Rational Perspective

In this sponsored interview, the chairman and CEO of Orbvest's sat down with Biznews's Alec Hogg to unpack how a quest to diversify their own investments evolved into a fund that is now over $200m and growing fast. Successful entrepreneurs in their own right, Hennie Bezuidenhout and Martin Freeman are applying lessons learnt in their homeland to the US market with predictable and profitable consequences. See omnystudio.com/listener for privacy information.

Former South African president Jacob Zuma is back in the spotlight today when he takes the stand at the Deputy Chief Justice Raymond Zondo’s commission of inquiry into State Capture. There’s been another twist in Mozambique’s $2bn Tuna Bond scandal. South Africa’s new justice minister, Ronald Lamola, has blocked the release of former Mozambiquan finance minister Manuel Chang, who is deeply implicated in the scandal. China’s Huawei Technologies is planning extensive layoffs at its US operations, as a direct consequence of its blacklisting by US president Donald Trump. Embattled Tongaat’s one-time stablemate Hulamin has been hitting obstacles of its own with the share price losing almost 6% on Friday. See omnystudio.com/listener for privacy information.

It’s no secret that the SA housing market is not in great shape. House prices are down, sales are few and far between, and there are many lovely homes standing empty in good suburbs in Joburg and Cape Town. But the picture may not be quite as dire as it seems. Alec Hogg is currently looking for a home, and his perspective on the housing market is worth hearing. In this episode, Alec Hogg and Felicity Duncan talk about Alec’s experience with house shopping and what it tells us about how South Africans are feeling about their homes. They also talk about the Naspers Amsterdam listing and what ordinary South African shareholders should do about Prosus. They wrap up with a discussion of the ongoing troubles in the auditing profession. See omnystudio.com/listener for privacy information.

In most countries, calling the troops into suburbs will not be met with shouts of approval. But in Philippi and Hanover on the Cape Flats where gang violence has turned the lives of so many people into misery, the local residents and community policing forums have asked the SANDF to intervene as it became clear that the police have lost control over such areas. The Daily Maverick reports that “mortuary statistics suggest that 900 people” have died in gang violence in the first six months of the year. Johan Burger from the Institute of Security Studies say it was clear that the police were not functioning properly in the area, but he cautioned that the troops should only be there to enable the police to do their work; they have not been trained to act as policemen. - Linda van  Tilburg     See omnystudio.com/listener for privacy information.

In today's business headlines: A proposal by the PIC has become a rescue option for embattled Eskom; The Rand strengthened as the Eskom proposal soothes nerves and a global rally following dovish US Fed outlook; Bitcoin shares battered after US Fed poured cold water on Facebook's Libra; Woolworths shares rose by 5.99% to their highest level in 6 months; South Africa may escape a recession in the second quarter and; SAA Chair departs. See omnystudio.com/listener for privacy information.

In a superbly researched Financial Mail cover story this week, editor Rob Rose leads one to the obvious conclusion that Tongaat CEO Peter Staude bet the proverbial farm on a sugar price rebound. That aligns with the view of former banker Dave Woollam, a CA, who unpacked deficiencies that accumulated in the Tongaat accounts over a decade. Woollam returned to Rational Radio this week to update us on the latest at the embattled KZN business - and offer his insights on Lord Donald Brydon's UK commission of inquiry which is examining how the auditing profession needs to change. - Alec Hogg See omnystudio.com/listener for privacy information.

On Rational Radio this week, SA's favourite market commentator shares his call on Naspers's Dutch listing and finds us another company on the Amsterdam Exchange that he has bought into. Shapiro also assesses Brian Joffe's proposed R500m investment into Edcon - reckoning that the veteran entrepreneur was done a huge favour by not being allowed to invest. And offers some upbeat perspectives on the investment by Joffe's Long4Life in mushrooming SA footwear startup Veldskoen. - Alec Hogg See omnystudio.com/listener for privacy information.

In today's global headlines: ArcelorMittal SA shares plunge with job loss announcement; Rand and gold buoyed as US Fed rate cut expected; Reserve Bank Governor Lesetja Kganyago will serve another five years; Maria Ramos on new interim board at the Public Investment Corporation' Bloomberg says the Ramaphosa honeymoon is over; and Public Enterprises Minister Pravin Gordhan has applied for an urgent bid to interdict the Public Protector's remedial action against him. See omnystudio.com/listener for privacy information.

Biznews community members love Jean Pierre Verster, rating him one of their most popular investment commentators. And he certainly didn't disappoint in this week's episode of Rational Radio. In this fascinating interview he explains why five years after the collapse of Abil, the story isn't over yet - especially not for Preference Share owners. He also unpacks the options available to Naspers shareholders on the listing of its offshore assets in Amsterdam; and takes a close look at SA's bombed out property sector. See omnystudio.com/listener for privacy information.

Two citizen activists, two of the country's best money managers, a chartered accounting whistleblower, an entrepreneur turning an iconic SA brand into a world beater plus the best cell phone network - lots of variety and insights in this episode of Rational Radio. Guests on the show were: Oscar Phoku, CEO of Milestone Proeprty, which successfully sued the CCMA after the State organ reneged on a R100m deal to lease 1 Heerengracht in Cape town; Ace money manager Jean Pierre Verster who explains how Abil pref shareholders got screwed; what Naspers shareholders should do to avoid a big tax bill; and a sober assessment of bombed out SA property stocks; The story of citizen activist Jaun Lerena who seven years ago blew the whistle on a couple of market abusing multinationals - one has admitted liability and paid a R35m fine; Dutch group Unilever gets its day in the spotlight on Friday; The Veldskoen Story with Nick Dreyer, co-founder of the company which attracted a 49% investment from SA entrepreneurial giant Bria

Eskom chairman Jabu Mabuza has raised eyebrows for accepting yet another directorship instead of concentrating on fixing the power utility, which needs a government bail-out and its problems are believed to be the biggest obstacle to an improvement in South Africa's economic growth. A lifestyle audit has failed to turn up evidence that Daniel Matjila, former CEO of the country's biggest fund manager, is corrupt, a probe into irregularities at the Public Investment Corporation has heard. The independence of the South African reserve bank is back in the spotlight with its deputy governor Kuben Naidoo moving to reassure investors by highlighting the importance of an independent central bank. Investing in space travel to Mars is about to get easier for smaller investors, with Richard Branson's Virgin Galactic unveiling plans to become the first publicly listed human spaceflight company. As political tension continues to build north of the Limpopo River, Zimbabwean authorities have charged a senior official

You often hear stories of retirees in South Africa who battle to juggle their finances as medical expenses and day-to day living keep on increasing without access to extra funds. Add this to people who regard themselves ripe for retirement, but simply can’t afford to. As Alec Hogg pointed out in our morning meeting; retirement was invented by Otto von Bismarck in 1881 and it was given to soldiers as a reward for risking their lives for the handful of years they were expected to last after their time on the battlefields. We now live much longer after retirement so there probably needs to be a redefinition of retirement as we humans are stretching our years on earth with the average lifespan testing the limits, but that is another debate. PSG Wealth's Schalk Louw believes with careful management of retirees’ personal investment linked living annuities, retirees could be given a fighting chance. - Linda van Tilburg See omnystudio.com/listener for privacy information.

Embattled multinational retailer Steinhoff, listed in Johannesburg and Frankfurt, announced on Monday that Theodore de Klerk would take over as its new CFO on September 1. President Cyril Ramaphosa has criticised Finance Minister Tito Mboweni, Minister of Transport Fikile Mbalula and the premier of Gauteng province, David Makhura, for “unbecoming” behaviour on social media after a Twitter spat on electronic road tolls in country’s richest province, reports Bloomberg. As inflation in Zimbabwe hits a 10-year record of close to 100% and the country battles 17-hour power cuts, the Zimbabwean government is ready to raise civil servants’ pay for the second time in three months, says The Guardian. The Deutsche Bank share price fizzled, with the shares down more than 6% as the global banking giant started shedding one-fifth of its 90 000-plus employees, reports Bloomberg. Saudi Arabian budget carrier Flyadeal reversed a commitment to buy as many as 50 Boeing 737 Max jets, becoming the first airline to officially

More dirty laundry will be publicly aired today when Dan Matjila, the former chief executive of South Africa’s Public Investment Corporation, takes the stand at the PIC Commission of Inquiry.  One time global trading powerhouse Deutsche Bank has announced plans to radically shrink its investment bank, the company’s long-time dominant revenue generator.  Eskom will only name a new acting chief executive at the end of July when incumbent Phakamani Hadebe physically steps down.  On the JSE Friday, the share price of diamond producer Transhex jumped 12% to 88c after an announcement that a consortium which holds almost 80% of the equity is offering to buy out minority shareholders at 100c a share.  See omnystudio.com/listener for privacy information.

Many South Africans seem stuck in despair about the looted billions of the Zuma years, but events at SARS and developments with Oilgate show that hope truly springs. Despite the best efforts of the bad elements in SA society, many good people are working hard to punish wrongdoers and regain what was lost to looters. In this episode, Alec Hogg and Felicity Duncan discuss Oilgate and the civil society response to it. They explore how quick legal action may save South African taxpayers billions of rands. They also discuss SARS and its efforts to make sure that everyone pays their share – no matter how politically connected they may be. When the daily grind of bad news wears us down, it’s always valuable to try and take a look at what is going right in the world. See omnystudio.com/listener for privacy information.

Short-term thinking is a wealth-destroyer. What is it and how can you safeguard against it? Johannesburg Certified Financial Planner and wealth ecologist takes us through this all-important psychological phenomenon and provides practical pointers on how to adjust your personal finance moves. See omnystudio.com/listener for privacy information.

In today's business headlines: With only three months of salaries secured for the SABC, its COO says its future now lies with the banks; A sharp increase of more than 20% is expected in Comair’s earnings thanks to a court settlement; The rand strengthened to below R14 to the dollar yesterday, its best level against the greenback since late April; Glencore is one of at least three companies interested in buying Rio Tinto’s aluminium assets in Europe; Nigeria has told its banks that they should use at least 60% of their deposits for loans by the end of September; Finance Minister Tito Mboweni and Reserve Bank Governor Lesetja Kganyago converse again to douse Reserve Bank interference fires. See omnystudio.com/listener for privacy information.

A corporate fish might rot from the top, but once the disease sets in it spreads far beyond what most would anticipate. On Rational Radio this week, Forensics For Justice founder Paul O'Sullivan shared the story of an Eskom manager with signing power on contracts up to R750m who abused this trust to line his own nest. The corrupt manager, Magope Frans Hlakudi, granted contracts worth billions to Portuguese citizen Antonio Trindade - banking bribes worth tens of millions for his imaginatively designed "translation" services. If ever there was a case for the urgent implementation of obligatory lifestyle audits, this is it. See omnystudio.com/listener for privacy information.

On Rational Radio this week, we caught up with persistent financial services entrepreneur Gideon Galloway after he had sealed the R140m acquisition of Stangen. It was a fascinating conversation as Galloway explained how a presentation by a BMW executive got him started towards creating the disruptive short-term insurer King Price. And after swallowing up his own savings, hit the road with 42 pitches to potential investors before landing the financial support that kicked his dream into action. One to watch.         See omnystudio.com/listener for privacy information.

On Rational Radio this week, SA's pre-eminent media lawyer Dario Milo spoke about the recent mushrooming of libel cases including Independent Newspapers chairman Iqbal Surve's R100m suit against former activist and labour journalist Terry Bell. Milo, who is usually on the side of media defendants, successfully represented SA's former finance minister Trevor Manuel in his record R500 000 defamation award against the EFF. Apart from practicing as a director of Webber Wentzel, Milo is also the author of the definitive book on SA defamation law. See omnystudio.com/listener for privacy information.