Global South African Weekly News Wrap 22 March 2012

Global South African Weekly News Wrap Up 22 March 2012
Contents
We're doing well JZ:President Jacob Zuma says the government has made progress in improving human rights through service delivery and the creation of socio-economic opportunities. ..................................................................................... 2 'Speak out when rights are violated' .......................................................................... 3 Human Rights Day: Zuma to deliver keynote address............................................. 4 DA marches on Sadtu over teacher go-slows ............................................................ 4 SA economy picking up speed, says Bank report ..................................................... 6 Razing the flag .............................................................................................................. 7 IDC plan to boost economy gets off to slow start ...................................................... 9 SA microbrewery tastes success in Britain .............................................................. 11 Cricket aims to win back former glory .................................................................... 13 IDC weighs Mittal rival to cut SAs steel prices...................................................... 14 Manuel: Where are today's heroes? ......................................................................... 16 Out on the tide: A ceaseless brain drain is stripping the country of skills; its time to tap into these expatriate communities ......................................................... 17 State makes plans for nuclear legislation................................................................. 19 Motlanthe wants top job............................................................................................ 20 Eastern Cape could turn out to be ANC kingmaker .............................................. 22 R350-m security deal adds to DA tenderitis ............................................................ 24 Blood-red rage in Hangberg ..................................................................................... 26 Lindiwe Sisulu: Not part of faction .......................................................................... 27 ANC asks for patience amid protests ....................................................................... 28 Zille hails ruling on Zuma records ........................................................................... 30 State seems at a loss on crowding-in private sector ............................................. 33 Probe into dubious SA-Iran deals widens................................................................ 35 Shabangu taken off police project ............................................................................ 37 Funds abuse scandal rocks Parliament .................................................................... 37 Cosatus opposition stance divides alliance .......................................................... 38 Zille likely to remain DA leader despite rumblings ................................................ 40 The JSC must answer a charge of moral cowardice ............................................... 41 Its my time to eat ...................................................................................................... 43 Going for gold............................................................................................................. 45 Taking the long view .................................................................................................. 46 ANC may oppose ruling on Zuma review................................................................ 48 MPs call meeting on banks unsecured loans .......................................................... 49 No ray of sunshine on the secrecy legislation .......................................................... 50
22 March 2012 News Wrap-up
22 March 2012 The Times Page 4 AmukelaniChauke
We're doing well JZ:President Jacob Zuma says the government has made progress in improving human rights through service delivery and the creation of socio-economic opportunities.
But he conceded that, for many, the struggle continues because they are still faced with the "triple threat" of unemployment, poverty and inequality. Speaking at Walter Sisulu Square, in Kliptown, Soweto, to mark Human Rights Day yesterday, Zuma said the government had "done well in a short space of time" but there was room for improvement. "We're aware that, as more people gain access to these socio-economic rights, many more still live in hardship due to decades of neglect," he said. He said that since 1994 the national housing programme had delivered 2.8million houses, and that by December last year 87% of rural households had been provided with piped water and 75% with access to sanitation. "The constitution specifically mentions social security as a human right. The government provides social grants to about 15million people, mainly vulnerable groups such as children, persons above the age of 60 and people with disabilities," he said. Zuma said access to education was being expanded through no-fee schools, which had enabled 8million children to get free education. The proposed National Health Insurance scheme would improve healthcare, especially for the poor, and the New Growth Path would improve the economy and the standard of living of all South Africans through job creation . Residents protesting outside the hall called on Zuma to "put meat" on the government's plan, saying less talking and more action was needed. Unemployed DorahMokadi, who completed a diploma in local government and finance at the University of South Africa last year, called for job creation to be accelerated. Other residents, including BusisiweMzimela and JarminaRadebe, complained about their rights being abused after they were evicted from council flats in Kliptown and Protea Glen.
They said they boycotted rent payments after the City of Johannesburg failed to give them the title deeds they were promised four years ago. SA Human Rights Commission deputy chairman PregsGovender spoke about the numerous violations of human rights the commission was dealing with . Govender said the commission held a public hearing in Cape Town last week at which government officials said more than 16million people were living without sanitation, a basic right. COPE leader MosiouaLekota said politicians should educate people about the history related to Human Rights Day, and explain that the day did not belong only to the people of Sharpeville. "The rights of the people of South Africa were abused, not only in Sharpeville," he said.
21 March 2012 News24 Sapa
'Speak out when rights are violated'

Public Protector Thuli Madonsela has called on South Africans to speak out when their rights are being violated. "The public protector said South Africa is a constitutional democracy which gives citizens various channels through which they can engage with government," Madonsela's spokesperson, Kgalalelo Masibi, said in a statement issued on Wednesday. These channels included the Commission for the Promotion and Protection of Rights of Cultural Religious and Linguistic Communities, the Human Rights Commission, the Auditor-General, and her Office. Madonsela was speaking at a Human Rights Day commemoration in the Bohlokong township in the Free State. She urged the community to use these channels to demand answers and hold those entrusted with public power and public resources accountable, said Masibi. Madonsela explained that the Freedom Charter allowed people to empower themselves with information about their rights, responsibilities and knowledge of how government works. Madonsela asked that people focus on systems and not on personalities when working with her office or other Chapter 9 institutions. Their rights included the socio-economic rights such as rights to access to health care, education, decent housing and freedom to pursue economic activities.
Human Rights Day: Zuma to deliver keynote address

Johannesburg - President Jacob Zuma is due to speak at a Human Rights Day commemoration at the Walter Sisulu Hall, Kliptown, Soweto on Wednesday morning. Human Rights Day, previously known as Sharpeville Day, is celebrated in remembrance of the March 21 1960 Sharpeville massacre. The Pan Africanist Congress had called on black men to leave their pass books at home, go to the nearest police station and demand to be arrested for not carrying the "dompas". People gathered at police stations in informal settlements near Johannesburg where they were dispersed by police. However at the Sharpeville police station police opened fire on the advancing crowd killing 69 people and injuring 180 others who refused to carry the dompas identity document. This annual celebration served to remind South Africans about sacrifices made in attaining a democratic society based on human dignity, equality and freedom, the department of justice and constitutional development said in a statement. The theme of Human Rights Day 2012 would be "working together to promote unity in diversity and human dignity for all". Fifty-two years after the massacre Zuma would deliver a keynote address to reinforce government's commitment to protect and promote human rights, the department said.
22 March 2012 Business Day Page 3 Gareth Wilson
DA marches on Sadtu over teacher go-slows

Democratic Alliance leader Helen Zille has accused the South African Democratic Teachers Union of being more worried about the rights of teachers than those of pupils Shouting "hamba Sadtu, hamba", Democratic Alliance leader Helen Zille yesterday led 2000 parents and pupils in a protest march against the South African Democratic Teachers Union (Sadtu), which she accused of being more worried about the rights of teachers than those of pupils.
The Human Rights Day protest saw the group of singing and placard-carrying marchers gather in Sydenham and march to the unions offices in Commercial Road. Police and traffic officials cordoned off roads and kept an eye on the event. Ms Zille has accused Sadtu of denying pupils in the Eastern Cape, and the rest of SA, the basic right to education. "Sadtu and Cosatu (the Congress of South African Trade Unions) pretend to stand up for your rights, but they lie. "Today we are gathered here to focus on those teachers who do not go into the classrooms to teach," she told the chanting crowd outside Sadtu offices. The march came after a five-week go-slow at the beginning of school year led by teachers aligned to Sadtu. This followed the Department of Educations drive to redeploy teachers. The union was also angered by the axing of thousands of temporary teachers. In protest, teachers at numerous schools throughout Nelson Mandela Bay embarked on the go-slow that saw teaching taking place for only two days a week. Ms Zille said the purpose of the march was to "expose the hostage situation currently at play in many of SAs schools". "We came here to Port Elizabeth as we have identified the Eastern Cape as one of the worst performers in education in the country. It is time that parents take action. Stand up for your childrens right to an education," she said. In March last year the government placed the Eastern Cape education department under administration due to management failures on several fronts. "We need accountability in the education department both nationally and locally," said Ms Zille, who described the "core problem" as the unions being "used" as a launching pad for political careers rather than to resolve honest disputes of workers. A teacher at the march, who declined to be named for fear of being targeted, said: "We sit in class and do not have textbooks, making it basically impossible to teach. We need intervention. If this carries on, there is no future for the youth ." Sadtu provincial secretary Mncekeleli Ndongeni said he was shocked by the protest action and said the march should have been against the Department of Education for firing teachers. "They should not be fighting with us. We want to put teachers in classrooms. " 20 March 2012 Business Day Page 1 Mariam Isa
SA economy picking up speed, says Bank report

The Reserve Bank painted an upbeat picture of SAs economy yesterday, with figures showing spending by households and the government accelerated strongly in the fourth quarter of last year, with investment also picking up.
The economy gathered momentum in the fourth quarter, growing by 3,2% after expanding by 1,7% in the previous quarter, when there was a wave of industrial action. "While part of this improvement reflects a recovery from activity levels which had been dampened by industrial action and other short-term forces, part of it also seems to indicate a more firmly grounded and sustainable performance," the Banks chief economist Monde Mnyande said at a presentation of its March quarterly bulletin. He declined to speculate whether the trend would hold, but the Banks research head Rashad Cassim was more forthcoming: "I think that all the indications are you wont see a massive increase in economic growth, you will see slow growth continuing." Their positive views were in step with recent remarks by governor Gill Marcus that rising inflation may reflect emerging demand pressures. But while Ms Marcus warned that inflation was becoming more "generalised", Mr Mnyande indicated that he thought the "core" inflation rate which excludes food, petrol and electricity was still fairly benign. Core inflation was still well within the 3%-6% target range, and also marginally below its midpoint, he said. The Bank was "working hard" to update its inflation projections for next weeks monetary policy meeting, to take account of higher oil prices and lower electricity prices than expected, he added. Markets will closely scrutinise the rhetoric which will accompany the interest rate decision. No change is expected, but there may be clues whether the Bank will hike rates before the end of this year, as markets expect. During the fourth quarter of last year, spending by households and the government grew at the fastest pace in more than a year, according to the Banks bulletin. Growth in household spending quickened to 4,6% from 3,8% in the third quarter, while growth in government spending surged to 7,3% from 4,8% over that period. Gross fixed capital formation the main measure of investment jumped to 7,2% from 5,9% in the third. The numbers were seasonally adjusted and annualised. "This pattern of acceleration was observed across all three main institutional groupings, but with the most significant turnaround recorded by general government," the Bank said.
The bulletin showed that growth in household disposable income, which has been driving consumer spending, nudged up to 4,7% in the fourth quarter of last year from 3,9% in the third. Household finances were improving, with the ratio of debt to disposable income slipping to 74,6% from 75,6% in the third quarter of last year. The ratio of debt costs to disposable income also dipped, to 6,7% from 6,8% in the third quarter its lowest level in more than five years. Strong wage growth helped to support disposable income. The bulletin showed that the pace of increase in nominal remuneration in the non-farm sector accelerated to 8,6% in the third quarter of last year from 7,2% in the second. But pay increases in the public sector far surpassed those in the private sector, leaping by an average 13,7% from the third quarter of 2010, compared with a rise of 6,3% in the private sector. 22 March 2012 The Times Page 1 AmukelaniChaukeAndKhetiweChelemu
Razing the flag

President Jacob Zuma, regularly punted as the people's president, had to be protected from them yesterday as violent protests - including the burning of the South African flag - broke out in Sharpeville, in the Vaal Triangle.
Yesterday, Human Rights Day became a day of protest in some areas of the country, with residents complaining about lack of service delivery. Sharpeville - the historic township where at least 69 black South Africans were killed on March 21 1960, when police opened fire on protesters who had gathered to defy apartheid laws - was engulfed in violence again. Residents were angered when they learned that the official commemoration of the day had been moved to another historic site: Kliptown, in Soweto. The Freedom Charter, the foundation of South Africa's constitution, was launched in Kliptown in 1955. It was against the backdrop of angry young people burning the South African flag that the heavily guarded Zuma arrived in Soweto. The picture of the gregarious president in touch with his people was traded for a more distant, but safer one. "I came here to see Zuma but I will go home without seeing him at all," complained DorahMokadi, an unemployed graduate from Soweto.
Shortly after arriving at the venue yesterday morning, Zuma, flanked by his deputy, KgalemaMotlanthe, Justice Minister Jeff Radebe and Gauteng Premier NomvulaMokonyane, inspected the square's 10 pillars and the Monument to the Freedom Charter before taking his place in the air-conditioned hall. While Zuma read his speech in the hall, to which only accredited VIPs and the media were admitted, the crowd watched him on TV screens in a tent in a cordoned-off area outside. In his speech, Zuma highlighted the government's achievements since taking power in 1994. He said the government had expanded the delivery of social services. He acknowledged the "challenges" ahead but said there were plans to strengthen the economy and create jobs. "We have done well indeed in a short space of time. However, we are aware that, as more people gain access to these socio-economic rights, many more still live in hardship, due to decades of neglect," he said. TefoMorofe, a young entrepreneur from Sharpeville, held a placard that read "ANC, where is your conscience? - Sharpeville 21 March Massacre". He said that he travelled to Soweto from Sharpeville to voice his anger at the government's decision to move the event, which was held in Sharpeville last year, to Kliptown. "It is a tradition that, when you hold a ceremony of the ancestors, it should be held at home and not at a neighbour's yard. "It is a Sharpeville event, not Kliptown. Kliptown is historic because the Freedom Charter was signed here, not because there was a massacre. "It is now called National Human Rights Day, which we respect, but it has significance because of the Sharpeville massacre. Like June 16, we cannot want it to be moved to other areas because it happened in Soweto," he said. Norah Mkhize, from Zola, Soweto, said she was "angry" that Zuma did not interact with the people because she was hoping to tell him that she is yet to find closure after her son, aged 19 at the time, was killed by security police in 1986 while protesting against paying rent for a municipal flat in White City. Several citizens from in and around Johannesburg held placards decrying what they viewed as human rights violations, from poor service delivery to lack of access to housing. Mokonyane had been scheduled to travel to Sharpeville earlier in the day but her office said the visit had been cancelled because of security concerns. In Sharpeville, there was no commemoration of the 69 lives lost. Instead, the township reverberated with the residents' anger.
There was a heavy police presence along Seeiso Street, where shops had earlier been looted, and which had been barricaded with litter, bricks and tree stumps. An angry mob marched along the street, singing struggle songs. In the community hall, PAC leaders made no attempt to soften their contempt for the ANC's decision. PAC national executive committee member ModiniMaivha said that, not only had the ANC shown disrespect for the PAC, it had displayed naked arrogance and undermined PAC leaders who had fought for freedom. "Our dreams for freedom have turned sour. What we are witnessing here is the reversal of freedom to suffering under this so-called people's government of today," Maivha said. He said he was surprised that there was no monument in the country to honour former PAC leader Robert Sobukwe. "But that issue will no longer be negotiable. We are going to erect one using taxpayers' money," he said. Azapo's Gauteng chairman, MankotoLesufi, said the ANC had earned praise for delivering beyond expectations - for doing nothing. "The ANC is forever milking the nation but today they want to jump around and claim legitimacy of what was fought for in 1960," he said. "The people of Sharpeville died for our rights and freedom but the people of Soweto are benefitting from what our leaders died for," said Dutch Porogo. "How [would] they feel if we could hijack their June 16 celebrations and have them here?" 20 March 2012 Business Day Page 1 Carol Paton
IDC plan to boost economy gets off to slow start

Only 15% of the funds allocated to boost the economy and jobs by supplying cheap finance to the private sector have been taken up so far THE governments bid to use the Industrial Development Corporation (IDC) to boost the economy and jobs by supplying cheap finance to the private sector has gotten off to a slow start, with only 15% of the allocated funds taken up so far.
In February last year, President Jacob Zuma announced in his state of the nation speech that the IDC would make R10bn in "concessional financing" 3% below the prime interest rate available to companies as part of an effort to boost jobs. As at the end of December, only R1,5bn of this had been loaned. However, IDC CE Geoffrey Qhena said that, in the context of global economic uncertainty following the 2008 recession, the scheme was "on track" and there had been "a fairly good take-up". "It has been a bit tricky coming out of the recession. So, as much as this is a measure that should help companies that might want to export, for example, (they) might not be ready to do so. People are not sure where the economy is going, not just in SA but globally," Mr Qhena said. Conditions for loans under what is known as the Gro-E Scheme, include that the enterprise must be in one of the priority sectors the IDC supports and create at least one job for every R500000 invested. But while the IDC is not unhappy with the take-up, the pace may indicate that concessional financing is not the silver bullet government thought it would be. Economic Development Minister Ebrahim Patels New Growth Path plan, which aims to promote greater industrialisation, hopes to use concessional financing through the IDC to a far greater extent. Recently published African National Congress (ANC) discussion documents also advocate the channelling of savings managed by the Public Investment Corporation, which includes the R900bn Government Employees Pension Fund, and other union retirement funds into the IDC for concessional funding. Nedbank chief economist Dennis Dykes said the assumption, particularly on the left of the political spectrum, "that financing is the problem" for entrepreneurs was not necessarily true. "It is always the case that a good project will get financed," Mr Dykes said. "But at present there isnt a huge appetite to borrow. This is more symptomatic of the broader economy, where there is a lot of uncertainty both globally and domestically, plus the infrastructure constraints that SA faces." Investec group economist Annabel Bishop said that while the take-up did seem slow for finance that was "very cheap", there could be a number of factors behind it. These included that regulations and conditions attached to IDC finance were often quite onerous; and that there might be a "mismatch" between supply and demand, as those who really needed concessional finance, might not know about the IDC. There was also the fact that there is a large amount of excess capacity in the economy as companies wait for economic conditions to improve. Corporate SA was cash flush, with gross savings of about R380bn, according to figures in the Reserve Banks quarterly review, she said. Other IDC concessional funding schemes have also been slow to get off the ground. In mid-2009, in response to the global economic crisis, the IDC put aside a R6,1bn fund to assist "distressed companies." By the end of the 2011 -12 financial year only R4,6bn of the funds had been allocated.
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While the IDC used its own resources to fund both the Gro-E and distressed company schemes, it recently experimented with funds borrowed from government social security funds, which it has been able to lend out at low interest rates. Since 2009, the IDC has taken up two R2bn five-year bond issues from the Unemployment Insurance Fund at 5% interest. The first R2bn was used by last September, after which a second one was drawn down. The IDC loaned the money at 6%, "barely covering costs", Mr Qhena said. It is clear from ANC policy documents that the party would like to see greater use made of this type of funding. The government would also like the IDC to expand its borrowing greatly: from R8bn over the past year to R30bn over the next two years. 20 March 2012 Business Day Page 1 Edward West
SA microbrewery tastes success in Britain

Zulu Blonde, a beer first brewed in a garden shed in Eshowe, KwaZulu-Natal is selling "like a rocket" since it went on tap in over 900 pubs across the UK last Wednesday.
It is extraordinary that a beer made in a micro brewery in a small South African town is finding favour in the fiercely competitive international beer market dominated by big multi-national brewing companies. "They were sold out on Zulu Blonde in the top two pubs out of the 900 in the group, in the first three hours," says Richard Chennells, brewer and owner of the George Hotel in Eshowe. The 33-year-old returned from the UK last week, having completed an order to brew Zulu Blonde for the JD Wetherspoon chain of pubs. The beer will be made at the Caledonian brewery in Edinburgh, Scotland. The story of Zulu Blonde started eight years ago, when Mr Chennells thought selling beer from a micro-brewery would be good promotion for the hotel (whose bar he says is situated above SAs first stock exchange, where gold and cattle were traded). The initial idea was to market Zulu Blonde from a tap sticking out of the rear light of a Land Rover at golf clubs and other venues in Johannesburg, to lure golfers for "beer and golf" weekends in Eshowe. This was successful in attracting "over 1000 guys to play in Eshowe over the last four years" and it continues today, he says. Zulu Blonde was initially brewed through "trial and error," says Mr Chennells, who studied brewing in the US after a stint working as a merchant banker.
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For a while "things started to fizzle" because the next step would normally have been to inject a large amount of capital into the venture and build a large-scale commercial brewery, which Mr Chennells could not do. Mr Chennells was then invited to participate in the Real Ale Festival in the UK the biggest festival of its kind in that country where Zulu Blonde won the award as the top beer of the festival. During the 2010 Soccer World Cup, JD Wetherspoon approached him to brew beer for the chain, to provide a "South African flavour" at their pubs during the tournament. Ironically, while Zulu Blonde was doing well in the UK through the soccer event, the hotel in Eshowe struggled because the usual visitors stayed away, and soccer tourists followed the matches in the cities, without driving the 150km northeast of Durban, where Eshowe is located. Eshowe, once the capital of Zululand, is now a small trading town surrounded by cane, timber and citrus farms, but attracts tourists interested in British and Zulu history, along with birders and a growing number of people seeking butterflies. Eshowe is home to a 350ha indigenous forest. The exposure from the World Cup saw many substantial new orders being received from places as far afield as Europe, North Africa, Australia and Canada. At one stage thereafter, Mr Chennells approached SABMiller CEO Graham Mackay for advice on the next step for Zulu Blonde Mr Mackay also grew up in Eshowe. "When he (Mr Mackay) said that Zulu Blonde would only ever be a flavour of the week, I decided now the game is really on," he says. Mr Chennells says discussions are under way in Europe and the US to find a way to tap into the over 50000hl of orders of Zulu Blonde that Mr Chennells estimates are still waiting to be fulfilled. While the beer can be had at the George Hotel, it is not available in the rest of SA. Mr Chennells says it remains a long-term dream of his to be able to bottle the beer. "I have been plugging away at this for eight years now. "If you think you are going to own a microbrewery to make a lot of money from beer, you need to stop right there. "If you are passionate about your beer, and are prepared to put in the long hours, theres no doubt you will succeed," he says. 22 March 2012 Business Day Page 1 Amanda Visser
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Cricket aims to win back former glory

Cricket SA acting president Willie Basson admits that the sports image has been damaged by the bonus scandal Cricket SA acting president Willie Basson made it clear yesterday his priority was to restore the sports image as the "most professionally run sports organisation" in the country, in the wake of the bonus scandal.
After two days in office, Dr Basson was at pains to stress that the sports reputation had been damaged by the scandal, which saw its administrators battling to sign up sponsors. A report compiled by retired judge Chris Nicholson at the behest of Sports Minister FikileMbalula recommended that CE Gerald Majola be suspended, with pay, for six months pending a disciplinary inquiry and that the affair be handed over to the National Prosecuting Authority. Dr Basson, an experienced, multiskilled administrator who has been president of the Northerns Cricket Union and is chairman of Cricket SAs transformation committee, replaces AK Khan, who resigned after the release of the judges findings. Dr Basson reiterated that he would be directed by the boards decision taken at a meeting last weekend. The board accepted the report, but the appropriate action to be taken would be discussed at a meeting next Thursday. He said he was under no illusions that cricket in SA was beleaguered and that its image and reputation had been dented over an extended period. Dr Basson assured South Africans yesterday that there was an inherent robustness in the system and that Cricket SA had quality people who had shown over the years that they had the capacity do deal with problems. "The importance of the Nicholson report and the watershed impact it is going to have not only on cricket but on all sport federations cannot be ignored." Dr Basson said the complex process of damage control of the bodys reputation and image would receive focused attention. "The scientist in me says I must do things systematically and get the facts on the table and then make recommendations to the board." He was concerned about the large gap between the level of professionalism, dedication and motivation in "on-the-field" activities as opposed to "off-the-field" activities. This "obvious weakness" had to be addressed aggressively. He said the behaviour of sports administrators was a personal bugbear of his. "The difference in the level of the professionals on and off the field is a burning issue. In my 40 years of involvement with sport, Ive never come to terms with that.
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"Our administrators, in general terms, in South African sport bumble along and hardly ever suffer the consequences of their actions other than to come up for re-election every two years or so. "We have to raise the bar in the boardroom to the same level of example set by the players." While he would not be drawn on further legal action against Mr Majola, Dr Basson said he had already discussed it with Jacques Faul, who stepped in as acting CE after Cricket SA suspended Mr Majola pending disciplinary action for his role in the scandal. "Jacques and myself will address the board next Thursday on (Mr Majola) ," he said. "We have our own ideas on how to move forward, with respect to that point. "We will put it to the board and we will discuss it and debate it and then actions will follow." An apology to former Cricket SA president MtutuzeliNyoka and to the public might also be discussed. Dr Basson said the status of transformation in the major codes would be a high priority. The transformation committee would today consider a model for immediate implementation that had been approved in principle by the Cricket SA board. Nobody in SA could argue against the fact that all the structures had to represent the demographics of the country, Dr Basson said. This was already happening automatically, with the number of white players between 13 and 18 years decreasing. 22 March 2012 Business Day Page 1 Carol Paton
IDC weighs Mittal rival to cut SAs steel prices

Mini-mills in Gauteng and the Eastern Cape and scrap plant in Mpumalanga also part of Industrial Development Corporations plans
The Industrial Development Corporation (IDC) is "very seriously" pursuing the idea of attracting a competitor to ArcelorMittal SA into the local steel market. The government has been engaged in a running battle with ArcelorMittal SA over its practice of charging import parity prices for locally manufactured steel. The African National Congress (ANC), in an early draft of its discussion paper on state-owned enterprises, has also called for a state-owned steel company.
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Shakeel Meer, IDC divisional executive for corporate strategy, on Tuesday told Parliaments portfolio committee on economic development that the corporation was pursuing a number of projects in the steel sector with the goal of reducing input prices for the downstream steel industry. These included the establishment of a steel mill, possibly in Limpopo; "mini-mills" in Gauteng and the Eastern Cape; and a facility for processing scrap metal in Mpumalanga. Mr Meer said the IDC had set aside substantial development funds for the projects in the coming year. A feasibility study for a new steel mill was being planned, although it would be years before such a project could be realised. "We are taking it very seriously. We are saying, lets identify opportunities. If we identify a project that will work, we will look around and see if we can find partners," he said. Mr Meer said the IDC had already engaged with several steel makers. The IDC would not want to be "in the business of running a steel mill" but would put significant equity into such a project. The IDCs interest in acquiring assets or catalysing investments in the steel industry stems from SAs Industrial Policy Action Plan and the New Growth Path, both of which place high priority on the lowering of input costs for the downstream steel industry. The IDC is looking into fostering the growth of "mini-mills", which use recycled metal to make steel as well as "scrap substitute" mills, which would use scrap metal as a substitute for iron ore. Mini-mills have had good success in parts of the world such as the US. Most of SAs scrap metal is exported to India and China. Recently, there have been suggestions most notably in the ANCs discussion paper on state intervention that a duty should be levied on scrap metal exports. The IDC, which hopes to expand its lending over the next five years to at least R88bn from a baseline of R8bn a year in 2010, was aiming to be "more catalytic" in its investments to respond to the governments more active industrial policy thrust, CE Geoffrey Qhena told the committee. "We understand that we are operating in times where our level of activity needs to be higher. More and more we are being catalytic and starting projects rather than waiting for people to come to us for financing," he said. The IDC has been part of what could be interpreted as an embryonic initiative to establish a state-owned pharmaceutical company, another sector identified by the ANC as ideal for state involvement. Last month it announced it would invest R1 bn in a joint venture between state-owned Pelchem and SwitzerlandsLonza in an initiative to make active ingredients in antiretroviral drugs.
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Other sectors in which it hopes to play a catalytic role are agroprocessing; industrial infrastructure, supporting local companies wanting to manufacture infrastructure inputs; the bus, truck and taxi manufacturing industry; renewable energy; and forestry. It would also aim to "stabilise the local textiles and clothing industry to stem further job losses", executives told Parliament. 22 March 2012 The Times Page 4 MhlabaMemela
Manuel: Where are today's heroes?

National Planning Minister Trevor Manuel says there is still a long way to go in eradicating inequality.
"We are still divided around the racial line. Human Rights Day celebrations should not look back [at] the past but focus on the challenges of today," he said yesterday. Manuel was speaking at the centenary exhibition in honour of Natal Indian Congress leader Monty Naicker, in Durban. Manuel stressed the importance of non-racialism. He asked whether today's generation would be able to emulate the sacrifices made by struggle activists such as Naicker, Moses Mabhida, Chief Albert Luthuli and former president Nelson Mandela in fighting injustice. "Looking at the exhibition of Monty Naicker, I was impressed by the way our history is being embedded [in] our youth. The history should be placed in the hands of youth to remember the contribution made before," he said. As the ANC prepares for its policy conference in June, Manuel said: "We must lay a foundation that the fruit of democracy is not for the few. "We shall not rest until we overcome the triple challenges facing our country, but there should be an active citizenship." One of the pupils at the exhibition, NontobekoDladla, said: "There are youngsters who feel that they vote for a government that does not help them with anything. "It is important for the government to address the needs of the people." 22 March 2012 Financial Mail Page 46 Claire Bisseker
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Out on the tide: A ceaseless brain drain is stripping the country of skills; its time to tap into these expatriate communities
Over three-quarters of a million South Africans live abroad. They are well resourced and highly skilled and a fair number are still interested in contributing to SAs economic development, but government is making little attempt to harness this resource.
The emigration of highly skilled South Africans is of increasing concern, as several studies show that the lack of a skilled workforce is currently one of the greatest constraints to local business expansion. Reliable figures on the extent of skilled SA emigration have, however, been unavailable since Stats SA stopped collecting emigration statistics in 2004. At the time, academic research showed that the number of skilled emigrants was probably about three times higher than the official figures suggested. Trade & Industrial Policy Strategies (Tips) researchers Thomas Hppli and David Kaplan, using official immigration and census data from the UK, the US, Australia, New Zealand and Canada, calculate that 568395 South Africans were residents in these countries in 2010. Given that these countries are thought to absorb about 75% of all SA emigrants, the researchers estimate that 758000 South Africans were living abroad as of 2010. This represents a huge loss of expertise to the SA economy and to individual companies, especially as the bulk of emigrants are young and well educated. According to the Organisation for Economic Co-operation & Development (OECD), 47,4% of the SA expatriate population in OECD countries in 2008 had tertiary education. Data from the US finds that 82% of SA emigrants to the US are white, 65% are English-speaking and 56% have a bachelors degree or higher qualification. Their median age is 36. Meanwhile in SA the supply of highly skilled people especially those with financial management, accounting, auditing and engineering skills is failing to keep pace with demand. In a new Tips policy brief, Hppli notes that when highly skilled individuals emigrate, an economy loses out on many fronts. Not only is their positive impact on the performance of enterprises and institutions missed but also their contribution, especially in the case of teachers and health workers, to the provision of key public services. Often overlooked is their contribution to a countrys competitiveness through innovations, to the public purse through taxes, and to public debate. In addition, he argues that as the scarcity premium attached to highly skilled people grows it exerts a negative effect on the wages of less qualified workers, leading to an increase in wage and income inequality.
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On the other hand, the researchers conclude that while the brain drain is undoubtedly negative for the SA economy, there are advantages to having highly skilled expatriate communities in numerous countries. SAs diaspora is highly skilled and very well-resourced. Government should be looking at ways to tap into this resource for business, academic and artistic endeavours and training, says Kaplan. This requires ongoing commitment the returns can be great, but they are not immediate. For instance, emigrants can facilitate the transfer of technologies and knowledge back to their home countries; academics can improve collaboration between research institutions in their new and home countries; and business people are in a prime position to establish new business and trade networks, or to grow existing ones. In general, the presence of expatriates leads to increased opportunities for trade and exports of local products, says Hppli, citing rooibos tea and wine as just two examples. One way to maximise these potential benefits is by creating a network where expatriates and people in the home country can interact to establish relationships in an easy and cost-efficient way, says Hppli. It should, for example, allow companies or research institutions to advertise projects, planned co-operations or even jobs on this platform. However, establishing a network and mobilising expatriates is not easy, nor is its upkeep. In the late 1990s SA had a functioning network the SA Network of Skills Abroad (Sansa) a three-year project established by the University of Cape Town Science & Technology Policy Research Centre with donor funding. Kaplan, who was involved in establishing Sansa in 1998, says 35000 South Africans living abroad were contacted and of these, 2500 indicated they were willing to make a contribution to SAs development. The then department of arts, culture, science & technology inherited the project but devoted very little effort to building network connections and providing opportunities for linkages. Without substantive and ongoing support, Sansa faded and government then withdrew its support altogether, says Kaplan. The researchers find the pace of emigration is not picking up. Since 2001, just under 20000 South Africans have emigrated on average each year to the five principal countries mentioned above. Brigitte Britten-Kelly, managing executive of the Homecoming Revolution, an NGO that assists South Africans to return home, says she receives about 100 inquiries a month from South Africans abroad. We dont have concrete data on South Africans returning but over the past 18 months weve certainly seen a shift due to the global economic crisis and tighter employment and visa conditions, especially in the US and the UK, she says, Car
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import agencies we work with report about a 30% increase in people wanting to bring their cars back over 2010. She adds that there is much more optimism about growth opportunities in Africa, and about SA as the gateway to those opportunities, compared to 2003 when the NGO was founded and was a lone voice campaigning for the return of emigrants. 22 March 2012 Business Day Page 1 Linda Ensor
State makes plans for nuclear legislation

An external assessment of South Africas nuclear infrastructure plans and its capacity to build new plants is expected to be undertaken this year by the International Atomic Energy Agency The Department of Energy will this year lay the legislative foundations for the planned construction of nuclear power stations that are expected to cost more than R300bn.
Department officials told Parliaments energy portfolio committee this week that an external assessment by the International Atomic Energy Agency (IAEA), of SAs nuclear infrastructure plans and its capacity to build new plants, would be undertaken this year. Approval would also be sought from the IAEA for the specifications of nuclear procurement once these had been decided upon by the nuclear energy executive co-ordination committee and by the Cabinet. Deputy director-general in the department OmpiAphane said the government planned to follow the milestones set down by the IAEA for the construction of nuclear plants, the cost of which is as yet unknown. In terms of the 20-year energy plan adopted by the government, 23% of the countrys future energy will come from nuclear power. Mr Aphane said feasibility studies for the infrastructure for the beneficiation of uranium for the nuclear fuel cycle would be conducted with the aim to localise as much of this activity as possible. Pre-feasibility studies have already been completed. An international review of this infrastructure for uranium beneficiation is also planned. Mr Aphane said in terms of the governments proposals, the operators in the nuclear industry would ultimately have to pay a levy to the proposed National Radio-Active Waste Disposal Institute. To facilitate this, a money bill would be drafted by the Treasury and a transitional structure for the institute implemented. The institute would construct new facilities to deal with high-grade nuclear waste, as the current facility at Vaalputs is not equipped for this.
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In terms of the departments legislative plans, the Nuclear Regulator Act will be amended to incorporate the nuclear building programme. Another key initiative, Mr Aphane told MPs, was to "elevate community awareness" about the benefits of nuclear energy. He said there was a "grave need" to enhance awareness so that the debate around its pros and cons could be "better informed". Most of the debate in the past had concentrated on the risks. The department, through its community awareness campaign, planned to emphasise other beneficial applications such as in health. The government plans to follow the milestones set down by the IAEA for the construction of nuclear plants, the cost of which is as yet unknown
20 March 2012 March 19 2012 Sunday Times Page 1 SibongakonkeShoba
Motlanthe wants top job

Deputy President KgalemaMotlanthe will attempt to unseat Jacob Zuma as president of the ANC at the party's national conference in December. This is according to senior Motlanthe aides and party insiders, who say the deputy president has decided that he will stand for office if nominated by party branches. "He will accept nomination even if he is nominated by only two [of the nine] provinces," said a Motlanthe aide, who asked not to be named because the ANC has not officially opened the leadership race.
The party's national executive committee decided last year that nominations for leadership posts ahead of the national conference in Mangaung, Free State, would be opened to branches only in October. It is widely expected that Zuma will make himself available for a second term as party president, but until now it has been unclear whether Motlanthe was ready to challenge him, despite calls by the ANC Youth League to do so. Those agitating for change in December want Motlanthe to take over, and are touting the Minister of Home Affairs, NkosazanaDlamini-Zuma, and the Minister of Defence, LindiweSisulu, as possible deputies.
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Zuma's campaigners have said they will support Motlanthe's retention as deputy president on condition that he does not stand against the president. Zuma is regarded as having the upper hand, as he enjoys the backing of the party's strongest province, KwaZulu-Natal, his home province. He also commands considerable support in the Eastern Cape, which is the ANC's second-most influential province, although Zuma's support has declined at two recent conferences in that province. Likely to throw their weight behind Motlanthe are party structures in Gauteng, Limpopo, North West and the Northern Cape. Although the Free State and Mpumalanga have always been regarded as Zuma strongholds, his support hinges on the re-election next month of Ace Magashule and David Mabuza as chairmen of the two provinces, respectively. Both provincial leaders face challenges by groupings aligned to a national campaign to oust Zuma. ANC insiders in the past have said Motlanthe would accept the nomination only if he was guaranteed that Zuma would not run. This was due to fears of another succession race so soon after the 2007 presidential race that nearly split the ANC. Supporters of Zuma's second-term bid have also argued in the past that Motlanthe would not challenge his boss, as he knew that if he lost, Zuma would retaliate by sacking him from the government. But a senior aide said Motlanthe - who served as South Africa's president for eight months following president Thabo Mbeki's forced resignation in 2008 - was not perturbed by the possible consequences of standing against Zuma. "Remember, he is a retired president. He is a pensioner. So he has nothing to lose. Even now he doesn't get a salary from his position as deputy president. He accepted the position because the president asked him to. "It can't be said that if he loses, will [Zuma] continue to work with him? He is not worried about that," said a senior aide. Contacted for comment, Motlanthe's spokesman, Thabo Masebe, said the deputy president was not willing to entertain any talk of succession. "KgalemaMotlanthe is the deputy president of the ANC. He is also deputy president of the country, having been appointed by the president to serve in that position. He is more concerned with exercising his duties in these positions. His future role in the leadership structures of the ANC will be determined by the national conference," said Masebe.
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But ANC insiders close to Motlanthe insisted he would accept nomination. They said it was not his style to openly campaign for leadership positions. "Motlanthe is of the view that structures of the ANC are free to think and say who they want. Leaders should not involve themselves in that process. If the structures want to nominate him, they will do so and he will accept," said a close ally. He added: "He says you can't stand up as a leader and say, 'Here I am, vote for me.' His view is that when you are elected in that fashion, you'll be indebted to your campaign managers. Leaders must stay clear of lobby groups." Uncertainty over whether Motlanthe would be willing to stand had left opponents of Zuma's second-term bid frustrated, as they did not know if their preferred candidate would avail himself for election. But Motlanthe's aide said party structures did not need his permission to lobby for him. "His view is that people don't need his permission to nominate him, so he won't get involved in campaigning. The minute he joins a lobby group, that means he can't lead the people who are not part of his lobby group." The y outh league has been most vocal in campaigning against Zuma, but Motlanthe backers believe the imminent removal of its president, Julius Malema, will not weaken their campaign. In fact, they argue, with Malema out of the picture, those who backed Zuma merely because they did not like Malema may be willing to look at other candidates on merit. Business Day Page 3 Sam Mkokeli
Eastern Cape could turn out to be ANC kingmaker

The Eastern Cape could emerge as a crucial province in the African National Congress (ANC ) succession race.
Local leaders say lobbyists have visited the province in recent weeks as the partys below-the-radar succession debate gathers steam. Despite Luthuli House officials trying to implement a decision of the national executive committee to put a lid on the succession debate, lower party structures have immersed themselves in the issue and are weighing the chances of President Jacob Zuma or his deputy, Kgalema Motlanthe . Those linked with a plan to replace Mr Zuma as ANC head when elections are held in December say they have the backing of most regions in the Eastern Cape.
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They are claiming victory in the Buffalo City region, which held a leadership election two weeks ago. An ANC Youth League leader says the Buffalo City leaders elected two weeks ago were supportive of the plans to replace Mr Zuma. The league leader says campaigners were hoping to persuade the Nelson Mandela region in Port Elizabeth to side with them in the build-up to Mangaung. The region is preparing for an election in the next few months. Mr Zuma made an official visit to Port Elizabeth last week, where he also held a private meeting with ANC leaders. Mr Motlanthe has not officially announced his availability to stand for the ANC presidency but he is widely expected to accept nomination. His name was suggested by the youth league, which has been lobbying for him to replace Mr Zuma. A member of the Eastern Cape legislature said yesterday that Mr Motlanthe appealed to many leaders in the province as he appeared more presidential than Mr Zuma, who is prone to making gaffes. "Except for the oil scandal that came out last week, he is a dignified leader," said the official, referring to allegations that Mr Motlanthes partner was allegedly involved in a bribery scandal. Mr Motlanthe has asked Public Protector Thuli Madonsela to investigate allegations that his partner, Gugu Mtshali, was implicated in soliciting a R104m bribe to obtain government support for a local company seeking to clinch a R2bn sanctions-busting deal with Iran. The league is working to change the face of the partys leaders by introducing younger leaders in the top structures. It is working to install its former president, Fikile Mbalula, to the position of secretary-general, presently occupied by Gwede Mantashe. League leaders have been spending time in the Eastern Cape, where they have been seeking to persuade regional leaders to back the plan to change the ANCs top leadership. The Eastern Cape suffered when Thabo Mbeki lost his bid for a third term as head of the ANC, in 2007. Some provincial leaders feel they lost their influence along with Mr Mbekis setback. As a result, there were fewer Eastern Cape politicians on the national executive elected in Polokwane and also in Mr Zumas Cabinet. There are three ministers from the Eastern Cape in the Cabinet but some local leaders feel they do not occupy prominent portfolios. Some Eastern Cape leaders feel KwaZulu-Natal benefited disproportionately from Mr Zumas presidency but others are happy that Mr Mantashe comes from their province, which makes them feel they have representation in the top structure. KwaZulu-Natal is the biggest ANC province but the Eastern Cape comes a close second. Under Mr Mbekis leadership, leaders from the Eastern Cape, including Saki Macozoma and Smuts Ngonyama, were very prominent. An Eastern Cape leader, speaking on condition of anonymity, said the province lost its influence in the ANC after the Polokwane conference. This is something it would want to regain in Mangaung, by pushing more of its residents into frontline positions.
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Other provinces where Mr Motlanthe has popular appeal are Limpopo, the Northern Cape and Gauteng. The North West and the Western Cape are divided but there is a strong push for change. In both provinces, former youth league leaders are provincial ANC secretaries and they have some following on the ground in the campaign to replace Mr Zuma, insiders say. A leader close to Mr Motlanthe says he has not asked anyone to campaign on his behalf. He would not actively campaign but would avail himself if asked. But his accepting nomination would create more tension in the government and the ANC, as appointed leaders would take sides in what could be a rerun of the divisive 2007 Polokwane conference. March 19 2012 Sunday Times Page 5 Bobby Jordan
R350-m security deal adds to DA tenderitis

A security tender worth R350-million is under scrutiny in the DA-led city of Cape Town. The tender involves 22 contracts for guarding more than 1000 sites, including government buildings, clinics, libraries and community halls.
It was cancelled this year after appeals by unsuccessful bidders to the city. A letter from one alleges the contracts were dished out in a fraudulent and corrupt manner. The city did not comment on specific claims, but deputy mayor Ian Neilson confirmed he was aware of difficulties with the tender, which was first issued in 2000 and had twice been renewed amid much bickering among competing bidders. Details have emerged days after the public protector - already investigating a multimillion-rand communications contract awarded to TBWA Hunt Lascaris by the DA-led province - announced a probe into the sale of land owned by Naspers to the city for R106-million. The city council's municipal public accounts committee has also launched an internal probe into 48 cases of irregular expenditure amounting to R55-million identified in a recent report by the auditor-general. The security services tender went out in March 2011 and was awarded in October to 22 companies. The Sunday Times has established that: The city issued four separate lists of successful bidders before cancelling the tender; Two of the successful companies featured members of the same family; and
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At least one successful bidder was not registered with the private security industry regulator. A letter to Cape Town mayor, Patricia de Lille, by unsuccessful bidder Mgebe Security Services alleges that one successful bidder had used a church building as its company address - and says that only four of the 22 successful bidders are black. Security company owners who asked not to be identified this week claimed the city was covering up irregularities. One has taken legal action against the city, and another has approached the National Prosecuting Authority. In his letter, Mgebe MD and co-owner SithembisoMtengwane told De Lille he was "horrified" by what he had uncovered. "The City of Cape Town has always prided itself on clean governance, and yet the officials in both supply chain and those in charge of public safety are acting as if the city is a private company." Neilson dismissed calls for an independent probe, saying many of the council's tender woes stemmed from new legal requirements related to procurement. He said Cape Town handled about 800 purchase orders a day and 500 tenders a year. Irregular expenditure was less of a problem in Cape Town, he said, than in other major municipalities. Commenting on the tenders listed in the auditor-general's report, he said: "There is a legal requirement that came in just before the beginning of this financial year that anybody who works for an organ of state may not get a tender with the city or municipality. "In these [irregular] cases, these are people who managed to win tenders ... who should not have got them. For some or other reason, these tenders got through the system." These included a R37-million city tender for the provision of chemicals, awarded to Kemanzi, whose directors include the wife of a traffic inspector. The company could not be reached for comment. Neilson said he was awaiting feedback on the reasons for the cancellation of the security tender. "The key issue is to understand that we have to do it right. We can't sit with a half-baked situation. "In the past, we have had to deal with [fraud allegation] issues and found anomalies in what [services] have been provided." He said the council had to secure its facilities owing to rampant crime. "It is an unfortunate situation that we are having to spend a lot of money and effort in guarding council facilities." The ANC's chief whip in the council, XolaniSotashe, called for an independent probe.
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"There must be an independent investigation into all the companies who have benefited from corruption and a look to see if there are links with political principles," he said. 22 March 2012 The Times Page 2 NashiraDavids
Blood-red rage in Hangberg

''Today I'm going to kill,'' a boy, not much older than 10, screamed - his eyes wild and knuckles white as he clutched a rock. The boy joined a group of angry men who had barricaded the roads leading into Hangberg, Cape Town.
Yesterday, Human Rights Day, residents of the small fishing neighbourhood claimed that the police had kicked down doors in search of abalone and poachers. Shots were fired and officers were pelted with stones. Youngsters took to the streets and barricaded them with rocks. Plastic bins were filled with petrol and set alight. ''Close the streets!'' Regan James commanded. Police were not welcome and neither were strangers. A man in a red Toyota Conquest dared to ignore the orders and stones rained down on his vehicle. Paula Masias stood at her front door with a strong cup of coffee, trying to calm down. In the morning, officers, ''with very big guns'' appeared on her doorstep. Masias claimed she opened the door before they could break it down. ''I said: 'Please, I have children here'. The police said they were not going to hurt the children they just wanted to know where the pink house was but I didn't know,'' said the mother of four. Officers ran to her 25-year-old son's shack and kicked down his door. ''My son's girlfriend is pregnant; she started bleeding. The police took nothing, they just scratched in his bag and smacked him in the neck.'' James said unemployment was crippling the community. ''What do you think youngsters are going to do if they can't live off the sea? ''If they don't poach, they are going to break into the rich people's homes,'' said James.
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Police spokesman Warrant Officer November Filander said officers were following up information about abalone poaching when chaos erupted. He said they did not find abalone and could not continue with their investigation because of ''unrest in the community''.
Lindiwe Sisulu: Not part of faction

Johannesburg - ANC NEC member Lindiwe Sisulu has distanced herself from reports that she was vying for a leadership position or was lobbied by a faction opposed to President Jacob Zuma. "Comrade Lindiwe Sisulu, distances herself from ongoing media reports about her alleged involvement in factions [vying for] for the leadership of the ANC, as reported by various media," said ANC spokesperson Jackson Mthembu on Tuesday. "Cde Sisulu is a loyal member of the ANC. She is well-versed with the ANC constitution, its provisions and directives, including procedure on the election of ANC leadership." Recent reports have linked Sisulu to an anti-Zuma faction which intends including her on a rival slate in the ANC top six. The lobby group - reportedly comprising ANC provincial leaders - wants Sisulu for the position of deputy president, Planning Commission Minister Trevor Manuel for the position of treasurer general and Gauteng chairperson Paul Mashatile as ANC chairperson. The report by the Mail & Guardian states that there was no indication that any of the three have agreed to accept nomination, or that they are affiliated to the group in any way. The same group was attempting to mobilise ANC branches behind closed doors to replace Zuma with his deputy Kgalema Motlanthe and party secretary general Gwede Mantashe with Sports Minister Fikile Mbalula, according to the newspaper. Factually incorrect The Sunday Times reported at the weekend that Sisulu was being touted together with Home Affairs Minister Nkosazana Dlamini-Zuma as possible deputies, by those agitating for change at the December elective conference in Bloemfontein. Mthembu said such media reports were "factually incorrect and devoid of the truth".
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"They smack to tarnish the image of both the ANC and that of Cde Sisulu." Mthembu said Sisulu had not been approached or lobbied for any ANC position by any structure or branch of the ANC. "Secondly, as a disciplined member of the ANC, she had no intention to entertain or encourage practices that are foreign to the ANC, its principles and traditions, such as the promotion of factionalism and activities that seem to undermine the proper function of the ANC," he said. "It would seem that nothing excites some sections of the media more than rumours of simmering conflict and factional activities within the ANC." Mthembu accused the media of inventing rumours. "Where there is no conflict in the ANC, some have taken upon themselves to invent rumour about conflicts in the ANC. Their attempts will remain in vain," he said. Weekend reports said Motlanthe, apparently initially reluctant to challenge Zuma, was now prepared to contest Zuma for the top ANC post. Motlanthe has indicated he would not entertain any talk of succession. "Kgalema Motlanthe is the deputy president of the ANC. He is also deputy president of the country, having been appointed by the president to serve in that position," his spokesperson Thabo Masebe was quoted by Sunday Times. "He is more concerned with exercising his duties in these positions. His future role in the leadership structures of the ANC will be determined by the national conference." 20 March 2012 News24 Sapa
ANC asks for patience amid protests

Johannesburg - In the midst of ongoing violent protests across the country, the ANC government urged South Africans to be patient. "We know people are impatient with the pace of service delivery but government is constrained," ANC spokesperson Keith Khoza said on Tuesday. He said one of the ANC's priorities at its last lekgotla was to release resources. "People must understand there may be delays, but the commitment was there."
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On the eve of Human Rights Day, protests erupted in Sharpeville because the main celebrations were not happening there, where apartheid police shot dead black protesters in 1960, but in Soweto. People also took to the streets in Grabouw, in the Western Cape; Heidelberg, east of Johannesburg; and Phola township in Ogies, Mpumalanga, for a variety of reasons this week. Overcrowding Trying to lessen tension about overcrowding in schools in Grabouw, Basic Education Minister Angie Motshekga also asked for patience. "It is quite sad that residents are misled into believing that government can eradicate the legacy of inhabitable buildings, lack of resources and overcrowding in our schools immediately." Residents burned down the Umyezo wama Apile School last week, demanding additional facilities and an end to overcrowding. On Monday, protesters also burned down two ward councillors' homes and a municipal building. Twenty-one people were arrested. "We are working very hard to deal with the situation at that school. My colleague, Western Cape Education MEC Donald Grant, has already identified a location for a new school in the area," said Motshekga. "I, therefore, find it unfortunate for residents to vandalise school property and intimidate learners," she said. Cosatu said Grabouw's problems had been created by the provincial government's failure to address overcrowding. Cowboy attitude "It is inevitable that both learners and parents would not tolerate this situation where effective education cannot take place due to overcrowding," said Cosatu Western Cape provincial secretary Tony Ehrenreich. "The cowboy attitude of MEC Grant will not bring a solution to the crisis and he is exacerbating the tensions," he said. Gauteng Local Government and Housing MEC Humphrey Mmemezi was expected to visit Ratanda, in Heidelberg, on Tuesday, to address the protests. On Monday, two councillors' houses, the community hall, and a municipal office were torched. Protesters also took their frustrations out by looting foreign-owned shops. "The MEC's aim is to assess the damage and help to bring calm back to this community," the department said in a statement. Earlier on Tuesday, police said hundreds of Ratanda residents continued to march in the streets. Police said 48 people had been arrested for public violence.
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Standoff Protesters also gathered outside a private company in Phola near Ogies in Mpumalanga in a standoff with the company over labour issues. Lieutenant Colonel Leonard Hlathi said on Tuesday afternoon the situation was still tense and the police contingent had been "beefed up" to contain any outbreak of violence. "The protest is not about service delivery, but employment at local coal mines." Schools and health facilities in the community were closed for the second day. "Everything is at a standstill." He said 36 people had been arrested. Municipal IQ economist Karen Heese said there had been an increase in service delivery protests specifically related to the pace or quality of local government service delivery in 2012. "There has been an uptick in 2012 so far... and it is likely that we will have a year that will sustain the trends of 2009-11 with widespread community protests. She said the only difference noticed so far was that protests were tending to spread beyond metros and big cities. 20 March 2012 News24 Sapa
Zille hails ruling on Zuma records

Cape Town - DA leader Helen Zille has hailed a Supreme Court of Appeal ruling giving her party access to the records that led to the suspension, in 2009, of criminal charges against President Jacob Zuma. "The judgment held that the NPA must make available the requested record of decision it used when then acting national director of public prosecutions, Mokotedi Mpshe, made the decision to drop charges against Jacob Zuma," she told reproters at Parliament on Tuesday. The Democratic Alliance is seeking a review of the decision, by Mpshe, to drop charges against Zuma before he was elected president. Zille said the SCA had ruled that the National Prosecuting Authority would be obliged to make available whatever was before Mpshe when he made that decision. The importance of such evidence to the outcome of her party's review application could not be overstated.
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"The record of decision will shed light on whether Mokotedi Mpshe made the decision to withdraw the prosecution on rational, legal grounds, or whether he made the decision based on political considerations," Zille said. The SCA judgment had also affirmed that a decision to discontinue a prosecution was reviewable by the courts, and that the Democratic Alliance, as a political party, had the legal standing to bring such a review application. Responding to a question on how she thought the matter would now move forward, she suggested that "the longest route of delay would be followed" by Zuma and his legal team. Corruption charges had "hung over" Zuma long before he was elected president of the African National Congress. "South African's have a right to know what the defence is to those allegations, and whether there is substance in them or not - after all, he is now the president of this country." However, the president and his legal team had "dragged this particular case... through every single nook and cranny of filibustering, delaying and obfuscation, to avoid it ever coming to court". She expected Zuma and the NPA would now "use every legal trick in the book to delay, stall and sidetrack proceedings, in an attempt to win time for Jacob Zuma to serve two terms as president". The presidency said in a statement earlier on Tuesday, that it had noted the SCA's judgment. "We wish to emphasise that the decision taken by the acting national director of public prosecution on April 6, 2009, not to prosecute President Jacob Zuma, stands." The SCA, in its judgment, had explicitly stated that the "appeal does not concern the merits of a decision taken... by the acting NDPP to discontinue a prosecution... against Mr Jacob Zuma'', the presidency said. Earlier on Tuesday, the SCA ruled that Mpshe should hand over the record of proceedings to the Registrar of the Supreme Court of Appeal within 14 days. The record should, however, exclude written representations made on behalf of Zuma and any consequent memoranda or reports prepared in response, or oral representations, if their production would breach confidentiality agreements. The SCA further held that the record should consist of the documents and material relevant to the review, including those before Mpshe when he made his decision.
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NPA spokesperson Mthunzi Mhaga said on Tuesday the authority would study the judgment to determine the next legal steps. "We wish to state that we still stand by advocate Mpshe's decision and remind all that these were preliminary issues with no direct impact on his decision not to prosecute."
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20 March 2012 Business Day Page 1 Nicky Smith
State seems at a loss on crowding-in private sector

The governments recent reassurances that the private sector will not be crowded out during its huge infrastructure spend seem hollow now that it is beginning to spell out how much money is available
Of the R300bn that will be invested by Transnet over the next seven years, between R5bn-R8bn has been identified for "crowding-in the private sector", says Public Enterprises Minister Malusi Gigaba . The governments recent reassurances that the private sector will not be crowded out during its huge infrastructure spend seem hollow now that it is beginning to spell out how much money is available. But it may also be viewed as evidence of how confused the government is about how it can bring the balance sheets of the private sector into the planning of the R3,2trillion spend on large-scale infrastructure projects it has identified. The government has committed itself to the implementation of the build programme this year. It has locked on to infrastructure development as the key to stimulate economic development and job creation. The problem with this plan is that the government does not have the money or the skills to do all of the work that needs doing. And while the government recognises the need and in some quarters its desire to get the private sector to take the lead where it is most able to, it appears not to know how it wants this to happen. State-owned freight and logistics company Transnet is one of the governments strategic agents of delivery. Its capital expenditure budget was recently tripled to R300bn, which is to be spent over the next seven years. Speaking on the sidelines of the inauguration of Ngqura port near Port Elizabeth last Friday, Mr Gigaba said Transnet had identified R5bn -R8bn in capital expenditure projects for private sector participation. Branch line concessioning is an example of the companys commitment to private sector investment in state assets, he says. It is being piloted on three lines which have been selected to test the idea. This model has its critics. The forestry industry has rubbished Transnets thinking on branch lines, because the economics of rail requires consistent volumes to make money.
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Mr Gigaba says another project for which private sector investment will be invited is the yet to be approved port on the site of the old Durban airport. A feasibility study for the R75bn port has not been completed, but Transnet expects to invest about R30bn in the project. In his budget speech last month, Finance Minister Pravin Gordhan said private sector capacity "can also be mobilised through construction and operating concessions, for example in the management of industrial development zones, freight logistics and ports operations". Mr Gigaba says the concessioning of port and freight infrastructure was at the stage of "a discussion document, there is no decision yet, we are engaging on the matter". An infrastructure summit scheduled for later this year will explore how joint privatepublic investments can be structured and will identify projects that can be undertaken by the private sector, officials say. Transnets apparent aversion to private sector involvement relates to concern that the government will lose the ability to make strategic investments without having to justify its decisions on commercial grounds. About 12 years ago, Transnets board received a written instruction from the Presidency to build the port of Ngqura, the groups chairman, Mafika Mkwanazi, recounts. The five-line instruction did not take into account the fact that the ports construction was not financially viable for Transnet to undertake. Mr Mkwanazi says projects such as the new deep-water port "do not get built on financial viability". The decision to build the port at Richards Bay had also not been made on its economic merits, he says. Richards Bay was branded a white elephant, Mr Mkwanazi says, a label that the new Ngqura port and its adjacent industrial development zone near Port Elizabeth also carries. The port of Richards Bay, which includes a dry bulk terminal, a multipurpose terminal and the large, privately owned Richards Bay Coal Terminal, is now SAs largest exporting port.
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March 19 2012 Sunday Times Page 2 Rob Rose, Stephan HofstatterAndMzilikaziWaAfrika
Probe into dubious SA-Iran deals widens

Canada and the United Nations - as well as public protector ThuliMadonsela and the National Conventional Arms Control Committee - are set to probe South Africa's role in busting sanctions against Iran.
This follows a Sunday Times expos last week that revealed how SA front companies are used to ship US helicopters and spare parts to Iran. The report also exposed how Deputy President KgalemaMotlanthe's partner, GuguMtshali, was implicated in an attempt to solicit a bribe to get government support for a proposed R2-billion sanctions-busting deal with Iran. The Sunday Times understands Madonsela will tomorrow announce a formal probe focusing on whether Mtshali was involved in a bid to sell government support. On Thursday, the government's arms control committee told parliament it was probing alleged sanctions-busters, a list that includes 360 Aviation, Gemini Moon and Tigris International. Aviation experts say some spare parts shipped to Iran can be used for military purposes, which violates UN sanctions. Barry Oberholzer, managing director of 360 Aviation, who gave the FBI documentation in return for immunity from prosecution, says these are just some of the deals taking place under the noses of the authorities. Oberholzer controversially went public last week on the sanctions-busting scheme he was involved in, as well as detailing the attempt to solicit a bribe from his company. One report given to US intelligence in February 2011 says Iran's modus operandi is to "locate and create front companies in countries that are Iran-friendly, such as South Africa, and to use these countries for procurement and trans-shipment". This week, the UN said it would "look into such reports", while the Sunday Times understands Canada's Border Services Agency is also investigating the South African deals. On Monday, Motlanthe asked Madonsela to investigate the allegations against Mtshali. "The deputy president and Mtshali will make themselves available to provide any information," he said in a statement.
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A recording of a meeting attended by Mtshali in February last year showed that former De Beers executive RaisakaMasebelanga asked for R10-million and shares worth R94-million to get a "letter of support" from the government to help 360 Aviation get business in Iran. "There is nothing for mahala," he told the meeting. Though the deal fell through and the bribe wasn't paid, the written R10-million "agreement" was signed by Masebelanga and former Land Bank executive Herman Moeketsi. Moeketsi then obtained a letter from the Department of Trade and Industry supporting "the initiatives by 360 Aviation". Last week, Mtshali said she never attended a "formal meeting" with 360 Aviation, but would not comment on the recording. She said she was "firmly of the view" that she had done nothing wrong. But Oberholzer reiterated this week that Mtshali did attend the meeting. "I was there, and she was introduced to me as the deputy president's girlfriend," he said. Oberholzer said he would "welcome any investigation by the arms control committee and the public protector" and would cooperate fully. He said he went public because he had worked "as an operative for the Americans, providing them with information on how this worked" for a year, but now wanted to leave that life behind. "I felt it would be safer for me and my family to reveal publicly what I know at this stage, even if it makes people uncomfortable," he said. 360 Aviation helped set up a Cape Town-based front company called Gemini Moon 477, which bought a Bell 212 helicopter from Canada's Eagle Copters. Gemini Moon - secretly owned by Iranian company Heli Kish through proxy shareholders in Canada and the United Arab Emirates - deregistered the helicopter and shipped it to Iran. Milton Smith, a director of Gemini Moon, denied any wrongdoing and said he would also cooperate with investigators. "I've got nothing to hide." The US embassy said it "does not comment on specific law-enforcement or security matters", but stressed UN resolutions on Iran were "binding on all member states".
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19 March 2012 New Age Sapa
Shabangu taken off police project

Property mogul Roux Shabangu has been fired from the construction of a R20 million police station in Tweefontein, Mpumalanga, according to a report on Monday.
The public works department hired another company, Khazamula Construction and Civil, to complete the building after a nearly two-year delay involving a court case, The Sowetan reported. "We took the matter to the Pretoria High Court and asked the court to allow us to appoint a new company... and our request was granted," spokesman ThamiMchunu said. "We are glad that after such a long delay the people of Tweefontein will at last get their police station." Shabangu's company, Roux Property Development Africa, was dismissed in June 2010, three months before the deadline for completion, after a dispute with the department over payment. Shabangu told the daily newspaper on Sunday he was going to take the department to court. "We are not taking the move lying down. We have already notified them about our intention to sue," he was quoted saying. Shabangu was given the contentious leases for police office space in Durban and Pretoria.
19 March 2012 New Age SiyabongaMkhwanazi
Funds abuse scandal rocks Parliament

ANC chief whip Mathole Motshekga has called on Parliament to launch an investigation against its top official regarding thousands of rands used to build a boundary wall at his Cape Town home.
It was in the interest of Parliament and its secretary ZingileDingani to clear the air on how it came about that R186000 from its coffers was used to build the boundary wall.
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The Sunday Times reported that Dingani had obtained funds from parliament to build a boundary wall in his home and had in the process misled presiding officers including Speaker Max Sisulu on the matter. Dingani has admitted that the funds were used to construct the wall as this was based on a need following security breaches at his house. When Sisulu discovered that R186000 had been paid into the account of a construction company that built the wall, he ordered that Dingani repay the money. Dingani is said to be repaying the money in instalments of R10000 per month. Motshekgas spokesperson, MolotoMothapo, said yesterday that they were concerned about the allegations and viewed the matter in a serious light. Parliament was an important institution and the allegations against Dingani should be taken seriously as they raised questions about its management and integrity. The office of the chief whip will, therefore, request that the allegations be subjected to a full investigation, said Mothapo. It is in the interest of both the institution and individuals involved that this is investigated and put to rest to ensure that this important institution and its administrators do not operate under a dark cloud. 19 March 2012 Business Day Page 3 Natasha Marrian
Cosatus opposition stance divides alliance

Tensions might be historical but there is much more at stake now, writes Natasha Marrian
Congress of South African Trade Unions (Cosatu) affiliates have downplayed their differences over the African National Congress (ANC) leadership question, equating their divergent views to historically-held positions among the federations unions. National Education Health and Allied Workers Union (Nehawu) general secretary FikileMajola says the difference in views expressed by Cosatu affiliates is historical, and not about whether to retain the current ANC leaders. Nehawu and the National Union of Mineworkers (NUM) along with Cosatu president SdumoDlamini who is backing President Jacob Zuma for a second term are traditionally closer to the ANC and the South African Communist Party (SACP). The NUM is the largest Cosatu affiliate, followed by the National Union of Metalworkers of SA (Numsa), Nehawu and the South African Democratic Teachers Union. Mr Majola says the current tension which Cosatu admitted to last year stems from an attempt by federation leaders, as a whole, to adopt an "oppositionist stance" towards the ANC.
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"What we are fighting over today is that theres an attempt because of the problems facing the ANC to position Cosatu differently, almost as an opposition to the ANC and that thing is not part of the traditions and the orientation of Cosatu," Mr Majola says. "Were saying that to have almost a sense of anti-ANC, thats not the tradition of Cosatu (although) that is tolerated but when somebody tries to make that the dominant thing in Cosatu, that is what caused the tension." The "orientation" of NUM and Nehawu can be gleaned from their leadership, who are generally members of the SACP, the ANC or both. Numsa on the other hand, Mr Majola says, is traditionally sceptical about political formations. Numsa, led by general secretary Irvin Jim, is said to be more hesitant to support Mr Zuma for a second time, as it feels the ANC has not fulfilled the mandate handed to it by the Polokwane conference in 2007. This view is reportedly also held by Cosatu general secretary ZwelinzimaVavi. "That thing is in the genes of Numsa. It has grown, it has evolved like that so you do have strong views in Numsa that are quite sceptical about political parties including the ANC and this is not (Irvin) Jim, its Numsa," Mr Majola says. The latest spat between the ruling party and its ally Cosatu over labour brokers and the e-toll system is but one incident where the federation took an "oppositionist" stance towards the ANC-led government. It pales in comparison with incidents in 2010 where ANC secretary-general GwedeMantashe accused Cosatu of attempting to effect "regime change" after comments made at a civil society conference Cosatu arranged outside the tripartite alliance. Mr Vavis outspoken criticism of the ANC also severely strained relations between the two alliance partners when he lambasted Mr Zuma for failing to act after allegations of corruption were levelled against then communications minister SiphiweNyanda. At the time, some in the ANC pushed for Mr Vavi to be disciplined for his comments. Mr Jim says the divisions in Cosatu are a "media construct", designed to weaken the black and African working class formations. However, disagreements over "democratic leadership contests" are an "everyday occurrence", he says. "Cosatu always, through its internal democratic structures and platforms, emerges stronger, better and bigger by allowing maximum debate, full engagement, and eventually arriving at collectively agreed to positions," Mr Jim says. He adds that Cosatu is larger than any of its affiliates. With Cosatu being tugged in different directions, the winning view this time will emerge at its national congress in September. Research fellow at the Helen Suzman Foundation, Aubrey Matshiqi, agrees that the tensions manifesting themselves in Cosatu are historical. The debate over the
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federations position in relation to the ANC will naturally manifest itself from time to time, he says. However, the stakes are high this year, with all alliance formations holding elective conferences. The tensions are likely to intensify, particular with Mr Dlamini and Mr Vavi holding different views on the ANC leadership question. Similar tensions played out in Cosatu ahead of the Polokwane conference in 2007, but on a grander scale. Its then president, Willie Madisha, backed former president Thabo Mbeki for a third term as ANC president and Mr Vavi and most of Cosatu supported Mr Zuma. After that acrimonious battle, Mr Madisha abandoned Cosatu and joined the Congress of the People, a splinter group from the ANC who were disgruntled by Mr Mbekis axing. 19 March 2012 Business Day Page 4 BekezelaPhakathiandSbuMjikeliso
Zille likely to remain DA leader despite rumblings

Democratic Alliance (DA) leader Helen Zille is almost guaranteed re-election as party leader to take the DA into the 2014 general election, political analysts said yesterday.
However, it is understood that some within the party are lobbying to remove Ms Zille as leader at the DAs national congress in November, at which a new national leadership team will be elected. There are also strong indications that federal executive chairman James Selfes position is under threat. The position is seen to be influential within the party. Though Ms Zille has not yet indicated whether she will make herself available for reelection, strong indications are that she will run, possibly for the last time. Analysts said yesterday it would be difficult for anyone to mount a challenge against her. Beeld newspaper has reported that a faction in the DA wants to oust Ms Zille, who assumed the DA leadership in 2007. Ms Zille, in a radio interview on Friday, said that any challenge for her position at the elective conference was welcome. She said she was certain her position would be challenged, but said it was not a divisive process. Independent political analyst NicBorain yesterday said Ms Zille was generally seen as the face of the DA. "She is seen as the person who renovated the party. She reinvigorated the DA and brought new energy, it will be difficult for anyone to challenge her." Independent political analyst Daniel Silke said there was no "real" alternative to Ms Zille. "There is no one within the party who can remotely threaten Ms Zilles position.
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She is safe in this election." He said it was common in any political party for members to jockey for position in congress season. "However, the jockeying has been exacerbated by the manner in which LindiweMazibuko was elected as parliamentary leader." Ms Zille last year openly lobbied to have Ms Mazibuko elected to lead the party in Parliament. Ms Mazibuko went on to defeat Athol Trollip in a hotly-contested election. A DA insider yesterday said that Ms Zilles position was "unassailable". "Anyone who challenges Helen would not have done their homework". The insider said that there had been some discussion around unseating Mr Selfe which came as a surprise. "It would obviously be Athol Trollips camp who would want to unseat Mr Selfe. No one has challenged James for a long time it is a powerful position which can be equated to that of African National Congress secretary-general GwedeMantashes." Speaking at a press briefing in Ladysmith at the weekend following the DAs KwaZulu-Natal provincial congress, Ms Zille said party members who believed they could lead the DA needed to openly express their intentions and not do so behind closed doors.
19 March 2012 Sunday Times Review Page 4 MondliMakhanya
The JSC must answer a charge of moral cowardice

By following a Luthuli House brief, commission white-ants South Africa's judiciary One of the most memorable moments in the Judicial Service Commission interview of Chief Justice MogoengMogoeng was a ditty sung by Justice Minister Jeff Radebe.
Radebe, concluding his lovey-dovey questioning of the president's nominee for chief justice, threw in a supersweet question. Wearing a mischievous look on his face, he asked Justice Mogoeng what his favourite music was. "Gospel," piped up the God-fearing one. To which Radebe responded: "I thought you would say Brenda Fassie. Because, as far as I'm concerned, indaba yakhoistraight. Ayifuniiruler." The line from the 1980s Fassie hit loosely translates as: "You're okay. There are no issues with you." There were hearty laughs all round as everyone got Radebe's point.
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Radebe was basically telling Justice Mogoeng, the rest of the JSC and the South African public that there was no need to grill him and no need to establish his credentials. As far as he was concerned, the candidate was as perfect as a German vehicle rolling off the showroom floor. Radebe had led the ANC charge in pushing for Justice Mogoeng to be confirmed as the leader of South Africa's judiciary. The sweetness of his questions and those of other ANC-leaning commissioners had brought a self-satisfied smile to Justice Mogoeng's face. As did the bulldog rebuking by Radebe and others of those commissioners who sought to give him a grilling worthy of a candidate for such high office. In the end, the ANC got its man. Logic and reason were never going to triumph over the party's desire to have an obedient puppy lead the judiciary. So, just like when the ANC foisted an intellectually derelict and corruptible individual on us as president, this time it was pushing the weakest judge in the Constitutional Court to the top of the judicial food chain. It was the worst decision in the JSC's 15 years of existence. A position the nation should look up to was, in one fell swoop, reduced to ridicule. Just as had happened with the position of South Africa's number one citizen. So now, instead of taking these positions seriously, we crack jokes about the incumbents. This week, Justice Mogoeng proved all who questioned his suitability for the position correct. Justice Mogoeng - who is a lay preacher in some little-known Christian sect - sent an e-mail to Constitutional Court justices and senior judges in the lower courts, inviting them to an evangelical conference. In his explanation to Business Day, he said nonchalantly: "When I saw this, I just thought, 'Wow, here is an opportunity to expose those colleagues who are willing and able.'" So here you have the head of the judiciary in a secular state who believes it is okay to impose his religious beliefs on his colleagues. Here is a guardian of our constitution who believes that his spiritual direction is superior to that of his colleagues. Not that there is anything wrong with Justice Mogoeng being an adherent of the strange sect to which he belongs. His religious rights are as protected as those who choose not to believe in a god and those who follow different gods from the one he worships. The issue is that he is the country's chief justice, not its chief missionary. But Justice Mogoeng is not of his own making. South Africans should direct their rage at being lumped with Justice Mogoeng at the JSC. It is this institution that failed
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South Africa by processing him through the judicial system to the top job without seemingly paying any attention to his oddness. Each time I think back to that travesty that was described as an interview, I remember a senior legal mind who warned of the "capture" of the JSC by the governing party. While the institution started off as a collection of the strongest minds from the legal, political and academic worlds, today it is hard to vouch for its collective wisdom and integrity. Not that they are intellectually lacking. Rather it is that many of them lack moral steel. Instead of doing what is right and selecting the best candidates, they follow a Luthuli House brief. The philosophy of many on the commission seems to be: "Ask not what is good for the country, but what the party mandarins want." This philosophy is likely to prevail when the JSC sits to fill vacancies left by retired and soon-to-be retiring justices. If the hostility towards the judiciary is anything to go by, you can be assured that the Constitutional Court has already been identified as the next target for capture. And the already captured JSC will be the instrument with which this capture is carried out. We should brace ourselves for more Justice Mogoengs coming our way. Although, one must admit, it will be hard for anyone to match the wackiness of our current chief justice. 22 March 2012 Financial Mail Page 6 Barney Mthombothi
Its my time to eat

SA suffers from what can be described as a moral deficit. It is a disease that seems to be afflicting all strata of society from government, to business, to the lowliest state functionary. The mantra seems to be, in that delightful phrase, its my time to eat.
Its a feeding frenzy. People are neither afraid nor ashamed to be caught with their fingers in the till . Corruption is so commonplace it doesnt shock us anymore. The country is being treated to the amusing spectacle of a police commissioner who admits to having approved in expenditure billions he didnt have in his budget. Theres obviously no evidence to show that Bheki Cele is corrupt. But his naivet is mind- boggling. Hes not wholly to blame, though. Hes a victim of sorts. The man who plucked him from obscurity and handed him a job that he is clearly not qualified for should be in the dock. Celes predecessor, Jackie Selebi, is of course in jail, serving a long term for corruption. That just about sums up the countrys predicament. Corruption has not
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only reached the highest levels of law enforcement, the fox now guards the chickens . The involvement of the hierarchy in criminal activities or the abuse of power sends a signal to the foot soldiers that they, too, can partake of the forbidden fruit. What follows is the erosion of public trust in state institutions, and a moral abyss its difficult to get out of. Human nature is not incorruptible. Which is why checks and balances are key to guarding against such a tendency in institutions. SAs political system suffers from a lack of accountability. The ruling party has a lopsided parliamentary majority which almost amounts to a blank cheque. Through its deployment policy, it appoints its cadres to key positions in government and parastatals regardless of their lack of qualifications or suitability for the job. The incumbent is therefore loyal not to the employer but to the party. In most instances, even that distinction between the two becomes blurred. Both Selebi and Cele are party deployments . Also fuelling corruption is the belief that the ANC, with its huge majority, in Jacob Zumas memorable phrase, will rule until Jesus comes back. Such arrogance filters down to government officials who live under the impression that they are unlikely to be punished if they are involved in wrong doing. They see the party as their shield. But probably the biggest spur to corruption came with the dissolution of the Scorpions, the crime-fighting unit established by Thabo Mbeki. It became one of the casualties of the Mbeki presidency. His enemies accused him of using the unit to settle political scores, especially against Zuma. Its an accusation that was never borne out by the facts. Its death not only cleared Zumas route to power, it was open season to corruption. Its now clear why Selebi was against the Scorpions. The units replacement, the Hawks, has proved to be toothless and ineffective, an inadequacy recognised by the constitutional court, which has instructed government to beef up its independence . Corruption, like crime, underlies most discussions and indeed drives our political discourse. Its partly responsible for governments attack on the media and judiciary, the institutions that embarrass it by exposing wrong doing. Officials often accuse the media of bias , of picking on this government as if the apartheid state was squeaky clean. They miss the point. Corruption is unacceptable wherever it occurs. Also, since when has apartheid been the moral yardstick of the new SA? Werent we supposed to be much better? Corruption wont be defeated until we fix societys moral fibre. The battle will be half won when people feel a sense of shame for doing wrong . Right now they have all the encouragement to keep looting.
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22 March 2012 Financial Mail Page 44 PrakashNaidoo
Going for gold

Buoyed by two spirited provincial party conferences in a week and some gains in byelections, the Democratic Alliance has set its eye on wresting control of SAs richest province from the ruling party.
But winning Gauteng will require a big swing in voter loyalty and the DA will need to more than double, by at least 1m , the number of new voters it has in the province. The partys new Gauteng leader, John Moodey, knows it will be a tough ask, but says voting trends in Gauteng and nationally show it can be done. For us, Gauteng is a strategic province and we have already started the campaign to win control from the ANC, he says . Our support is slowly creeping up in some of our non traditional areas and we have two years to turn it around for the DA. The opposition party has been enjoying a rejuvenated spirit in recent months, with a new parliamentary leader, Lindiwe Mazibuko, as well as new provincial leaders in Gauteng and KwaZulu Natal. Party veteran Mike Moriarty has been elected DA chairman in Gauteng and last weekend Sizwe Mchunu won as leader in KwaZulu Natal, with Haniff Hoosen provincial chairman. The DA holds about 24% of the vote nationally, which party leader Helen Zille says she wants to increase to at least 30% after the next general election in two years . Included in that plan, says Moodey, is to move Gauteng into the DA column. To achieve this, the DA will need to take a large bite of the ANCs votes in the province. Since it has already tapped into much of its support base in the traditional DA areas in Gauteng, the new votes will have to come mostly from black and township voters. This is not impossible to achieve, says Moodey. The ANC is a party in decline and we are showing gains in almost all the areas. In 2009 the DA won about 924000 votes in Gauteng, a little over a fifth of the electorate, compared with the ANCs 2,81m votes, which translates to about 65% of support. Moodey says winning over disillusioned ANC voters in Gauteng shouldnt be difficult . This [Gauteng] is the land of gold for many people, but this promise continues to elude most people, he says.
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The DA is also eyeing the 337000 voters who made their cross for the Congress of the People (Cope) in Gauteng in 2009. Cope was formed by a breakaway group from the ANC but internal strife among its leadership has seen the party slowly implode. The party could well still rise from the ashes by 2014 but the DA is hoping that a large enough number of its voters will cross over. Attempts to get comment from the ANC in Gauteng were unsuccessful. But few doubt that this is overly ambitious. Much will depend on the DAs fortunes in the key cities of Johannesburg and Tshwane. It has always performed better in the metropoles. In last years municipal elections the DA won 90 out of an available 260 seats in Johannesburg. In Tshwane, the party holds 47 seats in the council out of a total of 152. But byelection results in February showed some interesting swings in voting patterns that must leave the ANC a little anxious. In two wards in Tshwane, wards 28 and 80, both of which were once comfortable ANC strongholds, the DA showed gains in support. Though the DA was unable to unseat the ANC in these byelections, it came close enough for many to sit up and take notice. In ward 80, the DA lost by just nine votes. Last year, the DA got 27,67% of the vote in this ward, but in February it got 48,76% nearly an 80% increase in support. At the same time, the ANCs support base fell from 65,2% in 2011 to 50% in 2012. In ward 28, the DA increased its support from 1,17% in 2009 to 6% in 2011 and to 11,15% in 2012. 22 March 2012 Financial Mail Page 45 RazinaMunshi
Taking the long view

SAs newest and most efficient port, the R10bn Ngqura in the Eastern Cape, is set to receive new investment that will more than double its capacity.
The port was officially launched by President Jacob Zuma last week. The high-profile launch has sought to dispel criticism of the size of the investment in Ngqura. Governments recent decision to construct a manganese export terminal at the port has been met with disapproval, because, miners say, using it will be more expensive than Saldanha .
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Other traders who have used the port have also experienced higher costs in transporting goods to and from it than has been the case with other ports. Some analysts have raised questions about the economics of Ngqura, saying government should instead have funded the modernisation and expansion of the Durban container terminal. But government wont address questions about the economics of spending R10bn on the new port. Zuma says the construction of Ngqura and governments intention to expand it are part of a long-term vision to develop it into a transshipment hub. This would allow a vessel with goods from China that is destined for Brazil, for example, to offload its cargo in Ngqura and for another ship to collect it and take it to Brazil. Worries and anxiety about Ngqura not being taken seriously must go away, says Zuma. Openly conceding that building Ngqura port was not financially viable, Transnet chairman Mafika Mk wanazi says something needed to be done for the Eastern Cape. An instruction to build it was sought from Transnets shareholder, government. But Transnet leadership and government have said the deepwater port of Ngqura will have a different, though complementary, role to neighbouring Port Elizabeth and East London ports. Plans to expand Ngqura are already under way. Over the next seven years, the port will receive new cranes to add to the six existing ones. Its berth will also be extended, taking its capacity from 800000 TEUs (20-foot equivalent units) to 2m by 2019. The investment will cost R8bn-R10bn, says Transnet CEO Brian Molefe. Governments decision to export manganese from Ngqura will also necessitate the construction of a manganese terminal. This will replace the facility at Port Elizabeths port. Once two planned manganese smelters are built within the Coega industrial development zone, an expected 2Mt of the 12Mt planned annual capacity of Ngqura will be beneficiated before it is exported. Officials insist that Ngquras investment is not to the detriment of East London and Port Elizabeth. Ngqura, says Molefe, is attracting business that SA would never before have received. Port Elizabeth will lose its manganese terminal, but its car export terminal will be upgraded, says public enterprises minister MalusiGigaba. Land that is now used for port activity will be transformed into a waterfront with hotel, leisure and possibly even residential facilities. Nelson Mandela Bay Business Chamber CEO Kevin Hustler says Port Elizabeths port has not declined in the face of high investment into Ngqura. Instead, its volume of smaller ships has increased as Ngqura absorbed larger vessels and transshipment business.
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Hustler believes the construction of Ngqura is a long-term investment that will yield enormous benefits. Already, he says, the citys economic activity has increased. Ngquras construction has injected life into Port Elizabeths logistics industry. Hustler has recently met with increasing numbers of international business delegations looking for opportunities in the city. In a move that will please business, Zuma announced that a R1bn rebate from Transnet on port charges will be extended to exporters of manufactured goods from April 1. However, Transnet may find it difficult convincing business to divert trade through Ngqura instead of using facilities like Durban because of the cost of inland transportation. Its ability to reduce inland transport costs will be critical to realise returns on its investment into Ngqura. In the future, government leaders say, decisions about large infrastructure projects will be taken only if feasibility studies affirm their financial viability. 22 March 2012 Business Day Page 1 Sam Mkokeli and Wyndham Hartley
ANC may oppose ruling on Zuma review

The Presidency will study the Supreme Court of Appeals ruling that has paved the way for the official opposition to initiate a judicial review of how corruption charges against President Jacob Zuma were dropped.
But the African National Congress (ANC) has already hinted that challenging Tuesdays judgment is a possibility. The announcement allows the Democratic Alliance (DA) to start the review of the National Prosecuting Authoritys decision in 2009 to drop the charges. The DA will now have access to the record of that decision. The review, which the DA could take to a high court, could create problems for Mr Zuma at a time when the ANCs succession battle is expected to intensify. The withdrawal of the charges cleared the way for Mr Zuma to become SAs president. Presidential spokesman Mac Maharaj yesterday said the Presidency would get expert opinion on the judgment before deciding what to do. Taking the matter to the Constitutional Court is one option the respondents have.
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The ANC and its ally the South African Communist Party lambasted the DA for trying to score political points on technicalities. However, the appeal court had praise for the DAs actions, with Judge MahomedNavsa saying: "It clearly is in the public interest that the issues raised in the review application be adjudicated and, in my view, on the papers before us, it cannot seriously be contended that the DA is not acting, genuinely and in good faith, in the public interest." The ANC took issue with what spokesman Jackson Mthembu said was granting of blanket permission to political parties to review any state decision in court. Mr Mthembu also pointed to a possible limitation on the DAs ability to review the decision to drop the charges, since it cannot get access "to all the information which informed (then acting National Prosecuting Authority head MokotediMpshes) decision to withdraw the charges". The spy tapes that were the main factor in the decision are not expected to be part of the record to which the DA would be allowed access. 22 March 2012 Business Day Page 2 Linda Ensor
MPs call meeting on banks unsecured loans

The National Credit Regulators (NCRs) concern over the increase of unsecured credit has prompted Parliaments trade and industry committee to hold a special hearing with the regulator and the Banking Association of SA in early May to discuss the issue.
Figures the regulator provided to MPs this week indicated that the total value of unsecured loans by the third quarter of last year had risen by 53% to R101bn from the previous year. This represented 8% of all lending, an increase from 5,7% in 2010. As at September last year, unsecured lending represented 21,45% of all new credit, compared to 7,75% in December 2007. National Credit Regulator acting CEO NomsaMotshegare described the growth as "alarming", and said the regulator had met individual banks, the association, the Treasury and the Reserve Bank, which plans to undertake a study to ascertain what is going on. MPs from across the spectrum said Parliament had to tackle this problem. Ms Motshegare said the response from credit providers had been low or nonexistent. She ascribed the trend to the fact that banks found it less profitable to grant mortgages so had increased access to credit, which earned a higher interest rate. However, Banking Association of SA CEO CasCoovadia defended the banks, saying most of the unsecured lending was to existing clients with an established credit record.
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"Banks are absolutely clear that there is a demand for unsecured lending and they are meeting this demand within the conscripts of the law and in a responsible way that ensures that they assess the customers ability to pay," Mr Coovadia said. There was no concern that unsecured lending was getting out of control and becoming risky. He conceded that the property market had been tight, noting that it would be unwise for banks to engage only in mortgage lending and not look for alternative sources of funding in the present environment. Banks were also having to change their business models in the light of anticipated changes brought about by the implementation of Basel 3, which was likely to make long-term lending "extremely difficult". NCR chairman Trevor Bailey said the shift from housing lending to consumer credit was "not surprising" given the growth in mortgage arrears and the contraction in the granting of housing loans. Also of concern was the fact that 75% of unsecured credit granted by banks consisted of loans of more than R15000 and more than 60% of the loans went to people earning less than R10000 a month. Anecdotal evidence suggested that borrowers were using unsecured credit to finance consumption and repay other debts. Ms Motshegare said recent court judgements had weakened the NCRs ability to regulate the process of relieving debt stress and that amendments to the National Credit Act would be necessary to address them. The Department of Trade and Industry was working on amendments to address these gaps. Another plan was to establish a fidelity fund to assist consumers with high court litigation costs. 22 March 2012 The Times Page 11 Brendan Boyle
No ray of sunshine on the secrecy legislation

South Africa is entering a dangerous season from which it may not emerge unscathed. It is a season of special danger for the media whose duty of scrutiny may be blocked by secrecy legislation and less protected by a weakened judiciary.
The debates raging across our screens, airwaves and pages attest that the media are not facing these challenges with complacency, but it is still possible that we are not addressing all the preparations we could be making for the rough weather ahead.
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Plans to limit access to information are back on the frontline with the National Council of Provinces preparing to finalise its review of the Protection of State Information Bill, which has already been adopted by the National Assembly. It is difficult to imagine how the council will interpret the overwhelmingly hostile inputs made during its national road show - and those likely to be made in the final hearings - as support for the original concept, but I imagine that the ruling party delegates will find a way. In the climate of defensive paranoia that has President Jacob Zuma apparently considering the appointment of suspended police spy boss Richard Mdluli to head the South African Police Service, reviewing the powers of the Constitutional Court and packing every arm of government with cronies, there is little reason to hope for a ray of sunshine on the secrecy issue. Separately, our tradition of self-regulation is on the table following the hearings mounted by the Press Ombudsman's office and with Judge Pius Langa's Press Freedom Commission about to submit its report on ways to strengthen the Press Council. Neither is likely to satisfy those in the ANC who are committed to statutory media regulation. We should expect a year or two of hard fighting to defeat the proposals for some sort of media tribunal which, even if nominally independent, would risk being packed with ANC cadres deployed in much the same way that Zuma is trying to deploy judges to our senior courts. Then there is the danger at our own front door - or often under it: the flood of politically motivated leaks, some real and some fabricated - from rival factions in the ANC supporting Zuma or his likely rival, Deputy President KgalemaMotlanthe, to take control of the party at its elective conference in Mangaung in December. The leaks present stories that need to be told, but the risk to the media is they might fail to sort fact from fiction and fall into the sort of trap that caught a newspaper from a rival group, which reported that Motlanthe had fathered a love child when he had not. Publishing falsehoods can be harmful to victims of malicious gossip. It can ruin lives, relationships and livings, so the duty of media caught up in this important political battle must be absolute vigilance against fraud and rigorous application of the public interest test. Newspaper sales peaked during the final years of the struggle against apartheid, when it became apparent that the end of white rule was in sight. They stayed high through the transition to democracy because everyone had a vested interest in the outcome of the negotiations and the subsequent shaping of the future state. Newsrooms were well resourced in numbers, experience and equipment to serve that appetite. Media owners acknowledged a social responsibility, and for reporters it was a time of plenty.
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There are myriad reasons, from complacency to powerlessness, that have contributed to the decline in readership since that period and to the consequent pressure on media profits. Few newspaper owners seem motivated by that sense of responsibility to the nation any more. The country is free, the job is done and it's time to extract value from their investments. For reporters, these are leaner times. But the job, it seems, was not quite done and it is time again for the media to increase their vigilance and for owners to reinvest to enable them to do so. The forces vying for political control threaten to destroy the vital infrastructure of long-term freedom in their race to build defences against defeat in the internal polls of the ANC or the public elections that will follow. While rivals will continue to exploit the media to wound their opponents, they will try to protect themselves by controlling the media and the constitutional institutions that guard our freedoms. The freedom of the press to tell South Africa's story may be curtailed and the will of the Constitutional Court to lift those limits may be subverted by partisan appointments and threatening reviews. We need a strong, free and capable press that wields its influence responsibly
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Global South African Weekly News Wrap 22 March 2012

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Global South African Weekly News Wrap 22 March 2012

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