Sasol 1. Sonjica 0

The complete about-turn by the government in applying windfall taxes to Sasol and PetroSA has a distinct hum of deal about it. Spigot reckons that it went something like this: Pat Davies: Minister, if you tax us, we won’t build another refinery, we won’t give you any so-called assistance, we won’t invest anything anywhere and 2010 can go to hell. Sonjica (Thinks): Oh shit. I think he knows about the projected 5 billion litre shortfall next year. Also the PetroSA guys are breaking down the Tuynhuys door trying to persuade Thabo to fire me. He’s got me by the curlies. Better do a deal. Sonjica ( to Pat Davies) Pat, look at it this way. We won’t tax you but can you please help us to build another refinery. We’ll pay for it and leave you alone for ever after and you can do what you like. Pat Davies: Sounds good to me, but lets tell the public that we’ll both pay for it. Spins more like Win –Win that way. Sonjica (On the phone): Trevor, these are tough, ruthless guys. For God’s sake retract anything you said so far about windfall taxes. I’ve done a really favourable deal. It will sound like we’ve twisted their arm. Get ready to spend R11 billion tax rands quick to build another refinery. The Moral: Richard “Tricky Deals” Nixon said: “When you have them by the balls, their hearts and minds will follow” Question: Who’s balls? Answer: Our tax balls – again.