Showing posts with label Kgalema Petrus Motlanthe. Show all posts
Showing posts with label Kgalema Petrus Motlanthe. Show all posts

Thursday, September 25, 2008

New Minster of Intelligence

President Kgalema Motlanthe on Thursday appointed Dr Siyabonga Cwele as the new minister of intelligence. It is to replace Ronnie Kasrils, who has retired.

He served in the ANC underground structures from 1984 until 1990. He became a member of Parliament in 1994 and was well regarded as the chairperson of the Joint Standing Committee on Intelligence. But the committee was criticised for operating behind closed doors and never being open enough. They also trashed the inspector general of intelligence’s report which found against former NIA director general Billy Masetlha in 1996, in the interests of the Zuma camp.

People who have worked with him describe him as hardworking and independent-minded. His public statements have included an emphasis on the basics: intelligence as a means of combating crime and guaranteeing public safety.

Cwele received an MBchB from the University of KwaZulu Natal in 1984, and later also completed his MPhil in Economic Policy at the University of Stellenbosch

source: News 24

Friday, August 29, 2008

A welcome voice of reason

ANC deputy president Kgalema Motlanthe stands at the Motlanthe's moderate centre, and he has the guts and integrity to stand up for what he thinks is right, even if that makes him unpopular. And although he almost certainly has his eye on high government office -- what politician doesn't -- he is not unhinged by ambition.

In this edition we publish an interview with Motlanthe in which he frankly takes on the mindless militancy of the hardliners in his party, particularly its youth wing, and among its communist and trade union allies. He defends the judiciary, pointing out that it has a decisive long-term role to play in our democracy, independently of the personalities who may happen to occupy the Bench. He has consistently claimed that Jacob Zuma is the victim of political persecution, but significantly, has not added his voice to the chorus of demands for the dropping of charges against the ANC president.

Source: Mail & Guardian

Tuesday, May 3, 2005

The ANC's Oilgate

A Mail & Guardian investigation into covert party funding has revealed how R11-million of public money was diverted to African National Congress coffers ahead of the 2004 elections. In what may be the biggest political funding scandal since 1994, the M&G has established that South Africa's state oil company, PetroSA, irregularly paid R15-million to Imvume Management -- a company closely tied to the ANC -- at a time when the party was desperate for funds to fight elections. The M&G possesses bank statements and has seen other forensic evidence proving that Imvume transferred the lion's share of this to the ANC within days. PetroSA this week said it was unaware of this. The ANC denied impropriety and said it was not obliged to discuss its funders.

The scheme unfolded in two stages. First, PetroSA management bent over backwards to pay Imvume the money as an advance for the procurement of oil condensate. Then, when Imvume diverted the funds to the ANC instead of paying its own foreign suppliers, PetroSA had to cover the shortfall by paying the same amount again. A multimillion-rand hole remains in the parastatalis books. PetroSA has gone through the motions to recover the debt by suing Imvume -- but most of it remains outstanding. The effect of the entire transaction was that PetroSA, and ultimately the taxpayer, subsidised the ruling party's election campaign: a blatant abuse of public resources.

Imvume's role as an ANC "front company" first emerged in February last year when the M&G exposed its oil dealings with Saddam Hussein's Iraq. Imvume principal Sandi Majali obtained lucrative crude oil allocations from that regime when he travelled to Iraq with top ANC officials between 2000 and 2002. More recently, Imvume described its boss as ANC secretary-general Kgalema Motlanthe's "economic adviser".

But it was the diversion of the Petro-SA money four months ahead of the 2004 elections that is now lifting the lid on the funding scandal. The deal puts the spotlight on PetroSA's management, which approved the payment; Imvume boss Majali, who asked for the advance and then issued the cheques to the ANC; and Motlanthe, who was Majali's ANC patron. Imvume, now unable to pay its debts, was once the empowerment pin-up of the oil industry. The contract that caused all the trouble was awarded by PetroSA to Imvume on October 15 2002 -- the day President Thabo Mbeki publicly launched PetroSA as the national oil company.

Under the contract, Imvume -- with the backing of Swiss-based resource trader Glencore International -- was to supply PetroSA with regular cargoes of condensate, a feedstock for PetroSA's Mossel Bay gas-to-liquid fuels plant. A number of condensate cargoes were delivered to Mossel Bay during 2003. The standard contractual procedure was for PetroSA to pay Imvume the full cargo price no later than 30 days after the bill of lading date (the date the cargo was loaded for shipment to Mossel Bay). Once it received payment from PetroSA, Imvume would immediately pay it on to Glencore, which sourced the cargo on international markets. Glencore paid Imvume a commission. But in December 2003 the pattern was broken, and PetroSA has confirmed that standard procedure was departed from. The bill of lading date for that cargo was December 6 2003, meaning PetroSA's payment for the cargo -- worth $10-million (about R65-million) -- was due on January 5 2004. But Imvume's Majali asked PetroSA for an advance of R15-million (just more than $2-million of the $10-million) which was paid even before the cargo was discharged on December 22. PetroSA paid the advance into a different account to that usually used by Imvume for the contract.

Evidence in the M&G's possession confirms that Imvume Management's corporate account was credited with R15-million a day later, on December 19. And the M&G has seen forensic proof that within the next four days, Imvume's Majali issued a series of four cheques to the ANC -- for R4-million, R3-million and R2-million (twice). These cheques, totalling R11-million, were all transacted on December 23. This week Majali and Imvume did not dispute that the money was paid to the ANC, but claimed their support for the party was a "private affair".

The transfers to the ANC came four months before the elections, held on April 14 2004. A number of sources have described the party's financial straits around that time, claiming it had a bank overdraft typically running at more than R100-million. When payment for the cargo became due to Glencore on January 5, Imvume failed to pay the company the R15-million advance -- and, effectively, also withheld another R3-million from the balance owed. Glencore turned to PetroSA for what it was owed, eventually threatening in February not to offload the next cargo. PetroSA agreed to cover the shortfall of R18-million, for fear that the Mossel Bay plant would run out of feedstock, leading to greater losses. Effectively, PetroSA paid R18-million twice -- once to Imvume, and once to Imvume's supplier.

PetroSA maintains that the special circumstances of the empowerment environment largely excuse the actions of its management. It also denies that there was pressure from either the Minerals and Energy Ministry or the ANC to approve the advance to Imvume. Circumstances, however, suggest that empowerment is not a sufficient explanation and that Imvume's ANC links played a role. These links were no secret in oil trading circles. A businessman active in the sector told the M&G last year: "It was talked about when they got tenders ... that it was an ANC company ... I certainly understand that ANC fundraising has a keen interest."

The advance payment to Imvume was irregular in that it was a departure from standard procedures. PetroSA maintains procurement policy allows for advance payments, but admits it "should have checked" whether the money was going into the usual account. When the transaction with Imvume blew up in its face, PetroSA continued treating the company with kid gloves.

On February 23 last year, four days after PetroSA had been forced to settle Imvume's debt with Glencore, Majali signed an acknowledgement of debt to PetroSA, agreeing to repay the R18-million plus interest within 90 days. He also ceded his company's revenue stream as security. But Imvume paid nothing in terms of that agreement. Court records show more than a month passed after the expiry of the 90-day term before PetroSA issued a letter of demand. (See "PetroSA vs Imvume Management" download box on top right of this article for full documents).

PetroSA's choice of lawyer employed to pursue the demand raises further questions about PetroSA's seriousness of purpose. The lawyer, Leslie Mkhabela, was previously Imvume's own attorney and still has a business relationship with Majali via their common interest in Forever Resorts Aventura, the privatised state leisure company. This raises conflict-of-interest questions. Mkhabela maintained this week that this was not a problem as he had disclosed his business relationship with Majali to PetroSA. The agreement signed between Mkhize and Majali was still not enforced. Instead new terms, much more favourable to Imvume, were agreed between PetroSA chief executive Sipho Mkhize and Majali in September last year. Now PetroSA waived any claim to interest and agreed that Imvume could repay the capital amount in monthly instalments over four and a half years. But again, in February this year and after paying only R1,33-million, Imvume defaulted, court papers show.

PetroSA took off the kid gloves for a little while, filing an application for summary judgement in the Johannesburg High Court. But the matter was postponed twice, and on a third court date -- May 3 this year -- PetroSA removed the matter from the roll. PetroSA this week claimed that this was to allow Imvume to remain operational, which would give PetroSA a better chance eventually to recoup the debt. The ANC this week threatened legal action against the M&G without confirming or denying the flow of money to it. Circumstantial evidence strongly suggests the ANC knew exactly where the funding was coming from. Between 2000 and 2002, when Majali was trading in oil allocations from Saddam Hussein's Iraq, the ANC's Motlanthe repeatedly accompanied him to that country. ANC treasurer general Mendi Msimang also went along on at least one occasion. It is rumoured that the relationship between Majali and Motlanthe has cooled recently, but an Imvume brochure last year still described Majali as "economic adviser to the secretary general of the ANC". Describing the company's "winning formula", the brochure said Imvume had "access and influence on economic policy".

How they responded ...

PETROSA

The cornerstone of this deal is the policy adopted by PetroSA, which is a national initiative, black economic empowerment (BEE). PetroSA has a mandate to introduce hitherto disadvantaged South Africans into the oil and gas industry. PetroSA had a choice: to continue business as usual and exclude historically disadvantaged South Africans from the mainstream economy and prolong, if not propagate, the two-economies concept, or use our procurement muscle to bring fundamental change to the industry.

To procure a raw material referred to as condensate, the requirement was that the preferred supplier must have a South African partner who qualifies as a BEE candidate. This in effect introduced a major shift in the industry. We deliberately signed deals with the historically disadvantaged party to ensure that they were not "brought along" to the deal, but in fact they were the "principal partner" in the deal.

# On the [High Court] case PetroSA brought against Imvume PetroSA suspended the case due to the fact that if Imvume were liquidated, there would be very little proceeds flowing into PetroSA from that exercise. Imvume is much better off remaining operational for PetroSA to be able to recoup the total sum owed to PetroSA as well as interest and the legal costs.

# On Leslie Mkhabela [PetroSA's choice of lawyer to sue Imvume]
Mkhabela assured PetroSA of the following: he acted on behalf of Imvume during 2002/03. He later decided to resign from their business. While he acted for Imvume, he was invited into a consortium that submitted a bid for the Aventura Resort in exchange for his services. He retains no personal friendship with Imvume.

# On PetroSA's actions and internal inquiry
At the request of Imvume, PetroSA effected a pre-payment into an account different from the normal account. We changed the account without considering that there may be negative ramifications. PetroSA has since tightened the controls around channels of communication and instruction from vendors on payments. PetroSA in its enquiry has not found any wrongdoing by any individual or individuals within PetroSA or external to PetroSA with line of sight to PetroSA. All the procedures and processes were followed. PetroSA honoured the letter of the contract. At times we assist suppliers to better deliver to PetroSA where possible. The procurement policy at PetroSA allows for payments of this nature.

# On the double payment
Glencore held the product. Even though PetroSA did not have a contract with them, they had a ship in the harbour with our product. As we had already paid, PetroSA had to make a decision; to either pay them and deal with Imvume later -- this would cost us $2,8-million -- or refuse to pay and have our refinery cease operating for a minimum of 40 days, at the cost of $1-million daily. The PetroSA board ratified the decision.

Conclusion

It is the intention of PetroSA to recoup all the funds involved in this dispute. A liquidated Imvume would not generate the required proceeds for PetroSA. This would lead to an outright loss. PetroSA needs Imvume to pay back the money owed to PetroSA.

BARRY AARON & ASSOCIATES (lawyers for Majali and Imvume):
Our clients have requested us to record that Imvume had legitimately withheld payment in the sum of $2,8-million from Glencore against receipt of the expected commission on the profit-sharing arrangement in relation to Imvume's contract with PetroSA.

The withholding of this payment was not contested by Glencore until immediately prior to delivery of the next shipment, which it then refused to offload until such time as the shortfall (as Glencore perceived it) on the previous shipment had been paid. This resulted in PetroSA effecting payment of the shortfall and Imvume executing the acknowledgement [of debt] in favour of PetroSA.

The issue of commission from Glencore remains unresolved. Imvume expected to repay PetroSA from anticipated funds and separately resolve the issue with Glencore. Unfortunately, the anticipated funds did not materialise. Imvume has concluded arrangements with PetroSA for repayment. Imvume intends honouring its obligations to PetroSA. Our clients have no objection to fair investigative journalism and comment. [The M&G] however continues to harass our clients in an ongoing witch-hunt. [The M&G] appears to have accessed Imvume's private and confidential records, including (in particular) its banking records, constituting an invasion of our clients' rights to privacy, conduct way beyond the norms of responsible or acceptable investigative journalism. Our clients are a private businessman and a private company respectively, engaging in the legitimate pursuit of their activities. Their business activities and support for the ANC are their private affair. [The M&G] is sabotaging and subverting a legitimate black empowerment initiative.

MNMR Attorneys (for the ANC and Kgalema Motlanthe)
The short time period provided for comment demonstrates that the M&G will not give proper consideration to our clients' submissions. We wish to note that following the recent decision of the Cape high court in the Idasa matter, our clients are not obliged to discuss donations received by it from any person. Even if it were so, our clients would have no obligation and would not always have the ability or means to verify the identity of the sources of all donations made to it. We record, however, that our clients deny any insinuation that they acted in any corrupt, illegal or improper manner. Our clients will not hesitate to protect their rights should the M&G publish the defamatory material contemplated in [your] e-mail.

Source: Mail & Guardian

Monday, May 5, 2003

Walter Sisulu dies

African National Congress veteran Walter Sisulu, born in 1912, the year the ANC was founded, has died, ANC secretary general Kgalema Motlante said on Monday. He would have turned 91 this month. Sisulu joined the ANC in 1940 and was among the group of radicals who formed the Youth League in 1943/44.

The ANC's leadership had, in the late 1920s, split over whether to co-operate with the Communist Party, and the ensuing victory of the conservatives within the ANC left the party small and disorganised through the 1930s. In the 1940s the ANC revived under younger leaders who pressed for a more militant stance against colour bars in South Africa. The ANC Youth League attracted Sisulu, Oliver Tambo, and Nelson Mandela, who in turn displaced the party's moderate leadership in 1949 at what many view as the party's watershed conference. Under Sisulu, Tambo and Mandela's leadership the ANC began sponsoring non-violent protests, strikes, boycotts, and marches, in the process becoming a target of police harassment and arrest. By the end of World War II the ANC had begun strong agitation against the pass laws, and when the largely white electorate voted in the National Party in 1948, the ANC's membership grew rapidly, rising to 100 000 in 1952.

In 1944, he married Nontsikelelo Albertina, with whom he was to have five children. Mrs Sisulu was a much-loved and internationally respected activist in her own right. Her work earned her the title Mama Africa.

Sisulu was elected ANC secretary general in 1949, a post he held until 1954 when banning orders forced him to resign the position. He served on the joint planning council for the Defiance Campaign, and led one of the first batches of passive resisters when the campaign began in 1952. Campaigners refused to carry the notorious "pass book" all native South Africans had to carry by law and hundreds were arrested. Sisulu was one of the accused in the Treason Trial, which began in 1956.

Source: News 24

Friday, June 2, 2000

Amnesty granted to Craig Williams and Roger Raven - Ruth First's killers

Close relatives of murdered anti-apartheid activists Ruth First and Jeanette and Katryn Schoon have expressed outrage at the granting of amnesty to the assassins, apartheid spy Craig Williamson and his subordinate Roger Raven.

Williamson, a former security police major, and Raven also received amnesty yesterday for conspiring to kill Joe Slovo, First's husband and then leader of the African National Congress military wing, uMkhonto weSizwe. They were also granted amnesty for transporting improvised explosive devices, interception of mail and possession of explosives.

George Bizos, the Slovo family's lawyer, said yesterday night that, although he respected the ruling by the Truth and Reconciliation Commission's amnesty committee, he was saddened by the decision. "It was an unexpected decision. I am saddened by it. I think that, in the case of Ruth First and the Schoon mother and child, their murders were completely unnecessary in the way they chose to kill them by way of letter bombs."

Sherry McLean, widow of Marius Schoon, whom she married after the bombing murder of his first wife Jeanette and their daughter Katryn on June 28, 1984 in Lubango, Angola, said Williamson would never be forgiven for the killings. McLean said her husband, who died last year after testifying in the amnesty application, had made it clear Williamson would never be forgiven. "On a human level it's a difficult task to deal with when Williamson was responsible for the murders of a wife, a mother and daughter and sister," she said. ANC general secretary Kgalema Motlanthe said it was regrettable that the TRC had deemed it fit to grant amnesty to Williamson and Raven.

The amnesty committee said it was satisfied Williamson had told the truth and the killings were politically motivated. "I have not seen the whole (TRC) report, but we have to accept the committee has satisfied itself with that requirement," Motlanthe said. His sentiments were echoed by former environment and tourism minister Pallo Jordan, who was with First when she was killed in Maputo in 1982. However, he said: "We have to live with its (the TRC's) findings."

At the time of their deaths, Jeanette Schoon and First were lecturing at universities in Luanda and Maputo. They were active ANC supporters. The actions were meant to destabilise, demoralise and disadvantage the ANC, the applicants said. Ex-spies Willem Schoon (no relation) and John McPherson were also granted amnesty for the attempted murder of Marius Schoon and Joe Slovo in 1982 and 1984, and for the Lusaka bombing.

Source: Daily Dispatch

Thursday, October 29, 1998

HRW Welcomes Release of South African Truth Report

Human Rights Watch welcomed the release of the Truth and Reconciliation Commission's (TRC) draft report as an important step in establishing the truth about past human rights abuses committed in South Africa.

It is disturbing to see South Africa's political leadership undermine the vitally important work of the truth commission," said Kenneth Roth, Executive Director of Human Rights Watch. "The draft report offers all South Africans and the world at large the opportunity to learn from South Africa's suffering during apartheid. We call upon those responsible for the abuses committed by all sides to rise to this historical occasion and acknowledge their role in human rights abuses. Such acknowledgment is an essential step in reconciliation."

At a ceremony in Pretoria today, Archbishop Desmond Tutu, the chairperson of the Commission, handed over the five-volume report to President Nelson Mandela. The report documents the widespread human rights abuses committed during the apartheid era in South Africa, implicating many apartheid government officials as well as the ANC and other liberation organizations.

Human Rights Watch expressed disappointment with the TRC's decision to excise findings from their draft report implicating the last president of the apartheid era, F.W. De Klerk. Human Rights Watch urged the TRC to take the necessary steps to ensure that all those proved responsible for abuses would be named in its final report.

Human Rights Watch condemned the attempt by the ruling ANC to prevent the release of the draft report, and urged its leadership to take responsibility for the abuses committed during its liberation struggle. ANC Secretary-General Kgalema Motlanthe attempted to block the release of the TRC report through a court application which was rejected early today. In the application, the ANC accused the TRC of "criminalizing the struggle for the liberation of the people of South Africa," and argued that if the ANC had to be bound by the requirements of the laws of war, South Africa's liberation struggle might have failed.

Human Rights Watch emphatically rejects the view advanced by the ANC that it should be held to a lower standard of scrutiny because it was fighting a just war against an oppressive system. The abuses committed by the ANC during its liberation struggle, including the targeting of innocent civilians in bombing campaigns and the torture and summary executions of suspected collaborators at ANC camps, cannot be justified by reference to the justice of its struggle. The objectives of any military or political campaign do not affect the obligations of all parties to respect the rules of war and the principles of international humanitarian law.

"The argument advanced by the ANC that they should not be held accountable for their abuses because they were committed in the furtherance of a legitimate struggle are directly contrary to the principles of international law," said Peter Takirambudde, Executive Director of the Africa Division of Human Rights Watch. "We urge the ANC to take responsibility for the abuses committed by its forces during the apartheid era, and to stop hiding behind the legitimacy of its struggle against apartheid."

Human Rights Watch strongly supports the call by the TRC to prosecute individuals who committed gross human rights violations and did not seek amnesty. Calls for a blanket amnesty should be rejected, as all individuals had the opportunity to seek amnesty from the TRC.

Source: Human Rights Watch