Congolese protesters opposed to the DRC's Joseph Kabila are picketing on the sidelines of the Mining Indaba in Cape Town, calling on investors to steer clear of the country's mineral resources. Congolese protesters who dispute the recent re-election of Joseph Kabila as president of the Democratic Republic of the Congo (DRC) picketed on the sidelines of the Mining Indaba in Cape Town on Wednesday, calling on investors to steer clear of the country's mineral resources. They also claimed that South Africa had only endorsed Kabila's re-election because prominent South Africans had business interests in the countries' mining sector. Chanting in French and Kikongo, approximately 30 protesters cradled placards and the DRC's flags while they toyi-toyi'd along Coen Steytler avenue outside the Cape Town International Convention Centre.
"Kabila is a killer and rapist"; "Help save the DRC"; and "DRC in deep political crisis -- Illegal delegation as Indaba," read some of the placards. The protests form part of a larger campaign by DRC citizens residing in South Africa who believe the presidential elections in December were illegitimate and fixed in favour of incumbent president Joseph Kabila.
"There is no government representative of the people at the moment in the DRC. Kabila stole the elections and is stealing the wealth of our country -- he must go," Iko Ikotela from Kinshasa told the Mail & Guardian.
Most of those protesting outside the Indaba say opposition leader Etienne Tshisekedi is the rightful leader of the country and was defeated by Kabila only "through fraud". As part of their remonstrations, the protesters are encouraging investors to steer clear of the country's mineral sector, which they believe is "tainted".
"Hey! Please don't invest in the DRC -- you are supporting a murderer and a rapist and buying blood diamonds -- don't do it," shouted one Protester to a bemused looking delegate as he exited the Indaba.
Besides diamonds, other primary minerals mined in the country include cobalt, gold and copper. Despite widespread international condemnation, the South African government ratified Kabila's victory in late December. Ikotela alleges the support from the South African government is solely based on business interests in the DRC, held by prominent South African politicians.
"Your President Zuma and his cronies have mines up in DRC, that's why you are supporting Kabila," he told the M&G.
Presidential spokesperson Mac Maharaj dismissed claims of Zuma's business concerns in the DRC as "far-fetched" and would not comment any further on the matter. While there is no overt evidence to suggest President Zuma is involved in any business concerns -- mining or otherwise -- in the DRC, his nephew Khulubuse Zuma is involved in the country's mineral and energy sector. In response to the protests, the DRC's minerals and energy delegation at the Indaba have set up an emergency number for the country's representatives to contact should picketers threaten them.
"They have been a little aggressive but nothing too hectic. If I think it is bad I will use the number," Alessaine Kwatanga, a businessman in Lubumbashi told the M&G.
Indaba organisers have described the protests as "unfortunate" but say they recognise the rights of DRC citizens to protest against their government and leaders.
"The right to peaceful protest is enshrined in the South African Constitution. The Mining Indaba would like to apologise to our delegates and anyone who might have been inconvenienced," read a statement released on Wednesday.
Source: Mail & Guardian
Showing posts with label Khulubuse Zuma. Show all posts
Showing posts with label Khulubuse Zuma. Show all posts
Wednesday, February 8, 2012
Sunday, January 15, 2012
Mabongi Shauwn Mpisane's R176m deal
Mabongi Shauwn Mpisane is demanding the eThekwini municipality honour a secret R176-million housing contract on which it is backtracking. The contract, which never went out to tender, was suspended after the city's legal advisers pointed out that Mabongi Shauwn Mpisane had a criminal record.
Mpisane and her husband, former city policeman Sibusiso Mpisane, are known for their flashy lifestyle and for hosting lavish parties attended by celebrities and high-ranking politicians. Mpisane's company, Zikhulise Cleaning, Maintenance and Transport, of which she is sole director, is also listed in a forensic report on alleged financial irregularities and tender fraud within the municipality. The company has received more than R300-million in housing contracts from the city over the past five years - excluding the one for R176-million - while Mpisane is facing 172 new tax-related charges. And, despite probes into Mpisane and her company by the municipality, the provincial housing department and the SA Revenue Service, in September last year the municipality gave her the contract to build and complete 2114 low-cost homes in Umlazi, south of Durban. Normal tender procedures were not followed and the city suspended the contract after being advised to do so by its legal department.
The Sunday Times has established that Mpisane instructed her lawyers to force the municipality to reverse its decision. In a letter dated December 6 2011 from lawyer Themba Mjoli, the municipality was given a 24-hour deadline to reverse its decision. "Unless you do so immediately ... our instructions are to seek appropriate relief from the high court on an urgent basis," he wrote. This week Mjoli declined to comment, saying he had just returned from holiday and was unaware if the city had responded. Municipal spokesman Thabo Mofokeng failed to answer questions forwarded to him. According to municipal documents, Mpisane's company was hand-picked for the tender by the city's bid adjudication committee in September last year - despite it being tarnished by claims of poor workmanship in several of its projects.
Documents seen by the Sunday Times show that the committee used Section 36 of the procurement policy to bypass the normal public tender route. However, a month later the municipality's legal department objected and, on two separate occasions, warned the committee to reverse its decision. In two scathing letters, legal advisers questioned the selection of Mpisane's company, saying she had been convicted of VAT fraud in 2005. At the time, the company was fined R15000 and Mpisane received a three-year jail term suspended for five years.
The advisers also said the Close Corporations Act prohibited Mpisane from owning a business because of her conviction and sentence. "The amount of public money involved is such that the [committee] is obliged to follow the public tender process, so that council can get value for money," it said.
Housing head Cogi Pather wrote to Mpisane on December 2 explaining their decision to suspend the contract. Mjoli responded: "You are undoubtedly aware that the impugned decision was taken and made arbitrarily and capriciously." The lawyer attacked the municipality for ignoring the cost to Zikhulise of paying "1000 employees" and "18 subcontractors". "On a more serious note, the community, which is currently awaiting being accommodated before the builder's shutdown, is likely to be seriously angered by your impugned decision."
Mjoli also questioned the applicability of the Close Corporations Act in view of the fact that Mpisane's sentence had been suspended. Council minutes show that the tender in question was simply reconfigured from an old deal in 2006 for the construction of 3100 homes in Umlazi. The Mpisanes were then appointed as the main contractors but, after the auditor-general denounced the deal as highly irregular two years ago, work came to a halt. But early last year the provincial human settlements department approved the new, re-jigged contract to finish the work.
In 2010 forensic auditors Ngubane & Co recommended an investigation into Zikhulise and 34 other contractors. Two years ago, the Special Investigating Unit also began a probe of payments linked to a R37-million housing project in Durban's Lamontville township involving Mpisane.
The DA's Tex Collins, who has cried foul over the municipality's procurement practices for years, said: "Clearly all is not well ... any such work [Mpisane's company is involved in] should be stopped immediately for investigation." Mpisane and her husband, meanwhile, spent an estimated R1-million on an Egyptian-themed seventh wedding anniversary in March last year. Guests included socialite Khanyi Mbau, Khulubuse Zuma and May Mkhize, wife of KwaZulu-Natal premier Zweli Mkhize.
Source: Times Live
Mpisane and her husband, former city policeman Sibusiso Mpisane, are known for their flashy lifestyle and for hosting lavish parties attended by celebrities and high-ranking politicians. Mpisane's company, Zikhulise Cleaning, Maintenance and Transport, of which she is sole director, is also listed in a forensic report on alleged financial irregularities and tender fraud within the municipality. The company has received more than R300-million in housing contracts from the city over the past five years - excluding the one for R176-million - while Mpisane is facing 172 new tax-related charges. And, despite probes into Mpisane and her company by the municipality, the provincial housing department and the SA Revenue Service, in September last year the municipality gave her the contract to build and complete 2114 low-cost homes in Umlazi, south of Durban. Normal tender procedures were not followed and the city suspended the contract after being advised to do so by its legal department.
The Sunday Times has established that Mpisane instructed her lawyers to force the municipality to reverse its decision. In a letter dated December 6 2011 from lawyer Themba Mjoli, the municipality was given a 24-hour deadline to reverse its decision. "Unless you do so immediately ... our instructions are to seek appropriate relief from the high court on an urgent basis," he wrote. This week Mjoli declined to comment, saying he had just returned from holiday and was unaware if the city had responded. Municipal spokesman Thabo Mofokeng failed to answer questions forwarded to him. According to municipal documents, Mpisane's company was hand-picked for the tender by the city's bid adjudication committee in September last year - despite it being tarnished by claims of poor workmanship in several of its projects.
Documents seen by the Sunday Times show that the committee used Section 36 of the procurement policy to bypass the normal public tender route. However, a month later the municipality's legal department objected and, on two separate occasions, warned the committee to reverse its decision. In two scathing letters, legal advisers questioned the selection of Mpisane's company, saying she had been convicted of VAT fraud in 2005. At the time, the company was fined R15000 and Mpisane received a three-year jail term suspended for five years.
The advisers also said the Close Corporations Act prohibited Mpisane from owning a business because of her conviction and sentence. "The amount of public money involved is such that the [committee] is obliged to follow the public tender process, so that council can get value for money," it said.
Housing head Cogi Pather wrote to Mpisane on December 2 explaining their decision to suspend the contract. Mjoli responded: "You are undoubtedly aware that the impugned decision was taken and made arbitrarily and capriciously." The lawyer attacked the municipality for ignoring the cost to Zikhulise of paying "1000 employees" and "18 subcontractors". "On a more serious note, the community, which is currently awaiting being accommodated before the builder's shutdown, is likely to be seriously angered by your impugned decision."
Mjoli also questioned the applicability of the Close Corporations Act in view of the fact that Mpisane's sentence had been suspended. Council minutes show that the tender in question was simply reconfigured from an old deal in 2006 for the construction of 3100 homes in Umlazi. The Mpisanes were then appointed as the main contractors but, after the auditor-general denounced the deal as highly irregular two years ago, work came to a halt. But early last year the provincial human settlements department approved the new, re-jigged contract to finish the work.
In 2010 forensic auditors Ngubane & Co recommended an investigation into Zikhulise and 34 other contractors. Two years ago, the Special Investigating Unit also began a probe of payments linked to a R37-million housing project in Durban's Lamontville township involving Mpisane.
The DA's Tex Collins, who has cried foul over the municipality's procurement practices for years, said: "Clearly all is not well ... any such work [Mpisane's company is involved in] should be stopped immediately for investigation." Mpisane and her husband, meanwhile, spent an estimated R1-million on an Egyptian-themed seventh wedding anniversary in March last year. Guests included socialite Khanyi Mbau, Khulubuse Zuma and May Mkhize, wife of KwaZulu-Natal premier Zweli Mkhize.
Source: Times Live
Sunday, September 5, 2010
Guest Columnist BEE has evolved into a family affair: ZEE
There was cautious optimism among many leftists in the ANC that the ousting of Thabo Mbeki in Polokwane might mark a shift towards a much more egalitarian economic policy, including Black Economic Empowerment (BEE). Instead, BEE is increasingly becoming too narrow, amounting to ZEE – that is, Zuma Economic Empowerment.
The recent multibillion-rand Arcelor-Mittal BEE deal involving Duduzane, President Jacob Zuma’s son, is another example of how BEE has become too narrow. To crown it all, the president’s nephew, Khulubuse Zuma, seems to have suddenly become an African imperialist, amassing oil resources in the Democratic Republic of Congo.
ZEE is not only an assault on the Young Communist League and South African Communist Party (SACP) resolutions – which called for the nationalisation of monopoly industries – it amounts to a burial of the Freedom Charter. Only a few can be misled to believe that there is no link between Zuma’s rise to the presidency and his family’s rise to riches. One’s leadership position in a political party, particularly the ANC, allows one to gain and/or retain access to the institutional power that makes one the preferred candidate for white business to select to be part of its established enterprises. These politicians rely heavily on the control of organisational power to generate wealth. Access to the state provides politicians with leverage to select those who can acquire shares in white-owned firms.
South Africa’s political system is based on a multiparty electoral democracy. Access to state institutional power is achieved through elections. Consequently, many politicians are interested in party politics. Since they rely on organisational power for wealth accumulation, potential and actual entrepreneurs find it rational to contest directly or indirectly for political organisational leadership positions as an entry point to the state and its economic resources. However, not every political party matters.
Because the ANC is backed by the SACP and the Congress of South African Trade Unions – not to mention its history in the national liberation struggle – it is highly supported by the electorate and, therefore, matters. Individuals acting within and through the state have the power to decide who gets state-owned resources. However, the fact that individuals in the state have this institutional power does not mean we will know beforehand which black politicians will secure access to these resources. This is mediated by a dominant political party in government.
The BEE model is structured favourably for politically connected politicians and their proxies to enter into business through the state. The state owns key economic resources required by business that can only be accessed with state permission. The state acts as a purchaser of services from the private sector. Through its financial institutions, the state acts as a money lender. It is also a grantor of licences for, among other things, mining rights. Through privatisation, it acts as a seller of its assets.
Business can gain access to state-owned resources through a BEE criterion that requires black people to be owners and managers of enterprises. White businesses can use black people who are politically connected to gain access to these resources – and more recently, as a means to deflect ANC Youth League calls for nationalisation. This explains why certain black millionaires associated with the liberation movement have been cherry-picked by white businesses.
The BEE model has promoted competition among politicians for access to institutional power and co-option by white business. This competition finds expression in political conflicts within the ANC and the state. We are indeed on the wrong economic redistribution path. BEE has become a family affair. Children whose parents are not politicians will have to lift themselves out of poverty by their own bootstraps.
The youth’s cynical acquiescence of ZEE may find concrete expression in non-participation in political activism, including voting. After all, why vote if voting means empowering politicians to empower their children.
Source: City Press
The recent multibillion-rand Arcelor-Mittal BEE deal involving Duduzane, President Jacob Zuma’s son, is another example of how BEE has become too narrow. To crown it all, the president’s nephew, Khulubuse Zuma, seems to have suddenly become an African imperialist, amassing oil resources in the Democratic Republic of Congo.
ZEE is not only an assault on the Young Communist League and South African Communist Party (SACP) resolutions – which called for the nationalisation of monopoly industries – it amounts to a burial of the Freedom Charter. Only a few can be misled to believe that there is no link between Zuma’s rise to the presidency and his family’s rise to riches. One’s leadership position in a political party, particularly the ANC, allows one to gain and/or retain access to the institutional power that makes one the preferred candidate for white business to select to be part of its established enterprises. These politicians rely heavily on the control of organisational power to generate wealth. Access to the state provides politicians with leverage to select those who can acquire shares in white-owned firms.
South Africa’s political system is based on a multiparty electoral democracy. Access to state institutional power is achieved through elections. Consequently, many politicians are interested in party politics. Since they rely on organisational power for wealth accumulation, potential and actual entrepreneurs find it rational to contest directly or indirectly for political organisational leadership positions as an entry point to the state and its economic resources. However, not every political party matters.
Because the ANC is backed by the SACP and the Congress of South African Trade Unions – not to mention its history in the national liberation struggle – it is highly supported by the electorate and, therefore, matters. Individuals acting within and through the state have the power to decide who gets state-owned resources. However, the fact that individuals in the state have this institutional power does not mean we will know beforehand which black politicians will secure access to these resources. This is mediated by a dominant political party in government.
The BEE model is structured favourably for politically connected politicians and their proxies to enter into business through the state. The state owns key economic resources required by business that can only be accessed with state permission. The state acts as a purchaser of services from the private sector. Through its financial institutions, the state acts as a money lender. It is also a grantor of licences for, among other things, mining rights. Through privatisation, it acts as a seller of its assets.
Business can gain access to state-owned resources through a BEE criterion that requires black people to be owners and managers of enterprises. White businesses can use black people who are politically connected to gain access to these resources – and more recently, as a means to deflect ANC Youth League calls for nationalisation. This explains why certain black millionaires associated with the liberation movement have been cherry-picked by white businesses.
The BEE model has promoted competition among politicians for access to institutional power and co-option by white business. This competition finds expression in political conflicts within the ANC and the state. We are indeed on the wrong economic redistribution path. BEE has become a family affair. Children whose parents are not politicians will have to lift themselves out of poverty by their own bootstraps.
The youth’s cynical acquiescence of ZEE may find concrete expression in non-participation in political activism, including voting. After all, why vote if voting means empowering politicians to empower their children.
Source: City Press
Tuesday, August 17, 2010
'Stop the politicians' feeding frenzy'
Cosatu leader Zwelinzima Vavi has warned that South Africa was slipping into becoming a "predatory state" where a new tier of leaders believed it was their turn to "feed". "There is an order in a predatory state - and I'm not saying that is what is happening - but in an ordinary predatory state there is an order in the feeding trough. The first family must feed first, and then the cabinet must come, and its family, and then the provincial leadership and the council. In the process we have battles of short-term interest," he said.
The Cosatu general secretary was speaking at a political school organised by the National Union of Metalworkers' of SA (Numsa) in Joburg last night. Fellow panellist, ANC secretary-general Gwede Mantashe, told the gathering the success of the ANC's struggles was not to be measured "on how many billionaires we have produced", but rather how the poverty experienced by the majority of people was addressed. The alliance leaders' comments come after multibillion-rand deals involving people directly linked to President Jacob Zuma, including his son, Duduzane, and his nephew, Khulubuse Zuma.
Mantashe asked whether having 20 black people among the top richest people in the country was really all that the "national democratic revolution" was about. The ANC's renewal campaign was about returning the party to its members. "It can't be dominated by a small inner circle that controls resources and gives access to wealth," he said.
Steel giant ArcelorMittal has come under fire after announcing a R9 billion deal to sell a 26 percent stake in its business, a transaction in which Duduzane Zuma as well as the Gupta family and other close associates of Zuma have scored millions of rands. Vavi said when it became a matter of politicians awaiting their turn to "feed", this was a "vulgarisation" of the alliance's struggle to liberate black African people. Economic empowerment and job creation were inextricably linked, he said. He criticised the government's "dilly-dallying" and "confusion" over developing a plan to curb the "job-loss bloodbath", that saw more than one million people lose their jobs in the past year. "Since April we are being told there is an economic growth path (policy document) and that it is coming. Up to now we have nothing in our hands, and we are going to discuss it for the first time in the (ANC's national general council, its mid-term policy review conference). Even that shows that there is a state of confusion up there," Vavi said. There was a growth path envisaged by cabinet and a separate one envisioned by the ANC, Vavi said. "As a result... you might be going in two different directions. It is a crisis."
Also present was SACP general secretary Blade Nzimande, who called for a review of the country's black economic empowerment policies. "Who has it worked for? And is it being corrupted in a big way?" he asked. Nzimande repeated his warnings against "tenderpreneurs" - people who manipulate state contracts to enrich themselves - and businesses that chased state tenders rather than creating opportunities in the private sector. "BEE is in a big crisis, so its roots (are) in picking on the state. When that goes on, we will turn South Africa into one big tender which will be sold to the highest bidder," he said. "You will bring in counter-revolution, because anything that stands in the way, will be dealt with quite severely."
Source: IOL
The Cosatu general secretary was speaking at a political school organised by the National Union of Metalworkers' of SA (Numsa) in Joburg last night. Fellow panellist, ANC secretary-general Gwede Mantashe, told the gathering the success of the ANC's struggles was not to be measured "on how many billionaires we have produced", but rather how the poverty experienced by the majority of people was addressed. The alliance leaders' comments come after multibillion-rand deals involving people directly linked to President Jacob Zuma, including his son, Duduzane, and his nephew, Khulubuse Zuma.
Mantashe asked whether having 20 black people among the top richest people in the country was really all that the "national democratic revolution" was about. The ANC's renewal campaign was about returning the party to its members. "It can't be dominated by a small inner circle that controls resources and gives access to wealth," he said.
Steel giant ArcelorMittal has come under fire after announcing a R9 billion deal to sell a 26 percent stake in its business, a transaction in which Duduzane Zuma as well as the Gupta family and other close associates of Zuma have scored millions of rands. Vavi said when it became a matter of politicians awaiting their turn to "feed", this was a "vulgarisation" of the alliance's struggle to liberate black African people. Economic empowerment and job creation were inextricably linked, he said. He criticised the government's "dilly-dallying" and "confusion" over developing a plan to curb the "job-loss bloodbath", that saw more than one million people lose their jobs in the past year. "Since April we are being told there is an economic growth path (policy document) and that it is coming. Up to now we have nothing in our hands, and we are going to discuss it for the first time in the (ANC's national general council, its mid-term policy review conference). Even that shows that there is a state of confusion up there," Vavi said. There was a growth path envisaged by cabinet and a separate one envisioned by the ANC, Vavi said. "As a result... you might be going in two different directions. It is a crisis."
Also present was SACP general secretary Blade Nzimande, who called for a review of the country's black economic empowerment policies. "Who has it worked for? And is it being corrupted in a big way?" he asked. Nzimande repeated his warnings against "tenderpreneurs" - people who manipulate state contracts to enrich themselves - and businesses that chased state tenders rather than creating opportunities in the private sector. "BEE is in a big crisis, so its roots (are) in picking on the state. When that goes on, we will turn South Africa into one big tender which will be sold to the highest bidder," he said. "You will bring in counter-revolution, because anything that stands in the way, will be dealt with quite severely."
Source: IOL
Friday, August 13, 2010
Aurora director defends deaths
An Aurora director has defended the killing of alleged illegal miners at the mine's Grootvlei operations, saying this was about protecting the company's assets. "It is simple... if you go out there and steal gold, should I just go down on my knees and pray? It doesn't work like that. We have to protect our assets," Aurora Empowerment Systems commercial director Thulani Ngubane told Sapa on Friday.
He said in telephone interview the "illegal" miners were trying to gain underground access by force. "They (the men) had guns and everything... these illegal miners got shot going down underneath by force. Tell me what more our security could have done?" Ngubane asked. "It's not as if our people were lunatics and just went crazy. Somewhere, somehow, something needed to happen so there would be a stop to everything."
The police pulled out the bodies of four people on Thursday following reports speculating that up to 20 miners could have been shot dead by security guards at the mine, which is co-owned by President Jacob Zuma's nephew Khulubuse Zuma and Nelson Mandela's grandson Zondwa Mandela. "It was not the first time that a shooting took place," said Ngubane. "One of our security cars has got bullet holes because of the resistance of illegal miners. I can show you ugly photos of the cars that had got bullet holes."
Ngubane said the men were armed with guns and were "there for the challenge". He said it was clear that they would have resisted by force if security officials tried to stop them from going underground. "It's not a right thing that people should come and try and invade our mine and steal our gold by force."
Ngubane said all mining houses struggled to deal with the problem of "illegal miners". "How do you manage thugs? It's a problem."
A lawyer representing the security guards, Piet du Plessis, told Sapa that the guards did not act unlawfully. "There are allegations about people being shot point blank... it is pure, total nonsense and our people did not act unlawfully," said Du Plessis. The security guards were cooperating with the police, he added, declining to give more details. But Du Plessis did say that the police were already informed "about the fact that a shooting occurred and that injuries and/or death may have ensued" on Monday.
The Sowetan newspaper, which broke the story on Thursday, said the security company did not inform the police. It also quoted a survivor as saying he heard policemen saying to each other in Afrikaans, "skiet almal [shoot everybody]" before they opened fire. "The SA Police Service was also informed of the fact that the unlawful miners were armed and that suspected explosives were seen in the shaft where the incident occurred," said Du Plessis. He said the police arrested six illegal miners on the scene on Monday.
Police spokeswoman Colonel Noxolo Kweza said she could not immediately confirm the information. The police said they started searching for bodies on Thursday after the report appeared in the Sowetan newspaper. Four bodies were recovered. The police continued the search on Friday but said they could not find more bodies. Police officers were on the scene, trying to figure out what exactly happened at the mine this week. "We are busy investigating," said Kweza.
Source: Times Live
He said in telephone interview the "illegal" miners were trying to gain underground access by force. "They (the men) had guns and everything... these illegal miners got shot going down underneath by force. Tell me what more our security could have done?" Ngubane asked. "It's not as if our people were lunatics and just went crazy. Somewhere, somehow, something needed to happen so there would be a stop to everything."
The police pulled out the bodies of four people on Thursday following reports speculating that up to 20 miners could have been shot dead by security guards at the mine, which is co-owned by President Jacob Zuma's nephew Khulubuse Zuma and Nelson Mandela's grandson Zondwa Mandela. "It was not the first time that a shooting took place," said Ngubane. "One of our security cars has got bullet holes because of the resistance of illegal miners. I can show you ugly photos of the cars that had got bullet holes."
Ngubane said the men were armed with guns and were "there for the challenge". He said it was clear that they would have resisted by force if security officials tried to stop them from going underground. "It's not a right thing that people should come and try and invade our mine and steal our gold by force."
Ngubane said all mining houses struggled to deal with the problem of "illegal miners". "How do you manage thugs? It's a problem."
A lawyer representing the security guards, Piet du Plessis, told Sapa that the guards did not act unlawfully. "There are allegations about people being shot point blank... it is pure, total nonsense and our people did not act unlawfully," said Du Plessis. The security guards were cooperating with the police, he added, declining to give more details. But Du Plessis did say that the police were already informed "about the fact that a shooting occurred and that injuries and/or death may have ensued" on Monday.
The Sowetan newspaper, which broke the story on Thursday, said the security company did not inform the police. It also quoted a survivor as saying he heard policemen saying to each other in Afrikaans, "skiet almal [shoot everybody]" before they opened fire. "The SA Police Service was also informed of the fact that the unlawful miners were armed and that suspected explosives were seen in the shaft where the incident occurred," said Du Plessis. He said the police arrested six illegal miners on the scene on Monday.
Police spokeswoman Colonel Noxolo Kweza said she could not immediately confirm the information. The police said they started searching for bodies on Thursday after the report appeared in the Sowetan newspaper. Four bodies were recovered. The police continued the search on Friday but said they could not find more bodies. Police officers were on the scene, trying to figure out what exactly happened at the mine this week. "We are busy investigating," said Kweza.
Source: Times Live
Friday, July 2, 2010
Aurora link to suspect land deal
A controversial property developer in the North West province has links to empowerment company Aurora Empowerment Systems. Despite Aurora's dire financial troubles with the liquidated Pamodzi Grootvlei and Orkney mines, the company appears to be interested in a questionable land deal on the Hartbeespoort Dam that has left the local Madibeng municipality divided. It seems the deal secured by developer Naas Grimbeek traded on political clout. The land was sold for R77-million but is said to be worth much more and the deal was pushed through by the province in the teeth of opposition from the local council.
Aurora's political credentials are well established. Khulubuse Zuma, President Jacob Zuma's nephew, Michael Hulley, Zuma's lawyer, and Zondwa Mandela, Nelson Mandela's grandson, are on the Aurora board. In July last year Aurora announced with huge fanfare the R78,5-million acquisition of Zambian-based company, Redwood Timber Merchants, from Grimbeek. The asset would be injected into the listed company Cenmag.
In interviews Khulubuse Zuma said: "Aurora owns Cenmag. Cenmag is the vehicle that we are going to use to make a string of acquisitions. This is only one -- there are other acquisitions that are coming to the fore. Redwood Timber is the biggest timber company in the southern hemisphere, the largest sawmill in the southern hemisphere." Zuma said Grimbeek had already been paid R32-million. But the deal with Cenmag collapsed and it appears there are other claims over the assets of Redwood.
This week Grimbeek first claimed the Redwood deal had collapsed because Aurora was unable to pay for it -- but if financing came through from Aurora's latest funders, the deal would be on again. He later declined to say anything more about the deal, other than the contract was being renegotiated. Meanwhile, the M&G has established that the Industrial Development Corporation has obtained a R14,5-million warrant of execution against Grimbeek and his companies for the non-payment of a loan for Redwood Timbers. Grimbeek would not answer questions about the warrant. It appears the loan was to cover debts still owing on the company and that attempts have been made by the Zambian government to repossess the property on which the sawmill is located.
Now Grimbeek has emerged as the man behind what has been described as a "murky purchase" of approximately 400ha of prime land, the Oberon resort, on the Hartbeespoort Dam. But he denied that Aurora was involved in the land deal, although he said Zuma had expressed an interest in Oberon. But contractors working for Grimbeek on the resort, renamed Eagle Waters Wildlife, said Grimbeek had mentioned Aurora as a stakeholder in the project. There are other smaller links.
The M&G has established that, in December last year, Aurora made a R14 000 payment to Hentiq 2784, a company through which Grimbeek owns the property. Grimbeek says it was repayment of a loan. Merloni Brand Consultancy, owned by Mandela and Yaseen Theba, the son-in-law of Suliman Bhana, a controversial former adviser to Aurora, were employed by Grimbeek to design the website for Eagle Waters. Grimbeek said that the relationship between him, Mandela and Zuma was confidential, though he admitted earlier that he spoke regularly to the two Aurora directors.
Eagle Waters is the talk of the town in Hartbeespoort, with local papers, councillors and business people in an uproar about what they see as a land deal sorely lacking in transparency. Oberon, the land where Eagle Waters is being built, was the last piece of public-access land open to the community. "It's ridiculous," says Titus Mlambo, secretary of the local policing forum. "They didn't even ask our consent. We are surprised that they sold this land because there are informal settlements on it and these people will be evicted. Now, we have no access to the dam." Grimbeek bought the Oberon land from the North West department of public works, roads and transport for R77-million, but local estate agents said the property's value was closer to R450-million. Grimbeek disputes this. He said his valuations showed that the land, without the development of services, was worth between R70-million and R120-million. A high-level source in the North West department of public works told the M&G that the deal did not go through the usual channels but was treated as a special project by the provincial minister and premier.
Originally the land was under a 99-year lease to the Madibeng local municipality, which still had 86 years left on the lease when it was sold off to Grimbeek in 2009. The M&G understands that the provincial department put significant pressure on the municipality to sign a clearance certificate to allow the land to be sold to Grimbeek. A number of ward councillors for the area who initially were vehemently opposed the sale, believing it would be detrimental to the community, later changed their minds. A member of the community who asked not to be named said the councillors felt they were "fighting a losing battle". "There was pressure from the consortium and the provincial government. They said they had already sold the land." A councillor also said that a high-level politician had intervened when the "transparency and legitimacy" of the land deal was questioned and told the councillor to back off.
Grimbeek said the purchase was above board and his company acted "ethically and diligently". He would not say where the funding had come from for it or if the full purchase price had been paid. The M&G had not received responses from the province, the municipality or Aurora at the time of going to print.
Source: Mail & Guardian
Aurora's political credentials are well established. Khulubuse Zuma, President Jacob Zuma's nephew, Michael Hulley, Zuma's lawyer, and Zondwa Mandela, Nelson Mandela's grandson, are on the Aurora board. In July last year Aurora announced with huge fanfare the R78,5-million acquisition of Zambian-based company, Redwood Timber Merchants, from Grimbeek. The asset would be injected into the listed company Cenmag.
In interviews Khulubuse Zuma said: "Aurora owns Cenmag. Cenmag is the vehicle that we are going to use to make a string of acquisitions. This is only one -- there are other acquisitions that are coming to the fore. Redwood Timber is the biggest timber company in the southern hemisphere, the largest sawmill in the southern hemisphere." Zuma said Grimbeek had already been paid R32-million. But the deal with Cenmag collapsed and it appears there are other claims over the assets of Redwood.
This week Grimbeek first claimed the Redwood deal had collapsed because Aurora was unable to pay for it -- but if financing came through from Aurora's latest funders, the deal would be on again. He later declined to say anything more about the deal, other than the contract was being renegotiated. Meanwhile, the M&G has established that the Industrial Development Corporation has obtained a R14,5-million warrant of execution against Grimbeek and his companies for the non-payment of a loan for Redwood Timbers. Grimbeek would not answer questions about the warrant. It appears the loan was to cover debts still owing on the company and that attempts have been made by the Zambian government to repossess the property on which the sawmill is located.
Now Grimbeek has emerged as the man behind what has been described as a "murky purchase" of approximately 400ha of prime land, the Oberon resort, on the Hartbeespoort Dam. But he denied that Aurora was involved in the land deal, although he said Zuma had expressed an interest in Oberon. But contractors working for Grimbeek on the resort, renamed Eagle Waters Wildlife, said Grimbeek had mentioned Aurora as a stakeholder in the project. There are other smaller links.
The M&G has established that, in December last year, Aurora made a R14 000 payment to Hentiq 2784, a company through which Grimbeek owns the property. Grimbeek says it was repayment of a loan. Merloni Brand Consultancy, owned by Mandela and Yaseen Theba, the son-in-law of Suliman Bhana, a controversial former adviser to Aurora, were employed by Grimbeek to design the website for Eagle Waters. Grimbeek said that the relationship between him, Mandela and Zuma was confidential, though he admitted earlier that he spoke regularly to the two Aurora directors.
Eagle Waters is the talk of the town in Hartbeespoort, with local papers, councillors and business people in an uproar about what they see as a land deal sorely lacking in transparency. Oberon, the land where Eagle Waters is being built, was the last piece of public-access land open to the community. "It's ridiculous," says Titus Mlambo, secretary of the local policing forum. "They didn't even ask our consent. We are surprised that they sold this land because there are informal settlements on it and these people will be evicted. Now, we have no access to the dam." Grimbeek bought the Oberon land from the North West department of public works, roads and transport for R77-million, but local estate agents said the property's value was closer to R450-million. Grimbeek disputes this. He said his valuations showed that the land, without the development of services, was worth between R70-million and R120-million. A high-level source in the North West department of public works told the M&G that the deal did not go through the usual channels but was treated as a special project by the provincial minister and premier.
Originally the land was under a 99-year lease to the Madibeng local municipality, which still had 86 years left on the lease when it was sold off to Grimbeek in 2009. The M&G understands that the provincial department put significant pressure on the municipality to sign a clearance certificate to allow the land to be sold to Grimbeek. A number of ward councillors for the area who initially were vehemently opposed the sale, believing it would be detrimental to the community, later changed their minds. A member of the community who asked not to be named said the councillors felt they were "fighting a losing battle". "There was pressure from the consortium and the provincial government. They said they had already sold the land." A councillor also said that a high-level politician had intervened when the "transparency and legitimacy" of the land deal was questioned and told the councillor to back off.
Grimbeek said the purchase was above board and his company acted "ethically and diligently". He would not say where the funding had come from for it or if the full purchase price had been paid. The M&G had not received responses from the province, the municipality or Aurora at the time of going to print.
Source: Mail & Guardian
Friday, June 11, 2010
Aurora mine’s toxic water crisis
The East Rand was an hour away from an environmental disaster this week, when acid mine water started to flood the Grootvlei mine owned by the embattled empowerment company, Aurora Empowerment Systems. Workers angered by months of working without pay had downed tools, bringing the 10 pump stations at the mine to a standstill for the first time in 75 years. The toxic water would have led to the contamination of the East Rand’s groundwater resources within three years and potentially caused sinkholes near Nigel and Springs. Underground water must be pumped out continually for mining to continue. When it flows over the mined rocks, it becomes toxic.
General maintenance has not been conducted at the mine since March, when most Grootvlei workers went on strike over non-payment of wages and the mine’s insurance for their workers had also lapsed.
On Monday 100 remaining workers Grootvlei mine’s care and maintenance unit went on strike. The unit is responsible for pumping acid water out of Shaft 3 to prevent the flooding of the East Basin on the East Rand. On Wednesday water began flooding the underground pump station room. With an hour to go until the station became inaccessible to workers, management pleaded with workers to return to work, offering them 25% of their May wages. “We decided to go back again, because it was the ethical thing to do,” said one employee. A small band of workers ventured down Shaft 3 again to restart pumping. The mine is incredibly unsafe and basically a time bomb,” said Gideon du Plessis, Solidarity deputy general secretary. “The workers are on a suicide mission. They are true heroes for risking their lives.”
Michael Hulley, Aurora non-executive director, has promised in a letter that the worker’s full May salaries will be paid by June 21 and that third party insurance will be reinstated on June 16. Du Plessis said the workers would quit on June 21 if the latest promises were broken. Khulubuse Zuma, President Jacob Zuma’s nephew, Hulley, Zuma’s lawyer, and Zondwa Mandela, Nelson Mandela’s grandson, feature on the Aurora board, giving the company heavy political clout.
Aurora has a management agreement with the liquidators to operate its East Rand and Orkney assets, after its bid to buy the liquidated Pamodzi mines was accepted. But the cashstrapped company had been running into trouble amid allegations of asset stripping, mismanagement and questionable financial transfers. Aurora’s first investor withdrew, while a second investor will release funds only once it lists on the JSE. It is expected to do so only in August. This week a Chinese consortium put in a new bid of $51-million for the Pamodzi assets, but sources close to the deal are worried that there may soon be no mine to operate.
Environmental reports on the East Rand’s East Basin have warned of acid water bubbling into the street of Nigel and Springs within three years and destroying the East Rand’s groundwater resources. The Vaal River barrage could also be at risk. The Grootvlei pumps are the last operating in mostly abandoned mines on the East Rand and carry responsibility for all the East Basin’s acid mine water. Marius Keet, deputy director of water quality management at the department of water affairs, said his department was extremely concerned about the situation at Grootvlei and would have to intervene if pumping ceased again. “Although it’s the mine’s responsibility to ensure that the pumps are all operational, the department will not allow the mine to flood the pumps as this will result in the flooding of the basin and subsequently the decanting of acid mine drainage,” he said. “Apart from the negative impact on the environment, sinkhole formation is not excluded.” He said Aurora would be held accountable for any future environmental disaster if pumping stopped. It already faces criminal charges for pumping acid water into the Blesbokspruit.
But Enver Motala, the Pamodzi liquidator, played down the pump station fiasco. “We had heard about the threats that the pump stations would be switched off, but Aurora assured us that pumping was continuing,” he said. “As far as we’re concerned, the situation is under control.” Thulani Ngubane, Aurora director and spokesperson, did not respond to questions.
Source: Mail & Guardian
General maintenance has not been conducted at the mine since March, when most Grootvlei workers went on strike over non-payment of wages and the mine’s insurance for their workers had also lapsed.
On Monday 100 remaining workers Grootvlei mine’s care and maintenance unit went on strike. The unit is responsible for pumping acid water out of Shaft 3 to prevent the flooding of the East Basin on the East Rand. On Wednesday water began flooding the underground pump station room. With an hour to go until the station became inaccessible to workers, management pleaded with workers to return to work, offering them 25% of their May wages. “We decided to go back again, because it was the ethical thing to do,” said one employee. A small band of workers ventured down Shaft 3 again to restart pumping. The mine is incredibly unsafe and basically a time bomb,” said Gideon du Plessis, Solidarity deputy general secretary. “The workers are on a suicide mission. They are true heroes for risking their lives.”
Michael Hulley, Aurora non-executive director, has promised in a letter that the worker’s full May salaries will be paid by June 21 and that third party insurance will be reinstated on June 16. Du Plessis said the workers would quit on June 21 if the latest promises were broken. Khulubuse Zuma, President Jacob Zuma’s nephew, Hulley, Zuma’s lawyer, and Zondwa Mandela, Nelson Mandela’s grandson, feature on the Aurora board, giving the company heavy political clout.
Aurora has a management agreement with the liquidators to operate its East Rand and Orkney assets, after its bid to buy the liquidated Pamodzi mines was accepted. But the cashstrapped company had been running into trouble amid allegations of asset stripping, mismanagement and questionable financial transfers. Aurora’s first investor withdrew, while a second investor will release funds only once it lists on the JSE. It is expected to do so only in August. This week a Chinese consortium put in a new bid of $51-million for the Pamodzi assets, but sources close to the deal are worried that there may soon be no mine to operate.
Environmental reports on the East Rand’s East Basin have warned of acid water bubbling into the street of Nigel and Springs within three years and destroying the East Rand’s groundwater resources. The Vaal River barrage could also be at risk. The Grootvlei pumps are the last operating in mostly abandoned mines on the East Rand and carry responsibility for all the East Basin’s acid mine water. Marius Keet, deputy director of water quality management at the department of water affairs, said his department was extremely concerned about the situation at Grootvlei and would have to intervene if pumping ceased again. “Although it’s the mine’s responsibility to ensure that the pumps are all operational, the department will not allow the mine to flood the pumps as this will result in the flooding of the basin and subsequently the decanting of acid mine drainage,” he said. “Apart from the negative impact on the environment, sinkhole formation is not excluded.” He said Aurora would be held accountable for any future environmental disaster if pumping stopped. It already faces criminal charges for pumping acid water into the Blesbokspruit.
But Enver Motala, the Pamodzi liquidator, played down the pump station fiasco. “We had heard about the threats that the pump stations would be switched off, but Aurora assured us that pumping was continuing,” he said. “As far as we’re concerned, the situation is under control.” Thulani Ngubane, Aurora director and spokesperson, did not respond to questions.
Source: Mail & Guardian
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