Media Monitor, 8 June 2011

The government has unleashed a two-pronged plan to boost jobs through a grant funding system to private sector firms to mop up unemployed youth and a state procurement plan to bolster supply and services from domestic firms.

Finance Minister Pravin Gordhan announced that the government has come to the jobs-creation party with R2 billion to be more or less matched by the private sector by a further R2bn – taking funding this year to about R4bn – to create opportunities mainly for the unemployed and the young.

The system, expected to target established concerns in the form of grants and not loan funding, will be administered by the Development Bank of Southern Africa (DBSA).

This one-rand-for-one-rand ratio would apply generally, but NGOs and companies with a developmental effect might be allowed to bring less to the party, Treasury director-general Lungisa Fuzile said.

A Treasury official said the spending by the receiving entity would be closely monitored.

The radical steps to fast-track job-fuelling growth were announced at a media briefing ahead of his budget vote in Parliament by Gordhan.

He also informed MPs later that the rules of engagement with the state over procurement would be changed to ensure that preference should be given to local goods and services by all levels of government – municipal, provincial and national.

Treasury spokeswoman Lindani Mbunyuza said the regulations would be gazetted by the end of the week, but she could not give more details before then. She said, however, that the regulations would change the local content threshold.

But Gordhan told MPs: “Following an extensive consultation process, revised regulations will be promulgated this week to align the preferential procurement system with the Broad-Based Black Economic Empowerment Act and its codes of good practice.

“This reform will further encourage the development of small enterprises and take into account local content objectives associated with government’s industrial policy action plan.”

The overall objective of the regulations is to ensure that jobs are not lost in the domestic economy to overseas suppliers to the government and that procurement actually boosts local job accumulation.

City of Cape Town mayoral committee member for finance Ian Neilson said the city government, run by the official opposition, had not caught sight of the regulations “but we… support any reasonable measures to promote local manufacturing… there are considerations about building the local economy”.

Meanwhile, Gordhan said a grace period of six months would be allowed for the black economic empowerment rating of suppliers and the current regulations would stay in place until December 7.

Turning to the jobs fund, the finance minister said it would seek project proposals in four areas: enterprise development, infrastructure investment, support for work seekers and overcoming institutional barriers to job creation. “The fund is founded on the recognition that we don’t yet know enough about how to address our unemployment challenge.”

National Union of Mineworkers general secretary Frans Baleni will chair the fund’s investment committee, while Business Trust chief executive Brian Whittaker will be his vice-chairman.

Whittaker said that a good example of a project that could be supported was in the outsourcing sector – such as a call centre. Here the government provided funding for training and the employers managed the training process. After successful training, the employer provided work to trainees.

It is envisaged that the jobs fund will create 150 000 jobs this year. The government’s aim through the New Growth Path is at creating 5 million jobs over 10 years

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1.2 Department calls off presentation of Aurora proposals

By Ayanda Mdluli and Dineo Matomela, Business Report, 8 June 2011

The Department of Labour’s presentation detailing its position on Aurora Empowerment Systems, the ousted operator of the Grootvlei and Orkney gold mines, was cancelled yesterday.

The presentation, scheduled to take place at a joint meeting of the portfolio committees on labour and mineral resources this Friday, would have “spelt out its position” on the firm and its failure to pay miners.

The department would not give a reason for the sudden cancellation but only said that the presentation had been called off indefinitely.

Mpumelelo Gona, the chairman of the mineral resources portfolio committee, said the presentation had been postponed due to the parliamentary programmes taking place this week. “This week has been set aside for the budget vote, even the meeting we were going to have with the mining and safety council has been postponed.”

He said the portfolio committees would have a planning session to decide on a way forward. Gona added that the portfolio committees on water and environmental affairs would also be included, due to the seriousness of the Aurora saga.

“Other members of Parliament have taken a serious interest in the matter and once we sit we will decide on the appropriate action.”

He did not say what steps would be taken against the firm whose key figures include Khulubuse Zuma, a nephew of President Jacob Zuma, and Zondwa Mandela, a grandson of former president Nelson Mandela.

Aurora, the provisional liquidators of Pamodzi Gold, the Department of Mineral Resources, the National Union of Mineworkers and Solidarity had made presentations to Parliament, which Gona said would be interrogated according to the new developments in the case.

Aurora was given the boot last week by the provisional liquidators of the former Pamodzi mines and Gona believed that “this was not enough”, but could not say what was to be done until the portfolio committees had met.

Gideon du Plessis, the deputy general secretary of Solidarity, said in a statement last week that Aurora was not only responsible for the massive social crisis which impoverished more than 40 000 people, but also for stripping the mining assets and causing South Africa as an investment destination immeasurable damage.

The Department of Labour had indicated that Friday’s appearance “follows the continued failure by the mining company to pay wages to thousands of employees”.

The department said its intervention depended on the co-operation and assistance of the unions, Aurora’s management, and the various departments that were involved.

Aurora yesterday opposed a Solidarity application to liquidate the company to force Aurora to pay R3.1 million in outstanding salaries. The application hearing, held in the North Gauteng High Court, was postponed to July 7 after Aurora filed papers notifying the court it would oppose the motion.

Nic Arnold, the head of legal services at Solidarity, said the case was postponed to give the controversial mining firm enough time to follow the postponement motion. “We are hoping that the liquidation of Aurora will be successful.”

Last month the Master of the High Court in Pretoria fired two of the joint provisional liquidators of Pamodzi, Enver Motala and Gavin Gainsford, to “protect the integrity of the liquidation process”. - Business Report

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1.3 Num strike set for Friday

Jacob Moshokoa, Eyewitness News, 8 June 2011

The National Union of Mineworkers (Num) has confirmed that its Exarro members will embark on a strike later this week.

The mass action follows the mining company's announcement in 2010 that it may retrench up to 300 workers to improve its productivity and reduce costs.

Num's Lesiba Seshoka said, “After we have balloted them we will then notify the employer of our intention to go on strike.”

He added, “They way things are going, it looks likely that the strike will begin on Friday.”

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1.4 Shock, anger at doctor's killing

NEWS24, 7 June 2011

Mbombela - Security guards must search everyone entering a state institution, including hospitals, to make sure they do not have weapons, the Mpumalanga safety and security department said on Wednesday.

"Access control at hospitals is the duty of the security guards posted there and they should make sure that people accessing the facilities are always checked to ensure that everybody is safe," safety and security MEC Vusi Shongwe said.

Shongwe condemned the killing of a doctor at the Middelburg Hospital on Tuesday.

He said it was regrettable that the incident happened in a government establishment.

Doctor stabbed

"Through our security management officials, the department will also establish how the suspect gained entry to the hospital with a knife, without the security guards detecting him, and steps should be taken against those guards who failed to perform their duties as required," he said.

On Tuesday a 32-year-old patient allegedly stabbed Dr Senzosenkosi Mkhize in the chest, and a security guard who tried to intervene, in the wrist.

At the time, Mkhize was working in the out-patient department, where the patient had gone for a follow-up consultation.

The guard was admitted to the same hospital in a stable condition. Mkhize was transferred to a nearby private hospital in a critical condition and died later in the day.

The patient fled the scene and was still at large.

Shongwe sent his condolences to Mkhize's family and wished the injured security guard a speedy recovery.

Anger at killing

The Police and Prisons Civil Rights' Union (Popcru) said on Wednesday it was disgusted by the killing.

"Most hospitals are suffering from security lapses which, amongst others, are caused by lack of security intelligence at these institutions, with lowly trained security companies issued with tenders and the absence of continuous observation of all patients in the vicinity of health sites," spokesperson Mampane Norman said.

"We join all progressive trade unions organising within the health sector to campaign vigorously to change the status quo."

The Democratic Nursing Organisation of SA (Denosa) was angered by the killing.

"As an organisation that advocates for safe practice environment for all health care workers we are disturbed that such incidents of brutality are persisting in our health centres," spokesperson Asanda Fongqo said.

"As Denosa we are concerned by the safety and security of healthcare workers in the province as this is not an isolated incident, this issue needs to be addressed as a matter of urgency if we are to overhaul our health system."

Both trade unions sent condolences to Mkhize's family and friends.

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1.5 Everyone entering hospitals must be searched: MEC

The Times, 8 June 2011

Security guards must search everyone entering a state institution, including hospitals, to make sure they do not have weapons, says the Mpumalanga department of safety and security.

"Access control at hospitals is the duty of the security guards posted there and they should make sure that people accessing the facilities are always checked to ensure that everybody is safe," safety and security MEC Vusi Shongwe said in a statement on Wednesday.

Shongwe condemned the killing of a doctor at the Middelburg Hospital on Tuesday.

He said it was regrettable that the incident happened in a government establishment.

"Through our security management officials, the department will also establish how the suspect gained entry to the hospital with a knife, without the security guards detecting him, and steps should be taken against those guards who failed to perform their duties as required," he said.

On Tuesday, a 32-year-old patient allegedly stabbed Dr Senzosenkosi Mkhize in the chest, and a security guard who tried to intervene, in the wrist, around midday. At the time Mkhize was working in the out-patient department, where the patient had gone for a follow-up consultation.

The guard was admitted to the same hospital in a stable condition. Mkhize was transferred to a nearby private hospital in a critical condition and died later in the day.

The patient fled the scene and was still at large.

Shongwe sent his condolences to Mkhize's family and wished the injured security guard a speedy recovery.

The Police and Prisons Civil Rights' Union (Popcru) was disgusted by the killing.

"Most hospitals are suffering from security lapses which, amongst others, are caused by lack of security intelligence at these institutions, with lowly trained security companies issued with tenders and the absence of continuous observation of all patients in the vicinity of health sites," spokesman Mampane Norman said in a statement.

"We join all progressive trade unions organising within the health sector to campaign vigorously to change the status quo."

The Democratic Nursing Organisation of SA (Denosa) was angered by the killing.

"As an organisation that advocates for safe practice environment for all health care workers we are disturbed that such incidents of brutality are persisting in our health centres," spokesman Asanda Fongqo said in a statement.

"As Denosa we are concerned by the safety and security of healthcare workers in the province as this is not an isolated incident, this issue needs to be addressed as a matter of urgency if we are to overhaul our health system."

Both trade unions sent condolences to Mkhize's family and friends.

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1.6 Popcru 'disgusted' by doctor killing

The New Age, 8 June 2011

The Police and Prisons Civil Rights' Union (Popcru) is disgusted by the killing of a doctor at the Middleburg Hospital in Mpumalanga, a spokesman said on Wednesday.

"We join all progressive trade unions organising within the health sector to campaign vigorously to change the status quo."

On Tuesday a 32-year-old patient allegedly stabbed Dr Senzosenkosi Mkhize in the chest, and a security guard who tried to intervene, in the wrist, around midday. At the time Mkhize was working in the out-patient department, where the patient had gone for a follow-up consultation.

The guard was admitted to the same hospital in a stable condition. Mkhize was transferred to a nearby private hospital in a critical condition and died later in the day.

The patient fled the scene and was still at large.

Popcru called on police to "hunt" for the 32-year-old.

The Democratic Nursing Organisation of SA (Denosa) on Wednesday said it was angered by the killing.

Both trade unions sent condolences to Mkhize's family and friends.

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1.7 NUM in Sishen housing dispute

Luphert Chilwane, The New Age, 8 June 2011

The National Union of Mineworkers (NUM) has declared a dispute with Kumba’s Sishen Iron Ore Company, comprising Thabazimbi mine in Limpopo, Kolomela in North West and Sishen in Northern Cape.

The dispute concerns the company’s delay in implementing a clause related to workers’ housing allowances, agreed to in the last wage settlement in 2010.

The three operations employ more than 8000 workers.

“There are workers in three areas of operation who stay far from their place of work.

“As a union we feel it is the company’s responsibility to help them out either with decent accommodation, or providing free transport,” said NUM chief negotiator, Eddie Majadibodu, on Monday.

He said the mining charter required mining houses to assist or provide housing to employees living far from work and, if that was not possible, they should add transport allowances to workers’ monthly salaries.

Majadibodu added that the union was highly perturbed that the company failed to implement the terms of the agreement and failed to respond to letters of dispute.

“We can only hope they come to the party, otherwise we will be left with no option but to call on a strike” he said.

In a response to NUM’s claims, Anglo American, which owns Kumba, has acknowledged receipt of the union’s letter and expressed its commitment to engage with them to address their concerns.

“In line with the process provided for in labour legislation, we will engage with the union to address their concerns, as stated in our letter to them,” said Anglo American spokesperson, Gert Schoeman.

Meanwhile, the union was also set to meet with its Exxaro branches to decide on a massive strike over the company’s plans to retrench more than 300 employees. “We have already met two branches yesterday and the likelihood is that by the end of this week, we might be serving Exxaro with notice of the strike,” said Khaya Blaai, NUM’s head of collective bargaining. If the strike goes ahead, more than 7000 workers are expected to participate.

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2. South Africa

2.1 I’ll do as ANC tells me: Zuma

Ryland Fisher, Charles Molele and Thokozani Mtshali, The New Age, 8 June 2011

President Jacob Zuma has denied that he promised to serve only one term as ANC president shortly after defeating incumbent Thabo Mbeki at the party’s elective conference four years ago.

“I never said I would serve one term and I have never said that I now want two terms,” said Zuma.

“I said a second term is a decision of the ANC but people twist it now,” Zuma told The New Age during an exclusive interview at his official Pretoria residence, Mahlamba Ndlopfu, this week.

“ I have never defied the ANC. I will never defy the ANC. If the ANC said serve one term, that will be fine. I am a cadre of the ANC.”

The issue of whether Zuma would stand for a second term arose within weeks of the watershed Polokwane conference in Limpopo, where Zuma reportedly told senior ANC leaders that he would not seek a second term.

Reports quoting senior party sources at the time claimed that among those to whom he had made a commitment to serve only one term was ANC heavyweight and current High Commissioner to the UK, Zola Skweyiya.

Zuma allegedly even told a political reporter that, like former president Nelson Mandela, he would serve for one term before going on retirement and serving the party only on an ex-officio basis.

But this week Zuma dismissed the reports as untrue.

“I had a discussion with a journalist after the Polokwane conference who asked me that ‘now that you are ANC president and likely president of the country, how long would you like to serve?’

“I said that decision was taken by the ANC, it was not my choice. The ANC is the only one that can say ‘now we want you to be president or not to be president’. The thing that I said to this journalist – it was just an aside comment – was that if this was my choice, I would serve one term.”

The significance of what Zuma did, or didn’t, say, has re-emerged ahead of the ANC Youth League’s conference next week in Midrand, with Zuma no longer able to count on his former backers in the ANCYL, Cosatu or the SACP to back him for a second term.

There are suggestions that the Youth League’s conference would be a proxy for leadership wars that are expected to erupt at the ANC’s elective conference next year.

Zuma said, “I do not know that the league conference is being used for 2012. I’m not worried

at all how other people are using it.”

Zuma also downplayed suggestions that his relationship with league president Julius Malema had deteriorated.

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2.2 ‘Cosatu claims baseless’

Witness, 8 June 2011

THE South African Communist Party (SACP) in KwaZulu-Natal, has joined its fellow tripartite alliance partner Cosatu in lambasting the appointment of Msunduzi Municipality deputy mayor, Alpha Shelembe, and council speaker, Zonke Mbatha.At a press briefing held in Durban yesterday, the SACP’s provincial executive committee (PEC) said that it was “very disappointed with the deployment of some councillors who were implicated in acts of corruption, but have been brought back into key municipal positions”.The SACP’s remarks on the Msunduzi leadership come hot on the heels of similar comments on the appointments by Cosatu and municipal workers affiliated to the South African Municipal Workers’ Union (Samwu). The unions slammed Shelembe and Mbatha’s appointment to top positions on Monday.
Shelembe was previously council speaker and Mbatha was an executive committee (Exco) member when the municipality was placed under administration for corruption, financial mismanagement and maladministration.
“We believe that this act of appointing people accused of looting state resources and depriving ordinary citizens of basic services flies in the face of this government’s commitment to fight against corruption and run clean local government,” said SACP provincial secretary Themba Mthembu.
“Worse still, these appointments were done when there was an understanding reached between the ANC and its alliance partners that people who were implicated or accused of corruption will not be brought back to the same municipalities that they looted.”
The PEC regarded the deployments as scandalous and blemishing the name of the ANC. The SACP PEC also criticized the appointment of uMgungundlovu District speaker although the name of the district’s speaker was not divulged at the briefing, ANC insiders have said that former Umngeni Municipality mayor, Edward Dladla, was likely to be nominated to the position.

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2.3 SACP criticises ANC top jobs choices

Chris Makhaye, The New Age, 8 June 2011

The SACP has joined Cosatu and opposition parties in condemning the appointment of people who are accused of fraud and corruption in key positions in the Umsunduzi (Pietermaritzburg) municipality and the nearby Mgungundlovu.

This follows the appointment of Alpha Shelembe and Zonke Mbatha as Umsunduzi municipality’s deputy mayor and speaker respectively. The SACP said such appointments made it difficult to fight fraud and corruption in local government.

On Monday, both Cosatu and the DA condemned the appointment of the two who were part of the previous council, which was so badly run that it had to be put under administration after financial collapse because of mismanagement.

At a briefing on Tuesday, SACP provincial secretary Themba Mthembu said the party was disappointed the ANC had brought back people who were implicated in acts of corruption, and put them in key positions.

“We believe that this act of appointing people accused of looting state resources and depriving ordinary citizens their basic services flies in the face of this government’s commitment to fight corruption and run clean local government”.

“The SACP’s provincial executive committee regards certain deployments in the Umsunduzi municipality and Umgungundlovu district as scandalous and blemishes the name of our glorious movement – the ANC.”

Meanwhile, the ANC Youth League has accused Cosatu of hypocrisy for condemning other appointments while rejoicing those where its members were given key positions

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2.4 Malema rebuked over ‘ANC plot’ claims

SIBONGAKONKE SHOBA, Business Day, 8 June 2011

AFRICAN National Congress (ANC) secretary-general Gwede Mantashe yesterday criticised youth league leader Julius Malema for saying senior ANC leaders were plotting to disrupt the league’s elective congress as part of a ploy to oust him.

Mr Mantashe said Mr Malema’s claim was an attempt to create a "scapegoat" before the league congress next week.

His response to the youth league’s claims is the latest indication of a tense relationship between the youth league and its mother body. The league seems unhappy with the current leadership of the ANC and is likely to lobby for its removal next year should Mr Malema be re-elected next week .

At a media briefing at Luthuli House, Mr Mantashe echoed recent comments by Congress of South African Trade Unions (Cosatu) general secretary Zwelinzima Vavi that unemployment was a ticking time bomb, but urged the labour federation not to be a stumbling block when the government implemented plans to tackle the problem.

Cosatu has opposed the government’s wage subsidy initiative as it suspects some employers could use it to replace permanent staff with youth participating in the scheme .

The youth league is preparing for its elective conference next week. Under Mr Malema, the league has openly campaigned for Sports Minister Fikile Mbalula to stand against Mr Mantashe at the ANC’s elective conference in Mangaung next year . Speculation is that the league would prefer President Jacob Zuma not to serve a second term.

To launch a campaign against the ANC’s current leadership, Mr Malema would have to be re-elected at next week’s conference, where he is expected to go up against Gauteng league chairman Lebogang Maile.

Mr Malema has repeatedly claimed there is a plot by some senior leaders of the ANC to disrupt the league’s conference , to pave the way for an interim leadership .

But Mr Mantashe ridiculed this claim yesterday. "When a leader says the conference is going to be disrupted, that leader is creating an environment for disruption by creating a scapegoat upfront."

He said it was the league’s responsibility to organise an orderly conference. "If it is disrupted, that youth league leadership will have to account for that disruption because it has the prime responsibility to ensure that it’s not disrupted ... we don’t create scapegoats for responsibility. The youth league has a responsibility to run a decent conference as an organisation."

Referring to the league’s chaotic 2008 congress in Mangaung, where Mr Malema was elected, Mr Mantashe said no ANC leader was involved in that incident.

"Who planned for the disruption of the Mangaung conference? We saw bums outside there, everything. Was there a leader of the ANC who ordered them to take off their trousers?" he asked.

Youth league spokesman Floyd Shivambu refused to comment, saying he had not heard what Mr Mantashe had said.

Mr Mantashe agreed with Mr Vavi’s statement that unemployment was a looming crisis.

Speaking at the University of Johannesburg this week, Mr Vavi said SA needed a strategy to deal with "disillusioned youth".

Mr Mantashe said yesterday Mr Vavi was correct. "If you have many people who are unemployed, you have an army of people who are potential counterrevolutionaries," said Mr Mantashe.

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2.5 ANC to probe candidate irregularities

SAM MKOKELI, Business Day, 8 June 2011

THE African National Congress (ANC) will start its investigation into irregularities in its local government elections list today, with a task team formed two weeks ago set to visit KwaZulu-Natal.

The party appointed national executive committee member Nkosazana Dlamini-Zuma to lead the task team. It is to investigate irregularities and grievances that arose when the ANC was preparing its lists of councillor candidates in the run-up to last month’s local government elections.

However, it has been speculat ed that even if the ANC were to find that some councillors had irregularly made it onto the lists, the law would prevent the party from removing them. It would have to ask them to resign or face a legal battle.

Complaints that some candidates appeared on ANC lists without the backing of communities led to protests and made campaigning difficult for the party in some areas.

The ANC had involved community members to vet and approve the party’s candidates for the first time. But this backfired in some areas, as local party leaders put preferred candidates on the list, leaving out those favoured by communities.

Ms Dlamini-Zuma said her team would address all problems relating to the list process. "The ANC prides itself for having been the only political organisation, which opened its candidates’ list internal selection process to broader community participation and scrutiny. We did so to strengthen democracy within the ANC and broader society."

Western Cape ANC secretary Songezo Mjongile said 18 branches in the province had protested over the list process. The South African Communist Party in KwaZulu-Natal on Monday complained about politicians who had been accused of corruption but made it onto the lists.

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3. Comment

3.1 ANCYL needs new agenda

By S'Thembiso Msomi, The Times, 8 June 2011

It does not matter that much whether Julius Malema or his challenger, Lebogang Maile, wins the ANC Youth League presidential race next week.

The two may represent contrasting leadership styles - Malema is a populist while Maile is seen as some kind of a moderate - but the election of either will do little to change the direction the league has taken over the past two decades.

Yet the leadership race continues to dominate headlines as league members prepare for their 24th national congress to be held at Gallagher Estate in Midrand, Gauteng, next week.

This obsession with the contest is understandable when one considers the central role Malema now plays in our politics.

Much of the public commentary about the congress in recent weeks has correctly focused on the political implications of a Malema victory or defeat for next year's ANC elective conference.

The general consensus seems to be that a Malema victory would spell trouble for President Jacob Zuma's ambition to serve a second term as ANC leader.

Even though Maile's own views on whether Zuma should lead the ruling party beyond 2012 are unknown, it is generally assumed that Luthuli House would prefer the current Gauteng Youth League chairman to the maverick Malema.

And herein lies the problem with the ANC Youth League.

It has allowed itself to be reduced to little more than a lobby group whose usefulness is limited to acting as shop stewards for ANC leaders with ambitions for higher office.

Youth League leaders, from the times of its first post-banning president Peter Mokaba, have always seen this as their most important role - boasting that they were king makers in the ANC and government.

The tragedy is that the league's potential is much greater than that of being a mere ANC and government leadership succession vehicle.

When the league was established in 1946, the ANC had lost its sense of direction and urgency. Party leaders seemed content with making meaningless speeches and writing petitions to London that did not advance the liberation struggle any further.

It was the youth league of the time - led by bright leaders such as Anton Lembede, Walter Sisulu and Nelson Mandela - which shook the ANC out of its slumber and forced the organisation's leaders to adopt a more meaningful political programme.

Today, the ANC has yet again lost its compass - with greed and in-fighting hampering its ability to transform South Africa into a truly non-racial and prosperous society.

But it would be foolhardy to expect the current crop of youth league leaders - whether led by Malema or Maile - to follow in Mandela and Sisulu's footsteps by steering the ANC ship back on course.

The crass materialism, greed and factionalism that have inflicted the ruling party have had an even more devastating impact on the youth league.

Instead of the leadership battle - which, by the way, looks like a non-contest as most provinces have said they would back Malema - this is what should occupy the minds of the 5500 expected delegates at next week's conference.

They should be redefining a new role for themselves that goes far beyond the league's narrow political programme.

Can you imagine if the league were to use its structures, which are spread throughout the country, to pioneer a new education campaign aimed at lifting the performance of schools, especially in poor communities where the matric pass rate remains extremely low?

Surely that would be more revolutionary than any of the policy programmes the league is set to adopt next week.

League leaders fashion themselves as the "economic freedom fighters", but what better way to promote economic freedom than by helping the country produce young entrepreneurs and skilled individuals who have the potential of propelling South Africa to future prosperity?

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