/ 14 November 1997

Government spending ‘still too high’

FRIDAY, 1.30PM:

GOVERNMENT spending in October once again exceeded the 6,1% increase expected by finance minister Trevor Manuel for the 1997/98 year, with spending since March up 10% on last year’s figure for the same period.

While the ministry had expected an 11,1% rise in revenue, the real figure for the first seven months is 8,4%. Finance Director-General Maria Ramos said on Thursday the deficit is still expected to stand at 4% of gross domestic product (GDP).

Provincial finance departments are expected to meet soon to discuss expenditure cuts.

BUSINESS BRIEFS

SAB IN CHINA CHINA Resources Enterprises, in which the South African Breweries holds a 49% stake, has bought 90% of the shares in Sichuan Yatai Brewing company. This is the fourth brewery in China that SAB has bought into, and puts SAB’s production capacity at over 5-million hectolitres per year.

TRADE SURPLUS TRADE and Industry Minister Alec Erwin said on Thursday he expects South Africa’s export figures for the this year will stand at R154,38-billion and imports at R129,61-billion. This puts the estimated trade surpls to R24,77-billion, almost double its current figure.

NDHLELA FORMALLY SUSPENDED TRANSNET executive director Joe Ndhlela was formally suspended from his job this week, pending the results of a disciplinary hearing into his behaviour. Ndhlela allegedly bugged his colleagues offices and has also been charged with financial misconduct.

MUNICIPALITIES TO REPORT REGULATIONS promulgated in the Government Gazette on Friday make it compulsory for all municipalities to report publicy on their financial affairs, with detailed accounts of their debts in rates, water, electricity , refuse, gas and sewerage service.

MTN’S CASE DISMISSED THE Pretoria High Court on Thursday dismissed a challenge by cellphone network MTN brought against a 1986 government notice prohibiting restrictive practices such as horizontal price collusion, collusion on market sharing and conditions of supply, and collusive tendering. The court dismissed the challenge with costs.