Friday, July 30, 2010

Kebble's dirty empire laid bare

Brett Kebble's former strongman described in vivid detail this week the violence and deceit that lay beneath the surface of Kebble's opulent life.

Clinton Nassif, former owner of the Central National Security Group, is the state's key witness in its case against convicted drug-dealer Glenn Agliotti, the only person charged with Kebble's murder on September 27 2005. Nassif took the stand in the South Gauteng High Court on Thursday.

He testified that he met Agliotti on the golf course in 2003, where they "started discussing business". Nassif told Agliotti he was "doing security, investigations". Agliotti told him he was working for Brett Kebble. A week later Agliotti invited Nassif to a breakfast meeting in Sandton. "He spoke about what he did for the Kebbles. I gave him advice about the things they were doing. He told me he was working with Palto, a team under [former police boss] Jackie Selebi. He told me he was friends with Jackie [Selebi]; they worked on investigations."

Nassif said Agliotti suggested that he should start working for Kebble and his business partner, Australian John Stratton, who they flew down to Cape Town to meet. It was agreed that Nassif and his security firm would do work for the Kebbles, but Agliotti told him: "I handle the Kebbles and Stratton. Any meetings with them go through me." At a meeting with Stratton -- at that stage a director of JCI, of which Kebble was chief executive -- he was told about the company's interests and where JCI's "problems were coming from".

Nassif was contracted to "get information and do surveillance", including "bugging people's motor vehicles" and tapping "many people's phones" for Kebble and Stratton. In one case child pornography was planted on a JCI employee's computer. According to Nassif, he was given a list of people to spy on, including former Durban Roodepoort Deep boss Mark Wellesley-Wood, Uranium One chief executive Jean Nortier and Randgold Resources chief executive Mark Bristow. "We had to get bank statements, keep tabs on everyone [who was] against them [Kebble and Stratton]," Nassif testified. He also told the Kebbles he could bribe prosecutors and magistrates. One case against Roger Kebble, Brett's father, "fell away and we got favoured".

Kebble and Stratton's alleged methods were at their crudest in the shooting of former Allan Gray chief investment officer Stephen Mildenhall, who flew from London on Wednesday to testify in the trial. Mildenhall stood in the way of a large Investec loan to JCI. Nassif said that in mid-2005 Agliotti and Stratton gave him names of people "who ... had to be taken care of". "In one meeting Mildenhall came up. I was informed by Agliotti and Stratton that Mildenhall was the real, real problem. Something had to be done." At a meeting at Stratton's Cape Town house, "Stratton said he wanted this thing done" and pointed a sushi knife at Nassif. Nassif said: "I wasn't willing to take on the job of killing Mildenhall." They renegotiated with Stratton and Agliotti, who agreed that Mildenhall should be "taken out of the system for three to six months".

Nassif also revealed for the first time that Brett Kebble's father, Roger, knew about his son's plans to die. After Nassif was asked by Brett Kebble and Stratton to find a pill that could induce a heart attack, Nassif went to Roger's house at night and told him his son had "crazy" plans. "He [Roger Kebble] freaked out, saying since he [Brett] was a teenager, when things got hard, he always threatened this [suicide] ... we left it at that." When Brett Kebble found out Nassif had told his father, "he blasted me from a dizzy height". Meanwhile, the M&G has learned that charges of tax evasion and tax fraud were laid against Agliotti at the Brooklyn police station in Pretoria this week. They are understood to flow from a confidential inquiry by the South African Revenue Service into Agliotti's tax affairs, which the M&G revealed in late 2008.

The Kebble trial this week gave a glimpse into the world of South Africa’s short-haired musclemen, who kill for cash. And ruthlessly efficient professionalism was not a quality they brought to mind. The three stooges took the stand in the South Gauteng High Court to explain the murder of Kebble and the shooting of Mildenhall in 2005. Boxer Mikey Schultz, rugby player-turned-bouncer Nigel McGurk and panelbeater Faizel "Kappie" Smith took turns in relaying the muddled events that left Mildenhall shot in the shoulder and Kebble dead In chillingly calm tones they described the plans that led to the hit on Mildenhall, who was calling for Kebble’s removal as chief ­executive of JCI.

Smith, who admits to being paid for "intimidating people and beating people up", said: "We wanted him taken out of action.” McGurk referred to "taking him [Mildenhall] out of commission"; Schultz said that they "wanted him taken care of". The men did not know Mildenhall and, according to Smith, did not even know what he looked like. They weren't making any money from the job -- but the Kebbles' security chief, Clinton Nassif, assured them that Kebble would look after them financially. On the way to Cape Town, the trio's hired BMW 4X4 ran over a "little buck". They had left their cellphones at home to avoid being traced and had to use a payphone to contact Nassif, who drove down to Colesberg. The three hitchhiked a ride to the sleepy Karoo town and Nassif rented them a Volkswagen Citi Golf to continue to Cape Town. Once there, the Mildenhall shooting was sub-sub-contracted to "two guys at a taxi rank" in Claremont, Cape Town, for R150 000. Smith had found them through "a family member". The shooters staked out the wrong house for three days, mixing up roads with streets, McGurk testified. The shooters waited for Mildenhall to return home from work and shot him in both shoulders. Mildenhall, now resident in the UK, still has pain and has restricted movement in his left shoulder, he testified on Wednesday. The shooters kept Mildenhall's driver's licence "to prove that we had done the job", said McGurk. Smith threw the gun into the sea. Mildenhall's wallet and credit cards were burned under a bridge en route to Johannesburg. In Johannesburg, Smith dropped off his accomplices and then "went to fetch my kid from school".

Smith told the court that a few weeks later Schultz had approached him at his panelbeating shop to say: "Kebble wants to go." Through messages passed from Nassif through Schultz to McGurk and Smith, the three planned to carry out the "assisted suicide" of Kebble for R500 000 each, by ­feigning a hijacking. On September 22 2005, the night originally planned for the job, it was called off. "I was furious; it was the only thing on my mind all night. I even took a shower," said McGurk. At the next attempt, on September 26, Schultz's wife's black Golf GTI, which they used for the hit, overheated and they had to head home. Kebble was "furious" and told Nassif "we didn’t know what we were putting him through", ­according to Schultz. The next night, Schultz’s gun jammed at the first two attempts. On the third attempt "Kebble rolled down the window and that was the first time I ever saw him," said Schultz. "I pulled the trigger and the gun fired." McGurk testified he was upset that Schultz had told Nassif about the mishaps. "The car overheated, the gun jammed.

Source: Mail & Guardian

Media tribunal 'would be a very dangerous move'

A media tribunal would be an "imposition" on media freedom, press ombudsman Joe Thloloe warned on Friday. "Any system imposed from outside the press itself will be an imposition and in violation of the Constitution," Thloloe told the South African Press Association. He was responding to the African National Congress's (ANC) release of a discussion document, entitled "Media transformation, ownership and diversity", which proposes the setting up of a "Media Appeals Tribunal" to make the media "accountable".

Thloloe said he approached the ANC about a month ago to try to get clarity on talk of a tribunal, which the ANC said would complement the role of the press council and press ombudsman. "I was saying we were getting two different positions. The one, from Polokwane, that there will be an investigation into the possibility of a media tribunal ... But also, another position, coming from the alliance very strongly, is a view that a tribunal should be established. I went there to ask, where are we standing, is there going to be in an investigation or is it [the tribunal] going ahead? [I was told] they are going to recommend that Parliament will do an investigation," said Thloloe. He said he would be "happy" to participate in an investigation but expressed doubts about its intentions. "We are very happy to participate in any investigation, but what worries us are the people who have already made up their minds."

The ANC document criticised the press ombudsman, saying he could not be objective. The document states: "The mere fact that the press ombudsman is from the media ranks, a former journalist, and is not an independent person who looks at the media from the layman's perspective, poses an inherent bias towards the media with all interpretations favourable to the institution and the other party just has to understand and accept the media way, which is grossly unfair and unjust."

But Thloloe, a veteran journalist with almost 50 years' experience, said the self-regulatory system of the press ombudsman had been copied from various other systems around the world. "The press ombudsman's office and the press council are functioning well ... it doesn't need anything else," he said. The ANC discussion document did not really further "flesh out the proposal" of a media tribunal, he added. "It's a very strange document ... The arguments they have raised so far are not convincing; we can't take it further because they haven't fleshed out the proposal."

South African National Editors' Forum (Sanef) chairperson Mondli Makhanya on Friday said Sanef would request a meeting with the ANC to have a "decent conversation" about media freedom. "There seems to be a huge gulf that has developed between the ANC and the media. We want to sit down with them and a have a decent conversation," Makhanya told Sapa. We will be requesting a meeting with the ANC."

ANC secretary general Gwede Mantashe on Thursday invited newspaper editors to join the ruling party's debate on setting up a statutory media tribunal. But Makhanya said there was no way Sanef would ever be open to the idea of such a tribunal. "A media tribunal would be unconstitutional and totally against media freedom. It would be a very, very dangerous move."

However, Sanef would be willing to discuss the role of the press ombudsman and press council. Makhanya said the media was not only accountable to the ANC, but to the public, and if the public felt the print media's self-regulation could be improved, it needed to be discussed. "We would be open to a discussion on how it can be strengthened," he said.

The ANC wants an independent statutory body accountable to Parliament to deal with complaints against newspapers, instead of only using the press ombudsman, who currently deals with complaints. Mantashe said on Thursday, according to the Star: "Our invitation is that the media must engage in that debate constructively, throw around ideas and not defend its own turf. "The fact that editors and columns in the newspapers are on the defensive is not going to stop us from having that discussion. It's up to them if they want to contribute to that debate, and actually to influence it. It is up to them, if they think they are on the defensive and must take a laager approach to that discussion, they are doing that at their own peril," said Mantashe.

Source: Mail & Guardian

Thursday, July 29, 2010

15 cops arrested in 1 day

Fifteen police officers have been arrested in the past 24 hours across the country for crimes including armed robbery. Police General Bheki Cele made the announcement at the memorial service for the seven officers who died in a helicopter crash while responding to a robbery in Emalahleni last week.

Lieutenant General Arno Lamoer said six officers were arrested in the Northern Cape, two in Pretoria and one in Mpumalanga. He said their biggest concern is that six more arrested in KwaZulu-Natal were members of the elite tactical response team. “In 24 hours, 15 members the SAPS were arrested, including six of the tactical response team who are supposed to be the first point of call when things are tough,” Cele said. He warned crooked cops better mend their ways or they would end up in jail. Lamoer added, “People that we trained highly for the purpose of fighting crime are getting involved in things like this. That is totally unacceptable and we will not stop until we root out all criminals.” Lamoer said the message from the top brass is clear. “If you don’t feel like being in this organisation, pick up, walk and go. We don’t need criminals. We are here to fight crime and serve our community,” he said.

Cele said he is insulted that the police’s elite are among those arrested. He encouraged corrupt police to come clean in memory of the seven dedicated officers who died. The 15 SAPS members are in custody and will appear in court soon.

Source: Eye Witness News

South Africa to lose six kings and queens

President Jacob Zuma has asked traditional communities to embark on a path of "acceptance, healing and reconciliation" after a recommendation by a traditional leadership commission that South Africa lose six of its kings and queens. Zuma, who was announcing the findings of the Commission on Traditional Leadership Disputes and Claims, said it was essential that the six king and queenships come to an end in order to "correct the wrongs of the past". "The apartheid regime created its own traditional leadership at the expense of authentic leadership in some communities," Zuma said at a press conference in Pretoria. "It was how those in charge divided and disunited people. All we are doing is correcting the wrongs of the past."

The commission, established by then President Thabo Mbeki in 2004 to resolve disputes on "paramountcies and chieftaincy", concluded that South Africa has only seven legitimate kingships and recommended that the others lose their status on the death of the current incumbents. The seven that are recognised are the AbaThembu, the AmaXhosa and the AmaMpondo in the Eastern Cape, the AmaZulu in KwaZulu-Natal, the BaPedi ba Maroteng and the VhaVenda in Limpopo and the AmaNdebele in Mpumalanga.

The paramountcies that are not recognised are the Batlokwa ba Mota and the Kakwena baMopeli in the Free State, the AmaRharbabe, the Amampondo ase-Nyandeni and the AbaThembu base-Rhode the in the Eastern Cape and the Ndundza Mabhoko in Mpumalanga. "We urge all communities to accept the findings in the spirit of correcting the wrongs of the past as part of the country's nation building efforts," Zuma said. "It enabled us to restore dignity to the institution of traditional leadership. "The findings must help all affected communities to begin the path of acceptance, healing and reconciliation."

The commission will next make findings and recommendations on the next layer of traditional leadership -- the principal traditional leadership, senior traditional leadership and headmanship.

Source: Times Live

Wednesday, July 28, 2010

Why hasn’t Agliotti been charged with fraud?

One of the most fascinating aspects of the Brett Kebble murder trial in the South Gauteng High Court in Johannesburg is the fact that the accused, Glenn Agliotti, has not been charged with fraud relating to what appears to be a defence of assisted suicide. The evidence given by Agliotti in the corruption trial of former top cop Jackie Selebi, as well as both Michael “Mikey” Schultz and Nigel McGurk, appears to be that Kebble ordered his own killing. So much so that, as Schultz testified, he waited “patiently” for the gun to be fixed after it misfired on the first two occasions.

According to the latter two, Clinton Nassif, Kebble’s head of security, made all the arrangements. Unlike Stephen Mildenhall, who was purportedly an unwitting victim on a hit list, Kebble allegedly ordered his own hit. If that be so then — to a greater or lesser degree — this much is common cause. Yet that raises the question of why Agliotti, in the knowledge that this was aimed at deriving financial benefit, has not been charged with fraud as well.

The crime itself consists of the unlawful and intentional making of a misrepresentation, knowing it to be false, to the prejudice or potential prejudice of others. In this case the misrepresentation consists of holding out that Kebble was murdered by hijackers or hitmen when all along the parties knew it had been arranged by Kebble under controlled circumstances. At least if the version being given is true. The prejudice primarily being suffered by the insurance companies who paid out on a murder charge — noting of course that potential prejudice would suffice to sustain the charge.

Of course the fact that South African law does not recognise assisted suicide will be of concern in terms of the civil case rather than the criminal one. In this regard if a policy pays out on murder then in terms of South African law — as it presently stands — Kebble fits that description. The insurers can jump up and down all they like but as far as the civil court is concerned the Brett Kebble matter is murder because we don’t recognise assisted suicide. It will be interesting to see the court’s reaction if such a matter finds its way to some poor unsuspecting judge.

In terms of the criminal case, however, the intention was clear — make it look like murder in order to derive financial benefit but claim assisted suicide if caught. Murder is the unlawful and intentional killing of another human being. To exclude unlawfulness one has to show grounds of justification of which assisted suicide is presently not one. Intention in this case is clear and need not be canvassed here. That it is the killing of another human being speaks for itself.

In Lawrence Hodes, Agliotti has an outstanding counsel and it is worthwhile for junior counsel to attend court to see how he approaches these issues.

Source: Mail & Guardian Thought Leader - Michael Trapido

The ANC Turns on the Press (Again)

The African National Congress, perhaps buoyed by a renewed sense of public confidence in the wake of the World Cup, is, again, moving against one of our fundamental democratic freedoms.

Amidst a new flurry of indignation, paranoid and hysterical in equal measure, various representatives of the ANC have made it quite clear that they consider some of the criticisms of the party and its leaders that have appeared in the media to be unacceptable. This is not the first outbreak of this sort of hostility to press freedom within the ANC but it needs to be taken seriously because it’s backed up with real intent.

The most solid aspect of that intent is the Protection of Public Information Bill, which would allow more than 140 different bodies, from municipal managers up the Minister of State Security, to withhold information. It would also criminalise whistle blowing and effectively give the state the power to stop uncomfortable media investigations. By all accounts the Bill would, if passed into an Act, be unconstitutional and would go the same way as the Slums Act if confronted with a challenge in the Constitutional Court.

To compound the situation the ruling party has returned to its proposal, first put forward in 2007 and then abandoned after huge pressure, for a media tribunal that could, on its own account, result in journalists being imprisoned, fined and fired. As in 2007 statements from the ANC, many of which are patently anti-democratic, are quite clear that their central concern is how the party and its leaders are represented.

The South African Communist Party has supported the call arguing that the Press Ombudsman is inadequate and that the alternative opportunity for redress, the legal system, is not affordable to most South Africans. At least one newspaper editor takes the view that the ombudsman is, indeed, understaffed and underfunded but if this is the case it hardly justifies an inquisition aimed at stemming critique of the ruling party. On the contrary the solution would be to give the ombudsman’s office the support it needs or to propose a better alternative. The SACP’s second point is certainly fair but to point to the class bias of our legal system to justify a call for an inquisition by a ruling party that is actively entrenching inequality is, as the Communist Party often does, to misuse left wing critique of our society to try and legitimate right wing agendas.

Blade Nzimande, himself a recent target of media criticism, has argued that the confession by the former Cape Argus journalist Ashley Smith that he had taken money and privileged access to tenders to report favourably on Ebrahim Rasool indicates the necessity for a media tribunal. But Nzimande says nothing at all about the fact that the ANC has seen fit to give Rasool a prestigious and important diplomatic posting. The SACP is, to its credit, raising the issue of corruption within party structures and in a grassroots campaign that has had impressive moments. But that doesn’t change the fact that it is fundamentally dubious for Nzimande to call for the ANC to arrange for an inquisition into the media on the basis of a case that reveals corruption in both the party and the newsroom of the Cape Argus. Why not a tribunal to look at corruption in the party? To use one case of corruption to besmirch the reputation of the whole of the fourth estate, and to do so in a manner that aligns with the out and out political authoritarianism of someone like Jackson Mthembu and his clear desire to subordinate the media to the party, puts the SACP firmly in the camp of the authoritarian nationalists.

The third component of the ANC’s new strategy towards the media seems to be The New Age, the new newspaper to be published by the Gupta brothers. The paper will be ‘broadly supportive of the ANC’. There’s nothing wrong with a newspaper that aims to be supportive of a particular political party or idea but there is something very wrong when there’s a strong suspicion that the owners of that newspaper are involved in questionable business relations with the President and his family. Is this not potentially something very much like a supersized version of the Ashley Smith and Ebrahim Rasool nexus? Nzimande’s silence on this score is telling.

There is no question that the media is imperfect. Anyone who has been part of a project or event that makes the news will attest to the fact that most reports carry some errors. This is not, at all, a unique failing of the South African media or even of the media in general. A large proportion of the academic articles that deal with current events are also riddled with errors of fact. Governments, human rights organisations and businesses all get it wrong fairly often.

The tendency to error doesn’t have to be explained through the language of conspiracy. While there are better and worse ways of doing things, and while we certainly need to strive for the former, the fact is that some degree of error is inevitable. Error is part of the inevitable messiness of the world and a democratic view needs to understand that and to respond to it by preserving as much openness with which to respond to error as is possible.

Like all of us, journalists make mistakes and carry prejudices, but unlike most of us, journalists have to negotiate their fallibility under tight deadlines and in the public gaze. Around the world the pressures that journalists are under have been greatly exacerbated by newspaper owners that want to wring as much profit as they can out of their businesses with the result that newsrooms are often chronically underfunded. In South Africa journalists also work in a society structured in all kinds of systemic unfairness and in which all kinds of power relations are fundamentally unequal.

But no media tribunal will change any of this. On the contrary if it follows the logic of Jackson Mthembu all it will do is to send a clear message that the state does not consider certain forms of critique to be acceptable.

The ANC is as engaged as any other powerful constituency in society in trying to win the media to its point of view. There are times when it is successful and times when it is not. But it is certainly not just the ANC that gets the short end of the stick from time to time. Some of the poor people’s movements that are at the coalface of building real resistance to the ANC have, on occasion, been subject to entirely scurrilous treatment in the media. In fact popular protest is routinely treated through a prejudicial lens in which poor people are assumed to be irrational, violent, criminal and a threat to bourgeoisie society.

Among the many political clichés that deserve their regular repetition is the truism that being elected into power doesn’t make one a democrat. It’s equally important, given the legalistic nature of some of the responses to the ANC’s return to outright hostility to a free press, to repeat the point that a narrow and legalistic adherence to the letter of democratic obligations is hardly a meaningful fidelity to their spirit.

On the contrary a real fidelity to the spirit of democracy requires a genuine commitment to diffuse power and to engender multiple sites of power. If the ANC was committed to the democratisation of society it would be working to democratise the media by legislating for real diversity, generous subsidies for autonomous community media and serious state support for genuinely public broadcasting. What they are doing, instead, is trying to bully the media into submission to an increasingly authoritarian and conservative regime.

Source: The South African Civil Society Information Service: Richard Pithouse

Has Enver Daniels met Jeff Radebe lately?

Paul Hoffman from the Institute for Accountability wonders whether government talks to government when it sets about messing with the free flow of information. It is hard to believe that the Minister of Justice, Jeff Radebe, and the Chief State Law Advisor, Enver Daniels, are part of the same administration working together toward the realization of the founding values of the country.

Ensuring “accountability, openness and responsiveness”, as section 1(d) of the Constitution puts it, is at the core of their mission.

The Minister, addressing the SANEF meeting last weekend, put it well when he said: “As government we will not treat you the same way as the apartheid regime treated Nat Nakasa?we will not enact laws detrimental to your cause, including the current legislation being debated?I will ensure that any law that comes into being must be in conformity with our Constitution.” Quite so.

Now contrast the contribution by Daniels this week to the debate on the contentious Protection of Information Bill in which he, unusually so, personally participated. He dismissed critics of the bill as “emotional and hysterical” before delivering himself of this gem: “While they [the critics] raise valid points, we don’t agree with them.” He disagrees with “valid points” at his peril if, as seems likely, the disputed provisions of the bill are held up for constitutional scrutiny in Court.

Among the valid points raised are those complaining that the bill does nothing to ensure that which the state is bound to ensure, namely, compliance with the principles of accountability, openness and responsiveness. Widely framed definitions, especially that of “the national interest” (which can cover a multitude of sins and has no place in the bill), and the discretion given to officials to be judges in their own classificatory cause ought to be giving cause for pause, not an unseemly rush to finalize the bill by September, meanwhile rubbishing carefully considered submissions made to parliament by highly qualified and very learned critics.

In an open democracy protection of information can not be allowed to trump access to information, the latter being guaranteed to all in the Bill of Rights. Reasonable and justifiable limitations on access to state information in the interests of national security and in accordance with the constitutional governing principles set out in section 198 ought to be kept to a minimum in the quest for transparency.

Daniels ought to know that the entire public administration is constitutionally enjoined to foster transparency by “providing the public with timely, accessible and accurate information” [section 195]. He is hardly encouraging the public to participate in policy making (another principle governing him) by attacking the critics of the bill rather than dealing properly with the “valid points” he concedes they make. He does his high office and the Minister a disservice by playing the man instead of the ball/bill.

Paul Hoffman SC

Director, Institute for Accountability in Southern Africa

Monday, July 26, 2010

Boxer reveals Kebble's final moments

A boxer, R2-million and two botched "assisted suicide" attempts emerged in the Johannesburg High Court on Monday as details of mining magnate Brett Kebble's murder.

The state's first witness, called by Gauteng deputy director of public prosecutions Dan Dakana, was professional boxer Michael Schultz, who described how he shot and killed Kebble. "I leaned out the [car] window, pointing the firearm at him... He just lifted his shoulder, his right shoulder, and looked in front... I aimed at his head and pulled the trigger, but the weapon did not discharge," Schultz told the court, describing the night of September 27, 2005.

He was testifying as state witness in the trial of convicted drug trafficker Glenn Agliotti, who faced four charges, two related to Kebble's murder. After the gun - which Schultz kept in a kitbag - failed to discharge the first time, he and two other accomplices turned state witnesses, Faizel Smith and Nigel McGurk, drove off. After inspecting the weapon, they returned and found Kebble in his vehicle and tried again. "I leaned out of the window and pointed the firearm... Once again the gun did not discharge."

Schultz said he then told Kebble to wait for him. The trio drove away for the second time. He inspected the gun. They made a U-turn and returned to where they had left Kebble. However, Kebble had driven off. They stopped their car and saw him coming towards them. They flashed their headlights at him. He made a U-turn and "stopped hard" next to them. "I could see the disappointment in his face, he gave me a look like to say 'get this over with, you're putting me through hell'," Schultz said.

Schultz leaned out of the window and this time aimed for Kebble's body. "I pulled the trigger, this time the gun fired. I kept firing." He could not remember how many times he shot, but recalled that one of his instructions was that Kebble should not suffer.

The three then drove away. Schultz looked back and saw Kebble's car rolling forward and hitting the pavement. They sped from the scene in Melrose Street in Johannesburg to Smith's panel-beating business, where Smith cut the gun into pieces and said he would dispose of it. The next morning Schultz got up and went to gym.

During cross-examination, Agliotti's lawyer Laurence Hodes SC put it to Schultz that his client "never ever conspired with you to aid the murder of Roger Brett Kebble". To which Schultz replied: "No, he didn't." Hodes then asked Schultz whether he agreed that Agliotti had not "in any manner" killed the mining magnate. Schultz replied: "I agree." He asked Schultz whether, to his knowledge, Agliotti had received part of the R2-million offered by Kebble to help him die. "Not from the R2-million, no, not to my knowledge," he replied.

Schultz could gain indemnity from prosecution for his role in the murder if the court finds his testimony truthful.

Agliotti faces two counts of conspiracy to commit murder, a charge of attempted murder and one of murder. The first count is conspiracy to commit the murders of Mark Bristow, Jean Daniel Nortier, Mark Wellesley-Woods and Stephen Mildenhall. The second count is the attempted murder of Stephen Mildenhall. The last two are conspiracy to murder Kebble and Kebble's murder.

Judge Frans Kgomo adjourned the matter until Tuesday morning.

Source: IoL

Sunday, July 25, 2010

DG exodus an outrage, says Nehawu

The National Education Health and Allied Workers Union (Nehawu), is "deeply outraged" about how many directors-general have been fired, suspended, resigned in questionable circumstances or threatened to resign in the past 18 months. The public sector union was reacting to the dismissal of Communications Director-General Mamodupi Mohlala by Communications Minister Siphiwe Nyanda on Friday after "some troubling and discomforting reports" of the minister's alleged interference in the issuing of tenders in the department.

Nehawu general secretary Fikile Majola said the "centre does not hold", intimated that President Jacob Zuma must lead and pointed out that the directors-general were in a state of flux, which bode ill for service delivery. "We expect better answers and compelling reasons about this (Mohlala) dismissal than the tired old line of 'broken trust' because we want to know what broke the trust," said Majola.

The past 18 months had seen the departure of directors-general Njabulo Nduli, Pam Yako, Jimmy Manyi, Thozi Gwanya, Portia Molefe, Vuyi Nxasana and Mohlala.

Agriculture, Forestry and Fisheries Minister Tina Joemat-Pettersson told senior officials in the department this week that Nduli had gone on leave, a month after she criticised her director-general in Parliament for the department's regular production of substandard briefing documents. While sources said Nduli would not return, the ministry had refused to confirm or deny the termination of her contract. Dr Moshibudi Rampedi, who allegedly applied for a Food and Agriculture Organisation post last month, was appointed acting director-general this week.

Water Affairs Director-General Pam Yako has been on suspension for a year since being placed on special leave by Water and Environmental Affairs Minister Buyelwa Sonjica pending the outcome of an investigation of alleged procurement irregularities. The auditor-general has since found that a contract with a service provider for information technology services was extended "on numerous occasions" to 49 months, and grew in value by 587 percent in the process to more than R1-billion. The extensions contravened the department's procurement and delegation of authority regulations.

Labour Director-General Jimmy Manyi was suspended by Labour Minister Membathisi Mdladlana recently, apparently because of comments he made during an official meeting with Norway's ambassador to South Africa Tor Christian-Hilda. Soon before his suspension, Mdlalana had apparently told Manyi to choose between his job as director-general and the presidency of the Black Management Forum.

Land Reform Director-General Thozi Gwanya's departure from his post at the end of this month was confirmed by Rural Development and Land Reform Minister Gugile Nkwinti this week. The confirmation that Gwanya's contract had been "redetermined" came after initial denials by the department.

Public Enterprises Director-General Portia Molefe resigned in September. It is unclear why she left.

November saw the ousting of acting Women, Youth, Children and People with Disabilities Director-General Vuyi Nxasana by Minister Noluthando Mayende-Sibiya, apparently after a breakdown in the relationship between her and the minister who was alleged to be loath to make crucial decisions, act on proposals or stick to ministerial handbook guidelines.

Nehawu said it found the situation "troubling, unsustainable and unacceptable", adding that it did not bode well for the stability of governance and service delivery. "The merits and demerits of these suspensions, resignations and dismissals aside, the message that comes out is that the centre is not holding in our government and that is a disturbing state of affairs," said Majola. "The biggest casualties of this chaotic situation is the citizens of this country who expect, and have been promised, service delivery... this presents a challenge when it comes to the implementation of the five identified priorities," said Majola. He emphasised that the country could ill afford the leadership vacuum created by the absence and the uncertainty surrounding these top officials because it demoralised the entire workforce in the departments and created uncertainty and instability. "Nehawu calls on the government to act swiftly in addressing this unacceptable situation of government departments that operate without stable leadership and also investigate the reasons that led to this spate of resignations and dismissals. "Service delivery should be a priority for all of us and... the government needs to start providing clear decisive leadership before it's too late," said Majola.

Source: IoL

Gautrain company 'hijacked' at Cipro

Politically well-connected "entrepreneurs", including a senior ANC official, have "hijacked" a company that landed a R220-million deal to build the Gautrain electrical system, by exploiting cracks in the Companies and Intellectual Property Registration Office (Cipro).

This comes as a red-faced Cipro introduced new measures last week to prevent people registering as directors with fake identity numbers and no documents - as Sunday Times did two weeks ago. Since then, many people have come forward, claiming loopholes at Cipro allowed fraud to be perpetrated against them, citing instances of tender fraud and empowerment fronting. In one case, the 28-year-old Roodepoort engineering company Tension Overhead, which landed the lucrative Gautrain contract, said Cipro loopholes allowed it to be "hijacked". Here, Advocate Matane Mphahlele simply appointed himself director and managing director of Tension Overhead at Cipro and "suspended" the existing bosses. Then he went to Absa and tried to take over the company's bank accounts, based on his claim that he owns 60% of the shares - a claim the company is disputing in court proceedings.

Mphahlele also simply "deregistered" two of the company's existing directors at Cipro without providing any board resolution or resignation letters, and appointed three of his associates as directors. Both sides have laid criminal charges. The "hijackers" are politically well connected. Mphahlele served as a legal director in the Department of Public Enterprises, while his new directors include ANC member and National African Federated Chamber of Commerce (Nafcoc) deputy secretary-general Kentse Makgae, and Limpopo treasury official Thomas Mphahlele. Makgae confirmed she was a new director, but referred questions to Mphahlele.

Directors whom Mphahlele bumped from the board include BEE heavyweights Buhle Mthethwa, a former Nafcoc president, and Parmanathan Mariemuthu. Mariemuthu says minister of trade and industry Rob Davies should take responsibility for this. "You can go to bed knowing you own something, and wake up having been dispossessed," he says. "How can you have Davies telling people to invest in this country when this kind of thing can happen?"

Tension Overhead director Coenraad Boschoff is astounded that "it can be that easy" to hijack a company. "(Mphahlele) no longer has any shares in the company, yet he convinced Cipro to register him as a director. On this basis, I could simply go to Cipro and register myself as a director of Sasol tomorrow," he said.

Alarmingly, Cipro confirmed as much. Cipro's acting registrar Joey Mathekga admitted that anyone can register as a director of any company today, and Cipro only then launches an investigation. "There is no existing legal framework that says you can't do this," he says.

After Cipro registered Mphahlele as a director, he called a "shareholders meeting" on June 22 where, according to the minutes, he "appointed himself the chairman of the board of directors, and also joint managing director". Though Boschoff arrived and objected to the meeting taking place, Mphahlele brushed him off. Instead, Mphahlele's minutes say it "was resolved" that he and his directors get access to Tension Overhead's bank account. Armed with the Cipro registration documents, Mphahlele and Makgae went to Absa's Horizon branch and demanded access to the account - which was denied. But Mphahlele claims it is "very unfair" to portray him as a company "hijacker". "I have the right to the 60% ... those directors were appointed in a general meeting, where the rule of the majority prevailed," he says. "I appointed myself chairman of the board because I am representing the majority interest."

But Tension Overhead's bosses say he doesn't own those shares. Mphahlele's claim is based on a 2003 deal that gave him 30% of the company. But Boschoff said Mphahlele sold this stake to African Heritage Investments in 2004 and resigned as a director. Boschoff said Mphahlele was "double-counting" by claiming the initial sale agreement gave him the first 30%, and the share certificate he got as part of that deal gave him another 30%. "The fact is, there was only ever one deal to sell him 30%, and these shares were ultimately taken over by African Heritage, as that sale contract clearly shows," he says. Mphahlele also did not part with a cent for that 30%, but he was due to pay R1.5-million for those shares out of dividends that the company would declare. However, it is surprising that Cipro allowed Mphahlele to register new directors, and "resign" others, while the shareholding dispute has yet to be decided in court. The Companies Act does not allow someone to be "removed" as a director without resigning, or after a proper board process.

Asked how he was able to do this, Mphahlele said "those people were disqualified because they don't have qualification shares as required by the Companies Act, so we don't have to use those procedures". But the Companies Act says this only applies if the company's articles of association requires directors to hold shares - and Tension Overhead's do not. While Cipro could not explain how this incident happened, it said it was " investigating" the matter.

Source: Times Live

New law may force reporters to reveal sources

The government was finalising proposals regarding a section of the Criminal Procedure Act which could force journalists to reveal confidential sources, Justice Minister Jeff Radebe said in Johannesburg on Saturday night. Speaking at the annual general meeting of the SA National Editors' Forum (Sanef), Radebe emphasised that the government would not treat the media in the manner it had been treated during the apartheid years. "As a minister of justice I want to assure you that any [new] law must be in conformity with the Constitution," the minister said.

Radebe was speaking against the backdrop of increased concerns at the ANC's proposed introduction of a state appointed media appeal tribunal to adjudicate complaints against the press. Radebe said the ANC had been deliberating on various issues in preparation for its national general council meeting in Durban later this year. "One of these is that of information communication technology and the media." Referring to an ongoing discussion of Section 205 of the Criminal Procedure Act and other sections affecting journalists, Radebe said: "We are in the process of finalising proposals in this regard."

The SA Law Commission would also soon present its finding of research on this and other laws that the media found problematic.

Source: Mail & Guardian

Saturday, July 24, 2010

Communications director 'released' from contract

The director general of the department of communications Mamodupi Mohlala has been "released" from her contract with immediate effect. "In the process of trying to find solutions to the challenges, it subsequently became apparent that trust between the minister [Siphiwe Nyanda] and the director general has broken down irretrievably," said spokesperson for the communications ministry Tiyani Rikhotso in a statement on Friday afternoon.

Rikhotso said Mohlala was not released from her contract because of tender issues mentioned in the media. He said the department recently faced a number of challenges "relating to internal processes and procedure". Nyanda and the deputy minister Dina Pule met the director general to resolve the issues as they threatened the day-to-day operations of the department and negatively affected its image. In the interests of the department, the staff and the government, the minister concluded that it would be best to release Mohlala from her position as director general from July 23, he said.

Harold Wesso was appointed the acting director general to ensure that the work of the department was not negatively affected. The Mail and Guardian reported last week that Wesso was appointed as an acting director general for two days after a fall-out between Nyanda and Mohlala. Nyanda last week dismissed reports that he was suspending "Mohlala" -- following repeated disagreements over tenders she refused to sign -- as "false, spurious and malicious". Nyanda reportedly issued an instruction that all tenders for the department be cancelled until they had been "discussed and approved by the minister". It was understood that Mohlala warned Nyanda this week that removing the administration of tenders from her would violate the Public Finances Management Act. The saga with his director general is the latest landing Nyanda in the media spotlight.

In March freight group Transnet dismissed two senior managers for irregularly awarding a R55-million tender to a company allegedly linked to Nyanda.

In a separate case, the Democratic Alliance alleged that a company partly owned by Nyanda was unlawfully awarded a R67,8-million tender by the Gauteng roads and transport department.

Earlier this year Nyanda was accused of indulging in a "caviar and silk" lifestyle after allegedly spending thousands of rands on hotel stays at the luxurious Mount Nelson and Twelve Apostles hotels and buying two R1,2-million BMWs for his work.

Congress of South African Trade Union leader Zwelinzima Vavi singled out Nyanda when criticising the government's failure to act on allegations of corruption in Cabinet. Vavi had said reports that Nyanda had spent half-a-million rand on hotels in Cape Town should be probed, which landed him in hot water with its ally in the ruling alliance, the ANC.

Source: Mail & Guardian

'Dead babies' hospital: Premier shocked

Syringes being used more than once, babies lying in soiled cribs and nurses chatting instead of looking after premature infants. These are just some of the shocking claims made by parents whose babies died at a Joburg hospital earlier this year. It took one meeting with the parents of the six babies who died at Charlotte Maxeke Johannesburg Academic Hospital to convince Premier Nomvula Mokonyane that an investigation into staff negligence needs to be reopened.

Mokonyane and MEC for Health and Social Development Qedani Mahlangu sat for two hours with five parents of the six babies who died at the hospital in May. Earlier in the week, Mahlangu released a report which found the babies had died from a potent version of norovirus and that no hospital or staff negligence could be found. The MEC did say there was a problem with overcrowding and a shortage of materials, such as roller towels for nurses to dry their hands.

Mahlangu said she took responsibility for what happened onto her own shoulders. She did not give the public the actual report, but rather a summarised version. On the same day, a separate report presented in Parliament gave very different results. The second report, which was presented to the portfolio committee on health, said laboratory tests found klebsiella pneumonia in some of the sick babies and in their milk bottles.

The parliamentary report found norovirus and klebsiella in most of the 17 sick babies who were in the ward. The report also said the milk feeding room needed attention and that bottles and cleaning brushes were found to be old and rusty. Mokonyane told the media that meeting the parents was an eye-opener, and they were surprised to hear parents' observations about the attitudes and conduct of the nurses. "We will be investigating whether there was negligence of the team on duty," the premier said. "If we conclude that there was negligence, we will take appropriate action and make sure there is no repeat of bad behaviour." She said the initial report released earlier this week was a clinical report compiled by doctors, which they had accepted as final, but after talking to the parents, they would investigate claims of negligence further.

Mokonyane said parents had noticed a lack of hygiene, bad attitudes from nurses and multiple use of instruments that are supposed to be used only once. She said the parents had told her they had come into the ward and found children had vomited and had not been cleaned; syringes that were used more than once; and instead of telling them what was wrong with their children, nurses refused to speak to them because they were eating chips and busy gossipping.

The premier said the department had told the parents they had the right to sue for compensation, but the department could not offer them money without going through the courts. "No amount of money can compensate for life. I think the parents' biggest concern is that we must make sure this never happens again. We have learnt from this and need to make sure that this never happens again," she added.

Source: IoL

Friday, July 23, 2010

Graft 'unchecked' without Scorpions

There has been a significant drop in new corruption cases by the police since the Scorpions were closed down, according to a report from the influential Organisation of Economic Cooperation and Development (OECD).

The OECD this week slammed South Africa's corruption-fighting efforts, expressing concern about the ability of the Hawks to take over the Scorpions' functions. The Scorpions were closed down early last year after the ANC decided at its December 2007 national conference in Polokwane that members of the elite unite should be incorporated into the South African Police Service. On Monday the OECD released its report on South Africa's ability to curb corruption, concluding that the country should improve on its investigation and prosecution of bribery in international business deals.

In July last year the Hawks, a police unit that replaced the Scorpions, was launched and 288 cases were handed over for finalisation. In the past 12 months the Hawks unit (effectively an amalgamation of the police's organised crime and commercial branches) has focused more on violent and drug-related crimes than on corruption.

The unit has been quiet about high-profile corruption cases transferred to it from the Scorpions, including the arms-deal probe. According to the OECD's report, the organisation was assured by South Africa that no investigations had been dropped when the Scorpions unit was disbanded and that the Hawks unit was equipped to deal with the outstanding cases. But the organisation expressed concern about cooperation between investigators and prosecutors now that they are no longer based in the same unit.

The Scorpions' "troika" model of investigation, in which investigators, prosecutors and analysts worked together on cases, won international praise but it was done away with when the unit was disbanded. The Scorpions' biggest critics, including the ANC, disgraced former police boss Jackie Selebi and Communications Minister Siphiwe Nyanda, argued that that method of investigation was problematic and prosecutors should at all times be acting independently when going to court.

But the OECD's report confirms that a model in which prosecutors are involved in complex graft investigations from the outset is standard international practice. "The [OECD's] lead examiners ... remain concerned about the level of interaction between investigators and prosecutors and the need for oversight, and that the cooperation demonstrated between such personnel, such as it existed under the DSO [the Scorpions], has been lost with the restructuring of law enforcement. This issue should continue to be monitored," the report reads. According to it, South Africa is investigating only four cases of alleged bribery involving local officials and foreign companies. It "remains concerned" about the resources dedicated by South Africa to fighting foreign bribery and the level of skills available in the police and national prosecuting authority (NPA).

Ironically, the NPA's specialised commercial crimes unit, which is specifically tasked with dealing with complex matters of bribery and fraud, impressed the OECD. Earlier this year Menzi Simelane, the NPA boss, tried to disband the unit, but he was stopped by Jeff Radebe, the justice minister, after a public outcry.

The report further criticises the police for not following up on media reports about alleged bribery. Although police crime intelligence monitors media reports, "allegations of foreign bribery have not served as a basis for opening an investigation ... the [OECD] is concerned that despite the existence of such publicly avail-able allegations concerning foreign bribery cases ... neither the SAPS nor the NPA took the initiative to look into these allegations at an earlier stage".

The OECD also criticises South Africa for its lax response to international requests for mutual legal assistance and suggests that safeguards to ensure the independence of investigative and prosecutorial powers should be strengthened.

Simelane came under fire when he was justice director general for deflecting requests by German prosecutors for assistance in their investigation of the arms deal.

Source: Mail & Guardian

Helicopter crash kills seven police

A police helicopter crashed near Witbank on Friday, killing seven officers on board, as it flew to the scene of a suspected hostage-taking north-east of Johannesburg, officials said.

Police spokesperson Sally de Beer said the officers from the National Intervention Unit were leaving Pretoria in the chopper to help local police in the town of Witbank when the accident happened. "There was a business break-in at about 5am. Witbank police responded but they were shot at by the suspects who also said they had a hostage with them," she said. De Beer said two helicopters with a total of 12 people were sent to the scene, but one of them crashed. "There was a thick mist in the area at the time of the crash, but we don't want to say that is the reason it crashed until we finish our investigation."

Seven people were arrested over the break-in, but police discovered that no hostage had actually been taken, she said.

A spokesperson for ER24 private emergency services, Werner Vermaak, said paramedics who arrived at the scene found the helicopter burnt beyond recognition. "The local fire department and rescue services extinguished the flames. All of the occupants were already dead and there was nothing that paramedics could do," said Vermaak. National police chief Bheki Cele told radio 702 that he was in shock. "It is a really black Friday for us," Cele said. "It's a very devastating and painful situation. I personally know them all too."

Source: Mail & Guardian

SAA vs Ngqula: Shocking new details

SAA paid out bonuses of R60,7-million to 153 managers over three years -- at an average of almost R400 000 per employee -- as part of a retention scheme introduced by embattled former chief executive Khaya Ngqula. This is revealed in court papers served on Ngqula this week, in which SAA claims it suffered a loss of R27,4-million at Ngqula's hands for ­overspending on bonuses.

The Mail & Guardian has in its possession the summons and attached documents served on Ngqula on Tuesday. This is the first of two claims by SAA against him. The second summons has yet to be served on him and will focus on Ngqula's alleged irregular expenditure of R3.3-million on entertainment and international junkets for his friends. Court papers also reveal:

* Ngqula was given a company BMW 740i when he was appointed, for which SAA covered "all running costs";

* Ngqula's wife, former beauty queen Mbali Gasa, was allocated full-time VIP protection by SAA from 2005 because of the "reasonable risks" that he faced as chief ­executive; and

* The retention bonus scheme was introduced to keep talented SAA staff, who were leaving because of factors including "economic growth", the impact of HIV/Aids and "cultural misfit".

Ngqula was fired by the SAA board in March last year. On Tuesday the board chairperson, Cheryl Carolus, announced that the state-funded airline would reclaim R30,8-million from him for alleged wasteful expenditure. She announced that R27,4-million of that amount was due to retention bonuses paid to managers, but did not reveal the full extent of the scheme designed by Ngqula and the head of human resources, Bhabhalazi Bulunga. According to the details of SAA's claim, the airline's remuneration committee approved Ngqula and Bulunga's request on December 7 2007 for the implementation of a retention scheme. It was designed to keep key, talented staff after a "restructuring bonus" failed to stem the "departure of primarily skilled employees" from the airline. The scheme lasted for three years and could pay managers up to 100% of their total 2007 cost of employment over that period.

A "strictly confidential" document calculated the cost of implementing the scheme at R33,3-million from 2007 to 2010. But, according to the claim, SAA paid out bonuses of R60,7-million under Ngqula. The difference between this amount and the approved R33,3-million is what the airline is now claiming from him.

SAA will argue in court that Ngqula breached his fiduciary duties by overspending on the scheme and failing to adhere to stipulated financial limits. He "failed to exercise reasonable care and skill in fulfilment of his functions and duties" when he implemented the scheme. Billy Gundelfinger, Ngqula's lawyer, confirmed this week that a summons had been served on his client and said Ngqula would defend the allegations. Attempts to contact Ngqula and his wife directly were unsuccessful, but Gundelfinger said the matter would be aired fully in court.

Ngqula's employment agreement with SAA is included in the court papers and shows the benefits he enjoyed as chief executive. They included the use of a BMW 740i company car, an annual incentive bonus of 80% of his total cost-to-company package (R5-million at inception) if he achieved performance goals and complimentary flight tickets for him and his family. His contract also made provision for security services "to protect the president and CEO [Ngqula] and his family from any reasonable security risks that may arise" during Ngqula's tenure. "It is recorded that at the signature date of this agreement the spouse of [Ngqula] has been allocated VIP security protection from Monday to Friday and on weekends." On Tuesday Carolus accused Ngqula of hampering the KPMG investigation, saying he was not cooperative and that he was preventing the airline from discovering who might have helped him misspend millions of rands at SAA. After the report was delivered to the SAA board, it requested a meeting with Ngqula so that he could give his side. But Ngqula stipulated conditions that were not acceptable to the board and the meeting did not take place.

SAA's previous board requested the KPMG forensic investigation after transport unions presented allegations to the board. The investigation is said to have cost SAA R15-million. Carolus said that the report had been handed to the police commercial crimes unit to ascertain if there was enough evidence to lay criminal charges against any current or former employee of SAA, including Ngqula. At Tuesday's briefing it was revealed that SAA under Ngqula spent R141-million on sports sponsorships when only R3-million was budgeted for. These included a R120-million sponsorship of the Association of Tennis Professionals (ATP) and a R21-million sponsorship with Argentinian golfer Angel Cabrera. Ngqula is also accused of spending R3,3-million without authorisation on leasing hospitality suites in four different sport stadiums in the country. The KPMG report alleges that these suites were "hardly utilised".

Another allegation involves spending R500 000 on junkets for friends to international sporting events such as the 2006 Soccer World Cup in Germany, the 2007 Rugby World Cup in France and a 2008 ATP tennis ­tournament in Monte Carlo. The forensic investigation has raised questions about a jet fuel tender that was awarded to a company in which Ngqula allegedly has an indirect interest. KPMG further found the awarding of a tender for in-flight catering was irregular. The tender was awarded to French catering group Servair, but questions were raised about the group's local partner, run by Vusi Sithole, an associate of Ngqula and a business partner of his wife. Servair has pulled out of the tender and SAA cancelled its contract, but Sithole's consortium is disputing this in court.

Sithole denied any impropriety this week, saying his company was chosen after a two-year evaluation process and had complied with all requirements of the tender. "After the award of the tender we continued to work with SAA on the implementation process up until it was interrupted by the investigation," said Sithole. "We are confident on our part that we complied with all the requirements of the tender and as far as we know our group did not compromise the process in any way."

Despite instituting the investigation into Ngqula SAA's former board, under the chairmanship of Jakes Gerwel, also came in for criticism this week when Carolus asked: "How did Mr Ngqula do this under the watchful eye of the board?" But she told Parliament's portfolio committee on public enterprises that the current board had no plans to extend KPMG's brief.

Source: Mail & Guardian

Unease over Zuma's Gupta ties

Concern is growing in political and business circles about the relationship between President Jacob Zuma and the Gupta family. Zuma has known the family, headed by three brothers -- Atul, Ajay and Tony -- since he was deputy president in 2002, but their ­relationship has blossomed since he became president.

Government ministers and business leaders became suspicious of the relationship during Zuma's state visit to India, where he was seen spending a disproportionate amount of time on meetings with the Guptas. "It was clear that they had organised things beforehand and took charge of at least some parts of his diary," one member of the business delegation that accompanied Zuma told the Mail & Guardian.

It is understood that some of the government officials who joined Zuma on the visit were questioned by their Indian counterparts about the Guptas' relationship with the president. "They were asked why the president is hanging around with these guys; they don't have a great reputation in India," a government source said. Business leaders told the M&G that the state visit underlined the special relationship between Zuma and the Guptas, which gave the family favoured access.

More than 200 business people joined Zuma on the trip as part of a delegation organised by the department of trade and industry. Some complained that they only had one opportunity to meet Zuma and that this was during a photo­ opportunity before a function. "Several of us were pissed off that we were not included. During the two-day programme, Zuma was kept separate and the only people allowed to be with him were the Guptas and [Kumba Iron Ore president] Lazarus Zim," said one of the business delegates. Another source who accompanied Zuma claimed that the president had attended meetings with prominent Indian business people that had been organised by the Guptas. Only selected South African business people, some of whom are said to be Zuma's known funders, attended these engagements, while other business people were sidelined, the source said. "It was clear that the family wanted to use Zuma to establish connections for themselves. We expected to meet potential investors, but it soon became clear all the deals were done already; we could just pick up the crumbs that fell from the main table," one businessman said.

The M&G sent questions to the presidency and the department of trade and industry, but the responses shed no light on who was responsible for Zuma's schedule and whether some meetings were arranged by the Guptas. On the state visit Ajay Gupta represented the family company, Sahara Computers, while Tony Gupta represented mining company Mvengela, of which he is director. Zuma's son, Duduzane Zuma, also represented Mvengela on the trip.

Gupta family spokesperson Gary Naidoo said that all meetings were arranged by the relevant government departments. Another source familiar with the family said that the Guptas were not particularly prominent in India and had built most of their wealth in South Africa. They now wanted to leverage their South African status to gain business in India. "They entirely grew in South Africa; they did not have much to speak of in India," said the source. This trip could have helped them gain access to people in India which they could not have seen otherwise," the source said. The Guptas' influence in cricket "helps to build links in India", he said. The family was known to have helped bring the Indian Premier League (IPL) to South Africa after security fears prevented it from taking place in India.

A civil society source in Mumbai confirmed that there was confusion when the Guptas started Sahara Computers, as a company of the same name operates in India. "They couldn't push their brand in India because the other Sahara is just so much bigger," the source said.

The presidency said the trade department prepares the business delegation lists and works on that delegation's programme during state visits. "The business delegation normally has its own programme, which runs parallel to that of the government delegation," the department said. "The [department] normally runs workshops with the business delegation and there is normally a business forum which is addressed by the heads of state of the two countries. The Indian state visit had more government-business interactions organised by the [department] to boost trade relations."

The visit also saw the relaunch of the India-South Africa CEOs' Forum, chaired by Africa Rainbow Minerals chief executive Patrice Motsepe. In addition to meeting the leader of the Congress Party, Sonia Ghandi, Zuma also met the leader of India's official opposition party, the Bharatiya Janata Party. The Congress Party is historically aligned with the ANC and there are strong links between the two parties.

The presidency said Zuma had requested a special meeting with the entire South African business delegation to hear their views on how the visit went, as well as promising them a meeting in South Africa at a later stage. "This has not transpired yet," said Zizi Kodwa, Zuma's communications adviser.

Source: Mail & Guardian

'Blood diamonds': Flawed regulator must end half-measures

The Kimberley Process will only survive if governments and industry stand up for the principles on which it was built. The Kimberley Process certification scheme is often credited with ending the trade in conflict diamonds. As the blood spilled in Zimbabwe's diamond fields shows, the truth is more complex.

The KP set out to ensure that the kind of diamond-fuelled conflict and abuse exposed by Global Witness and others in countries such as Angola, Sierra Leone and Liberia could never happen again. The technical aspects of the scheme are implemented by governments, while NGOs and the diamond industry act as observers. Essentially an import-export control system for rough diamonds, the KP provides a strong economic incentive for countries to join, since members can only trade with each other. To participate, governments must pass national laws and agree to meet the KP's minimum standards to guarantee that their diamond exports are conflict-free.

There have been successes: in some African countries the scheme has brought more transparency and increased official diamond revenues for governments. But recent crises have exposed shortfalls. In Zimbabwe the abuses are by a member government, as opposed to a rebel group. This highlights a fundamental flaw in the process: the KP's reliance on consensus among members has allowed regional allies to veto tough decisions on Zimbabwe, which remains a member despite the state-sponsored murder of hundreds of diamond diggers. The most recent agreement allows Zimbabwe a one-off limited export of diamonds from Marange. All further exports are conditional on Zimbabwe demilitarising diamond mining, cracking down on smuggling and ending human rights abuses in Marange.

The KP's half-measures and compromises in the face of one of the most egregious cases of diamond-related violence in years have battered its credibility and brought it to the brink of collapse. This scheme will only survive if governments and the industry stand up for the principles on which the process was built. Without this, diamonds in countries like Zimbabwe will continue to generate suffering rather than prosperity, and the global diamond industry will remain blighted by the taint of blood diamonds.

Source: The Guardian

Thursday, July 22, 2010

Racism posing as rule of law

I wonder what a real rape survivor might think about Sabbar Kashur being convicted of rape and sentenced to 18 months in prison for sleeping with a woman who thought he was Jewish. The Arab-Israeli man was sentenced on Thursday in Jerusalem, after being under house arrest for two years for his "rape" of a Jewish woman in 2008.

Here's what happened -- he met an Israeli Jewish woman on the street, literally, they hit it off, and then went into the closest building to have sex. Then she figured out he was Arab, which turned their consensual sex into rape in the eyes of both the unnamed woman and Judge Tzvi Segal. "It is incumbent on the court to protect the public interest from sophisticated, smooth, sweet-talking offenders who can mislead naive victims into paying an unbearable price: the sanctity of their bodies and souls," said Segal.

There are so many problems here. First up, how many men would end up in prison for "deceiving" women that they slept with? Too many to fit our jails, I imagine. "I drive a BMW", "I like children" and "I love you" are all phrases that changed far too often in post-coital conversations around the world. But while it's not okay to lie to your partner, it's certainly not rape. Kashur also allegedly told her he was an eligible bachelor when in fact he is married with two children. While a lock-up for men who have extra-marital affairs is not a bad idea in my book, it's still not rape.

Rape is very specifically intercourse with somebody without their consent. While the specifics may vary in different countries, the concept of without consent remains firmly in place.

Israeli daily Ha’aretz reported that Kashur posed as a man seeking a long-term romantic relationship. Surely, if that was what the woman was seeking, a quickie in the closest structure 10 minutes after they met was not one of the criteria. If the woman was so specific about who she slept with, then perhaps a meal to get to know him slightly, or at least a cup of coffee would have cleared up any racist queries she might have had.

But this is not only about sex. This is also straight-up racism posing as the rule of law. It is another means of making Arab-Israelis feel less human than Israeli Jews, just like keeping the plumbing systems in East Jerusalem in the same state as they were in the early 20th century, while upgrading those in West Jerusalem. This means that when you visit the toilet in East Jerusalem, your toilet paper can't be flushed down the toilet -- rather it needs to be thrown into a bid beside the loo. Getting to the gritty, most grossly physical aspects of humanity, through humiliation and attempt to crush dignity, is how Israel maintains its racist policies.

In the meantime, and for this end, rape survivors and those fighting sexual abuse are having their plight made a mockery of as the meaning of the truly horrendous and inhumane act of rape becomes diluted. Real rape victims are afraid to speak out, often for fear of being accused of crying wolf. Real rape victims do not get attention from police and from the justice system. But when racism is involved, and the Israeli government is trying to prove a point, then regretful sex leads to a conviction. Now a man will spend a year and a half in prison to make some unnamed woman in Israel feel innocent and pure again.

Source: Mail & Guardian

Tuesday, July 20, 2010

Nyanda: Maybe immoral AND illegal after all

Pierre De Vos wrote the following on his blog, consitutionally speaking:

It is rather difficult to get hold of a copy of the Ministerial Handbook (also known as A Handbook for Members of the Executive and Presiding Officers). I searched the Internet for more than an hour yesterday (which included a search on the government’s own website as well as several legal databases) – all to no avail.

Those Ministers sure do not want us ordinary folk to know what is in this mysterious Handbook of theirs. Finally, after contacting DA MP, Dene Smuts, an efficient DA researcher provided me with a copy of the Handbook (and as any good PR person would, also included DA proposals for changes to the handbook).

After studying the Handbook I understand why its content is being kept half-secret.

This is the thing: It is far from clear that claims by a spokesperson of Communications Minister, Siphiwe Nyanda, that the Ministerial Handbook had entitled the Minister to stay in the most luxurious 5 Star Hotels for 6 months at a cost of more than R500 000 could be squared with the actual provisions of the Handbook.

Why did Nyanda not stay in the house allocated to him after he became the Minister of Communications? Why was the poor man made to suffer for six months by having to stay at the most expensive Hotels in Cape Town? Personally I would not be seen dead at these terrible, inhumane, dumps and would rather sleep in the boot of my car.

Who could possible live in a ”spacious, grand and elegant suit” with “spectacular views of Table Mountain”, have access to “two heated swimming pools”, ”magnificent flood-lit tennis courts”, a yoga centre “complete with feature inspiring music, fresh flowers, candlelight, therapeutic scents and post-yoga refreshments”, an ”on-site golf practice net”, “on-site hair salon” and a ”world class holistic spa experience, where the trilogy of mind, body and spirit is nurtured”?

Sounds awful, doesn’t it? Who would not rather stay in a lovely state owned house in Upper Claremont?

(By the way, it’s a good thing Minister Nyanda was not allocated a house in lower Claremont because he would surely then have been entitled not to occupy a house in such a bad neighbourhood and would have been forced to stay at the Mount Nelson for another few years, poor man.)

Well, the Mail & Guardian reported as follows on the poor Minister’s woes:

A Cabinet colleague of Nyanda told the Mail & Guardian that the reason Nyanda had apparently given for refusing to move into his Hooggelegen residence in sought-after Upper Claremont was because the public works department had not bought him a bed. A senior communications department source confirmed this explanation was also doing the rounds in the department, but added that Nyanda was allegedly also unhappy that his house did not have a view.

Although Nyanda’s spokesperson strongly denied this, the department of public works confirmed on Thursday that Nyanda hadn’t moved in because of a delay with the delivery of furniture “to accommodate him”. Public works spokesperson Thamsanqa Mchunu confirmed that Nyanda’s furniture finally arrived on February 5 and February 26.

So, one explanation for his splurge was that while the house was furnished and he could have stayed in it (sleeping on one of the other beds in the house, one presumes) or could have bought his own bed (I am told one can buy a very nice bed for about R10 000 – a bit less than the R500 000 us tax payers eventually spent on the Hotel Bills), the house needed a bed for the General to sleep on. We all need a good night’s rest, after all, and national security, the national interest and the public good required the Minister to be alert at all times in case he had to deal with yet more reports of the SABC banning an old leader of the party from its airwaves.

Another, unconfirmed, explanation was that he was not happy with the view (even though the house was in upper Claremont). The official version was that new furniture (obviously replacing existing furniture) had to be provided “to accommodate” the General. One assumes this means the General was not happy with the original furniture (which was obviously not up to the standard of the Mount Nelson) and he thus ordered new furniture which would “accommodate” him and would ensure he would stay in the style and comfort that he had become accustomed to.

This kind of thing is covered by the Ministerial Handbook, which states in chapter 2:

If, owing to exceptional circumstances, a State-owned residence is not immediately available for Members upon assumption of duty of office, expenses in connection with alternative accommodation may be debited to the State until an official residence becomes available.


The first question would be whether the absence of one bed or unhappiness with the existing furniture would constitute “exceptional circumstances” as required by the Handbook. The second question would be whether a house is “not available” if some of the furnishings in the house are not to the liking of the new resident.

Now, maybe I am just not used to the millionaire’s lifestyle, but I find it rather difficult to believe that the absence of one bed or unhappiness with the state of the existing furniture could possibly have legally constituted “exceptional circumstances” as required by the Handbook. In a country where many people live in shacks, one could hardly argue with a straight face that unhappiness with the quality of furniture constituted “exceptional circumstances” that mandated an extended stay at tax payers expense in some of South Africa’s most expensive Hotels.

This conclusion seems irresistible if one reads the clause in conjunction with the provisions in Chapter 4 of the Handbook which stipulates what the Department of Public Works is required to provide to an official accommodated in official state housing:

The furnishing of State-owned residences is limited to the provision, and maintenance, of ordinary household furniture, mattresses, pillows, carpets, curtains, beds, stoves, refrigerators, freezers, washing machines, tumble dryers and heaters, micro-wave ovens and dishwashers on request….. If a piece of furniture becomes redundant in a State-owned residence, the Office of the Member concerned should make the necessary arrangements in consultation with the Office of the Minister of Public Works to have the article/s removed and the inventories amended accordingly.


These provisions confirm that the Department would only provide the bare minimum of furniture for a house and would also – as a matter of course - replace “redundant” furniture. Such replacements are not treated as “exceptional circumstances” but are treated as ordinary day-to-day arrangements that should be made between the official and the Department. The sections in chapter 4 do not provide for a Minister to vacate his or her residence while the furniture are being replaced and it is thus not viewed as exceptional circumstances when any piece of state owned furniture is not up to the exacting standards of the relevant Minister.

More damning perhaps is that the residence was obviously “immediately available”. There it was standing – in upper Claremont nogal - a shiny house, shimmering in the morning light, furnished and ready to be used by any good servant of the masses of our people. Although the furniture were not to the Minister’s liking, that did not make the house “not available”. It just made the house not to the taste of the Minister (whom it turned out, had rather more expensive tastes than the previous owners).

All this suggests that the Minister was not allowed by the Ministerial Handbook to stay in 5 Star Hotels for six months at a cost of more than R500 000 and that he is legally required to pay back the money he had wasted. Maybe the Public Protector – who seems to be taking her job rather seriously and is acting without fear, favour or prejudice - should be asked to investigate this matter?

Meanwhile, the President might take up the suggestion of Cosatu’s Zwelinzima Vavi (is he finally regretting the fact that he gunned for the abolition of the Scorpions?) to have the serious allegations of corruption levelled against Minister Nyanda investigated. Just because General Nyanda has displayed a taste for the good life and seems to have flouted the Ministerial Handbook does not, of course, mean that he is a corrupt businessman too. But it does make one wonder.


Source: Constitutionally Speaking

Sunday, July 18, 2010

ANC hits out on luxury hotel stays

The ANC came to the defence of cabinet ministers accused of wasting tax payers money by staying at luxury" hotels - and said it was "sensationalism of the highest order". The ruling party said in a statement issued yesterday that the "attack" on its ministers confirmed its long-held suspicion that ANC ministers were being "targeted".

"There is nothing immoral, illegal or unconstitutional in public representatives staying in hotels, as this is not a breach of the Public Finance Management Act, or the provisions of the Ministerial Handbook," said the ruling party's spokesman, Jackson Mthembu.

The furore over cabinet members spending millions of rands on hotel accommodation came as more reports over "extravagant" spending by minsters was published. Last week, the Democratic Alliance published its wasteful expenditure monitor table, setting out spending by the ANC considered to be wasteful or excessive. It reported that since President Jacob Zuma was elected president, government departments and state-owned enterprises had blown more that R1.5-billion on cars, parties, World Cup tickets and other luxuries.

But the ANC said yesterday the media was "failing" in its work to "properly inform" the public about laws governing accommodation of public representatives. "In line with the Ministerial Handbook and prescripts governing public representatives, c abinet ministers, MPs MECs and MPLs are entitled to stay in hotels while their permanent accommodation is not yet ready for occupation," Mthembu said. "No luxury can be derived in staying and working from a hotel environment, where you do not have the privacy you would enjoy staying in a proper home," he said.

Source: Times Live

Saturday, July 17, 2010

The SACP in the headlines

60 years ago, the Communist Party of South Africa (CPSA) was declared an illegal organisation according to the 'Suppression of Communism Act, No. 44 of 1950'. This apartheid act was approved on 26 June in parliament and came into force on 17 July 1950.

The Suppression of Communism Act banned the CPSA, and gave the government the power to ban publications that promoted the objectives of communism, and the power to 'name' people who could be barred from holding office, practicing as lawyers or attending meetings.

The Act, later extended through the Internal Security Act, sanctioned the banning/punishment of any group or individual intending to bring about 'any political, industrial, social or economic change in the Union by the promotion of disturbances or disorder, by unlawful acts or omissions or by the threat of such acts and omissions'.

This definition of communism was so broad and crude that its liberal opponents suspected it was seeking also to trap liberals in its net. In 1953, the party was renamed the South African Communist Party (SACP) at a national conference, where it was decided that the organisation would operate underground.

It was no accident that the apartheid regime saw communism as its foremost enemy. The Communist Party had been the first to advocate non-racism, and to open its ranks to people of all races and cultures. It had pioneered progressive trade unionism, and supported rural struggles. It had run night schools, and worked on developing its cadres.

The Act was progressively tightened up in 1951, 1954, and yearly from 1962 to 1968. Between 1948 and 1991, the apartheid government banned more than 1,600 men and women. Banned persons endured severe restrictions on their movement, political activities, and associations intended to silence their opposition to the government’s apartheid policies and stop their political activity.

In addition, the Act facilitated the government’s take down of liberation organizations such as the ANC. The Act forced these groups to go underground with their activism. Ironically, because of this act, groups such as Umkhonto we Sizwe (armed and ‘underground’ wing of the ANC) did seek support from Communist parties for financial aid. Liberation struggle leaders like Nelson Mandela, Walter Sisulu and Govan Mbeki all received life sentences in prison partly because of this Act (Rivonia Trail).

Source: South African History Online

Friday, July 16, 2010

Minister wants action on corruption “without fear or favour”

Minister in the Presidency Collins Chabane on Friday said it is the duty of law enforcement agency’s to act on allegations of corruption without fear or favour.

Communications Minister Siphiwe Nyanda is at the centre of another tender storm. It is alleged Nyanda wants all tenders for the department to be cancelled until they have been discussed and approved by him. He is also said to have stripped his director general, Mamodupi Mohlala, of powers to administer tenders because she refused to sign off on tenders linked to him or people close to him. The Communications Ministry has denied the allegations.

Chabane said police need to look into claims and investigate. “We should avoid a situation where we as politicians would interfere with the normal work of the operations of the authorities who have been given responsibilities. Our task needs to be clearly defined in terms of what it is we need to do, law enforcement agencies need to continue doing their work without fear or favour,” said Chabane.

Source: Eye Witness News

A two-day job after minister and DG clash

An acting director general was appointed for two days this week in the communications department after a mysterious fallout between Communications Minister Siphiwe Nyanda and his director general, Mamodupi Mohlala. Dr Harold Wesso, who was heading an e-skills institute in the department, told the Mail & Guardian he was placed in the post of acting director general late on Wednesday afternoon. The M&G was told that Wesso was temporarily appointed because Nyanda had tried to set up a meeting three times with Mohlala, but she had said she was sick. Because of her claim, Nyanda appointed Wesso in the acting position but did not suspend her. "My appointment letter said it was just for two days, until Friday," Wesso said on Thursday. "What is happening after that, I am not sure. I was appointed acting director general late [on Wednesday] afternoon and I will be trying to maintain the status quo."

Nyanda's and Mohlala's families have strong links with each other, but on Thursday Business Day reported that Mohlala was about to be suspended by Nyanda, following repeated disagreements over tenders she refused to sign. The story reported unsubstantiated claims that she had refused to approve tenders that were awarded to companies linked to people close to Nyanda and a private company partly owned by Nyanda, General Nyanda Security (GNS). Communications department spokesperson Tiyani Rikhotso said Nyanda dismissed the allegations in the report "as false, spurious and malicious". "The minister is not involved in the issuing or adjudication of tenders," he said. "Such is the responsibility of the management of the department." Nyanda would not address administration and human resources issues through the media and was dealing with departmental management internally, Rikhotso said.

Mohlala agreed to answer M&G questions about the tender controversy but then failed to do so. Instead, she confined her response to an explanation of her relationship with the minister and said she would return to the office on July 19. "The minister and I have a conducive work relationship and I respect the mutual relationship both the minister as an executive authority and I as an accounting officer have," wrote Mohlala. In past weeks communications department staff said tensions have become apparent between Mohlala and Nyanda. A source close to the ANC NEC's communications subcommittee said Mohlala had alienated the party when she bypassed the committee on policy issues. "There have been major fireworks ... she doesn't attend meetings with them and has taken new policy to the Cabinet, such as on broadband, where there has been no debate."

Source: Mail & Guardian

Thursday, July 15, 2010

Nyanda denies rift with DG

A terse statement issued today by the Department of Communications (DOC) denies a newspaper report that communications minister Siphiwe Nyanda is about to suspend his director-general, Mamodupi Mohlala. Earlier today, national newspaper Business Day reported that Nyanda was about to suspend Mohlala following repeated disagreements over tenders she refused to sign.

The newspaper said tenders that were the subject of the disagreement included those for advising Telkom on its black economic empowerment strategy, an IT system for the South African Post Office, and the turnaround strategy for the South African Broadcasting Corporation. The report also cited the delay in the digital broadcasting migration strategy, with the process of changing SA's national TV system from analogue to digital as a point of tension between the two.

Nyanda has been on the receiving end of much criticism from the media and other sources, following his company General Nyanda Security being awarded lucrative Transnet contracts. His decision to spend more than R2 million on luxury cars, and his accommodation at luxury Cape Town hotels placed Nyanda close to the top of the official opposition Democratic Alliance's fruitless and wasteful expenditure list.

The DOC statement issued today says the minister dismisses the allegations contained in the report as false, spurious and malicious. “The minister exercises political oversight over the department and he gives it policy direction in line with his statutory and constitutional mandate. Furthermore, he respects the legal prescripts defining the scope, nature and extent of his responsibilities,” the statement says. It further denied any involvement by Nyanda in the issuing or adjudication of tenders. Such is the responsibility of the management of the department, it adds. The statement goes on to say Nyanda will continue with his responsibility of ensuring the provisions of the Public Finance Management Act, Public Service Act, and all relevant laws and regulations are adhered to and not flouted within the department.

It says Nyanda will not address the department's administration and human resources issues through the media. This position is in deference to the department's staff, including Mohlala, it notes. “The minister is dealing with issues that are impacting the management of the department internally and according to the applicable laws, regulations and public service policies,” the statement reads.

Niekie van den Berg, Democratic Alliance shadow minister of communications, says he is not surprised that reports of tension between Nyanda and Mohlala are surfacing. “I noticed during the Parliamentary briefing where both were present that the minister appeared to be very irritated in explaining why the country should be investigating another [Brazilian] system when it had already committed to a European standard,” he says. SA is in the middle of its digital migration strategy, with Cabinet having setting the switch-off date for the analogue system for 1 November 2011. Talk of changing standards at such a late stage has been vigorously opposed by the industry, broadcasters and others, as they have already committed themselves to the European standard and procured some of the equipment needed.

Source: IT Web

Why Zuma's top aide is leaving

It is becoming an old and rather monotonous story. Someone resigns from the presidency. Presidential aide Lakela Kaunda gets blamed. Kaunda denies it. And then life goes on, until the next resignation.

Previously the resignations have been those on Kaunda's level as deputy director general (for instance, chief operations officer Jessie Duarte) or beneath her (presidential spokesperson Vincent Magwenya). The next one that is anticipated is the most senior administrative official in government, the director general in the presidency, Vusi Mavimbela. And the reasons for Mavimbela's imminent departure may be the same as everyone else's but the way they reflect on Zuma makes it more chilling.

Mavimbela, as former spy boss and presidential adviser, is no stranger to government. With his wealth of experience and access to privileged information he was adamant to implement plans to make the presidency run like clockwork as an example of how government can do its job. But insiders say Kaunda would overrule him -- brief ministers and DGs about the president's demands without consulting him or not include him in processes which he should be leading. Eventually senior government officials started to wonder out loud whether he has any real say in the presidency.

When the Mail & Guardian asked Kaunda extensive questions about her leadership in the presidency last week she referred them to Zuma's spokesperson Zizi Kodwa. Kodwa on Thursday did not want to comment on Mavimbela's situation, because a final decision on his future had not yet been made, although those around Mavimbela says he is negotiating a plum diplomatic posting that would suit his status in government. Presidency staffers who are close to Zuma say it is simple: The president could not, after a year, trust his director general as much as he should. And no president would keep someone on whose loyalty he doubts.

Mavimbela's spy background and his former job at Mvelaphanda cast doubt on him. Is he fuelling a campaign for human settlements minister Tokyo Sexwale, rumoured to have presidential aspirations? Will he use priviledged information to undermine Zuma's bid for a second term as president? Does he still carry a torch for his former boss, former president Thabo Mbeki? Zuma couldn't figure it out and therefore decided it was best to let him go.

Another set of presidency officials have a different view: he decided to jump out of frustration. Said one: "If Zuma had a problem with his Mvelaphanda links, why did he hire Mavimbela in the first place for such a strategically important position?" No one seems to know the answer. What everyone does know is that Zuma is not comfortable in a meeting unless Kaunda is there. Some say it is for the president to be secure in the knowledge that someone "has his back", while others believe that she is simply the most effective administrator he has. But Kaunda's relations with colleagues aside, what is of real importance is how Zuma's manages these relations to ensure an effective administration. Although the director general is on his way out, the tensions will not leave with him. Some insiders already talk of a fight brewing in the legal services department because Kaunda instructed junior officials without going through the necessary bureaucratic processes -- which may be cumbersome but are important in the running of the organisation.

And when things come to a head, as they did with Mavimbela, Zuma cannot, as his aides say, "be above it all" and leave these issues to sort themselves out. He needs to take the time to ring fence duties and responsibilities, and hold those people to account. And he must ensure that in all this, loyalty does not trump competence.

Source: Mail & Guardian

Wednesday, July 14, 2010

Credit Suisse offices raided by tax officials

German prosecutors have raided 13 branches of the Swiss bank Credit Suisse in connection with an inquiry into tax fraud. The prosecutor's office in Dusseldorf said on Wednesday that about 150 investigators took part in searches. The search is focusing on allegations that bank staff assisted clients to evade taxes.

Tax officials bought a CD in February that reportedly contained information on about 1,100 wealthy Germans. There were reports at the time that the authorities paid about 2.5m euros for the disc to an unnamed individual. The data contained information that led prosecutors to believe that some 1.2bn euros (£1bn) of undeclared income was stashed in the Swiss accounts by the 1,100 people.

Investigations were launched into the individuals, but now officials have turned their attention to bank staff for allegedly aiding and abetting customers to avoid taxes. In April, Credit Suisse's chief executive Renato Fassbind said it appeared increasingly likely that some of the bank's clients were listed on a disc containing stolen data. The company was not immediately available for comment on Wednesday's raids.

Governments in Europe and the US have been cracking down on tax evasion. It is not the first time that Germany is thought to have paid for data on bank customers. In France and the UK too, authorities have bought information on wealthy bank customers who may have hidden money in secret accounts.

Source: BBC News