Fin24

JSE CEO wades into ANC-Khoza row

2012-04-13 16:37

Cape Town - Comments by Nedbank chairperson Reuel Khoza that the moral quotient of South Africa's political leadership is "degenerating" reflect uncertainty about the government's policy direction, JSE chief executive officer Nicky Newton-King said on Friday.

Newton-King told the Cape Town Press Club that investors want certainty from markets and that South Africa's policy position is unclear.

"All of these comments reflect the uncertainty," Newton-King said.

"I have a choice of where do I invest a billion - in South Africa or Australia... I can't put capital at risk if I don't know what the policy direction is.
 
"We have to make up our minds what we want to be."

Khoza said the country's "strange breed" of leadership needs to adhere to the institutions that underpin democracy.

"Our political leadership's moral quotient is degenerating and we are fast losing the checks and balances that are necessary to prevent a recurrence of the past," he said.

SA Communist Party leader Blade Nzimande attributed Khoza's anger to "the crisis of neo-liberalism" affecting the financial sector.

Police Minister Nathi Mthethwa also accused Khoza of belittling those who voted for the ANC as stupid.

Newton-King said the "haves and the have-nots" were increasingly linked to doing business in South Africa.

"Companies have to stop and think how they do business," she said.

"We need to think about what has to change for the gini coefficient (a measure of income inequality) to shrink."

However, South Africa remains an attractive destination because investors can move their money in and out of the country as they like.

The JSE is also the world's best regulated market.

Recently the chief executive of Oando, Nigeria's largest non-government oil company, chose to list on the JSE because he wanted to attach the company to the bourse's high governance standards.

Newton-King said Bric countries (Brazil, Russia, India and China) would become a much larger part of South Africa's future.

She said, however, that the country has to attract more business from these countries, expected to have about 40% of the world's wealth by 2020.

      

Comments
  • Shirley - 2012-04-13 17:05

    Khoza hit the nail on the head. A lot of foreign investors have been more cautious after that statement-as they should be. Its high time someone with a loud enough voice started singning concerns. Now anc is desperately trying to put out the fire......with a thimble.

      Lerato - 2012-04-14 04:30

      @Shirley your argument is not supported by results coming from the JSE, bond performance or our ever performing Property stocks. If I may ask where do you base your argument, maybe you have done a 5yr forecast, please enlighten me, sounds interesting !!

      Piet - 2012-04-14 19:17

      Lerato, you defending the ANC. The only thing they always play, the race card. They mustnbe quite insecure to do this.

  • aspruyt - 2012-04-13 17:10

    The truth hurts!

  • Mark - 2012-04-13 17:37

    If I were the ANC, I would keep very quiet to limit the damage. They have no defenceable arguments against the courageous Khoza

  • Trevor - 2012-04-13 17:39

    I'm sitting in the same boat all be it not billions but millions...do I keep my capital outside SA and invest in OZ or take a chance on SA. The ANC and it's inability to GOVERN SA firmly and make concrete decisions has me thinking twice, they can't even handle Julius Malema for pete's sake, a boy who's not even a politician but who's making the Leadership look weak.

      Amanda - 2012-04-14 11:40

      Hit the nail on the head !

  • Abie - 2012-04-13 17:50

    No right-minded businessman will invest his billion rand in South Africa at this stage with all the squabbles in the ANC-led government and I am sure that the brics alliance is pretty one-sided i.e. raw materials leaving the country at cheap prices but minimal investments into SA.

      Lerato - 2012-04-14 04:23

      @Abie please don't generalise, they are foreign investors investing much more than that, remember \The JSE is also the world's best regulated market' let's not our hatred for ANC cloud our judgement. @ my work place we are busy compling a R2.1bn fund comprising of PUTs and PLS, for an Australian company!! I think people musnt confuse debate with policy clarity, in the US they are currently engaged in a heavy debate (medical insurance) which will have a major impact on the US economy but currently its business as usual. So real investors don't base their judgements on debates

  • Pule - 2012-04-13 17:57

    Yes,I was stupid me voting for that Zulu and Xhoza part called ANC,My municipality Greater Taung is having between 250 000-320 000 staying in 201 villages,DA please come and campaign in our municipality you'll destroy ANC.

  • Neville - 2012-04-13 18:10

    This ANC goverment is weak they always looking for excusses then solving the problems and a bunch of arrogant people

  • Ian - 2012-04-13 18:37

    The problem here is that we always want the world to understand how we debate issues instead of understanding how the world look at us. The nationalization debate has been led to go for too long. It was not about \this is how we debate issues in SA\, it was about cowards afraid of telling Malema how he needs to debate issues. They were not sure of their positions until they have come to realize that he is an empty cannon. Now you will see these cowards stepping on the podium articulation their positions on policy issues. He was led to speak about things that were out of his competence. Malema has done a lot of damage (politically and economically)to the country. I do not understand why old men who have been in politics for long can allow themselves to be terrorized by a 28 year old. No balz at all. I am talking about all the politicians across all political organizations here. The media also played part by always putting him on the spot light.

  • Zahir - 2012-04-13 20:05

    Its clear to all people that the current anc has no clue how to run the show but to arrogant to admit that so they prefer to attack messenger

  • Lacrimose - 2012-04-13 20:17

    Unclear policies, failure to plan, slow to act, 'transparency' mainly a word to bandy about in press conferences. At every related press commentary and radio debate, ANC continues to point fingers back at business and the private sector but have done little to put Loot-freely House in order. Cries of "South Africa is Safe" whilst the Secrecy Bill (replete with public funded adverts) looms, people killed by drivers, murderers, diseases and a collapsing infrastructure. Fallen comrades and relics of a once-glorious past have, in recent weeks, been trotted out with monotonous regularity. Yet there's not one current, serving icon in their entire stable that they can point to as an example of the longevity of the ethos, morals, courage and decisiveness they continue to try and market to the citizens and the world. The ANC's entire reign has lurched from crisis to crisis. As a result, apart from war-zones, we must be the most stressed-out, anxiety-riddled nation on earth. Whether we burn things in protest, strike, write diatribes on news forums, vote at the ballot or with our feet, it seems to have zero impact. The past is ANC's remaining card - both a carrot and stick. We cannot allow our country to be ruled by ghosts. We demand a clearly-defined, transparent and sustainable *future* for all

  • Patricia - 2012-04-14 00:13

    A example of the total chaos of policy and reality is the Walmart/Makro fiasco. In addition every single day brings a new level of corruption which is costing the country billions at the expense of the poor. The latest scandal with criminal intelligence and a untouchable being reinstated with prima facie eveidence of theft in the extreme is morally indefencable by a government that has lost it's moral compass. God help our children as the legacy that is being created now will be the ultimate downfall of this country not the party much like communism.

      Anthony - 2012-04-15 14:18

      thank you patricia--a most inteligent comment that says it ALL

  • jeremy002 - 2012-04-14 08:05

    I wish the real leaders of the new South Africa, regardless of race, colour or background, would now emerge and take up their rightfull positions, and so cause the old revolutionary guard to move aside. The current crowd are too steeped in the old Marxist/Maoist trade union driven ideologies that have destroyed other countries economically and socially. No matter how hard they try to keep the masses ignorant and uneducated, and so keep themselves in power, there is a law that they cannot escape from: The cream always rises to the top. The cream are the natural leaders of tomorrow who get a proper education and learn to think and problem solve for themselves, and who do not just swallow the drivel that is regurgitated by the current leadership every day, ad nauseum. Just like the old adherers to apartheid, the clowns now in charge and their ideologies will pass on into history, and a new non-racist, educated crew will take over - people who are able to think soberly and reason logically. So how about it Mr Khoza? Are you not willing to step up to the wheel and steer this ship of state out of trouble?

  • nthabiseng.matheba1 - 2012-04-14 08:26

    Thank u Newton-King self proclaimed intellects like Nzimande,BIG MOUTH Jimmy Manye and Police Minister think we can't see how fast SA is moving in the wrong direction DA please come to the rescue n bring real ppl who went to school to rule

  • lwando.poni - 2012-04-14 10:15

    Classic example of how the ANC doesnt want to here criticism about its leadership. Khoza isnt the only person who feels that there is no clear direction for the country. We are caught inbetween a transitional phase, where the general populace want obvious results but the leadership seems to be back-paddling. This is. what happens when you sit and let under-educated people who dont understand comerce, law

  • richard - 2012-04-14 10:37

    Shame to ANC especially manthashe investors do look at this ups and downs pre investing in south africa.khoza is right definetly.this has got nothing to do with ZUMA or anc conference in bloemfontein.for as long as we vote for ANC we will never get this country forward.khoza must stand firm and i wish other business organization can raise their opinions about the future and the leadership of our country and ANC

      Anthony - 2012-04-14 12:09

      why has the ANC not responded to Cleopatra Hani ? especially big mouth blades !!!

  • jaco.myburgh.35 - 2012-09-22 13:03

    Dr Khoza for president! The current guys are more worried about their own pockets. I dare them to prove me wrong. Why are chinese people building the low cost housing in Graskop. Someone pooped the pooch over there. We have enough unemployed people in SA to build ANYTHING!!Also, why did my collegue's baby just die in a crappy hospital from malaria when there was not any medication available (+-R70 for malaria tablets) when the ANC guys are building R35million rand houses for their personal use not even 20km away from there. The ANC is relying on the uneducated masses to support them in order for them to rape the system. It is up to the 2% of tax paying, highly educated people in SA to help, educate and protect the poeple of SA

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