Showing posts with label Siphiwe Nyanda. Show all posts
Showing posts with label Siphiwe Nyanda. Show all posts

Sunday, March 11, 2012

A political solution that killed

Some of the most upsetting evidence heard by a South African court after the advent of democracy was ­delivered last week in the North West, largely unnoticed by the mainstream media. The testimony that ANC councillor Alfred Motsi gave under oath in the Mahikeng High Court should send shivers down the spines of all peace-loving South Africans. Motsi testified against former Rustenburg mayor Matthews Wolmarans and his bodyguard, Enoch Matshaba, who are accused of gunning down former councillor and trade unionist Moss Phakoe in his driveway after returning home from an ANC meeting in Rustenburg in March 2009.

Motsi’s evidence is yet to be challenged. The most chilling part of the case against Phakoe’s alleged killers is not the murder, but the events preceding his untimely death. Motsi’s version provided fascinating, yet frightening, insights into how the ANC under President Jacob Zuma is “dealing” with ­corruption.

In a nutshell, Phakoe stumbled upon ­evidence implicating Wolmarans – then the mayor of Rustenburg – in corruption. Motsi testified he and Phakoe compiled a dossier of the alleged corruption. As loyal cadres, they decided to first present their evidence to the ANC before going to the police. But nothing came of meetings with the ANC’s regional or North West leadership, or of a meeting with ANC heavyweights Billy Masetlha and Siphiwe Nyanda. They delivered their evidence to the offices of ANC secretary-general Gwede Mantashe and then president Kgalema Motlanthe, all to no avail, testified Motsi.

After five failed attempts to get the attention of the ANC, Phakoe and Motsi delivered documentation to Zuma’s Forest Town house. Zuma responded by inviting them to Nkandla over the 2008 Christmas period. At the time, Zuma himself was accused of corruption and debates about a “political solution” to make his legal problem evaporate were abound. After travelling the length and breadth of the country to get to Zuma’s homestead, the politicians spent “almost a whole night” with Zuma and presented their evidence to him.

A month later, Phakoe, Motsi and other ANC councillors met Zuma, Motlanthe, Mantashe and other ANC top brass in Potchefstroom. They again presented their dossier of corruption claims against Wolmarans and were told that then cooperative governance and traditional affairs minister Sicelo Shiceka would call a meeting “to solve the problem”. On the seventh attempt to have the issue addressed, Phakoe addressed a meeting chaired by Shiceka in March 2009, where he again presented his dossier. Curiously, ­Wolmarans, who Phakoe had implicated in serious corruption, was present. Before Phakoe addressed the meeting, Motsi testified, he looked Wolmarans in the eye and said: “Hate me, but don’t hurt me.”

Two days later, Phakoe was shot dead in a hit allegedly masterminded by Wolmarans and his bodyguard. If ever the ANC and Zuma needed a reason corruption should be dealt with by the criminal justice system – and not through some comradely political solution behind close doors – the dead body of Moss Phakoe is that reason. Here was a whistle-blower who put his life – literally – on the line to give effect to Zuma’s plea in his 2009 state of the nation address for citizens to “report crime and assist the police with information to catch ­wrongdoers”. Unfortunately, Moss Phakoe learned the hard way that Zuma maybe didn’t refer to corruption when he spoke of “crime” in his speech – especially when senior comrades are involved.

Taking into account the Phakoe case, ­Zuma’s own aborted corruption prosecution and recent turmoil in the criminal justice ­sector, the hard question that must be asked is whether the ANC is consciously undermining the rule of law in favour of “political solutions” for politically connected individuals.

Since Zuma’s election as ANC leader in 2007, corruption-fighting institutions have been weakened substantially. The Scorpions were closed down, which led to an outflow of skilled forensic investigators and analysts to the private sector.

The Hawks, which replaced the Scorpions, were in effect an amalgamation of the police’s serious and violent crimes unit and ­commercial branch.

The unit’s corruption successes, albeit laudable, are mostly limited to lower-level officials, cheque fraud or small-town crooks. Bigger cases, like the fraud trial against Czech mafioso Radovan Krejcir, seem to be falling apart.

At the same time, Public Protector Thuli Madonsela has become the face of corruption busting in the country, although she does not have the powers to prosecute.

Those fingered by her investigations are rapped over the knuckles, but seldom face the consequences of their deeds in court.

The corruption and money laundering ­investigation into expelled ANC Youth League leader Julius Malema will be an important test for the state’s will and ability to prosecute the connected and powerful.

Malema will have taken tips from ­Zuma’s manoeuvring to escape prosecution. We can be sure that he and his supporters will push for a “political solution” to make possible charges go away.

But this is not justice – as Moss Phakoe learned in such a brutal and undignified way.

Source: City Press

Friday, September 3, 2010

'Coalition of the wounded' turns on Zuma

A new "coalition of the wounded" has emerged in the ANC ahead of the party's national general council, with many of President Jacob Zuma's once most ardent backers now joining forces to stop his serving a second term. It took slightly more than two years for Zuma to alienate some of his staunchest supporters, including the ANC Youth League. Now his future lies in the hands of the left -- Cosatu and the South African Communist Party -- at a time when alliance relations are at a nadir.

According to several ANC sources linked to the Youth League, the SACP, Cosatu and the government, many party leaders have their eye on higher office or want to punish Zuma for not rewarding them sufficiently for their support in the run-up to the ANC's 2007 Polokwane conference. They are said to include Siphiwe Nyanda, the communications minister, Fikile Mbalula, the deputy police minister, and Julius Malema, the league's president.

Lobbyists wanting Zuma to retain his position at the ANC's next conference in 2012 claim Nyanda aspires to become the party's treasurer general, although this week Nyanda denied this, saying he has "no such ­intentions". "I can't choose for myself what I want to be. I went to Polokwane as an ordinary branch member of the ANC and was elected to the national executive committee. The ANC decides, I don't have a say," he said.

ANC sources said that Nyanda was also resentful that he had not landed the defence portfolio, which went to Lindiwe Sisulu. Some Zuma supporters are suspicious of former intelligence chief Billy Masetlha, saying he hankers after higher office -- something he denies. Zuma lobbyists say that Masetlha, who was not given a Cabinet position, wants to be in the ANC's "top six", a platform from which, he believes, he can counter detractors effectively. He denied this, saying he had previously been approached to be a minister, but had declined. He said he had no ambition to have a higher office in the ANC. "What is the fun in being in the top six?" he asked. But he did take a dig at his fellow national executive committee members, who needed to "pull up their socks". "Sixty percent of the people in the NEC are doing other things, like this lobbying and pushing their own agendas. They are not doing their jobs." He said his criticisms would make him "even more unpopular than I already am, but I've had enough".

A second group of leaders, calling themselves the "new frontier", is a subgroup of the broad front that questions Zuma's leadership. They are talking to one another and their constituencies about what they see as the erosion of traditional ANC values. Key new frontier members are Deputy President Kgalema Motlanthe, Human Settlements Minister Tokyo Sexwale, Zwelinzima Vavi, Cosatu's general secretary, and Sisulu.

An ANC insider close to them said that they were discussing a return to such values as a rejection of corruption and a clear division between party and state. "The new frontier is where the action is," said the source. "New alliances are coalesced around the future of the ANC and of government and these leaders are having a conversation about what is to be done."

A government official with strong ANC links said that the realignment taking place did not bode well for the national general council, which kicks off on September 20. An ANC-aligned government official said: "Anyone who thinks the NGC can be managed must think again. There is an organic unhappiness that will come out there. Each sector [including the youth and women's leagues] is going to the NGC with a position and that will cause huge debate. There is less talk about tickets and more about where the ANC is going." Although Sisulu has kept a low political profile of late, insiders say that she has been thrown into the mix because of a need to ensure gender representation. She is seen as the most senior women leader in the ANC after national chairperson Baleka Mbete. Mbete, who is currently active in business, is said to have lost interest in furthering her career in the ANC.

Also prominent in the coalition is Malema, who was once quoted as saying he was prepared to "kill for Zuma". As recently as January this year, the league was the only major ANC formation to defend the president. But in April Zuma publicly rebuked him for acting in ways "alien to the ANC" after Malema had defied the ANC NEC by singing the song Shoot the Boer and calling the opposition Movement for Democratic Change in Zimbabwe a "Mickey Mouse party". He was later dragged into a humiliating disciplinary process, which forced him to make a public admission of guilt and apologise to Zuma. Malema has joined forces with Fikile Mbalula, a former youth league chief who expected more than a "mere" deputy minister position in return for his efforts in ensuring a Zuma victory at Polokwane, youth league sources say. To show their disdain for his "low-ranking position", Mbalula's supporters are urging Zuma to relieve him of his executive duties and return him to Luthuli House.

Even former Mbeki supporters, previously in the political wilderness, have been roped in to boost the numbers in both the Zuma and anti-Zuma camps. One such a figure, who is being lobbied to support ANC secretary general Gwede Mantashe, said Mbeki's former supporters fear a takeover by the Youth League and their circle. "[We are more frightened of] an ANC Youth League takeover, which will destroy the organisation. The Youth League's supporters have no intention of rebuilding or uniting the party -- they just want to use ­positions to accumulate wealth."

Former ANC leaders in the Western Cape say they are being lobbied to support either of the two camps and are being promised plum government jobs. According to sources, Vavi is being lobbied to take over the position of Blade Nzimande, South African Communist Party boss, giving him a better chance to secure a senior ANC position.

The SACP is holding its elective conference in July 2012, six months before the ANC national conference in Mangaung. Zuma can still rely on Cosatu's support, but in return the federation will expect him to strengthen alliance relations. Masetlha is confident that there is no threat to Zuma, despite the Youth League's withdrawal of support and the opposition of other leaders. "There is no threat to JZ. The ANC cannot be run by children and opportunists. We know where to get them and how to get them, so watch this space," he said.

Cosatu's rank and file still support Zuma, despite the government's response to the two-week public service strike. "The president is still relevant. Our hope is not gone. But his strength comes from the strength of the alliance," said Zet Luzipho, Cosatu's secretary in KwaZulu-Natal.

Source: Mail & Guardian

Friday, August 27, 2010

Nyanda drops plan to dismiss director-general

AFTER a vitriolic and public battle, Communications Minister Siphiwe Nyanda has withdrawn a letter of dismissal against his director-general, Mamodupi Mohlala. Gen Nyanda fired Ms Mohlala last month, saying there had been an irretrievable breakdown of trust between them. Ms Mohlala challenged her dismissal in court, arguing that Gen Nyanda did not have the authority to fire her.

She filed an affidavit detailing what appears to have been interference in her work by the minister, including the administration of tenders. Gen Nyanda failed to submit an answering affidavit. As part of the out-of-court settlement, Ms Mohlala will be paid her full salary and benefits but will take leave with effect from yesterday, until September 27. This leave will allow Public Services and Administration Minister Richard Baloyi to seek an alternative and equal post for her within the government, including in state-owned enterprises.

If Mr Baloyi fails to do so , Ms Mohlala will return to the Department of Communications. Gen Nyanda will also pay Ms Modupi’s legal costs. Yesterday Ms Mohlala said the withdrawal of her dismissal and the settlement meant she had been “vindicated” and that there was acknowledgement her dismissal did not follow proper procedure. “I’m happy and satisfied that the matter has been settled and (I thank) the president and Mr Baloyi for their intervention. But we cannot ignore what happened between me and the minister. We are exploring other options in the interest of the department,” she said. Asked if she would return to the department if not deployed elsewhere, Ms Mohlala declined to say.

During the first court appearance last month, President Jacob Zuma requested that Mr Baloyi intervene in the matter outside court proceedings. Ms Mohlala was offered a R2,9m settlement but refused, demanding to be redeployed to a post of equal standing.

Gen Nyanda’s spokesman Tiyani Rikhotso said yesterday the agreement did not imply the immediate reinstatement of the former director-general to her old position. He said this arrangement allowed what Ms Mohlala had initially requested from the president to take effect. “As (the) ministry we welcome the agreement as it paves a way for the filling of the position as soon as possible by a suitable and relevant person with the necessary expertise,” he said. Mr Rikhotso said the settlement was done in order to reinstate Ms Mohlala as a public servant. Consequently, Mr Baloyi would explore suitable options in order to address this matter.

The fight between Ms Mohlala and Gen Nyanda broke into the open last month. The pair failed to settle the dispute amicably and their impasse has paralysed the department, with staff morale said to have collapsed, with no collective sense of purpose. Some of Gen Nyanda’s complaints against Ms Mohlala included her hiring people from the private sector to handle department al finances. She was also accused of breaching the minister’s confidence on delicate matters involving Sentech, the state-owned signal distributor. Ms Mohlala complained about Gen Nyanda’s “interference” in tenders, saying this violated the Public Finance Management Act.

Source: Business Day

Monday, August 16, 2010

Nyanda proved he is unfit as public office bearer - CDP

The Christian Democratic Party said on Monday Communications Minister Siphiwe Nyanda has proved he is unfit as a public office bearer. It has been reported that a company partly owned by Nyanda was given a R20 million contract to investigate service delivery protests in Mpumalanga. It is believed the contract was awarded to Abalozi Security Advisory Services without following tender rules.

Rivals of Mpumalanga Premier David Mabuza have been labelled by Abalozi as the instigators and funders of the protests which began in February last year. The CDP’s Rev Theunis Botha said, “If President Jacob Zuma still feels it unnecessary to relieve Communications Minister Siphiwe Nyanda of his duties, he should at least consider reassigning him to a new portfolio, that of ‘tenderpreneurship’.”

Source: Eye Witness News

Sunday, August 15, 2010

Why ANC hates a free press

There has been anger, consternation and disappointment over the ANC's two-pronged move to gag the media through a tribunal and a "protection of information" bill. I am surprised there has been so much surprise. These attempts to gag the press have nothing to do with the need for accuracy on the part of journalists, or protecting the dignity of South Africans, as claimed by ANC spokesmen.

They have, however, everything to do with the fact that the ANC right now has the weakest, greediest, most corrupt and compromised leadership since its birth 98 years ago. These so-called leaders want to shut down the medium that exposes their corruption, looting and hypocrisy.

In Polokwane, the ANC had a choice between a high road and a low road. It could, in thumping Thabo Mbeki's ambitions for a third term, have elected a leader more talented and better equipped to deliver on the promise of a free, united, non-racial and democratic South Africa. But, as happens in all kangaroo courts and mob slayings, in its rush to destroy Mbeki the ANC chose a man whose most marked traits were a talent for populist rhetoric and an inability to lead effectively. The ANC went for the lesser man, someone whose moral, intellectual and leadership skills remain a mystery to the nation.

The ANC did not stop there. Many in its current leadership know nothing but the world of the jackboot and violence: securocrats dominate the top echelons of the party. These are not leaders who enjoy the light shone by a free press. They prefer the dark; they like secrets and the cover-ups that allow corruption to flourish. A man who sleeps with his friends' children - one of them with mental problems and HIV-positive - cannot tolerate a free press that keeps putting the spotlight on the reprehensible behaviour of elected representatives. Such a man cannot understand or tolerate the watchdog role of the press, hence President Jacob Zuma's utterance this week: "The constitution talks about the privacy of people. At times, things that are private are not made private in the manner in which the reportings are done."

It is in this context that one must understand the virulence of the ANC and the president on this matter. Zuma would much rather have had the country be silent while he spoke with a forked tongue on moral regeneration (a programme of which he was a government leader), safe sex (an issue on which he was supposedly a government leader) and the dangers of having multiple concurrent relationships without using protection. This is not an elected leader who wants to be examined. The continued spotlight on him, every day and every hour, ensures that he will be found wanting. So we should not be surprised that he does not like the light. He likes things to remain "private" despite the fact that he occupies a public office.

The ANC leadership is aware that the rot has spread through the whole organisation. The party's discussion documents for its national general council meeting paint such a damning picture that it is amazing that an organisation so committed to secrecy should have made them public. But debate is one thing and action is another. This is an ANC that is ready to acknowledge in public that corruption is destroying it - but, as evidence mounts that all is not right with the business dealings of its senior leader and Communications Minister Siphiwe Nyanda (the Public Protector has called for an investigation of the man) - the party stands frozen.

This is the party that wants the press to stop pointing out these wrongs. Nyanda himself wants a media tribunal. Of course he would. The press is the only entity that has dared to expose his extravagant lifestyle at taxpayers' expense: buying hugely expensive cars, living it up on champagne and sleeping at five-star hotels. All this in a country where millions go hungry every day.

We should not be surprised. When Zwelinzima Vavi pointed out that Zuma was dragging his heels on Nyanda and allegations of corruption against another minister, the ANC decided to haul Vavi before a disciplinary hearing.

We should not be surprised. Blade Nzimande, a communist leader who disgustingly chose to buy himself a car worth more than a million rands, wants a media tribunal. This is understandable. His hypocrisy in buying himself the car while teachers, doctors and nurses earn a pittance is exposed by the press. He wants these things to be "private".

We should not be surprised. This is what the ANC is today: a rotten, greedy, corrupt and compromised leadership which wants to muzzle the media to hide its looting of the country.

Source: Times Live

Thursday, August 12, 2010

Masekela quits amid new turmoil at SABC

BARBARA Masekela, former ambassador to France and a prominent figure in the African National Congress, has tendered her resignation from the board of the SABC, with several more resignations possible, Business Day has learnt. The board has been plagued by division since its appointment in December. Two reliable sources told Business Day last night that both Ms Masekela and her fellow director, Magatho Mello, had written letters of resignation this month after losing patience with the conduct of chairman Dr Ben Ngubane and CEO Solly Mokoetle.

A board meeting yesterday, aimed at addressing these issues and instituting disciplinary proceedings against Mr Mokoetle, was cancelled by deputy chairwoman Felleng Sekha, the sources said. A board member, who did not wish to be named, said: “I and several of my colleagues will resign in the near future if we continue to be unable to exercise our fiduciary responsibilities.”

In June, other directors strongly criticised Dr Ngubane in a memorandum to Communications Minister Siphiwe Nyanda. The memorandum, which Business Day has seen, accuses Dr Ngubane of misconduct relating to the appointment of Phil Molefe as head of news, and reveals that a special meeting of the board in May decided that its “relationship with, and trust in, the chairperson have irrevocably broken down”. It says that Dr Ngubane cancelled interviews for the head of news position on the day they were due to take place, before seeing to it that the interviews took place on a day when three members of the interview panel where unavailable. “The chairperson has stated to other directors ... that he was operating under the direct instructions of the president of the republic and that he was resolved to appoint his preferred candidate, whom he identified by name,” the memorandum says. It says Dr Ngubane and Mr Mokoetle held a secret meeting on May 20 and it was decided to appoint Mr Molefe as head of news. Two days later, the board cancelled the appointment. Since then Dr Ngubane had refused to meet other directors, and had failed to attend a scheduled meeting. Between them, Dr Ngubane and Mr Mokoetle had “seriously delay(ed) the development and implement (sic) of a turnaround strategy” as required by an agreement with the Treasury, and had “entirely undermin(ed) the ability of directors ... to exercise proper oversight or to provide strategic direction to the SABC”. Dr Ngubane last night confirmed that he was aware of one recent letter of resignation by a director, but would not confirm the person’s identity. “I passed on to the shareholder one letter, and the shareholder has not yet responded.” He denied that Mr Mello was the author of the letter, but would not answer when asked if it was Ms Masekela. He was not aware of the memorandum to Gen Nyanda, and denied that he had said he was following the president’s instructions in appointing Mr Molefe. “That’s an absolute lie; that’s pure mischief. I’ve never, never made such a statement. I just said I acted in terms of what was right.”

There were still corporate governance issues to address at the SABC, he said, but insisted dissenting directors should table their concerns at board meetings. Ishmael Vadi, chairman of the parliamentary communications portfolio committee, said it was “losing patience with the delay in resolving the tensions in the board”. If the issues were not tackled shortly, the committee would summon the board to explain the situation, he said. “I need to table it before the committee, but I can say it will be very, very soon. This kind of situation is unacceptable. It doesn’t augur well for the corporate governance of a very important institution.”

Tiyani Rikhotso, a spokesman for Gen Nyanda, said he was not aware of the memorandum sent to the minister in June. When asked whether he had resigned, Mr Mello said: “I don’t even want to go there. We have a standing principle in the board, that if we are going to speak about anything in the media, there’s a certain way we would do that and no other way.” Ms Masekela could not be reached for comment.

Source: Business Day

Thursday, August 5, 2010

Deadly threat to all

The collapse of the Soviet Union two decades ago exposed not only the bankruptcy of its ideology but the rich and obscene lifestyle of its leaders — the dachas where they romped and lolled and the extravagantly furnished bunkers where they would have safely repaired in the event of a nuclear attack. Meanwhile ordinary people were constantly exhorted to put their faith in the revolution. It was dachas for the cream of society and gulags for dissenters.

Communism is an ideology conceived in a lie. Leaders say one thing while doing the other. They live a life of deception. They don’t seem prepared to live the life or reality they often romanticise, or to which their policies condemn ordinary people. And because the media and other forms of communication are controlled by the state, the so-called working class are kept in the dark and therefore meekly accept their lot.

That is the nirvana that Blade Nzimande has in mind for us. The general secretary of the SA Communist Party, who works as minister for higher education when he feels like it, wants the media shackled because it has shown him up to be a hypocrite. This champion of the working class drives posh cars and lives it up in fancy hotels — at our expense. Now he wants a tribunal to stop or frustrate the media from telling the truth.

But that’s par for the course, I suppose. After all it was Vladimir Lenin who blurted: “Telling the truth is a bourgeois prejudice. Deception, on the other hand, is often justified by the goal.”

It’s revealing that the two men leading the campaign against the media have been in the news for the wrong reasons : Nzimande and communications minister Siphiwe Nyanda. Nyanda, the man with a fine taste for tenders, has seen his name crop up in many an unsavoury scrap as a result of his business dealings. He got a tender that got Siyabonga Gama fired at Transnet. He’s currently embroiled in a messy fight with his director- general, and tenders are at the heart of the dispute. On Sunday he wrote a long, rambling article in favour of a media tribunal. The logic was difficult to follow. He should stick to tenders.

There are those who may think the media is obsessed with gazing at its own navel. This is not a war waged against the media only, but against democracy itself. It challenges the very essence of our constitution. As the FM argued recently, it is a battle that should involve all strands of society — business, civil society — against those who are intent on imposing darkness on us, so that they can loot and plunder at will.

This is by no means an isolated attack. In the eyes of Jacob Zuma’s supporters, the media forms part of that axis of evil — to borrow a phrase — which almost denied their hero what he was due ; the other axis members being the Scorpions and the judiciary. Zuma’s triumph in Polokwane sounded the death knell for the Scorpions, who were immediately consigned to the scrapheap. The judiciary has been shouted down and almost cowed. Which leaves the media, with its enormous power to influence public opinion and to expose, shame and embarrass those in authority.

As Lenin once posed the question, what then is to be done? The media tribunal and the Protection of Information Bill seem to be the answer. The notion of “protecting” information from the public in a democracy is, frankly, bizarre.

It’s not the first time government has tried to rein in the media. The Nats tried several times, and failed each time . This lot, which seem keen to learn from their predecessors, will also fail. But that would demand concerted action from all sectors of society, including the business community. For once, business needs to raise its voice against what is arguably the biggest threat to our democracy since the fall of apartheid.

Source: Financial Mail: Barney Mthombothi

Sunday, August 1, 2010

Corruption and the different faces of the ANC

Deputy-President Kgalema Motlanthe made a clarion call to ANC branch leaders in Gauteng saying that “the fight against crime and corruption must first start within the ANC”. It is the duty of every decent ANC member to take up this call. The ANC National Executive Committee has to set the example.

Two major corruption scandals have emerged last week within state institutions. The ANC NEC and President Jacob Zuma must act on it immediately otherwise we must call into doubt the seriousness of the leadership in dealing with corruption. First, Minister Siphiwe Nyanda was again implicated in attempts to influence tenders in his department when his dismissed Director-General Mamodupi Mohlala approached the Labour Court for reinstatement. This follows the Transnet tender scandal and a new one that is emerging in the Gauteng government. Second, General Bheki Cele appears to be involved in an irregular tender award to the tune of R500 million. Apparently, the police Ministry and Department need new headquarters. Would the money not be better spent on equipment for the police or after-school care for children?

The big business faction of the ANC and their cohorts in the state apparatus must be challenged otherwise the ANC will always have two-faces — a face of social justice for elections and a face of corruption when in power. ANC Ministers and Directors-General must face justice when corruption is alleged.

Source: Writing Rights - Zackie Achmat

Saturday, July 24, 2010

Communications director 'released' from contract

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

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

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

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

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

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

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

Source: Mail & Guardian

Friday, July 23, 2010

Graft 'unchecked' without Scorpions

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

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

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

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

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

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

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

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

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

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

Source: Mail & Guardian

Tuesday, July 20, 2010

Nyanda: Maybe immoral AND illegal after all

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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

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

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

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


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

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

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

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


Source: Constitutionally Speaking

Sunday, July 18, 2010

ANC hits out on luxury hotel stays

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

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

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

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

Source: Times Live

Friday, July 16, 2010

Minister wants action on corruption “without fear or favour”

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

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

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

Source: Eye Witness News

A two-day job after minister and DG clash

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

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

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

Source: Mail & Guardian

Thursday, July 15, 2010

Nyanda denies rift with DG

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

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

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

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

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

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

Source: IT Web

Tuesday, July 6, 2010

Nyanda under investigation

The decision to start an official probe into allegations of conflict of interest against communications minister Siphiwe Nyanda will be taken at the end of July. Public protector Thuli Madonsela is currently compiling reports based on her investigations into the complaints received against the minister, according to her spokesperson, Kgalalelo Masibi. Masibi says the reports will be ready at the end of the month and the findings will guide the public protector in deciding whether an official probe is necessary.

Masibi explains that the first complaint was about the minister's alleged breach of the Executive Members Ethics Code by receiving benefits from an allegedly irregular tender from Transnet. Julie Killian, of COPE, laid this complaint on 19 March. Nyanda's company, General Nyanda Security (GNS) Risk Advisory Services, was awarded a R55 million contract by the now-dismissed Transnet Freight Rail CEO Siyabonga Gama. Nyanda has come out in support of Gama in his ongoing legal battles.

The second complaint was laid by the Democratic Alliance (DA). “It relates to a tender that was allegedly irregularly issued by the Gauteng Department of Transport to a company linked to Minister Nyanda (Abalozi Security Risk Advisory Services), before he became a minister, and his continued benefit from the contract now that he is a minister and has a duty to protect government interests,” says Masibi. The DA has also asked that the Public Protector investigate any other tenders that may have been irregularly issued to the company in question, she adds. DA Gauteng member of the Provincial Legislature Jack Bloom says the main issue is to discover why the contracts were awarded without tender and then not reviewed. “I think there should be a probe separate from the Ethics Act investigation and it could be done in co-operation with the director-general or the Special Investigations Unit or Hawks, whichever is the relevant body.”

National spokesman for the Congress of South African Trade Unions, Patrick Craven, says the union welcomes an investigation. “It's important in all these cases where the media has been publishing allegations. We're not in any way saying we agree that the people involved are guilty, but it's important because if they are guilty, then the matter can be dealt with, and if they're not, then they can be exonerated.”

Bloom says if the conclusion is that there was irregular lobbying for the tenders on behalf of the minister, and he is benefiting from them, then he could possibly be charged and there could be investigations into him as a sitting Cabinet minister.

Nyanda has previously not responded to requests for comment over the deal, which landed Gama in hot water. Department of Communications spokesperson Tiyani Rikhotso says the minister has no comment to make at this point in the matter. “For now these are just mere complaints taken to the Public Protector and the minister has nothing to say about this, because these complaints were not brought to him.”

Source: IT Web

Monday, June 7, 2010

Siyabonga Gama guilty, says Transnet

Former Transnet freight rail chief executive, Siyabonga Gama, has been found guilty of a serious breach of governance requirements in relation to two procurement contracts, the company said on Sunday. The findings by an independent chairman in an internal disciplinary hearing against Gama were delivered on Saturday, spokesperson John Dludlu said in a statement.

Gama was suspended in 2009 to face charges related to the allocation of a contract to refurbish 50 locomotives to Sibanye Trade Services, which allegedly lacks experience in the renovation of locomotives. Gama, who only had authority to sign off on contracts worth less than R10-million, also allegedly awarded a R19-million contract to a security firm with alleged links to Communications Minister Siphiwe Nyanda. "In a detailed 200-page finding, Mr Gama was found guilty of each of the charges brought against him including one of irretrievable breakdown in relationship with Transnet," Dludlu said. He said the hearing was in the final stage of completion where further submissions were expected before a request was made to its chairman for an appropriate sanction.

Source: Mail & Guardian

Friday, March 19, 2010

DA queries second tender for Nyanda firm

FOR the second time this week, a company associated with Communications Minister Siphiwe Nyanda has been named as benefiting from state tenders without an open process. GNS Risk Advisory Services, a company 50% owned by Nyanda, was awarded a contract in 2007 by Gauteng’s transport department.

The cost of the work was originally estimated at R12m by Impophoma Infrastructure Support, a business entity of the department set up to improve service delivery. But yesterday, a written reply from roads and transport MEC Bheki Nkosi in response to a Democratic Alliance (DA) question in the Gauteng legislature revealed that R67,87m had been spent on the contract so far, and that the costs had not been determined and fixed in advance. The disclosure came a day after Transnet announced it had sacked two senior managers for manipulating an R18,9m security tender in favour of GNS.

Discrepancies in the Transnet security tender had also led to the suspension of — and disciplinary action against — Transnet Freight Rail CEO Siyabonga Gama. Nkosi confirmed that a tender process had not been followed in awarding the Gauteng contract. “The accounting officer appointed GNS Risk Advisory Services through a deviation as provided for in terms of treasury regulation 16A6.4,” he said. A deviation allows for the procurement of goods or services by means other than competitive bids, only if a bid is impractical.

DA spokesman Jack Bloom said the problem was that the contract was open-ended. “ So far nearly R68m has been paid to GNS and more payments could still be made, unless the contract is urgently reviewed,” he said. Bloom said he had referred the matter to the auditor-general.

Nyanda’s spokesman, Tiyani Rikhotso, said there was no conflict of interest as the contract in question was awarded 18 months before Nyanda joined the Cabinet.

Source: Business Day

Thursday, March 18, 2010

Nyanda under fire

Communications minister Siphiwe Nyanda is again in the spotlight after two senior Transnet staff members were axed for awarding his company a multimillion-rand deal. Nyanda's company, General Nyanda Security Risk Advisory Services (GNS), was irregularly awarded a contract to provide specialised security services.

However, the limit on such tenders was R10 million, and Transnet has now fired two senior managers for awarding a deal worth more than that. The minister owns half of GNS, which had been paid R55 million between December 2007 and late last year, Barbara Hogan, minister of public enterprises, said in reply to questions in Parliament. The initial value of the deal was R18.9 million and was awarded by suspended Transnet Freight Rail chief executive Siyabonga Gama. Gama was suspended last September for his role in awarding contracts, including the security deal, without following the proper procedures.

Transnet spokesman John Dludlu this morning told ITWeb that the security contract with GNS has since been terminated. The state-owned enterprise has dismissed two senior managers in charge of security at Transnet Freight Rail, after wrapping up an internal disciplinary process. The managers were found guilty of dishonesty and misconduct by an independent investigation. The unnamed managers had awarded the GNS contract without opening a tender process, and without following the required governance processes. Their dismissal follows their suspension late last year, after the irregularities came to light. Tiyani Rikhotso, Nyanda's spokesman, was not available this morning to comment on the matter. The minister has, however, previously denied being involved in the day-to-day running of the security company.

The Parliamentary register of interests lists Nyanda as a 50% shareholder in GNS, but there is no value attached to his stake. His only listed benefit from GNS is a driver for general household tasks, the register indicates.

Nyanda previously come under fire from opposition party Congress of the People over the contracts between GNS and Transnet Freight Rail, as well as other government departments. He has also been called to task over his lavish spending at Cape Town hotels, instead of staying in his official residence, and for splashing out on luxury cars.

Source: IT Web

Friday, March 12, 2010

The minister of luxury

When in Cape Town Communications Minister Siphiwe Nyanda lives a five-star life at the city's top hotels -- ­courtesy of the taxpayer. Since taking office in May last year, Nyanda has not spent one night in his ministerial residence. Instead, he uses the lavish rooms of the Mount Nelson and The Twelve Apostles hotels at a minimum cost of R4 000 a night.

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

Although Nyanda's spokesperson strongly denied this, the department of public works confirmed on Thursday that Nyanda hadn't moved in because of a delay with the delivery of furniture "to accommodate him". Public works spokesperson Thamsanqa Mchunu confirmed that Nyanda's furniture finally arrived on February 5 and February 26. But communications department spokesperson Tiyani Rikhotso told the M&G on Thursday the house "[was] not ready for occupation". He confirmed that the communications department has been paying for Nyanda to live in Cape Town hotels since his appointment in May last year.

According to the M&G's information, Nyanda stays in the hotels an average of four nights when he visits Cape Town to attend Parliament. If he attended all National Assembly and special sittings since taking office, he would have spent about 88 nights in Cape hotels. According to its website, The Twelve Apostles charges R4 915 a night for a luxury room and the cheapest suite available costs R8 055 a night. The M&G was reliably told that Nyanda stayed in a "luxury suite" at this hotel. The luxury suite at the Mount ­Nelson that Nyanda uses normally costs R11 095 a night, but hotel invoices in the M&G's possession indicate that he pays R4 995 nightly for an "accommodation package". If he splits his stays between the two hotels, he could easily have racked up a bill of R400 000 since May last year. Rikhotso declined to provide a breakdown of Nyanda's hotel stays, saying he "was not in a position" to do so.

Nyanda checked into the luxury suite at the five-star Mount Nelson this week for four nights. The M&G's photographer spotted him leaving the hotel with two bodyguards on Wednesday morning. When the M&G called the hotel on Wednesday evening, we were ­transferred to Nyanda's room and he answered the phone. The M&G is in possession of two Mount Nelson invoices for Nyanda's stays in February this year. From February 6 to February 12 he ran up a bill of R33 330 for six nights’ accommodation, food, mini-bar expenses and laundry services. Between February 14 and February 19, the hotel billed Nyanda R21 417 for four nights' accommodation and food. The hotel confirmed that Nyanda stayed at the Mount Nelson from February 19 to February 23.

A policeman at the double-storey Hooggelegen mansion allocated to Nyanda confirmed that it was ­Nyanda's official residence, but that the minister had not yet moved in. He said he thought this was because renovations were taking place. From outside the house the M&G could see no sign of renovations. Another source in the communications department said Nyanda wanted to swap his Cape Town mansion with that of Science and Technology Minister Naledi ­Pandor, a neighbour of President Jacob Zuma. Rikhotso called the claim "malicious".

Pandor lives in Groote Schuur Estate, where Zuma and most of his ministers reside. "First the BMW, now this. It's very embarrassing to leaders of the ANC," a senior ANC national executive committee member remarked this week. "How do you tell people to work together with us for a better future when a minister is willing to spend almost 10 grand in one night on accommodation?"

Last year Nyanda came under fire for spending R2,4-million on two luxury BMWs for his Cape Town and Pretoria offices. Last week the M&G went on a ­conducted tour of Nyanda's usual suite at the Mount Nelson. The sweeping marbled entrance to the Lord Nelson suite is breathtaking and the rooms are decorated in a modern colonial style. Superbly done out by Cape ­decorator Graham Viney in creamy silk fabrics, it has a decadently ­lavish interior. A mirror image of the neighbouring suite that talk show host Oprah Winfrey occupied when she visited Cape Town, it is surrounded by magnificent gardens. Staff at the glamorous five-star Twelve Apostles Hotel and Spa, which stands like a glossy beacon above Llandudno Beach, said the minister booked "quite a number of rooms" when he came to stay.

Nyanda had stayed there recently, said a staffer, while another insisted that he had booked out of The Twelve Apostles last Thursday. Surrounded by the Table Mountain National Park, this boutique hotel is decked out in an eclectic contemporary African style and boasts breathtaking views of the Atlantic Ocean. It also has 24-hour room service and a luxury spa.

Police Minister Nathi Mthethwa was in hot water last year after spending R234 000 on accommodation for him and his bodyguards at Cape Town's Table Bay Hotel while his official residence was being ­renovated.

Abalozi Security Risk Advisory Services -- the company of which communications minister Siphiwe Nyanda’s family trust owns 45% -- may be in breach of the Companies Act by refusing to divulge the company's shareholding to the M&G. Nyanda has declared his 50% stake in GNS Risk Advisory Services -- Abalozi's previous name -- to Parliament. On January 29 the M&G revealed that GNS was benefiting from millions of rands in government business, including a R55-million tender from Transnet Freight Rail. On February 3, in terms of the Companies Act, the newspaper applied in writing to inspect the company's share register. After initially declining to present the register, the company agreed that the M&G could view the document at the offices of Ntumba Incorporated, Abalozi's auditors, on February 23. But when the M&G arrived at the office, we were told that the register was locked in the office of Melusi Ntumba, Abalozi’s auditor, and that he was not there. Abalozi subsequently "withdrew" its "consent" for the M&G to inspect the register.

On March 5 the M&G's lawyers applied again to Sylvester Sithole, Nyanda's business partner and sole director of Abalozi, to view the register. Sithole has indicated to Webber Wentzel, the M&G's attorneys, that he will not show it to the M&G. Curiously, Abalozi showed Business Report the latest share register, indicating that it is currently owned by Nyanda's children's Mphephethwa Trust (45%), "beneficiaries" of the company's staff, the Baliseni Trust (45%) and Sikutu Trust (10%). Greg Palmer of Webber Wentzel said: "The company and each director who knowingly refuses to grant the request for inspection within 14 days of the request commits a criminal offence in terms of the Act, and a court may compel the inspection of the register."

Source: Mail & Guardian