monDAY 6 FEBRUary 2012

Contents

1.     Workers

1.1 ‘Follow-up strikes’ if state breaks with Cosatu

1.2 March against labour brokers

1.3 Gautrain strikers to be dismissed

1.4 Num members rebel against union

1.5 Implats lifts earnings amid mass firings

1.6 Implats starts re-employing workers after strike layoffs

1.8 DRDGold to axe 1 800

1.9 Hunt for workers’ money hots up

1.10 Male nurse fired for raping depression patient

2. <>      ANC

2.1 Malema verdict divides ANCYL

2.2 ANC readies for future without Malema

2.3 Brutal politics of ANC puts Malema backers in a dilemma

2.4 Who will replace Malema?

2.5 Malema may mobilise the ‘walking wounded’

2.6 Do we have a new Houdini of ANC succession?

2.7 Malema verdict tackles the symptoms not the problem

3. <>      South Africa

3.1 So many Questions: Cosatu president Sdumo Dlamini

3.2 Lapsley slams ‘culture of greed’

3.3 No crowds for Common

3.4 Workers' pension funds can empower Cosatu, says report

3.6 Shabangu ‘unlikely’ to clarify state’s role in mining

3.7 Nationalisation taken off the table at mining indaba

3.8 SABC boss furore

4. <>      Comment

4.1 Tale of two townships: How unions cripple education

1.   Workers

1.1 ‘Follow-up strikes’ if state breaks with Cosatu

Sam Mkokeli, Business Day, 6 February 2012

Congress of South African Trade Unions (Cosatu) general secretary Zwelinzima
Vavi warned yesterday that a planned strike next month would be followed by
more industrial action throughout the year, if the government went ahead
with its version of the proposed labour law amendments.

Year-long negotiations at the National Economic Development and Labour
Council (Nedlac) have reached a deadlock over draft amendments to the Labour
Relations Act, Employment Equity Amendment Bill, the Basic Conditions of
Employment Amendment Bill, and the Public Employment Services Bill.

The bills include a proposal to criminalise labour broking and another to
limit temporary employment. Cosatu’s definition of temporary work,
employment equity rules and other ambiguities have upset business, resulting
in delays.

Speaking at a provincial shop steward council meeting as he sought to
mobilise workers ahead of the March 7 strike, Mr Vavi presented some of the
proposals on the table at Nedlac. One strongly supported by labour was the
"application of the principle of equal pay for work of similar value to
temporary employees". But Mr Vavi said business was opposed to this.

"Already the government is on board ; we are happy it is pursuing it. But we
want to pursue that demand in the context that there is no labour broker. It
is of critical importance that government stick to that. If we can get that
accepted as law then half of our problems are resolved."

Mr Vavi said the government had allowed for one more round of Nedlac
negotiations before the strike action took place, but he was not optimistic
about a significant agreement being reached.

"There is disagreement in the approach between us and the government.
Government is insisting on regulating labour brokers. We are saying you
can’t regulate these fellows, get rid of them," he said.

Cosatu was opposed to a proposal tabled by business representatives that
trade unions and employers should engage in negotiations for 60 days before
a legal strike can ensue, lengthening the current 30-day period, Mr Vavi
said. He also revealed that a key issue during the talks was the proposed
amendment to section 21 of the Labour Relations Act.

"They want to amend section 21 … so that when the union seeks recognition by
being significantly represented in the workplace, by acquiring 51%
representation, they say temporary staff should not be counted as part of
that 51%. This is very dangerous," Mr Vavi said.

Labour also rejected proposals geared at boosting small-business growth, by
way of limiting employee rights in companies with staff of 10 to 50
employees, and which had existed for less than two years, he said.

John Botha, business representative at Nedlac, said business was opposed to
equal pay for work of equal value because companies’ performance and
prevailing economic conditions were a factor in determin ing wages. "If you
appoint a person during the current economic crisis you should be allowed to
appoint them at a minimum wage, because times are tough. "

1.2 March against labour brokers

Laea Medley, Daily News, 6 February 2012

Cosatu is planning three marches in KwaZulu-Natal as part of a 2-million
worker national stayaway campaign, in an effort to put an end to labour
brokers.

The marches will take place on March 7 in Durban, Newcastle, and Richards
Bay.

Speaking at a Cosatu meeting in Durban yesterday, General Secretary
Zwelinzima Vavi said more than a third of workers were employed by labour
brokers.

“That’s why Cosatu will be going on strike on March 7 to demand that we must
have a total burning of the labour brokers. Labour brokers cannot live side
by side with the demand of decent work, it's impossible to achieve that
demand,” Vavi said.

Cosatu provincial secretary Zet Luzipo said: “Our freedom and liberation
cannot be achieved if we are still victims of labour brokerage.”

Luzipo said labour brokers “suck vulnerable people who are desperate for
employment”.

“Labour brokers must be banned because they are nothing but the worst forms
of super exploitation. The success of our March 7 plan of action will and
must send a clear message to both our government and business that we cannot
exist side by side with labour brokers.”

1.3 Gautrain strikers to be dismissed

Citizen, 6 February 2012

The Gautrain bus drivers who participated in an illegal strike will be
served with dismissal notices as the bus service remained suspended on
Monday morning, the Bombela Concession company said.

"The disciplinary process was completed on Friday night and those drivers
that participated have already started receiving letters of dismissal,"
spokesman Errol Braithwaite said.

"MegaExpress will put plans in place today [Monday] to re-instate the bus
service as soon as possible."

On February 1, the drivers ignored an ultimatum that required them to return
to work by 3pm. A court interdict was issued last month compelling drivers
to return to work.

Braithwaite said the drivers launched their own court application to block
disciplinary hearings, but this was dismissed by the Johannesburg Labour
Court. Some of the drivers were fired.

The Gautrain bus drivers, who used to be members of the SA Transport and
Allied Workers' Union, had left the union and were now acting independently.

Last month, drivers went on strike because they wanted MegaExpress, the
Gautrain bus operating company, to provide them with transport from their
homes to their place of work every day.

1.4 Num members rebel against union

Dewald van Rensburg, News24, 5 February 2012

The unprotected strike, paralysing the Impala Platinum (Implats) flagship
mining complex in Rustenburg, which led to the dismissal of all 17 200
underground workers, represents a rebellion against the National Union of
Mineworkers (Num) by its members.

The outcome will be crucial test of Num’s ability to serve as the fulcrum of
labour relations in the platinum sector.

It is at Implats that Num has its most compelling monopoly on negotiations –
to the extent that its recognition agreement with Implats virtually excludes
other unions with it being the sole negotiator for all professional levels.

The strike arose from Num’s assenting to a large increase for one category
of workers, causing other workers deep discontent.

A brief strike by rock drillers at Implats’s No 14 shaft on January 12
within a week culminated in a strike by all  5 000 rock-drillers at the
complex.

After practically all the rock drillers were dismissed, the strike extended
to the entire workforce.

Two weeks later no official demands have yet been made on negotiations
conducted, because workers are refusing to negotiate through Num and Impala
refuses to negotiate with the committee the strikers appointed to circumvent
the union.

Strikers to whom Sake24 chatted during the past week on a visit to Implats’s
hospitals vented their spleen against their union, maintaining they would
fight their battle without Num.

They are demanding a massive increase for the lower professional levels, in
particular for rock drillers, in reaction to the once-off 18% increase for
miners, a comparatively high professional level.

According to Implats, Num approved the selective increase without demurring,
but Num now claims it was opposed to it from the start.

Strikers at Implats however said that Num had “remained silent” after the
miners’ increase was approved.

“We don't want 18%, we want R9 000 – after tax,” a number of rock drillers
told Sake24. These workers currently receive around R6 000 a month.

“We also heard this figure,” said Implats spokesperson Bob Gilmour. The
mining group nevertheless refuses to negotiate with any representatives
other than Num.

Sydwell Dokolwana, Num’s regional secretary in Rustenburg, shrugged off the
demands as a cynical canvassing attempt by a competing union which was
seizing the strike as an opportunity to recruit Implats workers.

“It was a recruitment strategy. They came here and told the people: ‘We are
with you and we will fight to the death for your demands.’ ”

This competitor is the Association of Mineworkers and Construction Union
(Amcu), which in 2003 broke away from Num in Mpumalanga and recently
established itself in the platinum industry.

In October last year Amcu used a strike to force mining contractor Murray &
Roberts Cementation (MRC) to recognise it at Aquarius Platinum’s Everest
Mine, where MRC was supplying the labour force.

In 2010 Amcu also called a strike at mining group Xstrata to gain
recognition.

Strikers at Implats said Amcu appeared on the scene after the rock drillers
had already begun their strike and their own community had been refused
access to the mine’s management.

It now appears that the rock drillers’ committee has aligned itself with
Amcu – a dangerous development in the platinum sector with its fairly recent
history of union strife in the platinum sector (in the late 1990s).

The rebellion by Num members therefore does not come out of the blue.

Num’s unpopularity among members of the Implats workforce was also
dramatically illustrated in 2009 when union leaders grimly attempted to end
an unprotected strike. Num deputy president
<http://www.whoswhosa.co.za/piet-matosa> Piet Matosa was stoned when he
tried to address strikers and apparently lost an eye in the process.

Last year, during an unprotected strike at Lonmin’s Karee shaft, Num was
also unable to get workers to return to work.

Cosatu in North West issued a statement berating Implats and Amcu, but also
warned the strikers to register their unhappiness at  Num with Cosatu.

Num ‘accepted selective increases’

Num says Impala Platinum unilaterally introduced the controversial increase
for miners and had merely “informed” Num.

According to Sydwell Dokolwana, Num’s regional secretary in Rustenburg, Num
had from the start opposed the selective increase.

“We demanded that they should rather re-open the wage negotiations and pay
the rock drillers more,” he said. The union would endeavour to have the
money being paid only to miners distributed more widely.

“I want to put this unequivocally: we support the rock drillers.”

But Implats expressly denied that Num had ever made such proposals. “Num
never have any objections to the adjustment for a single category,” said
Implats spokesperson Bob Gilmour. “They were totally supportive.”

The reason for the increase was the increasing competition for skilled
miners between platinum groups in the region.

Num also insisted that “most” of its members were not really on strike, but
instead were being intimidated by a small number of troublemakers and Amcu.

They would return to work if Implats could provide enough security, said
Dokolwana.

There had indeed been a couple of roadblocks, but the intimidation was
mostly non-physical, said Gilmour.

There might be individuals telling the workers not to go to work, “but we
can do nothing about that”.

According to him, security has been stepped up and outsiders are not
permitted in the hostels.

But on Thursday Sake24 had little difficulty entering the hostel complex
with a car full of passengers, and speaking to the workers.

The threshold

Num has fallen victim to its own success after negotiating a virtual
monopoly at Implats in 2007, which forced out the last remaining minority
union in the group, Uasa.

An agreement was basically reached with Implats that no other union or
workers' group would in future be permitted at Implats – the reason for the
current impasse.

The 2007 decision was the result of a process forcing out smaller unions
from Implats since 1997, ensuring Num’s monopoly.

In 1997 Implats divided its workforce into three bargaining units and
permitted only those unions with 35% of the workers in one of these
categories. Only Num and forerunners of Solidarity and Uasa remained. By
2006 only Num and Uasa were left.

The three units then merged and in 2007 Num and Implats negotiated a new
threshold – 50% plus one, leaving only Num.

Such a high threshold for recognition is unusual and at most other mines Num
has to negotiate together with a number of minority unions. This agreement
makes it highly unlikely that Amcu will be recognised, but could end in a
bitter struggle to persuade Implats to abandon the agreement.

This week Implats retreated behind the agreement and flatly refused to meet
either the rock drillers’ committee or Amcu.

All complaints and disputes have to be raised by Num, declared the mining
giant. Any liaison with representatives other than Num would violate the
recognition agreement, a statement issued on Friday said.

http://www.iol.co.za/logger/p.gif?a=1.1227613&d=/2.225/2.545/2.546

1.5 Implats lifts earnings amid mass firings

Dineo Faku, Business Report, 6 February 2012

IMPALA Platinum (Implats), which axed 17 200 employees last week for
participating in an illegal strike, announced on Friday that it was
expecting higher profit for the six months to December.

In a statement on Friday, Implats said it expected headline earnings a share
and basic earnings a share to be between 60 percent and 70 percent higher
year on year at R5.52 to R5.87.

However, the company’s labour woes continue at its Rustenburg operation
where production ground to a halt because of the illegal strike.

Implats, which produced 1.74 million ounces of platinum in the 2010
financial year in South Africa and Zimbabwe, was losing 3 000 ounces of
production a day due to the strike.

While the 17 200 employees were fired for participating in an unprotected
strike, Implats has given the employees an opportunity to reapply for their
positions.

“We don’t know how many people will be hired back, it depends on how many
reapply. The process will start in due course, we are still busy with
dismissals,” Implats spokeswoman Alice Lourens said on Friday.

The strike began when 5 000 rock drill operators downed tools to demand an
18 percent increase in salaries. They were excluded when salaries of miners
were hiked.

At the heart of the strike are union rivalry claims. The National Union of
Mineworkers (NUM) has blamed the Association of Mineworkers and Construction
Union (AMCU) for intimidation. However, AMCU president Joseph Mathunjwa said
the strike was an issue between management and the NUM. The AMCU is not
recognised at Implats because it has not requested organisational rights.

Last month Implats chief executive David Brown announced his resignation.
Terence Goodlace, the former Metorex chief executive, has been appointed to
take over from July.

Implats shares fell 1.59 percent to close at R167.97 on Friday.

1.6 Implats starts re-employing workers after strike layoffs

Alistair Anderson, Business Day, 6 February 2012

IMPALA Platinum ( Implats ), the world’s second-largest producer of
platinum, started re-employing thousands of workers on Monday to get its
Rustenburg operation back on track after two weeks of strikes.

The company has dismissed more than 17000 striking workers to end a strike
that threatened its long-term profits.

Implats had been losing roughly 3000 ounces of platinum a day since 5000
rock-drill operators went on strike at the mine on January 27. Later, about
12000 other miners joined the strike in a show of solidarity.

The company has been supplying its customers from a pre-existing stockpile.

The rock drillers, who have specialist skills, demanded a bonus based on the
company’s need to retain them. Other workers last year received a salary
increase as part of a retention scheme. This led to an unprotected strike.

Zwelinzima Vavi, general secretary of the Congress of South African Trade
Unions, said on Sunday that Implats’s fire-and-rehire strategy would result
in workers getting new contracts with fewer benefits.

He said companies often "encourage workers to split away from the unions but
then can’t deal with the wild strikes that will come to haunt them".

"Our appeal to the management is that we are prepared to intervene and help
get a settlement, but this re-employment strategy, which will mean that they
get rid of all the conditions that have been won by workers historically for
many years, is going to backfire in their faces," Mr Vavi said.

The strike was not resolved because of a spat between two unions over
representation of the workers. The rock drillers wanted to be represented by
the Association of Mining and Construction Union (Amcu) instead of the
National Union of Mineworkers (NUM).

The NUM is the official representative of Implats workers, as 70% of the
company’s 47000-strong workforce in South Africa and Zimbabwe belong to the
union.

"We could not negotiate with Amcu as they were not the official
representative," said Impala spokesman Bob Gilmour.

http://www.iol.co.za/logger/p.gif?a=1.1227630&d=/2.225/2.545/2.5461.7
Seardel to axe up to 1 500 jobs

Nompumelelo Magwaza, Business Report, 6 February 2012

At least 1 500 jobs in the clothing and textile industry are on the line as
Seardel proposes to retrench workers in the face of shrinking margins.

In a move that could dent the government’s efforts to protect and create
jobs, the clothing and textile maker said on Friday that it had no choice
but to retrench workers at its Western Cape and KwaZulu-Natal operations in
an effort to combat low margins.

In its interim results for the six months to September last year, the
company stated that its clothing operations delivered a R50 million
operating loss, up from R20m in the corresponding period in 2010.

Meanwhile, the Southern African Clothing and Textile Workers Union (Sactwu)
promised to “vehemently” fight the proposed job losses.

It is déjà vu for Seardel. In 2008 the company was rescued by Hosken
Consolidated Investments (HCI) from financial distress. However, it still
had to close some divisions and retrench 4 000 workers.

Seardel chief executive Stuart Queen said on Friday that the company
proposed to the unions to right-size, citing margin pressures, which eroded
selling prices.

He said: “The company has continued making a loss in its clothing division
and this has squeezed our margins and input costs. We have decided to review
this and eliminate low-margin production across the board.” He added that
the move was also an attempt to balance its order books.

Queen said the textile industry found itself in tough trading conditions
with rising input costs and retailers opting for imports.

Depending on the consultation processes under way, Seardel proposed to
dismiss 1 000 workers from its Western Cape factories and 500 workers from
the Ladysmith factory in KwaZulu-Natal.

The consultation process, which took up to 60 days, Queen said, would
determine the outcome of the proposal.

Sactwu said the organisation received a notice on January 26, informing it
that approximately 1 498 weekly paid employees across four factories might
lose their jobs.

“We will vehemently resist these proposed job losses,” Sactwu general
secretary André Kriel said.

The notice by Seardel stated that the firm’s clothing division had performed
poorly and suffered substantial losses.

“The workers are not yet retrenched, the consultation procedure as required
by section 189 of the Labour Relations Act is now being implemented,” Kriel
said.

He added that the union was informed that Seardel anticipated a closure of
one of its production lines, the Profortune operation, by the end of next
month. In the event of retrenchments affected workers would receive all the
retirement fund withdrawals due to them, Kriel promised.

Meanwhile, Textile Federation executive director Brian Brink said the
industry was facing continuous difficulties owing to illegal imports.

He said this made business extremely hard for the industry as clothes were
sold below market price. “Even though we have customs controls, more effort
is needed to strengthen security at all points of entry into South Africa.”

HCI, which owns Seardel, said in a statement earlier this year that 2012
“should hopefully see further operational improvements at this clothing and
textile conglomerate without the shareholder (HCI) having to resort to
drastic cutbacks in its operations”.

It suffered a major setback when its application for financial distress
relief funds was rejected by the Industrial Development Corporation in 2009.

1.8 DRDGold to axe 1 800

Fin24, 6 February 2012

Gold producer DRDGold [JSE:DRD] could cut up to 1 800 jobs when it stops
mining two shafts at the embattled Blyvoor operation, it said on Monday.

DRDGold "has resolved to suspend all further mining at Blyvoor's low-grade
number four and six shafts with immediate effect," the company said in a
statement.

This was at the recommendation of Blyvoor's board of directors. DRDGold owns
a 74% stake in the Blyvoor gold mine, south of Carletonville, in Gauteng.

Blyvoor had given notice in terms of section 189(3) of the Labour Relations
Act to trade unions the National Union of Mineworkers and Uasa. The unions
and Blyvoor would begin a 60-day process to try and seek consensus on job
cuts.

"These measures follow a decline since April 2011 in recovery grades to
below cut-off at the two shafts, which are used mainly to pump water from
underground to surface and into Blyvoor's surface recovery circuit," DRDGold
said.

"Both shafts failed to respond to turnaround efforts since the introduction
of business rescue proceedings in the second half of last year."

Blyvoor had undergone business rescue proceedings in terms the new Companies
Act since June after DRDGold said it would no longer finance Blyvoor, which
had needed about R80m to keep going until the end of 2011.

In November, DRDGold announced it had accepted an expression of interest
from mining company Village to buy its stake in Blyvoor for R150m.

DRDGold said it had told Village about the decision to stop mining the two
shafts and was "of the view that the proposed sale will not be negatively
affected by it".

DRDGold said the pumping of underground water from the two shafts would not
be affected by the cutbacks for the time being.

"Production from Blyvoor's surface recycling circuit and at its principal
number five production shaft, from which it plans to access an additional
400 000 ounces it is seeking to acquire from the AngloGold Ashanti [JSE:ANG]
Savuka Mine, are also not affected by the decision," the company said.

1.9 Hunt for workers’ money hots up

Yazeed Kalmaldian, Sunday Argus, 5 February 2012

A trade union’s hunt for its missing millions, invested in two separate
funds, is heating up, with a commission of inquiry into one of the
companies, Pinnacle Point Group, set to start tomorrow.

The SA Clothing and Textile Workers Union (Sactwu) has been battling to
regain workers’ pensions totalling R360 million.

Tomorrow the Cape Town offices of law firm Edward Nathan Sonnenbergs will be
the venue for the latest inquiry around shares in Pinnacle, worth R260m,
bought by Sactwu. These shares are now reportedly not worth a cent after the
property developer went bust.

A second inquiry has been unfolding to recoup R100m from Canyon Springs
Investments 12. This insolvent company borrowed the money from Trilinear
Empowerment Trust, which held workers’ provident fund savings.

Andre Kriel, general secretary for Sactwu, told Weekend Argus the union
would consider legal action “after due process”, so that the “guilty go to
jail for a long time”.

“You eat an elephant bit by bit. We will recover the money bit by bit. Even
though it’s unpalatable, we’re prepared for a long process,” he added.

The Canyon Springs inquiry has already been through five rounds of
interrogation in Cape Town, with the last session running from January 24 to
30.

This inquiry is led by Tony Canny, head of forensics at law firm Eversheds,
and has revealed that Canyon Springs borrowed the cash from Trilinear
without a proper loan agreement, nor a repayment date. It has failed to
repay a cent.

Former deputy minister of economic development Enoch Godongwana and his wife
Thandiwe were Canyon Springs directors. Kriel said Godongwana confirmed
during an inquiry session that he would repay some funds.

“We are in talks with Godongwana on how much will be paid. Our eyes are
focused on what happened, and we want to recover as much as possible,” he
said.

Kriel added that the union had also received repayment pledges from other
companies linked to Canyon Springs.

“Workers will get all their money that they have invested. We are going to
search every corner for this money.”

They had, however, discovered that some of the money had been sent overseas.

“We are going to pursue that,” said Kriel.

On the repayment pledges, Kriel said they hoped to recover money “directly
from people involved, and through the sale of assets of Canyon Springs”.

“The owner of another company that worked with Canyon Springs will repay
R4m. A Canyon Springs subsidiary will repay R10m.”

While this was a small sum in relation to the total, he said it was a start.

Kriel explained that the provident funds were managed by an independent
boards of trustees, half of whom were employee trustees, and the remainder
employer trustees. Investment decisions were taken by them.

“These investment decisions have never been discussed in the union
structures, nor has it in any way been taken by the union structures,” Kriel
said.

But he added that the workers’ savings should never have been invested in
Pinnacle Point, “because it builds golf courses which are playgrounds for
the rich”.

“We are looking inside the union as to why this happened. We are doing an
internal reflection.”

He confirmed that “not all the retirement fund monies have been lost”.

“I have been assured by the respective retirement funds that they still have
enough funds left to pay every single worker who retires the full share of
what withdrawal benefits are due to them. The rumour that is being spread
that workers have lost their lifesavings is mischievous,” Kriel charged.

Countrywide, the savings of 25 000 workers had been affected by the Canyon
Springs debacle. The union represents 100 000 workers nationally.

A stumbling block in the Canyon Springs inquiry is that the two main
protagonists involved in the alleged fund fraud are unwilling to appear for
questioning.

Canny said Richard Kawie, who acted as a Sactwu consultant, did not appear
before the inquiry’s last session. Kawie had received R9m, and was directly
linked to the flow of money between Trilinear, Canyon Springs and his
business entities.

Kawie has been arrested in connection with fraud and is out on bail.

Sam Buthelezi, owner of asset management company Trilinear, has “refused to
co-operate”.

He was also arrested in connection with fraud and is out on bail.

Canny said they wanted to push on with their investigation to find “poor
textile workers’ monies that have been lost”.

“The people responsible must be pursued. We are waiting for instructions
from Sactwu to continue with the inquiry,” he added.

Meanwhile,

Kriel said the union was “considering what next step to take”.

“The inquiry has revealed what has happened with the money, and where it has
gone to. We have a good idea of what has happened with that.

“Our primary objective (now) is to help recover as much monies as possible,
and to prosecute those who are found guilty of any wrongdoing.”

The DA said on Friday that it would contact the police’s commercial branch
to investigate Godongwana’s “dishonesty”.

Haniff Hoosen, the party’s spokesman on economic development, said the DA
had already laid charges against Godongwana.

“Godongwana has claimed that he was an innocent bystander in the stealing of
workers’ pension funds.

“His actions suggest the opposite… These are hardworking citizens, and
vultures have stolen their money. These are the reasons why poverty will
continue,” Hoosen said, adding that he would also ensure that Godongwana and
Economic Development Minister Ebrahim Patel account to Parliament’s economic
development portfolio committee.

He added that Sactwu “must be held responsible for getting the money back”.

“Ultimately the union should be held responsible for what happened.

“It can’t be right that workers entrust unions with their life savings, and
then the union says that they have done their best to get the money back.”

Cosatu general secretary Zwelinzima Vavi said in his January 26 speech at
the launch of independent corruption watchdog Corruption Watch that trade
unionists “know that unions are not paragons of virtue”.

“Workers’ pension funds are being gambled away, leaving some workers to
retire with only a pittance. We must leave no stone unturned to bring those
who squandered R100m to justice,” said Vavi.

“Some workers complain that their leaders have been corrupted, and that
trade union officials are paid off by employers to turn a blind eye to their
abuse.

“This type of corruption results in a situation whereby we have agents of
the capitalist class within the workers’ movement who labour day and night
as conveyor belts for capitalist interests,” Vavi said.

1.10 Male nurse fired for raping depression patient

Sunday World, 5 February 2012

A male nurse has been fired for allegedly raping a patient suffering from
depression at a Potchefstroom hospital in the North West, officials
announced.

"We went through a disciplinary process where the man was found guilty and
was fired," says North West health MEC Magome Masike. "The moral fibre of
our society is actually going down."

Brigadier Thulani Ngubane of the North West police says the 24-year-old man
will appear in the Potchefstroom Magistrates' Court on February 16 in
connection with the alleged rape. which occurred on January 19.

"The patient was admitted to the hospital for depression. She was sitting in
a TV room when she was called by the male nurse to the linen room," Ngubane
says.

"According to information received, the victim followed the suspect because
she thought he was calling her to give her medicine.

"It is alleged that the suspect drugged the victim with medicine before
raping her," Ngubane says.

"The suspect used rubber gloves during the rape and disposed of them in the
dustbin," says Ngubane.

The woman reported the rape, which occurred on January 19, to the hospital
authorities and the man appeared in court for the first time on January 21
when he was released on R1000 bail.

Masike says the provincial health department has apologised to the woman and
the community.

"We believe that hospitals [should be] safe places and we are quite
disappointed," Masike says.

Cosatu North West spokesperson Solly Phetoe condemns the incident.

"If he is a member of the Cosatu union, and is [found] guilty of the
offence, we call on the union to dismiss this member immediately and not to
represent him at the hearing," says Phetoe.

"We cannot allow this kind of person to practise in our hospitals any more,"
he says and adds that patients suffering from mental illnesses should be
treated at psychiatric hospitals.

Last month, a male nurse from a Bloemfontein hospital appeared in court on a
charge of raping a terminally ill cancer patient. The woman has since died.

2.   ANC

2.1 Malema verdict divides ANCYL

Chandrè Prince, Sipho Masondo & Dominic Mahlangu, Sowetan, 6 February 2012

The ANC Youth League has been thrown into disarray after the guilty verdict
against its president, Julius Malema, was confirmed. Some provinces are
lobbying for early leadership elections.

The ANC's disciplinary committee of appeals' decision to uphold an October
2011 guilty ruling against Malema has not only exposed divisions within
provincial structures of the league, but has also reopened the succession
debate.

In his verdict, Cyril Ramaphosa, chairman of the committee, found Malema,
his secretary-general Sindiso Magaqa and spokesman Floyd Shivambu guilty of
ill-discipline, bringing the ANC into disrepute and sowing divisions within
the party.

The other three youth league leaders - deputy president Ronald Lamola,
deputy secretary-general Kenetswe Mosenogi and treasurer Pule Mabe - had
their suspended sentences overturned after they were accused of having
"barged" into an ANC leaders' meeting.

While the Eastern Cape and Western Cape have pledged their support for
Malema, other provinces are divided, with some warning that his time is up.

In Gauteng, members have started discussing "leadership options", saying
that waiting until the Mangaung elective conference would be "suicidal" for
the league.

KwaZulu-Natal and Limpopo have seen a surge in anti-Malema sentiment and
ANCYL members say the "discontent" is spreading.

The deputy secretary-general of the ANCYL in KwaZulu-Natal, Siboniso Duma,
said: "The ANC is the oldest and wisest political organisation. It fired the
likes of (Tennyson) Makiwane and Bantu Holomisa, and it will continue to
take such decisions no matter how painful they are."

The verdict, said Duma, will remind ANC members many generations down the
line that "no one is above the ANC".

Duma would however not be drawn on who should take over from Malema. "We
think it is premature to announce that, but there are many capable people in
the provinces. For now Ronald Lamola should step in as the deputy."

Procedurally, he said the ANCYL should disband and that a special congress
should be called to elect new leaders. The elected leaders, said Duma, will
have to work overtime to unite all the structures ahead of the party's
conference.

"We can't afford to go there as we are. Malema has caused serious damage to
the party, it is bleeding and could do so for a long time if we are not
careful."

Mpumalanga's youth league executive called for a "rethink" from the ANC
regarding the problems facing the league.

The secretary of the league in the province, Clarence Maseko, said the
organisation had been assaulted and "imprisoned" by its own members.

"Never had a revolutionary youth movement had to conduct its organisational
autonomy under such difficult conditions. It is imprisoned," he said.

In North West, members want the league to fast-track the national general
council meeting to elect a new leadership. The decision by the appeals body
took centre-stage at the ANC Eastern Cape's provincial executive meeting
yesterday, with the youth league saying it would not back down from fighting
for Malema's reinstatement.

Said ANCYL Eastern Cape spokesman Nkosinathi Nomatiti: "We are still 100%
behind Malema. We are not giving up on a political solution. We are still
hopeful that the mitigating process will yield positive results."

Labelling Ramaphosa's verdict as "unfortunate", Nomatiti said its
consequences would be far-reaching and could be damaging to the ANC itself.
"It would be terrible if the ANCYL effectively becomes a desk of the ANC
without any political autonomy. Saturday's outcome does give that
perception," he said.

But two senior Eastern Cape youth league members said the province was
divided over Malema, but members feared raising their objections.

Gauteng youth league provincial executive members called for a "Plan B".
Provincial chairman Lebogang Maile, who last year unsuccessfully challenged
Malema for the presidency, has emerged as the possible candidate.

2.2 ANC readies for future without Malema

Setumo Stone, Business Day, 16 February 2012

THE AFRICAN National Congress (ANC) is preparing for a political future
without Julius Malema, whose combative leadership of its youth league
divided the ruling party on issues of policy and succession and prompted
disciplinary action that led to him and his allies being suspended at the
weekend.

Although Mr Malema has been given 14 days to appeal against his sentence,
analysts say it is unlikely the party will change course.

Already, his rivals in the league are punting league treasurer Pule Mabe to
succeed him.

The reversal in fortunes for Mr Malema, once viewed by President Jacob Zuma
as a future ANC leader but who campaigned against a second ANC term for Mr
Zuma, also largely clears the way for Mr Zuma to be re-elected ANC president
in Mangaung in December.

Mr Zuma appears to have emerged much strengthened from the ordeal, and
analysts say potential rivals would hesitate to go up against him now.

Political analyst Eusebius McKaiser said yesterday the ANC and Mr Zuma had
emerged looking "incredibly strong".

"Nothing short of a very dramatic factor will be enough to make people think
about voting for an alternative candidate to Mr Zuma," Mr McKaiser said.

Political analyst Mari Harris of research group Ipsos Markinor agreed,
saying: "Julius Malema overestimated his support, both in the country and in
the party."

Amid confusion yesterday as to when the sentence against Mr Malema would
take effect, ANC spokesman Jackson Mthembu clarified that he could remain in
his ANC posts until the 14-day period of appeal in mitigation had elapsed,
SABC News reported.

Mr Malema attended the ANC’s national executive committee meeting in
Pretoria as a full member yesterday.

"The national disciplinary committee of appeal said that they have a chance
to go and mitigate, so until such mitigation has taken place, the sanctions
will not kick in," Mr Mthembu said yesterday.

"There is another matter…. It is a matter of comrade Julius’s case of 2010
because he got a suspended sentence, but I think the leadership has decided
there is no particular hurry," he said.

Mr Mthembu’s statement followed a "clarification" issued by the party on
Saturday in which it contradicted spokesman Keith Khoza’s claim that the
suspension would take effect immediately.

Presenting the findings on Saturday, appeals committee chairman Cyril
Ramaphosa said the committee would "determine an appropriate sanction after
hearing evidence of mitigation and aggravation of sanctions that the parties
may wish to present".

Mr Ramaphosa said referring the matter back to the disciplinary committee
was in the interests of justice and was necessary in keeping with the spirit
and objectives of the ANC’s constitution.

He emphasised the importance of discipline in the organisation, saying it
was "one of the key pillars in the life of ANC".

An insider says Mr Malema is in a precarious position as a second-time
offender. Saving his ANC membership card, and the league presidency, seem
impossible.

Succession could feature prominently on the agenda of the youth league’s
national executive committee when it meets on Wednesday and Thursday.

Political analyst Steven Friedman said the league leadership had imposed
itself on the members and that had been tolerated because it suited the
agendas of certain members of the national leadership.

That could change in Mr Malema’s absence.

 Prof Friedman said the league’s leadership battle would not be about
restoring democracy, but rather a struggle between individuals in a scramble
for control. Aspirants for Mr Malema’s position had begun to position
themselves before the disciplinary committee announced its verdict last
year.

At the weekend an SMS was apparently doing the rounds within youth league
structures, lobbying for Mr Mabe to succeed Mr Malema.

 Once Mr Malema’s closest ally, Mr Mabe reportedly broke ranks with his
suspended youth league colleagues, arguing against the decision to appeal
the sentences.

In Mr Malema’s absence, league deputy president Ronald Lamola would assume
Mr Malema’s duties, according to the league’s rules.

League secretary Sindiso Magaqa is also seen as a possible candidate. The
league would need to hold a special congress to elect a new executive, but
Mr Lamola would act as president until then.

The dark horse in that race would be the youth league’s Gauteng chairman,
Lebogang Maile, who stood against Mr Malema last year, withdrawing only when
it became clear that he would not win.

http://www.iol.co.za/logger/p.gif?a=1.1227814&d=/2.225/2.226/2.2332.3 Brutal
politics of ANC puts Malema backers in a dilemma

Sam Mkokeli, Business Day, 6 February 2012

The timing of the announcement of Julius Malema’s fate — slap bang in the
middle of a meeting of the African National Congress’s (ANC) national
executive committee — speaks volumes about the brutal politics at play in
the ruling party.

While it may not have been the intention of the party’s national
disciplinary committee of appeals, the timing of its press conference came
across as a challenge to those members of the executive who sympathise with
Mr Malema: speak up now or forever hold your peace.

The ANC’s top leaders held a scheduled executive meeting in Tshwane — from
Thursday until yesterday. Saturday’s outcome of Mr Malema’s appeal was a
crucial event, as he is an important player in the ANC’s succession debate.

Mr Malema’s sympathisers were deprived of a chance to step back, and perhaps
question the process at the next bimonthly meeting. The matter unfolded
before their unprepared eyes : discuss this here and now, or never.

Not that this was the first national executive committee meeting to generate
bad news for Mr Malema. When he was charged in September, he was served with
disciplinary papers on a Friday morning — a few hours before the meeting.
While the decision to charge him was not surprising, it nonetheless upset
his and his supporters’ rhythm.

Party leaders say the national executive meeting that followed was as tense
as the one that led to the recall of former president Thabo Mbeki . But all
members were afforded an opportunity to speak on any matter. President Jacob
Zuma was present at the meeting, as Fikile Mbalula — a known supporter of Mr
Malema’s — took the floor to complain.

Some among Mr Malema’s backers stood up, often emotional, saying they were
victims of a presidential clampdown. However, this failed to have the
charges withdrawn, which eventually led to his conviction, which was upheld
by the appeals committee at the weekend.

This weekend’s appeals committee announcement — which effectively banished
Mr Malema to the wilderness — helps Mr Zuma’s cause hugely. His most vocal
critic has to go and herd cattle as he once intimated — tongue in cheek or
not. The president is looking very comfortable on his way to re-election in
December.

Mr Zuma is a master of political chess, with loads of patience and a
predator’s instinct. He pounces only when he is convinced of his timing.

With Mr Malema sinking, his supporters on the national executive committee
will have to watch their step. Some of them will be mindful that the
president is monitoring their every move, and directing their every word.
Among them are wealthy politicians, such as Human Settlements Minister Tokyo
Sexwale, who seems to thrive on tough times like these.

Mr Sexwale found himself on the wrong side during the Mbeki presidency. The
same is happening under Mr Zuma.

However, other leaders cannot afford to sing and dance to Mr Malema’s tune,
a political rebel who can only be saved by a political "tsunami" in
Mangaung. That is a distant dream.

Mr Mbalula is one of those whose future is tied to Mr Malema’s fate. The
youth league has been campaigning to install him as secretary-general in
December, to replace Gwede Mantashe, a staunch ally of Mr Zuma. In order to
get to Mr Zuma, you need to go through the stubborn defence Mr Mantashe
provides for his boss. Mr Mbalula would be better off watching that the
sinking Polokwane ship doesn’t drown his dreams. The campaign to hand him
the ANC’s third-in-command position looks dead, as dead as Mr Malema’s
career.

If Mr Mbalula aspires for higher positions in the near future, he will need
to distance himself from Mr Malema or his legacy, insiders say.

Other politicians likely to suffer are treasurer-general Mathews Phosa, and
deputy secretary-general Thandi Modise. They are sympathetic to Mr Malema’s
cause. As the Mangaung conference nears, and Mr Zuma is as strong as he
looks, it may be difficult for the two to get enough support to return to
their positions.

What is known as the "top three" — Mr Zuma, deputy president Kgalema
Motlanthe and Mr Mantashe — seem set for re-election, an ANC leader says.
Separating them would be difficult.

Mr Zuma and Mr Motlanthe are civil to each other, but there are signs that
the "top two" are not in sync. It may be a question of good cop, bad cop.
While Mr Zuma often entangles himself in his tongue, and sometimes his
actions, Mr Motlanthe presents himself as a thoughtful politician. That
positions the Number Two as a reasonable leader, hence Mr Malema’s use of
his name, saying he is a candidate for the top post.

While Mr Zuma’s leadership weaknesses are many, removing him seems
impossible at this stage.

Nobody captured it better than Cosatu general secretary Zwelinzima Vavi last
year when he told a parable of riding on the back of a lion: if you get off,
the lion will feast on you. Mr Zuma has signalled to the remaining part of
Team Malema that they are better off on the back of the lion.

2.4 Who will replace Malema?

Deon de Lange, IOL, 6 February 2012

Speculation is mounting as to whether Julius Malema’s deputy in the ANC
Youth League will step up to fill his boots.

Analysts believe Malema’s political future is finished after the ANC’s
national disciplinary committee of appeals (NDCA) upheld a ruling by the
national disciplinary committee (NDC) which in November found Malema and
other youth league leaders guilty of sowing divisions within the ANC and
bringing the party into disrepute.

Although Malema will continue serving as leader of the ANC Youth League
until further notice, the appeal committee’s decision has fuelled debate
about succession within the league.

The charge of barging into a meeting of the ANC’s top six officials was set
aside by the appeal committee, which lets Malema’s deputy, Ronald Lamola,
deputy league secretary-general Kenetswe Mosenogi and treasurer Pule Mabe
off the hook and free to fight for his position.

The organisation may be forced to call a national conference to elect and
mandate an entirely new leadership.

Lamola, seen as a staunch ally of Malema, could face a challenge from Mabe,
who previously challenged Malema for the youth league leadership.

The NDC’s decision to suspend Malema for five years was upheld by the appeal
committee when it delivered its verdict on Saturday. However, it also
decided that Malema could give evidence in mitigation before the national
disciplinary committee, but that the ANC would in turn be allowed to argue
in aggravation.

For Malema, this means the length of his suspension could either be reduced
or increased.

When the NDC found Malema guilty it also decided that he serve a two-year
suspension as a result of pleading guilty to sowing divisions during his
first disciplinary hearing in 2010 – and that this would run concurrently
with the five-year suspension.

While the chairman of the appeal committee, Cyril Ramaphosa, made no mention
on Saturday of whether or not the earlier suspension would take immediate
effect, ANC spokesman Keith Khoza said it would.

But the ANC at the weekend distanced itself from the statement. “Cde Keith
has already apologised for speaking out of turn and without a mandate on a
matter that resides with the NDC and other leading structures of the ANC,”
Mthembu said in a statement.

Speaking to Justice Malala on The Justice Factor on Sunday, Mthembu said
people should not be “so hasty to remove people from their desks” and to
allow “ANC processes to take their (course)”.

“We are a very serious organisation. We are not a kangaroo court. The ANC
processes issues properly.

“Indeed, the leadership, including the NDC, will study and interpret the
impact of the NDCA ruling with regard to the previous (2010) disciplinary
case and act accordingly,” he said.

“Acting accordingly means also informing those who you are acting (against).
It does not mean that we should then – as spokespersons – be speaking out of
turn without any mandate on these matters.”

Mthembu told Independent Newspapers on Sunday: “These matters are in the
jurisdiction of the NDC and the ANC leadership structures.

“That is all we are prepared to say for now. We think it would not be proper
for anybody to suggest that, until these internal processes have taken hold,
comrade Malema should not go to an NEC meeting. He remains ANC Youth League
president until these processes have taken their course,” he stated.

Malema sits on the NEC by virtue of his presidency of the youth league but
it could not be established whether or not Malema was attending the NEC
meeting in Pretoria at the weekend.

Pressed for further clarification on Sunday, Mthembu said the NDC and the
NEC should be left to deal with the matter in their own time “so that we
don’t goad them into hasty action”.

“The appeals committee did not say anything on the previous (2010)
disciplinary case. So the structures of the ANC, including the NDC that
found on that previous case, must say what is the process moving forward.”

Writing online for Politicsweb, political analyst Eusebius McKaiser argued
on Sunday that the ANC “forgot” to confirm whether or not it had informed
Malema that his previous sentence now took effect.

“This is a loose end that will cause confusion for a day or three. They need
to inform him in order to give effect to the previous suspended order…

“At any rate, given the hype and public confusion, the party would do well
to, first, inform Malema of the implication and, second, to explain this to
a confused public,” he added.

It was also not clear whether ANCYL secretary-general Sindiso Magaqa must
publicly apologise to Public Enterprises Minister Malusi Gigaba within five
days or whether this too could wait until he had argued in mitigation of his
sentence. Malema, Magaqa and Malema’s right-hand man, Floyd Shivambu, whose
three-year suspension was also upheld on appeal, have 14 days in which to do
so.

Given that Malema continued to mock Zuma in public – by singing songs about
the “shower man” causing the youth league problems – even as his
disciplinary proceedings were under way, analysts have suggested that Malema
could end up with an even stiffer sentence after evidence is heard in
mitigation or aggravation of his sentence.

“The chances of a reduced sentence are zero… All that (arguments in
mitigation) will achieve is to keep Malema politically on a life support
system for a little while longer. It will not stave off the eventual outcome
– political demise,” McKaiser argued.

Another possibility is that Malema may challenge the ANC in court. City
Press on Sunday quoted “lawyers close to the case” as saying Malema had
already “started preparing papers” in case he decided to go that route.

However, political analyst Karima Brown noted that, while this was
technically possible, Malema had effectively closed that avenue himself by
having previously taken other ANC members to task for dragging the party to
the courts over internal disputes.

“So in a way (Malema) has already made the decision for himself. But he is a
desperate man at this stage.

“He might want to go that route if he feels desperate enough to try to hang
on (to the youth league presidency), because he needs to stay alive in the
ANC structures for his political campaign to unseat Jacob Zuma to continue,”
she told Malala on Sunday.

This view was supported by McKaiser, who noted that the “political cost of a
court battle would ruin Malema”.

“For a man who will need political allies when possible tax evasion and
money laundering charges surface, this would be a strategic misstep,” he
added. Both Sars and the Hawks are investigating Malema’s financial
dealings.

2.5 Malema may mobilise the ‘walking wounded’

Moshoeshoe Monare, IOL, 6 February 2012

It will be a fatal error for Julius Malema to believe that Zuma’s enemies
are his friends. Some of Zuma’s opponents actually celebrated Juju’s demise
on Saturday.

Now that the appeals committee has confirmed his conviction, he is unlikely
to get a reprieve from the national executive committee (NEC) – whose
majority can neither be described as Malema or Zuma supporters.

A significant number of NEC members respect chairman of the appeals
committee Cyril Ramaphosa. They will therefore not view his panel’s decision
to uphold Juju’s conviction as politically motivated. Even Malema holds
Ramaphosa in high regard.

Therefore, the NEC – which is the highest decision-making structure between
conferences – might not review his conviction despite a few members,
including his friend, Sports Minister Fikile Mbalula, who believe Malema was
a victim of political persecution.

He could only hope the ANC’s elective conference will resuscitate him from
what he perceived as his crucifixion for championing nationalisation and his
leadership preference (he doesn’t want Zuma and Gwede Mantashe to do a
second term).

I don’t see the NEC wasting its time discussing Malema unless he reveals
explosive and embarrassing secrets about Zuma.

Alternatively, a regime change in Luthuli House could revive Malema’s
career, if Zuma’s successor decides to grant him a pardon. But who said Zuma
will be replaced in Mangaung, or his successor will automatically be
Malema’s friend?

Malema is also hoping Mbalula will be the party’s next secretary-general.
Still, no single individual can decide to overturn the outcome of
disciplinary processes .

It will be suicidal if he decides to approach the courts, as this route is
frowned on and viewed as “un-ANC”.

Another blow to Malema is that the winter policy conference is highly likely
to kick out his dream for the nationalisation of mines.

Malema often forgets he is no Zuma. He is unlikely to pull off a “Friends of
Julius Malema” fan club. He confuses his populism for popularity. This is
why he easily dismisses opinion polls.

His arrogance, opulent lifestyle and harrying politics have alienated
potential fans.

But it will be a mistake to underestimate his power or write him off
completely.

Deputy Science Minister Derek Hanekom is unlikely to commute Malema’s
suspension sentence during mitigating arguments.

Therefore, Juju will finally vacate his office in Luthuli House. He will
withdraw from the scene, retreat to Limpopo and start plotting clandestinely
for Zuma’s downfall.

He will surely mobilise the so-called walking wounded (a term coined by
Cosatu’s Zwelinzima Vavi in reference to those hurt by Thabo Mbeki). The
list is growing – from fired civil servants, sulking politicians to
Zumaphobes.

The fallout between erstwhile comrades has also fractured the alliance,
creating a loose and shaky anti-Zuma block on one side and an equally wobbly
faction of Zuma supporters on the other.

Malema will try to link with the “Friends of Thabo Mbeki” or perhaps the
anti-Zuma block (some in the Gauteng ANC) who want Kgalema Motlanthe to
succeed Zuma.

But they have nothing in common. In fact, some do not want to be seen with
Juju. But who said Zuma supporters in 2007 were a homogenous lot? They were
bound by a fierce antipathy towards Mbeki.

However, Malema must not forget that some of his comrades – especially his
funders – were actually attracted to his power.

Those who saw his influence in Limpopo as a stepping stone to their careers
and business ventures might now find him a useless and spent force.

2.6 Do we have a new Houdini of ANC succession?

Aubrey Matshiqi, Business Report, 6 February 2012

If the national disciplinary committee of the African National Congress
(ANC) had done the right thing by allowing Julius Malema and his ANC Youth
League co-accused to argue in mitigation of sentence, the demand for coal,
meat and alcoholic beverages would have spiked as anti-Malema revellers
celebrated well into the early hours of yesterday. Instead, they are morose
because the national disciplinary committee of appeal upheld the convictions
but decided to refer the matter back for argument in mitigation and
aggravation. If the disciplinary committee sticks to its original sentences
or elects to impose harsher sanctions, we cannot rule out the possibility
that the matter will zigzag its way back to Cyril Ramaphosa and his appeal
panel.

However, Malema, league secretary-general Sindiso Magaqa and spokesman Floyd
Shivambu face the real risk of the disciplinary process ending with much
harsher sentences.

Given the fact that there were celebrations in parts of Polokwane after
Saturday’s announcement, has Malema come to the end of his political road?

There are two responses that are worth noting in this regard. Some are of
the view that anti-Malema celebrations in Polokwane constitute evidence of
dwindling support for Malema in the ANC, while others are of the view that
the hundreds of young people who tried to storm Luthuli House in support of
him last year are a sign that he still enjoys considerable support within
the party.

While there is no doubt that Malema still has support, the question is
whether this support is located in parts of the ANC that matter the most in
relation to the political outcome of the disciplinary process. The question
is whether Malema will succeed in having his suspension put on the agenda of
the ANC’s national executive c ommittee (NEC). If he does, the political
debate in the NEC will end in one of two ways. That he has significant
support in the ANC, and whether it extends significantly to the leadership
of the party, will either be confirmed or it will be disproved.

For me, the real issue is whether Malema, like his former role model,
President Jacob Zuma , is the Houdini of ANC succession battles. It seems to
me that several nooses are beginning to tighten around Malema’s neck.

First, there is the National Treasury noose. The intervention by the
Treasury in the affairs of the Limpopo government is an administrative
measure that will undoubtedly deliver political outcomes.

We must bear in mind that the reality and perceptions of corruption have
become potent weapons in ANC battles. To the extent that tenders and
government contracts form part of war chests in factional battles, factions
with access to certain levers of state power will, at times, try to destroy
the corruption supply lines, real or perceived, of political opponents.
This, in the case of Malema and what is seen as his Limpopo cartel, may lead
to the prosecution and, therefore, the neutralisation of leading figures of
the Limpopo faction. Also, we cannot rule out the possibility that steps
will be taken to insulate the security cluster from attempts to turn it into
a weapon against Zuma.

But one of the biggest challenges Malema faces stems from the success he
achieved as one of the heroes of the 2007 Polokwane project. The way in
which he achieved that success, and how he tried to deploy it against the
president, has imposed an image crisis on him that has caused Zuma’s allies
and detractors to act jointly in defence of the image of the party in a
manner that has become prejudicial to the interests of Malema and his
supporters. Further, this image crisis is going to make it difficult for
those who are seen, or see themselves, as challengers to Zuma to associate
themselves openly with attempts to unseat the president of the ANC if, in
their estimation, Malema is going to end up in the political cemetery. That
said, the battle against Malema and attempts to dethrone Zuma will most
probably become decoupled at some point. If this happens, what will it
portend for Zuma and his anti-Malema opponents if Malema falls?

• Matshiqi is research fellow at the Helen Suzman Foundation.

2.7 Malema verdict tackles the symptoms not the problem

Steven Friedman, Business Day, 6 February 2012

THE African National Congress’s (ANC’s) appeals committee may have ended
Julius Malema’s career, but not the turmoil in the ANC. Since Malema is a
symptom and the turmoil the problem, the weekend leaves the ANC in no better
shape than before it disciplined Malema. And, while axing him will be
popular with many at the grassroots, the way in which the ANC’s disciplinary
arms have chosen to handle him and the other ANC Youth League executives
leaves it in poorer health.

In principle, Malema still has options. Claims after the appeals committee
announced its decision that he had immediately ceased to be president of the
league because a suspended sentence had taken effect were inaccurate — the
result of sloppy reporting compounded by an ANC spokesman who does not
understand its rules — and were later rejected by the ANC. The suspended
sentence does not take effect unless an ANC disciplinary vehicle activates
it and by the end of the weekend none had.

So Malema still has his power base for now. His lawyers could persuade the
national disciplinary committee, which must hear evidence in mitigation of
sentence, that he deserves only a slap on the wrist. If that fails, he could
petition the ANC national executive committee (NEC) or appeal to its
national conference at the end of the year.

But in reality, Malema seems to be running out of options. The tone of Cyril
Ramaphosa’s presentation on Saturday suggested the appeals committee wants
mitigating evidence heard so that the process can seem credible, not because
it feels the sentences were too harsh. The sentence might be reduced
slightly, but a lengthy suspension is almost certain. Even if the
disciplinary committee lifts Malema’s five-year suspension, the suspended
sentence is hanging over his head and it is hard to see how the ANC could
avoid imposing it.

The appeals to the NEC and the national conference in Mangaung would work
only if the faction that finds Malema useful continues to fight for him and
is strong enough to win. This is not impossible — at the weekend, the NEC
rejected an attempt by secretary-general Gwede Mantashe to overturn the
nationalist camp’s victory at Limpopo’s ANC conference; members of the
faction that finds Malema useful claim this shows their strength in the NEC.
But it may not be worth the faction’s while to fight hard for Malema when it
can find others in the league to serve its purpose.

The analogy that is sometimes drawn between Malema’s position and that of
Jacob Zuma when he was fired by Thabo Mbeki does not hold. The anti-Mbeki
faction had pinned its hopes on Zuma and was forced to rally around him. The
nationalist faction does not need Malema because other league leaders have
escaped suspension and could do what he has been doing for the faction.
(League secretary-general Sindiso Magaqa must apologise to Public
Enterprises Minister Malusi Gigaba if he wants to stay in office and reports
say he will do that.)

Some are already pitching to become the new Malema: since the job can be
done by anyone who does (roughly) what they are told, replacing him may be
cheaper than backing him. And, while there is strong opposition to Malema
and his group in the league, the incumbents are probably safe until the next
league election, and the next p resident will serve the nationalists as
faithfully as the last one.

So Malema — and league spokesman Floyd Shivambu — are likely to be removed
from office. But this will make little or no difference to the ANC. It is
becoming clearer each day that Malema’s power and popularity are a figment
of his and the media’s imagination. His lack of power in the ANC was
confirmed when he came 17th in December’s election for the Limpopo
provincial executive. His lack of grassroots support was confirmed when he
could mobilise fewer people than the annual gay pride march, and when
township and shack settlement residents partied when the disciplinary
committee threw the book at him. He is a symptom of the ills plaguing the
ANC, not their cause.

Malema did not create the scramble for positions, the use of office to gain
wealth and the use of that money to buy office, which ANC documents bemoan —
he is simply a tool of those who did. Whether he stays or goes, the politics
with which he is associated will remain. If Malema departs and this triggers
a power struggle in the league, the nationalists may be weakened at
Manguang. Youth activists don’t make decisions, but they are energetic
campaigners and the faction needs them to do the leg work if it decides to
challenge Mantashe and other ANC leaders.

But, whether or not there is a shift in the balance of power, the ANC will
remain locked in a battle between the nationalists and their opponents
whatever is done about Malema. And the disciplinary process has made it more
difficult for it to prevent the decay the fight for positions has brought.

No governing party in a democracy can prevent competition for posts — to try
is to worsen the problem by driving it underground. So the ANC will not end
its crisis by trying to bring back the old days when there was less contest
because there were no material benefits for the winners.

It needs not to stamp out contest but to ensure it is fair. The first step
is to protect the right of all members to take part — this means defending
their right to say what they want and getting tough on anyone who tries to
prevent that by bullying or bribing. The disciplinary approach endorsed at
the weekend does exactly the opposite.

Malema is no innocent victim. But he has been punished for his role in
expressing opinion, not in preventing others from having their say.

He is punished for saying that Mbeki cares more about Africans than Zuma —
not for storming a stage in 2010 to try to bully Justice Minister Jeff
Radebe . He is sanctioned for remarks on Botswana that were crass and
embarrassing but no threat to democracy in the ANC — not for driving his
opponents out of a hall in Limpopo or ignoring a court order in the Eastern
Cape.

The message is clear: ANC members can bully and bend the rules, as long as
they don’t criticise leaders or deviate from policy.

This insistence that the problem is not unfair contest but contest itself
will worsen the problem.

Disciplinary action against Malema and his colleagues was long overdue. Many
questions have been raised about how they came to control the league and
they have broken democratic rules. Getting tough on these infractions would
have signalled to the ANC that its leaders are serious about internal
democracy. But cracking down on the expression of opinions rather than on
antidemocratic conduct will send the opposite message — that they are more
interested in driving contests into back alleys than in making sure they are
fair.

The ANC’s leaders need to get tough — but in defence of fair contest, not in
an attempt to stamp it out. Until they do, the crisis the disciplinary
action was meant to address will deepen.

3.   South Africa

3.1 So many Questions: Cosatu president Sdumo Dlamini

Chris Barron, Sunday Times, 5 February 2012

Cosatu told the Press Freedom Commission it wants tighter control of the
print media. Chris Barron asks Cosatu president Sdumo Dlamini ...

You've said you support an independent media?

Yes, we support an independent media, there's no doubt about it.

But you want it to be more tightly regulated?

We believe it cannot regulate itself.

Can the media be independent if it is regulated by outsiders?

An independent media must also be a responsible media. It cannot have a
free-for-all where it can write whatever it likes and it cannot be
challenged.

People take complaints to the media ombudsman all the time, and in most
cases he rules in favour of them. Why do you want to change this system?

The media must be regulated. It can't be free to write what it likes without
being contested. There are instances of huge irresponsibility by the media.

Is there a sinister motive at work, do you think, or is it just a matter of
genuine mistakes being made?

 In many instances the media has got involved with political factions. Not
the media as a whole, but individuals. They take sides.

Can't newspapers have an editorial line?

Look, the media just relies on lies and secrets and secret sources.

In your submission you talk about brown-envelope journalism, but the only
example I know of concerns a former ANC premier.

There are other cases.

Are you saying the media ombudsman doesn't act when evidence of this is
brought to him?

 I'm not saying that. Just that Cosatu is not happy with self-regulation.
You can't have that, it's not working.

Do you support the ANC demand for a media appeals tribunal?

Cosatu does not support that. Though you should have a regulatory structure
it should not be a structure that leads to a court punishing media people
for issues they publish.

In your submission you criticise the media for being pro big business and
the free market. Is this why you want tighter control?

 If the media reported on issues that affect workers every day in the same
way they cover the interests of big business, we'd have no problem.

So you want some outside body telling newspapers what they should write
about?

 Look, we would not be having this debate if the media had transformed
itself. They have put themselves in this situation. They have shown that
self-regulation doesn't work.

The only alternative is outside regulation. Won't this lead to interference
in editorial decisions?

 It doesn't automatically lead to that. It's how you structure the
regulation.

Isn't the bottom line here that you want a media that reflects your own
ideological preferences?

 We are saying that the media is owned by capitalists and private interests,
therefore it is biased to that class and not to society as a whole. Their
interests are to maximise profits and not to reflect the interests of the
people at large.

Isn't it in the interests of the people at large to expose corruption like
the media does?

 Let me give you a short example: 18000 Implats workers are on strike. The
media reports they're on an illegal strike, but they don't report that they
are challenging the employers to raise the salaries of workers. That's not
important to them.

You seem to be saying the media must be told how to do its job?

No. The media currently is responsible to its own class and it reports
favourably to this class. They are not reporting the views of the working
class.

So you want them to be told what to write about?

The media cannot regulate itself. It's not working.

Your real problem seems to be that the media are not writing the stories you
think they should writing.

The media in South Africa does not reflect the issues or aspirations or
views of the working class, only issues affecting the ruling class.

Isn't the answer then to start your own newspaper?

We are working on that. One day we will have a powerful working-class
newspaper.

http://www.iol.co.za/logger/p.gif?a=1.1227461&d=/2.225/2.226/2.234/2....
Lapsley slams ‘culture of greed’

Mogomotsi Magome, Pretoria News, 6 February 2012

Renowned anti-apartheid activist Father Michael Lapsley has bemoaned the
culture of greed and corruption in SA, saying it is the biggest threat to
the country’s prosperity.

Lapsley was deeply involved in the liberation Struggle and was expelled from
SA and forced into exile for his political activities. He lost both hands
and sight of one eye when he was a victim of a letter bomb sent to him by
the apartheid government while he was in Zimbabwe in 1990.

Lapsley, an Anglican priest, told the Pretoria News on Sunday that the
growing extent of inequality was a ticking time bomb for the country, and
needed urgent attention.

“The road to the project that we dreamt of during the liberation Struggle is
very rocky and still very long. The main challenge we have is the growing
extent of greed and corruption.

“What we see now is that political elites have lost sight of what the
liberation Struggle was for. We need to ask ourselves what it was that made
us fight against apartheid.

“There are some worrying signs that seem to suggest that we have forgotten
what it was that we were trying to achieve when we fought apartheid,” said
Lapsley.

According to Lapsley, the wealth gap in SA made it the most skewed nation in
terms of economic inequality in the world and this did not bode well for a
county that overcame so many obstacles.

“If you look at the public display of individual wealth by some of our
political elites when there is so much poverty in this country, it really
means that we need spiritual and moral transformation.”

He said the centenary of the ANC should be used as a time to reflect on
whether the liberation movement had achieved what it was meant to.

Since his recovery from the horrendous bombing that would change his life
for ever, Lapsley has never stopped his work towards enriching the rest of
humanity.

Through his Institute for Healing of Memories, Lapsley has travelled across
the country, African continent and the world working with communities
struggling to come to terms with the negative impact of the past. The
organisation works with people from a diversity of backgrounds, including
refugees, offenders, sufferers of HIV/Aids and victims of domestic violence.

This has seen him taking part in workshops in countries including East
Timor, Rwanda and Northern Ireland.

“My work with this organisation which I founded in 1998 has been about that
journey that we have travelled to get to where we are and also about the
journey that I have travelled personally.

“Since the bombing, I have travelled a long journey getting good medical
treatment, but I also needed healing and support which I received in
abundance.

“I moved from being a victim to helping others who need healing and support
to deal with the horrendous things that happened in their past. Even
prisoners need healing because as much as most of them have done horrendous
things in the past, they have also had horrible things done to them,” he
said.

He said the work of NGOs was being undermined by the lack of funding due to
global economic challenges.

“It is a global phenomenon not just here in South Africa but across the
world. Here we are challenged mostly because there is not enough financial
support from the government and most NGOs rely on international funding.

“Those are the countries that are currently facing serious economic
challenges and it has affected how much they fund NGOs on the African
continent,” said Lapsley.

Lapsley will this year publish a memoir titled From Freedom Fighter to
Healer, in which he will share his journey from the liberation movement to
his current work as a healer of communities.

“I believe I have lived fully and am satisfied that even if I die tomorrow I
would have made my contribution and received as much as I could have from
this world,” said Lapsley.

3.3 No crowds for Common

Junior Bester, IOL, 5 February 2012

The promised 1 000-strong crowd failed to materialise for a second
Rondebosch Common event yesterday, but that didn’t stop those who did turn
up from objecting vociferously when mayor Patricia de Lille sent mayco
member Grant Pascoe in her place to accept their memorandum.

De Lille’s absence was “unacceptable”, declared Cosatu’s Tony Ehrenreich,
who is also the ANC leader in the city council, as the crowd jeered at
Pascoe.

Yesterday’s meeting attracted only about 100 people. But the events were a
far cry from the previous Friday when the police sprayed protesters with
blue dye, arrested 41 people and drew widespread criticism.

All except Proudly Manenberg’s Mario Wanza, who was arrested before he even
reached the Common, were released earlier this week without charge. Wanza
was, however, charged with public violence and released on R500 bail.

Yesterday the Casspirs were back as part of a strong police presence, but
they remained parked and unused.

The memorandum was handed to Pascoe by Wanza. De Lille had previously
referred to him as an “agent of destruction”.

Ehrenreich said although he was not impressed at De Lille’s absence
yesterday, he was “thrilled that so many people from different communities
were present here today”.

“We will be discussing the next gathering with the various organisations,”
he added.

The protesters gathered in front of a flatbed truck which served as a stage
for a number of speakers from different organisations.

Other than Cosatu and Proudly Manenberg, they included the Ruyterwacht
Tenants Association and the Greater Cape Town Civic Alliance. Mike
Hoffmeester, of the Bishoplavis Forum, denied they were “agents of
destruction”.

“We are agents for change. If this city is truly for the people, then why do
they build houses for us away from the city like in Blikkiesdorp. They must
build us houses in the city.”

He added: “Last week we took away the last weapon the government can use
against us – and that is fear. They tried to scare us but they did not
succeed. For the first time in our lives we feel liberated and we are
getting stronger every day.”

Wanza reiterated that the protests had only just begun, and that golf
courses across Cape Town would be targeted.

“It is time for the city of Cape Town to set a date for a sit-down so that
we can talk about our issues.”

Pascoe said after signing for their memorandum that the city would examine
the matters raised, and “assess the demands”.

Meanwhile, an event planned yesterday by members of Occupy Cape Town, who
accused Cosatu of hijacking their initiative, attracted only a handful of
people.

The organisers of the meeting, in Salt River, had sent out an invitation to
the media, but Weekend Argus was asked to leave soon after proceedings
started.

3.4 Workers' pension funds can empower Cosatu, says report

Sowetan, 6 February 2012

The Congress of SA Trade Unions should use workers' pension funds to exert
its power in the mining sector. This is a suggestion contained in the ANC
task team report on how government can intervene in the mineral sector.

The report says Cosatu has already invested workers' pension funds in a
number of mining companies but has given its power away by having the
private sector to manage these investments.

It encourages the labour federation to work together with the state using
the pensions of the workers to control key mining companies.

It says the combination of government and union pension holding already
represents a significant holding in many mining companies.

"Such state and union special purpose vehicles (SPV) could be reinforced
with the BBBEE (broad based black economic empowerment) holding where
appropriate."

The report says many countries were using state and pension schemes to
control key mining companies such as Brazil and Finland.

It says ideally black economic empowerment companies, government and union
holdings should be consolidated into SPVs that would have a greater
influence on the company in balancing shareholder returns with developmental
goals.

http://www.iol.co.za/logger/p.gif?a=1.1227792&d=/2.225/2.572/2.5803.5 A
potentially big blow for e-tolling

Thabiso Thakali, Saturday Star, 4 February 2012

The implementation of Gauteng’s controversial e-tolling system has been
dealt a potentially crippling blow.

Transport Minister Sbu Ndebele has shelved a proposed piece of legislation
for now that would have given the South African National Roads Agency
Limited (Sanral) punitive powers to charge non e-toll paying motorists under
the soon to be implemented Aarto.

The Administrative Adjudication of Road Traffic Offences Act, intended to
remove most traffic offences from the courts and introduce a system of
demerits has been piloted in Joburg and Tshwane.

The proposed law which was published in 2010 for public comment had sought
to extend the reach of Aarto to cover toll offences – meaning the proposed
public disobedience campaign to not to paying e-tolls could lead to demerits
on a driver’s license, and its ultimate loss.

Although not all fines under the Aarto Act carry a demerit point, experts
believe a driver who passed more than 12 e-toll gantries a day without
paying would be liable for demerit points deduction if the Bill came into
law.

“A single drive around the toll ring roads would mean you could lose your
driver’s license if they associated the offence of not paying e-tolls to the
demerit system,” said Howard Dembovsky, chairman of the Justice Project SA –
a motoring lobby group. “There is currently no legislation including Sanral
Act that caters for automated toll gantries or e-tolls.”

Yesterday Ndebele’s spokesman Logan Maistry told the Saturday Star that the
proposed Transport Law Enforcement and Related matters Amendment Bill of
2010 had been put under review together with the Gauteng e-tolling system.

“The Minister has put the Bill under review and it is subject of a
continuing review alongside the Gauteng e-toll system.The Sanral Board is
looking at this together with the Treasury and other stakeholders,” he said.

Gauteng e-tolling opponents Cosatu, the DA and other motorists lobby groups
vowed to fight tooth and nail to ensure that no law was passed that would
impose punitive measures on residents who refuse to pay the tolls.

“It makes us more determined to stop these tolls if a body like Sanral would
have such punitive power [in so far as threatening to motorists suspending
the license for failing to pay tolls].

Its absolutely shocking,” said Cosatu spokesman Patrick Craven. “Throughout
the whole process of introducing these tolls there has been in adequate
consultation including on the proposed laws. How could the government not
see how controversial this would be? Clearly there is a lot that is wrong
with how everything around the tolls was done.”

Automobile Association’s Gary Ronald said he was aware that the government
was looking at alternative legislation to enforce the tolls.

“We would definitely not like that kind of a proposed legislation to proceed
into law,” he said. “It would be unfair to pass such a law that is biased to
one project in Gauteng only.”

Jack Bloom, the DA leader in the Gauteng legislature said it was “disturbing
that somebody was trying to crack the whip on unwilling public” to force
them to pay the e-tolls that have been rejected by majority of Gauteng
residents.

“We knew about the Bill and that they were trying to use Aarto to enforce
the tolls. This was a desperate measure to get compliance but there would
have been a huge counter reaction to it,” he said. “If the Bill goes to
Parliament after the review, the DA will scrutinize it carefully and
consider legal challenges.”

3.6 Shabangu ‘unlikely’ to clarify state’s role in mining

Allan Secombe, Business Day, 6 February 2012

It appears Mineral Resources Minister Susan Shabangu will offer markets
little comfort on one of the most pressing issues for investors hesitant
about putting money into projects in SA, when she addresses the Mining
Indaba tomorrow.

Her speech is expected to touch on the government’s mineral beneficiation
strategy, amendments to the mining laws, compliance with the mining charter,
transformation of the sector and the perennial matter of the industry’s
health and safety track record.

Ms Shabangu will address the indaba at the Cape Town International
Convention Centre after attending a meeting of the African National
Congress’s (ANC’s) national executive committee at the weekend. The
deliberations of this meeting will be fed into an ANC policy meeting in June
for a final decision in December.

"We will come to a conclusion that is responsible. We will not be reckless,
as some people want us to be," Deputy Mineral Resources Minister Godfrey
Oliphant said at a Brand-SA roundtable discussion last night.

Given the sensitivity of the issue within the party, where some factions are
demanding that the state play a greater role in the sector, while other more
senior members are calling for a more pragmatic approach, staff at the
Department of Mineral Resources believed Ms Shabangu was unlikely to raise
the topic tomorrow.

"It is a real pity that one of the most pressing issues affecting the sector
will not be aired to bring some comfort to that largest gathering of mining
executives, financiers and lawyers on the continent. It’s a real opportunity
lost," said Peter Leon from law firm Webber Wentzel.

The delegates will be looking for answers on how the codes of good practice
in the Broad-Based Black Economic Empowerment Act will affect the mining
charter and whether it will override the charter governing the black
ownership levels of mining groups, set at 26%.

The ANC commissioned a study into the state’s role in the resource sectors
of a number of countries. The revised report is said to discourage asset
grabs as unconstitutional; as well as the state buying stakes in companies,
because of the enormous expense and risk involved.

The report is believed to favour increased taxes and royalties, as well as
more beneficiation of minerals, which would encourage job creation, and lead
to higher values for exported products. It also suggests export levies to
ensure security of supply of key commodities.

A debate is raging in the coal sector, where Eskom is concerned that
lower-grade coal for its plants could be sold abroad for far higher prices,
putting the utility under cost and supply pressures. Delegates a t the
McCloskey coal conference last week said the parties had talked and that
tempers had cooled.

Indaba stalwart, Anglo American CEO Cynthia Carroll, who has been one of the
most outspoken corporate delegates on issues affecting mining in SA, will
not attend this year after doctors advised her not to travel abroad for two
months after a horse-riding incident. Her speech will be delivered by Anglo
American SA head Godfrey Gomwe.

3.7 Nationalisation taken off the table at mining indaba

Sharda Naidoo, Mail & Guardian, 6 February 2012

Deputy Mineral Resources Minister Godfrey Oliphant has set the tone for the
four-day Investing in Africa Mining Indaba, which begins on Monday, by
bringing home the message that nationalisation is off the table and that
South Africa is open for business. "As we speak, nationalisation is not a
policy of the government or ANC," he said.

Oliphant was speaking at a precursor roundtable discussion on Sunday night,
organised by Brand South Africa in Cape Town, as the ANC national executive
committee (NEC) was wrapping up discussions on its economic policy
documents, one of which dealt with the controversial proposal by now ousted
ANC Youth League leader Julius Malema to nationalise mines.

The tabling of the documents could not have been timed better. Not only did
the ANC squash the nationalisation policy, an appeals committee also upheld
Malema's suspension from the ruling party's structures.

ANC sources said Mineral Resources Minister Susan Shabangu will give
delegates a taste of the new resource nationalism plan in her opening
address on Tuesday while President Jacob Zuma will use his State of Nation
address on Thursday -- when the indaba ends -- to end the nationalisation
debate and reassure investors.

The "land grab style" of nationalisation dominated talk at the indaba last
year, giving investors and mining bosses jitters and creating market
uncertainty for the past two years.

This year delegates from around the world, braving the blistering heat in
Cape Town, will hear about the government's model to increase control of the
country's $2.4-trillion non-energy mineral wealth and push up taxes on
mining companies' profits and exports.

"I can't put my head on the block about nationalisation but we are
definitely going ahead with the beneficiation policy. We want a model where
everyone works together, the private sector, state-owned enterprises and
government, that benefits all South Africans," said Oliphant, indicating
that government was moving more towards a centralised model where government
consolidates all its resource assets.

'Comparative advantage'
He added: "We're still not realising the considerable potential presented by
our comparative advantage in minerals. Investors need to realise that they
can't just come here and grab and go. The industry has not been committed to
beneficiation over the years. That is going to change. There will be new
rules."

The National Development Plan, the New Growth Path -- which has a 5-million
jobs by 2020 target -- and the associated Industrial Policy Action Plan all
call for an increase in beneficiation of strategic minerals as a way to
enhance value of exports and stimulate investment in manufacturing. As it
stands, raw minerals are exported out of the country and the finished
product is imported.

Oliphant said the value chain sectors targeted for beneficiation are iron
ore and steel, energy commodities, autocatalytic converters and diesel
particulates, titanium and jewellery.

These are some of the interventions contained in the ANC's five economic
policy documents, which Oliphant said will be released for public debate
from Monday before it goes to the ANC's policy conference in June and taken
to the elective conference in December.

But given the debate between government officials and the private sector at
the roundtable discussion, the new resource nationalism plan is also likely
to sit uncomfortably with investors and mining companies.

Apart from increased regulation around safety and rehabilitation of mines
and transformation targets, one of proposals on the table is state control
through rent share, and growth and development.

Some of the interventions include a 50% tax on the sale of mining rights, a
wind fall tax of up to 50% on super-profits (defined as a return on
investment of 22%), a reduction in the royalty tax from 4% to 1%, a super
ministry merging five ministries to police minerals governance and a rent
share of mining rights.

Investment regime
But BHP Billiton South Africa chairperson Xolani Mkhwanazi emphasised: "If
the mining regime disadvantages the investment regime, then investors will
look at a country with more competitive regulation."

The perceived over regulation of the industry, talks of nationalisation and
infrastructure constraints were some of the main reasons why South Africa
missed the resources boom that followed the 2008 global financial crisis.

Mining, once the highest contributor to South Africa's gross domestic
product, now only accounts for 6% and it has shed more than 100 000 jobs
since the financial malaise. Poor or lack of infrastructure was identified
in national treasury's medium term budget statement as choking the mining
industry and stumping growth.

There were also stinging comments from Oliphant about mining companies
creaming profits but their poor record on the safety, environmental,
transformation and community development side.

"Where has all those profits gone to. The realities on the ground show there
has been no transformation. Mines implement non-sustainable income
generating projects that are not yielding any benefits to the communities
and most are not creating jobs. Government will push for that to change."

But Bheki Sibiya, head of the Chamber of Mines, hit back saying government
needed to more decisive around legislation and its engagement with
companies. "Mining is one of the top five priorities of government, yet
Zuma, as president of both the ANC and our country, has never once engaged
with the mining industry."

He added to the debate around the mining industries lack of competitiveness
compared to other mining investment destinations such as Canada and
Australia.

"Yes, our record on safety is poor. We hang our heads in shame but we're
working on it. We're learning from the Australians, who have an excellent
safety record, even though we don't like them as a country. But we're losing
to other jurisdictions because we struggle with railway, electricity and
water infrastructure," he said.

Public, private engagement
He cited the Northern Cape as an example, saying more public, private
engagement was needed: "We have 85% of the world's manganese reserves there,
but only 23% of the world market. We need to work as team South Africa to
win. We're supposed to be equal partners. Sometimes we score a goal, then
celebrate and forget to score another goal."

Sibiya called for the super highway between Sishen in the Northern Cape and
Saldanha Bay port along the Western Cape coast opened up to everyone.

This was after Peter Tamane of South African Mining Development Association,
representing the junior minors, pointed out that infrastructure and lack of
access to the ports was constraining growth of the smaller players.

He said getting resources out through Saldanha cost almost 80% less than
using Coega, for example. Sibiya added that Coega was a "failure" and had
become a "white elephant because it was built by government for political
reasons".

The deputy minister retorted that the presidential infrastructure
coordinating committee, which was set up in July last year, would deal with
some of these issues.

National Planning Commission Minister Trevor Manuel will also lead a panel
discussion that will scrutinise the infrastructure problems in the context
of the importance of mining and resources in the growth and development of
the economy. He will ask: "Could South Africa miss the boat?"

More than 6 000 individuals representing more than 1 000 international
companies and about 40 African and non-African government delegations are
expected to flock to the Mother City over the next few days for the Indaba.
They include fund managers, mining analysts, investment bankers, government
officials and chief executives of global and local mining companies.

While it's a talking shop, the beginnings of my big deals are said to have
been facilitated in previous years at the indaba.

3.8 SABC boss furore

Moffet Mofokeng, Sunday Independent, 5 February 2012

A top supporter of President Jacob Zuma, with neither a matric certificate
nor top management experience is set to land the R2m job as chief operating
officer (COO) of the financially-crippled SABC.

And the SABC has decided to advertise the strategic, second-most powerful
post only internally, for only three working days and, according to newly
appointed group chief executive officer Lulama Mokhobo, matric is not a
requirement for the post.

The requirements for the job, one of the key positions in the corporation’s
turn-around strategy, have been tailor-made to suit Hlaudi Motsoeneng –
essentially an ANC deployee at the SABC – because he has no matric and has
no managerial experience at that level, according to insiders.

He is the same man fingered by an SABC internal audit probe as having lied
about having a matric certificate when he applied for a position at the
broadcaster’s Bloemfontein office several years ago.

Should Motsoeneng land the job, he would possibly become the only COO of
such a major public institution without matric.

The move has plunged workers in the financially struggling organisation into
panic, asking how a person without an undergraduate qualification could be
the second in command of an organisation with a R4.7 billion turnover.

At e.tv, for example, Bronwyn Keene-Young is the chief operating officer.
She has a masters degree from Wits University and an LLB.

Before her appointment at e.tv, she co-founded the Media Monitoring Project
in 1993. Another COO Graham Wayne Dempster, of Nedbank, one of the country’s
top banks, is a qualified chartered accountant and has experience in retail
banking.

The Sunday Independent learnt that Mokhobo advertised the COO job on Friday,
but apparently deleted parts where academic qualifications were required
ostensibly to ensure that Motsoeneng, who does not even have a matric but
has strong political backing, qualified for the position.

Staff at the SABC are now questioning the deletion of the academic
qualifications from the advert and the three working days allocated to
prospective candidates to apply for the job. Applicants have until Tuesday
to apply.

They argue that the position needed someone with suitable qualifications and
Motsoeneng, who is said to have Zuma’s ear, was not the right candidate.

The advert states that the person who would be appointed to the job should
be a “commercially astute executive, with broad ranging experience of
success in broadcasting”, have “well developed negotiation and
relationship-building skills at the most senior level” and the “ability to
translate and promote the integration of new business objectives into
financial, human capital and organisational development changes on an
ongoing basis”.

Approached for comment, Motsoeneng said “I don’t want to comment on this
issue” and added: “speak to the CEO. She is here with me” before handing
over his cellphone to Mokhobo.

The CEO said the job did not require a degree and was open only to all SABC
employees. “We are looking for a candidate who understands the business of
the SABC. We don’t have the time to be in a state of inertia. It does not
require a degree to run a business operation. That does not require an MBA.
Anybody internally can apply for this job. We are very clear that we are not
opening it to everybody,” she said.

She said the position did not require technical skill but an understanding
of how business operations are run.

“You need the ability to oversee complex situations”. Responding to claims
that the advert is tailor-made to suit Motsoeneng, ...

read more »

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