The infant is growing and in rude health. On 4th August 2013, Biznews was born. It has been muscling up every day since, helped by editor Alec Hogg’s Undictated column. Initially commissioned by Business Day newspaper, Undictated has evolved into a self-standing section exclusively for Biznews. Here, in descending order, are the 10 best read Undictated columns of 2013 with a short context on each. Clicking on the headlines wll open the full article in a new window. – Caitlin Hogg
10. Why we keep paying more for petrol even when the crude oil price falls – August 13, 2013
“In 2001, South Africans paid just 26c in taxes in every litre of petrol. Of the R3.50 a litre we paid for our fuel, a modest 7.5% went to the State. Today out of every litre of petrol bought in South Africa, Government takes R3.40c a litre: The State’s share of our petrol rand has almost quadrupled to 26%. In only a dozen years.”
A long overdue discussion on the rise and rise of at-the-pump petrol prices in South Africa whose increase doesn’t quite match up with the average oil price per barrel, and haven’t for quite some time. Alec pieces through the relevance of tax inflation against the cost of crude oil, and notes Finance Minister Trevor Manuel’s straying from his predecessors’ promises.
9.Dave King seeks a fresh start after his “Damascene Conversion”. He might just get it. – September 4, 2013
“Properties in Sandhurst, Plettenberg Bay, Fancourt; wine farms in the Cape; half of Gary Player Stud; a R175m Falcon 900 jet, a £20m investment in Glasgow Rangers. The list stretches much longer. Not surprisingly, the spendthrift sparked the media’s attention. Tipping off the man who was to become King’s nemesis, the late Mr Chipps, a frumpy, seemingly distracted SARS-employed chartered accountant.”
A surprising amount of tax shielding and evasion occurs on an annual basis. David King, a true blue Glaswegian who emigrated to SA in the 70s, was ousted for his ‘efforts’ by an elderly public servant Mr Chipps, who passed away just before King finally paid up. King claimed an income of only R60 000 per annum for years, yet spent prodigiously, setting alarm bells off for Mr Chipps. The investigation by SARS spread into a detailed look into offshore evasion by South African businessmen.
8.Brody’s brilliant stewardship of the House built by the World’s Best Entrepreneur – October 12, 2013
“Lynch was succeeded by Hubert Brody, a largely anonymous former banker hidden inside Imperial for the previous eight years. At first blush, he typified those living in shadows of larger than life characters. Tall and slim, Brody is reserved, private. A polite family man and, to boot, a chartered accountant.”
As a 16 year old I spent a year a Rotary Exchange in France, during which the single opportunity of seeing my dad meant travelling alongside him on a business trip. To Monaco, no less, for the Ernst & Young Entrepreneur of the Year International competition. My dad recalls the memorable night we shared a table with the late and great gentle Imperial giant Bill Lynch, and discusses the strengths of his quiet successor Hubert Brody. There’s a collage in his office reminding him of the event. And the great entrepreneur he admired so much.
7. Cool heads please as SA contemplates a discovery equal to 310 years of oil consumption – October 23, 2013
“Twine, always understated with words, concluded that exploiting shale gas reserves in the Karoo was a “game changer” for the country. He maintained it would provide an economic boost not seen since the discovery of the Free State Goldfields in the 1950s.”
On October 23rd, Alec’s column focused on fracking, its potential in becoming a huge asset for South Africa as a job creator and stimulant to economic growth, but noting it could be detrimental to the environment. The debate has created a large amount of heated, logger-headed discourse between environmentalists and economists. This column highlights research by the man who brought the debate to light, the late Tony Twine, who passed away as a direct result of a hostile reception from those who disagreed with his conclusions.
6. Telkom Dream Team’s dilemma: a rich, out-of-sync CFO who is righteously indignant – October 30, 2013
“Ten weeks after Schindehutte joined, Telkom announced it had opened talks to bring in Korea’s KT Corporation as a strategic partner. Central to the idea was the Koreans injecting cash of R3.6bn for a 20% stake – buying around 100m shares at R36.06 each. (…) Despite the supposed R36.06 underpin, Telkom’s share price kept falling.”
A tale of national vs foreign, agreement shifts, attempted persuasion of the wrong people and one man’s choice not to go quietly, this column discusses recent events concerning Telkom, their new Dream Team, Korean interests cut short and the South African Government. A captivating story depicting a soap operaesque corporate/governmental fumble that is well worth the read.
5.SA swoons for R13bn platinum mine promoter Robert Friedland; Steve Jobs warned he’s a con man, charlatan – November 6, 2013
“It was a strange thing to have one of the spiritual people in your young life turn out to be, symbolically and in reality, a gold miner.” Double oops. Friedland a mesmerising con artist? Surely not the guy so respected among South Africans that, for a decade, the country’s likely future President, Cyril Ramaphosa served on Ivanhoe’s directorate.
Although having never heard of the man, the hype around Robert Friedlands’ involvement in the South African platinum industry triggered something in the Biznews editor’s extensively well-read memory. Friedland features quite prominently in Isaacson’s excellent biography on Steve Jobs. Not in a flattering way.
4.Turning AECI’s Modderfontein into Manhattan? Joburg’s Chinese Emerald City is more pie than sky – November 13, 2013
“Obviously the awful name, literally translated as Muddy Fountain, would need to change. A colleague suggested Baby Beijing. On reflection, a better name would be Emerald City. Like in Dorothy and the Tin Man. Because with his background and such extravagant promises, the promoter is more Wizard of Oz than SA property’s next big thing.”
With trade relations between China and South Africa being so strong, it would only be natural for either party to invest in land ownership within each others’ borders. The grandiose promises made by Zendai’s Dai Zhikang of the construction of a city constituting 1600 hectares, turning Modderfontein into a Manhattan-like metropolis is discussed in this November publishing. The column gives perspective on the seemingly over-promising and under-delivering proposal would mean for the country, and for the company making it.
3. Clayton Christensen: A man of God, an inspiration, motivator and mentor wrapped into one – November 25, 2013
“His classmates had arrived as not only academically bright, but as well-rounded, accomplished people with much to offer and the world at their feet. Yet as the years went by, the lives of many ended up completely different to the way they had anticipated.”
Global thinking has much more to do with the display of success through material possession than spiritual wealth. Lack of faith seems to be more and more of a trend, to the point that those who have any semblance of a higher power are in the dwindling minority, socially as well as in the business world. Clayton Christensen, who once again topped the biennial Thinkers50 table is an exceptions. This column looks into the strong connection between Christensen’s success and his spirituality.
2. Capitec gains another convert – my eye-opening trip to Stellenbosch on CEO Stassen’s last day – December 10, 2013
“When we met for tea a few weeks ago, he listened carefully and quietly worked through the numbers to show where my assumptions were off-track. But for him that was only half the job. He also invited me to Stellenbosch for a no-holds-barred look under Capitec’s hood. The visit happened on Friday. It was Stassen’s last official day at Capitec Bank, and he was insistent it happen before he departed”
In December, Alec was invited by the outgoing CEO of Capitec, Riaan Stassen, to meet in Cape Town to really get stuck in and discuss the way that the organisation functions before his departure. Sometime during that visit there was a significant change in our editor’s perspective on the bank.
And the number one article:
1. Drift – the cancer quietly eating away at SA, while we fail to pay attention – October 12, 2013
“The constant dropping of standards. A malady that Allan Pullinger, chief executive of RMB described as “Drift”. It’s what happens when you forget to watch. The slow movement away from a place you wanted to be, to an unintended destination. Drift happens all the time in business. Failure to address sloppy service guarantees it will become standard. Like the proverbial frog in water slowly brought to boil, such things don’t get noticed until it’s too late.”
The best read article so far on Biznews.com. I won’t even try to unpack its focus on the slow degradation in South Africa. Read it. Again if you have to.
