COSATU Media Monitor, 18 May 2012

A former trade unionist, Mr Patel is seen by the DA as representing the Congress of South African Trade Unions’ (Cosatu’s) interests in President Jacob Zuma ’s Cabinet.

The unions are opposed to the R5bn wage subsidy, arguing that it will lead to older employees losing their jobs. The DA and Cosatu clashed in Johannesburg earlier this week, after the opposition party marched to the union’s head office in support of the wage subsidy.

Speaking at a press briefing in Parliament yesterday, DA leader Helen Zille said the party was more resolute than ever to mobilise all South Africans for the immediate implementation of the wage subsidy. She said the party would use every platform available to it to advance its cause, including writing to the National Economic Development and Labour Council (Nedlac) to request a meeting at which it will articulate its policy position.

Mr Zuma said yesterday that the wage subsidy was currently before the council.

In reply to a Parliamentary question earlier this week, Mr Zuma said Mr Patel’s department would implement the subsidy scheme.

Ms Zille said she would request a meeting with Mr Zuma, should Nedlac not be "prepared to allow me an opportunity to address them".

Ms Zille argued that " members of Cosatu got into the government on the ANC’s policy platform. Cosatu never stood for an election."

She said it was worrying that Cosatu was effectively in power. It was clear that Cosatu was in charge of policy in government, "even though the union never stood for an election", she said.

This was largely because Mr Zuma depended on the union federation to be re-elected. "That fundamentally subverts the democratic process and undermines the constitution. So we are saying to Cosatu, if they are fundamentally opposed to the youth wage subsidy, which the ANC supports, let them stand in the next election.

"Let them be honest with the people of South Africa," Ms Zille said.

Cosatu spokesman Patrick Craven said the union federation would "fight back on every platform" if the DA was to use every platform to push the wage subsidy.

"Cosatu is using constitutional means to stop the wage subsidy … the DA represents the rich and we believe this subsidy will not help the workers," Mr Craven said.

1.2 Vavi clearly sees peril as DA fights at street level

Donwald Pressly, Business Report, 8 May 2012

It seems that the battle for Johannesburg has begun two years before a national election and four years away from the next municipal poll. Gauteng is the powerhouse of the economy and the stakes are high as to which political formation runs both the city and the province in the future.

This week’s bloody clash between the DA’s almost entirely black but blue-shirted “army”, led by Western Cape Premier Helen Zille – in her capacity as DA leader – and leader of the parliamentary opposition Lindiwe Mazibuko, and a mainly red-shirted Cosatu brigade, which was somewhat larger, in both numbers and in girth, was a pivotal moment for South Africa.

It was quite amusing watching the normal run of commentators saying how the official opposition’s actions simply widened the chasm between Cosatu, the socialists, and the DA, the capitalists. Indeed, it was probably the first time blood was spilled – mainly from DA supporters’ heads but not exclusively – in a clash between the two organisations. But there was little common ground before, so I don’t quite see the argument that the DA should not have conducted the march.

There is no doubt that Cosatu was surprised by the mass demonstration, let alone by its blackness. Zwelinzima Vavi, the general secretary, got to the nub of it: “If we don’t stop the real crisis, then those 3 000 (DA marchers) will become 6 000. It will eventually succeed. Eventually all of us will be in very, very hot water in no time.”

He said another 1976 could happen in this country “if we preoccupy ourselves with palace politics while Rome is burning”. Perhaps he should have referred to Johannesburg, but he was referring to the failure of the ANC government to carry out policies that work for the poor. He cited the numerous service delivery protests as further examples of a backlash against ANC policies.

This is an interesting observation. Vavi clearly believes there is a risk that DA economic policies could be embraced by the poor. Unlike a brigade of political “commentators”, he sees the DA as a threat. Prior to the march, National Union of Metalworkers of SA (Numsa) general secretary Irvin Jim warned against the so-called youth wage subsidy as an attempt to placate the youth and avert the coming social revolution.

“Numsa wants to serve a timely warning to the DA and the vested white capitalist class interests it represents: they are embarking on a dangerous and unwinnable class struggle with the power of the black and African working class.”

Earlier this week at Parliament, the DA announced its war on hunger campaign. It came up with a rather mealy-mouthed approach, including that a website be set up to track food inflation and that the party would question this matter in Parliament.

Dawie Roodt, the chief economist at Efficient Group, said the DA sounded like a left of centre socialist party with strong central control sentiments. He didn’t mention the irony that the DA once backed a basic income grant – something which Cosatu has repeatedly sought.

The reason for the march on Tuesday was to demonstrate the DA’s protest against Cosatu’s opposition to a youth wage subsidy. It is not clear why Cosatu is so against this idea, but perhaps it is because the subsidy would go to businesses – both black and white.

Should Vavi’s concern about DA policies becoming nationally driven be realised, it is difficult to see exactly how these policies would differ from those practised by the current ANC.

It is food for thought.

2. Workers

2.1 Vavi denies he is being sidelined

Charles Molele, Michelle Pietersen & Matuma Letsoalo, Mail & Guardian, 18 May 2012

Zwelinzima Vavi says his absence from the programme of the four-day congress of the National Union of Mineworkers is not due to factional fighting.

The exclusion of Cosatu general secretary Zwelinzima Vavi from the programme of the four-day congress of the National Union of Mineworkers (NUM) next week has exposed deep divisions in the labour federation a few months before the crucial ANC elective conference in Mangaung in December.

Vavi on Thursday denied allegations that he was deliberately being marginalised for factional reasons, but several leaders in Cosatu said it was clear that the line-up of key speakers was planned well in advance to give a platform to ANC leader President Jacob Zuma and his supporters.

This will be the first time since he became Cosatu general secretary that Vavi has not featured on the programme of Cosatu’s largest affiliate and his former union.

Among the key speakers is Cosatu president Sdumo Dlamini, South African Communist Party (SACP) general secretary Blade Nzimande, former South African Democratic Teachers’ Union general secretary and Public Works Minister Thulas Nxesi, Public Enterprise Minister Malusi Gigaba, and NUM general secretary Frans Baleni, all of whom support Zuma’s bid for a second term.

Vavi has in the past few weeks avoided appearing on the same platform with Zuma. During the Workers’ Day main event in the Free State, he chose to address workers in the Eastern Cape instead.

Polokwane resolutions
In recent months Vavi has proved to be a thorn in the side of senior ANC and government leaders, including Zuma, for accusing them of failing to implement the Polokwane resolutions and pursuing policies aligned to the Democratic Alliance. This week, Cosatu supporters clashed with DA marchers over a proposed youth wage subsidy. Whereas the DA and Zuma’s administration believe a youth subsidy would reduce unemployment, Cosatu believes it would lead to more exploitation of workers.

In an interview this week, Vavi downplayed allegations that he was being marginalised and blamed them on individuals in the alliance who he said were campaigning using his name.

“I have been addressing every NUM conference and it was time to give someone else a chance. Yes, an invitation was sent to the Cosatu office. We distribute the tasks among ourselves. I’m naturally closer to the NUM. It is my home and it is an important conference, but Sdumo [Dlamini] has not had an opportunity [to address the NUM]. We sat around the table to discuss who would attend [the conference] and he volunteered,” said Vavi.

“There is a theory that Frans Baleni is against me and that he is aligned to the Zuma camp and I’m not. It is nonsense. People are trying to create distance between Frans and me. It’s all just rubbish, honestly. Some fellows are campaigning using my name. I’m under attack from these fellows. I hate factionalism – it destroys the organisation.”

Meanwhile, in a frank assessment of the ANC-led alliance, Baleni said the movement was at a crossroads because of public disagreement over leadership and key policy issues. If these tendencies were not nipped in the bud, the ANC would “implode”.

Orgy of public bickering
“Instead of forging ahead as a unified force, we are engulfed in an orgy of public bickering and ill-discipline. Unless we arrest these internal scuffles within the democratic movement, it is not far-fetched that this movement built over many years will implode,” said Baleni in his political report, which the Mail & Guardian has seen.

“The lack of purpose, of unity within the democratic movement and the inability to resolve differences in a constructive manner constitute a real obstacle to progress. Leadership contests within the broader movement regularly threaten components of the movement instead of these being used as moments of renewal of the popular mandate. Leadership positions are now conceived as stepping stones to a better life for the few elected leaders and, in some cases, leadership contests have become deadly affairs.”
Baleni further condemned what he called a “modern, narrow nationalist tendency” that sought to hijack the ANC and steer it to serve the interests of the new black elite.

He described nationalists in the ANC as reactionary and elitist and accused them of attacking the deployment of SACP leaders to the government and ANC structures.

The deployment of SACP general secretary Blade Nzimande as minister of higher education has caused divisions in the alliance, with some calling for him to resign and return to the head office on a full-time basis to grow the party.

“All of a sudden it has become a problem to be a leader in the SACP and the ANC. All of a sudden it has become problematic to be a leader in the SACP and government. This attack was intended to marginalise the communists in the ANC as happened prior to Polokwane in 2007.

“Comrades, we must be ready to defend the gains we have made and win support of leaders in the ANC who are not part of this narrow, self-centred African nationalism,” said the report.

2.2 Uproar over unionist's huge salary hike just 'a campaign'

Matuma Letsoalo, Mail & Guardian, 18 May 2012

National Union of Mineworkers (NUM) general secretary Frans Baleni has come under fire for a whopping R40000 increase in his salary.

National Union of Mineworkers (NUM) general secretary Frans Baleni has come under fire for a whopping R40 000 increase in his salary, taking it to R77 000 a month, while ordinary mineworkers are struggling to make ends meet.

If you add travel expenses, a housing subsidy and pension, Baleni earns more than R1.4-million a year, more than double that of Cosatu general secretary Zwelinzima Vavi.

The increase, which is likely to raise eyebrows at the union’s national congress at Ghallager Estate next week, makes Baleni one of the highest-paid unionists in the country.

Cosatu and unions affiliated to it have consistently criticised the excessive executive packages paid by President Jacob Zuma’s administration despite the high poverty levels in the country.

In an interview this week, Baleni defended the decision to increase his salary, saying it was market-related. “Periodically, the union does a market survey to look at salaries for everybody to check if they are in line with what is in the market and adjust accordingly,” he said.

He said he was not responsible for the increase. “Salaries are determined by our human resources department. We recused ourselves in the national executive committee meeting when the issue of salaries was raised,” said Baleni.

Campaign
He questioned the timing of the leaking of his earnings.

“This is a campaign. People tried every aspect in terms of our performance, but they failed. That’s why they are coming with this now. Members of the NUM are not foolish. They will see through fiction and facts.” Baleni said his salary was not much different to that of his deputy, Oupa Komane, who is challenging him for the position of general secretary. “The different between our salaries is about R1000. He [Komane] gets almost the same salary as me.”

Komane said on Thursday that he, in fact, earned R2 000 less than Baleni did.

NUM leaders close to Komane are planning to attack Baleni at the congress for failing to adhere to union procurement procedures when he awarded multimillion-rand contracts for the internal and external renovation of the NUM headquarters in Johannesburg.
Komane’s supporters are demanding an investigation based on a report by auditing firm SizweNtsaluba & Gobodo, which found the union was owed R6667850 less than the balance indicated in its financial statements. This resulted in the union receiving a qualified audit.

Baleni’s opponents claim that the union was likely to get another qualified audit next year because Baleni had again awarded a tender for external renovations without proper procedures. The money for the renovations, which is estimated to have cost R5.7-million, was donated by one of the NUM’s investment arms, the Mining Investment Corporation, which is chaired by Baleni.

According to Baleni’s opponents, the money was supposed to have been transferred by the NUM to NUM Property, a subsidiary owned by the Mineworkers’ Trust.

But the NUM, under Baleni’s leadership, decided to pay contractors directly instead of transferring the money to NUM Property, which owns all the buildings of the NUM and is responsible for renovations as well as the selling and acquiring of new property.

Baleni said the reason the money was not paid to NUM Property was because the Mining Investment Corporation had recommended that a particular company should do the renovations.

2.3 Blacks 'worse off than dogs'

Kingdom Mabuza, Sowetan, 18 May 2012

Life of most black people in South Africa is worse than those of dogs, says the National Union of Metal Workers of SA

The union's secretary, Irvin Jim, said the existing inequalities were a reflection of persisting apartheid capitalist economic and social relations.

"There are dogs that eat better food than black people in South Africa. The dog food is expensive compared with the food a (black) person eats in a day," he said.

He cautioned that unless the ANC-led government reverted to the Freedom Charter and nationalised key sectors of the economy, the ruling party should brace itself for a social revolution.

"Unemployment among Africans was estimated to be 38% in 1995 and stood at 45% in 2005. Now the unemployment rate among Africans is almost 50%. Among whites the unemployment rate is estimated to be around 6%.

"Being African reduces the chances of being employed by 90% in comparison to being white."

He said the fragmented intervention of the ANC government would not appease the previously dispossessed masses.

He said the ruling party should revisit its Freedom Charter and implement nationalisation.

"The share of income going to the majority of the people of South Africa who, by and large, are black and African working class and the rural poor clearly confirms that without nationalisation the commanding heights of the economy, the situation can only deteriorate."

He slated the task team that was assembled by the ANC to investigate the viability of nationalisation.

"That task team did not act according to the mandate of the ANC's NGC (national general council) and we think that is demoralising. They (task team) went to look for reasons why nationalisation should not happen."

"If you say nationalisation is not the route to go, then you must accept that the freedom charter must be dumped."

Jim was highly critical of the National Planning Commission (NPC) which he said has diverted from its core mandate.

He said Numsa objected to Minister Trevor Manuel being appointed as a political head since his previous conduct during the Thabo Mbeki era favoured capital.

"We have noted that the NPC in its diagnostics merely diagnosed the symptoms, rather than the root cause, of our development challenges, the underlying apartheid and colonial character of our economy and its social relation," he said.

2.4 What about the workers?

Charlotte Mathews, Financial Mail, 17 May 2012

The leadership election at the National Union of Mineworkers’ (NUM) May 23- 27 national congress is set to be hotly contested.

What distinguishes the two major candidates is less their stance on mining issues, it appears, and more national party politics.

There’s been a groundswell of support for NUM deputy general secretary Oupa Komane, as four out of eleven regions have nominated him for general secretary. But with seven out of eleven regions behind incumbent general secretary Frans Baleni, Baleni is probably going to be re-elected for another three- year term.

The outcome isn’t a foregone conclusion, though. It depends on whether individual NUM members vote for the candidates supported by their region.

Baleni is regarded as a supporter of President Jacob Zuma while Komane is considered to be closer to Cosatu general secretary Zwelinzima Vavi, a former NUM leader who has been critical of Zuma.

University of Pretoria professor Sakhela Buhlungu says Baleni shows signs of “zig-zagging” in his stance. Last July he said the NUM had made a mistake at the Polokwane conference (which ushered Zuma into power) in focusing on leadership rather than policy and plans of action.

Asked by the FM last week if he supports Zuma, Baleni said the NUM supports the ANC leadership elected at Polokwane, but “we focus on policies and the leaders who are appropriate. For example, if your business is facing complex issues on the economic side, then you need an economist to lead it”.

Both Baleni and Komane have risen through the ranks of the NUM and acquired academic qualifications on the way: Baleni a BA in developmental studies from Wits University and Komane an MSc in engineering business management from Warwick University.

Kally Forrest, a former editor of the SA Labour Bulletin, says Baleni is an excellent administrator. He does not appear to have the same ambitions as some of his predecessors, such as Gwede Mantashe, who moved from the position of general secretary of the NUM to general secretary of the ANC.

She says the media often presents a crude picture of the important issues within the labour movement. Most of the time unions are concerned with workplace issues, not party politics. They deal with wages and the power of labour against capital. But they also have an alignment within the ruling party.

Buhlungu says a union should be a “broad church” which allows for more than one religion and gospel. That isn’t the case in the NUM, which has a single religion, the ANC, and a single gospel, the Freedom Charter.

Baleni firmly rejects the suggestion that the union is preoccupied with national politics at the expense of workplace issues that are important to its members. He says the NUM is the only union that commissions a regular study of satisfaction levels among its members, which is carried out by Wits University.

“It gives us feedback to hear our members’ concerns,” he says.

Buhlungu, who has worked on some of these surveys, says the NUM deserves credit for being introspective. Its national executive committee listens carefully to the researchers’ presentations and acts upon the findings.

But the mining environment is changing all the time, Buhlungu says. There are a lot of dynamic issues, from trends in mining contracting, illegal mining and changes in migration, which need to be addressed. It is astonishing that the NUM has lost control in the Rustenburg area, where membership should be growing, or at least stable, as the platinum industry has greater growth prospects than the gold industry ( see Features May 11 page 43).

Buhlungu says not much is likely to change in the NUM if Baleni is re- elected because of the culture that has permeated the lower levels of the organisation.

Though the NUM is a largely efficient union, with functioning health and safety, research and education/training departments and a sound financial basis, Buhlungu argues its culture has changed over the years. It is no longer an activist organisation.

Now the middle ranks of the NUM, as in other unions and government, put their personal power and comfort ahead of members’ needs, he says.

2.5 Mineworker wounded in union clash

News24, 17 May 2012

A mineworker was wounded in a clash between members of rival unions at a Rustenburg mine on Thursday morning, police said.

Brigadier Thulane Ngubane said several Impala Platinum (Implats) workers belonging to the Associated Mineworkers and Construction Union (AMCU) attacked their National Union of Mineworkers (NUM) colleagues outside a hostel before they left for work.

Two NUM workers ran and hid away. Another was shot in the head and collapsed on the road outside the hostel. He was taken to the Impala Mine Hospital.

"It is alleged that the dispute between the two labour unions' members... is being influenced by the fact that AMCU has now recruited more members since... the Implats strike," Ngubane said.

"The AMCU members are allegedly out-numbering those of NUM and they forcefully want NUM members to vacate the... number 14 shaft."

Implats spokesperson Johan Theron said the unions clashed at two different locations on Thursday morning.

"Production was not affected and the situation is under control but remains tense," he said in a statement.

"Management condemns in the strongest possible terms the use of violence and intimidation. We have been in contact with the SA Police Services and call on them and the unions involved to assist us in our endeavours to stop this senseless violence."

Implats fired 17 200 workers after they refused to return to work in February, despite a court interdict declaring a strike they embarked on in January illegal.

Three people were killed in incidents linked to intimidation and violence involving the dismissed workers, while scores were injured and more than a 100 were arrested for public violence. – SAPA

2.6 Workers warn the Post Office

Stephen Tau, Citizen, 17 May 2012

Come Tuesday, if our demands are not met, “the s**t will hit the fan”. This was the warning issued to the SA Post Office (Sapo) by the Communication Workers’ Union (CWU) in Gauteng.

The union was representing the 659 labour broker employees at Sapo during a march from Cosatu House in Braamfontein, Johannesburg yesterday.

Addressing the marchers before handing over a memorandum to a representative of Sapo, CWU provincial chairman Veli Zulu warned that should the employer fail to respond to their demands, they will invade their “luxury” offices, fitted with air conditioners. “We are not on an aerobic exercise, but to clearly demonstrate the working conditions of workers, some of whom have been labour broker employees for more than 10 years,” Zulu said.

CWU’s first deputy president Clyde Mervin said the union had been trying to meet with the employer, instead all they received was excuses.

“We initially proposed a meeting with Sapo on April 17, but they told us they were unable to meet as they were very busy.

“By Tuesday next week, we want a response from the employer that will say all labour broker employees are permanent staff members at Sapo, and we will fight to the bitter end to make sure that becomes a reality,” Mervin said to applause from the 400 or so marchers.

Meanwhile, scenes similar to those at the Democratic Alliance march on Cosatu House on Tuesday were almost enacted during yesterday’s march. This happened after a group of marchers attacked a Sapo employee driving a marked company vehicle on Jorissen Street.

Both parties are scheduled to meet tomorrow.

2.7 Gauteng leads job-creation way, Patel asserts

Terence Creamer, Polity.org.za, 17 May 2012

South Africa’s economic heartland of Gauteng created nearly half of the 305 000 net new jobs that emerged over the past 12 months, Economic Development Minister Ebrahim Patel asserted in the National Council of Provinces on Thursday.

He was speaking only days after Statistics South Africa’s latest Quarterly Labour Force Survey (QLFS) showed that the number of employed people decreased by 75 000 during the first quarter of 2012 and that the number of unemployed people rose by 282 000, increasing the official unemployment rate to 25.2%.

But extrapolating from the yearly trends in the QLFS, which excludes seasonal effect, Patel argued that 305 000 net new jobs had been created over the last 12 months and that the economy had experienced five quarters of year-on-year jobs growth.

Six provinces reported jobs growth over the year, while three reported job losses. Gauteng accounted for 46% of all new jobs, creating 141 000 in total. That was “almost one in every two new jobs created, and double that of the Western Cape”, which created 63 000 new jobs.

KwaZulu-Natal was the second-largest new jobs contributor, with 90 000 created in the period.

Some 53 000 new jobs were created in agriculture in the past twelve months, a 9% increase. But manufacturing and construction shed employees, with 81 000 manufacturing jobs lost over the past year.

“In October 2010, when the New Growth Plan (NGP) was adopted, total employment was 12.9-million. By March 31 this year, it was 13.4-million. Thus, 447 000 new jobs have been created in the past 18 months, compared to a loss of 660 000 jobs in the 18 months prior to October 2010.”

However, there was still much scepticism about whether the NGP’s target of creating five-million new jobs by 2020 was achievable, particularly in light of the problems being experience in Europe and the slowdown in key emerging markets.

3. South Africa

3.1 Education focus at Sisulu centenary

TimesLive, 18 May 2012

The late Walter Sisulu was passionate about education despite only having standard four when he was sent to Robben Island for treason, his former cellmate and Rivonia trialist, Ahmed Kathrada, said on Friday.

"Despite having no formal education he was an educated man, because, what Walter showed was that you do not need a certificate to be educated," Kathrada said of his life-long friend and former ANC deputy president, who died in May nine years ago.

He was speaking at Sisulu's centenary birthday celebration in Johannesburg.

The event, the first of a series to mark Sisulu's 100th year, was a fundraiser for the Walter Sisulu University Foundation. The foundation is a financial support partner to the Eastern Cape university, which is currently under administration.

Kathrada spent an hour reminiscing about his old friend, telling stories of Sisulu's generosity and courage. For the last four years of their incarceration, before being freed by the apartheid government in 1989, the two men were cellmates.

He told how, at the Rivonia treason trial, Sisulu told the state prosecutor that he would never divulge information that would compromise the ANC or his comrades.

"Sisulu ended by saying that he wished the prosecutor was an African so that he could understand the plight of African people," Kathrada said.

In one of their many conversations Kathrada said Sisulu had told him if he was sent to the gallows he would go singing.

"We must do this for the sake of our youth," Sisulu said, "so that they know, from our strong voices, that we went without fear and that our deaths were not the end of the liberation movement."

Sisulu's daughter-in-law and biographer, Elinor Sisulu, said the question why Sisulu dropped out of school and battled to read and write was often speculated on.

"Despite his lack of formal education he was able to hold his own with great intellects."

Elinor Sisulu said she suspected her father-in-law had suffered from dyslexia, which was what had limited his formal learning.

"It is disabilities like this that we have to consider in education to ensure people don't fall by the wayside," she said.

3.2 Government to appeal court ruling over e-tolls

Linda Ensor, Business Day, 18 May 2012

The government planned to appeal against the interim order handed down by the North Gauteng High Court, which halted the implementation of e-tolling on the Gauteng Freeway Improvement Project (GFIP), Cabinet spokesman Jimmy Manyi said yesterday.

The state legal advisers were studying the written judgment which was only received late on Wednesday, and would advise the executive on the basis for the appeal later.

An appeal by the state could potentially drag out the e-toll saga, although it was still expected that a political solution was the best bet in resolving the current impasse.

Addressing a post-Cabinet media briefing, Mr Manyi said the government also planned to come to the financial aid of the South African National Road Agency (Sanral) in light of the delay in e-tolling, which arose both from the court ruling and a decision by the African National Congress to put e-tolling on ice.

Mr Manyi said the government would "take the necessary steps to ensure Sanral’s financial soundness pending the outcome of the legal and consultation processes."

African Christian Democratic Party spokesman on justice Steve Swart said it was "regrettable" that the government had decided to appeal the court ruling, as it would further delay the finalisation of litigation surrounding this controversial project.

The special committee established by the Cabinet a few weeks ago under the chairmanship of Deputy President Kgalema Motlanthe was exploring "interim measures to assist Sanral in meeting its financial obligations", Mr Manyi said.

This would also enable Sanral to continue with its road building programme instead of sacrificing projects in order to make ends meet.

The Treasury’s director-general Lungisa Fuzile said in Parliament recently that Sanral had resources to meet its financial obligations, but only for the next six months and only by making "huge sacrifices", jettisoning projects and scraping together its resources.

The Cabinet confirmed its faith in Sanral, which was rocked by the resignation of its CEO Nazir Alli.

The Cabinet said the agency had a "demonstrable capacity to manage large contracts and deliver world-class road infrastructure. Sanral had proved itself to be a valuable institution of the state."

"Cabinet reiterated its commitment to the user pay principle and its decision on e-tolling as an efficient mechanism for collection," Mr Manyi said.

"We have effected major improvements to Gauteng freeways under the first phase of the GFIP, which have brought about observable changes to the flow of traffic on these roads.

"The benefits to motorists are evident. And bringing about these changes the government has borrowed money and incurred a significant debt. As a country we need to demonstrate unequivocal commitment to meet all our contractual obligations, including repaying the debt incurred in the construction of GFIP. Defaulting on our debt is simply not an option," Mr Manyi emphasised.

3.3 ‘Portrait of Zuma is below the belt’

Sibusiso Nkomo, Cape Argus, 17 May 2012

The ANC is outraged at a portrait that shows President Jacob Zuma, in the pose of Lenin, with his genitals hanging out. And the party is headed to court to force the artist Brett Murray, the Goodman Gallery and the City Press newspaper to remove the portrait.

The Goodman Gallery said Murray will not comment and will let the art “speak for itself”.

The 1.85m-high piece, priced at R136 000 and titled The Spear, was first reported on by City Press and a picture of the portrait was printed and displayed on its website.

“The African National Congress is extremely disturbed and outraged by the distasteful and indecent manner in which Brett Murray and the Goodman Gallery in Johannesburg is displaying the person of Comrade President Jacob Zuma,” ANC spokesman Jackson Mthembu said.

City Press executive editor Fikile Ntsikelelo-Moya said the newspaper would not be removing the portrait because of the ANC’s demands.

“We will respond to court papers when served. The courts will make a decision and we’ll abide by the court ruling,” Moya said.

Mthembu said: “This disgusting and unfortunate display of the president was brought to our attention by one of the media houses. We have this morning instructed our lawyers to approach our courts to compel Brett Murray and Goodman Gallery to remove the portrait from display as well as from their website and destroy all printed promotional material.

“We have also detected that this distasteful and vulgar portrait of the president has been displayed on a weekend newspaper and its website.

“We again have instructed our lawyers to request the said newspaper to remove the portrait from their website.”

He added that it is the ANC’s view “that the image and the dignity of our president as both president of the ANC, president of the republic and as a human being has been dented by this so-called piece of art by Brett Murray at Goodman Gallery”.

“We are also of the view that this distasteful depiction of the president has violated his individual right to dignity as contained in the constitution of our country.

“The same gallery has displayed the logo of the ANC without the permission of the ANC, with the inscription ‘FOR SALE’ on it. Both these portraits are a clear calculation to dismember and denigrate the symbols and the representative of the ANC, chief amongst them, the president of the ANC,” he said.

Mthembu said the ANC believed in freedom of the press and artistic expression.

“The vulgar portrait and the dismembering of the ANC logo by Brett Murray is an abuse of freedom of artistic expression and an acute violation of our constitution, apart from being defamatory.”

3.4 'Seize mines, banks now'

Amukelani Chauke, Times, 18 May 2012

The National Union of Metalworkers of SA wants the government to nationalise economic sectors - including mines and banks - without compensation.

Speaking at the University of Johannesburg yesterday, Irvin Jim, the union's general secretary, rejected the findings of research commissioned by the ANC that found that nationalisation was not viable.

Releasing discussion documents ahead of the union's policy conference next month, Jim said nationalisation could be embraced only if there was "political will".

"Nationalisation, in our understanding and political practice, is the demand not only for resolving the historical injustices of dispossession, oppression and exploitation, [but] it is also about the uprooting of racism and building the basis for a truly democratic South Africa.

"Thus, for us, nationalisation must include all the commanding heights of the economy, such as banks, mines, telecommunications, land, food chains, petrochemicals and so on.

"Such nationalisation must be without compensation as it is virtually impossible to achieve it otherwise," Jim said.

Numsa's call to nationalise economic sectors without compensation - to be discussed at its policy conference in Durban from June 3 - is by far the most radical form of nationalisation that has been proposed so far .

Although Numsa as a union has no influence on the ANC's policy positions, it will hope its members, who are also card-carrying members of the ruling party, will make the union' s voice heard at the ANC's policy conference in Midrand next month.

The ANC has proposed the formation of a state-owned mining company. This is seen as a reasonable alternative to outright nationalisation.

The ANC's research on the issue - commissioned at its national general council meeting in Durban in 2010 - found that it would cost the state R1-trillion to acquire 100% of all listed mining companies.

Jim criticised the ANC's research team, saying that instead of executing its mandate to investigate how best nationalisation could be implemented, it came back with reasons why nationalisation would not work.

A clause in one of Numsa's discussion documents titled "Political, economic, social and international trajectory since 2008" reads: "[The] government must seek to transform the shareholding of multinational companies or foreign companies in South Africa so that their shareholdings make up less than 51% ."

The constitution, in its current form, would not allow for the state's shareholding to be changed without compensation.

Broad-based black economic empowerment legislation requires that companies sell 26% of their shares to black-owned investors.

Another likelihood for such a proposal to be accepted would be if the ANC decides to review the constitution after its elective conference in Mangaung in December.

Jim would not elaborate on how Numsa's proposed nationalisation would work, saying only it could be done with political will.

3.5 Numsa calls for nationalisation

Natasha Marrian, Business Day, 18 May 2012

The National Union of Metalworkers of SA (Numsa) called for a raft of radical policy shifts yesterday to transform the local economy, proposing nationalising the banks, mines and the telecommunication sector, without compensation.

Critics say the union has stepped firmly into the vacant domain left by the African National Congress (ANC) Youth League, which re-ignited the debate on nationalisation and placed it firmly on the ANC’s agenda.

Numsa, the Congress of South African Trade Unions’ second-largest affiliate, is adamant that the present economic trajectory would not stem the growing tide of inequality, poverty and unemployment in SA.

"If nationalisation is not the way to go, we must accept that the Freedom Charter must be dumped," said Numsa general secretary Irvin Jim, releasing the union’s draft policy documents ahead of its conference next month.

In the draft document, Numsa argues that should the ANC "dump" the Freedom Charter — which it uses to justify nationalisation — it would risk losing Cosatu’s support during elections.

"Once the Freedom Charter and its basic tenets have been dumped, we … shall be left with no option but to ask a secondary question: ‘Why must Cosatu call on workers to continue to vote for the ANC if it has taken a decision not to implement the Freedom Charter’," the document reads.

Numsa also wants to ensure that the ANC leadership elected in December at the party’s national conference is "equal to the task of implementing the Freedom Charter".

The union further wants the state to take control of the Reserve Bank, a complete overhaul of the country’s monetary and financial policies, for an industrial strategy focusing on creating jobs and for the ANC to initiate a process of review of the constitution.

"We are convinced that the time has come to end the sunset clauses and to do a thorough review of the performance of the 1996 constitution with a view to exposing the extent to which it has helped SA undo its apartheid capitalist features in the economy and society," said Mr Jim, referring to the property clause.

Mr Jim rejected the ANC’s report on nationalisation — the study advised against "asset grabs" and buying stakes in mines — saying the team that produced the report had failed in its task.

3.6 Mdluli ball back in the NPA's court

Glynnis Underhill, Mail & Guardian, 18 May 2012

In a show of defiance, the police’s Hawks unit has returned the letter it received from the National Prosecuting Authority (NPA) informing it that the now sidelined crime intelligence boss Richard Mdluli would not be prosecuted.

The acting national director of public prosecutions, Nomgcobo Jiba, had not signed it and on that basis the Hawks returned the letter to her, the Mail & Guardian was told.

It was signed by Jackie Lipinka, an NPA office manager.

A police source said the Hawks believed that Jiba was reluctant to throw herself into the political whirlpool surrounding Mdluli. The NPA withdrew the murder and fraud charges against him.

The Hawks are now fighting that decision, which it regards as highly irregular.

Protecting Selebi
But the prosecuting authority’s spokesperson, Mthunzi Mhaga, said Jiba had “no reason to sign the letter”.

“The matter was being handled by the specialised commercial crime unit and the Hawks had addressed it to the head of that unit, who responded accordingly,” he said.

The head of the unit is Lawrence Mrwebi, who is a former KwaZulu-Natal head of the disbanded Scorpions unit.

During former national police commissioner Jackie Selebi’s corruption trial, Mrwebi testified on his behalf, alleging he was the victim of a plot by the Scorpions to arrest police officers to prevent the disbandment of the unit. Selebi was found guilty of corruption in 2010.

Jiba was also involved in allegations that she had tried to protect Selebi. She was suspended four years ago by the NPA because of her alleged involvement in a campaign waged against former Scorpions boss Gerrie Nel, which was alleged to have been aimed at thwarting the arrest of Selebi. Her disciplinary process was subsequently abandoned.

Enmity
It was reported by the M&G that Mdluli allegedly filed an affidavit supporting Jiba in which he claimed he had access to telephone calls that revealed that Nel was being protected by the NPA.

Nel earned Jiba’s enmity by prosecuting her husband, Booker Nhantsi, for stealing a client’s money from his firm’s trust account.

In a controversial move, President Jacob Zuma expunged Nhantsi’s criminal record in September 2010.

Caught in this web is Glynnis Breytenbach, who heads the regional specialised commercial crime unit in Pretoria. A senior prosecutor, her life has been threatened – she has been shot at twice while driving and attempts were made to force her car off the road. Breytenbach was suspended after she sent a memorandum to Jiba giving reasons why the fraud charges against Mdluli should not have been dropped.

Although Breytenbach is expected to face a disciplinary hearing, she has still not received a copy of the charges against her.

Disciplinary action
“They haven’t had time to manufacture the charges,” said a source close to events surrounding her.

The NPA has 60 days from the date of her suspension, April 30, to hold a disciplinary hearing.

A source said it was suspected the NPA would delay the hearing for “as long as possible” to keep her out of the office.

She returned home this week from a planned holiday abroad to see the headlines about the urgent application brought by the Freedom Under Law organisation to prevent Mdluli from working as a police officer, pending a judicial review of the decisions relating to his reinstatement as crime intelligence boss.

According to a source close to Breytenbach, she has welcomed the news. She is also still in the dark about when she will return to work.

Racist plot
Although the NPA has denied that Breytenbach’s suspension is related to her attempts to prosecute Mdluli for fraud, the source close to her believes it was directly related to the memo she sent to Jiba.

Mdluli was previously accused by police of allegedly plundering the crime intelligence division’s secret service account to buy cars and houses, pay for holidays and to employ, illegally, his family members as covert agents. He was also charged with involvement in the 1999 murder of Oupa Ramogibe, who was married to his former girlfriend.

Mdluli claimed in an exclusive interview with the M&G last week that he was innocent of both fraud and murder charges, alleging it was a “racist plot” against him.

Apart from the allegations involving Mdluli and the secret services fund, the M&G reported two weeks ago that the Hawks had allegedly uncovered a second slush fund – a concealed police bank account – that police claimed further backed Breytenbach’s case for reopening the fraud case against Mdluli.

3.7 Police boss moves against Richard Mdluli

Sam Sole & Sally Evans, Mail & Guardian, 18 May 2012

Acting commissioner Nhlanhla Mkhwanazi appears to be defying political attempts to bury the investigation into the former head of crime intelligence.

Acting national police commissioner Nhlanhla Mkhwanazi has given embattled crime intelligence boss Richard Mdluli and his ally, the manager of the police secret services account, Major General Solly Lazarus, seven days to give reasons why they should not be suspended for a second time.

The move may indicate an increasing defiance by Mkhwanazi of political attempts to bury the Mdluli investigation.

The Mail & Guardian has confirmed from three independent sources that Mdluli and Lazarus both received the letters. Brigadier Lindela Mashigo, Mkhwanazi’s spokesperson, would not confirm this, saying it was an internal matter.

Mdluli and Lazarus were reinstated on March 27 following a stormy meeting between Mkhwanazi, Police Minister Nathi Mthethwa and inspector general of intelligence Faith Radebe.

The reinstatement – contrary to Radebe’s written advice that criminal charges against Mdluli and disciplinary charges against Lazarus should proceed – was widely viewed as having been precipitated by pressure from Mthethwa.

Mthethwa has denied issuing such an instruction, but the withdrawal of murder and fraud charges against Mdluli and his return as crime intelligence boss prompted a public outcry.

Last week Mthethwa acted to diffuse pressure by announcing that Mdluli would be temporarily transferred from crime intelligence while a ministerial task team investigated claims that there was a conspiracy against him by other senior police generals.

But Mthethwa’s action did not prevent advocacy group Freedom under Law from launching an urgent application on Tuesday to have Mdluli suspended pending a full high court review of the decisions that led to his reinstatement.

Mkwhanazi’s move against Mdluli may partially defuse the application, but it also suggests that the government is losing control of its attempts to manage the situation politically.

Mkhwanazi has previously expressed his unhappiness over how police decisions on certain cases have been dictated by “powers beyond us” – and was understood to be referring to the Mdluli saga.

Zuma told a business breakfast on Thursday there was “no need for alarm” over the government’s handling of Mdluli, but the Freedom under Law application contains new revelations that will ratchet up public concern. – Additional reporting by Glynnis Underhill

3.8 No reasons given for NRCS head’s special leave

Mogomotsi Magome, Pretoria News, 17 May 2012

THE future of yet another head of a key regulatory body in the Department of Trade and Industry (DTI) is unclear as he has been paid for sitting at home for four months.

National Regulator of Compulsory Specifications (NRCS) head Moses Moeletsi has been placed on special leave.

The NRCS administers compulsory technical specifications for public safety and health and environmental protection.

The NRCS confirmed yesterday that Moeletsi was on special leave and that he had not yet been charged with any wrongdoing. But it would not disclose the reasons for the leave, saying it was an internal matter between him and the regulator.

Moeletsi has claimed he has not been given reasons.

His special leave came months after the resignation of the chairman of the NRCS board, Savannah Maziya, soon after being cleared of wrongdoing by an independent forensic investigation.

The investigation, by forensic firm Gobodo Incorporated, cleared both Maziya and Moeletsi of allegations of mismanagement.

The allegations were made by staff members affiliated to the National Education, Health and Allied Workers Union (Nehawu).

Nehawu has on several occasions called for the sacking of Moeletsi and Maziya.

The DTI was brought into the spotlight this week when the head of the National Consumer Commission, Mamodupi Mohlala-Mulaudzi, took it to court over the termination of her contract.

Mohlala-Mulaudzi claimed her contract was being terminated as a result of a complaint she laid with the public protector against DTI director-general Lionel October.

The DTI has denied her claims, with Minister Rob Davies saying on Monday the department was not compelled to renew Mohlala-Mulaudzi’s contract when it came to an end in September.

“I must be charged and let’s get on with it,” said Moeletsi.

NRCS spokeswoman Mmaphefo Moswaane confirmed Moeletsi was receiving his full pay.

4. International

4.1 Greek leftist leader dares Europe to save euro

Lefteris Papadimas & Karolina Tagaris, Business Day, 18 May 2012

Greece’s surging leftist leader challenged European heads to preserve the euro and save Greece, adding it was time to get rid of the political class in Athens that agreed to austerity reforms that have brought the country to its knees.

Syriza leader Alexis Tsipras, the 37-year-old rising star of Greek politics, blamed leaders who supported German Chancellor Angela Merkel and former French president Nicolas Sarkozy’s "barbaric" austerity policies, and predicted his party would sweep next month’s election.

"They are trying to terrorise the people to make Syriza cave in. We will never compromise," the former Communist student leader told his party’s legislators, often addressing them as "comrades". "We will never participate in a government to rescue the bail-out."

Polls conducted after an inconclusive May 6 vote suggested Syriza was on track to surpass the conservatives to become the biggest party when Greeks vote on June 17.

Mr Tsipras and Antonis Samaras, leader of New Democracy, clashed yesterday over how the country could stay in the euro, underscoring the political deadlock that triggered the decision to hold a second national vote in six weeks.

The political standoff has reignited concern the country will renege on pledges to cut spending as required by the two rescue packages worth ¤240bn. That could lead to funding being cut off and Greece ultimately leaving the euro zone.

"Nobody knows exactly what will be unleashed when Greece does default and exit," Megan Greene, an economist at Roubini Global Economics said yesterday. "We’re already seeing deposits flee from Greece. When Greece does exit, we’ll see bank runs in Portugal and Spain, and I think that the ECB (European Central Bank) is poised to step in and try to plug that gap."

The latest poll, conducted for To Pontiki newspaper on Tuesday and Wednesday, showed Syriza taking 24,5% of the vote, ahead of all other parties. First place comes with a bonus of 50 extra seats in the 300-seat parliament, which went to the conservatives last time.

Greece’s long-running economic crisis turned into a full political crisis after parties opposed to the terms of a €130 bn bail-out made strong gains in the May 6 vote, leaving it without a government and raising the odds it would renege on terms of the deal.

Earlier this week, the president said Greeks had withdrawn up to ¤800m from banks as the political uncertainty deepened. Withdrawals would pass ¤2bn by yesterday.

In a further blow, the ECB said it had halted liquidity operations with some Greek banks because their capital was too depleted. Fears that Greece’s dire state could drag the euro zone deeper into crisis kept markets on edge across the globe, and International Monetary Fund (IMF) chief Christine Lagarde warned of "extremely expensive" consequences if Greece were to leave the euro zone.

In a briefing in Washington yesterday David Hawley, IMF deputy director of external affairs, said the multilateral lender would not return to Greece to review its loan programme before Athens holds fresh elections on June 17. "We take note that elections have been called and we look forward to being in contact with the new government when it has been formed," he said.

European Commission president Jose Manuel Barroso said yesterday the European Union (EU) would do "all it takes" to prevent Greece from abandoning the euro.

Interim Prime Minister Panagiotis Pikrammenos’s cabinet, sworn in yesterday, includes senior finance ministry official George Zanias as the new finance minister and Petros Moliviatis, a former conservative minister, as foreign affairs minister. As Greece’s chief economic adviser, Mr Zanias was in meetings of euro-zone finance ministers and was involved in negotiating the bail-out and a debt restructuring.

At his first cabinet meeting, Mr Pikrammenos told ministers they would get no salary for their month in office and urged them to dispense with superfluous spending such as limousines or business trips.

Mr Pikrammenos’s predecessor Lucas Papademos implored Greeks to choose wisely, since their nation now stood at a crossroads.

"Some would like to see Greece become weak and out of the euro zone and the EU. We must not give them the chance to speculate against Greece," Mr Papademos said. Reuters

5. Comment

5.1 DA, Cosatu battle for unemployed youth voting bloc

Terry Bell, Business Report, 18 May 2012

The battle for the electoral support of the millions of unemployed, unskilled and mostly ill-educated youth – perhaps the most crucial voting bloc for the 2014 elections – is now in the open. It came with the decision by the DA to march on Cosatu House and in the reaction to this by some Cosatu unions and various allies.

Cosatu correctly maintained that the march, to present a memorandum of protest about union opposition to a youth wage subsidy, was opportunistic and provocative. Commentators such as Professor Steven Friedman and ANC executive member Pallo Jordan agree.

But while the decision to march and the march itself was certainly – and probably deliberately – provocative, it was a perfectly legitimate exercise by a political party in a parliamentary democracy. It was a stunt carried out in the hope that it would trigger a reaction that would damage the country’s largest labour federation, highlight the confusions and contradictions that persist in the “broad church” of the governing alliance, and enhance the electoral chances of the DA.

In the days leading up to the march, it was obvious that some Cosatu unions, with the National Union of Metalworkers (Numsa) at the forefront, planned a confrontation, with calls to “swamp the streets” and confront “the enemy”. So the DA leaders who led the march were well aware that they would face a hostile reception. They were not disappointed.

But many in the labour movement have realised that the reaction to the DA march amounted to a major tactical blunder.

It matters not who threw the first rock: Cosatu is now widely portrayed as intolerant and in contempt of those cardinal principles of the labour movement, the right of assembly and the right of protest. And, just as importantly, in contempt of the constitutional rights of all citizens.

In the days leading up to the march, one veteran trade unionist remarked: “What on earth is the DA doing marching on Cosatu?”

It was a point made at the same time by Cosatu general secretary Zwelinzima Vavi, who pointed out that the wage subsidy issue was a matter of government policy; that the government should be the target.

Having acknowledged this, logic demanded that the union hotheads be reined in and the DA march largely ignored. The memorandum could have been received at Cosatu House by a minor official who could have noted that it would be forwarded to the government, as the correct recipient. Such suggestions were made, but ignored.

Instead, the rhetoric was ratcheted up as Numsa, the ANC Youth League, the SACP and other allies seemed intent on outdoing one another in the use of tub-thumping and jargon-laden language. Clear facts and cogent analysis about a youth wage subsidy became buried beneath a torrent of emotional verbiage, distorted fact and misinformation.

This too was aimed at that vast and increasingly angry youth bloc. The hastily assembled anti-march alliance presented itself as the true, radical face of a revolutionary and “pro-poor” ANC, battling against the “forces of imperialism”.

This was the self-proclaimed “Left” of the ANC continuing its rearguard battle to draw the governing alliance into adopting an undefined “socialist path” in support of an ill-defined “national democratic revolution”.

Much was made of the fact that the DA was formed by an alliance between the Democratic Party and the National Party. What the detractors failed to mention was that this same “party of apartheid”, the NP, subsequently left the DA and collapsed into the ANC; that its leader, Marthinus van Schalkwyk, is the former environment minister and now the tourism minister.

An impression was also created in calls to oppose the “racist and fascist” DA, that the opposition party was not only in support of, but initiated, the youth wage subsidy proposal. Yet it was first tabled last year by Finance Minister Pravin Gordhan and is supported by a government that includes in its cabinet the general secretary of the SACP.

But the misinformation did not only emanate from one side. In the first place, opposition in the tripartite negotiating chamber, Nedlac, to the subsidy comes not only from Cosatu but from the labour caucus. Along with Cosatu, this grouping comprises the Federation of Unions of South Africa and the National Council of Trade Unions (Nactu).

And labour has not simply opposed the subsidy proposal.

One suggestion is that “structured education” be put in place to provide adequate skills training in areas where jobs are available and not to “throw money at the problem” with a wage subsidy.

Sections of the media must also bear part of the blame for reports on Wednesday that President Jacob Zuma had admitted that Cosatu was the stumbling block in the implementation of a youth wage subsidy. Had such a statement been true, it would have justified the DA’s decision to march on Cosatu House.

But Zuma said no such thing; DA parliamentary leader Lindiwe Mazibuko interpreted a written response from Zuma in that manner. What Zuma actually wrote was that the discussions about the subsidy had started in May last year and were still continuing. His words were: “Social partners continue to discuss the youth employment incentive at Nedlac. As such, final proposals have yet to be made to cabinet.”

As Nactu general secretary Manene Samela sees it, the whole wage subsidy issue has more to do with the 2014 elections than with any serious attempt to deal with youth unemployment. The subsidy proposal, he says, has the effect of holding out the “false promise” of jobs to a vital sector of the electorate who are unemployed and who may become even more angry should their expectations be raised and then dashed.

The comment brought to mind the warning issued in Cape Town last week by the former chief justice Arthur Chaskalson. He noted that a threat to our egalitarian constitution exists: it comes not from politicians and their pronouncements, but from the inability to deal with mass unemployment, poverty and corruption.

5.2 March blows up in DA's face

Phillip de Wet, Mail & Guardian, 17 May 2012

If the Democratic Alliance intended to torpedo the controversial youth wage subsidy scheme, or ensure its implementation was long delayed, it made great strides this week. Its march on the headquarters of Cosatu, already implacably opposed to any employment measure that does not create permanent positions with decent wages and benefits, now makes it virtually impossible for the union umbrella body to accept any compromise without a severe loss of face.

This is in addition to a substantial list of strategic mistakes the DA’s now infamous march in Johannesburg represents for a party generally considered canny, the occasional controversial tweet by party leader Helen Zille notwithstanding.

Although much of the focus this week has been on the reaction of Cosatu members and the federation suffered a barrage of criticism for intolerance, thuggish behaviour and the casual use of violence, even some DA leaders are wondering whether that sufficiently offsets the damage – including the damage done to the party by being perceived as a victim.

DA supporters in three Gauteng townships that have experienced service delivery protests in recent months said this week they would probably not fly the party colours in future, especially in volatile situations.

Seeing people in the DA colours being pelted with stones and getting no action from the police did not inspire confidence.

“We have a lot of tolerance here and we unite around issues without worrying about who belongs to which party,” said a DA member from Thembisa, who is at the core of a group demanding lower electricity prices in the township.

Forceful about corruption
“Now it looks like we are the enemy and that beating us is okay. Don’t say I’m a coward, but I’m going to be careful next time.”

The choice of target could also represent a loss of focus for a party that has seen great leaps in voter support at a time when it casts itself as a true opposition, acting as a counterweight to and sanity check on the ANC.

DA supporters and potential sympathisers initially reacted with outrage at the violence and the underlying lack of tolerance it showed, and it remained a major part of the discussion.

But towards the end of the week other questions were being asked. Would Cosatu now be less forceful about corruption, or even more supportive of the ANC in general? And could such an effect last long enough to have an impact on elections? Ordinary members were not the only ones wondering.

“We used to know that it was the ANC and its approach that was keeping people poor,” said a DA party officer, speaking on condition of anonymity because “Helen won’t like this”. “Granted, the problem is actually the union policies of protecting those already in jobs and keeping wages high and rising. Yes, that is Cosatu’s fault.

Paternalistic
“We’re not in Parliament to oppose Cosatu. The ANC listens to the unions and that is what we have to oppose. You oppose the ones who actually have the power.”

The DA had hoped the march and lobbying for the youth wage subsidy in general would be a major step in its ongoing campaign to reposition the party as being no less pro-poor than the ANC, but with a different approach to poverty alleviation – a focus on government efficiency, the elimination of corruption and orthodox economic policies such as productivity and global competitiveness.

But instead of having the flavour of a wage strike or a service delivery protest, the DA (with a little help from Cosatu members) managed to come across as paternalistic. And for some paternalism is strongly associated with repression.

“Those people look like they all have jobs,” said a spectator in Braamfontein as the DA and Cosatu groups faced off against one another, but before things turned violent. “What do they know about getting other people jobs?”

Perhaps because it is still seen as an elitist party, and often as a white one, that what the DA considers a sensible job-creation strategy is all too often treated as a self-serving prescription. Hastily scrawled posters among the Cosatu welcoming committee told the story: “Beware ANC apartheid is back”, “Zille is trying to Verwoert-erise GP and SA!!!”

Labour broking
Union members who turned out to counter the DA protest almost universally equated a youth wage subsidy with labour broking, saying both were intended to make workers into slaves, both would be to the benefit of those who were in control of the economy and both had DA support.

The recent controversial comments by FW de Klerk about the former bantustans added fuel to the fire.

“FW there on the TV – he says the blacks had a nice time in the homelands,” said a shop steward, standing in the shade of a building across the road from the Cosatu headquarters as the DA group made its way closer.

“The NP said to us that apartheid was for our own good. The DA says this [wage subsidy] is for our own good. You see? They are no different.”

The composition of the march, which overwhelmingly comprised black supporters, should easily have countered any such comparison. Instead, members of the public seemed to lean towards the Cosatu interpretation, with phrases such as “fronting”, “window-dressing” and “march for lunch” coming up again and again.

It may be a symptom of the lingering sense that the DA is the party of the bosses, or it may be a testimony to Cosatu’s power to frame the discourse, but the lack of a sense of honesty to the march certainly did not help.

Marchers going postal threaten union rights
Members of the Communication Workers’ Union attacked a post office vehicle in Braamfontein on Wednesday, just blocks away from where Cosatu supporters had clashed with Democratic Alliance marchers on Tuesday.

Though the trade union federation claims the majority of its street action is peaceful – and the numbers support that contention, especially during larger events – unions in its fold have become associated with low-level violence.

Marches during stalled wage negotiations have resulted in participants, whom Cosatu brands opportunist non-members, targeting delivery vehicles, uniformed workers not taking part in a strike, municipal property, hawkers and the occasional passer-by.

Particularly violent protests by the South African Municipal Workers’ Union in August last year resulted in the DA lobbying for legislation to hold unions financially responsible for the damage caused during the marches they organise. The party said it would be the best way to discourage such behaviour. Unions universally decried the suggestion as the financial suppression of dissent. But a perceived threat of violence alone is, in a small way, curbing the ability of unions to protest. The Labour Court has granted concerned parties interdicts preventing marches that could turn violent. Successful arguments included the infringement of the right of members of the public not to fear for their safety.

The metropolitan police services in Johannesburg and Cape Town have variously denied permission for marches, limited routes and imposed conditions on unions they suspected of being unable to control their members.

5.3 KwaZulu support may come back to haunt Zuma

Anthony Butler, Business Day, 18 May 2012

Jacob Zuma ’s campaign for a second term as African National Congress (ANC) president appears to be on track. His greatest fear must be that his early successes might yet weaken his longer-term prospects. At the ANC’s KwaZulu-Natal provincial conference in Newcastle last weekend, the senior provincial leadership was re-elected without contest.

The province’s 250000 members will form a uniquely cohesive pro-Zuma delegate block at the movement’s Mangaung conference in December. Given the absence of any performance-related cause for such acclaim, the provincial party’s raucous endorsement of the president is paradoxically problematic for him.

First, Zuma’s opponents now feel grudgingly entitled to mobilise a low-level ethnic campaign against him. Activists have not forgotten ANC stalwart Zola Skweyiya ’s assurance that Zuma promised to serve only one term in the interests of ethnic rotation.

United Democratic Movement leader Bantu Holomisa has said Zuma’s ANC has a "laager mentality" because "24 ministers and a number of senior government officials come from the same region". The allocation of positions on the basis of "ethnicity and tribalism", he claims, is the "root cause" of civil wars.

Second, Zuma’s s tate of the n ation address included infrastructure promises that now strike some ANC regions as elaborate fictions. KwaZulu-Natal pork-barrel projects such as the high-speed railway from Durban to Johannesburg appear to have been deferred rather than buried. Hundreds of billions of rand have already been committed to railway upgrades, to Durban’s port and container terminal, and to associated investments in the chemicals and automotive sectors. Ostentatious spending in Nkandla symbolises ethnic favouritism and contrasts with the dereliction in the home regions of former ANC presidents.

Third, circulating slates of "top six" candidates, allegedly originating in KwaZulu-Natal, propose that Zulu leaders should dominate the ANC leadership. Ministers Nathi Mthethwa , Blade Nzimande and Malusi Gigaba , among others, have all been touted for inappropriately high office.

Given that ANC secretary-general Gwede Mantashe is vulnerable to defeat, Eastern Cape activists may feel their regional interests might no longer be represented in the post-Mangaung leadership.

Finally, many activists fear that the relative strength of KwaZulu-Natal in the ANC could increase dramatically after Mangaung. Ageing centrist warhorses such as Kgalema Motlanthe and treasurer-general Mathews Phosa are no longer secure. The Congress of South African Trade Unions is increasingly a public-sector federation that reflects national ethnic demographics.

Zuma’s cultivation of traditional leaders may build powerful constituencies in rural areas and facilitate the incorporation of more of the ethno-nationalists of the Inkatha Freedom Party into the ANC.

KwaZulu-Natal ANC chairman Zweli Mkhize told delegates last week to revive dysfunctional branches and recruit the youth. "KwaZulu-Natal must go into a membership drive up to the 300000 mark."

The closer victory comes for Zuma, the greater the danger that his provincial and ethnic support bases will adopt a triumphalist posture.

In Newcastle, Zuma cautioned his audience against "arrogance" based on their numerical predominance over other provinces. "You must behave in a manner that is not factional," he insisted. "Your behaviour should be devoid of any sense of arrogance because of your numerical strength — an attitude that says you have the numbers and therefore those without numbers are less important."

The demeanour of conference delegates remained irrepressibly triumphalist. The closer victory comes, the more likely that activists will escape the straitjacket of false humility in which Zuma has attempted to contain them. Ill-considered celebrations in KwaZulu-Natal could intensify anxiety in other provinces and generate both regionalist and ethnic counter-reactions.

• Butler teaches politics at the University of Cape Town.

5.4 Ineptocracy

David Hill, Times, London, 13 May 2012

Much like inheriting a billion pounds only to die broke or forfeiting a three goal half time lead; ineptocracy is one’s failure to succeed from a position of strength.

A political example of ineptocracy would be South Africa’s ruling party the ANC; who after 18 years of leading one of the most fertile and resource rich countries in the world hasn’t developed any sustainable solutions to generating wealth for its people beyond affirmative action, land redistribution and the nationalization of assets.

After almost two decades of rule, the ANC’s sole solution to endowing its people is still to merely take wealth away from others. Surely this is their failure?

Consider that South Africa is the only country in the world whose affirmative action policy favours a majority who also happens to have complete political control. In the rest of the world affirmative action is designed to favour the politically un-represented minority, not the politically strong majority.

South Africa now appears to have a system of government whereby the ruling party is elected by the non- contributing majority, who in turn are then rewarded with subsidies, goods and services paid for from the earnings of the contributing minority.

The flaw with this system is that nowhere does there exist a plan, nor an incentive, for this impoverished majority to actually start contributing to the economy and hence they continue to demand more from their elected leaders who in turn continue to deflect the wealth generation burden onto the contributing minority.

Clearly this cycle of diminishing returns is not sustainable as eventually the expectation of the non-contributing majority will become too high and the burden on the contributing minority will become too great. In the end something has got to give as no economy can bear 20 million people supporting 50 million people.

To further illustrate just how poorly the ANC has done at generating wealth solutions for its people over the past 18 years, consider Germany and Japan who at the end of World War II were completely decimated by the Allied bombings and were thus economically distraught. Neither had any industry, agriculture nor natural resources to generate wealth from, yet within 20 years both countries had uplifted themselves to being highly employed, economic powerhouses. Clearly both these governments

achieved vastly more for their people with significantly less over a similar period of time and without disadvantaging any demographic.

So the fact that after two decades of complete political control the ANC has failed to secure wealth generation systems for its people beyond affirmative action and nationalisation, well is that not the very definition of ineptocracy?

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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