Thursday, June 30, 2011

Cellphone networks not working

Cellphone service providers Vodacom and MTN were having serious network problems on Thursday, the companies said. "We are currently experiencing network issues in some areas. Our engineering team is working hard to resolve the problem. We apologise to all affected customers," said Vodacom spokesperson Ashleigh Dubbelman.

The contact number provided was a Vodacom number, with no landline number supplied, so further details were not immediately available. However, the company used Twitter to apologise, reply to questions and post short updates, repeating several times that it was not related to the Rica deadline to register sim cards. "We're aware that certain customers are experiencing an inability to call or SMS. Sincere apologies, we're working on a fix :-/," one of the posts read.

In another post they wrote: "...there is a network wide issue on Voice and SMS that some customers are experiencing, we are attending to this." Technicians were working on the problem.

MTN echoed this, also offering apologies.

Source: Mail & Guardian

Cellphone networks not working

Cellphone service providers Vodacom and MTN were having serious network problems on Thursday, the companies said. "We are currently experiencing network issues in some areas. Our engineering team is working hard to resolve the problem. We apologise to all affected customers," said Vodacom spokesperson Ashleigh Dubbelman.

The contact number provided was a Vodacom number, with no landline number supplied, so further details were not immediately available. However, the company used Twitter to apologise, reply to questions and post short updates, repeating several times that it was not related to the Rica deadline to register sim cards. "We're aware that certain customers are experiencing an inability to call or SMS. Sincere apologies, we're working on a fix :-/," one of the posts read.

In another post they wrote: "...there is a network wide issue on Voice and SMS that some customers are experiencing, we are attending to this." Technicians were working on the problem.

MTN echoed this, also offering apologies.

Source: Mail & Guardian -- Sapa

Monday, June 27, 2011

Unlawful application of a lien clause

A service provider can rely on a debtor/creditor as security for its claim. This type of lien, conferred by virtue of an agreement between the creditor and the debtor, is a sub-species of a broader right to retain physical control of another’s property, whether movable or immovable, as a mechanism for securing payment of a claim, until the claim has been met. In other words, the service provider, who makes provision for such a lien in its contract, can refuse to release goods which are in its possession until it has received payment.

An example of the clause which introduces this right into a contract is that often used by clearing and forwarding agents and which might be worded along the following lines: “All goods shall be subject to a special and general lien either for moneys due in respect of such goods or for any other moneys due to the company from the customer, sender, owner, consignee, importer or the holder of the bill of lading or their agents, if any.” Such clause would go on to deal with the right of the clearing and forwarding agents to sell the goods after notice has been given to the debtor, if the debt remains unpaid. Other examples of creditors who may make provision for a lien in their contracts would be builders, motor vehicle repairers, warehousemen, transporters and professionals such as lawyers, accountants and architects.

A clause with wording similar to that quoted above has been tested and applied in cases which have come before our courts in the past – see for example Section 27 Ridgeprop CC t/a Tile Distributors SA v Sharaf Cargo (Pty) Ltd 2009 JDR 1022 (KZN).

The point which immediately jumps out, on reading this clause, is that it envisages a lien which can be exercised over goods which are unrelated to the debt.

Our law accepts that it is reasonable for a creditor to require security for its claim – much commercial activity is entirely dependent on this construct. Our courts recognise the validity of a lien which can be exercised over goods of a debtor in the possession of the lien holder even where the debt relates to other goods of that debtor which may no longer be in the possession of the lien holder. See for example the case of Danzas Trek (Pty) Ltd v du Bourg and Another 1979 (4) SA 915 (W).

Our law, relating to all types of lien, dictates that possession of the goods which constitute the subject matter of the lien is an intrinsic prerequisite for the exercise of this right by the lien holder. It is worth noting that our courts have found, most recently in Oceana Leasing Services (Pty) Ltd v BG Motors (Pty) Ltd 1980 (3) SA 267 (W), that where a lien holder voluntarily releases the property subject to the right, the lien is lost and remains irrevocably extinguished, and it does not revive if the property at a later stage reverts to his control. Hence, a service provider may well have to look to other goods in its possession where it has already delivered or released the goods in respect of which the debt arose.

There is little for the debtor to complain about if the goods which are subjected to the lien are owned by that debtor, who has failed to pay the debt, even if the debt relates to other goods of that debtor.

A more problematic application of such a clause arises when the lien holder contracts with an agent who acts for several principals. In that scenario one may find that a debt relating to goods owned by principal “A” are secured by a lien over goods belonging to principal “B”.

The fact that the clearing and forwarding agent is appointed by an agent who is not the owner of the goods over which the lien is exercised will not ordinarily be a problem for the service provider seeking to enforce its lien, because the agent will have been authorised to bind his principal, the owner, to the terms of the contract concluded with the clearing and forwarding agent. It is only when he acts as agent for several owners that issues of ownership are put in the spotlight.

The lien discussed above is a personal right which the lien holder can exercise against its debtor. This type of lien is not one which can be exercised against the world at large, because of its personal nature.

This personal right can be exercised by the service provider against the agent and accordingly also against its principal, the owner of the goods which are the subject of that lien and who owes the debt, but not against another person who owns goods which happen to be in the possession of the service provider, by virtue of another contract between them.

Because of the personal nature of the lien, where an agent acts for two different principals, the goods belonging to principal “B” cannot lawfully, we submit, be the subject of a lien arising from a debt due in respect of the goods of principal “A”, despite the wording of the clause.

ENS - Edward Nathan Sonnenbergs

Janine Lee

South Africa

Source: Lexology

Sunday, June 26, 2011

ECONOMIC FREEDOM IN OUR LIFETIME: Can we have a proper debate this time?


Joel Netshitenzhe

As the delegates of the ANC Youth League rose from their 24th Congress, the slogan of 'economic freedom in our lifetime' on their lips, the "lost generation" seemed to be returning the favour of generational stereotyping. We, the older lot in society, bemused by a misshapen movement taking root in spite of our apprehensions, had by some quirk of fate become the "bewildered generation". Mesmerised by the antics of individuals, irritated by the seeming immaturity of it all, and bedazzled by the media focus on palace politics, the historic nature of the moment seemed to escape us.

In its January 8th Statement this year, the ANC asserts: "Political emancipation without economic transformation is meaningless. That is why we have to commit ourselves to economic freedom in our lifetime, and the ANC must continue to be in the forefront of that transformation."

What indeed is "economic freedom" and how can it be attained? Is there a common and coherent storyline across society on the final destination and how to reach it?

This historical moment calls for serious societal debate. Imploring the ANC leadership to put its foot down and suppress the debate will not put the genie back in the bottle. Launching ideological missiles about who is more Left and the vanguard of workers, or speculating whether this campaign is a proxy for ANC palace politics, will not smother the appeal of a sentiment.

It is no accident that this issue emerges in this stark form 17 years after the attainment of democracy. Having obliged Kwame Nkrumah's injunction to "seek ye first the political kingdom", economic liberation is an issue that post-liberation states on the continent and elsewhere had to come back to.

The efforts sometimes resulted in welcome success. In many other situations, failure by society honestly and rationally to engage the issue, poor policy choices on the part of leaders, and a brittle and corrupt state produced disastrous results. On the extreme, predatory elites used so-called economic liberation policies such as nationalisation, indigenisation, price controls and tariff barriers for self-enrichment.

It should be expected that youth in our country would be at the forefront of the economic freedom campaign. Just on access to economic opportunities: the employment ratio among 15 - 24 year olds is 13.2% compared to 40% in Asia and Latin America. 48.2% of those available to work in the 20 - 24 age cohort are jobless. 86% of unemployed youths have not gone beyond Grade 12; and two-thirds of these have never worked. This not only has major macro-social implications including crime and youth mortality as well as socio-political stability especially at local level. It is patently unsustainable.

It can be argued that this problem affects many countries. Besides the youth of the Arab Spring, there is concern in Japan about the so-called freeters (freelance arbeiters), mileuristas in Spain and the UK's NEETS (not in education, employment or training). This is what Peter Coy of Bloomberg Business Week describes as "the common element [of] failure - not just of young people to find a place in society, but of society itself to harness the energy, intelligence, and enthusiasm of the next generation".

The irony which is not irrelevant to our own discourse on economic freedom is that in Spain, for instance, the youth's "May 15 movement" of massive demonstrations has led to the recent defeat of the Socialist Party in regional and local elections. According to the Financial Times (17 June 2011), the right-wing Popular Party is expected to win the next general election. And so, counter-intuitively, socio-economic difficulties result in the rise of the right-wing, as the Left is unable to pose and mobilise around alternatives to the status quo. Under such circumstances, phenomena such as Louis Bonaparte's lumpen proletariat in 19th century France, the Tea Party extremists currently in the United States and the Green Bombers across the Limpopo river can gain prominence.

While there may be structural causes to youth marginalisation in many countries, a major contributor to the current problem is the global economic crisis.

South Africa differs in the sheer size of the problem, the low education and skills levels, the very high levels of inequality and the historical and racial dimensions to the phenomenon of youth unemployment. In our situation it is systemic, manifesting even during high growth periods. As the National Planning Commission (NPC) points out in its Diagnostic Overview, the central problem in our country is that too few people are involved in economic activity.

If the slogan, "economic freedom in our lifetime" has to have any meaning, it should aim at addressing this fundamental challenge. The root causes of the problem, the NPC argues, relate among others to the structure of the economy, the quality of education, poorly located and inadequate infrastructure, a resource-intensive path dependency, and spatial economic and settlement patterns.

A growth story line

South Africa needs a growth storyline that addresses these issues and clearly describes:

* how we can use the infrastructure programme not only to crowd in the private sector, but also to build supplier industries that will absorb more labour;
* the competitive advantages that we need to forge, to be able to manufacture many of the mass market goods that we currently import;
* a strategy fully to take advantage of our massive mineral endowments to exploit the commodities super-cycle and more critically to build a mature industrial cluster around these endowments;
* how we can take advantage of these and other endowments and potential to build a green economy that is more than just cost-neutral; and
* a clear strategy to take advantage of the high economic growth rates on the continent through regional integration and the pooling of sovereignty.

We should build "an economy in which cutting edge technology, labour-absorbing industrial development, a thriving small business and co-operative sector, utilisation of information and communication technologies and efficient forms of production and management all combine to ensure national prosperity" (2007 ANC Strategy and Tactics document). This will ensure that we escape the middle income country syndrome - where countries reach a level of development and then stagnate, unable to break out because of path dependency and sheer inertia.

However, the immediate challenge of unemployment, particularly among the youth, cannot wait until high growth over some 5 years starts to have qualitative impact. By then, the ticking time-bomb may have gone off. As such, specific programmes to address this deficit need to be pursued. Besides the public works programme, this should include measures such as massive artisanship training, learnerships, a school-to-work transition programme, job transition through the state and so on.

At the same time, programmes to address asset poverty including housing and land reform need to be intensified. And the approach to BEE should also focus on community trusts for youth and women as well as employee share ownership schemes. With regard to land, policy and planning should take account of the reasons why measures such as the audit of state land, the Communal Land Rights Act, the Land Use Management Bill, revival of collapsed agricultural schemes and other support programmes in rural areas are taking so long fully to materialise.
It is this kind of methodology, firstly, to identify the objective, and then the processes and mechanisms required to achieve it, that should inform the approach of the 'economic freedom movement'.

Source: ANC Umrabulo

Thursday, June 23, 2011

8ta drops broadband bomb on rivals

Telkom's new mobile operator, 8ta, has dropped a bomb on rivals Vodacom, MTN and Cell C, introducing a cut-rate broadband product offering 10GB of data a month for R199 on a 24-month contract. For an additional R100 per month, users will have 20GB of bandwidth -- 10GB plus an extra 10GB for use between midnight and 5am.

The 10GB package equates to an effective cost-per-megabyte of less than 2c, making it the most aggressive mobile broadband pricing in South Africa to date. The out-of-bundle rate is 30 cents per megabyte and no modem is included in the packages.

The offer will only work in areas where Telkom has built 8ta towers and will not work in areas where the company relies on roaming partner MTN for coverage. 8ta has almost 1 000 active mobile broadband base stations across the country, and has said it will have more than 2 000 by March next year.

Amith Maharaj, managing executive of Telkom Mobile, says consumers have expressed concern about the cost of mobile data and he believes 8ta's aggressive new pricing will help win over those customers. "Price has seemed to be the barrier to entry until now," Maharaj says.

He emphasises that the two new products are a special offer only. However, he won't say when the special offer will end. Customers who sign up for a 24-month contract are guaranteed the prices won't increase throughout the contract period. --  TechCentral

Source: Mail & Guardian

Saturday, June 18, 2011

Yemen’s Unfinished Revolution

AFTER more than five months of continuous protests, I stand today in Change Square with thousands of young people united by a lofty dream. I have spent days and nights camped out in tents with fellow protesters; I have led demonstrations in the streets facing the threat of mortars, missiles and gunfire; I have struggled to build a movement for democratic change — all while caring for my three young children.

We have reached this historic moment because we chose to march in the streets demanding the resignation of President Ali Abdullah Saleh, an end to his corrupt and failed regime and the establishment of a modern democratic state. On June 4, our wish for Mr. Saleh’s departure was granted, but our demand for democracy remains unfulfilled. Following months of peaceful protests that reached every village, neighborhood and street, Yemen is now facing a complete vacuum of authority; we are without a president or parliament. Mr. Saleh may be gone, but authority has not yet been transferred to a transitional presidential council endorsed by the people. This is because the United States and Saudi Arabia, which have the power to ensure a peaceful transition to democracy in Yemen, have instead used their influence to ensure that members of the old regime remain in power and the status quo is maintained. American counterterrorism agencies and the Saudi government have a firm grip on Yemen at the moment. It is they, not the Yemeni people and their constitutional institutions, that control the country.

American intervention in Yemen is a product of the war on terror. In exchange for military and intelligence partnerships established after the bombing of the American destroyer Cole in 2000, the United States provided the Saleh regime with increased economic aid and military assistance. Because American security was given priority over all other concerns, counterterrorism agencies paid no attention to the human rights abuses being committed by their local partners. Indeed, American officials chose as local partners the Central Security Forces, the National Security Agency and the Republican Guard, all of which are controlled by Mr. Saleh’s sons and nephews. As a result of their partnership with United States counterterrorism agencies, these organizations received generous American financing as well as guidance and technical assistance. Because America has invested so heavily in Yemen’s security forces, it now seems that a transition to democracy will depend on whether Washington believes that investment will remain secure. The establishment of a new government will therefore be contingent on American officials’ approving the country’s new leaders. Sadly, it seems likely that the United States will support figures from the old regime rather than allow a transitional government approved by the people to take control of Yemen. This would be a grave mistake.

American policy makers must understand that the activists and young people who started Yemen’s peaceful revolution deeply respect the United States and Western civilization. Indeed, it was in Washington and other capitals throughout the free world that many of these activists learned the peaceful methods they employed during our revolution. We call on American officials to engage with the leaders of Yemen’s democracy movement and abandon their misplaced investment in the old regime’s security apparatus, which has killed more innocent women and children than terrorists. We understand America’s concerns about terrorism and recognize your right to attack terrorist sanctuaries. We have no objection to agreements that protect your security interests. We only ask that you respect international standards on human rights and the Yemeni people’s rights to freedom and justice.

On behalf of many of the young people involved in Yemen’s revolution, I assure the American people that we are ready to engage in a true partnership. Together, we can eliminate the causes of extremism and the culture of terrorism by bolstering civil society and encouraging development and stability. We also call upon our Saudi neighbors to let us pursue a democratic path. For 50 years, the Saudi government has provided a special committee of its ministers with an enormous annual budget to intervene in Yemeni affairs. Over the years, this committee has consistently meddled in Yemen’s domestic politics and exerted considerable influence over the country’s development. In many cases, Yemeni tribal leaders and other prominent individuals have received far more generous aid payments from Riyadh than from the Yemeni government.

Saudi interference in Yemen is also motivated by a fear that the Arab Spring, which spread from Tunis and Cairo to Sana, might soon reach Riyadh. But the fear that our revolution will cross the border is unfounded. This is an information age revolution; it spreads through Facebook, Twitter and other social media, which are not subject to political boundaries. We ask our neighbors in Saudi Arabia to stop hindering the rule of law and healthy economic development through the purchase of politicians and tribal leaders. We also call on the Saudi government to stop pursuing policies that undermine the people’s desire for democratic change. Saudi initiatives that aim to remove the president while keeping the old regime and its security apparatus intact risk unleashing a civil war, which would no doubt have dire consequences for Saudi Arabia as well as for Yemen.

The young people of this revolution have made their demands clear: authority must be handed over to a transitional presidential council approved by the people. This council will manage the country until a constitutional referendum and elections can be held. And the government’s security forces must never again be used to serve the personal agendas of government officials or to establish a monopoly on power.

Yemen’s people have charted the course of revolution and we will follow this course to its end. We have left our authoritarian past behind. Now, we ask our friends in Washington and Riyadh to help us build a democratic future.

Source: New York Times

Thursday, June 16, 2011

Vodacom grows customers, profit

Vodacom has grown its customer base significantly while headline earning per share have grown by 29%, according to its preliminary results released on Monday. "Group customers increased 9% percent to 43,5-million," Vodacom said in a statement on its results for the year ended March 31, 2011. Headline earnings per share -- a measure of profit -- were up 28,6% to 656 cents per share.

"Credit to the team for the financial and operational results, delivered in an environment of mobile termination rate reductions, price reductions and inflationary cost pressure," Vodacom Group CEO Pieter Uys said. "This has been achieved through a sharp focus on the customer experience, the R6,3-million capital invested in our networks and delivering on our R500 million cost efficiency programme. "The resulting 51% increase in total shareholder returns is really pleasing," he said.

The company declared a final dividend of 280 cents per share. Vodacom's group data revenue increased by 35,5% to R6,4-million while it had a 34,6% growth in its South African data customers to nine million. "The decision we took some years ago to lead the industry on mobile data is bearing fruit," said Uys. "The combination of considerable investment in new base stations and taking charge of our own transmission has put us in an enviable position. The new dual-carrier technology that we're rolling out across the network has both speed and capacity benefits and will support continued growth in the data business."

Source: Mail & Guardian -- Sapa

Sunday, June 12, 2011

Right-wing demagogy the greatest threat - SACP

Central Committee warns against dangerous tendency within ANC alliance

SACP Central Committee Statement

The Central Committee of the SACP met in Johannesburg over the weekend of the 10-12th June. An analysis of the May 18th local government elections, an interaction on challenges within the youth sector (in which we were joined by the national executive committee of the Young Communist League), further consolidation of the SACP's perspectives on government's New Growth Path framework document, and preparations for the commemoration of the SACP's 90th anniversary were among the main items under discussion.

The CC suspended deliberations for most of Saturday to enable CC members to join thousands of other South Africans at the funeral of our beloved leader, cde Albertina Sisulu. Cde Albertina was the second recipient (after cde Madiba) of the SACP's Chris Hani Peace Award. Hamba kahle, Mama Sisulu! May we never forget your inspiring example of courageous, militant and unassuming service to the people of South Africa - you passed on with your dignity and integrity intact.

May 18th Local Government elections

The SACP was an active partner in the ANC's local government election campaign from the outset with the development of the election manifesto, through the candidate selection process, and into mass mobilization and door-to-door work. The CC saluted the role played by our tens of thousands of activists in the campaign.

The CC also congratulated the many communist militants who, in their capacity as ANC members and leaders, have been elected as councilors. In particular, the CC congratulated CC member, cde Zukiswa Ncitha who has been elected mayor of the new Buffalo City Metro, and KZN SACP chairperson, cde James Nxumalo, elected as mayor of the eThekwini metro.

These positive developments which bring added responsibilities to the Party and its members are in line with our medium term vision of seeking to build progressive influence and working class hegemony in all sites of struggle. The SACP calls on all ANC councilors not to take the electorate for granted and to ensure that with our support we rise to the expectations expressed in the campaign.

The CC agreed that with 63% of the vote the ANC together with its alliance partners had, once more, received an overwhelming electoral mandate. The CC further noted that this significant electoral victory was achieved in challenging circumstances - in the midst of the local aftershocks of the global economic crisis, and in the context of many challenges in the local government sphere. In many other countries, from the US to Spain, previously incumbent political parties have suffered massive electoral defeats in the midst of the economic crisis. The ANC-alliance's sustained performance and continued overwhelming majority support from our core constituencies is, therefore, particularly noteworthy.

However, the ANC-alliance would also be seriously mistaken if we did not take note of many warning lights from this election campaign. There was, for a local election, an exceptional voter turnout.

Some of this was attributable to the DA's ability to turn out a very high level of support in so-called "minority", and particularly white areas. But the high turnout was also a popular response from our mass base in provinces and municipalities where the working class and poor sensed that their organizations and their struggle were under threat from an axis of anti-majoritarian forces that included the major media houses, right-wing NGOs like Afriforum, and the DA.

But in other provinces and municipalities there was a noticeable decline in ANC voter turnout, which is in part an indication of frustration with corruption and ineffective ANC performance in some municipalities.

The SACP welcomed the innovative ANC candidate selection process that involved active community participation. Amongst other things, this approach to candidate selection sought to bring popular power to bear in the struggle against organizational gate-keeping, tenderpreneurship, and money-politics. In some cases, regional gate-keepers and money politics still managed to either side-step or hijack the community participation process provoking some of the current popular anger - but, overwhelmingly, community participation proved to be a very positive process. The SACP will be strongly supporting this approach for future elections, while learning lessons and adapting where needed.

The CC noted the many subjective and objective problems in the local government sphere. Much criticism of local government focuses, often correctly, on subjective weaknesses - inappropriate deployments, corruption, tenderpreneurship, etc. However, we need also to look at the objective challenges in the current model of local government and the impossible challenges with which many local governments are confronted. The SACP supports the overall thrust of the Municipal Systems Amendment Bill that has passed through both houses in parliament and now awaits presidential proclamation.

We also support turnaround proposals from the Cooperative Governance and Traditional Affairs department . Amongst other things, we support the measure that office bearers (not members) of political parties should not occupy senior administrative posts in local government; and the need for a more clearly defined separation between the roles of elected councilors and administrators. The SACP strongly supports the critical need to strengthen popular participatory involvement in local government through, amongst other things, ward committees. These measures are not just legalistic and institutional responses to challenges.

They are aimed at professionalizing and greatly improving the efficiency and effectiveness of local government. They will also help to strike at the heart of areas in which corruption and tenderpreneurship have often proliferated. Other critical areas that require attention include the funding model for local government, and the key role of district municipalities in rural development.

Right-wing demagogy within the ranks of the broader movement - the greatest threat to the national democratic revolution

There are many lessons that need to be derived from the May 18th election campaign - but the greatest of all is that factionalism led by a dangerous right-wing demagogy within our broader movement is costing us dearly. This demagogy constitutes the greatest threat, not just to our electoral performance, but also to our hard-won democratic achievements as a country in general.

We are dealing with an anti-worker, anti-left, anti-communist, pseudo-militant demagogy that betrays all of our long-held ANC-alliance traditions of internal organizational democracy, mutual respect for comrades, non-racialism, and service to our people. It has created substantial space for an anti-majoritarian, conservative reactive groundswell that seeks to tarnish the whole movement, portraying us all as anti-constitutionalist and as narrow nationalist chauvinists.

The SACP calls on our Alliance partners to unite, to close ranks and to deal decisively with this grave threat. Closing ranks does not mean that various other debates and differences amongst us should be suppressed - but it does mean that within and across our Alliance we must not open up a dozen fronts of fractious public dispute, as if all differences and debates were of equal significance.

So how do we unite to confront the demagogic challenge? There is one fundamental response - across the Alliance we need to take up with renewed vigour the programme of action that we have agreed upon at the ANC's 2007 Polokwane conference and in subsequent Alliance summits. The programme of action embraces five key pillars - jobs, education and training, health, rural development and the fight against crime and corruption. It is a programme of action that must combine the determined exercise of state power and active mobilization of popular forces.

In the midst of media-supported diversions we often lose sight of very important gains made in these key areas of transformation. Popular mobilization and a change in government policy have seen, for instance, a very significant reduction of mother-to-child HIV/Aids transmission - saving an estimated 67,000 children. There have been important gains in funding students through a reinvigorated mandate for NSFAS. National Treasury has announced very important corruption-busting measures that name and shame fronting and other tenderpreneuring activities and prevent those involved in doing business with government. All of these measures have been won as a result of popular struggles and a more determined and strategic use of state power.

But these advances must be replicated across the board, and particularly in areas of burning concern - notably the crisis of unemployment (especially youth unemployment) and rural development - including the critical questions of accelerated land reform and sustainable rural livelihoods. The CC supports the Department of Land Affairs and Rural Development's intention to bring to cabinet the proposal of reopening the land restitution program. The SACP has resolved to pursue our cooperatives campaign linking this much more actively to prescribed state procurement policies. The SACP will also be closely studying the important Indian rural work-guarantee programme, we believe it has important potential application to SA when addressing rural development and youth unemployment.

The crisis in Swaziland

The deepening economic and social crisis in Swaziland in the midst of a ruling elite's squandering of resources, underlines the importance of increased pressure to ensure that this backward feudal dispensation is finally democratized. The CC noted and welcomed the recent launch of a Swaziland Communist Party which is already making an important impact in strengthening the broader democratic movement.

Forward to the 90th anniversary of the SACP!

The end of July marks the 90th anniversary of the Communist Party in South Africa. In the course of nine decades, the Communist Party has made an indelible contribution to the South African struggle and to our new democratic dispensation. The Communist Party was the first, and for many decades the only, political party in SA that not only aspired to a non-racial future, but had an active membership of black and white comrades shoulder-to-shoulder in struggle. The Communist Party pioneered militant trade unionism, and progressive journalism in SA. As many generations of outstanding ANC leaders, among them cde Nelson Mandela, have acknowledged, the Party has also made an outstanding contribution to consolidating and defending a mass-based and campaigning ANC.

The 90th anniversary celebrations will be launched on the 3rd July in Bushbuckridge, in Mpumalanga, with many Red Forums and other activities in all provinces, culminating in a main rally on 31 July at Sugar Ray Xulu Stadium, Clermont in KZN.

Statement issued by the SACP, June 12 2011

Source: Politicsweb

Friday, June 10, 2011

Zuma's move on Ngcobo 'illegal'

It was always highly unlikely that President Jacob Zuma would allow Deputy Chief Justice Dikgang Moseneke to become chief justice, according to advocate Paul Hoffman, director of the Institute for Accountability in South Africa. "You don't think that was going to happen after what the president did last time," he said, referring to Zuma's announcement in 2009 of Sandile Ngcobo's nomination to take over from Chief Justice Pius Langa when he retired.

Hoffman described Zuma's recent decision to extend Ngcobo's term by another five years as "unconstitutional, illegal and invalid". "I say this with a heavy heart. Sandile Ngcobo is a proper judge because he knows what the role of the rule of law is in a constitutional democracy. "And if an Act of Parliament were to be passed that would extend his term, I would welcome his reappointment," said Hoffman. "But as no Act of Parliament that allows this extension has been passed, I must be true to the law and therefore critical of the president's decision."

Ngcobo's 12-year term is coming to an end in September, but Zuma announced last week he would be extending the term to 2016 in terms of the Judges' Remuneration and Conditions of Employment Act. Legal sources said that Moseneke was widely regarded in legal circles as "too independent" for the post. In 2008 the ANC issued a statement complaining that comments Moseneke made at his birthday party had shown disdain for its delegates to the ANC's national conference in Polokwane in 2007, but it later retracted its complaint. At the time Moseneke was quoted by the Sunday Times as saying: "I chose this job very carefully. I have another 10 to 12 years on the Bench and I want to use my energy to help create an equal society. It's not what the ANC wants or what the delegates want; it is about what is good for the people."

Hoffman said Zuma might also be concerned about three coming legal challenges in the Constitutional Court, two by the Democratic Alliance -- the controversial appointment of Menzi Simelane as prosecutions boss and the decision by former acting prosecutions head Mokotedi Mpshe to drop corruption charges against Zuma -- and Terry Crawford-Brown's bid to force Zuma to appoint a commission of inquiry into the R30-billion arms deal in which Zuma himself was implicated. Hoffman said the Constitution clearly stated that a Constitutional Court judge could hold office for a non-renewable term of 12 years, or until he or she reached the age of 70, whichever occurred first, except where an Act of Parliament extended the term of office of a particular judge.

Professor Pierre de Vos, a constitutional law expert, wrote in his online blog, Constitutionally Speaking, that the Constitution was amended in 2001 to accommodate respected former chief justice Arthur Chaskalson and extend his term of office but after much heated debate Chaskalson retired. "At the time, many constitutional lawyers argued that this amendment was unwise and opposed it. Some lawyers who respected and even revered Chaskalson had a problem with the amendment (generally known as the Chaskalson amendment) because it was argued that as a matter of principle it was unwise for politicians to be involved in extending the term of office of a judge, especially the chief justice." The problem was that it would ­create the impression that the judge was not independent, he said.

Professor Raylene Keightley, director of the Centre for Applied Legal Studies at Wits University, said the legal provisions that the president used to extend the chief justice's term would be challenged. "We wish to emphasise that the challenge is not directed at the current chief justice, or at his competence, integrity or other attributes. The case raises fundamentally important constitutional issues involving among others, the independence of the judiciary. "Clarity on these issues is of vital importance to the administration of justice in South Africa and our challenge is therefore brought with the broader public interest in mind," Keightley said.

Source: Mail & Guardian

Wednesday, June 8, 2011

Is self-help allowed under our new constitution?

Many of us are far too quick to enter into agreements without paying close enough attention to their terms. The folly of this laissez faire approach becomes all too clear when things go wrong and we are surprised to find ourselves at the wrong end of the bargain.

It is at this point that we are reminded of the principle of South African law to the effect that a contracting party is bound by the terms of any contract which has been concluded by him/her. The correct time to complain about a contractual term is before the conclusion of the deal, and not later when the effects of this term are felt.

Our courts recognize that people’s right to freedom of contract should be respected and that this entails giving effect to the terms of agreements reached between the parties, even if these terms are onerous or prejudicial to the interests of one of the parties. We are free to agree to any terms, as long as these are not unlawful. Having agreed to a set of terms, we must be held to this bargain. Our law has also always recognised that, notwithstanding the aforesaid principle, effect ought not to be given to contractual terms which are contrary to public policy. The effect of the new Constitution of South Africa has been, inter alia, to flesh out the meaning of “public policy”. In short if a clause constitutes an unwarranted infringement of a right guaranteed in terms of the Bill of Rights, that clause may be susceptible to attack on the basis that it is contrary to public policy.

The approach of our courts is to conduct an enquiry where the first question is: Is the contractual clause in question per se contrary to public policy? If the answer is in the affirmative then the enquiry need not go any further - the clause is invalid. A contractual term may appear innocuous but its effect in particular circumstances may well offend public interest. Therefore, even if the first question is answered in the negative, the enquiry is not necessarily complete and a further question is posed, namely - Does the operation of the clause in the prevailing circumstances render it contrary to public policy?

In order to answer the questions relating to public policy regard must be taken of our Bill of Rights. One of the rights enshrined in the Bill of Rights is the right of access to our courts, which reads: “Everyone has the right to have any dispute that can be resolved by the application of law decided in a fair public hearing before a court or, where appropriate, another independent and impartial tribunal or forum.” This right is directed against a tendency for parties to take the law into their own hands.

Our courts are constantly working through a massive backlog of civil cases and legal process can drag on for years before any result is achieved. It is not surprising, therefore, that attempts are made to obviate the need to refer issues to the courts. For example, a company which repairs a motor vehicle or electronic equipment may seek the power to sell off the car or tv if the repair costs are not paid on time. A trucking company wants the right to sell off goods which it has transported, if its charges are not paid when due. Do contractual clauses which are aimed at allowing the repairer or transporter to auction goods, without obtaining a court order, fall foul of public policy because they amount to an abuse of the right to access to our courts?

This argument was made in the case Juglal NO and Another v Shopright Checkers (Pty) Ltd t/a OK Franchise Division1 where the court analysed the contractual clause in question and concluded that it regulated the rights of the parties vis-á-vis each other but said nothing about ousting the authority of the courts or restricting the parties’ access to the courts or making a court application unnecessary before action could be taken to perfect the security contemplated in the clause. However, the court did say “That the respondent subjected the terms of the contract and its implementation to the intervention and oversight of the court takes much of the sting out of the appellant’s complaint about the arbitrary, unreasonable and oppressive nature of the contractual powers conferred on it.”

In other words, when considering the second leg of the test discussed above, the court was positively influenced by the fact that the appellant had sought the authority of the court before proceeding to sell the goods which represented his security, even though the clause did not necessarily compel the appellant to do so.

A clause which seeks to oust the jurisdiction of the court would be unconstitutional. If the clause does not prohibit an approach to the court or expressly make an application to court unnecessary, it is probably not, per se, contrary to public policy.

However, an attempt to sell the goods without first seeking court authorisation would often be found to be an infringement of the right of access to court which is enshrined in the Constitution. In other words it may be found to be contrary to public policy in its effect, especially where the debt is in dispute. It is in respect of the second leg of the test highlighted above, concerning the implementation of the clause in these circumstances, where such a clause may fail the test imposed by our new Constitution.


ENS - Edward Nathan Sonnenbergs

Janine Lee

South Africa

Source: Lexology

Monday, June 6, 2011

Durban mayor declares war on corruption

Durban's new mayor on Monday "declared war" against corrupt councillors and officials. “I declare war against fraud, corruption and maladministration and we will take action against councillors and officials who are found to be doing business with the municipality,” James Nxumalo said at the Durban City Hall on Monday afternoon, after being sworn in as the municipality's new mayor. A forensic firm was appointed earlier this year to probe fraud, corruption and maladministration allegations in the municipality. Auditor General Terrence Nombembe's 2009/10 report indicated R532m had been spent irregularly in the municipality.

Nxumalo said strict measures would be put in place to ensure departments adhered to supply chain management processes. The municipality would also not allow officials to flout tender procedures. He said he expected employees to work productively and passionately to improve the lives of residents. The municipality would continue “the great track record of unqualified audits”.

He would convene a two-day workshop in August where the city’s "strategic framework" would be mapped out. Improving the city’s economy, providing jobs and ensuring the costs of public transport, housing and basic services were reduced, would be among subjects to be discussed. Former deputy mayor Logie Naidoo was voted the municipality's new speaker on Monday. Executive committee member Nomvuzo Shabalala would fill the vacancy he left.

Naidoo got 134 votes to the beat the Democratic Alliance's Warwick Chapman, who got 44. The African Christian Democratic Party's speaker candidate Jonathan Naidoo managed to get three votes. Speaking after he was sworn in, Naidoo said he would ensure the municipality was a leading council in South Africa. “I will make sure that this council improves the lives of our people. I will make sure that service delivery is a priority.”

Source: News 24