The mining industry has long been a target of government. A way for them to suck more taxes out of private business through royalties, profit on taxes, and by forcing mines to ‘create jobs’ which aren’t sustainable.
But with commodities prices as depressed as they are, the South African mining industry isn’t competitive on a global scale any longer. The costs of uncompetitive labour, high taxes and legal compliance have become too high.
Anglo American is now retrenching 52,000 workers. Assmang
will downsize, BHP Billiton
have already exited its South African mines with the South 32 split off. Lonmin’s
share price is at a low last seen in 1979.
Clearly there’s not much more government can get from the dying mining industry.
So they’re shifting their target.
The problem is, this move won’t just destroy an industry. It will affect you and me directly, whether you are white, brown, black, or blue.
Zuma’s new law to enrich his cronies even further
I understand there are past wrongs that need to be made right following apartheid.
Previously disadvantaged people need access to financing, land, jobs and business opportunities.
But the Zuma
government doesn’t have the wider population’s interest at heart when it plans new laws to fix the past’s wrongs…
As of 1 August 2015 the Property Valuation Act of 2014 became law.
The aim of the act is to aid in destroying the ‘willing buyer/willing seller’ principle when it comes to land reform.
This bit of law gives the president or his minister the power to appoint a ‘valuer general’.
The valuer general’s job will be to say what a property that’s a target of land reform is worth. The valuer general’s say will be final. And once a decision is made government can then pay a landowner their ‘fair’ price for the land, whether the landowner wants to sell or not…
Legal land grabs and crony enrichment will be the theme of the day
“The Act aims to, amongst others, provide for the establishment, functions and powers of the Office of the Valuer-General,”
a statement from the presidency said.
“It will also provide for the regulation of the valuation of property that has been identified for land reform as well as property that has been identified for acquisition or disposal by the Department of Rural Development and Land Reform.”
What they’re actually trying to tell us is that if a certain president has political favours to repay he could actually legally take land from someone at a cost that is determined by the valuer general. He could then freely distribute that land. No questions asked.
And don’t make the mistake of thinking this applies only to farms.
This applies to any property. Technically they’d have the ability to take your business from you too.
And if the president doesn’t like what the valuer general says properties are worth?
Well, the president could simply appoint a new valuer general. One that sings to the right tune.
The valuation act, coupled with the coming land reform act just opens up too many loopholes for ‘legal’ corruption.
According to the first draft
of the coming land reform bill the minister of public works will have the ‘general right to expropriation’.
Government would be able to notify a landowner of its intention to expropriate land. The landowner has 30 days to respond with a price they want for the land. Government then gets 20 days to accept the landowner’s price. If government doesn’t like the price, it can make an offer based on what the valuer general suggests as fair value. If the landowner doesn’t willingly accept the offer within forty days government can just go ahead and expropriate the land in any case.
The bottom line is, in the hands of an ethical and honest government I wouldn’t fight this act. But a government that accepts a R3
million 'fire pool' and pays R142
million for 21 rondawels
for our president, certainly can’t be trusted with such power…
I foresee many court cases. Many tears.
But we should not just take this lying down.
That's why I'm setting up a petition, so we can fight back against this unethical law.
If you want to join me, in taking a stand against government theft, simply fill out your details in the form below, and I will make sure that your voice is heard.
To make sure that our voices are as loud as possible, I encourage you to share this web page link
with as many people as possible.
Together we can make sure that our beloved country, South Africa, doesn't go the way of Zimbabwe.
If we don't stand together, the reality is, the new law makes destructive land grabs, just like what happened in our neighbouring country not so long ago, a very real and 'legal' threat.
We can't let that happen.
Forewarned is forearmed,
Editor, Red Hot Penny Shares