Rational Perspective

Alec Hogg spent the week in Cape Town attending the WEF Africa summit, which was disrupted by violent xenophobic riots in Johannesburg and anti-violence protests in Cape Town. In this episode, Alec and Felicity Duncan discuss the WEF meeting and the impact that the social unrest in South Africa had on attendees. They look at what South Africa learned at the meeting and the prospects for the African continent. They also talk about Cyril Ramaphosa’s leadership and his Cabinet – and what an economy-class flight can tell us about the quality of our leadership. See omnystudio.com/listener for privacy information.

In this week's Nutshell: Xenophobia and femicide protests dampened President Cyril Ramaphosa investment drive at the World Economic Forum in Africa which is taking place in Cape Town but it gave Alec Hogg the opportunity to put questions from the Biznews community to some of the business leaders at the forum. Deloitte's Martyn Davies said the protests outside the conference centre were a sign of people wanting to see action in Southern Africa. There was widespread support among business leaders attending the WEF including that of Absa's Jeff Gable's for Finance Minister Tito Mboweni's economic turnaround plan. The Gordon Institute of Business founder, Nick Binedell probes the issues of robots and jobs, education policy and the intended National Health Insurance. PWC's African Head Dion Shango sees opportunities in population growth, not only challenges. We also tap into the issue of psychopaths and business with prof Heidi Maibom from the University of Cincinatti and get a preview of the annual Apple reveal.

Some of the best stories have a clear villain and a clear hero – that’s why people love Star Wars. But real life is sometimes more like Game of Thrones, with no heroes, no villains, just complex human beings making the decisions that seem best to them. We were reminded of that this week as Alec Hogg’s interviews with Jared Watson and Bernard Mostert shone some interesting new light on Bosasa’s Gavin Watson and Steinhoff’s Marcus Jooste. While both men must, ultimately, be convicted or exonerated – not necessarily in the courts, but at least in our minds – based on material evidence, testimony from those who knew them paints different portraits and gives different perspectives. As Alec Hogg and Felicity Duncan discuss this week, it’s a good reminder of the importance of seeking balance, especially in "he said, he said" situations where people are condemned based on witness testimony and little else. See omnystudio.com/listener for privacy information.

This week in Nutshell:  The mystery surrounding Bosasa CEO, Gavin Watson's death deepens with Judge Zondo revealing that he had asked Watson for an affidavit, as his nephew Jared speaks to Alec Hogg about his role in helping Gavin. Bernard Mostert talks about the decision of his CEO Braam van Huyssteen to forgive Markus Jooste and their quest to get Tekkie Town back. Dawn Ridler gives advice on how to grow your wealth with ETF's, while Candice Paine lifts the lid on loan sharks. And Allan Knott-Craig explains why he has adopted the attitude of "Don't worry, be happy" that got so many from the Biznews community talking. - Linda van Tilburg See omnystudio.com/listener for privacy information.

A cracking episode of Rational Radio this week featuring interviews, in order of appearance: Tech entrepreneur Alan Knott-Craig gives us the back story to his well-read piece on why he has no intention of joining those on SA's emigration bus. Independent financial advisor Candice Paine makes her first of what we hope are many appearances answering a tough financial problem being faced by a member of the Biznews Community. Chartered accountant Jared Watson, who spent months helping put together a 400 page submission that his now late uncle Gavin, Bosasa CEO, was to hand into the SARS tax inquiry on his scheduled appearance today.   SA's favourite market commentator David Shapiro takes a deep dive into an analysts report which criticises Discovery's accounting policies; with commentary on two other newsmakers - Sasol and Naspers. A fascinating interview with former Tekkie Town CEO Bernard Mostert on how he and founder Braam van Huyssteen had their R3.3bn business stolen by Steinhoff, which has adopted a "Stalin

This week we have something a little different for you – the opportunity to listen in on a vigorous, off-the-cuff, and unscripted debate between Alec Hogg and Felicity Duncan over the GG Alcock article on the informal economy. It’s a long argument, but an interesting one, as Alec and Felicity debate the role that the informal economy can play in a developing South Africa and address bigger questions about the changing world of work and the future of the economy. See omnystudio.com/listener for privacy information.

In this week’s Nutshell, there is a critical worldview of Eskom’s finances from Nick Smith-Saville from Debtwire. David Shapiro invokes Warren Buffet’s analogy of a cockroach as he examines companies in trouble, while the author of the Bosasa Billions, James Styan gives us more information of his meeting with Angelo Agrizzi. We examine GG Alcock's unemployment figures and view that “the townships are full of entrepreneurs.” We also feature construction company WBHO’s outgoing chair Mike Wylie who gives us the five characteristics he looks for in managers and billionaire developer Vivian Reddy is enthused by his Umhlanga Mall where construction will soon be restarted.   See omnystudio.com/listener for privacy information.

In this producer's cut edition of this week's Rational Radio show in order of appearance:     Nick Smith-Saville of Debtwire (London) on Eskom - debt, recovery prospects and tax burden. Ram Ottapathu, founder of retailer Choppies, who has been accused of using the now suspended JSE-listed company's money to buy shares for himself in a private business Mike Wylie, outgoing chairman of WBHO on how the once tiny company has grown to be the last major construction business still standing in SA - the secret sauce (hint: five qualities they look for in people) David Shapiro on Markets, as always and casting his eye at Discovery, Aspen, Sasol and other fallen angels... today.... GG Alcock, following up on his excellent article on Biznews which explained why SA unemployment is more like 12% than 29% - it's the informal sector... And James Styan, author of the new book The Bosasa Billions which has sold out of its first print run within a few days of it being on the shelves. See omnystudio.com/listener for privacy i

On August 16, Isipingo-based shoemaking entrepreneur Rajeev Patundeen turned 50. As part of the celebrations, he invited 70 friends, family and business associates for lunch - and asked Biznews founder Alec Hogg to join them at a restaurant in Durban to explain why, at a time when gloom is pervasive, he is so positive about South Africa's future. Here's the recording of Hogg's address, one based on underlying realities facts lost in the noise dominating discourse in the young democracy. See omnystudio.com/listener for privacy information.

Having been raised in the province, trips to KwaZulu-Natal are always an occasion for me - a time to catch up with old friends, meet new ones and absorb the latest news. During a visit at the end of July, I noticed a number of cranes in the centre of Umhlanga. On inquiring, a story emerged that the construction of a massive mixed use development had been stalled for so long that the corrosive effects of the sea air meant the entire structure might need to be demolished. I passed on the scuttlebutt during our July 27 episode of From The Editor’s Desk with my colleague Felicity Duncan. On Friday, at the invitation of Vivian Reddy, the central character in the R3.4bn Oceans development, I heard the real story. And got a lot more than bargained for. It provided a rare opportunity to ping tough questions at the media-shy billionaire who worked his way up from poverty to owning the largest electrical contracting business on the African continent. And from his responses, was left with the impression that the tall

On 27 July, Alec Hogg and Felicity Duncan discussed the scuttlebutt about a commercial development in KwaZulu-Natal run by entrepreneur Vivian Reddy. Word on the street was that all wasn’t as it seems and that the deal was smelly. But after Alec sat down with Reddy and got the details, a different picture has emerged. Reddy has been working hard to make a success of the project in the face of a run of bad luck, and if he succeeds, the people of Umhlanga will have reason to say a big thank you. In this episode, Alec and Felicity discuss his conversation with Vivian Reddy. They also talk about the importance of entrepreneurship and the reality of immigration. See omnystudio.com/listener for privacy information.

This week in Nutshell: Ideology including land expropriation and a national health service looms over the South African economy with a warning from Bloomberg that President Ramaphosa's left-wing alliance members are hampering reform. Expropriation without compensation is reaching its last phase; the Institute for Race Relations' Terence Corrigan explains why he thinks it may be opening the door to amending other laws with a simple majority. The bill providing for National Health Insurance is scrutinised and Dawn Ridler gives insight on steps to take to mitigate its damaging effect. The NHI ravaged shares in medical service companies with Discovery bearing the brunt. Analyst David Shapiro suspects more may lie behind the large drops. Steinhoff CEO Louis du Preez lifts the lid - a little - on what is going on in the company in the aftermath of large scale corruption. And Wilhelm Hertzog from Rozendal partners unpacks what it all means. See omnystudio.com/listener for privacy information.

In this episode of Rational Radio the guests are: Terence Corrigan of the IRR on the basics of why Expropriation Without Compensation will be an economic disaster; Econometrix's Azar Jammine explains why emigration from SA is picking up and what it will mean for the country's already small personal income tax base; Rhanzo Mukansi of Futuregrowth looks at what a world of negative bond yields (Germany is there, US following) tells us about the state of the world; Money manager Wilhelm Hertzog reports back from the Steinhoff Investor Presentation, explaining why buying the JSE-listed shares is a "coin toss"; David Shapiro on Discovery's R15bn financial "hole" that isn't, but why he is still not buying the stock at its current bargain basement price; ex-Sunday Times journalist Malcolm Rees explains why he made a public apology to former SARS investigations chief Johann van Loggerenberg.  See omnystudio.com/listener for privacy information.

The bad behaviour of a group of powerful and wealthy men known as the Stellenbosch Mafia makes for exciting reading. It also highlights how far South African society has come from the bad old days. Historically, South Africa was an opaque and shadowy place, in which the powerful and the wealthy operated with impunity. But the last decade has seen South Africa shrug off its authoritarian legacy and embrace the democratic norms of openness and transparency. A library-full of tell-books like The Stellenbosch Mafia, Tobacco Wars, The President’s Keepers, How to Steal a Country, and Rogue have been published, detailing malfeasance in the halls of political and economic power. More and more, the powerful have nowhere to hide in sunny SA, and that’s a very good thing. In this episode, Alec Hogg and Felicity Duncan discuss The Stellenbosch Mafia and the fall of Hogan Lovell’s, exploring how whistle-blowers’ and journalists’ actions have helped us see the light on these shadowy actors. On a lighter note, they also dis

We look at a summary of the interviews featured on Biznews this week. In the spotlight are: Pieter du Toit, the author of theThe Stellenbosch Mafia, provides interesting insights with his interviews with Johan Rupert and former Steinhoff CEO Markus Jooste; Forensic investigator Paul O'Sullivan says he won't rest until law firms and the companies that helped state capture come clean; Paul Hoffman from Accountability Now, says Parliament should hang its head in shame that they are allowing the Public Protector, Busi Mkhwebane to continue; CemAir's Miles van der Molen, a the victim of SA Express; and Amanda Maidman, an ice cream entrepreneur from Kwazulu-Natal who not only tries to perfect fabulous flavours; is also a firm supporter of Work4ALiving. See omnystudio.com/listener for privacy information.

In this edition of Rational Radio: Paul Hoffman of Accountability Now who has fired two three more salvos at the embattled Public Protector who, in his words, has five fires burning under her bum....... it was a criminal charge laid by Hoffman which has led to Busiswe Mkhwebane being investigated by the Hawks. The advocate says she faces a stiff jail sentence for perjury.  Miles van der Molen founder and CEO of Cemair is an entrepreneur after all of our hearts; his 20 aircraft business which flies to smaller centres like Hoedspruit, Plett, Sishen and Richards Bay was almost put out of business by an illegal grounding order (the courts have ruled it such) by the Civil Aviation Authority - and is dragging its feet on allowing the airline back into the skies. As if that's not enough, his competitor SA Express has been predatory pricing against  Cemair - an airline heavily subsidised by the State, having received R1.5bn in the past year according to the Free Market Foundation.... Paul O'Sullivan who is delighte

The long and ugly story of state capture has been filled with competing narratives – a kind of giant game of he said/she said/they said/he said. Over the last year, the testimony of Angelo Agrizzi – who has claimed that a near-death experience convinced him to speak out on his role and the role of others in state capture – held the nation spellbound at the Zondo inquiry. But Agrizzi’s account of what happened is, after all, only one side of the story. In this episode, Alec Hogg reflects on why Biznews got interesting in Agrizzi and how the story looks one year later. He discusses his interview with a member of the state-capture-implicated Watson clan, Valence Watson, and what light it sheds on the ongoing investigations into corruption and mismanagement in SA. Felicity Duncan and Alec also look at the bad behaviour of big tobacco companies and how large businesses worldwide abuse their power to enrich themselves. See omnystudio.com/listener for privacy information.

This is a weekly wrap of some of the interviews featured on Biznews. In the first edition we focus on: The revelations of Johann van Loggerenberg on the tobacco industry wars with SARS; Nedbank lay-offs with some insight into the Old Mutual-Peter Moyo stand-of; The prospects of Portugal as a residential property investment destination; The impact of electrical vehicle on the mining industry; and Efforts to bring business and the government closer together. See omnystudio.com/listener for privacy information.

I last saw Valence Watson more than a decade ago when acting as peacemaker in a meeting between my former colleague, the late Barry Sergeant, and a group of BEE investors in the now de-listed gold company Simmer and Jack. After that meeting, the great investigative journalist spent time getting to know Valence and his brothers, the now apparently infamous Watson clan from the Eastern Cape. It’s instructive that Barry's initial hostility and deep scepticism went full circle – first in the story that I was mediating over, and, later, on a broader scale. In his excellent book about whistleblower Kevin Wakeford who exposed how Deutsche Bank trashed the South African Rand, Barry wrote warmly about the Watsons. I knew the uniquely talented Sergeant literally from the day he entered journalism in the mid 1980s. We worked closely for years and I remain in awe of this trained advocate’s ability to dispense with the fiction and question perceived facts.  There is no doubt in my mind that were Barry alive, he’d be p

Here's the Producer's Cut of this week's show featuring: Gavin Montgomery of WoodMcKenzie who shares his insights into the way electric vehicles will take over from internal combustion engines - and how that will impact the price of metals like nickel, cobalt and lithium. Kokkie Kooyman of Denker Capital, a global expert on financial services, applies his mind to Nedbank's retrenchment of 1 500 staff and its travails with the 20% stake in turbulent Ecobank. Nick Binedell, former dean at GIBS and a key player in the Public Private Growth Initiative shares some good news on its progress - and how South Africa has imported a formula from Japan that is showing early success. SA's favourite market commentator David Shapiro applies his mind and experience to the fracas between Old Mutual and its former CEO Peter Moyo which it is now being forced by the courts to re-hire. Star play for the show, former head of SA Revenue Services investigations team Johann van Loggerenberg talks about his new book, Tobacco Wars, whi