Contents
JZs strike silence spoke volumes ............................................................................... 2 Back from brink as SA apologises to Nigeria ............................................................ 3 In the ANC's crosshairs: New road map for coal producers ................................... 5 Avoid protectionism and implement urgent reforms ............................................... 7 Changes on ANC wish list ......................................................................................... 10 ANC to give land reform a shove.............................................................................. 11 ANC Womens League in disarray ........................................................................ 13 Vavi says ANC risks being overthrown ................................................................... 14 Proposals put ANC in labours firing line ............................................................... 16 Gordhan in labour law reform plea amid strike ..................................................... 17 Little to show for Seta funds Nzimande ........................................................... 18 Vavi breaks march date with Zille by SMS ............................................................. 20 Support grows for Cosatu national strike ............................................................... 21 'Life of hell' under Bheki Cele .................................................................................. 22 ANC 'holy cows' emerge ............................................................................................ 24 Zuma's lawyer and the mega tender ........................................................................ 26 Vavi takes his toll on the ANC .................................................................................. 29 ANC and Cosatu agendas take centre stage ............................................................ 32 Fund did get preference Cele ............................................................................... 34 Constitutional Court post to be re-advertised ......................................................... 35 Malema rivals on ropes ............................................................................................. 36 Sisulu seeks to gag MPs on air force ........................................................................ 37 State mining company comes closer to reality ........................................................ 39 Cele identified building, Hlela tells inquiry ............................................................. 40 New research fails to find proof of child-grant abuse ............................................ 42 Spin and hysteria cloud ANCs dramatic changes ............................................... 43 DA shocked at ANC draft proposals to change constitution ................................. 45 ANC vows no change to Reserve Banks brief ........................................................ 47 Its simple: just slap another tax on mining industry ............................................. 48 Vavi shuns ANC executive again despite Zuma call ............................................... 52 Respect ANC disciplinary process: Sexwale............................................................ 53 State bodies squander billions without internal auditors ....................................... 54 Mandela grandson to face charges by Aurora liquidators..................................... 56 Unions, managers demand probe at Armscor ......................................................... 57 Youth leader says he learntmadness from ANC elders ....................................... 59 Justice Minister sticks to his guns ............................................................................ 61 Dodgy firm hosted ANC ............................................................................................ 64 A role model Malema should have heeded .............................................................. 66 Power grab is thinly veiled by these soothing words .............................................. 68 League treasurer survives censure ........................................................................... 70 Cele hires top lawyer for inquiry.............................................................................. 71 ANC could lose power Mchunu ............................................................................. 72
At the head of this retreat was Mr Zuma himself, who did not utter a word on the strike. In other words, the government removed from the field its most powerful weapon in the communications war, either voluntarily or because the weapon decided he did not want to fire. With no heavy artillery, the battleground was quickly overwhelmed with specious arguments, misstatements and meaningless cant by the other side, which in this case included the odd alliance of between the ANCs main political opponent, the Democratic Alliance, and Cosatu. In the greater scheme of things, the strike was a skirmish in the longer war, and perhaps this is why the ANC failed to rise to the challenge. Some also argue Mr Zumas silence was strategic, especially as he needs Cosatu to win re-election as ANC leader in December. If so, it merely illustrates how wide the gap between the national interest and the presidents interests has become. The fact is, it is a concern for the party as much as anyone else that the ANC appears to be losing its ability to connect with ordinary South Africans. This gap is quickly being filled by extremists and sector al interest groups. 9 March 2012 Business Day Page 1 Natasha Marrian and Sam Mkokeli
Mr Ebrahim said he hoped the incident would not affect relations permanently. Nigeria had demanded the apology. The climbdown follows heated comments by Nigerian officials earlier this week. They condemned SAs "disrespectful" attitude before applying reciprocal foreign policy by sending back South African travellers. "I find the action as totally unfriendly and un-African. "They should know that they do not have a monopoly of deporting travellers," Nigerias Foreign Minister Gbenga Ashiru said on Tuesday. "What you see playing out is xenophobia by South Africans against all Africans, not just Nigerians, including even those from their neighbouring countries." Relations between Pretoria and Abuja have been strained in recent years, with clashes in their country-to-country dealings, and differing positions on key questions of continental politics and diplomacy. Last years election in Cte dIvoire, in which SA proposed mediation between the winning and losing candidates, highlighted stark differences in their approach to regional questions and contrasting visions of the spread of democracy on the continent. At a social level, relations between the countries nationals are also not always cordial. Nigerians living in SA complain of xenophobia and rough treatment by police and immigration officials, and of being associated with crimes such as drug trafficking and money laundering. There has long been tension over what are known as 419 scams believed to have originated in Nigeria in which fraudsters often use SA as a base to lure foreigners with the promise of great financial rewards in return for an "investment". Nigeria also failed to back SAs bid to install Home Affairs Minister Nkosazana Dlamini-Zuma as the new chairwoman of the African Union (AU) commission. Instead it supported the incumbent, Jean Ping, in his failed bid to get another term, an outcome which nonetheless proved a setback to SAs broader continental aspirations. SA is also opposed to the idea, backed by Nigeria, of a Central Bank of Africa, in terms of which the AU would take over the responsibilities of an African Monetary Fund and establish a single currency by 2028. However, there remained "big questions" over whether the certificates the Nigerian nationals had presented at OR Tambo were fraudulent. Pretoria yesterday took responsibility for the deportations incident, although Mr Ebrahim said Nigerias reaction had been "knee-jerk". His department had decided senior officials should be consulted by immigration officers at the airport before acting.
"We think that the Department of Health and our department should have been consulted to see how we could have handled it," he said. Department of Health officials said immigration officers at OR Tambo were not totally satisfied with the Nigerians certificates. Health department spokes-man Fidel Radebe said the officials found there was something "amiss" with the vaccine certificates, and concluded it was in the interest of the publics health to deport them. He said there was no question of Nigerians being targeted. "They could have been from Congo or anywhere else." A researcher in the Institute for Security Studies African conflict programme, David Zounmenou, said the acrimonious relationship between Africas economic powerhouses could undermine progress on the continent. Dr Zounmenou said the latest incident pointed to a "serious rift" between the two countries. The growing animosity had to be curtailed as both countries stood to lose from continued tensions. Exports to Nigeria grew from R185m in 1999 to almost R11bn in 2007, he said. South African companies such as MTN, Standard Bank and Shoprite had a strong presence there. High-level contact was needed between Nigerian President Goodluck Jonathan and President Jacob Zuma , said Dr Zounmenou. The honorary CEO of the SA-Nigeria Chamber of Commerce, Dianna Games, said it was good that Pretoria moved quickly to apologise as demanded by the Nigerian government. However, it was important for officials in both countries to be circumspect, as the relationship with Nigeria was uneasy. "It doesnt take much for (a diplomatic row) to blow up into a bigger issue," she said. Officials in both countries needed to learn from this. Nigeria was important to SA, and was the biggest source of visitors to SA from within Africa. 9 March 2012 Mail & Guardian Lynley Donnelly
allocation of Transnet export rail or port terminal capacity to coal exporters only once local power needs have been met at "cost plus a reasonable return". The proposals are contained in a full-length draft of the party's policy discussion document on state intervention in the minerals sector, posted on the ANC's website. They include the concessioning of select power plants to consortiums of coal producers and electricity consumers under certain conditions, such as: The expansion of capacity for supply to Eskom; The supply of the expanded capacity to Eskom at cost plus 12%; An annual concession fee to Eskom to compensate it for the revenue forgone, plus an additional premium; The employment of all Eskom power plant staff with a five-year moratorium on retrenchment and the servicing of pension, health and other commitments; and The direct supply of third parties with Eskom's agreement on nondiscriminatory, cost-plus terms. The recommendations are a response to the critical issue of South Africa's reliance on coal for electricity generation and the host of problems this reliance has begun to exhibit, according to the report. Eskom has for some time highlighted its concerns about securing longterm coal contracts needed beyond 2018 and the roughly R100-billion new investment required in coal mining to ensure its future coal needs are met. The utility has also come up against competition from export markets. Demand from countries such as India and China has resulted in supplies traditionally reserved for Eskom being sold internationally at more lucrative prices. Rising input costs could have an impact on Eskom's tariffs at a time when the utility has been asked by President Jacob Zuma to find ways to curb its tariff increases. The document says problems range from Eskom's inability to secure sufficient coal, arising "from a conflict between the mining industry's need to exploit lucrative international markets", to "concerns over the quality and price of coal that is supplied to the energy utility". Such practices, it notes, "have prompted Eskom to seek the introduction of mechanisms such as price controls, quotas on exports and restrictions on the exports of the types of coal used by Eskom". Eskom spokesperson Hilary Joffe said the company was still studying the document, but it welcomed the debate and would give input on the matter where appropriate.
There have been calls from "some quarters" to get the department of minerals to declare coal a strategic mineral, which would allow it to apply certain conditions on the production, storage and use of coal, the document says. Although these calls have yet to be formally considered, the issues need to be addressed, given that the demand for seaborne coal is "at an all-time high, a trend that is set to continue for years, if not decades". It is not "difficult to appreciate the continued tension between the local mining industry supplying the lucrative export market over Eskom". The state would, however, have to strike a balance between increased regulation "which might create its own problems" and allowing exports of coal that bring in foreign currency to South Africa, it notes. But the document emphasises the need ultimately to wean the country off its reliance on electricity from coal, pointing to power generated from potential shale gas resources in the Karoo. Early "guesstimates", it says, indicate that there could be enough gas to replace the build of coal-fired plants with gas through closed-cycle gas turbines. The state, through the ministries of mineral resources, energy, public enterprises, environmental affairs and trade and industry, should assess the viability of this option. The document stresses that exploration and evaluation for their exploitation. It "already been allocated to the shale gas areas should be reserved for by the state to deliver the optimal strategy notes, however, that large areas have Shell and a few other companies".
Another option is tapping into the natural-gas reserves of countries such as Mozambique, Angola and Tanzania, but it needs to take into account questions of regional integration. The document also recommends the further exploration of the viability of imported hydropower from the Southern African Development Community.
7 March 2012 Business Day Page 12 Pravin Gordhan and Wayne Swan
Despite a rebound in global gross domestic product growth to about 5% in 2010 and robust growth in developing countries last year, the recovery has failed to deliver a significant improvement in global employment levels. Annual global job creation is about 20-million below pre crisis levels. As a result, employment growth has been insufficient to reverse, or even dent, the labour market slack built up as a result of the global recession. With the global recovery looking increasingly fragile, future employment prospects are disheartening for many. Of particular concern is the disproportionate cost borne by young people and the less skilled. The Organisation for Economic Co-operation and Development has shown that youth employment declined by 10% between 2007 and 2010 and low-skilled employment dropped by more than 9%. Youth unemployment rates in some countries are as high as 50%. For the young, the effect of starting their working life unemployed can last a lifetime and is associated with poverty, crime, violence and a loss of morale. For society, it means lower growth, political disengagement and even unrest. SA is no exception. After a period of rapid job losses, about 520000 jobs were created between September 2010 and December last year. This has not been enough to make a serious dent in unemployment, which remains unacceptably high at 23,9%. This backdrop provides a stark reminder to Group of 20 (G-20) f inance m inisters that efforts under the Framework for Strong, Sustainable and Balanced Growth are ultimately directed at creating jobs. The success of the G-20 in the eyes of many will largely be judged by the contribution it makes to creating jobs. From Pittsburgh to Cannes, G-20 l eaders have reiterated their commitment to put jobs at the heart of the recovery. The creation of jobs must not only be a key focus of the G-20, it must be seen to be so. The global policy-making community faces a number of choices in how to promote faster job creation. There is pressure for greater protectionism to "keep jobs at home". Superficially, this road may be tempting, but history has taught us that it is likely to lead to lower growth, lower employment and the possibility of recurrent crises. The better option is to work collectively and collaboratively to implement reforms and measures that will grow our economies, expand trade, increase investment and deliver jobs. Credible structural reforms particularly of labour and product markets combined with targeted fiscal investments can provide lasting benefits to our economies and boost jobs now. This is the path that can help lift people from poverty and improve living standards for all. The framework should provide the basis for implementing the reforms needed to boost growth and job creation as well as enhancing development outcomes. The most conducive environment for maintaining employment is one in which a governments fiscal position is, in the long run, sustainable and financial systems are stable. The immediate challenge we face is ensuring the current situation does not deteriorate. Commitments to sustainable medium-term fiscal policies and secure financial systems will provide the platform for improved growth and employment. Credible policies that deliver medium-term fiscal consolidation and sustainability will
facilitate growth and maintain access to public debt markets. Shifting public spending towards socioeconomic priorities including infrastructure investment and job creation will raise the rate of potential output growth in the longer term and support stronger investment. Unsustainable fiscal policies place question marks over private investment returns, discouraging growth and jobs. We need to establish adequate firewalls to prevent contagion from the current euroarea sovereign-debt and banking crisis. We also need to maintain our commitment to improving financial stability. All these measures are essential to boost confidence in the global financial system. While sustainable fiscal policies and secure financial systems are necessary, they are not sufficient to stimulate growth in jobs. They forestall worse outcomes but would still leave too many unemployed for too long. Given the scale of the unemployment challenge, no single policy offers the solution. There is no panacea, no silver bullet. What is needed is a comprehensive set of reforms that maximise job creation. Product-market reforms can improve the demand for labour quickly, through facilitating and encouraging new firm creation, firm expansion, the growth of new industries or the revitalisation of old ones. They can also encourage higher investment and boost productivity, which in the long run will lead to sustainably higher employment and incomes. Labour-market reforms can directly improve employment by providing flexibility and the right incentives to work, hire workers, develop skills and become more productive. Employment outcomes can be further enhanced through active labourmarket policies that improve job search, job matching, training and entry into the labour market. In countries with skills shortages, it is crucial to implement reforms to improve the quality of education and skills development. Of course, there must be a credible and sustainable safety net and social protection systems for those unable to adapt or who are in weak bargaining positions. This is particularly the case in emerging markets and developing countries, where poverty remains high and income support needs to be targeted at those who need it most. We must not step away from commitments to the rights of workers. People should not be seen as simply commodities in a free market for labour. The design of these systems is critical and can also contribute to improved labour outcomes through influencing the incentives to work and formal employment. There is also a role for sensible fiscal investments for countries with the available fiscal capacity to do so. Particularly beneficial is spending, which can provide longrun productivity benefits and raise the rate of potential growth. Spending on infrastructure, education and skills development, or appropriate tax reforms, can assist in boosting current demand while also enhancing the structural shifts in the world economy. It is the responsibility of the G-20 to show leadership. We must work together and ensure we make the right policy choices. We must implement the reforms needed to boost confidence, lift growth and create more employment opportunities for all. We
must avoid the mistakes of the past in resorting to protectionism and delaying reforms. And we must make it clear to all that our collective policy action is focused on the issue that matters to people jobs.
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ANC national executive committee member Ngoako Ramatlhodi caused a legal and political storm late last year when he wrote in The Times that South Africa's constitutional framework reflected "a compromise tilted heavily in favour of forces against change". This was followed by comments from a number of other ANC leaders who questioned the powers of the Constitutional Court, with some stopping short of accusing the judiciary of being anti-ANC and the government. Last month, President Jacob Zuma further muddied the waters when he called for the powers of the Constitutional Court to be reviewed. His office later argued that Zuma's comments had been taken out of context as he was merely repeating the cabinet's statement that it was a review of how the court's decisions had impacted on social transformation over the past 15 years. Justice Minister Jeff Radebe will this week release a document detailing the terms of reference for this judicial review amid fears among opposition parties and the legal fraternity that the government intended to reduce the Constitutional Court's powers because it was not happy with some of the decisions that went against the cabinet. At the release of a discussion document on the review on Monday, Radebe denied that the government had such intentions. "The constitution is an embodiment of the values that the ANC stood and fought for. The ANC-led government will defend these values at all cost, including the independence of the judiciary and the rule of law, which are the bedrock of our constitutional democracy," Radebe said. 4 March 2012 Sunday Times Page 4 Sibusiso Ngalwa
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to distort the land market through inflating the prices of land earmarked for restitution. This has the dual effect of making land reform expensive and, indeed, delays the process of increasing the access of the poor to land." The ANC has made several proposals to remedy matters, including establishing the committee, which will be an autonomous structure reporting to Rural Development and Land Affairs Minister Gugile Nkwinti. The committee, which would consist of political appointees and stakeholders in land issues, would also submit regular reports to the minister. The ANC has proposed that the land committee "will have the power to subpoena anyone and any entity, private and public, to appear before it and answer any questions relating to its land-holding or land interest ... [inquiries] about any land question out of its own initiative or at the [request] of interested parties. [It can] verify and/or validate, invalidate individual or corporate title deeds ... demand a declaration of any land-holding, with all the necessary documentation relevant to such a declaration, grant amnesty and/or initiate prosecution, whichever case might be, at its own discretion and seize or confiscate land gotten through fraudulent or corrupt means." The committee will advise the minister, conduct research and develop guidelines on land management. Land reform has caused tensions between the government and interest groups, particularly farmers, with plenty of finger-pointing about who is to blame for the failure of the programme. Another proposal is for the creation of the office of land valuer-general, who will determine land prices. According to the document: "The institution will ensure the provision of fair and consistent land values for rating and taxing purposes, determine financial compensation in cases of land expropriation, under the Expropriation Act or any other policy and legislation, in compliance with the constitution. "[It will] provide specialist valuation and property-related advice to government; norms and standards and monitoring service delivery ... undertake market and sales analysis, set guidelines required to validate the integrity of the valuation data and create and maintain a data-base for valuation information." Most expropriation deals collapse due to disputes over evaluations. Discussion documents are not final, as they have yet to be examined by the branches, which could either accept or reject the suggestions. 4 March 2012 The Sunday Independent Page 9 Gcwalisile Khanyile
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The Sunday Independent spoke to league leaders from Mpumalanga, Western Cape and KwaZulu-Natal and Gauteng. Some denied there were problems in the organisation but others privately confirmed the league was in a bad state. The league in Gauteng has accused the national leadership of incompetence, tampering with audit reports and running the organisation like a spaza shop.
9 March 2012 Business Day Page 3 Sam Mkokeli
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"The Eastern Cape department of basic education has been receiving qualified reports from the auditor-general since 2005. This simply means the education department in this province, much like all others, is haunted by a reality of financial mismanagement," he said. The Eastern Cape was not alone in mismanaging its departments. Nationally, only three out of 39 departments had received clean audit reports. Mr Vavi said that unions were criticised for failing students when material conditions made it difficult for teachers too. "Comrades and friends, let me emphasis e that we simply cannot expect teachers to produce miraculous results in this kind of situation. This is more so since this bleak picture is also replicated in the working environment for thousands of teachers in this province." ANC spokesman Jackson Mthembu said yesterday that the party would respond to Mr Vavis statements at a later stage. "We cannot lead with anger," he said.
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The paper has nothing to say about the inefficiency that characterises the SOE sector. Instead, it dwells on acquiring additional resources for what will remain, if unreformed, a vast patronage machine. The government must "create a regulatory environment" to allow development finance institutions and SOEs to access private and public retirement and life assurance funds. A proportion of workers savings should also be extracted and devoted to whatever "additional strategic investment programmes" ministers may identify. The general policy paper of the economic transformation committee offers a more pertinent analysis of the economic crisis and the dynamism of the Chinese economy. It fails, however, to register fully that SAs much decried traditional trading partners in Europe continue to be responsible for the bulk of foreign investment in this country. The drafters eccentrically propose a new "commission" to offer all unemployed higher education graduates jobs in the state. They then leave delegates to decide for themselves how to double electricity generation by 2028, reduce carbon emissions, and beneficiate uranium, all at once. (The correct answer, dummies, is French nuclear power stations paid for by loans from Chinese state banks.) The committee also bravely bites the bullet of "critical skills retention" in the public sector, arguing for higher pay for doctors, lawyers, accountants and "specialist teachers" but "without having to pay the entire public service more". This proposal, when set alongside plans to loot private-and public-sector pension funds, may result in further confrontation with organised labour.
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"Labour market reforms can directly improve employment by providing flexibility and the right incentives to work, to hire workers, develop skills, and become more productive," he said. The Treasury said the reforms Mr Gordhan was advocating included reducing red tape for small companies and introducing policies to improve job searches, job matching, training and entry into the labour market. He also supports a proposed youth employment incentive one of the measures Cosatu opposes. The federation wants a ban on labour brokers, which it says exploit temporary employees. Mr Gordhans op-ed piece is based on a paper he and Australian Treasurer Wayne Swan submitted at a Group of 20 meeting in Mexico last month. His remarks appear to support some relaxation of labour regulations. This is out of step with proposed amendments to labour legislation, which analysts warn will make the market more rigid. The Basic Conditions of Employment Amendment Bill and the Labour Relations Amendment Bill have been finalised after two years of debate between business, labour, civil society and the government. The bills, which go to Parliament later this month, will compel employers to make temporary staff permanent after six months. They also regulate labour brokers, rather than ban them. "Its not simply labour market flexibility that promotes job creation but the fact of the matter is its a major contributor," labour consultant Tony Healy said on Tuesday. "Deregulating labour legislation will help get those unemployed who are not getting a foot in the door the opportunity to generate income and build an experience base that will increase their marketability." South Africas jobless rate stands at 23,9%, with about half of its young people unemployed. 7 March 2012 Business Day Page 1 Linda Ensor
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He says the Setas are not giving the government value for money, with the boards and management members enriching themselves. But the Setas say he is usurping their powers and overstepping his authority. The R37,5bn spent comes as the economy is struggling to achieve higher rates of growth, in no small part due to the dire shortage of skilled workers. Mr Nzimande, who is trying to transform the Seta system, criticised "parasites" who had fleeced the system to make themselves "filthy rich". He told the portfolio committee on economic development that part of the reason for the resistance by the Setas to his attempted reforms was because "this thing has become a money maker". The R37,5bn sunk into the Setas over the past 11 years was money "going down the drain with no accounting", Mr Nzimande said. At the same time that all this wastage was taking place, there was a "ticking time bomb" of youth unemployment, he said. Another major problem of the Seta system was the poor quality of the training provided. The state aims to produce 10000 artisans annually by 2015, and Mr Nzimande said the indications were that the target would be surpassed. In total, 30000 trainees would be registered by 2011-12 to pursue artisan trades. The government was also determined that state-owned enterprises would become sites of intensive training, as was the case in the apartheid era, when the principal mandate of state companies such as Sasol , Iscor, Eskom and the railways was to train artisans. Mr Nzimande said this system unfortunately disappeared along with the increased emphasis on the commercialisation of state-owned enterprises, one of the biggest casualties of which was skills development. Most state-owned enterprises did not focus their budgets adequately on this, he said. "We need to reinstate this mandate (skills development) of state-owned enterprises." Local companies unlike their foreign counterparts, which understood training to be part of their core mandate and used their own money for this were not offering training, though they complained about the lack of output from universities. Mr Nzimande said the state should provide more learnerships and that no government tender should be issued without a commitment to provide training on the project. He said his department would this month start on a major skills audit with the Human Sciences Research Council and other research bodies to collect data on the skills, qualifications and experience of the population, which would take many years to complete. The database would help to identify skills shortages.
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The official opposition joining hands with Cosatu, an African National Congress ally, in protest against the government is not likely to go down well with the ruling party, particularly at a time of tense relations within the alliance. 7 March 2012 Business Day Page 3 Alistair Anderson and Amanda Visser
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He warned that the level of protests in SA meant the country was on rating agencies watch lists for a sovereign downgrade. Workers will march from the Johannesburg Library Gardens to the labour department, the Gauteng premiers office, the Chamber of Mines and the finance department to deliver a memorandum. Unions said there would be strikes by essential services workers, but they had agreed to abide by the minimum service level agreement, which ensures essential services such as hospitals, laboratories and water and electricity services will be able to operate with skeleton staff. South African Democratic Teachers Union spokesman Nomusa Cembi said yesterday that union members would go on strike, despite calls for teachers to refrain from doing so. Ms Cembi said school governing bodies were informed of the action two weeks ago and had time to put measures in place. The Democratic Alliance had planned to join the march, but only in protest against etolling. The march was also supported by the Congress of the People, the Pan Africanist Congress and the Black Sash. Union Solidarity appealed to those who were unable to take part in the march to hoot every time they drove through a highway tollgate between today and Friday. 7 March 2012 The Times Page 2 Chandr Prince
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"The whole thing was stressing me out. I could not sleep properly. "This thing has affected my health badly," said Hlela. But it was during day two of the inquiry in Pretoria yesterday that Hlela revealed how he and Cele did not enjoy a collegial relationship after Cele took command in August 2009. Hlela told inquiry chairman Judge Jake Moloi how Cele wanted his office and kicked him out, only for it be left vacant for a year and for Cele to move to another building. "When Cele took over ... he didn't speak to me. He sent a deputy to me to tell me that he wanted that office. He never even occupied it and left for another building." Hlela, who had been a police officer for 31 years, said the pressure from Cele and the drama around the lease deals forced him into requesting early retirement. "I was not intending to leave the police force at 55 years. I felt very [un]comfortable." Hlela admitted to Maleka that he told Cele that "I want to go and relax with my family" as the reason for opting out of the police, but in earlier reports he said he was forced out for questioning the lease deals. Hlela had, throughout a public protector investigation, maintained that Cele flouted procurement procedures and instructed that two buildings be leased at inflated costs to house the police top brass. But yesterday, he conceded that he flew to Durban to assess the Transnet building, though procurement processes dictate otherwise. Hlela confirmed that SAPS responsibility in procuring premises limited him to doing a needs analysis and to ensuring that a budget was available. The specifications would then be handed over to public works who would send it out for tender. "I was put under severe pressure to put the leases in place. He [Cele] phoned me several times." When asked why he never raised any objections either in writing or verbally about his problems with the processes followed to acquire the buildings, Hlela only said: "I didn't." But he later said: "He phoned me several times. He was fuming. I explained to him that I'm not dealing with leases, but that the department of public works is ... I was in extreme discomfort." When told that Cele would deny that he identified the Middestad building in Pretoria or that he instructed Hlela to procure the building, Hlela responded: "He will not be telling the truth. He will not be truthful." The inquiry will enter its third day today, but it has been two years of a tit-for-tat war since the exposure of the lease scandal in 2010.
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In February last year, Cele claimed that Hlela defied a September 2009 management instruction to source police uniforms from BEE and public-private partnerships. He instead extended the contract with an unnamed supplier to 2013. Cele claimed that Hlela violated "serious" procurement procedures when he entered into a R1-billion contract with an Eastern Cape company. He refused to reveal details of the contract. Cele also said Hlela "went beyond" specifications on equipment bought for the 2010 soccer World Cup. Hlela, at the time, said he would not be made the scapegoat of the saga. He said yesterday: "I'm glad it's all over now." He also revealed that he had recently registered a security company. "I will concentrate on that now that this is over. I get frustrated from doing nothing," said Hlela, who travels to his home town of King William's Town in the Eastern Cape once a month. 7 March 2012 The Times Page 15 S'Thembiso Msomi
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It further argued that though the constitution largely encapsulated what the party had stood for over the years, aspects of it were based on "sunset clauses" that had to be included to allay the fears of the then ruling National Party and minority groups.
"There may, therefore, well be elements of the constitution that require review because they may be an impediment to social and economic transformation, such as the narrow mandate of the Reserve Bank or the relationship between, and powers of, different spheres of government," the drafters wrote. But in the version released for public comment this week, all references to possible constitutional amendments have been removed. Also excised the discussion document is a potentially provocative debate over the ruling party's relationship with coloured voters. In the February version, the drafters asked whether - 18 years into democracy - it was still adequate for the party to describe its historical mission as the liberation of "Africans in particular" and "blacks in general". "There are some in the coloured communities who questioned them being lumped together as part of the 'national minorities' when their socioeconomic profile today remains closer to Africans than to Indians and whites. In addition, the question of origin also comes to bear - with coloureds not seen as African enough [and many in the community not regarding themselves as such] despite many now laying claim to San, Khoi and Nama ancestry." The drafters further pointed out that the party's electoral support in this community is on a decline. "Given these trends, the search for explanations must go beyond [the] DA's behaviour in the Western Cape and the ANC's organisational problems in that province," they wrote. It is unfortunate that the ANC's national executive committee has deemed the two issues to be too sensitive to be openly discussed. There is clearly some discomfort within sections of the ruling party about the current constitutional arrangement. Very senior ANC and government leaders have, on numerous occasions, expressed similar sentiments as the drafters of the February version about the Constitution hindering transformation. But, perhaps fearful of a backlash from an increasingly suspicious public, the ANC's national executive committee decided not to open this debate. Doing so, though, would have been hugely beneficial to both party and country. The ongoing uncertainty about the constitution's future - arising from the criticism of the basic law of the land that keeps coming from certain quarters within the ANC - is unhealthy.
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By opening up the debate within its ranks and resolving the issue once and for all, the ANC would have ended all this uncertainty and done us all a great favour. Another "holy cow", judging by its absence from the discussion documents, is the question related to the quality of ANC leadership. In its ANC birthday message on January 8, the party's national executive committee promised a review of how internal party elections were to be conducted in future. "This will protect the ANC from the tyranny of 'slates, factions and money' and ensure that at all times, the organisation is led by the most experienced, most committed, most talented and best collective across generations," it promised. Despite it being clear to everyone that the lack of new and relevant rules governing how ANC elections are conducted is at the heart of ongoing party squabbles - and the appointment of unsuitable cadres - the ruling party has not seen the wisdom of reviewing its voting process. There is no greater opportunity than now for the ANC to debate the pros and cons of allowing those who want to stand for party elections to campaign openly for the posts they seek to occupy. After all, as ANC policy head Jeff Radebe put it on Monday, the period leading up to the June conference should be a "festival of ideas".
9 March 2012 Mail & Guardian Craig Mckune
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suits with Cash Paymaster Services and then switching to a new role in which he earned R21 000 per day for providing "commercial, financial and legal advice" to the agency. Apart from any questions this may raise about the role his political connections may have played in securing such lucrative work, it might be regarded by other bidders as evidence that the award of the tender to Cash Paymaster Services was influenced by the perceived need to settle with the company. His involvement was revealed in a court affidavit filed this week by Allpay. Conflict of interest Further concerns about the tender, one of the biggest awarded, are revealed by Mail & Guardian investigations, which show that the chair of the bid committee, National Development Agency chief executive Vuyelwa Nhlapo, was in a business relationship with Cash Paymaster's key black economic empowerment (BEE) partner, Mazwi Yako, as recently as 2010. She failed to declare this obvious conflict of interest -- although it has been claimed that the connection between the two was "tenuous". She has also been accused of "irrationally" lowering AllPay's scores to Cash Paymaster Services' benefit. This is among several hard-hitting claims in AllPay's affidavit, made by general manager Charmaine Webb. The company is seeking to have the Cash Paymaster Services' contract, for the distribution of social grants in all nine provinces over five years, set aside. Webb claims the bid documents show that the process followed by Sassa in awarding the contract was "very deeply flawed". Cash Paymaster Services, wholly owned by the South African-based but United Stateslisted multinational Net1 UEPS, was awarded the contract in January following a stop-start tender process already dragging on for five years. For the past 12 years the company, AllPay and Empilweni Payout Services have held provincial contracts for the payment of social grants. These were to be centralised after the formation of Sassa in 2005, but an early iteration of the tender was cancelled in 2008 because, in the words of Arendse, chair of the then-adjudication committee: "The evaluation process was completely and utterly flawed." Cash Paymaster Services is suing the agency over the cancellation. In February this year, after AllPay withdrew its initial urgent attempt to interdict Sassa from implementing Cash Paymaster Services' appointment, the agency agreed to share "all" bid documents with AllPay. Webb claims Sassa gave them a "highly filleted" record devoid of key documents, including those relating to Hulley. Having requested further information, Webb said Allpay was given Hulley's letter of appointment, which stated his role was to provide "commercial, financial, legal and operational advice" on the tender. Startling
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But Serge Belamant, chief executive of Net1, offered the M&G a wholly different and startling explanation of Hulley's role. He said the lawyer had been brought in before the tender in an attempt by Sassa to settle various lawsuits Cash Paymaster Services had brought against it. "[Hulley] was given the task to manage the existing law suits that we had against Sassa, because we've got a lot of law suits against Sassa. His job was to peruse them to see what was real, what wasn't real and could we get to a point whereby we should settle some of that." But, said Belamant, once the new tender was under way, "this entire investigation into the lawsuits was halted because they didn't want anybody to somehow infer that these lawsuits and their resolution had anything to do with a potential tender award." If true, it is remarkable that after investigating the possibility of settling Cash Paymaster Services' cases against Sassa, Hulley was drafted as an adviser on a tender the company later won. Now that it has won the tender, Belamant confirmed that it wanted to to settle with the agency. Hulley told the M&G he did play a role but referred further questions to Sassa. Department of social development spokesperson Lumka Oliphant said a decision had been taken by both the department and Sassa not to comment at all. At the heart of AllPay's attempt to have Cash Paymaster Services' contract reviewed and set aside is their claim that Sassa imposed an "eleventh-hour" change to the tender's specifications, fatally prejudicing their bid and favouring the winner. According to Webb, Sassa initially told bidders the identity and "proof of life" of beneficiaries should "preferably" be biometrically verified -- using fingerprints or voice recognition technology, for example -- for every single payment. This is important because, according to AllPay's bid, for ATM payments recipients would have accessed their money using a card and pin number. In Cash Paymaster Services case, grant recipients would phone a tollfree call centre, which would verify their voices before they drew money. In other words, it offered biometric verification for each payment and AllPay did not. Alteration But just five days before the bids were due in June, AllPay said it received notification "for clarification" from Sassa that biometric verification was "required" for every payment. Webb argued that this notice substantially altered the bid specifications, but Sassa denied this. In Webb's affidavit, she takes issue with Nhlapo and a second evaluation committee member, Wiseman Magasela, a director in the department of social development, who she says "irrationally" lowered AllPay's scores after an oral presentation in October.
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The oral presentations were an opportunity for bidders who had scored more than 70% in their written bids -- AllPay and Cash Paymaster Services -- to clarify technical aspects of their proposals. Webb says that after the presentation AllPay's score was lowered to 58% and only Cash Paymaster Services proceeded to the next stage. But, she says, Nhlapo and Magasela had substantially lowered AllPay's scores on issues that were not even discussed at the presentation. "Most astoundingly, Nhlapo halved the scores which she had allocated under 'financial security'," despite her committee later noting that, as an Absa subsidiary, AllPay carried "minimal" financial risk, Webb says. Increased score She adds that Nhlapo had increased Cash Paymaster Services' scores for each of the criteria after the presentation: "Put differently, the increase in [its] scoring was attributable solely to Nhlapo." Yako, through Born Free Investments 272, is a long-standing BEE partner of Cash Paymaster Services and Belamant confirmed he was a key player in the bid consortium. He and Nhlapo were on both on the board of Reflective Learning Resources until early 2010. Nhlapo said she never declared this to Sassa "because it just didn't ring a bell". She had not realised her former partner was part of the consortium. Yako also said he had not realised his former business partner was the committee chair. Mercia Smuts, Reflective Learning's founder, said she only remembered them meeting once. She believed their relationship was "tenuous". Oliphant said Yako and Nhlapo's relationship was not a conflict of interest. 9 March 2012 Mail & Guardian Matuma Letsoalo
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The strike action was seen as a political show of strength by the Vavi-aligned group ahead of the federation's national congress in June, the ANC policy conference, also in June, and the party's crucial elective conference in December. While Vavi continues to enjoy popular support among ordinary members of Cosatu he appears to have lost significant support within the federation's central executive committee, largely because of his hardline stance towards the ANC and the government under Zuma. Cosatu president not pleased with Jo'burg march Dlamini, who led a march in Durban, was critical of the way the Johannesburg march was conducted, saying the decision to go on strike was a collective Cosatu decision, not a Vavi initiative. And he lambasted the ANC Youth League for using Cosatu platforms to fight factional battles in the ANC after Julius Malema addressed the Jo'burg marchers on Wednesday. Malema stole the limelight as the marchers cheered: "Juju, juju, juju!" Although he was initially not on the list of speakers, Cosatu leaders were forced to afford him the opportunity to address the marchers, who impatiently chanted his name. Dlamini told the Mail & Guardian that Cosatu leaders had initially agreed that youth league secretary general Sindiso Magaqa, not Malema, would address the marchers. "People were desperate to get Julius to speak, in spite of the decision that the league's secretary general would speak," said an angry Dlamini. "That was out of order. Cosatu is not going to be used. We are going to discuss the matter internally. We cannot allow ourselves to be divided by the youth league. It disrupted the march. It came there to boost its situation in the ANC." Cosatu's top dogs no longer speaking Once a close ally of Zuma, Vavi has now become one of the key critics of the ANC president, while Dlamini has said publicly that Zuma should be re-elected. This has led to a breakdown of trust between Vavi and Zuma, who are no longer on speaking terms, according to reliable sources within the alliance. The M&G has been told about behind-the-scene attempts by a powerful section within the ANC's national executive committee led by ANC secretary general Gwede Mantashe to isolate Vavi from the rest of Cosatu's leadership . Mantashe has denied that he was part of a group that wanted to control Cosatu. "I left Cosatu in 2006," he said. "When I was there, I did not want anyone to interfere. So I would not do that now. We are not expecting Cosatu to be silent. We want it to be radical but reasonable." Mantashe criticised leaders for putting the integrity of Nedlac -- the chamber in which government, business and labour negotiate -- in question by going on strike while negotiations over how best to deal
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with the issue of labour brokers were still taking place. He said Cosatu was involved in discussions about e-tolling with the Gauteng government. "I know government made concessions in the budget speech," he said. "But Cosatu is bargaining from a corner where there is no space to make concessions. The ANC instructed the government to make concessions, but I did not see any concessions from the other part." A dominant group within the federation's executive committee is pushing for Zuma's re-election. It includes Dlamini, National Union of Mineworkers (NUM) general secretary Frans Baleni, NUM president Senzeni Zokwane, National Education Health and Allied Workers' Union general secretary Fikile Majola and the general secretary of the South African Democratic Teachers' Union (Sadtu), Mugwena Maluleke. Most of these leaders also serve as members of the South African Communist Party's central committee, led by general secretary Blade Nzimande and Mantashe, who is the SACP chairperson. Under Nzimande's leadership, the SACP has been widely criticised for its soft stance towards Zuma's administration. Although the Zuma-aligned group within Cosatu's executive committee enjoys majority support, it has found it difficult to impose decisions on the Vavi-aligned group, which includes metalworkers union (Numsa) general secretary Irvin Jim, Sadtu president Thobile Ntola and leaders of the municipal workers union Samwu. The Vavi contingent believes the ANC under Zuma has failed to implement the resolutions taken at Polokwane, including abolishing the labour brokering system and creating decent jobs in the country. The Vavi group is also pushing for radical policy change in the ANC and supports the ANC Youth League's call to nationalise mines and other key sectors of the economy. While SACP leaders, including Nzimande, joined Cosatu's march, the party does not agree with Cosatu's argument that the tolling system should be scrapped, saying tolls will affect only the wealthy. Speaking to the M&G this week, Sadtu's Ntola acknowledged a fight was taking place for the control of Cosatu because it was a significant factor within the alliance. "There is a tendency that when people pass policy, they want to be supported," said Ntola. "Cosatu is independent and should remain the instrument for fighting for the rights of workers."
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will lead the protest march to the office of Premier Nomvula Mokonyane, the Chamber of Mines and the transport and roads department. The Democratic Alliance (DA) in Gauteng will hold its elective conference on Saturday, set to be a two-horse race between a member of the Gauteng legislature, John Moodey, and DA MP Ian Ollis. DA leader Helen Zille and party parliamentary leaderLindiwe Mazibuko will address the conference to take place in Tshwane. More than 1000 delegates will vote for a leader to take the party into the 2014 elections in Gauteng, the countrys economic hub. The public inquiry into suspended police commissioner Bheki Cele s fitness to hold office, begins today. Gen Cele was suspended by President Jacob Zuma last year over two multimillion-rand lease deals for police office buildings. A report by Public Protector Thuli Madonsela said Mr Cele had acted unlawfully. Ms Madonsela may make a submission at the inquiry. It is unclear whether Gen Cele will make a submission or whether his legal team would do it on his behalf. The hearings will take place in Tshwane. In Parliament, committee meetings will include the SABC on the auditor-generals recommendations and progress with a Special Investigating Unit probe into finances at the broadcaster. On Wednesday the social cluster of ministers will answer questions in the National Assembly.
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of Judge Legodi could mean a more seamless transition for the Pretoria court. But commissioners might question Judge Legodi on whether he would be able to juggle the arms deal inquiry, to which he has been appointed, and his work as judge president should the two overlap. Only high fill open five candidates were short-listed for the North and South Gauteng courts, despite six vacancies. Recently, the JSC has struggled to vacancies in the Gauteng courts. In October a vacancy was left and in April only four out of six places were filled.
On the list for two spots on the Supreme Court of Appeal were Free State High Court Judge Shamin Ebrahim, Eastern Cape High Court judges Clive Plasket, Xola Petse and Ronnie Pillay and North Gauteng High Court Judge Brian Southwood.
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Hotly debated was whether to suspend Mabe or expel him after complaints about him were made by the league's KwaZulu-Natal regions. Fifteen NEC members wanted Mabe to go, 11 said he should remain and be given another chance and three said he should be reprimanded He, however, apologised to the NEC and will at today's press conference read out a statement pledging his support for Malema. The complaints were made after the league in KwaZulu-Natal launched a public attack on Mabe, claiming he was campaigning in their province to replace Malema. "Some wanted him expelled immediately but we decided to give him a chance to explain himself in a disciplinary hearing," said one source. Mabe has denied he went to KwaZulu-Natal to campaign, saying he was mandated by the league's national lekgotla to meet regional treasurers throughout the country to develop a fundraising strategy. Malema, league spokesman Floyd Shivambu and secretary-general Sindiso Magaqa on Wednesday unsuccessfully appealed against their suspensions for ill-discipline. Malema fared worst and was expelled, spurring a defiance campaign, also discussed yesterday. Part of the campaign, which will be further discussed at provincial and regional level, will be how to purge those who have not only been vocal against Malema, but have spoken out against the youth league.
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He would also have fielded questions about the state of the VIP transport squadron, which has been involved in a number of incidents. Ms Sisulu has frequently refused to answer parliamentary questions, saying the information was classified most famously when she refused to reveal details of President Jacob Zumas past flights on the grounds that it would compromise his security. When the committee met there was no sign of a delegation from the air force. Then committee chairman Sediane Montsitsi told the members he had received a letter from the minister, of which he read the contents. Ms Sisulu said "Section 199 (8) of the constitution requires that oversight of the security services should be done in a manner determined by national legislation or rules and orders of Parliament because the information required might be classified". "I would therefore require that you urgently provide me with the necessary legislative framework that would ensure the protection of the information made available to the joint standing committee on defence, so that I may authorise the South African Air Force to brief yourselves. Without this framework the air force would be in breach of the constitution and the Defence Act and unable to brief the committee." She added that the "challenges" facing the air force were very important and it needed the support of Parliament. "I therefore urgently need the (committee) to provide the necessary assurances of information security," she said. Mr Montsitsi suggested that the committee write to the speaker to request a closed meeting. The ANC used its majority muscle to push this resolution through, despite objections from Democratic Alliance MP David Maynier. He argued that committee sessions could only be closed if it was reasonable and justified in a democratic society. Mr Maynier said the onus was on Ms Sisulu to show that the information was classified and its disclosure would prejudice the operation of the defence force or the lives of serving members. He suggested a legal opinion be sought from Parliaments legal advisers. Lt-Gen Gagiano resigned late last year because of the problems in the air force. Ms Sisulu declined to accept his resignation and ordered him to return to his post but accepted the resignation of the directorgeneral of the Department of Defence, Mpumi Mpofu. Lt-Gen Gagiano resigned after taking responsibility for a mishap with a military aircraft that caused Deputy President Kgalema Motlanthe to miss a visit to Scandinavia. "He was informed that the best way of taking responsibility was not to resign, but to remain and sort out the problem. He accepted that his resignation was rejected."
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Lt-Gen Gagiano was admitted to hospital early in November with symptoms of stress. Some of the incidents which have plagued the air forces reputation include one in which a VIP aeroplane that it chartered developed technical problems as it was taking off from Waterkloof Air Force Base in Pretoria last month. Mr Motlanthe was on board the aircraft at the time. In September, the aircraft the deputy president was flying on to attend the opening of the Rugby World Cup in New Zealand missed its first landing slot. In 2009, his aircraft was forced to make an emergency landing while flying back from Libya. Then there were revelations that two pilots who flew Mr Zuma to the US earlier this year had been implicated in a failed coup in Equatorial Guinea in 2004. 9 March 2012 Business Day Page 2 Linda Ensor
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He said the government had tried to address the unions concerns by allocating R5,8bn to the South African National Roads Agency in the budget. He noted that taxis and buses would not have to pay the toll fees. "Government has made a decision and will proceed with it." On labour broking, Mr Chabane said the issue was under discussion at the National Economic Development and Labour Council and the government was confident that a "lasting solution" would be found. Chief director in the Department of Labour Thembinkosi Mkalipi said agreement had been reached on about 80% of the issues in the labour bills currently before the council. Mr Chabane reiterated the Cabinets "conviction that abusive labour practices should be prohibited". He also noted that the Presidents Co-ordinating Council (PCC) was concerned about the large number of officials who were suspended on full pay while other people had to be hired to do their jobs. The problem was due to the long period it took to finalise disciplinary procedures. The co-ordinating council urged authorities to restrict suspensions to situations where the official would interfere with an investigation. Mr Chabane said interaction between the government and the office of the auditor-general was needed "to ensure enhanced credibility of clean audits". The problem was that while a department might get a clean audit, it might not pick up corruption or maladministration. Systems had to be put in place to ensure that a clean audit really was an indication of sound financial management. Performance audits were also necessary to supplement financial audits of departments, Mr Chabane said. His comments follow the concern expressed by Transport Minister Sbu Ndebele in Parliament earlier this week about the fact that financial services group Deloitte had failed to pick up irregularities at the Road Traffic Management Corporation.
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Gen Hlela was testifying on the second day of the inquiry instituted by President Jacob Zuma in October into allegations of misconduct against Gen Cele over the procurement of office accommodation for the police. Last year, Public Protector Thuli Madonsela forced the termination of the R500m lease agreement for police headquarters in Pretoria, and another deal for headquarters in Durban. The board of inquiry would not re-investigate what the public protector had already scrutinised. Instead, it would seek to establish whether the police chief acted dishonestly or with an undeclared conflict of interest in relation to the two leases. The board would also examine his fitness to hold office and his capacity to efficiently execute his duties, chairman Judge Jake Moloi said at the beginning of the inquiry on Monday. In his statement before the board, Gen Hlela said he was put under severe strain by Gen Cele to finalise the leases of the Sanlam Middestad Building and Durbans Transnet Building. Gen Hlela told the board that one afternoon while driving home, Gen Cele called him and asked whether he (Cele) would get the two floors of the building he had identified. "He was fuming. I told him the Department of Public Works was dealing with the matter." Gen Hlela said the strain of the police lease after the publication of the public protectors report forced him to take early retirement. "Gen Cele will deny that he identified the Sanlam Middestad Building. He will tell the board he did not do so. He will also deny he instructed you to find the building for him," Gen Celes advocate, Vincent Maleka, told Gen Hlela yesterday. Gen Hlela said this was not true. When asked for his view on whether Gen Cele had efficiently discharged his constitutional obligation in combating and preventing crime, Gen Hlela said he could not comment. Mr Maleka also told Gen Hlela that he would argue that his claim that he had suffered severe strain after the publication of the public protectors report was an afterthought made to suit his testimony. Mr Maleka said Gen Hlela did not give reasons for his application for early retirement and did not tell the board he was under strain. Evidence leader Viwe Notshe thereafter asked for the inquiry to be postponed until Monday to allow his team to call Irene Nel, an official in the Department of Public Works KwaZulu-Natal office.
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Ms Nel has raised concern about noncompliance with supply-chain management prescripts in a planned lease for the Durban office. According to the rules, the police service was responsible for identifying the need for accommodation and ensuring that such needs were linked to budget plans. The department was responsible for procurement. Judge Moloi said the board expected the matter to be heard continuously until it was finalised. The board instructed Ms Nel to be at the inquiry today. 7 March 2012 Business Day Page 5 Karl Gernetzky
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Prof Patel said despite the majority of respondents saying the grant had positive economic effects, with 80% saying they were now better able to care for their children, negative perceptions about the grant continued, even among recipients. Of the homes receiving grants, 55% believed the grant money was not being used for its intended purpose, 45% said it encouraged teenage pregnancy, and 36% said it "makes people lazy". The centre warned that this "negative social discourse" over the grant stigmatised recipients, undermined childrens rights to social assistance and caused unnecessary fear that the grant may be stopped. Stephanie Brockerhoff, senior researcher at the Studies in Poverty and Inequality Institute, agreed, saying the grant suffered a huge "image problem" that was not borne out by research. "Research shows that the child support grant alleviates poverty and actually increases job-search activity," she said. Ms Brockerhoff said that given the structure of social grants, the nature of the grant, the amount, and how it was distributed needed to be revisited. "No one has actually sat down and calculated what it costs to raise a child," she said. Finance Minister Pravin Gordhan said in his budget speech last month that poverty and inequality in SA would be worse without social grants. Nearly 16-million South Africans received social grants, and spending on social grants would grow from R105bn in 2012-13 to R122bn in 2014-15, Mr Gordhan said. 7 March 2012 Business Day Page 13 Steven Friedman
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in general, the affluent in particular. The ANC is talking of a "second transition", by which it means that some sections of the constitution were inserted to mollify minorities and the well-off. The time to placate them is over and so changes to the constitution may be needed to ensure it can fight poverty and lead economic development. When we look at what constitutional changes are suggested, the "second transition" seems a great deal less dramatic than the first. The document is not proposing less independence for the Bank it suggests looking at its "narrow mandate". This means considering the argument that it should be charged not only with protecting the currency but with stimulating growth. This would not affect its independence: it would require it to consider a wider set of issues. On land, the document repeats a time-worn ANC view that "willing seller, willing buyer" does not work. It has been saying this for at least seven years and clearly hopes to negotiate some changes. But all it is saying is that the bargaining that has been under way for a while will continue. As for provinces, the documents say the ANC wants a "blueprint policy to underpin and guide the task of reforming, rationalising and strengthening" them to be devised by a panel of experts. So at some point we will have suggestions for change. No-one knows what they will be because the panel has not yet been appointed. None of the documents contains firm decisions. They are proposals for discussion that will be taken to the ANCs midyear policy conference and to Mangaung at years end. Even if they are adopted, they are not law or government policy until they pass through a process: some policies adopted at the ANCs previous conference almost five years ago have still not been implemented. Any changes it does adopt will look very different if they ever become law that is the way policy works in every democracy on the planet. So why these promises of major change by the ANC and commentators followed by modest proposals that might never happen? The ANC has realised it is under pressure to show disenchanted supporters and a wider public that it is not simply a vehicle for the connected to enrich themselves. It believes the best way to do that is to be seen to be planning major changes that will assist development and ensure a better life for all. The constitution is a handy scapegoat because blaming it enables politicians to insist that limited progress against poverty is not their fault but that of the compromises that had to be made to win majority rule. But most ANC strategists also know the constitution is not really the problem there is nothing the government could have done since 1994 to help us towards a more equal society that was prevented by the constitution. They also know the realities that produced compromises in the early 1990s have not disappeared minority interests still need to be taken seriously if we are to have growth and stability, and law and policy must reflect that. The obvious solution is to promise great changes to gain credibility and to plan only modest ones to preserve stability. The ANC is partly helped in this endeavour by opinion-formers, who are only too happy to blow out of proportion any change it
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suggests. Many ANC critics believe majority governments always tear up the constitution, crack down on opposition and confiscate wealth. This is simply prejudice but ensures that any ANC proposal to change anything is seen as a sign that Armageddon is coming. That is why, earlier this week, commentators were already analysing changes that are not proposed. All this makes working out what is really happening difficult. The only way to cut through the one sides spin and the others hysteria is to believe only that which appears in black and white in policy documents and to remember that any change that follows from them will not happen soon and will look different after it is negotiated.
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But yesterday, DA spokeswoman on justice Dene Smuts said the ANC was either trying to mask its own ineptitude or embarking on a phase which threatened "the very foundation of our constitutional state. It is notable that social and economic transformation is consistently cited as the justification for the proposed review of the Constitutional Court decisions and for the transformation of the judicial system as well. It is becoming clearer by the day that the ANC is contemplating a fundamental ideological shift." Ms Smuts dismissed the suggestion that the property clause in the bill of rights was a "sunset clause" in the constitution, emphasising that it "represents the full, final and exhaustively negotiated right of all South Africans not to be arbitrarily deprived of property as so many were in the apartheid era". She said the constitution already empowered the government to embark on an extensive programme of land reform. DA national s pokesman Mmusi Maimane said the constitution was the "product of negotiation, compromise and sheer common sense. It is the very embodiment of our rainbow nation. It is the real and lasting legacy of the Mandela era. "Giving the state the power to arbitrarily tamper with property rights, for example, will hinder our ability to grow our economy at the rate required to create jobs for the millions of unemployed people ... The DA will fight any changes to the constitution that take power away from the people and put it into the hands of politicians." AfriForum CEO Kallie Kriel said the ANC was "playing with fire" if it broke negotiated accords. "The ANCs breaking of negotiated agreements will lay the foundation for renewed polarisation in the country," he said.
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Speeding up land redistribution is at the centre of the partys plans to accelerate economic transformation. Land policy to be considered at the June policy conference mirrors that in the land reform green paper. The policy recommendations on equitable and sustainable rural communities express the partys confidence in the various institutions the green paper wants to be created to facilitate speedy sales and transfer of land to the state. These include a land management commission, a land valuer-general and a land rights management board, with local management committees. Some of the policy suggestions will require constitutional changes which the ANC cannot make without regaining its two-thirds majority in Parliament. On health, the party has suggested that the national government take over the running of "central hospitals" from provincial governments. The Democratic Alliance -run Western Cape is expected to fight to hang on to the Groote Schuur and Tygerberg hospitals, which would be affected if the takeover passed policy scrutiny. There is also a suggestion to allow the public to make use of military hospitals, wellequipped centres that provide high-level care to the defence force and senior leaders. However, there may be resistance due to the security sensitivities around opening up military health facilities. 5 March 2012 Business Day Page 12 Tim Cohen
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extended research document rather than the formality you might expect from a policy white paper, for example. Its main conclusions are to deride the notion of nationalisation, but propose a string of alternatives. The most significant of these are: the implementation of a "resource rent tax", of the same type recently imposed in Australia, but at a much higher rate; the creation of a state-owned mining company; and the fairly extensive revision of the now famous Mineral and Petroleum Resources Development Act. The report was greatly anticipated for its views on nationalisation, but oddly this highly charged topic was not really meaningfully grappled with in the text. In the final summary, the conclusion was essentially drawn that nationalisation would be costprohibitive, coming in at about R1-trillion, and that without compensation it would transgress bilateral trade agreements and would generally be disastrous. Hooray for that pretty obvious conclusion. But it is disappointing that the discussion of why state ownership had been so disastrous, is lacking in the report itself. It does not actually address that topic in any real way, other than expounding at length on the international trends, which have generally speaking been strongly away from state ownership over the medium term. It does, however, note the three main trends of recent years: that state ownership currently is between 90% and 40% lower than its peak level; that state ownership has increased recently from 22% in 2000 to 30% now; and that most of that increase is accounted for by the increased influence of Chinese state companies on the mining sector. But it does formulate an argument implicitly in favour of state-owned mining companies, which prepares the ground for the recommendation that SA should have a state-owned mining national champion in the conclusion. For example, it heaps praise on Chilean copper miner Codelco and cites the company as one of the "few and important" examples of successful state-owned mining companies. The others are LKAB, the Swedish iron-ore mine, Finnish miner Outokumpu and Botswanas Debswana. It notes that state-controlled national oil companies have become the norm internationally, but that state-owned mining companies have not been able to operate successfully, leading to privatisation. It then concludes, entirely wrongly in my opinion, that "the energy sector shows, however, that such poor performance is not a corollary of state ownership". It then lists a whole string of requirements for state-owned mining companies to be successful, most of which are absolutely correctly identified and are consequently extremely unlikely to exist in practice. These include having a knowledgeable and independent board; transparency; the need for constant reinvestment; and the need for politicians to understand the long-term nature of mining, and so on. But importantly, the report fails to explain why mining companies and oil companies are different, and why oil companies tend to succeed under state ownership and mining companies do not.
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This is a complicated topic, but at root I suspect the reason is pretty basic: drilling for oil is fabulously profitable, returns come fast, and (the industry is going to hate me ) it is comparatively easy. The oil industry also has the major advantage that it is very outsourced; many national oil companies are national in name only, and the people who do the actual drilling are companies such as Halliburton and General Electric. The oil industry also has a very effective supplier cartel at its disposal, which tends to support the industry in bad times not that we have had those in almost a decade. Oil is also mainly pumped in totalitarian states, or ones that often end up that way witness Venezuela and Iran. The point is that state ownership of the oil industry is absolutely not a reason to support a state miner; if anything, it is a reason to avoid establishing a state miner. Perhaps the most important part of the report is not what is explained, but what goes unexplained. The report ultimately suggests the imposition of a super-profits tax. So you might expect a detailed explanation of how it would work, some kind of economic model that supports it. In some ways, the tax does not seem like a terrible idea, particularly since it includes reducing the new mining royalty tax at the same time. The result, it might seem, would be to reduce the tax on mining turnover, thereby reducing the load on mining companies that are just getting off the start line, and increase it on those elements of the mining industry burning up the tarmac. Yet, and it is so disappointing, the report does not include a real attempt to grapple with the issue. The report suggests that the super-profits tax, called the "Resource Rents Tax", kicks in when a company earns a certain amount, but will be applied at 50%, and that it will be applied to the whole industry. The Australian tax which brought down the government and ended the car eer of former prime minister Kevin Rudd, applies only to the iron-ore and coal industry, and it is set at half the rate. Hence, the proposal is, frankly, for an onerous new tax. Why do the reports drafters think the industry will be able to take that kind of taxation strain, and simultaneously, beneficiate, do empowerment, pay carbon tax and do all the other things? We dont know. They dont say. WHY would a state-owned mining company succeed where private companies have failed? The ANCs study group uses some interesting, and controversial, examples to argue its point. Imbedded in the report are serious allegations against South African manganese producers, an implicit criticism of the ANC for allowing Anglo to move its listing to London, and a really vociferous attack on ArcelorMittal. These all have the common thread of justifying the creation of a state miner. How so? Well, at a fundamental level, the report really works on the basis that the mining industry has not and does not sufficiently beneficiate its product. A whole range of new weapons are therefore designed to bring the industry into line. But is this charge really justified?
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The main exhibit for the prosecution is the manganese industry, which the report claims has colluded in order to gain higher export prices, and consequently it not only wasnt interested in beneficiation, it was positively against it. "One of the beneficiation enigmas is manganese, where two-thirds of this high-grade resource is exported as crude ore, despite the next step (smelting to produce manganese ferro alloys) being electricity intensive and SA having had low electricity prices over the last 30 years," the report says. The manganese export ore price was controlled by an oligopoly of four companies, which resulted in monopoly ore prices and very high returns for mining. "Any downstream investments in capital-intensive smelting would consequently have yielded lower returns on capital than selling ore at monopoly prices. "In this way one distortion (monopoly pricing) led to another (lack of beneficiation) and this would be a good example of the necessity for state intervention to effect a correction, through, for example, applying a correcting export tax on manganese ore exports, a resource rent tax on the excess profits or using infrastructure tariffs." Personally, I have no idea whether this allegation is justified, but if it is not, the manganese industry could do us all a favour and explain why not. The next example is Anglo American s divestment from its main platinum group metals downstream beneficiator and technology developer, Johnson Matthey, which the report criticises. Anglo was a 40% holder of Johnson Matthey in the early 1990s, and invested heavily in it for years, precisely in order to understand the technology behind platinum group metals. It divested from Johnson Matthey because of the pressure to focus on its core competence. "This appears to indicate that the decision to allow Anglo to relist abroad was possibly ill advised and that a developmental state might take a different view on the unfettered movement abroad of domestic capital," the report says. The same sort of argument is forwarded with respect to ArcelorMittal SA (AMSA). The report says that "due to the ISI (import substitution industrialisation) strategy of the apartheid era, Iscor/AMSA have always relied on monopoly pricing to maximise profitability and/or subsidise inefficiencies, with devastating impacts on the competitiveness of downstream steel-intensive manufacturing. Post-liberation in 1994, the democratic ANC government has been markedly unsuccessful in curbing this job-destroying abuse, despite concerted efforts to achieve competitive steel pricing by the Competition Commission." It strikes me that these are all credible complaints that the respective companies need to answer if they are to escape the charge that their own narrow interests have not unleashed an unfortunate experiment on South African taxpayers.
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The report fails to explain why mining companies and oil companies are different, and why oil companies tend to succeed under state ownership and mining companies not These are credible complaints the companies must answer to escape the charge of causing an unfortunate experiment to be unleashed on taxpayers
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While Mr Vavi himself will not stand for the NEC, other prominent trade unionists are likely to do so, in line with Cosatu policy that its members should "swell the ranks of the ANC". This applied also to its highest structures, Mr Vavi said. But although it is Cosatu policy to allow its leadership to stand for other leadership positions, Mr Vavi says for "the public face" of an organisation to wear "two hats" often leads to confusion and contradictions, especially when tactical and strategic differences inevitably emerge. A position in the ANC "top six" would possibly have allowed Mr Vavi to play a broader political leadership role, after serving four terms in the federation. However, two previous general secretaries of Cosatu Jay Naidoo and Mbhazima Shilowa who both stood for ANC leadership positions after leaving the federation, failed to forge successful careers in politics, after losing their power base in the unions. An elevation to the top structures of the ANC would also not be assured. Although Mr Vavi was at the forefront of the group that toppled Thabo Mbeki as president of the ANC, he has been stridently critical of the Zuma administration as well. His constant criticism of the ANC, including corruption in its ranks and its fiscal and monetary policy stance, has distanced him from the group backing Mr Zuma at Luthuli House. He has also fallen out with ANC secretary-general Gwede Mantashe, a dependable defender of Mr Zuma. Cosatus election will come three months before the ANCs Mangaung conference. If Mr Vavi is re-elected as general secretary, he could be one of the strongest voices in the last few months before the Mangaung elections. Cosatu is divided between unions sharing Mr Vavis critical stance and those strongly backing a second term for Mr Zuma, includ ing Cosatu president Sdumo Dlamini. In an effort to build unity in the federation, the central executive committee decided last year it was premature to discuss leadership succession. Last week, it reiterated this, saying Cosatu members would be encouraged to "evaluate the leadership of the ANC at the right time". 5 March 2012 The New Age Sapa
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"The situation also has to respect the processes that have unfolded. The ANC is a very old organisation. It thinks things through, it thinks very carefully and we are not prone to thinking that we are bigger than ourselves. "The ANC cannot be bigger than itself... what has occurred, has occurred. As members of the ANC there's an internal [code of conduct] that we adhere to and I cannot say more." Malema was expelled from the African National Congress last week for bringing the party into disrepute and sowing divisions. He has two weeks to appeal. At the time of Malema's disciplinary hearing, Sexwale was among those who testified in his favour.
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Of the seven entities without internal auditors, only the Driving Licence Card Trading Account did not contribute to these losses. Four entities said internal auditors were operational for only part of the year. The library for the blind appointed an internal auditor two weeks before year's end. The Driving Licence Card Trading Account's internal auditors did the first audit in February. The ports regulator, the Department of Women, Children and Persons with Disabilities and the Department of Defence were without internal auditors for the whole year. "The Department of Defence does not have a functional internal audit function," said the report. But its inspector-general division performed a high-level management review and some of the functions of an internal auditor. Nombembe said audit committees and internal auditors of fewer than half of all municipalities and municipal entities audited reported findings that aligned with those of the auditor general. About 67% of departments' and 56% of public entities' internal auditors and audit committees reported no findings after internal audits, while the auditor general found non-compliance with law on public sector finances. Nombembe said the mismatches were caused by the internal auditors and audit committees not working with the auditor general. "The confusion is caused by looking at things from different perspectives," he said. Claudelle von Eck, CEO of the Institute of Internal Auditors SA, said the difference between external audit (by the auditor general in the public sector) and internal audit contributed to different opinions. "External audit is primarily a financial discipline, whereas internal audit is a multidimensional discipline," she said. The auditor general's scope was much narrower. Internal auditors looked at all aspects. A hospital internal auditor would, unlike the auditor general, focus on risk of disease spreading between patients. "It is ... natural that internal auditors have a broader look at the risk and compliance matters. The auditor general's primary focus would be on financial statements." Nombembe said he wanted to formalise his office's relationship with the institute to avoid such confusion in future. 6 March 2012 Business Day Page 1
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Nicky Smith
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Africa " in the event that they accepted the Aurora offer and that the funds had been cleared. Under the Labat deal Aurora placed two small gold mines into Labat in order to get JSE approval for its reverse listing. In terms of a deal Aurora had with Global Emerging Markets (GEM), a Swiss private investment group, once on the JSE, it would receive R725m and GEM would take a stake in the new company. GEM would invest a further R725m to recapitalise the business and fund acquisitions. The Labat transaction lapsed in November 2010 after conditions of the transaction were not met. Aurora was removed as the preferred bidder for the assets by the courts in May last year. The liquidators will give the police "supporting documents" later this week for the charges against Mr Mandela and Mr Amod, Mr Engelbrecht said. Mr Mandela said he had not been informed of the charges. Mr Amod declined to comment, saying only: "I deny that I committed any fraud." 6 March 2012 Business Day Page 3 Wyndham Hartley
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The letter alleges a new strategy had been devised in secret, and that managers were simply instructed to implement it. The writers said the main element of the strategy, a funding model based on a percentage of contract value, would cause a conflict of interest in Armscor and would mean higher prices for the Department of Defence as Armscor went in search of higher income for itself. The letter says this strategy was not approved by Ms Sisulu. "Evidently a civil war between top management, divisional managers and workers is about to break out at Armscor," Democratic Alliance defence spokesman David Maynier said yesterday. The ministers office said Ms Sisulu was out of the country and would respond on her return. Armscor last night referred all queries to the Department of Defence. The letter said "service delivery is being greatly compromised by the breakdown of the organisations contract management processes. At the time of writing (the last week in February) R1,5bn worth of orders are being held back by the board of directors. This could result in huge rollovers of capital funds for the department. The situation will certainly not assist the department in its endeavour to solicit an increased funding allocation ." The letter also complained Armscors board used to meet monthly, but had now decided to meet quarterly and this had "greatly compromised Armscors ability to provide efficient and effective service". It also described the withholding of the Airbus refund as "a lack of good judgment".
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4 March 2012 The Sunday Independent Page 1 Moloko Moloto, George Matlala and Moffet Mofokeng
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Even if Mangaung does not liberate us, the future generation of the ANC will liberate us, because whether you like it or not, one day you will go on pension, said Malema in what could be construed as a reference to Zuma. But Malema avoided mentioning any names. However, he changed his tone and sounded like a desperate man begging to be accepted back into the ANC fold. If we made a mistake, then discipline us, dont kill, dont throw us in the dustbin, he said. Malema said he was prepared to relinquish his position as youth leader, in order to keep his membership because I love the ANC, I worship the ANC, there is nothing I know besides the ANC. The provincial womens league pledged to stand by Malema, singing his praises in slogans. Kae kapa kae, Malema re ya le Bwena (Wherever you go, Malema we are with you), they chanted. His friend and ally, Sports Minister Fikile Mbalula, intimated a fierce fight on Friday that Malemas expulsion was unprecedented and a political tragedy. I characterise this as a political tragedy for all of us who come from the ranks of the youth league. Julius and his generation have actually suffered a blow that we did not come to realise or test, Mbalula told the SABC TV news. Malema wants Mbalula to replace Gwede Mantashe as party secretary-general. Some youth league leaders from seven provinces have declared their support for Malema. However, the league is not homogeneous. There are factional divisions within its structures. The leagues North West chairperson Papiki Baboile said yesterday: If between now and Mangaung the leadership of the ANC doesnt review the expulsion, then we will plead with the branches of the ANC to review the expulsion. We still affirm him as our president. We will continue to invite him to lectures, he said. Northern Cape provincial league secretary Shadrack Tlhaole said it is Julius or nothing. If people want their friends to lead the youth league, then they must fire all of us, said Tlhaole.
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We must be engaged politically. This is a political matter. The ANC must make peace that they need to meet us and explain to us the wrong things they say Julius did. He never went to the streets calling people prostitutes, Tlhaole told The Sunday Independent. Malemas friend and Limpopo league secretary Jacob Lebogo said the expelled youth leader remains president until 2014, the end of his term. He remains our leader. We are still waiting for the leadership of the ANC to engage us. Anybody who has got a problem with the way the youth league articulates its position, they must engage us, Lebogo said, adding that these charges against Julius are personal. He was representing us. Eastern Cape league secretary Mziwonke Ndabeni said the decision was punitive and not meant to build. The league is expected to hold an emergency meeting of its national executive committee the highest decision-making body between conferences to discuss and take a stance on his expulsion. Meanwhile, the ANC in its discussions documents ahead of policy conference in June has admitted that ill-discipline would soon reach a consequential climax. We have not succeeded in effectively dealing with factionalism and ill-discipline. Mangaung must be (the) turning point, because unless we halt the decay, we will soon reach a stage where it becomes irreversible. The party said its relationship with its youth wing needed examination, given the controversial dispute regarding the autonomy of the league. The matter should be debated openly, since the league is too important an organ to leave to chance. 4 March 2012 The Sunday Independent Marianne Merten
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Since 1994, (the) government has done nothing but to support the judiciary, has done nothing more than ensuring that the judgments are implemented, he added. However, he may face an uphill battle in the face of concerns raised in the wake of several senior ANC politicians comments comparing, particularly the Constitutional Court, to an opposition and suggesting the constitution contains fatal concessions that shifted power from the executive and legislature to the judiciary. More recently, President Jacob Zuma said the Constitutional Courts powers would be reviewed, although his office quickly tried to spin the controversial comments. This week Radebe published a discussion document on the transformation of the judiciary, which sparked critical reaction. It will run in tandem with a review of Constitutional Court judgments, linked to an assessment of how the executive implements such judgements. On Monday, the Justice Department will issue tenders for this review project aimed at research institutions with an interest in issues of law and justice. The aim is to complete the review research within 18 months. And the timing of this discussion document and review? Nothing sinister, the minister says: it was released to coincide with the 15th anniversary of the constitution coming into effect. So far Radebe appears not to be too happy with that debate the discussion document talks of irresponsible commentary, while the ministers deputy, Andries Nel, has described concerns over the possible impact on judicial independence as a slight deficit of rationality (see page 7). The justice minister said it appeared many people were too focused on the executive and legislature, while the discussion document, review and envisaged interactions with civil society and communities would ensure the focus also fell on the judiciary. We do hope at the end of the day people should move away from their political constructs and become rational when we discuss these matters People must free their minds and engage in discussion with the aim of ensuring that all of us in SA participate in this transformation project. Dialogues, seminars and so on, they communicate a message to the broad crosssection of South Africans so they understand that judges are part and parcel of society: they dont come from Mars periodically to make these judgments. But the debate takes place as steps are already under way to reposition the judiciary. The Superior Courts Bill, currently before Parliament, is intended to rationalise the hierarchy of courts, including the establishment of one high court with nine divisions. It entails spending money: neither Mpumalanga nor Limpopo have their own high courts yet, while there are three in the Eastern Cape. Such changes could also affect the North West.
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Perhaps more significantly, the Superior Courts Bill places the chief justice at the head of the whole judiciary the Bench and the magistracy while making the Constitutional Court the final instance of appeal in all matters. Critics have contended this may detract from the courts role in establishing constitutional jurisprudence. However, Radebe says these steps are unprecedented measures to give the judiciary its institutional independence. The discussion document notes that the establishment of the office of the chief justice as a national department, even as an interim measure, appears incompatible with the independent character of the judiciary. The intention, however, was to ensure the office got sufficient resources and appropriately skilled staff to drive the restructuring. This is the beginning. I think weve done enough to kickstart the process so that the chief justice can have the resources As the executive, we want that all those (administrative) functions that will enhance the judiciary must be transferred to them. Thats a building block which has never happened in SA, said Radebe. After all, why should a court registrar be accountable to the Justice Department, when all the work was closely associated either with a magistrate or a judge? There are no time frames for this development, although it is regarded as urgent. It is not only dependent on the executive, but also the judiciary itself. When will it be positioned to assume those responsibilities and when will it be able to conclude on a model that will fit our constitutional democracy, said Radebe. These measures, the government anticipates, would contribute to access to justice for ordinary South Africans something that goes to the heart of transforming the court system. However, Radebe says the judiciary has taken strides not just in terms of racial transformation, but also attitude. In particular, the Constitutional Court has the capacity to help in the realisation of the Bill of Rights socio-economic aspect, as happened in the case for housing brought by Irene Grootboom in 2000, which the minister described as one shining example of how a judgment could impact on transformation. I see the judiciary playing a more proactive role in ensuring it participates in the acceleration of the transformation process. We need to see that in the judgments that they pronounce, he said. We need to be open-minded, because 300 years of colonial rule, 40 years of apartheid, cannot be overcome overnight. So it is a process. If you look where the judiciary is today the strides that are being made indicate that even the mindset of the judiciary is gradually changing. There was nothing untoward in a review of the impact of Constitutional Court judgments, the executives capacity in implementing these and the broader
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transformation of the judiciary and its place in what the ANC calls the developmental state, or a system of governance in which the state plays a key role. The executive had conducted similar reviews at 10 and 15 years. Radebe dismisses concerns that the independence of the judiciary is at risk as unfounded, given the governments track record. By their actions, you shall know them. Our actions, practical action, in this area speak louder than words. We are not afraid, but promote debate as the ANC. We do not want people, like a herd of cattle or sheep, to go in one direction. People have divergent views, but at the end of the day there has to be a plan to ensure that access to justice happens. That is what is important. 4 March 2012 City Press Carien du Plessis and Adriaan Basson
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Bosasa, as a responsible corporate citizen, sponsors and hosts a myriad organisations?.?.?.?(including) political, religious and welfare organisations, as well as schools and tertiary institutions. As a private group of companies, we owe no obligation to the (media) to comment on our dealings with such organisations, Leshabane said. ANC Gauteng spokesperson Nkenke Kekana responded: Any issues related to donations and support from companies and private individuals are in-house matters. We wont be able to have a discussion about any matter relating to our lekgotla, but the lekgotla did happen. In the newsletter, Bosasa said it hosted the partys lekgotla in January 2011 as a contribution to nation- building. On the front page of the same newsletter, the company announced that it got 38% of a major security tender from the justice department to safeguard courts. This amounted to R391 million. Lawson Naidoo, spokesperson of the Council for the Advancement of the South African Constitution, said the relationship between the ANC and Bosasa was a cause for concern. He said: This once again demonstrates the need for an independent anti-corruption agency. The allegations against Bosasa have been hanging around for a couple of years now, and the investigation seems to have stalled. Naidoo also said there should be full disclosure of party political funding or support, especially when it involves a company that has been implicated in corruption. Last week, Parliaments portfolio committee on correctional services laid down the law to prisons boss Tom Moyane, saying there would be no more outsourcing of catering services after Bosasas latest contract ended at the end of next January. This comes after Bosasas tender to provide food to prisoners lapsed last month, and prison staff themselves werent ready to take over catering, as announced by MapisaNqakula last year. Moyane extended Bosasas contract for another year.
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He sent a group of senior youth league leaders to negotiate a deal with the ANC that would make Mandela happy while saving Mokaba's standing in the eyes of his radical supporters. Mokaba eventually apologised to the ANC leader, and a joint statement by the ANC and the youth league was issued. Herein lies the major difference between Mokaba and Malema, the firebrand youth league leader who is now facing expulsion from the ruling party. While both shot to national prominence through recklessly militant statements and statements, Mokaba often knew where to draw the line and avoid being kicked out of the ANC. Popular as he was among township and rural youths, Mokaba - a former Robben Island prisoner - always knew that, without the party backing, his popularity would evaporate. Malema, on the other hand, seems to have believed himself to be invincible - taunting President Jacob Zuma and other ANC leaders even when it was clear to everyone that they had become so irritated with him that they were looking for any excuse to suspend or expel him from the party. Malema has so far kept mum about his next move following the ANC national disciplinary committee's decision to expel him from the party and strip him of his youth league title this week. Although the youth league's next step will be decided at a special national executive committee meeting this afternoon, it is safe to expect that he will be appealing against the sentence. But even if the Cyril Ramaphosa-led ANC national disciplinary committee of appeal strikes down the expulsion sentence, Malema looks set to be suspended from the ANC for a lengthy period. Yet, had he closely followed how Mokaba and other past youth league rabble-rousers carefully played the populist game, Malema would not be in the kind of trouble in which he now finds himself. At its national conference in 2004, the youth league took a controversial decision to support Zuma, who was then the ANC's deputy president, as a successor to then party president Thabo Mbeki. The decision was controversial not only because corruption allegations were being levelled against Zuma, but also because Mbeki had not stated that he would be standing down at the next conference. Instead of publicly announcing the decision, Fikile Mbalula and Sihle Zikalala - who had been elected president and secretary-general, respectively, at the 2004 conference
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- paid a courtesy visit to Mbeki's office at Luthuli House, where they told him of the league's plans. Mbeki was obviously not happy with the decision, but could not accuse the league's leaders of ill-discipline, because they didn't publicly announce their decision before first privately informing him. Malema abandoned this approach and publicly pronounced on a number of youth league decisions that were in conflict with ANC policy. He probably thought no action would be taken against him. After all, the postPolokwane ANC leadership had shown little appetite for maintaining the type of discipline demanded by Mandela in the 1990s. His greatest miscalculation was to undermine Zuma's determination to secure a second term as party leader. To do so, Zuma knew that strong action would have to be taken against the one man who had come to epitomise the anarchy that has characterised the party since he took office in 2007. 4 March 2012 Sunday Times Page 4 Mondli Makhanya
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legislation that has been [the] subject of rulings by the Constitutional Court," the usually logical Pandor said in defence of the indefensible. If Presidency spokesman Mac Maharaj had his way, we would buy Pandor's argument and pretend we had misheard the president. This was Maharaj's attempted damage-control spin: "The [judicial review] is with a view to assess the transformative nature of jurisprudence from the highest court in the land in promoting an equal, nonracial, nonsexist and prosperous society. "This must therefore not be viewed as an attempt by [the] government to undermine the independence of the judiciary and the rule of law which are entrenched in our constitution." For the record, Zuma told Independent Newspapers that the government wanted to review the Constitutional Court's powers. "We don't want to review the Constitutional Court, we want to review its powers," he said, before mouthing some gobbledygook which exposed an embarrassing lack of understanding of the functioning of the courts. If all the aforementioned individuals had their way, we would also ignore the comments of senior ANC leaders, including secretary-general Gwede Mantashe and national executive committee member Ngoako Ramathlodi, to the effect that the nation's judges are too big for their boots. Unfortunately for them, South Africans are not imbeciles. Most of the 50 million citizens (plus the five million Zimbabweans in our midst) have substantial brain matter inside their skulls. Radebe went to great lengths this week to stress that the 18-month exercise was innocent and for the good of us all. On the surface, some of the outcomes sought are not controversial. They include the strengthening of the Judicial Service Commission and Magistrates' Commission, improving the skills of judicial officers, and creating ways for the state to monitor the execution of court decisions. Another is to achieve greater dialogue between the judiciary, parliament and the executive on each arm's role in transforming society. But there are disturbing questions that Radebe and his colleagues cannot answer. Why is there a need to review judgments of the Constitutional Court in the first place? Is it pure coincidence that this review follows hot on the heels of judgments which have gone against the government? Why is this review coming at a time when the government has voiced its displeasure at the courts as a result of these unfavourable judgements? Are we to turn a blind eye to the fact that it follows open hostility towards the courts by the governing party? Are we to read nothing into the fact that there is growing antipathy towards the constitution in senior ANC ranks, with some even falsely arguing that this noble document was the fruit of compromise with the evil Nats?
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These questions may sound somewhat conspiratorial, and Radebe and Co will probably be acting puzzled as to why they cannot be taken at their word. They are, after all, men and women of integrity who have taken a public oath of allegiance to the constitution. Well, I think we would all dearly like to take them at their word. But it is no secret that the sentiment in the ANC right now is that there is too much power in the hands of judges, who party apparatchiks describe as unelected individuals. Powerful people in the party believe that, because it has an electoral mandate to govern, it should not be interfered with by pesky judges when it misgoverns or crafts bad laws. So we should not be lulled into complacency by comforting talk from Radebe et al. There is a power grab at play here. Now that the government is proceeding with the review, it will be up to the citizenry to make sure that those who want to undermine our constitutional democracy do not succeed. It will be up to the public to loudly demonstrate to our governors that we are not the imbeciles they take us for.
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According to the leagues constitution, its deputy president, Ronald Lamola, should take over the reins once the decision to expel Mr Malema is confirmed. While concern has been raised by Mr Malemas allies in the ANC that expulsion seemed too harsh, the abandoned move to oust Mr Mabe is likely to damp any public sympathy for Mr Malema. News of the proposed action against Mr Mabe drew mixed reactions on social networking sites yesterday. Political analyst Ralph Mathekga said it was expected that the youth league, in its efforts to consolidate its unity, would swiftly move to curtail any potential voice of "disruption" from inside. However, this could backfire by reinforcing perceptions of a leadership crisis within the organisation. The outcome of the emergency meeting is expected to be announced today.
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Madonsela found that the lease deals were illegal and invalid and urged Zuma to act against both Cele and Mahlangu-Nkabinde. The board has invited the public to make submissions, but spokesman Bongiwe Gambu said she was not sure of the total number of submissions made so far. The board has been mandated to inquire whether Cele: Acted corruptly or dishonestly or with an undeclared conflict of interest in relation to the two leases; Contravened provisions of the Public Financial Management Act and Treasury regulations leading up to the conclusion of the leases; Failed to prevent irregular expenditure incurred in relation to both leases; and Failed to prevent any financial losses or wasted expenditure to be incurred by the state. DA police spokesman Dianne Kohler Barnard said her presentation would include Cele's apparent lack of understanding of the Public Finance Management Act, the increase in deaths at the hands of the police during his tenure, and the militarisation of the police. 5 March 2012 The Times Page 4 Canaan Mdletshe
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He said it appeared as though some members did not understand why they had joined the party. "It seems it's now about material things . about what's in there for me. Yearning for power is now the order of the day," he said. Mchunu warned that the party's Mangaung national elective conference could have "far-reaching consequences" and called on members to avoid the situation that prevailed at the 2007 elective conference in Polokwane, when the party emerged more divided. "We emerged with discontent and we must guard against this because it will kill the ANC." The newly elected Ukhahlamba regional leaders are Bongani Dlamini (chairman), Winnie Zondi (deputy chairman), Maphitha Sithole (secretary), Sipho Hlomuka (deputy secretary) and Tony Sgubudu (treasurer).
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