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Current Edition >> Archives Section >> Spot Coverage >> 1-15 Sep 2006


Sakeflitse / Pointers


Campaign launched for Cleanest Municipality in the Free State: The Department of Tourism, Environmental and Economic Affairs is launching today a campaign to find the Cleanest Municipality in the Free State. The event will take place at Deneysville in the Refengkgotso Community Hall 10:00, where MEC Neo Masithela will officiate. The proceedings will start with a “battalia” of 300 cleaners descending on Refengkgotso armed with brooms, trucks and other cleaning equipment to remove tons of rubbish. The campaign in the Free State will further consist of a four–month clean-up project in which a total of 1 495 workers will be employed in all 20 municipalities of the Free State at a total cost of R3 588 000. Collectively, the municipalities have 299 wards from which five people per ward will be employed by the DTEEA and the municipalities will employ an additional five people per ward. This project will culminate into the Cleanest Municipality Award to be announced on 19 November 2008. For more info, tel. (051) 400 9547.

Nog baie kamers nodig vir WB 2010: Volgens mnr. Dan Moyo, waarnemende hoof van die nasionale Plaaslike Reëlingskomitee vir die Sokker Węreldbeker 2010, is slegs 5 327 nie-hotelkamers en 20 000 hotelkamers, d.w.s. 25 327 van die benodigde 55 000 kamers vir die 2010-toernooi geakkrediteer. Dit beteken dus dat nagenoeg 30 000 geakkrediteerde kamers nog benodig word. Moyo is ook optimisties oor die gereedheid van die land vir die toernooi ondanks vertragings huidiglik met die bouwerk van stadions. Voorts sę hy dat Eskom en die Dept. van Minerale en Energie die versekering gegee het dat vir die 32 dae duur van die toernooi daar geen kragonderbrekings sal wees nie. Daarby verseker die SAPD die veiligheid van sokkerondersteuners, terwyl die verbetering van vervoerinfrastruktuur op koers is.

Weer Skou vir Welkom: Dit is aangekondig dat 'n skou vir Welkom weer gehou gaan word en wel van 25-27 September 2008 by Rovers Klub. Dit word gereël deur Gerrie de Bruyn van Polokwane, tesame met 'n professionele span. Hulle sę dat van die hoogtepunte gaan wees sowat 150 uitstalruimtes, groot markiestent, mej. Skou, babakompetisie en kunstenaars soos Nicolis Louw, die Campbells, Nadine, ens. Vir meer inligting, skakel (057) 296 3074 of 072 248 9424.

Awards for Free State community media: The Free State Office of the GCIS has taken the initiative to set up Community Media Awards for journalists who “diligently serve the communities of the province by enriching their lives with information and news of excellence”. In this way the standard of local journalism could be raised and objective and ethical reporting encouraged. The competition is open to all Free State community media journalists in various categories and in any one of the 11 official languages. The closing date for the competition is 30 August 2008. For more information, contact Trevor Mokeyane at (051) 448 4504 or 083 255 0042.

Toyota SA loses 600% in profit after tax: Toyota South Africa's profit after tax plunged by more than 600% to R61.6 million in the year to March, despite its revenue increasing by 14% to R35.06 billion. Wesco Investments, whose only remaining investment is a 25 percent shareholding in Toyota SA, disclosed this month when reporting on its own results for the year to March. Wesco advised shareholders last week that the company had entered into discussion about the proposed disposal of its 25% stake in Toyota SA with Toyota Motor Corporation of Japan.

New African Commodities exchange in Botswana: According to a report in Engineering News, the new African Commodities Exchange to be opened shortly in Botswana looks set to bring jobs, tax revenues and the transfer of technology and expertise to that country. Multi-Commodity Exchange Africa will provide a platform to trade agricultural commodities, oil and metals across Africa. The exchange will operate on a hub-and-spoke model, with the hub located in Botswana under the country's International Financial Services centre. Financial Technologies India is promoting the exchange.

Chinese in Bloem: The Bloemfontein Chamber of Commerce and Industry is to host a business luncheon on 4 July 2008 at Ilanga Estate, with the main speaker the SA Consul General of the People's Republic of China, Mr. Fang Li. He will discuss specific investment and trade opportunities between China and Bloemfontein / Mangaung as well as the central region. For more info, contact Eben Theron at (051) 447 3368 or bcci@intekom.co.za.

Questions on R1,5 million improvements to mayor's residence: No substantial answers have as yet been provided on questions about security improvements done amounting to some R1,5 million from municipal funds to the private residence of the executive mayor of Matjhabeng Local Municipality, Ms. Mathabo Leeto. The latter says she bought the house, in Odendaalsrus, for R60 000, but has no knowledge of a tender accepted within the municipality authorising the expenditure on security improvements of R1,5 million. Nobody else in the municipality, including the then municipal manager, Dr. Benny Malakoane, has responded as yet to enquiries.

Hennenman declares boycott against municipality: As far as known, Hennenman / Phomolong is the first municipal unit in the Free State to declare a dispute against a municipality (Matjhabeng) and go over to withholding rates and taxes because of poor service delivery. The Hennenman Residents Association declared the dispute on 27 May 2008 and gave the municipality 14 days to respond. No reaction has as yet been forthcoming. Residents themselves painted, fixed and cleaned the streets of Hennenman and Phomolong this year. Membership lists have been placed at strategic businesses in Hennenman where the residents of Hennenman and Phomolong can sign up to officially be part of the campaign, with no membership fee involved. The declaration states that residents do not intend to refrain from paying these tariffs and charges, but instead to deposit them in a trust account, pending the outcome of the dispute. ngaung Munisipaliteit maandelikse verlies: Volgens syfers syfers verstrek deur die Vryheidsfront Plus in 'n debat van die Munisipale Raad van Mangaung dui die laaste beskikbare finasiële verslae daarop dat die uitgawes van die munisipaliteit die inkomste oorskry met gemiddeld R11,3 miljoen per maand. In antwoord daarop het die uitvoerende burgemeester, me. Gertrude Mothupi, gesę 'n draaistrategie om die finansiële toestand te verbeter, gaan eersdaags in werking gestel word.



United front against two draft laws on land and property expropriation


A united front has been formed with raging momentum against the proposed new Land Expropriation Bill and the proposed changes to the Land Use Management Act. The Land Expropriation Bill makes provision for expropriation of land, not only agricultural but also urban and by the Minister of Agriculture and Land Affairs “in the public interest” at her discretion and at prices not necessarily related to the principle of voluntary-buyer-voluntary-seller. Instead “in public interest” and “to the benefit of the community” are being raised as the norms. Provision for practical recourse to courts of law is also being limited. The proposed amendments to the Land Use Management Act empowers amongst others the Minister to expropriate movable property of farmers, with only the government authorized to determine compensation. What the proposed provisions of both these laws come down to, is that the Minister on behalf of the government may at discretion not only expropriate and redistribute agricultural as well as urban land, but also movable property such as tractors, agricultural machinery, livestock, money, shares, cars, etc. Opponents to the two bills are unanimous that the provisions are unconstitutional, that it intends to remove one of the age old cornerstones of the SA economy, namely the right to property ownership. As such the implications of the two bills would affect also the economy of the Free State as well as business and development in the province radically. The Democratic Alliance has stated emphatically that it would fight the two bills up to the Constitutional Court, while the ACDP has registered 24 objections in principle. The Freedom Front Plus says the bills place economic stability and food security in SA in jeopardy. At two public hearings in the Free State, on 2 June 2008 at Bethlehem and on 3 June at Grasslands Phase 2, Mangaung, organised agricultural and other affected parties and persons turned up in droves to voice their opposition. Mr. Louw Steytler, president of Free State Agriculture, described the draft Expropriation Bill as “Zanu-fication”, emphasizing that it could spell the beginning of the end to food security in the Free State and the rest of the country. At the meeting at Bethlehem, the chairperson of the Portfolio Committee who was to chair the meeting, arrived an hour late. Questions are being asked about the transparency of the public hearings, with allegations that notices given were poorly distributed and as a result many roleplayers received notices too late in respect of hearings in their areas. Meanwhile, Mr. Moeletsi Mbeki, Vice-chairperson of the SA Institute of International Affairs, has stated that now for the first time since the Anglo-Boer War (1899 – 1902) SA has become a nett importer of food, noting that 98% of the country's food derives from commercial agriculture. The Northern Cape MEC for Agriculture, Ms. Tina Joemat-Petterson, questioned the constitutional legality of the proposed Expropriation Act in the Northern Cape Legislature, especially the recourse which affected parties would have to a court of law. On 12 June 2008 diverse organisations and parties such as Agri SA, the Transvaal Agricultural Union (TAU), Solidarity, the Agricultural Employers Association, the National Ratepayers Union, the FF Plus, Afriforum, Regslui vir Afrikaans, the FW de Klerk Foundation, the Afrikaner Front, etc., held a meeting in Johannesburg and formed a common front against the proposed legislation, working on a joint counter-strategy. In a media statement, the president of the TAU, Mr. Paul van der Walt, observed that “the two bills are in tandem with each other – a deadly combination which will impact negatively on the agricultural sector. No camouflage whatsoever can make this bill acceptable. A so-called democratic process is being abused by a government with a two third majority in the process of creating a situation even worse than in Zimbabwe. The communists of the old Soviet regime would have been hard put to surpass such a situation”. Van der Walt moreover points out that in terms of this new legislation, “the government will retain expropriated land, implements and stock in trust until it will be transferred to the 'emerging' farmers. It is clear that even before suitable farmers are identified, the land will be transferred to government. This is pure communism, where government takes control of everything. The SA government has already gained control of underground water and mineral rights.” It is thus clear that these two proposed bills have the potential to split the SA economy in two like none ever before, with probable devastating consequences.



AG report reflects poor state of Free State municipalities


Following an audit by the national Auditor General, Terence Nombembe, it would seem that the performance of a growing number of Free State municipalities are so weak that they are to be placed under administration. Announcing the auditing of Free State municipalities for the financial year 2006/07, Nombembe pointed out that 19 of the 25 Free State municipalities were audited, with none of them receiving an unqualified audit with no outstanding matters. The municipality faring the best is Tswelopele Local Municipality, serving Hoopstad and Bultfontein, having received an unqualified audit, but with matters outstanding. The financial records and reports of 10 of the 19 municipalities were so below standard that they did not merit an audit opinion. Qualified audits were allocated to three district municipalities, viz. Motheo, Fezile Dabi and Lejweleputswa. Three local municipalities – Kopanong (Trompsburg), Metsimahole (Sasolburg) and Setsoto (Ficksburg) received qualified audit opinions. Because of poor financial record keeping one district municipality and nine local municipalities did not receive any audit opinion: Thabo Mofutsanyane and Dihlabeng (Bethlehem), Masilonyana (Theunissen), Matjhabeng (Welkom), Mohokare (Zastron), Moqhaka (Kroonstad), Nala (Bothaville), Naledi (Dewetsdorp), Ngwathe (Parys) and Nketoana (Reitz). Municipalities of which their finances were in such disarray that an audit could not be compiled, is the Xhariep District Municipality and the local municipalities of Letsemeng (Koffiefontein) and Maluti-a-Phofung (Harrismith). Three municipalities were not able to submit any financial statements: Mafube (Frankfort), Tokologo (Boshof) and Phumelela (Vrede). Meanwhile, the Xhariep District Municipality and the Mohokare Local Municipality have been placed under administration by the FS Dept. of Local Government and Housing, while there seems to be a possibility that a further 10 municipalities in the province could be placed under administration shortly.



R120 million foreign aid for Free State suspended


Some R120 million earmarked by the Flaanders International Co-operation Agency (FICA) in Belgium for the raising of standard of living in the Xhariep district and for the establishing of SMMEs in the Free State, has been suspended because of inadequate response by the Dept. of the Premier. This was revealed in the Free State Legislature when the Portfolio Committee on Finance raised some penetrating questions. It would seem that very little of the available money has been spent, while the agreements for some of the approved projects have not even been signed. In response FICA has delivered some negative reports. Now the implementation of the funds has been temporarily suspended pending interventions to be made by the Dept. of the Premier and the Free State Treasury. Opposition parties in the Legislature were particularly harsh in their criticism for the inability to utilise the much needed development funds.



Mothupi vs. Mayoni


It is common knowledge that a battle to the hilt is raging within the Mangaung Local Municipality between the two most powerful office-bearers – the Executive Mayor Ms. Gertrude Mothupi and the City Manager Mr. Thabo Manyoni. Stemming from differing political views, the power struggle has but paralysed the municipality, spinning off into a continuous stream of public complaints in the media about service delivery on a wide front. Water and sewerage leaks, streets and sidewalks in disrepair, deficient municipal services and glaring lack of maintenance of municipal infrastructure abound. While not all problems could be related to the split, the situation is being complicated with the municipality's finances, based on a reported monthly nett loss of about R11,3 million, is in dire straits. A clash between the mayor and the manager on how this should be addressed in the budget now being tabled for 2008 / 09, is reportedly ongoing. Apparently Mothupi favours drastic cut-backs towards a turnaround strategy, while Manyoni is a proponent of fast-tracking elimination of service backlogs in township areas and at Botshabelo and Thaba Nchu. The bigger picture is that the clash forms part of the struggle for power within the Free State ANC, with Manyoni as one of the right hand men of provincial leader Mr. Ace Magashule. Mothupi finds herself outside this camp, together with her sister Ms. Charlotte Lobe, a previous top leader in the party, currently sidelined by the party. It is also known that Mothupi is concerned about performance by top management in the municipality and about the degeneration of municipal infrastructure in the established parts of the city. Concerns have been raised by opposition parties in the Mangaung City Council about the state of preparedness of Bloemfontein / Mangaung as host city for the soccer bonanza in 2009 and 2010. At this stage the outcome of the struggle is in the balance, but whichever way it turns out, it is sure to impact heavily on development and business in the Free State's capital and ultimately on the province itself.



Higher interest rates low blow to public


The practical effect of the recent interest rate hike of a further half a percentage point comes as a serious blow for debt-laden consumers, says Johannes Najoe of Sanlam in Bloemfontein. He says this applies in particular to those who are still paying off their homes and vehicles, have large clothing and furniture accounts, an overdraft and substantial credit-card debt. To crown it all, the inflation rate is already above 10%, which reduces buying power considerably. Najoe says it is for the layman not always easy to understand the cause of this double onslaught on his personal finances. The inflation rate is already far above the target range of 3% to 6% and the best way of bringing inflation back to these levels is to hike interest rates. The Reserve Bank has no other option. It therefore makes borrowed money more expensive and by so doing discourages people from incurring debt. It reduces the demand for goods and services and therefore also the price thereof. The result is lower inflation. There are other ways of combating inflation, for example to compel banks to extend less credit to consumers, but this affects the essence of a bank's activities, for the less it lends, the less it earns from its credit extension activities, one of its main sources of income. The Reserve Bank's main instrument for influencing interest rates is the repo rate – the rate at which the Bank makes money available to the private banking sector. Any change in this rate filters through the entire interest rate pattern, because if banks have to pay more for their money, their clients have to do the same in order for the banks to remain profitable. Commercial banks in turn have no option but to increase their lending rates – the rates they charge their clients – as well. A logical result of higher interest rates is that the rate on savings rises accordingly. People with money in savings accounts, fixed deposits and credit balances on their credit cards and bank accounts therefore have a few extra rands in their pocket every time rates are increased. Thus higher interest rates don't mean just bad news for consumers. It is good news for pensioners in particular and also for those with a fixed income who are dependent solely on their interest income.



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