Monday, January 24, 2011

FOREIGN ownership and control of Banks or FOREIGN banks in SA?

SAPA Reuters news as far back as 6th September 2010, stated that the worry of most South Africans is that three of their top four banks have a substantial foreign owner. As it stands, Standard Bank is 20 percent owned by Industrial and Commercial Bank of China, while the majority of Absa is owned by Britain's Barclays. Now there is an approved HSBC's $8 billion bid to buy 70 percent of Nedbank. This leaves only the FirstRand under total domestic control. Who knows, as you read this article, there might be a deal on the way for FirstRand too.
However, most industry insiders view HSBC as a stronger foreign owner for Nedbank than Old Mutual, which has its roots in South Africa but is now based in London. Currently, Old Mutual said it would apply for permission to the Central Bank to take out 1.5 million pounds ($2.32 million) of the proceeds to pay down debt (capital flight). The rest of the, money it says, would remain in South Africa. Some analysts claim that the deal would be positive for the rand while others disagree. Addressing businesspeople on September 2nd in Soweto, the Reserve Bank Governor Gill Marcus is quoted on as saying “ownership in South African banks was a difficult question and needed careful consideration, because in South Africa, it's more complex. We have ownership that's mixed. Mixed ownership of banks does have risks. "It does create a situation of complexity and that needs careful consideration in my view,".
As a developing country, economists may argue that such investment gives a positive image to the country and even to the rand. What most of them and ever the Bank’s shareholders in particular do not consider is the fact that foreign ownership leads to more foreign workers and this subsequently leads to more capital flight from the country.
When we look at the ownership and control of South Africa banks, it is important to be conscious of the fact that development has a price. That that price could lead to complete foreign control of many sectors and industries as is the case in many developed countries. Only when we are ready to that price could there be full development.

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Thursday, January 13, 2011

Back to school 2011

Going to school for the first time or starting a new class/grade has never been a glorious trip for both parents and pupils, even students. It was a sight to hold on to at Sacred Heart College Johannesburg yesterday when I dropped off my three children. The Sacred Heart College has just recorded a 1000% metric result with all students who passed being eligible for University entry and with one of the highest Mathematics percentage in pass rate.

In my house, it started with waking up at 6am after a long and lazy holiday period. My five year old boy was excited to be going to prparatory but for the first time it seems; he remembered that he has to make new friends in the new class.
For my 3 years old girl, it was more excited because two days before, she got a phone call from her boyfriend Elia 4 and the day before, she had gone to get her hair done. "Mumy" she said; "I cannot wait to see Elia and to show him my hair". "Also Mary-Jane and Tsekofatso".
To my litle 1 year old girl, the story was little to tell but much more anticipated. She is starting her first day in creche.

It was one of those rare days in my life. There were no cries in the house but lots of excitement and anticipation. Less rush from my side and suprisingly the kids all knew what is expected of them.
We left home at about 7:30an. At the back seat of my car, the two rehearsed what to tell their friends about the holiday. Only then did it strke me that it had been a very busy and expensive break. I thought of how much energy parents save when they have their kids in school.

In School, it was not easy to get a parking. But we got one anyway. As we walked our way through the corridors and passages were extremely busy and noisy. Children were busy hugging each other, just like the parents were. Safe right now to say from what I observed that the parents were more emmotional than the pupils themselves. In classrooms, they could not let go. Some successfully hide their tears while most of them just let it flow with their emotions. Kids cried and could not stop crying.
What a day.
To me, it was a proud day. My separation with all my kids was smooth. I am Blessed, I thought. At the same time, it is evident that each one of my children felt more secured by the presence of the other.

Wednesday the 12th of January 2011 was one of my longest days. While in the office I waited and waited for my phone to ring. By 1pm, there was no call from the school. So I decided to call and find out how my little girl is doing. "She is settling in very well" said the Adminitrator. "She cried for about 10mins just after you left but got back to play with the others". It is possible that the office phone did not stop ringing on that morning.

Whatever the situation was, we enjoyed our first day in school that ended just before 4pm.

Well done South African children and have a happy and knowledge filled 2011. We are Blessed.

VM Ntambo.

Monday, January 10, 2011

Shooting suspect's nihilism rose with isolation

TUCSON, Ariz. – At an event roughly three years ago, Rep. Gabrielle Giffords took a question from Jared Loughner, the man accused of trying to assassinate her and killing six other people. According to two of his high school friends the question was essentially this: "What is government if words have no meaning?"
Loughner was angry about her response — she read the question and had nothing to say.
"He did not like government officials, how they spoke. Like they were just trying to cover up some conspiracy," one friend told The Associated Press on Sunday.
Both friends spoke on condition of anonymity, saying they wanted to avoid the publicity surrounding the case. To them, the question was classic Jared: confrontational, nonlinear and obsessed with how words create reality.
The friends' comments paint a picture bolstered by other former classmates and Loughner's own Internet postings: That of a social outcast with nihilistic, almost indecipherable beliefs steeped in mistrust and paranoia.
"If you call me a terrorist then the argument to call me a terrorist is Ad hominem," the 22-year-old wrote Dec. 15, part of a wide-ranging screed that was posted in video form and ended with this: "What's government if words don't have meaning?"
On Sunday, Loughner was charged with the shootings a day earlier at a political event outside a Tucson supermarket. Aside from the six killed, 14 people were wounded. Doctors were optimistic about Giffords' chances for survival.
Loughner had at least one other contact with Giffords. Investigators said they carried out a search warrant at Loughner's home and seized a letter addressed to him from Giffords' congressional stationery in which she thanked him for attending a "Congress on your Corner" event at a mall in Tucson in 2007 — the same kind of event where officials say Loughner opened fire Saturday.
Other evidence seized from his home included an envelope from a safe with messages such as "I planned ahead," "My assassination" and the name "Giffords" next to what appears to be Loughner's signature.
His high school friends said they fell out of touch with Loughner and last spoke to him around March, when one of them was going to set up some bottles in the desert for target practice and Loughner suggested he might come along. It was unusual — Loughner hadn't expressed an interest in guns before — and his increasingly confrontational behavior was pushing them apart. He would send nonsensical text messages, but also break off contact for weeks on end.
"We just started getting sketched out about him," the friend said. It was the first time he'd felt that way.
Around the same time, Loughner's behavior also began to worry officials at Pima Community College, where Loughner began attending classes in 2005, the school said in a release.
Between February and September, Loughner "had five contacts with PCC police for classroom and library disruptions," the statement said. He was suspended in September 2010 after college police discovered a YouTube video in which Loughner claimed the college was illegal according to the U.S. Constitution. He withdrew voluntarily the following month, and was told he could return only if he met certain conditions, including getting a mental health professional to agree that his presence on campus did not present a danger, the school said.
To his friends, it had been a gradual alienation.
The Loughner they met when he was a freshman at Mountain View High School may have been socially awkward, but he was generally happy and fun to be around. The crew smoked marijuana everyday, and when they weren't going to concerts or watching movies they talked about the meaning of life and dabbled in conspiracy theories.
Mistrust of government was his defining conviction, the friends said. He believed the government was behind 9/11, and worried that governments were maneuvering to create a unified monetary system ("a New World Order currency" one friend said) so that social elites and bureaucrats could control the rest of the world.
On his YouTube page, he listed among his favorite books "Animal Farm" and "Brave New World" — two novels about how authorities control the masses. Other books he listed in the wide-ranging list included "Mein Kampf," "The Communist Manifesto," "Peter Pan" and Aesop's Fables.
Over time, Loughner became increasingly engrossed in his own thoughts — what one of the friends described as a "nihilistic rut."
Loughner, an ardent atheist, began to characterize people as sheep whose free will was being sapped by the monotony of modern life.
"He didn't want people to wake up and do the same thing every day. He wanted more chaos, he wanted less regularity," one friend said.
The friend added that Loughner believed government was trying to get people to accept their meaningless lives so that they would stop dreaming — literally.
He told anyone who would listen that the world we see does not exist, that words have no meaning — and that the only way to derive meaning was during sleep.
Loughner began obsessing about a practice called lucid dreaming, in which people try to actively control their dreams. He kept a detailed journal about what he saw while asleep, and tried to get the friends involved.
Several people who knew Loughner at community college said he did not seem especially political, but was socially awkward. He laughed at the wrong things, made inappropriate comments. Most students sat away from him in class.
"He made a lot of the people really uncomfortable, especially the girls in the class," said Steven Cates, who attended an advanced poetry writing class with Loughner at Pima Community College last spring. Though he struck up a superficial friendship with Loughner, he said a group of other students went to the teacher to complain about Loughner at one point.
Another poetry student, Don Coorough, said Loughner read a "kind of a bland" poem about going to the gym in wild "poetry slam" style — "grabbing his crotch and jumping around the room."
When other students read their poems, meanwhile, Coorough said Loughner "would laugh at things that you wouldn't laugh at." After one woman read a poem about abortion, "he was turning all shades of red and laughing," and said, "Wow, she's just like a terrorist, she killed a baby," Coorough said.
"He appeared to be to me an emotional cripple or an emotional child," Coorough said. "He lacked compassion, he lacked understanding and he lacked an ability to connect."
Cates said Loughner "didn't have the social intelligence, but he definitely had the academic intelligence."
"He was very into the knowledge aspect of school. He was really into his philosophy classes and he was really into logic and English. And he would get frustrated by the dumbed-down words people used in class," Cates said.
Loughner expressed his interest in grammar and logic on the Internet as he made bizarre claims — such as that the Mars rover and the space shuttle missions were faked.
He frequently used "if-then" constructions in making nonsensical arguments. For instance: "If the living space is able to maintain the crews life at a temperature of -454F then the human body is alive in the NASA Space Shuttle. The human body isn't alive in the NASA Space Shuttle. Thus, the living space isn't able to maintain the crews life at a temperature of -454F."
Loughner also said in one video that government is "implying mind control and brainwash on the people by controlling grammar." He said described America's laws as "treasonous," said the "every human who's mentally capable is always able to be treasurer of their new currency," and that "if the property owners and government officials are no longer in ownership of their land and laws from a revolution then the revolutionary's from the revolution are in control of the land and laws."
Loughner described himself as a U.S. military recruit in the video, but the Army released a statement indicating Loughner was not accepted.
"He attempted to enlist in the Army but was rejected for service. In accordance with the Privacy Act, we will not discuss why he was rejected," it said.
Loughner tried to enlist because it was one way of getting out of the "T-Loc" life — kicking around as a Tucson local — one of the friends said.
In October 2007, Loughner was cited in Pima County for possession of drug paraphernalia, which was dismissed after he completed a diversion program, according to online records.
A year later he was charged with an unknown "local charge" in Marana near Tucson. That charge was also dismissed following the completion of a diversion program in March 2009, the Daily Star reported.
"He has kind of a troubled past, I can tell you that," Sheriff Clarence Dupnik said.
As Reported in