Purpose of this Document.
Before I even continue, let me first say that “No Government in the world is perfect and therefore will never be able to satisfy all in the country, always being subjected to critics and comments”. In the light of the upcoming budget speech as well as elections, there is certain issues that needs to be drawn to the attention of Government that was and still is being neglected by millions of South Africans. The reason for neglecting is that these people are mostly uneducated and do not have the ability to question the issue with regards to politics, economic reform and what the signs mean of higher inflation, lower Rand value, unemployment, high crime rates, misleading of political promises. With the last statement I want to place emphasis upon that we should not just look at one specific party that make these promises and statement, but in the whole for the other parties are not angels in their campaigns. Maybe a person with authority and vision would see my reform strategy and other than many previous times where my ideas were “stolen” by either government or the private sector, I could be included. Other than this, is the fact that my strategy will actually work and help the people of the country with not only financial recovery but also elevate the long-term burden that rest upon the shoulders of government? One cannot say that my economic reform strategy cannot work for not having enough experience in the financial world for as many Government Officials in key management positions are entrusted with a country whereby most does not have any experience in their field prior to appointment. My economic strategy would also not have the impact upon the country economic if huge companies in South Africa are doing the fields of development for then only the people in the pound seats will profit and not the much-needed poor people.
Listening to the State of the Nation address, our President mentioned about the amounts of jobs created, but he never mentioned about the jobs lost and the matriculants that finished school and would not be able to find jobs. He mentioned about the success in AIDS but did not mentioned about the increase in psychiatric cases due to drug abuse causing a negative growth en employment potential and increase in crime rate. He also mentioned about the aim to reduce crime, but failed to mention the increase in poverty due to failing to address sosio-economical issues. Decrease in crime will never happen if there is an increase in un-employment and decrease in monetary value, etc. I can go on for pages about the failures not mentioned however that would defeat the purpose of this document. This might just be the turn around whereby Government can proof that they can produce and not just be a front for a few to benefit whereby the rest of the country are left for the wolfs as a matter of speech. Valuable quotes in finances “The ladder to success is not climbed with the hands in ones pockets”, “Prevent to be penny wise and pound foolish” and my favorite “why handing out for the rest of your life if you can teach people how to fish and they can provide for you and themselves”.
Background
This is my own point of view and comments are based on research, studies, newspaper articles and the Internet. With this I want to express myself and am not intended to a specific person, organization or affiliate. If I talk about tax payers, I talk about all of South Africa including foreigners that compelled by law to carry South Africa and its millions of under privileged people that is either “Victims of apartheid” whereby I specify upon people of color that was born before 1994 for people born after 1994 were born in a Democratic South Africa and therefore cannot be seen as previously disadvantaged, Pensioners that still depend on assistance for their “Government Pension” they received were as current merely not enough to sustain them till the end of day, the disabled and handicapped and victims of crime and abandonment . For these are worthy causes and I should applause them.
If I talk about Government, I talk in general and not addressing a specific person or department and in general. If referred to specific circumstances, articles or instances, it is been done out of freedom of speech that is part of our constitution. (Probably the best in the world.) However our constitution get adapted sometimes to fit many for personal gain. If we could take a look at the economic reform one should always look at the cause of the problem and not to address the symptoms as of many Government and Corporate officials try to do. We are also in a country now whereby many, especially politicians would rather see that the country become a true third world country due to crime and poverty than to consider any advice of people that might just know what they are talking about. I AM NOT AN EXPERT ON ALL THE FIELDS AND THEREFORE CANNOT GUARENTEE THAT MY OPINION IS THE ONE TO GO WITH, BUT THEN ALSO FOR THE PAST 20YEARS PEOPLE WERE PUT IN KEY POSITIONS AND RULING POSITIONS WITH LITTLE OR NO KNOWLEDGE OF WHAT THEY HAVE TO DO AND JUST BY KNOWING SOMEONE OR OWING SOMEONE. And Government as many other think that this is the way to go. As proofed many times before that by taking actions like this ends up in disaster that put South Africa not only in a bad light, but also have mostly difficult repairable damage.
My Economic reform Strategy will help in obtaining foreign income, that would place our currency in more value, create tens of thousand more job opportunities especially in the lower educational field, would safe government Millions if not billions with day to day operations and acquisitions for movable assets, Help in the reduction of the credit lending rate with consumers, This would also help to get South Africa back in the international market where people would want to buy from us in stead of South Africa buying from foreign companies. (Definition for a foreign company should be seen as any company that has more than 40% share belonging to foreigners or foreign companies. My strategy will also include the skills development especially with the under educated. This could bring a change in the current domestic economical situation whereby interest rates and credit need is soaring and with my strategy, there would be a much more diverse distribution of funds than ever recorded. This might just be the beginning of a healthy economy whereby the South Africans doing the work would benefit and not the owners of the companies getting richer and richer.
SOUTH AFRICA GOVERNMENT
Our government is one of the few governments that not only become laughing stock to the Western Communities and Europe especially with photo’s taken in parliament where key officials sleep during debates and speeches. No wonder things are going on like it is for many of them don’t care what is happening as long as they have the title and salary. We should also bear in mind when I speak about government I do not only speak about National Government, but also provincial and local government.
Facts about Government:
South Africa is most probably the only country where the President may lawfully and openly commit bigamy and where none of the other country EU countries would allow it. In a matter of fact if not mistaken I still think that bigamy is still an offence in South Africa. Well if the law states that it is customary marriages and not juridical, then why must the tax payers support their life styles and provide them with extra safety and security whereby only the first wife is entitled to that. I know that all other countries official housing is being maintained by government and public works from tax payers money which is fair for South Africa do need an image to maintain and cannot deemed to be a third world country when receiving heads of states on official visits. As long as it is not being used for personal friends as the Guptas with valuable government resources that was taken from much needed communities. No where in the world where there is a sense of honesty and anti corruption will government spent R200 Million Rand to build / upgrade and renovate a private home for a government official whereby at the same stage cannot even provide better infrastructure for schools, hospitals, oldage homes, etc. This sounds like self-enrichment and might also go trough as theft from the people of South Africa. If I want my private house to be improved, I cannot just take money from my employer and spend it as I wish contradicting building regulations.
Let us look at the placement of Cabinet and appointments of Ministers. (Can an engineer run a vegetable market? Or a mechanic runs a hospital? This should be quite interesting to find out about their qualifications, experience in the fields of which they were appointed in and see if anybody in the private sector would hire a person that do not meet the criteria for if Government truly want to excel in the fields of interest, they would have appointed people knowing the industry of which they would be the head of. And then there is also the no collaboration between the department heads to have a strategy where all could be of benefit in reaching the same goal and vision. Now it seems that we do have a lot of people running around unproductively and just want to look important, not knowing what is going on in their departments. Years ago people would cut off chicken’s heads in their back yards and sometimes for not having grip on the chicken it would run around until bled to death. This is how most of the government departments operate. Examples
Does the Minister of Education have experience in giving education and how to deal with a lot of ill-disciplined children? Did the Minister ever have to give school in a building where there is neither infrastructure nor resources? This can continue as a document upon itself. Our Schools does not function properly because the Head of the department does not know what are the real circumstances in the schools. However it is so bad that none of the members of cabinet or senior government will let any of their children go to a public school in an urban community or are they? I wonder if they would still enforce rules upon teachers that prevent them from both physical and verbal abuse by ill disciplined learners.
The Department of health: Can there honestly being said that the minister of health or any of the family members would be happy visiting a public clinic or hospital for treatment and sit in queues waiting hours to be helped and when helped only receive the utmost necessary treatment for there is a shortage of staff or resources. What will happen if any of the so called hi profile members in the health department is involved in an accident and they have to depend on an ambulance taking up to 4 hours and when arriving only when the condition is really life threatening they can use resources to stabilize the patient. I can continue this discussion in a whole encyclopedia. What actually would be of benefit is that if the people in charge (Minister and Directors) learn that there are more diseases that needs urgent attention and the main conditions costing billions to government is not only AIDS, TB, Lung Cancer and heart disease. Currently if they would conduct a proper study they would found that the main cause of cost and medical conditions is directly or indirectly from trauma-associated cases and not only viral or bacterial. Focus should be shifted to what really cost money. Another focus field whereby I personally think active involvement should be considered is the psychiatric field for with the social economic deterioration, drug and liquor abuse is on the verge of exploding ending up in psychiatric conditions. The growth in the drug and alcohol abuse amongst the youth of today are busy escalating where in 10years most of today youth would be depending on government grant and psychiatric care.
Another Joke is the Safety and security joke. Not to say much is the question, Can people really give critics about a situation like Marekane if they themselves would not even go and look if the dog barks at night? People that only heard about a gang shooting, or an armed robbery, etc. People appointed and placed in positions that have to decide upon how members should react if they themselves don’t even know how it feels to wear a bullet proof or are not willing for the same pay to be killed for someone they do not even know. In government many want to decide upon how the people in the safety and security should react while they don’t even are willing to get close to and not knowing the extent of the job. Seeing more frequently that the people giving orders forget the legislation with regards to Safety and Security and what it stands for and force upon the members to work beyond their scope of profession for example social services. Then there is yearly the empty promise of reduction of crime when the odds clearly shows that with the unemployment increase and drug abuse and ill discipline, crime will just go up. The fight against crime is not the job for Safety and Security but if all the Government departments act upon what is good for South Africa and understand their purpose, things could just go better.
The Department of transport. Well how can one manage a department if one do not know how the resources operate and therefore could change it from a liability to an asset for South Africa? One liability and bad decision was the E Toll. How long would it take for this system to become profitable? Never did anybody think those people without jobs but with cars will also utilized the road but don’t have to pay for it. There are so many ways for the department of transport to generate income than to spend Millions for something that would in a life time keeping in mind inflation might just cover cost. In my economic reform discussion one would see that one do not need to search far and spend millions to generate a profitable income. This would include SAA, Railways, Ports and roads. One cannot run a profitable Department if one does not know the mechanics of what has to be dealt with.
Department of labor, another joke especially the mere fact that for example I have an injury on duty since 2002 and up till now with frequent inquiries it has not been assess. Then also it writes legislation that benefits the qualified and stable income workers and not representing the vast majority of worker force that does not have the qualifications. One thing that the department also does not look at is the mere fact that the alcohol and drug abuse in the youth currently will lead to a long-term negative workforce growth ending up in limited skills. Rehabilitation would take generations and the possibility of labor related injuries would increase.
Department of agriculture, forestry and fisheries. I am trying since 2010 to join partnership with the department in not only going green, but also to let the heads of the department see an easy common act like ensuring that indigenous trees will be of benefit not only to our economy but also to our climate. This would also create a limited amount of job opportunities especially when re directed to provinces and municipalities. How difficult is it to realize that with the current climate changes, there would not be a department left in the future and most probably no farming? This is only one example. Furthermore in the exploration and exploitation, I would also show how “penny wise and pound foolish” the government is giving away our resources and opportunities to foreign countries leaving the South African citizens poorer and hungrier. I already made a proposal in 2008 to government to finance and support fish farming as alternative food source and with the establishment of this, I can guarantee that not only will there be a certain support in the demand for food, but also have the opportunity to export. Fish farming would also include the abalone farming, crocodile farming, fresh water farming, etc. There are more than enough resources and opportunities to create these projects and with financials provided then and there, one would think that government especially the department of agriculture care.
Department of trade and industry: How successful were the people in charge of the industry in their own finances and or companies. I am just curious upon what extend do the people in charge of policies understand the fundamentals of the trade and industry. Looking at the recent take over of the Protea group by Marriots. It is common knowledge that in the short term the country would have got a huge financial input, but on the long term being an American company means the a huge percentage of the nett income is leaving the country making it poorer. Does it make sense? Why not help South African people (BEE) start an international fast food chain than to let “Burger King” into South Africa. Once again money going out of the country. Any foreign investor not residing in South Africa would have a maximum of 49% share in a company, which means that 49% of the netto income will go out of the country pushing up inflation. Red lights should have flashed in the departments long ago for protecting the small businesses. Is it so difficult to be seen? Currently there is a decrease in small business due to extensive competition by large companies that can afford price reduction to consumers and increase un-employment. If calculated correctly one would find that in the near distant future there would only be a few companies “ruling” the South African economy with millions more without jobs and poverty will prevail. But on the other hand this might be what the political world want.
I am not even going to discuss some of the obvious flaws in other Departments for this document is not there to criticize in a bad way but as to be used for a tool to help in the recovery of the South African economy. I am no politician and do not intent to become one, I am merely worried that if there is not turn around soon in our economy, we might just not have an economy left to recover from soon.
My Economic Reform strategy discussed
There are several fields of interest that would need to work hand in hand with each other; otherwise there might be some delays in success. There are so many opportunities whereby both the poor people as well as Government can benefit from. My economic turn around strategy will not only provide job opportunities, but also ensure fair distribution of profit amongst the much needed lower income groups for as currently the BEE legislation only provide for a few that have had already their pound of meat. When looking at my Strategy one must keep in mind that thorough consideration and research has been done over the years in the different fields. While reading through this document, the question of relevancy of certain subjects would come to mind but looking at the broader picture one will see the advantages of the strategy complete. Firstly I will discus what Government should address and then I would discuss my proposed projects in short.
I CAN UNDER THE WATCHFULL EYE OF THE PUBLIC PROTECTOR AND THE AUDITOR GENERAL MAKE THIS STRATEGY WORK. THIS IS A CHALLENGE TO GOVERNMENT AND THE PEOPLE OF SOUTH AFRICA.
The budget upon the projects discussed would be discussed if there were interest in my projects and willingness from Government to rather be part of a solution than to be part of a problem. I can for certain say that taking in consideration two failures in Government whereby money has been wasted weather legally or illegally without long-term benefit of the poor people of South Africa, there is no excuse of consideration. Let us look at fields of interest as well as the strategy.
South African Airways
Well once again the taxpayers had to save the national carrier. We all know that a country without a National airline is seen to be a failure. Since 2010, I challenged the Various State departments with a solution to the growing debt that SAA keeps falling in and without any feedback even. Well how important does government sees the financial success of our country? Clearly not enough! Sadly spoken, the watchdogs over government (opposition political parties and public protectors) also do not think it is important enough to rather have a solution than to entertain mismanagement and gain of benefit. Well what can one expect of appointing people in management positions for being so called disadvantaged in a field that there is none or little knowledge. Where they have to decide upon resources and marketing strategies without knowing the importance and how the resources operate.
Well 4 years later and still no improvement whereby there could have been a limit placed on Sponsor ships, Corporate entertainment, Selling of access assets not utilized at market prices, sign of frequent contracts as available on an online magazine, invest in foreign low cost airlines, limitations on certain benefits on certain routes, etc. Well it is common sense that needs to be applied. I might be wrong but it is clear that although everyone is upset about the state of the situation, nobody actually cares otherwise something would have been done about the state of operations. As seen and worried about is with the non profit continuation, more of our domestic income will fly out of South Africa on SAA with a lost of Valuta. Once again I should congratulate the management of the SAA for their part in making South Africa poorer and for their contribution to our poor economy.
South African Railways
Sadly spoken with the increase of Long Distance road transport with increased damaging of roads and infra structure, I cannot see that with all the knowledge and skills the South African Railways could not find a suitable marketing strategy whereby it would draw more freight transport and passengers with relief to the already strained roads. If looked at the long distance trucking and the cost thereof as well as the long distance bus services, I can just wonder about the purpose of appointment.
I for certain can see that instead of just being there in name, the marketing strategy should be towards having the same amount of freight transported at a lesser cost in the same time. For passenger having the same distance traveled at the same time at a lesser or affordable cost. Maybe I am just pre judgemental, but in my books time is of essence and the longer it take to implement a productive transportation campaign, the more it will cost for the infra railway infra structure need constant maintenance to prevent deterioration and if no income, well I don’t need to say more.
With this said, we could look at the broader point of view for the advantages of placing emphasis upon this. The cheaper much needed commuters have to pay, the more they have for food. (Stated bluntly). The less it cost for goods to be transported, the better would the consumer index be. Not said enough; road maintenance as well as accident cost would be less to government. How difficult is it to see?
Penalties and Fines: Law enforcement
Sometimes I wonder why South Africa is so reluctant in Law enforcement and why lawmakers make it so easy to get out of responsibility and accountability. Never Less by investing in Law enforcement, the government of South Africa could increase much needed income from penalties and fines drastically from lawbreakers. On the other hand one also never hear what becomes from the fines and penalties paid. Let us take for instance the GREEN TAX legislation. How was it spending to combat climate change and global warming? Are the taxes and fines really spend on for what they are collected for or is it just another way to have additional income for some competitive social event.
As part of my economic strategy I would suggest that more be being invested in law enforcement not only to see to that there is a discipline for the laws of South Africa, but also to ensure that more people contribute financially for their wrongdoing and attitude towards legislation.
Tendering process
Government tendering processes is one of the better in Africa however it does not make provision for the small companies. Unfortunately with the current tender processes, most of the tenders are allocated to the huge companies, shifting wealth to the top group and not distributing it amongst the needed. If tendered by a huge company, provisions should be made for subcontracting to smaller companies to ensure that more people benefit from the tender. Unless Government wants to let the people sitting on pedestals stay on it for what so ever reason.
Social Grants
Lets face it, most of the people that do get social grant for childcare, unemployment and disability, do not deserve it and can still work. As Government, a system should be placed upon the limitations and regulation of childcare grants for many only have children for the grant and is not interested in finding work. Unemployment grant should be looked at for government should put measures in place whereby the actual effort of job seeking could be measured. Progress upon temporary disability grants should be monitored to prevent the over payment of the grant.
Utilizing Government resources.
If we look at the international countries, it is evident that South Africa can utilize its prison service to operate as a profitable institution. We must remember that the prison system is there for there is a debt to society that has to be paid. With taking in consideration the skills and resources, the prison system can support in the supplying and sustaining of certain products. Not only can it sustain itself, but also sell products to the South African Markets, generating a huge income. For example, in the prison system furniture for old age homes, schools, hospitals etc could be manufactured and distributed. A clear example is in America whereby authorities decided that prisoners should start earning their stay and this is where the ZIPPO I believe (under correction) had its birth.
Exploration of Minerals and Mining
I was so glad to hear that South Africa have one of the biggest oilfields under the Karoo. To my shock, it was announced that SHELL received limited exploration rights and it does not mean that the Minister will allow it to be extracted. Firstly how stupid do they think the South Africans are? What company will spend millions if not billions to explore an oilfield if they in the long run won’t benefit? Is it once again one of those cases where South African resources have been sold and the actual benefit to the country and its poverty will be less than anticipated? Could Government not subsidize a BEE company to do the exploration and mining with redistribution of funds on own soil? Almost all the other oil rich countries do the extraction themselves with huge benefit for the country economy. Promises were made about MOSSGAS and do we really have the benefit of the promises? No it is now as it was then, just a way to sell out South Africa and its economic growth potential.
My Economic Reform strategy
Firstly Government cannot say that there is no money to serve as seeding capital through repayable subsidy. The reason therefore is that if Government can spend money on the following without real benefit to the poor, then this can surely be a positive investment.
Hundreds of millions was spend on poor renovations of a private property, E-toll system, New official vehicles whereby the old ones was still serviceable, Private and limited access functions costing taxpayers Millions, Indaba’s held with including manicures etc worth hundreds of thousand rands, etc.
Well with my Economic reform strategy there would be at least job creation, sustainability through local markets and exports, distribution between the elderly and successful BEE ownership to the poorer of the poorest that one can actually say will work.
The Financing and Budget
The budget has been worked out according to estimated establishment of the projects and funding should be provided by Government on a Subsidy basis whereby in advance provision should be made that all projects has been approved. After receiving the financing, business should commence within 3 months. The projects can be seen as a 5 year strategy to be fully operational as well as profitable. This sound like being bios but to see that the purpose of the strategy is met, one cannot overlook the huge administrative challenge.
Administrative challenge
The aim to ensure financial relief to Government in social grants and ensure Black Economic Empowerment, share in the group of companies (projects) to be established would be to set available in the form of Government bonds to the elderly and the disabled. This should be SASSA connected and therefore one must set a target of profit distribution towards these individuals. For argument sake, one can work upon 30%. We must keep in mind that the corporate profit sharing should be established upon a possibility of 50% retention and 50% dividends. Thereafter 60% shares should be set available to people purchasing it on a criteria of being divided as into the BEE legislation with a criteria to be set to those that really fall under the poor of the poor. The income thereof in dividends should be negotiated for I personally think it should be divided and entrusted to be put in a retirement growth fund whereby the owner of the share/bond would be entitled to the income from the fund at retirement age providing that if the bond holder should die before payment date, that the share/bond would be bought from the estate by the fund at market price and set up to be resold at market price to people meeting the criteria. A limitation upon shares should be placed to ensure fair distribution of funds. These criteria for ownership should be executed for the SASSA connected shares as well. Income from shares sold should go back into the state account for repayment of investment.
This is a broad overview upon the suggested administrative challenge to the projects. I cannot deny that this could easily be overcome, especially for the mere fact that with the SASSA shares, the total amount payable on dividends could be paid into the SASSA account for a once off distribution amongst all. The last 10% will be a once off share distribution for the employees and directors of the group in an even way whereby the employees and directors can either decide to upon full contribution of dividends into a accredited pension fund or partial contribution with acceptance of the difference as an additional bonus.
With the above mentioned one will see that however how small, the burden upon government and the strain of survival would be elevated. Never less not even taking in account the sustainable job creations that will follow in discussion during the projects. Government would also in the long term save millions upon supporting the projects and also earn millions in taxes over a period of time. This can happen and would not cost a cent to taxpayers for after all the investment amount is repayable but in a very considered way.
Establishment of Corporation and board of directors.
Due to the fact that this strategy will consist in forms of a partnership between Government and the private sector, and it would be a public company for the aim to ensure fair distribution of ownership and wealth, the board of directors should consist of the following:
Not only should it comply to the BEE legislation but provision should be made for obvious reasons I should be the Managing Director until such time that I in free will decide to step down where after I will remain a director till my time of death. The reason therefore is to ensure that the strategy is being executed as proposed. The following should be appointed by the Ministers in portfolio to ensure that all standards and legislation been met. Directors of HRM (Appointed by the Minister of Labor), Finances (Appointed by the Minister of Finance), Sales and Marketing (Appointed by the Minister of trade and industry), Corporate development and services (Appointed by the Minister of Agriculture, fisheries and forestry). The Executive director will be appointed by myself and directors as appointed by the various Ministers. It will also be wisely to assume that the Appointed Directors by the various Ministers would be accountable for feedback and progress. Government should also accept the proposal that quarterly and yearly reports should be first approved by the Auditor General before published. Quarterly feedback should be given to the parliamentary commission. Salaries should be determined by the Minister of finance whereby for executive directors and where there after it will be determined by the board of directors for the rest of the employees. Salaries should also be seen in the range of the public sector and not private sector to prevent self-enrichment.
My Strategy
My strategy and business plan would be revealed in detail if there were a need for obvious reasons that many of my Ideas were stolen in the past and end up excluding me.
My strategy will save government Millions, have a steady income of international Valuta, create job opportunities, promote nature conservation, be part of providing needed food, etc.
One cannot say that it will not work if not tried for GIVING AWAY SOUTH AFRICA to the international community by means of “short term financial input” will at the end of day cause that South Africa would become a true 3rd world country. Maybe that is what all want.
Looking at the Governmental attitude towards possible economic reform, one must also look at the fact that it is difficult to let people in charge see beyond tomorrow and see the future as it would be. It is easy to fund this project and to give permission and I believe that if cost on things like celebrations, parties, Indaba’s, ventures, entertainment, name changes, etc could be reduced to benefit the people of South Africa, This could be funded.
Conclusion :
I might just be an ordinary guy (But so was most of the executive titleholders), but I can see where South Africa go. We are heading for financial suicide and belief me it is clear that with the current legislations and management, the poor will get poorer and unfortunately if one is not super rich, one would end up in the lower income class. Ignoring the above facts is a true reflection that Government is just a political front and clearly does not worry about the people of South Africa. Looking back to the years when there were sanctions against South Africa, the people of South Africa were better off for all in South Africa belonged to South Africans and the money spend were spend in South Africa.
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