Global South African Weekly News Wrap Up 26 July 2012

Contents
ANC to push job creation ............................................................................................ 3 DA to unveil economic plan for 8% GDP growth .................................................. 4 Revolution or planned future for SA, De Klerk warns .......................................... 5 SA lodges among world's 10 best................................................................................ 6 ANCYL calls for Motlanthe for president ................................................................. 7 Bizos warns against Protection of Info Bill................................................................ 9 Winnie lays into ANC ................................................................................................ 10 World Bank warns on inequality threat to SA ........................................................ 12 State needs to unite business, labour on jobs ........................................................ 14 Malema on whites and nationalisation..................................................................... 15 'If asked, I'll walk away' ............................................................................................ 20 Dlamini Zuma is the right woman for AU ............................................................... 23 SA had no option but to abstain on Syria vote ..................................................... 26 Motlanthe to reject Zuma offer to stay as deputy ................................................... 27 Dlamini-Zumas AU post a business opportunity for SA .................................... 30 Trade with China too skewed, says Zuma ............................................................... 31 Use wage subsidy for training ANC .................................................................... 33 Sims report fails to focus on growing mining sector ............................................ 34 SKA telescope to turn brain drain in SA into brain gain ....................................... 36 New AU boss vows to seek unity among divided blocs ........................................... 37 Dlamini-Zuma has tough task ahead in her AU post ............................................. 38 AG red-flags 95% of municipalities ......................................................................... 40 Manuel falls off balcony of ANCs chosen few ........................................................ 41 Arms deal: Manuel loses cool.................................................................................... 43 Limpopo at fault for textbook supply fiasco .......................................................... 44 Audit chief says R11bn misspent by councils .......................................................... 45 ANC pickets, calls for MECs firing over threat to close schools .......................... 47 Do not blame us for SAs poor education, says Sadtu ............................................ 48 State shuns money from abroad for Telkom ........................................................... 50 Cutting edge: Blade Nzimande ................................................................................. 51 SA on track to reduce mother-to-child transmission ........................................... 54 Legalised trade in horn could save rhino ............................................................. 56 Sanyati CEO lifts lid on the chaos that sank his firm............................................. 58 Mantashe takes gamble with SACP position ........................................................... 60 Labour laws hearings expected to be lively ............................................................. 62 Labour, business enter next stage of negotiations on labour reforms .................. 64 Jackie Selebi freed from prison: Released on parole .............................................. 66 Winnie a danger to ANC Mantashe ...................................................................... 67 1

Darkness visible in JZ's kingdom by the sea ........................................................... 67 NPA in contempt, says Helen Zille ........................................................................... 74 ANC to help probes of political murders ................................................................. 76 Zuma: No action on Motshekga yet ......................................................................... 77 We want to restore justice: Madonsela .................................................................... 78 NPA overstepped mark ........................................................................................... 78 Boeremag would get rid of blacks.......................................................................... 79 Attack on Vavi venomous and malicious .............................................................. 80 Judge: NPA can't hide ............................................................................................... 82

26 July 2012 The New Age Warren Mabona

ANC to push job creation

The ANC on Wednesday said it was satisfied with the job creation progress in the country but vowed to accelerate the processes in order to stem the tide of unemployment and tackle other socio-economic challenges facing South Africans. ANC secretary-general Gwede Mantashe said that since 2010, employment growth had been on track to meet the target set out in the New Growth Path. He described the public sector as the driving force behind whisking South Africans away from the unemployment queues, adding that nearly all job losses were experienced in the private sector. Almost 750000 had been lost from the private sector between 2008 and 2010. The slight improvement in the economy has led to the recovery of about 100000 jobs. But this does not mean we should be complacent, especially in the light of the ongoing weakness of the global economy, Mantashe said. He was addressing reporters during a media briefing inJohannesburg. The gathering was aimed at outlining the contents of the agenda for the governing partys three-day national executive committee (NEC) lekgotla, which begins today in Pretoria. According to Mantashe, this years NEC lekgotla would focus on progress, obstacles and urgent interventions required, as well as plans and priorities for the 2013/2014 financial year. He added that most of the new jobs that were created in the private sector were in Gauteng and the Western Cape. He said the fundamental problem that was now besetting the ANC was that the majority of youths, women and poor people in rural areas continued to be jobless. The government approved the 20-year national infrastructure plan and implementation framework in March this year, which was one of the ANCs plans to address unemployment, poverty and inequality. Mantashe said that reports on education, health as well as rural development and land reform would be tabled for assessment and discussion at the NEC lekgotla. He said the meeting would focus on the recommendation from the ANCs policy conference that there must be bold state intervention in mining, instead of nationalising the sector. I know there is agreement that wholesale nationalisation wont work but there will be state intervention.

I therefore cant talk about the disagreements on the matter, Mantashe said in response to a question regarding the utterances made by opponents of state intervention. Mantashe said lekgotla developments in both basic and higher education and training would be the key elements on education sector, while assessment of developments on infrastructure delivery and capital expansion projects, among other things, would be emphasised in the health sector. 25 July 2012 Business Day Page 3 Paul Vecchiatto

DA to unveil economic plan for 8% GDP growth

The overall strategy, termed R2D2 in the DA, will be unveiled to the media on Thursday THE Democratic Alliances (DAs) launch of an economic plan meant to get gross domestic product (GDP) growing at 8% marks the beginning of the partys strategy of targeting a larger section of black voters in the 2014 and later elections, party insiders say. The DA was the star performer in last years local government elections, but questions around the partys lack of alternative policies have been cited as a possible impediment to its growth in the next national elections. The overall strategy, termed R2D2 in the DA, will be unveiled to the media tomorrow. The acronym stands for "Reconciliation, Redress, Diversity and Delivery". Party insiders say this is based on the DAs own research showing that the major concern for South Africans of all races was reconciliation between the various population groups. The DAs economic policy is based on the experiences of other countries at similar stages of development such as Peru, Turkey, Brazil and Argentina. The party announced the "first phase" of its economic policy in November last year when it listed a number of constraints to get the SA economy growing fast enough to absorb the large number of unemployed. Economists and political analysts say that while the DAs 8% is an objective target, the constraints on SAs economy meant that such a growth rate would only be achieved in the long term and there was no quick fix, or "magic formula". Standard Bank chief economist Goolam Ballim said it appeared that the DAs economic plan would overlap heavily with the National Development Plan drawn up by the commission headed by Minister in the Presidency Trevor Manuel . It would 4

also overlap somewhat with the New Growth Path spearheaded by Economic Development Minister Ebrahim Patel. "For a long time we know what the constraints to SAs economic growth have been. Also we know there is a big disjuncture between policy formulation and getting it applied," he said. The National Development Plan estimates that GDP would have to grow at an average of 5,4% in order to create 11-million jobs by 2030. Econometrix chief economist Azar Jammine said he hoped the DAs economic plan had a long-term view with education at its core. "I think we can only realistically start talking about an 8% growth rate from 2020 onwards." 26 July 2012 Business Day Page 1 Karl Gernetzky and Setumo Stone

Revolution or planned future for SA, De Klerk warns

Speakers at an FW de Klerk Foundation conference on the African National Congresss policy conference outcomes issue stark warnings about the future of the ruling party and South Africa SA could not ignore the policy debates within the African National Congress (ANC) alliance, which was facing "two roads", one mapped out by the National Planning Commission, the other the "national democratic revolution", former president FW de Klerk said yesterday. Speakers at an FW de Klerk Foundation conference on the ANCs policy conference outcomes issued stark warnings yesterday about the future of the ANC and SA, if moderates in the party allowed radical elements to win the day. "National policy is indeed at a crossroads: we can either take the road to economic growth and social justice that is indicated by the National Development Commission or we can take the second phase road toward the goals of the national democratic revolution," Mr de Klerk said. The National Development Plan was hailed by speakers as promoting an open and competitive economy, while the national democratic revolution was criticised as based on outdated communist theory. Mr de Klerk said that if the ANC endorsed the national democratic revolution philosophy at its December conference, SA would embrace failed far-left socialism.

"What will happen if economic management is increasingly dominated by outmoded, divisive and discredited ideologies, rather than by a pragmatic understanding of global and national economic realities and market forces?" Democratic Alliance leader Helen Zille said there were members of her party and some in the ANC "who should be in the same party". She said the ANCs focus on the national democratic revolution concept, and the related developmental state, would increasingly present the ruling party with challenges, due to its refusal to acknowledge the lack of capacity of the state to implement policies. Ms Zille said the ideological faultlines in the ANC could be seen in the differing solutions to SAs problems posed by the National Development Plan, and the national democratic revolution concept. ANC spokesman Keith Khoza said its policies were debated publicly. He said Mr de Klerk "has never been a specialist on the ANC and does not understand the party". 18 July 2012 The Times Page 2 Denise Williams

SA lodges among world's 10 best

South Africa once again showed its tourism muscle when two bush lodges claimed top-10 status in the US Travel and Leisure World awards. South African Luke Bailes will receive the sought-after best hotel in the world award tomorrow night for his lodge the Singita Grumeti, in Tanzania. This is the second consecutive year that the Tanzanian lodge has won the prize. Singita's sister lodges in South Africa have also been accorded top-10 status, with Singita Kruger National Park and Singita Sabi Sand coming in at 7th and 10th respectively. South African hotels that took top-100 awards included the Sabi Sabi private game reserve lodges (13), Cape Town's One&Only (14), the Saxon boutique hotel in Johannesburg (33), the Twelve Apostles (41) and the Cape Grace (44). "We are always striving for top-notch world standards but have one main objective: to preserve and protect significant tracts of land, pristine wilderness for future generations," said Bailes. He attributed the Singita lodges' success to their authenticity and originality. "I often ask foreign visitors why they consider the service to be such an outstanding feature during their stay and most say it's because the staff are so warm and embracing. That's the African way," Bailes said.

However, only a select few South Africans will ever be able to experience the Singita Kruger National Park's hospitality because it doesn't come cheap. According to the lodge's website, a stay could cost as much as R13000 a person a night. "We acknowledge the high price, driven by the quality of the offering," said chief marketing officer Lindy Rousseau. She said South Africans comprised between 4% and 5% of the visitors to the Tanzanian lodge and about 10% of the clientele at the South African lodges. The Department of Tourism said that more than 2million tourists had visited locales in South Africa between January and March. This represented a 17.8% rise in overseas arrivals, most of whom were from Europe. Tourism Minister Marthinus van Schalkwyk said the UK, South Africa's biggest tourism market, had recovered from an overall decline in 2011 to an increase for this year of 9.5%. SA Tourism's chief marketing officer, Roshene Singh, said: "Readers of Lonely Planet, in India, recently voted South Africa the world's best wildlife destination. "We're very proud of our country's breathtaking wildlife tourist experience." 22 July 2012 Mail and Guardian Online Staff

ANCYL calls for Motlanthe for president

Made an indirect reference toward Zuma serving only one term. The ANC Youth League has called on Deputy President Kgalema Motlanthe to become president, and made an indirect reference toward President Jacob Zuma serving only one term. ANCYL deputy president Ronald Lamola said it was a tradition in the ANC for deputy presidents to later be elected as president of the organisation. "One day comrade Kgalema Motlanthe will become president of the ANC," Lomola said. "It is written in the history books of the ANC." Lamola was speaking at a ANCYL Nelson Mandela memorial lecture in Hillbrow, Johannesburg.

Immediately following his endorsement of Motlanthe, Lamola noted that Mandela had promised to serve only one term as state president. "We are inspired by the man's word," Lamola said. "When he saw the nice life of the president of the country. He never let it divert [him] from that promise." Lamola also referenced the ousting of former ANC President AB Xuma with the help of the ANCYL at a conference in 1949. "He was not even given those minutes to finish his term," Lamola said to cheers from the audience. Lamola also slammed ministers for poor service delivery and malfeasance and called for their firing. Lamola singled out Police Minister Nathi Mthethwa, Water and Environmental Affairs Minister Edna Molewa, and Basic Education Minister Angie Motshekga for criticism. "Those who say it was not their responsibility to deliver books must also be fired," he said. Lamola criticised Molewa for not delivering water to Carolina. He argued that ministers were quick to make claims that they would deliver but deflected blame when they came up short. "When things go bad you say it is not your responsibility," said Lamola. He criticised Mthethwa for having a security fence built around his house with public funds. "You cannot have a person where they built a security fence around his house and he do not know... how does he get in and out of his house," asked Lamola. Immediately after criticising Mthethwa, Lamola argued that public officials who don't measure up should be fired despite who they support politically. Lamola also defended the independence of the Youth League and argued that, using the example of Mandela, they should continue to push the ANC into more radical action. "A child in any family must be different from its parents," Lamola said. "If a child behaves like its parents, then there is no reason for the child to have been born." He defended the Youth League's rough language and argued that in other developing countries, such as China, government officials were younger. "That is why [in China] you never see a sleeping politician in parliament," Lamola said. 8

"The politicians they even fight and moer each other. They moer each other because they are fighting for the direction of their country," he said. Lamola also lauded the youth and their talents before expanding the Youth League's call for mine nationalisation to include land expropriation. "[The youth] can be used in the mines we are going to nationalise and the land we are going to expropriate," Lamola said. He argued the state should not have to compensate farmer's for their land because it had previously been stolen from indigenous Africans. "We do not understand why we must pay them because they took it for free," Lamola said.

18 July 2012 The New Age Chris Makhaye

Bizos warns against Protection of Info Bill

Civil servants should report the rot of fraud and corruption happening in front of them because keeping quiet is dangerous and will lead the country down a slippery slope. Anti-apartheid lawyer and former president Nelson Mandelas advocate, George Bizos, said this during the International Association for Media and Communication Research conference at the University of KwaZulu-Natal on Tuesday. Hundreds of delegates from all over the world are attending the conference, which brings into the spotlight challenges facing the media at a time of growing repression, increased competition from social media and the perceived regulation of information. Bizos said the proposed Protection of Information Bill would make it easy for officials to use it to suppress information on corruption and fraudulent activities if it is passed. He said even municipal officials would be able to classify information as a state secret and use it to conceal documents relating to fraudulent tenders. With this law everyone from the Minister of State Security can delegate his responsibility to his officials down to the mayor of a small town who would obtain a stamp that declares certain information classified. This stamp would state that nobody has a right to make public the content of fraudulent activities. That is why silence is dangerous in public affairs, he said.

Bizos was addressing a panel discussion chaired by the SABCs Siki Mgabadeli and included public protector Thuli Madonsela. Madonsela said South Africa enjoyed a free media but there was an ongoing debate as to how far journalists could go in doing their jobs. One of the issues we have grappled with since the dawn of democracy is the issue of the limits of freedom of expression, including the limits of the freedom of the media. The dialogue was much sharper not so long ago when certain provisions of the Protection of State Information Bill forced the nation to grapple with the idea of legitimate limitations of freedom of expression in pursuit of national security, the protection of valuable information and related matters. There was national consensus that like most rights and freedoms, (the) freedom of expression, incorporating press and media freedom, could be legitimately restricted, Madonsela said. Investigative journalist Mzilikazi wa Afrika said there were still journalists in South Africa who were prepared to risk their lives in order to expose corruption. Some of us are fearless. We have had our phones tapped, there have been death threats against us and we have had trumped-up charges brought against us. We have been labelled and called names but we carry on because we see our role as the voice of the public. We have refused to listen to leaders who want us to be praise singers, said Wa Afrika.

22 July 2012 Sunday Times Page 5 Mantombi Makhubele and Sibusiso Ngalwa

Winnie lays into ANC

Winnie Madikizela-Mandela has questioned President Jacob Zuma's frequent marriages, and has accused the ruling party of sidelining influential ANC leaders. In a candid interview likely to rile the ruling party, Madikizela-Mandela: Raised concerns about the ANC's commitment to democracy; Said ANC youth leader Julius Malema should merely have been "spanked" by the ANC - instead of expelled - and she attacked the decision to take disciplinary action against party stalwart Ben Turok; Blamed the bruising Polokwane elective battle in 2007 for the emergence of factionalism and tribalism. Referring to the actions of Zuma supporters ahead of the conference, she said: "It is an open secret that you have people printing T-shirts [saying] 100% Zulu ... those were the consequences of this kind of language"; 10

Said that instead of improving the lives of the poor, ANC members now jostled for positions and money; and Implied she was opposed to the controversial Protection of State Information Bill. This is the first time a sitting member of the ANC national executive committee has openly criticised Zuma. The interview, at her home in Orlando West this week, is part of MTV Base Meets ... with MTN, in which young people from across Africa interview influential people. With reference to the challenges of today, Madikizela-Mandela said youths had to find a balance between African culture and what was morally right or wrong. She asked how the idea of a single partner could be recommended when "the president's culture is that he can spring up [with] another fiance tomorrow - and it is an observation of his culture". She said people "have to redefine an acceptable culture that is going to define you as an African and, at the same time, retain your dignity as an African. "If we want to keep our society together and have a respectable society tomorrow, you have to return to those values that were observed by our forebears and find a way of balancing and explaining a culture that sometimes seems to be retrogressive," said Madikizela-Mandela. She lamented the brain drain from the ruling party and blamed Zuma and former president Thabo Mbeki for a divided ANC. Neither had heeded her warnings prior to the ANC's 2007 elective conference in Polokwane that a contest between them would polarise the party, and that the loser's supporters would be purged by the victor. "What happened? Where are the brains of the ANC, ministers who were appointed by the old man [Nelson Mandela] and who had the experience from Comrade Madiba of governance? Automatically, they fell by the wayside." Madikizela-Mandela gave the interview on Monday, two days before she shared a platform with Malema and suspended youth league leaders Floyd Shivambu and SindisoMagaqa on Mandela Day. The struggle stalwart's public appearance on Wednesday attracted the wrath of the ruling party, with ANC secretary-general Gwede Mantashe saying her appearance was a "dangerous" move. On Friday, however, Malema responded: "We have always said Mantashe does not know and he does not understand the ANC. "Mantashe never grew in the ANC, was never in the underground movement, was never involved in any operation against the apartheid regime, was never arrested and never went into exile like all freedom fighters his age did."

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Asked about her views on the secrecy bill, Madikizela-Mandela said it was unfortunate that, although the ANC professed to being a democratic government, it had difficulty accepting divergent views. "I would have my views about the secrecy bill," she said, but the ANC was disciplining "one of the last icons of the ANC, Ben Turok, for answering this very question". "I'm sure you would know what I would think about that [bill]," she said. ANC MPs Turok and Gloria Borman abstained from the vote on the bill, despite a party directive, and are facing disciplinary action as a result. Madikizela-Mandela was not in parliament on the day of the vote. The interview with Madikizela-Mandela is due to be broadcast on DStv channel 322 on September 5. 25 July 2012 Business Day Page 1 Mariam Isa

World Bank warns on inequality threat to SA

INEQUALITY had become a "corrosive" reality threatening growth in South Africa, and without social grants, 40% of the population would have seen incomes decline in the first decade after apartheid, the World Bank said yesterday. The Washington-based lender revised its growth forecast for South Africa this year down to 2,5% from a 3,1% estimate in November well below the latest estimates from the Reserve Bank, which sees the economy expanding by 2,7% this year and 3,8% next year. The pace was expected to quicken to 3,2% next year and 3,5% in 2014, the World Bank said yesterday, but it warned that the economy would not be able to achieve a faster pace of growth unless it became more inclusive. Sandeep Mahajan, the World Banks lead economist on South Africa, said the economy would have to grow faster than 3,5% in order to tackle the countrys unemployment rate of 25,2% one of the highest in the world. "Growth has been mediocre and its been inequitably distributed. In South Africas case, high growth can only come from inclusive growth," he said at the launch of the report, titled Focus on Inequality of Opportunity. "South Africa is a complete global outlier in terms of inequality it has been persistent over time and that has been a very corrosive reality."

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Global rating agencies have repeatedly highlighted the risks to social and political stability in South Africa posed by high unemployment, huge income disparities and widespread poverty. These issues have constrained its credit ratings, which determine a countrys cost of borrowing and investor appetite for local assets. South Africa is one of the most unequal countries in the world, with the top 10% of the population accounting for 58% of its income and the bottom half less than 8%, the World Bank said in its report. Poverty reduction had been modest since the late 1990s and would have been "untenable" without the growing level of social grants, it noted. The Treasury allocated R105bn this year to social grants for the elderly, disabled and poor children, which will reach more than 16-million people, up from 2,5-million in 1998. "Even after accounting for the equalising role of social assistance, income inequality remains extraordinarily high," the World Bank said in the report. "To reduce it to more reasonable levels over the long run, social assistance is clearly not enough and needs to be complemented by other initiatives." Nomura economist Peter Attard Montalto said it was important to distinguish between equality and poverty. "There is plenty of evidence that South Africa has done a lot to meaningfully increase the standards of living of its poorest. But the development payoffs have been directed more towards the rich and a certain segment of the population," he said yesterday. "You need to have a larger amount of social stability for a proper investment climate." The World Bank said nearly 70% of the poorest 20% of South Africans were jobless in 2008 a warning bell for social cohesion. The causes of inequality in labour markets had changed over the past four years, with the contribution of education increasing and the effect of circumstances of gender and race falling slightly, the report said. "Where a person seeking employment lives, however, matters more now than it did four years ago," it noted. Employment was "particularly challenging" for young workers and residents of townships, rural areas and informal settlements. This is not out of step with the global trend, as the jobless rates for young people in countries such as Greece and Spain are similar to the levels in South Africa about 50%.

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But the World Bank said that age was an "unusually large" contributor to inequality in employment in South Africa compared with other middle-income countries, with the "odds extremely stacked" against the youngest workers. In analysing the reasons for high inequality in South Africa, the World Bank said it would be useful to focus on equity a reference to access to opportunities rather than equality. Basic opportunities included access to education, health insurance, safe water, sanitation and electricity. "Except for electricity, where South Africas average annual progress has been exceptional, the progress on the other four dimensions puts it in the bottom half of international comparators," the bank said. Location was particularly important, while the level of education of a household head contributed most to finishing primary school. 23 July 2012 Business Day Page 5 Natasha Marrian

State needs to unite business, labour on jobs

Economic Development Minister Ebrahim Patel says a wider accord on jobs is on the cards to address rising unemployment A wider accord on jobs is on the cards to address rising unemployment, according to Economic Development Minister Ebrahim Patel. But it would require the government to dig deep to prompt business and labour to speak with one voice and agree on job-creation strategies, he said last week. Business and labour are often at loggerheads, blaming each other for SAs poor track record in creating employment. This can be gleaned from their differences over the governments proposed youth wage subsidy, with business supporting it and the African National Congresss (ANCs) alliance partner, the Congress of South African Trade Unions (Cosatu), opposing it. The subsidy has been shelved, if the ANC policy conference is anything to go by delegates rejected it, opting for a job seekers grant instead. Discussions over the subsidy, however, remain before the National Economic Development and Labour Council. Mr Patel, addressing the Cosatu-affiliated South African Commercial, Catering and Allied Workers Union on Thursday, said the "wider accord on jobs" would look at the contribution that the government, business, labour and community organisations could make toward creating jobs, and address the needs of the "most vulnerable workers".

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The accord would look at job targets, investment levels and the social wage, he said. "It also means that a shared solidarity is needed in which every major constituency identified what it can contribute to job creation. That those at the top, those with wealth make the biggest contribution." According to Statistics SA, unemployment in the first quarter stood at 25,2%. It is estimated that the economy shed about a million jobs during the 2009 recession. Labour economist Andrew Levy described the idea of a jobs accord as "pie in the sky". He said the government was proceeding with legislation to regulate labour brokers while Cosatu wanted an outright ban on labour broking. "Its absolute doublespeak on the one hand, government wants an accord, and on the other, its doing huge damage by displacing workers through the labour-broking legislation," he said. It is understood that discussions on the jobs accord were already under way. But Cosatu president Sdumo Dlamini on Friday said the federation had not yet been approached. The general secretary of the Black Business Council, Sandile Zungu, said despite the differences between labour and business, the severity of the situation required that they unite to tackle the problem. He said the council would be happy to participate in such an initiative. Mr Zungu said it was imperative to create employment opportunities for young people the council had supported the idea of a youth wage subsidy and found labours argument against it "unfounded". However, he said it was clear the subsidy was no longer on the cards and new strategies had to be developed. 22 July 2012 Business Report Online AdriaanGroenewald

Malema on whites and nationalisation

The BR Leadership Platform recently had a leadership conversation with former ANC Youth League president Julius Malema. What follows is the second part of a Q&A from the interview by AdriaanGroenewald, where Malema shares his thoughts. BRLP: Whats your vision for the future of South Africa? Malema: We need an equal society, a proper well-resourced society. We need to live equally in this country, peacefully and happy. Our society into the future can only be an equal society through economic freedom. There must be decisiveness, we are not calling for anarchy, we are not calling for the collapse of the economy. 15

Those who are opposed to the proposals we have put forward, let them put alternatives forward. Lets share the wealth of the country. Let us de-racialise the economy. We have no problem with the white man, but the white man must be prepared to share. Let those who have voluntarily begin to give to others not use our democratic laws to want to perpetuate the apartheid inequalities. Wait for the day when people are going to participate in an uprising, you must tell us wheres the constitution, because then you cant stop them, not the judiciary, not even the army, not NATO it will never stop the masses. So before we experience an uprising let there be a genuine debate on the table on how do you redistribute. BRLP: What about teaching a man or a woman to fish rather than giving them the fish? We cant just give givegive. Thats the concern I have the mentality of just receiving it doesnt build character, but there is a case for somehow redistributing. Malema: How am I going to fish with an empty stomach? There is nothing wrong with you saying to me heres fish but these fish, you can even get more by doing one, two, three. We must build schools, we must be able to identify kids in those areas who have potential, take them to the best schools and in that way we are also giving them the rod to go and fish. But those people do not have any hope. They dont see any possibility of a bright future unless something drastic happens. An example is a township that has just turned 100 years those rich families in Stellenbosch, they can come here and make a contribution and say we want to build the best city ever, as their contribution to a democratic South Africa with a commitment to sharing. BRLP: Would that work in the bigger picture of trying to teach skills, of making sure people dont have that entitlement mentality? Malema: We dont want to create a welfare state, that has never been our intention. Hence we said to Pres Jacob Zuma when he became president, part of your legacy will be to produce well-qualified young people, so take 10 000 students from the country every year, to go and learn in the best countries while we are still transforming our education system here. We cant wait for this system to be transformed; we dont have that luxury, lets take others out of the country to be equipped with the necessary skills, 10 000, and then bring them back. By the time you leave your office in five years you would have graduated not less than 50 000 young people who are now in the service of our country. Nobody cares to listen. The Ruperts can do this without Zuma. BRLP: I can march a lot of top chief executives in here and they will tell you about the millions that their organisations spend to uplift schools, education and much more theyll state a very good case of what they are doing. Malema: No, you will find them having put a fence around a school. Theyve not built a school. I will tell them go and show me that school. At least now Patrice Motsepe 16

and his company are trying to build a proper road in an area, and Anglo in Thabazimbi try to build houses for people there. I was very happy with that. But they need to do more. BRLP: People are asking how the nationalisation of the banks and mines will put money into the pockets of the poor. Malema: Mines are accounting for trillions of rands here into the country. But if you look at their contribution through tax, its not what you would expect coming out of those trillions. So we need a state that is involved in mining through taking over 60 percent of the shares in mines, but not only in shares, it must be involved in the operations of the mines. And when those dividends are declared our coffers will get more money. That 40 percent that remains in the hands of the private sector must still be taxed and royalties must be paid, so effectively the majority of the money will remain here with the investor not leaving with more than 20 percent after tax. Thats what we are talking about. We want our government to be involved in mining. And then the farms that have not been mined yet, if a private company comes, wants to do exploration in those areas, the state is not involved we give you a licence to go check you bring a report. If it is profitable we are going with you 60 percent. You go 40 percent. Why should we pay for that? You bring the mining machines, we will bring the mineral we bring the land, we bring the minerals. Those things belong to us. We are meeting each other half way. Its not like we are coming empty-handed. We are bringing minerals, you bring the machines. We mine together. BRLP: People wouldnt trust that the government would distribute those dividends, those taxes fairly, wisely and without corruption. That may not always be a fair comment but that perception exists. Malema: But Adriaan, youre paying tax now. You dont stop paying it now because you believe the government wont use your money properly. BRLP: We can complain, but we cant really do anything about it. Malema: Yes, thats how a democratic government is there will be those elements. Even today there is corruption how people get licences, get bribes, all kinds of things, theres no state involved in that what happens there, youd be shocked. Thats why we are saying it must not be given to individuals. As opposed to what Zimbabweans are talking about in nationalisation where you must appoint a Zimbabwean indigenous person and you must give him 51 percent a business person. The state has got a proper mandate from its people to manage the assets of its people. But it has got too little resource, it needs additional resources. Where are the extra resources? They are in the banks, they are in the monopoly industries and they are in the mining sector. Thats where extra resources must come from.

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BRLP: Theres no doubt that we mustnt just follow a free market or capitalist model, but then, are you pushing for something in the middle, a blend between socialistic and free market, or are you pushing for a socialistic state? Malema: Im not pushing for a socialistic state, Im pushing for our people to get bread on the table and if you call that socialistic then its fine with me I have no problem with what you call it. But anything that will result in our people being able to buy school uniforms for their children is what I want. I am not here calling for a socialist agenda thats why I am not calling for wholesale nationalisation to the exclusion of the private sector. The private sector still plays a major role in the whole thing, but with the state being a leading partner. BRLP: What place in society do you see for minority voices whites, coloured etc? I am a white Afrikaans speaking male who wants to be part of the solution. So when I hear you stand up and say we must take back the land and our money, I get the strong feeling I am excluded. And that creates a lot of alienation. Many South Africans feel excluded, they feel that race relations are regressing. Malema: No nononono the white minorities, theyre just scared of nothing. If we wanted to do anything to them we would have done it in 1994. We had all the reasons, but look, we are not anti-whites, but we cant ignore what happened historically and they need to come to terms with that. The sooner they appreciate that they have caused us so much pain, the better. They need to know that. They must never behave like nothing happened. Thats the problem, they want to behave like nothing happened, and they want to say to people, put everything behind we cant, we cant. Never ever try to push us to put everything behind because youre going to force us to pretend to you and once we are pretentious the anger in us is going to boil. And then it will explode. BRLP: So how do we confront and really clear up the race issues? Malema: They must open up, this is their country, they too should feel comfortable and never feel attacked when we speak about redressing the imbalances of the past. They must open up and one of the ways of opening up is to accept that apartheid has caused us this trouble we find ourselves in now. Then they need to ask themselves a question how do I contribute? Ive got land here, some of which Im no longer using; Ive just dumped my workers there to look after it. Why cant I, as part of my contribution give the state some of it, as my contribution towards land redistribution? And the state will then decide how to utilise that land. If its agricultural land it will have to go and look for competent people who have got what it takes to utilise the land because we must also be worried about the food security. We are not just going to take land, tomorrow theres no production. The mistake we did with the state buying of land and giving people without mentorship we dont need that. We need to get land, give it to people, but employ 18

somebody, even if its the Afrikaner, employ him to supervise the production there. He must be on the payroll of the state, he must know that hes paid to do that. But the point is, if you have nothing, as an ordinary white person why should you be worried, you have nothing, you have not stolen from anybody, you just have your house, you dont have anybodys land, you dont have all the monies, we are not talking about you. We are speaking to the Ruperts, the Oppenheimers; we are speaking to all those who are owning the means of production. White working class belongs to our struggle. They must come and join us to fight for equal distribution of wealth in this country, and when we say equal distribution of wealth we dont refer only to blacks we refer to the white working class who has got nothing. BRLP: What I hear you say now can potentially convince the ordinary guy on the street to enrol in your cause if he heard it that way. But you dont say it that way? Malema: Ive always said it; Ive said no white person is going to be driven to the river here. Not by us. That would be to the disappointment of Nelson Mandela. We would be undoing his work. But we need to be honest about what we want. And the media does not help. Those who own the media are those who own the means of production. You say you want to take from them, they use everything else they have to prevent you from taking from them; they then use the media to discredit our achievement, the struggle. But we are not worried about that the truth will come out. Everybody needs to appreciate that actually I belong here. BRLP: So you expect the farmer to realise or make some sort of breakthrough in his own mind and change his attitude and then perhaps give some of what he has. Its a big ask. And you are challenging a Laurie Dippenaar, a Paul Harris, the individuals from Stellenbosch, to stand up and give a billion as a token to show we still need to redress its asking a lot, perhaps. Malema: Its not asking a lot. Out of billions youre giving R1 billion; its not asking a lot. Its also clearing your own conscience youre an individual who has billions, you can do a lot with it. And you dont have to involve the state, if you dont trust them, then do it yourself. Call a press conference, announce that as part of a contribution this is what I am going to do and Im calling upon fellow white South Africans to make this contribution. We will celebrate that and you are actually going to break these hostilities one of us is actually appreciating that there is a contribution to be made. But why are they not doing that because the majority are still holding on to the past thinking they are superior, must remain superior and what makes me superior? Its the big land, big money and they must all come work for me. It cant be. Lets all make a contribution. We are now going for 20 years with all those expectations we had under Pres Mandela where we didnt achieve them, we are still patiently waiting that one day when things will be fine. 19

But for sure you know what happened in Africa 20 years after democratic breakthroughs people gave up and said, no, this is too much now, enough is enough, and they started chasing those who are seen to be perpetuating oppression. BRLP: What most people out there attack or query is your own wealth, as someone that fights for the poor and downtrodden, yet you have so much, and the suspicion is that you could only have acquired it illegally? What is your response to such arguments and views? Malema: Joe Slovo was not a black person but he fought against black peoples oppression by white domination. Im not rich but creditworthy because of my previous occupations. I never stole anything from anybody and neither was I once found guilty of illegal activities by a credible court of law. Im a child of a domestic worker and I grew up in a poverty stricken family. I dont read about poverty, Ive lived a poverty life. BRLP: You seem fearless I think thats one of the reasons why people are fascinated with you. Malema: Im not compromised other leaders are compromised. Theyve got skeletons in their own wardrobes. I dont owe anybody anything. They try and scare me and put investigations against me, put all manner of pressures against me. Ive never in my own conscious life took a decision to engage in a criminal activity and if you say you are investigating me about this or that let me get a day where Ill answer those allegations and deal with them. Im not going to be threatened. If I have done wrong, I should take responsibility for what Ive done wrong. But Im not going to suppress my views and my ideas. 24 July 2012 The Times Philani Nomembe and Nashira Davids

'If asked, I'll walk away'

President Jacob Zuma sat in the hot seat for almost an hour on Talk Radio 702 yesterday. Redi Tlhabi had a candid interview with the president on 702 and on 567 CapeTalk, asking for answers to the many questions his tenure has sparked. Questions were asked about his leadership, his polygamy and his friendship with Schabir Shaik. Though his spokesman, Mac Maharaj, said Zuma regularly gives "in-depth", "off the cuff" one-on-one interviews this one was one of the most intensive and expansive in some time.

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The interview started on a light note with Tlhabi joking that she thought Zuma might be a no-show because he had to catch up on the reality show Idols. Then the gloves came off. She asked Zuma to rate himself as president. "I'm not sure whether Jacob Zuma could rate himself. I doubt that would be appropriate because I could exaggerate," Zuma replied. "I think the performance of an individual is better rated by other people. All I could say is I have tried my best, given the task. "I have tried to put every effort, every initiative, every imagination to ensure that what is expected of me I do in a manner that would be acceptable and in a manner that would actually make a contribution to whatever the government is supposed to do in the country." Tlhabi went on to criticise his administration and took aim at the ANC . Basic Education Minister Angie Motshekga Motshekga has come under fire from all corners for the shocking state of education. "One of the criticisms of your leadership is that you take a long time to act on something that is urgent. We have a situation of textbooks in Limpopo, there is this task team, that task team ....when are you going to fire the education minister?" asked Tlhabi. "Well, I'm not sure about that criticism and I'm sure if, each day there was a report and I fired people, I would be [harshly] criticised that I don't follow through processes of the law," replied Zuma. He went on to explain that he first had to establish who was responsible for the problem in Limpopo before heads could roll. Former ANC Youth League president Julius Malema Tlhabi said Malema - whom Zuma once likened to former ANC leaders Anton Lembede and Oliver Tambo - had turned against him. She said that Malema had been similarly disrespectful of former president Thabo Mbeki in the run-up to the ANC's Polokwane conference, at which Zuma was elected president of the ANC. "Firstly (you might not have noticed this) the ANC Youth League, not just Julius Malema, after I was relieved of my duties [in June 2005] started insulting President Mbeki.

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"I stood up in many meetings to say: 'This is not done. You cannot do it. You can't deal with the president in the manner in which you did.' I'm on record," said Zuma. "On the issue of Julius, where I said there was a leader in this young man, I did not compare him with Lembede or Tambo. I think this is an addition to what I said. I said there was a potential leader in this young man that, in fact, we needed [to] nurture [him]. I still hold the view that in him is a leader." SchabirShaik and Jackie Selebi The talk show host read out an e-mail from a listener asking for Zuma's thoughts on the release of Schabir Shaik and of former top cop Jackie Selebi on medical parole. "Well, the release of people is in accordance with the conditions that are set out in the constitution, and powers given to either ministers or departments. After considering a number of facts, they take particular decisions. "I don't think I can take a view on each and every prisoner that gets parole. They get parole each and every day for a variety of reasons," said Zuma. Tlhabi interjected: "But these are not just ordinary people. They are prominent people who were 'connected', and there is a lot of cynicism about the extent of their 'terminal illnesses'. South Africans believe they are getting special treatment. "One [of them] is your friend and the other has formidable struggle credentials [and South Africans suspect] that, if you are connected, you will get medical parole." Zuma denied that Shaik and Selebi got preferential treatment. Winnie Madikizela-Mandela Madikizela-Mandela, who has sympathised with the ANC Youth League, has criticised Zuma for his polygamy. But Zuma would not be drawn on his personal life. "I don't think it is wise to try to discuss personal things unless those things impact on what you do." Job creation Zuma's relationship with trade union federation Cosatu also came under the spotlight. The federation has vigorously opposed the government initiative to create a fund for unemployed young people. "Your finance minister has expressed a level of frustration and impatience that we can't get going because labour doesn't want to. Who is in charge here?" she asked.

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"The government is in charge here, absolutely. It will always be in charge. It has a mandate, there is no doubt about it," he replied. ANC succession debate It is believed that Zuma will seek a second term as president of both the ANC and the country, but Zuma claimed he would step down if the party asked him to. He said he does not have an "appetite" to rule. 22 July 2012 The Sunday Independent Page 15 Dirk Kotze

Dlamini Zuma is the right woman for AU

The election of Nkosazana Dlamini Zuma as the new chairwoman of the AU Commission has been analysed from various perspectives. Most commentators view it as a major achievement for SAs reputation on the continent, but it is also regarded as a serious loss of ministerial capacity for the government. Dlamini Zuma served in three ministries since 1994: Health, Foreign Affairs and Home Affairs. All three gave her valuable experience in matters of priority for the continent. It also gave her managerial and leadership experience urgently required in the AU Commission. Moreover, Dlamini Zuma has never been compromised by accusations of corruption or maladministration. Powerful and vested interests have not intimidated her, as proven by her challenge of the main pharmaceutical companies regarding generic medicines. SA was not the only country to have benefited from this challenge. As Minister of Home Affairs, she reduced corruption levels in the department, professionalised its service to citizens and modernised its internal processes. This is the type of leadership change that the commission and AU bureaucracy will have to undergo. Home Affairs plays a very important role as the most critical contact point with citizens of other African countries living as refugees or asylum seekers in SA. The problems of inter-state migrations affect many African states, and Dlamini Zumas term as minister has exposed her to these dilemmas. As minister of foreign affairs, Dlamini Zuma with president Thabo Mbeki, deputy foreign affairs minister Aziz Pahad and senior officials like deputy director-general Welile Nhlapo were the architects of SA foreign policy and relations. She played a critical part in converting the conceptual basis of the Mbeki ideas into line-function, government programmes such as the African renaissance fund, the New 23

Partnership for Africas Development (Nepad), the African diaspora, the establishment of the AU and hosting of major UN conferences. In her AU capacity, it is expected that she will not only to be a managerial success but that she will provide more prominent intellectual leadership to Africa as a concept almost similar to the role of Jacques Delors in the European Commission in the 1990s. Dlamini Zumas election has several implications. So far the commission chairpersons have originated from median or small states. Her election broke with this tradition. It is not only an AU tradition but also a UN tradition: secretaries-general were from Burma, Austria, Sweden, Ghana, Egypt, Peru, Norway and South Korea. The unknown consequence of Dlamini Zumas election is whether it has set a precedent that will irretrievably change dynamics within the AU. Several commentators emphasised the divisive nature of the latest election. The continent is diverse in many respects: regionally, linguistically, religion, politically, etc. The AU is built on the pillars of the five regional economic communities some of them overlap in formations, like the Common Market for Eastern and Southern Africa (Comesa). Although the final vote was 37:14 in favour of Dlamini Zuma, it is skewed by SADC support. If that is accounted for, the remainder would be 22:14 in her favour. Two Economic Community of West African States (Ecowas) members are suspended and their presence would have changed it to 22:16. (Ecowas consists of 15 members and therefore it can be assumed that the majority of opposition came from this region). It means that Dlamini Zuma has to address reconciliation in the first instance between SADC and Ecowas. One of her priorities will have to be to integrate North Africa as a region more into Africa especially given the new opportunities after the Arab Spring. She will also have to manage unrealistically high expectations. Although the commission is the AUs executive authority, it cannot be compared to the European Commission. It does not have the powers to play the same prominence and provide the same leadership. State sovereignty is still dominant and therefore the AU is not a federation but a loose confederation. Expectations about Dlamini Zumas potential must therefore be tempered. The AU organisational structure is dominated by the assembly (summit of heads of state and government). Its chairman is annually appointed on a rotational basis. The commissions longer term of office provides much more continuity but has not yet been used to that effect to enhance its role in the AU. Peace and security remain priorities for the AU. Dealing with conflict is therefore shared between the AU Peace and Security Council (PSC) and the commission. The AU PSC depends largely on the initiatives taken by regional organisations and therefore the commission has the potential to take the lead in the AU regarding peace and security matters. It is expected of Dlamini Zuma to be more pro-active, to be 24

quicker with AU responses (consider the AUs lack of clarity in the cases of both Libya and Cte dIvoire) and for the commission to be more assertive in using the powers and instruments of the Constitutive Act. While regional economic communities are better designed to deal with economic matters, the AU does not have strong institutions to lead the new era of economic developments in Africa. Nepad is not designed for it; neither are the UN Economic Commission for Africa, the African Development Bank nor the Economic, Social and Cultural Council. None of them can be compared with the AU PSC in terms of powers and prominence. Under the guidance of Dlamini Zuma the AU Commission will have to develop leadership capacity in this regard. The continental objectives of intra-Africa trade and free trade areas have been overtaken by economic partnership agreements, strategic partnerships and others. Economic co-operation as a pan-African ideal has fallen behind these new dynamics of globalisation and therefore protecting and promoting African trade interests in the new context requires stronger leadership from the AUs centre. Much speculation is taking place about how SA might benefit from Dlamini Zumas new position. Does it create a new leadership role for SA? We have seen already accusations that SA bullied some states to vote for Dlamini Zuma. SAs leadership in Africa is not self-evident and is also challenged. It is dominant in SADC but not necessarily in the other regions. Militarily, SA is not the most dominant force in Africa. Some other defence forces are more professional and have more experience. In the next 15 years, some economies will overtake the SA in terms of GDP, mainly because of the growth in oil production and the fact that they have bigger populations and bigger domestic markets. The SA economy might become smaller than the others, but it will be more diversified, technological and less dependent on commodity exports. Politically, SAs position has been challenged in the past and several regional powers have emerged, such as Nigeria, Egypt, Kenya, Algeria and Angola. It is unrealistic to expect that Dlamini Zumas election will provide SA with a new leadership role. It will depend much more on SA government leaders, the role of the SANDF in conflict and the sophistication of the economy. Its roles in global issues like climate change, international human rights and humanitarian law, and nuclear non-proliferation are equally important. Given her experience, Dlamini-Zuma will be able to link the AU more effectively to these issues. And SA should receive some credit for it.

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20 July 2012 Business Day Page 3 Karl Gernetzky

SA had no option but to abstain on Syria vote

Deputy International Relations Minister Ebrahim Ebrahim says UN resolution aimed at ending violence in Syria was unbalanced SOUTH Africa had "no option" but to abstain on a vote this week on a Westernbacked United Nations Security Council resolution on Syria, as the unbalanced resolution would have led to an escalation of violence in the country, Deputy International Relations and Co-operation Minister Ebrahim Ebrahim said on Friday. On Thursday, South Africa abstained from voting on the resolution, which was aimed at pressuring President Bashar al-Assads government to end the turmoil in Syria, where hundreds are dying nearly every day, adding to a death toll of more than 17000 in 16 months of protests and a violent government crackdown that spawned a militarised revolt. The 11-2 Security Council vote on Thursday saw Russia and China exercise their power of veto, while Pakistan also abstained. Addressing the media at a briefing in Pretoria, Mr Ebrahim said the resolution had not provided for measures against the opposition for non-compliance with a plan of action drawn up by Kofi Annan, the UN-Arab League joint special envoy for Syria, and had therefore been "unbalanced". South Africas recommendations to balance the text had been rejected, which left it "no option but to abstain in the vote", he said. Mr Ebrahim said South Africas opposition to the resolution had not been "merely an issue of language", as a one-sided resolution would "only make the situation on the ground worse". The Syrian government would be pushed further into pursuing a military solution to the conflict, and the opposition would be emboldened to reject talks, he said. Mr Ebrahim said he could not understand why the vote went ahead when Russia had indicated it would use its veto power. Vitaly Churkin, Russias UN ambassador, said on Thursday the resolution should never have been put to a vote because the sponsors knew it had no chance of adoption. The vote went ahead "probably to score some type of political point", said Mr Ebrahim, adding: "We are therefore deeply disappointed that the council was not able to apply pressure to both sides to bring an end to the violence." 26

Mr Ebrahim said the division and "narrow interests" of the five permanent members of the Security Council China, France, Russia, the UK and the US prevented the situation from being addressed in a "balanced and mature manner". This led to a failure of the council to execute its primary mandate of maintaining international peace and security, he said. The minister said South Africa would keep pushing for a balanced resolution that would recognise "there could be no military solution" and result in Syria-led talks and, ultimately, a peaceful transition to democracy. Ian Davidson, international relations and co-operation spokesman for the Democratic Alliance, said on Friday while he "could understand where Mr Ebrahim is coming from", South Africa was now risking "being left on the wrong side of history once again". In abstaining from this vote, he said, South Africa was losing credibility as a country that believed in human rights and a just international order, and was alienating the Western and Arab League nations more directly affected by the Syrian conflict. 22 July 2012 Sunday Times Page 1 Sibongakonke Shoba, George Matlala, Sibusiso Ngalwa and Mantombi Makhubele

Motlanthe to reject Zuma offer to stay as deputy

Deputy President Kgalema Motlanthe "won't entertain" attempts by lobbyists for President Jacob Zuma to cut a deal to include him on the president's leadership slate for the ANC elective conference in December. The Sunday Times has established that, with less than five months to go to the conference, influential backers of Zuma's second-term bid want to persuade Motlanthe to stay on as ANC deputy president under Zuma - and agree not to contest the presidency of the party. Such a deal - plus the retention of Gwede Mantashe as ANC secretary-general would, Zuma lobbyists hoped, have avoided a divisive leadership battle similar to the one that split the party ahead of its last national congress in Polokwane five years ago. But Motlanthe's spokesman, Thabo Masebe, was adamant this week that the deputy president would not entertain such talks. "The deputy president will not entertain any talks with any lobby group about positions or leadership arrangements in the ANC. He respects the right of branches to nominate ANC leaders.

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"It is members of the ANC who will decide; it will not be a group of people who will make deals. He has said he will not be part of any group," Masebe said. Masebe's comments could be seen as a clear indication that Motlanthe will challenge Zuma if nominated by party branches to stand. This would be a blow to Zuma backers hoping to avoid a contest for the three top posts during the conference. That the party is headed for another bitter leadership battle was driven home this week when ANC veteran Winnie Madikizela-Mandela launched an unprecedented attack on Zuma, questioning his polygamous lifestyle and the axing of ANC Youth League president Julius Malema. In an interview scheduled to be broadcast by MTV Base in September - and which the Sunday Times has seen - Madikizela-Mandela speaks of the difficulty of convincing the youth to have one sexual partner when the president "can spring up another fiance tomorrow". Madikizela-Mandela gave the interview on Monday, just two days before spending former president Nelson Mandela's birthday in the company of Malema and suspended youth league leaders Sandiso Magaqa and Floyd Shivambu. The youth league has become the public face of the campaign to have Zuma replaced by Motlanthe. At the ANC's national policy conference last month, it became clear that the party was split between Zuma and Motlanthe supporters and that neither of the leaders was guaranteed victory. It is partly because of this that some in Zuma's camp are seeking the "no contest" deal. Among senior pro-Zuma ANC leaders said to be pushing for this deal are Police Minister Nathi Mthethwa, Free State premier Ace Magashule, and members of the KwaZulu-Natal provincial executive committee. A Gauteng-based ANC leader supportive of the proposed deal told the Sunday Times that such a compromise ought to be possible as Motlanthe had never said he wanted to take on Zuma. "Kgalema has not come out and said he wants to be president. Our view is that Kgalema and JZ complement each other. Kgalema is an intellectual; the president is a people's person," he said. A North West ANC leader aligned to Zuma said the party could not afford a showdown between Motlanthe and Zuma. "You cannot remove Kgalemanow, the organisation is going to be torn apart. The KZN people have always been saying that the deputy president should not be

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compromised because of factional battles. Whoever is campaigning in Kgalema's name is doing that on their own," the leader said. An ANC national executive committee member opposed to Zuma's re-election said he was aware of talk about a deal ahead of Mangaung. "There's a realisation from all candidates that no one is running [in a one-horse race]. No candidate has overwhelming support. So that's the discussion ... It's at its initial stages. "[Zuma supporters] were being arrogant ... but they were marginalised in the policy conference ," said the NEC member. Motlanthe's refusal to show his hand before the formal leadership nomination process opens in October appears to be frustrating his supporters and opponents alike. A youth league regional leader aligned to the Zuma camp said: "There is a strong view that Kgalema is double-dipping and does not distance himself from the [antiZuma grouping]. We only know from people close to him that he has committed to continue to serve the ANC under the leadership of JZ. But comrades are saying Kgalema must come out clear ... he must not allow his name to be used by these boys." He said if Motlanthe decided to stand against Zuma, the Zuma camp would push for businessman and former ANC secretary-general Cyril Ramaphosa to stand as Zuma's deputy. "The view about Ramaphosa is very strong in that you have JZ managing the political side and then have a strong deputy in Ramaphosa, who is a globally recognised businessman, running government business. "It would be good for our image. But we will accommodate Kgalema as long as he doesn't contest JZ," he said. Motlanthe supporters in Gauteng are now punting NEC member Joel Netshitenzhe as their preferred candidate to take on Mantashe for the post of secretary-general, although they point out that he has not yet been approached to stand. U ntil now, Sports Minister Fikile Mbalula has appeared to be the clear favourite for the post among Motlanthe's supporters.

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24 July 2012 Business Day Page 2 Helmo Preuss

Dlamini-Zumas AU post a business opportunity for SA

Public Investment Corporation CEO Elias Masilela says there is no better time than now to drive an African investment programme with a South African elected as the head of the African Union Commission There is no better time than now to drive an African investment programme with a South African elected as the head of the African Union (AU) Commission, but it is critical to use this opportunity responsibly, Public Investment Corporation (PIC) CEO Elias Masilela says. Mr Masilelas remarks at the second Nedbank New Partnership for Africas Development (Nepad) Business Foundation Networking Forum on Friday followed the recent election of Nkosazana Dlamini-Zuma as AU Commission chairwoman. Despite being met with scepticism in the rest of the continent, the move is seen as having the potential to open new business opportunities in SA, while testing the countrys diplomatic credentials in creating partnerships and consensus across Africa. The aim of the Nedbank forum was to provide insight into the investment environment in Africa. "SAs growth depends on the development of the rest of the continent, therefore it is important that we start looking at investment opportunities for SAs businesses in the rest of the African continent," Mr Masilela said. This had prompted the PIC to launch an Africa strategy in which it has committed 5% of assets under its management, or about R50bn, to invest in the rest of the continent, Mr Masilela said. The global perception of Africa has improved. The continent now boasts rapid growth, a more stable political landscape, improved governance. The trading environment in which African businesses operate today has changed significantly. The economies of Europe, Africas largest trading partner, are under significant pressure, Chinas influence as the continents singlelargest trading partner is on the rise, and the need for increased intra-Africa trade has become more pressing, given that intra-Africa trade is only 12% of total trade. "At the moment we are partnering with private equity and development finance institutions," Mr Masilela said.

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"Part of our focus is infrastructure as that way we fulfil our dual mandate of providing good investment returns to our members, while at the same time promoting economic development and job creation," he said. Mfundo Nkuhlu, managing executive for Nedbank Corporate, said that the Nedbank-Nepad Networking Forum filled a gap in the market for a platform where big business could interact and engage with public sector players on matters pertaining to doing business in Africa sustainably. At the inaugural Nedbank-Nepad networking session in April, which looked at the effect of the continuing eurozone crisis on business in Africa, South African Reserve Bank deputy governor Lesetja Kganyago also highlighted the need for diversification into intra-African trade.

20 July 2012 Business Day Page 1 Sam Mkokeli

Trade with China too skewed, says Zuma

President Jacob Zuma says Africas experience with Europe dictates need to be cautious President Jacob Zuma has praised Chinas commitment to Africa, but warned that a trade relationship heavily tilted in the Asian giants favour was not "sustainable in the long term". He was speaking yesterday at a high-level Forum on China-Africa Co-operation in Beijing, where Chinese President Hu Jintao pledged a $20bn credit line for Africa over the next three years. The pledge double what China promised to lend Africa at the last joint forum three years ago is likely to boost Chinas relations with Africa. Chinas friendship with Africa dates back to the 1950s, when Beijing backed its liberation movements fighting to throw off western colonial rule. The government relies on trade with China, which it considers a strategic partner, to help meet SAs development needs. Chinese firms have been invited to invest in the R3,2-trillion infrastructure programme. Trade with Africa last year reached $166,3bn, according to Chin a. Over the past decade, African exports to China have risen from $5,6bn to $93,2bn. Mr Zuma said while China provided industrial goods as well as skills development and investment to Africa, the continent supplied raw materials, other products and technology transfer.

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"As we all agree ... this trade pattern is unsustainable in the long term. Africas past economic experience with Europe dictates a need to be cautious when entering into partnerships with other economies." But the relationship with China was different as "we are equals and agreements entered into are for mutual gain". "We certainly are convinced that Chinas intention is different to that of Europe, which to date continues to attempt to influence African countries for their sole benefit," Mr Zuma said. The European Union has rejected what it call Chinas "chequebook" approach to doing business with Africa, saying it would continue to demand good governance and the transparent use of funds from its trading partners. But China says the West still views Africa as though it were a colony, and many African countries say they appreciate the Chinese no-strings approach to aid. Mr Hu brushed off such concerns in his speech yesterday, made just before Mr Zumas. "China wholeheartedly and sincerely supports African countries to choose their own development path, and will wholeheartedly and sincerely support them to raise their development ability." Mr Zuma emphasised the need for joint ventures between Africa and China, to ensure that there was diversification and beneficiation of raw materials, in order to improve the trade balance. Partly because of Chinas "unrelenting" support over the past decade, Africa had become one of the fastest-growing continents. Trade and Industry Minister Rob Davies said on the sidelines of the meeting : "Certainly, quite a number of us are thinking we need to move into more value addition. "We need to export mineral products in a more processed form ... We need to bite this bullet very seriously."

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26 July 2012 Business Day Page 3 Natasha Marrian

Use wage subsidy for training ANC

African National Congress secretary-general Gwede Mantashe says the R5bn set aside for the youth wage subsidy should be accessible to fund other interventions to alleviate youth unemployment The R5bn set aside for the youth wage subsidy should be "accessible" to fund "other interventions" to alleviate youth unemployment, African National Congress (ANC) secretary-general Gwede Mantashe said yesterday. Implementation of the contentious policy, budgeted for by Finance Minister Pravin Gordhan in this years budget after being first announced by President Jacob Zuma in 2010, hit a snag when it was rejected at the ANCs policy conference last month. Mr Mantashes latest comments appeared to indicate that implementation of the youth wage subsidy was no longer guaranteed in its present form and the subsidy could be headed for the drawing board. It had already come under attack from the Congress of South African Trade Unions (Cosatu), which argued that it would benefit employers and see older workers displaced. While Mr Mantashe did not say the subsidy under discussion before the National Economic Development and Labour Council was off the table, he said it should not be viewed in "isolation". "We said the question of cost sharing, this will entail the wage subsidy, can only work if it is a part of a more multipronged approach to youth employment," Mr Mantashe said at a media briefing yesterday. He was speaking ahead of a meeting of the partys top brass starting today, with job creation featuring on the agenda. "The question of internships, both in the public and the private sector, all those elements are issues that we should be looking into because there is not one solution that will resolve the question of youth unemployment," he said. ANC members rejected the concept of the subsidy at the policy conference but endorsed a job seekers grant the details of which have yet to be sketched out by the party. Mr Mantashe said the budget directed at the youth wage subsidy should be used to fund other initiatives such as internships, training, for young people wanting to attend further education and training colleges and for learnerships. "But you must always look at that budget in conjunction with the huge budget that is with the Setas (sector education and training authorities). 33

"That money to me should be money that is used to target young people for skilling and therefore increasing their labour mobility in general," he said. Business and the Democratic Alliance were pushing for the implementation of the youth wage subsidy, with the latter marching on Cosatus headquarters to drive their point home. The outcomes of the ANCs national executive committee lekgotla would feed into the next Cabinet meeting and the mid-term budget in October. The party leadership were also set to polish the recommendations from the policy conference, which would be released in time for its conference in December. Mr Mantashe moved to dispel confusion around the ANCs position regarding nationalisation of the mines, after mixed messages emerged in the aftermath of the policy indaba. "I know there is agreement that wholesale nationalisation will not work I know there is agreement that there must be bolder state intervention and state participation in the economy and that is phrased in the resolution as strategic nationalisation which means that it will be based on the assessment of merits of each case," he said. After the policy conference, the ANC Youth League accused the party of watering down its recommendations on nationalisation. "I dont know what the disagreement on nationalisation is, because when we give resolutions, we dont do a roll call of whether Gwede is happy or not. Once we have resolutions, thats what we take to national conference," he said. Auditor-general Terence Nombembes report on municipal finances would also come under discussion. The three-day meeting ends on Saturday. 26 July 2012 Business Day Page 3 Setumo Stone and Karl Gernetzky

Sims report fails to focus on growing mining sector

Business Unity SA vice-president Michael Spicer says that he is cautiously optimistic that most proposals in the State Intervention in the Mining Sector report commissioned by the ANC in 2010 are unlikely to be implemented Business Unity SA vice-president Michael Spicer said yesterday that he was "cautiously optimistic" that most proposals in the State Intervention in the Mining Sector (Sims) report commissioned by the African National Congress (ANC) in 2010 were unlikely to be implemented because of the importance of a growing industry.

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Speaking at a conference organised by the FW de Klerk foundation in Johannesburg, Mr Spicer said that the Sims document had made some positive proposals, but the fundamental flaw in the report was that the overall intention of the authors was not to focus policy on growing the mining industry, but "a static redistribution approach". This "flaw" was based upon the assumption that the industry would continue to operate "on autopilot" regardless of the nature of state intervention, said Mr Spicer. He said the authors assumed that with the planned interventions, investment and production would continue "magically," with the industry unhindered. Among the recommendations in the Sims report was a 50% resource rent tax on "super profits", increased regulation and ring-fencing of certain minerals would prove damaging and drive off investment. This came as critics pointed out that the ANC policy conference last month left investors somewhat confused about which policy direction the party intended to take in the future, amid niggling talk of nationalisation in a bid to enable more state intervention in the economy. Ratings agencies and economists have warned a lack of policy clarity would increase investor jitters. Mr Spicer said both the politicians and business had mismanaged the "so-called debate on nationalisation," with the fallout resulting in SA missing "not one, possibly two commodity booms". The exception had been Resources Minister Susan Shabangu , who was "courageous for remaining resolutely opposed to nationalisation," while President Jacob Zuma had issued "delphic statements" which rejected nationalisation but left a lingering "yet" hanging over investors. But Mr Spicer said there was growing recognition in government about the nature of the damage caused by the lack of clarity over the role of the state in mining, and the downturn in commodity prices could mute the push for "resource nationalism". He described the latter as a "global phenomenon" apparent whenever there was a boom. Governments "get tempted into feeling they are not benefiting enough and resort to policy interventions". He said the Sims report was commissioned late "to deal with something that was threatening to get out of control. I think (the writers) were instructed to make a finding against nationalisation and come up with alternatives." The vacuum left by the policy conference was highlighted by the South African Communist Party (SACP) at its congress this month, saying the ANC got bogged down on technocratic detail and failed to clarify the partys position. However, speakers at the conference fingered the SACP as the source of confusion in the ANC policy discussions. "The ANC is chasing down the blind alley of the SACPs design," said special research consultant to the South African Institute of Race Relations, Anthea Jeffery. 35

25 July 2012 Business Day Page 4 Sarah Wild

SKA telescope to turn brain drain in SA into brain gain

THE multibillion-rand Square Kilometre Array (SKA) telescope is attracting some of the best brains within and outside SA and is causing an "inverse brain-drain", according to SKA SA director Bernie Fanaroff. In May, the international SKA Organisation decided that SA would share the R23bn radio telescope with Australia. While foreign direct investment is an important benefit of the telescope, human capital development, renewed interest in science among the youth in SA, as well as the world class science expertise the project will bring to the country are also seen as crucial gains. "There is inverse brain drain from the US and Europe," Dr Fanaroff said. "People are saying that they want to come and work in Africa. As the SKA is built, we will see more of that." Associate director for science and engineering at SKA SA Justin Jonas said yesterday that a large part of this brain gain was because of the excitement surrounding the project, but he added that it was also because of the bad global economic conditions. However, Prof Jonas was careful to emphasise that the project would not be inundated with foreign scientists. "We have a commitment to the government to include local candidates (and) to keep the balance between excellent (world-leading) foreigners and our own candidates," he said. SA was "attracting very good talent" within the country as well, he said. "In the past, a lot of people applying were second-and third-string candidates, but the people applying are really top class." Since the South African Research Chairs Initiative was established in 2005 through the National Research Foundation, the Department of Science and Technology has invested R1,1bn in the programme. There are five SKA research chairs and five astronomy-related chairs. The idea is that these research chairs focus on their research and postgraduate supervision, rather than lecturing.

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Science and Technology Minister Naledi Pandor said earlier this year that "since 2005, 398 SKA SA postdoctoral fellowships and PhD, MSc and undergraduate bursaries have been awarded to 70 Africans outside SA". "To date, R55m has been spent on the human capital development programme. From 2012-17, an additional R200m-plus will be spent," she said.

18 July 2012 Business Day Page 3 Sam Mkokeli and Karl Gernetzky

New AU boss vows to seek unity among divided blocs

Home Affairs Minister Nkosazana Dlamini-Zuma has promised to work in "a way that tries to build consensus", as she prepares for her new role as the administrative head of the African Union (AU). Her election on Sunday evening as chairwoman of the AU Commission exposed the deep divisions among regional blocs. Before returning to SA yesterday, Dr Dlamini-Zuma told journalists that her election should be seen as a victory for the African continent, and not a personal one. She attended a Cabinet meeting, probably her last, before starting her new fulltime job. While Dr Dlamini-Zumas appointment has been widely welcomed, political analyst Moeletsi Mbeki has warned that structural problems would hinder her work. He said African armies had no capacity to fight interstate wars or insurgencies and as a result they could not keep peace in Africa. Africa had an unworkable model of regional economic integration as governments had to tax trade to finance their revenue needs. This was the reason the AU was a "talk shop" that could neither keep peace nor promote economic development, which were Africas key challenges. "It doesnt matter whether the chairman is a male Ping and speaks French or a female Zuma and speaks English." While welcoming the election, United Democratic Movement President Bantu Holomisa said it was a "pity" to lose Dr Dlamini-Zuma as a minister when the country was facing a "leadership crisis in many government portfolios".

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The Black Management Forum added to the congratulations and praise of Dr Dlamini-Zumas previous government portfolios yesterday, saying she had been "effective and outstanding" during her time in government. Former president Thabo Mbeki said she had the qualities to help mobilise the continent to address its challenges of underdevelopment, unity, peace and security. 17 July 2012 Business Day Page 3 Sam Mkokeli

Dlamini-Zuma has tough task ahead in her AU post

There are simmering conflicts in the Democratic Republic of the Congo, Sudan and Guinea-Bissau Nkosazana Dlamini-Zuma , who became chairwoman of the African Union (AU) Commission on Sunday night, has her work cut out. After the celebrations die down, she will wake up to the reality of the tough job she has on her hands. There are simmering conflicts in the Democratic Republic of the Congo, Sudan and Guinea-Bissau. That is the reality of this job, which is about running the administrative arm of the 54-member AU. This is a baptism of fire for her, as she prepares to sit like a company CEO, at the helm of the AUs administrative arm. While the AU members were deliberating on her election in Addis Ababa, Rwanda and the Congo agreed to an international force to intervene in the Congo. Consequently, at the summit members agreed on the need for international peacekeepers. The United Nations (UN) force has "in principle" been accepted. Rwandan President Paul Kagame said both sides had agreed in principle to accept the force. He was speaking after his first face-to-face meeting with Congo President Joseph Kabila since a UN report in June accused Rwanda of supporting Congolese rebels. The two met at the summit, which was scheduled to finish yesterday. Leaders from Rwanda and the Congo will meet again early next month to try to thrash out the details of the force including size, mandate, nationality and deployment details for eastern Congo. UN peacekeepers are already in the region. UN deputy secretary-general Jan Eliasson has called for an immediate end to the violence, warning countries of the region to respect the principle of noninterference. Back home, Dr Dlamini-Zumas victory is a feather in the cap for SAs foreign policy. President Jacob Zuma will breathe a sigh of relief. He often finds himself 38

putting out domestic fires in the African National Congress (ANCs) succession race. His detractors in the ANC say SAs standing on the continent has dropped under his presidency. This victory arms him with a response to those who say he is not a strong foreign policy president. Mr Zuma looks set for re-election in December. But the balance of power in the ANC is a seesaw. Mr Zuma seems to be rising to the challenge despite suffering a setback at the ANCs policy conference last month, when a policy concept he had endorsed was trashed. The victory will bolster his standing in SA, as Mr Zuma has proved he can play the shrewd political game in the minefield of African politics. This is also a big victory for the ANC, because it wants to be recognised as a strong force on the continent. Holding the position is seen as a matter of prestige more than political influence, as Dr Dlamini-Zuma will not be taking political decisions on her own, says Tom Wheeler, a research associate at the South African Institute of International Affairs. Coupled with Mr Zumas role as the "champion" of infrastructure development on the continent, the position will give SA more clout. Mr Zuma volunteered to head infrastructure development last year. This role is being co-ordinated by National Planning Minister Trevor Manuel . The job entails coordinating infrastructure networks such as roads and railways between SA and East Africa. SA is also a nonpermanent member of the UN Security Council. Dr Dlamini-Zumas win may put more wind in SA sails so much that a push for a permanent UN seat will not sound like a far-fetched idea. But Mr Wheeler says: "Its a nice idea, but in my view its not going to happen." The AU Commission position has up to now been held by small countries. SAs victory breaks that trend encouraged by a gentlemans agreement, though this was questioned by SAs diplomats. Mr Wheeler says Dr Dlamini-Zuma has six months to acquaint herself with her new role, before the next heads of state summit. The summits are held twice a year. One of the immediate tasks filling vacancies, but firstly establishing if there is enough money to fill them. She would also need to win the confidence of her bosses, in a charged environment. The race increased tensions between French-and English-speaking Africa, and also pitted regional bloc s in Southern Africa and West Africa against each other, which could create a tense environment after the election. For SAs International Affairs Minister Nkoana Maite-Mashabane, there has to be change within the AU. "What should change (with her election) there will be more accountability and fast-tracked implementation of decisions taken by the heads of state," she says.

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24 July 2012 The Times Amukelani Chauke

AG red-flags 95% of municipalities

The local government system is failing citizens dismally, as shown in the report by the auditor-general released yesterday. The report for 2010-2011 provides bleak insight into financial mismanagement and widespread lack of accountability by local government officials. Auditor-general Terence Nombembe said a mere 13 - or 5% - of the 283 municipalities in the country had received clean audits. Despite repeated warnings from his office and its offer of intervention strategies, there had been no improvement in this year's audits compared with those for 2009-2010, he said. His report has clearly sent shockwaves through the government as Nombembe was flanked at his press conference in Johannesburg by three ministers who spoke about legislation to hold senior municipal officials accountable for negative audits. Minister in the Presidency Collins Chabane, Finance Minister Pravin Gordhan and Minister of Cooperative Governance Richard Baloyi are to introduce a range of reforms that will be targeted at the third tier of government. Shockingly, not a single municipality in five provinces - Gauteng, North West, Free State, Northern Cape and Eastern Cape - produced a clean audit. About 53 municipalities, or 18% of the total, received qualified or bad audits, while 55, or 19%, received disclaimers for failing to provide supporting documentation for their financial statements. Seven municipalities failed to provide accurate financial statements, while 40 did not submit their financial statements on time. Other details from the report include: About 91% of the municipalities depended on consultants to balance their books while they employed staff to do the same job; Officials in key positions at about 70% of audited municipalities were incompetent; There was a lack of consequences for officials and political leaders for poor performance and bad actions; and

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Mayors and councillors in more than half of all municipalities were to blame for bad audits due to their reluctance to act on the auditor-general's recommendations after previous audits. Nombembe said over the past three years financial management had degenerated even further, with irregular expenditure - where tender processes and financial management laws were not followed - increasing from R6-billion in 2010 to R10-billion. Fruitless and wasteful expenditure - where money was spent and goods were not delivered or interest accrued on late payments - amounted to R260-million, up from R253-million in 2010. Unauthorised expenditure - where municipalities overspent on their budgets - remained high at R4.3-billion, compared with R6.3-billion in 2010. Gordhan said action needed to be taken against officials who mismanaged public finances. The local government system was there to serve citizens. "If that service is failing, even though you have good systems, then we are not performing well and we are not doing what we are supposed to do in relation to the core function of municipalities, which is to deliver everyday services." The Treasury would soon create a new unit - assisted by law enforcement agencies to enforce financial legislation and to impose penalties on officials who failed to comply with the law, Gordhan said. Chabane said the bad audits should be linked to service delivery: "The critical issue is to understand from our side .to what extent the bad audit reports are related to servicedelivery protests and problems in municipalities." He said it was difficult, under existing legislation, for the national government to act when municipal executives failed to take action against incompetence. Chabane said his department was piloting a new system where performance of departments would be directly linked to managers and principals at national, provincial and municipal levels. 20 July 2012 Business Report Page 18 DonwaldPressly

Manuel falls off balcony of ANCs chosen few

As the ANC becomes increasingly insular and opaque, reading signals from body language and other political who-is-in and who-is-out clues provided from rare appearances on the Kremlin balcony as commentators on the dark period of Soviet rule in Russia used to resort to doing becomes increasingly meaningful. Often much can be detected by checking who is not paraded before the public, as the newest ally of the all-powerful leader. 41

Blade Nzimande, the much re-elected SACP leader, claims he did not snub Deputy President KgalemaMotlanthe, who was guest of honour at a dinner during the partys 13th congress last week. Nzimande was understood to be a trifle ill and tired. Maybe there is some truth in it as it is exhausting to have to listen to ones own voice for many hours explaining the intricacies of dialectal materialism in the context of our transition from ruthless and racist capitalism to orgasmic socialism. It is quite clear, however, that Nzimande has the ear of the president and he is not going to be left politically dead in the water by chumming up to Motlanthe, who may well turn out to be a contestant for the ANC presidency in December. It is an early engagement in the presidential re-election war; a signal from Nzimande to Motlanthe that he must not even think of taking on the great leader. Of course, there is also a terribly well paid job that goes with the connection to the leader minister of higher education. There could well be an even better titled post in the offing, one never knows. Media briefing sessions at the ANC policy conference were an exercise in obfuscation, confusion and disinformation. Much more could be gleaned about what was going on in the closed sessions of the conference at interactions of the Progressive Business Forum, which is the creature of Daryl Swanepoel and RenierSchoeman, former MPs who woo businesses by putting them in contact with ministers. They also do a spot of selling South Africa abroad. Notable speakers on the breakfast programme were the new boys on the block: Economic Development Minister Ebrahim Patel, Performance Monitoring and Evaluation Minister Collins Chabane and Public Enterprises Minister MalusiGigaba. Even though Planning Minister Trevor Manuel presented his National Planning Commission draft report barely a year ago, he was nowhere to be seen. He was not a point man at media briefings, nor was he a guest of the forum. In fact he did not appear at the forum breakfasts. Although President Jacob Zuma mentioned the significance of both the New Growth Path the brainchild of Patel and the National Development Plan Manuels baby at the start of the conference, there was little evidence that the latter had any sway at the policy conference. Instead of the small government, big private sector arguments of the planning commissioners taking centre stage, big government and the discouragement of private sector investment particularly by foreigners won the ideological war. There was absolutely no suggestion that the commissions proposals on how to fix our dysfunctional education system were taken seriously. Since the conference, Communications Minister Dina Pule has made sure there will be no South Korean investment in Telkom. Manuels economic recipes are the agendas of yesterday. It seems that Manuel, who has never addressed the Progressive Business Forum, has been reduced to selling white elephants outside of the ANCs structures. He has fallen off the Kremlin balcony in a big way. 42

17 July 2012 The Times Page 4 Philani Nombembe

Arms deal: Manuel loses cool

Trevor Manuel, the Minister in the Presidency responsible for the National Planning Commission, has slammed Terry Crawford-Browne's suggestion that he should be investigated for perjury and money-laundering in connection with the arms deal. The activist revealed yesterday that in his submission to a judicial commission of inquiry into the arms deal last month, he requested that Manuel, who was finance minister at the time, be investigated. President Jacob Zuma appointed the Seriti Commission last year after CrawfordBrowne took the government to the Constitutional Court over the matter. "My submission to the Seriti Commission has requested investigation of charges against ... the minister ... of perjury in connection with the arms deal, and of moneylaundering against him," he said. Manuel yesterday blasted Crawford-Browne, saying his claims were "hollow" and without "moorings in facts or reality. "It is difficult to avoid the conclusion that Crawford-Browne is chasing demons, or that he lives in a parallel universe into which he wants to suck others," Manuel said. The two have had a long-running battle in and out of court over the arms deal. "Crawford-Browne has better things to do than indulge the obsessions of his imaginary friends. Nothing good can come from this," Manuel said. Crawford-Browne also called on Zuma to appoint a commission of inquiry into Barclays Bank's acquisition of Absa in 2005 in the wake of the London Interbank Offered Rate scandal. He also linked Barclays to the arms deal. Manuel's wife, Maria Ramos, heads Absa, which is owned by Barclays. "This is pertinent given the enthusiastic approval by the minister in 2005 when Barclays Bank took over Absa with a 55.5% shareholding. What threats did Barclays Bank make, given those 'representation, covenant and default' clauses? The takeover was trumpeted as a massive vote of confidence in South Africa."

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Ramos was quoted in the Sunday Times saying she was not concerned that Absa's image would be contaminated by its association with embattled Barclays. She told the paper the Absa brand was very strong in South Africa. Crawford-Browne's claims against Manuel mean the public spats are far from over. 17 July 2012 Business Day Page 4 Karl Gernetzky

Limpopo at fault for textbook supply fiasco

Public law centre Section 27 says the majority of the blame for the textbook saga should go to the provincial education department, which should be cleaned out The Department of Basic Education failed to meet the court-ordered deadline to deliver textbooks in Limpopo, but the majority of blame should go to the provincial education department which should be "cleaned out," the executive director of public law centre Section 27, Mark Heywood, said yesterday. The effect of the seven-month wait for education resources in the province has caused a public furore, with the delay culminating in court action, scrutiny of the efficacy of the national education departments intervention in the province, and three probes into what has caused the delays. In May, the North Gauteng High Court had ordered the delivery of the textbooks by June 15, following a successful court application by Section 27. This deadline was extended to June 27 after it became clear it would not be fully met. However, reports that schools have still not received their textbooks continue to pour in, and pressure has mounted on Basic Education Minister Angie Motshekga to resign. Yesterday, Section 27 released findings of an independent report which was compiled by a team headed by former education director-general Mary Metcalfe. The report, which verified the state of textbook delivery in the wake of the court deadline, concluded that pressure on the system had caused it "to buckle". The provider database showed that only 15% of schools had received textbooks by June 27. This has risen to 48% by July 3, when 98% of textbooks had been delivered to central warehouses. A much more comprehensive plan with more resources, capacity and infrastructure to deliver the books would have been needed if the two-week time frame was to be met, as the process usually took six weeks, the report said.

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Addressing the media yesterday Mr Heywood said the centre, which has been working closely with the national department since winning its case, acknowledged the crisis in the Limpopo education department had been inherited by the national department when it took over administration last December. It "was not solely" Ms Motshekgas responsibility and the centre would "not be commenting" on if Ms Motshekga should be dismissed, he said. But Mr Heywood said the report had corroborated others that the Limpopo education department was "rotten" and was incapable of meeting its constitutional obligation to pupils. Limpopo education MEC Dickson Masemola should be fired immediately as it was not justifiable for him to remain in his position when he "sits above such a wreckage," Mr Heywood said. Two more task teams one from the Presidency, and one from the Limpopo provincial government were appointed at the beginning of this month to establish responsibility for the seven-month delay. Basic education spokesman Panyaza Lesufi said it was unclear when the presidential task team would finalise its report. However, these types of teams had a turnaround of one month. The team could apply for additional time to fulfil its mandate, he said.
124 July 2012 Business Day Page 1 Natasha Marrian

Audit chief says R11bn misspent by councils

Auditor-general points to lack of consequences, dearth of skills in report showing deterioration in municipalities ability to account for spending. Local governments do not have to fear facing consequences from inaction in cleaning up their finances, Auditor-General Terence Nombembe said on Monday, as he announced that only 5% of municipalities had clean audits. He complained in May about the lack of accountability of public servants; that poor financial outcomes were regarded as the norm; and that no action was taken to combat poor performance. Now, Mr Nombembes local government audit outcomes for 2010-11 paints as dismal picture as last years report, with R11bn in unauthorised, irregular, fruitless and wasteful expenditure.

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The report showed a deterioration, as none of the eight metros received a clean audit, including the City of Cape Town, which had clean audits for the past two years. Mr Nombembe said there was still an absence of consequences for poor performance and transgressions among the audited municipalities and 60 municipal entities such as City Power, Johannesburgs electricity utility. "We are seeing the impact of a lack of skills, the slow response of leadership to owning key controls as well as the absence of managing poor performance and risks that municipalities continue to face. At the moment these risks are beyond tolerable levels," he said. The risks included the management of supply chains where there was a "growing trend" of irregular spending poor human resource management and few controls to ensure the security of information and the accuracy of reports, despite an increase in the use of consultants. There was unauthorised, irregular or fruitless and wasteful spending in 86% of the bodies examined, with accounting officers in 84% of them failing to take reasonable steps to prevent it. Irregular spending rose from R6bn in 2009-10 to R10bn in the next year. This did not necessarily mean fraud had been committed, but it was a "measure of the auditees ability to comply with laws and regulations relating to expenditure", Mr Nombembe said. The biggest contributors to irregular spending were KwaZulu-Natal with R2,1bn and the Eastern Cape with R1,4bn. It was most prevalent in the Northern Cape, at 90% of councils, the Free State (89%) and Limpopo (83%). Fruitless and wasteful expenditure increased from R253m in 2009-10 to R260m, with the Free State wasting R115m. Finance Minister PravinGordhan told the briefing on Mr Nombembes audit that the Treasury was about to appoint a chief procurement officer to address growing concern about supply chain management. He said he was disappointed that none of the well-resourced metros had received clean audits. Five municipalities in the Western Cape were among those that failed to submit their financial statements on time, although the overall audit outcomes for the province remained unchanged. The dire situation in the City of Johannesburg was unchanged, and it received a financially qualified opinion. Mr Nombembe gave 156 of the 343 audited entities unqualified audit reports with "internal control concerns" or findings a decrease from 46% of entities last year to 45% this year. He said the unqualified reports were obtained only after corrections during the audit process with the help of the auditors.

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The auditor-generals office gave 18% of municipalities financially qualified reports and 19% received adverse opinions or disclaimers. There was no opinion on 13% of the 283 municipalities that had failed to submit their financial statements on time. Mr Nombembe said 13 municipalities received clean audits four in KwaZulu-Natal, five in Limpopo, two in Mpumalanga and two in the Western Cape. No municipality in the Eastern Cape, the Free State, Gauteng, the Northern Cape and the North West received a clean audit report. Only four municipal entities received clean audits, dropping from 10 last year.

7 July 2012 Business Day Page 4 Bekezela Phakathi

ANC pickets, calls for MECs firing over threat to close schools
The African National Congress (ANC) in the Western Cape yesterday called on Premier Helen Zille to fire education MEC Donald Grant, whom it argued was not "fit and proper to hold office". The ANC picketed outside the provincial legislature over the proposed closure of 27 schools in the province and the "failure by the provincial education department to deliver textbooks to some schools in the province". The picket, by about 50 ANC members, and the call for the resignation of Mr Grant appeared to be timed to coincide with the release of a report into the Limpopo textbook crisis. The report, by former Department of Higher Education director-general Mary Metcalfe, found that despite the extended date for the delivery of textbooks, the Department of Basic Education had not fully complied with a court order and that the crisis was likely to recur next year. Speaking on the sidelines of the picket where a memorandum detailing the ANCs grievances about education in the Western Province was handed over to a provincial legislature official, the partys provincial secretary, Songezo Mjongile, said Mr Grant had failed in his task to deliver quality education. Mr Mjongile said the proposal to close down 27 schools in the province and the failure by the provincial education department to deliver textbooks to some schools indicated Mr Grants "incompetence". 47

The provincial government last month announced plans to close down 27 underperforming schools, citing low pupil numbers. Earlier this month, the ANC said that the Democratic Alliance-led provincial government had failed to deliver textbooks to some schools in the province more than halfway through the school year. Mr Mjongile said Mr Grants "denials" that textbooks were not delivered to some schools showed "his dishonesty and lack of leadership". Mr Grants spokeswoman, Bronagh Casey, said yesterday: "It is again clear that the ANC charade is a political ploy to divert the attention from the failure of the ANC to deliver quality education in other provinces. "Their tactics will not deter Mr Grant from fulfilling the requirements of his position and he will continue to implement the strategies that have proven successful over the last few years." She said Mr Grant had never denied that there had been a shortage of textbooks in schools. "The ministry has in fact released a statement detailing the shortage of textbooks at one of our schools and has explained what the circumstances are," Ms Casey said. "The original order placed by the school for the outstanding textbooks was delayed due to errors with the title descriptions, which had to be followed up with the school. The department had reordered these books and they were delivered last week." Ms Casey said the ANC allegations that Mr Grant had closed more schools than he had built were incorrect. "(Mr Grant) has closed 15 schools during his tenure. The majority of these schools had low and dwindling learner numbers, and involved only 1231 learners from the 15 schools. The ANCs allegations and claims are part of a wider campaign to discredit Mr Grant, who has a proven track record of delivery." 17 July 2012 Business Day Page 1 Natasha Marrian

Do not blame us for SAs poor education, says Sadtu

The South African Democratic Teachers Union has absolved itself of responsibility for the dismal state of South Africas education system, saying its only duty is to represent its members THE South African Democratic Teachers Union (Sadtu) has absolved itself of responsibility for the dismal state of SAs education system, saying its only duty is to represent its members.

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Criticism of the education system is often directed at Sadtu, a Congress of South African Trade Unions (Cosatu) affiliate with about 250000 members. A report released yesterday said the Department of Basic Education had failed to comply with a court order to deliver textbooks to Limpopo schools only 15% were delivered by the June deadline imposed by a court. Cosatu general secretary Zwelinzima Vavi said recently the federation had to account for its silence as Limpopo pupils suffered for months without textbooks. But Sadtu vehemently disagreed. Its general secretary Mugwena Maluleke described Mr Vavis comments as "unfortunate" in an interview yesterday. He said Sadtu had been "on the front lines", trying to resolve the issue, but was told schools merely needed a "top-up" of textbooks. The union supported the probe into the nondelivery of textbooks and held the ministry and Department of Basic Education responsible. He said the two probes into the problem would reveal whether "politics was at play". The Limpopo education department was one of five provincial departments to be placed under the control of the national government in December last year. Limpopo Premier Cassel Mathale is an ally of expelled African National Congress (ANC) Youth League leader Julius Malema, who was spearheading a campaign for the removal of President Jacob Zuma as ANC president. Mr Maluleke would not be drawn on whether Basic Education Minister Angie Motshekga should resign, saying the probes would uncover who should take the fall. Sadtu and the national government were also at loggerheads in the Eastern Cape over several issues, such as financial mismanagement. "Its a concern for our organisation. There are no consequences for corruption, there are no consequences for inefficiency, there are no consequences for negligence by some of the departments, in particular the bureaucracy ," he said. Mr Maluleke said it was not within Sadtus mandate to discipline its members that was the duty of the employer. "Our responsibility is to represent teachers. Representation is not defending a conduct, but its meant to ensure that the procedures give them a fair hearing," he said. "Why is the department of education not exercising a right which is there? We must hold the department accountable for the behaviour and the conduct that we see in our schools." Last year, scores of Sadtu members abandoned their teaching posts to support two members, including a regional office bearer, who appeared in court for assaulting a 17-year-old pupil. Department of Basic Education spokesman Panyaza Lesufi said it was up to provincial departments to discipline their employees. Provincial MECs could also not

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be fired by the national department as they reported to their premiers and not the minister.

17 July 2012 Business Day Page 1 Paul Vecchiatto

State shuns money from abroad for Telkom

Communications Minister Dina Pule says skills are all Telkom needs to achieve broadband revolution Communications Minister Dina Pule says Telkom does not need foreign direct investment to achieve its turnaround strategy all it requires are skills and competency. The Cabinet in May rejected a R2,68bn deal proposed by South Koreas KT Corporation to buy a 20% stake in SAs largest fixed-line telecommunications operator and gave Ms Pule three months to come up with an alternative strategy for Telkom. Replying to parliamentary questions from opposition MPs yesterday on why the deal was scuppered, Ms Pule said Telkom was a key component in the governments efforts to improve skills and ensure its target of 100% access to broadband coverage was achieved by 2020. The government owns 38,9% of Telkom 51% if the Public Investment Corporations stake is included. Ms Pule said the Department of Communications was driving the governments policy to roll out broadband. The implication was that Telkoms turnaround strategy would be closely linked to the broadband plan. Last week, the Treasury issued invitations to international and domestic banks and to the telecoms sector to take part in a "market sounding" on July 25-27 on achieving 100% coverage. The departments of communications and public enterprises and the telecoms regulator, the Independent Communications Authority of South Africa, would attend. The Presidential Infrastructure Co-ordination Commission, chaired by President Jacob Zuma , had identified broadband as one of 17 strategic infrastructure projects, the invitation said. Only about 2% of South Africas 50-million people have access to fixed-line broadband, 4% to mobile personal computer broadband, and 17% have access through their cellphones. 50

The Treasury did not respond to questions about its market sounding yesterday. Analysts said the private sector remained confused over which government department was driving the broadband strategy. "National Treasury seems to be stepping in and doing what the Department of Communications says it is doing," Dominic Cull, a telecommunications regulatory lawyer, said yesterday. He said that the "vague reasons" given for scrapping the KT deal did not satisfy the telecoms sectors need for clarity on what the government intended to do to extend fixed-line services in South Africa, or whether that would happen through Telkom. Avoir Research telecommunications analyst David Lerche said the key to the KT deal was "the smart people from Korea who would help Telkom. KT did amazing things in rolling out broadband in Korea." He said the rationale behind the argument that Telkom did not need additional capital was sound. Telkoms recent decision not to pay dividends for the next three years meant its cash resources would be more readily available. "If that could be extended to four years, it would bring Telkom close to what the KT deal would have brought in anyway," Mr Lerche said. Congress of the People MP Juli Kilian said she was concerned that Ms Pule had said in her reply that Telkom did not need foreign investment. "This could be nationalisation by stealth," she said. Democratic Alliance MP Marian Shinn described the Treasurys invitation as "rushed", with companies being given only two weeks to respond. "It seems unrealistic to expect considered responses from the industry in such a short time," Ms Shinn said. 20 July 2012 Financial Mail Page 42 Troye Lund

Cutting edge: Blade Nzimande

Blade Nzimande has been re-elected SACP leader, a position he has held since 1998. What makes him the man he is? When Bonginkosi Emmanuel "Blade" Nzimande was a 13-year-old boy living in a mud hut in Edendale near Pietermaritzburg in KwaZulu Natal, his mother, Nozipho a single parent and nursing aid - became gravely ill. Thinking she was going to die, she handed Nzimande her purse telling him that it contained all the money she had

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and, as the oldest child, he was now responsible for the family. Inside the purse there was just enough to buy some canned fish and bread. Nzimande's mother did pull through and in spite of her R80/month salary she was determined to get her children educated. She borrowed, gambled on the horses, and managed to send Nzimande to the University of Zululand (see box). This set him on course to become the first registered black industrial psychologist in SA. Aside from inheriting his mother's steely resolve, those who have known Nzimande say, the poverty he experienced as child shaped his views on socialism and laid the foundation for his biggest obsession - class. By the time Nzimande started lecturing in the psychology department at the University of Natal in Durban in 1987, he was living and breathing politics, and was active in organisations like the United Democratic Front. He had been part of a 1986 delegation of academics who met exiled ANC leaders, including Thabo Mbeki, in Zimbabwe at a summit on post-apartheid policy funded by Sweden. Nzimande's university students and former colleagues remember the passion with which he delivered his lectures as well as his asides about a good curry or his favourite soccer team, Orlando Pirates. They remember a man who wasn't fazed by the racist heckling that a black lecturer at the mostly white university often had to endure. He became well known for his acerbic wit and the cutting comments he had for those who dared taunt him. "He was very serious about his lecturing and his research into the emergence of a black middle class and was advising the relevant networks at the time," says University of Cape Town sociology professor Ari Sitas, who was Nzimade's PhD supervisor at the University of Natal. Nzimande's prior experience at Tongaat Hulett as an industrial psychologist, says Sitas, boosted his confidence as it meant he taught from both theory and practical experience. It wasn't until 1989 - the year he became formally involved in education after setting up the university's education policy unit - that he joined the SA Communist Party. Initially he was critical of the party, saying it was getting lost in the exuberant talk of glasnost, forgetting the basics, especially the matter of class. Today Nzimade's critics in the tripartite alliance of the ANC, the SACP and labour, accuse the 54-year-old leader of something similar. They argue that his public Marxist persona masks a "narrow, chauvinistic and money-driven" personality. Like several Nzimande critics in the SACP have done, Vishwas Satgar resigned in 2006 as Gauteng leader after clashing with Nzimande. He suggested that Nzimande was an intolerant Stalinist who would get rid of critics and potential challengers. Young Communist League secretary and SACP member Mazibuko Jara was also kicked out when he questioned Nzimande's backing of Jacob Zuma in 2005. In 2007, SACP president Willie Madisha came off second best when he claimed that in 2002 he'd handed Nzimande a black bag containing R500000 in cash that was meant for the SACP but later went missing. Nzimande dismissed this as a smear campaign to discredit him.

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He reserves equal contempt for those who call him a "Gucci communist", pointing to his champagne taste and double income (as minister and SACP leader) and his decision to buy a new top-of-the-range R1,1m BMW when he became a minister. Nzimande is open to debate about why communism failed in the Soviet Union, but he continues to see it as an untested ideal, unlike "barbaric" capitalism. His ideology, however, has been called into question by his position on matters like the controversial secrecy bill. While workers protested against it and veteran communist and MP Ben Turok made headlines for refusing to vote for it, Nzimande said it was "correct and necessary". In his 1996 book Portraits of Power, Mark Gevisser says Nzimande needs to be respected like a Jack Russell terrier. They're both "compact, tenacious, intelligent, scrappy when provoked, affable once they get to know you and intensely loyal to those they trust". These traits have been handy for Zuma. Nzimande worked doggedly for more than two years as part of the campaign to dismantle the legal case against Zuma so that he could be installed as ANC president in 2007. Nzimande was central to the strategy to discredit and get rid of Mbeki. Frank Chikane, who was Mbeki's director-general in the presidency, linked him to a "vicious" campaign to discredit Motlanthe during his short fill-in presidency between Mbeki and Zuma. Nzimande was outspoken about Motlanthe being part of the old Mbeki crowd, and he continues to unleash his wrath on Zuma's critics. This is always dramatic, sometimes paranoid and usually laced with a sense of conspiracy. Journalists who criticised Zuma at the ANC policy conference, for example, were called a "mouthpiece of factionalists" in the ANC and an "organised opposition voice". Nzimande suggested that journalists were being paid by ANC leaders wanting to discredit Zuma and scupper his bid for a second term. Tensions in the ANC over Nzimande's rise to power and speculation about his plan to be elected into one of the ANC's top six positions, possibly deputy president, spilled over at the recent ANC national executive committee (NEC) meeting. NEC member Tony Yengeni questioned Nzimande's struggle credentials by suggesting he'd been a member of the IFP and, therefore, something of an apartheid sellout. The SACP says this is nothing more than a tribalistic smear campaign. There's no factual proof for the allegation and Nzimande has always been disdainful about the IFP, especially when he was in parliament as an MP between 1994 and 1998. He blames the party for wiping out his wife's uncle's family in the 1990 violence against the ANC and has slammed its 1994 victory in KZN as a fraud. Cosatu, which is critical about Nzimande's dual role as education minister and SACP boss, saying it contradicts working-class interests, has also been fobbed off, especially when this disapproval is recorded in what Nzimande calls the "bourgeois media". Nzimande argues that the SACP wants members in "all sites" of political and state power so they can push a socialist agenda.

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The acid test, however, is whether this strategy is paying off. During interviews over the ANC policy conference, Nzimande acknowledged that "we [the SACP] are not where we would like to be" and argued that the socialist project would take time. But he's confident that Zuma's government is receptive to socialist influences, especially in the way it "rescued" the country from the Mbeki-era Aids denialism and "language of privatisation". The reality is that SACP members in government often find themselves having to support legislation and policy that workers object to, such as the controversial plan to toll Gauteng highways. Educationalists say Nzimande is better at defining problems than finding practical solutions - which is a problem that defines Zuma's administration - but call him one of the better education ministers the country has had. 20 July 2012 Business Day Page 5 Khulekani Magubane and Colleen Goko

SA on track to reduce mother-to-child transmission

Health Minister Aaron Motsoaledi says South Africa is on track to meet its target of ensuring that mother-to-child transmission of HIV in the country was below 2% by 2015 SA was on track to meet its target of ensuring that mother-to-child transmission of HIV in the country was below 2% by 2015, Health Minister Aaron Motsoaledi and the South African Medical Research Council said yesterday in Johannesburg. The council released findings of the SA Preventing Mother to Child Transmission survey, which showed a decline in mother-to-child transmission from 3,5% in 2010 to 2,7% last year. The survey was conducted in 580 health facilities in all nine provinces over four weeks. However, Dr Motsoaledi said despite this the number of women and girl children living with HIV in SA and sub-Saharan Africa is still too high, constituting 60% of those living with HIV in sub-Saharan Africa. "This means that we need to deal more decisively with the structural issues that affect the lives of women and girls in the particular ," he said. Increased access to education for girls, keeping girl children in school for as long as possible, and empowering of women were critical in the fight against the epidemic, Dr Motsoaledi said.

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The medical councils AmeenaGoga said that transmission rate variability between provinces had also decreased between 2010 and last year. "Many people will raise questions about the Northern Cape because it looks like it has increased ," Dr Goga said. She said the Northern Cape was tricky as it had a very small population. HIV prevalence among pregnant women was low compared to the rest of the country, "so to get valid transmission rates one would need larger sample sizes, so those estimates are unstable," she said. Dr Goga noted an increase in HIV-positive pregnant women with access to highly active antiretroviral therapy from 33% in 2010 to 43% last year. On Wednesday, the Joint United Nations Programme on HIV/AIDS (UNAids) released a new report which showed that most countries affected by the disease have increased spending on programmes to fight it. According to the report, 81 countries had increased domestic spend on AIDS programmes by more than 50% between 2006 and last year. Domestic spending in sub-Saharan Africa, excluding SA, jumped by 97% over the past five years. In SA, 80% of the money spent on AIDS is from the countrys own resources, excluding foreign aid, and investments on AIDS-related programmes has quadrupled in the past five years. Siobhan Crowley, the head of health and nutrition at Unicef SA, said sub-Saharan Africa had 15 of the priority countries, which had plans with clear targets. "This is something to celebrate. However, we are the region with the greatest work to do," Dr Crowley said. Doctors without Borders expressed support for continued international funding to curb the spread of HIV in African states. Senior regional adviser for Southern Africas Doctors Without Borders, Eric Goemare, said that while there were enormous gains in the fight against HIV in Africa, the countries most affected struggled to implement strategies to fight the disease. "Botswana and Namibia are success stories with 90% access to HIV treatments. SA was a late starter, but now an estimated 6,2-million people have access to ARV (antiretroviral) treatment ," Dr Goemare said. "Thats just over half of the population living with HIV. But it would be outrageous to assume that African states could combat this emergency alone, given their current limited resources," Dr Goemare said.

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20 July 2012 Business Day Page 5 Edward West

Legalised trade in horn could save rhino

KwaZulu-Natal conservationist proposes regulated sales, writes Edward West Ezemvelo KwaZulu-Natal Wildlifes push to have the global ban on the rhino horn trade lifted has found support in a new proposal to establish a central selling organisation (CSO) for rhino horns, similar to the one that enabled De Beers to control diamond prices and markets. SAs rhino population has since 2007 been threatened by poaching, with the commodity reaching prices of R65000-R80000 a kilogram. For centuries, people in the Far East have believed the horn to be imbibed with medicinal properties. SA protects about 90% of the worlds rhino population. The government has launched a campaign, in all spheres of government and law enforcement agencies, against poaching. The number of rhinos poached in SA this year now stands at 281, with 176 people arrested in connection with rhino poaching. Last year, 448 rhinos were killed. "There is no silver bullet" to eliminate poaching, but stabilising demand and prices for the horn to generate income and disrupt illegal trade, and better law enforcement, can make rhino conservation sustainable over the long term, says Roger Porter, the former head of planning at Ezemvelo, the environment and conservation management department of the KwaZulu-Natal provincial government. Mr Porters plan includes selling horns directly to Chinese pharmaceutical firms. Horns will be certified by chemical analysis and transponder chips through the proposed CSO. Buyers will be certified, there will be three to four international sales a year, only clean horns will be sold, and the horns will be imported and exported through the Convention in International Trade in Endangered Species (Cites) certificates. Although Ezemvelo has proposed legalising the rhino horn trade for some time, Mr Porter has given details for the first time about how such trade could operate. Ezemvelo is pushing the central government to propose to Cites at its meeting in March next year the lifting of the 30-year ban on rhino sales. If SA persuades Cites, it may only be another two years before a formal system of legal rhino horn trading is established.

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One of the biggest hurdles to legalisation is that the government needs to retain ties with trading partners such as Vietnam, China and the European Union, and overturning the ban will require approval from two-thirds of Cites members. Mr Porter says the horns for trading will be supplied only from the natural deaths of the relatively healthy white rhino population in southern Africa, and from stockpiles accumulated by the government and private sector over decades. Stricter penalties and better policing for rhino poachers was essential, and income from the legal trade will go back to the conservation of the animal. Mike Knight, chairman of the Southern African Development Community Rhino Management Group, says if the rhino is to survive, the situation where stakeholders that protect the animal carry all conservation costs, while poachers take the economic benefits, must be reversed. Mr Porter wants the government to try out his proposal for legal trade of the horn for five years to "see what impact it has on poaching and black market prices". If there is no benefit, the sales could be stopped. Ken Maggs, environmental crime investigation unit head for SANParks, says high unemployment near national parks, particularly around the Kruger National Park and in KwaZulu-Natal, where most poaching takes place, is a "serious contributing factor" to poaching. Mr Knight says the private sector and communal land dwellers should be encouraged to generate revenue from the protection of rhino. Mr Maggs says well-organised crime syndicates that previously specialised in hijackings, cash-in-transit heists, illegal firearms and human trafficking, were opting to enter the rhino trade because of the lower risk. Perpetrators are usually only fined rather than being sentenced to jail, and these fines are easily paid by the syndicates, given the substantial amounts of money involved in the illegal trade, he says.

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18 July 2012 Business Day Page 1 Mark Allix and Setumo Stone

Sanyati CEO lifts lid on the chaos that sank his firm
South Africas ability to build infrastructure limited by systemic corruption South Africa has systemic corruption and incompetence in provincial and municipal government, particularly in the Free State, KwaZulu-Natal and Limpopo, says Malcolm Lobban, former CEO of soon-to-be-liquidated civil engineering and construction company Sanyati Holdings. The listed company, employing about 2500 permanent and temporary staff, has been forced out of business rescue over the nonpayment of contracts by departments in all three provinces. Late on Tuesday it was still unclear whether the Free State government had acted legally in awarding contracts to Sanyati and other companies, because it knew it could not pay for the work. Speaking on Tuesday for the first time, Mr Lobban, who stepped down as Sanyati CEO last month, said an "unprecedented debacle" involving 23 road rehabilitation contracts awarded by the Free State department of police, roads and transport in 2010 was just the tip of the iceberg. He said rapid staff turnover at the Free State roads department had caused chaos. The three directors-general employed by the department had accused contractors of shoddy work and corruption, and had refused to pay. "Allegations that our work was shoddy are completely unfounded. It is corruption and incompetence, and if I had to choose one over the other, I would say corruption," Mr Lobban said. He said South Africas ability to deliver infrastructure was being "compromised" by this state of affairs. His remarks echo wide concern in business as the government prepares to embark on a big infrastructure drive, potentially worth R3,2-trillion. Recognising the threat, the Treasury has had the Free State roads department, most departments in Limpopo and some in Eastern Cape under national administration all of this year. But, Mr Lobban said, this has led to little more than payments to service providers being suspended. "Any bank will tell you their client base is littered with this kind of problem because the government has not paid timeously." 58

He said contractors had been reduced to fighting "tooth and nail" to get paid, including by "appealing to morality". But, he added, "you are confronted with deceit, heavy-handedness and stringing along". He said a large number of contractors, big, medium and small, have been affected by "apparent" violations of the Public Finance Management Act by the Free State, and that "irregular and corrupt" behaviour was widespread. "The fact is they have been shuffling guys all over. All of Free State roads from head of department down were fired, all on allegations of corruption." Mr Lobban said that by the end of last May, Sanyati had an 18-month outstanding claim of R43m from the Free State roads department, after having received R14m in part payment late last year. In desperation, he had personally asked the Treasury for payment, to no avail. He also said Sanyati executives had been "questioned" some months ago "hearsay" indicated this had involved former police commissioner George Fivaz and Sanyati had been given a clean bill of health. Listed engineering and construction contractors including Sanyati, Basil Read, Raubex and Wilson Bayly Holmes-Ovcon( WBHO ) have all been affected by protracted nonpayment issues, with the Limpopo government only paying contractors R280m after a direct appeal to President Jacob Zuma , Mr Lobban said. Sanyatis cash flow began to dry up this year, and First National Bank froze its R80m overdraft. "Effectively we have been playing banker (to local government)", Mr Lobban said. Free State police, roads and transport MEC Butana Komphela had acted "positively", but was "thrown a hospital pass". Nonpayment to the group included R14m by Limpopo, and three claims in KwaZuluNatal amounting to R30m. Money had been "stolen" by an agent appointed by a south coast municipality in KwaZulu-Natal, despite "work legitimately performed, measured, certified and invoiced", he said. There were also carrying costs for the more than R850m second phase of the Western Aqueduct bulk water project supplying Durban, during a legal battle over the granting of the tender to an Esorfranki-Cycad Pipelines joint venture opposed by the Sanyathi Phambili joint venture. Kobie Botha, group MD for the roads division of WBHO, said on Tuesday the Free State roads department had originally tendered 23 contracts, of which only 12 were carried out. These were spread between WBHO, in a joint venture with Edwin Construction, and Raubex, Basil Read and Sanyati, which won a single (and ultimately disastrous) contract.

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"Remember, you had to finance these things its uncommon and thats the cause of the problems," Mr Botha said. He said the roads department had said it did not have money, and had asked contractors to design, finance and construct the projects with "milestone" payments over four years. "They asked for a solution, so we gave them a solution. It was an opportunity, so we took it, with (the Free State) government as a client, but it turned out to be not so great," Mr Botha said. When the roads department ran out of money and stopped paying, contractors "stopped working", but retained a presence on each site to maintain safety. "We are continually trying to find a solution with the (Free State), and are positive we are close to one. Once agreement is reached we will go back and complete the contracts." Free State roads department communications director ZolileWalaza said on Tuesday the department had entered into a four-year payment schedule ending in 2013-14 with 12 companies because there was not enough money and "the roads were dilapidated and in need of urgent work". Mr Walaza would not comment whether the payment schedule agreement complied with the Public Finance Management Act. However, a Treasury source close to the matter said last week that all the contracts contravened the act. Mr Walaza said there was a difference between the amount that Sanyati claimed was completed and the amount contained in a report of technical experts, which included forensic agents from the Treasury, the Development Bank of Southern Africa and the national Department of Transport. He said the Sanyati project had not been completed, but the department would meet the firm on Thursday to "try to convince (them) to accept the settlement". 18 July 2012 Business Day Page 3 Sam Mkokeli

Mantashe takes gamble with SACP position

Critics see him as a politician without a grassroots base in the ANC, writes Sam Mkokeli GWEDE Mantashe appears to have taken a calculated risk by stepping down as chairman of the South African Communist Party (SACP).

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He has conceded that his African National Congress (ANC) post of secretary-general was too demanding for him to occupy another important position, as chairman of the SACP. The dual roles were an advantage and a disadvantage at the same time. The disadvantage is that his critics in the ANC and allied formations regularly said he was distracted. There was an argument that both jobs suffered. Also, those who despised the communists influence in the ruling party have often said he was pushing an SACP agenda when performing his ANC duties. The advantage of the two roles was that, as SACP chairman, he had a solid position apart from his role in the ANC. That, at least, sent a message to those who are campaigning to remove him as secretary-general of the ANC that he is no walkover because he has a political support base of his own. His critics in the unions have been intrigued by his stepping down from the SACP. They see him as a politician who does not have a grassroots base in the ANC, despite his holding a senior office at Luthuli House. Mr Mantashe emerged as ANC secretary-general at the party conference in Polokwane five years ago, having not held a significant leadership position in the party before. He grew politically in the unions, and became general secretary of the National Union of Mineworkers (NUM). As a result, there are always questions about his ANC support base. Those who support him say his decision to step down as SACP chairman suggests he is totally comfortable about his re-election chances at the ANC conference in Mangaung in December. Also, after stepping down from the chairmanship, he was elected to the SACPs central committee as an additional member. He got the most votes, suggesting he is still popular in the SACP. Mr Mantashe has been a staunch defender of Jacob Zuma s presidency. Going to Mangaung, he occupies the most strategic office in the ANC. It is his office that runs the process including overseeing the branch audit processes which determines who goes to Mangaung. It is felt he has the power to frustrate the branches that are likely to vote against his team, and even disqualify them. Because of his roots in the Eastern Cape the province of his birth Mr Mantashe appeals to that provinces branches. In him they see a representative, even though Mr Mantashe comes from the unions. That alone makes him an interesting player to have in any of Mangaungs teams. 61

For any of the teams, it will be easier to attract the Eastern Cape support with Mr Mantashe on their side. Even more so as he is the darling of NUM, the biggest ANCaligned union, and he is popular in the SACP. One of the slates (lists of potential leaders) has Mr Mantashe as a candidate for deputy president. That is a carrot to entice him and the Eastern Cape. But there are questions on Mr Zumas side. The communists want him to return as secretary-general of the ANC. But others in the same Zuma camp want him shifted to the ceremonial post of chairman. The deputy presidency punted by the team that is campaigning for Human Settlements Minister Tokyo Sexwale, or Anyone ButZuma, pre-empts exactly that. They want to show Mr Mantashe that they have bigger plans for him, and win him over from the Zuma camp by having him as their candidate for deputy president. Some in the ANC Youth League, which is a vocal supporter of the change campaign, see Mr Mantashe as their potential fifth column, who will go to Mangaung with Team Zuma and break away once there, or closer to the starting time of the conference. Mr Mantashe scoffs at the suggestion that he could be working with the youth league to remove Mr Zuma. "One thing the youth league doesnt understand is that I am nobodys fool," he says. In fact, he says he does not lose sleep over Mangaung politics and speculation. "When I went home recently, I stopped in Mangaung to see what the fuss is all about. I didnt see a scary thing."

23 July 2012 Business Day Page 2 Wyndham Hartley

Labour laws hearings expected to be lively

The Labour Relations Amendment Bill and the Basic Conditions of Employment Amendment Bill have reached Parliament Controversial changes to the labour laws will be the focus of attention this week when parliamentarians return from their winter recess to hold public hearings on the contentious legislation. The nature of the countrys labour laws have long been contested, with some saying they are a constraint to business and a brake on economic growth, while organised labour insists that workers still have insufficient protection.

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The Labour Relations Amendment Bill and the Basic Conditions of Employment Amendment Bill have reached Parliament after protracted negotiations at the National Economic Development and Labour Council. The hearings begin tomorrow and continue on Wednesday in Parliaments labour committee. There are sure to be vigorous submissions from both the business community and organised labour seeking to persuade Parliament to make changes to the bills. A Business Unity SA spokeswoman is on record as saying that the "overwhelming impression is that the amendments are punitive and still place unnecessary restrictions on legitimate business, and will result in job losses". The amendments will make changes in the management of temporary work. This is seen as a constraint on small businesses and construction firms. The clause which says a worker automatically becomes permanent after having worked for a company for longer than six months is one of the most contentious. Also tomorrow, public hearings will begin in the trade and industry committee on the Co-operatives Amendment Bill, while the Department of Rural Development and Land Reform will brief the responsible committee (land reform) on the Spatial Planning and Land Use Management Bill. Today the disciplinary hearing of suspended prosecutor Glynnis Breytenbach gets under way. Last week Ms Breytenbach failed to get her suspension overturned in the high court. She insists that she was suspended because she pursued charges against the then head of police crime intelligence, Gen Richard Mdluli, while the National Prosecuting Authority rejects this. President Jacob Zuma will have barely touched down after returning from China when he will be off on a presidential monitoring programme in Umzimkhulu, KwaZulu-Natal. The Presidency said that "this is President Zumas hands on, on-site monitoring of government performance in the delivery of services to the communities". In the past, the president has visited a number of areas in different provinces including Limpopo, North West, Eastern Cape and Gauteng. Meanwhile, the Democratic Alliance (DA) has a busy week with a press conference by Tim Harris and Sej Motau scheduled for today where they will release the DAs response to the labour bills which are before Parliament. Tomorrow, Helen Zille and the party leadership will host a roundtable with key editors and analysts to discuss the DAs new Plan for Growth and Jobs. This plan is to form the basis of a countrywide campaign for growth and jobs that will be officially launched at an event in Pretoria on Saturday. On Thursday, Ms Zille and Lindiwe Mazibuko will launch an innovative online mapping system that would allow citizens to locate DA public representatives (MPs, MPLs and councillors) in every ward and constituency. "We believe this will

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significantly advance political accountability and responsiveness in SA," the party said. Former president FW de Klerk will speak on Wednesday at a seminar to discuss the positions that emerged from the African National Congress policy conference. 23 July 2012 Business Day Page 4 Carol Paton

Labour, business enter next stage of negotiations on labour reforms

Cosatu could use political pressure in parliamentary hearings, writes Carol Paton With negotiations on all four of the proposed amendments to the labour law regime having been completed in the National Economic Development and Labour Council (Nedlac), it is possible to begin to take stock of what has happened so far. As in any negotiating process, it is tempting to ask who has "won". The answer is unequivocally that the winner is labour, although the Congress of South African Trade Unions (Cosatu) would probably disagree that the outcome is so clear cut. Of the four bills, the most contentious is the Labour Relations Amendment Bill, which deals with among other things the regulation of atypical workers employed through labour brokers. That it has not won a total ban on brokers during the Nedlac negotiations is Cosatus biggest grievance over new labour market regulation. But the main proposed change which will have the effect of converting any temporary employee to permanent, once they have been employed in the same position by labour broker for more than six months weighs heavily in its favour. While labour still rightly complains that this is meaningless without enforcement the Department of Labours enforcement capacity is weak the fact is that, in terms of law, labour has gained, while business has lost. At the conclusion of negotiations on the Labour Relations Amendment Bill, Cosatu was also not happy that new rules about strikes aimed at addressing the serious problem of strike violence had been included. The bill makes it compulsory for a ballot before a strike, and limits picket lines to include only genuine employees. The thinking behind it is that it is where strikes are not completely supported by the workforce that coercive violence occurs. The bill has already been approved by the Cabinet. But after a subsequent meeting between Cosatu and the African National Congress (ANC), Cosatu said a political agreement was reached to withdraw these points. If the agreement holds, the changes 64

will be made during the parliamentary process and will involve the ANCs members on the portfolio committee on labour (mostly former unionists) removing those sections of the bill. As a part of its fight against labour brokers, Cosatu has also secured a new clause which will probably find a home in the second bill the Employment Equity Amendment Bill which guarantees equal pay for equal work. While in one way this is not as big a deal as it looks as the Labour Court has already confirmed this it is important with regard to employees who work for a third party through brokers, which have tended to operate on the basis of undercutting wages of permanent workers. Again, this wont be good for business, which sees increased costs on the horizon and which has opposed this amendment. Business, which was represented by Business Unity SA in the Nedlac negotiations, has also been left aggrieved by plans to enforce existing labour law more tightly. So, amendments to both the Basic Conditions of Employment Act and the Employment Equity Act will make it possible for the Department of Labour to proceed directly to the labour court where there are transgressions, without needing to first issue a compliance order, as is the case at the moment. In the end, it was compliance issues that were the sticking point in Employment Equity Amendment Act, which like the Labour Relations Amendment Act was concluded in Nedlac without businesss consensus. The hot issue of racial demographics and how these should be measured which it had been expected would be the deal breaker was agreed to by all the parties. In the end, it seems that there was little change to the way that demographics are measured now, with regional companies using regional ones and national companies being allowed, with ministerial permission, to use national ones. The fourth bill is new the Public Employment Services Bill. It aims to connect work seekers with vacancies in the economy. Employers will need to report their vacancies to the Department of Labour. With all the bills now through Nedlac, the next round, which will include parliamentary hearings is poised to begin. Both business and labour will do their utmost to win what they did not win in the Nedlac phase. For labour, this will amount to political pressure on the ANC. For business, it will likely amount to a media campaign, complaining about inflexibility of the labour market. But the odds are that when the bills get to Parliament, organised labour will stand to gain even further.

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20 July 2012 Sowetan Sapa

Jackie Selebi freed from prison: Released on parole

Former police commissioner Jackie Selebi will be released from prison on Friday, Correctional Services Minister Sibusiso Ndebele announced in Pretoria. Mr Selebi will be going home today, Ndebele said. Explaining the decision to release Selebi, the Minister said: The department has limited capacity to provide for palliative care needed by some offenders. Palliative care meant he would be kept comfortable until his death, as there was no hope of him recovering. An 11-member medical parole advisory board met on June 20 and recommended the release of six offenders, including Selebi, who needed dialysis for kidney failure. Three of them had since died, said Ndebele. Selebi was the president of Interpol at the time of the investigation into claims that he received money from convicted drug trafficker and police informer Glenn Agliotti. He was convicted of corruption in July 2010, and handed a 15-year jail sentence.Selebi appealed against the corruption conviction in the Supreme Court of Appeal. His appeal was denied. In December 2011, he collapsed at home in Waterkloof, Pretoria, while watching the judgment on television. The appeal outcome meant he had to begin his 15-year jail sentence for corruption. It was decided he would stay in Pretoria Central prisons medical wing indefinitely. At the time he had not instructed his medical team to apply for medical parole. reports said Selebi had been trained to administer his own treatment. He suffers from diabetes and kidney disease, according to reports.

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20 July 2102 IOL Sapa

Winnie a danger to ANC Mantashe

ANC secretary general Gwede Mantashe has warned that Winnie MadikizelaMandela's support of expelled ANCYL leader Julius Malema is a danger to the party, the Sowetan reported on Friday. What she is doing is dangerous for the organisation, Mantashe was quoted as saying. She has taken a decision to go against the ANC national executive committee's (position) on Julius. Mantashe said Madikizela-Mandela's decision to support Malema was illdisciplined. Earlier this week, the Sowetan reported that Madikizela-Mandela, the former wife of Nelson Mandela, had told Malema in Nqgeleni in the Eastern Cape that his efforts to economically liberate the country had been noticed. She accompanied Malema, suspended ANCYL spokesman Floyd Shivambu, the league's suspended secretary general Sindiso Magaqa, and her daughter Zindzi, to the official opening of rooms at a child care centre, as part of celebrating Mandela's birthday on Wednesday. Madikizela-Mandela referred to Malema as her grandson. Thank you very much for making us see in our lifetime that it is possible to liberate our people economically and better their lives. Thank you very much for leading that (economic freedom) campaign, because it is as (a) result of your emphasis, the youth league's emphasis on the role we should be playing as freedom fighters, she reportedly said. 20 July 2012 Mail & Guardian Niren Tolsi

Darkness visible in JZ's kingdom by the sea

With the African National Congress beset by factionalism, is the province still 100% Jacob Zuma? Niren Tolsi investigates.

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"Wherever I go I carry a gun these days," a longtime ANC member from the eThekwini region in KwaZulu-Natal said, "not because I am afraid of thugs or political opposition, but because I am afraid of my own." That ANC comrades in the province are packing heat to defend themselves against their "own" indicates that the political temperature has reached boiling point: there have been three assassinations, allegedly political, in the province in just more than a year and a half, which debunks the notion that politics in the region is homogenous. Several provincial ANC members said the political landscape was just a few bullets and funerals away from "Mpumalangaisation", a reference to the province where political murders are nearly as commonplace as potholes. With the exception of Ugu district municipality chief whip Wandile Mkhize, who was murdered outside his home on the South Coast two weeks ago, the other two murders, of eThekwini ANC regional secretary Sbu Sibiya and regional executive committee member and city councillor Wiseman Mshibe, have taken place in Durban. The eThekwini region of the ANC, it is commonly held, is the tail that wags the KwaZulu-Natal dog. It is so strong numerically and financially that it dominates provincial politics and has pull when presidents are installed at national level as it did at the ANC's elective conference in Polokwane in 2007 when Jacob Zuma was elected party president. With an audited 103 branches in good standing at the time of the ANC's policy conference in Midrand last month the largest region in South Africa in terms of membership it would appear to be in a position to do so again at the elective conference in Mangaung in December. But the state of the party at a regional level suggests there are serious fractures stemming from the consolidation of grassroots support bases and access to the eThekwini municipality's resources and contracts. These are threatening to break the political edifice the hegemony that helped to install Zuma as ANC president. Fifteen sources, including municipal employees and ANC members from all its structures, spoke on condition of anonymity, either for fear of persecution or not wanting to be seen to be breaking ANC protocol. The importance of eThekwini According to many of them, competing factions have emerged since the death of former regional chairperson John Mchunu in 2010. It has meant that the focus of ANC members has shifted away from mobilisation and lobbying in the region and also more widely to the consolidation of personal or factional power in Durban. Mchunu was larger than life and dominated regional politics, although his reach extended much further to the rest of the country. A close Mchunu associate recalled the strongman's role in the movement that resuscitated Zuma's political life after he was sacked as deputy president of the country in 2005. 68

"John was a tireless mobiliser and strategist who came from the grassroots and held that mass support "I still remember sitting with John and he would have a piece of paper with a list of regions across the country and he would be going through them one by one, deciding which ones he would need to visit and lobby and which ones had already decided to back Zuma against [then-ANC president Thabo] Mbeki at Polokwane." According to the source, Mchunu ushered in a new dynamic in internal ANC politics: "The realisation at Polokwane was that power actually resides in regions, not the provinces. The media were saying that Mbeki had support from six of the nine provinces, but the secret and this was down to John's work was that Zuma had the regions." According to Mchunu's confidantes, as regional secretary and later as chairperson he became a Chicago-mob kind of character, establishing a system of economic and political patronage in local politics. Historically, the municipality has had a large operating budget, which, in this financial year, is nearly R31.5-billion. City contracts, ranging from the building of low-cost housing to waste collection, were awarded to influential business associates, who would channel money back to the ANC for its operations, or to small and medium-sized businesses connected to the ANC at ward level. These were an extension of the system of patronage, which created jobs to establish voting banks in the city for the ANC. According to shack-dweller movement Abahlali baseMjondolo, even the clearing of rubbish in informal settlements was politicised and the jobs went to card-carrying ANC members. Mchunu's political manoeuvring led to a conflation of city and party at regional level, and the mayor's position was reduced to a ceremonial one. No important decisions, particularly involving tenders, were taken without Mchunu's input, city and party sources said. "If you needed a decision taken, you just went to John or Bheki Cele [regional chairperson when Mchunu was secretary] and they were decisive," said a municipal insider, who intimated that this kind of political leadership was now missing in the city. Mchunu's largesse led to the rise of several businesspeople "favoured" by the city, including "Prince" Sifiso Zulu and the Mpisanes Shauwn and Sbu (a former metro policeman), a "bling" couple who are facing more than 100 counts of fraud and tax evasion.

Under Mchunu (and Cele's political figurehead), eThekwini's influence extended far into the province. According to the sources, the eThekwini region funded the conferences of other, poorer regions in KwaZulu-Natal. "The Bantustan of eThekwini effectively controlled the province," one former regional leader said wryly the region was in a much better financial position than the rest of the province, thus holding greater political sway. 69

Durban diminishing This appeared to have upset the provincial leadership, which tried to reassert it authority during the lead up to, and over the outcome at, March's regional conference, according to the sources. There have been widespread allegations of smear campaigns and the buying of votes in the battles for regional leadership. Health MEC Sibongiseni Dhlomo, who was finally elected as chairperson, is considered to be close to provincial Premier Zweli Mkhize. The rest of the top five appears to be a compromise between Mkhize supporters and factions from Mchunu's splintering political edifice, according to ANC sources. Of these, current regional treasurer Zandile Gumede and municipal housing committee chairperson Nigel Gumede have emerged as the most powerful, but neither appears to command the hegemonic grassroots support at branch level that Mchunu did. According to sources, factions are emerging in eThekwini that were born out of resentment at having been barred from the patronage because of Mchunu's manoeuvring. Cleansing the municipality of his legacy is well under way and allegations are being made that the damaging Manase report into corruption and maladministration in the municipality is being used selectively to pursue those connected with the deceased power broker. eThekwini's influence in the provincial executive committee has also been reduced since the provincial general conference in May. Of the 25 officials directly elected to the committee, eThekwini previously provided about 15. But after May's provincial conference, this was reduced to about eight, according to an ANC source. The structural problem Although current regional leaders such as eThekwini secretary Bheki Ntshangase are quick to say that the ANC is bigger than one person, Mchunu's omnipresence still appears to permeate the region's politics. With Cele busy as chairperson and an ANC national executive committee member, and with his day-to-day job as provincial safety and transport minister, Mchunu could consolidate the administrative and political role of the regional secretary to become the centre of power in eThekwini. In 2008, Mchunu took over from Cele as regional chairperson and Sibiya, who was assassinated in September last year, became the regional secretary. According to ANC sources, Sibiya had prepared himself to take over Mchunu's role as the power ruling the eThekwini region and municipality. But it did not happen. According to a source who worked closely with Mchunu, it was linked to Mchunu's political history: he was a former Inkatha Freedom Party warlord from Mpendle, who joined the ANC in the early 1990s. 70

"In the IFP there is no democracy, so when John had built that power there was no way he was going to let it go," said the source. Mchunu died of pneumonia in October 2010, but when the news broke of Sibiya's murder a year later, rumours circulated that it was linked to his attempts to assert the power of the regional secretary entrenched by his predecessor. Returning to the bigger picture, apparently Dhlomo has chaired only one meeting in the region since assuming his post and there are rumours that a motion of no confidence and the possibility of recalling him are being considered by factions opposed to his leadership. He is seen as Mkhize's point man in the region with no real grassroots support. 100% JZ at Mangaung Following its regional conference in March, eThekwini came out publicly in support of Zuma's bid for a second term, despite the party having banned proclamations until October. But on a regional level the party is in apparent disarray factions are competing to consolidate support and gain access to municipal coffers. The region is also bereft of a strategist in the Mchunu mould, according to party insiders. This begs the question: What about the homogenous support that the region, and province, provided to Zuma between 2005 and 2007, which catapulted him to the ANC presidency in Polokwane and to the first-citizen position in 2009? Insiders say that support for Zuma remains solid in the region, but the fractures caused by the internecine squabbles in the party could be exploited because of unhappiness over the expediency with which the president uses and discards allies. One source used an old Zulu proverb, Umbeki weakosi akabusi (the kingmaker will never be king), to encapsulate Zuma's approach to those who carried him to power. Some of those who assisted in the Zuma project feel they have not been properly rewarded and are unhappy, and others feel that the president has not backed them adequately. One source referred to the case of former police commissioner Cele, who was sacked by Zuma, as an example of the president's indifferent approach to his backers. Cele is popular in KwaZulu-Natal and sources said his popularity would play a significant role at Mangaung. According to one source, Zuma "acts like a king, not a president". He compared him with the Zulu monarch Shaka, who ensured that there were no male heirs to threaten his kingship. Likewise, Zuma surrounded himself with people and advisers who posed no threat. Whether these fault lines will be bridged and the dissatisfaction with Zuma staunched, only time will tell. As one source said: "It's five months to Mangaung and in politics that is a very long time."

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The provincial players behind the Zunami In the build-up to the ANC's 2007 elective conference, eThekwini regional secretary John Mchunu provided the muscle that mobilised the region and fed into the "Zunami" of support for Jacob Zuma in ANC and tripartite structures around the country. But there were several other key players and power bases that carried Zuma to the ANC presidency support that, particularly in the year following Zuma's sacking as deputy president, proved vital to his political survival. Senzo Mchunu: Not related to John Mchunu, but his political soul brother as a strategist and mobiliser. The then ANC KwaZulu-Natal secretary was tireless in mobilisation at provincial level and his building of a pro-Zuma consensus with other provinces on the road to Polokwane. But it is understood that the current MEC's relationship with the provincial chairperson and premier, Zweli Mkhize, has cooled recently. The KwaZulu-Natal cabal: It includes Mkhize, who was fingered in Richard Mdluli's intelligence report as being supportive of the bid to remove Zuma at Mangaung. He has since publicly denied this and reaffirmed his support for the president. But it is understood that their relationship has also cooled. Nathi Mthethwa: The current police minister ran the policy schools and discussions that took place in KwaZulu-Natal in the build-up to Polokwane. He was instrumental in hammering out a policy consensus that rejected documents such as "Through the Eye of the Needle", which was considered a proxy rejection of then-ANC president Thabo Mbeki. It has been suggested that the manner in which these discussions were held contributed to the narrow, sometimes intolerant, manner in which policy and politics in the province are often discussed. Other influential provincial politicians included Bheki Cele, then-eThekwini regional chairperson, Cosatu's Zet Luzipho and the South African Communist Party's Themba Mthembu. The "real" ANC Youth League: Although erstwhile league president Julius Malema has often trumpeted his role in installing Zuma as ANC president, the truth is the real slog was done by the leadership that preceded his. The hard-working young lions at that time included then-president Fikile Mbalula (now sports minister and considered the public point man in the bid to replace Zuma as ANC president), secretary general Sihle Zikalala (currently ANC provincial secretary) and then-league spokesperson Zizi Kodwa. The divided reds: Cosatu general secretary Zwelinzima Vavi and his SACP counterpart Blade Nzimande both had very real hopes for a greater role for the left in a potential Zuma government. Nzimande appears happy with his leadership, Vavi palpably less so.

Buying votes is big business 72

Dispensing contracts and patronage that flow from the municipality's coffers and entrench ward support and voting banks in the city come election time have, according to one city source, "seen the emergence of many small businessmen". It has also given rise to mega-rich businesspeople unafraid to flaunt their luxury cars and shoes that cost more than the monthly take-home salary of a municipal worker. Sbu and Shauwn Mpisane: Shauwn is facing more than 100 charges of fraud and tax evasion involving more than R5-million. Her company, Zikhulise Cleaning, Maintenance and Transport, has been the beneficiary of several multimillion-rand contracts with the city. The company saw an increase in sales from R34-million in 2007 to R120-million a year later. A March 2011 forensic report, compiled by auditors Ngubane & Company, recommended that an investigation be launched into the awarding of tenders to the company and 34 other contractors. The report investigated R3.5-billion worth of contracts awarded by the municipality over 10 years. The Mpisanes are unabashed fans of luxury brands such as Rolls Royce, Lamborghini and Christian Louboutin shoes. Jay Singh: It was revealed this week that the controversial businessperson, who is considered to have run the city's bus service into the ground following its privatisation before selling it back to the city at a healthy mark-up is still benefiting from city contracts. Gralio Precast: Criticised by opposition party members for shoddy work on RDP homes, it recently won a R22-million tender to lay access roads and provide bulk water for the city's latest housing development, Cornubia. The company was also awarded a R72-million tender to provide engineering services and top structures for 486 units in Cornubia. Earlier this year, a Jay Singh-linked construction company was criticised in the Manase report for alleged irregular spending on two other housing projects. Singh was convicted of bribing a city official to turn a blind eye to substandard work. The ANC responds ANC provincial secretary Sihle Zikalala, responding to claims that the current eThekwini regional executive committee was a result of the provincial leadership's attempt to reassert its authority over the province, said: "The province has no control over the eThekwini region and its leadership is not a clone of the provincial leadership."

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Zikalala said the eThekwini region was, however, "stabilising" after months of disharmony and that "factionalism was being dealt with within the party ... Uniting the province is an ongoing process." The recent political murders in the province were cause for "serious concern" and although he did not want to pre-empt investigations or speculate about what, or who, was behind the murders, he believed that political education was "very important" for the ANC to maintain harmony. 20 July 2012 Mail & Guardian Glynnis Underhill

NPA in contempt, says Helen Zille

A full transcript of the notorius "spy tapes" is still at large, in defiance of a court order, writes Glynnis Underhill. The spy tapes that apparently formed the basis of the decision to withdraw corruption charges against Jacob Zuma before he became president are proving as elusive as ever. Democratic Alliance leader Helen Zille claimed this week the documents received from the National Prosecuting Authority by her party's lawyers bore no relation to the evidence that might have led to the NPA withdrawing the charges against Zuma. "They also, crucially, excluded the transcripts of the infamous spy tapes, which the NPA had claimed were the basis of the decision to discontinue the prosecution," Zille said. A Supreme Court of Appeal ordered that the NPA supply DA lawyers with the relevant documents of the records of decision by April 10. The judgment was handed down after the opposition party went to court to establish whether the decision to withdraw charges against Zuma was rational and legally motivated. Zille said the NPA had "blatantly defied" the order and was in contempt of court. "Is the failure to produce the record an indication that there is in fact no record to produce?" she asked in a statement released to the media. It is indeed a chapter of South African history that is veiled in secrecy. In April 2009, acting NPA head Moketedi Mpshe decided to drop corruption and fraud charges against Zuma, which saved his political career and paved the way for him to become South Africa's president that year. Intolerable abuse The tapes were apparently crucial to this decision and contained intercepted telephone conversations between former Scorpions boss Leonard McCarthy and former NPA boss Bulelani Ngcuka. Mpshe said at the time that the secret connivance between McCarthy and Ngcuka in relation to the Zuma case amounted to an "intolerable abuse".

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Portions of the transcripts of the intercepted phone calls were declassified and released in April 2009. The DA court case threw open the possibility that fuller transcripts of the tape recordings might now be made public. The former head of the Special Investigating Unit, Willie Hofmeyr, who is still head of the Asset Forfeiture Unit, shed some light on the tapes after his former deputy, Faiek Davids, went to the Commission of Conciliation, Mediation and Arbitration Court in Johannesburg to sue him for unfair dismissal. While Hofmeyr fought to prevent classified information contained in the Zuma tapes from being made public, the press were allowed in to hear the case. Davids was dismissed by Hofmeyr on the basis of statements he allegedly made to McCarthy in the intercepted telephone calls Hofmeyr had heard. The Times reported it was revealed in court that Hofmeyr had been summoned to hear the tapes by Zuma's lawyer, Michael Hulley, in February 2009. Hulley never disclosed to him how he had got hold of the tapes and did not provide him with copies. The National Intelligence Agency eventually gave him copies of the tapes, but not the one which held the conversation between McCarthy and Davids. Dodged, ducked and dived During the proceedings, Hofmeyr revealed that the NPA had not been party to a court application for permission for the conversations to be bugged. The DA's case has now forced the NPA's hand in revealing more about how the decision was made to withdraw the corruption charges against Zuma. At first, the NPA asked for more time to get the record of decision together. Since then, said Zille, the state attorney's office representing the NPA had "dodged, ducked and dived" and had still not produced the reduced record of decision, as described in the judgment. This record had included all documents, tape recordings, memorandums and other materials. "The Supreme Court of Appeal only excluded the confidential representations that President Zuma made to the NPA at the time the charges were dropped and any confidential responses thereto," said Zille. In the belief that the NPA had been determined to delay executing the court order, the DA this week instructed its lawyers to prepare and lodge an application with the North Gauteng High Court, forcing it to comply with the order and produce the record of decision. NPA spokesperson Mthunzi Mhaga said it was "committed" to providing the DA with the reduced record, as ordered by the Supreme Court of Appeal, and would provide it soon. "The process is taking longer than we anticipated, hence the delay in supplying them with all the relevant information," Mhaga told the Mail & Guardian. Communication breakdown

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"The process includes transcribing the records, verification and submitting them to the president's legal team, due to the representations being subject to the confidentiality rule." Zille said the DA had informed the NPA in a letter on June 29 that it would take all necessary action to ensure compliance with the Supreme Court of Appeal order and had given it another 18 days' grace. But the DA had not yet received a reply from the NPA, she said. Mhaga said the NPA had not received this letter from the DA due to "a communication breakdown". "We will deal with whatever court action they institute, as and when we receive notice to that effect," he said. Asked where the tapes were held, Mhaga did not elaborate. "The records are available and some have been provided to the DA, but it insisted on not having piecemeal information," Mhaga said.

23 July 2012 Business Day Page 3 Edward West

ANC to help probes of political murders

The African National Congress and its alliance partners plan to establish an intervention team to assist in the investigation into the spate of political murders in KwaZulu-Natal The African National Congress (ANC) and its alliance partners plan to establish an intervention team to aid law enforcement agencies in their investigation into the spate of political murders in the province, ANC KwaZulu-Natal secretary Sihle Zikalala said yesterday. He spoke at the conclusion of a three-day summit between the ANC and its alliance partners, the Congress of South African Trade Unions and the South African Communist Party. The ANC in KwaZulu-Natal has enjoyed strong growth in new members, aided by relatively stable relations with its alliance partners. The alliance meeting follows recent deaths attributed to political assassination that Mr Zikalala described as a problem, "although the ANC was unified in the province". The task team, he emphasised, would investigate all politically-related killings, including murders of leaders of other parties (including the Inkatha Freedom Party) in the province. 76

Zweli Mkhize, ANC provincial chairman, said the aim should be to eradicate the "reservoir of contract killers" in the province. As a result, taxi-related murders would also be investigated. "There would be no peace in the province until the industry of contract killers and their paymasters are uprooted." The ANC chief whip in Ugu district, Wandile Mkhize, was killed in a drive-by shooting on July 3. Last week another leader of the National Freedom Party (NFP), Mthunzi Gwala, was killed in Umlazi, near Durban, bringing to 21 the number of leaders in the NFP who have been killed since the beginning of last year. In July last year, eThekwini regional secretary SBuSibiya was killed. The ANC and NFP have a coalition agreement to share power in 19 municipalities in the province. 23 July 2012 News 24 Sapa

Zuma: No action on Motshekga yet

Cape Town - The government will not take hasty action against Basic Education Minister Angie Motshekga over the Limpopo textbook crisis, President Jacob Zuma said on Monday. Speaking on 567 CapeTalk radio, he said the government had taken action to resolve the non-delivery of textbooks, but would not dismiss anyone until a task team investigation was completed. "Kick the minister out, it doesn't work that way... otherwise we wouldn't be running a government," Zuma said. "You can't, without verifying the facts... just fire people. "We need to act fairly. You don't know exactly who is responsible. You can't say the minister who is sitting in Pretoria in the office is responsible... she has to find who the individual responsible is. "Even if the buck stops at her, she has to find out who exactly is responsible for that [crisis].... The president must weigh those facts [and then decide] was it her or not her?" Cabinet took action - Zuma Zuma said he could not simply jump at every damning report in the media.

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"I'm sure if there was a report and I fired people everyday... [people would say] I don't follow processes of the law." He said the Cabinet had taken action in Limpopo long before the textbook debacle, by putting the education department under administration. This took place last year after the Limpopo government used up its overdraft of R7m and tried to increase it to R1.7bn to pay salaries in November. Zuma told the radio station that education continued to be the government's top priority, and received the largest budget. "I don't think it's the correct statement to say that we are not making it a priority... We are also not dealing with the problem of today, we are solving the problem [of apartheid] that has affected us." 26 July 2012 The New Age SandileHlangani

We want to restore justice: Madonsela

Speaking at The New Age business briefing on Thursday in Johannesburg Adv Thuli Madonsela said one of the fundamental responsibilities for her office is to enforce public accountability and to be accessible to the public. We are required by the constitution to be accessible to the members of the public and to make sure those government officials are accountable. Most importantly we want restore justice in each case that we deal with, said Madonsela. Madonsela cited few cases that her office has dealt with successfully in making sure that maladministration and corruption are combated. We helped a young man who has been struggling to get an ID book for some time, and we discovered that there was corruption on the system. As we speak the young man has got the ID and we are in the process of making sure that he gets his matric results from the education department, she said. 26 July 2012 The New Age Abram Mashego

NPA overstepped mark

The defence team in the disciplinary hearing against suspended National Prosecuting Authority (NPA) senior prosecutor GlynnisBreytenbach on Wednesday accused a state witness of making misleading and reckless statements during cross-examination. 78

Breytenbach defence advocate Wim Trengove accused NPA internal investigations senior manager Hercules Wasserman of overstepping their mandate by invading Breytenbachs privacy to create more charges and making incriminating statements. Wasserman told Breytenbach during the hearing on Tuesday that certain files that were crucial to the NPA investigation were deleted. Your mandate was to investigate the complaint by Mendelow (Jacobs) but you abused the opportunity to rustle up more charges, Trengove told Wasserman, adding that his comments that certain files were deleted were highly incriminating. Do you know which files were deleted? asked Trengove, adding that the 508 files which were deleted were personal information belonging to the suspended regional prosecutor. Trengove told the hearing that although it was agreed that the investigation was focused on the complaints made by Mendelow Jacobs, the attorneys representing Imperial Crown Trading, the investigation went through advocate Breytenbachs personal affairs to include more charges. The defence accused the investigating team of failing to focus on its mandated task by going through Breytenbachs vehicle finance application, where they established that she was letting out her flat and stabling horses. For the six months all you investigated was the email correspondence between Breytenbach and Michael Hellens, said Trengove, adding that they did nothing to prove the legitimacy of the Mendelow Jacobs complaint. Hellens is an advocate representing Kumba/Sishen in a criminal case involving a battle over mineral rights. The NPA is accusing its senior prosecutor of colluding with Kumbas legal counsel and allowing them to draft affidavits on behalf of Hawks investigators. Breytenbach was suspended on April 30 by the acting National Director of Public Prosecutions, Nongcobo Jiba, because of various charges including bringing the prosecuting authority into disrepute.

26 July 2012 The New Age Liezelle Kumalo

Boeremag would get rid of blacks

More and more water was consumed by Judge Eben Jordaan yesterday as he read his lengthy judgement against the accused in the Boeremag trial in the North Gauteng High Court. Judgement yesterday concerned accused one, Mike du Toit, the alleged brains behind the organisation of the Boeremag and the plans for a coup. 79

From witness accounts read yesterday, Du Toit was always in possession of Document 12 which set out the plans and funding for the coup. The document outlined: What would serve as a trigger to create chaos in the country, President Nelson Mandela would have to be murdered because he was still seen as a peace figure of the country. Various witness testimonies confirmed that Du Toit had strategically placed people within the military, police service and Eskom to create the necessary conditions for chaos. The plan was to establish a white-led country that had no black people in it. Coloured and Indian people who shared the same ideals as the group would be used during the first part of the plan. Once the group had power, they would be shot. The SABC, Radio Pretoria and Jacaranda FM would be used to broadcast the message that white people had taken over the country. Once the group had taken possession of strategic military areas and cut off the water supply to Gauteng, they would have got rid of black people. The black population would have to be driven north where they would have been provided with food along the way, it said. Witnesses said the main goal was to get rid of black people. The court accepted the evidence of several state witnesses as true and trustworthy, as the witnesses agreed on many instances. A witness said the plan to take over military vehicles using private weapons was not feasible and he began suspecting that something was wrong. Court proceedings continue today with chapter two.

26 July 2012 Business Day Page 3 Natasha Marrian

Attack on Vavi venomous and malicious

THE Limpopo secretary of the National Union of Metalworkers of SA (Numsa) rose to the defence of Zwelinzima Vavi, the general secretary of the Congress of South African Trade Unions (Cosatu) yesterday, following criticism by the South African Democratic Teachers Union (Sadtu) leadership in Limpopo and Mpumalanga.

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Sadtu Limpopo secretary Jacob Raphasha complained this week that the union had been unfairly attacked by Mr Vavi regarding the provinces textbook debacle. Mr Raphasha accused Mr Vavi of having "grown bigger than his boots and developed a dangerous personality cult". Numsa in Limpopo defended Mr Vavi, and its secretary Jerry Morulane called comments by Mr Raphasha "venomous and malicious personal attacks". Tension is mounting at Cosatu ahead of its national congress in September and Mr Vavi is at the centre of disagreements. Cosatu is likely to take key decisions on policies and also elect new leadership during its congress. No formal declarations have yet been made over leadership preferences. However, divisions in Cosatu, which have been simmering, manifested themselves publicly this week. Sadtu in Mpumalanga criticised Mr Vavis handling of the eligibility of a candidate who was standing for the position of treasurer at Cosatus provincial electoral conference last week. Mpumalanga Sadtu secretary Walter Hlaise said Mr Vavis handling of the candidacy of former Mpumalanga treasurer LindiTloubatla raised questions over his "motives and intent". Mr Vavi evidently ruled Ms Tloubatla out for re-election after it was discovered she was not a shop steward or an office bearer in her own affiliate, the National Education, Health and Allied Workers Union. This is a constitutional prerequisite for all potential candidates in the federation. Mr Hlaise said Mr Vavi had behaved "contrary to the norm", had complicated the issue and had overruled the constitution of the affiliates and said that Mr Vavi had "imposed his own interpretation". Numsa in Mpumalanga defended Mr Vavi, saying Sadtus statement was "littered with poisonous undertones". Numsas regional secretary Eric Linda said the move by Sadtu appeared to be a "strategy" in the build-up to the national congress. Sadtu in Limpopo also hit out at Mr Vavi over his criticism of the union for its failure to act on the textbooks saga. Cosatus national office described Sadtu s statement as "unfortunate", urging affiliates to use internal channels to address concerns.

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24 July 2012 The Times Graeme Hosken

Judge: NPA can't hide

The legal team of corruption-busting advocate Glynnis Breytenbach said her disciplinary hearing is being stalled to protect former spy boss Richard Mdluli from criminal prosecution. Almost four months after her suspension as the chief prosecutor of the Specialised Commercial Crimes Court, Breytenbach's legal team yesterday argued that the National Prosecuting Authority's delays in convening her disciplinary hearing were attributable to the "unlawful purpose of protecting" Mdluli. Hours after Pretoria High Court judge Ronel Tolmay ordered that the five-day hearing be opened to the media, the NPA asked for a further postponement on the grounds that it wanted to study Tolmay's judgment, with a view to appealing it. But Breytenbach's lawyer, Wim Trengove SC, said the hearing should not be held "hostage". "This is why the court granted the order. "The public interest is best served by the proceedings being open and conducted timeously. "Attempts to delay the matter are highly unjustified. "The NPA's attempts to discipline Breytenbach behind closed doors must be resisted. The one who is being prejudiced is my client and not the NPA. They cannot say how delaying this process will harm them." The two parties eventually agreed that the proceedings continue while the NPA studied Judge Tolmay's order. Breytenbach was suspended in April and faces a string of internal disciplinary charges, including gross misconduct. Trengove believes the 15 charges are trumped-up. They stem from Breytenbach's allegedly unethical handling of a mining rights dispute between Kumba Iron Ore and Imperial Crown Trading. Other charges include improper conduct, gross negligence, conflict of interest, gross insubordination, contravening the NPA Act, bringing the NPA into disrepute and gross dereliction of duties.

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But Breytenbach and her legal team believe her suspension is an attempt by her bosses to stop her prosecuting Mdluli. Mdluli is accused of abusing a secret police slush fund and an inquest is being held into the murder of the husband of a former lover of Mdluli. The NPA has denied Breytenbach's allegations. Judge Tolmay granted an order that the hearing be open to the public in response to an urgent application on Friday by Avusa Media, Media24 and M-Net. He said that the NPA was not an ordinary employer and had strong constitutional obligations. Judge Tolmay said public interest far outweighed the NPA's right to privacy. "By allowing media access, the credibility of the NPA can be restored or else there could be a constitutional crisis." She added, however, that her ruling did not mean that the media would be allowed access to every disciplinary inquiry. The NPA's lead prosecutor, William Mokhari, fought to have the proceedings delayed. "It is an elaborate order with far-reaching consequences. This is an elaborate inquiry with many witnesses. We have not had time to look at the judge's reasons. We need to make an informed decision about the next step. We might appeal it." Breytenbach lost her Johannesburg Labour Court application to have her suspension overturned on Wednesday last week. Her application was dismissed by Judge Hamilton Cele on a technicality.

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