Spent some time in a mining community today. It was really depressing to see how many young people were drunk by midmorning on a Sunday.
I have been working in this community since platinum mining began there almost 20 years ago. There have been dramatic changes. What were once isolated but coherent rural communities have grown and merged into a huge incoherent rural/urban sprawl.
There has been an undoubted increase in wealth and enterprise but this growth has come at enormous cost. Their way of life, their sense of community and order, everything has been shredded, nothing coheres.
What hasn’t changed is the quality of services, the roads are as bad as ever, there is still no water, the clinics and schools are a mess, the police are completely ineffective. Government and governance are conspicuous only by their absence.
The context of my visit is a new mine Nkwe Platinum, making a grab for a huge chunk of what remains of their communal farming land. A local headman, elevated to the status of Chief by the Limpopo Premier, has traded the land for, who knows what private reward.
The individual crop field owners are coerced, through bribes, rewards and punishment to sign away their rights. An all pervading sense of hopelessness and inevitability, born of powerlessness and a history of defeat saps their will to resist, even to demand fair terms.
Government in the form of the local authority, the DMRE and DRDLR are complicit. In them I also see hopelessness and acceptance of failure, they know that there is nothing they can do to change anything for the better and it’s much easier to give way.
Of course they won’t acknowledge their failure to improve their people’s lives, they will defend their weakness and ineptitude aggressively, those who do resist will be labelled as enemies of progress and opportunists and punished.
It would be great if my clients were heroic defenders of their land, their culture and way of life, but they are not, they have already lost it all. All that remains is to try to do what we can to ensure that they are not completely screwed over one more time.

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More from @Richard_Spoor

27 Mar
Consumer Alert #Weylandts Furniture!
Went shopping for a couch at their Furniture Store in Nelspruit. Found one we really liked. We were offered a choice buy the slightly shop soiled one we saw, or order a brand new in to be delivered in May, we opted for the one on the floor.
Then we asked when it would be delivered. The shop assistant said it would be in 3 weeks time. I thought that was an undue delay and suggested that if that were the case I would collect it myself. I was told that despite having paid for it +_ R22 k that I could not do so.
Their policy, they advised, was that I could not get the item I had bought unless they had another couch in stock to replace it, and that would take three weeks. Bottom line, my new couch, that I paid for, has to stay on display for another 3 weeks to keep the shop looking good.
Read 5 tweets
24 Mar
First encounter with the regulations to the Valuation Act. They provide for the manner in which land, to be acquired by the State for land reform purposes, should be valued. It works like this:
1. Determine the current use value of the land. To do this you take the nett cash flow
i.e. income less expenses and multiply that by a capitalization rate. In the case I am looking the rate was 13% (God knows where that number comes from) to give the current use value. So let’s assume a nett cash flow for a small farm of R250k per annum times 100/13= R1.9 million.
2. That amount is added to the market value, which in this case is R6 million, and divide by two. So 6+1.9=R7.9 million then divide by 2 to give a price of R3.95 million or a little more than R2 million below market value.
Read 7 tweets
8 Mar
Here is another doozie. The business rescue practitioners (BRP) of Optimum Collieries have proposed and the “creditors” of Optimum have accepted a proposal from Templar Capital Limited, a Bermuda based company to take over the Gupta owned mine.
Turns out that Templar comprises erstwhile Gupta cronies. Details to follow.
Centaur Ventures Ltd (CVL)is a company based in Bermuda that marketed the coal from the Gupta controlled Optimum Colliery. CVL claims that it advanced $75 million to the Gupta owned Optimum. CVL borrowed the money it says it advanced to Optimum from Griffin General Trading LLC.
Read 11 tweets
8 Mar
So Australian coal miner South 32 wants out of SA. This is not surprising because it has unfunded mine rehabilitation liabilities of some R34 billion. So what better way than to pass this liability on to Gwede’s bestie and BEE industrialist of note, Mike Teke of Seriti Resources.
The asking price is a very modest R100 million up front and a 50% share of the free cash flow generated till 2024.
So how are Mike and South 32 going to make a profit out of this transaction? Simple really, they will make a killing out of Eskom and electricity users.
South 32’s Ifalethu colliery supplies coal to Eskom’s Duvha power station. On paper they make a loss of R65/ton supplied. So what Mike will do is ask for a R470/ton increase in the price that is worth about R68 billion over the life of the contract. See photo below.
Read 12 tweets
28 Feb
The Lindsay Dentlinger affair has less to do with Lindsay Dentlinger’s behaviour than it has to do with people using the opportunity to signal their own victimhood and moral virtue. quillette.com/2021/02/27/the…
“Newly published research indicates that people who more frequently signal their victimhood (whether real, exaggerated, or false) are more likely to lie and cheat for material gain and denigrate others as a means to get ahead.”
“Victimhood signaling is associated with numerous morally undesirable personality traits, such as narcissism, Machiavellianism (willingness to manipulate and exploit others for self-benefit), a sense of entitlement, and lower honesty and humility.”
Read 6 tweets
25 Feb
Looking at the books of a large restitution trust. It owes SARS R125 million and can’t pay. Between them, all the entities that own restituted land likely owe SARS, Eskom, water boards and local municipalities several billion rand.
Sustainability is not a big thing in the DRDLR.
Most of these entities were just sent on their way, without any capacity or in the case of smaller entities, even the resources to put in place any appropriate governance. Most trustees or CPA committee members have no skills or experience in governance, so they fail.
It would have been so easy for government to do a deal with an audit firm to provide a basic but independent administration and to compel the trusts and CPA’s to use them. To keep records and minutes, prepare budgets, give advice on contracts and control the banking.
But no.
Read 5 tweets

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