It’s central bank has stepped in to replace the CEO, chairman and ten directors of Skye bank in the past week.

Business review

I understand that the Department of Water Affairs is has embarked on a validation and verification of water licences on farms drive and that they will shortly be visiting the Vryheid area. I have a contact, who for a fraction of what the big guys charge, will regularise your licences. E-mail me.

Another regruk on the cards? SAA has once again failed to submit its financials. Whatever one says, our national airline simply is not an institution one can even begin to be proud of. The repeated multi-million Rand plans to improve, fail with monotonous regularity. At the same time the rumpus caused by its appointing an unknown ”boutique financier” to advise on the restructuring of its R15bn debt at a proposed R256m fee, is quite scary. R15bn debt? Turnaround?

A significant step towards greater internet access in South Africa is on the cards in that we are reportedly on the brink of selling further broadband spectrum. At the same time MTN has slashed the price of its fibre broadband bundles by 50%. Possibly it has an eye on the future, given the above news?

Telkom has been exempted from the preferential procurement requirements by the Minister of Finance in order that it is able to compete more effectively in a highly competitive and fast-changing world. One is tempted to make unflattering deductions from this on the underlying procurement policy?

If you are Eskom, how do you collect overdue electricity dues if a municipality does not pay up? Technically the municipality has no assets that you could attach without doing irreparable societal harm. Cutting off the electricity punishes the wrong people. This institution has now offered to write off all interest if a municipality pays up.

Property review

To boldly go: an interesting development is that the Government Employees Pension Fund will be investing R10.5bn in the construction of housing for households that earn too much to receive a government subsidy but too little to receive bank subsidies. Commendable. Questionably possibly, because very few venture into this market. But then, government employees are very well paid in South Africa and it is probably meet that they plough something back into our economy other than just their spending.

ABSA predicts a real house price deflation of between 2 – 2.5% this year.

A Constitutional Court decision on Friday will change the position of farmworkers on farms for ever. A seasonal worker had been dismissed and evicted by his employer after working on a farm for many years. His spouse took the matter up and argued that in terms of ESTA she also had rights to the land. The Constitutional Court found that she had a direct and substantial interest in the eviction order and should have been joined in prior proceedings, which omission vitiated the entire proceedings. For the purposes of ESTA she had the status of being an occupier.

Klaase CCT 23/15

Investing in listed property? Perhaps, on balance such shares have done well. However, smaller listed companies have not kept up and, a recent report holds that at least three of the smaller counters had lost much of their value.

Practice review

For courts has suggested proposed changes to the summary judgement rules for the High Court. If this interests you ask me for a copy.

An interesting development is a request for the expulsion of the higher Cape Bar from the General Council of the Bar over its failure to amend its constitution to require that 50% of its council should be nominated by the Advocates For Transformation, as is the case at the Johannesburg and Pretoria bars. That Bar’s constitution provides that 50% of the members of its council should be black; i.e. not requiring organisational affiliation for such representatives. Off-hand there seems to be little merit in this. Why should an organisation represent all Blacks?

Cases

PAJA and personal rights emanating from a contract of sale

One often finds that properties are sold with a provision that, on subdivision, certain parts thereof would be transferred back. In this case the person taking transfer, on-sold the property to another and it again to another. In the process, the undertaking to re-transfer was dropped. The original seller wanted access to the contracts of sale. It then applied under PAJA for access to such information. The court decided that these rights were covered by the act and the information had to be provided.

Property Master http://www.saflii.org/za/cases/ZAGPJHC/2016/167.html

As someone not versed in medical negligence causation I am not really able to judge the case that follows: this deals with the failure to refer a patient with an unusual/for specialised treatment and whether the results that followed on this could have been prevented. For specialists only:

Chapeikin SCA case 103/2015

Labour matters

On Friday the Constitutional Court decided, in the matter of Solidarity versus the Department of Correctional Services, that the demographic profile of the region had to be used in assessing the numerical targets to be applied for employment equity. CCT 75/15

Quotables

“The best fate for Africa would be if the old colonial powers, or their citizens, scrambled once again in her direction; on the understanding that this time they will not be asked to feel guilty." Boris Johnson

(Imagine this gentleman – now the British Foreign Secretary – in Europe, possibly not PC but probably acceptable. Imagine him in Africa!)

Comment

Litigation drag: popularised by….; the SABC seems to be embarking on delaying tactics termed “lawfare” in our press. In the background one senses that there are forces within the ANC that support this move and forces against. One wonders who will come out tops in the longer run?

The gnomic statement by Prof Fioromonti (UP) that “teaching and learning must be an emancipatory experience for life, not just to get jobs”, is all very well but, in practice, education is regarded by most of the poor and indeed their families,primarily as a means of escape from poverty.

On the rise of women: “To promote a woman to bear rule, superiority, dominion, or empire above any realm, nation, or city, is repugnant to nature; contumely to G*d, a thing most contrary to his revealed will and approved ordinance; and finally, it is the subversion of good order, of all equity and justice.” John Knox will probably have to eat his words, given our current history.

Lighten up

'My vrou speel met die gedagte om vir haar 'n skottelgoedwasmasjien te

koop.' 'Jy is baie gelukkig. Myne glo sy is met een getroud!'

When I lost my rifle, the Army charged me $85. That’s why, in the Navy, the captain goes down with the ship.

The Revenant (2015).  An epic tale of one man’s desperate journey to  do whatever it takes to finally win an Oscar.