Global South African Weekly News Wrap 04 April 2012

05 April 2012 News Wrap-up 1

Global South African Weekly News Wrap Up 4 April 2012

Contents State allocates R102bn to NGP and Ipap sectors over 5 years ................................ 2 League accepts Malema’s fate, wants Zuma out....................................................... 3 Zuma strikes back ........................................................................................................ 4

Malema to reveal Zuma secrets and weaknesses ...................................................... 6 Battle for top ANC job ................................................................................................ 7 Zuma 'will be kicked out' as leader ............................................................................ 9 Crunch time for Zuma............................................................................................... 10 Secrecy laws raised in Basson hearing ..................................................................... 12

ANC voices support for secrecy bill in March ........................................................ 13

Cosatu chief hits out at state secrecy bill ................................................................. 14 Vavi, Bizos threaten to take secrecy bill to court .................................................... 15

Gordhan sees ‘room for cautious optimism’ as deficit lower ................................ 17 Vavi slams secrecy Bill in Parliament ...................................................................... 18 Mittal fury over state’s local content policy snub ................................................... 21

IDC puts R3,4bn into Pallinghurst platinum mine as ‘strategic venture’ ............ 23 'We are ready for SKA' ............................................................................................. 25 Women ‘being sidelined’ ........................................................................................... 26

Affluent have done well out of ANC dominance ..................................................... 27 ANC top six move to dispel talk of divisions ........................................................... 29

ANC’s top brass fail to convince on unity ............................................................... 31 Madonsela's solution .................................................................................................. 33 Constitution ‘not facing any threat’ under ANC .................................................... 34

ANC mum as IEC’s party funding comes under scrutiny ..................................... 35

ANC top brass torn apart.......................................................................................... 36 Mkhize and Mbete attack Malema ........................................................................... 39 ANC will support the people: Mbete ........................................................................ 40 Moe Shaik up for top bank job ................................................................................. 40

Damning memos into MTN's Iran escapades .......................................................... 42 'Zuma must be disciplined' ....................................................................................... 45 Phosa risks backlash for supporting change in Mangaung ................................... 47 The Thick End of the Wedge .................................................................................... 48 SA strikes right tax balance to address its challenges ............................................ 50

Hlophe ruling puts JSC almost back where it started ............................................ 52 SA’s ‘strange breed’ of leaders a threat to democracy .......................................... 54 DG’s R1.4m ‘bribe’ .................................................................................................... 55 How SA’s witness helped Dewani ............................................................................. 59

Police ‘now in crisis’ .................................................................................................. 61 Cele inquiry resumes ................................................................................................. 62 Have your day in court, President Zuma................................................................. 62

Mdluli report's shocking revelations ........................................................................ 66 Appeal court ‘crossed limits on Simelane’............................................................... 71 Government has nothing to hide, says Manyi ......................................................... 72 If the secrecy bill becomes law… .............................................................................. 74 Fear grips top cops after Mdluli's 'return' .............................................................. 75


3 April 2012

Business Report

Page 1

AyandaMdluli

State allocates R102bn to NGP and Ipap sectors over 5 years About R102 billion has been earmarked for investments in key manufacturing, labour intensive, technological and innovative industries by the Department of Trade and Industry (dti) and the Industrial Development Corporation (IDC), it was announced yesterday.

This comes as both parties seek to implement objectives highlighted in the second

Industrial Policy Action Plan (Ipap) for 2012/13 to 2014/15.

At the launch of the Ipap in Sandton yesterday, dti industrial development division

deputy director-general Nimrod Zalk said R102bn over the next five years would be

put aside for investment in the government‘s New Growth Path (NGP) and Ipap

sectors.

The first industrial policy action plan was launched in the 2007/2008 financial year.

The government had since launched a revised three-year rolling Ipap on an annual

basis.

The government‘s NGP aims to create 5 million jobs by 2020 through focusing on

labour-intensive sectors believed to have the potential to stimulate economic growth.

These include infrastructure, transport, energy, water, communications, housing,

agriculture, mineral beneficiation, the green economy, manufacturing and tourism.

However, Zalk said the department was drafting an integrated monitoring and

evaluation reporting system that would quantify the government‘s shortcomings and

achievements with Ipap.

He blamed the post-2008 unfavourable global economic conditions, which led to the

projected target of 850 000 direct jobs failing to materialise in the projected time

frame.

―In many cases we achieved our objectives, which were implemented in a challenging

environment. In more favourable economic conditions we would have seen more

growth and job creation,‖ he said.

Sectors that were earmarked for financing include the automotive industry, clothing

and textiles, agro processing, the green economy, as well as industries that produce

metal fabrication, capital and transport equipment.


Trade and Industry Minister Rob Davies revealed plans to speed up regulation and

support mechanisms to start up a large-scale biofuels industry.

―The identification and promotion of export market opportunities to net food

importing countries and product development and standards support will provide

further impetus to this sector,‖ he said.

IDC chief executive Geoffrey Qhena said the institution would play a major role in

identifying various projects and carrying out feasibility assessments where

investments were concerned.

He highlighted that the IDC would conduct economic and industrial research as well

as assist with advice and support for policymakers.

3 April 2012

Business Day

Sam Mkokeli

League accepts Malema’s fate, wants Zuma out An official of the league says they have accepted that ANC leaders have made up their minds over ANC Youth League president Julius Malema’s expulsion. The African National Congress (ANC) Youth League has accepted that saving its president, Julius Malema, is impossible, but will push on with a campaign to replace President Jacob Zuma .

An official of the league said yesterday they had accepted that ANC leaders had made

up their minds over Mr Malema‘s expulsion.

The ANC‘s disciplinary committee of appeals is to hear Mr Malema‘s appeal against

his sentence of expulsion from the party.

The league sees the outcome of the appeal as a foregone conclusion — that the

committee chaired by Cyril Ramaphosa will uphold the expulsion, handed down by

Derek Hanekom ‘s disciplinary committee last month.

Mr Malema, together with senior leaders in the ANC, have set their sights on the

Mangaung conference. The league is campaigning for Deputy President

KgalemaMotlanthe , also Mr Zuma‘s deputy in the party, to take over. The league is

banking on canvassing enough members to get the Mangaung conference to throw out

the disciplinary processes. This is unlikely to happen if Mr Zuma is re-elected.

If Mr Malema is indeed expelled, the league would be without a president, with

deputy Ronald Lamola due to remain in his position.

A list of the league‘s preferred leaders has Human Settlements Tokyo Sexwale as

deputy president. Sport Minister Fikile Mbalula is their preferred secretary general.

He would replace Gwede Mantashe.


The league, however, still sees a role for Mr Mantashe in the leadership after

Mangaung, as chairman. Keeping Mr Mantashe in the "Top Six" would be their

league‘s way of enticing the Eastern Cape — Mr Mantashe‘s birth province — to

back its campaign.

Mr Mantashe has butted heads with the league on numerous occasions. But a youth

league insider says: "Ideologically and politically, we don‘t disagree with Gwede."

The league has a mountain to climb if it is to succeed in its campaign to bring back

Mr Malema, and change ANC leaders. Getting all their preferred names to be elected

would be difficult, as some provinces would be seeking endorsement for their own

preferred candidates, which means the list being pushed by the league could change.

The league is facing tough competition from those wanting to retain Mr Zuma, who

are believed to be trying to woo Mr Ramaphosa to become deputy president. Also,

South African Communist Party general secretary Blade Nzimande‘s name has been

mentioned as a possible deputy president.

But the names mentioned could also be resisted because of the dominance of leaders

from KwaZulu-Natal. One slate has Public Enterprises Malusi Gigaba and Police

Minister NathiMthethwa as candidates for positions on the Top Six. That is unlikely

to work, considering complaints that KwaZulu-Natal leaders were already too

dominant in Mr Zuma‘s Cabinet.

Political analyst Aubrey Matshiqi said the balance of forces was still fluid, with major

battles to convince lower structures yet to unfold.

The league has been analysing the chances of its campaign succeeding, with its

number crunchers confident that Mr Motlanthe would get sufficient endorsement

ahead of the Mangaung conference. They have written off KwaZulu-Natal and

Mpumalanga, but are confident that provinces such as the Eastern Cape and Gauteng

would back them.

4 April 2012 The Times Page 1 AmukelaniChauke and ThandoMgaga

Zuma strikes back President Jacob Zuma yesterday reclaimed his control of the ANC after weeks of ill-discipline and insults levelled at him by members of the ANC Youth League.


In a show of force and unity, Zuma and the party's other top five leaders came out publicly and denounced what they termed "alien behaviour" within the ANC ranks. The media were given the rare opportunity to question the top six - Zuma, his deputy, Kgalema Motlanthe, secretary-general Gwede Mantashe, treasurer-general Mathews Phosa, deputy secretary-general Thandi Modise and the party's national chairman, Baleka Mbete, at Luthuli House in Johannesburg. Mantashe said the ANC was concerned about the "alien behaviour" shown by some members. He said the continued attacks on ANC leaders, particularly by youth league president Julius Malema, were "disingenuous" and "reckless", and that the party had decided to put a stop to the public spats. He did not explain how it would go about doing this. The ANC has been battling to put a lid on public statements by the youth league on who should lead the party after the national elective conference in December. The league, led by Malema - who the ANC has fired for sowing divisions in its ranks - has been vocal about Zuma's poor leadership. It has openly called for leadership changes after the ruling party's conference in Mangaung, with Zuma being replaced by Motlanthe. Last week, an increasingly defiant Malema called Zuma a ''dictator'' who was ''traumatising'' youth league members. Finally yesterday, the ANC presented a united front and hit back. Mantashe lashed out at Malema, saying the time had come for the ANC to put an end to ill-discipline. He said Malema's statement that Zuma was a dictator was a direct attack on the ANC leadership and its executive. "That is not an insult directed at Jacob Zuma. It is an insult directed [at] us, that we are dwarfs around this dictator. [That means] we can't think, we just wait for a directive by a dictator. "I think it is a serious insult directed [at] all of us .because the statement [implies] the leadership, not only [the top officials], the entire national executive committee is an NEC of just dwarfs who are . praise singers." He said ''these alien remarks and actions'' were being used to create an impression that the ANC leadership was divided. While Zuma played a supporting role at yesterday's briefing, the presence of Motlanthe and Phosa sent a strong political statement. The two leaders recently shared a stage with Malema where the youth leader attacked Zuma's leadership and questioned his integrity.


Both Motlanthe and Phosa yesterday denounced the youth league's recent criticisms of Zuma and emphasised that ANC unity was the ultimate objective. While the ruling party tries to put out fires within its structures, it seems the youth league is not about to abandon its attack. Earlier yesterday, league spokesman Floyd Shivambu insisted in a radio interview that Zuma needed to be removed as ANC president. Next Thursday, the ANC's national disciplinary committee of appeals will hear Malema and Shivambu's appeals against their sentencing. Malema has been expelled and Shivambu suspended.

1 April 2012

The Sunday Independent

Page 1

George Matlala

Malema to reveal Zuma secrets and weaknesses

As Julius Malema‘s strategy to ―expose‖ President Jacob Zuma‘s ―weaknesses‖ and

―secrets‖ intensifies, the ANC has warned him that his missives have reached

―intolerable levels of disrespect‖.

An ANC Youth League official close to Malema told The Sunday Independent on

Friday night that the tactics of the young leader‘s faction was to ―ensure that Zuma‘s

weaknesses… are exposed‖ by publicly ―telling the nation‖ about his ―secrets‖.

This was soon after Malema told students at Wits University that under Zuma the

youth league was ―traumatised‖ and suppressed by the president‘s ―dictatorship‖.

However, the ANC has warned Malema that attacks against Zuma ―have been going

on for some time and have reached intolerable levels of disrespect‖.

In a blistering attack, Malema said the league was ―radical‖ when it viciously attacked

Deputy President Kgalema Motlanthe but ―ill-disciplined‖ when it criticised the

president.

As the crowd cheered, Malema tore further into Zuma: ―We have seen the youth

being traumatised… being expelled from their own home. It is under Zuma we have

seen a critical voice being suppressed. We have seen under Zuma democracy replaced

by dictatorship.‖

The ANC warned him that if he didn‘t stop ―he will be unwittingly dragging himself

to a precipice where a point of return is impossible in the eyes of ANC members‖.


At the same event at Wits on Friday, ANC treasurer-general Mathews Phosa

encouraged young leaders to continue to be critical of their elders. ―You can never

become the lackeys of the older generation,‖ he said.

Meanwhile, Phosa has accused ANC communications official Keith Khoza of a smear

campaign. Khoza had sent an opinion piece to The Sunday Independent under ANC

spokesman Jackson Mthembu‘s name. The article stated that Phosa had contradicted

Zuma when he said in an interview that high unemployment could lead to Arab

Spring-type uprisings here.

However, the article suggested that Phosa‘s comments were an example of a

breakdown of discipline in the ruling party and portrayed the organisation as a

―divided house‖.

―As to what would inform a senior ANC leader in the highest decision-making body

to contradict the president of the ANC about what these protests means for the ANC

and for the country boggles the mind,‖ the article reads.

―The suggestion that the people have so lost hope in the ruling alliance that they

would resort to the kind of insurrection that has seen rulers in North Africa go down is

highly sensational and is not in keeping with the view of the ANC that these protests

need to be understood as the very catalysts of the development agenda as well as the

exercise and growth of our young democracy.‖

After being contacted for comment, Phosa called Mthembu, who denied ever writing

the piece. Khoza subsequently demanded that the article be pulled. Mthembu said: ―I

have said to Keith they can‘t write an article in my name. They must own up to the

article. We will deal with the matter.‖

However, Phosa accused Khoza of being involved in a ―fraudulent smear campaign‖

against him. Khoza confirmed to have ―co-ordinated‖ the article and claimed he had

not proof-read it. ―It was a mistake on my part, which is why we want to withdraw the

article.‖

3 March 2012

Sowetan

Alex Matlala

Battle for top ANC job

The outcome of the coming ANC elective conferences in Eastern Cape, Free State,

KwaZulu-Natal and Mpumalanga will have a bearing on the balance of forces going

to the organisation's conference in Mangaung.

Mpumalanga will be in the spotlight this weekend when provincial chairman and

premier David Mabuza battles it out for the province's top position against health

MEC Clifford Mkansi.

The election is expected to be hotly contested given Mkansi's track-record.


He is a former secretary of the award-winning Sondelani branch at Thulamahashe

outside Bushbuckridge.

Mabuza, on the other hand, has received overwhelming support during the ANC

regional conferences.

"It must be borne in mind that the province's four regions have all put their weight

behind Mabuza during regional conferences.

"But his re-election as provincial chairman could be difficult because Cosatu, the

ANC Youth League and the SACP have already voiced their disapproval of him as

leader," said a provincial executive committee member who spoke on condition of

anonymity.

A win by Mabuza - a known Zuma ally - will be an indication of how the province

will vote in Mangaung.

The conference will be held at Nelspruit's Mbombela Stadium between Thursday and

Sunday.

The other three provinces that are yet to go to their elective conferences include Free

State, KwaZulu-Natal and Eastern Cape.

This has to happen before the end of May following an instruction from the ANC

national executive committee that all provinces must have had their conferences

before the party's policy conference in June.

ANC spokesman Keith Khoza said: "Part of the directive was that all provinces must

have completed their audits before June except for Limpopo and North West, which

had their conferences last year."

Free State province's branches go to branch general meetings (BGM) this week.

"The party caucus this weekend decided to officially open nominations today where

premier Ace Magashule's contender, if any, is poised to emerge," said ANC provincial

spokesman William Bulwane.

Free State will hold its elective between May 25 and 27.

Independent political analyst Elvis Masoga yesterday said current developments

favoured President Jacob Zuma to retain his position as party leader.

"It is a known fact that the four provinces have leaders who are known Zuma

supporters. "It is only Limpopo and Northern Cape which are known to be 100%

against Zuma.

"North West and Gauteng are divided while Western Cape was unpredictable.


"Remember, Zuma was recently booed by members of the youth league during his

visit to the province," added Masoga yesterday. 4 April 2012 The Times Page 4 Chandré Prince

Zuma 'will be kicked out' as leader Suspended ANC Youth League spokesman Floyd Shivambu threw down the gauntlet yesterday, saying President Jacob Zuma was not the right person to lead the ANC and that he would be kicked out as party leader at Mangaung. In a frank radio interview, Shivambu said the league had assessed Zuma's performance and that he had failed to implement mandates as adopted in Polokwane in 2007. "I doubt that he will be re-elected. Actually, I'm not even doubting. I know he will not be re-elected as a president of the ANC at the 53rd national conference," Shivambu told 702 talk show host RediTlhabi. The league was instrumental in driving Zuma's rise to topple former president Thabo Mbeki at Polokwane. Asked if they now regret their unwavering support for Zuma at the time, Shivambu said: "He [Zuma] did not carry out the mandate that was given at 52nd conference. We did not know then . [but] he is not the right person to lead the ANC." Responding to Shivambu's statement, ANC secretary-general Gwede Mantashe said: "We can only wish him luck in being a prophet. It is such a reckless statement, very much reckless." Shivambu said the league's leadership was now being persecuted for talking on resolutions adopted in Polokwane in 2007, but that they would fight back without fear. "People must not purge us and remove us from the ANC because we don't support them." Shivambu said that though the ANC had called for the leadership debate to be opened only in October, the league was never told not to assess the performance of its leaders. "The ANC has never said we must not do leadership evaluation. We have a right to do that."


He said that even though the youth league leadership had a sword hanging over its head, he was confident that his suspension and Malema's expulsion would be overturned during the December conference. 4 April 2012 The Times Page 15 S'ThembisoMsomi

Crunch time for Zuma It was on his return from the first ever meeting of the ANC's officials - commonly known as the "top six" - when President Jacob Zuma apparently told some of his aides that he had been struck by how little his new team knew about each other. This was in early January 2008, barely three weeks after the ruling party's Polokwane conference. Those who were close to Zuma at the time say what struck him the most about his new team was that they had never met as a group before being elected to discuss what they saw as the future for the ANC. As a result, each came with his or her own vision of what the post-Polokwane ANC would look like. Many of them had made it into the top six as a result of fierce lobbying and horse-trading among the disparate groupings that came together ahead of Polokwane in order to unseat the then ANC president Thabo Mbeki. Zuma, who had been Mbeki's ANC deputy for 10 years, was the rallying point of this campaign - with all the groupings in agreement that he was the only leader best positioned to stand against Mbeki and win. KgalemaMotlanthe, elected as Zuma's deputy at the Polokwane conference, was the only other official who had served with Zuma in the previous top six. The rest were new and had been voted in as part of the election slate agreed to by the broad anti-Mbeki coalition. During the horse-trading that preceded the conference, the "Left" - made up of Cosatu and the SA Communist Party - had insisted on veteran trade unionist Gwede Mantashe as ANC secretary-general. Cosatu and the SACP played crucial roles in Zuma's campaign and their preferred candidate had to be accommodated. So did the ANC Youth League under its then president Fikile Mbalula. Although the league did not demand that any of its members serve in the


top six, they did lobby for Mathews Phosa to be elected as the party's treasurer-general. Zuma's supporters in KwaZulu-Natal initially wanted Home Affairs Minister Nkosazana Dlamini-Zuma, who was at Foreign Affairs at the time, to become national chairman. But Dlamini-Zuma turned them down in favour of an Mbeki slate in which she appeared as a candidate for the deputy presidency. As a result, Zuma supporters opted for the then national assembly speaker Baleka Mbete - who had initially been a candidate for the deputy secretary-general's post. With Mbete running for the national chairmanship, the youth league and the MK Military Veterans' Association - which was also vocal in its support for Zuma - pushed hard for ThandiModise, who is now North West premier, to become Mantashe's deputy. In all honesty, there was very little that ideologically united this top six, with the likes of Phosa being seen as too pro-business, while Mantashe was viewed by some of his comrades as too much of a Cosatu/SACP man. As a result, throughout much of its five-year term in office, the top six has demonstrated little sense of common purpose. In recent months, with the Mangaung conference approaching, as well as divisions about how to handle the ANC's problem child, Julius Malema, deepening, the levels of trust among the top six officials have been at their lowest. Almost all of the top six members deny in public that they are divided, but the evidence is to the contrary. Much of the internal crisis the ruling party finds itself embroiled in today is a result of this collective failing to give coherent and effective leadership to the ANC. All of this should be food for thought for ANC members as they prepare for Mangaung and a number of provincial conferences scheduled to be held this year. Election slates do not work in the long run. They may be useful for putting together a winning coalition ahead of the elections, but they eventually lead to an ineffective leadership collective that is beholden to competing factions. Moreover, election slates tend to lead to the most talented and able leaders being left in the cold if they happen not to be in the good books of the dominant factions.

29 March 2012

Mail & Guardian

Faranaaz Parker


Secrecy laws raised in Basson hearing A lengthy argument broke out during the professional conduct hearing of apartheid-era chemical weapons developer WouterBasson on Thursday when the defence tried to call surgeon general Daniel (Niel) Knobel to give evidence.

Knobel read out a statement notifying those present that, having consulted members

of the legal services of the South Africa National Defence Force as well as the state

attorney, he had been advised that section 103(7) of the Defence Act and the

Protection of Information Act 84 of 1982, prevented him from disclosing classified

information or information on military or security matters to unauthorised individuals.

"I have not been authorised to disclose any classified information, I may not lawfully

disclose it and it is not my duty to disclose it. Please regard my evidence in light of

the limitations imposed upon me by these Acts," he said.

Knobel added that by law, one may not reveal secret documents. "It applies to all of

us," he said.

"I want to make quite sure I'm not going to be arrested next week because of this."

The difficulty this poses is that it may be possible to simply raise the sceptre of

secrecy if one does not wish to answer questions on a certain topic.

The pro-forma complainant SalieJoubert (SC) strongly objected to Knobel's

statement, saying that it was the first he had heard of this limitation and that he had

not seen the statement that Knobel had read out.

Joubert asked that the matter be adjourned until Friday morning so that he could have

the opportunity to read the statement and also to consult with the instructing attorneys

and the client, the Health Professionals Council of South Africa.

He first said that the prosecution would opt not to cross-examine Knobel at all but

then said that even if the prosecution was compelled to listen to Knobel's testimony, it

would not finalise the cross examination but would have Knobel return for cross

examination at a later stage, after it had a chance to examine all of the evidence he

would be relying on.

"We have to ask if it's in the interest of a witness to testify on day one and then five

weeks later to be cross examined," he asked.

But Tokkie Van Zyl, lawyer for the defence, was adamant that Knobel give testimony

the same day. He said Knobel was simply stating the fact that certain issues --

particularly those that concerned his discussions with ambassadors or heads of state --

would be off limits.

JaapCilliers (SC), also for the defence, said they were exercising a "basic fundamental

right" in calling a witness.


"Almost every witness available in this regard has passed away. General Knobel is

one of the few witnesses that is able to testify. Does he [Joubert] want to postpone the

hearing until that witness passes away and at that point we might not have any

witnesses left," he said.

At which point the 75-year-old Knobel interjected: "Mr Chairman, I have no intention

to pass away."

The members of the professional conduct committee of the HPCSA conferred briefly

behind closed doors before agreeing to hear Knobel's testimony.

Committee chair Jannie Hugo said the committee needed clarity and asked for

"openness" from the witness so that they could understand Basson's situation

properly.

"For the committee, on behalf of the profession, it is of crucial importance for us to

understand such a complex situation, the issue of the doctor, the conflict and the

military," said Hugo.

Despite Joubert's continued objections, the committee asked Knobel to proceed with

his testimony.

To reassure the committee, Knobel offered to the evidence from his trial -- comprising

about 1 000 pages of testimony -- to the state attorney for advice on whether any of it

might be deemed secret.

The hearing continues on Friday.

2 April 2012

Business Day

Page 3

Wyndham Hartley

ANC voices support for secrecy bill in March An African National Congress (ANC) march in defence of the "secrecy bill" has given a knock to hopes that the ruling party is willing to make the significant changes to the bill that have been called for in public hearings this week.

The march came on the fourth and last day of public hearings in the National Council

of Provinces ad hoc committee on the Protection of State Information Bill.

Thousands of South Africans have, in submissions and petitions, called for the bill to

be either scrapped or amended. The issues include the absence of a public interest

defence for the publication of state secrets and the heavy prison terms for those

committing an offence in terms of the bill.

At the conclusion of the hearings on Friday, chairman of the committee Raseriti Tau

thanked all the organisations that made oral submissions. His statement that "the


extensive public consultation process undertaken by the ad hoc committee both in the

nine provinces and in Parliament this week is a testament to the seriousness … it takes

in dealing with this piece of proposed legislation" was in sharp contrast with the

ANC‘s march outside Parliament.

While the march was small in number, it gave a very loud expression of support for

the bill and launched a scathing attack on the bill‘s most strident critic — the

Right2Know campaign.

Posters held by the marchers said that the hysteria of the Right2Know campaign

should be rejected, that the media was not the custodian of public interest and that the

ANC supported the Protection of State Information Bill. Another told editors to stick

to editing and "we will get on with governing".

At almost the same time the campaign‘s leaders were making its submission to the ad

hoc committee.

30 March 2012

The Times

Page 4

Thabo Mokone

Cosatu chief hits out at state secrecy bill It is very dangerous, inconsistent with the constitution and will turn South Africa into a police state wherein every piece of government information is classified as secret.

This is how Cosatu general secretary ZwelinzimaVavi described the Protection of

State Information Bill yesterday during public hearings held by an adhoc committee

of the National Council of Provinces.

In his damning submission, Vavi said his labour federation remained stubbornly

opposed to the proposed law, which has been termed "the secrecy bill", because it

undermined transparency and would take South Africa back to the dark ages of

apartheid, when all state information was hidden from the public.

Vavi said the bill would criminalise shop stewards for acting as whistle-blowers

against corruption in the government, parastatals and other state organs.

Vavi said the bill, which the government has argued was designed to protect national

security but not to conceal corruption, went far beyond that mandate because it gave

heads of state organs the power to classify information "willy-nilly".

"This is no longer state security we are talking about and in the context of today's

politics of fraud and corruption, and of disingenuity, including by the most trusted

public servants, you have to be concerned that the scope of the bill is extended way

beyond what is necessary," Vavi said.


"We feel the need to draw attention to the concern as to whether the bill does not

inadvertently draw us close to a thread of entrenching a security state .back to where

we come from, the police state [in which] everything is marked confidential. We may

unwittingly be rolling the clock [back] and taking us back to a police state."

The bill, which proposes a jail term of up to 25 years for anyone publishing classified

state information, was approved by the National Assembly in November amid huge

controversy. Almost all the opposition parties are against its passage.

All eyes are now on the National Council of Provinces to see if it will be sympathetic

to calls for the inclusion in the act of a public interest defence.

Cosatu was firmly behind the inclusion of such a defence in the bill because the media

had a critical role to play in exposing corruption in society.

Vavi said, had it not been for the media, the public would not have known about the

litany of scandals involving high-ranking politicians, such as the police leases scandal

that led to the firing of Public Works Minister Gwen Mahlangu-Nkabinde.

Advocate George Bizos also slammed the bill.

He said it was inconsistent with the constitution in that it failed to provide for a public

interest defence and allowed for "improper delegation of powers" in classification. He

said the proposed jail term of 25 years "for exposing corruption was undemocratic".

30 March 2012

Business Day

Page 3

Wyndham Hartley

Vavi, Bizos threaten to take secrecy bill to court Cosatu general secretary ZwelinzimaVavi says if the secrecy bill remains unchanged the union will immediately launch a Constitutional Court challenge.

The secrecy bill offends the constitutional presumption of innocence and if it

remained unchanged, the Congress of South African Trade Unions (Cosatu) would

immediately launch a Constitutional Court challenge, its general secretary,

ZwelinzimaVavi, said yesterday.

He was joined, in public hearings in the National Council of Provinces, by veteran

human rights lawyer George Bizos in predicting that a queue of individuals and

institutions was waiting to take the bill to the court if it was not changed.

Literally thousands of South Africans have objected to the Protection of State

Information Bill, calling for it to be either scrapped or substantially amended. The

main call has been for the inclusion of a public interest defence for whistle-blowers

and journalists.


At issue for both Mr Vavi and Mr Bizos is the penalties provision, which contains a

reverse onus.

It requires someone who is accused of illegally publishing classified information, to

prove that they did not know it was secret.

This would mean the normal responsibility requiring the state to prove guilt beyond

reasonable doubt would be reversed.

Mr Vavi said Cosatu felt so strongly about the threat to the presumption of innocence,

that on this issue alone it would take the matter to the Constitutional Court — "our

lawyers are standing ready".

Mr Bizos agreed, saying the reverse onus was unconstitutional, and he urged the

committee to remove the offending clause.

"There will be a never-ending queue waiting to take this bill to court if it is passed in

its present form," Mr Bizos said.

Mr Vavi, referring to the clause that stipulates that it would be a crime to classify

information in order to cover up fraud and corruption, said there was always room for

abuse, and for this reason there was a need for the inclusion of a public interest

defence. He also expressed concern that, because the Protection of State Information

Bill insists that it prevails when it is in conflict with any other law, the ability of trade

unions to bargain would be negatively affected.

Mr Vavi said the Labour Relations Act entitled unions to demand information from

employers during collective bargaining. But if the employer was able to convince

security authorities that technological secrets would be compromised, it could be

withheld.

Mr Vavi said the secrecy bill was "unwittingly" taking the country back to a security

state, and created the danger of an "everlasting fear of shadows". He said the bill was

unconstitutional and strongly objected to a recent statement by ANC national

executive committee member NgoakoRamatlhodi that the constitution was a

collection of miserable compromises.

He said the freedoms enshrined in the constitution were fundamental to a

constitutional state.

Mr Vavi said the bill was too broad, and things that were not about national security

could be included in its ambit .

He said the bill was tantamount to using a sledgehammer to kill a fly on the TV

screen and destroying the whole TV in the process.

He agreed that there were many things wrong with the media, but to threaten the

media with lengthy terms of imprisonment would harm the free flow of information.


Mr Bizos said it would take "a very brave person" to publish in the public interest

when faced with penalties of up to 25 years in jail.

Meanwhile, the ANC, the South African Communist Party and the South African

National Civic Organisation from the Cape Metropole are set to march to Parliament

tomorrow in support of the bill.

A statement issued on behalf of the organisations objected to what they called a

"consistent campaign of disinformation and hysteria propagated by the Right to Know

Campaign against the bill".

They said the bill made provision for the courts to adjudicate in cases where the

media wanted to obtain and publish classified information.

2 April 2012

Business Day

Page 1

Mariam Isa

Gordhan sees ‘room for cautious optimism’ as deficit lower Finance Minister Pravin Gordhan announced a lower than expected budget deficit for the fiscal year 2011-12 yesterday, and painted an upbeat assessment of the economy’s growth path in the months ahead.

He also unveiled a broad new tax compliance programme focusing in part on the

construction industry, which the South African Revenue Service (SARS) says is the

least tax compliant in the formal sector of the economy.

Mr Gordhan indicated that improvements in the global and domestic economy meant

that growth and tax revenue this year could surpass expectations. "There is a cautious

recovery and room for cautious optimism."

Mr Gordhan gave no forecast, but hinted that the economy may expand faster than

2,7% this year, the pace projected by the Treasury in its February budget. It grew by

3,1% last year.

He also said that SA‘s budget deficit would amount to 4,5% of gross domestic

product (GDP) in the fiscal year that ended at the start of this month — an

improvement on the 4,8% outcome predicted in February.

The news supports an official goal of cutting budget deficits a few days after Standard

& Poor‘s changed its outlook on the country‘s sovereign credit ratings to negative

from neutral due to its concerns over fiscal policy.

The Treasury wants to reduce its budget deficit to 4,6% of GDP in this fiscal year and

to 3% by 2014-15.


"The improvement in fiscal revenue supports our view that the domestic economic

recovery is gaining momentum," said Standard Chartered‘s regional research head for

Africa, Razia Khan.

"With the greater likelihood of faster growth than the Treasury has forecast and better

revenue collection, there is every likelihood that the deficit may narrow faster than

previously assumed," she said.

The government received R742,7bn of tax revenue in fiscal 2011-12, R4bn more than

estimated in the budget in February and 10,2% higher than in fiscal 2010-11.

Spending came to R968,5bn, R4bn less than anticipated.

SARS said revenue last year was boosted mainly by personal income tax, which grew

by 10,3% to R251,bn. That was R1bn above the estimated budget amount. Corporate

income tax grew by 14,2% to R153,7bn, in line with budget projections. Value added

tax rose by 3,8% to R190,5bn, a touch below budget forecasts.

Mr Gordhan said that corporate taxes were supported by "strong contributions" from

the financial sector, which is the economy‘s biggest. He warned that the government

would take a much harder line on recipients of benefits from tenders in the

construction industry, which was the least compliant in the formal sector of the

economy.

The crackdown forms part of a stringent new five-year programme which focuses on

several areas of the economy that pose risks to tax compliance, SARS said.

Construction was a big concern because of its links with the government‘s

infrastructure spending programme, projected at R845bn over the next three years.

"We need to take a much harder line on recipients of benefits from government

tenders ... beneficiaries and culprits must be brought to book," Mr Gordhan said.

SARS Commissioner OupaMagashula said the government would investigate the

abuse of trusts by wealthy people as vehicles to hide income and assets. There would

be a probe into the conduct of tax practitioners, who represent about 3-million

taxpayers, Mr Magashula said. More than half were not tax compliant, and a proposed

bill to regulate their industry would be circulated soon.

The new tax compliance programme would also look into transfer pricing by large

business, the trade in illicit cigarettes, and illegal practices in the clothing and textile

industry, Mr Magashula said.

29 March 2012

Mail & Guardian

Glynnis Underhill

Vavi slams secrecy Bill in Parliament


The general secretary of trade-union federation Cosatu, ZwelinzimaVavi, told the public hearings on the Protection of State Information Bill in Parliament on Thursday that the federation remained critical of the "chronic problems" of bias, lack of balanced reporting and diversity in the mainstream commercial media.

But state censorship and the potential persecution of journalists and the media would

only exacerbate the problems of inaccuracy and bias, he warned.

"We have bemoaned the concentration of ownership in the media in our country,

which means there are inadequate levels of diversity and plurality that is so essential

to media freedom," Vavi said in his hard-hitting oral presentation. "However, in our

view, in the absence of other viable alternatives, it remains one of the broadest forms

of disseminating and implementing rights of access to information for the masses."

Dressed in a colourful green shirt, Vavi did not try to woo the assembled media

during his address. Yet he won acclaim for pointing out that public awareness was

integral to holding state institutions accountable and acted as a check against

irregularities.

In Cosatu's view, it was necessary to facilitate and enhance reporting and investigative

journalism in the public interest. "However, as the Bill currently placed extensive

restrictions on access, possession and disclosure of classified information, it would

necessarily severely curtail this objective," he said.

A public interest defence was necessary in the Bill, especially to support whistle-

blowers and the media. "We do not believe that there would be much scope for abuse,

because the defence would not be available should a person not be able to

demonstrate that there would be a public interest to protect or promote."

In fact, failure to prove a valid public interest defence would invariably result in the

imposition of a criminal sanction, he said.

'Problematic'

Vavi said the Bill in its current form criminalised the possession of classified

information by an unauthorised person under clauses 15 and 44. In terms of clause 14,

it also stated that any person who conspired with, aided, abetted, induced, or even

counselled another person to commit any offence was guilty of an offence.

"Quite problematically, this section makes no distinction between wilful criminal

intent, where someone aids and abets a crime on the one hand, and those on the other

who may be providing necessary support for blowing the whistle on corruption.

"This would have the consequences of criminalising the obligations that trade unions

officials and advice offices have to assist whistle-blowers with advice, or even blow

the whistle on their behalf where a person wishes to remain anonymous. With the

increasing risks associated with blowing the whistle, this support may be the only way

to incentivise the exposure of corruption or other irregular activities."

The Bill would have a "dampening effect" on encouraging the exposure of corruption,

Vavi said. Criminal penalties would be applicable in some cases, regardless of the

seriousness of the irregularity that was exposed by an unauthorised disclosure. "The


reality is that, often, whistle-blowers are driven to illegally obtain information only

because it would expose an irregularity or corruption, despite that person ordinarily

not displaying similar criminal tendencies," he said.

A common problem faced by trade unions and advice offices related to whistle-

blowers sending information on irregularities anonymously to their offices, he said.

"In such cases, these organisations would have no authority to possess the classified

information. This poses the serious dilemma [of] whether, in order to avoid

prosecution in accordance with security legislation, an organisation may be forced to

ignore even grand-scale corruption or irregularities."

The Bill allowed for the absolute exclusion of any whistle-blower protection for the

disclosure of information classified as a state security matter by intelligence and

security agencies under Clause 49, he warned.

This was illustrated by the fact that a disclosure of ordinary classified information in

violation of clause 43 carried a maximum penalty of five years' imprisonment,

whereas under clause 49 the penalty for disclosure varied between 10 and 15 years.

Clear warning

Whistleblowers and journalists facing the imminent threat of detention for the

possession or publication of classified information can take heart from the clear

warning to Parliament from distinguished human rights advocate George Bizos.

"If the current Bill proceeds unchanged, section 80 of the Constitution empowers the

members of the National Assembly to apply to the Constitutional Court for an order

declaring that all or part of an act of Parliament is unconstitutional. We [the Legal

Resources Centre] would strongly encourage the National Assembly to make such an

application," he said in his representation at the public hearings on the Bill in

Parliament on Thursday.

Bizos was representing the Legal Resources Centre, but his words carry weight

because of his heroic past, which is steeped in the campaign against apartheid.

The government has a fundamental duty to protect the safety and security of its

people, he said.

"The Bill is aimed at promoting that duty, which we perfectly understand. However,

we believe that the proposed Bill, if passed as it currently stands, will operate to

return South Africa to the secrecy and securitisation that pervaded our dark history,

rather than moving us forward with a democracy built on openness, transparency,

accountability and the rule of law."

Bizos said that when the Legal Resources Centre was considering whether to make

submissions on the Bill, it was careful to confine itself to identifying the probable

unconstitutionality of specific provisions of the Bill.

In doing so, he wanted to guard against "joining the chorus of those involved in

sensationalising the issues".


Bizos said the Legal Resources Centre, like the government of South Africa, was

committed to protecting the legitimate classified state information.

"In doing so, however, we believe that the values enshrined in the Constitution should

not be undermined, but must be respected and protected."

As a human rights organisation, the Legal Resources Centre represented the helpless,

and more often than not, the hopeless.

The "bone of contention" with the Bill rested on seven key points, he said:

the Bill does not include a public interest defence

the Bill adopts a standard of "ought reasonably to have known"

the Bill allows for an improper delegation of powers

the Bill does not include an improper classification defence

the Bill adopts disaproportionately severe penalties

the Classification Review Panel lacks independence

The review jurisdiction of the Court must be maintained

By far the main criticism of the Bill has been its exclusion of a public defence clause

which, if included, would allow public disclosure of classified information if public

interest in such disclosure outweighs the harm to the protected interests, said Bizos.

He pointed out the Constitution protects the right of freedom of expression.

Bizos said failure to protect legitimate disclosure, which unreasonably limits the

rights to freedom of expression and which is exacerbated by harsh punishments, was

clearly unconstitutional.

2 April 2012

Business Day

Page 1

Carol Paton

Mittal fury over state’s local content policy snub No preference to steel producer in government’s infrastructure procurement plan.

The government and steel giant ArcelorMittal SA could be heading for a showdown

over the government‘s refusal to grant it preferential status in its infrastructure

procurement programme.

ArcelorMittal said yesterday the move last week was a surprise, "most unfortunate"

and could lead to job losses in the steel industry.


Under the new preferential procurement regime, which came into force in December,

the Department of Trade and Industry may designate a certain level of local content to

an economic sector or subsector for public procurement. But when it comes to steel

— likely to be the single biggest input in the infrastructure plans — all products will

be treated the same, regardless of origin.

The rationale for excluding steel is to ensure that ArcelorMittal, SA‘s biggest

producer of most steel products, does not benefit disproportionately from the

infrastructure programme.

The government — in particular trade and industry and the competition authorities —

has been engaged in disputes with ArcelorMittal over its pricing policy, which the

government says is strangling downstream manufacturers. A Competition Tribunal

finding in 2007 that the company had engaged in excessive pricing by charging

import parity prices for flat steel came to nothing when the complainant in the case

settled with ArcelorMittal.

Last week, Nimrod Zalk, deputy director-general for industrial development, said

steel was being given special treatment because of ArcelorMittal‘s dominance in the

local economy.

"In all steel-intensive areas, we will deem steel to be local even if it is imported. This

is to ensure ArcelorMittal doesn‘t get carte blanche to rack up steel prices. If they

want to get the business, they will have to give the best price."

ArcelorMittal spokesman Themba Hlengani said this came as a surprise, "and if

correct, we believe it would be most unfortunate and raise questions regarding the fair

and equitable application of government policy".

"Despite the negative perception of steel pricing practices, this exclusion will have

minimal impact on current pricing structures, which are already based on international

steel price levels.

"The impact will be rather to further worsen the industry‘s competitive position

versus steel producers who enjoy government subsidies in their home countries,

which has a major impact on the downstream steel manufacturing sector and may

unfortunately lead to further job losses ," Mr Hlengani said yesterday.

In past clashes, the government said high steel prices were constraining the

downstream steel manufacturing sector.

Three of the six subsectors designated for local content are steel intensive : rolling rail

stock, power pylons and buses. The level set for rolling rail stock is 65% and for

buses 85%.

This is based on what is feasible, says Mr Zalk, and allows for technologically more

advanced components — such as gearboxes and engines — to be imported.


"We went through a detailed exercise exploring what we can produce competitively,

what level of effort would be required to produce particular components. The idea is

ultimately to shift up the value chain, but not in an unrealistic way," he said.

It is likely, said Mr Zalk, that global original equipment manufacturers will bid for

contracts to manufacture rolling stock, knowing that they will either have to partner

with a local firm or invest directly in SA themselves.

US firm General Electric‘s establishment of local capacity to build 90 locomotives for

Transnet showed what could be done.

30 March 2012

Business Day

Page 1

Allan Seccombe

IDC puts R3,4bn into Pallinghurst platinum mine as ‘strategic venture’ Platmin’s successor, temporarily called NewCo, has set ambitious goals on output, jobs and beneficiation in its bid to become the world’s third-largest platinum producer.

From the ashes of Platmin, once listed on the Johannesburg and Toronto bourses, a

R23bn company has emerged that intends to become the world‘s third-largest

platinum producer.

It will meet two key demands of the government by providing work for 9000 people

and beneficiating its product.

The new company, temporarily called NewCo, counts amongst its major shareholders

Pallinghurst Resources, the 35000-strong Bakgatla Ba Kgafela community and the

Industrial Development Corporation (IDC).

It plans an aggressive, tenfold increase in output to 1,1-million ounces of platinum

group metals by 2017. Platmin produces about 130000oz a year.

Platmin‘s shares fell 10% last December when it said it was delisting from both

bourses and would return to the JSE this year as a bigger company. Its executives

urged shareholders at the time not to sell their equity.

Platmin had a net asset value of R6,9bn, compared with NewCo‘s R23,2bn.

The IDC said at a press conference yesterday that it was investing R3,4bn in NewCo

in exchange for a 16% stake in the project, which has 70-million ounces of platinum

group metals resources in cheaply accessible deposits. Pallinghurst will hold 42% of

NewCo and the Bakgatla 27% with the balance held by "other shareholders".

The company‘s creation comes at a time when the CEOs of established platinum

miners are bemoaning the nonperforming rand price of platinum and high input costs


— particularly of electricity and labour — which are not conducive to new

investments and projects.

NewCo would list on the Johannesburg, Hong Kong and possibly the London bourses

within a year, Pallinghurst CEO Arne Frandsen said yesterday.

Mr Frandsen said the company‘s shallow ore bodies gave it a cost and safety

advantage compared with its mature peers, which are mining at depths of 2km in

some instances.

NewCo did not need to raise capital, Mr Frandsen said, as it had $500m cash on its

balance sheet to reach its production targets of 1,1-million ounces at the Bushveld

Igneous Complex, where about 80% of the world‘s known platinum deposits are to be

found.

Geoffrey Qhena, CEO of the IDC, said at the press conference that the investment —

the largest the government-owned funder has made in five years — met two of the

state‘s key agendas, of employment creation and adding value to raw minerals. "This

strategic partnership between the IDC and Pallinghurst will certainly transform the

local platinum mining and beneficiation landscape," Mr Qhena said.

The fund‘s capital was the "catalyst" needed to consolidate a number of contiguous

properties to the north of the Pilanesberg nature reserve in the North West.

Pallinghurst chairman Brian Gilbertson, founder of BHP Billiton , the world‘s largest

resources company, said it had been Pallinghurst‘s vision and that of the Bakgatla

king, KgosiPilane, to put the properties into a single company to create a mega-

mining project.

"As Pallinghurst, we‘d never have invested in Platmin as a standalone entity. From

day one we‘ve been following this consolidation strategy," Mr Gilbertson said.

KgosiPilane said his community had invested R1bn and its stakes in the properties

abutting the Platmin project to earn its stake of 27% in NewCo, worth R5,4bn.

Unlike many other empowerment deals, the Bakgatla have not incurred debt.

The IDC and Pallinghurst plan to set up a joint-venture processing and beneficiation

business. Mr Gilbertson said no final call had been made on smelting technology but

the Kell Process could be favourable. It uses 140kWh of electricity per ton of

concentrate, against a conventional smelter‘s 1000kWh.

The plant will be available to other platinum producers, which receive about 80% of

the value of the metal they send for processing.

30 March 2012

The Times

Page 2

AmukelaniChauke


'We are ready for SKA' Science and Technology Minister NalediPandor has remained tight-lipped on whether reports that South Africa has been recommended as the preferred site for the world's largest radio telescope are true.

But she did hint yesterday that the reports may be true when she said there was "no

plan B" to the original bid, and that sharing the project with rival bidders Australia

was not an option.

Dr Bernie Fanaroff, director of the SKA South Africa project team, hinted that a panel

of experts may have boosted Africa's chances to host the à1.5-billion (about R15.26-

billion) telescope when he said he would not comment on reports by an Australian

newspaper.

Earlier this month, the Sydney Morning Herald reported that Australia's chances of

hosting the telescope had been "dealt a crippling blow" after South Africa was

recommended as the preferred site.

The SKA will, upon completion in 2024, have the capacity to generate an immense

amount of data - reportedly enough to fill 15million large iPods every day - and will

look deep into the universe.

Pandor said yesterday while she would not comment on the recommendations made

by the SKA site advisory committee, South Africa was ready to host the project.

"I agree with the Australian minister that a joint site is not a good option at all. I agree

with him in that regard.

"We believe we are ready. Our site is the better site. We believe we have the

astronomers, engineers, technology [and] world support. We think we will be a

brilliant choice.

"It [the SKA site advisory committee report] is confidential and should be treated as

such. We can only infer from the reports from Australia what [the committee's] report

says," she said.

The SKA board is due to convene a general meeting of members from countries that

make up the site advisory committee - excluding South Africa and Australia - at

which they will consider the report's recommendations. It is unlikely, however, that

they will decide on the preferred site at the meeting. It is not yet known when the

announcement will be made.

Fanaroff, meanwhile, said his team had seen the recommendation but was not at

liberty to make it public because it was part of a confidential report.

"There have been leaks to the media. Many of you will have seen the report in the

Sydney Morning Herald, which is the one of the world's leading science journals,

which reported that the Southern African site has been recommended by the

international site advisory committee. We can't comment on that. We can simply say


that you are from the media so you must decide whether you believe what the media

writes."

29 March 2012

The New Age

Warren Mabona

Women ‘being sidelined’ The ANC Women’s League (ANCWL) yesterday said preparations were gaining momentum within its ranks for the ANC’s elective conference which will be held in Mangaung, Free State, later this year.

ANCWL spokesperson Troy Martens told The New Age that the league was looking

forward to cementing the place of women in the economic sectors of South Africa.

She said pushing for gender equality in various facets of life would also take centre

stage. ―Women are being sidelined on many fronts of the economy,‖ Martens said.

―We have drafted a gender policy document that contains our proposals on this

matter.‖

The ANCWL – under the presidency of Basic Education Minister Angie Motshekga –

has been largely invisible in the past several months, but the body became vocal

recently.

Most notably, the league raised eyebrows by announcing a policy discussion

document to be presented to the ANC policy conference in June and then pushing

through a proposal for Mangaung.

Included in the document is a call for the decriminalisation of prostitution and equal

representation of women in the economy.

This has raised speculation that the league‘s leaders are changing tack, shifting from a

wing of the ANC that during the struggle fought for political freedom, to taking up

more gender-based struggles in a free South Africa.

But the league might also be flexing its muscle to take up the party‘s commitment to a

50-50 quota of women representation in the party‘s leadership, and looking to being

considered in greater numbers for top positions at the much-awaited conference.

This was denied by Martens. Keith Khoza, a spokesperson for the ANC said: ―We

have achieved a lot because women are now widely represented in all spheres of

government.

―In terms of premiers, we have women who lead the provincial governments, like

NomvulaMokonyane and ThandiModise.‖


However, Martens said there was still a long way to go as the women‘s wing still

wished to see more women being represented at a party level and in government.

―We are happy with the female gender representation but our goal is to bridge the

remaining little gap,‖ she said.

Martens also admitted the women‘s wing had been silent for a long time, partly

because it had not had a national spokesperson for a while.

―We will not talk about the succession debate until October when nominations are

made, but people can expect to hear our voice on several other issues even after the

conference,‖ she said

Expelled ANCYL president Julius Malema was embraced by the Limpopo women‘s

league leadership at its provincial executive conference (PEC) earlier this month.

Martens set the record straight on the matter, saying the PEC‘s public support for

Malema was not the position of the ANCWL.

At the conference, ANCWL provincial chairperson MaiteMarutha said Malema would

always be part of the ANC structures in Limpopo. ―You are welcome, our son, you

will remain with us throughout. ―We shall never divorce you. We will even come to

you to seek advice,‖ Marutha told Malema at the conference.

The ANCWL has recently held conferences in KwaZulu-Natal, Free State and

Limpopo. Martens said similar gatherings were being planned for Eastern Cape and

North West provinces.

The purpose of the conferences is to assess the state of the ANC Women‘s League

and to discussing the policies of the ANC. 4 April 2012 Business Day Page 9 Steven Friedman

Affluent have done well out of ANC dominance A party that does not face defeat has no need to buy voter support by spending money it does not have. IT IS the great irony of our politics that the minorities who bemoan the African National Congress’s (ANC’s) dominance at the polls benefit most from it, while the losers are the majority that returns it to power.


A string of local by-election results last week reminded us of something much of our overheated political reporting obscures — that, despite its many problems, the ANC is in no danger of losing its majority. While the occasional opposition win in an ANC seat prompts headlines and confident predictions from the Democratic Alliance of massive swings to come, a solid majority of voters is still loyal to the ANC and will remain so for a long time. The governing party will continue to win general elections until it splits again, at which stage two parties will compete for the support of most voters, who identify with the traditions of the ANC and will only support a party that is loyal to them. For many years, no party will win nationally unless most voters feel they can support it without turning their back on the ANC’s history. This is not happy news to most of the affluent, who are drawn mainly from the racial minorities and who see the ANC’s continued victories at the polls as a threat to civilisation. An astute business analyst pointed out in a conversation recently that, when many people in business and the professions ask when this country will become "a real democracy", they are asking how long it will take for the ANC to lose at the polls. But the affluent who bemoan the ANC’s dominance have done very well out of it. Despite endless breast-beating about affirmative action and black economic empowerment, data show that the biggest economic winners since 1994 are the minorities who did well out of apartheid. Most whites, and the better-off sections of the other racial minorities, have flourished as their advantages allowed them to use the new economic opportunities democracy brought. Some Africans have gained too, but most have made modest progress or are roughly in the same place. This has happened because the ANC has, for several reasons, respected property rights and the markets which go with them. It may not have done this if its majority was threatened. The scale of poverty and inequality here make it probable that, if parties were competing for the votes of the majority, they would try to impress voters by promising tougher action against privilege. Similarly, fiscal discipline has been a feature of ANC government; a party that does not face defeat at the polls has no need to buy voter support by spending money it does not have. Most people in the suburbs may not elect the government — but they can make their voice heard because they are organised into business and professional associations and ratepayer organisations, which know how to make sure their concerns are aired. In any democracy, the better organised are heard most and the well-off are almost always well organised. ANC dominance at the polls means the organisation of the affluent is not cancelled out by the voting power of the majority. Politicians are under pressure to listen to organised minorities who can make life uncomfortable for them, not the grassroots voters who re-elect them.


At the grassroots, continued ANC majorities may be welcomed. But they make it more difficult for the poor to be taken seriously. The poor have less access to organisation and so they have a far greater need to be taken seriously by politicians. But if no one is going to lose an election by ignoring poor people, there is no pressure to take them seriously. In India’s shack areas, activists make sure the poor are heard by making deals with parties who are competing for their votes. That leverage is obviously not possible if the parties are not really competing. Even the visible expressions of unhappiness at the grassroots, social protests, do not change government behaviour because they do not threaten the ANC’s hopes of re-election. More than a few of the protests are organised by ANC politicians trying to get onto election lists. Because the poor do not decide who makes it onto the lists, there is no incentive to take them seriously — they are simply used to fight political battles. This will continue until politicians compete for the votes of the poor. Of course, grassroots people choose to vote for the ANC and it may be tempting to blame the poor for their limited options. But poor people do not have the resources to form political parties and so must make do with the options the elites offer them. At present the ANC is the only credible option available. This will, in time, change. The ANC will split again and competition for the majority vote will be a reality. The result will be a democracy in which more voices will be heard. Minorities will be able to look after their interests then far better if they begin now to face the social realities which ANC dominance at the polls hides. 4 April 2012 Business Day Page 1 Sam Mkokeli and Natasha Marrian

ANC top six move to dispel talk of divisions African National Congress Youth League leader Julius Malema singled out for trying to sow conflict with ‘dictator’ jibe. TOP leaders of the African National Congress (ANC) yesterday condemned deep divisions in the party’s lower structures and leagues, while claiming they themselves were united. In a rare press conference — which failed to live up to expectations — held by all six of the ANC’s top officials, including President Jacob Zuma the leaders complained about divisions in the party and singling out the ANC Youth League’s recent statements as a source of conflict.


Party sources last night said the ANC’s top brass had pulled out of a plan to kick youth league president Julius Malema out of the party. A source said there was a plan to suspend Mr Malema and youth league spokesman Floyd Shivambu summarily for last week’s comments. Mr Malema called Mr Zuma a "dictator", while weekend newspapers published articles penned by Mr Shivambu, also criticising ANC leaders. Another option the party was considering was invoking the suspension relating to Mr Malema’s 2010 disciplinary hearing, where he pleaded guilty to sowing divisions in the party. That sentence was suspended. It appears there was no agreement among the ANC’s top leaders on how to implement the new suspensions, which would effectively have cancelled Mr Malema’s appeal hearing, scheduled for next Thursday. Addressing journalists on behalf of the "top six", ANC secretary-general GwedeMantashe said recent remarks were "meant to portray the national officials as disunited as well as competing against each other for positions within the organisation". He said: "We wish to state at the outset that the national officials of the ANC are at one with regard to any matters of discipline within the ANC as well as action taken as informed by the ANC constitution. We remain loyal to all decisions we were part of." Members of the party had used its centenary celebrations "to divide the ANC along narrow ethnic and racial lines as well as to insult and denigrate the leadership of the ANC, its values and principles", Mr Mantashe said. Mr Malema had called Mr Zuma a "dictator" at a centenary lecture organised by the ANC Youth League last Friday. Mr Mantashe said the leaders around Mr Zuma took offence, because Mr Malema likened them to "dwarves" who blindly followed a bad leader. "The assertion made … by Julius Malema, that new ideas are suppressed and that the present leadership of the ANC is dictatorial and does not appreciate new ideas, is not only disingenuous but a deliberate falsehood." He said calling Mr Zuma a dictator was an insult. "It’s not an insult directed at Jacob Zuma, it’s directed at us — we can’t think for ourselves. It’s a serious insult directed to all of us. The brazen and often rude and crude rhetoric to detract from real issues facing our youth does nothing to add value to the integrity of the ANC and its leagues. "The ANC discourages the elevation of individuals and personalities above the organisation; this inevitably leads to the creation of personality cults, which hamper collective decision making." The ANC leaders took turns answering questions about the state of unity among them.


Deputy President KgalemaMotlanthe said he and Mr Zuma had worked hard to build unity in the party. " Those who try to use our names to divide the organisation will not succeed." Mr Mantashe said it was reckless of youth league leaders to carry on discussing the ANC’s December elections, when the party had decided to open nominations only in October. Mr Shivambu said on radio yesterday Mr Zuma would not be re-elected in Mangaung. "It is reckless and very careless to talk like that on the election of an organisation that is 100 years old," Mr Mantashe said. "If we opened the (leadership) discussion in January, there will be no application of minds on policy documents … we are opening nominations in October. We’ll tear each other apart." The UmkhontoweSizwe Military Veterans League called yesterday for Mr Malema to be "summarily expelled" for the disdain he showed for ANC leaders. The league responded by accusing the veterans of wanting to be on TV to impress their girlfriends. 4 April 2012 Business Day Page 3 Sam Mkokeli

ANC’s top brass fail to convince on unity It’s the first time the ANC’s top six have addressed a press conference since the 2007 Polokwane conference at which they were elected. If there ever was an admission that the African National Congress’s (ANC’s) top six officials were not in charge of the party, it was made yesterday. They came out for a rare press conference at which five leaders, including President Jacob Zuma , lined up behind secretary-general GwedeMantashe to blast unruly followers, journalists and business leaders, while at the same time declaring that there was unity among the top officials. It was the first time the group had addressed a press conference since the 2007 Polokwane conference at which they were elected. Yet, the ANC national officials known as the "top six" are divided right down the middle. The top six are Mr Zuma, Mr Mantashe, Mathews Phosa, BalekaMbete ,ThandiModise and Deputy President


KgalemaMontlanthe. Three want leadership change in Mangaung and three want to remain in charge. At the source of the division is the fact that no one is allowed to discuss the Mangaung elections. The ANC national executive committee (NEC) decided that leadership discussions for the Mangaung conference should be held only from October, when branches will be allowed to officially nominate candidates. The freeze on open discussion of the leadership question is the main source of conflict in the ANC, but its top leaders, heads in the sand, swear that allowing people to drop candidates’ names would lead to chaos. In the words of Mr Mantashe, allowing people to discuss leadership names and ideas "will open the organisation to tear itself apart". But the chaos has already occurred. It is so out of control that the top six leaders decided to hold a press conference to claim that they are united, and also tell their followers to play ball. Mr Mantashe called for unity yesterday, listing recent incidents of bad behaviour by youth leader Julius Malema, and those doing Mr Zuma’s bidding in tackling Mr Malema publicly. This is not the first time Mr Mantashe has called for an end to disunity, and his previous attempt has clearly not worked, so what makes him, and the rest of the "top six", think yesterday’s press conference will yield better results? The ANC’s national general council was strong on the need for discipline when it met in September 2010. Subsequent NEC statements said the same thing — almost to the point of tautology. But nothing changed. Not even the disciplinary hearing Mr Malema is going through has led to better behaviour. The ANC top brass’s message on Mr Malema has also been confusing. One moment they behave as though Mr Malema and the youth league are yesterday’s news. Then this week they respond to him, through a statement on Saturday, and then at yesterday’s press conference. Mr Malema must have felt good about himself yesterday, seeing the most senior leaders doing their best to prove that they are in charge and united. Though it is clear that Mr Malema cannot escape the verdict of the disciplinary committees, Mr Zuma and those close to him are clearly nervous about him and his potential to cause a tsunami in the build-up to Mangaung. There should be no need to declare unity if indeed the top brass is united. It is naive at best for them to line themselves up in front of journalists, thinking that will change their image as a group deeply engaged in a power struggle. One of the conference’s aims should have been to round up the suspected Judases in the top six to force them commit themselves publicly to playing by the rules, and to reassure the public that they are not working to oust Mr Zuma. And there they were — treasurer-general Mr Phosa, deputy secretary-general Ms Modise and Mr Motlanthe talking about unity and working together. Political analyst Aubrey Matshiqi said the press conference


failed to convince the public there was unity. The content lacked the gravitas expected. "In the end it was just a show." He said the ANC faced a leadership crisis and the top six lacked the moral authority to assert themselves and stamp out divisions. "The lack of confidence in our leadership extends beyond the youth league, into society as a whole," he said. Analyst Steven Friedman said it was clear Mr Zuma had demanded a show of unity. "I don’t think it’s going to have any credibility for as long as they insist people should pretend there is no election until October. Nobody will believe them." He said while the public show may make it difficult for people like Mr Phosa to align themselves with the youth league, those who wanted change were encouraged to work harder behind the scenes. Mr Zuma was "ANC old school" and dealt with divisions "by convincing everyone we are united". 4 April 2012 The Times Page 8 NashiraDavids

Madonsela's solution Public Protector Thuli Madonsela posed an unnerving question about corruption at the 13th International Winelands Conference in Stellenbosch yesterday. "Have we as a society improved? Are we still sick or have we grown sicker?" Madonsela's question arose from an address by former president Nelson Mandela at the opening of parliament in 1999. Mandela labelled corruption a sickness. "Our hope for the future deeply depends also on our resolution as a nation in dealing with the scourge of corruption. Success will require an acceptance that, in many respects, we are a sick society," Mandela said at the time. Madonsela said there are leaders in the public and private sectors who have the best interests at heart of the people who entrusted them with power and work daily to make the constitutional dream a reality. "But there are dream stealers or thieves, chief of which is the scourge or sickness of corruption," Madonsela said.


She said while Mandela likened corruption to a sickness, others called it a cancer. As a nation, she said, we should empower ourselves to deal with the cancer afflicting our body by isolating it and do "all we can to get rid of it with a view to saving ourselves from death or disability". Madonsela said she had been asked what it would take to end corruption. She came up with a three-step solution. The first, she said, was strengthening public accountability. Society should be empowered to ask more questions and know how the government works. Should service or conduct fail, they would know what questions to ask, of whom and which channels to follow. "We need people who have been entrusted with public power to understand that this is not your power, you are a trustee. When people ask you questions - even if they go to the public protector - don't get annoyed. "When you have done nothing wrong, what's wrong with telling the people what happened and how you made a bad decision?" Second on her list was strengthening transparency. "When there's openness there is less opportunity to engage in corruption and abuse resources." Madonsela said whistleblowers should be protected and laws put in place to do just that. Media freedom was another key aspect to ensuring transparency. Madonsela said the last step is ending impunity .There should not be "protected people or holy cows". "Ultimately we need selfless, committed and unwavering leadership in the area of combating corruption and promoting good governance. That is what President Mandela was calling for."

3 April 2012

Business Day

Page 4

Natasha Marrian

Constitution ‘not facing any threat’ under ANC The African National Congress (ANC) was the only protector of the constitution, which faced no threat under its leadership, the party said yesterday in reaction to sharp criticism from Nedbank chairman Reuel Khoza.


ANC spokesman Keith Khoza said Reuel Khoza had to qualify his comments because

SA was not in disarray and remained a country in which the rule of law and the

constitution were upheld.

Reuel Khoza‘s criticism was carried in the bank‘s latest annual report, released on

Friday. He wrote that SA‘s democracy was under threat by a "strange breed" of

political leaders who appeared incapable of dealing with the demands of modern-day

governance and leadership.

"Our political leadership‘s moral quotient is degenerating and we are fast losing the

checks and balances that are necessary to prevent a recurrence of the past," he wrote.

His comments came amid concern about reports of political meddling to facilitate the

lifting of the suspension of crime intelligence boss Lt-Gen Richard Mdluli, and the

withdrawal of murder and corruption charges against him. Lt-Gen Mdluli is being

tipped to become police commissioner.

Reuel Khoza‘s comments followed moves by the government to review the judgments

of the Constitutional Court.

Keith Khoza said the party would protect the constitution as it had played a central

role in its drafting. Reuel Khoza‘s views represented his personal thinking and not the

thinking of the private sector as a whole.

Reuel Khoza was the second prominent businessmen to openly criticise the

government about proposed policy in recent months. Pick n Pay chairman Gareth

Ackerman last year spoke out on the Protection of State Information Bill currently

before Parliament.

Economist Mike Schussler said many business owners were likely to share the views

expressed by the Nedbank boss. People had been saying SA had now had two police

chiefs who were dishonest and might get a third.

3 April 2012

The New Age

Warren Mabona

ANC mum as IEC’s party funding comes under scrutiny Some political parties yesterday called for the transformation of the party funding mode, while the ANC remained mum on reports that the party could approach the Independent Electoral Commission (IEC) to increase the funding of political parties.

Keith Khoza, ANC spokesperson, told The New Age that the reports might have

emanated from the ruling party‘s discussion on organisational funding, which was

leaked.


He said the ANC would not be engaged in any matter pertaining to the contents of the

document.

―We cannot comment on the document since that would prematurely reveal its

contents,‖ Khoza said.

Asked if the ANC was satisfied with the current party political model of the IEC,

Khoza said: ―We cannot comment on that either.‖

The document will be tabled for discussion at the ANC‘s policy conference in June.

The IEC manages the Represented Political Parties‘ Fund.

Political parties with a representation in Parliament are funded proportionally to

parliamentary seats on an annual basis.

United Democratic Movement spokesperson BonganiMsomi said the current funding

mode favoured bigger parties, while smaller organisation such as the UDM got a little

slice of the cake.

Msomi said half of the IEC‘s allocation should be distributed to all the parties and the

rest be granted on proportional representation basis.

He said the gap between big and smaller parties is getting wider, meaning the latter

might be unable to survive in the near future.

PasekaMoshoadiba, secretary-general for the African People‘s Convention, agreed,

saying it was not good to see the ANC receiving millions of rands every year, while

other parties got less than R100000.

Jonathan Moakes, CEO of the DA, bemoaned the impending request for an increase

of funding.

―The amount of money is sufficient and I don‘t think we should make the taxpayer

fork out more,‖ Moakes said. The IEC was not available for comment.

2 April 2012

The New Age

Warren Mabona

ANC top brass torn apart

Despite attempts to project a united front, events in the past few weeks have sent a

clear signal that the cracks are widening within the ANC‘s leadership structures as the

party prepares for its policy and national elective conferences later this year.

Against the backdrop of the party‘s deputy president, Kgalema Motlanthe, and

treasurer-general Mathews Phosa openly throwing their weight behind suspended

youth league leader Julius Malema, analysts said these cracks were a consequence of


a difference among the party‘s leadership over its vision rather than the ongoing saga

of Malema.

Prof TinyikoMaluleke of the University of South Africa said the ANC top brass were

rooting for a leadership that would quell several challenges that made the ANC look

inefficient as a ruling party. These include the high rate of unemployment and

economic deterioration that often triggered service delivery protests in some parts of

the country.

―It‘s a question of vision to overcome the challenges other than a personal attack on

Zuma,‖ Maluleke said.

Maluleke was responding to the appearance of ANC treasurer-general Mathews Phosa

with Malema at Wits University in Johannesburg on Friday.

During the event, Malema launched a public attack on Zuma, saying the league was

being traumatised and democracy in South Africa has been replaced by dictatorship

under Zuma‘s leadership. Phosa, in his speech, concurred with Malema, saying the

ANC should protect other people‘s right to differ.

Motlanthe‘s appearance with Malema in Limpopo last week also raised speculation

that he was siding with the embattled youth wing leader. But Motlanthe has always

played his cards close to his chest on the succession debate issue.

Maluleke pointed out that while Motlanthe and Phosa claim that they were just

performing their duties, their public utterances indicated a need for a change in the

ruling party‘s leadership.

―It can become problematic for the ANC leaders if they say they cannot address the

people alongside Malema,‖ he said.

According to Maluleke, Malema‘s constant attacks on Zuma were unlikely to erode

Zuma‘s credibility and diminish his chances of being re-elected ANC president.

Malema has been very critical of white people in the past, publicly attacking them for

what he called ―stealing land from black people‖.

But during his address at Wits University, he introduced on stage Jonathan Ovadia, a

young white man as his protégé. He said he mentored Ovadia in radical politics and a

non-racial South Africa.

Malema also called on black South Africans not to chase white people away, but let

them share the land with them.

Maluleke interpreted Malema‘s action as an attempt to reinvent himself in order to

retract his previous attacks on white people.

Another analyst, ZamikhayaMaseti, said the ANC top six had been torn apart by the

political and ideological differences long before Malema started having brushes with

the ANC.


―The glue that kept the ANC top brass together has melted,‖ Maseti said.


1 April 2012

The New Age

Sapa

Mkhize and Mbete attack Malema KwaZulu-Natal ANC chairman ZweliMkhize launched a scathing attack on unruly youth in the party, calling for an end to the use of derogatory language directed at the ANC and its' leadership.

Mkhize was addressing a rally at Osizweni outside Newcastle in northern KZN for the

arrival of the centenary torch in the province on Sunday.

His comments came two days after Malema criticised ANC president Jacob Zuma of

dictatorship during a lecture at Wits University on Friday.

Mkhize told supporters that while the party accepted diverse views, the use of foul

language and an attack on the party was unacceptable and would not be tolerated.

He also warned about the party running out of patience over bad behaviour.

―We hope that people can behave themselves before it gets to a point where the ANC

gets fed up with unruly behaviour,‖ said Mkhize.

―The ANC has enough might to expel anyone who displays unacceptable

behaviour inside the party.‖

He emphasised that the ruling party was bigger than any individual and had in the past

100 years survived challenges by individuals who failed to follow party discipline.

Party national chairwoman BalekaMbete echoed Mkhize's sentiments of a party that

needs disciplined young people who will lead the party in the future.

While not mentioning Malema by name, she said the party wouldl eventually run out

of patience with unruly individuals.

The arrival of the torch marked the beginning of a host of activities by the ruling party

in KwaZulu-Natal and will see the torch circulating around the province.

Among the key activities in April would be a lecture on former party president Josiah

Gumede to be delivered by president Zuma in Durban later this month.


1 April 2012

The New Age

Sapa

ANC will support the people: Mbete The ANC will always be on the side of the people, the party's national chairwoman BalekaMbete said on Sunday.

"As we celebrate 100 years of the existence of our organisation, we would like to

stress that the ANC will always on the side of the people," she told a church service in

Newcastle on Sunday.

Calling on community members to continue supporting the African National

Congress, she said they should not be swayed by views of individuals who spoke

outside party structures.

"We appeal to you to continue putting your trust in the ANC, because we are the party

that stands by the people, even though sometimes some of our members will do things

that are not in line with party principles," she said.

Mbete watched as the ANC centenary torch was delivered by Mpumalanga ANC

chairman David to his counterpart in KwaZulu-Natal Dr Zweli Mkhize.

Mbete said the ruling party's centenary activities would help with healing, especially

of those who suffered the loss of loved ones during the struggle.

"A celebration like this helps with such a process because the more you talk about

something the better you feel and you get strong and heal," she said. The torch

accompanied ANC officials as they visited a number of homes of former struggle

heroes in the area.

1 April 2012

Sunday Times

Page 1

CaiphusKgosana

Moe Shaik up for top bank job Top spy Moe Shaik is set to join the Development Bank of Southern Africa as head of its international division, a move that has caused some unhappiness within the bank.

The Sunday Times has learnt that high-level talks are under way to move Shaik from

intelligence services - where he clashed with State Security Minister Siyabonga

Cwele - to the state-owned development finance institution as the head of its

international operations.


It is understood that President Jacob Zuma is facilitating Shaik's move through

Finance Minister Pravin Gordhan, who is the shareholder representative.

As head of the international division tasked with identifying investment opportunities

in the Southern African region and expanding its investments into developing

countries such as China, India and Brazil, Shaik will be one of the most powerful

executives at the institution.

The bank is planning to invest R45-billion in massive infrastructure projects, R15-

billion of which will go to projects in other Southern African countries.

But there are murmurs of discontent within the bank over Shaik's imminent

appointment. CEO Paul Baloyi is said to be among those unhappy with the move.

A spokesman for the bank refused to discuss the matter. "We are not aware of such a

move, it has not been confirmed internally," said spokesman Jacky Mashapu,

declining to comment further.

But bank insiders and intelligence sources said it was almost a done deal.

Shaik - who heads the foreign branch of the State Security Agency - is under pressure

to leave following his much-publicised spat with Cwele.

Their relationship soured when Shaik refused to obey certain instructions from Cwele.

Shaik's attempts to get Zuma to intervene on his behalf failed, so the former spy had

no option but to find other employment.

State Security Agency head Jeff Maqetuka and head of the agency's domestic branch

Gibson Njenje - who also had a fallout with Cwele - have already left the agency.

Negotiations have been going on behind the scenes for months to pave Shaik's way

out of the agency, and are said to be at a sensitive stage.

A senior manager at the bank, who spoke on condition of anonymity, said some of his

colleagues had raised concerns when they heard Shaik would be joining them.

"What I pick up is fear, people fearing the reputation of his family and its history.

They fear what it will do to our reputation," said the insider.

Shaik's brother Schabir - who was Zuma's financial adviser - was convicted for fraud

and corruption relating to bribes he solicited from a French arms company, allegedly

in return for Zuma's protection of the arms manufacturer against investigation of the

multibillion-rand deal.

However, the insider said he favoured Shaik for the position, given his experience as a

former ambassador to Algeria; his extensive international contacts and networks; and

his access to those in power.


"You need someone who can call the minister of international relations and talk to her

directly," the senior manager said.

"Most of our executives do not have that kind of direct access."

The insider said the bank now had a mandate to move beyond Southern Africa and tap

into the enormous market offered by South Africa's participation in Brics - the forum

of the world's top developing countries.

The bank has been given a role within the Brics Secretariat which will help it identify

investment opportunities in India, China, Brazil and Russia, and help similar

institutions in those countries gain access to investment opportunities in South Africa.

Shaik, a former adviser to Nkosazana Dlamini-Zuma when she was foreign affairs

minister, has held various influential positions, including that of South Africa's

consul-general to Hamburg.

He helped wind up Schabir's company, Nkobi Holdings, and pay its debts to the state

after his brother was sent to jail.

Presidency spokesman Mac Maharaj had not responded to queries sent to him

regarding Zuma's involvement in efforts to secure Shaik a job at the bank at the time

of going to press.

1 April 2012

Sunday Times

Page 2

Rob Rose, Stephan Hofstatterand MzilikaziWaAfrika

Damning memos into MTN's Iran escapades The Hawks priority crimes unit yesterday confirmed they were "considering opening an inquiry" into whether MTN's bosses broke the law, presumably including the Corruption Act, in efforts to secure a licence in Iran.

Among those fingered in court papers filed by rival bidder Turkcell in Washington

DC this week is MTN chairman and ANC heavyweight Cyril Ramaphosa, who is

accused of being an accomplice in the controversy.

Evidence lodged in the US courts on Wednesday claims MTN scored a cellular

licence in Iran in 2005 after bribing a slew of politicians and promising that the SA

government would supply arms to Iran and support the country's nuclear programme.

Turkcell claims that Ramaphosa was part of a conspiracy called "Project Snooker"

with MTN's former boss, Phuthuma Nhleko, CEO Sifiso Dabengwa and former

executive Irene Charnley to "steal" the licence. In November 2005, Iran granted the

licence to Irancell, in which MTN owned 49%.


"Each of these four individuals directed the activities ... were principal decision-

makers and architects of the MTN strategy [and] were directly involved in the

approval of the actions taken by MTN," Turkcell said in court papers.

Turkcell says Ramaphosa helped get political support for Iran and was aware of the

bribes and how MTN tried to get arms to Iran after SA's arms control committee had

blocked all such arms deals.

Court documents say MTN paid $440-million in secret bribes disguised as "loans" to

companies in Iran, paid $400000 to Iran's deputy foreign affairs minister,

JavidGhorbanoghli, and bought a house in Pretoria for SA ambassador to Iran Yusuf

Saloojee.

Secret MTN documents, disclosed for the first time this week, include:

A 2007 memo sent to Nhleko in which MTN officials said Iranian politicians had

"reminded [former president Thabo Mbeki] that certain defence-related promises were

made by [defence minister Mosiuoa Lekota] in 2004 in exchange for which MTN was

allowed to replace Turkcell in the Irancell consortium";

A memo from Charnley in November 2004 to Iran's deputy defence minister, in

which she offered to facilitate a meeting between SA arms company Denel and Iran's

helicopter agency. Iran wanted to buy South African Rooivalk helicopters;

A draft letter from Nhleko to Iran's deputy defence minister in late 2004 saying "the

matters you raised relating to national security and defence matters between SA and

the Islamic republic of Iran has (sic) been fully accepted by MTN";

A May 2007 MTN memo titled "Top Secret" says Saloojee was "told by [Charnley]

that our minister of defence has agreed to give them the 'Fish'". "Fish" was a

codeword used by MTN for arms;

A December 2006 memo from Nhleko to Charnley ordering her to "finalise all

agreements with consultants" that helped MTN get the Iran deal. These consultancy

agreements set out a one-off fee of $400000, allegedly paid to Ghorbanoghli as a

bribe; and

Transfer documents for a property in Faerie Glen, Pretoria, to SA ambassador

Saloojee, dated February 2008. This property, worth about R1.57-million, was paid

for by MTN, according to Turkcell.

The memos have been submitted to a commission of inquiry set up by MTN and

chaired by retired UK judge Lord Leonard Hoffman, which began investigating the

claims last month.

Although MTN claims this commission is independent, the four-member panel

includes Hoffman and three MTN directors, Jan Strydom, Jeff van Rooyen and Peter

Mageza. It is expected to finish its work by June.

David Maynier, the Democratic Alliance spokesman on defence, sent a letter to

Hawks boss General Anwa Dramat on Friday asking for a criminal investigation into

this case.


"It is not good enough for MTN to be investigated by an internal committee. It seems

to me that there is a compelling case that MTN may have been involved in corrupt

acts," he said.

Ramaphosa yesterday rejected Turkcell's claims that he pulled political strings to

benefit MTN, saying that all Turkcell's allegations against him and Dabengwa were

"non-specific and unsubstantiated".

"Suggestions that MTN influenced South African policy with regards to its

armaments and nuclear programme are ludicrous and have already been denied by the

SA government," he said.

Sources close to Ramaphosa told the Sunday Times that while he certainly did not

organise meetings between Mbeki and Iranian officials, as Turkcell claims, he was

still quite shocked at some of the internal MTN memos revealed in Turkcell's papers.

Charnley vehemently denied the allegations, telling the Sunday Times: "I can

categorically state that those allegations are absolutely fictional."

But, in its court papers, Turkcell says Charnley was "key to the political clout" with

government, as she was a business partner of Mbeki's wife, Zanele, and a close friend

of Lekota.

Saloojee, meanwhile, "had been housemates" with Mbeki, according to the papers.

"Saloojee explained [in 2007] that he was hoping to purchase a home in SA that

required the equivalent of $200000. MTN agreed that it owed [him] the bribe

payment. On April 26 2007, MTN provided the direct payment into a trust account for

ambassador Saloojee," Turkcell said.

One of the more damning claims is that MTN leant on government to abstain from a

crucial United Nations vote in November 2005 declaring that Iran was breaking the

rules on nuclear disarmament.

South Africa did abstain from the vote, which gave Iran extra time to comply with the

nuclear rules. Three days later, the Iranians granted the licence to MTN's Irancell

consortium.

Although Nhleko signed most of the damning memos, he did not return calls or

SMSes from the Sunday Times.


1 April 2012

Sunday Times

Page 4

SibusisoNgalwaand SibongakonkeShoba

'Zuma must be disciplined' Controversial ANC Youth League leader Julius Malema and his comrades have intensified their assault on President Jacob Zuma by openly calling him a dictator and asking that he be disciplined.

Youth league secretary-general SindisoMagaqa wrote to GwedeMantashe, his

counterpart in the mother body, asking him to consider whether Zuma had breached

the ANC's constitution.

In a letter dated March 19 2012, Magaqa complained about the answer given by Zuma

at a business breakfast in Port Elizabeth last month, when the president was asked

about the future of the league once Malema had gone.

Magaqa wrote: "We believe that [Zuma's] utterances are a contravention of the ANC

constitution and conduct because they violate Section 25.2 of the ANC constitution,

which forbids usage of discipline to settle political scores and suppress dissent.

"The utterances also undermine the integrity and consistency of the ANC officials,

who have the obligation to provide objective, consistent and fair leadership ..."

Magaqa reminded Mantashe that, in February, the ANC secretary-general had

chastised ANC treasurer-general Mathews Phosa for speaking about the disciplinary

action against Malema.

Phosa had told a rally in Limpopo that the ANC did not throw away its own - a

reference to Malema's case.

Magaqa's letter said: "The statements of [Zuma] not only undermine the statement and

public commitment of the ANC officials, but brings into question the integrity and

fairness of the disciplinary hearing, which is still in process."

Magaqa said Zuma had sought to influence the ANC's national disciplinary committee

of appeals, and had in fact given a "directive" to the appeal committee.

The league has embarked on a full-scale campaign against Zuma as it becomes clear

that opposition to the president is mounting ahead of the ruling party's national

conference in Mangaung in December.

The youth league has been circulating an SMS with the line-up of its desired leaders.

The SMS has Zuma's deputy, KgalemaMotlanthe, as president, Phosa as his deputy,

GwedeMantashe as national chairman, Nkosazana Dlamini-Zuma or Thandi Modise

as deputy secretary-general and Tokyo Sexwale as treasurer.


In an unprecedented attack on Friday evening, Malema accused Zuma of intolerance

and of traumatising the youth league.

At a public lecture at the University of the Witwatersrand to celebrate the ANC's

centenary, Malema accused Zuma of being intolerant and of suppressing divergent

views.

"It is under President Zuma that we have seen the youth in the ANC being

traumatised; the youth in the ANC expelled from their home; the critical voice of the

voiceless being suppressed.

"We have seen under President Zuma democracy being replaced by a dictatorship,"

Malema told the audience in the packed Wits Great Hall.

He said previous ANC leaders had given the league space to be critical and to differ

from them, but when it came to Zuma, the league's militancy was seen as ill-

discipline.

Phosa spoke at the same meeting, and stressed that the ruling party needed to give the

youth league space to be able to think and express its views.

Magaqa refused to comment on the letter to Mantashe, saying the ANCYL did not

communicate on internal matters to the media.

Mantashe was not available for comment and did not respond to a text and voice

messages. But ANC spokesman Jackson Mthembu reacted angrily to Malema's

comments.

Mthembu said Malema's utterances were a "distortion" and had no basis.

Mthembu issued a veiled threat to the youth leader.

"If this assault and insults on the ANC leadership by Malema continues, he will be

unwittingly dragging himself to a precipice where a point of return is impossible in

the eyes of ANC members... We remain totally opposed to any notion that President

Zuma is a dictator and that he traumatised any structure of the ANC..." said Mthembu.


2 April 2012

Business Day

Page 4

Stephen Grootes

Phosa risks backlash for supporting change in Mangaung African National Congress (ANC) treasurer-general Mathews Phosa appears to be emerging as one of those spear-heading the campaign for change at the ANC’s Mangaung conference in December.

While much of the attention has focused on the possible ambitions of Deputy

President KgalemaMotlanthe to take over from President Jacob Zuma , Mr Phosa also

seems to be playing a role in the succession battle.

He is the only one in the ANC‘s top six office bearers prepared to appear in public

repeatedly with ANC Youth League leader Julius Malema. On Friday night, he shared

the stage with Mr Malema at the University of Witwatersrand, telling the crowd: "Let

us engage robustly, but let us do this with the best interests of the country at heart. We

must not be scared of ideas, they are the spears of tomorrow."

Mr Phosa appears to be in full campaign mode. If history is any guide, ANC leaders

are very coy about making their leadership ambitions public. Mr Zuma's campaign at

Polokwane in 2007 was a rare exception.

In the rough and tumble of ANC politics, a leader who lets it be known that they are

ambitious can find themselves the target of vicious campaigns. This makes it difficult

for a figure like Mr Motlanthe. If he is seen as the main contender against Mr Zuma,

then Mr Zuma's allies will attack him. He already faces claims in the court of public

opinion over Sunday Times reports that his partner, GuguMtshali, solicited a bribe in

a deal involving helicopter parts and sanctions-busting with Iran.

This leaves Mr Phosa to play a campaigning role. Since he has already publicly

aligned himself with the Malema camp, by saying the ANC "doesn‘t have a dustbin

for comrades", Mr Phosa could feel that he has nothing to lose. The ANC has already

condemned him for those comments.

Independent political analyst NicBorain says: "It makes a lot of sense tactically that

(Mr Phosa) goes out there and takes the heat for Motlanthe. He knows he has not got a

shot (at the top job) but he could end up with a senior position."

On Friday, Mr Phosa‘s speech was aimed at the poor. "Being unemployed is

undignified," he said. "It‘s like being uneducated."

Taken with his comments last week that SA was at risk of a North African-style

revolution, Mr Phosa‘s use of the phrase "economic freedom" and his appearance

with Mr Malema on Friday, it could be argued he is attacking the economic status

quo, and therefore criticising current ANC policies. His follow-up line — that "If


government and private sector can join hands to unlock opportunities inherent in these

opportunities, we can go a long way towards the goal of economic freedom" —

sounds like a campaign speech. His choice of words has a key resonance with Mr

Malema‘s "economic freedom" march to Pretoria last year.

But will Mr Phosa‘s public alliance with the league lead to success in Mangaung?

"You can‘t spend most of your time being seen with people who are not credible.…

Effectively, we will see Phosa being tarred with the same brush," says political

analyst and Graduate Institute of Management Technology director Prof SiphoSeepe.

He points out Mr Malema is not just facing political pressure from the disciplinary

machinery of the ANC, but also investigations of his finances.

Prof Seepe explains that any campaign by Mr Motlanthe and Mr Phosa faces a

problem because of the small number of organisations supporting them.

"From an organisational balance sheet, they still have much work to do," he says. So

far, it is only the youth league that has publicly backed the Motlanthe-Phosa camp. He

says Cosatu and other organisations all appear to back the Zuma camp.

But Mr Phosa'sspeech on Friday, and other recent appearances, are only the start of

his public campaign. He is likely to spend more time in the company of Mr Malema,

well aware of the political message that sends.

2 April 2012

Business Day

Page 10

Peter Bruce

The Thick End of the Wedge The reporting by City Press on the sorry saga of President Jacob Zuma’s attempts (and his attempts to deny it) to reinstate General Richard Mdluli as head of crime intelligence in the South African Police Service has been exemplary.

THE reporting by City Press on the sorry saga of President Jacob Zuma ‘s attempts

(and his attempts to deny it) to reinstate General Richard Mdluli as head of crime

intelligence in the South African Police Service (SAPS) has been exemplary.

To recap very briefly, Lt-Gen Mdluli was arrested last year and charged with murder

and kidnapping, relating to a love triangle 13 years ago. He has since also been

accused by colleagues of nepotism and abuse of police funds. Last month the head of

the intelligence inspectorate, Faith Radebe, recommended the SAPS investigate the

latter accusations, the murder and kidnapping charges having been mysteriously

dropped earlier.

Then, last week, in a terse and as yet unexplained announcement, the SAPS said

Mdluli‘s suspension had been lifted, implying he was free to return to his old job

running police intelligence.


Yesterday, City Press gave a chilling account of the political pressure brought to bear

on Ms Radebe and on acting National Police Commissioner NhlanhlaMkhwanazi, to

back off and leave Mdluli alone.

Things have apparently gotten so bad that Mkhwanazi, a career policeman, has

threatened to resign if Mdluli returns.

Needless to say, a battery of "spokesmen", including Mac Maharaj at the Presidency,

have been dancing up and down denying that Jacob Zuma is orchestrating this and, if

you follow their logic, barely knows anything about it at all.

Quite reasonably, no sane person believes them. This is just another example of what

Zuma is doing to our national life. As I have said way too many times for my own

good, the president is in this for himself first and the country second. He still has

Shaik-related fraud and corruption charges stalking him and will do anything to keep

them at bay.

Fortunately, wiser heads in the ANC are beginning to appreciate that the country

cannot be held to ransom for the president‘s personal safety. There is talk now (once

again reported in City Press) of splitting the jobs of ANC party leader (for which

Zuma is running again at the party congress this coming December) and head of state.

As a matter of principle, that makes sense. There is a lot of talk in the land about

changing the constitution — one change that would get overwhelming parliamentary

support would be to disallow party leaders ever to become president or, in any way,

run the state.

Jacob Zuma could chalk the change up as a personal legacy, so much damage has he

done to the body politic. Ideally, we should elect a parliament and a president in

separate elections.

As for Lt-Gen Mkhwanazi, we should all be praying for him this week as he seeks to

explain to Zuma why he doesn‘t approve of the Mdluli reinstatement. Already there

are dossiers flying about with all sorts of allegations about the acting commissioner.

We should, for the moment, dismiss those for the political interference they are.

THE Taco Kuiper investigative journalism award is about the only genuinely

authentic media award given in SA. It isn‘t from a company hoping to generate some

media goodwill towards itself and it isn‘t from some bogus PR front posing as a

"Press Club". Kuiper was a decidedly odd fellow, filled with conspiracy theories

about everything. But the most important thing about him is that he is dead and thus

can‘t benefit in any way from the award. It was won (again) by the Sunday Times

investigations team of Rob Rose, MzilikaziwaAfrika and Stephan Hofstatter, whom

City Press (well, actually, its publisher, Media24) has very recently tried and failed to

poach. The attempt doesn‘t surprise me. They‘re a good team. That it failed is just

fascinating. I‘ll swear none of those guys takes home more than R45k a month.


2 April 2012

Business Day

Page 11

Bob Head

SA strikes right tax balance to address its challenges By cutting the tax on the rich we would not see much more growth and we certainly would not have the resources to fix what needs to be fixed.

An Article on these pages last week suggested disappointing economic growth makes

a good case to lower tax rates in SA. It was a good article and it keeps rattling around

in my mind.

The issues raised were important and we should think about whether we should have

lower taxes for the rich.

The nub of the article rested on three statements. The first was to "lower tax rates, if

they lead to faster growth, enable a government to spend more while appropriating a

smaller, less suffocating share of a larger economy". This is almost a tautology or, put

another way, is always true. The premise is that lower tax rates lead to faster growth

and the supposed consequence is that the government collects more taxes. But that is

simply not the case.

Look at the countries where the tax take as a percentage of gross domestic product

(GDP) is over 40%. They are often wealthy and they have consistently grown.

Compare that with SA, where the tax percentage to GDP is in the mid-20s, just over

half that rate. According to the lower tax premise, we should be enjoying stellar

growth.

The second statement was that "the discouraging growth performance and growth

outlook for SA makes the case for lower tax rates and a smaller share of gross

domestic product taken by the government a powerful one". My flippant response is

that "the discouraging performance and growth outlook for SA is because bananas are

yellow" — it has about the same level of logic.

Growth is driven by many things — new ideas, energy, application, greater efficiency,

technology, the skill and education of the workforce, the ease of doing business, and

ego. We will get great growth if we leverage our competitive edge in the world

economy and for that to happen the nation has to be equipped. The legacy — human

and infrastructure — needs to be fixed. And of course there has to be an incentive as

well. And that is where the article does make a valid point — 100% taxes do destroy

that incentive.

But our percentage tax take in SA is in the mid-20s, low by world standards. And over

the past 15 years that tax has been spread more evenly across the economy.

The third statement was "the bottom 20% of income earners, many of whom report no

earned income at all, would have been much better off for a tax and regulatory regime


more sympathetic to high-income earners. Benefits would have been provided in the

form of employment opportunities and employment benefits and in the actual benefits

provided by the government."

My experience of rich people is that they like expensive goods, great holidays, big

cars, and they are not altogether focused on creating 5-million new jobs. But perhaps I

am just too cynical.

While economists naturally focus on economics, we do have to have regard for other

issues beyond economics and that means social and political issues as well. To be a

successful economy we need social cohesion and stability. Virtually everyone

appreciates that social cohesion is key to the development of a safe and prospering

SA. Freedom, social order and safety are things we crave. We need to tackle the

enemies of social cohesion to enjoy these things.

And what are the enemies? The enemies of social cohesion anywhere in the world are

unemployment, massive income and wealth disparities, lack of health, lack of

education, lack of housing, lack of opportunities and the lack of basic facilities. SA

has significant challenges with each of these enemies.

To tackle each of these enemies requires that the private and public sectors help

generate growth and for the public sector to tackle some of the issues directly where

the private sector is unable to do so. The public sector requires resources to this.

These resources can come either from taxes or from borrowing or both. We can see

the dangers of excessive borrowing from the difficulties many supposed developed

states currently face.

US president Herbert Hoover noted at the time of the Wall Street crash in 1929:

"Blessed are the young for they shall inherit the national debt." So some prudence is

required to keep the budget in reasonable balance. And that means taxes. One of the

great successes of the democracy years is the fiscal management in SA.

It has also been suggested that the progressive tax system in SA may not be fair. We

are not unusual in having a progressive tax system where the higher earners are

expected to shoulder more of the burden to provide the resources to those who need

them. Sadly I have never inherited anything and whatever I have I made I have seen a

lot of it disappear in tax. That is just the way it is. I find inherited wealth more

difficult to stomach and when the income on that wealth is hidden in trusts and

structures to avoid tax, then I really do see red.

My view is that our tax system is reasonable, responsible and balanced given the

challenges that SA faces. In fact, if the government had more capacity I would argue

for higher taxes to fix the legacies of the past and to improve our competitiveness.

Some critics of SA‘s tax structure make the connection that higher taxes cause higher

pay for our business leaders, which in turn feeds through into higher prices to

consumers. I have served on half a dozen remuneration committees over 20 years and

I can honestly say that pay has never been determined by looking at tax rates. Sadly, it

is decided by looking at market benchmarks, which I believe fuels pay levels for our


senior executives since no remuneration committee wants to pay bottom-quartile

salaries and bonuses, and that generates a whole new and different inflation. But that

is another debate taking place all over the world.

We seem to have lost sight of what is a reasonable salary and bonus as companies

look at competitors and listen to some executives who bleat on about not earning the

same as others.

What are the solutions?

It is a question of balance and I believe we have that balance in SA. And like any

balancing act, it will require adjustment, refinement and calibration over time.

The tax system needs to be fair and clear without acting as a disincentive and we need

to get the biggest bang for the buck for government spending. Neither will be perfect

but we need to continue to try to optimise the economy. And that is precisely what I

believe we are trying to do.

By cutting the tax on the rich, I do not believe we will see much more growth and we

certainly would not have the resources to fix what needs to be fixed. We are a country

with relatively low tax rates with huge challenges. If you love SA then it would be

best if we focused on attacking those enemies of social cohesion robustly and

resolutely.

2 April 2012

Business Day

Page 3

FrannyRabkin

Hlophe ruling puts JSC almost back where it started The saga has been so prolonged, with so many ins and outs and back and forths, one can be forgiven for having forgotten what it is actually about: the possibility of the first recommendation for judicial impeachment in democratic SA.

IN 2009, the Judicial Service Commission (JSC) declared the Hlophe saga — the

judicial misconduct dispute that rocked the judiciary and polarised the legal fraternity

— as "finalised". It must now contend with the reality that it is anything but.

The saga has been so prolonged, with so many ins and outs and back and forths, one

can be forgiven for having forgotten what it is actually about: the possibility of the

first recommendation for judicial impeachment in democratic SA.

In May 2008, all the then justices of the Constitutional Court complained to the JSC

that Western Cape Judge President John Hlophe had improperly tried to influence the

outcome of judgments, then pending before their court, related to corruption charges

against President Jacob Zuma .


Judge Hlophe counter-complained that the way the justices had gone about their

complaint had breached his constitutional rights.

On Friday, the Constitutional Court gave a unanimous judgment refusing to hear

Judge Hlophe‘s appeal against two Supreme Court of Appeal judgments that set aside

the JSC‘s initial inquiry in 2009 and its controversial decision to clear both sides in

the dispute. A united Constitutional Court in this dispute is a good reflection of the

state of SA‘s highest court.

It is also a feather in the cap of Chief Justice MogoengMogoeng, whose leadership of

the court was expected to be seriously tested by this case. But the court‘s decision will

be a headache for the JSC, bringing it, almost, right back to where it started.

But not quite. Some things have changed since 2008, in particular the law governing

how the JSC deals with misconduct complaints. One of the first things it will have to

decide is whether the dispute should be resolved under an amendment to the Judicial

Service Commission Act, which came into force in 2010, or under its previous rules

for dealing with complaints.

The first JSC inquiry was conducted under the old rules. But last year, the JSC

expressed a "prima facie" view that pending complaints should be decided under the

act.

There are significant differences between the rules and the act. Under the rules, a

formal misconduct inquiry is presided over by the JSC (minus MPs ).

Under the act, an inquiry — where potentially impeachable conduct is concerned — is

conducted by a judicial conduct tribunal. The members of the tribunal are appointed

by the chief justice and must consist of two judges and another person, not a judge,

whose name is on a list kept by the chief justice‘s office.

A problem at the moment is that a tribunal cannot be constituted until Parliament has

passed regulations allowing the chief justice and the justice minister to compile the

list of non-judges who could be appointed to the tribunal. So if the act applies,

resolution of the dispute will be delayed. The act is also significantly different in

dealing with public access to a misconduct hearing.

Under the rules, the default position was one of openness.

Under the act, the default position is closed proceedings.

However, the benefit of the Supreme Court of Appeal judgments is that they have

clarified some of the basics. The JSC now knows that, whether the rules or the act

applies, any inquiry must allow cross-examination. The JSC‘s 2009 decision was set

aside as irrational because cross-examination had been disallowed.

The Supreme Court of Appeal also held that when it comes to misconduct inquiries

against a high court judge, the premier of the relevant province and its judge president

are entitled to be part of the JSC when it makes its decision. This would, in theory,

take the JSC members up from 13 to 15.


Finally, the JSC knows its final decision must be made by a majority of it members,

and not by a majority of those present and voting.

This may add an interesting dynamic as there will be a few JSC members who will

likely recuse themselves — Justice Mogoeng, who had initially tried to mediate the

dispute; JSC commissioners Mbuyiseli Madlanga SC and Dumisa Ntsebeza SC (both

had been counsel in the first JSC process); and Western Cape Premier Helen Zille,

whose reported public comments on the dispute in its early days were not very

temperate or evenhanded.

Even if 11 out of 15 JSC members participate in the decision, the judgment implies

that at least eight votes are needed for a particular outcome to make it a decision of

the JSC.

2 April 2012

Business Day

Page 1

Sure Kamhunga

SA’s ‘strange breed’ of leaders a threat to democracy

The chairman of Nedbank , SA‘s fourth-largest listed banking group, Reuel Khoza,

has warned SA‘s democracy is under threat from a "strange breed" of political leaders

who appear to be incapable of dealing with the demands of modern-day governance

and leadership.

He said SA was fast losing the checks and balances provided by the constitution, and

called on South Africans to hold to account "putative leaders who, due to sheer

incapacity to deal with the complexity of 21st century governance and leadership",

could not lead.

"We have a duty to insist on strict adherence to the institutional forms that underpin

our young democracy," Dr Khoza wrote in Nedbank‘s latest annual report, which was

released on Friday.

His comments are the first so far by the chairman of a JSE-listed banking group since

the government announced plans to review the judiciary, and some leaders in the

African National Congress (ANC) called for the constitution to be reviewed as it

hindered social and economic transformation.

On the same day, the embattled president of the ANC Youth League, Julius Malema,

derided President Jacob Zuma ‘s leadership, describing it as a " dictatorship" at a

public lecture at Wits University.

The fact that the chairman of one of SA‘s largest companies has publicly rebuked the

political leadership could be seen as an indication of the depth of disquiet in the

private sector about the political direction of the ANC ahead of its elective conference

in December.


"Our political leadership‘s moral quotient is degenerating and we are fast losing the

checks and balances that are necessary to prevent a recurrence of the past," Dr Khoza

said. "SA is widely recognised for its liberal and enlightened constitution, yet we

observe the emergence of a strange breed of leaders who are determined to undermine

the rule of law and override the constitution ."

Dr Khoza said this was not the accountable democracy for which generations had

suffered. "The integrity, health, socioeconomic soundness and prosperity of SA is the

collective responsibility of all citizens, corporate or individual," he said.

He also called for a partnership between the government and the private sector to

solve SA‘s worsening unemployment crisis. This could be achieved by dismantling

barriers to entrepreneurship and seconding graduates to local authorities to gain the

experience needed in the private sector.

SA has more than 800000 unemployed graduates, most of whom studied humanities

and arts, which the private sector does not need, says research company Adcorp

Analytics.

Dr Khoza said: "One of the major socioeconomic and political challenges facing our

country is addressing unemployment and creating jobs. While these issues are

priorities on the national agenda, it should be acknowledged that there are few cases

in the world where government and big business have been able to create jobs on a

large scale.

"Job creation is also stifled if our economy is not expanding. The issue needs to be

addressed by focusing on entrepreneurship. Government should create an enabling

environment with minimal regulation to enable entrepreneurs to flourish," he said.

Dr Khoza said the education system was producing thousands of graduates each year,

yet the lack of skills and experience made it difficult to accommodate the m in the

formal economy.

"At the same time local governments ... are in dire need of efficient administration

and management. We believe government and the private sector should collaborate to

create a programme to deploy these unemployed graduates and recently qualified

people to local authorities for a few years," said Dr Khoza. " Corporate SA can play a

key role in sponsoring these graduates ."

There was also a need to use retired executives to mentor young graduates.

1 April 2012


Page 1

Gcwalisile Khanyile and Piet Rampedi

DG’s R1.4m ‘bribe’


Soon before director-general Thabane Zulu took part in the awarding of a R10 billion

contract, a mysterious R1.4 million was deposited into his personal account.

The Sunday Independent traced the amount from a black economic empowerment

company that stands to benefit from the multibillion contract awarded in January by

the SA Social Security Agency (Sassa) – a unit of the Social Development

Department – to Cash Paymaster Services (CPS) to dispense social grants.

The BEE company is known to The Sunday Independent.

The Sunday Independent followed the money trail after the awarding of the contract.

According to documents in our possession, an intermediary deposited R2m into the

business account of African Access Information and Communication Technology, on

behalf of the BEE company. The deposit was done at the beginning of October last

year.

A few days later, on October 10, 2011, African Access transferred R1.4m into Zulu‘s

account.

The transactions between African Access and Zulu took place a few weeks before the

process to adjudicate the contract and three months before the successful bidder was

announced.

Zulu is a former director of African Access. A month after the money reached Zulu,

he and three other adjudication committee members awarded the tender to CPS.

According to a Sassa memorandum, dated November 25, 2011, the four-member

committee signed a letter in which they ―individually and collectively accepted the

bid evaluation committee‖ recommendation that CPS be awarded the contract.

Zulu has denied any wrongdoing.

In a terse SMS, Zulu dismissed the allegations as ―preposterous‖ and challenged

critics to report him to law enforcement agencies if they had proof of wrongdoing on

his part ―to avoid speculative innuendos, whose motives are unknown (sic)‖.

His lawyer, Naren Sangham, also emphasised that ―there is absolutely no basis for

these allegations‖.

―My client treats these allegations with the contempt that they deserve and invites any

person or group of persons or any organisation or organisations, who claim to be in

possession of any evidence of wrongdoing on the part of my client to conduct

whatever investigation that they may so desire. My client maintains his innocence and

further stands by his impeccable reputation and honesty,‖ Sangham said.

He twice refused to respond directly on whether Zulu received the money or not.

On the third occasion, he finally said: ―My client categorically denies receiving the

money.‖


CPS is wholly owned by Net1 UEPS Technologies.

The Sunday Independent has established that Zulu was appointed as a director of

African Access on August 19, 2008.

He was appointed director-general of the Human Settlements Department in April

2010.

Monwabisi Ludonga, one of African Access‘s directors, denied that the company

transferred R1.4m into Zulu‘s account.

He insisted that no such payment was made to Zulu, since he left in 2010 and he was

no longer a director and did not render any services to the company.

―I am a signatory of everything that goes out of my account at African Access and

have never paid Zulu that money. I do not even know about it. If there was something

that was paid (out), I would have known about it.

―Even if you can come to my company and check our books, we do not have that kind

of transaction,‖ said Ludonga.

Net1 UEPS Technologies CEO Serge Belamant dismissed as baseless claims that her

company‘s partners paid Zulu.

―I must say that the unsubstantiated attacks on our company are getting a little

tiresome as invariably the accusations made never seem to have any foundation or

substance.

―I assure you, however, that if you provide me with the proof of ‗reliable source‘, I

will commence a full investigation into this matter,‖ Belamant said.

―I will also consult with my attorneys as I believe that it is in the public interest that

you disclose your ‗credible source‘ so that all can determine if there is any truth to

these allegations or if these are simply made up in order to attempt to derail the

tender‘s implementation.‖

Some key players in the awarding of the contract could also be linked to the

companies that benefited from the contract. Some directors were influential in the

evaluation of the contract.

The Sunday Independent has also learnt that R600 000 was paid towards a mortgage

bond of one of the committee members soon after the contract was awarded.

The contract has led to a tug-of-war between CPS and the losing bidders, led by Absa

subsidiary AllPay. Senior politicians have been dragged into the controversy.

AllPay and Empilweni were contracted to dispense the grants for the past decade, but

the deal expired yesterday.


Some of the losing bidders have since taken the department to court demanding a

review of the CPS contract, alleging irregularities and conflict of interests.

Human Settlements Minister Tokyo Sexwale has been sucked into the saga.

The Mail & Guardian linked Sexwale to the contract through Mvelaphanda

Resources‘ former director and employee, Brian Mosehla.

The businessman‘s company, Mosomo Investment Holding, has apparently acquired a

20 percent stake in CPS.

CPS announced two weeks after winning the tender that it had brought in Mosomo as

one of its BEE partners. However, The Sunday Independent can reveal that the two

had sealed a deal in October last year already.

Social Development Minister Bathabile Dlamini‘s spokeswoman, Lumka Oliphant,

has refused to say whether she was aware of any payment to Zulu by the beneficiaries

of the tender.

―It may well be that Mr Zulu sits on different directorship positions and/or is a

shareholder of different companies which may have been declared to Sassa, but you

have not given us anything to work on in order to verify the information at your

disposal,‖ Oliphant said.

Last week we reported that Absa allegedly ripped off the social grants beneficiaries as

the battles for the billions gets uglier, and political and business heavyweights get

dragged into the fracas. Absa has denied the allegations.


1 April 2012


Page 3

Shaun Smillie

How SA’s witness helped Dewani

It was the SA government‘s own expert psychiatric witness, ironically, who did most

to persuade the British High Court this week to stop Shrien Dewani‘s extradition to

SA to stand trial for the murder of his wife, Anni.

On Friday, High Court Judge John Thomas surprised and disappointed Anni‘s family

by upholding Dewani‘s appeal against the decision of a lower court that he should be

extradited.

He and an associate judge ruled that it would be ―unjust and oppressive‖ to extradite

Dewani in his current condition. He is said to be suffering from severe depression and

post-traumatic stress disorder.

The judges ordered that the case be sent back to Westminster Magistrate‘s Court,

suggesting that it will be a long time before Dewani faces justice in SA, if ever.

If the case comes back to the High Court as expected, and Dewani loses, he may still

appeal to the Supreme Court and then the European Court of Justice.

Senior District Judge Howard Riddle had ruled in the Westminster court last year that

Dewani should be extradited. He dismissed his lawyers‘ arguments that Dewani‘s

human rights would be violated because of the threat of rape by HIV-infected inmates

in SA prisons.

However, the High Court judges ruled on Friday that Judge Riddle had not given due

consideration to the evidence of psychiatrists from both sides that Dewani was not

mentally fit to stand trial.

Judge Thomas did add that he believed Dewani‘s mental health was improving and he

would eventually be fit enough to be extradited.

―The strength of the psychiatric evidence was a striking feature in this case,‖ the High

Court judgment read. ―Not only were the principal witnesses called by the appellant

and the government of South Africa psychiatrists of great eminence and distinction,

but their evidence before the senior district judge was essentially agreed, as we have

set out.‖

On July 14, during Dewani‘s extradition hearing in the Westminster court in London,

neuropsychiatry expert Professor Michael Kopelman – who was called by Hugo Keith

QC, representing SA – surprised the court by issuing a joint statement with

psychiatrist Professor Nigel Eastman, who was testifying on behalf of Dewani.


In it, they agreed that Dewani was suffering from severe depression and post-

traumatic stress disorder.

They also said he was a suicide risk and was unfit to plead because he was unable to

follow the detail of evidence or instruct his advocates.

Most importantly, both agreed that Dewani was unfit to travel to SA.

Kopelman also testified that psychiatric care offered at the three SA prison hospitals

was inadequate for the patient‘s condition.

During cross-examination Kopelman said that after examining Dewani twice over the

preceding months, he did not think he was faking mental illness as the SA

government‘s lawyers had suggested. However, he did add that he could not

completely rule out this possibility.

In Friday‘s judgment the two High Court judges said: ―We attach significance to the

evidence of Professor Kopelman on 19 July 2011 that extradition would worsen his

condition and make it more difficult to get him into a position where he was fit to

plead.‖

The High Court judges also hinted that the SA government had blundered by not

ensuring that Professor Sean Kaliski, a psychiatrist at Cape Town‘s Valkenberg

psychiatric hospital, give evidence by video link in the Westminister court hearing

because this would have allowed him to be cross-examined.

―The experts based in London did not have first-hand knowledge of what was

available in Valkenberg,‖ read the judgment. There were issues raised that were not

fully answered in Kaliski‘s written submission, it added.

This omission could come back to haunt the SA government because the judges

suggested the Valkenberg facilities could be a factor in future hearings on the case.

Rachael Collins, spokeswoman for the UK judiciary, said on Friday that they didn‘t

have a date for the next hearing as yet, although it could take place as soon as next

month.

―It will probably be administrative in nature, where the judge will agree with the High

Court findings,‖ she said.

The hearing would likely iron out the logistics of monitoring Dewani‘s mental health.


30 March 2012

The New Age

Abram Mashego

Police ‘now in crisis’

The Institute for Security Studies (ISS) on Thursday said the decision to reinstate

controversial crime intelligence boss, Richard Mdluli, was ―highly irregular, lacks

transparency and is unconstitutional‖.

Mdluli had been suspended from the police force and was facing serious charges

including murder, bribery, nepotism, theft of state funds, intimidation, abduction and

fraud.

Earlier this week, the SAPS announced the lifting of Mdluli‘s suspension allowing

him to ―immediately‖ return to work.

On Thursday, ISS senior researcher Johan Burger said the mere fact that the police

had decided to reinstate Mdluli without any explanation being given to the general

public created a confidence crisis. ―Mdluli is holding a senior position within the

crime intelligence and public confidence is crucial.

―Transparency is one of the fundamental principles of the Constitution of the

Republic of South Africa.‖

In a brief statement issued on Wednesday night, police head of communications Brig

LindelaMashigo said a decision had been taken to lift the suspension of Lt-Gen

Mdluli and Maj-Gen Solomon Lazarus ―concurrently‖.

Mashigo said the decision, which took effect on Tuesday, had been an internal

process and would not be discussed with the media.

Sources within the police said the decision to reinstate Mdluli appeared to be ―an

instruction from the top‖. Mdluli, whose charges were inexplicably withdrawn, had

previously compiled a secret intelligence report detailing how certain top politicians

were allegedly plotting to oust President Jacob Zuma.

Unconfirmed media reports this week suggested that Mdluli, whose relationship with

suspended police chief Gen BhekiCele had allegedly soured, was ―influential‖ and in

the running for the top cop job.

Police sources further claimed that several provincial commissioners attended a

meeting two weeks ago, where Mdluli‘s reinstatement was discussed.

Efforts to confirm Mdluli‘s status drew a blank as neither the police spokesperson

Mashigo andMdluli‘s lawyer Ike Motloung were prepared to talk about the crime

intelligence boss‘s reinstatement.


Mdluli‘s expected appointment to replace Cele, which has been described as a

―disgrace‖ by the DA police spokesperson Dianne Kohler Barnard, remains a closely

guarded secret.

30 March 2012

The New Age

Sapa

Cele inquiry resumes The board of inquiry investigating misconduct allegations against suspended police chiefBhekiCele resumed in Pretoria on Friday.

The matter was postponed two weeks ago after a key witness in the police lease saga

stalled proceedings, claiming she was sick and could not testify.

Public works official MokgaetjiTlolane requested to first see a doctor before she gave

evidence. She also had problems taking the oath, looking confused.

Evidence leader ViweNotshe hoped Tlolane's evidence would eliminate the

probability that property mogul Roux Shabangu could have been tipped off by public

works officials that the police needed office space.

Shabangu has identified Tlolane as the person who informed him that the police

wanted to lease the Sanlam Middestad building in Pretoria.

This is reportedly contained in a 60-page affidavit Shabangu aims to use to absolve

himself of any wrongdoing in the police lease saga.

Shabangu claims Tlolane arranged the first meeting with the SA Police Service, and

told him the matter would not go out to tender because of its urgency.

Tlolane had been eluding Notshe since the hearing started.

She initially demanded a subpoena to appear, and then a letter from her superiors

instructing her to do so.

30 March 2012

Mail & Guardian

Floyd Shivambu

Have your day in court, President Zuma In December the ANC will have its 53rd national conference in Mangaung. Almost all the media are speculating about what the real issues of focus will be -- and those relating to leadership elections seem to be elevated above all other issues. There is, however, an elephant in the room.


No one is paying significant attention to it, either because they are oblivious or

because they fear those with state power will suppress and isolate them if they speak

about this issue. At the risk of being isolated and purged, I want to address the

elephant in the room -- which is the reality that President Jacob Zuma is accused of

corruption and has yet to have these allegations tested in court.

It is a matter of fact that the state, of which President Zuma is head, has a prima facie

case to which he should answer in a court of law. In 2009 the charges against him

were withdrawn on the basis of the gossiping and backchat of some senior National

Prosecution Authority (NPA) officials about whether President Zuma should be

arrested before or after the 52nd ANC national conference in Polokwane in 2007.

These officials are not said to have concocted charges against President Zuma. They

are said to have discussed when he should be arrested and brought before a court to

respond to allegations that he illegally exchanged monies with a shady individual,

SchabirShaik, who was described by the prosecution as having a "generally corrupt

relationship" with President Zuma. The high court's judgment was that Shaik was

guilty.

The Supreme Court of Appeal has been deciding whether a high court review of the

decision to drop charges could proceed. Whatever else can be said, the reality is that

the then acting national director of public prosecutions, advocate MokotediMpshe,

shelved principle for political convenience in 2009 as a result of political dynamics in

the country.

The ANC, its leagues and the alliance were unanimous that Jacob Zuma should

become president of South Africa and a majority in society accepted that. For the sake

of political convenience, which seemed to be a principled intervention at the time,

advocate Mpshe decided to withdraw the charges -- not on the basis that President

Zuma did not commit the crimes, but on the basis that those prosecuting him were

gossiping about when to arrest him. It was the result of public pressure from members

and supporters of the ANC, including the commitment to "die and take up arms to kill

for Zuma" of ANC Youth League president Julius Malema.

Now the people who were gossiping about when and how to bring President Zuma to

account are no longer in the NPA. Yet the fact that the state has a case against him

remains.

Equality before the law

The ANC fought for political freedom on the non-negotiable principle that all should

be equal before the law. This found expression in the Freedom Charter: "There shall

be equal status in the bodies of the state, in the courts and in the schools for all

national groups and races."

The principle was reinforced in the Constitution of a democratic South Africa. Those

who drafted the Constitution deliberately avoided "presidential immunity" because

they had learned how that could make leaders refuse to step down from office and opt

for "aloota continua", protected from prosecution.

As a test of our constitutional democracy, we should allow a court of law to determine

whether President Zuma violated the law or not. He should voluntarily answer to the


allegations. To protect the integrity of our democracy, the ANC leadership should be

exemplary in all matters relating to the Constitution.

If the ANC and its leadership undermine the Constitution for political convenience,

South Africa's democracy is under serious threat. South Africa could degenerate into a

banana republic in which state machinery is used to settle political scores and shift the

balance of forces.

If the truth be told, any president facing the possibility of being arrested is dangerous

to himself and the nation. Naturally, hoping to avoid arrest, such a president will

surround himself with cronies and blind loyalists in key state security institutions.

Such a president could even try to change the Constitution and the law to protect

himself from prosecution, or find a way of undermining court decisions through

political power.

Now, the appeal court has passed judgment against President Zuma, saying that a high

court review of the 2009 decision can proceed.

Courts shouldn't resolve political squabbles

No one in their true political senses would ever agree with the Democratic Alliance's

use of the courts to determine political battles and processes. The ANC Youth League

rejected this view on various occasions and we remain firm on it. The DA is not

representative of the people of South Africa and does not deserve an iota of respect

from anyone.

The illusion that those in the ANC-led national liberation movement who defend the

equality clause of the Constitution are "liberal democrats" should be dismissed with

contempt. Some of us have, with no support from the leadership, been proponents of

amending section 25 of the Constitution to realise real and genuine equality.

Since the beginning of allegations of corruption, fraud and money laundering against

President Zuma, most of us have been solid and vocal in defending him against

conspiracies to prevent him from becoming president of South Africa.

Our view, which we expressed openly, was that those who had control of the criminal

justice system, or who acted on the pretext of protecting then-president Thabo Mbeki,

used state institutions to prevent Jacob Zuma from assuming the highest political

office in the land.

We stood firm against the abuse of state institutions for narrow political purposes. We

never said or insinuated that we supported corrupt practices. We opposed, and

continue to oppose, the abuse of state institutions for political purposes and we are

firmly opposed to all crimes, particularly those such as corruption, which deprive the

poor masses of resources that could liberate them from poverty and starvation.

The Supreme Court of Appeal's judgment says advocate Mpshe's 2009 decision to

drop charges is reviewable. It can be reviewed because, in a democratic South Africa,

all are equal before the law.

No one can believably argue now that state institutions are being used to prevent

Jacob Zuma becoming president -- he is the president of South Africa.


There is a case to answer

In dropping the charges, advocate Mpshe did not claim there was no case to answer,

but said that interference by some NPA and Scorpions officials suggested there were

also ulterior motives for charging him -- it was not just a matter of justice.

The conspiracies that led to this situation no longer exist. Those who had ulterior

motives are no longer in the NPA or the Scorpions. Yet the state still has a prima facie

case of corruption, money laundering and fraud that President Zuma must answer.

The interference that happened then did not remove the possibility that he could have

been involved in a corrupt relationship with those who have already been convicted in

court.

If there is dissatisfaction with the involvement of some NPA prosecutors, the

president's legal representatives have the right to raise this matter in court.

If it is true to its values and principles, the ANC should call on President Zuma not to

appeal the judgment of the appeal court, but to allow all due processes to continue

uninterrupted. In fact, President Zuma should welcome the possibility of going to

court, because that is the only way he will clear the dark cloud over his head.

It cannot be right that, for so many years, the ANC and South Africa as a whole have

not been able to get to the bottom of these allegations. In allowing the law's processes

to happen uninterrupted, President Zuma will retain his innocence until proven

otherwise and will be treated like all innocent people.

Kgalema sets an example

Deputy President KgalemaMotlanthe recently approached the public protector to

investigate him over allegations of wrongdoing on his part. President Zuma should

follow this noble example.

He should avoid the temptation to try to stop the courts listening to his case by

causing unnecessary delays. Further delays will bring doubt, even in the ranks of the

ANC, that there is perhaps a possibility that he did indeed commit the crimes of which

he is accused.

This approach will reaffirm the integrity of the ANC as a movement committed to the

fight against corruption and all criminal acts, which the Polokwane conference said

was a priority.

The criminal justice system will also lose integrity, and will be regarded as being

open to manipulation in the future, if this case is not responded to in a proper and fair

trial. The approach of allowing due process will further enhance and harness the

state's fight against corruption.

The ANC and all its formations and allies should always stand firm on principles. We

will never agree to be drawn into defending possibly corrupt individuals, because

corruption is like a cancer eating away at the moral fibre of society.


Whether we will be purged or persecuted for expressing this view does not matter.

The truth must be told at all times, without fear or favour. Only factionalists and

proponents of tribalism and corruption can stand opposed to the accountability of the

leadership, and unfortunately I am not one.

30 March 2012

Mail & Guardian

Amabhungane Reporters

Mdluli report's shocking revelations Today the Mail & Guardian publishes details from a secret report to the inspector general of intelligence on the allegations against crime intelligence boss Richard Mdluli.

The extracts below demonstrate the extent to which President Jacob Zuma and his

allies were prepared to ignore evidence of the rot at crime intelligence to protect their

man.

Publication also represents a defining example of the kind of public-interest

disclosure that would be criminalised by the so-called secrecy Bill before Parliament.

he report was drafted by Major General Mark Hankel and signed off by then-acting

crime intelligence boss Chris de Kock.

According to the document, it was drafted as a written follow-up to a detailed verbal

briefing given to the inspector general of intelligence, Faith Radebe, on October 31

last year when the Hawks investigation into Mdluli was in full swing.

The document is headed: "Report to the inspector general of intelligence on the matter

of alleged maladministration and crimes committed in respect of the Secret Services

Account (SSA) of the crime intelligence division of the South African Police

Service."

Hankel begins by setting out the basis for his claims.

Corruption and fraud

"The report is based on the interaction and insight into the Hawks' case of corruption

and fraud as well as personal insight into various documents requested by the Hawks,

of which some have been handed over to the Hawks pursuant to a search warrant,

while others are being safeguarded as evidence in possible criminal or departmental

investigations.

"The report is further based on information provided by, and discussions with, certain

sensitively placed officers of crime intelligence, an investigation report compiled by

the Hawks as well as information under oath. It serves as official written notification

to the inspector general in relation to crime, maladministration and nepotism that has

come to the attention of the acting divisional commissioner of crime intelligence …"

Hankel then details the evidence gathered by the Hawks.


"The Silverton CAS 155/07/2011 (fraud and corruption) was registered after

investigation into the murder case against Lt Gen RN Mdluli exposed fraud and

corruption involving the selling by a BMW dealer of a private BMW belonging to Lt

Gen Mdluli.

"This is related to the shortfall in the settlement fee on the finance from the said

vehicle being paid through a second dealer with whom crime intelligence does

business and from whom Lt Gen Mdluli purchased a vehicle.

"It also relates to the purchase of two BMWs from the BMW dealer on which so-

called 'trade assist' incentives from BMW South Africa allegedly further influenced

the resale price on Lt Gen Mdluli's private BMW.

R95 000 benefit

"This benefited Lt Gen Mdluli to the amount of about R95 000. Col [Hein] Barnard

derived no benefit from these transactions but signed a contract purporting to be RN

Mdluli.

"The prosecution, however, contends that the two BMWs would not otherwise have

been purchased if it was not to be used to offset the shortfall on the settlement amount

of Lt Gen Mdluli's private BMW. In reality, both BMW's purchased were then

allocated with the one (5 Series) going to Lt Gen Mdluli for his personal use and the

other (3 Series) going to his wife (Col T Lyons) in Cape Town."

But the Hawks investigation went further, Hankel explains, pointing out that the

Hawks had obtained a search warrant for two covert crime intelligence premises to

seize documents. He sets out the additional criminal elements being investigated

against Mdluli.

"The appointment/promotion of his current wife, her brother and other members of

her family, his ex-wife, her daughter and his son, as well as two 'girlfriends' in the

Eastern Cape. With the exception of the latter two, the investigation also targets their

placement in the agent programme of crime intelligence, as well as their current

deployment and daily work and productivity.

"Furthermore, the investigation team of the Hawks is looking at all salary claims,

advances and operational claims submitted by the handlers of the members who were

what is referred to as 'principal agents' in the programme. Of particular interest to the

investigation team is their utilisation of covert vehicles.

"The alleged abuse of covert vehicles by Lt Gen Mdluli, who it is alleged was not

entitled to the use of such vehicles in the way he did. In this regard, various vehicles

were identified at his two properties. Specific focus is being given to BMWs, a Jeep

Cherokee SRT8, two E-Class Mercedes-Benzes and a Lexus. The investigation

includes such specifics as his use thereof while on vacation.

Overseas trip

"An overseas trip to Singapore at the end of 2009 for purposes of viewing and

purchasing technical equipment for crime intelligence … Of note to the investigation


team was the fact that the spouses of Lt Gen Mdluli (T Lyons) and Maj Gen [Solly]

Lazarus and Col Barnard accompanied them on the trip.

"It is evident that Maj Gen Lazarus and Col Barnard financed their spouses‘ trip costs,

but that of Col Lyons (who was not a member of the SAPS at the time) … was funded

from the secret service account."

Hankel then goes on to identify "new revelations" that flowed from his own inquiries,

notably interference and intimidation by some of those implicated.

'During the investigation certain officers were interviewed by the Hawks to explain

certain aspects of documents. One of these officers … decided out of his own accord

on the third day to reveal the extent of crime that is occurring in the SSA

environment.

"On the day of the revelations in question, he took a colleague of his into his

confidence and admitted that he had provided incriminating information to the

Hawks.

"That evening and the following morning, he was subjected to intimidating behaviour

by some of his colleagues … This behaviour included trespassing on his property,

being driven around in a vehicle, being taken to the home of a major general and

being taken to the office of the same major general, all against his will. This officer is

now in the witness protection programme.

"Every time certain officers are called by Major General Hankel to hand over

documents or explain some or other detail, they are confronted by their major general

and requested to reveal what was asked.

"The latter occurred despite the express instruction by Major General Hankel not to

do so.

Tampering and influencing evidence

"The component head, in more than one instance, instructed the same subordinates

not to co-operate with the investigation. It is also known that attempts have been

made to tamper with or influence evidence.

"There exists a concerted effort from within crime intelligence and specifically the

SSA environment to derail the investigation. The situation includes what is believed

to be a threat to the lives and personal safety and integrity of persons involved in the

investigation of this matter, including those supporting the investigation."

Hankel also details abuse of the so-called agent programme.

"It is evident that besides the employment, inappropriate promotion and placing of

family members of Lt Gen Mdluli in the agent programme of crime intelligence, [in

addition] family members of a major general and colonel in the division, as well as

that of a prominent person, were placed in the programme."


Hankel says that the prominent person, a businessman from KwaZulu-Natal, was

allegedly recruited to influence suspended police commissioner BhekiCele in favour

of crime intelligence.

"In total, approximately 23 persons that fall in the above category are deployed as

'principal agents' in the programme. As far as can be ascertained, none of these are

actually involved in bone fide undercover operations in pursuance of the operational

objectives of the SA Police Service Crime Intelligence Division.

No benefit to the SAPS

"Furthermore, no activity reports are generated in respect of these individuals. It is

alleged that especially the family members of the prominent person in Kwazulu-Natal

go about their 'normal private lives' with no benefit to the SA Police Service.

"They were allegedly employed as a favour or as part of a pay-off to the prominent

person, in return for consultancy services rendered to crime intelligence in respect of

the national commissioner."

Mdluli and his cohorts were also flown around the country courtesy of the secret

service account.

"A travel agent in Westville, Durban, was tasked with the duty of providing a travel-

office service to the SSA environment, ostensibly a covert air travel service.

"This arrangement was discovered when Lt Gen Mdluli's journeys were analysed. No

agents of consequence utilised the service, rather it was abused by a small group of

persons. Principal agents, many of them appointed and promoted in the same covert

promotion process as Lt Gen Mdluli's family.

"Lt Gen Mdluli and his family travelled on more than 50 occasions while the

prominent person and his family, not limited to those in the agent programme,

travelled on more than 50 occasions."

Safe house abuse

Hankel reports that various safe houses have been rented for the exclusive use of

Mdluli and his family.

"One was rented ostensibly for him to use for strategic meetings with component

heads. No such meetings occurred there. Instead, he used it to house his Cape Town

family (second wife and two children). They would fly up to Johannesburg and reside

in the house.

"A property in Gordon's Bay, belonging to Lt Gen Mdluli, was rented by crime

intelligence, but used only by him. A possibility that still needs to be confirmed is that

during the time that crime intelligence was hiring the property, other tenants were also

hiring it from him."

Hankel argues that, rather than the Hawks investigation placing sensitive systems in

jeopardy, it is the abuse that has done so.


"They have placed the entire institution, including the agent programme, covert air

travel, vehicles, service providers and even operations, at risk by abusing the system

and exposing it to individuals of dubious character."


30 March 2012

Business Day

Page 3

FrannyRabkin

Appeal court ‘crossed limits on Simelane’ Justice Minister Jeff Radebe says the Supreme Court of Appeal had ‘overstepped the boundaries’ drawn by the separation of powers principle when it set aside President Jacob Zuma’s appointment of MenziSimelane.

THE Supreme Court of Appeal had "overstepped the boundaries" drawn by the

separation of powers principle when it set aside President Jacob Zuma ‘s appointment

of MenziSimelane as prosecutions head, Justice Minister Jeff Radebe said in court

papers yesterday.

While Mr Zuma has said he would abide by the decision of the Constitutional Court

on whether he had acted irrationally when he appointed Mr Simelane, Mr Radebe is

opposing confirmation of the judgment by the Constitutional Court, and appealing

against it.

Mr Simelane‘s appointment in 2009 was met with a storm of criticism, because he

had been severely rebuked by the former speaker of the National Assembly,

FreneGinwala, in her inquiry into the fitness of his predecessor, VusiPikoli, to hold

office. In her report, Ms Ginwala said Mr Simelane‘s conduct during the inquiry was

"highly irregular" and "left much to be desired".

The Democratic Alliance (DA) took the matter to court, saying Mr Simelane was not

fit and proper for the job and that the appointment was irrational and unconstitutional.

The DA won the case at the Supreme Court of Appeal.

Mr Simelane was then placed on special leave — pending the confirmation of the

appeal court‘s decision by the Constitutional Court.

In supplementary legal argument filed yesterday, Mr Radebe‘s counsel,

MarumoMoerane SC, said the point of departure in determining whether the president

had acted lawfully was the constitution and not the National Prosecuting Authority

(NPA) Act.

Looking at the constitutional scheme, the purpose in this case was to find a national

director of public prosecutions who would be able to secure the institutional integrity

of the NPA — including that it exercised its functions without fear, favour or

prejudice — while "simultaneously having a constructive working relationship with

the minister".

The appointment of a national director was a "policy driven" decision, and the

constitution "provided for a (national director) who is a political appointee", although


once in office he is bound to secure the institutional independence of the NPA, Mr

Moerane said.

He also argued the appeal court had not actually found that Mr Simelane was not fit

and proper — rather that the president had not sufficiently enquired into the

allegations.

"It is only where a court positively finds that (a national director) who has been

appointed by the president is not fit and proper ... that it could set aside the decision of

the president as being irrational."

Should the court not agree with his argument, Mr Moerane asked it to order that the

matter be sent back to the president for him to look into whether Mr Simelane was fit

and proper, rather than to set aside the appointment, as the Supreme Court of Appeal

had done.

30 March 2012

Business Day

Page 3

Linda Ensor

Government has nothing to hide, says Manyi Chief government spokesman Jimmy Manyi — who has been trying all week to co-ordinate the government’s response to the Democratic Alliance’s (DA’s) questions over the state funding of officials who attended the African National Congress (ANC) centenary celebrations in Mangaung in January — insisted yesterday that the government had "nothing to hide".

His response came after what appeared to be a bungled attempt by the Government

Communication Information System (GCIS ) to co-ordinate the government‘s

response to a series of parliamentary questions by DA MPs to Cabinet ministers on

the issue.

The DA is probing whether state resources were used to send officials to Mangaung in

December and January for the celebrations.

The GCIS sent out guidelines to government communicators on Monday on how they

should answer the questions.

It instructed officials to refer the questioner to annual reports — to point out it was

"not peculiar to have officials travelling to Bloemfontein or any part of the country for

that matter for official business".

Staff were also instructed to defend officials‘ trips on the basis that the experience

would "help shape them into public servants that serve their country with humility".

Two days later GCIS chief director Neo Momudu asked the communicators not to

answer questions in the manner suggested "until further notice".


Then new guidelines were issued yesterday, saying government officials were

required to attend the celebrations to prepare for the attendance by foreign heads of

state and government and to ensure the event ran smoothly.

In an embarrassing twist, the memoranda were leaked to the DA, which published

them to give an insight into Mr Manyi‘s "machinations" to shut down the DA‘s

requests for information.

DA federal chairman James Wilmot accused Mr Manyi of "going to great lengths to

ensure that the amount of public money spent on the ANC‘s centenary celebrations in

January remains hidden".

Mr Manyi defended his instructions to government spokesmen, saying it was the job

of GCIS to give advice. He was not trying to keep the information hidden, but to

ensure correct information was given.


30 March 2012

Business Day

Page 14 Editorial

If the secrecy bill becomes law… The lifting of the suspension of crime intelligence boss Lt -Gen Richard Mdluli, who went on to be appointed national police commissioner without ever having to answer the allegations of murder and fraud, would never be discussed if the secrecy bill was in place.

This has been an internal process and will not be discussed further in the public

domain," national police spokesman Brig LindelaMashigo said yesterday.

And with that he brought to an end the controversy over the lifting of the suspension

of crime intelligence boss Lt -Gen Richard Mdluli, who went on to be appointed

national police commissioner without ever having to answer the allegations of murder

and fraud that have been made against him. The rather distasteful subject was never

mentioned in polite company again, and everyone lived happily ever after.

The above may reflect the fantasy world inhabited by Brig Mashigo and some of his

senior colleagues and political masters, but that is not the world we live in. At least

not yet — but it could all change if the Protection of State Information Bill is pushed

through in its current form.

The so-called "secrecy bill" has already been toned down but not by nearly enough

from the point of view of those who are concerned with defending the constitutionally

protected right to freedom of information. In an SA where the bill had become law, it

is more than likely that Brig Mashigo‘s rather quaint desire to quash public discussion

of a politically uncomfortable issue such as Lt-Gen Mdluli‘s frankly disturbing past

— and why the establishment is so determined to protect him — would have the

backing of the full force of the law.

There would be few, if any, avenues available for the public to challenge the

authorities‘ decisions on such matters, largely because they would be unlikely to

know anything about them in the first place. Almost all of the background to Lt-G en

Mdluli‘s suspension and subsequent moves to reverse it and drop any charges against

him was leaked to the media in the form of anonymous tip-offs and copies of internal

police reports. In a post-secrecy act world, much of this information would

undoubtedly have been classified and journalists would have published it at risk of

criminal conviction and jail terms.

It is true the revisions that have been made to the bill provide for a review process,

meaning classification decisions could theoretically be overturned if it was

determined that the motivation for hiding the information was to conceal criminal

behaviour or political interference. But who in their right mind is going to take such a

risk, when mere possession of a classified document could land them in jail?

The Mdluli matter is serious. The man deserves a fair hearing and if the National

Prosecuting Authority decides — without being subjected to political pressure — that


it has a prima facie case against him, he must be assumed innocent until proven

guilty. But the obvious political manipulation that is going on is all the more reason

why the process must be conducted transparently, and why Brig Mashigo‘s bid to

sweep the matter under the carpet must be thwarted. There are strong indications that

disciplinary action was taken against prosecutor GlynnisBreytenbach because she

refused to bow to political pressure to drop the fraud charges against Lt-Gen Mdluli,

for instance. And it is becoming abundantly clear that the intelligence community has

again been drawn into the African National Congress leadership race, following the

dangerous precedent that was set during the buildup to the Polokwane elective

conference in 2007.

Meanwhile, the ruling party continues to try to use its dominance of the legislature to

justify ramming the law through Parliament against stiff opposition from other parties

and large swathes of civil society. Some of its members on the ad hoc committee

formed by the National Council of Provinces to assess public opinion on the secrecy

bill are treating it like the legislative equivalent of a kangaroo court, suppressing

voices they do not like and revealing an appalling ignorance of either the substance or

the spirit of the constitution.

30 March 2012

The Times

Page 1

Chandré Prince and AmukelaniChauke

Fear grips top cops after Mdluli's 'return' Fear has gripped the officers who investigated embattled police spy boss Richard Mdluli following news that his suspension has been lifted.

Crime intelligence officers who spoke to The Times on condition of anonymity said

they feared that, with Mdluli back in office, he would target those who investigated

him for fraud and murder charges.

Mdluli's reinstatement comes a month after the National Prosecuting Authority served

suspension papers on top anti-corruption prosecutor advocate GlynnisBreytenbach for

her alleged "abuse of power". Many believed she was being punished for refusing to

drop fraud charges against Mdluli.

Police spokesman B rigadierLindelaMashigo confirmed on Wednesday night that

Mdluli's suspension had been lifted, and said the development is an internal matter

and that the police will not comment on it publicly.

While there is still a veil of secrecy on the reasons for lifting Mdluli's suspension and

when he will report for duty, an official from the Hawks said yesterday that the unit

still did not understand how the Johannesburg deputy director of Public Prosecutions

advocate Andrew Chauke arrived at a decision to withdraw the murder charge.


"We have done a thorough investigation. Our hands are now chopped off. This is all

political."

The Specialised Commercial Crimes Court in Pretoria provisionally withdrew charges

against Mdluli in December of allegedly defrauding the police and a Pretoria car

dealership of more than R90000, and for causing it to lose a further R1.28-million.

The Hawks official said senior officers had been assigned to investigate both the fraud

and the murder cases and that the withdrawal of charges and the lifting of the

suspension have left a bitter taste in their mouths.

Another Hawks official said it had fought for the case to remain on the court roll, but

the withdrawal of both the murder and fraud charges was beyond its control. Both

officials said their investigations were not politically motivated.

National Prosecuting Authority spokesman MthunziMhaga said last night that the

withdrawal of both charges were provisional and not clear cut.

He said an inquiry into the murder charges would determine whether the prosecuting

authority would proceed or not.

Mhaga confirmed that the authority recently received a letter from the inspector

general, advocate Faith Radebe.

"She expressed reservations about our decision. We are considering everything and

will then re-evaluate our decision."

While officials were still trying to come to terms with the news of Mdluli's return,

there have been talks in police corridors that he has been earmarked to take over as

national police commissioner from Lieutenant-General NhlanhlaMkhwanazi, who has

been acting since the suspension of BhekiCele.

Officers said if Mdluli gets the position , it would be difficult for them to trust and

respect him.

They believe it would have been better if he had been tried in court and found not

guilty instead of the charges being summarily withdrawn.

In response to Mdluli's possible reinstatement, the DA's Diane Kohler Barnard said:

"The DA holds this as an absolute disgrace given the controversy surrounding Mdluli,

including allegations of fraud and murder.

"The DA maintains that the prosecution of Mdluli was improperly dropped amid

allegations of political interference."

Kohler Barnard wants the decision to drop the charges to be reviewed, particularly in

the light of increasing speculation that Mdluli would replace Cele, and his rumoured

ties with President Jacob Zuma.


But police ministry spokesman ZweliMnisi said: "We urge Kohler Barnard to join a

community policing forum and direct her energies towards fighting crime instead of

scoring political points.

"We do not account to the DA, we account to millions of law-abiding citizens. And

when we communicate we do not only target affluent media, which she understands

or listens to.

"Today we are in Khayelitsha talking to communities, not politicking on crime. We

do not conform our engagements to Twitter and online media, we are in touch,

speaking the language of the people. So she must relax. The suspension and or lifting

of suspensions is a departmental function that is managed by management led by the

acting national police commissioner. It's the same management that has reduced crime

over the last year."

Global South African Weekly News Wrap 04 April 2012

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Transcript of Global South African Weekly News Wrap 04 April 2012