BizNews Radio

South Africa's Finance Minister, Enoch Godwongdwana, is set to present the medium-term budget policy statement, bringing updates on economic forecasts, budget adjustments, and necessary spending changes. However, Stanlib's Chief Economist, Kevin Lings, warns that the upcoming mid-term budget won't bring good news. Lings, in an interview with Biznews, highlights a significant deterioration in South Africa's fiscal health since the February budget. He believes that the initial projections were overly optimistic, and government spending remains unchecked. Lings anticipates a R60 billion revenue shortfall and approximately R25 billion in overspending. He expresses scepticism about the government's ability to enact substantial changes to regain investors' trust. Lings rules out staff or salary cuts in the government and believes social payments won't be reduced during an election year. South Africa, he said, is heading in the direction of a fiscal cliff. Flags are going up and he urges the government not to wait for a crisis, as it did with Eskom, but to act proactively. Ling said the market is already concerned about these deteriorating fiscal parameters and the lagging tax revenue. If South Africa however can enhance its growth rate and eliminate load shedding, the country can attract substantial foreign investment.

Magnus Heystek of Brenthurst Wealth Management knew within minutes that the investment scheme that has lost investors billions was “rubbish” - and he was able to advise a client to pull R3 million to safety. That is revealed by Heystek in this interview with BizNews on one of South Africa’s biggest Ponzi schemes. Investors have been counting their losses ever since the scheme’s mastermind Craig Warriner - dubbed South Africa’s Bernie Madoff - handed himself over to police.  A court has now ordered the sequestration of the BHI Trust.  Heystek shares a copy of the BHI Trust and Plus application forms which clearly states under Terms and Conditions, Point 12: “The investor acknowledges that he understands that the investment is not registered under any law and is unregulated.” Heystek points out: “It says there clearly this is a very dangerous investment scheme.”

The Renergen share price has been hit by a variety of factors lately, most recently by social media attacks and the poor trading statement last week. But the real story remains intact - a $1bn Helium plant in the Free State that has the funding and requisite licences. In this interview, Renergen CEO Stefano Marani provides context for his company’s 45 000 shareholders, suggesting they consider the company’s real story, which is its goal of using SA’s plentiful natural reserves to become one of the world’s leading producers of Helium. He spoke to Alec Hogg of BizNews.

There are measures in place to ensure that South Africa’s national election next year is not marred by the controversies that resulted in the recent election in Zimbabwe being declared not free and that fair. That assurance comes from Mawethu Mosery, the Deputy Chief Electoral Officer of the Independent Electoral Commission (IEC) of South Africa. Her says the IEC will get around possible controversies by the inclusion of all political parties “every step” in the preparation of the election; allowing litigation to be taken through its fullness; and “definitely making sure that political contestants have people who are watching the process for them, the party agents who are there throughout from special votes through to counting and signing off the results slip”. - Chris Steyn

Critical facts are emerging on the R3bn Ponzi scheme operated since 1999 by St Stithians old boy Craig Warriner. When the fraudster needed fresh funds to keep the scam rolling, he expanded out of the original well-heeled Sandton private school base into a broader middle-class group of retirees who depended on a monthly income stream and thousands of mainly Coloured and Indian ‘investors’. The increasingly desperate scam was funded through enablers that included broking firm Global & Local, which earned up-front commissions of a reputed 5% on the money injected into the Ponzi. In this interview, an investor who asked not to be named, explains how he got sucked into the fraud - and how Global & Local geared up its involvement with Warriner’s BHI Trust by purchasing books of clients from smaller brokers. The victim, who lost R6m, spoke to BizNews editor Alec Hogg.

Christian Ashcroft, the St Stithians old boy once blinded by admiration for SA’s version of Bernie Madoff, became trapped in a devastating Ponzi scheme orchestrated by his one-time hero, fellow school alumnus Craig Warriner. Entrusting Warriner with his entire inheritance, Ashcroft was left grappling with betrayal when the truth was unveiled. As one of two trustees of the dubious BHI Trust, he sought legal guidance from attorney Caitlin Gottschalk, fearing potential liability and desperate to reclaim lost funds. This gripping saga unravels layers of deceit, exploring the fine line between trust and betrayal. Gottschalk spoke to BizNews editor Alec Hogg.

The billions gambled away by self-confessed Ponzi operator Craig Warriner were sourced through high-profile financial companies, whose endorsement provided the credibility the St Stithians old boy’s criminal enterprise needed. In this fascinating interview, Pretoria attorney Werner Cawood the only victim present when Warriner appeared in a small Katlehong municipal court last week, explains what happened there - and how his firm was sucked into investing with the fraudster’s front company, BHI Trust. Cawood is representing over 100 fellow victims and has applied for the sequestration of the BHI Trust to protect whatever remains of the operation run out of 4 Gremlin Road in Sandton - including data that will implicate the enabling companies. He told Alec Hogg of BizNews that this will help victims go after them

Tashas, a beloved brand in South Africa, grew from a single restaurant in Atholl, established with money from a loan shark, to 15 locations across the country. In 2019, Natasha Sideris and her brother Savva bought back Tashas from Famous Brands, establishing Tashas Group. This international hospitality company would soon have 10 brands under its umbrella, including the Flamingo Room by Tashas, Avli by Tashas, Bungalo34, and the World’s Top Galaxy Bar. The group first expanded overseas to the Middle East, establishing a presence in Dubai, Abu Dhabi, and Saudi Arabia. Now, they are venturing into the London market with a Tashas opening at Battersea Park Power Station at the end of November 2023. In an interview with Biznews, Sideris shared her apprehensions about opening a restaurant in the competitive London market. They plan to bring their first restaurant, Atholl Square to London with its South African flavours and interior design. Like other South Africans who have come to London, one of the biggest challenges is staffing. However, Sideris is adapting to a younger generation with different expectations. She also discussed her decision to part ways with Famous Brands in 2019, how South African staff form the backbone of her overseas teams, and her plans to expand into every major world city and launch a homeware collection.

In a captivating episode of Fantasy Fund Manager, BizNews’ Stuart Lowman speaks with Garreth Montana of Corion Capital and Kanyane Matlou from Terebinth Capital. The duo discuss the intriguing trend of company delistings, highlighting the reasons behind firms opting to delist. Matlou provides a detailed insight into his day-to-day tasks as a senior portfolio manager, sharing the nuances of the listed property market. They delve into the changing dynamics of the South African property sector post-COVID, emphasising regional disparities and gearing comparisons. As the Fantasy Fund competition nears its end, both guests share gaming strategies and underscore the importance of long-term vision over short-term market noise. Remember, each dawn of Monday is your chance to pitch your winning stocks. With enticing prizes awaiting, the game is on. Rally your comrades and head to www.fantasyfundmanager.co.za to register—big thanks to our platinum sponsors, Sharenet, Terebinth Capital, ClucasGray Asset Management, and MoneyBetter. And mark your calendars: Subscribe now to our podcast to keep up with every episode.

Ranmore funds founder Sean Peche shares a financial insider’s perspective of the massive scams that hit this week - with practical advice to guarantee you never get caught up in these fraudulent schemes. Peche, who has spent his career in the sector, also analyses quarterly results released this week by Wall Street’s ‘Magnificent Seven’ - the Big Tech stocks responsible for most of the market’s gains over the past year. - Alec Hogg