COSATU Media Monitor, 15 May 2012

The streets of Joburg are set for a political showdown between the DA and Cosatu on Tuesday when party members are set to march on the federation’s headquarters.

The DA said on Monday night it was going ahead with its planned march on Cosatu House in spite of the ANC appealing for the opposition party to abandon its plans and unions turning up the heat.

However, Johannesburg Metro Police spokesman Wayne Minnaar said the DA would not be allowed to march near Cosatu’s headquarters.

“A security assessment was done and it was decided that the route would be changed so that speeches are done at a neutral venue,” Minnaar said late on Monday.

“They won’t be allowed near Cosatu House,” Minnaar told Sapa.

Minnaar said about 3 000 marchers were expected to converge at Beyers Naude Square.

The march will start at 11am and proceed to President, Rissik, Jeppe, Sauer, Burger, Jorissen, Melle and Simmonds streets.

It will end on the lawns of the Joburg Civic Theatre.

“This action by the DA is not only confrontational but is extremely provocative,” ANC national spokesman Jackson Mthembu said.

DA Leader Helen Zille, party youth leader Makashule Gana, its parliamentary leader Lindiwe Mazibuko and national spokesman Mmusi Maimane will be leading the march to Cosatu House in Braamfontein, where they plan to address their marchers.

But Cosatu and its affiliates intend massing in a park across the road from the labour federation’s headquarters.

The labour federation has called on its affiliates to turn out in their numbers. Metalworkers union Numsa said on Monday night that it, commercial, catering and allied workers union Saccawu, the Communication Workers Union and members of the Progressive Youth Alliance – including the ANC Youth League, SA Students’ Congress (Sasco) and Young Communist League would “occupy or swamp the streets”.

The DA says the march is to protest against Cosatu’s opposition to the youth wage subsidy, a policy it says could create an estimated 423 000 jobs for young, unemployed people.

But Numsa sees it as a declaration of class war by a party it perceives as representing the interests of white monopoly capital and bent on turning those with jobs against the mass of unemployed in a divide-and-rule tactic.

“The DA has opened the chapter of open political warfare! They have sown the wind, they shall reap the harvest!” a Numsa statement declared, welcoming “this class provocation”.

Mthembu said: “The ANC would like to request the DA to desist from marching to Cosatu House, as this will heighten unnecessary tension.”

But DA spokesman Mmusi Maimane said: “As far as we are concerned the march is going ahead.”

The tactics being applied by the ANC and Cosatu were unfortunate and unfair. “This issue is important enough for us not to bow down to attempts at intimidation but to march for the right (of) youth to be employed.

“For how long can Cosatu hold this position when (Finance Minister Pravin) Gordhan has already allocated money in the budget for it and (Planning Minister Trevor Manuel) agrees it would be a way of stimulating job opportunities for the young? We want the march to be peaceful. We are not seeking confrontation”, Maimane said.

The party had received permission for the march from metro police (JMPD) and a route had been agreed. JMPD members would provide security and the DA had also arranged its own marshalls, Maimane said. The party was expecting DA members and young unemployed people to attend.

1.2 DA defiant over Cosatu House march

News24, 14 May 2012

The DA said on Monday it would march to Cosatu House, in Johannesburg, even though the Johannesburg metro police said earlier that this would not be allowed.

The Johannesburg metro police had told the media that marchers would not be allowed to proceed to Congress of SA Trade Unions headquarters, but "hasn't sent any formal documentation to the DA", said spokesperson Mmusi Maimane.

"We will proceed with the original plan and the original route," he said.

Earlier, metro police spokesperson Chief Superintendent Wayne Minnaar said the Democratic Alliance would be allowed to march in downtown Johannesburg on Tuesday, but not to Cosatu House.

Instead, the march would end on the lawns of the Johannesburg Civic Theatre.

He said the route had been changed after a "security assessment".

Cosatu and its affiliates had called the march and provocative and there have been threats of confrontation, with the National Union of Metalworkers of SA threatening to "swamp the streets outside Cosatu House".

"... It was decided that the route would be changed so that speeches are done at a neutral venue," said Minnaar. "They [the DA] won't be allowed near Cosatu House," he said.

Jobs

On Monday night, DA leader Helen Zille posted a message on the social networking site Twitter, indicating that the march would go ahead as planned.

"DA march is ON tomorrow. Mischievous reports on SABC radio saying march cancelled are WRONG. See you tomorrow! #fb"

Zille is to lead the march with, Maimane, DA youth leader Makashule Gana, and the party's parliamentary leader Lindiwe Mazibuko.

Minnaar said around 3 000 marchers were expected to converge at Beyers Naudé Square.

According to him, the march would start at 11:00 and would proceed along President, Rissik, Jeppe, Sauer, Burger, Jorissen, Melle and Simmonds streets.

The DA said it was marching about job losses.

"The march is to protest against the trade [union] federation's continued opposition to the youth wage subsidy, a policy that could create an estimated 423 000 jobs for young, unemployed South Africans," said spokesperson Kelly Miller.

She said Cosatu had become a stumbling block to job creation.

'Opportunistic'

The ANC and Cosatu have urged the DA not to march.

"Cosatu calls upon the DA to reconsider its decision to march to Cosatu House tomorrow [Tuesday]," said spokesperson Patrick Craven.

"There is no way this march will make any contribution to solving the problem of youth unemployment, which they claim to be so concerned about, and they will certainly not convince workers to agree with their phony solution of a youth wage subsidy."

The ANC's Jackson Mthembu said the decision to march was "ill-informed and opportunistic".

"If the DA has any view regarding the issues of labour brokers and youth wage subsidy, our contention is that they must engage with Cosatu rather than being confrontational and provocative," he said in a statement.

"The only way, in our view, that any of the parties can influence one another and even influence government around these matters is through meaningful engagement."

The National Union of Metalworkers of SA (Numsa) and its affiliates said the march was informed "by the provocative, deceitful and cheap political blackmail from the chief representatives of white monopoly capital and apartheid apologists the DA".

Numsa said it would be joined by the SA Commercial, Catering and Allied Workers' Union, the Communication Workers' Union, the Progressive Youth Alliance, the ANC Youth League, the Young Communist League and the SA Students' Congress.

In a statement, Numsa spokesperson Castro Ngobese said the DA was trying to coerce the ANC-led government, particularly its ally Cosatu, to agree to the neo-liberal proposal of a youth wage subsidy.

He said the subsidy would create a two-tier labour system which would result in a flood of retrenchments as major factories favoured youth wages. - SAPA

1.3 Defiant Zille says march on Cosatu to go ahead

Natasha Marian, Business Day, 15 May 2012

THE Democratic Alliance (DA) said yesterday it would march to Cosatu House today even though the Johannesburg metro police said earlier this would not be allowed.

The Johannesburg metro police had told the media that marchers would not be allowed to proceed to Congress of South African Trade Unions (Cosatu) headquarters, but "hasn’t sent any formal documentation to the DA," said spokesman Mmusi Maimane.

"We will proceed with the original plan and the original route."

Earlier, metro police spokesman Chief Supt Wayne Minnaar said the DA would be allowed to march in downtown Johannesburg, but not to Cosatu House.

Instead, the march would end on the lawns of the Johannesburg Civic Theatre. The route was changed after a "security assessment".

Cosatu and its affiliates had called the march provocative and there have been threats of confrontation, with the National Union of Metalworkers of SA (Numsa) threatening to "swamp the streets outside Cosatu House".

Last night, however, DA leader Helen Zille posted a message on the social networking site Twitter, indicating the march would go ahead as planned.

"DA march is ON tomorrow. Mischievous reports on SABC radio saying march cancelled are WRONG. See you tomorrow! #fb"

Ms Zille is to lead the march with, Mr Maimane, DA youth leader Makashule Gana, and parliamentary leader Lindiwe Mazibuko.

The African National Congress (ANC) yesterday entered the fray over the planned march, describing the move as "ill-informed and provocative".

And Cosatu called on the DA to reconsider its decision.

Cosatu also said that the march would " just be a futile exercise in stupid politicking to keep their party in the spotlight".

The official opposition’s plan to march to Cosatu House to protest against the federation’s opposition to the youth wage subsidy has ruffled feathers in the ruling alliance, with its youth formations and Cosatu affiliates criticising the DA as "provocative and deceitful".

ANC spokesman Jackson Mthembu urged the DA to abandon its plans and called for "meaningful engagement".

"The ANC would like to request the DA to desist from marching to Cosatu House, as this will heighten unnecessary tension," he said.

Numsa’s Castro Ngobese called the march " cheap political blackmail from the chief representatives of white monopoly capital".

1.4 March on Cosatu: Stay home today, ANC tells DA

Faranaaz Parker, Mail & Guardian, 15 May 2012

In a statement released on Monday, ANC spokesperson Jackson Mthembu requested that the DA desist from marching to Cosatu House as this would “heighten unnecessary tension”.

Mthembu said the DA’s decision was “ill-informed and opportunistic” and did not add value to the debate about labour brokers and the youth wage subsidy. He said rather than being “confrontational and provocative”, the DA should engage with Cosatu on its views.

“We would like to remind the DA that Cosatu is not a public service institution but ... a private workers’ federation. It therefore boggles the mind why the DA would march to a private institution that has no legal authority with regard to the implementation of government policy and policy direction,” he said.

The DA’s march, which will protest against the trade union federation’s opposition to the youth wage subsidy, was planned weeks ago. The DA believes the subsidy, which is being debated at the National Economic Development and Labour Council (Nedlac), could create as many as 423 000 jobs for unemployed youth.

On Sunday, Cosatu affiliates – including the National Union of Metalworkers of South Africa (Numsa), the South African Commercial Catering and Allied Workers Union, the Communication Workers Union and the Progressive Youth Alliance – released a statement saying they viewed the DA’s march as “class provocation”.

Speaking on behalf of the group, Numsa secretary general Irvin Jim said: “The DA march marks the beginnings of an open class warfare that will characterise the South African landscape.”

‘Straw man’
The DA has defended its support of the youth wage subsidy. Its national spokesperson Mmusi Maimane said he was not surprised by the position Cosatu had taken. “Cosatu just wants to speak for the poor while focused on job preservation rather than job creation,” he said.

He said the union was creating a “straw man” of race and class and failed to present viable alternatives for creating jobs for young people.

“Even [planning] minister Trevor Manuel, as part of his National Development Plan, agrees with a youth wage subsidy; so why were those same responses not put forward to [him]? It’s indicative to me of the type of hypocrisy put forward by unions,” he said.

Maimane said the DA had tried other ways to engage Cosatu on the issue, including raising the matter at Nedlac and other forums, and that the march was a last resort.

Cosatu spokesperson Patrick Craven told the Mail & Gaurdian it was unlikely that getting around a table to discuss their disagreements would do much to help Cosatu and the DA resolve their differences.

“We regard the differences between us and them to be much too fundamental to sort out around a table,” he said.

‘Bogus solution’
Craven said the trade union federation viewed the youth wage subsidy as a “completely bogus solution”.

“Of course we want to create jobs for young people but it can’t be done with quick fix solutions that don’t create any new jobs,” he said. “We want to find real sustainable solutions to the problem of unemployment and youth unemployment in particular.”

Craven said although it had invited its members to gather at Cosatu House to meet protesters, Cosatu would do everything in its power to ensure the gathering was peaceful.

“If they hand over a memorandum then we shall receive it and I hope have some time to make some comments,” he said.

Eusebius McKaiser, an associate at the Wits Centre for Ethics, said the march was also evidence of the DA’s attempts to rebrand itself as pro-poor.

“The reason they are going after Cosatu, even though Cosatu is not in the government, is because the DA is desperately trying to shed its image as a middle-class party,” he said.

McKaiser said organised marches were a legitimate route to political engagement in South Africa and that they captured the attention of the poor majority.

“Marching is a tactic Cosatu itself uses routinely as a legitimate form of political engagement. Is the DA too white or too middle class to march?” he asked.

DA’s image
But changing the DA’s image would take more than just a march. “If the DA wants to be pro-poor they have to communicate that with all their policies and the way they communicate with the poor on all issues,” he said.

Meanwhile Steven Friedman, director at the Centre for the Study of Democracy, said the march was indicative of a general assault on unions from parts of the business sector.

“The real story here is an intellectual and ideological assault on the labour movement. Whether it’s the DA and their march, [labour] consultants and people producing spurious surveys, or the chamber of commerce and industry demanding that labour laws be changed, there really is an assault on the idea of trade unionism in the country,” he said.

He said that there was an implication from some quarters that Cosatu was not just wrong on certain labour issues but was itself causing problems for labour.

“I don’t think one should fall for the smokescreen of saying this is about a youth wage subsidy,” he said.

The march is scheduled to start at Beyers Naude Square at 10.45am and proceed through the city centre to Cosatu’s headquarters on Jorissen Street, where DA leaders will present brief statements before handing over a memorandum to Cosatu.

The party said it expected about 5 000 people, including DA supporters and unemployed people from neighbouring provinces, to join the action.

2. Workers

2.1 Military sets sights on unions

Graeme Hosken & SAPA, Times, 15 May 2012

The SA military has launched an all-out assault to eradicate unions from the defence force.

The attempt coincides with the launch of the Office of the Military Ombudsman, in Pretoria yesterday.

The SA National Defence Union has said the way in which the ombudsman's office was established was flawed.

It is the job of the new ombudsman, former defence force chief of joint operations Lieutenant-General Themba Matanzima, to ensure that defence force members' complaints are resolved fairly.

One of the issues on Matanzima's desk will be the grievances of more than 1000 soldiers who have been on paid suspension for more than three years for storming the Union Buildings during a strike. The military has spent over R150-million on their salaries.

Defence Minister Lindiwe Sisulu said the appointment of the ombudsman was an attempt to improve conditions of service and streamline processes in the military.

"The ombudsman is a soldiers' appeal office for internal military grievance procedures. It is an essential ingredient of democratic rights," she said.

Sisulu said the idea for an ombudsman had been under discussion in the parliamentary system for about 10 years.

"If we had delayed it further, it would make a mockery of our democracy. The office will be a last recourse for grievances. It will be independent of the military command structure," said Sisulu.

The ombudsman will have powers of oversight, ensuring good governance, accountability and reducing victimisation.

"For national security, we must adopt a military system suited to our culture, values and peace," Sisulu said.

"Our soldiers have a greater sense of their right to recourse."

Sisulu said this was part of a comprehensive reform of the defence force.

"It will deal with complaints around suspensions, dismissals, racism and promotion, which require dedicated focus."

Ministry spokesman Ndivhuwo Mabaya said this was the last nail in the unions' coffin before legislative amendments abolished unions.

"The National Defence Force Service Commission, established to deal with service conditions, will be a soldier's first recourse.

"If a soldier is unhappy with the commission's decision, he can approach the ombudsman. These resources are enough and render unions obsolete," said Mabaya.

Public Protector Thuli Madonsela, who advised the ministry on the ombudsman, urged Matanzima not to hesitate to make objective decisions against the military.

"Being a member of the family... do not treat the defence community as the mafia. In the mafia, if you are a member of the family, you do not make decisions against it. If you do, this office will be a lapdog."

Defence secretary Sam Gulube said the ombudsman's brief was to investigate soldiers' complaints.

"He will not investigate matters raised in the media and may not investigate a complaint relating to a military judge."

2.2 Absa reverses decision on 140 job cuts, labor union says

Renee Bonorchis, Bloomberg, 14 May 2012

Absa Group Ltd., (ASA) the South African bank controlled by Barclays Plc (BARC), reversed its decision to cut 140 technology jobs by June, labor union Solidarity said.

“Absa’s announcement that the notices will be withdrawn is a big step in the right direction,” Dirk Hermann, deputy general secretary of Pretoria-based Solidarity, said in an e- mailed statement today. “The withdrawal of the retrenchment notices amounts to a tactical victory, but the final battle has not been won yet.”

Absa said in March a reorganization to improve efficiency may cause job losses. Barclays, Britain’s second-largest bank by assets, is seeking to reduce costs after net income fell 16 percent in 2011. Absa, which is integrating its technology with the U.K. lender, said in February its full-year profit rose 19 percent to 9.67 billion rand ($1.18 billion) and reported a cost-to-income ratio of 55.5 percent, the second-lowest of South Africa’s four largest banks.

Solidarity represents about 350 of Absa’s estimated 30,000 employees. Sasbo, a separate union, has about 20,000 members at the lender.

“Absa confirms it has temporarily withdrawn notices of retrenchment to some impacted employees in its IT business unit,” the bank said in an e-mailed statement.

2.3 Union’s ire forces Absa to withdraw retrenchment letters

Phakamisa Ndzamela, Business Day, 15 May 2012

BANKING group Absa yesterday temporarily withdrew retrenchment notices issued to more than 100 IT staff after finance union Sasbo expressed outrage at the move.

The temporary withdrawal of the notices further puts uncertainty on the fate of the affected workers and the bank’s restructuring exercise. It remains unclear if Absa will accede to Sasbo’s demand that every worker affected by the process be found an alternative position.

Sasbo has about 20 000 members at Absa and its members are the most affected by the bank’s rationalisation plan.

In February some of the bank’s employees in the IT division were placed on a three-month re-assignment process.

The workers were asked to apply for any vacancies that were available in other parts of the business.

Some of the staff o pted not to take part in this process, but others could not be placed because their skills did not match available opportunities, said the bank.

According to Sasbo, this led to about 135 workers getting retrenchment notices last week, prompting the union to ask for a meeting with the bank. "At an urgent meeting between Sasbo and Absa held on Saturday evening, the union expressed its outrage at the bank having unilaterally issued retrenchment notices to IT staff via e-mail. The union placed the bank on terms and demanded that Absa withdraw all retrenchment letters by midday on Monday (yesterday) ," it said.

"In a letter to Sasbo, the bank advised that it would withdraw the notices of retrenchment sent to IT staff. The bank has agreed to engage further with the union on this matter," the union said.

Sasbo’s assistant general secretary Comfort Duma said the union would meet Absa next week to discuss the fate of the affected employees. Absa confirmed it had temporarily withdrawn the notices and would engage with Sasbo.

"Following consultations with our recognised labour union, Sasbo, Absa confirms it has temporarily withdrawn notices of retrenchment to some impacted employees in its IT business unit." Absa spokesman John Dludlu said yesterday.

"Absa regrets that the timing of the letters was asynchronous with the timetable agreed with Sasbo and has implemented measures to ensure that due process is followed. Absa has undertaken to continue its open dialogue with Sasbo to finalise the next steps in this process."

Absa has denied that it was retrenching on a large scale.

In March, after some media pressure, the bank said about 500 of its staff were affected by the restructuring exercise. These workers had been asked to reapply for their jobs and it was unclear how many would avoid being retrenched.

Earlier this year, Absa’s human resources executive, Fergus Marupen, said that last year 234 employees were asked to reapply for their jobs and out of this number 145 had been retrenched.

2.4 Sea change in labour dynamics as AMCU emerges – Lonmin

Martin Creamer, Mining Weekly, 14 May 2012

Labour dynamics are going through a sea change with the emergence of the Association of Mineworkers and Construction Union (AMCU) to rival the dominance of the National Union of Mineworkers (NUM), says Lonmin CEO Ian Farmer.

Farmer, who heads South Africa’s third-largest platinum-mining company, foresees the rivalry for membership between the unions potentially leading to an increase in costs and disruptions to production.

As a result of a third of the employees at the Karee mining division becoming AMCU members, Lonmin has agreed to confer limited organisational rights on AMCU to reflect its membership position.

Karee was the scene of last year’s strike, which led to 8 000 mineworkers being dismissed and then largely rehired and it was through the dismissal and rehiring process at Karee that the NUM lost membership to AMCU.

AMCU was also preceived to be behind the prolonged and violent labour unrest at Implats’ Impala Platinum mine in Rustenburg in February.

At Karee mine, one-third are now represented by AMCU, one-third have chosen not to be represented and only one-third are now represented by the NUM.

“Clearly, there’s competition for membership among the two main unions,” Farmer discloses.

Lonmin has thus agreed to a limited recognition agreement with AMCU.

“The area that worries me immensely is when we have intimiation and violence that surrounds the competition for membership and we as a company have taken a view that we’ll adopt a zero-tolerance approach to those that practice intimidation and violence and the South African law enforcement agencies have been fully supportive of this approach.

“Employees can choose their own representation. We will work professionally with them and include them in discussions as appropriate for the membership percentage they hold, but we will not tolerate intimidation, violence and putting the lives of our employees at risk,” Farmer says.

Although AMCU recruitment at Lonmin operations other than Karee appears to be relatively insignificant at this stage, covert action has tended in the past to precede overt recruitment drives.

CONTINUED CAPEX

From a capital expenditure (capex) viewpoint, the world’s platinum number-three is opting to take the platinum sector’s current price-volatility and higher-cost issues on the chin.

It is sticking to its capex guns, in the expectation of eventually benefiting from the lower costs that are expected to flow from that investment.

In holding the 2012 capex guidance at $450-million, the LSE- and JSE-listed company is showing confidence in the medium-term fundamentals and lifting production capacity to 950 000 oz/y of profitable platinum.

Most of the capex is being used to create underground ore reserves, which means the company could throttle back on capex if need be.

The company believes that continuation of its current course of capex action is the best shareholder value proposition while it watches to see how the current stock overhang unwinds.

Lonmin’s own $80-million worth of abnormal first-half stock build-up will be taken up in the second half.

Lonmin foresees the market tightening over the next few years, making the long term attractive.

The company sold 318 402 oz of platinum in the six months to March 31 and expects to produce 750 000 oz in the second half to September 30.

Under no illusions about the potential short-term impact on cash flow that lower prices can bring, Farmer is encouraged by a gradual recovery of the automotive industry as well as the manner in which platinum exchange traded funds have stood firm despite the fall in the platinum price.

“The world does require an increasing quantity of PGMs and will do so for decades to come, and we’re well placed to meet that demand,” Farmer says.

Lonmin has changed its view of a marginally oversupplied platinum market in 2012, to one of slight deficit.

It reports that industrial users have taken advantage of recent low prices and find themselves well stocked at a time when the rate of global growth is once again unclear.

As a result, it sees a short-term period of price weakness followed by deepening market deficits and rising prices in coming years, beginning in 2013.

It expects palladium to head for large deficits as Russian exports dry up and the petrol car markets such as the US and China show stronger growth than the diesel auto market in Europe.

The rhodium market, Lonmin says, will remain oversupplied this year, but may also move into a small deficit by 2013 owing to recovering auto and industrial demand and its low price.

Lonmin’s revenue basket price for the six months to March 31 was down 10% in dollar terms and the rand unit cost up 10.9% on the first half of 2011.

Net operating profit plummeted to $14-million from $148-million and net debt rose to $356-million from $296-million in the previous period.

Net gearing rose to 11% from 9% and interest cover decreased from 11.3 times to 8.4 times.

Section 54 safety stoppage notifications from the Department of Mineral Resources (DMR) resulted in 170 000 tons of lost production.

Total platinum metal in concentrate increased by 3.9% compared to the prior period, but a smelting stock build up was hit by an increase in sulphur in the feed as a result of a greater percentage of Merensky ore being milled owing to lower safety-stoppage-hit upper-group-two production.

Lonmin recorded its lowest injury frequency rate in the last six months, suffering one non-fatal accident compared with six in the previous 12 months.

This follows Lonmin’s adoption of a partnership with the DMR, which is resulting in ongoing safety improvement.

Although the DMR director-general in January rejected Lonmin’s appeal against the granting to Keysha Investments 220 of a prospecting right for associated minerals and metals that are found as part of Lonmin’s PGM orebody on part of its mining right area, the company remains confident of its legal position and is prepared to take the matter to court for review if necessary.

3. South Africa

3.1 Sanral will not appeal court decision

IOL, 15 May 2012

The SA National Roads Agency Ltd (Sanral) will not appeal against the temporary court order halting e-tolling, it was reported on Tuesday.

This has emerged from a letter from Sanral's lawyers, Beeld newspaper reported.

Pieter Conradie, lawyer for the Opposition to Urban Tolling Alliance, said on Monday he had thus far not received any notification that requests to lodge an appeal had been handed in.

Judge Bill Prinsloo issued a court order on April 28 in the High Court in Pretoria against the rollout of the e-tolling system in Gauteng.

The order prevents Sanral from levying tolls on Gauteng's roads before the entire system and decisions pertaining to it have been examined in a revision hearing.

Conradie said although neither the transport department, Sanral, nor the Treasury had given any indication that they planned to appeal, he had received a letter from Sanral's lawyers.

“According to the letter, Sanral will make its records available to us this week.”

These records included agreements signed with Electronic Toll Collection, the company contracted to levy the tolls. – Sapa

3.2 Nehawu: take back De Klerk’s Nobel prize

The New Age, 14 May 2012

The National Health and Allied Workers’ Union (Nehawu) demanded yesterday that former president FW de Klerk’s Nobel peace prize be retracted over comments he made in an interview with CNN.

“De Klerk exposed himself to be an unapologetic proponent of a racist, facist system that oppressed the majority,” said Nehawu spokesperson Sizwe Pamla.

De Klerk was interviewed at a summit of Nobel laureates in Chicago on Thursday night.

Asked whether he agreed that apartheid was morally repugnant, De Klerk said: “In as much as it trampled human rights it was, and remains, morally indefensible.”

However, De Klerk then reportedly said about the homeland system: “But the concept of giving, as the Czechs have it now, and the Slovaks have it, of saying that ethnic unity with one culture with one language (everyone) can be happy and can fulfil their democratic aspirations in an own state, that is not repugnant.” According to reports, he denied that blacks in the homelands were disenfranchised.

“They were not disenfranchised, they voted. They were not put in homelands, the homelands were historically there. If only the developed world would put so much money into Africa, which is struggling with poverty, as we poured into those homelands. How many universities were built? How many schools?” he asked.

“At that stage the goal was separate but equal, but separate but equal failed.”

He said he later became “a convert” against the system.

Asked about the state of South Africa’s democracy De Klerk reportedly said: “I’m convinced it’s a solid democracy and it will remain so, but it’s not a healthy democracy.”

Pamla said: “De Klerk was awarded the Nobel peace prize with a giant like (former president) Nelson Mandela, but is unfit to be in the same category as those who have won this prize before him.”

De Klerk’s statements showed that he ended apartheid because he and his cabinet could no longer sustain it and not because he believed it to be immoral system, he said.

The Young Communist League said De Klerk could never be equated with Mandela “as he wants the world to believe”.

For De Klerk to equate Bantustans with “little democracies” and to suggest that the only reason to reform the political system was economic, illustrated that De Klerk did not deserve the Nobel peace prize, said YCL provincial spokesperson Mangaliso Stalin Khonza. – Sapa

3.3 SIU uncovers massive corruption in E Cape health department

Mail & Guardian, 15 May 2012

A Special Investigation Unit probe into the Eastern Cape health department has revealed corruption involving R200-million and thousands of officials.

The investigation, launched in December, found that 15 900 department officials were illegally receiving child support grants totalling R58-million per year, the Daily Dispatch Online reported on Tuesday.

The leaked report also revealed that almost 4 000 officials were illegally receiving housing subsidies from the human settlements department amounting to R86-million.

Assets valued around R19-million, which were transferred to district offices, apparently went missing.

The health department reportedly paid R42.8-million to 226 companies linked to 235 civil servants, while 174 officials’ spouses were linked to companies that benefited R9-million.

The report indicated problems faced by investigators included missing supply chain management, believed to have been stolen or sold to a recycling plant.

Health department spokesperson Sizwe Kupelo acknowledged the difficulties.

“The department of health is committed to fighting fraud and corruption and anyone accused of such allegations will be pursued, regardless of who they are,” he said.

The department lost R800-million to corruption between January 2009 and June 2010. – Sapa

3.4 R14m wasted on drugs

Montsho Matlala, The New Age, 14 May 2012

Medical drugs in the Limpopo pharmaceutical depot usually expire because more stock was ordered than actually needed, health and social development MEC Norman Mabasa discovered while visiting the depot in Seshego on Friday.

He found syringes for insulin injections, used to control diabetes, piled up in the store room, and hundreds of tins of powdered milk left unused.

"This is embarrassing, we condemn it and this is a waste of taxpayers'' money and must not be allowed to continue. As for these syringes, we are going to investigate why somebody decided to order more socks than shoes.

"The syringes are too much, we will invite other provinces to shop from us, we can even export them to Malawi," said Mabasa, a former medical doctor and former national chairperson of the SA Medical Association.

He ordered that the powdered milk be transferred to the social development section for distribution to needy people.

The depot also had excessive stocks of wound dressings and bandages and the MEC said he would investigate the possibility of selling the stock to private institutions.

Mabasa, who conceded that drugs worth R14.6m at the depot had expired, visited the institution after the trade union Nehawu blew the whistle about expired medicines.

"Most of the expired stocks, which accumulated over the years, some from 2008, are ARV drugs because we switched to new types after these were found to have severe side effects to patients.

"There are also too many HIV test kits that were bought for voluntary testing, but unfortunately few people came in for voluntary HIV testing," he said.

The department had taken over the running of the depot in March. Previously procurement and distribution of medicines to hospital and clinics were done by private companies on tenders.

Since taking office about two months ago following a cabinet reshuffle, Mabasa has vowed to bring public health services, which he found under central government administration, in the province to a "healthy state."

A decision to abolish tendering in the running of hospital services was taken in 2006, according to health and social development spokesperson Phuti Seloba.

Nehawu has threatened to take the department to the public protector for the expired drugs which it claims could endanger the lives of unsuspecting patients.

3.4Phadagi’s death a loss – Nehawu

IOL, 14 May 2012

Limpopo safety, security and liaison MEC George Phadagi's death is a major blow to the country, Nehawu said in a statement on Monday.

“Phadagi's death comes at a time when the nation is crying for hardworking and selfless leaders like him,” the National Health and Allied Workers' Union's provincial secretary Jacob Adams said.

Phadagi died in a private hospital in Pretoria on Sunday morning.

“The nation will always remember his contribution to the struggle for freedom, and his dedication to the transformation of our society. The working class will remember his efforts to better the lives of the poor for years to come,” Adams said

He described Phadagi as dedicated, disciplined cadre, who executed his duties with honesty and excellence. The union conveyed its condolences to his family and friends. – Sapa

4. ANC and Alliance

4.1 Sexwale's bid to lead ANC gains momentum

Hlengiwe Nhlabathi, Sowetan, 15 May 2012

Human Settlements Minister Tokyo Sexwale's bid to lead the ANC is likely to gain support from expelled ANC Youth League president Julius Malema and his allies.

Hinting that he might throw his weight behind the former businessman if Deputy President Kgalema Motlanthe did not challenge for the job, Malema described Sexwale as a "business man of note" who qualified to be president of the ANC.

"Those who support Tokyo must never be criticised or called names," Malema said.

The ANCYL has made no secret that it wants Motlanthe to replace Zuma.

Weekend reports suggested that Sexwale was ready to take on Zuma, with a list being circulated to garner support from ANC members, particularly in the Western Cape and the Eastern Cape. The campaign has been dubbed "Anything But Zuma" (ABZ).

Yesterday Malema warned against the danger of writing anyone off, saying Sexwale like everyone else who is an ANC member in good standing, qualified to be at the helm of the party.

"If members want him they will elect him," he said, before cautioning that this did not mean he was voicing his support for Sexwale to succeed Zuma.

ANC veterans such as Winnie Madikizela-Mandela and Sexwale, who have publicly backed Malema, had been approached to help the embattled youth leaders. They believed that a political solution rather than a suspension was the answer to the stand-off between the league and its mother body.

Malema denied receiving money from Sexwale.

"I have not received his money ... but I wish he would have given me some of it," said Malema, leading to thunderous laughter from the floor.

"If he had given me I would not be ashamed, it's money from a comrade not a coward."

It emerged at the weekend that a company started and partly owned by Sexwale allegedly paid at least R100000 to Malema's family trust.

Malema said he was not for sale.

"Imagine a man like me who knows money being bought with R100000," he asked.

He would not discuss reports that he owed R10-million to the taxman.

He said he was eagerly awaiting the conclusion of a probe by the Hawks and the public protector into alleged corruption on his part relating to On-Point engineering, a company linked to tenders in Limpopo.

4.2 ‘I will lead ANC’

Baldwin Ndaba & Gcina Ntsaluba, Star, 15 May 2012

Richard Mdluli – former head of crime intelligence – must be removed from the police, expelled ANC Youth League president Julius Malema told the National Press Club in Joburg on Monday.

Malema, speaking under the banner of the ANCYL at the Gordon Institute of Business Science in Illovo, called on President Jacob Zuma to offer Mdluli an ambassadorial post in Somalia.

Malema made these comments when reacting in a wide-ranging media briefing to the decision of the ANC national disciplinary committee of appeals to uphold his expulsion from the ruling party.

He slated minister of police Nathi Mthethwa and the police management’s decision to move Mdluli from crime intelligence to its operational division.

He said Mdluli would continue to tap the phones of people believed to be critical of the ruling party under Zuma.

“Apartheid agents are receiving protection from President Jacob Zuma and the minister of police while those who are loyal to the ANC are being suspended and expelled.

“You (society) are going to deal with Mdluli permanently. Society lives under fear. We are creating a police state,” Malema warned.

He kept journalists in stitches, talking about the pervading fear of being under surveillance.

“You can’t make a call to SG (secretary-general Sindiso Magaqa) without having not to greet Mdluli. You first have to greet the SG, then you also must say ‘Hello, Mr Mdluli’.

“If I was responsible for the police, I would ask Mdluli to resign and offer him an ambassadorial position in Somalia. I would also draft his letter of resignation,” Malema said.

Defiant,

he declared: “I am still the president of the ANC Youth League” and predicted he was destined to be “a leader of the ANC” in the near future.

“Put it in your archives. I am going to lead the ANC,” he said.

Malema was flanked by his suspended secretary-general Magaqa and spokesman Floyd Shivambu. He said the disciplinary process followed by the ANC had been politically motivated and contradicted the ANC constitution.

“We have two options, to submit or fight… and we are not submitting. This is just a testing moment…”

A charming Malema said that despite the rough patch he was going through, he still had an undying love for the ANC. He said he would never forsake it by starting a new political party.

“It has never crossed my mind. I will never do that… My blood is black, green and gold. I will die in the ANC. I will stay and sleep here, outside the gate of the ANC. My umbilical cord was buried here in the ANC,” he said.

Malema told journalists he had obtained the blessings of the remaining ANCYL national executive committee to address them at the National Press Club.

“I was looking after my cattle in Polokwane and they called me. They assured me that I am still their president. I duly complied and agreed to address you in this gathering,” Malema said.

He berated the ANC for not taking disciplinary action against MK Veterans League members in KwaZulu-Natal for making death threats, but he refused to discuss the impending tax-evasion charges against him.

He said it was “a personal matter” but he would comply if hauled before court on allegations of fraud and corruption.

“I want those people to show me proof that I influenced tenders.”

He also denied media reports that Minister of Human Settlements Tokyo Sexwale was one of the people bankrolling his Ratanang Family Trust Fund.

ANC spokesman Keith Khoza said the ruling party would not comment on Malema’s utterances.

4.3 ANC laughs off Malema's plan to fight expulsion

Nickolaus Bauer, Mail & Guardian, 15 May 2012

Julius Malema has no future within the ANC despite claims that he would lead the organisation in the future, sources within the ruling party say.

In a haughty address in Johannesburg, Malema claimed his political career was far from over despite his expulsion from the ANC being finalised in April.

“We will do whatever it takes to win this political battle. We have two options: Submit or fight.

And we are going to fight,” Malema said.

The suspended youth league leader at first said he would “lead” Africa’s oldest political organisation in the future “whatever it takes” but soon backtracked, saying he would be part of a future leadership collective.

“We remain loyal to the ANC and know they are the only party that is capable of bringing about real economic change. We will continue to use all platforms to pursue economic freedom for all,” Malema said.

Clad in ANC regalia and his trademark black beret, Malema again reiterated the call for a “political solution” to the ensuing melee between himself and the ANC.

“We were expelled because of the ideological and political views we hold on the future of this country and the ANC,” he added.

‘Laughable’ attempts
This is Malema’s first address to the media since his expulsion in April.

Sources within the ANC have described Malema’s attempts to remain in the spotlight as “laughable”.

“He’s out and it’s final. There is no way back for him – whatever he tries to do,” the source, who requested anonymity, told the Mail & Guardian.

Officially the ANC is keeping silent on Malema’s address and says it won’t be responding but it may be foolish to wash its hands completely of the Malema issue.

The young firebrand has given no sign that he will let his expulsion slide and by persistently pushing the issue in the run-up to the ANC’s Mangaung conference in December, Malema could be a thorn in the side of ANC leaders hoping for re-election – including Jacob Zuma.

As such a wounded Malema in the political wilderness could spell disaster for his detractors.

If he navigates his way back into the ANC, he will return with an axe to grind.

Fighting expulsion
Although Malema is barred from appearing on ANC platforms, his avenues to fight his expulsion are far from exhausted.

Malema can still request a formal review by the ANC’s national executive committee (NEC) and if this fails, he could attempt to have his sentence quashed at Mangaung.

This would involve tabling a motion to nullify all disciplinary charges against him to voting delegates at the conference.

Malema could also return to the ANC by reapplying for membership.

Previously, a source close to the internal disciplinary process told the M&G that the ANC constitution allowed this.

“Expelled members are fully within their rights to attempt to re-join the party by writing to the [NEC]. The decision on that application would of course be guided by the applicant’s actions during their expulsion,” the source said.

As much as the ANC has tried to silence Malema, it has become clear that he will not go quietly.

A possible Lazarus-style comeback could be in the offing, the consequences of which are yet to be determined.

Open hands
In his address to journalists, Malema denied receiving money from Human Settlements Minister Tokyo Sexwale.

“I have not received any money from comrade Tokyo. I wish I had received some money.”

Malema, describing Sexwale as a “suitable” candidate for president, laughed and said: “Even now, it is not late. Even if he has got something to give me.”

He was responding to a report in City Press over the weekend.

According to the report, a company started and partly-owned by Sexwale had paid at least R100 000 into the Ratanang family trust – linked to Malema – as Sexwale “is seriously stepping up a new campaign to become ANC president”.

“All those who I have supported, even President [Jacob] Zuma, has never given me money,” said Malema.

“I know money and I know what money can do. We can’t sell the organisation and the views and the aspirations of our masses for R100 000. We can’t do that.

Tokyo for president
“Anyway, Tokyo qualifies to be a president of the Republic of South Africa.”

He hastily added: “Any member of the ANC, as long as you pay R12, you qualify to be a president of the ANC ... even Floyd,” he said, referring to suspended spokesperson Floyd Shivambu, who was sitting next to him.

“He’s a former premier [Sexwale]; he’s a minister now of human settlements ... a mind who commands clarity of issues, so what more do you want from him? He qualifies. It’s not like he’s stealing any position ...”

If Sexwale had given him money, he would not be ashamed, as it would not be blood money from a slush fund.

“But that doesn’t mean I support Tokyo or the youth league supports Tokyo. The league has not reflected on who should be the president of the ANC. That time is coming,” he said.

Malema would not discuss reports that he owed the South African Revenue Service millions, considering this private, but would say that if Sexwale had not given him money, then it followed that Sexwale had also not paid SARS for him.

Irregular tendering
He denied being part of any corrupt activities or irregular tendering for contracts.

Over the years, media reports have suggested that some tenders in Limpopo are won through association with him, and that he benefits either financially, or that these associations explain some of his assets such as a house in Sandton.

Malema denied being involved in tender-rigging or corruption.

“I have never been engaged in any fraudulent activities,” he said.

He welcomed any investigation by specialist police unit the Hawks.

“I want to be informed, maybe also be liberated from my own consciousness.”

5. Comment

5.1 Deliberate puppetry

Andre Kriel, Letter to Business Day, 15 May 2012

I refer to David Gleason’s article (SA must just get out of textiles trap, May 11). We are shocked that a newspaper of your calibre could even contemplate carrying such obvious one-sided employer propaganda.

For the record: we have contemplated replying to Mr Gleason, but have come to the conclusion it is not worth our effort to dignify such deliberate puppetry (disguised as an informed "comment piece") with a response. He must be ashamed of himself.

Andre Kriel is General Secretary, Southern African Clothing and Textile Workers Union

5.2 Ventriloquist Gleason

Simon Eppel, Letter to Business Day, 15 May 2012

David Gleason may torque, but in "SA must get out of textiles trap" (May 11) he is not much more than a ventriloquist’s doll, sitting on the lap of clothing employers, mimicking their sentiments. For Mr Gleason solely carries the perspectives of clothing employers’ representative Johann Baard, which are used for self-interested reasons (in the middle of wage negotiations) to sketch the picture of an industry "up the creek minus a paddle".

It is reckless and irresponsible for Mr Gleason, a public commentator, to pronounce with authority on matters beyond his ken, especially when he obviously hasn’t considered alternative views. It is evident he has not paid even the smallest shred of consideration to other facts, such as those presented by the South African Clothing and Textile Workers Union, that actually the industry may well be in a better state than it has been for many years.

What value does Mr Gleason’s column bring to society if it does not educate and deepen the understanding of his readers by exposing them to a symphony of facts? Propaganda, perhaps?

Simon Eppel is a researcher at the South African Labour Research Institute, the research arm of the South African Clothing and Textile Workers Union

Patrick Craven (National Spokesperson)

Congress of South African Trade Unions

110 Jorissen Cnr Simmonds Street

Braamfontein

2017

P.O.Box 1019

Johannesburg

2000

South Africa

Tel: +27 11 339-4911 or 010 219-1339

Mobile: +27 82 821 7456

E-Mail: pat...@cosatu.org.za

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