Global South African News Wrap 24 March 2012

Ministers flee mine Nzimande exceeded his powers court Fury over Malemas mining revolution Inter-union rivalry adds explosive new element to miners challenges in SA IMF report cuts growth forecasts for SA Zim constitution chaos Rock and a hard place After the massacre: Zuma's enemies fill the breach Sexwale's African ventures court controversy Manyi's plans for government agency hit brick wall Politics blamed for Lonmin tragedy Marikana shows dangers of populist leaders Marikana deaths raise questions over police conduct Bid to limit strikes in aftermath of Marikana Zuma calls week of mourning, sends top Cabinet team to help bereaved SA reflects extreme form of inequality Corrupt insiders big in rhino poaching 'Hit list' renews KZN fears Zuma to hit taxpayers with R517m upkeep bill COSATU hits back at Malema Grow cross-border trade DA Malema slammed for being opportunistic Ramaphosa in the Marikana crossfire Where were SAs spy services when the Marikana shooting began? Marikana violence places SAs credit rating in peril Mine pay revolt spreads in aftermath of Marikana Marikana accusations fly in Parliament BEE too focused on shares and dividends, says Mantashe JSC out to fill 13 vacancies amid growing criticism Education headed for new crisis, MPs warn Make private sector a real partner Lonmin must take responsibility: Bench Marks Foundation Marikana mass memorial planned Zumas single women views spark anger 'Death squad' under arrest Humble Zuma gives miners a hearing Mixed Lonmin messages DA demands 'accountability' MPs call for Mthethwas head

24 August 2012 Cape Times Page 1 Poloko Tau and Mogomotsi Magome

Ministers flee mine

A memorial service for the strikers killed at Marikana last week turned into a political rally yesterday with five ministers forced to leave after angry miners stormed the stage. Former ANC Youth League (ANCYL) leader Julius Malema slammed President Jacob Zumas government, accusing ministers of attending the service just to pose for the cameras. Malemas memorial took place a few hundred metres from the official one organised by the government. Government ministers present looked lost as they sat in one of the front rows listening to speaker after speaker condemning the government for the killing. Proceedings were disrupted when a group of men stormed the venue wearing Association of Mineworkers and Construction Union (Amcu) T-shirts and singing, resulting in the ministers leaving. The men sang anti-National Union of Mineworkers (NUM) songs while dancing with sticks. North West premier Thandi Modise was nowhere to be found when she was called to deliver a keynote speech. Malema told hundreds of mourners attending a service organised by his supporters at the Wonderkop informal settlement that Minister in the Presidency Collins Chabane, Mining Minister Susan Shabangu, Police Minister Nathi Mthethwa, Health Minister Aaron Motsoaledi and State Security Minister Siyabonga Cwele were there for selfish reasons. Malema said this was because the service had been organised and funded by the Friends of the ANCYL without a single cent from the government. Everything here was paid for by Friends of the Youth League. Your government didnt pay for anything today; the only thing theyre here for is to pose for cameras, said Malema. Mourners, including ministers and various church leaders, braved the scorching heat to gather under a marquee and another white tent. Malema called on the miners not to turn their backs on the ANC, saying power-hungry individuals gave the party a bad name. We need to return government back to the people but you should not be angry at the ANC because it is a good organisation which is given a bad name by those fighting for positions. The miners have refused to return to work until their 24 August 2012 Business Day Page 3 Karl Gernetzky

Nzimande exceeded his powers court

A court ruling that the Department of Higher Education and Training had no right to terminate or discipline staff at the Central University of Technology (CUT) could have "severe implications", Higher Education and Training Minister Blade Nzimande said yesterday. He said it could be interpreted that public institutions were beyond accountability to the government. Mr Nzimande faced a tough week yesterday, with the Bloemfontein High Court ruling that he had exceeded his power in appointing an administrator at CUT, while at the Tshwane University of Technology (TUT), 60,000 students were sent home after protests led to violence. The court ruling could have implications for the TUT and the Walter Sisulu University, which are also under the administration of the Department of Higher Education. Speaking at a media briefing on the state of the university sector yesterday, Mr Nzimande said the matter of CUT would be taken on review and the department would announce a course of action "in due course". While the court had not ruled in the departments favour on the matter of CUT, the report of an independent assessor had not been set aside, he said. Judge Johann Daffue had found in favour of the council of the CUT, which in June had brought an urgent review application seeking an order declaring invalid Mr Nzimandes decision to replace it. The appointment of administrator Stanley Ridge had followed an independent report by Prof Julian Smith in March that had recommended the universitys council be disbanded. The report had concluded that among other things the council had shown poor adherence to good governance principles; management had created a "culture of fear"; and management was unable to effectively manage human resources. However, Judge Daffue ruled that under the circumstances no reasonable decision-maker could have reached the decision made by Mr Nzimande, and "the minister must accept the autonomy of the university. The step taken by (the) minister was drastic." CUT vice-chancellor Thandwa Mthembu said the judgment was a victory for the autonomy of higher education institutions and academic freedom, but has acknowledged that there are staff morale problems, which could be dealt with by CUTs management. Mr Nzimande said yesterday that an institution such as CUT was "not your private house" and a public institutions autonomy should not prevent those running it from being held accountable. The judgment risked making universities a law unto themselves, he said Mr Nzimande also spoke on the matter of TUT, an institution that had shut down all of its campuses following a week of violence last week, saying the institution was set to reopen on Monday. The students had been protesting over poor living conditions, long waiting lists for student funding, and had demanded free transport. TUT vice-chancellor Prof Nthabiseng Ogude apologised for the sudden closure of the institution in a statement yesterday, saying she had no other option due to the violent nature of the protests.

Security at all campuses had been strengthened, and the academic calendar revised in order to make up for lost time, she said. But while studying at TUT will continue as student concerns are addressed, Mr Nzimande will likely be giving another briefing soon, as trouble brews at the University of the Witwatersrand (Wits) and the University of KwaZulu-Natal (UKZN). UKZN announced yesterday that its Howard College campus would be closed because of continuing student protests. At Wits, academic and support staff are set to strike on Tuesday next week, the second protest this month.

24 August 2012 Business Day Page 1 Carol Paton

Fury over Malemas mining revolution

Julius Malema yesterday raised the stakes in an increasingly bitter political battle gripping SAs platinum fields, threatening more strikes unless mineworkers working conditions improved. The expelled African National Congress (ANC) Youth League president scored a breathtaking political coup yesterday, dictating proceedings at a memorial service for slain workers at Marikana and then taking full credit for organising and funding the event and telling the mourners that the government "did nothing". Cabinet ministers looked on in shock as the full extent of Mr Malemas political ambush became apparent. Mr Malemas political manipulation of the events and his links to striking platinum miners have confirmed the belief among Cabinet ministers, industry chiefs and analysts that the labour instability in the platinum belt is being orchestrated. Police Minister Nathi Mthethwa said on Wednesday an investigation was under way into the suspected political manipulation of mineworkers. A second, senior member of the government, said yesterday there was a strong belief at the top levels of government that the events were being instigated. Speaking at the service yesterday, Mr Malema made it clear he intended further fanning the flames of discontent in the industry. "You must stand up and fight for your rights. If these conditions are not going to change we will see more strikes in the mining industry. This is a mining revolution," he said, to rapturous applause. Mr Malemas manipulation of the event yesterday was carefully planned and carried out in tandem with local worker leaders, who align themselves with a new trade union recruiting miners, the Association of Mineworkers and Construction Union (Amcu). In meetings with the governments interministerial task team and religious leaders leading up to the memorial event, the worker leaders told the government they did not want a marquee and wanted to hold the event outdoors.

A stage and sound equipment was erected by the government in the veld adjoining the informal settlement close to the mine, near the koppie that was the scene of the killing of 34 striking mineworkers last Thursday. But on the other side of the koppie, the Friends of the Youth League an organisation formed to support Mr Malema after his expulsion from the ANC erected a white marquee, with chairs and a public address system. It was there that people gathered for the memorial service, with Mr Malema revealing he had arranged and paid for the tent. "The Friends of the Youth League paid for this tent and this sound system. Your government did nothing. Today they are here to pose for pictures so that they can record they were part of the meeting," he said. Workers representatives had agreed with the organising committee that there would be no trade union or political party speeches. But after the religious part of the service ended, the workers leaders took to the stage and announced changes to the programme, which included speeches by Mr Malema, United Democratic Movement leader Bantu Holomisa and Amcu president Joseph Mathunjwa. The Cabinet committee charged with assisting the workers and their relatives last night criticised the hijacking of the memorial service, which it said had "unfortunately degenerated into a party-political platform". "The event lost its purpose and desecrated the memory of the departed who were supposed to be remembered in dignity," the committee said in a statement. "The presence of the committee adequately demonstrated governments empathy and commitment to assist the bereaved families. After the memorial service, the committee visited the bereaved families in Marikana to pay their respects." Mr Mathunjwa received a rousing welcome from the crowd. In a short address he criticised the process of the awarding of mining licences, which he said should be done more carefully. Asked afterwards if he had any links with the Friends of the Youth League, Mr Mathunjwa said there were none. He asserted that labour instability at the platinum mines was spontaneous and not orchestrated. "Weve got no relationship with the Youth League. This is not being instigated. People have been in silence for 300 years. And now every township is burning," he said. Apart from the concern in the government, industry sources and analysts expressed fears about the potential for continuing instability in mining. A top platinum executive, who did not want to be named, said: "This is obviously bigger than what you see on the surface. This is not a company-specific problem." NicBorain, political risk analyst for BNP Paribas Cadiz Securities, said labour activities at several platinum mines were showing "very similar demands and organising methods and it is unlikely that they are not co-ordinated". Peter Montalto of Nomura Asset Management said the Lonmin dispute was "only the tip of the iceberg". "If Lonmin caves in and meets workers wage demands, then demands by other workers will spread throughout the mining industry," he said. The Congress of South African Trade Unions warned yesterday that it had identified a "coordinated political strategy" to use intimidation and violence on the mines. It said this was manipulated by disgruntled former union leaders, in a drive to create breakaway unions and divide and weaken the trade union movement.

It urged its biggest affiliate, the National Union of Mineworkers, to "take up their claim", with comparable demands for workers in the industry, "whose wages are equally pathetic, and whose living conditions are also still squalid and lacking in basic services". About 500 people crammed into the marquee for the five-hour memorial service yesterday and crowds spilled out into the dusty fields outside, listening to the hymns and prayers. Women wrapped in blankets wept and fainted, and mourners placed flowers at the scene. Other memorial services took place around the country. "Such a killing of people, of children, who havent done anything wrong and they didnt have to die this way," said Baba Goloza, whose two sons were shot dead by police. He blamed Lonmin for not taking care of its workers at Marikana. President Jacob Zuma yesterday announced the terms of reference of a judicial inquiry to probe the events which led to the deaths of 44 people at LonminsMarikana operations, sparing no party to the incident, including the police, the company and the trade unions. In the days before the police shootings, 10 people were killed, including two police officers and a shop steward hacked to death with machetes. 24 August 2012 Business Day Page 1 Allan Seccombe

Inter-union rivalry adds explosive new element to miners challenges in SA

IMPALA Platinum (Implats), the worlds second-biggest producer of the metal, yesterday provided a graphic insight into the effects on companies of the labour dispute that is spreading across the platinum sector. Inter-union rivalry has added a new dimension to the traditional standoff between mine owners and workers, with start-up union, the Association of Mineworkers and Construction Union (Amcu) sharply challenging the established National Union of Mineworkers (NUM). The labour unrest has spread beyond Lonmins Marikana mine, with workers at Royal Bafokeng Platinum embarking on a stoppage on Wednesday, and workers at other platinum mines threatening to follow suit. Seeking a way through the labour disruptions and bloodshed, Implats CEO Terence Goodlace said yesterday the worlds largest platinum producers were discussing a move to collective bargaining to try to defuse tensions. The platinum sector currently negotiates with unions on a company-by-company basis, leaving individual firms open to labour discontent as rival organisations promise workers they can cut better deals. This situation has also created wage disparities between platinum companies that do not exist in the gold and coal sectors which bargain collectively, further fuelling resentment. "Its been very complicated talking between the two parties, to broker anything like normality between the two parties and to ensure we advance this process," Mr Goodlace said.

"We are walking a tightrope. If you look at whats happening in and around us and the demands all across the industry, it would be irresponsible for us to say nothing could happen to us. "These developments pose a significant risk to the industry. At this point we believe we have a measure of stability, but it is unreasonable to say nothing will happen to us," he said, at a presentation on the companys results which showed a 38% drop in headline earnings. Implats has cut capital expenditure by R1bn for the 2013 financial year after reporting a 37% drop in profit for the year to end-June, to R4.3bn. The key reasons are the six-week illegal strike in February and March marked by violence and intimidation, and subdued metal prices. Implats will now start a process of verifying membership claims by the NUM and Amcu next Wednesday. It has roped in a facilitator from the Commission for Conciliation, Mediation and Arbitration, after eight independently audited attempts to count membership were rejected by both unions. If the verification shows NUM membership has fallen below 50% plus one of the workforce, Implats can issue it with a notice that it faces de-recognition as the dominant union, and that it has three months to bump up its membership. If the NUM is unable to regain its majority membership, Implats will then be able to recognise Amcu. Lonmin management said the unions battle for membership was behind the violence that has brought its Marikana mine to a standstill. Implats and Lonmin halted operations yesterday to mourn the dead. Implats has set up interim workers committees so that it can engage unions regularly and this has brought some semblance of stability to the companys mines, Mr Goodlace said. Asked at an Implats results presentation yesterday by JP Morgan Cazenove analyst Steve Shepherd if there was "industrial anarchy" on platinum mines, Mr Goodlace disagreed. The situation was manageable, he said, but this entailed talking to all unions and to provide guidance to Amcu, which is a relatively new union compared to the well-established NUM. "No, I wouldnt say that. Its manageable. Weve started doing a lot of work with the emerging workers committees to say this is how you operate and these are the systems," he said. "Bear in mind, a lot of these people are not as experienced as NUM. "Its taking up an inordinate amount of time, but its the only way to keep operations going and making sure dialogue exists," Mr Goodlace said. Implats has upgraded its participation in the Chamber of Mines to full membership to facilitate dialogue. One of the main issues the Marikana violence has raised is the presence of informal settlements that have sprung up around mines, where miners and their families live in squalor. Mining companies are compelled by law to convert hostels into single or married quarters. They pay a living-out allowance of about R1,800 to workers who do not live in mine accommodation. Some miners have preferred to pocket that payment and live in shacks.

There is a constant influx of people coming to live near the mines, which are increasingly drawing their labour from local communities, adding to the mushrooming of informal settlements. Mining companies pay a mining royalty, which goes to the fiscus rather than being ring-fenced for the benefit of communities living near mines or in labour-providing areas. "Dare I say, the mining royalties we are paying government, maybe some of that should come back to the communities," Mr Goodlace said. Impala mines near Rustenburg had paid R400m in royalties in the 2012 financial year. 24 August 2012 Business Day Page 2 Mariam Isa

IMF report cuts growth forecasts for SA

There could be scope for a further cut in interest rates in SA if the global environment worsens, as this will put downward pressure on domestic inflation, the International Monetary Fund (IMF) said yesterday. The IMF slashed its growth forecasts for SA for this year and next year in its annual report, saying that "distress in Europe" had delayed the countrys economic recovery, although it should pick up speed in the next few years. The Washington-based lenders remarks reinforce mounting evidence that the economy will slow more than expected this year, casting a cloud over job prospects. Growth was set to slow to 2.6% this year from 3.1% last year, before accelerating to 3.4% next year, the IMF said in its 2012 article 4 consultation with SA. That compares with forecasts of 4 .2% for both years in the same report a year ago. The IMF sees growth picking up to about 4% in 2014 and 2015. It said policy space to deal with adverse shocks to the economy had diminished over the past few years, particularly on the fiscal side, as government revenue would decline in the event of further global stress. "If the external environment were to deteriorate further, the resulting moderation of inflation will allow the Reserve Bank greater room to respond," it said. The IMF welcomed the Banks decision to trim its key repo rate by half a percentage point to 5% last month. Absa Capital economist Jeff Gable said an interest rate cut at some point in the months ahead was "more likely than not", although not necessarily at the Banks policy meeting next month. "Global issues are unlikely to be clearly better or worse by then were in for a period of heightened global uncertainty for a long period of time," he said. Official growth figures for the second quarter of this year, due next week, would highlight an economy "which is not collapsing but showing continued strain", he said. SA should take steps as soon as possible to reduce government debt to rebuild some of the policy buffers lost in recent years, the IMF said. "Staff recommended that any revenue over performance be saved," it noted.

The IMF warned that "further slippages" in official attempts to curb the public sector wage bill "could erode the governments credibility at a delicate global juncture when rating agencies are questioning its ability to rein in spending". "The wage bill needs to fall and capital spending to increase, especially for priority areas such as health and education," it said. The three top global rating agencies Standard & Poors, Moodys and Fitch have all put negative outlooks on their credit ratings for SA, which means the next change may be a downgrade. Real wage growth in the public sector should be limited to 1%-2% a year, in line with estimates of long-term average labour productivity growth, the IMF said. The government and public sector unions have agreed on a wage increase of 7% over each of the next three years, and the latest data shows inflation was 4,9% last month. The Treasury said it welcomed the IMFs assessment that SA "has a stable and resilient economy but one that could do better". The IMF said it supported the governments plans to introduce a National Health Insurance scheme, as well as social security and retirement reforms. "Although financing options are still under debate, the chosen financing package should keep the fiscal consolidation plan intact and preserve fiscal sustainability," it said. The IMF noted that there was still scope for further improvement in the Treasurys budget process, including external scrutiny of its macroeconomic assumptions and forecasts and independent evaluation of fiscal policies. It recommended that SA continue to build its gold and foreign exchange reserves to help cover an expected rise in foreign liabilities.

24 August 2012 The Times Page 8 Vladimir Mzaca

Zim constitution chaos

The constitution-making process in Zimbabwe has been thrown into disarray after both factions of the Movement for Democratic Change vowed to reject fresh demands by President Robert Mugabe's Zanu-PF. During President Jacob Zuma's visit to the country last week it was noted that only minor glitches were stalling the exercise and the coalition partners were expected to work tirelessly to iron out their differences. But, at the weekend, Zanu-PF submitted to the Maputo SADC summit meeting a draft constitution that restores presidential powers and reneges on some of the draft charter's most important provisions. The draft constitution, already accepted by Prime Minister Morgan Tsvangirai's MDC and its breakaway party, would rein in presidential powers while bolstering those of parliament.

It would also set down a presidential term limit of 10 years and remove the president's immunity from prosecution after he has left office. "The demands by Zanu-PF will mean that we would end up with a constitution worse than the current one. We don't accept this kind of situation," the MDC's Douglas Mwonzora said. Welshman Ncube, leader of the MDC breakaway, described the demands as counterproductive and aimed at robbing the people of Zimbabwe of their right to free and fair elections. Zuma's mediating team is fast running out of time now that the SADC has resolved that Zimbabwe should hold elections within 12 months after putting in place electoral reforms, chief among them being a new constitution. But Zuma's special adviser on foreign affairs, Lindiwe Zulu, said yesterday that her team would meet the feuding parties in Zimbabwe next week to help speed up the reforms. The MDC said yesterday that a new opinion poll reflecting a surge in support for Zanu-PF was skewed by a "margin of terror". Nearly half of those questioned refusing to disclose their political loyalties. Mwonzora said yesterday that the poll by US-based Freedom House was "unreliable" because voters were intimidated by Mugabe's militants. Freedom House's 54-page report said support for Zanu-PF rose to 31% from 17% in the past 18 months, but dropped for Tsvangirai's party from 38% to 20%. 24 August 2012 The Times Page 13 Jim Jones

Rock and a hard place

Comparisons can be invidious. Yet, in the wake of the deadly protests at Lonmin'sMarikana platinum mine, and with accusations flying back and forth, the question of whether South African miners are being absolutely or relatively mistreated is inevitable. Take Australia, whose mining sector has close parallels with South Africa's. Both countries' mining companies regularly warn of the dangers of skills shortages. Paying miners more should, in theory, help overcome the problem, shouldn't it? Depending on whose figures one takes, Marikana rock-drill operators earn an average of R8000 a month (R10000 gross, according to Lonmin). The Association of Mineworkers and Construction Union, which is fighting to displace the National Union of Mineworkers as the workers' representative, helped trigger the latest bout of violence to shake the platinum industry with demands that the monthly wage be lifted to R12500. The protesters, it seems, were not all rock-drill operators. The protests, allegedly, were fomented by unemployed miners. We'll need to wait for the official inquiry to sort that issue out. Only days before Marikana, miners had made similar demands at Amplats and at Royal Bafokeng Holdings mines.

NUM is being increasingly portrayed as the poodle of mine owners, a union that is as out of touch with workers' needs as the ANC . Let's compare South African wages with those Down Under. The Australian employment consultancy My Career reckons that the average basic salary for drillers and blasters - the men at the rock face - is A$142000 a year or something over R1.2million. In other words, the Australian drillers' basic wages are more than 10 times those of their South African counterparts. But that's where comparisons end. Should we compare our mining industry with Venezuela's or Bolivia's, where nationalisation has done nothing for people working in dangerous mines, existing on pitifully low wages and living in squalid conditions? Australia is no paradise on earth, but its government delivers services efficiently. South Africa is a relative catastrophe, with government foisting responsibility for delivery of services such as medical care, water, housing or education onto the mining companies in more remote areas. In this respect we are little different from countries with dysfunctional governments. Only a couple of months ago Lonmin's human capital manager, Abey Kgotle, was talking of the challenges facing his company: perceptions that the mines were not investing enough in development of host communities, increasing youth unemployment, union membership dynamics and the social milieu of workers. Yet Lonmin, and other firms sensitive to the issues, provide extensive social services to their mines' host communities and, in Lonmin's case, to distant Eastern Cape communities home to the company's migrant Pondo miners. Where is the government? The global debate about executive remuneration is becoming increasingly virulent. In Lonmin's last financial year CEO Ian Farmer raked in a package equivalent to R16-million, some 130 times the wage of a Marikana rock-drill operator, and he was running a company with sales of $2.2-billion. In Australia, Marius Kloppers, the CEO of BHP Billiton, was rewarded with the equivalent of R90-million, 75 times the salary of an Australian driller. But he was running a diverse group with sales of $72-billion. In relative terms, where is the greater equality between the boss and employees? Is this relevant to the current situation? Disparities figure regularly in the rhetoric of individuals seizing on miners' grievances for their own ends. But it's hard to believe that ordinary miners are aware of the wealth of people like Farmer or even, say, Patrice Motsepe or Julius Malema. Malema has seized the Marikana opportunity to repeat his nationalisation demands and win support with xenophobic claims that Lonmin is controlled by British interests. Does this sway the miners, who are concerned with their personal economic plights? It probably colours the views of those British investors targeted by Lonmin in its mooted $1billion rights issue to refinance and develop its mining operations. Given the latest violence, it is an open question which of the British shareholders reviled by Malema might contribute new capital for South Africa. The Marikana violence could not have come at a worse time. It's no secret that South Africa's platinum companies are struggling. There are the rising costs of mining at ever-greater

depths, work stoppages that hack production, and electricity outages as the state-owned Eskom dithers. They are also struggling with low platinum prices, with slackening demand from the world's vehicle industry, and with growing competition from Russia and Canada. Loss-making mines have been closed and companies such as Anglo-American are reappraising their South African operations. Jobs are on the line. Meanwhile, a luta continua.

24 August 2012 Mail and Guardian Michelle Pietersen, Matuma Letsoalo

After the massacre: Zuma's enemies fill the breach

The Marikana massacre has exposed an increasingly tense relationship between the ANC leadership and its fractious members in North West. It has created fertile ground for Mangaung battles. The strained relationship between the mineworkers, the National Union of Mineworkers (NUM) and, by extension, the ANC, created a vacuum that expelled ANC Youth League leader Julius Malema sought to fill this week. Malema, suspended youth league secretary general Sindiso Magaqa and league spokesperson Floyd Shivambu have been in Marikana with the miners since Friday last week. They arranged legal representation for the 259 miners who were arrested and joined the workers in laying charges of murder against the police. But Malema denied that he was on a personal and anti-Zuma crusade, using the tragedy for his own political agenda. "I can't sit back while my people are being killed and pretend as if it is not happening," he said this week. "I have an obligation to intervene and raise the plight of those who are abused by the state. Political vacuum "There was a political vacuum and we occupied that space. If we failed to do that, the wrong elements would have taken that space. We took it while the [ANC] leadership was indoors speaking to themselves." But Malema's allies said that their work on the ground was part of a concerted strategy to undermine Zuma's leadership. Malesa said "President Jacob Zuma has a problem of thinking capacity. It's a serious limitation. He is a man of afterthoughts. He thinks very slowly. It took him the whole week to think of visiting the workers a whole week. Another president would have been there that day and taken action." Zuma also sought to display a deep level of concern and urgency. He cancelled several appointments and visited the area twice in a week. He cut short his trip to the Southern African Development Community conference in Mozambique, announced the establishment of a judicial commission of inquiry to investigate the shootings and sent senior Cabinet members to assist the families of the slain miners.

But he took flak for visiting the miners only on Wednesday, six days after the massacre. Miners told Zuma that Malema was the only leader who came immediately to assist them, despite them having voted Zuma into power. After his visit to Marikana on Wednesday, Zuma told the ANC's centenary lecture in Mafikeng later that day: "I have now listened to all sides, but I will not judge the incidents." Power struggle Marikana is near Rustenburg, which is part of the ANC's largest and most influential region in North West. There is a power struggle over control of the region between ANC provincial secretary KabeloMataboge, a vocal supporter of Malema and Deputy President Kgalema Motlanthe, and a camp led by ANC chairperson Supra Mahumapelo, who are firm backers of Zuma. The leadership battle and bitter infighting has also spilled over into unions affiliated to Cosatu, including the NUM. Workers in the province said this week the events that transpired were inevitable. They complained that the ANC leadership in the province had failed to provide them with support. Service delivery is practically nonexistent and development stagnant. Many expressed concerns that the union and ANC leadership were more concerned about the interests of Lonmin than the workers'. "We know that NUM leaders benefit from mining operations," said a worker who did want not to be named. "We don't trust them and we don't trust the ANC. The ANC and the NUM is the same thing because of the alliance between Cosatu, ANC and SACP [South African Communist Party]." This week, senior ANC leaders conceded that the party was losing touch with its grassroots supporters. ANC national executive committee member Collins Chabane said: "There is a feeling among comrades that we are growing distant from the people. But it must be taken into context. "What is the ANC? It's made up of various leaders in different levels and we can't micromanage every single branch. We know it's not up to scratch." 24 August 2012 Mail and Guardian Craig Mckune, Stefaans Brmmer

Sexwale's African ventures court controversy

Tokyo Sexwale's 2011 Cabinet declaration gives a glimpse of why he prefers not to make such reports, and the exotic riches behind his silence. "Minister Sexwale remains placid and having resigned from all business operations he remains focused on his ministerial responsibilities for the poor." - XolaniXundu, June 22 "It is a well-known fact that Minister Sexwale has publicly resigned from all companies and will therefore not dignify faceless sources by confirming or denying any of their stories." XolaniXundu, June 28 "It is reiterated that no response will be entertained in respect of operations and activities of companies that the minister is no longer in charge of." Xolani Xundu, August16 Human Settlements Minister Tokyo Sexwale's spokesperson, Xolani Xundu, earns his salary by not saying much these days, it seems. And although Sexwale was worth R1.9-billion in

listed equities when he joined the government in 2009, his parliamentary and Cabinet interest declarations are as taciturn as Xundu. Sexwale's 2011 Cabinet declaration gives a glimpse of the apparent reason why he does not make declarations and the exotic riches behind his silence. Forget the shares in the mining, service and publishing companies that made Sexwale a household name in empowerment. All that Sexwale declared was a 15% stake in a charter jet and a trust that "has investments in various immovable properties and a yacht". Only one of the properties was accorded further elaboration although not enough to confirm it was all of an Indian Ocean island, Quillea. The declaration simply said: "One of these is a property in Mozambique that has been used as a personal asset to date, but which could be developed for commercial purposes in the foreseeable future." Because of the possible commercialisation, Sexwale declared: "I have instructed my advisers to transfer the shareholding in this asset to one of the 'blind' trusts to be executed as soon as possible." Put differently, Sexwale's business interests are housed in "blind" trusts, the assets of which are not declared. Blind who? But who is kept in the dark? Sexwale, as he should to insulate him from conflicts of interest, or the public, which is deprived the right to know what fills his coffers (and may fuel his political campaigns)? A blind trust, Wikipedia says, is one in which the trustees "have full discretion over the assets and the trust beneficiaries [read: Sexwale] have no knowledge of the holdings of the trust and no right to intervene in their handling". It is an arrangement popularised by developed-country politicians whose assets tend to be amorphous portfolios of listed shares, easily administered without their knowledge. Sexwale's holdings are different. Most of his known investments are through Mvelaphanda Holdings, which he co-founded with Mark Willcox and MikkiXayiya after his first stint in government ended in 1997. Although the trusts through which Sexwale co-owns Mvela Holdings may now be technically blind and beyond his control, it is inconceivable that he will be truly unaware of what the company, which Willcox still runs, does with his money. For starters, MvelaHoldings's listed investments have been there for all, including Sexwale, to see. Stakes in Absa bank and media company Avusa are examples recently in the news. Much less visible to the public are the Mvela Holdings interests that went into African Global Capital (AGC), an offshore joint venture with United States hedge fund Och-Ziff. Offshore Until recently, Willcox managed AGC through Africa Management Limited. AGC would not be invisible to Sexwale, though, both because he was actively involved when it was set up in 2007 and his Mvela Holdings associates remained involved. AGC sprouted investment tentacles through a warren of island secrecy jurisdictions back into Africa and even to South Africa, where one of its investee companies, Coal of Africa, earned controversy for its mining development near the Mapungubwe heritage site in Limpopo. Sexwale appears not to be as insulated from conflicts of interest as he should be. If he knows where his money is, as he arguably does, he may be tempted to use his power as a public representative to serve his interests over the public. Has he succumbed to the temptation? Because the extent of his holdings is unknown, it is impossible to answer. But the Sexwale aura has been there for the exploiting. Signet Mining Services, a uranium explorer subsidiary of AGC, boasted on its website of "strong political alliances in Africa through Mvelaphanda".

And in Congo-Brazzaville an unexpected controversy showed Sexwale's apparent willingness to "show face" to assist another AGC subsidiary, oil junior New Age, to land a stake in a major gas field. Congo-Brazzaville Sexwale, a trustee of the Nelson Mandela Foundation, gave permission to use a passage, apparently from an old Mandela speech, in a biography of Congolese president Denis Sassou-Nguesso. When the passage was used as a foreword purporting to be purposewritten by Mandela, the foundation roared about the "brazen abuse", sparking a diplomatic incident. Sexwale, then more than six months in government, popped up in the Congo, placating Sassou-Nguesso on national television. What was not known then was that New Age, the company Sexwale was invested in through AGC, was in the throes of negotiating a stake in the Marine XII offshore gas field with SassouNguesso's government. Six months later, in June 2010, New Age had the stake. One person with knowledge of the negotiations claims that the Sexwale factor was crucial. "New Age appeared at the time as a South African company and there was a willingness from Congo-Brazzaville to improve its relations with South Africa, with the newly elected President [Jacob] Zuma and [his] new team in place." Sexwale, this person claims, "promoted" the New Age deal directly with Sassou-Nguesso during his visit. DRC The investments through AGC placed Sexwale in bad company that of Israeli businessman Dan Gertler as revealed by the Mail & Guardian last week. Even if Gertler's wildest antics were yet to come when they joined up, the unfolding events gave rise to the kind of reputational risk that usually sends politicians scurrying. But Sexwale (or at least his money) stayed put arguably as the risk of exposure was minimal owing to the opacity of his and AGC's interests. The formal relationship with Gertler started in 2008, while Sexwale was still actively in business. AGC invested $150-million with Gertler's British Virgin Islands-registered Camrose Resources, which had some Democratic Republic of Congo (DRC) mining assets and acquired more with part of the AGC money. The $150-million was more than a loan, as it was convertible to equity and the terms gave AGC quasi-ownership rights to Camrose. For the next two years, Gertler was hocked to AGC through Willcox-run Africa Management Limited. During those two years, Gertler embarked on a series of controversial "grab and flips" of mineral assets in the DRC. In these, Gertler (who denies all allegations) stands accused of using his connection with DRC president Joseph Kabila and the latter's consigliere, the now-deceased Augustin KatumbaMwanke, to bag public assets cheaply and without tender, selling or part-selling them to established miners at great profit. Greatest grab In August 2010, Gertler perfected the "grab and flip" that would lead to the greatest outcry, that of the Kolwezi copper and cobalt tailings project from which Canada's First Quantum Minerals had been bumped by the authorities after spending $430-million developing the assets. Gertler brought Kolwezi into Camrose, his company hocked to Sexwale and his associates, before onselling half of Camrose to a mining major. Only then and it is understood largely at the behest of Och-Ziff, which as a United States company has to be particularly sensitive to reputational risk did Sexwale and associates exit Camrose, transferring their loan to another Gertler entity under arms-length terms. Were Sexwale or his associates complicit in Gertler's "grab" of Kolwezi? There is no evidence to that effect, but their involvement in a similar and simultaneous stunt suggests they were not simple bystanders.

Oil blocks In June 2010 and without any notice or tender, Kabila signed two Lake Albert oil blocks, already sold to Irish and South African concerns, to two entirely opaque companies, Caprikat and Foxwhelp, both newly registered in the British Virgin Islands. South African presidential nephew Khulubuse Zuma initially claimed to be the owner of both, but fingers pointed at Gertler. ZumaJr has since disappeared off the scene and the DRC oil minister confirmed Gertler's involvement two months ago. The M&G revealed Sexwale and Willcox's own proximity to Caprikat and Foxwhelp in 2010, when it showed that the addresses the companies used as legal domicilium belonged to Mvela Holdings and a Sexwale charitable foundation. At the time, Willcox denied he, Sexwale or any associate had financial interest, saying he had simply given "strategic advice" to Zuma Jr. Willcox is known to have been involved in subsequent attempts to onsell the oil blocks to oil majors arguably the flip after the grab. There is no evidence he has done this by dint of ownership, but the facts suggest that Willcox, and Sexwale by extension, knew exactly what Gertler was doing. Additional research by James Wood 24 August 2012 Mail and Guardian Charles Molele

Manyi's plans for government agency hit brick wall

Jimmy Manyi suffered a double blow this week when the treasury rejected his plans for restructuring the government communications agency. And the presidency slammed the controversial government spokesperson's lack of consultation. Since joining the communications agency in February last year, Manyi has been tinkering with structural changes, but was this week stopped in his tracks by the treasury. Before former Government Communication and Information System (GCIS) chief executive Themba Maseko left, he conducted a review of the organisation with a new organogram. But when Manyi joined, he introduced another structure, upsetting some people in the government. There is a concern that it appears that your department is preparing itself for growth during a constructive climate and the baseline impact of this structure change needs to be interrogated in more detail, Manyi was told in the letter, written by Japie Jacobs, director general of government and administration in the treasury. Jacobs added: There are two new sub-programmes that your department wants to introduce in 2013-2014, namely cluster supervisor (human development, social protection and government and administration) and cluster supervisor (economic and infrastructure, justice and international). Introducing these sub-programmes suggests a requirement for additional staff and other related resources, for which there is no guarantee that additional funding will be received. Jacobs said the GCIS had previously indicated its budget pressures and how it had had to reprioritise to accommodate some of its main goals, impacting on staff morale and resulting in high staff turnover. Based on this, it does not seem possible that these additional subprogrammes will be funded internally, except through additional funding.

Manyis contract expires at the end of the month and is described by government officials as unlikely to be renewed. Performance monitoring The Mail & Guardian understands that Manyi also did not get approval for his plans from Collins Chabane, the minister in the presidency responsible for performance monitoring and evaluation. On Thursday, the M&G was shown another letter from the presidency signed by Chabanes deputy, Obed Bapela, in which he warned Manyi about going ahead with his restructuring plans. As the deputy minister delegated to provide ministerial oversight and responsibility to the GCIS, I hereby appeal to the top management not to proceed with the planned restructuring of the institution, Bapela wrote. It is my firm belief that the restructuring of the GCIS should be holistic and not piecemeal. When the transition phase has been completed, the GCIS, in consultation with the executive authority, will engage on the process that will be followed in restructuring the institution. The restructuring process should be done in a holistic manner, with a view to shape the institution to respond to current demands and needs of the ruling party [the ANC]. When approached for comment by the M&G, Manyi retaliated by issuing a statement titled Smear campaign against Manyi orchestrated through the Mail and Guarian [sic] and rejected claims that he had not informed Chabane about his restructuring plans. Decision-making processes Any insinuation that the minister may not be aware is simply a misunderstanding of the collective decision-making processes of Cabinet or undermining the authority of the minister in GCIS operations, said deputy GCIS chief executive Phumla Williams in the statement. Our request was in no way for funding or a restructuring of the organisation, but for the name changes of the branches in compliance with the national treasury guidelines, said Williams. A government official told the M&G: The man has been changing the structure, moving people and renaming sections and units ad infinitum. Whereas his predecessor, Joel Netshitenzhe, left some degree of intellectual depth in government communications, Manyi mistook abrasiveness and aggression for intellectual sophistication. The official added: Maseko had a good relationship with the media, but Manyi came in and destroyed that through his confrontational approach. He leaves no tangible legacy behind except an unstable GCIS and strained relations with the media and government communicators in general. He will be remembered for all the wrong reasons. 24 August 2012 Mail and Guardian Faranaaz Parker

Motshekga's statements on basic education rights 'incorrect'

The commission of inquiry's terms of reference are far-reaching, its deadlines tight and its worth in doubt. President Jacob Zuma has appointed a commission of inquiry to establish what happened at the Marikana massacre.

The inquiry's terms of reference are far-reaching and its deadlines tight. Speaking at a media briefing at the Union Buildings on Thursday afternoon, Zuma said Judge Ian Farlam, retired judge of the Supreme Court of Appeal, will chair the commission. "The commission shall complete its work within a period of four months and must submit its final report within a month of completing its work," he said. Farlam is highly regarded and will be joined by advocate Bantubonke Tokota SC and advocate Pingla Hemraj SC, who have both acted as judges. The terms of reference include investigating Lonmin's conduct and, in particular, whether it tried its best to resolve labour disputes. The commission will also investigate the conduct of the police, the National Union of Mineworkers and the Association of Mineworkers and Construction Union, as well as individuals and other government departments, should it see fit. Reports and recommendations The commission may refer any matter regarding the conduct of a person or group for prosecution, further investigation, or convene a separate inquiry. It will be empowered to enter and search premises, secure the attendance of witnesses and compel anyone to produce documents. Zuma said the terms could be extended, changed or amended and the commission would submit interim reports and recommendations to him each month before presenting its final report. A coalition of Marikana community members, striking miners and civil society movements announced this week that there would be an "independent, people's commission of inquiry" into the massacre that claimed the lives of 34 miners last week. Vishwas Satgar, of the Democratic Left Front, said that at a meeting held at the University of Johannesburg on Wednesday there "had been deep scepticism about the government's proposed inquiry".

20 August 2012 Business Report Page 1 Wiseman Khuzwayo

Politics blamed for Lonmin tragedy

Politicising labour unions was a major factor leading to the massacre of striking mineworkers at Lonmins Marikana platinum mine last week, Andrew Levy, a labour analyst at Andrew Levy Employment, said on Friday. He said that violence during strikes had been on the rise since 2005, citing the public service and security workers strikes of 2010 and the metal and engineering strike last year. Sooner or later, it had to come to this [Marikana]. Something should have been done by the government long ago about the violent strikes, Levy said. Rivalry between the National Union of Mineworkers (NUM) and the Association of Mineworkers and Construction Union (Amcu) is said to have led to the tragic strike, although both unions have denied this.

Opinion has been expressed about Lonmin providing recognition to both unions to minimise tensions. Levy said there was nothing to stop a company from having a recognition agreement with more than one union. But it will lead to great damage if the majority union says it will not deal with the other union. The recognition agreement cannot be changed then, he said. Gillian Findlay, a spokeswoman for Lonmin, said that Amcu had been given partial recognition by the company earlier this year. On Friday, FransBaleni, the general secretary of the NUM, said: We have warned the company that there are underlying social factors behind the strike, like wages and housing. People are living in informal settlements in abject poverty. The unprotected strike at Marikana had all the hallmarks of the five-week strike at Impala Platinum, in Rustenburg, which took place earlier this year. It was caused by the rivalry between the NUM and Amcu. Eric Gcilitshana, a negotiator for the NUM at Lonmin, said a union had to have 50 percent plus one representation at the workplace to be recognised. He said the NUM had 55 percent membership at Lonmin, or 16 000 members. Amcu had 35 percent. However, on Friday Joseph Mathunjwa, the president of Amcu, said the union was recognised at Lonmin, with 7 000 members. It has about 30 000 members nationally, mostly at the listed companys Karee mine. Baleni said: The partial recognition of Amcu means it can represent its members in disputes, has access to office space in order to recruit and can have its subscriptions deducted from its members payroll. We are happy with that. But when it comes to bargaining rights, we will not break the rule. The striking miners were demanding a wage increase from R4 000 a month to R12 500 a month. Lonmin said it was not prepared to renegotiate its two-year wage agreement with the NUM, which came into effect last October. Gcilitshana said that under the agreement miners, artisans and rock drillers would get an increase of 9 percent each year, and foremen and shift supervisors 8 percent.

20 August 2012 Business Day Page 4 Carol Paton

Marikana shows dangers of populist leaders

Joseph Mathunjwa, leader of the Association of Mining and Construction Union, and Julius Malema, the expelled leader of the African National Congress Youth League, have several things in common.

Like Mr Malema, Mr Mathunjwa was expelled from the National Union of Mineworkers (NUM) in 1998. Both Mr Mathunjwa and Mr Malema were removed from powerful organisations with strong traditions and procedures that had been established over decades. Both were divisive and pushed the limits until the cost to the organisation became too great and they were forced out. Most significantly, both are populist and opportunistic leaders who use demagogic forms of mobilisation to build support behind goals they know are not realisable. There is much to learn from the tragedy at Marikana. For the industry it has brought home the anger and frustration that mining communities have towards it and the urgent need to find ways to spread the benefits of mining. To express concerns over the damage to the "image" of the industry, about which mining bosses and the government are now fretting, is to miss the point. Ways must be found to give communities a vested interest in the success of the mining enterprise. For the NUM and other Congress of South African Trade Unions affiliates, the lesson must be that the social distance that has developed even between the NUM shaft stewards and firstlevel leadership with ordinary workers is not tenable. Here the NUM is in a difficult position: its shaft and branch-level leadership naturally tends to be the more accomplished of the workforce. As they advance in skill levels due to union work, they are more easily identified for promotion. And along with union positions come privileges and influence, such as cars, time off and kickbacks from service providers. Many NUM firstlevel leaders are no longer underground workers. Although the union does not pay them, they have negotiated "salaries" and cars from service providers keen to gain access to their influence over members. The unions role, once wage negotiations are complete, is to transmit the decision to the rest of the workforce. In an environment where there is anger over income inequality, these are usually not popular decisions to convey and the NUM has unwittingly become part of the establishment. The result is that ordinary workers believe "the NUM leaders negotiate for themselves, only". For the rest of SA, the lesson from Marikana is one of the real and present danger of populist leadership, which is finding fertile ground in workplaces and in communities, easily wound up to protest against "poor service delivery" often at the behest of individuals with their own motives. Income inequality and the sense of injustice is at the root of the problem. Add to this the opportunism of Mr Malema, Mr Mathunjwa and others fighting for their fiefdoms and it is little wonder the country is burning.

20 August 2012 Business Day Page 4 Carol Paton

Marikana shows dangers of populist leaders

Joseph Mathunjwa, leader of the Association of Mining and Construction Union, and Julius Malema, the expelled leader of the African National Congress Youth League, have several things in common. Like Mr Malema, Mr Mathunjwa was expelled from the National Union of Mineworkers (NUM) in 1998. Both Mr Mathunjwa and Mr Malema were removed from powerful organisations with strong traditions and procedures that had been established over decades. Both were divisive and pushed the limits until the cost to the organisation became too great and they were forced out. Most significantly, both are populist and opportunistic leaders who use demagogic forms of mobilisation to build support behind goals they know are not realisable.

There is much to learn from the tragedy at Marikana. For the industry it has brought home the anger and frustration that mining communities have towards it and the urgent need to find ways to spread the benefits of mining. To express concerns over the damage to the "image" of the industry, about which mining bosses and the government are now fretting, is to miss the point. Ways must be found to give communities a vested interest in the success of the mining enterprise. For the NUM and other Congress of South African Trade Unions affiliates, the lesson must be that the social distance that has developed even between the NUM shaft stewards and firstlevel leadership with ordinary workers is not tenable. Here the NUM is in a difficult position: its shaft and branch-level leadership naturally tends to be the more accomplished of the workforce. As they advance in skill levels due to union work, they are more easily identified for promotion. And along with union positions come privileges and influence, such as cars, time off and kickbacks from service providers. Many NUM firstlevel leaders are no longer underground workers. Although the union does not pay them, they have negotiated "salaries" and cars from service providers keen to gain access to their influence over members. The unions role, once wage negotiations are complete, is to transmit the decision to the rest of the workforce. In an environment where there is anger over income inequality, these are usually not popular decisions to convey and the NUM has unwittingly become part of the establishment. The result is that ordinary workers believe "the NUM leaders negotiate for themselves, only". For the rest of SA, the lesson from Marikana is one of the real and present danger of populist leadership, which is finding fertile ground in workplaces and in communities, easily wound up to protest against "poor service delivery" often at the behest of individuals with their own motives. Income inequality and the sense of injustice is at the root of the problem. Add to this the opportunism of Mr Malema, Mr Mathunjwa and others fighting for their fiefdoms and it is little wonder the country is burning. 20 August 2012 Business Day Page 4 Wyndham Hartley

Marikana deaths raise questions over police conduct

The killing of 34 miners and wounding of 78 others at Lonmins Marikana mine raises two critical questions: were the police justified in opening fire, and were they adequately prepared for a public-order policing situation of such intensity? A study of TV footage shows that the striking miners were armed with sticks and machetes and were approaching the police skirmish line. It also shows that the police were very nervous. Further, it shows that much of the shooting was done with assault rifles firing into the crowd on automatic fire. The law on the use of lethal force, either by the police or civilians, is contained in the controversial section 49 of the Criminal Procedure Act. While Parliament is about to replace the section with an amended one, both the existing one and the new one make it clear when firearms may be used.

It states that lethal force may be used by police in defence of their lives or in defence of other lives that are under threat. The new section 49 also provides that a fleeing suspect may be shot if it is reasonably believed he or she will continue to commit violent crimes. The crucial question is, would the lives of the police been at risk if they had allowed the advancing miners to get any closer? The police would have kept in mind that two of their members were brutally killed by the miners earlier in the week. It has been suggested by some that the miners used the firearms taken from the murdered policemen to open fire before the police started firing. Certainly, national police commissioner Riah Phiyega believes the shooting was justified under the self-defence provisions of section 49 and that police lives were definitely at risk. Democratic Alliance police spokeswoman Dianne Kohler Barnard says the judicial commission of inquiry should probe these issues, among others. "The inquiry should look into the following issues: who authorised the use of live ammunition at the mine? Who was in command of the various police units at the mine? Who issued the order to fire? Who was responsible for planning the operation? On what intelligence was the planning conducted?" she said. Ms Kohler Barnard noted: "In August 2011, (police) minister (Nathi) Mthethwa approved a policy to better manage public protests. The policy called for the establishment of national public-order policing units, which had been disbanded in 2006. One of the key principles of the policy was that members of these units would have to go through specialised training courses on how to manage public protests. It also highlighted the need for a strong line of command and control to ensure that all members involved in policing protest action know which role to play. The protest at Lonmin has shown the failure by the top management of the SAPS to implement this policy effectively." This view was shared by the University of Johannesburgs Steven Friedman, who is reported as saying: "Im not blaming the police ... [but] our police are not being trained to deal with this violent situation. It is not a question of being tougher. The police are not adequately trained. If you put guns and bullets in the hands of these people, who are not trained properly, you have a problem." Clearly a top-level inquiry, preferably by a judge, is the way to proceed in getting answers to both questions.

20 August 2012 Business Day Page 1 Monde Maoto

Bid to limit strikes in aftermath of Marikana

THE government and the mining industry have taken the first steps to limit illegal strike action in the platinum sector and to refine wage negotiating processes, both seen to be key factors behind the violence at Lonmin last week. Meanwhile, the stage is set for possibly more drama today at Lonmins troubled Marikana mine where up to 3,000 striking workers have until close of business to abandon their wage strike and return to work.

At a marathon meeting in Johannesburg on Saturday, Mineral Resources Minister Susan Shabangu oversaw the setting up of a task team, consisting of the Chamber of Mines, government and labour, to look into the possibility of forming a central bargaining council for the platinum industry. The lack of central bargaining in the industry is regarded as a source of tension between mining companies and unions and between unions themselves. Rivalry between the National Union of Mineworkers (NUM) and the Association of Mineworkers and Construction Union (Amcu) at mines owned by Impala Platinum and Lonmin has led to violence in the past seven months and was identified as an underlying cause of the attacks that led to the deaths of 10 people at Lonmin near Rustenburg before Thursdays shootings. While this attempt to resolve the crisis has been welcomed by the NUM, Amcu was conspicuous by its absence from the 10-hour "stakeholder" meeting that was also attended by the Solidarity and Uasa unions. Labour Minister Mildred Oliphant was present too. Ms Shabangu said Amcu had not been invited, but she denied the government was being partisan by excluding it. "We hear about Amcu through the newspapers, we have never engaged with Amcu it was never our intention to marginalise them," Ms Shabangu said. "We thought that through this forum the companies will engage with Amcu, and we will include the union in the discussion process." Amcu secretary-general Jeff Mphahlele told Business Day while the union was "disappointed" at being excluded from Saturdays meeting, it was "willing to participate". Amcu president Joseph Mathunjwa said in order for the union to take part in the process that began on Saturday it would have to "understand the objectives of the meeting and the reasons why it was excluded given the vicious allegations that were levelled against us". "I think its just a smokescreen," he said. The Department of Mineral Resources has mandated the mining industry growth and development task team (Midgett ), and the new team, which is yet to be named, to look into labour-related issues in platinum mining. Midgett was tasked in June to look into interventions to assist the platinum industry, which is weighed down by weak global demand for platinum group metals, and rising operating costs. The NUM, which recently lambasted "unilateral" pay agreements offered by mining companies to selective employees, welcomed the formation of the task team. The NUM has been pushing for central bargaining in platinum for some time. "We agreed that the Midgett group will ensure that a task team is formed. That task team should feed, of course, into the work of the commission," NUM president SenzeniZokwana said. Mark Cutifani, vice-president of the Chamber of Mines and CEO of AngloGold Ashanti, said the resolutions adopted at the meeting were "a step in the right direction for the industry". Lonmins chief financial officer Simon Scott said the company would not be able to recover the 15,000oz in production lost since the strike began last Friday. In a separate statement, Mr Scott defended the companys efforts to build "effective labour relations", but admitted that those efforts had been dealt a blow by Thursdays shootings.

The company has set up a fund to pay for the education of children whose fathers had died in the violence. A Lonmin media relations officer who declined to be named denied a report in the Sunday Times of London that the company was mulling a $1bn rights issue to recapitalise the Marikana mine. The Lonmin workers who are still on strike at the mine, most of them rock drill operators, face being dismissed if they do not return to work by the end of today. Lonmin had placed Marikana under maintenance during the week of the strike. Bernard Mokwena, vice-president for human capital and external affairs, said there were signs that drill operators not part of the strike were starting to return to work at Eastern Platinum, one of the three shafts at Marikana. He urged the drill operators still on strike to return to work. Mr Mokwena said "the company will assess the situation by the close of business today, to decide on what steps to take". Some workers appeared resolute in their wage demands and are reported to have described the return to work order as "an insult" to their colleagues who were gunned down after police failed to disperse strikers on Thursday. "Expecting us to go back is like an insult. Many of our friends and colleagues are dead, then they expect us to resume work. Never," said worker Zachariah Mbewu. "Some are in prison and hospitals. Tomorrow we are going back to the mountain (protest site), not underground, unless management gives us what we want." Others said they were not sure what to do about the ultimatum. "Because we work as a majority, if the majority goes back to work tomorrow Im going too," said miner Vuyisile Mchiza. The miners downed tools demanding that their salaries be raised from R4,000 to R12,500. An initial ultimatum was issued last Monday, with the deadline set for Friday. It was extended after the shootings. Last year, after a similar dispute over labour representation stopped work at its nearby Karee mine, Lonmin fired all 9,000 workers. Then it asked them to reapply for their jobs and most were rehired. Lonmin employs a total of 35,000 people at its operations in SA. Hundreds of strikers turned out at a rally near the mine on Saturday to see former African National Congress Youth League leader Julius Malema. The expelled youth leader used his visit to the area to call for the resignation of President Jacob Zuma and Police Minister Nathi Mthethwa. 20 August 2012 Business Day Page 1 Natasha Marrian

Zuma calls week of mourning, sends top Cabinet team to help bereaved
PRESIDENT Jacob Zuma has declared a week of mourning for the 44 people killed at Lonmins Marikana operations in North West last week, and appointed a high-level ministerial

committee to visit the area today to help families of the victims, the Presidency said yesterday. Last Thursdays shootings marked the bloodiest clash between police and protesters in postapartheid SA and made headlines across the world. The strike, which began the previous Friday, saw 10 people, including two policemen and two security guards, slain before the standoff on Thursday, which left 34 mineworkers dead and 78 others injured. Mr Zuma cut short his trip to Mozambique, where he was meeting South African Development Community heads of state, to return home and visit the injured. He has ordered South African flags to be flown at half-mast from today until Sunday. Memorial services would be held on Thursday. The high-level committee comprises 10 Cabinet ministers, led by Minister in the Presidency Collins Chabane. All 10 ministers and North West Premier Thandi Modise will descend on the area today, starting their visit with a 9am meeting in Rustenburg. The last time a ministerial committee of this magnitude was appointed was to deal with the xenophobic violence that rocked SA in 2008. It would be tasked with "providing more immediate support" to the relatives of those killed, the Presidency said. Apart from Mr Chabane, the committee includes Police Minister Nathi Mthethwa, Labour Minister Mildred Oliphant, Health Minister Aaron Motsoaledi, Mining Minister Susan Shabangu, Social Development Minister Bathabile Dlamini, State Security Minister Siyabonga Cwele, Co-operative Governance and Traditional Affairs Minister Richard Baloyi, Defence and Military Veterans Minister Nosiviwe Mapisa-Nqakula, and Home Affairs Minister Nkosazana Dlamini-Zuma. Presidential spokesman Mac Maharaj said there were reports that families with loved ones working at Marikana were struggling to obtain information and the ministerial committee would assist in this regard. "They will co-ordinate and lead all support to families and relatives, including the identification of family members, counselling and burials," he said. The judicial commission of inquiry, announced by the president last week, would delve into the events that caused a labour dispute to "degenerate into violence", said Mr Maharaj. The terms of reference of the inquiry would be announced this week. The probe into the shootings was largely welcomed as parties to the incident continued apportioning blame among each other. The violence was reportedly fuelled by rivalry between the National Union of Mineworkers and the Association of Mineworkers and Construction Union, which have blamed each other for the violence and intimidation at Lonmin. However, they have also pointed fingers at the mining company itself for failing to treat the labour dispute with the sensitivity it deserved. Expelled African National Congress (ANC) Youth League president Julius Malema visited the site of the shootings and addressed mineworkers on Saturday, calling for the resignation of Mr Zuma and Mr Mthethwa.

He said police were protecting the interests of ANC national executive committee member Cyril Ramaphosa by firing at the workers Mr Ramaphosa is a nonexecutive director of Lonmin. The former union boss could not be reached to respond to the criticism, but told the BBC it was not the right time to apportion blame and that Mr Malemas comments were "unfortunate". Mr Ramaphosas investment holding company, Shanduka, pledged to contribute R2m towards the burial of the 34 workers slain. News of reaction to the events at Marikana continued to trickle in yesterday as a list of the names of the deceased was posted on an information board outside the Lonmin mine hospital. The list also gave information about the hospitals to which the injured had been taken. National police spokesman Capt Dennis Adriao described the situation at Marikana as "stable but tense". He said police were maintaining a presence in the area, although there were no gatherings of workers by late yesterday afternoon. 19 August 2012 The Sunday Independent Page 13 Staff

SA reflects extreme form of inequality

The Grant Thornton survey released last week, reflecting global disquiet on executives packages at large public corporations, brings out in bold relief the debate around inequality across most countries, SA included. But does inequality as such matter? If, for instance, a society is experiencing a rising tide of economic growth which lifts all household boats even if its not at the same pace should the issue of inequality arise at all? We can put forward all kinds of arguments that inequality is morally bad. But is this enough? At a factual level, instructive research done by Richard Wilkinson and Kate Pickett in their book, The Spirit Level, establishes interesting correlations between levels of inequality and societal wellbeing. In a recent round-table discussion organised by the Mapungubwe Institute, Wilkinson elaborated on their findings that, for instance, in more unequal societies the rates of violent crime and teenage pregnancies are higher and that inversely educational performance and a countrys health profile are weaker. Such differences apply horizontally across all social groups among the rich and the poor alike. The authors tested all possible causalities and found no other that was common to these trends. This issue is coming to the fore against the backdrop of growing inequality across the globe. Economist Paul Krugman describes it in the New York Times magazine (October 2002) as follows:

When I was a teenager growing up on Long Island, one of my favourite excursions was a trip to see the great Gilded Age mansions of the North Shore. Those mansions werent just pieces of architectural history. They were monuments to a bygone social era, one in which the rich could afford the armies of servants needed to maintain a house the size of a European palace But then why werent executives paid lavishly 30 years ago? Again, its a matter of corporate culture. For a generation after World War II, fear of outrage kept executive salaries in check. Now the outrage is gone. That is, the explosion of executive pay represents a social change rather than the purely economic forces of supply and demand. Last year, a study by the Organisation for Economic Co-operation and Development (OECD) revealed that, between the mid-1980s and late 2000s, the household income of the top 10 percent of the population in developed countries increased much faster than those of the poorest 10 percent for instance, 3 percent per year for the poorest in Australia and 4.5 percent for the richest, 0.9 percent and 2.1 percent respectively in the UK, and 0.5 percent and 1.9 percent in the US. Almost everywhere, the trickle-up effect is much in evidence. The technical explanations put forward to try to explain this phenomenon, such as skills mobility, incentives theory and pro-aspiration rewards, only partly explain this trend. Indeed, when someone owns a number of mansions, an executive jet, yachts and even an island as real estate, what more incentives do they still need? Some argue that this is a reflection of the mine-is-bigger-than-yours syndrome, a status thing as executives compare their rewards and assets across the globe. Others believe the collapse of socialism in Eastern Europe combined with the weakness of the Left has deprived the world of a counter-balance to rapacious ostentation. Whatever the reason, the implications of growing inequality are dire for social cohesion within and across nations. This is worsened by the scandals in global financial institutions. As John Plender of the Financial Times (this month) puts it: It is hard for people to tolerate historically high levels of inequality in difficult times when they can no longer perceive any moral link between effort and reward at the top. If those at the top are also perceived to be devoid of moral principle in their pursuit of profit, the challenge is dangerously multiplied. What are the trends in SA and how does this relate to the ideal to create a developmental state? SA reflects extreme manifestations of inequality. At 0.68, our Gini coefficient as a measure of income inequality is said to be the second-highest in the world. Attached to this is the racial dimension and the rapid rise of new black middle and upper strata, either through or related to the state. Legitimate as the broad trend may be, this in turn poisons the body politic. In terms of SAs income dynamics in the past 18 years: l Between 1994 and 2004, inequality between the races declined as black people broke the apartheid glass ceiling. l Within the racial groups, especially among black people, inequality increased, as fewer people were climbing the social ladder.

l Once the base effects of the first decade of freedom had worn off, inequality between the races widened (between 2004 and 2008) as the rich were better able to take advantage of the benefits of high economic growth in that period. Will the building of a developmental state help us to deal with this challenge? The answer, from experience, is that this is not necessarily the case. High rates of economic growth even with high levels of employment do reduce absolute poverty, but they may not bring about greater equality. In most of East Asia, for instance, the logic of the developmental state model has in the main been one of trickle-down economics. In the earlier years this included sweatshops to absorb as many people as possible into the economy. In China about 200 million people have been taken out of poverty over the past 30 years. But from a very low level, the Gini coefficient has increased to 0.47 which is not much different from that of countries of the North. According to China Daily (May 2010), in 2007 the income of the top 10 percent of the richest Chinese was 23 times that of the bottom 10 percent, compared with 7.3 times about 10 years earlier in 1998. In other words, poverty was being reduced at the same time as inequality was increasing. This, the Chinese leaders themselves have noted, is inflammable material for social instability. And so, what should SA do to avoid the same consequences? There is no doubt, as the National Planning Commission and virtually everyone else has argued, that faster economic growth should be at the top of the agenda. Clearly, if those who currently have no income at all are absorbed into meaningful economic activity, this would at least reduce absolute poverty. However, to bring down relative poverty (inequality) requires an activist state as an instrument of redistribution. But, redistribution of what, and in what form? This raises a fundamental point that tends to be missed in the discourse on inequality: The Gini coefficient applies to income dynamics. Governments do provide a social wage which takes many forms beyond cash grants. It includes subsidised housing, free basic electricity and water, no-fee schools, and subsidised transport. SA does very well on these non-cash elements of the social wage. Some extrapolations for instance by Servaas van der Berg of Stellenbosch University intimate that this social wage or fiscal incidence can have the effect of reducing inequality by about 40 percent. Virtually none of the developmental states has had this magnitude of state intervention to assist the poor. In most of them, the cushion has been family plots of land. With regard to Brazil, for instance, the argument that it was able to reduce inequality over the past decade merely through the BolsaFamilia social grants system is essentially inaccurate. SA has a more extensive social wage system. What is ignored is the fact that one measure Brazil introduced, which should have had a bigger impact on inequality, is a minimum wage policy. The point however needs to be made that income and basic services cannot be counterposed as exclusive measures. Montek Ahluwalia, the deputy chairperson of the Indian Planning Commission, argues quite correctly that, even if income were to increase and services such as health and potable water remained poor, the income would essentially be discounted.

On the other hand, as we have learnt in SA, when services such as electricity or subsidised housing are provided and yet people are unemployed, they can only use the electricity for lighting because they cannot afford electrical appliances. Others even rent out or sell the subsidised housing and return to informal settlements. The challenge of inequality should therefore be addressed holistically. Among the interventions that would help in this regard, the following combined actions are critical: l The absorption of the unemployed, especially young people and women, into economic activity. l Provision of quality education as the great liberator which, along with skills development, has the greatest potential to break the cycle of generational reproduction of poverty. l Provision of quality public services with free or subsidised basic services for the poor. l Progressive taxation, appreciating that, for this to be legitimate as in Scandinavian countries, the higher the rates of taxation, the better should be the efficiency and ethical conduct of the state. l Mini- and macro-compacts on such issues as executive packages, wages (including a minimum wage), productivity and inflation. l Measures to address the spatial settlement patterns inherited from apartheid in relation to proximity to locations of economic activity. The National Planning Commission targets the reduction of SAs income inequality measured by the Gini coefficient from the current 0.68 to about 0.60 which would still be at the top end globally. From the scenario and projection work done, this is technically logical. But perhaps this is one issue around which society, both the rich and the poor, should protest: That the target is not ambitious enough because the nation is prepared to do more! nNetshitenzhe is the executive director of the Mapungubwe Institute. 21 August 2012 The Times Page 7 Graeme Hosken

Corrupt insiders big in rhino poaching

The increasingly sophisticated weapons and tactics that rhino poachers use suggest that they are getting help from corrupt wildlife officials, a report said. The South Africa-Vietnam Rhino Horn Trade Nexus report, released in Johannesburg yesterday, said these "developments" had identified a "new face" in poaching. "Rhinos are usually killed with AK-47 assault rifles but a growing number are killed with weapons characteristically used by wildlife industry professionals," read the report. The report was compiled by the UK-based wildlife trade monitoring NGO, Traffic.

"Such developments represent a 'new face' in poaching, underscoring the emergence of corrupt game industry insiders who become active players in the crisis with government officials turning a blind eye to 'pseudo-hunting'." The document added: "From 2003 there has been an increase in non-traditional hunters, especially Vietnamese, purposefully exploiting legislation loopholes to obtain hunting trophies." Vietnamese hunters account for 48% (185) of the 384 registered hunters paying $22-million to hunt rhino between 2009 and May. The abuse has become so bad that South Africa's hunting associations have warned their members to avoid Vietnamese clients, and the Environmental Affairs Department has suspended issuing hunting permits to Vietnamese. Traffic spokesman Richard Thomas said that, because Vietnam is a signatory to the Convention on International Trade in Endangered Species, it has an obligation to eliminate the trade in rhino horn. The report was compiled to help develop solutions to the scourge. South Africa is Vietnam's primary source of rhino horn, which is used to treat ailments such as cancer, high blood pressure and impotence. Traffic's programme officer, Jo Shaw, said that though the first signs of a rhino-poaching crisis were visible a decade ago, "few predicted the magnitude of the problem we face today". "The surging demand, high prices and little fear of capture have allowed criminals to create the 'perfect storm' for rhino poaching," he said. The report said the value of white rhino traded in South Africa was over R236-million. The number of white rhino auctioned and hunted for sport steadily increased by 1300 between 1995 and 2011. Between 1990 and 2005, an average of 14 rhino were poached every year. Last year, 448 rhino were killed by poachers. "The increase represents an unprecedented conservation crisis," said Shaw. 21 August 2012 The Times Page 4 Thando Mgaga

'Hit list' renews KZN fears

Political killings are continuing in KwaZulu- Natal despite the appointment of a crack police team to investigate them. ANC Umtshezi municipality ward councillor Jimmy Lembede was killed at his house and yesterday two councillors from the National Freedom Party (NFP) went into hiding after hearing that their names were on a hit list. A third NFP councillor, who claims that he too is on the hit list, is refusing to go into hiding.

Last week, Police Minister Nathi Mthethwa announced that two senior generals had been deployed to KwaZulu-Natal to curb the killings. At the time, Mthethwa said that the deployment of Major-General Vinesh Moonoo and MajorGeneral Chris Ngcobo would ensure that the investigating team "doesn't end up only apprehending people but secures convictions". Yesterday, Abaqulusi municipality councillors Nompumelelo Ndlela and Sakha Siyaya confirmed that they had been in hiding since hearing rumours of a plot to kill them. "I am in hiding and I have been since Thursday last week," said Ndlela. "I did attend a meeting in the municipality today [yesterday] but soon after I went back into hiding." BhekiDlamini, an official in the eDumbe municipality, said that he had heard that there were as many as 18 NFP councillors' names on the hit list. "What is disappointing is that the leadership is aware of the so-called hit list but they have not even contacted us to allay our fears or offer support," he said. Dlamini, a former member of the defence force, said that though the possibility that he was the target of assassins made him anxious, he would not run scared because he had a family to protect and support. The NFP has been the hardest hit by the spate political killings. Since its formation just before last year's local government elections, with members breaking away from the Inkatha Freedom Party, the NFP has lost 24 members through what appear to be politically motivated killings. The NFP's national organiser, BongaNzuza, yesterday said that the party's leadership was not aware of a plot to kill the three members. Mthethwa announced national intervention to stop the political killings a week ago. Mthethwa's spokes-man, Zweli Mnisi, yesterday said that one of the most pressing resolutions that emerged from the police minister's meeting with provincial commissioner Mmamonnye Ngobeni and political organisations in the province was that the police should keep the family members of the slain politicians aware of the progress of the investigations . He said the police believed that the politically motivated killings would be curtailed. THOSE KILLED SO FAR ANC councillor Magutshwa - 2008 IFP councillor Mduduzi Maphumulo - 2009 ANC member DaluvuyoHadebe - 2010 IFP councillor SibongiseniShange - 2010 ANC's Sthembele Dali - 2010 ANC member Khuzwayo - 2010 Former IFP councillor Duma, then a member of New Freedom Party - 2011 ANC's Wiseman Mshibe - 2011 NFP member Dube - 2011 IFP's Simon DingindawoShange - 2011 ANC's S'buSibiya - 2011 IFP's MthembeniMajola - 2010 NFP's Induna Titus Mthembu - 2011 ANC member Ngcobo - 2011 NFP member Michael MfaniseniMtshali - 2011

IFP's IndunaKhendeMagubane - 2011 ANC member VukaniZuma - 2011 IFP member JabulaniNgubane - 2012 ANC members SakhephiMthembu and MandlaShinga - 2012 ANC members WandileMkhize and NhlakaniphoShabane - 2012 NFP councillor Shelembe - 2012 NFP member Nhlebela - 2012 NFP's IndunaMpipizaNcube - 2012. NFP member MthunziGwala - 2012 NFP member Thamsanqa Richman Mnyango - 2012 ANC member Jimmy Lembede 2012 21 August 2012 The Times Page 5 TJ Strydom

Zuma to hit taxpayers with R517m upkeep bill

President Jacob Zuma is, not surprisingly, the highest- paid official in the government, costing taxpayers R200 a minute, according to a report released yesterday. And, adds, the report, the cost of protecting and transporting Zuma, in addition to paying his salary, perks and various household expenses, will add up to R517 -million once his five-year term as South Africa's president is complete. The cost of Zuma to the country was revealed in a report by senior DA analyst Gareth van Onselen. Van Onselen used the Ministerial Handbook and other sources to arrive at his estimates. Though Zuma's salary is known, many of his other costs have not been confirmed. Van Onselen said he erred on the side of caution before arriving at the figure of over R103million a year for Zuma's upkeep. "Most likely, the final and ultimately unknowable total will be far, far higher," he said, adding that his estimates do not include the cost of poor decisions or action perpetually delayed. Zuma is, in a sense, not as expensive as US president Barack Obama, who is estimated to cost his taxpayers about $1.5-billion (about R12.5-billion) a year. However, that figure for Obama includes White House operation costs and a massive staff necessary for official business. "Essentially I have focused on the president's running costs," said Van Onselen, noting that he did not include the official costs of The Presidency. Russia's president ( Dmitri Medvedev at the time of the research) cost $258-million and France's president (then Nicolas Sarkozy) $161-million, according to the Korrespondent, a Ukrainian magazine, last year. Though these price tags are higher than Zuma's, they include far more than just living costs. And, given the global financial crisis, there are indications that many of Zuma's counterparts have started cutting back. The president of France, Francois Hollande, has lowered his salary by 30%.

According to the website www.therichest.org, Zuma was the 11th best-paid head of state last year. His French counterpart was number five. "Zuma's flights and the Spousal Support Unit are both excessive and difficult to justify," said Van Onselen. "David Cameron flies British Airways. "President Zuma can also use a national carrier, if not for all flights, then for the majority. It is reasonable for the public to support a first lady [but] unreasonable to support more than one." Zuma's expense account is almost 40 times his annual salary. A separate report revealed yesterday that public sector employees are only about a fifth as productive as those in the private sector. But, according to Prophet Analytics' quarterly Labour Market Navigator, even the private sector performs badly by international standards, with only 65 JSE-listed companies achieving labour productivity that exceeds employee costs. ZUMA'S ANNUAL BALANCE SHEET Annual Salary: R2275802 to R2753 689 Medical aid: At least R1.3-million Pension payout on retirement: About R2 753 689 Spousal support: At least R15 517 500 a year Private vehicle: calculated at 70% of salary - R1 835 792, for two vehicles Flights - VIP Squadron: An approximate average of: R46838476 Flights - additional: R6 331 175 plus additional cost of two planes Flights - VIP Protection Services: Unknown Flights - helicopters: At least R14.4-million Overseas allowances - president: An average of R25 400 a year Overseas allowances - first ladies: Unknown Accommodation - hotels: An average of R420000 a year Accommodation - official Residences: An average of R5.3-million a year Accommodation - private residences: R6.4-million VIP protection - An average of at least R12-million a year Legal costs: Unknown Average annual total: R103 544 233 Approximate five-year total: R517 721 164 R200 A MINUTE ADDS UP Five years One year One month One week One day One hour One minute R517721164 R103554233 R8 626 686 R1 991 235 R284 462 R11 852 R198

20 August 2012 The New Age Sapa and TNA Reporter

COSATU hits back at Malema

Allegations by expelled ANC Youth League president Julius Malema that the NUM was not representing the interests of workers were "scandalous", Cosatu said on Monday.

"This is a scandalous insult to the mighty union which for decades has been fearless and unflinching in its defence of the most exploited section of the South African working class," Congress of SA Trade Unions spokesman Patrick Craven. The National Union of Mineworkers (NUM) is a Cosatu affiliate. On Saturday, Malema visited Marikana, where police shot dead 34 striking miners last week. He called on mineworkers to form a militant union that would represent their interests. He said the union no longer represented the interests of the workers, but was interested only in making more money. Craven said: "The federation deplores Malema's blatant opportunism in seeking to exploit the understandable concerns of the Marikana workers to score cheap political points." The shooting on Thursday followed a week of violent protests which were believed to be linked to rivalry between the NUM and the Association of Mineworkers and Construction Union (Amcu) over recognition agreements at the mine. Workers also wanted higher pay. On Friday, Amcupresident Joseph Mathunjwa denied there was union rivalry, and said the NUM had "internal issues" which had nothing to do with Amcu. He said Amcu had no affiliations with political organisations inside or outside South Africa. The union was also not supported or funded by Malema, as had been rumoured. "The allegations are baseless and unfounded. We have no political relationship with any political movement inside this country or outside," Mathunjwa said. Political analyst Prof Steven Friedman told The New Age that tragic things happened in other democratic countries and South Africa was not the only nation to have experienced killings of that nature. He said the incident presented South Africa with a golden opportunity to open up debates on several things plaguing the country, such as the functions of trade unions. 21 August 2012 The New Age Warren Mabona

Grow cross-border trade DA

The DA yesterday called on the business community to stretch its trade beyond the South African borders in order to improve economic ties between the country and the global village. Tim Harris, DA shadow minister of finance, warned that South Africa was at risk of becoming a bystander to an economic boom on the African continent. He said inefficient regulations and an unfocused trade strategy were some of the aspects that undermined opportunities for job creation and alleviation of poverty in the country. Today we are presenting the DAs plans to open South Africa for business. This plan focuses on improving economic ties with Africa and the whole world, removing the physical and bureaucratic barriers that inhibit cross-border trade, Harris said. Right now, instead of being buoyed by African growth, South Africas economic growth is being dragged down by the recession in Europe. Its time to diversify our internal trade. Our economy is always subjected to a seismic shock of the proportions of the Marikana mine massacre. Since Tuesday last week, we have seen a dip in the JSE all-share index, a weakening in the rand and a spike in reports on the perceived political risks related to investment in South Africa.

Harris said the DA had come up with what he called a turnaround strategy to enhance South Africas trade position. He said in order to enhance trade, the DA government would, among other things, introduce one-stop border posts to expedite border crossing and reduce administrative burdens and costs and expedite the customs clearance process by introducing an electronic data interchange system. According to Harris, the DA examined ways of breaking down the barriers that prevented people from accessing economic opportunities. He said enhancing youth employment, creating an enabling environment for entrepreneurs and improving quality in the education system were some of the mechanisms they identified in the process. Meanwhile DA national spokesperson Mmusi Maimane blamed the quality of the South African leadership for the Lonmin mine bloodbath that claimed 44 lives last week. Maimane said South Africa needed a decisive leadership that would be able to take the country forward. The Marikana mine wage crisis has been around for a week but President Jacob Zuma only showed up after the second killings of protesters. His absence was an indication of a bad leadership, Maimane said. 21 August 2012 The New Age Siyabonga Mkhwanazi

Malema slammed for being opportunistic

ANC Western Cape provincial chairperson Marius Fransman has come down hard on former ANC Youth League leader Julius Malema for using war talk during his visit to the Lonmin mine in Marikana, Rustenburg, following the killing of 34 mineworkers last week. Fransman said yesterday Malema had no basis to visit the area so soon after the tragedy and his visit there sparked controversy as he attacked President Jacob Zuma for the violence and used war talk. Malema had called for the resignation of Zuma and Police Minister Nathi Mthethwa and blamed mine bosses for what happened at the mine in Marikana. Fransman, who is also the Deputy Minister of International Relations, said Malema should have stayed away from the area. He said the axed youth league should have been sensitive to the victims of the shooting and their families. Fransman said that the former ANCYL leader should not have used the grief of mineworkers to exploit his personal interests. He said that Malema was being opportunistic in his decision to visit the mine so soon after the tragedy befell the miners. He called on mineworkers to reject Malemas war talk and focus on their daily business. The incident has prompted Zuma to institute a judicial commission of inquiry to look at what happened when police officers opened fire on the mineworkers, most of whom were armed with weapons and guns.

Zuma was this week expected to announce the members of the commission of inquiry into the incident. He is also expected to announce the powers and terms of reference of the inquiry and also the date for the completion of the work of the commission. A senior judge is most likely to be appointed to head the commission. 21 August 2012 Business day Page 3 Sam Mkokeli

Ramaphosa in the Marikana crossfire

Businessman Cyril Ramaphosa once a popular trade unionist has been caught up in the political crossfire following the Marikana massacre last week. Considered one of SAs most respected leaders, Mr Ramaphosa has now been lumped with union bosses and owners criticised for their poor response to the labour unrest at the platinum mine that turned deadly, with 34 people killed almost instantly. The interpretation of the incident could see Mr Ramaphosas political image that of a credible former workers leader tarnished, as he now seems more at home among the "haves", and insensitive to the plight of the poor. His company, Shanduka, is an empowerment partner of mining group Lonmin. Shanduka announced on Saturday that it would contribute R2m towards the burial of the 34 men who were killed. "It is critical that all parties take meaningful steps to ensure that nothing of this nature ever happens again. For this reason, Shanduka Group supports a full and thorough investigation into the circumstances that gave rise to this incident," the company said. But that was not before Julius Malema, former leader of the African National Congress (ANC) Youth League, laid the blame squarely at Mr Ramaphosas door. Mr Malema said at the weekend that the Ramaphosa factor was the reason the police sided with big business in this deadly incident. "Lonmin had a high political connection. That is why our people were killed. They were killed to protect the shares of Cyril Ramaphosa," he said. Mr Malema also raised as an "irony" that Mr Ramaphosa could afford an R18m buffalo but could not pay the R12,500 wages demanded by the striking workers. Mr Malema has clearly been playing to the gallery, but his sentiments usually strike a chord among the poor and voiceless people he speaks to. The Lonmin incident described by many as a massacre will not endear Mr Ramaphosa to the poor. The incident also puts him on the side of the rich and politically powerful and too far from the struggling miners he once led as general secretary of the National Union of Mineworkers (NUM). However, if his image indeed suffers, Mr Ramaphosa will not be the only politician to pay a price. The incident has again exposed the gap between the poor and those who claim to speak for them.

This is an area that concerns some ANC leaders, as the gap between its official representatives in government and the communities they lead widens. The ANC has historically relied on its alliance with the South African Communist Party (SACP) and allied unions, as these groups were the official voice of the working class. But this gets complicated as leaders of the NUM, the biggest ANC-associated union, have been accused of spending their efforts on issues other than the primary interests of the miners. Due to the distance between the NUM and the miners underground, those who would usually back the ANC now find themselves attracted to leaders of the Association of Mineworkers and Construction Union, which broke away from the NUM. The Lonmin saga has now lumped the ANC, the unions and party heavyweights such as Mr Ramaphosa on the side of the "establishment". With his wealth and elite business association, Mr Ramaphosa will no longer be regarded as a man of the people. In the buildup to the ANCs elections in Mangaung, Mr Ramaphosa is being courted by those campaigning for President Jacob Zumas re-election to stand as his deputy. However, there is no sign yet that Mr Ramaphosa is readying himself for senior leadership, or whether he will throw in his lot with the Zuma camp. But the moment he raises his hand, the Lonmin saga, as an expression of distance between the elite and the poor, will most likely be put forward by the populists who want Mr Zumas term to end as one of the reasons he should not lead the ANC. 21 August 2012 Business day Page 3 Trevor Neethling

Where were SAs spy services when the Marikana shooting began?
Uncertainty in SAs intelligence services has been cited among the reasons why the police were unable to anticipate the threat from protesters at LonminsMarikana mine in Rustenburg, 34 of whom were shot dead. The State Security Agency (SSA) continues to operate with its top three positions vacant following the resignation of its top executives, allegedly in protest over political interference. In addition, police crime intelligence has no substantive head after the North Gauteng High Court interdicted Richard Mdluli from performing any duties pending the review of a decision to withdraw criminal charges against him. Policing expert Dr Johan Burger of the Institute of Security Studies said yesterday this "chaos" within the intelligence services had failed to establish the severity of the Lonmin threat. "My view is that the state intelligence was unable to be very helpful, partly due to the mess that the intelligence services are in." Due to all the suspensions and resignations, "probably crime intelligence was not able to play the role it should have", he said. Dr Burger also said that, just as with the 2008 xenophobic violence in which more than 60 foreign nationals were killed, the intelligence authorities were caught completely off guard at Lonmin. The SSA has existed in its current form since its creation in 2009, when the intelligence services were restructured under current minister SiyabongaCwele to incorporate the National Intelligence Agency (NIA), the South African Secret Service and the South African National

Academy of Intelligence. The NIA and Secret Service each have their own heads and report to a director-general. President Jacob Zuma, who is responsible for making senior government appointments, has not indicated why the intelligence service positions have yet to be filled. His office did not respond to questions sent by Business Day last week. Secret Service head Mo Shaik, State Security director-general Jeff Maqetuka and NIA head Gibson Njenje quit within months of each other between September last year and March this year. The trio had clashed with Mr Cwele, allegedly over a request to place several senior ANC leaders under surveillance. But the SSA still cannot say when the posts will be filled or what the reasons for the delays are. "The vacant posts are filled in an acting capacity in order to ensure continued service and the minister is attending to the matter accordingly," Mr Cweles spokesman, Brian Dube, said last week. The chairman of Parliaments joint standing committee on intelligence, Cecil Burgess, said it was "unaware of abuses that were politically motivated". He said "careful consideration is necessary in this process for security reasons" and that the parliamentary committee was monitoring the performance of the SSA. Dennis Dlomo, believed to be a close friend of Mr Cweles, is acting director-general of the SSA Strategic security expert Prof Mike Hough said while there was nothing unusual about government departments delaying the appointments of senior staff, this was a sensitive case because it dealt with state security. However, Prof Hough said not much could be read into the delays for now as the ministrys restructuring, currently under way, and the passing of the Protection of State Information Bill were considered greater priorities. Democratic Alliance safety and security spokesman David Maynier said the delays in filling the posts were a concern. The fact that there was no permanent appointment meant there was a strong chance that no proper controls were in place and the ministry could then be abused for political reasons. 21 August 2012 Business Report Page 1 Ethel Hazelhurst

Marikana violence places SAs credit rating in peril

Last weeks deadly clashes between workers and police at Lonmins Marikana mine and the unresolved stand-off between the striking workers and mine management could place South Africas sovereign rating in jeopardy. A spillover from the crisis has also been spiralling borrowing costs for corporates, according to Bloomberg, which said borrowing costs were climbing on concern that the deadliest mine violence since the end of apartheid will deter investors just as some mining companies prepare to sell bonds. Credit ratings determine the interest rate countries pay on their debt. The lower the rating, the higher the interest bill, which is ultimately met by the taxpayers.

Konrad Reuss, the managing director of rating agency Standard and Poors (S&P) in South Africa, said the events certainly add to the concerns we already expressed in our negative ratings outlook on South Africa. This followed the deaths of 44 people at the platinum mine in the North West over the past two weeks. S&P was one of three ratings agencies to change the outlook on the countrys sovereign credit rating from stable to negative over the past 10 months which implies the next move will be down. In March, S&P cited persistent economic and social problems as one of the reasons for the change. Yesterday, Reuss said: The events are of concern because of the negative impact on South Africa as a market and investment destination. Moodys Investors Service, which currently has the country on A3, refused to comment. Moodys changed the sovereign outlook to negative in November last year. Fitch followed in January, noting limited progress on some long-standing structural issues. It currently has the country on a BBB+ rating. No one at Fitch was available for comment yesterday. In May, Moodys lead South Africa analyst Kristin Lindow said the rating agency did not undertake sovereign reviews routinely, but reacted to developments. The Marikana tragedy is one of a series of developments that have detracted from South Africas credit standing. Meanwhile, the future of the Gauteng tolling project of the SA National Roads Agency (Sanral) is still in limbo. The Constitutional Court reserved judgment last week on an application by Sanral and the Treasury to overturn the Gauteng High Courts decision to put the project on hold. The Treasury noted delays in implementing tolling had cost about R2.7 billion. To help cover the costs, the cabinet earlier this month approved a bill proposing an appropriation to Sanral. This followed a R5.75bn subsidy announced in the governments February Budget, a sum allocated out of the 2011/12 expenditure. Demands on the Treasury, the controversy over the project and the postponement in April, which threatened the viability of the toll roads, put the country in a vulnerable position. Moodys subsequently cut Sanrals status from Baa1 to Baa2 after revising it down from A3 at the end of February. Moodys analysts also warned in May that any final pronouncement against Gauteng Freeway Improvement Project e-tolls would have severe credit-negative repercussions for the road agency and exert further negative pressure on the finances of the government, which is Sanrals only shareholder and guarantor of a large chunk of its debt. More importantly, the events highlighted policy inconsistency, a huge turnoff for investors. Underlying these issues is rating agencies concerns that the government will not be able to meet its commitment to reduce the budget deficit the gap between revenue and expenditure to 3 percent of gross domestic product by 2014/15. On the costs of borrowing, Bloomberg said the premium investors demand to hold South African dollar bonds instead of US treasuries rose nine basis points on Friday to 174 basis points, the biggest jump among emerging markets as measured by JPMorgan Chase. The cost of protecting the debt against non-payment using credit default swaps increased to the highest since July 25, signalling a deterioration in risk perception, according to data. The government is expected to comment on the implications of the Marikana problems after a cabinet meeting tomorrow.

22 August 2012 Business Day Page 1 Carol Paton and Allan Seccombe

Mine pay revolt spreads in aftermath of Marikana

Rock drill operators and other workers of at least two other North West platinum mining operations have made similar wage demands to those of strikers at Lonmins Marikana mine raising fears that the instability could spread. At Anglo American Platinums (Amplats) Thembelani mine near Rustenburg, workers have given management until Friday to respond to their demands. At Royal Bafokengs BRPM mine, drillers are demanding R12,500 a month the same as Lonmins strikers. Amplats spokeswoman Mpumi Sithole said yesterday the demands were presented after a march last week by the workers, and not union representatives. Steve Phiri, CE of Royal Bafokeng Platinum, said that rock drillers had made similar demands a week ago, through the National Union of Mineworkers. The company had not entertained discussions on the wage demand as it had a collective agreement, signed in June last year. "There are indications (rebel union) Amcu might want to organise at our operations, which management is not against provided it is done by the rules and with the utmost discipline," Mr Phiri said. Royal Bafokeng was concerned about a "possible spillover" from Lonmin to its operations, he said. Lonmin said in a statement yesterday it was in danger of breaching debt covenants with its lenders. "Whilst there is still some time before the covenant compliance is tested, the company now considers that the balance of probabilities is that the impact on production of the current events will result in covenants being breached at the next test date on September 30. "Consequently, constructive discussions are now taking place with Lonmins banking group to address this potential situation." Lonmin reported 33% attendance yesterday at its platinum mines near Brits as most workers ignored requests from the company and unions to return to work. It said it would not pursue disciplinary action against workers not returning to work this week, which the government has declared to be one of mourning. 22 August 2012 Business Day Page 3 Wyndham Hartley

Marikana accusations fly in Parliament

Despite a sombre beginning, the debate on Marikana in the National Assembly yesterday deteriorated into charges by the opposition that the shootings had been entirely avoidable

had there been effective leadership, while the government insisted that police had no option but to open fire. Speakers said that in most democratic countries, an incident of such magnitude would have resulted in at least the resignation of the responsible ministers, if not the fall of the government. Calls were made for the main role players in the disaster to tender their resignations. Ironically, the African National Congress (ANC) rolled out Mining Minister Susan Shabangu who made headlines as deputy safety and security minister in 2008 for urging police to "shoot to kill" to speak in the debate. Tough questions were asked about the chain of command that resulted in police using automatic weapons and live ammunition, and why the government and Lonmin were said to have colluded with the National Union of Mineworkers and did not include the emerging Association of Mineworkers and Construction Union (Amcu) in talks. Opening the debate, Police Minister Nathi Mthethwa said the police force had acted within its mandate. "The police, as part of our security services, are always and at all material times guided by the constitution of the republic." Democratic Alliance (DA) MP Wilmot James, who was accused by ANC chief whip Mathole Motshekga of abusing the situation for political gain, told the assembly that a visit to the wounded had shown that a number had been shot in the back. He demanded of Mr Mthethwa how this had happened. His view was shared by African Christian Democratic Party leader Kenneth Meshoe. DA parliamentary leader Lindiwe Mazibuko said the judicial inquiry promised by President Jacob Zuma should specifically establish who authorised the use of live ammunition on the striking workers, within the context of how the South African Police Service manage violent strikes. "Whoever authorised the use of live ammunition must be held accountable," she said. "The commission must also carefully examine the conduct and role of the minister of police, the Honourable Nathi Mthethwa. At what point did he intervene? In most democracies, a crisis of this magnitude would have immediately precipitated the resignation of the minister, and, in many cases, the fall of the government. The DA is concerned that no one in this government seems to be assuming political responsibility for the massacre. We need accountability now." Congress of the People (COPE) leader Mosiuoa Lekota said section 12 of the constitution guaranteed everyone freedom from all forms of violence from either public or private sources. "There is no death penalty. The question that therefore has to be asked is, was there a command given to the police to shoot a volley at the miners using live ammunition? If so, where did that order come from and what authority was used to sanction the use of deadly force? "COPE asks this question because it is clear that the police were armed with submachine guns when they should have been equipped with riot gear, water cannons, pepper spray and rubber bullets to quell serious disorder." He said another issue of enormous concern was the close political alliance of the ruling party with public service trade unions, such as the National Union of Mineworkers and the Police and Prisons Civil Rights Union. 21 August 2012 Business Day Page 1 Natasha Marrian

BEE too focused on shares and dividends, says Mantashe

Black economic empowerment (BEE) is too focused on shareholdings and dividends, which fails to create real transformation in the business sphere, African National Congress secretary-general Gwede Mantashe said on Tuesday. "I have a serious grievance with BEE focusing on shareholding.... You have no understanding of that sector (with simple shareholding)," he said at the University of Johannesburgs Soweto Campus. He was reacting to questions asked by the Black Business Council (BBC) at a dialogue session with editors, academics, business and members of civil society, on the outcome of the ANC policy conference held at the end of June. The BBC was recently embroiled in a war of words with the Passenger Rail Agency of South Africa after it criticised the parastatal over its handling of tenders for rolling stock valued at about R126bn. A question was raised about possible "set-asides" for empowerment companies in such deals by Black Business Council CE Xolani Qubeka at the dialogue on Tuesday. "There needs to be significant talk about set-asides to make sure blacks in the country are at the forefront of the South African economy," Mr Qubeka said. Mr Mantashe, in response, said he would have "qualms" with the concept of "set-asides" if it referred merely to dividends. BEE should also be about acquiring skills and learning about the operations of the company itself, he said. Set-asides would be welcomed if they meant partnering with large companies which, in turn, led to the creation of new companies that were black owned and run. He said Exxaro Resources CE Sipho Nkosi was an example of this, saying he was "not a big shareholder, but operational". Nor did he just provide window-dressing. "Operational exposure to me is more powerful than ownership and getting dividends," Mr Mantashe said. He said the strongest message coming from the partys last lekgotla was on tenders and procurement. This was in response to the BBCs questions about state procurement. Mr Mantashe said the ANC was open to discussion with the BBC and agreed that procurement processes had to change. He said it was untenable that when the government built primary schools, it spent R20m, but when a school was donated by a company, that company spent only between R5m and R10m. "Something is wrong in creating layers and layers of business." He said the state was aware it gave out tenders, and the quality of the service provided was not up to scratch, pointing to the fact that newly built bridges were already being eroded. "That debate we welcome with the BBC.... As we support black business, black business must bring a commitment of delivering cost-effective and quality services," he said. Mr Mantashe urged the BBC to set up a meeting with the party to discuss these matters. ANC national executive committee member Enoch Godongwana said black business should compile a document for its meeting with the ANC on how to address the issues that contribute to criticism of BEE.

22 August 2012 Business Day Page 3 Ernest Mabuza

JSC out to fill 13 vacancies amid growing criticism

The Judicial Service Commission (JSC) yesterday announced a short list of candidates to be interviewed for 13 posts at its sitting to be held in Cape Town from October 15. However, it had decided to defer the vacant post of deputy judge president of the North and South Gauteng High Court to next year. The deputy judge president of the Labour Court, Basheer Waglay, is the only candidate set to be interviewed for the post of Labour Court judge president, which became vacant when Dunstan Mlambo was appointed judge president of the North and South Gauteng High Courts with effect from November 1. Judge Isaac Madondo and Judge Achmat Jappie have been shortlisted for the post of deputy judge president of KwaZulu-Natal. This post was re-advertised in June after the commission said neither of the two candidates interviewed in April, Judge Fikile Mokgohloa and Judge Madondo, obtained the requisite majority. Eight candidates will be interviewed for four vacancies in the Western Cape High Court. Candidates include senior counsel Jeremy Gauntlett, Owen Rogers and former chairman of the Cape Bar Council Ashton Schippers. In April, the commission decided to continue to recommend candidates for appointment to the Western Cape High Court despite litigation with the Cape Bar Council. Criticism of the JSCs work reached a boiling point in April last year when the JSC recommended only one candidate for the Cape court, despite three vacancies and a number of suitable candidates. The council challenged the commission in court, saying the proceedings were invalid because the JSC was not properly constituted, and irrational as it had left vacancies open, despite qualified candidates. 22 August 2012 Business Day Page 4 Bekezela Phakathi

Education headed for new crisis, MPs warn

South Africas education system was headed for a new crisis in the next few years, with most schools continuing to face teacher shortages, MPs said yesterday. Teacher shortages are almost commonplace in SA and the Department of Basic Education said more than half of schools had vacancies by March. Gauteng had the highest vacancy rate, with 99.5% of schools affected. Earlier this year, Basic Education Minister Angie Motshekga said 6,641 schools across the country had fewer than six teachers, and more than 20,000 teachers were forced to practise "multi-grade teaching", in some cases teaching as many as four grades in one class.

Teacher shortages have especially crippled the Eastern Cape. In June, the Legal Resources Centre took the department to court in a bid to compel it to allocate teachers to schools. Speaking after a presentation by the department on teacher demand and supply, African National Congress MP Zondi Makhubele said it was incumbent on the department to tell the country how it would continue to provide teachers. "The country wants to know how the department will address this looming crisis we need to plan well, the country needs qualified teachers," Mr Makhubele said. Democratic Alliance MP Annette Lovemore said the department seemed not to have a longterm plan on how to deal with the teacher shortages. "We are clearly not planning to replace the large number of teachers we are losing. How are we going to turn this around? Forty-three percent of teachers leaving the profession are between the ages of 30 and 39, what are we doing to retain these teachers?" During the presentation, the departments Devi Pillay said the vacancy rate in all schools had increased between January and March. She said the human resource management practices at most provincial education departments were not effective or efficient and this was adding to the problem of teacher shortages. Provincial education departments were not adequately planning for the filling of vacancies and did not have contingency plans for unanticipated vacancies caused by deaths or resignations, Ms Pillay said. She said that in order to address issues that were aggravating the problem of teacher shortages, the department was devising human resource planning tools for medium-to longterm forecasting of the supply of and demand for educators. The department would also continue to work with provincial education departments to reduce the use of temporary teachers. This would include giving suitably qualified temporary teachers "who occupy substantive posts" permanent status. The department was working with the Department of Higher Education to establish formal teacher training centres. Some commentators believe the governments move to shut down teaching colleges in the 1990s directly contributed to the problem of teacher shortages and the decline in the quality of teaching. Ms Pillay told MPs it was essential to research new ways to improve the placement rate to ensure that the Funza Lushaka bursary scheme was accessible to all students, and to ensure the effective distribution of qualified teachers to areas of need. The scheme offers support for university students studying towards an education degree. 22 August 2012 Business Day Editorial

Make private sector a real partner

Public Enterprises Minister Malusi Gigaba is a likeable and active minister, refreshingly attentive and if readers will excuse the pun enterprising. He controls one of the largest and most challenging ministries, in which business has a deep and immediate interest. Not only in a broad sense, in the way business has an interest in education, for example, but in a specific way, since electricity and transport are crucial aspects of the business scene. If there is one criticism business might have of Mr Gigabas approach it is that he is a state chauvinist he is determined that the state should "lead" and control investment and operate in a "developmental" way. It is fair to say he sees no contradiction between these aims.

This approach is not exclusive to Mr Gigaba and is in many ways emblematic of the desire of the Zuma administration generally that the state should be the primary agent of development. No more vague "partnerships" in this vision, but a state-led development drive in which the private sector is relegated to the role of an interest group. There is, of course, nothing wrong in principle with the ambition to be an effective operator. But like many other ministers, as his term extends it is becoming increasingly clear that this approach is untenable. Mr Gigaba has now announced an intention to seek out "innovative funding models" to support and expand the investment programmes of state-owned companies such as Eskom and Transnet. He is not advocating "partnerships", but these funding models are a step away from his previous view that saw the private sector merely as providers of finance and therefore holders of debt. These funding models are essentially customer loans correlated to the service, so that, for example, future users of electricity will capitalise expansion against future electricity receipts. Customers in effect become not only providers of capital, but also have a stake in the business. What we are seeing is a gradual shift in emphasis away from ideological purity toward realism. State chauvinism is really a political indulgence that necessarily disintegrates when it gets to the nitty-gritty of funding actual expansion programmes, which is simply impossible in any meaningful way from the balance sheets of state enterprises alone. Even with the support of the state, there comes a point at which the choice becomes one of either incorporating the private sector or not doing the project at all. There is another reason Mr Gigaba ought to be looking for partnerships and, coincidentally, Business Day published a news item on this issue on Tuesday: corruption and wastage. Parliaments public enterprises committee is angry about the irregular expenditure at Transnet and has asked its sister committee, the standing committee on public accounts, to help investigate the R8,5bn slippage. This is a striking figure, yet the cause is so commonplace it barely needs repeating. Government enterprises tend to be bureaucratic, wasteful and prone to political meddling. Managing staff tends to be difficult and motivating them is tricky, since promotion is too often based on political influence rather than skills or experience. Managing the business cycle is also difficult, since the aims of the shareholder the government are not always aligned with the businesss. Accountability is also lacking because the organisation knows a government bail-out is always possible. For these reasons and many others, public enterprises ought to be open to private-sector partnerships in areas great and small. In many ways they are already, since they are customers who buy from a host of public-sector enterprises. Yet it ought to go further than a customer relationship; it ought to be a real partnership. Gradually, as reality sets in, thats where we will inevitably end up. The sooner the government recognises that, the better. 21 August 2012 The New Age Sapa

Lonmin must take responsibility: Bench Marks Foundation

Lonmin mine must take responsibility for the escalation of conflict at its Marikana mine, the Bench Marks Foundation said in an open letter on Tuesday.

"By not entering into negotiations with the workers, Lonmin has to bear a heavy burden of responsibility for the escalation of conflict and the tragic death of 44 people," it wrote. The foundation said it was shocked at how Lonmin had handled the conflict with its workers "and over the complete lack of empathy shown after the killings in Marikana". Police opened fire while trying to disperse workers gathered on a hill near the mine on Thursday, killing 34 of them and wounding 78. Another 260 were arrested on a charge of public violence, and remain in custody. In the week leading up to the shooting, another 10 people -- including two police officers and two security guards -- were killed in protests. The protests were believed to be linked to rivalry between the National Union of Mineworkers and the Association of Mineworkers and Construction Union over recognition agreements at the mine. Workers also wanted higher wages. "Lonmin must retract their insensitivity towards the grieving families and apologise for their lack of empathy and harsh response, especially by giving ultimatums to grieving workers to return to work immediately," the foundation said. Lonmin and other platinum-producing companies in the area bore responsibility for the negative affects of mining on the lives of people in the Bojanala Platinum district municipality. "The Marikana tragedy cannot be understood without looking at the negative economic, social and environmental impacts of platinum mining for both workers and local communities in the area." The foundation said employees in the platinum mines, in particular the rock-drill operators, worked under very dangerous conditions and received low remuneration. "The workers who took to the hill in Marikana were simply demanding a living wage and a decent life." It said most of the workers at platinum mines lived in informal settlements. A recent study on platinum mining in Bojanala Platinum district municipality, conducted by the foundation, found that both workers and local communities did not see platinum mining improving their lives. "Unless this situation is turned around, conflicts over wages and lack of local development will continue to erupt." The Bench Mark Foundation recommended that Lonmin: -- Immediately meet with workers to find a negotiated solution to the situation; -- Make a public statement that it did not condone violence and the killing of workers to settle industrial disputes -- Compensate those who had lost their breadwinners by paying them the equivalent of the person's income for the next 20 years. -- Contribute 10 percent of profits towards community development, with community development committees deciding what should be done and how. 22 August 2012 The New Age Thabo Rantlha

Marikana mass memorial planned

The government is considering the spot where 34 people died during the Lonmin mine violence in Marikana as a venue for a mass memorial service tomorrow. Cooperative Governance and Traditional Affairs Minister Richard Baloyi said memorial services will also be held in different parts of the country where some of the deceased originated and that the government intended to declare the death area a cursed spot which needed to be cleansed with ancestral powers. On the other hand local government and traditional affairs MEC China Dodovu said a task team consisting of traditional healers and religious leadership would be established to represent the faith-based organisations and chiefs to visit and comfort the bereaved families of the victims who died following the NUM and AMCU clashes at the mine. It is not easy for the Marikana people, workers, police officers, provincial government, mine management and the country at large. Weve got work to do to visit those in hospitals, mortuaries and comfort the families until we lay to rest our loved ones, said Baloyi in a meeting with traditional and religious leaders in Rustenburg yesterday. He called on religious, traditional and political leaders to refrain from grabbing the limelight but to convey a common message to comfort families. Life lost is valuable and irreplaceable. Pathology services are finalising post mortem results for families to be able to plan for funerals. Each one of us has a space to do something but not to fight for the podium, said Baloyi. The chairperson of the national interfaith council of South Africas working committee Bishop Daniel Matebesi said: We want to reassure families that God will comfort them. We are ready to give them spiritual and moral support and join the mine management and government in ensuring we bury the deceased with dignity. North West House of Traditional Leaders chairperson chief Madoda Zibi said: We begin to hold hands together with government and the Lonmin management for this tragedy. South Africa is undergoing a terrifying moment and this is not the time to jostle for positions, he added. 23 August 2012 Cape Times Page 1 Kamini Padayachee and Lungelo Mkamba

Zumas single women views spark anger

Being single is not right and kids are important to a woman because they actually give extra training to a woman, to be a mother. The comments made by President Jacob Zuma, in a People of the South interview with Dali Tambo on Sunday, have been slammed by gender rights activists and social media users. Zuma had been asked whether he was happy about his daughter Duduzile getting married.

Zuma told Tambo: I was happy because I wouldnt want to stay with daughters who are not getting married. Because that in itself is a problem in society. People today think being single is nice. Its actually not right. Thats a distortion. Youve got to have kids. Kids are important to a woman because they give extra training to a woman, to be a mother. Twitter and Facebook were flooded with shocked comments, saying Zuma was condemning single, childless women. Colleen Lowe Morna, chief executive officer of the NGO Genderlinks, said Zuma was equating womanhood with motherhood. You can deduce that he is saying all women should have children. This is problematic. Not all women choose to get married and have children, they choose to have careers. Being a woman means a lot more than being a mother. If a man does not have children or does not care for his children, would Zuma say hes less of a man? Morna said Zumas patriarchal attitude to women was not new. We have a progressive constitution, but a president who does not embody those values. He is the chief patriarch and, in his view, every woman has to be a mother. Another gender activist, Lisa Vetten, told the Mail & Guardian Online that Zumas comments about single women were worrying. From our experience counselling women, women feel pressure to get into a relationship and stay in it no matter how abusive, unsatisfying and unfulfilling it may be, because they are well aware of the social stigma attached to those who are single. Dozens of people commenting on social media networks were also shocked. A Twitter user, Feminist in SA, said, Patriarchal gender norms are bad for men and women. Wish President Zuma would step up and transform them. Television and radio presenter Bonang Matheba tweeted, My President says we MUST get married and make children. It is GOOD training Lol! I cant. Facebook users said Zuma was out of order and trying to defend his polygamist behaviour. One of them, Lelo KeNna, posted, President Zuma says its good for women to have kids because it gives them training. No(sic) I understand why he gives so many women kids, hes training them. This is not the first time Zumas comments have landed him in hot water. Last year, he was criticised by religious organisations after he equated voting for the ANC with going to heaven and voting for another party with going to hell. In 2006, he was criticised by gay and lesbian groups after he said same-sex marriage was a disgrace to the nation and to God. He later apologised. His spokesman, Mac Maharaj, said Zuma had been speaking in the context of the need to build cohesive communities and families. He believes strengthening the family is important to enable the building of stronger communities to deal with the many social ills facing society today.

23 August 2012 The Times Page 2 Nivashni Nair

'Death squad' under arrest

The organised crime unit charged with cracking down on violent crime in KwaZulu-Natal has been accused of being a criminal enterprise itself. The unit's head, Major-General Johan Booysen, was arrested yesterday afternoon. His arrest signalled the end of the investigation into the Cato Manor unit, which has been accused of being a hit squad. The main charge of rackeetering, according to Independent Police Investigative Directorate spokesman, Moses Dlamini, implied that the members of the unit had acted with common purpose. The state alleges that under Booysen's leadership the 29 unit members committed murder and theft, defeated the ends of justice, and were in illegal possession of firearms and ammunition. During the bail application of the 18 policemen arrested in June, the Durban Magistrate's Court heard that they had acted without warrants of arrest, and killed without due cause and merely on suspicion. Dlamini said there were more than 100 charges against Booysen and his men. Earlier yesterday, eight policemen - Shane Smith, Eugene van Tonder, Mukesh Panday, A Pillay, Vincent Auerbach, Nico Crous, B Zondi - and two National Intelligence Unit members handed themselves over to the police. They were taken to their homes to help in the search for evidence. One officer was arrested in Rustenberg; another handed himself over in North West. After the arrest warrants had been signed, Dlamini said Booysen had been asked to hand himself over but did not do so. "We then had to go and retrieve him," he said. It is believed Booysen was present during the search-and-seizure operation at his home. By 6pm yesterday, he was still being "processed" and his chances of being able to make an urgent application for bail were rapidly fading. "The 12 arrested men will appear with the other 18 accused and the charges against them will be set out in the indictment [tomorrow]," Dlamini said. The 18 men have already been charged with 71 counts - including 14 of murder, four of housebreaking, 14 of unlawful possession of firearms and ammunition, 14 of defeating the ends of justice, four of assault and three of theft. But additional charges will be brought against them when they appear in the Durban Regional Court tomorrow. One of the murder counts relates to the killing of taxi boss Bongani Mkhize. He was gunned down three months after he obtained a high court order restraining the police from killing him. Mkhize, 44, was gunned down by members of the Cato Manor Organised Crime Unit while driving on Umgeni Road, Durban, in February 2009.

The unit's members said at the time that Mkhize shot at them and they returned fire, fatally wounding him. In December, the Sunday Times published pictures of Cato Manor unit members seemingly celebrating at a crime scene. Several witnesses claimed that unit members "executed" suspects and held booze-fuelled parties afterwards. The 18 police officers charged are Gonasagren Padayachee, AdriaanStolz, Paul Mostert, Eric Nel, Neville Eva, Adjith Ghaness, Phumelela Makhanya, William Olivier, Peter George, Thembinkosi Mkhwanazi, Mhlabunzima Thabethe, EnockMdlalose, Jeremy Marten, Shane Naidoo, Raymond Lee, Anton Lockem, John Smith and Bruce McInnes. 23 August 2012 The Times Page 4 Amukelani Chauke

Humble Zuma gives miners a hearing

One could feel the tension as President Jacob Zuma listened to angry workers at Marikana informal settlement yesterday. As Zuma - who stood under an umbrella surrounded by his VIP bodyguards - waited for his turn to speak to the workers, a self-appointed committee purporting to represent striking rockdrill operators told him of the events that led to the bloody shootings on Thursday last week that left 34 people dead. They also told him of their anger at allegations that he was among those who gave authorisation for the police to use "maximum force". Their leader, XolaniNdzuza, told Zuma that Lonminworkerswere not impressed by his decision not to visit them the day after the massacre. Zuma had met police officers only and visited injured workers in hospital. "The first person who came here to comfort us was [expelled ANC Youth League president] Julius Malema. "He organised lawyers who went to court to represent those who were arrested last week. "But the person we voted for [Zuma] failed us," he said, followed by angry chants from the crowd. Zuma had been scheduled to speak at an ANC memorial lecture in Mafikeng yesterday but delayed his trip and detoured to Marikana, apparently in the wake of mounting pressure to address the furious workers. Though steering clear of talking about Malema, Zuma apologised for not visiting the workers last week, saying it was already "too dark" when he got there . "I met the police to ask what happened . I then took a decision to [establish] a commission of inquiry that can dig deeper to find the truth." He said he would discuss the workers' demands with Lonmin's management. The demands include more than tripling their salaries- from R4000 to R12500.

"I have heard your side of the story of what happened last week. If there is something that you need to talk about, you can speak to the ministers who I have asked to come here and offer support to you. "If it is me that you want, I will come," he said. The residents of the informal settlement rejected an offer on Tuesday by the interministerial committee, led by Minister in the Presidency Collins Chabane, to organise a memorial service for the slain workers. After Zuma spoke, one of the workers asked him to intervene and secure the release of the 259 workers arrested last week. As he made his way to his car, Zuma occasionally stopped to shake hands with some of the workers, while others used their phones to take pictures of him. Earlier, Joseph Mathunjwa, the president of the Association of Mineworkers and Construction Union, told journalists his union was being "sidelined" from all meetings involving Lonmin management despite the fact that it had signed an "organisational rights agreement" with the company. He claimed management had been holding talks with the National Union of Mineworkers, its rival union, instead.

22 August 2012 Cape Times Page 1 BabaloNdenze

MPs call for Mthethwas head

Opposition MPs tore into the countrys leadership in Parliament yesterday over the Marikana massacre. They demanded to know who gave the police orders to shoot at striking miners and called for Police Minister Nathi Mthethwas resignation. During a special sitting of Parliament, after last weeks tragedy in which 34 mineworkers were shot and killed by police, the DA, Cope, Azapo and the IFP all wanted to know who had authorised the use of live ammunition. The vigorous debate was characterised by name-calling and frayed tempers. Minister of Mineral Resources Susan Shabangu lost her cool and turned to tell heckling opposition MPs to shut up. DA parliamentary leader Lindiwe Mazibuko fired the first salvo she said Mthethwa, union leaders and the Lonmin CEO ought to quit. This tragedy could have and should have been prevented, she said. Its escalation speaks of a lack of top-level leadership and of ministerial accountability. The judicial commission must therefore be established immediately, with precise terms of reference. It must not at any point be downgraded to an internal inquiry. She said

: Whoever authorised the use of live ammunition must be held accountable. The commission must also carefully examine the ministers conduct and role. At what point did he intervene? In most democracies, a crisis of this magnitude would have immediately precipitated the resignation of the minister, and, in many cases, the fall of the government. Cope leader MosiuoaLekota slammed the state for the militarisation of the police. Who waived the right to life that day and ordered that people be shot? Death is final and nothing can reverse it. This was something that was avoidable if we had stuck to the provisions of our constitution. UDM leader Bantu Holomisa said it was ironic that the people responsible for extracting the countrys mineral wealth lived in conditions of squalor. We call on Lonmin mines BEE partners to approach their partners in the UK to do something about the plight of their mineworkers. Holomisa said: What we saw there is completely unacceptable, especially when considering the fact that some of Lonmins BEE partners have impeccable Struggle credentials. Azapo MP Jacob Dikobo wanted to know who had authorised the use of live ammunition. The IFPs VelaphiNdlovu said the unions, Lonmin and the police were accountable. Ndlovu said: As the IFP, we find these three groups at fault. Freedom Front Plus leader Pieter Mulder said when more than 40 people died, it was a massacre of unthinkable proportions, a catastrophe. The final question: who is to blame for what happened? I believe no roleplayer can be singled out. All the roleplayers share the guilt, said Mulder. Mthethwa said this was not the time for cheap politicking. Most of the people have not been talking about the issue at hand. Its important to remind each other that we are here in a week that was declared a week of mourning. This is not an opportunity for very cheap politicking. Its a very serious matter in front of us. Mthethwa said the incident should teach us, as members of this House and as a nation as a whole, to work doubly hard to prevent the repeat of such events. He said Section 17 of the constitution assured citizens of the right to, peacefully and unarmed, to assemble, to demonstrate, to picket and present petition. Mthethwa also placed part of the blame on izangoma who had lied to the people. Shabangu said the tragic events that reverberated in every corner of our country, shame us all. ANC chief whip Mathole Motshekga said a study conducted by the Bench Marks Foundation had culminated in a report titled Communities in the Platinum Minefields and highlighted the many challenges facing mining communities like Marikana. Thus the Lonmin tragedy must be seen in the context that the mainstay of the mines was and is cheap labour, cheap black labour.

ANC MP Annelize van Wyk said rubber bullets and water cannon had been used by the police before they resorted to live ammunition contrary to statements made by Lekota. 22 August 2012 iAfrica Sapa

DA demands 'accountability'
It is time for difficult and painful questions about last week's Lonmin mine shooting in the North West, DA parliamentary leader Lindiwe Mazibuko said on Tuesday. Speaking during a special debate in the National Assembly, she welcomed President Jacob Zuma's promise to establish an independent judicial commission of inquiry into the tragedy at Marikana. At least 34 people died and 78 were injured in a clash between police and striking miners on Thursday. Mazibuko said the tragedy could have and should have been prevented. "Its escalation speaks of a lack of top-level leadership and of ministerial accountability. "The judicial commission must therefore be established immediately with precise terms of reference. It must not at any point be downgraded to an internal inquiry." The commission should specifically establish who authorised the use of live ammunition on the striking workers, within the context of how the SA Police Service managed violent strikes. "Whoever authorised the use of live ammunition must be held accountable." It should also, among other things, be revealed on what, if any, intelligence the planning was conducted; and if National Police Commissioner RiahPhiyega exercised appropriate judgement and leadership. "In most democracies, a crisis of this magnitude would have immediately precipitated the resignation of the [police] minister, and, in many cases, the fall of the government." The Democratic Alliance was concerned that no one in the government seemed to be assuming political responsibility for the shooting. "We need accountability now. The minister of police, the secretaries general of the Association of Mineworkers and Construction Union, and the National Union of Mineworkers, and the chief executive officer of Lonmin should carefully consider their positions, and, in my view, offer their resignations. Their position is untenable." The commission should uncover every factor and decision that led to the violence. Its work had to be data-driven, and not subject to political interference, sentiment, or a misguided desire to make the findings appear more acceptable. "The role of every actor, from the mineworker to the trade union leader, the police officer, to the board member of Lonmin, the responsible government minister, to the president himself, must face fair and impartial scrutiny," Mazibuko said. 22 August 2012 Business Report Page 1

Dineo Faku and Donwald Pressly

Mixed Lonmin messages

Lonmin anticipated that the events that rocked its Marikana mine near Rustenburg in the past 10 days would affect its credit profile, it said yesterday. This comes amid confusion over whether the group would enforce an ultimatum for its employees to return to work. The third-biggest platinum producer said it would observe a day of mourning tomorrow for grieving employees to deal with last weeks killings. During the days of lost production, Lonmin had been closely monitoring its debt position, warning it expected to be unable to fulfil its loan commitments falling due on September 30. It was considering entering the equity capital markets to make up shortfalls. The company said it would make a further announcement when appropriate. In its latest annual report Lonmin said it had consolidated its bank borrowing with new facilities of $945 million (R7.7 billion). This comprised $700m supported by BNP Paribas, Citigroup, HSBC, JPMorgan Chase, Lloyds TSB Bank, Royal Bank of Scotland and Standard Chartered. Another R660m was held by FirstRand, Investec and Standard Bank and those covenants required a maximum net debt to earnings before interest, tax, depreciation, and amortisation (Ebitda) ratio of 3.5 times. Yesterday the company said that it was taking a cautionary stance, and it would not force employees to return to work as it recognised the trauma suffered by people in Marikana. Lonmin is not taking a hard line attitude, wed like to see people come to work, but we are not going to force them to do so, a company spokeswoman said. Police Minister Nathi Mthethwa, part of a ministerial task team appointed by President Jacob Zuma to help in the aftermath of the killings, said on Monday that the ultimatum would not be effected this week. He said the government wanted an agreement with the mine on the issue. Previously, the Lonmin management said the deadline for employees to return to work was Monday or they would face disciplinary action. However, the company extended the ultimatum by an extra day. Following engagements with stakeholders, it said the workers who missed the deadline would not be dismissed, added that this was the right thing to do while all parties work together to help restore stability to both the mines and the region. A top economic analyst has called on the government to take a reality check and be cautious in calling on companies such as Lonmin to respect a week-long period of mourning and allow striking workers to stay away from work. Cabinet ministers who insisted that workers stay away were not saying who would pay if the mine, which was still forced to pay non-striking workers, had to shut down, Economists.co.za chief executive Mike Schussler said. Is (the) government going to bail it out? Schussler asked.

He said figures showed that the salaries at the Marikana mine where 34 miners were killed last Thursday were actually far higher than reported. He said rock drill operators were paid about R10 500, which was probably the gross rather than the net income. The Association of Mineworkers and Construction Union had been demanding R12 500 a month. Figures reported in the media of incomes of R4 000 to R5000 a month were apparently wrong, but could apply to net incomes after deductions. Schussler was reacting to Mthethwa, who reported that Lonmin management had agreed to revoke its ultimatum to workers that they should return to work or face dismissal. The police minister said that President Jacob Zuma had declared this week a mourning week. He called on all, including mine bosses, to respect this call. But Schussler noted that after the earthquakes in Japan, workers did not stop work. Flags were simply flown at half mast, rather than workers taking time off.