"You don't get rich writing science fiction. If you want to get rich, you start a religion." - L. Ron Hubbard - Scientology
It is well-known that churches are among the most profitable businesses to invest in as they tend to operate tax free in most countries and they are not obliged to make their earnings public.
Below is an overview taken from a number of random articles, with links to all article headings provided at the end:
10 Richest Pastors in the world as of 2014
10) Joseph Prince – Net worth: $5 Million (Singapore)
9) Chris Okotie – Net worth: $10 Million (Nigeria)
8) Matthew Ashimolowo – Net worth: $10 Million (Nigeria)
7) T.B. Joshua – Net worth: $15 Million (Nigeria)
6) T. D. Jakes – Net worth: $18 Million (United States)
5) Billy Graham – Net worth: $25 Million (United States)
4) Creflo Dollar – Net worth: $27 Million (United States)
3) Benny Hinn – Net worth: $42 Million (United States)
2) Chris Oyakhilome – Net worth: $50 Million (Nigeria)
1) David Oyedepo – Net worth: $150 Million (Nigeria)
Why It’s Good to Run A Church Like A Business
The line between business and church is messy. It’s a line everyone must walk, and nobody’s sure how to do it well.
Is this a church or a business? Or could it be both?
Money may not be your primary responsibility as a church, but it’s certainly important.
While God does provide for our every need, he also honors those who are faithful with what they’ve been given.
Running your church like a business—thinking about opportunity cost, revenue, and growth—is one way to stay true to these fiscal responsibilities.
The better we function as a business, the more we can care for the people on our payroll, offering them benefits and a fitting salary in exchange for their love and hard work.
Sure, the business world can be heartless, but it doesn’t have to be. In fact, it can be really smart. When you make more money than you spend, understand budgets, embrace what it takes to hire a high-functioning staff, understand sustainability and maximizing resources—your church can thrive.
Treating our churches more like a business doesn’t have to be Godless endeavor. In fact, creating a healthy, sustainable, well-managed church organization might just be the best way to serve our congregation well.
The Church is a Big Fat Business
The latest revelation, two pieces in the 2013 spring issue of Adventist Today by T. Joe Willey and Jim Walters, is that those exercising the right arm of the message are making themselves millionaires under its banner.
How Rich Is the Catholic Church?
Nobody really knows, because religious groups don’t need to follow regular accounting and disclosure rules.
Pope Francis is not just the spiritual leader of one of the world’s major religions: He’s also the head of what’s probably the wealthiest institution in the entire world. The Catholic Church’s global spending matches the annual revenues of the planet’s largest firms, and its assets—huge amounts of real estate, St. Patrick's Cathedral, Vatican City, some of the world’s greatest art—surely exceed those of any corporation by an order of magnitude.
Our best window into the overall financial picture of American Catholicism comes from a 2012 investigation by the Economist, which offered a rough-and-ready estimate of $170 billion in annual spending, of which almost $150 billion is associated with church-affiliated hospitals and institutions of higher education. The operating budget for ordinary parishes, at around $11 billion a year, is a relatively small share, and Catholic Charities is a smaller share still.
Apple and General Motors, by way of comparison, each had revenue of about $150 billion worldwide in Fiscal Year 2012.
The most lucrative businesses in Nigeria
Church business, on the one hand, is the exploitation of a people’s misplaced and exaggerated spirituality, borne out of the hardships they are facing and the baseless fear of the unknown. Operators of this business have a simple task of continuously orchestrating the people’s helplessness and gullibility regarding issues such as ill health, poverty and unemployment (all outcomes of a failure of leadership in the country) to remain in business.
To ensure success in the business, you have to be a good orator, a psychologist, and a dramatist. It is important that you hold your congregation spellbound all the time. Also, you must run the business like a sole proprietorship. You alone should give the directives and no one should question your authority. Close associates who get too ambitious should be disgraced, called agents of the devil, and excommunicated.
In the meantime however, like a ‘man of God’ told me in an e-mail in response to my article ‘Nigerian Men of God as Con-Artists’, there is enough room for everyone in the business. So if you have the money, invest.
Megachurches: The hidden pillar of Nigeria's economy
Exactly how much of Nigeria's $510bn GDP megachurches make up is difficult to assess, since they are, like the oil sector, largely opaque entities.
“They don’t submit accounts to anybody,” says Bismarck Rewane, economist and CEO of Lagos consultancy Financial Derivatives. “At least six church leaders have private jets, so they have money. How much? No one really knows.”
As the churches have charity status, they have no obligation to open their books, and certainly don’t have to fill in tax returns—an exemption that is increasingly controversial in Nigeria, where poverty remains pervasive despite the oil riches.
The pastors argue their charity work should exempt them.
“We use the income of the church to build schools, we use the income of the church to serve the needs of the poor,” David Oyedepo, bishop of the popular Winners Chapel, told Reuters in an interview. “These are non-profit organisations.”
The National Bureau of Statistics (NBS) declined to comment on how churches fit into their GDP figures, but a source there said they were included as “non-profit”, which falls under “other services” in the latest figures. In 2013, the category contributed 2.5% of GDP, the same as the financial sector.
A former banker at Nigeria’s United Bank for Africa, who declined to be named, recalled being approached five years ago by a church that was bringing in $5-million a week from contributions at home or abroad.
“They wanted to make some pretty big investments: real estate, shares,” he said. “They wanted to issue a bond to borrow, and then use the weekly flows to pay the coupon.”
In the end, he said, the bank turned down the proposal on ethical grounds.
The bank was more ethical than the church
How the Mormons Make Money
Late last March the Mormon Church completed an ambitious project: a megamall. Built for roughly $2 billion, the City Creek Center stands directly across the street from the church’s iconic neo-Gothic temple in Salt Lake City. The mall includes a retractable glass roof, 5,000 underground parking spots, and nearly 100 stores and restaurants, ranging from Tiffany’s (TIF) to Forever 21. Walkways link the open-air emporium with the church’s perfectly manicured headquarters on Temple Square. Macy’s (M) is a stone’s throw from the offices of the church’s president, Thomas S. Monson, whom Mormons believe to be a living prophet.
On the morning of its grand opening, thousands of shoppers thronged downtown Salt Lake, eager to elbow their way into the stores. The national anthem played, and Henry B. Eyring, one of Monson’s top counselors, told the crowds, “Everything that we see around us is evidence of the long-standing commitment of the Church of Jesus Christ of Latter-day Saints to Salt Lake City.” When it came time to cut the mall’s flouncy pink ribbon, Monson, flanked by Utah dignitaries, cheered, “One, two, three—let’s go shopping!”
The Mormon Global Business Empire
Mormons make up only 1.4 percent of the U.S. population, but the church’s holdings are vast. First among its for-profit enterprises is DMC, which reaps estimated annual revenue of $1.2 billion from six subsidiaries, according to the business information and analysis firm Hoover’s Company Records (DNB). Those subsidiaries run a newspaper, 11 radio stations, a TV station, a publishing and distribution company, a digital media company, a hospitality business, and an insurance business with assets worth $3.3 billion. (See link for much, much more)
Inside the most powerful church in south Africa
Jacob Zuma attends. So do many of the ANC's most senior figures. But suspicion of Rhema's materialist message has left outsiders worried at its growing influence.
To its supporters, who include some of the country's most powerful people, it is a welcome coming together of two of South Africa's favourite pastimes, conspicuous consumption and Christianity. To its critics it's a prosperity cult.
Set in an estate of it own in the comfortable Johannesburg suburb of Randburg, Rhema has a vast car park that is made to resemble the forecourt of a luxury vehicle dealership every Sunday. The charismatic Christian evangelical organisation goes out of its way to make the well-heeled feel comfortable, and so the pastor, who is dressed in a shiny black shirt with contrasting white stitching, is happy to boast of Rhema's status.
"We are not an ordinary church. The president comes to us to ask for advice," he says proudly. "We are very influential and very active on social issues."
Pastor Sifiso leans back into an ample leather armchair and prepares to explode what he sees as the misconception that a rich man cannot enter heaven.
"Listen, the bible tells us that the streets of heaven are paved with gold," he says. As the young preacher speaks there's a glint of the precious metal from the jewellery under his shirt cuffs.
"Where there is Jesus, there is gold everywhere," he insists.
South African Pastor Calls Prosperity Gospel Damaging, Asks 'Where Are We Heading To?'
Thuso Kewana, an ordained pastor and ministry leader living in impoverished South Africa, says he can be silent no longer about the damaging effects of the prosperity gospel, an American export he believes is unbiblical and used by wolves in sheep's clothing to prey on mostly charismatic and Pentecostal Christians not only in his country, but around the world.
Kewana, speaking recently via phone from his home in Polokwane in the Limpopo province, bordered by Botswana, Zimbabwe and Mozambique, told The Christian Post he has witnessed how the prosperity gospel can warp people's understanding of God — leaving the impression that He requires worshippers to give money, to ministers, churches or their favorite television network, before they can be blessed with financial, physical and spiritual well-being.
Best-selling Christian author and writer and preacher at Oak Hills Church, Max Lucado
Max Lucado is a preacher with a storyteller’s gift—a pastor’s heart and a poet’s pen. Max’s sermons begin at home with the congregation at Oak Hills Church, which he has led for more than 25 years. It is in this setting that his stories are first told, from a pastor’s heart. Eventually some of these sermons and stories are refined and fashioned into books that are shared far beyond the walls of Oak Hills and the city limits of San Antonio, Texas. Max’s words have traveled around the world in more than 54 languages via more than 120 million individual products. Most of these products are books (92 million), which have now occupied spots on every major national bestseller list. Over the years Max Lucado has been featured in countless national media outlets, dubbed “America’s Pastor” by Reader’s Digest, and even named one of the most influential leaders in social media by The New York Times.
The Zion Christian Church (ZCC)
Lekganyane is synonymous with South Africa’s biggest Christian denomination, the Zion Christian Church (ZCC). It is one of the largest African initiated churches in southern Africa. The ZCC is estimated to number between 2 million and 6 million followers in more than 4000 parishes.
The ZCC is different from the “church businesses” and “prosperity churches”, which are popular among both rich and poor.
Nevertheless, many of its members are small business owners who ask for blessings over their efforts. They thank the church traditionally with a gift of their own choosing.
At the end of the 2013 Easter long weekend: “They say there were 9.4 million of us here today!” That is more than 100 soccer stadiums full of worshippers.
No one has been able to estimate the wealth of the ZCC
The Dutch Reformed Church (DRC)
It consists of three sister churches.
Total membership is 1,074,765 and there are 1,626 ordained ministers in 1,162 congregations.
One of the richer congregations, the Moreleta Park Dutch Reformed Church, built an auditorium seating approximately 7,100 people, completed in 2006 for R95-Million, with administrative facilities worth R62-million completed in 2009 with a third phase in it's planning stages.
Total financial worth of the DRC is unknown.
Angus Buchan, a Zambian farmer of Scottish heritage
He first came to prominence after the release of his book, followed by a movie, entitled Faith Like Potatoes.
By 2010, The Mighty Men Conference, organised by Shalom Trust, seated more than 400,000 people and it is estimated that 80% were Afrikaans men.
He has published a string of books and two films, Faith Like Potatoes (2006) and Angus Buchan's Ordinary People (2012).
"Buchan is an economic change agent, and his story shows how building dreams around God can result in grand results like no other."
A former friend of Mr Buchan's, Shaun Willock said, "But then our paths diverged. It was inevitable, for as he embraced the Charismatic movement and became increasingly involved in it, the Lord was opening my eyes to the unbiblical errors of Pentecostalism/Charismatism, culminating ultimately in my departure from it and utter repudiation of it. And in this can be seen the discriminating grace of God. Separation from all that the Pentecostal/Charismatic movement stood for was what I desired, whereas Angus wanted more of it."
NOTE:
So why is Angus Buchan mentioned here? Well he says he does not make any money from using the Bible. Angus Buchan the money maker? Nah, he is the only man on earth who does not make any money from his films, books, road shows, conferences in SA, USA and across the world, he does it for free remember. According to his entranced followers, most of whom obviously never had maths at school, he does not make even a single cent for himself.
He does not even feature among...
The "Top 10 richest pastors in the world".
1. Bishop T D Jakes: Bishop Jakes lives in a $1,7 million mansion, he has been called America’s best preacher and has been featured on the cover of TIME Magazine. He is a writer, preacher and movie producer.
Thomas Dexter “T. D.” Jakes, Sr: Is the bishop/chief pastor of The Potter’s House, a non-denominational American mega church, with 30 000 members, located in Dallas, Texas. TD Jakes wears custom made suits and sports a diamond ring the size of a coin. This man of God has been endowed with a $150 million net worth.
2. Bishop David Oyedepo: Bishop David Oyedepo is a Nigerian preacher, Christian author, founder and presiding Bishop of Winners Chapel known as Living Faith Church World Wide. Has been hailed as the wealthiest preacher in Nigeria with a total net worth of $150 million and properties like four private jets and homes in the United States and England.
After the foundation of the Living Faith Outreach Ministry in 1981, it has evolved to be one of the largest congregations in Africa and has a flourishing mission in Nairobi.
3. Enoch Adeboye: This messenger of God was listed in an African magazine, NEWSWEEK, as the most powerful man in Africa and one of the top 50 global power elites in 2008/ 2009, among others such as President Barack Obama and Nicolas Sarkozy. Pastor Adeboye heads the Redeemed Christian Church of God, something he has done for the last 28 years.
Among his possessions are private jets. Earlier this year, Bishop Oyedepo was barred from entering the United Kingdom after his church was accused of “cynically exploiting supporters”.
4. Benny Hinn: Israeli televangelist,Toufik Benedictus “Benny” Hinn has an estimated net worth of $42 million. He is best known for his regular “Miracle Crusades” — revival meeting/faith healing summits that are usually held in large stadiums in major cities, which are later broadcast worldwide on his television programme, “This Is Your Day”. Hinn was born on December 3, 1952.
5. Chris Oyakhilome: This is the man behind Believers’ Loveworld Ministries, aka Christ Embassy. His church has an estimated net worth of $50 million.
The charismatic preacher was recently at the centre of a $35 million money laundering case in which he was accused but eventually cleared of siphoning funds from his church to foreign banks.
Christ Embassy, boasts more than 40 000 members, several of whom are successful business executives and politicians. Oyakhilome’s diversified interests include newspapers, magazines, a local television station, a record label, satellite TV, hotels and extensive real estate.
His Loveworld TV Network is the first Christian network to broadcast from Africa to the rest of the world on a 24 hour basis.
6. Creflo Dollar: American Bible teacher, pastor, and the founder of World Changers Church International located in Fulton, Georgia.
Creflo Dollar is estimated to have a net worth of $27 million, most of which came from his ministerial establishments around the United States. Creflo Dollar International covenant association, Arrow records, and the Creflo Dollar ministries are jointly overseen by the popular TV evangelist and his wife.
In 2006, the overall cash revenue received in his church was about $69 million.
His church auditorium named the World Dome was built with $18 million without any bank loans. He is the publisher of Change Magazine with over 100 000 readers around the US.
7. Kenneth Copeland: He runs Kenneth Copeland Ministries and was one of several televangelists whose finances were investigated from 2007 to 2011 by Republican Senato Charles Grassley of Iowa.
According to an article by the Associated Press that ran in 2008, “His ministry’s 1 500-acre campus, behind an iron gate a half-hour drive from Fort Worth includes a church, a private airstrip, a hangar for the ministry’s $17,5 million jet and other aircraft, and a $6 million church owned lake-front mansion.
The article later added that while Copeland has not released up-to-date salary statements, “the church disclosed in a property-tax exemption application that his wages were $364 577 in 1995; Copeland’s wife, Gloria, earned $292 593.
It’s not clear whether those figures include other earnings, such as special offerings for guest preaching or book royalties.”
8. Billy Graham: American evangelical Christian evangelist, William Franklin “Billy” Graham, Jr., has a net worth of $25 million.
The Southern Baptist evangelist rose to celebrity status as his sermons started getting broadcast on radio and television. Graham was born on a dairy farm near Charlotte, North Carolina in 1918, he has conducted many evangelistic crusades since 1948.
He is now a world renowned televangelist raking in millions of dollars.
9. Matthew Ashimolowo: Ashimolowo, the owner of Kingsway International Christian Centre (KICC) gets an annual income of $200 000.
Today, his KICC is reportedly the largest Pentecostal church in the whole of the United Kingdom.
His net worth has been put at $6 million and the source of his wealth comes from varied business interests including his media company, Matthew Ashimolowo media, which churns out Christian literature and documentaries.
In 2009, Kingsway International Christian Centre posted profits of close to $10 million and assets worth $40 million.
10. TB Joshua: Nigeria’s most controversial clergyman is also one of its richest and most philanthropic. T.B Joshua heads the Synagogue Church of all Nations (SCOAN), a congregation he founded in 1987, which accommodates over 15 000 worshippers on Sundays.
He has an estimated net worth of $15 million.
References and further reading
http://brentlindeque.wordpress.com/2014/10/22/10-richest-pastors-in-the-world-as-of-2014/
http://justinlathrop.com/good-run-church-like-business/
http://spectrummagazine.org/article/column/2013/05/16/church-big-fat-business
http://www.slate.com/articles/business/moneybox/2013/03/catholic_church_and_pope_francis_religious_institutions_are_exempted_from.html
http://www.dailytimes.com.ng/opinion/most-lucrative-businesses-nigeria
http://mg.co.za/article/2014-10-12-megachurches-the-hidden-pillar-of-nigerias-economy?ars=true
http://www.businessweek.com/articles/2012-07-10/how-the-mormons-make-money
http://images.businessweek.com/slideshows/2012-07-11/the-mormon-global-business-empire
http://www.independent.co.uk/news/world/africa/inside-the-most-powerful-church-in-south-africa-2006129.html
http://www.christianpost.com/news/south-african-pastor-calls-prosperity-gospel-damaging-asks-where-are-we-heading-to-99712/
http://wochurch.org/events/index.htm
http://prominentpeople.co.za/lekganyane.aspx
http://www.citypress.co.za/features/your-money-is-dirty-we-dont-want-it-20120421/
http://www.moreleta.org/
http://ngkerk.org.za/wp/index.php/english/
http://en.wikipedia.org/wiki/Dutch_Reformed_Church_in_South_Africa
http://www.pentadqs.co.za/?page_id=13
http://www.proarnan.co.za/home/community/ngdeltaml.html
http://tauriqmoosa.wordpress.com/2009/02/21/potato-preacher-a-sceptics-guide-to-angus-buchan/
http://en.wikipedia.org/wiki/Angus_Buchan
Angus Buchan Documentary - YouTube video https://www.youtube.com/watch?v=GH8SoFpD_Yo
https://4loveofthetruth.files.wordpress.com/2012/06/open-letter-to-angus-alan-lester.pdf
http://blogs.24.com/chelski/2009/04/28/angus-buchan-the-money-maker/
http://nehandaradio.com/2014/08/16/top-10-richest-pastors-in-the-world/
Monday, 13 October 2014
Thursday, 2 October 2014
Faced with a huge energy crisis, SA's total government debt increased from 27% of GDP in 2009 to 63% in 2014
South Africa's total government debt has increased from 27% of GDP in 2009 to an unsustainable level of about 63% of GDP - over R2 trillion.
Municipal debt. South Africa’s local government owes Eskom just under R3 billion in unpaid electricity with just under R2 billion unpaid for over 90 days. The biggest delinquent municipalities are from the Free State (over R1 billion owed), Mpumalanga (over R800 million) and the North West (just under R400 million). Matjhabeng (Welkom) and Emalahleni (Witbank – where Eskom generates much of its electricity) owe so much, it is hard to imagine there debts to Eskom ever being repaid.
What is clear is that we are in for a hard time in the next five years or so. Load shedding will become part of our lives and we will need to get used to it. Eskom’s much-needed change of maintenance philosophy will reduce its generating availability for 2015 by 7,400 MW, 5,900MW in 2016, 4,200MW in 2017, 2,200MW in 2018 and by 1,100MW in 2019. Clearly all such ability to meet such timelines is dependent upon Eskom’s funding and engineering capabilities. Both of these are in short supply.
Eskom may take years to start all six units at its Medupi power plant, according to a National Planning Commission member.
The utility expects to connect the first of six units at its coal-fired 4 764-megawatt Medupi facility by the end of this year.
“According to senior Eskom sources, the second unit is scheduled to come online two-and-a-half years after the first and then the subsequent units at six-month intervals,” Anton Eberhard, a planning commission member and professor at the University of Cape Town’s Graduate School of Business, said today.
“Due to political pressure to show progress, they diverted resources away from the remaining units to focus on getting the first commissioned.”
Labour strikes and contractor errors pushed Medupi’s plans back and Eskom last month said the plant was 73% done. The first unit was supposed to be commissioned in 2012, Eskom said on its website.
This is not all – we can expect electricity price increases significantly above inflation. Our 30-year investment holiday where we enjoyed cheap and abundant electricity is now well and truly over.
Links to the full articles:
Ticking down: SA's (energy) clockwork orange
http://www.dailymaverick.co.za/article/2014-10-02-ticking-down-sas-energy-clockwork-orange/#.VC1fz9-jn8u
Few years before all Eskom’s Medupi units come online
http://www.citypress.co.za/business/years-eskoms-medupi-units-come-online/
Related ToxiNews Articles
Collapsing SA Rand suffers longest losses on record, SA trade deficit almost doubled, SA's ailing economy growing at only 1.7 percent
http://toxinews.blogspot.com/2014/10/collapsing-sa-rand-suffers-longest.html
55% of South Africans earn less than R10,000 (US$891) a month -$1,922 less than in 1994
http://toxinews.blogspot.com/2014/09/55-of-south-africans-earn-less-than.html
SA's total Q2 2014 industry turnover was R1.86-trillion, less than in 2013
http://toxinews.blogspot.com/2014/09/sas-total-q2-2014-industry-turnover-was.html
Municipal debt. South Africa’s local government owes Eskom just under R3 billion in unpaid electricity with just under R2 billion unpaid for over 90 days. The biggest delinquent municipalities are from the Free State (over R1 billion owed), Mpumalanga (over R800 million) and the North West (just under R400 million). Matjhabeng (Welkom) and Emalahleni (Witbank – where Eskom generates much of its electricity) owe so much, it is hard to imagine there debts to Eskom ever being repaid.
What is clear is that we are in for a hard time in the next five years or so. Load shedding will become part of our lives and we will need to get used to it. Eskom’s much-needed change of maintenance philosophy will reduce its generating availability for 2015 by 7,400 MW, 5,900MW in 2016, 4,200MW in 2017, 2,200MW in 2018 and by 1,100MW in 2019. Clearly all such ability to meet such timelines is dependent upon Eskom’s funding and engineering capabilities. Both of these are in short supply.
Eskom may take years to start all six units at its Medupi power plant, according to a National Planning Commission member.
The utility expects to connect the first of six units at its coal-fired 4 764-megawatt Medupi facility by the end of this year.
“According to senior Eskom sources, the second unit is scheduled to come online two-and-a-half years after the first and then the subsequent units at six-month intervals,” Anton Eberhard, a planning commission member and professor at the University of Cape Town’s Graduate School of Business, said today.
“Due to political pressure to show progress, they diverted resources away from the remaining units to focus on getting the first commissioned.”
Labour strikes and contractor errors pushed Medupi’s plans back and Eskom last month said the plant was 73% done. The first unit was supposed to be commissioned in 2012, Eskom said on its website.
This is not all – we can expect electricity price increases significantly above inflation. Our 30-year investment holiday where we enjoyed cheap and abundant electricity is now well and truly over.
Links to the full articles:
Ticking down: SA's (energy) clockwork orange
http://www.dailymaverick.co.za/article/2014-10-02-ticking-down-sas-energy-clockwork-orange/#.VC1fz9-jn8u
Few years before all Eskom’s Medupi units come online
http://www.citypress.co.za/business/years-eskoms-medupi-units-come-online/
Related ToxiNews Articles
Collapsing SA Rand suffers longest losses on record, SA trade deficit almost doubled, SA's ailing economy growing at only 1.7 percent
http://toxinews.blogspot.com/2014/10/collapsing-sa-rand-suffers-longest.html
55% of South Africans earn less than R10,000 (US$891) a month -$1,922 less than in 1994
http://toxinews.blogspot.com/2014/09/55-of-south-africans-earn-less-than.html
SA's total Q2 2014 industry turnover was R1.86-trillion, less than in 2013
http://toxinews.blogspot.com/2014/09/sas-total-q2-2014-industry-turnover-was.html
ANC Regime refuses Dalai Lama a Visa to SA - 6 brave women cause the World Summit of Nobel Peace Laureates to be cancelled
ANC Regime refuses Dalai Lama a Visa to SA - 6 brave women boycott and cause the World Summit of Nobel Peace Laureates to be cancelled.
While the summit was backed by foundations representing four South African peace laureates:
At least six women had the guts to stand up, while the hypocrites chose to remain silent.
We thank the six women who had confirmed their boycott:
Pre-1994, the world was coerced into boycotting South Africa. Now the world is boycotting SA spontaneously, which is a 1000 times worse!
The world is turning its back on the liberals and their beloved ANC and, while we all shall pay the price for it, it is much needed.
Let us now see if China will fill the gaps being created by the ANC.
410,804 people murdered in SA since 1994. At least 46,000 people officially reported as having been raped each year. The ANC Regime bans the Dalai Lama from entering South Africa to attend the World Summit of Nobel Peace Laureates, forcing it to be cancelled. NOW IS THE TIME TO KEEPING PUSHING MUCH HARDER!
"If you sit by the river long enough you will see the bodies of your enemies float by." - Ironically, this is a very old Chinese proverb.
Further reading
Peace Laureate summit cancelled
http://www.iol.co.za/dailynews/news/peace-laureate-summit-cancelled-1.1758451#.VCx8Kd-jn8v
BREAKING: World Summit of Nobel Peace Laureates canceled after the Dalai Lama’s visa refusal
http://www.patheos.com/blogs/americanbuddhist/2014/10/breaking-world-summit-of-nobel-peace-laureates-canceled-after-the-dalai-lamas-visa-refusal.html
Nobel Summit Cancelled After South Africa Denies Visa to Dalai Lama
http://www.ndtv.com/article/world/nobel-summit-cancelled-after-south-africa-denies-visa-to-dalai-lama-600798
Nobel laureate summit cancelled over Dalai Lama visa refusal
http://mg.co.za/article/2014-10-01-nobel-laureate-summit-cancelled-over-dalai-lama-visa/
SA Nobel Peace summit cancelled - reports
http://www.news24.com/SouthAfrica/News/SA-Nobel-Peace-summit-cancelled-reports-20141001
While the summit was backed by foundations representing four South African peace laureates:
- Archbishop Desmond Tutu;
- Nelson Mandela;
- FW De Klerk; and
- Albert Luthuliremain
At least six women had the guts to stand up, while the hypocrites chose to remain silent.
We thank the six women who had confirmed their boycott:
- American activist Jody Williams;
- Iranian lawyer Shirin Ebadi;
- Liberian activist Leymah Gbowee;
- Yemeni journalist Tawakkol Karman;
- Northern Irish activist Mairead Maguire; and
- A representative of the International Campaign to Ban Landmines.
Pre-1994, the world was coerced into boycotting South Africa. Now the world is boycotting SA spontaneously, which is a 1000 times worse!
The world is turning its back on the liberals and their beloved ANC and, while we all shall pay the price for it, it is much needed.
Let us now see if China will fill the gaps being created by the ANC.
410,804 people murdered in SA since 1994. At least 46,000 people officially reported as having been raped each year. The ANC Regime bans the Dalai Lama from entering South Africa to attend the World Summit of Nobel Peace Laureates, forcing it to be cancelled. NOW IS THE TIME TO KEEPING PUSHING MUCH HARDER!
"If you sit by the river long enough you will see the bodies of your enemies float by." - Ironically, this is a very old Chinese proverb.
Further reading
Peace Laureate summit cancelled
http://www.iol.co.za/dailynews/news/peace-laureate-summit-cancelled-1.1758451#.VCx8Kd-jn8v
BREAKING: World Summit of Nobel Peace Laureates canceled after the Dalai Lama’s visa refusal
http://www.patheos.com/blogs/americanbuddhist/2014/10/breaking-world-summit-of-nobel-peace-laureates-canceled-after-the-dalai-lamas-visa-refusal.html
Nobel Summit Cancelled After South Africa Denies Visa to Dalai Lama
http://www.ndtv.com/article/world/nobel-summit-cancelled-after-south-africa-denies-visa-to-dalai-lama-600798
Nobel laureate summit cancelled over Dalai Lama visa refusal
http://mg.co.za/article/2014-10-01-nobel-laureate-summit-cancelled-over-dalai-lama-visa/
SA Nobel Peace summit cancelled - reports
http://www.news24.com/SouthAfrica/News/SA-Nobel-Peace-summit-cancelled-reports-20141001
Wednesday, 1 October 2014
2014 Global AgeWatch Index ranks South Africa 80th out of 96 countries
The 2014 Global AgeWatch Index ranks 96 nations on the basis of the quality of life and social and economic status of older people, aged 60 and over.
From this index, governments can use it to identify policies to improve the lives of older people.
Out of the 96 countries, South Africa ranks a disgustingly low 80th place overall, but is the second-highest in its region, sub-Saharan Africa, which is one of the most pathetic and poorest areas on planet earth.
The index studies four areas, in particular:
By October 2013, 93% of older South Africans received a pension of which 63% (more than 2.9 million) received a tax-payer-funded Old-Age-Pension (OAG) of approximately R1,260 (117 US$) per month the communist ANC Regime with the rest receiving contributory pensions.
South Africa has the highest rate of educational attainment among older people in its region (43.8%), slightly above the overall Index average (43%) - Obviously these people were educated in pre-1994 South Africa, when we enjoyed among the highest educational standards in the world.
References
Commentary on South Africa’s domain ranks in the 2014 Global AgeWatch Index
By Necodimus Chipfupa, Regional Director, HelpAge Southern Africa
Download this document in pdf format at:
http://www.helpage.org/download/54242dc0633fc/
Compare South Africa to other countries:
What's it like to grow old in YOUR country? Global index ranks the world based on quality of life for the over-60s
http://www.dailymail.co.uk/sciencetech/article-2776444/What-s-like-grow-old-YOUR-country-Global-index-ranks-world-based-quality-life-60s.html?ito=social-twitter_mailonline
Global rankings map
The map shows how countries are ranked in the Global AgeWatch Index. Countries are ranked from 1 to 96, with 1 being the highest rank. The higher the rank, the better the quality of life for older people. Colours on a spectrum from dark green to dark red represent the ranking from 1 to 96. Grey is used for countries where there is not enough data to include them in the Index
http://www.helpage.org/global-agewatch/population-ageing-data/global-rankings-map/
From this index, governments can use it to identify policies to improve the lives of older people.
Out of the 96 countries, South Africa ranks a disgustingly low 80th place overall, but is the second-highest in its region, sub-Saharan Africa, which is one of the most pathetic and poorest areas on planet earth.
The index studies four areas, in particular:
- Income Security covers the state of pensions, relative welfare of older people, GDP in each country, and poverty rate in old age.
By October 2013, 93% of older South Africans received a pension of which 63% (more than 2.9 million) received a tax-payer-funded Old-Age-Pension (OAG) of approximately R1,260 (117 US$) per month the communist ANC Regime with the rest receiving contributory pensions.
- Health status includes life expectancy at 60 and psychological status.
- ‘Enabling environment’ includes physical safety, social connections and access to public transport.
- Capability covers the employment level and educational status of older people:
South Africa has the highest rate of educational attainment among older people in its region (43.8%), slightly above the overall Index average (43%) - Obviously these people were educated in pre-1994 South Africa, when we enjoyed among the highest educational standards in the world.
References
Commentary on South Africa’s domain ranks in the 2014 Global AgeWatch Index
By Necodimus Chipfupa, Regional Director, HelpAge Southern Africa
Download this document in pdf format at:
http://www.helpage.org/download/54242dc0633fc/
Compare South Africa to other countries:
What's it like to grow old in YOUR country? Global index ranks the world based on quality of life for the over-60s
http://www.dailymail.co.uk/sciencetech/article-2776444/What-s-like-grow-old-YOUR-country-Global-index-ranks-world-based-quality-life-60s.html?ito=social-twitter_mailonline
Global rankings map
The map shows how countries are ranked in the Global AgeWatch Index. Countries are ranked from 1 to 96, with 1 being the highest rank. The higher the rank, the better the quality of life for older people. Colours on a spectrum from dark green to dark red represent the ranking from 1 to 96. Grey is used for countries where there is not enough data to include them in the Index
http://www.helpage.org/global-agewatch/population-ageing-data/global-rankings-map/
Collapsing SA Rand suffers longest losses on record, SA trade deficit almost doubled, SA's ailing economy growing at only 1.7 percent
The collapsing SA Rand suffers its longest run of quarterly losses on record and it may continue into year-end, while South Africa’s trade deficit almost doubled, from R6.8-billion to R16.3-billion. Meanwhile, the National Treasury is predicting South Africa's ailing economy to grow at only 1.7 percent this year.
The currency posted its 10th straight quarterly drop against the dollar in the three months through September, the longest stretch since at least 1971, when Bloomberg began compiling the data.
“Our economic fundamentals are not a good story and I can’t see the commodity cycle turning. We’re probably going to see more rand weakness.”
The currency retreated to its weakest level since January, closing in on the lowest since October 2008, after South Africa’s trade deficit widened more than economists’ estimates in August. The shortfall climbed to 16.3 billion rand ($1.4 billion) from 6.8 billion rand and more than the 8.7 billion- rand median estimate of 14 economists in a Bloomberg survey.
Take note: South Africa’s trade deficit almost doubled, from R6.8-billion to R16.3-billion
Raw materials accounted for 60 percent of exports in 2013, with South Africa's new colonisers, China, being the biggest buyer of coal, iron ore and other mining commodities. In the meantime, China's economy will be growing at its slowest pace in more than two decades.
“Should China experience further slowdown, the rand will likely weaken as commodity prices ease once again,” Annabel Bishop, the Johannesburg-based chief economist at Investec, said.
Investec revised its year-end forecast for the rand to 10.92 per dollar, compared with a previous forecast of 10, and said there is a 45 percent probability of a “down-case scenario” that could see the currency depreciate to 11.70 this year and 12.70 by the end of 2015.
The National Treasury is predicting South Africa's ailing economy to grow at only 1.7 percent this year.
“Even with an end to the worst of the industrial unrest, South Africa’s problems are not over,” Razia Khan, a London- based Africa economist at Standard Chartered Plc, said in an e- mail yesterday. “There is no evidence of a hoped-for automatic correction in external metrics. The rand may have to adjust further.”
A friend added the following:
"I did a quick calculation yesterday (which I posted on my wall) taking the run rate of the Rand over the last few months (source Oanda.com) and it is my prediction the Rand will be somewhere between R11.70 and R12,70 by year end. The Rand is losing 6% of its value month on month for the last three months. The slide started to happen on the 27th July 2014 and the stats after that don't lie. Most importers of electronic goods - myself included - are already costing at R11.55 / USD with many of my compatriots stating that they are moving to costing at R11.70/USD and we are nowhere near year end yet."
Source:
Rand endures record 10th quarterly decline
http://www.moneyweb.co.za/moneyweb-markets/rand-falls-to-fresh-8month-low-after-poor-trade-da?utm_content=bufferb60e1&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer
The currency posted its 10th straight quarterly drop against the dollar in the three months through September, the longest stretch since at least 1971, when Bloomberg began compiling the data.
“Our economic fundamentals are not a good story and I can’t see the commodity cycle turning. We’re probably going to see more rand weakness.”
The currency retreated to its weakest level since January, closing in on the lowest since October 2008, after South Africa’s trade deficit widened more than economists’ estimates in August. The shortfall climbed to 16.3 billion rand ($1.4 billion) from 6.8 billion rand and more than the 8.7 billion- rand median estimate of 14 economists in a Bloomberg survey.
Take note: South Africa’s trade deficit almost doubled, from R6.8-billion to R16.3-billion
Raw materials accounted for 60 percent of exports in 2013, with South Africa's new colonisers, China, being the biggest buyer of coal, iron ore and other mining commodities. In the meantime, China's economy will be growing at its slowest pace in more than two decades.
“Should China experience further slowdown, the rand will likely weaken as commodity prices ease once again,” Annabel Bishop, the Johannesburg-based chief economist at Investec, said.
Investec revised its year-end forecast for the rand to 10.92 per dollar, compared with a previous forecast of 10, and said there is a 45 percent probability of a “down-case scenario” that could see the currency depreciate to 11.70 this year and 12.70 by the end of 2015.
The National Treasury is predicting South Africa's ailing economy to grow at only 1.7 percent this year.
“Even with an end to the worst of the industrial unrest, South Africa’s problems are not over,” Razia Khan, a London- based Africa economist at Standard Chartered Plc, said in an e- mail yesterday. “There is no evidence of a hoped-for automatic correction in external metrics. The rand may have to adjust further.”
A friend added the following:
"I did a quick calculation yesterday (which I posted on my wall) taking the run rate of the Rand over the last few months (source Oanda.com) and it is my prediction the Rand will be somewhere between R11.70 and R12,70 by year end. The Rand is losing 6% of its value month on month for the last three months. The slide started to happen on the 27th July 2014 and the stats after that don't lie. Most importers of electronic goods - myself included - are already costing at R11.55 / USD with many of my compatriots stating that they are moving to costing at R11.70/USD and we are nowhere near year end yet."
Source:
Rand endures record 10th quarterly decline
http://www.moneyweb.co.za/moneyweb-markets/rand-falls-to-fresh-8month-low-after-poor-trade-da?utm_content=bufferb60e1&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer
Monday, 29 September 2014
Big-Business loves corrupt politicians - Just look at the ANC and its business partners
Big-Business loves corrupt politicians, which is why they pushed so hard to get the ANC to power in South Africa.
Big business could not openly support terrorists, so they called them "freedom fighters". In so doing, they could legally finance them, train them, market them as heroes of "the struggle", because what they were seeking, was an open door to South Africa's minerals and wealth.
The fight against the South Africa under the National Party never was about racism or racial discrimination, it was all about money. The National Party blocked access to plundering big business and big business had to remove that obstacle.
The National Party's Separate Development policy, aimed at splitting South Africa into smaller independent countries, known as the TBVC states, was not good for business and had to be stopped.
Big business wanted only one government, preferably a very corrupt government, to negotiate with, not numerous smaller independent states.
One of the first things Nelson Mandela's ANC Regime did, when they came to power in 1994, was to abolish the TBVC states, reincorporate them back into South Africa, and remove all mineral rights held by private property owners. They nationalised mineral rights to pave the way for plundering big business.
It is a fact that more racism and racial discrimination existed in ANC supporting overseas countries than had ever existed in South Africa, but the word "Apartheid" was a powerful weapon in the hands of plundering big business.
Every country that ever supported the ANC, disguised as "freedom Fighters", is today a partner in South Africa's ANC Regime.
A close friend added:
"Don't forget that "Big Business" consists not only of "The Board" who are the decision makers, but also of the "shareholders" who are nothing other than loan-sharks who want - or rather DEMAND - a return on the loans the made in the form of "purchasing" shares.
They - the shareholders - couldn't care one hoot about the morality of "The Board's decisions", and usually they will claim ignorance of both the decisions and the consequences.
When the AA, and later BEE, and BBBEE legislation was promulgated, the Corporates could have stood up en masse and stated clear that interference in business will not be tolerated, but although they had the power to do so, they did not - they had debts and favours to call in and by staying in the good books of Pretoria, would ensure that they will be rewarded for their immoral support through the years. And the citizens be damned. They found it handy to oppose so-called "inhumane laws" when they were still currying favour with the terrorists, but when their prodigies promulgated laws which were beyond any previously "inhumane" laws, they showed their moral impotence.
There is not one single director of a company who will lose one second of sleep about the lives destroyed by their immorality - and neither is there one single loan-shark "shareholder" who would.
What they forget is that the term "shareholder" defines their position in the misery and death caused by these immoral corporates - they share in the blame, and they will have to have to carry that responsibility when the time comes."
More of them have now been exposed...
EXPOSED: How French arms giant, Thales, bankrolled SA ('President') Jacob Zuma and the ANC
President Jacob Zuma and the ANC were deep in the pockets of French arms giant Thales. This is according to explosive documents obtained exclusively by the Sunday Times that reveal how Thales fixer Ajay Sooklal allegedly arranged flights, fancy clothes, legal fees and lavish hotel stays in Europe for Zuma when he faced corruption charges linked to the arms deal.
Thales's South African subsidiary Thint won a R2.6-billion contract in 1997 to fit four new navy frigates with combat suites.
The documents are transcripts of testimony given under oath before retired Judge Phillip Levinsohn at confidential arbitration hearings held earlier this year in a fee dispute between Sooklal and Thales.
The transcripts, totalling 1358 pages, provide a detailed account of Sooklal's work as a lawyer and secret fixer for Thales for six years.
Sooklal claims he is owed R70-million in outstanding fees. Thales has offered him R42-million.
Zuma declined to respond to detailed questions e-mailed to his spokesman Mac Maharaj this week.
"Anyone with information relating to the arms deal should bring it to the attention of the Seriti commission," Maharaj said. "The commission has been established specifically to deal with such allegations and rumours."
The commission resumes on October 6 with testimony from arms deal activist Terry Crawford-Browne.
The transcripts expose for the first time that:
Zuma used the code words "Eiffel Tower" to accept a R500000-a-year bribe from Thales in return for political protection in the arms deal probe and to secure future business;
- Thales gave former ANC treasurer Mendi Msimang a cheque for €1-million (about R14-million at today's rates) in April 2006 to be paid from a secret Dubai account into an "ANC-aligned trust" shortly before the company was due to stand trial for corruption with Zuma;
- Thales was asked to bankroll the ANC conference at Polokwane in 2007, where Zuma was elected party president, but did not do so;
- Thales furiously lobbied ANC officials including former president Thabo Mbeki, former justice minister Penuell Maduna, former secretary-general Kgalema Motlanthe and Msimang to be let off the hook, even enlisting the help of French president Jacques Chirac; and
- Thales bankrolled Zuma and Sooklal to fly around the world and meet witnesses who could help the ANC president in his forthcoming corruption trial, even when they were unrelated to Thales.
- As deputy president and head of government business at the time, Zuma was also expected to promote the French arms and electronic company's future business ventures in South Africa in return for his alleged bribe.
The arms company has since clinched several lucrative state contracts.
These include a R1.87-billion rail signalling contract in the Western Cape in 2013, a R100-million electronic ticketing system for the Gautrain in 2007 and a R95-million air traffic control maintenance contract in 2009 that did not go out to tender.
Despite a decade of court proceedings, Sooklal's is the first sworn testimony that Zuma personally signalled his acceptance of the bribe that led to Shaik's conviction. The code words used, "Eiffel Tower", has also never been revealed before.
The documents show Shaik proposed the bribe and code words to Alain Thetard, who headed Thint at the time. On March 11 2000 Shaik brought Thetard to see Zuma at King's House, his official residence in Durban, where he allegedly said: "I see the Eiffel Tower lights are shining today."
This was taken to mean Zuma had accepted the bribe offer. At the meeting Thetard jotted down the terms of the bribe agreement on a piece of paper he later gave to his personal assistant, who typed it up and sent it via encrypted fax to Thales's Paris and Mauritius offices. The fax became a crucial item of evidence and helped convict Shaik on corruption charges.
Two courts found that the King's House meeting in 2000 led to the first R250000 tranche of bribe money being released to Shaik.
The transcripts reveal the extent to which Thales had Zuma and the ANC in their pocket.
Sooklal, a politically connected former government official, was hired in 2003 to "make representations to the highest authorities in the land" to get corruption charges against Thales withdrawn and arrest warrants for its top executives uplifted soon after then-prosecutions boss Bulelani Ngcuka announced he would charge Shaik - and said there was a "prima facie" case of corruption against Zuma.
Sooklal was mandated by Thales to help Zuma beat his corruption charges. Zuma and Thint were only charged in November 2005, after Shaik was convicted of corruption.
Pierre Moynot, who replaced Thetard to head Thales's South African arm, allegedly told Zuma in Sooklal's presence: "Your clothes and your other outgoings anywhere in the world, I will pay for that."
Moynot allegedly handed the à1-million cheque to Msimang at his Waterkloof, Pretoria, home in Sooklal's presence. "Mr Msimang was quite happy with the cheque" and asked Moynot to thank his boss in Paris, said Sooklal.
Asked to comment on Sooklal's allegations, Moynot said Thales had hired him because he had "very good relations with the government" but accused him of "lying" in his testimony. "We realised very soon he was not a proper guy - he would do anything for money," Moynot said.
However, he confirmed that Thales had bankrolled Zuma's clothes, trips and legal fees and made a substantial donation to the ANC. "He had no money at the time. That's why we helped him," he said.
Thales wanted Zuma's prosecution "to be stopped as soon as possible. If he had lost, the company would have a lot of problems in his country and we would have had to leave."
There was nothing untoward in the ANC donation. "A lot of companies want to have good relations with the ANC and give them money from time to time." Asked to confirm the amount of à1-million, he said it was "something like that".
ANC spokesman Zizi Kodwa said "the ANC has got no record of such a donation. It's hearsay."
Sooklal's job with Thales ended after charges against Zuma and Thint were controversially withdrawn in April 2009 by prosecutions boss Mokotedi Mpshe, citing evidence of political interference contained in the so-called spy tapes.
Thales has declined to make any official comment, saying the arbitration matter was "sub judice at this stage". Sooklal said he would comment when the hearings ended. They are scheduled to continue this month.
Thetard and Msimang could not be reached for comment.
Source: http://www.timeslive.co.za/politics/2014/09/28/exposed-how-arms-dealer-thales-bankrolled-zuma
Further Reading
Camp Quatro – ANC crimes against humanity
http://stopwhitegenocideinsa.wordpress.com/2014/09/28/camp-quatro-anc-crimes-against-humanity/
How Big Business and the Media Sold South African Citizens to Communist Gangsters
http://toxinews.blogspot.com/2013/11/self-determination-boer-republics.html
Self Determination - Boer Republics, Volkstaat, Secession
(See paragraph under the heading "The battle for a United South Africa")
http://toxinews.blogspot.com/2013/11/self-determination-boer-republics.html
How international banks lured pre-1994 South Africa into a trap
http://toxinews.blogspot.com/2014/09/how-international-banks-lured-pre-1994.html
Arms dealer had Zuma in its pocket - report
(Zuma also allegedly used the code words "Eiffel Tower", which when translated meant "bribe".)
http://www.news24.com/SouthAfrica/Politics/Arms-dealer-had-Zuma-in-its-pocket-report-20140928
Big business could not openly support terrorists, so they called them "freedom fighters". In so doing, they could legally finance them, train them, market them as heroes of "the struggle", because what they were seeking, was an open door to South Africa's minerals and wealth.
The fight against the South Africa under the National Party never was about racism or racial discrimination, it was all about money. The National Party blocked access to plundering big business and big business had to remove that obstacle.
The National Party's Separate Development policy, aimed at splitting South Africa into smaller independent countries, known as the TBVC states, was not good for business and had to be stopped.
Big business wanted only one government, preferably a very corrupt government, to negotiate with, not numerous smaller independent states.
One of the first things Nelson Mandela's ANC Regime did, when they came to power in 1994, was to abolish the TBVC states, reincorporate them back into South Africa, and remove all mineral rights held by private property owners. They nationalised mineral rights to pave the way for plundering big business.
It is a fact that more racism and racial discrimination existed in ANC supporting overseas countries than had ever existed in South Africa, but the word "Apartheid" was a powerful weapon in the hands of plundering big business.
Every country that ever supported the ANC, disguised as "freedom Fighters", is today a partner in South Africa's ANC Regime.
A close friend added:
"Don't forget that "Big Business" consists not only of "The Board" who are the decision makers, but also of the "shareholders" who are nothing other than loan-sharks who want - or rather DEMAND - a return on the loans the made in the form of "purchasing" shares.
They - the shareholders - couldn't care one hoot about the morality of "The Board's decisions", and usually they will claim ignorance of both the decisions and the consequences.
When the AA, and later BEE, and BBBEE legislation was promulgated, the Corporates could have stood up en masse and stated clear that interference in business will not be tolerated, but although they had the power to do so, they did not - they had debts and favours to call in and by staying in the good books of Pretoria, would ensure that they will be rewarded for their immoral support through the years. And the citizens be damned. They found it handy to oppose so-called "inhumane laws" when they were still currying favour with the terrorists, but when their prodigies promulgated laws which were beyond any previously "inhumane" laws, they showed their moral impotence.
There is not one single director of a company who will lose one second of sleep about the lives destroyed by their immorality - and neither is there one single loan-shark "shareholder" who would.
What they forget is that the term "shareholder" defines their position in the misery and death caused by these immoral corporates - they share in the blame, and they will have to have to carry that responsibility when the time comes."
More of them have now been exposed...
EXPOSED: How French arms giant, Thales, bankrolled SA ('President') Jacob Zuma and the ANC
President Jacob Zuma and the ANC were deep in the pockets of French arms giant Thales. This is according to explosive documents obtained exclusively by the Sunday Times that reveal how Thales fixer Ajay Sooklal allegedly arranged flights, fancy clothes, legal fees and lavish hotel stays in Europe for Zuma when he faced corruption charges linked to the arms deal.
Thales's South African subsidiary Thint won a R2.6-billion contract in 1997 to fit four new navy frigates with combat suites.
The documents are transcripts of testimony given under oath before retired Judge Phillip Levinsohn at confidential arbitration hearings held earlier this year in a fee dispute between Sooklal and Thales.
The transcripts, totalling 1358 pages, provide a detailed account of Sooklal's work as a lawyer and secret fixer for Thales for six years.
Sooklal claims he is owed R70-million in outstanding fees. Thales has offered him R42-million.
Zuma declined to respond to detailed questions e-mailed to his spokesman Mac Maharaj this week.
"Anyone with information relating to the arms deal should bring it to the attention of the Seriti commission," Maharaj said. "The commission has been established specifically to deal with such allegations and rumours."
The commission resumes on October 6 with testimony from arms deal activist Terry Crawford-Browne.
The transcripts expose for the first time that:
Zuma used the code words "Eiffel Tower" to accept a R500000-a-year bribe from Thales in return for political protection in the arms deal probe and to secure future business;
- Thales gave former ANC treasurer Mendi Msimang a cheque for €1-million (about R14-million at today's rates) in April 2006 to be paid from a secret Dubai account into an "ANC-aligned trust" shortly before the company was due to stand trial for corruption with Zuma;
- Thales was asked to bankroll the ANC conference at Polokwane in 2007, where Zuma was elected party president, but did not do so;
- Thales furiously lobbied ANC officials including former president Thabo Mbeki, former justice minister Penuell Maduna, former secretary-general Kgalema Motlanthe and Msimang to be let off the hook, even enlisting the help of French president Jacques Chirac; and
- Thales bankrolled Zuma and Sooklal to fly around the world and meet witnesses who could help the ANC president in his forthcoming corruption trial, even when they were unrelated to Thales.
- As deputy president and head of government business at the time, Zuma was also expected to promote the French arms and electronic company's future business ventures in South Africa in return for his alleged bribe.
The arms company has since clinched several lucrative state contracts.
These include a R1.87-billion rail signalling contract in the Western Cape in 2013, a R100-million electronic ticketing system for the Gautrain in 2007 and a R95-million air traffic control maintenance contract in 2009 that did not go out to tender.
Despite a decade of court proceedings, Sooklal's is the first sworn testimony that Zuma personally signalled his acceptance of the bribe that led to Shaik's conviction. The code words used, "Eiffel Tower", has also never been revealed before.
The documents show Shaik proposed the bribe and code words to Alain Thetard, who headed Thint at the time. On March 11 2000 Shaik brought Thetard to see Zuma at King's House, his official residence in Durban, where he allegedly said: "I see the Eiffel Tower lights are shining today."
This was taken to mean Zuma had accepted the bribe offer. At the meeting Thetard jotted down the terms of the bribe agreement on a piece of paper he later gave to his personal assistant, who typed it up and sent it via encrypted fax to Thales's Paris and Mauritius offices. The fax became a crucial item of evidence and helped convict Shaik on corruption charges.
Two courts found that the King's House meeting in 2000 led to the first R250000 tranche of bribe money being released to Shaik.
The transcripts reveal the extent to which Thales had Zuma and the ANC in their pocket.
Sooklal, a politically connected former government official, was hired in 2003 to "make representations to the highest authorities in the land" to get corruption charges against Thales withdrawn and arrest warrants for its top executives uplifted soon after then-prosecutions boss Bulelani Ngcuka announced he would charge Shaik - and said there was a "prima facie" case of corruption against Zuma.
Sooklal was mandated by Thales to help Zuma beat his corruption charges. Zuma and Thint were only charged in November 2005, after Shaik was convicted of corruption.
Pierre Moynot, who replaced Thetard to head Thales's South African arm, allegedly told Zuma in Sooklal's presence: "Your clothes and your other outgoings anywhere in the world, I will pay for that."
Moynot allegedly handed the à1-million cheque to Msimang at his Waterkloof, Pretoria, home in Sooklal's presence. "Mr Msimang was quite happy with the cheque" and asked Moynot to thank his boss in Paris, said Sooklal.
Asked to comment on Sooklal's allegations, Moynot said Thales had hired him because he had "very good relations with the government" but accused him of "lying" in his testimony. "We realised very soon he was not a proper guy - he would do anything for money," Moynot said.
However, he confirmed that Thales had bankrolled Zuma's clothes, trips and legal fees and made a substantial donation to the ANC. "He had no money at the time. That's why we helped him," he said.
Thales wanted Zuma's prosecution "to be stopped as soon as possible. If he had lost, the company would have a lot of problems in his country and we would have had to leave."
There was nothing untoward in the ANC donation. "A lot of companies want to have good relations with the ANC and give them money from time to time." Asked to confirm the amount of à1-million, he said it was "something like that".
ANC spokesman Zizi Kodwa said "the ANC has got no record of such a donation. It's hearsay."
Sooklal's job with Thales ended after charges against Zuma and Thint were controversially withdrawn in April 2009 by prosecutions boss Mokotedi Mpshe, citing evidence of political interference contained in the so-called spy tapes.
Thales has declined to make any official comment, saying the arbitration matter was "sub judice at this stage". Sooklal said he would comment when the hearings ended. They are scheduled to continue this month.
Thetard and Msimang could not be reached for comment.
Source: http://www.timeslive.co.za/politics/2014/09/28/exposed-how-arms-dealer-thales-bankrolled-zuma
Further Reading
Camp Quatro – ANC crimes against humanity
http://stopwhitegenocideinsa.wordpress.com/2014/09/28/camp-quatro-anc-crimes-against-humanity/
How Big Business and the Media Sold South African Citizens to Communist Gangsters
http://toxinews.blogspot.com/2013/11/self-determination-boer-republics.html
Self Determination - Boer Republics, Volkstaat, Secession
(See paragraph under the heading "The battle for a United South Africa")
http://toxinews.blogspot.com/2013/11/self-determination-boer-republics.html
How international banks lured pre-1994 South Africa into a trap
http://toxinews.blogspot.com/2014/09/how-international-banks-lured-pre-1994.html
Arms dealer had Zuma in its pocket - report
(Zuma also allegedly used the code words "Eiffel Tower", which when translated meant "bribe".)
http://www.news24.com/SouthAfrica/Politics/Arms-dealer-had-Zuma-in-its-pocket-report-20140928
SA's total Q2 2014 industry turnover was R1.86-trillion, less than in 2013
South Africa's total industry turnover for the second quarter (Q2) 2014 was R1.86-trillion, which at the current value of the Rand is US$165-billion.
"Year-on-year the increase has been positive," claims SA statistician general Pali Lehohla.
South Africa's total industry turnover for the second (Q2) quarter 2013 was R1.71-trillion, which at the value of the Rand at the time, was the equivalent to US$168-billion.
This means that measured against the US Dollar, South Africa is moving backwards. I'll rather not compare this to pre-1994 as it would shock most people into heart attacks.
South African economists are trying to convince the public that South Africa is going forward and growing.
Mining and manufacturing, major sources of foreign income, both dropped, while electricity and water, both of which are strangling South Africans to death, increased.
It is like the way economists are bragging about South Africans' salaries that are growing. That is like Zimbabwe bragging about their salaries now averaging 20-million Zim-Dollar per month.
Turnovers are increasing, because the Rand is depreciating, requiring them to print more worthless money and with almost weekly price increases on anything money can buy in this country, inflation is out-of-control, while economists are juggling the figures to make it seem stable.
R10,000 a month today is equivalent to US$891. In 1994 your R10,000 was worth US$2,813.
South Africa has been moving backward since 1994.
Source: http://www.moneyweb.co.za/moneyweb-economic-trends/r186bn--q2-total-turnover-of-all-industries
"Year-on-year the increase has been positive," claims SA statistician general Pali Lehohla.
South Africa's total industry turnover for the second (Q2) quarter 2013 was R1.71-trillion, which at the value of the Rand at the time, was the equivalent to US$168-billion.
This means that measured against the US Dollar, South Africa is moving backwards. I'll rather not compare this to pre-1994 as it would shock most people into heart attacks.
South African economists are trying to convince the public that South Africa is going forward and growing.
- The largest decrease was in mining and quarrying, which dropped by 5.7%
- Community, social and personal services (excluding government institutions) dropped by 4.5%, manufacturing by 2.5% and trade by 0.2%.
- "The electricity sector is growing," Electricity and water supply increased by 14.5%, construction by 4.4%, transport, storage and communication by 2.2% and real estate and other business services by 1.7%
Mining and manufacturing, major sources of foreign income, both dropped, while electricity and water, both of which are strangling South Africans to death, increased.
It is like the way economists are bragging about South Africans' salaries that are growing. That is like Zimbabwe bragging about their salaries now averaging 20-million Zim-Dollar per month.
Turnovers are increasing, because the Rand is depreciating, requiring them to print more worthless money and with almost weekly price increases on anything money can buy in this country, inflation is out-of-control, while economists are juggling the figures to make it seem stable.
R10,000 a month today is equivalent to US$891. In 1994 your R10,000 was worth US$2,813.
South Africa has been moving backward since 1994.
Source: http://www.moneyweb.co.za/moneyweb-economic-trends/r186bn--q2-total-turnover-of-all-industries
Saturday, 27 September 2014
55% of South Africans earn less than R10,000 (US$891) a month -$1,922 less than in 1994
55% of working South Africans earn less than R10,000 (US$891) a month - 13% earn less than R4,000 (US$356).
In Sept 1994 your R10,000 was worth US$2,813, today it is worth only US$891, but economists are trying to convince us that we're making progress and that our living standards had improved.
This is like Zimbabwean economists bragging that half of their working population are now earning 10-million Zimbabwean Dollars per month.
The total value of salaries paid out in South Africa amounts to just R44.8 billion, which is the equivalent of US$4,347-billion.
What could the total salary package of all working South Africans buy with thier US$4.3-billion?
The U.S. Centers for Disease Control (CDC) have an annual budget of over $4 billion to purchase vaccines from drug companies.
Facebook bought WhatsApp for $19 billion. "Facebook (FB) said it will pay WhatsApp $4 billion in cash and $12 billion in stock. WhatsApp's founders and staff will be eligible for for another $3 billion in stock grants to be paid out if they remain employed by Facebook for four years."
All working South Africans combined could only buy the vaccines for the U.S. CDC and only give the cash deposit to buy Whatsapp.
If you wanted emigrate to the U.S. with R10-million in your back pocket, you would arrive in America with just US$890,718.
Liberals and economists call this "progress"
Source:
More than half of working South Africans earn less than R10,000 a month
http://www.timeslive.co.za/local/2014/09/25/more-than-half-of-working-south-africans-earn-less-than-r10000-a-month
In Sept 1994 your R10,000 was worth US$2,813, today it is worth only US$891, but economists are trying to convince us that we're making progress and that our living standards had improved.
This is like Zimbabwean economists bragging that half of their working population are now earning 10-million Zimbabwean Dollars per month.
The total value of salaries paid out in South Africa amounts to just R44.8 billion, which is the equivalent of US$4,347-billion.
What could the total salary package of all working South Africans buy with thier US$4.3-billion?
The U.S. Centers for Disease Control (CDC) have an annual budget of over $4 billion to purchase vaccines from drug companies.
Facebook bought WhatsApp for $19 billion. "Facebook (FB) said it will pay WhatsApp $4 billion in cash and $12 billion in stock. WhatsApp's founders and staff will be eligible for for another $3 billion in stock grants to be paid out if they remain employed by Facebook for four years."
All working South Africans combined could only buy the vaccines for the U.S. CDC and only give the cash deposit to buy Whatsapp.
If you wanted emigrate to the U.S. with R10-million in your back pocket, you would arrive in America with just US$890,718.
Liberals and economists call this "progress"
Source:
More than half of working South Africans earn less than R10,000 a month
http://www.timeslive.co.za/local/2014/09/25/more-than-half-of-working-south-africans-earn-less-than-r10000-a-month
How Mandela, his ANC and Barack Obama failed the Henry Ford Test
Henry Ford said that "You can't build a reputation on what you are going to do."
The problem is that Henry never realised that, one day, the media would do exactly that for the ANC, Nelson Mandela and Barack Obama.
The media created a reputation for Mandela, based on what he was "going to do" for South Africa, even long before he was allowed to leave prison notwithstanding the fact that he refused to denounce violence until his predetermined date of death finally arrived, and just look at his legacy.
The media created a reputation for the ANC "freedom fighters", based on what they were "going to do" for South Africa, and just look at them now.
For the "Yes we can" man, Barack Obama, the media also created a reputation, based on what he was "going to do", even before he became president of the United States, and just look at the USA today.
One of the most important books ever written, "The Fourth Estate" by Joel Mervis, was only published in 1989, while Henry died in 1947 already. It came out too late for him to have read it before having made this statement.
In 1994 the ANC promised to build 300,000 a year with a minimum of one million low-cost houses to be constructed within five years. The ANC's Minister of Human Settlements promised in July 2014 that South Africa is about to become the biggest construction site in Africa and most probably in the developing world, because they were going to build 1.5-million houses in the next five years. During the 1999 election campaign the ANC promised to provide free electricity and water to the poorest households. The ANC is going to create 6 million jobs. The ANC is going to provide free healthcare and hospitalisation to all Black, Indian, Chinese and Coloured SA citizens and all illegal foreigners from Africa. (Sorry to inform you that whites, being of European origin, will not qualify.) The ANC was going to stimulate a 6% economic growth. In the run up to the 2014 general elections, the ANC promised a cleaner image and zero tolerance of corruption. The ANC promised better and free education for all. The ANC promised this and that and everything they've promised ended up as a disaster.
But in the end Henry Ford was right...
The media created a reputation for Mandela, for the ANC and Barack Obama, just to get them to power, but in each and every case they failed the Henry Ford test. All of them destroyed the reputations created on their behalf by the media, based on what they were "going to do", and today they all have the reputation of being failures.
The problem is that Henry never realised that, one day, the media would do exactly that for the ANC, Nelson Mandela and Barack Obama.
The media created a reputation for Mandela, based on what he was "going to do" for South Africa, even long before he was allowed to leave prison notwithstanding the fact that he refused to denounce violence until his predetermined date of death finally arrived, and just look at his legacy.
The media created a reputation for the ANC "freedom fighters", based on what they were "going to do" for South Africa, and just look at them now.
For the "Yes we can" man, Barack Obama, the media also created a reputation, based on what he was "going to do", even before he became president of the United States, and just look at the USA today.
One of the most important books ever written, "The Fourth Estate" by Joel Mervis, was only published in 1989, while Henry died in 1947 already. It came out too late for him to have read it before having made this statement.
In 1994 the ANC promised to build 300,000 a year with a minimum of one million low-cost houses to be constructed within five years. The ANC's Minister of Human Settlements promised in July 2014 that South Africa is about to become the biggest construction site in Africa and most probably in the developing world, because they were going to build 1.5-million houses in the next five years. During the 1999 election campaign the ANC promised to provide free electricity and water to the poorest households. The ANC is going to create 6 million jobs. The ANC is going to provide free healthcare and hospitalisation to all Black, Indian, Chinese and Coloured SA citizens and all illegal foreigners from Africa. (Sorry to inform you that whites, being of European origin, will not qualify.) The ANC was going to stimulate a 6% economic growth. In the run up to the 2014 general elections, the ANC promised a cleaner image and zero tolerance of corruption. The ANC promised better and free education for all. The ANC promised this and that and everything they've promised ended up as a disaster.
But in the end Henry Ford was right...
The media created a reputation for Mandela, for the ANC and Barack Obama, just to get them to power, but in each and every case they failed the Henry Ford test. All of them destroyed the reputations created on their behalf by the media, based on what they were "going to do", and today they all have the reputation of being failures.
How international banks lured pre-1994 South Africa into a trap
A most interesting article, worth reading. It shows how international banks lured pre-1994 RSA into a trap.
At the end of 1993, South Africa's international debt was US$25.8-billion. By 1994. Pre-ANC, South Africa posted net capital inflow of +R8 billion. SA's Debt 2014: US$137.8-billion
South Africa's National Debt: R. 1,542,277,891,445
Each Citizen's Share: R.30,540
Debt as % of GDP: 41.66%
South Africa External Debt
Sources: The Library of Congress Country Studies; CIA World Factbook
Historically, mining and agriculture contributed the most to national output. With government assistance during and after World War II, manufacturing grew to become the greatest contributor to overall gross domestic product (GDP--see Glossary), and overall economic growth in the 1960s rivaled that of Japan--averaging 5.9 percent per year in real terms (compared with the 4 percent annual average growth of the 1950s). During the 1970s, however, growth in both manufacturing and agriculture stagnated, and the services sector--especially the insurance industry, financial facilities, and transport services--became the fastest-growing economic sector (see table 5, Appendix).
The price of gold was allowed to float (relative to the rand) in the early 1970s, and by the end of the decade, high prices for gold and other export commodities sparked a brief economic recovery. Mining continued to be vital to the nation's economic future, because minerals, especially gold, dominated exports and influenced the growth of other major economic sectors, which relied on gold exports to bring in much-needed foreign exchange. Thus, even as the importance of gold in the GDP declined, it continued to affect the country's balance of payments. When gold prices (and export revenues) declined, local industries often were unable to obtain imports, such as machinery and other inputs necessary to maintain production; as a result, other exports also declined.
Economic growth slowed in the late 1970s and the early 1980s, not only because of declining gold revenues, but also because of rising prices for oil imports and increased international competition in other traditional export commodities. The first recession of this period occurred in 1976, following dramatic oil price hikes. Strong export growth based on higher gold prices helped the recovery from this recession, but the country was hit by a series of droughts in the 1980s, which seriously affected agricultural output. Further erratic changes in gold prices led to a series of booms and busts, reducing average annual GDP growth for the 1980s to only 1.5 percent.
Negligible growth in the 1980s led to an overall decline in living standards, as population growth far outpaced economic expansion. Per capita GDP declined by more than 10 percent during the decade, and for the average individual, real wealth in 1990 was no higher than it had been in 1970.
National economic stagnation continued in the early 1990s. GDP declined in 1991 and 1992, and registered only weak positive growth in 1993, according to the government's Central Statistical Service. Private consumption accounted for 57 percent of GDP in 1993, representing a minimal (0.4 percent) increase over 1992. Private consumption was constrained by high consumer indebtedness, however, and by concerns over violence and job security.
The recovery strengthened in 1994. In that year, GDP amounted to R432.8 billion (US$121.9 billion) representing 2.6 percent real growth over 1993 (see table 6, Appendix). Per capita GDP averaged about US$3,010, placing South Africa among the World Bank's (see Glossary) upper-middle-income developing countries. The recovery continued in 1995, and officials predicted GDP growth would exceed 4 percent in 1996 (see fig. 13; fig. 14).
National accounting procedures were adjusted in 1994 to incorporate the economies of the four former "independent" African homelands--Bophuthatswana, Ciskei, Transkei, and Venda. In addition, GDP measurements were adjusted upward by 5.6 percent to include a modest estimate of output in the informal sector, which had been omitted from national accounts until 1994. The informal sector constitutes a "parallel" economy, consisting primarily of unrecorded and untaxed wages, barter trade, and other unofficial receipts. For many rural families in South Africa, as in the rest of Africa, informal economic activity accounts for most of the household income.
South Africa's advanced industrial sector made it the twenty-fifth largest economy in the world, a giant among African countries in the 1990s. Per capita GDP, in 1994, compared with the rest of Africa, was topped only by the Seychelles, Réunion, and Gabon. With only about 7 percent of the population and 4 percent of the total land area of Africa, South Africa produced more than one-third of Africa's goods and services, and nearly 40 percent of its manufacturing output.
External Debt
Loan capital was readily available during the 1970s, and both the public and the private sectors borrowed heavily, often in the form of trade credits. Then in the early 1980s, foreign investments declined relative to the value of foreign loans needed to finance economic growth. As a result, equity capital dropped as a percentage of foreign debt from 60 percent in 1970 to less than 30 percent in 1984, while South Africa's loans grew from 40 percent to 70 percent of foreign debt. The government encouraged this trend by stepping in whenever foreign bankers hesitated to increase lending and stabilized indebtedness through gold swaps or by borrowing from the International Monetary Fund (IMF--see Glossary). As a result of these policies, South Africa's net indebtedness to the international banks increased sharply, and about two-thirds of its outstanding loans in 1984 had a maturity of one year or less. The banking sector was responsible for 44 percent of South Africa's foreign liabilities, and a further 16 percent had been incurred by the public sector. Only about 40 percent were private liabilities. Britain dominated foreign capital loans and investments, accounting for about 40 percent of foreign investment in 1985.
South Africa was hit with a major foreign debt crisis in 1985, when a group of banks, led by Chase Manhattan, withdrew substantial credit lines. The banks refused to roll over existing loans and called in many of the short-term loans. As a result, the value of the rand dropped precipitously, and the government temporarily closed its financial and foreign-exchange markets. Unable to meet debt obligations so suddenly, the government declared a standstill on repayments of approximately US$14 billion of South Africa's US$24 billion total external debt. Liabilities not included in the standstill were trade credits, loans from the IMF and central banks, and credits guaranteed by Paris Club (see Glossary) member governments. Publicly quoted issues of South African parastatals (state corporations) were also left out.
During the standstill, government officials met with representatives of creditor banks and drew up a rescheduling plan, which proposed extending the 1985 debt freeze until June 1987 and repaying 5 percent of the total outstanding by April 1987. An initial payment of US$420 million was made in mid-April 1986, but additional rescheduling agreements in 1987 and 1989 extended many of these loans. The 1989 agreement stipulated that the amount of debt remaining in those categories affected by the standstill, originally amounting to US$14 billion, would be reduced to roughly US$6 billion in four years.
A key problem in repaying its loans was the large, but undisclosed, portion of South Africa's debt that was denominated in hard nondollar currencies, but appreciated in dollar terms as the dollar weakened. South Africa nonetheless repaid between US$1.7 billion and US$1.9 billion of debt by 1990, and some foreign bankers were increasingly willing to refinance maturing South African credits. For example, US$300 million of US$900 million bearer bonds in deutsche marks and Swiss francs were rolled over or replaced in 1990.
There was almost no external borrowing by South Africa from 1985 to 1990, so even its slowed schedule of debt repayment made South Africa a net capital exporter during the late 1980s. South Africa reduced its total disclosed foreign debt to less than US$20 billion in early 1992, down from nearly US$24 billion in 1985, according to the South African Reserve Bank. Currency fluctuations brought South Africa's international debt back to US$25.8 billion at the end of 1993, including rand-denominated foreign debt, and that figure continued to increase in 1994.
The government repaid about US$500 million in foreign debt in February 1994. At that time, South Africa was considered an under-borrower by conventional financial criteria, with a foreign debt/export ratio of about 60 percent and a foreign debt/GDP ratio of 15.1 percent, according to South African Reserve Bank figures. Overall, South Africa posted a net capital inflow of more than R8 billion in the second half of 1994. Foreign borrowing increased in 1995, when gross foreign debt rose to nearly 22 percent of GDP.
Data as of May 1996
http://www.photius.com/countries/south_africa/economy/south_africa_economy_external_debt.html
Further Reading
How Big Business and the Media Sold South African Citizens to Communist Gangsters
http://toxinews.blogspot.com/2014/05/how-big-business-and-media-sold-south.html
At the end of 1993, South Africa's international debt was US$25.8-billion. By 1994. Pre-ANC, South Africa posted net capital inflow of +R8 billion. SA's Debt 2014: US$137.8-billion
South Africa's National Debt: R. 1,542,277,891,445
Each Citizen's Share: R.30,540
Debt as % of GDP: 41.66%
South Africa External Debt
Sources: The Library of Congress Country Studies; CIA World Factbook
Historically, mining and agriculture contributed the most to national output. With government assistance during and after World War II, manufacturing grew to become the greatest contributor to overall gross domestic product (GDP--see Glossary), and overall economic growth in the 1960s rivaled that of Japan--averaging 5.9 percent per year in real terms (compared with the 4 percent annual average growth of the 1950s). During the 1970s, however, growth in both manufacturing and agriculture stagnated, and the services sector--especially the insurance industry, financial facilities, and transport services--became the fastest-growing economic sector (see table 5, Appendix).
The price of gold was allowed to float (relative to the rand) in the early 1970s, and by the end of the decade, high prices for gold and other export commodities sparked a brief economic recovery. Mining continued to be vital to the nation's economic future, because minerals, especially gold, dominated exports and influenced the growth of other major economic sectors, which relied on gold exports to bring in much-needed foreign exchange. Thus, even as the importance of gold in the GDP declined, it continued to affect the country's balance of payments. When gold prices (and export revenues) declined, local industries often were unable to obtain imports, such as machinery and other inputs necessary to maintain production; as a result, other exports also declined.
Economic growth slowed in the late 1970s and the early 1980s, not only because of declining gold revenues, but also because of rising prices for oil imports and increased international competition in other traditional export commodities. The first recession of this period occurred in 1976, following dramatic oil price hikes. Strong export growth based on higher gold prices helped the recovery from this recession, but the country was hit by a series of droughts in the 1980s, which seriously affected agricultural output. Further erratic changes in gold prices led to a series of booms and busts, reducing average annual GDP growth for the 1980s to only 1.5 percent.
Negligible growth in the 1980s led to an overall decline in living standards, as population growth far outpaced economic expansion. Per capita GDP declined by more than 10 percent during the decade, and for the average individual, real wealth in 1990 was no higher than it had been in 1970.
National economic stagnation continued in the early 1990s. GDP declined in 1991 and 1992, and registered only weak positive growth in 1993, according to the government's Central Statistical Service. Private consumption accounted for 57 percent of GDP in 1993, representing a minimal (0.4 percent) increase over 1992. Private consumption was constrained by high consumer indebtedness, however, and by concerns over violence and job security.
The recovery strengthened in 1994. In that year, GDP amounted to R432.8 billion (US$121.9 billion) representing 2.6 percent real growth over 1993 (see table 6, Appendix). Per capita GDP averaged about US$3,010, placing South Africa among the World Bank's (see Glossary) upper-middle-income developing countries. The recovery continued in 1995, and officials predicted GDP growth would exceed 4 percent in 1996 (see fig. 13; fig. 14).
National accounting procedures were adjusted in 1994 to incorporate the economies of the four former "independent" African homelands--Bophuthatswana, Ciskei, Transkei, and Venda. In addition, GDP measurements were adjusted upward by 5.6 percent to include a modest estimate of output in the informal sector, which had been omitted from national accounts until 1994. The informal sector constitutes a "parallel" economy, consisting primarily of unrecorded and untaxed wages, barter trade, and other unofficial receipts. For many rural families in South Africa, as in the rest of Africa, informal economic activity accounts for most of the household income.
South Africa's advanced industrial sector made it the twenty-fifth largest economy in the world, a giant among African countries in the 1990s. Per capita GDP, in 1994, compared with the rest of Africa, was topped only by the Seychelles, Réunion, and Gabon. With only about 7 percent of the population and 4 percent of the total land area of Africa, South Africa produced more than one-third of Africa's goods and services, and nearly 40 percent of its manufacturing output.
External Debt
Loan capital was readily available during the 1970s, and both the public and the private sectors borrowed heavily, often in the form of trade credits. Then in the early 1980s, foreign investments declined relative to the value of foreign loans needed to finance economic growth. As a result, equity capital dropped as a percentage of foreign debt from 60 percent in 1970 to less than 30 percent in 1984, while South Africa's loans grew from 40 percent to 70 percent of foreign debt. The government encouraged this trend by stepping in whenever foreign bankers hesitated to increase lending and stabilized indebtedness through gold swaps or by borrowing from the International Monetary Fund (IMF--see Glossary). As a result of these policies, South Africa's net indebtedness to the international banks increased sharply, and about two-thirds of its outstanding loans in 1984 had a maturity of one year or less. The banking sector was responsible for 44 percent of South Africa's foreign liabilities, and a further 16 percent had been incurred by the public sector. Only about 40 percent were private liabilities. Britain dominated foreign capital loans and investments, accounting for about 40 percent of foreign investment in 1985.
South Africa was hit with a major foreign debt crisis in 1985, when a group of banks, led by Chase Manhattan, withdrew substantial credit lines. The banks refused to roll over existing loans and called in many of the short-term loans. As a result, the value of the rand dropped precipitously, and the government temporarily closed its financial and foreign-exchange markets. Unable to meet debt obligations so suddenly, the government declared a standstill on repayments of approximately US$14 billion of South Africa's US$24 billion total external debt. Liabilities not included in the standstill were trade credits, loans from the IMF and central banks, and credits guaranteed by Paris Club (see Glossary) member governments. Publicly quoted issues of South African parastatals (state corporations) were also left out.
During the standstill, government officials met with representatives of creditor banks and drew up a rescheduling plan, which proposed extending the 1985 debt freeze until June 1987 and repaying 5 percent of the total outstanding by April 1987. An initial payment of US$420 million was made in mid-April 1986, but additional rescheduling agreements in 1987 and 1989 extended many of these loans. The 1989 agreement stipulated that the amount of debt remaining in those categories affected by the standstill, originally amounting to US$14 billion, would be reduced to roughly US$6 billion in four years.
A key problem in repaying its loans was the large, but undisclosed, portion of South Africa's debt that was denominated in hard nondollar currencies, but appreciated in dollar terms as the dollar weakened. South Africa nonetheless repaid between US$1.7 billion and US$1.9 billion of debt by 1990, and some foreign bankers were increasingly willing to refinance maturing South African credits. For example, US$300 million of US$900 million bearer bonds in deutsche marks and Swiss francs were rolled over or replaced in 1990.
There was almost no external borrowing by South Africa from 1985 to 1990, so even its slowed schedule of debt repayment made South Africa a net capital exporter during the late 1980s. South Africa reduced its total disclosed foreign debt to less than US$20 billion in early 1992, down from nearly US$24 billion in 1985, according to the South African Reserve Bank. Currency fluctuations brought South Africa's international debt back to US$25.8 billion at the end of 1993, including rand-denominated foreign debt, and that figure continued to increase in 1994.
The government repaid about US$500 million in foreign debt in February 1994. At that time, South Africa was considered an under-borrower by conventional financial criteria, with a foreign debt/export ratio of about 60 percent and a foreign debt/GDP ratio of 15.1 percent, according to South African Reserve Bank figures. Overall, South Africa posted a net capital inflow of more than R8 billion in the second half of 1994. Foreign borrowing increased in 1995, when gross foreign debt rose to nearly 22 percent of GDP.
Data as of May 1996
http://www.photius.com/countries/south_africa/economy/south_africa_economy_external_debt.html
Further Reading
How Big Business and the Media Sold South African Citizens to Communist Gangsters
http://toxinews.blogspot.com/2014/05/how-big-business-and-media-sold-south.html
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