AN OPEN LETTER TO DUDUZANE ZUMA

Hey Dudu:

The Times reported (31/5/17) that in 2015 you purchased a swanky Dubai flat for nearly R18 million in the prestigious Burj Khalifa.

I am pleased your association with the Gupta brothers has not only been an enriching experience, but one that has taught you to geographically diversify your property portfolio.

Although I, and many South Africans have never met you, we do have a special relationship.  As South African taxpayers we funded the purchase of your flat through an exclusive VIP programme, the brainchild of you know who, infamously known as 'State Capture'.

Inasmuch as I, and my fellow taxpayers are third party beneficiaries in the purchase of your flat, we clearly share in the fruits thereof. I suggest a time share arrangement managed by your friends at the Saxonwold compound.

I plan to be in Dubai in two weeks to check out the place, and report back to my fellow time share beneficiaries.  Please insure a plentiful supply of Chivas and caviar, not forgetting fresh 600 thread count cotton sheets on the beds.

I, and my fellow South African taxpayers are keen to meet you. I suggest we do so over a drink - that's what new friends do.

Regards,

Errol Horwitz

JARED KUSHNER - THE COST OF NEPOTISM

As more details emerge of Russia's interference in the US presidential election, speculation is transforming into recognition that Trump's campaign and transition team aides acted in concert with Russia.

The recent revelation to surface is the president's son-in-law, Jared Kushner, proposing to Russia's ambassador to the US, a clandestine communication channel  between the Kremlin and the Trump transition team.   His proposal - a backchannel with equipment located at the Russian embassy in Washington, D.C.

Kushner is in for a torrid time, a time that may include prison time.  His failure, according to Reuters, to disclose phone calls with Russian officials when applying for his security clearance puts him squarely in the middle of a federal investigation.  Kushner's explanation:  he has no "recollection" of the calls.  A  simply absurd defence unless he can produce evidence of an early onset of dementia!

Inasmuch as Kushner now finds himself in the centre of a federal probe, he should  have at the outset realized that, as a real estate developer, he was unqualified to be Trump's senior adviser for everything.  The die is cast as Kushner will learn to his detriment.

A DEN OF THIEVES AND LIARS

The ANC's has expressed public outrage at Brian Molefe's reinstatement as Eskom's CEO.  Other than outrage it refuses to take action, and has called upon government and parliament to remove Molefe.

Clearly all is not well at Luthuli House.  Public Enterprises Minister Lynn Brown was summoned to Luthuli House on May 15, 2017, for the express purpose of instructing Brown to reverse Molefe's appointment, alternatively, dissolve the board.

Nothing came about following Brown's tete-a-tete with the ANC's top six. - no reversal of Molefe's reinstatement, or dissolution of the board, other than an expedient referral of the scandal to government and parliament -  another clear indication of the ANC losing control.

In the meantime Molefe's hotline to the Gupta brothers must be ringing off the hook.  We have Brown  and Ben Ngubane, Eskom's chairman to thank for reinstating Molefe, which can be turned into an opportunity by firing all three of them.

EUROPE SEES DONALD TRUMP FOR WHAT HE IS - A CLOWNISH MORON

For a time Europe's political elite were filled with confusion and trepidation about Donald Trump and his foreign policy.  His rantings appeared to to be cemented in right-wing populist ideology.  In time the Europeans realiized their mistake. They now view Trump as an unprepared and ill-informed dilettante, whose sentence structure is limited to a noun, a verb, and ending in "fake news", "build a wall", or "America First".

The world will be watching Trump closely  on his international tour of the Middle East and Europe - not for diplomatic triumphs of his making, but rather to what extent Trump will erode America's global standing even further.

Jacob Heilbrunn, editor of the conservative National Interest Journal  told a meeting at the German Foreign Office that "the dominant reaction to Trump right now is mockery", to which the word "irrelevant" can also be added.  Irrelevant inasmuch as the upcoming NATO meeting with Trump  has supposedly been downgraded from a summit to a dinner.  Those attending the meeting have been asked to confine remarks between two to four minutes to keep Trump's attention. In other words, there is no need to invest meaningful time and effort because the Trump presidency is destined to be the shortest in US history.

TRUMP'S DAY OF DESTINY

May 17, 2017, will be a day Donald Trump will want to forget.  It was a day when he was given a civics lesson on the limitations of presidential power, a lesson that presidents before him grumbled about, but in Trump's feeble mind did not apply to him at all.

The appointment of a special counsel by the Justice Department to take over the investigation into collusion between Trump campaign aides and Russia was a good day for democratic institutional accountability.

The rule of law in the US is alive and well, and events of the past week highlight the rules that apply to other politicians have finally inveigled Trump.  He once boasted that his shooting of someone on Fifth Avenue would be inconsequential to his voters.  But, as President his arrogance, pomposity and hubris has become a liability even amongst his most ardent supporters.   To Trump, the race for the White House was a game in which winning is paramount - an obsession that is central to Trump's egomaniacal character.   

In time Trump may face impeachment.  He will resign rather than impeachment which in his disturbed mind will be a win. 

JACOB ZUMA, HIS CABINET & A PiG WITH LIPSTICK

The Times recently reported on President Zuma's cabinet "spruc[ing] up [the] shop" in preparation of upcoming visits by rating agencies.

The cabinet's task reminds one of the porcine proverb:  "you can put lipstick on a pig, but it's still a pig".  It will be interesting to see if Zuma and his cabinet  can do the impossible by making a silk purse out of a sow's ear.

Until such time as the ANC government actually implements wide-ranging political and economic reforms, the country's sovereign credit rating will not be upgraded.

ANC government's promises to effect change do not sway rating agencies, unless meaningful change takes place. There is a problem, however, as Zuma and his cabinet fail to understand that one can, in the words of Barak Obama, "wrap an old fish in a piece of paper called 'change'.  It's still gonna stink after eight years".

TRUMP'S RUSSIAGATE A BLESSING IN DISGUISE

Donald Trump isn't an ignoramus. He just talks like one.  One analysis, citing "a cramped simplistic vocabulary found that Trump talks just below a sixth-grade reading level".   His followers, embedded with the intellectual level of a can of sardines, are intoxicated by his incendiary language, as they see him as the savior of America's forgotten men and women.

The forgotten are angry white voters who from day one refused to accept Barak Obama, a black man, as president of the United States.  Trump understood the raw emotions of his followers, and used a litany of linguistic contrivances to exploit their prejudices to the fullest. One merely has to look back on Trump's campaign of relentless deception to undermine the legitimacy of the nation's first black president.  Was it the cynical start of his campaign for president to curry favour of the missing white voters from elections in 2008 and 2012?  Applying the 'duck test' it is exactly what it seems to be.

As far as his followers are concerned, Trump can do no wrong, despite his blatant anti-truth-telling shrouded in a mix of repetitive short sentences characterised by empty adverbs and adjectives.   Trump comes across as a spiteful, vengeful, arrogant, boastful,  naive, and unquestionably a serial prevaricator.   He doesn't fit the mold of a normal president - what you see is what you get. A bizarre authenticity that resonates with 46% of the electorate.

Since the election the majority of the electorate believe Trump is bad for America - a colossal case of buyer's remorse, and with each passing day, proving to be unfit for the job.

There are signs that Trump's presidency is in trouble. A case in point, the FBI's criminal investigation into collusion between the Trump campaign and the Russian government to derail Hillary Clinton's election is ongoing despite Trump's bombshell in firing FBI Director James Comey.  The firing reeks of a cover-up reminiscent of Richard Nixon's firing of Archibald Cox, the special prosecutor in the Watergate scandal.  With near-certainty of impeachment and removal  Nixon resigned as president.  Will Trump suffer the same fate?  For the sake of America  and its democratic institutions, let it be soon.

UNPACKING ZUMA'S LIE

South Africa's top heavy Team South Africa was faced with a mission impossible at the recently concluded World Economic Forum on Africa. The delegation was tasked in persuading business leaders and investors that South Africa is still a viable investment destination.

Other than presumed apocryphal dribble from President Zuma that "Team South Africa came out on tops once again", there is no independent corroboration that this was the case.

What investor, even one flush with "mad money" would risk investing in South Africa, plagued by two downgrades to junk status with a probable third not far off - clearly a very stupid investor.  If one adds a deteriorating economy immersed in kleptocracy, ideological dysfunction and state capture, Team South Africa's sales pitch must have been synonymous with that of shady used car salesmen unsuccessfully trying to foist a lemon on a sophisticated customer.

Until the ANC government gets its political and economic house in order, Team South Africa's junkets to economic forums are a complete and indefensible waste of taxpayer money.

RAMAPHOSA V. DLAMINI-ZUMA: THE LOSER - SOUTH AFRICA

Cyril  Ramaphosa has tossed his hat into ring, and joins Dlamini- , the other leading candidate in a contest to replace Jacob Zuma as leader of the ANC. 

 Ramaphosa is a consummate politician - affable, intelligent, politically savvy and disarming.  When comparing him to his ANC elites Ramaphosa wins hands down. This, however, does not necessarily mean South Africa can correct its course under Rhamaphosa's  leadership.

There is another side to Ramaphosa that cannot be ignored, and which militates against giving him the keys to the kingdom.  

 For years Ramaphosa refused to dust off his moral compass.  His blind loyalty to the ANC collective was absolute. His silence following multiple instances of corruption and looting of state resources by ANC comrades was deafening. The fact that he did not speak out is indicative of symptoms of moral deficit disorder wrapped-up in a reservoir of political expediency and opportunism. 

In a perfect parliamentary system a ruling political party chooses its leader within a framework focusing on the long-term good of the country - this means a leader vested with statesmanship as opposed to being a political hack. As a prerequisite to statesmanship the qualities of integrity, responsibility accountability, conscience and character are essential. 

Such qualities do not, however, matter in the ANC's paradigm for replacing Zuma.  The dynamic is simply a power struggle between competing factions.  All that matters is factional self-interest between those who support Ramaphosa, and those opposing him. 

Ramaphosa, the well-connected billionaire politician does not need the trappings of the state to enrich himself. He has already acquired his riches from being a major beneficiary of gratuitous empowerment deals.  He is beholden to his party for his wealth, and until recently refused in the name of party loyalty, to distance himself from Zuma and his political chicanery.  Until he threw his hat into the  ring, he blindly supported and defended Zuma by dishing up rhetoric over reality, laced with side-stepping infuriating generalities.  His lack of political will and independence raises serious questions about his ability to govern effectively.  To add to the mix is a paradoxical tension between Ramaphosa's

intelligence and his judgment. Regrettably his intelligence does not alway equate with good judgment.  One merely has to recall his deafening silence in the wake of Nenegate by allowing political expediency to cloud his judgment.  To put it bluntly:  Ramaphosa is not his own man - he has been consumed by years of ANC relentless collectivism, supplemented by  a generous helping of self-interest and political need.  

 Ramaphosa is not the ideal choice to lead the country. But, then again nor is  Nkosazana Dlamini-Zuma, an imperious and incoherent politician, his chief rival.    Ramaphosa will be nominated by his faction at the next ANC elective conference, but his nomination will be nothing more than an historical footnote of a failed nomination that was.  Zuma and his cabal will see to it.  

What the country is left with is Dlamini-Zuma whose political past establishes that in her world political aspirations override the wellbeing of people.  This was evident at the AU where her performance as the AU's commission chair was far less than flattering - in fact for many it was high time say "good riddance".  According to one German media outlet she ignored crisis upon crisis from the Ebola epidemic that claimed many lives to civil wars, and the deaths of African migrants trying to cross the Mediterranean to Europe.  Nearer to home, one cannot forget Dlamini- Zuma's role in the Sarafina scandal, her denialism with respect to the HIV/AIDS pandemic, and promoting a quack remedy for the treatment of HIV/AIDS.

After all is said and done Jacob Zuma  will most probably succeed in Dlamini-Zuma replacing him as leader of the party, and ultimately president.  South Africa will then have a two-in-one package with Jacob Zuma as the de facto president calling the shots. 

       

ANC'S NEW GOLDENBOY - CHRIS MALIKANE & HIS MARXIST DOGMA: A WITCHES' BREW FOR SOUTH AFRICA

Chris Malikane, advisor to Finance Minister Gigaba, was again peddling his version of fake economics - this time  when recently addressing the  Blacks in Dialogue event.

He reiterated his call for nationalisation of key sectors of the economy as a component to radical economic transformation, and if not implemented, by sounding an inflammatory call to arms.

Malikane wants radical economic transformation to "plunge [South Africa into crisis] and become like Venezuela, Zimbabwe", which in his make-believe world, have morphed into successful shining light representations of radical economic transformation.  In the real world, however, they are basket cases mired in deeply deteriorating political and economic crises.  What else would trigger angry and hungry mobs in Venezuela to ransack supermarkets, with Zimbabwe's crisis upon crisis not far behind?

Malikane will offer his proposals at a upcoming ANC policy conference.   Chances are Malikane's fake economics will resonate notwithstanding rational alternatives to creating jobs and addressing inequality.  If implemented, the country will likely find itself begging at the IMF's door.

It's time for Malikane to return to his ivory tower, and focus on economic theory that works in the real world.  Until then, he remains a loose cannon in a position to further exacerbate an economy currently on life support.

THE PURGING OF WHITENESS FROM RADICAL ECONOMIC TRANSFORMATION

The meaning of the phrase "radical economic transformation" by Jacob Zuma and his acolytes is the subject of much debate.  One commentator called it "just BEE on steroids", whereas Reserve Bank Governor Lesetja Kganyago was at a loss to give meaning to the phrase when asked to define it at a recent public lecture.

To investors the phrase is cause for concern. This was evident when Finance Minister Gigaba recently met with foreign investors who insisted on clarification on what the ANC meant by the phrase.  Gigaba offered a mealy-mouthed explanation:  inclusive growth "to create jobs, to address poverty, to address  inequality".

The obvious question is whether investors bought Gigaba's explanation.  No, as investors in emerging markets, notwithstanding higher rates of return on investment, are still guided by due diligence.  They are aware of the ANC's increasing drumbeat of "white monopoly capital" that rides shotgun with calls for radical economic transformation.  They are aware of the ANC government's predilection to play the race card to evade the real issues for the country's economic crisis:  government incompetence, poor infrastructure, corruption, rampant unemployment, looting of state resources and rotten policies.

"White monopoly capital" is a convenient whipping boy for the ANC government to mislead the country that the WHITENESS of monopoly capital  is to blame for its failures.

Investor confidence in South Africa is a thing of the past.  Chances are confidence will be restored when the ruling party is a thing of the past.