Economic review – Faust made a deal with the devil: so too, it is said, did the USA in the Bretton Woods agreement; upon which agreement our current practice of using the US dollar as a reserve currency, is founded.

A fellow by the name of Robert Triffin, predicted that this arrangement, of hosting the reserve currency, a might assist the US in the short term, but, in the long run, would cause its financial demise. This theory is better known as Triffen’s Paradox. If this interests you, take a look at the following link  https://www.zerohedge.com/news/2018-04-18/triffin-warned-us

As an irrelevant aside, I met up with similar terminology in what is termed as the Australian Paradox: America had begun as a combination of economic and puritan utopia, a creation of economic and religious liberty, and ended up as a rebel republic. Australia started out as a goal yet remains loyal to Britannia (except when it comes to sport?). The explanation tendered for this, is that the system of transportation of prisoners outside of the UK, had the effect of liberating those who had been trapped in an economic system from which they could not escape. Once released at the end of their stretches, erstwhile petty thieves were free to sell their labour to the highest bidder and were each given an allotment of land; unthinkable in England. 

Business

A “near free” account, to be piloted as differentiation product by African Bank, is targeted at stokvels– which one would be able to open “in your pyjamas on the couch”. Having been through the Fica hoops imposed on me by my own bank, which presumably has known about me for some time, I can but wonder how this bank will deal with multiple members who often will have no street address.

The Stellenbosch University is “decolonising” its curriculum (I’m tempted to be anal about this…). One approves of relevant local content: a pity about the political overtones and threats which necessitated such steps. Universities are supposed to be centres of innovation and development and one would have expected them to do this of own volition.

Sullied by association: Nkonki was an icon, a black behemoth in a lily-white profession. It is heartrendering that this audit firm rode the Gupta wave of largesse on to the rocks of its demise.

Property

Subsistence allowances are said to be derived from the idea that property rights entail an obligation to share the wealth drawn therefrom: one of the sources of such thinking is said to be a fellow by the name of Paine. Take a look at the following link: https://ordinaryphilosophy.com/tag/agrarian-justice/

RC 3/2018: this circular deals with the disestablishment of several municipalities in KZN as well as their replacement entities. What I found interesting was that the name of the Ray Nkonyeni Municipality is expressed as the Ray Nkonyeni Local Municipality. I am still uncertain which is correct; that municipality uses both in its documentation/website.

Practice

The Department of Justice has invited public comment on a proposed amendment to the Recognition of Customary Marriages Act. The patriarchy in this Act has, by order of the Constitutional Court, to be overhauled in order to correct the traditional discriminatory marriage practices when it came to the property rights of women in polygamist customary marriages, entered into before the commencement of the Act.

Hoist with their own petard: those of our colleagues acting for SARS are not being paid their professional fees by that entity. Undoubtedly wrong, and quite understandable that most firms would take up an offer to do lani work for the government. Somehow, I suspect that their plight will meet with little sympathy….our national take on paying tax being what it is. As an aside, do search this link for the origin of the petard expression:

https://www.phrases.org.uk/meanings/hoist-by-your-own-petard.html

An interesting aside: a report that the Public Works officials, facing disciplinary hearings for violating tender procedures in the Nkandla imbroglio, were punished with written warnings and requiring of them to undergo training on procurement (after the event!). The reason for this action: “At the end they realised that these people were merely doing their duties and had flouted regulations because they were given orders from higher up..”. On being questioned whether action was pending against those higher up, comment was declined. Of course.

Cases

Pensioners versus Transnet

This much reported on case is more complex than it initially appears: the class action is based on an oral promise made by the general manager of the then South African Transport Services and the Minister of Transport, that certain pension increases would be paid beyond what the actual policies promised. If this interests you, the case may be found at http://www.saflii.org.za/za/cases/ZACC/2018/10.html

Liability for detention after appearance in court

Can the Minister of Justice be held vicariously liable for damages following on a policeman’s unlawful arrest, for the detention of the accused after appearing in court? In this case a policeman unlawfully arrested a suspect and took him to court within two hours of “arrest”. The court held that the incarceration, following on the court hearing, could not be laid at the door of the police as it was the court’s responsibility to deal with the matter on it taking over from the police.

De Klerk v Min of Police

http://www.saflii.org.za/za/cases/ZASCA/2018/45.html

Quotables

“The x- factor of great leadership is not personality, it’s humility.” -Jim Collins

Comment

“Workers,.., are campaigning against a ferocious declaration of war by the ruling class of white monopoly capitalists, who are trying to get Parliament to pass new laws which will entrench poverty and threaten the workers’ constitutional right to withdraw their labour.” Saftu quite obviously ignores the fact that the majority in are Parliament are not white.

Deputy Pres David Mabuza says that he could not have been bought by the Gupta family owing to their having flown him to Russia for medical treatment. Beholden? Clearly Mr Mabuza is retrospectively ungrateful; businessmen rarely spend without having an eye on expected return.

If sin is as old as humankind, so too is corruption as old as government itself. Thabo Mbeki

Corruption in South Africa and the homelands is more than a disease, it is an instrument of state power. Victor Nel

Lighten Up

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Daan Steenkamp Attorneys