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SATIB Awarded the 2009 Ai
Africa Investor (Ai), the pan-African investment group, has announced the highly acclaimed winners of its annual Tourism Investor Awards. Safari & Tourism Insurance Brokers won the Business Travel Insurer of the Year Award; Grant Thornton South Africa was judged best of the Tourism Investment Advisor category, and this year’s newest category, Tourism Investor City of the Year, was won by Cape Town.
The Awards were presented at a high profile ceremony hosted in association with the Government of Mozambique on Friday 27 February that was opened by Hon Fernando Sumbana, the Minister of Tourism of Mozambique. Hon Najib Balala, Minister of Tourism of Kenya and Hon. Catherine Namugala, Minister of Tourism of Zambia attended the evening as well as other leading international tourism figures. Hon Sumbana received special acknowledgement for the immense achievement of successfully launching the new Mozambique tourism brand. The launch took place on 26 February, the day before the Ai Awards, and he was awarded the International Personality of the Year Award Alongside him, FIFA president Sepp Blatter received the Personality of the Year Award.
The shortlisted submissions and candidates in 15 Awards categories were judged on the basis of key financial indicators, the sustainability of projects, and major value added contributions. All winners faced down significant international competition to emerge as definitive leaders in the tourism industry.
The prestigious African Tourism Minister of the Year Award was presented to Hon. Najib Mohamed Balala, of Kenya for his leadership and efforts to attract investment into the Kenya’s Tourism sector. The Government of Mozambique in partnership with the International Finance Corporation (IFC) earned the Tourism Investment Programme of the Year category for developing one of Africa’s leading tourism investment initiatives, the Mozambique Tourism Anchor Investment Programme.
South Africa, the largest domestic investor on the continent, had an exceptional evening and took home no less than seven Awards. Household name Sun International took first place in both the Hotel Investment of the Year and Hospitality Management Team of the Year categories while its founder Sol Kerzner’s holding company Kerzner International Holdings won first place in the Business Resort of the Year Award.
Africa investor’s Vice Chairman Hubert Danso commented; “the calibre and commitment of the winners signals genuine hope for Africa’s capacity to employ tourism investment to enhance the continent’s global competitiveness. True to its role as founding pioneer of NEPAD, South African investments across the continent are set to deliver significant development.”
The Winner of the TI 2010 Legacy Investment Award was especially competitive but the collaboration between the Fédération Internationale de Football Association (FIFA), African Union (AU) and United Nations (UN) emerged as the clear winner.
The winner of the Business Airline of the Year category, Egypt Air, was selected for its significant investment in tourism development, demonstrating its competence as an operator and confidence in the African air travel market; and Angola’s National Agency for Private Investment (ANIP) excelled, winning the Tourism Promotion Agency of the Year Award.
The Awards followed the one-day Tourism investor Summit, which reviewed the key developments and issues impacting Africa’s tourism investment landscape, including how to improve the investment climate for tourism projects; tourism investment opportunities in Mozambique; opportunities for the southern African region generated by the 2010 FIFA World Cup; tourism-linked infrastructure and construction opportunities and luxury and eco-tourism projects in Africa.
Source: Ai by Shanna | 02 March 2009 |

SATSA Eastern Cape Chapter ChairJohn Stapleton, SATIB Eastern Cape branch manager has been elected to the position of Chairman of the SATSA Chapter for the Eastern Cape. Congratulations John. The SATIB Team are behind you in your efforts to make a positive contribution to and grow this worthy icon of credibility in Southern African tourism. Recession busting tipsSATIB Group Services MD, Kevin Watson shares the following recession busting tips:
- Don’t panic. You can’t sit still, but you also don’t want to swerve like a drunk on ice skates. Cycles happen. Sometimes they happen hard, but good times come back around eventually.
- Cut fat, not muscle. And marketing is muscle. A slowdown is the ideal time to snatch up market share.
- Don’t water down your sales message to “go wide.” When you’re desperate for customers, it’s easy to try widen your market appeal. Stick to your focus. Just get better at it.
- Watch out for “discount training.” If you keep offering “special deals,” eventually the deals are no longer special. And all you’re doing is training your customers to learn to wait for the next deal instead of buying right now.
- Don’t ignore the facts, just have a plan. You can’t wish away the economic crisis by ignoring it. Mention it to your employees, but do so in the context of showing leadership on how to get past it.
HR UpdateWelcome to:Charmaine Pratt, has joined the SATIB Head Office Team to head up SATIB Group Services Human Resources. For the past twenty years Charmaine has been working at SAA where she was responsible for the HR function of the International and expatriate staff worldwide. Charmaine is happily married with two children who keep her busy with all their activities. Her hobbies include baking and reading. Malize Van Schalkwyk, has joined the SATIB Western Cape Team in the position of Internal Broker. Malize has been in the insurance industry for the past five years and is also a qualified massage therapist. Malize was born and bred in Cape Town and absolutely loves the city. She is happily married and has a 12 year old daughter. Her hobbies include bass fishing and boogie boarding. Staff NewsCongratulations!Congratulations to Janisha (Claims) and Darel Govender on the birth of their baby girl.
Baby Govender was born on Thursday 26 February 2009 at St Augustine’s Hospital, at a healthy 3.7kg. Wedding Bells!Congratulations to Jill Feirrera (Underwriting) on her engagement to her fiancé Colin Fraser. SATIB wishes you both heaps of happiness, joy and love. Birthday Celebration!Rose Kranz (Accounts) celebrated her 60th Birthday on 09 February 2009. To celebrate her birthday, SATIB Head Office threw an after work party. Shoes being one of Rose's loves, her daughter organized a fantastic "shoe" cake! Welcome to the SATIB Tourism Risk Team The SATIB Team welcomes the following discerning clients who have entrusted their insurance broking and claims handling to us: Africa’s Best 258 Ltd (Marsh Rose Mall)
Comfort Zone Tourism & Travel CC (Shuttle Service)
Cornwell General Services CC (Tour Operator)
Golden Route Africa CC (Tour Broker)
Kafue Horse Safaris
Livingstone Visual Arts Theatre
Mahikeng (PTY) Ltd (Wildlife)
McMaelyn Hiring CC (Tourism Service)
N&B Concept CC (Wildlife)
Speirs Tours CC (Tour Operator)
Travelsmart South Africa (Tour Broker)
Villa Allandrea Tours & Accomodation CC (Holiday Resort)
Wilderness Safaris (Pty) Ltd (Personal)
Wildlife Africa Conservation Team / Africa Conservation Team t/as SATIB accoladesThe following notes of appreciation were received from clients during February 2009, which we share with readers to serve as an inspiration to moving service levels from Good to Great: To: Debbie Freimond
(Claims) “Many thanks again for your follow up and fantastic service we always receive from your team at SATIB Risk Solutions.” Gerda Dehrmann Mirage Executive Transport
To: Marilize Croeser

(SATIB Gauteng Senior Account Executive) “Many thanks for your very prompt and efficient response.”Beverly Sellars 154 Mabalingwe (Pty) Ltd
To: Yolande Lambert

(SATIB Western Cape Administration Manager) “Thank you, you are extremely efficient.”Mike and Jason Lewis Destinations
To: Patricia Khumalo

(Claims) “Thanks so much for the prompt payment and super efficient service!”Heidi Tuningi Safari Lodge
Chairmans' AwardThe nominees for the Chairman’s Award for February are: Denise Lundin, Bo Langkilde, Carla Gillham, David Basson & Rohayne Singh and Yolande Lambert & Arusha Naicker, who were nominated by their peers in the following emails:
“Denise Lundin (Head of Accounts) for long hours and persistence in getting things done.” Kevin Watson (SATIB Group Services Managing Director)
“I’d like to nominate Bo Langkilde (Marketing) for the Chairman’s Award. She’s always willing to assist us in more ways than one and finds so many ways of using her initiative to get the job done. Nothing is too much trouble for her no matter how busy she may be and she always retains her enthusiasm and positive behaviour. In my opinion one of Bo’s best qualities is her civility towards fellow colleagues. Keep up the great work Bo! Werner Prinsloo (SATIB Western Cape Regional Branch Manager)
“I would like to nominate Carla Gillham (Head of Underwriting) for the Chairman’s Award. With taking over TRUM she has had quite a few challenges but nothing stops her or gets her down and she is always ready to help and give advice (even if you ask her the same question a hundred times). With the queries and agreements that I have had she has really gone the extra mile without you even having to ask. Thank you Carla for everything and we really do appreciate it.” Arusha Naicker (SATIB Western Cape Internal Underwriter)
“I nominate Carla Gillham because she’s easy to work with, efficient and gets things done, she makes a decision and stands by it. She knows the products well and if always willing to help out.” Stephen Weller (SATIB Kwa-Zulu Natal Branch Manager)
“I would like to nominate Carla Gillham for the SATIB/TRUM chairman’s award. She takes enormous pride in her work, and always leads by example. She has an amazing ability to offer solutions to problems, and is always willing to assist where she can. With her sound product knowledge, and expertise, she is one above the rest of us and I believe is truly deserving of this award. Thank you for always doing more than what’s expected of you.” Stacey Elliott (SATIB Kwa-Zulu Natal Internal Underwriter)
“I would like to nominate two members of staff who worked on the Google Earth Mapping project. David Basson (Marketing) and Rohayne Singh (Systems Administrator) have achieved a phenomenal amount in a relatively short space of time, and the project, once fully completed, will ensure that SATIB, TRM and TRUM achieve a lot of exposure within the London market. I was very impressed with their enthusiasm and the effort that they expanded in achieving the deadlines that had been set. Well done to both of them and my sincere thanks.” David Pratt (Managing Director)
“I would like to nominate Yolande Lambert (Administration Manager) and Arusha Naicker (Internal Underwriter) of our Cape Town branch for the February Chairman’s Award. Both individuals have performed extremely well under very testing circumstances during the past couple of months and in doing so managed to keep our service levels at the expected SATIB standard even though we have been one Internal Broker short. I think both thoroughly deserve to share the nomination.” Dieter Prinsloo (SATIB Western Cape Director)
Des Langkilde, Group Marketing Director presents Carla Gillham with her voucher |
Note from SATIB Chairman, Brian Courtenay: "I also work a lot with Carla – she (at a tender young age) is really rising to the occasion. I think Carla Gillham should be February 2009 recipient."
Congratulations to Carla Gillham, who has been selected by SATIB Chairman, Brian Courtenay, as the recipient of the February 2009 Chairman’s Award, Carla received a R250 Woolworths Shopping Voucher for her accomplishments. About the SATIB Chairman’s AwardThe Chairman’s Award is an internal staff recognition initiative, whereby SATIB Team members are nominated by their peers on a monthly basis for consideration and selection by the Chairman as the recipient of the month. In adjudicating the nominees, the Chairman refers to the nomination motivational statements submitted, which most closely align with the SATIB Team Commitment Charter in arriving at a decision. Each quarter, the recipients of the preceding three months are adjudicated to arrive at a winner for each of four quarterly award nominees, who then stand a chance of winning the Annual Chairman’s Award and Floating Trophy. The recipient of each monthly award receives a Woolworths shopping voucher to the value of R250 in recognition of their accomplishment while the winner of the annual award receives a Floating Trophy in addition to a R1000 shopping voucher. Staff BirthdaysDes Langkilde 18
Elizabeth Williams 24
Yvonne Inglis 30
Events Wine of the month Bonnievale Cellar - Sauvignon Blanc 2008
On the tongue….. An abundance of ripe and tropical fruit flavours, crisp and fresh - very elegant, very special.
What’s this wine all about ... Planted east west to protect the grapes from direct sunlight, slopes face into the south-easterly wind to keep vineyards cool. Handpicked on select days after a few days of cool weather. Skin contact for 24 hours before cold fermentation to extract all possible fruit flavours.
Nice to have with….. Excellent with all dishes including curry and spicy foods, not recommended with desserts.
Drink or Keep ….. This crisp wine drinks well now and will remain enjoyable after a year.
What will this set you back…….. Well priced from around R 25-00 per bottle
( All information courtesy of Bonnievale Cellarand of course, your two ardent wine lovers Dieter & Werner )
Reflecting Light for EnergyIt’s really not that hard to build a house that needs little, if any, source of heat other than the Sun, operating appliances (like the heat from a refrigerator), and the warmth radiating from our bodies. Thick, heavily insulated walls, airtight doors, and tightly sealed windows aimed mostly at Old Sol should hold that heat in on all but the most frigid days. That simple formula, plus a few other ingredients (like the inclusion of an air-to-air heat exchanger to bring in fresh outside air without the loss of heat) is pretty much what the spreading Passivehaus effort from Europe is about to build self-heating homes.
But people seem to be very conservative when it comes to homes. Even when they buy or build new homes they prefer homes that look old or fit into a traditional style sprinkled with modern features. Houses built for passive solar efficiency, with big windows facing the Sun and little ones on non-sunny sides look anything but conventional. It is, after all, the look of our windows and doors that help us define the style of our homes inside and out. (Window manufacturers, correctly, remind us of this over and over again.)
Yet if the goal is to have a home that is heated by the Sun through windows, then sunlight will have to be brought to windows that have no direct exposure.
The world’s largest solar power purchase to date has been announced by Southern California Edison and BrightSource Energy. Within the next few years BrightSource will be building solar power plants that employ mirrors to reflect and concentrate sunlight on a single receiver. Temperatures at the receiver end will get rather high, as you can imagine, enough so that water will be boiled to make steam that will drive turbines to generate electricity.
The power plants that BrightSource plans to build in the California desert, will rely on hundreds of heliostats to keep light focused on the receiver throughout the day as the sun arcs across the sky. With the wonders of tracking devices made of computer controls and electric gear motors, the mirrored heliostats can be kept in perfect alignment with the receiver from dawn to dusk.
While it wouldn’t be a good idea to build a solar thermal power station in your backyard, it is now possible to buy one or a few heliostats that are technically similar to those to be used in California. The heliostats now offered by Practical Solar of Boston, Massachusetts, can be used to reflect and direct sunlight to the dark side of a house to those windows, and the rooms within, that will never have direct sunlight. The reflected sunlight can add daylight to a room where there was none before or to heat it. The company says that on a clear day (even in winter) each heliostat can reflect 600 watts of heat and the light output equivalent to forty 100-watt incandescent bulbs. Each heliostat delivers 3000 times more power than it consumes in its tracking operation.
The company’s software that keeps the heliostat tracking the Sun can drive up to 200 units individually for separate targets. The software includes timer settings so the heliostat can be switched on and off during the day. Aside from heat and natural lighting, the heliostats may eventually be teamed up with photovoltaic cells for concentrated solar generated electricity.
Practical Solar’s heliostats can be installed by handy homeowners and are of course not limited to homes. Any building that needs more daylight and would benefit from clean solar heat could employ one or multiple heliostats.
The price? Right now under $1000 per unit. The control system with software, driver box, cables and sighting tool under $500.
Source: www.green-energy-news.com/ Don’t Store Co2, Put It to WorkAccording to a new report “State of Polar Research”, by the World Meteorological Organization (WMO) and the International Council for Science (ICSU), glaciers in Antarctica are melting faster than previously thought. The meltdown covers a wide area, too. With the current projection of Antarctic ice turning to water, global sea levels could rise 3 - 5 feet by the end of the century.
According to the Associated Press, the head of the Intergovernmental Panel on Climate Change (IPCC), Rajendra Pachauri, has told a U.S. Congressional committee that the Earth has about six more years at current rates of carbon dioxide pollution before it is locked into a future of severe global warming. If part of the game plan to cut carbon emissions is to capture and sequester them, it might be prudent to step up the pace a bit. Or find a better, quicker solution such as turning carbon dioxide emissions from power plants and industrial facilities into useful products.
If an alternative to carbon capture and storage (CCS) is to make something with CO2, then the China National Offshore Oil Corporation (CNOOC) is already doing just that.
In a project that began in 2007, CNOOC has begun turning carbon dioxide into carbon dioxide degradable plastics. The product, utilizing a patent developed by Changchun Institute of Applied Chemistry and the Chinese Academy of Science, is a copolymer, a biodegradable material widely used in medical, agricultural, industrial and other fields.
The operation will use 2100 tons of carbon dioxide each year to make 3000 tons each year of the degradable plastic.
While it seems possible that as the plastic degrades it releases carbon dioxide once again, with no long term reduction in atmospheric carbon dioxide, is it possible that non-degradable plastic (like most plastic) could be made instead? Who knows? If so, maybe carbon dioxide plastics could become a way to sequester the greenhouse gas. At the end of life, products made with such a polymer could be recycled or stored in landfills awaiting the day when they could be dug up and used again or converted into fuels, which is now possible.
In another industrial project CNOOC is also now using carbon dioxide emissions to make liquid food grade carbon dioxide used in the production of carbonate drinks, a.k.a. soft drinks. In a project started at the beginning of 2007 the company recycles 24 million cubic meters of carbon dioxide emissions to generate liquid food grade carbon dioxide and dry ice. Annual production capacity is 30,000 tons at its Haikou facility. The first tankful of liquid food grade carbon dioxide processed from emissions was shipped to Hong Kong on the last day of 2008.
Carbon dioxide emissions turned into plastics and soft drink fizz are two ways to put the gas to work instead of pumping it underground. Carbon Sciences, Santa Barbara, California thinks CO2 should be used as a basis for methanol. The company says it has a proprietary biocatalytic process that could be employed at coal-fired power plants to convert carbon emissions into the basic fuel. The methanol could be used directly or converted to gasoline, butanol and jet fuel. Of course carbon emissions would occur once the fuel is burnt, but the new source of fuel would displace others thus lower carbon emissions overall.
The company has filed the first in a series of patent applications protecting the company's novel and scalable biocatalytic process to transform CO2 into liquid fuels. The patent application, "A Biocatalytic Process and System to Transform Carbon Dioxide into Methanol," was submitted to the United States Patent and Trademark Office on February 17, 2009.
Source: www.green-energy-news.com/ Pretoria to get SA's first 'green living precinct' An artist's impression of one of Menlyn Maine's eco-friendly buildings. |
Construction is set to begin in Pretoria on a multi-billion Rand development that will be South Africa's first "green living precinct". Known as Menlyn Maine City Precinct, the 230 000m2 multi-purpose facility is the first building in the country to be registered with the newly formed Green Building Council of South Africa. The council works to promote environmental best practice in the design, building and operation of buildings in South Africa. Similar to existing urban precincts or micro cities such as Johannesburg's Melrose Arch, Menlyn Maine will consist of retail, office, hotel and residential space.
Construction of the facility will adhere to new urban design principles while remaining strongly environmentally conscious.
According to Engineering News, developers hope to achieve a 30% reduction in energy use by employing green building techniques. These include the use of locally produced or recycled products and the implementation of water cycling and recycling within certain buildings of the precinct.
The developers will encourage people to maximise the precincts offering as a living, working, eating, shopping and playing space, so as to reduce the need for travel by car, thus contributing to carbon emissions reductions.
MD of Menlyn Maine Anton van Wyk says "The beauty of Menlyn Maine is that it is designed around ease of accessibility for customers and employees alike. Situated close to employees' homes and essential services it removes useless hours spent in traffic, which makes more sense from an environmental perspective, and results in happier and more productive employees and customers."
The precinct will also boast high technology features such as number plate recognition technology for security purposes, as well as intelligent billboards, which will communicate with devices such as cellphones to determine who is walking past, changing their display accordingly.
The entire precinct will be linked to an internal fibre-optic network, giving it an all-encompassing digital connectivity network.
"Anything from instant networking to wireless broadband services will be at everyone's fingertips within the precinct," says Van Wyk.
Work on the R300 million bulk infrastructure contracts has already started, and is scheduled for completion in August, reports Engineering News. The first sites are due for completion in late 2010.
Van Wyk believes that once complete Menlyn Maine will set international benchmarks in the development of green, connected micro cities.
"We must be globally recognised as the micro city heartbeat of South Africa, a technologically advanced, safe, modern, environmentally beneficial living city," he says.
Visit the Menlyn Maine website for more information.
Source: www.sagoodnews.co.za
Business liability risks and economic downturnRecession, redundancies, restructurings: in a downturn such as the world is experiencing right now, the norms we have been used to have disappeared. As the economic recession changes the way businesses operate—from staffing levels to capital expenditure budget—it also affects the behaviour of management, staff, suppliers and customers. Furthermore, the liability risk profile of any company can shift radically in a remarkably short period of time. So, are businesses ready for the changing exposures as they attempt to adapt to the downturn? Directors’ and officers’ exposures Growing economic uncertainty and an apparent appetite for class actions have spurred an unprecedented surge in demand for management liability insurance among companies, according to the insurance broker Marsh.
Marsh says it anticipates more litigation from disgruntled employees and shareholders. Enhanced scrutiny from regulators, who are collaborating across borders, is piling the pressure on top executives, it adds.
According to Marsh, two years ago only 10% of FTSE 250 companies were buying directors’ and officers’ (D&O) insurance to protect the personal assets of their directors: today, the figure is nearer to 50%.
Terms and conditions: fit for purpose Matthew Rolph, a managing director of Marsh’s financial and professional practice, says: “As the economy deteriorates the likelihood of litigation increases. We have seen that companies buying insurance are less concerned about price than ensuring that the terms and conditions of their cover are fit for purpose. Increasingly, this includes a much greater emphasis on the personal liability of directors.”
Legal claims brought by insolvency practitioners against directors will be the biggest source of credit crunch related claims in the UK and Europe, legal experts believe.
Edward Smerdon, a partner at law firm Reynolds Porter Chamberlain LLP (RPC), said that an insolvency practitioner will often try to recover money for a company's creditors by bringing a claim against a company director for either a breach of duty of care, fraudulent trading or wrongful trading.
Redundancy risks The implications of redundancy are probably at the forefront of most people’s minds right now.
Unsurprisingly, companies can therefore expect an increase in grievances and employers’ liability (EL) claim notifications, according to Guy Malyon, Head of Casualty at Aon Global UK.
This is happening at all staff levels, from the shop floor into management positions, and the upward trend is being encouraged by the growing number of solicitors firms promoting their services on a no-win, no-fee basis.
Employers' liability For buyers of employers’ liability (EL) insurance, the outlook is somewhat contradictory: businesses could see a reduction in EL premiums as their wage rolls fall; on the other hand, Malyon says, if insurers experience increased EL claims activity combined with reducing exposures, premium rates are likely to increase.
An economic downturn can cause an increase in EL claim notifications linked to occupational injuries or disease.
When there is a recession, assets or processes that are not viewed as essential or productive can sometimes be cut, says Gary Marshall, group risk manager Polestar Group and head of the liability special interest group at UK risk manager association AIRMIC.
Businesses need to be careful when taking such action. Their first concern is to ensure the cutbacks don’t have repercussions for employees. Increased employers’ liability claims due to more accidents could soon follow.
Unfair dismissal When mass redundancies happen, there is a potential for employees to take legal action against companies for unfair dismissal.
Indeed, Hiscox released a press statement earlier this month saying the company had seen a "threefold rise in insurance claims over the last quarter from SME employers being sued by former employees.”
Be aware of regulations “Many SME owners will not necessarily have lived through a recession where redundancy has been a fact of working life and are unaware of what they need to do," Gary Head, SME expert at Hiscox , says in the release.
"All businesses should seek professional advice when it comes to making redundancies or they might find that what started out as a cost cutting exercise could cost them far more in the long run.”
Employers need to be mindful of the regulations and follow the procedures. If they don’t, they might find their reputation affected and at risk of legal action where the awards aren’t capped.
Corporate governance and disclosure Meanwhile, action by regulators is giving some businesses cause for concern. In the UK, a number of quoted companies are being probed by the Financial Services Authority over possible failures to disclose key trading data to the stock market.
City lawyers say they have seen a surge in inquiries by the financial watchdog about whether businesses kept investors properly informed ahead of profits warnings that caused shares to fall in value.
Renewed regulatory focus Lawyers say renewed regulatory focus on disclosure could lead to disputes with companies over what information should have been revealed and when, especially given the wider circumstances surrounding such decisions during the credit crisis.
The FSA’s inquiries have led to an increase in cases referred to its enforcement department for full investigation, people familiar with the matter say. Such probes could lead to executives being prosecuted for market abuse or fines for companies that break listing rules.
Pollution and products liability In an economic downturn, cuts in maintenance and capital expenditure can impact on all sorts of liability exposures.
Where measures are not in place to prevent spillages/leakages from processes or storage facilities, it could mean environmental liability claims, for example, AIRMIC’s Gary Marshall said.
Similarly, product liability and associated recall costs could result from a product contamination event.
Such exposures are pernicious in a recession because when budgets are squeezed, some companies may opt to buy less coverage, through lower limits or higher deductibles.
In some cases, companies may risk not buying cover at all. Environmental impairment liability (EIL) cover, for example, is sometimes seen as expensive and inessential. Such an approach could be shortsighted, particularly in the light of new European environmental laws, said Aon’s Guy Malyon.
Stay focused on liability risk Everyone feels under pressure to do more with less during a downturn. But those running businesses must not lose sight of two imperatives.
First, boards must always think through the full range of liability exposures that a changing business strategy brings, especially where cutbacks are involved.
Second, despite economic pressure and other competing priorities, CFOs should be in no doubt about the importance of investing in risk management and reviewing risk management controls at times like this.
Risk experts agree that reducing the focus on risk management in a downturn is a false economy at best—and at worst the financial consequences could have a very serious impact on the business.
Source: www.lloyds.com Companies face new political risks in 2009 Companies across the world will face new risks this year. |
Political instability in 2009 will be a significant fall-out from the credit crunch and the global financial turmoil, and companies across the world will face new risks from the deteriorating political environment in a number of regions. That was Aon’s message as it launched its 16th annual Political Risk Map this week, which analyses the political risks in 209 countries and territories. Miles Johnstone, Director of Aon’s Political Risk team, said: “This year’s map reflects how the impact of the credit crunch is shifting from being an economic problem to a political problem. When an economy is in downturn, the government has less resource available to deal with issues when they arise, potentially leading to political instability.” To reflect the increasing volatility and political risk, Aon created a new ‘Very High Risk’ category to its map this year, while a number of countries in Europe and Eastern Europe moved for the first time from the ‘Low Risk’ category into the ‘Medium-Low Risk’ category.
Specifically, Afghanistan, Congo DRC, Iran, Iraq, North Korea, Somalia and Zimbabwe moved into the Very High Risk category. In most cases these countries have seen an escalation of political violence and / or deteriorating economic conditions, exacerbated by the credit crunch and commodity prices plummeting.
Meanwhile, the European countries that moved into the medium-low risk category, including: Estonia; Greece; Hungary; Iceland; Latvia; Lithuania; Slovakia; and Slovenia, are countries that have the greatest exposure to the credit crunch. According to Aon, these countries funded their rapid expansion in recent years by borrowing large amounts of banking capacity and the supply of that capacity dried up as the banking crisis unfolded last year.
Roger Schwartz, Senior Vice President of Aon Trade Credit, said: “The credit crunch is now the source of this series of map downgrades which in many cases is supported by credit rating agency downgrades.”
Companies face new risks According to Aon, global companies will see new risks from potential supply chain disruption and resource nationalism, while the instability of global commodities could create a highly volatile operating environment in some regions.
In response, companies will need to assess how these evolving risks may affect their growth and profitability and determine risk management strategies to put in place to protect themselves.
Schwartz said: “Deteriorating political and economic risk conditions affect both corporates and financial institutions. Banks, for example, use trade credit and political risk insurance in order to leverage or increase their internal country credit limits.”
Aon said there has been a noticeable increase in the last few months in the number of companies seeking advice as to how to protect their businesses from various political risk events, with companies increasingly concerned about supply chain risks.
Johnstone cited the recent highjack of the Sirius Star off the coast of Africa as an example of how disruptions to major supply routes can seriously affect time-critical shipments.
Opportunities for insurers According to Hiscox’s Kidnap and Ransom underwriter, Guillaume Bonnissent, the Lloyd’s market is already responding to these new threats. For example, Hiscox has created a new Marine K&R wording to address the increased problem of piracy off the coast of Somalia.
Bonnissent said: “The world changes rapidly and we have to adapt our underwriting criteria as well as our terms and conditions.”
Other political risk mitigation tools include insurance for cross-border trade and investment as well as contract frustration policies, particularly suitable when trading in emerging economies.
Schwartz pointed out: “There is a growing trend for companies to have to prove that they have acted diligently and, more than ever before, this means balance sheet protection with a clear and dynamic political and economic risk management strategy.”
While political instability raises new challenges for global companies, Atrium’s War Underwriter, Bruce Carman, observes that it also presents new opportunities for Lloyd’s underwriters. “When there’s uncertainty, clients value the products we sell,” he said.
The Aon Political Risk Map is the product of views from top market practitioners including underwriters at Lloyd’s, market analysts, rating agencies, the OECD and analysis completed by Oxford Analytica.
Source: www.lloyds.com New traffic fine system to curb offencesJohannesburg's metro police have introduced a new traffic fine payment system, which is expected to make law enforcement and road traffic adjudication in the province more efficient. Known as Aarto (Administrative Adjudication of Traffic Offences Act), the new system was first implemented in 2008 in Pretoria by the Road Traffic Management Corporation (RTMC) - an agency of the National Department of Transport. Aarto will be launched throughout Gauteng in the coming months, with the rest of the country set to follow. Speaking at the Johannesburg launch event this week, chief executive officer of the RTMC Ranthoko Rakgoale said the new act would address the inadequacies of the country's present road traffic management procedures.
"The present system of dealing with traffic violations is inadequate…. Cases are known to be on the roll for long periods - in some instances up to two years - resulting in an untenable situation of justice long delayed being justice denied," he said.
The key aims of the Aarto are to: • establish a procedure for effective and expeditious adjudication of infringements • alleviate the burden on the courts of trying offenders for infringements • encourage the payment of penalties imposed for infringements • allow the alleged infringers to make representations • and to reward good behaviour through a merit points system
While the demerit system has yet to be put in place, the new traffic fine regulations are ready to be implemented in Johannesburg.
How it works Upon receiving an Aarto road traffic fine, the driver has 32 days in which to settle payment at a 50% discount. Options that are applicable at this stage include; arranging to pay in monthly installments, opting to be tried in court or electing another driver to pay the fine if the recipient of the ticket was not driving at the time of the incident.
Once this grace period has passed the driver will receive a 'courtesy letter' requesting full payment for the fine as well as the letter itself. The options above remain applicable.
If payment is still not made within the following 32 days, the driver then receives an Enforcement Order demanding payment for the fine in full, the courtesy letter as well as the enforcement letter. Demerit points are allocated and recorded against the driver's name. Once the Enforcement Order is served, none of the above options are applicable. The only option available is to apply for revocation of the Enforcement Order.
Finally if the driver fails to respond to the Enforcement Order, a Warrant is issued and handed to a Sheriff for immediate execution. The Warrant allows the Sheriff to enforce a number of harsh actions which include selling the driver's movable property to defray the penalty, fees and costs applicable, seize the driver's license or immobilise the driver's vehicles.
Japh Chuwe, the senior manager of Aarto, says that the system has already proved to be a success. "One of the key successes of Aarto implementation in Tshwane has been the reduction in the number of people electing to go to court. They simply find it easier to settle their matters administratively as provided under Aarto." "The Road Traffic Management Corporation and the Joburg municipality are confident that Aarto will be successful in its key objectives of reducing the strain on the criminal justice system and reducing the number of traffic accidents," he added.
Although Aarto was being implemented in parts of Johannesburg, outstanding fines issued under the Criminal Procedure Act would remain valid until they were finalised, said the city's Metro Police. Only infringements issued under Aarto would be adjudicated under the new process.
For more information on Aarto, visit www.aarto.co.za
Source: www.sagoodnews.co.za/ SCAM!Please take note of the latest scam! Emails received by taxpayer from an address refund@sars.gov.za with the subject line “Tax Refund” should immediately be regarded as a scam and IGNORED by taxpayers. Taxpayers must NOT provide their banking details as requested in the email.” Source: Received via Email from Palesa Malepe | South African Revenue Service | 10 February 2009
Major Global Hotel Operators Target SA Hospitality Industry  Situated in Cape Town's central city, the new 5-Star Oscar Pearse Hotel, which is scheduled to open in May 2010. |
While the global economic slowdown continues, South Africa's hospitality industry remains upbeat with ongoing positive growth reflected in the hotel market, and with major global operators clamouring to gain a presence, says Joop Demes, CEO of Pam Golding Hospitality. "At the outset of 2008 we noted the increasingly positive trend in this industry which was evident despite widespread panic regarding the oil price, inflation and electricity shortages and tariff hikes. Now, a year later, we remain extremely optimistic regarding the prospects for the hospitality industry in South Africa and its ongoing resilience," he says. "To understand why our country is faring so well when compared to the rest of the world we need to bear in mind that in South Africa overall approximately 91 percent of every single bed night that is sold in the hotel industry is sold to someone who lives in Africa. Over the past five years we have experienced exceptional growth in GDP and while this has slowed considerably, our economy is still growing. In addition, South Africa has two other unique global competitive advantages. Strong liquidity, and being host for the prestigious 2010 Soccer World Cup which takes place in less than 500 days," says Demes. During 2008, and for the third year in succession, the SA hotel market as a whole experienced a double digit increase in Revpar, i.e. revenue per available room, with 2008 up by an impressive 10 percent compared to 2007. There are some highly attractive areas to consider in terms of investment, generally referred to as 'honey spots'. Topping the priority list is Gauteng's 3, 4 and 5 Star market, which recorded an overall 22.8 percent increase for 2008 with the six-month period ended 31 December 2008 up by a notable 18.8 percent compared to the same period the previous year ? As quoted in a recent Smith Travel Research Global Survey.
"The constant growth of South Africa's hospitality industry and significant potential in a number of areas within the country is not unnoticed and has manifested itself with unprecedented interest from developers, listed property companies and institutions? During the past 11 months Pam Golding Hospitality and Tourism Consultants was engaged for 17 hotel development feasibility studies and we estimate that these alone will convert to R4.3 billion in investment which in turn will create 2 060 permanent jobs," adds Demes.
"In addition, Pam Golding Hotels is currently engaged in the facilitation of no less than nine new hotel developments in Cape Town. Combined with a number of other hotels that are currently being completed, we anticipate that over the next two years alone this will result in an estimated investment of approximately R4 billion, with the creation of some 2 500 permanent jobs. Nearly every major branded hotel operator in the world has registered their requirements and credentials with us in search of an opportunity to be present or to expand in Southern Africa.? Further to this, Pam Golding Lodges and Guest Houses are receiving an increasing number of enquiries for quality guest houses, boutique hotels and restaurants. Right now the time and place for investment in the hospitality industry seems to really favour South Africa.
"At present leases are favoured by a number of hotel operators, however, in our opinion this will change as and when South Africa experiences further much-anticipated reductions in interest rates? With a meaningful reduction in cost of capital, the appetite for private residence clubs and condominiums will also re-emerge and will feature strongly in the years ahead," adds Demes.
For further information contact Joop Demes on 082 883 2231 or email jdemes@goldinghotels.co.za.
Source: Received via email from Gaye de Villiers | On behalf of Pam Golding Hospitality | 12 February 2009 SA popular destination for Swedes South Africa is a highly rated travel destination among Swedes, according to the 2009 Global Travel Awards, held in Stockholm earlier this month. The prestigious awards ceremony is hosted annually by Travel News, an independent monthly tourism magazine for Scandinavian travellers. The panel of judges includes editors of the magazine as well as senior officials of the Swedish travel trade. This year’s awards took place at the Grand Hotel in Stockholm.
The judges gave South Africa an overall point score of 5.09 out of a possible 6 points. Thailand, with a point score of 5.18, won the “Best Country” award.
South Africa was placed ahead of six other destinations in this category - the USA, Italy, Spain, Greece, Turkey and Egypt.
Source: www.sagoodnews.co.za/ World Cup tickets on sale! The first tickets for the 2010 FIFA World Cup went on sale on Friday, 20 February 2009. FIFA has already opened its pre-registration services on www.FIFA.com, while national sponsor of the tournament, FNB, will be making it possible for local football fans to buy tickets at specific branches throughout the country. The 2010 World Cup is the first in the tournament’s 70 year history to ever take place on African soil. In order to see as many local fans enjoy the event, FIFA, tournament sponsors and the Local Organising Committee have drawn up a creative and inclusive ticketing plan. According to FIFA the ticket prices for the 2010 World Cup are comparable to 2006 prices with an average of USD 139 per ticket compared with USD 136 in 2006. The most expensive tickets will cost a hefty US900 (Category 1 ticket for the final) while the cheapest tickets will cost USD 20 (category 4 ticket for a group stage match). In 2006, the cheapest ticket cost USD 51.
The Category 4 tickets will only be available to South Africans. “FIFA and the LOC felt there was a need to offer a significantly cheaper ticket to meet the demands of grassroots football fans who might not otherwise be able to afford to attend a FIFA World Cup match and thus be part of this once in a lifetime experience,” said FIFA in a statement.
In addition, 120 000 free World Cup tickets will be distributed to South Africans through the FIFA Ticket Fund. Through the fund, some 40 000 tickets will be given to construction workers who helped build the 2010 stadiums while FNB will be giving away 16 000 tickets through the bank’s 2010 promotional activities.
The ticket sales that start this Friday mark the first phase in a total of five sales phases, with tickets being allocated by a random selection draw for over-subscribed matches and ticket categories.
The second ticket phase will run from 4 May to 16 November 2009. During this period, tickets will be attributed based on the order in which the application is received and, of course, subject to availability, says FIFA.
Tickets can either be ordered online through FIFA, by first signing up (for free) on FIFA Club. Alternatively South African fans can buy tickets through the FNB Visa Official Mascot Pre-paid card; the unique ticket payment card for those who are successfully awarded tickets through the official paper application forms handed in at FNB branches around the country.
Ticket prices 2010 FIFA World Cup
|
Match |
Category 1
USD |
Category 2
USD |
Category 3
USD |
Category 4
ZAR |
|
1 |
400 |
350 |
200 |
70 |
|
2 - 48 |
160 |
120 |
80 |
20 |
|
49 - 56 |
200 |
200 |
150 |
75 |
|
57 - 60 |
300 |
200 |
150 |
75 |
|
61 - 62 |
600 |
400 |
250 |
100 |
|
63 |
300 |
200 |
150 |
75 |
|
64 |
900 |
600 |
400 |
150 | For more information, visit FIFA.com
Source: www.sagoodnews.co.za DBSA grants R3.6m loan for extreme tourism in Soweto  Taking the quick way down the Orlando Towers |
An extreme activities centre based at the old Orlando Power Station in Soweto is set to become a fully fledged, multi-purpose, adventure tourism facility, with the help of a R3.6 million loan from the Development Bank of South Africa (DBSA). Known as Orlando Towers, the adventure centre first opened in August 2008, offering those brave enough a chance to take on the 'Big Swing' - a leap from one of the 100m-high Orlando Twin Towers culminating in a 40m free-fall between the towers. "Since our opening we have installed a basic facility at the Towers, but it is really a fore-runner of what we are becoming," says Orlando Towers founder Bob Woods. "The DSBA loan will allow us to take the site format further with more extreme activities as well as creating a pleasant tourism environment for those who don't have an appetite for the extreme."
The Orlando Towers team hopes to be running abseiling, bungee jumping, basic climbing and even inner-tower swings at the facility by June this year.
Phase two of the development will include entertainment facilities, such as restaurants and bars and will also lend itself to retail opportunities. Phase three will see the team open up one of the towers in order to recreate the typical environment found inside a Magaliesberg kloof, with large, vertical rock walls, landscaping, flora and water.
The DBSA believes that the tourism offering presented by the Orlando Towers will have spinoff benefits for Soweto.
"Adventure tourism is a major growth market around the world, and the creation of an adventure tourism facility will undoubtedly contribute towards Soweto's economic diversification and tourism attractiveness," says DBSA tourism specialist Kate Rivett-Carnac.
The idea to create an adventure tourism facility at the iconic Orlando Towers was born in 2000 when Woods' rope-access company, Skyriders, was called in to advise on suspension equipment for the painting of the towers.
"The towers are so beautiful. Everyone that goes up there, even just for a view, comes down so impressed. There is magic in them. We are just trying to find ways of bringing that out."
Source: www.sagoodnews.co.za/
PM Tsvangirai says Zimbabwe safe tourist destination  Prime Minister Morgan Tsvangirai |
The newly sworn-in Zimbabwe Prime Minister Morgan Tsvangirai has said the west and the rest of the international community are encouraged to come to Zimbabwe without any security fears as the nation is a safe tourist destination, reported ZBC News. Tsvangirai said this during a business meeting in central Zimbabwe city Gweru. He said the government is committed to revitalizing the country's lucrative tourism sector, saying they are already persuading the west to lift travel warnings issued against Zimbabwe. Tsvangirai said Zimbabwe is not at war, therefore there is no reason for the country to be described as an unsafe destination.
The west, especially Britain and Australia, have described Zimbabwe as an unsafe tourist destination, in some instances banning their cricket teams from touring the country.
Source: www.eturbonews.com/ Namibia projects tourism industry performance for 2009 At the request of the Ministry of Trade and Industry, Feneta gave the Namibia tourism industry an overview of sector performance in 2009 in the wake of the deepening global economic crisis. All of their conclusions are in general terms looking at all sub-sectors of the industry, accommodation, professional hunting, tour operations, car hire, tourism activities operators, tour guide bookings, and travel/booking agents. There is no doubt that the constant global news of job losses, losses to retirement funds, losses on the stock exchanges around the world, losses to big corporations and banks needing billions in bailouts has made the world leisure travel market nervous in all market segments. A holiday is a luxury. In hard times, luxuries are usually the first to be cut to save on expenses. That said, Namibia does not expect a slump or depression in their tourism sector, but they do expect a decrease in the steady five-year growth that the tourism sector has been experiencing, both in tourism product demand and in annual arrivals figures.
The tourism industry boom is over, but the industry is neither pessimistic nor fatalistic about 2009 given the current favorable exchange rates, lower fuel rates, and lower interest prime rates. Many tourism operations secure deposits and confirmed bookings (some are fully pre-paid) 6-12 months in advance; this means that some may have a substantial number of regular clients from wholesalers with whom they have existing business relationships, already confirmed for the 2009 peak season. It is still relatively early in 2009 and many clients could likely book later this year due to the uncertainty.
As of now, there are no mass cancellations in the tourism sector, in fact, the upper end/higher-end market has reported a few operators with a slight increase over last year's bookings. Namibian tour bus operators are already seeing declines in advance bookings for trips in 2009. These currently look like they will be down by 15-20 percent.
Professional hunters reports slower sales at the recent trade fairs. There were mixed reports with some outfits booking the normal level of hunts and others stating that their bookings were down as much as 20 percent. Some hunters are predicting a 3 percent decline in growth for 2009, with some foreign hunters postponing their Namibian hunts to 2010 to 'wait-and-see' before they commit.
The car hire industry does not project mass losses or job reductions. Many of the larger car hire companies provide most of the available rental vehicles in Namibia. These are usually booked to business clients and, at this time do not show major fluctuations in advance bookings (comparing this year to 2007). Those renting vehicles primarily to overseas self-driving leisure tourism clients may have a significant decline in revenues in 2009.
Tourism arrivals to Namibia in 2007 were up 11 percent over 2006. 2006 arrivals were 7.1 percent up over 2005. Overall arrivals for 2008 are expected to turn out to show an increase in arrivals of only between 3-5 percent (this is difficult to predict accurately as the first half of 2008 was showing a larger increase, with the second half of 2008, showing drop-offs of up to 25 percent), with 2009 projected to have increased arrivals of possibly 0-2 percent and some predictions are showing a 2 percent decrease in arrivals in 2009.
Fenata expects that the leisure and business tourists that do come could chose to be more cautious. They may stay for a shorter period of time, reduce the number of activities they book while here, stay in a 3–star facility rather than a 5 star, buy less souvenirs and reduce impromptu spending, fly economy rather than business class, or other cost-saving choices.
Fenata believes that tourism (demand growth) in 2009 in Namibia could likely be in line with international expected rates, 0-2 percent, down from 7 percent in 2008 (UNWTO, January 2009), on average.
They are confident that there will likely be no mass job cuts in the tourism industry in 2009. However, the rate of new job creation will slow; the extent will be difficult to quantify in order to make an accurate projection. Some in the industry, who usually hire temporary or seasonal employees, may not do this at all or in the same amounts, nor at the same time as before, particularly if clients are confirming bookings late.
Investment in the tourism industry, i.e., new lodge constructions, renovations, expansions, or new vehicle purchases for tour operations, etc.., will be down significantly in 2009. The amount of beds available in Namibia increased in 2008 over 2007 between 8-9 percent. This will reduce significantly in 2009 (to possibly a 0-3 percent increase in numbers of beds available). The industry will become more cautious about initiating new capital projects and wait to see confirmed bookings for 2009 before building new rooms, hiring new employees, buying new tour vehicles, or expanding office or other facilities.
In 2007, over 250,000 South Africans arrived in Namibia as tourists. The global crisis has hit South Africa to some degree, and there will be a negative impact on outbound tourists. However, on the whole, Fenata feels this will not be to the extent that it will cause a slump in demand from SA. In Namibia, the South African Rand can be equally spent without converting to a hard currency at the existing unfavorable exchange rates. Wealthier south Africans who still intend to take some kind of holiday, and who could have taken holidays in Europe or North America, may well decide to holiday in the region in 2009 to save money.
Fenata believes that Namibians will continue to travel around the country in 2009. 33 percent of all bed nights in May, 2008 were sold to Namibians. This trend of domestic tourism may increase as Namibians who take leisure holidays, also cut back on any overseas travel (due to the exchange rates) and may chose to travel within the country in the off-peak season where packages for domestic tourists are readily available.
In light of this information, Fenata recommended the following to the industry. They asked the industry to consider that now is not the time to invest in any new ventures without a serious re-think about projected market share and market exposure for that particular enterprise during a flat tourism growth year.
The tourism industry should focus on value-for-money pricing strategies and package deals for tour operators with advance advertising so that wholesalers abroad can advertise and sell them in time. But the industry should avoid price-slashing wars with each other. They should also avoid raising prices to attract the overseas clients (given the exchange rates) for mid-market products to the detriment of regional/local tourists. In the end, such pricing strategies are usually short-sighted, largely unsustainable and can lead to a deterioration of the positioning of Namibia's tourism products in the markets.
The industry should invest in marketing strategies aimed at the domestic tourism market, the SA self-driving market, and the regional ex-patriot market to fill the gaps caused by the decrease in overseas tourist arrivals.
The industry should look inwards at their existing products - take time to revamp, re-examine all running costs, invest in training for employees, position themselves in clearly-defined market segments to capitalize on the potential for growth in those segments.
Source: www.eturbonews.com Balala named Africa Tourism Minister of the Year  Kenya's tourism minister Najib Balala |
Kenya's tourism minister Najib Balala is the 2009 Africa Tourism Minister of the Year. Balala emerged top out of seven tourism ministers who had been short-listed for the award during the Africa Tourism Investors Summit and Award Gala held Saturday at the Joachim Chissano Conference Centre in Maputo, Mozambique. The event was organized by the International Pan-African investment group, Africa Investor (Ai) in partnership with the Government of Mozambique, the International World Tourism Organization (UNWTO) the International Finance Corporation (World Bank Group) and NEPAD. Its objective is to recognize the achievement of individuals, governments, business and organizations who have made an outstanding contribution to the growth of sustainable tourism investment in Africa.
Balala was picked by a panel of five judges chaired by Professor Geoffrey Lipman, Special Adviser of the World Tourism Organization.
Others were Ms. Irene Visser, Tourism Programme Manager at the International Finance Corporation, Mr Trevor Ward, the Managing Director of the W Hospitality Group and Ms Kate Rivett-Carnac of the Development Bank of Southern Africa.
The Minister was recognized for his efforts in leading the tourism recovery programme in Kenya in 2008 and raising Kenya's tourism profile as a global leader in sustainable tourism.
He was also rewarded for leading the implementation of government policy on promoting sustainable tourism.
Kenya and Gabon were cited as countries that have focused their resources on promoting their countries as eco-friendly tourist destinations.
The tourism investor summit and awards are designed to showcase Africa's opportunities and achievements to the rest of the world, collectively raise awareness about Africa as a tourist destination and reward groups developing the African tourism industry as a vehicle to drive sustainable economic growth.
The Africa Tourism Minister of the Year Award is the most competitive among 14 categories of awards.
This year, it had entries from African leading ministers including Najib Balala (Kenya), Shamsa Mwangunga (Tanzania), Nandi-Ndaitwah (Namibia), Fernando Sumbana Jr (Mozambique), Mohammed Boussaid (Morocco), Khelil Lajimi (Tunisia), Charles Xavier Luc Duval (Mauritius) and Marthinus Van Schalkwyk of South Africa who was the 2008 winner of the award.
Five other Kenyan organizations were short-listed for various awards but did not win.
They included the Kenya Tourism Board in the category of Tourism Promotion Agency of the Year and the Tourism Trust (TTF) under the Best Initiative in Facilitating SME Tourism Investment.
Other entries were Kenya Airways (Best Airline), Eagle Africa Insurance Brokers (Business Travel Insurer), Ol Malo Eco-Lodge and Trust (Sustainable Tourism Investment) and Nairobi City (Tourism Investor City of the Year).
"My victory and the recognition of seven other tourism entities from Kenya in the award show that Kenya is a major player in tourism development in Africa and the world. The award is an honour for the entire tourism industry in Kenya," said Balala.
Source: www.eturbonews.com/
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