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South Africa is undergoing a terrible uncertainty in terms of political and regulatory environments that could fuel the restructuring trend in the embattled mining industry, global ratings agency Moody’s Investors’ service warned yesterday. Douglas Rowlings, Moody’s Vice President, a senior analyst and author of a report titled “restructuring of South African operations is credit positive for gold, platinum group metals (PMG) miners”, said that South Africa’s appeal to mining companies had continued to decline.
“Gold and PGM miners will limit their investment in South African mines to sustaining capital. Without the substantial expansionary investment required to reconfigure loss-making mining-operations and making them profitable, mines will either be restructured or closed,” Rowlings said.
The report comes days after Chamber of Mines chief executive Roger Baxter told 1000 delegates at the Africa Down Under mining conference in Perth, Australia, that governance and policy challenges in South Africa had eroded business and investor confidence.
So the companies involved in the mining industry are moving away from South Africa to look for better markets. The threat of either “restructuring” or closing mines means that workers could be laid off. At the moment with the way the economy is going, more unemployment is the last thing we want.
We have only the Administration of President Jacob Zuma and his policies to thank for our current financial rating as Junk Status. It should come as no surprise that investors and international businesses have no more confidence in how we manage our affairs.
The message here should be regardless of what political scandal is going on or who is involved in “state capture”, or what the Public Protector reveals in her reports, no one has the right to interfere with the management of the treasury department. You can meddle with anything else but try turning the position of Finance Minister into a game of musical political chairs and see who you convince to invest in the country.
Meanwhile South African businesses have come under pressure to cut ties with KPMG over the Auditor’s work for companies owned by the controversial Gupta family, as the fall out deepens from a fiasco concerning the funding of a racism campaign concerning “White Monopoly Capital” that caused the implosion of PR Bell Pottinger Firm.
Save South Africa, a civil society group that helped expose Bell Pottinger’s ethical lapses in the country, called on Blue-Chip names including the Johannesburg Stock Exchange and the Country’s biggest banks to drop the auditor over its work for the Guptas.
“KPMG could be the next Bell Pottinger,” the group said, accusing the auditor of playing a “central role in facilitating state capture” by the Guptas.
Save South Africa has alleged the Guptas used their friendship with Jacob Zuma, the country’s president, to manipulate ministerial appointments and state contracts in favor of their businesses.
So now the Guptas are losing the influence they had over the stock market. Also foreign based firms such as Bell Pottinger and KPMG are accused by the auditor of playing a “central role in facilitating state capture” which means their high level reputations have been shattered by Journalists and the press.
The cause of racism has been one that has led to divisions in our country and more influence for irrational forces. So after these reputable foreign firms have been confined to the dust bin of history, perhaps the Zuma presidency will suffer the same fate for its role in spreading the discord known as white monopoly capital.
SouthAfrican businesses have come under pressure to cut ties with KPMG over the auditor’s work for companies owned by the controversial Gupta family, as the …
Douglas Rowlings, Moody’s vice-president, a senior analyst and author of a report titled “Restructuring of SouthAfrican operations is credit positive for gold, …