Concern is growing in political and business circles about the relationship between President Jacob Zuma and the Gupta family. Zuma has known the family, headed by three brothers -- Atul, Ajay and Tony -- since he was deputy president in 2002, but their relationship has blossomed since he became president.
Government ministers and business leaders became suspicious of the relationship during Zuma's state visit to India, where he was seen spending a disproportionate amount of time on meetings with the Guptas. "It was clear that they had organised things beforehand and took charge of at least some parts of his diary," one member of the business delegation that accompanied Zuma told the Mail & Guardian.
It is understood that some of the government officials who joined Zuma on the visit were questioned by their Indian counterparts about the Guptas' relationship with the president. "They were asked why the president is hanging around with these guys; they don't have a great reputation in India," a government source said. Business leaders told the M&G that the state visit underlined the special relationship between Zuma and the Guptas, which gave the family favoured access.
More than 200 business people joined Zuma on the trip as part of a delegation organised by the department of trade and industry. Some complained that they only had one opportunity to meet Zuma and that this was during a photo opportunity before a function. "Several of us were pissed off that we were not included. During the two-day programme, Zuma was kept separate and the only people allowed to be with him were the Guptas and [Kumba Iron Ore president] Lazarus Zim," said one of the business delegates. Another source who accompanied Zuma claimed that the president had attended meetings with prominent Indian business people that had been organised by the Guptas. Only selected South African business people, some of whom are said to be Zuma's known funders, attended these engagements, while other business people were sidelined, the source said. "It was clear that the family wanted to use Zuma to establish connections for themselves. We expected to meet potential investors, but it soon became clear all the deals were done already; we could just pick up the crumbs that fell from the main table," one businessman said.
The M&G sent questions to the presidency and the department of trade and industry, but the responses shed no light on who was responsible for Zuma's schedule and whether some meetings were arranged by the Guptas. On the state visit Ajay Gupta represented the family company, Sahara Computers, while Tony Gupta represented mining company Mvengela, of which he is director. Zuma's son, Duduzane Zuma, also represented Mvengela on the trip.
Gupta family spokesperson Gary Naidoo said that all meetings were arranged by the relevant government departments. Another source familiar with the family said that the Guptas were not particularly prominent in India and had built most of their wealth in South Africa. They now wanted to leverage their South African status to gain business in India. "They entirely grew in South Africa; they did not have much to speak of in India," said the source. This trip could have helped them gain access to people in India which they could not have seen otherwise," the source said. The Guptas' influence in cricket "helps to build links in India", he said. The family was known to have helped bring the Indian Premier League (IPL) to South Africa after security fears prevented it from taking place in India.
A civil society source in Mumbai confirmed that there was confusion when the Guptas started Sahara Computers, as a company of the same name operates in India. "They couldn't push their brand in India because the other Sahara is just so much bigger," the source said.
The presidency said the trade department prepares the business delegation lists and works on that delegation's programme during state visits. "The business delegation normally has its own programme, which runs parallel to that of the government delegation," the department said. "The [department] normally runs workshops with the business delegation and there is normally a business forum which is addressed by the heads of state of the two countries. The Indian state visit had more government-business interactions organised by the [department] to boost trade relations."
The visit also saw the relaunch of the India-South Africa CEOs' Forum, chaired by Africa Rainbow Minerals chief executive Patrice Motsepe. In addition to meeting the leader of the Congress Party, Sonia Ghandi, Zuma also met the leader of India's official opposition party, the Bharatiya Janata Party. The Congress Party is historically aligned with the ANC and there are strong links between the two parties.
The presidency said Zuma had requested a special meeting with the entire South African business delegation to hear their views on how the visit went, as well as promising them a meeting in South Africa at a later stage. "This has not transpired yet," said Zizi Kodwa, Zuma's communications adviser.
Source: Mail & Guardian
Showing posts with label Patrice Motsepe. Show all posts
Showing posts with label Patrice Motsepe. Show all posts
Friday, July 23, 2010
Monday, March 24, 2008
The Prince of Mines
Patrice Motsepe entered the mining business when South Africa ended apartheid. Today the onetime lawyer and avowed capitalist is the country's first black billionaire.
On a brilliantly sunny Thursday in January, Patrice Motsepe, a vigorous 46-year-old with regal posture, is striding through a gleaming shopping mall on the Cape Town waterfront. Suddenly a crowd forms. A half-dozen employees from the Build-A-Bear Workshop ask for his autograph. Two giggling young women roll up their sleeves as Motsepe signs their arms with a black marker, smiling while admirers snap photos with cell phones. An older woman approaches Motsepe and nearly swoons, grasping his arm and laying her head on his chest as he pats her back and murmurs thank you in Xhosa, one of the six African languages he speaks.
All this is not for a movie star or entertainer but for South Africa's first black billionaire. Over 15 years Motsepe, preaching free market capitalism, turned a low-level mining services business into the country's first black-owned mining company, African Rainbow Minerals, with 2007 revenue of $875 million. Driven by the Asian commodities boom, ARM's share price has rocketed in the past year from $12 to $24, pushing the value of Motsepe's net worth to $2.4 billion. Motsepe, a lawyer by training, serves as ARM's executive chairman, with a 42% stake in the company. He also owns a 5.5% stake worth $295 million in Sanlam, a publicly traded financial services company outside Cape Town.
By billionaire standards Motsepe has a modest lifestyle. His three sons attend prestigious private schools, but he has only one home, in the affluent Johannesburg suburb of Bryanston, and no yacht or plane. His one indulgence is to own the Mamelodi Sundowns, a soccer team. It doesn't tarnish his star quality that he's married to one of South Africa's most glamorous women, a medical doctor turned fashion impresario.
But for all the adulation, in South Africa such success comes with a price: being labeled an oligarch. Even many blacks have complained that the country's 1994 transformation from apartheid to democracy has benefited only the elite few. The criticism stems from laws that require substantial black ownership in certain industries, including mining. A handful of politically connected individuals have grown enormously wealthy as a result. One of Motsepe's sisters, Bridgette Radebe, who's married to transport minister Jeffrey Radebe, heads a mining company and is said to be among the wealthiest black women in the country. "It's called crony capitalism," says Moeletsi Mbeki, 62, brother of South Africa's president and an outspoken critic of the race-preference laws. "It's an anticompetitive system."
Motsepe concedes he benefited from the system yet says that his success was no handout, as he began building his mining business before the laws started taking effect in 2005. He says, "The legislation came way after we did our deals."
Motsepe and his family were in a better position than most to take advantage of the end of apartheid. Born in the sprawling black township of Soweto (next to Johannesburg), where his mother had grown up, Motsepe is a member of a royal clan within the Tswana tribe. He is, in fact, a prince.
Motsepe's father, Augustine Motsepe, was a critic of the apartheid regime. Before his son Patrice was born, Augustine was banished by the government to Hammanskraal, a rural area north of Pretoria where the government thought he could do less damage (he named his son after Patrice Lumumba, head of the Republic of the Congo and one of the first black African postcolonial leaders). There he opened a grocery store and then a beer hall and restaurant. "People don't know that there were very successful black businessmen in the years of apartheid," says Motsepe.
Though one of Patrice's maternal great-grandfathers came from Scotland, the old government classified the Motsepes as African. The family had to pull strings to get their seven children admitted to an Afrikaans-language Catholic boarding school that was officially designated for so-called "coloreds," South Africans of mixed race. From age 6, Motsepe spent school holidays working behind the counter in his father's store, where he says he learned his earliest lessons about business. "Whenever my father made a profit, he always plowed it back into the store," Motsepe recalls.
He graduated from the University of Swaziland and then became one of the few black law graduates of the University of the Witwatersrand in Johannesburg, designated whites-only by the apartheid government (Motsepe had to apply for an exemption to attend). In 1988 he joined Bowman Gilfillan, one of South Africa's largest corporate law firms, and in 1993 he became the firm's first black partner. Energetic and affable, Motsepe never wore his race on his sleeve, says Bowman partner and longtime Motsepe lawyer and confidant Neil Rissik.
Indeed, ask Motsepe about what it was like to grow up as a black man under the violent, racist apartheid regime and he responds with bromides. "The apartheid system was very bad for our people, very bad," he says blandly, switching quickly to the positive. "Only in South Africa could you have a change in government without civil war. If there wasn't the depth of love and caring among our people, this would not have happened."
Source: Forbes Magazine
On a brilliantly sunny Thursday in January, Patrice Motsepe, a vigorous 46-year-old with regal posture, is striding through a gleaming shopping mall on the Cape Town waterfront. Suddenly a crowd forms. A half-dozen employees from the Build-A-Bear Workshop ask for his autograph. Two giggling young women roll up their sleeves as Motsepe signs their arms with a black marker, smiling while admirers snap photos with cell phones. An older woman approaches Motsepe and nearly swoons, grasping his arm and laying her head on his chest as he pats her back and murmurs thank you in Xhosa, one of the six African languages he speaks.
All this is not for a movie star or entertainer but for South Africa's first black billionaire. Over 15 years Motsepe, preaching free market capitalism, turned a low-level mining services business into the country's first black-owned mining company, African Rainbow Minerals, with 2007 revenue of $875 million. Driven by the Asian commodities boom, ARM's share price has rocketed in the past year from $12 to $24, pushing the value of Motsepe's net worth to $2.4 billion. Motsepe, a lawyer by training, serves as ARM's executive chairman, with a 42% stake in the company. He also owns a 5.5% stake worth $295 million in Sanlam, a publicly traded financial services company outside Cape Town.
By billionaire standards Motsepe has a modest lifestyle. His three sons attend prestigious private schools, but he has only one home, in the affluent Johannesburg suburb of Bryanston, and no yacht or plane. His one indulgence is to own the Mamelodi Sundowns, a soccer team. It doesn't tarnish his star quality that he's married to one of South Africa's most glamorous women, a medical doctor turned fashion impresario.
But for all the adulation, in South Africa such success comes with a price: being labeled an oligarch. Even many blacks have complained that the country's 1994 transformation from apartheid to democracy has benefited only the elite few. The criticism stems from laws that require substantial black ownership in certain industries, including mining. A handful of politically connected individuals have grown enormously wealthy as a result. One of Motsepe's sisters, Bridgette Radebe, who's married to transport minister Jeffrey Radebe, heads a mining company and is said to be among the wealthiest black women in the country. "It's called crony capitalism," says Moeletsi Mbeki, 62, brother of South Africa's president and an outspoken critic of the race-preference laws. "It's an anticompetitive system."
Motsepe concedes he benefited from the system yet says that his success was no handout, as he began building his mining business before the laws started taking effect in 2005. He says, "The legislation came way after we did our deals."
Motsepe and his family were in a better position than most to take advantage of the end of apartheid. Born in the sprawling black township of Soweto (next to Johannesburg), where his mother had grown up, Motsepe is a member of a royal clan within the Tswana tribe. He is, in fact, a prince.
Motsepe's father, Augustine Motsepe, was a critic of the apartheid regime. Before his son Patrice was born, Augustine was banished by the government to Hammanskraal, a rural area north of Pretoria where the government thought he could do less damage (he named his son after Patrice Lumumba, head of the Republic of the Congo and one of the first black African postcolonial leaders). There he opened a grocery store and then a beer hall and restaurant. "People don't know that there were very successful black businessmen in the years of apartheid," says Motsepe.
Though one of Patrice's maternal great-grandfathers came from Scotland, the old government classified the Motsepes as African. The family had to pull strings to get their seven children admitted to an Afrikaans-language Catholic boarding school that was officially designated for so-called "coloreds," South Africans of mixed race. From age 6, Motsepe spent school holidays working behind the counter in his father's store, where he says he learned his earliest lessons about business. "Whenever my father made a profit, he always plowed it back into the store," Motsepe recalls.
He graduated from the University of Swaziland and then became one of the few black law graduates of the University of the Witwatersrand in Johannesburg, designated whites-only by the apartheid government (Motsepe had to apply for an exemption to attend). In 1988 he joined Bowman Gilfillan, one of South Africa's largest corporate law firms, and in 1993 he became the firm's first black partner. Energetic and affable, Motsepe never wore his race on his sleeve, says Bowman partner and longtime Motsepe lawyer and confidant Neil Rissik.
Indeed, ask Motsepe about what it was like to grow up as a black man under the violent, racist apartheid regime and he responds with bromides. "The apartheid system was very bad for our people, very bad," he says blandly, switching quickly to the positive. "Only in South Africa could you have a change in government without civil war. If there wasn't the depth of love and caring among our people, this would not have happened."
Source: Forbes Magazine
Monday, February 25, 2008
Don't sacrifice lives for profit, says Motsepe
No life could be "sacrificed" in the name of profits, mining magnate and businessman Patrice Motsepe told protesting workers at a ferromanganese smelter near Durban on Monday. Speaking to workers, who on Monday staged a protest at the Assmang smelter following Sunday's blast that claimed the lives of five people, Motsepe said: "There is no life that can be sacrificed in the name of profits or making money. I will not tolerate it."
Motsepe, who is the largest single shareholder in African Rainbow Minerals, which is a 50% shareholder in Assmang, said that the circumstances surrounding Sunday's accident appeared to be similar to an accident that happened at the smelter last year. Motsepe spoke to workers after meeting with the Assmang management as well as senior workers' representatives. The explosion and subsequent fire ripped through the number six furnace of the smelter shortly before 5am in Cato Ridge, about 60km from Durban. One person died at the scene while a further four died during the course of Sunday and Monday morning. After addressing the workers, Motsepe told journalist that he could not comment on the cause of the accident until the completion of investigations. "We are not representing shareholders' interests if there is no zero tolerance towards [poor] safety," he said. Following the blast, the smelter's six furnaces were shut down. Motsepe could not immediately say how much the shutdown was costing the company. However, even though the smelter had been shut down, the estimated 700 workers were still expected to report for work to ensure that they were paid.
KwaZulu-Natal provincial minister of social welfare Meshak Radebe and Durban mayor Obed Mlaba also briefly spoke to the protesting workers. Earlier in the day about 100 workers marched from the smelter to the Cato Ridge Country club with a coffin, which they then placed in the middle of a hall where a Labour Department inquiry into a manganese poisoning case at Assmang was being held. The inquiry had to be postponed and was resumed later in the afternoon when the workers returned to the smelter. The inquiry, headed by Vuli Sibisi, is investigating the alleged 40 cases of manganism caused by workers breathing in fumes with airborne manganese particles.
Manganism is acquired by over-exposure to airborne manganese and is a disease that affects the sufferer's central nervous system, leaving them with symptoms very similar to Parkinson's disease and multiple sclerosis. Assmang executive director, Brian Brookeman, was about to give testimony when the workers marched into the hall with their coffin. On Monday, the Labour Department announced that the company would be subject to a second inquiry that would investigate the cause of Sunday's explosion. Labour department spokesperson Zolisa Sigabi said "a full-scale government investigation is under way following yesterday's [Sunday] massive explosion. The inquiry aims at establishing the cause of the tragedy, including any possible negligence or flouting of occupational health and safety measures," she said. On Sunday she said: "Labour inspectors who immediately arrived at the scene have in a preliminary report indicated that it is suspected that a water leakage into furnace number six caused the explosion to occur."
Earlier, National Union of Metalworkers (Numsa) spokesperson Mziwakhe Hlangani said that the company's engineers had ordered that the furnace be shut down before the explosion "after it was detected to have a water leakage". "We do not know how and why it was operated by the night-shift staff operators, because it was declared unsafe to put it [the furnace] in operation and we believe drastic steps after thorough investigations should be taken," Numsa local organiser Siphiwe Ntsele said. He said it was the second blast in nearly three months. He claimed that a worker had died on December 14 2007, in a similar blast.
Labour Minister Membathisi Mdladlana on Monday condemned the blast and vowed to "pull all stops in getting someone to account for the deaths and injuries" in Sunday's incident.
Source: IoL
Motsepe, who is the largest single shareholder in African Rainbow Minerals, which is a 50% shareholder in Assmang, said that the circumstances surrounding Sunday's accident appeared to be similar to an accident that happened at the smelter last year. Motsepe spoke to workers after meeting with the Assmang management as well as senior workers' representatives. The explosion and subsequent fire ripped through the number six furnace of the smelter shortly before 5am in Cato Ridge, about 60km from Durban. One person died at the scene while a further four died during the course of Sunday and Monday morning. After addressing the workers, Motsepe told journalist that he could not comment on the cause of the accident until the completion of investigations. "We are not representing shareholders' interests if there is no zero tolerance towards [poor] safety," he said. Following the blast, the smelter's six furnaces were shut down. Motsepe could not immediately say how much the shutdown was costing the company. However, even though the smelter had been shut down, the estimated 700 workers were still expected to report for work to ensure that they were paid.
KwaZulu-Natal provincial minister of social welfare Meshak Radebe and Durban mayor Obed Mlaba also briefly spoke to the protesting workers. Earlier in the day about 100 workers marched from the smelter to the Cato Ridge Country club with a coffin, which they then placed in the middle of a hall where a Labour Department inquiry into a manganese poisoning case at Assmang was being held. The inquiry had to be postponed and was resumed later in the afternoon when the workers returned to the smelter. The inquiry, headed by Vuli Sibisi, is investigating the alleged 40 cases of manganism caused by workers breathing in fumes with airborne manganese particles.
Manganism is acquired by over-exposure to airborne manganese and is a disease that affects the sufferer's central nervous system, leaving them with symptoms very similar to Parkinson's disease and multiple sclerosis. Assmang executive director, Brian Brookeman, was about to give testimony when the workers marched into the hall with their coffin. On Monday, the Labour Department announced that the company would be subject to a second inquiry that would investigate the cause of Sunday's explosion. Labour department spokesperson Zolisa Sigabi said "a full-scale government investigation is under way following yesterday's [Sunday] massive explosion. The inquiry aims at establishing the cause of the tragedy, including any possible negligence or flouting of occupational health and safety measures," she said. On Sunday she said: "Labour inspectors who immediately arrived at the scene have in a preliminary report indicated that it is suspected that a water leakage into furnace number six caused the explosion to occur."
Earlier, National Union of Metalworkers (Numsa) spokesperson Mziwakhe Hlangani said that the company's engineers had ordered that the furnace be shut down before the explosion "after it was detected to have a water leakage". "We do not know how and why it was operated by the night-shift staff operators, because it was declared unsafe to put it [the furnace] in operation and we believe drastic steps after thorough investigations should be taken," Numsa local organiser Siphiwe Ntsele said. He said it was the second blast in nearly three months. He claimed that a worker had died on December 14 2007, in a similar blast.
Labour Minister Membathisi Mdladlana on Monday condemned the blast and vowed to "pull all stops in getting someone to account for the deaths and injuries" in Sunday's incident.
Source: IoL
Subscribe to:
Posts (Atom)