23 Jul 2013

Finance & Insurance

We're living in taxing times

I suppose it's good that Finance Minister Pravin Gordhan has initiated a far-reaching and fundamental review of SA's tax system. It is going to look at a number of issues around taxation. A major issue is simply that there is a relatively small tax base and many might reckon that tax base is being overtaxed.

Allied to any revisions in the tax regime, must come a genuine, no-hold-barred, no-sacred-cows approach to combating corruption, mismanagement and wasteful spending.

The average taxpayer understands the need for taxes, but when we see our hard-earned cash being flushed down the toilet or stolen, instead of being used properly, forgive us for becoming a little miffed.

Time is money, so it would be as well for those charged with issuing of radio licences to up their game where necessary and help local businesses. It seems license delays in SA are prompting communications companies to look elsewhere. That's a gain for "elsewhere" and a loss for South Africa.

Mandela Day has come... but there's no reason why it should have gone. Instead of making it a day a year, we could all try to make Mandela Day last 365 days. And there are people doing that... take a look at our CSI portal and see where you too can do your bit.

Finally, Bizcommunity and Recruitgroup have launched the BizCareers Column. On offer is sound recruitment advice for both job- and candidate-seekers.

Read and learn - and submit any questions you might have to careerquestions@bizcommunity.com.

Rod Baker, Content Director

Submit your company news to financenews@bizcommunity.com. Exclusive contributions may be sent to contributors-finance@bizcommunity.com.

Weekly top stories

Africa: hard work - but worth it
[Kelly Meredith] With the world looking to Africa as the next expansion frontier, it's all too easy for companies to rush in unprepared. But unless they make an effort to understand business in Africa, they are likely to fail. Read more >>
Global and South African economic outlook
[Craig Pheiffer]
Bizcommunity, Recruitgroup launch BizCareers Column
[Issued by Bizcommunity.com]

Finance & Insurance
FinanceTech business-networking event for financial IT teams
FinanceTech, a business-networking event for IT teams from the financial sector and technological suppliers to the industry, will be run at the Vineyard Hotel and Spa, Cape Town, 9-10 October 2013. Read more >>



Global and South African economic outlook
[Craig Pheiffer] Revisions to global growth expectations for both 2013 and 2014 have been to the downside in recent months as economic data releases have generally printed at or below expectations. In the multi-speed economy that is the world economy, some news has been positive, but in aggregate, global demand has moved along at a pedestrian pace. Read more >>

AfDB's Open Data Platform now covers all of Africa
The African Development Bank's Open Data Platform is now operational for the entire African continent. Read more >>

Panel discusses South Africa's present and future prospects
On 11 July 2013, the JSE hosted the second discussion forum [THE INSIDERS] held by Glacier by Sanlam and TIME magazine. The panel, which debated, inter alia, South Africa's economy, growth prospects and international competitiveness, consisted of former DA leader Tony Leon, Cannon Asset Managers' chief investment officer Adrian Saville and Public Investment Corporation CEO Elias Masilela. Read more >>

Business Partners offers savings tips for SMEs
South African small and medium enterprises (SMEs) continue to find relevance in the statement that 'cash is king', especially in the current economic climate. Read more >>

Discussion document addresses retirement reform
Last week, the fifth and final discussion document on the South African retirement industry was released. This document is likely to cause a stir in the industry, which, after extensive stakeholder consultation, is expected to lead to draft legislation going to parliament by next year. Read more >>

Bizcommunity, Recruitgroup launch BizCareers Column
[Issued by Bizcommunity.com] In collaboration with Juliette Attwell of the Recruitgroup, Bizcommunity.com is launching a regular BizCareers Column that will offer sound recruitment advice for both job- and candidate-seekers. Read more >>  visit press office >>


Insurance
Filling the holes
[Andile Makholwa] While government stalls in closing gaps in medical aid benefits, consumers are under pressure from having to take out additional cover. Read more >>



Pension charges need to be cut
Retirement fund administrators and asset managers live under the threat of a kind of stealthy nationalisation. If they do not conform to the National Treasury's suggestions, they face a compulsory national savings fund - leaving private-sector funds as no more than top-up savings for the rich. Read more >>

HIV-positive people get life assurance
Sanlam is offering what it calls "normal" health insurance cover to HIV-positive people. The cover will not be cancelled when HIV-positive people become sick or develop full-blown Aids. Read more >>

Lion of Africa Insurance's credit ratings stable
According to an announcement made by Lion of Africa Insurance on 16 July 2013, Standard & Poor's has affirmed that the company's ratings continue to be stable. The company has scored a credit rating of 'zaA' and financial strength rating of 'BB+'. For the next two years, the company should also be able to maintain its capital adequacy above the 'BBB' level. Read more >>

Subrogation may allow insurers to claim under the CPA
There is a growing tendency on the part of insurers to exercise their rights under the doctrine of subrogation, in terms of which they attempt to recover funds paid to an insurer from third-party wrongdoers. Read more >>


Accounting & Auditing
Nombembe's successor sought
Parliament should be able to hire a new auditor-general by September. This is the view of Thaba Mufamadi, the newly elected chairman of the ad-hoc committee on the appointment of the auditor-general. Read more >>


Banking
Rand slips as euro softens
[Helmo Preuss] The rand slipped in early trade on Thursday (18 July) after the euro soften and dealers say they expect a quiet day until the Monetary Policy Committee (MPC) statement shortly after 3pm. Read more >>


Credit Services
Golding remains optimistic after repo rate decision
From a national property perspective, Pam Golding Properties remains optimistic, as housing sales by the group have continued to increase steadily year on year, with monthly sales averaging at over R1 billion. This follows the decision by the Monetary Policy Committee (MPC) meeting to keep the repo rate stable, announced yesterday 18 July 2013. Read more >>

Home loan deposits can lead to savings - Kellerman
Ewald Kellerman, head of sales at FNB Home Loans, recommends that prospective home owners save for a deposit. If they do this, they will not only be more likely to obtain a loan, but will also be able to obtain a better interest rate, and will thereby save a considerable amount over the term of their bond. Read more >>


Finance, Accounting & Banking
Top financial journalists acknowledged
The Sanlam Journalist of the Year awards were announced on 18 July 2013, with Jan de Lange of Sake24 scooping the 2012 Sanlam Financial Journalist of the Year and the Markets and Companies category. Read more >>

Rand stays firm in morning trade
[Helmo Preuss] The rand was firm in early trade on Monday (22 July) due to a softer dollar. "We and most other currencies are stronger against the dollar. We need to end below R9.78 before we can say we are establishing a new range‚" a local foreign exchange trader said. Read more >>

European summer keeps rand in doldrums
[Helmo Preuss] The rand was flat in early trade on Friday (19 July) as the Northern hemisphere summer holidays robbed the market of liquidity and direction. Read more >>

Rand remains flat against the dollar
[Helmo Preuss] The rand was little changed from overnight levels in early trade on Wednesday (17 July) as it consolidated recent gains. Dealers said no news was being treated as good news. Read more >>


Investment Banking
Tower gets solid capital support
[Nick Hedley] Amid a volatile and difficult period in the listed property market, Tower Property Fund received good investor support for its capital raising prior to the fund's listing on the JSE last week, the fund's chief executive Marc Edwards says. Read more >>

Absa's NewGold ETF to list on Stock Exchange of Mauritius
On 18 July 2013, it was announced by the corporate and investment banking division of Absa Bank (Absa), a member of Barclays, that the NewGold exchange traded fund (ETF) is set for listing on the Stock Exchange of Mauritius (SEM) on 26 July 2013. This will be the fifth exchange on which NewGold is listed, following on from South Africa, Botswana, Nigeria and Ghana. Read more >>


Investment Management
JSE listing for Redefine International
Redefine International announced on Thursday (18 July) it has received approval from the South African Reserve Bank (SARB) to list on the Johannesburg Stock Exchange‚ subject to certain conditions. Read more >>

Grindrod offers to buy Racec
Transport and Logistics group Grindrod has offered to buy the shares of Racec Group except the 25.1% interest held by Solethu Civils. Read more >>

Woolies sales up 23%
[Zeenat Moorad] Woolworths Holdings reported its total sales increased by 23% for the full-year, almost double the 11.8% growth recorded in the previous fiscal year. Read more >>

Vodacom's quarterly revenue of R17,5bn
Mobile services group Vodacom on Thursday (18 July) reported a 3% rise in group revenue to R17.5bn for the June quarter. Read more >>

Anglo reports mixed results for June
[Allan Seccombe] Anglo American reported a mixed set of production results for the June quarter‚ with declines in iron ore‚ metallurgical and thermal coal as well as nickel. Read more >>

Retail shares fall after dull Shoprite results
[Zeenat Moorad] Shares of SA's retailers slumped on Wednesday (17 July), taking their cue from a disappointing trading update from Shoprite Holdings, which underlined the extent of the consumer spending slowdown in Africa's biggest economy. Read more >>

Strong year for BHP Billiton
[Ray Faure] Global resources company BHP Billiton on Wednesday (17 July) reported a strong period of production for the 12 months ended June with two of its major assets‚ Western Australia Iron ore and Escondida exceeding production forecasts and annual records achieved across seven operations and five commodities. Read more >>

Gigaba's warning over China's investment in Africa
[Nicky Smith] Public Enterprises Minister Malusi Gigaba has called for greater scrutiny of funding that comes from Brics countries such as China when it comes to infrastructure investment in Africa. Read more >>

Datatec forecast remains unchanged
International Information and communications technology group Datatec said on Wednesday (17 July) that overall group revenues and earnings for the period March to June this year were similar to those for the same four months last year but underlying earnings‚ basic earnings and headline earnings per share were all slightly lower. Read more >>

Blue-chip tenants help property companies
[Nick Hedley] The performance of commercial properties in SA is highly dependent on the size and quality of tenants, given pedestrian economic growth and cash-strapped consumers, according to Paragon Lending Solutions' chief executive Gary Palmer. Read more >>

Property returns are stable again
[Nick Hedley] Following the recent price correction in the listed property sector, valuations are now at levels more supportive of sustainable listed property returns in the future, according to Investec Asset Management portfolio manager Neil Stuart-Findlay. Read more >>


Taxation
Extensive tax review underway
[Linda Ensor] Finance Minister Pravin Gordhan has initiated a far-reaching and fundamental review of SA's tax system which will be undertaken by a team of tax experts led by Judge Dennis Davis. Read more >>

Tax committee to advise on policy
A committee that will examine how South Africa's tax policies contribute to growth will be chaired by Judge Dennis Davis, it was announced on Wednesday (17 July). Read more >>

SARS implements proactive transaction monitoring with Oversight
The South African Revenue Service (SARS) has become the first local public sector institution to implement Oversight, a leading provider of solutions for monitoring transactions in the procurement system in real time. The organisation will be using Oversight to improve its existing internal control mechanisms further. Read more >>


International

Dell postpones go-private vote until 24 July
NEW YORK CITY, USA: Dell postponed a shareholder vote due on Thursday, 18 July, on its US$24.4bn go-private plan led by founder Michael Dell, amid reports that several major investors opposed the deal. Read more >>

Yahoo!'s profits rise 46% to US$331m
SAN FRANCISCO, USA: Yahoo! said on Tuesday (16 July) its second-quarter profit rose sharply from a year ago, but revenues lagged, offering a mixed picture for chief executive Marissa Mayer's turnaround efforts. Read more >>


More International


Jobs offered

Accountant - City of Cape Town Metro
Read more >>

Accounts Assistant - Century City - Cape Town
Read more >>


Financial Manager - Cape Town



New events to diarise

Management, Accounts Receivable & Accounts Payable
Inkezo HR Solutions - 21 Aug 2013 to 23 Aug 2013 Midrand
The 6th Consumer Credit Southern Africa Conference
Trade Conferences International - 18 Sep 2013 to 19 Sep 2013 Johannesburg


Upcoming events

Medical Aid and Insurance Conference 2013
Trade Conferences International - 24 Jul 2013 to 25 Jul 2013 Johannesburg
IT Auditing
Techno Hype ICT Pty Ltd - 25 Jul 2013 to 26 Jul 2013 Johannesburg
Rands and Sense
Inspiring Women Soweto - 26 Jul 2013 Johannesburg
World-renowned business leadership guru in Durban
events@durbanchamber.co.za - 27 Jul 2013 Durban
UCT Bookkeeping short course
GetSmarter - 29 Jul 2013 Countrywide


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