New bill threatens US-SA business relations

US officials‚ anxious to repair a troubled “partnership” with SA‚ fear a deepening breach in relations if President Jacob Zuma signs the Private Security Regulation Amendments Bill in its present form‚ the newspaper reported.

This is because of mandates imposed by Congress requiring the US to vote against International Monetary Fund (IMF) and World Bank loans to any country found to have expropriated US property without compensation or arbitration. It would also have to deny bilateral official finance and guarantees to those countries.

Section 20 of the bill‚ which is awaiting Mr Zuma’s signature‚ would require multinational private security companies to reduce their shareholding in local subsidiaries to 49% or less‚ resulting‚ the industry fears‚ in a fire sale of assets at less than fair market value.

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New bill threatens US-SA business relations