PAGE 2 PAGE 3 PAGE 7 PERSONAL FINANCE// NEWS// INTERVIEWS// PERSONAL FINANCE// FREE LUNCH OF THE ADVISORS VILIFIED TIM NOAKES ON LCHF BEING SMART INVESTING WORLD IN SA - HEYSTEK DIET, COVID-19 WITH TAX BizTHE RATIONAL PERSPECTIVENewsDigest WWW.BIZNEWS.COM SATURDAY 01 MAY 2021 BIZNEWSCOM Michael Lomas corruption scandal BRIEFS Amazon sales no surprise, says Paul O’Sullivan surge 44% in ichael Lomas, a former “What [he] should actually be doing, is tendering his co-operation and voluntarily the quarter to Eskom contractor, was returning to South Africa to get evidence. If you volunteer to come back and you arrested in connection end March Mwith a R745m fraud relating come of your own steam, you’re not going to sit in prison while you’re waiting for to the Eskom Kusile power the trial.” plant. Corruption buster Paul Tongaat share example. He used the proceeds of O’Sullivan joined the BizNews price dropped Power Hour to share his thoughts crime to hire lawyers that were, on the arrest. Currently, South shall we say, flexible enough to African prosecutors are seeking come and attack me. Six weeks 24% Lomas’ extradition. A UK court later, [he] was arrested and charged will soon decide whether Lomas with the corruption which we had after SENS report has a case to answer in SA, reports investigated.” on debt covenants Bloomberg. According to O’Sullivan, Trindade started a company – now known By Jarryd Neves as the Tubular Group. In 2008, he made contact with Michael Lomas, More than offering him the opportunity to 1 billion UK-based businessman Michael come on board as a consultant. Lomas was arrested last week in Lomas acted as a consultant for Covid-19 vaccines connection with a R745m fraud, a number of years. “During that relating to Eskom and the Kusile period, I suppose, there were issues have been given at Kusile – which were a mixture of Power Plant. Lomas appeared in a Private forensic investigator Paul O'Sullivan around the world Westminster court where he was engineering and contractual issues.” granted bail at £100,000, according crusader from Forensics for Justice. 1998, Michael Lomas was the CEO O’Sullivan told Alec Hogg that to Bloomberg. O’Sullivan remarked that Lomas’ at that time. Lomas ‘sorted out’ a number Ex-Eskom His arrest and consequent involvement in this corruption case of issues, including putting the court appearance is in relation was of no surprise to him, citing the Read also: company’s BEE in place which, contractor notes O’Sullivan, they did not have. to a corruption case involving a fact that the pair had spoken less than ‘If I were in Jooste’s shoes, I’d arrested in payment of R745m to a company two years ago. fly to Germany’ – life in their “[Lomas] described Trindade as a called Tubular Construction “I flew to London and met with him prisons would be far easier micro-manager. He reached a point Projects. The National Prosecuting in November 2019. He unpacked than in SA, says O’Sullivan where the people at Eskom needed R745m Authority (NPA) has requested everything for us. I don’t want to say ‘financial assistance’. Lomas got fraud case that Lomas be extradited to South anything that’s going to prejudice his The corruption fighter has had drawn into that and I think that’s Africa. However, laws dictate trial, but clearly he had a lot to say dealings with Trindade before, where he crossed the line.” that a UK court needs to decide regarding [Antonio] Trindade and remarking “it’s become the modus whether the businessman should the other people – including Abram operandi of a lot of people involved Listen to the full interview SA's powership be extradited or not. Masango.” in corruption. When they come deal to cost Joining the BizNews Power Hour O’Sullivan explains that Trindade onto my radar screen, they try to get Paul O’Sullivan: ‘I will to weigh in on the matter was Paul used to work for a company called me off their radar screen – normally NEVER rest until they R218bn O’Sullivan, the corruption busting Group Five. When he resigned in with applications for interdicts, for have seen justice’ over 20 years Subscribe here for your weekly BizNewsDigest Subscribe now - CSIR 2 | SATURDAY 01 MAY 2021 WWW.BIZNEWS.COM NEWS Advisors are vilified in SA – Magnus Heystek he Johannesburg stock market has the article on BD and in tweets in the day perked up this year, sparking a following to ensure that I was seen as the DOWNLOAD THE FREE fresh wave of attack on investment main driver of this “creaking wreck”, a poor Tadvisors who have recommended offshore analogy if ever there was one. BIZNEWS.COM APP diversification. The most high profile of I therefore feel compelled to put this whole these advisors is Magnus Heystek, who debate in context. I leave readers to decide has been a household name since the 1980s for themselves. when, as an award-winning finance editor, But forgive me, as Mark Twain once said, for he introduced and developed the concept writing such a long reply as I don’t have the of demystifying personal finance to SA. time to write a short one. BN His ‘Making Money Made Simple’ is on many bookshelves, as are his other books Straw man argument on investment topics. Heystek has built It is an astonishing article in many ways, least a hugely successful investment company of all the “straw man” argument deployed, for Click on the links below to in recent decades: Brenthurst Wealth reasons I cannot understand, to the extent download your own free Management manages about R14bn of assets implying that certain financial advisors went BizNews.com App on behalf of individuals. He continues to around the country urging investors to cash in share his knowledge and insights, based on all when the rand was R19,35 to the USD and deep research, freely through his columns to take it offshore, thereby missing the 80% and appearances on radio and television Magnus Heystek upswing that followed in the year thereafter. with a view to empowering individuals to Boo-hoo, you all have eggs on your faces and make the right choices with their money. offshore advisors with egg on their face”. should be ashamed of yourselves. In this article, Heystek lifts the lid on how Now I know that columnists do not write I am not aware of any financial advisor individuals in the mainstream media and headlines, but the body of the article made it who went around publicly making such their commercial partners – dependent on very clear that Theobald is not a fan of offshore recommendations; neither did I or anyone sponsorship and fees from companies with a investing, as can be seen from the following at my company. vested interest in keeping your funds in SA – sentence: “So next time the ‘anywhere but SA’ The article fails to mention the upswing in up to the eventual dot-com crash in 2001, censor the view that offshore diversification bandwagon comes charging past, see it for equity markets all over the world during the how a diversified global portfolio can protect is necessary and promote ‘local is lekker’. what it is: a creaking wreck filled with those same period, with some offshore sectors rising wealth and protect asset values during times – Jackie Cameron who make a living selling the negative story.” more than 100% in USD terms. of great uncertainty. BizNews was quick on the draw and arranged But first some history. By Magnus Heystek a personal finance webinar on Friday the 16th I have been advising and managing offshore Click here for the full article of April, to which Dr Theobald was invited, investments ever since I started my first Earlier this month, Business Day published an but he declined to participate. advisory business way back in 1994, even Read also: article by respected columnist Stuart Theobald Nowhere in the article was I mentioned by before it was legal for South Africans to have Heystek: Investing in ‘cheap’ JSE is still with the headline, “Rocketing JSE leaves name but there were enough comments below offshore investments. I also saw, in the run- a bad idea, no matter how you slice it New SA hero Judge Ray Zondo is a keeper By Chuck Stephens* Capture. As history evolves into myth over they are big spenders, so Finance Minister cost budget too. But budgeting time seems long periods of time, South African folklore Tito Mboweni has closed the door to any to be unknown to the judges. The UK has Jack the Giant-Killer. Scandinavia will be filled with Tales of Zondo. He has additional funding. A vote of thanks to Deputy Chief Justice has Beowulf. Israel has King David who slew done us proud. Worse yet, our Judiciary knows nothing about Raymond Zondo. Hamba kahle, babe dragon- his tens of thousands – including Goliath. A few words come to mind as we think back Timing. They don’t realize yet that “justice slayer! The USA has Johnny Appleseed. Canada over his handling of the Zondo Commission… delayed is justice denied”. Cases keep going *Chuck Stephens is Executive Director of the has Big Joe Mufferaw. Iraq has Daniel who unrelenting… dignified… polite… tireless… on and on and on ad nauseum. Even Zondo Desmond Tutu Centre for Leadership and spent a night in the lion’s den, and Iran and courageous… soft-spoken… hard-hitting. is on his second extension – and way over writes in his own capacity Esther who saved her Jewish people from His days in the spotlight are ending soon.