14 May 2013

Finance & Insurance

'Dirtbin' needs a paint job

Durban's city centre has never been my favourite place; I always find my senses being thoroughly assaulted. Don't get me wrong, I grew up in Durban and still feel very precious about my home town, and I'll defend it to the summit of Tafelberg because I have always seen its potential - in my mind all it's ever needed is a fresh coat of paint.

KZN MEC Mike Mabuyakhulu sees that same potential, calling for the recently held Tourism Indaba to make Durban its home. And why not, really? In its 34 years, the conference has more often than not been held successfully in Durban. Mabuyakhulu says the province is ready "to make the necessary investment...to grow this trade show to the level where it rivals and outshines the best shows in the world."

The Cape Point Partnership's Brett Hendricks, however, sees the annual indaba as more of a roving event, commenting on Facebook: "Having a roving event that moves between major South African cities would definitely raise the bar. I'm hoping 2014 will have an added 'wow' factor."

'Wow!' is what we'll need if we're going to meet the national tourism strategy target of becoming one of the top 20 world tourist destinations by 2020, and we're on the right path - the number of tourists entering South Africa increased by 10.2% from 2011-2012, according to Stats SA.

Hosting large-scale events such as the Tourism Indaba means having to tick a lot more boxes. Clive Shelver, managing director at Film & Entertainment Underwriters, explains why it's important to have a proper risk management strategy in place.

If you're hosting an event, make sure you have it added to our recently introduced Biz Event Calendar as a Biz Featured Event. These events are featured in our daily and weekly newsletters, and are actively mentioned on our Facebook and Twitter timelines.

An event of note, the SAMAs were held this past weekend - congrats to the winners! Go paint the town red!

Sindy Peters, Group Head: Content

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Weekly top stories

Directors, managers aware of inaccuracies
[Amanda Visser] The latest fraud survey by the international professional services group Ernst & Young shows that more than 42% of board directors and senior managers are aware of some type of irregular financial reporting in their companies. Read more >>


Editorial news

Finance & Insurance
New proposals on recharacterisation of hybrid debt instruments
[Heinrich Louw] The National Treasury (Treasury) and the South African Revenue Service (SARS) recently released certain proposed limitations on excessive interest deductions for public comment. Read more >>


Insurance
Transnet face class action on pensions
Legal documents were served on Transnet and two of its funds on Wednesday (8 May) for a class action suit over pension funds, Geyser and Coetzee Attorneys said. Read more >>

TV series sponsorship: Think out of the box
[Bonnie Ramaila] I have never understood why companies should have those closing and opening billboards before, during and after a TV programme, until I saw 1st for Women's sponsorship of the M-Net series, 'Revenge'. Read more >>

Proper risk management for large-scale events
World-class acts Bon Jovi and Justin Bieber are performing two back-to-back concerts this weekend at the FNB Stadium in Soweto, following their successful shows in Cape Town. Around 200,000 spectators are expected. However, concerts of this magnitude bring their own potential hazards, and require stringent insurance cover, security measures and organisation. Read more >>


Accounting & Auditing
Labour Court ejects municipal manager
A local municipality has, for the first time, been prevented from appointing a municipal manager, by the Labour Court, on the grounds that he was not "suitable" and had failed in similar positions he had held before. Read more >>

Ministerial housing - evidence of collusion
[Linda Ensor] The investigation by public works of "prestige" projects such as the renovation of ministerial houses has been extended to Cape Town where about R100m was spent on renovating 11 ministerial houses‚ Public Works Minister Thulas Nxesi said on Tuesday (7 May). Read more >>

Directors, managers aware of inaccuracies
[Amanda Visser] The latest fraud survey by the international professional services group Ernst & Young shows that more than 42% of board directors and senior managers are aware of some type of irregular financial reporting in their companies. Read more >>


Banking
Virtual pocket money management tool from Nedbank
Nedbank has launched the first allowance/pocket money management tool, MyMoneyMap, for families. Secure and easy to use, it empowers kids, with their parents' help, to build financial fitness from an early age. It enables parents to track the allowance given to their kids and the kids to track their funds. Read more >>

E-banking survey reveals surge in mobile banking
[Issued by Columinate] Online research specialist Columinate has released the results of the second annual Internet Banking SITEisfaction survey, one of the most comprehensive reports on customers' usage and perceptions of e-banking in South Africa. Read more >>  visit press office >>


Finance, Accounting & Banking
Africa must reduce infrastructure delays
[Linda Ensor] The classic public-private partnerships both in SA and Africa are plagued by delays‚ with the projects sometimes taking seven years to get going‚ Finance Minister Pravin Gordhan said on last week at a media conference on accelerating infrastructure investment in Africa‚ at the World Economic Forum on Africa. Read more >>

Fraudulent claims plague medical aids
In March, The Times reported that corrupt doctors, pharmacists, physiotherapists, radiologists and pathologists were ripping off medical schemes to the extent of about R22bn a year. The sector disputes the figure, saying correct estimates point to half that amount. Read more >>

Creating business opportunities for Africa's poor
Involving low-income communities in markets and businesses across Africa is essential for economic growth to translate into sustainable development, according to a United Nations Development Programme (UNDP) report released on Friday, 10 May 2013. Read more >>

Consumers worried about money
[Ntsakisi Maswanganyi] Consumers continued to feel financially exposed in the first quarter of this year amid the rising cost of living and inflation‚ the latest Consumer Financial Vulnerability Index released on Tuesday (7 May) showed. The index is compiled by Unisa's Bureau of Market Research (BMR) and sponsored by MBD Credit Solutions. Read more >>


Financial Services
Online services increase house sales
Property purchasing in South Africa is being driven by a younger generation that relies on the Internet for information, bond originator ooba said on Monday (13 May). Read more >>

Striata UK announces PCI Compliance
[Issued by Striata SA] Striata has announced its certification of the Payment Card Industry Data Security Standard (PCI-DSS), for its Grade 1 infrastructure in the UK. Read more >>  visit press office >>


Investment Banking
Funding for Durban dig-out port uncertain
There seems little doubt that despite questions and some objections, the proposed new dig-out port on the site of the old Durban International airport will go ahead. Exploratory drilling on the site by Transnet is already under way - what it calls early research - into the geotechnical composition of the soil. Read more >>

Local focus for wind, solar projects
[Monde Maoto] Constant emphasis will be sought for local companies to participate in the local procurement and supply of components in the remaining rounds of government's renewable energy projects‚ says Energy Minister Dipuo Peters. Read more >>

Textainer lowers its borrowing costs
Logistics company Trencor said on Wednesday (8 May) that its 48.5% held subsidiary Textainer‚ which operates the world's largest fleet of containers‚ was able to extend the maturity and achieve a favourable repricing of its US$1.2bn financing facility. Read more >>

Initiative teaches buoyancy ahead of investment tsunami
A tsunami of investment is heading for Africa and business needs to be ready to capitalize on this in a sustainable way. Read more >>


Investment Management
Time to unlock Africa's travel potential
The South African Tourism Indaba should expand its platform by attracting even more exhibitors and buyers from the African continent, Tourism Minister Marthinus Van Schalkwyk said on Sunday (12 May). Read more >>

Cullinan earnings climb by 25.2%
Tourism and leisure group Cullinan last week reported a 25.2% increase in headline earnings from R21.7m to R27.2m for the six months to March on the back of a 20% increase in sales. Read more >>

Court rules in favour of Seardel
A Cape Town property valued at R38.7m is to be transferred to clothing and textile manufacturer Seardel after leave to appeal by third parties opposing the transfer was dismissed with costs. Read more >>

Fountainhead's distribution drops 6.8%
Fountainhead Property Trust's distribution dropped to 26.11c per unit for the six months to March‚ down 6.8% from the similar period last year. Read more >>

Arrowhead's distribution up 13.6%
Arrowhead Properties has reported 13.6% distribution growth for the quarter ended March to 28.04c per combined A and B unit. Read more >>

What to consider before investing your money
[Kelly Marsh] If you have good amount of savings, you would often think of earning something from it. This can mostly only be possible when you invest your money in an appropriate company. Whether you invest in a family business or some other place to make profits, make sure you do some research before you take the plunge. Read more >>

Cote D'Ivoire to evaluate MTN licence
MTN's shares was down as much as 2% on Tuesday (7 May) after Ivory Coast's government named it as one of five companies that risked losing their operating licences because of poor levels of service. Read more >>

Sasol heads for the Competition Tribunal
Sasol will appear before the Competition Tribunal from Monday (13 May) on allegations that the company charged excessive prices for materials used in the production of plastics. Read more >>


Taxation
State should own 50% of all Africa's mines
[Paul Vecchiatto] African governments should own at least a 50% of any new mining venture in order to ensure that the country gets more of the revenue from mining projects. Read more >>

Mpisane 'punished' for 'honesty'
Durban businesswoman Shauwn Mpisane was punished for making a voluntary disclosure to the SA Revenue Service (SARS), the Durban Regional Court heard on Monday (6 May). Read more >>


International
KFC sales plummet on bird flu fears
SHANGHAI CHINA: Sales of fast food KFC in China slumped an estimated 36% in April, according to parent Yum! Brands, as consumers shunned chicken due to the H7N9 bird flu outbreak in humans. Read more >>

Space flight no risk to environment
SINGAPORE, MALAYSIA: British billionaire Richard Branson said on Monday (13 May) that rocket-powered space tourism flights by his firm Virgin Galactic would have only a minor impact on climate change. Read more >>

Dell's offer an "insult" claims Icahn
NEW YORK, USA: Corporate raider Carl Icahn and other investors made a new offer last week for US computer giant Dell, calling a planned private equity buyout led by company founder Michael Dell a "giveaway". Read more >>

Mittal asks Europe to cut energy prices
LUXEMBOURG: The head of steel manufacturing company ArcelorMittal on Wednesday (8 May) called on European decision-makers to cut energy prices to make the steel sector more competitive as the group faces another tough year owing to slumping demand for the material. Read more >>

Internet threatened says Dotcom's lawyers
WELLINGTON NEW ZEALAND: Lawyers for Megaupload founder Kim Dotcom accused the US government on Wednesday (8 May) of launching a flawed prosecution against their client with "frightening" implications for all Internet users. Read more >>

Tesla's cars make modest profits
SAN FRANCISCO - Tesla Motors said on Wednesday it posted its first-ever quarterly profit as the electric carmaker beat its own forecasts and surprised market analysts. Read more >>

General Motors is building a plant in China
SHANGHAI, CHINA: Chinese authorities have approved a US$1.3bn General Motors plan to make luxury Cadillac cars, the US auto giant said on Tuesday (7 May) as it seeks to boost sales of its premium brand cars in the world's biggest vehicle market. Read more >>

More International...


Government
Stats SA holds out its begging bowl
Statistics SA (Stats SA) needs about R100m to ensure that SA's statistics keep abreast with international best practice, but it is in danger of slipping behind, because there are not enough funds for it to implement its updating programmes. Read more >>

Forget management, go for cadre deployment
Cadre deployment to parastatal boards is acceptable if the individuals concerned are skilled enough for the position, Public Enterprises Minister Malusi Gigaba said on Wednesday, 8 May. Read more >>

Jobs lost, jobs found - what's true?
[Paul Vecchiatto] Economic Development Minister Ebrahim Patel says it is government's economic policy to create jobs and that the country has experienced a net gain of 199‚000 jobs over the past year. This follows Statistics SA's announcement that 100,000 more people where unemployed in the first quarter of this year. Read more >>

Changes to SA's immigration policy
[Wyndham Hartley] Home Affairs Minister Naledi Pandor has promised sweeping changes to South Africa's immigration regime to make it easier for foreign businesses and investors to come to the country and to improve competitiveness in the global skills market. Read more >>

More Government news...


Jobs offered
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BI Business Analyst - Southern Suburbs - Cape
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    2013 Biz Trends Report

    93 pages
    49 contributors
    41 contributions

    New people on biz
    Thembekile Buswana
    FINANCIAL PLANNER at Momentum
    Lerato Mofokeng
    Business Development Coordinator at Mutual & Federal
    Ramapati Singhania
    CEO /Owner at Varal
    Joshua Oliver
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    Internal Audit Consultant at HTB Consulting

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