A new poll of blue-chip companies shows only about half have a definite succession plan should their CEO or MD suddenly depart. The other half risk a potential leadership vacuum that could have negative effects ranging from a drop in share price and shareholder confidence all the way through to job losses and even the eventual failure of the business.
Last year's violent mine workers' strikes in South Africa that led to at least 46 deaths and the shuttering of some mines, made headlines around the world. On the surface, it was about a wage dispute, but the major catalyst that drove the miners to such violence and desperation was the fact that many of them are buried in staggering amounts of debt after taking out unsecured loans.
The remedy most pursued by employers facing unprotected strike action is to seek to interdict such unlawful behaviour from persisting. However, often the employees and the responsible trade union simply disregard the provisions of the interdict and this has sparked the debate whether such interdicts are rendered meaningless.
The near-certain decision by government to introduce a second "credit amnesty" after the spectacular failure of the first one in 2006-2007, will only provide temporary relief to deeply indebted consumers and drive many into even more profound indebtedness requiring debt counselling.
Neil Roets, CEO of national debt counselling firm, Debt Rescue, said that although the envisaged amnesty may remove millions of blacklisted people from credit bureau databases, it will in real terms have a negative impact because it will encourage consumers, who are already drowning in debt, to borrow more.