Global South African News Wrap 21 September 2012

Cosatu sets sights on the Reserve Bank Vavi accused of attacking ANC alliance Zuma authorises army deployment in Marikana Cosatu divisions look set to persist Poverty bomb has exploded: Vavi Leadership stability is Cosatus call Ramaphosa apologises for buffalo bid Surprise as Jim backs Zuma for second term ANC advised to avoid divisions as Mangaung nears Mantashe envisages a Zuma moment for South Africa Trio crimes fail to show fall in stats Cosatu leads by example with daycare Cosatu puts off minimum wage decisions ANC not milking Eskom via investment arm Contrast in provinces healthcare progress Africa must fly, says Dlamini-Zuma I am with the people: Zuma Nato scales back as Kabul bomb kills eight from SA Strike ends as Lonmin workers get 22% hike Vavi under fire for ANC crisis report ANC will pay price for division at polls Vavi pins hope on Zuma claiming his Lula moment

21 September 2012 Mail and Guardian Charles Molele, Matuma Letsoalo Cosatu sets sights on the Reserve Bank Addressing delegates on Thursday, Congress of South African Trade Unions general secretary Zwelinzima Vavi said the federation would lodge a section 77 notice with the National Economic Development and Labour Council to allow Cosatu's 2.2-million members to go on strike to force the government to change the current economic policies. Cosatu said the working class's patience was running out, and it adopted several resolutions that it will take to the ANC conference in Mangaung in December. They included a call for state intervention in strategic sectors of the economy, including nationalisation and state ownership, and an overhaul of macroeconomic policy. The congress also called for a radical economic shift that would include the realignment of the treasury and a new mandate for the Reserve Bank, which it said should be nationalised. It said aspects of the new growth path would have to be realigned with the proposed new macroeconomic framework, and all state-owned enterprises and state development finance institutions had to be given a new mandate. It said urgent steps should be taken to reverse the current investment freeze and the export of South African capital R1.2-trillion was lying idle, which employers were refusing to invest. Collective bargaining There was a call to launch a national bargaining campaign, and for an organising conference to be convened before the end of 2012. It also said the apartheid wage structure should be transformed and a new national wage policy should be crafted. It proposed a national minimum wage and mandatory, centralised collective bargaining. Irvin Jim, general secretary of National Union of Metalworkers of South Africa, said his union welcomed the ANC Youth League's drive for nationalisation and said it would go a long way towards helping the country to redistribute wealth and put a stop to the plundering of the mining industry by oligarchs. "We must take ownership and control of these minerals and redistribute wealth and champion industrialisation. That includes imposing tax on those minerals," Jim said.

"We also support the youth league's call for expropriation of land without compensation and the removal of the property clauses." ANC secretary general Gwede Mantashe said the ANC policy conference in June discussed the issue of nationalisation and a decision would be taken in Mangaung. "We are inviting Cosatu to make their input in order to help us to understand what strategic minerals we are talking about," Mantashe told delegates. The final day of the congress turned into a mini-Mangaung, with union delegates supporting Jacob Zuma's re-election as ANC president and those opposed to it competing to make their voices heard. Vavi had to intervene and remind delegates of the house rules that prohibited showing any signs of support that would pre-empt the debate on the leadership of the ANC. "We will not show signs," Vavi shouted. But Zuma's supporters responded by singing a popular song about Zuma's detractors getting cold feet, as well as the the congress favourite, Thina Sihamba noZuma (We are going with Zuma).

21 September 2012 Mail and Guardian Charles Molele, Matuma Letsoalo Vavi accused of attacking ANC alliance A week ago, Vavi's political career looked uncertain as his detractors ran a fierce campaign to topple him, but he came out of this week's Cosatu congress emboldened. It will not be plain sailing, however, a fact made clear by the fierce criticism he was subjected to for his brutally honest political report delivered on Tuesday, particularly from the ANC and the South African Communist Party (SACP). Although Vavi will remain in office, it looks as though his critics want to rein him in, raising concern that he may be a lame-duck general secretary. The plan to oust Vavi, mostly sponsored by President Jacob Zuma's supporters in Cosatu, crumbled after Vavi was re-elected. Cosatu's other leaders in the top five: president S'dumo Dlamini, first deputy president Tyotyo James, second deputy president Zingiswa Losi, deputy general secretary Bheki Ntshalintshali and treasurer Freda Oosthuizen, were also re-elected.

In an interview with the Mail & Guardian, Vavi hit back, saying he would not back down in the face of a crisis. "We must not be in denial," he said. "The ANC says unemployment is a challenge. We say it is a crisis. The figures are there. We are using statistics from Stats SA." Alliance structures Vavi's detractors have accused him of being individualistic, obsessed with the media and of attacking ANC and government leaders in public instead of addressing his concerns internally and within alliance structures. Responding to his report, Vavi's critics, including ANC secretary general Gwede Mantashe, SACP deputy general secretary Solly Mapaila and Police and Prison Civil Rights Union president Zamela Cebekhulu, castigated him for acting as if he was not part of the alliance. "The political report seeks to locate the federation outside of the movement that is in 'crisis'," Mantashe told the congress. "It focuses on weaknesses. There are attempts out there to delegitimise the ruling party. The media, the judiciary, the opposition are the same. Once a section of the alliance begins to join them, then we must be worried. To find Cosatu agreeing with these forces and come back saying 'we are in an alliance with you' is a problem. "We must not try to delegitimise the state by distorting the facts. You can't have a Cosatu that talks like a bourgeoisie media." Said Mapaila: "The characterisation of Cosatu as outside the alliance falsifies the relationship between the party and Cosatu," he said. "The party joined forces with Cosatu on several marches in Durban and Johannesburg, but this is not reflected in the report. It creates an impression that the party is not active." National Union of Mineworkers general secretary Frans Baleni joined in the attacks. "We have seen barbaric attacks using media, the abuse of power, [people] talking left but acting right and people choosing to embark on character assassinations when it suits them," said Baleni. "We should not treat our leaders as if they were taken from the shebeens when it was us who elected them. We need to unite the federation, but also the alliance. We have not run out of enemies." Unemployment and inequality But Vavi remained firm in his criticism, telling the M&G: "The auditor general says only 8% of national departments received clean audits, and 5% of local government received clean audits. The ANC secretary general [Mantashe] wants us to believe that this is an improvement. "Sorry, but from where we are sitting, this is a crisis. We are sitting on a crisis of poverty, unemployment and inequality." Vavi said he was humbled by his re-election and called on those who opposed him to drop "the baggage" of the past and move on.

South African Democratic Teachers' Union president Thobile Ntola dismissed the allegations that Vavi was conducting himself outside the collective. "It depends where one stands," said Ntola. "His view is [that he is] ensuring that the alliance is united. It was clear that he would be re-elected by the workers. This is the parliament of workers." National Union of Metalworkers of South Africa president Cedric Gina defended Vavi, describing him as an independent thinker. "The mistake many make in this country is that they think that if you want unity, you must not criticise," said Gina. "In the past three years, Numsa has been known to be critical of President Zuma's administration and some of its decisions. People started saying we were anti-JZ, we were anti-alliance, antiunity. That is wrong." 20 September 2012 Mail and Guardian Sapa Zuma authorises army deployment in Marikana In a statement on Thursday, the presidency said the soldiers would support the police "in the prevention and combating of crime as well as the maintenance of law and order in the Marikana area, North West province and other areas around the country where needed". Asked which "other areas" the presidency had in mind, spokesperson Mac Maharaj said this could be any place where soldiers would be needed. Cape Town, where the military was deployed last year, was one of the areas under consideration, he said. "It's based on the pattern of crime incidents in the festive season period," Maharaj said. The deployment to Marikana was needed because "there had been some problems too" in the area. "The police have had to attend to it. Wherever they need to have support [from SANDF], that support will remain available," Maharaj said. He said while the military would support police, "the primary function would remain in the hands of the police". The deployment would last from September 14 until January 31 next year.

The Star newspaper on Thursday reported that a backdated notice had been issued by the ministry of defence that would legalise the deployment of soldiers to Marikana. The notice was published in the Government Gazette on Tuesday and signed by Defence Minister Nosiviwe Mapisa-Nqakula. The date on the signature was September 14. The paper cited the Defence Act as stating that a notice of a troop deployment had to be made in the Gazette within 24 hours. Sapa

21 September 2012 Mail and Guardian Rapule Tabane Youth will rebel if Juju is arrested Allies of Malema who were suspended from the ANC Youth League leadership earlier this year as well as current members of the league's national executive committee have warned that the country's youth will rebel and unleash mass action if the expelled former youth league president is arrested. This comes in a week when Malema spoke openly about alleged threats to kill or arrest him. Malema's closest ally, Floyd Shivambu, the youth league's suspended former spokesperson, told the Mail & Guardian this week that Malema, suspended youth league secretary general Sindiso Magaqa and himself were no longer sleeping at their homes because they feared being attacked. Shivambu said state security agency sources had told them the plan to deal with them had been hatched in the upper echelons of government and that the options were narrowed down to "arrest or kill". But he said Malema did not fear arrest because he knew he had no case to answer. "We're not worried about arrest; we'll not run away," Shivambu said. Malema is under investigation for various contracts that a company linked to him, On-Point Engineering, entered into with the Limpopo government. The South African Revenue Service is also probing his tax affairs. Unconfirmed rumours The police had threatened to arrest him for incitement after he addressed striking mineworkers at Marikana in North West and called for weekly strikes in the mining sector. This week again there were unconfirmed rumours that the Hawks were about to arrest him. Malema retorted that he was used to stories about his arrest being run every time he was in the public arena. Government spokesperson Mac Maharaj said the state was not interested in responding to Malema's accusations.

Two members of the youth league's national executive committee, speaking anonymously to the M&G this week, said the youth would unleash anarchy if state resources were "abused" to arrest Malema. "On what basis would he be arrested? What has he done wrong with tenders in Limpopo? When there are limitations in society you can't stop people from addressing any section of society," said one of the members. "Julius has lots of support from youth who don't rely on patronage from the ANC. They are not MECs, mayor or ministers. The youth are angry and they will go out in numbers. Young people will lead the mass action and they have lots of energy. And young people will not be peaceful "We know that the security cluster has allocated five people to follow him wherever he goes and this surveillance has not even been approved by a judge," the member said. Public space Another youth league executive committee member said the youth would "support Julius because he is now playing in the public space, not just the ANC. He is saying the masses will liberate this country and having led the economic freedom march to Pretoria he knows we will be there with him all the way." Shivambu denied that the Friends of the Youth League were preparing a campaign to play the victim card and to portray Malema as a martyr, in the way that President Jacob Zuma's supporters did when he faced investigation in 2005 and 2006. "We are not desperate for political attention. We happen to understand what people on the ground are saying," Shivambu said. "Wherever we have addressed meetings it's been because people have called on us to do so. We can't even make it to all the places where people need us." Shivambu vowed that the mass mobilisation campaign would continue despite the supposed threats: "We will continue with our programme; it will not stop. The aim of all these threats is to silence us because we are the only ones who are relevant, who people can identify with." Shivambu is a leader of the Friends of the Youth League, whose membership and funding is a mystery, although it appears to be a cover for current youth league members to support Malema without fear of disciplinary action from the ANC. Malema appears to believe that his actions enjoy the support of many in the ANC leadership who are opposed to Zuma's presidency. He has insisted on many occasions that Zuma will be removed as president at the ANC's year-end Mangaung elective conference and that his membership will be restored.

The president of the Congress of the People Youth Movement, Ncaba Bhanga, promised that the organisation would defend Malema if he was arrested. "This is not about Malema," said Bhanga. "It is about the ruling party using state resources to suppress dissenting views [in the build-up to] its Mangaung conference. Malema has done nothing wrong."

21 September 2012 Business Report Terry Bell Cosatu divisions look set to persist Cosatu spokesman Patrick Craven was amazed at the media interest shown in the 11th national congress of the federation. Shortly before the congress opened its doors, 347 media accreditations had been processed, with additional enquiries still being dealt with. What was obvious was that the widespread mini Mangaung hype generated by the media itself this column excepted was generally believed: metaphoric blood on the floor among the 3 000 delegates was expected. Even if it did not come to pass, President Jacob Zuma, as keynote speaker, might well deliver some comment, especially about the mayhem at Marikana, that would warrant such media attention. But there was no day of the long knives on Monday as the entire sitting executive was elected unopposed, with only the police and prisons union, Popcru, raising an un-seconded proposal that additional nominations from the floor be considered. And Zumas predictable input about the need for unity was hardly headline material and the media battalions retreated, leaving behind a largely local journalistic core trying to assess the width and depth of the political and ideological cracks beneath the often confusing rhetoric. However, Zuma did make an apparently unreported, off-the-cuff reference to the Bible that summed up the ideological root of the broad church of the governing alliance: he appealed to congress to learn from Christians who, at church every Sunday, were reminded of what they should do and what their roles were. In the process he noted, without elaboration, that Christians were reminded of John chapter 14, verse 6 just as alliance members should be reminded of the words of ANC heroes such as former president, Chief Albert Luthuli.

The reference to the Book of John is the Biblical verse frequently paraphrased politically as: We are the truth, the life and the way. No-one comes to the revolution but by us. Perhaps Zuma did not mean it as the ANC-led alliance being the only true way forward. But the comment reinforced the analysis of academic Somadoda Fikeni who, in rather controversial circumstances, addressed the congress as a substitute speaker. Fikeni noted that what has generally not been appreciated is the way the ANC alliance has managed to deal with contradictions, taking matters to the brink and then pulling back. This, he said, was the genius of the alliance. He could have added: It is also the major fault. Because, as Fikeni agrees, the manner in which the pull-backs are achieved, is simply by painting a veneer of unity at all costs over often bitter divisions in what is seen as the only true way forward. Radical rhetoric and acronymladen policy proposals RDP (Reconstruction and Development Programme), Gear (Growth, Employment and Redistribution strategy), Asgisa (Accelerated and Shared Growth Initiative for SA) and NGP (New Growth Path) also create verbal screens that disguise the fact that nothing, basically, has changed. The same approach, accompanied by often woolly rhetoric, was clearly in evidence at this Cosatu congress. However, the fact that the congress took place at what is arguably a critical and possibly defining moment in the countrys history, was also acknowledged, and this raised many concerns about the future. Acknowledgement came, officially, in the secretariat political report presented by general secretary Zwelinzima Vavi. This was criticised by the ANC, members of the SACP and various delegates for being too negative about the alliance. Some of the same delegates who had earlier opposed allowing Fikeni a critic of government policy who is not a trade unionist to address the congress, questioned whether the report had been written by Cosatu members or by the academic. The debate ended with Vavi pointing out that all affiliates, as well as the ANC and the SACP, had been sent the report two months earlier and been asked to comment on it. The few comments received were taken into account and amendments made. What annoyed the critics on the congress floor was the stress in the report on trade union independence and an admission that the alliance faced a crisis. They failed to note that, in what is now standard procedure, the critical aspects of the report were balanced out by professions of unconditional

loyalty such as: The political task of the working class in this juncture is to defend the [ANC] leadership collective. So, amid warnings about the danger of paralysis at this crucial period, the same tactics were applied with little, if any, consideration of the likely consequences these may have in coming months and years. These could be severe, but the ANC-led alliance is still seen by all factions as the only vehicle to the future. Behind the scenes the struggles will continue and the precarious balance of multiple contradictions along with the potential for further paralysis may be broken, perhaps in an authoritarian manner or via the development of a radically democratic alternative, referred to, especially by Vavi, as a Lula Moment. A broad hint of this alternative, along with implied criticism of the present situation, is contained on the second page of each of the 10 books of reports and resolutions produced for the congress. It is the brief last interview given in March 1993 by assassinated SACP leader Chris Hani, in which Hani outlined what a new ANC government should do. Hani called for a culture of service to the people that would include cutting down the salaries of ministers, of parliamentarians and all [their] subsidies. In an ironic twist, the congress began with Vavi reading out the interview on the very day that the pay rise to R2.6 million for the keynote speaker was announced. Hani also called on the ANC to allow the formation of many democratic formations that would include independent trade unions, a fact Vavi underlined to the annoyance of several delegates. Yet Vavi was elected unopposed. As were the other office bearers. In this respect, Cosatus congress in Midrand may be seen as a rehearsal for Mangaung, in the sense that the leader will remain in place, perhaps professing a new, radical way forward while growing divisions remain.

20 September 2012 IOL Sapa Poverty bomb has exploded: Vavi Johannesburg - The ticking time bomb of poverty and inequality has resulted in the widespread violence in the country, Cosatu said on Thursday. The shocking levels of poverty and inequality lie at the heart of violent protests we are seeing in both the workplaces and communities, Congress of SA Trade Unions (Cosatu) general secretary Zwelinzima Vavi said.

It is creating what until recently we have called a ticking time bomb. Vavi was delivering Cosatu's national congress's declaration at the end of the four-day event in Midrand. He said: In the context of events in the mining industry and growing service delivery protests, we must now talk about 'exploding bombs'. The declaration detailed some of the resolutions taken by the congress. Vavi said the congress was embarking on a programme of action to drive economic shifts in the country. This included discussion on a national minimum wage. We will convene urgent meetings with the government and the ANC, at the highest level, to discuss the development of a new wage policy.

21 September 2012 Cape Times Page 6 Gaye Davis and Crystal Orderson Leadership stability is Cosatus call Pretoria - Cosatu president Sdumo Dlamini said on Thursday stability of leadership was the message workers were sending to the ANC as it proceeds to its own elective conference in Mangaung. This country does not need factionalism, it doesnt need divisions of leadership. In practice, its stability - thats what we want and need, Dlamini said, departing from his prepared text when closing Cosatus four-day congress in Midrand. Delegates loudly applauded when he said he hoped the ANC would be able to take lessons from Cosatus congress - as well as that of the SACPs in July where the top leaders had been re-elected unopposed. The past four days saw careful management by Cosatus leadership to avoid direct discussion of succession in the ANC. A last-ditch bid to open the leadership debate to the floor came after lunch from metalworkers union, Numsa - and was swiftly shut down. It had been agreed on the first day that the central executive would manage resolutions including those on the ANC leadership - and hammer out a programme of action to pursue Cosatus call for radical social and economic change.

Numsas Irvin Jim said the issue was a hot potato and should be discussed, but the National Union of Mineworkers and Cosatu first deputy president Tyotyo James shut it down. Those pushing for the debate were, however, able to extract the concession that there would be no corridor influence and that the final decision of its executive committee - after it meets in the first week of October - would be conveyed to members in time for the nominations process that will then be getting under way in ANC branches. More than 500 000 of Cosatus more than 2 million members also belong to the ANC, which has a membership of 1.2 million. This will not necessarily translate into direct influence on who gets nominated, however. While speculation has been running high that therell be a push for a second term for ANC president Jacob Zuma, neither Cosatus leadership nor its affiliates are at one on this - despite this weeks show of unity. There are also divisions within affiliates. Pledging that Cosatu would lead from the front to ensure unity in the broader alliance, Dlamini said: There is no time for petty squabbles, our people are crying out for our leadership. Members had made it clear they wanted a united federation, he said. In this context there will be no union that is above Cosatu and there shall be no individual who is above Cosatu. We shall all subject ourselves to the discipline and traditions of this federation and the congress movement as a whole. He urged workers who out of anger had left to join unions outside Cosatus fold to return. Come back and address your issues inside the organisation, he said. We will address them. Cosatu would avoid those wanting to liquidate our movement and sow disunity among our people and inside our movement. It is for this reason that we are not friends with any groups that use and abuse the name of our movement. This is our movement and we will defend it with everything we have, Dlamini said. Vavi told journalists afterwards the congress had been very frank and constructive. Congress adopted a declaration that said peoples patience after 18 years of freedom was running out and that radical social and economic change be the core element of the ANCs second phase of the democratic transition - the socalled Lula moment after the former Brazilian president who wrought farreaching improvements to the lives of workers and peasants. Cosatu would engage with its allies over an agreement it wants that it becomes the centre of strategic power. We believe, as a collective, that with

high rates of unemployment there is a crisis. We are not backing off from this, said Vavi, who came under fire from some affiliates and the ANC when delivering a hard-hitting political report earlier this week. On the leadership issue he said: One thing is for sure - the collective will not be allow (the ANC) to be hijacked by tenderpreneurs. Congress had not taken a denialist approach to the problems besetting the country. The determination is out there (to bring about change), Vavi said. The Lula moment starts now. Cosatu would be fighting to get labour brokers banned, and would push for inappropriate key government and ANC officials, whom he did not name, to be removed from their posts. The battle against corruption and inefficiency starts now. We want inappropriate people moved from key positions, he said. We are playing with fire, we want radical economic transformation.

20 September 2012 Cape Times/ Business Report Sapa Ramaphosa apologises for buffalo bid Businessman Cyril Ramaphosa has apologised for bidding millions of rand on a buffalo cow and her calf. Yes, I did put a bid and that was a mistake on my part, he told SAfm on Thursday morning. It was a mistake. I regret it. It was a mistake to even put up my hand to do so... I've been chastised by some of my good comrades, and even before they chastised me, I did admit that was a mistake. I regret it because it is an excessive price in the sea of poverty. I belong to a community and it was one of those moments when I was blind-sighted, said Ramaphosa. Expelled African National Congress Youth League president Julius Malema recently criticised Ramaphosa for this in an address to miners on an unprotected strike at Lonmin platinum mine, in which Ramaphosa reportedly owns shares. Malema told the miners Ramaphosa had bought the buffalo for R18 million.

According to a City Press report in April, Ramaphosa bid up to R19.5 million for the buffalo cow and her calf at a game auction near Rustenburg, but was outbid by Bloemfontein businessman Boet Troskie. Ramaphosa said later that his budget did not allow him to pay R20m for the buffalo cow. I spent my budget on other animals. And, like any businessman, you must know when to stop, he said at the time, according to the City Press report. Sapa

21 September 2012 Business Day Page 1 Carol Paton Surprise as Jim backs Zuma for second term THERE was a big surprise at the Congress of South African Trade Unions (Cosatu) congress yesterday: President Jacob Zumas most strident union critic, National Union of Metalworkers of SA (Numsa) general secretary Irvin Jim, rose to support the presidents second term as African National Congress (ANC) leader. Although support for Mr Zuma is not unanimous in Cosatu some of the 3,000 delegates did not join in songs praising him there was sufficient consensus at the congress to believe that Cosatu will endorse his second term. Before Mr Jim could throw his union s substantial weight behind Mr Zuma, he was stopped for raising the matter unprocedurally. He was preceded by Thobile Ntola, president of the South African Democratic Teachers Union and another critic of Mr Zuma, who argued that the congress should discuss who Cosatu should back at the ANCs electoral conference in December, arguing that "the revolution should not be left to chance". The discussion was deferred to Cosatus central executive committee, as were all the congresss political resolutions. But Mr Jim and Mr Ntolas comments spoke volumes, indicating that Mr Zumas critics in Cosatu wanted to be seen as the first to support him. Senior leaders of the biggest unions in Cosatu said that over the course of the four-day congress this week, unanimity on support for Mr Zuma had emerged in behind-the-scenes discussions. It had always been probable that the federation which has double the membership of the ANC and considerable resources to mobilise support for the party was going to support Mr Zuma.

"I dont know of a single affiliate that does not support a second term for Zuma," a union leader said. However, serious differences remained over who should fill the rest of the top leadership positions in the ANC. This was why discussion on the partys elections was not held in the Cosatu congress plenary. One of Mr Jims objectives in attempting to open the leadership debate was to bargain on the other five top positions in the ANC. "For us, it is a question of who else is with Zuma. Numsa wanted to submit our support for Zuma for a second term. But we want both continuity and change," said Mr Jims deputy, Karl Cloete. At a press conference at the conclusion of the congress, Cosatu general secretary Zwelinzima Vavi said the matter of the ANC leadership would be declared later. "Yes, there was a push from some unions that we must make a pronouncement on Cosatus preferences and there were interventions from others that the matter should be referred to the central executive committee," he said. "So hold on just a little bit, and the central executive committee will make a pronouncement." The committee would meet early next month, he said. It is likely that Cosatus top decision-making body outside of its congress will find itself in the same predicament as the congress without unanimity on the ANCs top six positions. If that happens, it is likely Cosatu will use its discussion as a basis to engage with the ANC. There were several reasons for the swing to supporting Mr Zuma at the federations congress. Unionists who do not support Mr Zuma had no alternative candidate. Although the ANC in Gauteng began an impressive campaign to champion Deputy President Kgalema Motlanthe as Mr Zumas successor, it gained little traction in Cosatu. Under Mr Zumas administration, Cosatus economic policy vision has made advances. The government has accepted it should play a more active role in the economy and adopted a proactive industrial policy. Mr Zuma has also given unionists and communists leading roles to play in his government, including in economic ministries. Since Mr Zuma became president, the tripartite alliance of the ANC, Cosatu and the South African Communist Party has, for the first time since 1996,

become an effective channel for Cosatu to make deals and extract agreements, which it used to pressurise the government. Mr Zuma therefore looks like a safer bet than Mr Motlanthe, who at times expressed strong views on the separation of party and state and is something of an unknown quantity. Another source of the swing is Mr Zumas popular support. Numsas national executive committee told the unions leaders to back him. These are the same reasons why Mr Vavi a consistent critic of the Zuma administration was re-elected uncontested : he was too popular to take on and his detractors had no viable challenger. With its unity maintained, Cosatu resolved at the end of its congress to fight for a radical shift in the governments economic policy; higher wages ; the banning of labour brokers and an interventionist state.

21 September 2012 Business Day Page 3 Sam Mkokeli and Natasha Marrian ANC advised to avoid divisions as Mangaung nears HAVING been re-elected without opposition this week, the Congress of South African Trade Unions (Cosatus) leaders advised the African National Congress (ANC) to avoid divisions in the build-up to the Mangaung congress. Sections of Cosatu have been critical of President Jacob Zumas leadership, but they left singing a different tune when the labour federation wrapped up its elective congress in Midrand yesterday. Cosatus unity calls will boost the campaign to avoid a leadership challenge in Mangaung by re-electing Mr Zuma. Speaking to journalists yesterday, general secretary Zwelinzima Vavi said the ANC could learn from Cosatus elective gathering, which had agreed on union leadership choice but still maintained robust debates on politics and policy. Mr Vavi said while the ANC needed to be nudged to be more decisive in fighting poverty and protecting workers, there was a risk of the ruling party being captured by tenderpreneurs in Mangaung. The Cosatu congress hastily deferred ANC leadership discussions to a central executive committee meeting, to be held next month. The federation forms part of the ruling alliance with the ANC and the South African Communist Party (SACP) and was set to discuss whether to

pronounce on ANC leadership and whether to endorse Mr Zuma for a second term. Cosatu promised a "Lula moment" of decisive leaders and a new approach to tackle poverty, unemployment and inequality, but few decisions were taken which provide testament to such a shift. The congress deferred the discussion on leadership to a special meeting of its top brass at the central executive committee, despite many affiliates pushing for the talks to take place at the congress and in full view of the media. The push for the talks to take place was led by the National Union of Metalworkers of SA (Numsa) and by the South African Democratic Teachers Union. But the discussion was extinguished by Cosatu leadership, who cited time constraints as the main reason. The National Education, Health and Allied Workers Union had put forward a resolution calling for Cosatu to endorse Mr Zuma in December, which was also shifted to the central executive committee meeting. Numsa, according to its president Cedric Gina, has also resolved to support Mr Zuma but not his entire leadership collective. Another key discussion that was deferred was Cosatus posture in relation to its allies, the ANC and the SACP although Cosatu reiterated its call for the alliance to be the strategic political centre, while the ANC sees itself as the centre. The discussion on the national minimum wage and collective bargaining would take place at a conference early next year. Cosatu reiterated its demand for a total ban on labour brokers. The ANC-led government is adamant on regulating labour brokers instead of an outright ban. A side issue but one believed to be of national interest by the union pushing for it of changing the national anthem was also deferred. The Police and Prisons Civil Rights Union is pushing for Cosatu to resolve on pushing for the English and Afrikaans sections of the anthem to be removed. It wants the anthem, Nkosi Sikelel Africa, as composed by Enoch Sontonga, to replace it. 20 September 2012 Business Day Page 4 Natasha Marrian Mantashe envisages a Zuma moment for South Africa

THE Congress of South African Trade Unions (Cosatus) catch phrase for change, the "Lula moment", was morphed into the "Zuma moment" by African National Congress (ANC) general secretary Gwede Mantashe on Thursday. The "Lula moment" refers to the improvement in the Brazilian economy during the second term of former president Luiz Lula da Silva. Mr Mantashes usage may refer to Mr Zumas second term, which he is set to fight for at the ANCs elective conference in December. Cosatu general secretary Zwelinzima Vavi used the phrase to describe a "high-road scenario" for South Africas future prospects in his political report to the congress. Discussing the federations socioeconomic report during Cosatus 11th national congress, Mr Mantashe rose to add to the debate, saying he had some input to make "if we want to make the Zuma moment a reality". He then highlighted issues around land and farming. Mr Mantashe also clarified the ANCs position on nationalisation, saying the party had agreed on "strategic nationalisation" at its June policy conference. He urged Cosatu to add its voice to the debate around identifying strategic minerals to unfold at the ANCs national conference in December. The Police and Prisons Civil Rights Union agreed with Mr Mantashe on the "Zuma moment". The ANCs leadership question has weighed on the Cosatu congress the federations leadership struggled to get delegates to settle down on Thursday morning as they sang songs and showed signs in favour of and against Mr Zuma. Some delegates held up two fingers resembling a peace sign to indicate their support for him for a second term. Others rolled their hands, indicating change, resembling the signal for substitution in soccer matches. Mr Vavi attempted to intervene, saying "once we start showing signs we divide the congress", and alerting delegates to the rules of the congress which bars them from singing divisive songs or displaying divisive signals. Cosatu president Sdumo Dlamini then took to the podium, in a bid to get delegates to take their seats. The four-day national congress wraps up on Thursday, with a closing address by Mr Dlamini. 21 September 2012 Business Day

Page 1 Wyndham Hartley and Trevor Neethling Trio crimes fail to show fall in stats THE crimes South Africans fear the most the so-called trio crimes of car hijacking, house robberies and business robberies have not declined, according to the crime statistics for the 2011-12 financial year, issued yesterday. Analysts yesterday questioned the usefulness of the statistics, which are six months out of date, preventing people from knowing about current crime risks that might affect their safety. "For example, we know that violent public protests have exploded since 2009, but these are not revealed in the crime statistics," Institute for Security Studies researcher Gareth Newham said. Police Minister Nathi Mthethwa yesterday announced a mixed bag of marginal downward trends in the incidence of serious crime, with an overall national decrease of less than 2%. Mr Mthethwa announced that car hijacking was down by a reasonable 11.9% nationally, house robberies were reduced a scant 1.9% while business robberies were up 7.5%. "Our operational analysis at police station level confirmed that police visibility at the right times, right places and employing right tactics, could decrease trio crimes significantly, especially business robberies," he said. Contact crimes, where violence or coercion is used, accounted for almost a third of reported serious crime. There was a fall of 3.5% in contact crimes. Asked if he was disappointed with the statistics, many of which failed to achieve the targets police had identified in their strategic plan, Mr Mthethwa said "there will always be disappointments as long as people dont feel safe". "Murder is one of the most reliable trends of crime statistics. During 2011-12 we recorded a decrease by 3.1%," he said. "We are encouraged to see the murder ratio further decrease in a long line of decreases, which still contributes to the systematic and almost constant decrease in murders since the dawn of democracy; despite SAs 30% population growth." Mr Newham said the crime statistics did not reflect the security threats facing citizens. These included corruption, public violence, group murders, political assassinations and domestic violence.

The polices "broad statistical categories" hid threats to citizens, including gang violence, vigilante killings, xenophobic attacks and murders during robberies, Mr Newham said. African National Congress parliamentary spokesman Moloto Mothapo hailed the statistics as a demonstration that the governments crime-fighting efforts were bearing fruit. Dianne Kohler Barnard, the Democratic Alliance spokeswoman on police, also questioned the reliability of the statistics. "It is time for an independent body to take control of the crime statistics, away from the police," she said, adding that real-time statistics should be made available to the public at police station level. Western Cape community safety MEC Dan Plato called for a "root and branch overhaul" of the criminal justice system, including proper leadership and management of the police. Simi Pillay-van Graan, CEO of Business Against Crime SA, said the decline in vehicle theft and hijackings was an indication of the success of proactive policing, combined with the support of the business sector. However, the organisation was concerned about business robberies, which had risen by 7.5%, most of them affecting small businesses. South African Banking Risk Information Centre CEO Kalyani Pillay was pleased with the downward trend of ATM bombings. Helen du Toit, head of audit and forensics at Santam, said economic crime had risen to its highest level in eight years. "The percentage of reported commercial crime cases rose by 58.2% between 2003 and 2011," she said.

20 September 2012 The Times Page 4 Hlengiwe Nhlabathi Cosatu leads by example with daycare The union made the recommendation at Cosatu's national congress in Midrand yesterday. There has already been pressure on employers from Health Minister Aaron Motsoaledi, who wants companies to establish facilities so women can breastfeed their children during breaks. Though Denosa's recommendation is yet to be adopted , Cosatu seems to be leading by example .

The voices and laughter of young children could be heard from a room several metres from the main conference hall in which delegates debated issues . These were the children of some of the delegates at the congress, who were being cared for by two trained child-minders. The children, aged between two and five, spent the day doing activities they would do at regular daycare centres, such as colouring, counting and reciting poems. Getrude Mtsweni, Cosatu's national gender coordinator, said the issue of the daycare centres formed part of the federation's policy on gender, adopted in 2000 and implemented a year later. It was inspired by a need to improve women's participation in Cosatu. "We wanted to ensure gender balance in meetings," she said. Nomvula Zikalala, a delegate from Ekurhuleni, had two of her children at the conference care centre. Mtsweni said it would be a victory for workers if the government were to roll out such a programme throughout the country. 20 September 2012 Business Day Page 3 Natasha Marrian Cosatu puts off minimum wage decisions WHILE many Congress of South African Trade Union (Cosatu) affiliates agree on the need for a national minimum wage, no concrete decisions were taken on the policy at Cosatus congress yesterday. The federation said it would "engage further" on the matter. Key discussions were "deferred" to Cosatus leadership structure, the central executive committee. These included political resolutions and further talks on the national minimum wage. They were shifted, possibly to a collective bargaining conference to take place early next year. Cosatu general secretary Zwelinzima Vavi complained during the congress that the federation had convened a collective bargaining conference last year, but "unions did not take it seriously". There was a need for a "mindset change".

Mr Vavi expressed unhappiness that the document on the national minimum wage was distributed in May, yet discussion on it started only at the congress. Cosatu believed the national minimum wage was "critical" in bringing about the "developmental leap" SA needed to close gaping inequalities in society. The trade union federation was convinced that the wage policy would lift the lowest-paid workers out of poverty. Further, it would forge solidarity between low-paid and higher-paid workers, and assist in growing Cosatu. At present, policies governing wages were "fragmented" and were set through sectoral determinations, collective bargaining forums in various sectors and at company level. "If we want to move away from the apartheid wage structure, we need a wage policy to achieve this," said Neil Coleman, adviser to Mr Vavi, in an interview on the sidelines of the conference yesterday. Mr Coleman said there was a "misconception" that Cosatu wanted a minimum wage of between R4,800 and R6,000. It had not put forward a proposal on the amount and had called on society to discuss this. "We looked at the experiences of SA. What we wanted to do was get to the bottom of what is the situation in terms of minimum wages," Mr Coleman said. "What the paper says is that there is this massive proliferation of wage-setting mechanisms. "We go through all of that and also connect it to the question of a minimum living wage. How do existing minimum wages relate to some type of conception of a minimum living level? "B asically, (the level) below which a family of five cannot survive in terms of meeting basic requirements. So they cluster around R4,000 a month its an objective criterion ." Cosatu agreed to hold the collective bargaining conference early next year to stimulate the debate on the national minimum wage. The policy proposal received the support of heavyweight Cosatu affiliates the National Education, Health and Allied Workers Union (Nehawu) and the National Union of Metalworkers of SA. "We agree that we need a minimum floor across the economy," said Nehawu general secretary Fikile Majola, during the debate on the proposal. " Its something we are going to have to fight for." The congress was urged to bring forward a collective bargaining conference which it initially proposed should take place late next year or early in 2014. But the National Union of Mineworkers (NUM) proposed this be brought forward because of its urgency. NUM is pushing for collective bargaining in the platinum sector after the labour unrest at platinum mines in Rustenburg in particular.

The Cosatu national congress ends today. 20 September 2012 Business Day Page 3 Setumo Stone ANC not milking Eskom via investment arm THE African National Congress (ANC) has rejected talk it is benefiting from problems in the mining sector, following criticism by political analyst Moeletsi Mbeki that the partys dealings with Eskom are pushing power prices up. Mr Mbeki said this week, on the sidelines of the Congress of South African Trade Unions congress in Johannesburg, that rising electricity costs in the ageing mining industry funded the ANC through Eskoms links with the partys investment arm, Chancellor House. ANC treasurer-general Mathews Phosa yesterday rejected Mr Mbekis argument. There should not be a diversion from the need to improve the living and working conditions in the mining sector. "Let us not find excuses," Mr Phosa said. Following the 22% salary increase for the striking workers at Lonmins Marikana platinum mine on Tuesday, analysts warned that because of rising production costs, the mining industry could barely support such hefty rises in wage costs. There were fears that the Marikana wage deal could encourage similar tactics of wildcat strikes at other mines. The ANC has been linked to questionable funding sources, including a R38.5bn subcontract linked to Chancellor House for the supply of boilers to Eskom. Mr Mbeki said on Monday mining in SA was facing lots of problems because it was an old industry and, therefore, highly expensive to run. Eskom, the ANC and Chancellor House were adding to the cost of electricity and not helping the situation. "The government had been ratcheting up the price of electricity, which was a huge cost in the mining industry," Mr Mbeki said. The price increases financed the ANC through Chancellor House. "The ANC is milking Eskom through Chancellor House," Mr Mbeki said. "That is why the costs are going up. The problem is that we have an aging industry which is being loaded with costs by the government and the ANC itself".

Mr Phosa who also heads the ANCs finance committee said yesterday these were attempts to shift the focus away from the living and working conditions of workers in the mining industry. An attempt to connect the ANC to the problems in the mining sector lacked "logic and rationality". The mining industry had to deal with labour relations issues without sucking political parties into the situation. Mr Mbeki said electricity was a big input into mining as 15% of power produced in SA went to the industry. At the ANCs June national policy conference, delegates recommended that the party participate in the economy. This it was to do "through various activities such as setting up businesses to provide goods and services as well as building an investment portfolio". In a bid to deal with possible conflicts of interest, the ANC said it needed to find ways to regulate its participation in the economy. "Regulation of partylinked investment vehicles should be introduced to avoid conflict of interest which will result in compromising the integrity of the movement." It was expected that the party would further discuss the contentious issue of investment arms at its national conference in Mangaung in December. President Jacob Zuma said on Monday the mining sector needed a lot of discussion in SA and transformation of the industry "will also feature in Mangaung".

20 September 2012 Business Day Page 4 Tamar Kahn Contrast in provinces healthcare progress DIFFERENCES in the quality of public healthcare available to South Africans were made starkly apparent to MPs yesterday as the Western Cape and Eastern Cape reported on progress in upgrading hospitals. Parliaments health committee is hearing reports from all provinces on the status of their hospital revitalisation programmes, a vital step in preparing for new norms and standards devised by the Department of Health to improve the quality of care. The norms and standards will come into effect once Parliament passes the National Health Amendment Bill, which is before the National Council of Provinces.

Western Cape MEC Theuns Botha told MPs that his provinces hospital revitalisation programme was going "very well", and most projects had been completed on time and within budget. "We regard the upgrading and adding of new facilities as very important," he said. The province had 150 capital projects under way. "A budget is a law and if you overspend you are breaking the law. We deal with it differently to other provinces," he said, noting that health received the biggest slice of the Western Capes budget. The Western Cape health departments deputy director for monitoring and evaluation Lorraine Rademeyer described minor delays in some hospital revitalisation projects such as Mitchells Plain Hospital, which she said was delayed by three months due to damage caused by a fire in May. Gautengs head of health, Nomonde Xundu, however, told MPs about several hospital revitalisation projects that were hundreds of millions of rand over budget and years behind schedule, including Bertha Gxowa and Jabulani Hospitals. "Your province has not been hit that hard by the past. Some of the provinces had homelands that made them have serious backlogs," said committee chairman Bevan Goqwana, referring to the Eastern Cape. Eastern Cape superintendent-general Siva Pillay agreed that his province faced extensive challenges. The provincial health department simply did not have the money it needed to upgrade facilities to the standard required by the bill, and would be forced to close many of its crumbling facilities unless it were granted an exemption to some of its requirements, he said. "Not a single building of ours, including those rebuilt recently, (would) pass the minimum standards. If you build something state of the art and dont budget for maintenance, it goes straight down the drain," said Dr Pillay. He estimated the province needed R1.1bn a year to maintain facilities, but the maintenance budget was no more than R185m. "We are very concerned about this bill. Its vision must be met with a budget. We have huge backlogs, and with the current budget allocation there is no way we can address (them). Nessie Knight Hospital has cracks in the wall this big," he said, showing a 20cm gap in a gesture. "It is structural damage, and all we can do is patch it, but that wont address the problem." Meeting the staffing requirements of the bill alone would need an additional R9bn a year, and getting the hospital and clinic infrastructure up to grade would cost another R19bn, he said.

20 September 2012 Business Day Page 4 Wyndham Hartley Africa must fly, says Dlamini-Zuma PRESIDENT Jacob Zuma yesterday led a joint sitting of both houses of Parliament in congratulating his former wife Nkosazana Dlamini-Zuma on her appointment as African Union (AU) Commission head. Ms Dlamini-Zuma has served in various portfolios in the government since the dawn of the democratic era in 1994 and has frequently been mentioned as a possible challenger to lead the African National Congress (ANC) and become president of the country. Mr Zuma said it was his honour to congratulate Ms Dlamini-Zuma and, "I must admit that it was not easy for us to let go of one of our senior and dedicated ministers. "But I am confident we are all in agreement that it is for the greater good of the African continent. "She is one of the longestserving members of Parliament and of Cabinet, of the free and democratic SA." Mr Zuma said the AU had moved on from supporting liberation movements on the continent to helping Africa to find her economic freedom through spearheading unity, development and integration. "It is remarkable that six of the worlds fastest 10 growing economies are African. "In eight of the past 10 years, Africa has grown faster than East Asia," Mr Zuma said. Ms Dlamini-Zuma said she was going to Addis Ababa the Ethiopian headquarters of the AU "not as a saviour, but as a humble servant of the people to contribute to collective continental efforts to create a better Africa in a better world". She said it was in the "fundamental" interest of SA to pay focused attention to the integrated development of the Southern African Development Community region and to build the institutional capacity of the AU. "Africa is poised to take flight and to fly high and we must not be left on the ground," Ms Dlamini-Zuma said.

Democratic Alliance MP Ian Davidson said Ms Dlamini-Zumas new in-tray would be full of challenges, "including bringing peace to the Democratic Republic of Congo, Mali, Sudan and Guinea-Bissau as well as promoting democracy and good governance in Cte dIvoire, Niger, Madagascar and Zimbabwe." She would also have the challenge of rolling out infrastructural development that would enhance economic growth. 19 September 2012 The New Age Reuters I am with the people: Zuma President Jacob Zuma dismissed critics who accuse him of being out of touch with the people and brushed aside one of his most vocal opponents, saying populist rival Julius Malema had no influence and was "just talk". Speaking on the sidelines of a meeting with the European Union, shortly after a deal was struck to end a six-week strike at South Africa's Marikana platinum mine, Zuma laughed when asked how he responds to those who say he has lost touch with the roots of the African National Congress and its voters. "They are actually wrong," he said in an interview at his hotel in Brussels late on Tuesday. "I am with the people on a continuous basis in huge meetings. Those people are really just telling what they think without looking at the facts. I am very much in touch with the people." Zuma has been accused of being slow to react to the Marikana strike, even after the killing of 45 people, including 34 miners shot dead by police. He visited the site shortly after the Aug. 16 shootings, but stayed only briefly and then went to dance at an ANC event, despite having declared a week of mourning. Asked if he had more affinity with the mineworkers or with Cyril Ramaphosa, a wealthy businessman and board member of Lonmin Plc , the owner of the Marikana mine, Zuma defended his relationship with the former union activist who is now worth an estimated $275 million. "Cyril Ramaphosa that you are talking about is a national executive committee member of the ANC," he told Reuters. "Much as he is a businessman, he's also part of the ANC. So I don't know who would be saying that we have moved from where to where, because we have been with him all the time." LEADERSHIP CHALLENGE? Zuma, 70, has long been a divisive figure in South African politics, even since

taking over as president after elections in 2009. In 2005 he was charged with rape but was acquitted, while a corruption case against him was dropped in 2009. One of his fiercest and most persistent opponents is Malema, 31, the former head of the ANC Youth League. Malema, who backed Zuma in a successful bid to oust former ANC leader Thabo Mbeki in 2007, has since been expelled from the ANC for his criticism and is now waging an anti-Zuma campaign with the growing support of disgruntled mineworkers. During a nearly two-hour news conference in Johannesburg this week, Malema called Zuma a dictator and said his main interest was securing benefits for his friends and backers. "Under Zuma, our country will plunge deeper into crisis," Malema said. "Zuma is highly compromised and lacks capacity -- everything he touches becomes a problem." Asked how concerned he was about the criticism from Malema, who is backing deputy President Kgalema Motlanthe to challenge him at the next ANC leadership contest in December, Zuma smiled dismissively. "Malema is not in the ANC. He has been expelled. He has no influence. He has nothing to do with the ANC. He's just talking out there. He is no longer a factor, that is why he would jump to any miners that would do anything," he said. Still, the leadership contest promises to be a heated affair. Five years ago Zuma succeeded in ousting Mbeki and now challengers are steeling themselves to take on Zuma. Whoever becomes party leader is well placed to succeed Zuma as president after the next elections in 2014. "We're now talking about an economic struggle," said Malema. "Not even the president can stop me. Not even death can stop me." But Zuma brushed aside the fighting talk. "This conference is going to move very smoothly," he told Reuters. "There isn't what the media in South Africa projects. It's not as if there is a huge clash that is coming inside the ANC, absolutely not." 19 September 2012 Business Day Page 1 Foreign Staff

Nato scales back as Kabul bomb kills eight from SA ANGER over a film mocking the Prophet Mohammed sparked a suicide bomb attack near Kabul airport yesterday which killed eight South Africans coinciding with the North Atlantic Treaty Organisation (Nato) scaling back operations in Afghanistan due to the deteriorating security situation. Protests against the film have stretched across the Middle East, Asia and Africa. In several cities, protesters attacked US embassies, blaming America for the video. A suicide bomber rammed an explosives-laden vehicle into a minivan near Kabul, killing 12 people employed by an aviation company. Hizb-e-Islami, a guerrilla group allied to the Taliban, said it carried out the attack in retaliation for the film, spokesman Zubair Siddiqi said yesterday. He said the bombing was carried out by a 22-year-old woman named Fatema. SAs government was contacting the families of those killed and would provide details later, Department of International Relations and Co-operation spokesman Clayson Monyela said yesterday. President Jacob Zuma expressed his "heartfelt and sincere condolences to the families, friends and communities of the eight South Africans". "I am deeply saddened by the deaths of the South Africans, as well as the other lives that were lost during this tragic incident. Our thoughts and prayers are with the families of the deceased," the Presidency said. Natos International Security Assistance Force is suspending some joint operations due to attacks on its forces in Afghanistan. Gen John Allen, commander of the coalition forces, "has directed all operational commanders to review force protection and tactical activities in the light of the current circumstances", Pentagon spokesman George Little said yesterday. So far this year there have been 37 attacks, resulting in the deaths of 51 coalition troops at the hands of Afghan allies or infiltrators, compared with 35 deaths last year, according to Nato. In 2008, there were two insider attacks. Nato secretary-general Anders Fogh Rasmussen said the measures taken to protect the bodys troops in Afghanistan were "prudent and temporary in response to the current situation". 19 September 2012 Business Day Page 1

Monde Maoto Strike ends as Lonmin workers get 22% hike WORKERS at Lonmins Marikana platinum mine yesterday accepted a hefty 22% wage increase, bringing to an end a crippling strike that shook SAs postapartheid labour relations regime and left 45 people dead. While the workers hailed their gains, analysts were warning that other mineworkers may be encouraged also to insist on wage hikes outside negotiated agreements with trade unions. In reaction, the rand rebounded against the dollar while shorter-dated bond yields dipped after news of the Lonmin deal. Platinum prices slid 2.8%. Earlier, while Lonmin management refused to confirm the agreement, saying it was not yet official, the Commission for Conciliation, Mediation and Arbitration later last night said the strike had indeed ended. The Marikana strike sparked unrest at other mining operations. Gold Fields said yesterday it would not consider demands for a minimum wage of R12,500 the same hike demanded at Lonmin. This was the second time this year that workers had broken ranks with the National Union of Mineworkers (NUM), raising concerns that a trend had been established. Such large increases not only destabilised the sector, but had the potential to lead to job losses, a leading analyst said last night. "The mining industry, and particularly the platinum industry with its higher cost base, can barely support such hefty increases in wage costs wages already account for over 60% of costs at Lonmin," said Peter Attard-Montalto, a strategist at Nomura. Trade union Solidarity said the union hoped the agreement would bring an end to the intimidation and violence, but warned the "abnormal" negotiations borne out of the illegal strike set a dangerous precedent that could occur at other mines in future. As part of the Lonmin deal, rock drill operators will earn a gross monthly salary of R11078 production team leaders will gross R13022 and operators R9,883. Lonmin has also offered a on e-off bonus of R2,000 if workers returned to work tomorrow. Reporting back to the workers who had gathered at the Marikana stadium yesterday, strike leader Zolisa Bodlani told the cheering crowd that the increase would be applied across the board.

Although the Association of Mineworkers and Construction Union (Amcu) did not play a pivotal role in the final wage settlement, its initial role threw down the gauntlet to the NUM, whose leaders had been accused of getting too close to mining bosses. Amcu was unavailable at the time of going to print. Impala Platinum is in talks with an interim workers committee comprised of Amcu and the NUM, for a second round of wage demands this year. Bishop Jo Seoka president of the South African Council of Churches who negotiated on behalf of the Lonmin workers, said the offer was close to the R12500 demanded by the workers when they downed tools on August 10. "We are happy with the latest offer, it is better than what the workers got before they went on strike," he said. Senzeni Zokwana, president of the NUM, said the union hoped the agreement would restore peace at Marikana, and their members would accept the outcome and return to work. Anglo American Platinum confirmed that all of its Rustenburg operations resumed yesterday, although the majority of employees were yet to return to work. 19 September 2012 Business Day Page 1 Sam Mkokeli Vavi under fire for ANC crisis report THE African National Congress (ANC) would suffer in the 2014 election if it emerged from its elective conference in December with a divided house, Congress of South African Trade Unions (Cosatu) chief Zwelinzima Vavi said yesterday. Mr Vavis sharp criticism, and his warning when delivering his political report that "the state is in crisis", was lambasted by many of the trade union federation s affiliates during a robust debate at Cosatus 11th national congress in Midrand. The sticking point was the negative picture it painted of the alliance between the ANC, the South African Communist Party and Cosatu saying it was in dire straits. While robust debate during congresses is nothing new for the federation, the discussion revealed that despite the re-election of Cosatus leadership, the differences among affiliates over the "posture" of Cosatu toward its allies remained.

In the hard-hitting political report, Mr Vavi described the ANC as "increasingly wracked by factionalism, patronage and corruption", and unable to "reassert the mission and strategic vision of the organisation". He said this had seeped into the state and had a direct effect on delivery. Mr Vavi urged the ANC to follow Cosatus lead in its elective conference in Mangaung after all, the federations top brass were re-elected unopposed. The worse thing would be an ANC that emerged from its elective conference without a programme to tackle the crisis, having spent all its time "battling against each other". "Those with narrow ambitions, please hold on a little bit, think about the future of our movement," Mr Vavi said. The ANC opens its nomination process next month ahead of its next internal elective gathering two months later. Those wanting to oust President Jacob Zuma are working hard to replace him with his deputy, Kgalema Motlanthe. Mr Vavi warned that the opposition would benefit if the movement went into the 2014 election with a divided house. His public indictment of the state was among the reasons a faction within the federation sought to replace him, but backed out, with him returning to the powerful position for a fifth term. The "emerging multiple crisis", he said, constituted crises in the ANC and in the state the crisis of inequality, poverty and unemployment and an emerging crisis of political legitimacy and disillusionment. "Because the ANC is the ruling party, any crisis inside the ANC goes straight to a crisis of the state. "A crisis in the state in which years of neglect, fiscal cutbacks and contracting out of state responsibilities combined with endemic corruption and a failure of political and bureaucratic leadership together render elements of the state apparatus increasingly ineffective or even dysfunctional," Mr Vavi said. "You can say whatever, but in our dictionary this is a crisis," he said to applause from delegates. During the debate, a provincial South African Democratic Teachers Union leader blasted the use of the word "crisis" reading the definition from a dictionary and urging the use of the word "challenge" instead, which he also defined for the congress. The old debate on Cosatus independence from the ANC re-emerged, with the National Union of Mineworkers saying some were attacking the ANC to "define their independence and class orientation".

The South African Municipal Workers Union said it was "dangerous to portray the image that government and the alliance did not have the capacity to take the country forward", as this could be seen as "inviting a coup". 19 September 2012 Business Day Page 3 Natasha Marrian ANC will pay price for division at polls THE African National Congress (ANC) would suffer in the 2014 election if it emerged from its elective conference in December with a divided house, Congress of South African Trade Unions (Cosatu) chief Zwelinzima Vavi said yesterday. Mr Vavis sharp criticism, and his warning when delivering his political report that "the state is in crisis", was lambasted by many of the trade union federation s affiliates during a robust debate at Cosatus 11th national congress in Midrand. The sticking point was the negative picture it painted of the alliance between the ANC, the South African Communist Party and Cosatu saying it was in dire straits. While robust debate during congresses is nothing new for the federation, the discussion revealed that despite the re-election of Cosatus leadership, the differences among affiliates over the "posture" of Cosatu toward its allies remained. In the hard-hitting political report, Mr Vavi described the ANC as "increasingly wracked by factionalism, patronage and corruption", and unable to "reassert the mission and strategic vision of the organisation". He said this had seeped into the state and had a direct effect on delivery. Mr Vavi urged the ANC to follow Cosatus lead in its elective conference in Mangaung after all, the federations top brass were re-elected unopposed. The worse thing would be an ANC that emerged from its elective conference without a programme to tackle the crisis, having spent all its time "battling against each other". "Those with narrow ambitions, please hold on a little bit, think about the future of our movement," Mr Vavi said. The ANC opens its nomination process next month ahead of its next internal elective gathering two months later. Those wanting to oust President Jacob Zuma are working hard to replace him with his deputy, Kgalema Motlanthe.

Mr Vavi warned that the opposition would benefit if the movement went into the 2014 election with a divided house. His public indictment of the state was among the reasons a faction within the federation sought to replace him, but backed out, with him returning to the powerful position for a fifth term. The "emerging multiple crisis", he said, constituted crises in the ANC and in the state the crisis of inequality, poverty and unemployment and an emerging crisis of political legitimacy and disillusionment. "Because the ANC is the ruling party, any crisis inside the ANC goes straight to a crisis of the state. "A crisis in the state in which years of neglect, fiscal cutbacks and contracting out of state responsibilities combined with endemic corruption and a failure of political and bureaucratic leadership together render elements of the state apparatus increasingly ineffective or even dysfunctional," Mr Vavi said. "You can say whatever, but in our dictionary this is a crisis," he said to applause from delegates. During the debate, a provincial South African Democratic Teachers Union leader blasted the use of the word "crisis" reading the definition from a dictionary and urging the use of the word "challenge" instead, which he also defined for the congress. The old debate on Cosatus independence from the ANC re-emerged, with the National Union of Mineworkers saying some were attacking the ANC to "define their independence and class orientation". The South African Municipal Workers Union said it was "dangerous to portray the image that government and the alliance did not have the capacity to take the country forward", as this could be seen as "inviting a coup". 19 September 2012 Business Day Page 3 Carol Paton Vavi pins hope on Zuma claiming his Lula moment THE Congress of South African Trade Unions (Cosatus) alliance with the African National Congress (ANC) might be an old story, but key figures in the union federation are filled with optimism that new political conditions position it for a fresh bid to influence state power. Among them is general secretary Zwelinzima Vavi who for the past 18 months has been talking hopefully about SAs "Lula moment", a reference to former Brazilian president Luiz Lula da Silva, who distinguished himself during his

second term in office, turfing out corrupt ministers and implementing social policies that significantly raised incomes. Mr Vavi hopes President Jacob Zuma will do much the same if he is reelected at Mangaung. The problem is that Cosatu has placed its faith in the alliance before, only to emerge battered and disappointed, having fallen short of the radical economic policy changes it wanted. The federation has put the same strategy as it has at this Cosatu congress, forward before. This suggests that the way to secure influence over the ANC is to agree on a common programme to hold it to. But in 15 years of asking, the ANC has never so much as agreed to sit down and discuss it. Could things be different this time? One important difference is the magnitude of the crisis faced by the ANC today. Nothing made this clearer than the Marikana incident, which revealed quite suddenly a myriad of intractable problems lying under the surface. Most shocking of these was the ANCs loss of credibility among people who not long ago were willing to forgive the partys failings. The ANCs emerging legitimacy crisis and the ease with which mayhem and anarchy has been able to hold sway has deeply shaken the ANC leadership. And as Mr Vavi stated in his political report to the congress yesterday, only "credible leaders" will be able to do the political work necessary to restore the ANCs image and popularity. In the ANC, credible leaders are in short supply. Too many are implicated in corruption, or have got enormously rich while the poor have been left behind. Vision and leadership have also been sadly absent. While the ANC has, since its policy conference in June, begun to express a commitment to a second transition involving "radical change" emphasised by President Zuma in his speech to workers on Monday apart from suggestions for intervention in the mining sector there are no new proposals on the table. While clearly floundering for solutions to poverty, and to unemployment even less so, does the ANC have a way out of its own organisational crisis? It is too timid and its leaders have been too compromised to take the steps that would at least stem the corruption consuming it. This is where Cosatu hopes to step into the breach. And, goes the argument, growing desperation to find a way forward might just be enough to persuade Mr Zuma that it is time to have his own Lula moment. An agreement with Cosatu would be a way out of the crisis.

The way out, says Mr Vavis political report, would have to involve, among others, the following elements: measures to ensure the integrity of leaders and to regulate conflicts of interest; a radical economic shift, including in macroeconomic policies; a national policy on wages; and mechanisms through which the alliance could monitor decisions and direct government priorities. In his last attempt to get Mr Zuma to be "Lula" at Cosatu's special congress 18 months ago Mr Vavi named several high-ranking individuals in the ANC he thought should be fired. This was clearly a message to Mr Zuma. But both individuals John Block, chairman of the ANC in the Northern Cape and Nceba Faku, regional chairman of the ANC in Nelson Mandela Bay metro are still in their positions, a sign that Mr Zumas Lula moment could still be a long time coming. 19 September 2012 Business Day Page 4 Wyndham Hartley Government stands ground on unconstitutional chiefs bill THE controversial Traditional Courts Bill is manifestly unconstitutional and should be withdrawn from Parliament and rewritten, a range of civil society and legal organisations have insisted in public hearings before the select committee on security. In recent months the bill was roundly condemned by a whole host of organisations during provincial hearings. That was repeated yesterday in hearings before the select committee of the National Council of Provinces. It has been widely speculated that the bill is designed to get traditional leaders on board President Jacob Zumas campaign for a second term of office as leader of both the African National Congress and the country. The bill is deemed unconstitutional because it creates a different system of justice for rural people. It also disallows legal representation in the courts which is in conflict with the constitutional provision allowing all to have legal representation. Justice Minister Jeff Radebe recently intimated that the bill could be withdrawn following stinging criticism from Women, Children and People With Disabilities Minister Lulu Xingwana. That position now appears to have been reversed with the committee being told the problems with the bill should be fixed during the parliamentary process.

Ms Xingwana and a host of civil society organisations have criticised the bill as creating a second-class justice system for rural South Africans and for entrenching old apartheid bantustan boundaries. It is also claimed that the bill will further entrench gender inequality, because it will place the administration of traditional law in the hands of traditional leaders who are mainly men. Department of Justice official Jacob Skosana told the hearings that calls for the bill to be scrapped were largely based on claims that there was insufficient consultation with interested groups. He conceded this was true but said that reintroducing the bill in the National Council of Provinces was an attempt to broaden the consultation on the bill. Mr Skosana quoted Mr Radebe as saying that to scrap the bill would be to throw the baby out with the bath water but that Parliament and the courts had the competence to preserve the baby and throw out only the unwanted water. Mr Skosana also appeared to make a significant concession in suggesting that the authority of a traditional court should be vested in a traditional council and not in a single traditional leader. But the Alliance for Rural Democracy was not persuaded this would help because many traditional councils had not yet had the required elections, despite the Tribal Leadership and Governance Framework Act now being nine years old.