PLEASE NOTE:

MyNews24 is a user-generated section of News24.com. The stories here come from users.

 
Rhyno
 
Comments: 21
Article views: 2785
 
 
Latest Badges:



 
View all Rhyno's badges.
 

This article has been selected as an Editor’s Choice report. Articles are selected based on quality of writing, audience response, newsworthiness and originality, and is at the discretion of the MyNews24 editors.

Sanral scandal

26 April 2012, 15:02

Most people were up in arms over Public Protector, Thuli Madonsela’s failure to investigate Richard Mdluli for... well whatever he is accused of having done (frankly I’ve lost count).

Fact is, her mandate as public protector doesn’t extend to criminal investigations, as is actually required in this instance, but is limited to acts or omissions by public servants, with a direct or indirect negative bearing on the public.

What she should be focussing on is the reason the Government Employees Pension Fund (GEPF) invested R 15.7 billion, in one go, into SANRAL bonds.

According to the definition of Insider Trading, which most know to be a criminal offence, this act by the GEPF falls squarely within the parameters of this taboo practice.

“Inside Information”, is defined as:  specific or precise information that has not been made public, and which is obtained or learned as an insider, and, if it were made public would have a material effect on the price or value of any securities or financial instruments. – Insider Trading Act 135 of 1998 (“the Act”).

Rest assured, the investment in SANRAL conforms to all the elements of the above definition, as these bonds are auctioned to bidders, where the price offered is a factor to be considered.

This means the price could be affected by the knowledge Government had in 2011, when the investment was made.

The South African public was only informed of the tariffs and subsequent potential profits for SANRAL, with e-tolling in Gauteng, during the beginning of 2012, giving Government an unfair advantage over normal investors.

Now, firstly, one has to remember that the Government is not bound by any law, unless it binds itself, which in the case of the Insider Trading Act, it didn’t.

However, the trustees of GEPF and Minister of Finance can be held accountable by two other forums, namely, the High Court and...yes, you guessed it, the Public Protector.

But, the rabbit hole goes deeper...

The Minister of Finance bound National Treasury themselves as sureties towards GEPF, in the event that this “investment” left egg on SANRAL’s face, which, incidentally, is becoming more and more possible each day.

Even in the unlikely event that we are being charged from the 30th of April, the success rate in collections will most certainly be even more woeful than Pretoria’s garbage collection services, which could invoke the Government Surety, if the margins fell to unexpectedly low levels.

This will most probably place a direct tax and fuel price levy burden on the consumer, as Government needs to make-up the unexpected loss somewhere, to balance the budget.

By implication then, the consumer across the country, even in Cape Town and Durban, where you don’t have e-tolls, stands as surety for the success of SANRAL’s E-toll project in Gauteng.

Bottom line, it’s a lose-lose situation, for you and me. A victory in court, pre-supposes less tax breaks, higher fuel levies and subsequent higher inflation levels.

In the event that such victory is not attained, the people of Gauteng still pay through their ears.

I suppose one could ask how ethical it was for GEPF to invest on information privileged to Government ears, and then be underwritten by Pravin Gordhan himself, if private companies and individuals could face jail time for doing exactly the same thing!

However, such a question seems so insignificant, in the face of what we actually stand to pay eventually.

If Madonsela were to investigate, and find that Gordhan or the Trustees of the GEPF acted maliciously or with gross negligence, the entire scam would at least be exposed, possibly slamming the final nail in the coffin for this Government.

With the amount of noise COSATU is making around this issue, the worker class of this country wouldn’t accept such a betrayal very lightly.

Come what may, Thuli Madonsela has always acted in accordance with her mandate, even though most people would have preferred her doing more on some issues.

This is a job for her offices, and you can bet that an investigation may start, after finalisation of the urgent application in Pretoria, no matter what the outcome.

Government truly overplayed its hand on this one, and have managed to create a common enemy in themselves by uniting opposition parties and its closest alliance partner in COSATU against it.

The undisputed facts speak for themselves, and now these facts need to be converted into public accountability, through the Courts in a legal fashion, the opposition in a political manner, and the Public Protector in an administrative form.

Be that as it may, one thing is for certain...they’ll have to see me in Court as well, as there’s no way I’m falling in line with e-tolling!

Disclaimer: All articles and letters published on MyNews24 have been independently written by members of News24's community. The views of users published on News24 are therefore their own and do not necessarily represent the views of News24. News24 editors also reserve the right to edit or delete any and all comments received.

 

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
21 comments
Add your comment
Comment 0 characters remaining

Read more from our Users

Submitted by
Sesi Xvi
Our good leaders set the foundati...

During the Nelson Mandela and Thabo Mbeki's time I am thankful they were great because South Africa became a emerging market and was number 1 economy in Africa.  Read more...

0 comments 126 views
Submitted by
Eric de Castro
Dog food will be our downfall

Have you ever wondered just what goes into the expensive dog food you buy for your canine friend? What are those suspicious brown bits and pieces that your dog eats? Read more...

5 comments 279 views
Submitted by
Ian Martin
Plug Prepares Frikkie For The Min...

“Religiosity is a debilitating mental disorder, and those who suffer from it are particularly susceptible to brainwashing,” Plug told Frikkie.  Read more...

4 comments 65 views
Submitted by
Gail Shorkend
Gautrain bus delay

I was waiting patiently at the bus stop. Had no clue that there will be no buses. Read more...

1 comments 302 views
Submitted by
Colin Webster452
The Athletics/eSports partnership

For a number of years, there has been a fair amount of speculation that certain games would make it into the Olympics. Read more...

0 comments 60 views
Submitted by
Johann Smith
Samsung Extortion

So Samsung proudly advertises their "free" screen repair and water damage!! Rubbish!! Read more...

4 comments 299 views
 

services

E-mail Alerts The latest headlines in your inbox

RSS feeds News delivered really simply.

Mobile News24 on your mobile or PDA

E-mail Newsletters You choose what you want

News24 on your iPhone Get News24 headlines on your iPhone.

News24 on Android Get the latest from News24 on your Android device.

SMS Alerts Get breaking news stories via SMS.

Blogs Your opinion on you, me and everyone.

 
Interactive Advertising Bureau
 
© 2015 24.com. All rights reserved.
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.