Duduzane Zuma pens open letter to Pravin Gordhan
By admin Posted in Featured News Posted on August 29, 2017
By BO Staff Writer
President Jacob Zuma’s son, Duduzane Zuma, wrote an explosive open letter to the former minister of finance, Pravin Gordhan. Read the full letter below:
Pravin Gordhan – How do you sleep at night?
Mr Gordhan, you were Finance Minister of this country for over six of the last eight years, yet take no responsibility for this country’s economic performance in that time. It is always somebody else’s fault.
While you were in charge at Treasury, starting in 2009, the South Africa economy flatlined, unemployment rose from 21% to 27% and national debt increased from 31% to a record 51%. These are the facts and history will judge you on them.
You have used various state bodies such as the FIC and the Reserve Bank to try and destroy me and my business colleagues with no proof of misconduct. Yet you accuse us of state capture.
You had no shame in wasting taxpayers’ money on your recent legal action, which everybody knew was a waste of time and taxpayers’ money – and which you lost. If you had any conscience you would pay those costs back personally, but you never will.
It has long been rumoured that you own shares in various large South African companies, especially financial services, an area where you have consistently blocked a state bank and more competition. Yet you made no public disclosure of your holdings or noted the potential for conflicts of interest with your decision-making.
All of my bank accounts have been closed by your “friends” in the banking industry. Likely with your support. Anybody can see that you are in bed with them, rather than on the side of hard-working South African citizens.
Let us deal with some key facts that the media has published but chooses largely to ignore:
The Competition Commission charges monopoly businesses regularly in this country. Nothing ever happens to them. Instead they become part of “Save SA”.
The banks are charged with currency rigging and instead get immunity if they help the investigation.
ABSA still owes billions of Rand in interest from its previous corruption
British American Tobacco is involved in a spying scandal in South Africa
African Bank was declared bankrupt, people’s money was eaten. Then shareholders with government money restart the same bank and all debts are forgiven.
Construction companies are found guilty of billions of Rand of fraud at the FIFA World Cup – their bank accounts remain open.
The Integrated Financial Management System scandal occurred on your watch
You released your Chief Procurement Officer Kenneth Brown and arranged a job for him at Standard Bank as Public Sector Head.
Why are their bank accounts still open? Why are you not calling for inquiries and prosecutions? Yet you ignore all of this and persecute me and my business partners. However:
There were no conclusive findings in the state capture report.
A Hawks investigation against me and Gupta family came up with no wrong doing
The ANC invited all whistle blowers to report against me and my business colleagues – which came up with nothing
And still you say we are corrupt – and others are clean.
You are a conspiracy theorist who failed as a Minister of this great country. You grandstand in Parliament and embarrass this country. Do you not think that the people of this country can see what you are doing?
People are innocent until proven guilty. I challenge you – take me to Court if you think you have a case.
Also, you never, ever, want to acknowledge this, but the Gupta family and I have consistently welcomed a Judicial Commission of Inquiry into all state capture.
I, and the Gupta family, pledged 15 months ago to exit our South African investments to make sure the jobs of our fellow South Africans are protected. It has taken a while, but we have done it. You criticise this sale, as you don’t care about jobs for ordinary people, and if it doesn’t fit you and your political agenda.
How do you sleep at night? Does putting over 7,500 South Africans out of work even bother you?
You even criticised the new Mining Charter, which was created for the benefit of ordinary South Africans. You will always protect your friends in big business over the ordinary man.
The youth of this country that is desperate for hope and a chance to succeed, will eventually see you exposed for what you are.
I am selling my shares to be able to focus my time on clearing my name. At this point I would advise you to refrain from further public statements which could affect the current sales and my reputation. I reserve my rights to pursue legal action for the harm you are causing.
Yours sincerely
Labels: ABSA, DUDUZANE ZUMA, JACOB ZUMA, NEW WORLD ORDER, PRAVIN GORDHAN
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SA reels from lower mine revenues
27/02/2013 00:00:00
by Reuters
SUBDUED European demand for its exports forced South Africa to cut its 2013 economic growth forecast on Wednesday, while missed revenue targets looked to be creating a wider budget deficit than first thought.
While vowing to keep a lid on overall spending, Finance Minister Pravin Gordhan committed to more social spending for South Africa's poorest, many who live in shanty townships and a are key support base for President Jacob Zuma as he gears up for general elections early next year.
"This government will not get to the point where we impose austerity on our people," Gordhan said, alluding to fiscal tightening measures that have triggered violent protests in European countries such as Greece.
In his three-year budget tabled to parliament, Gordhan said the 2013 budget deficit would be 4.6 percent of GDP, a shade wider than his last forecast in October.
However, the deficit is slightly narrower than economists' forecasts and a big decline from the 5.2 percent gap projected for 2012/13.
This year's shortfall was partly to due reduced tax and mineral rights revenue from the mining sector, hit by strikes last year that left more than 50 people dead and shaved 15 billion rand ($1.7 billion) of output from Africa's biggest economy.
[Most of which goes to Anglo-American De Beers, just like under Apartheid and colonial rule before that. - MrK]
The economy had most likely fully absorbed the impact of the mining strikes, Gordhan told Reuters after his speech.
"If there's enough of a demand pool from China and India in terms of commodities, if we can get production back to some level of normality, and therefore exports as well, all of that will contribute positively to revenue," he said.
But for now, South Africa remains the laggard among its peers in the BRICS group of leading emerging market economies, with China expecting growth of 8.2 percent this year, followed by 5.9 percent for India and 3.5 percent in Brazil.
With growth flatlining in Europe, South Africa's main export market, Gordhan was forced to cut this year's growth forecast once again to 2.7 percent - half South Africa's pre-2008 financial crisis average.
The relatively subdued longer-term outlook also means the economy has little chance of making any in-roads into the persistent 25 percent unemployment regarded as the main threat to social stability two decades after the end of apartheid.
"If growth continues along the present trajectory, substantial spending commitments would require significant adjustments in revenue and reductions in other areas of spending," Gordhan said.
Consumption
Domestic consumer demand, which accounts for about 60 percent of GDP, is likely to remain modest as households struggle to find jobs while existing debt levels remain high.
Gordhan said the government, still smarting from credit downgrades from Moody’s, Standard & Poor's and Fitch, would keep a tight grip on its purse strings, with plans to reduce spending by 10.4 billion rand ($1.2 billion).
"The deficit is there because of the revenue loss that we have experienced, not because of expenditure," Gordhan said in a news conference before his speech to parliament.
The projected deficits are unlikely to improve South Africa's credit ratings, which now stand slightly above the investment grade cut-off, analysts said.
"Under the circumstances, (the government) probably struck a reasonable balance given the fiscal constraints and difficult economic circumstances," Renaissance Capital economist Elna Moolman said.
"Today's budget was ratings negative - on its own it does not justify further downgrades, but at the same time it also will not allay the concerns of the ratings agencies sufficiently to rule out further downgrades down the line."
Gordhan said the government, which has faced a series of protests against poor basic services in the impoverished townships, would continue pouring money into infrastructure, education and the health service.
Spending on social services, which have risen by 11 percent in the last five years, were seen increasing to 120 billion rand next year, Gordhan said.
The rand weakened after the budget, and was last at 8.8850 against the dollar, from 8.835 before Gordhan began his address.
Government bonds weakened, weighed down by plans to increase issuance to 165 billion rand a year over the next three years.
The yield on the benchmark 2026 paper rose nearly 10 basis points to 7.31 percent.
The Treasury would increase bond issuance at its weekly domestic auctions to about 3 billion rand from the current 2.1 billion rand, Director-General Lungisa Fuzile told Reuters.
Labels: LUNGISA FUZILE, NEOLIBERALISM, PRAVIN GORDHAN, TAXATION
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South Africa backs Zimbabwe recovery
21/09/2012 00:00:00
by News24
SOUTH Africa will continue helping Zimbabwe in its economic recovery programmes, finance ministers of the two countries said on Friday.
"South Africa further committed itself to continue supporting Zimbabwe's efforts to normalise its relations with multilateral financial institutions," the ministers said in a joint statement.
The statement followed a meeting in Pretoria between South African Finance Minister Pravin Gordhan and his Zimbabwean counterpart Tendai Biti, aimed at deepening co-operation between the two governments.
The discussions were centred on the resolutions of the extraordinary summit of the Southern African Development Community (SADC) heads of states held in Swaziland in 2009.
The resolutions were to provide support to Zimbabwe's Short Term Economic Recovery Programme (Sterp).
At that summit, South Africa pledged to help Zimbabwe through budget support grants, a line of credit and export credit facilities.
Gordhan and Biti recognised Zimbabwe's positive recovery from a period of hyper-inflation and the successful implementation of Sterp, the statement said.
However, both ministers noted that the country continued to face significant economic constraints, including cash flow challenges arising from revenue collections that were below target, a high debt over-hang, and uncompetitive business environment.
Other challenges were infrastructural deficits and limited access to lines of credit for business.
The ministers acknowledged that Zimbabwe had been undertaking reform measures to achieve fiscal sustainability and overall economic recovery.
The measures included increase in fuel taxes coupled with the incorporation of the Zimbabwean Revenue Authority (Zimra) into the diamond value chain, as well as closing tax loopholes and slippage.
Budget processes had been strengthened to improve support for fiscal management, planning and control of spending.
Both ministers agreed that Zimbabwe would receive the facilitation of a line of credit, and further budget support which would be aligned to South Africa's 2012 budget process.
Development finance institutions would also be encouraged to participate, including the Development Bank of Southern Africa, in order to invest in infrastructure projects, particularly energy and roads.
Collaboration would be strengthened between the SA Revenue Service and Zimra, with particular focus on the harmonisation of customs systems, procedures and investment in Beitbridge border post infrastructure.
Labels: PRAVIN GORDHAN, STERP, TENDAI BITI
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Biti arrogant, confused: Mantashe
Saturday, 24 September 2011 21:42
By Busani Ncube
THE secretary-general of the African National Congress (ANC), Cde Gwede Mantashe, has described MDC-T secretary-general Mr Tendai Biti as an “arrogant and confused” minister who does not know the difference between a political party and a Government ministry.
In an interview on Thursday, the ANC supremo chastised Mr Biti for “lying” that he had met the ANC as a political party when in actual fact he “just met” South Africa’s Minister of Finance, Mr Pravin Gordhan, on “official ministerial” business only.
According to the latest batch of US embassy cables revealed by WikiLeaks, Biti has depicted himself as a politician who enjoys special insight into the workings of ANC politicians.
In one of the cables, Biti is quoted as telling US Ambassador to Harare Mr Charles Ray that former South African president Mr Thabo Mbeki’s representatives, who helped broker talks between Zanu-PF and the two MDC formations, were “conniving little idiots”.
In the same discussion with the American diplomat, Biti then speaks glowingly of President Jacob Zuma’s team of representatives, describing them as “a breath of fresh air”.
Cde Mantashe said the ANC, Africa’s oldest liberation movement, had “no business with stooges”.
“That secretary-general of Tsva-ngirai’s party (Mr Biti) is very arrogant and confused, he thinks if he has met Pravin, then he has met the ANC. Pravin is not the ANC, this is not hard to understand for a lawyer like Biti, hopefully.
“You do not meet a government minister in any country in his capacity as a minister, and not politician, then report back to your friends and wife that you have meet the said minister’s party. No.
“I have met him (Mr Biti) several times in South Africa in the streets, malls and meeting rooms, and that does not mean that his party has met the ANC. You meet the ANC not there (streets, malls and meeting rooms) but at Chief Albert Luthuli House (ANC headquarters in Johannes-burg),” said Cde Mantashe.
The tough-talking Mantashe made it clear that the ANC had “no business with stooges” of former colonial masters and would only engage genuine home-grown political opposition parties within and outside Africa.
“Why should the ANC have time to engage stooges of those that oppressed and imprisoned us before? We will, as a party, only have time to spare a thought or two for real home-grown opposition political parties whose founding purpose is anchored on the masses and not some donor funds and neo-colonial interests.
“Besides, why can’t the MDC-T just organise meetings with their fellow stooges, the DA, which they seem to understand well?” he asked.
The Democratic Alliance (DA), an opposition political party in South Africa led by Hellen Zille, who is a rabid critic of indigenisation policies that are meant to benefit the black majority in that country, has been accused by the ANC of defending white privilege.
Cde Mantashe added that his five-member delegation that was in Zimbabwe only met Zanu-PF because of the long-standing relationship that the ANC has enjoyed with liberation movements in Africa, and also because as the ANC they have “never been invited” to “anything” by the MDC-T.
Cde Mantashe, who is also the chairman of the South African Communist Party (SACP), said he last met Prime Minister Morgan Tsvangirai in June this year at the funeral of veteran anti-apartheid activist Mama Albertina Sisulu.
“I have never even met Biti’s boss — Tsvangirai — as the ANC SG or SACP chair. I just saw him at emngcwabeni kaAlbertina, singaqoqanga nokuhlangana,” he said, adding that if the MDC-T “does not repent”, they will achieve “nothing” in Africa.
When asked whether the ANC has met Biti’s MDC counterpart Mrs Priscilla Misihairabwi-Mushonga, Cde Mantashe responded:
“As the ANC, we meet those that want to meet us; we do not go around fishing out for opposition political parties to make friendships with. We are in power and have a country to run.
“Those that desire to meet us, show by inviting us for such meetings, and for as long as they fall under what we believe in, we will sit down with them,” he said.
Cde Mantashe flew into Zimbabwe on Tuesday leading a five-member delegation. He met Vice-Presidents John Landa Nkomo and Joice Mujuru, several Cabinet ministers from Zanu-PF and visited the National Heroes’ Acre where he laid flowers at the Tomb of the Unknown Soldier.
The ANC has strong ties with Zanu-PF and is one of the liberation movements in Africa that have vowed to protect the gains of the liberation struggle against marauding imperial forces that have resorted to installing puppet regimes as a stratagem for manipulating and controlling African nations.
- The Sunday Mail
Labels: ANC, GWEDE MANTASHE, MDC, NEOCOLONIALISM, PRAVIN GORDHAN, TENDAI BITI
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Govt eyes tougher controls on financial sector
CAPE TOWN, SOUTH AFRICA Oct 27 2010 14:29
Drastic exchange-control reforms, tougher controls over the financial sector, and a recovery in tax revenue are some of the highlights of Finance Minister Pravin Gordhan's Medium-Term Budget Policy Statement (MTBPS) tabled on Wednesday.
He also announced increased government spending, predicted a stable inflation outlook, raised the possibility of increased taxes, and again warned against currency devaluation and trade protectionism as a response to the strong rand.
Read Finance Minister Gordhan's medium-term budget speech
The proposed exchange-control reforms included raising the offshore investment limit for individuals and removing the exit levy on emigrants' assets.
The limit would be increased from the current lifetime limit of R4-million, to R4-million annually, subject to compliance with all tax and financial integrity legislation, a National Treasury statement accompanying the MTBPS said.
South Africans who emigrated were currently allowed to remit R8-million of capital offshore upon leaving the country, while the rest of their assets were only released if they paid a 10% exit levy.
Treasury proposed releasing emigrants' blocked assets without charging any levy, as this would assist government in curbing excessive appreciation in the rand and enable emigrants' assets to be transferred to them.
It further proposed increasing the single discretionary allowance from R750 000 to R1-million.
Tougher controls
Gordhan said consideration was also being given to tougher controls over the financial sector, including a raft of new legislation and an overarching council of financial regulators.
A discussion document would be released by Treasury in early November, putting forward a "range of proposals" to strengthen South Africa's financial regulatory system.
This followed a request from Gordhan for a review of gaps or weaknesses in the current system, and recommendations from a recent assessment conducted by the International Monetary Fund.
"Lessons from the global financial crisis were also taken into account," Treasury said.
The document would propose a "macroprudential" approach to financial-sector regulation, focusing on the risks to the entire system rather than only on the risks of individual institutions.
The South African Reserve Bank would take the lead in this area, and had already set up a committee to promote financial stability.
A key proposal in the document was the creation of a council of financial regulators, chaired jointly by the finance minister and the governor of the Reserve Bank.
The proposal was first mooted by Gordhan in the February budget.
Treasury said all regulatory agencies in the financial sector would be represented on the council, which would "promote coordination and information sharing".
This would be particularly useful in dealing with diversified financial services conglomerates.
Government spending
According to the MTBPS, total government spending is set to increase by an average 8,5% a year over the next three years.
Gordhan said the proposed budget framework anticipated narrowing the deficit to around 3% of GDP by 2013/14, and stabilising government debt at about 40% of GDP in 2015/16.
Spending would continue to grow, though moderately, and revenue was expected to recover relative to GDP.
The MTBPS document says consolidated expenditure will grow from a revised estimate of R904,1-billion for this year, to R977,2-billion in 2011/12, R1 069,1-billion in 2012/13, and R1 154,2-billion in 2013/14.
It also spells out government's priorities: education, health, infrastructure development, and job creation.
Education
Education remains the prime beneficiary, growing from a revised estimate of R173,2-billion to R215,8-billion over the medium-term period, with an average annual growth of 7,6%.
However, the housing and community amenities budget will grow faster, by about 9,5% a year, from R97,4-billion to R127,8-billion.
Next comes social protection -- an average of 9,1% a year -- from R134,2-billion to R174,2-billion.
The hard-pressed defence budget will be increased by an average of 8,9% a year, from R35,7-billion to R46,2-billion.
Public order and safety (police, justice and prisons) is projected to grow from R86,8-billion to R108,2-billion -- some 7,6% a year.
Health spending will continue to account for a large slice of the cake, growing on average by 7,6% a year, from R101,9-billion to R127,1-billion over the period.
Tax revenue
The document says tax revenue is expected to recover from 24,4% of GDP in 2009/10, to 26,4% of GDP by 2013/14.
However, over the longer term tax revenue must grow to finance spending commitments.
This will require broadening of the tax base, driven by economic growth, higher employment and improved compliance.
If the current mix of tax instruments cannot provide sufficient resources, changes to tax policy, including higher taxes, will need to be considered.
GDP growth of 3% is projected for 2010, before rising to 3,5% in 2011, and 4,4% by 2013.
Consumer price inflation has declined more than expected this year. The latest figures from Stats SA show that this has declined to 3,2%. Headline CPI is expected to remain below 6% over the next three years, supported by moderate increases in food prices and a relatively buoyant exchange rate.
This will allow real interest rates to remain low over the medium term.
Current account deficit
Strong capital inflows will ensure that the current account deficit remains adequately financed over the medium-term.
The deficit narrowed from 7,2% of GDP in 2007, to 4% in 2009, and remained relatively small at 3,6% of GDP in the first six months of 2010, due to a continued improvement in the trade balance.
The MTBPS says that as domestic and international demand have recovered, export and import volumes have risen, but they remain well below pre-crisis levels.
However, the improvement in the current account is expected to be temporary and the deficit is expected to rise from an estimated 4,2% of GDP in 2010, to 4,9% in 2011, and 5,8% in 2013, driven by rising import demand.
But net capital inflows currently exceed the country's external funding requirement. -- Sapa
Labels: ANC, MTBS, PRAVIN GORDHAN
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'Relentless' approach to implementing NHI
CAPE TOWN, SOUTH AFRICA Oct 27 2010 14:46
Government would be "relentless" in implementing National Health Insurance (NHI), but the scheme may not necessarily mean higher taxes, Finance Minister Pravin Gordhan said on Wednesday.
He was speaking to journalists ahead of the tabling of a Medium-Term Budget Policy Statement detailing how government spending on health would grow to over R127-billion by 2013. Gordhan said the government was absolutely committed to developing a health system that served all 50-million South Africans.
"Over a period of 14 years that the NHI document currently reflects there will be a relentless and systematic approach to implementing the national health insurance," he said.
"How are we going to fund it?
"One of the key issues we are working on is how do we stop this wastage in the health system and how do we stop provinces from diverting funds that are meant for health ... to other so-called needs."
He said that at present "nobody quite knows" how much NHI would cost.
"Are taxes going to increase? We are going to say no, not yet. Until we know exactly what the numbers look like, what the costs are, to see what cash flows is required per year over a five, 10, 15 year period, I think it will be unfair to say, South Africans your taxes going to increase."
It was possible that some of the commitments required for NHI could be met by a widening tax base, Gordhan said.
The policy statement that he tabled detailed an increase in the current financial year's health budget to R101,9-billion.
The medium-term spending figure set in February's Budget for 2011/12 of R109,7-billion would grow by R3,1-billion, while the 2012/13 projection of R116,6-billion was to rise by R4,7-billion.
In 2013/14, consolidated health spending would total R127,1-billion.
Falling short of ANC estimates
The figures appear to fall short of estimates released by the African National Congress at its national general council meeting last month.
The party said then that preliminary estimates by a ministerial advisory committee indicated that resources needed for NHI "increase from R128-billion in 2012, to R 267-billion in 2020, and R376-billion in 2025".
Experts have differed on the affordability of the scheme, with consultancy Econometrix warning last week that it would require that the South African economy grow by an "improbable" 7% a year.
Wednesday's budget statement said the groundwork was already being laid for the scheme.
It said changes had already been made to the equitable share formula, which governs distribution of cash to provinces.
This made provision for a "more specific and detailed health component", with subcomponents for primary health care and hospitals.
"Amendments to improve the fairness of the tax treatment of medical scheme constitutions will be introduced," it said.
Consideration was being given to ways of piloting improved family health care as part of an enhanced primary care system, including district-based contracts with general practitioners.
Options had to be explored for "aligning" medicine procurement to make the most of economies of scale from bulk purchases.
The statement said there was potential for private hospital participation in training doctors and nurses in conjunction with academic institutions, and for bringing private sector management capacity into public health delivery.
The ANC said last month that NHI would kick off in the rural areas and would be staggered over three phases, starting in 2012. - Sapa
Labels: NATIONAL HEALTH INSURANCE (SOUTH AFRICA), PRAVIN GORDHAN
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