Thursday, July 8, 2010

From Creamer Media in Johannesburg, I'm Amy Witherden.

Making headlines:

Finance Minister Pravin Gordhan is to meet with the Auditor-General (AG) and the chairperson of Parliament's Standing Committee on Public Accounts to discuss 2010 FIFA World Cup ticket purchases of R130-million by State entities.
The Treasury says that there might be legitimate reasons for ticket purchases to advance the business case of public enterprises and government departments. However, concern has been raised about what action could be taken if the AG deems this spending wasteful or fruitless. The Public Finance Management Act - for national and provincial government - and the Municipal Finance Management Act clearly outline that the responsibility to ensure that public funds are not wasted, rests with accounting officers.
Outrage over State spending on seats for the FIFA World Cup has grown, with the known total spent on tickets climbing steadily in recent weeks. However, National Planning Minister Trevor Manuel has argued that parastatals should be given greater leeway than government departments, as they need to socialise with clients.

It takes eight procedures and 65 days to establish a foreign-owned limited liability company in South Africa, which a new World Bank study says is slower than both the sub-Saharan African average of 48 days and the global average of 42 days.
The ‘Investing Across Borders' report - which analyses practices affecting foreign direct investment (FDI) in 87 countries - also notes that a foreign company wishing to engage in international trade would need to obtain an additional trade licence from the Department of Trade and Industry, which usually takes 38 days to secure. By contrast, it involves only three procedures and four days to set up a foreign-owned business in Rwanda. However, South Africa compares favourably against a country such as Angola, where it involves 12 procedures and 263 days to establish a foreign-owned company, and it even compares well against a country such as Brazil, where it takes 166 days.
The World Bank uses the outcomes of the study to reassert its long-held argument that overly restrictive and obsolete laws are impeding FDI flows, while poor implementation is creating additional costs to investment. World Bank financial and private sector development vice-president Janamitra Devan says that clear and effective laws and regulations are vital for ensuring best results for host economies, their citizens and investors.

Doubts have been expressed over plans to replicate aspects of the FIFA World Cup courts that have seen the cases swiftly concluded.
In response to the Justice Department's hopes to carry over successful elements of the courts to the "normal" justice system, South African Prisoners Organisation for Human Rights, which often complains about long holding periods for prisoners awaiting trial, says that it is not holding its breath for an overnight improvement in the processing of cases.
At the start of the 2010 FIFA World Cup, the Law Society of South Africa was among those that expressed optimism over the replication of aspects of the FIFA World Cup court system after the tournament. Justice department spokesperson Tlali Tlali said, however, that it would be premature to judge whether it is possible to replicate aspects of the FIFA World Cup courts.

Also making headlines:

South African Reserve Bank governor Gill Marcus gives a subdued assessment of South Africa's economic prospects, saying that the country's recovery is still fragile.
Defectors from Angola's ruling Popular Movement for the Liberation of Angola party announce the formation of a new political group aiming to tap into discontent over poverty and corruption.
Western Cape Premier Helen Zille launches the Western Cape provincial government's strategic plan on environmental sustainability and resource-use efficiency in Cape Town, targeting the generation of 15% of the province's electricity from renewable energy sources by 2014.
And, the International Monetary Fund says that Zimbabwe's heavy debt burden can only be tackled through international debt forgiveness.

That's a roundup of news making headlines today.