LEWIS Simelane’s article “SA too harsh on itself” (Business Report, September 5) raises a major issue which needs your editorials and features to flag this debate and give it more exposure in Business Report and your sister newspapers.
Every index which relies on business opinion instead of the facts – the corruption perceptions index is the most important of these – trashes South Africa as worse than Third World countries that do not even begin to compare with South African standards.
The obvious reason is that these indices rely on opinions of a business class that is overwhelmingly white and overwhelmingly votes DA for their perceptions of a government that is overwhelmingly black and most of whose civil servants vote ANC.
Political party resentment and racial anxieties result in outlier opinions that do not correspond with the facts.
The corruption perceptions index, for example, fails to ask business executives for metrics, such as how many times over the past 12 months they have confronted demands for bribes, and compare this with previous years. Instead, it merely asks for their ill-defined “perception” of corruption. The most extreme example of this was some 15 years ago when the rand suddenly nosedived against the pound. Commentators and one ratings agency announced that “the market says” that this was due to former president Thabo Mbeki’s policy on Zimbabwe.
When the rand later returned to its normal exchange rate with no change in government policy towards Zimbabwe, not one such commentator nor ratings agency admitted they were wrong, still less apologised. Obviously we can infer the reason for their claim: the gut identification of white South Africans with the fate of white Zimbabweans – party preferences, inflamed by racial fears.
It was striking that none of those commentators simultaneously advised persons against investing in Italy even when the neighbouring country – Yugoslavia – descended into civil war and disintegrated into six states.
Keith Gottschalk
University of the Western Cape
Stanlib disrespects clients by Abil actions
WHEN I read about the fallout from African Bank Investments Limited (Abil), I had no idea that money market funds were affected.
However, Stanlib recently transferred large sums out of my two money market funds and placed them in Abil retention funds. They also charged over R1 000 for doing this. However, they have not bothered to contact me, or the public, about this or to give any explanation.
I think it is absolutely arrogant of them and shows no regard for their clients at all.
Mike Brown
Emmarentia
Net1 undermines gains of government grants
YOUR report, “Net1 eyes growth in Nigerian payments” (Business Report, September 1), refers. Serge Belamonte, the chief executive and chairman of Net1 UEPS Technologies, is quoted as defending Cash Paymaster Services (CPS) marketing airtime and loans to social grant beneficiaries because its loans are for no longer than six months. The report also refers to:
n Net1’s revenue climb by 76 percent (quarter to June).
n Net1’s intention to expand into Nigeria on the back of this increase.
n CPS’s contract with the SA Social Security Agency contributing 20 percent of Net1’s profit.
I am appalled. If our pensions and social grants are being handled by these profit-making ventures, it is no wonder they seek ways to exploit social security recipients. Has it occurred to our government that the poorest of the poor are bearing the burden of such exploitation?
I am aware of any number of social grant recipients who are baffled by the deductions being made from their modest incomes, so critical to addressing the vast gap between rich and poor. If Mr Belamonte has no social conscience, I appeal to our government to act to stop him in his tracks from making money out of the most vulnerable South Africans.
The gains of government’s roll-out of our social security network are being undermined. I hope Nigerians living here will also acquaint themselves with this shameful exploitation before it is too late.
Di Oliver Cape Town