Hanky-panky REVEALED: Absa's Draining in the Master's apartheid secret. Tshwane's office What Ciex told Thabo swamp

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FEATURES 8 Notes & Updates 4 Letters Taxman has another go at Teflon Two n VW emissions arrest n Binary options: lawyers 7 Editorial to sue n JCI's accounts still awaited

38 Smalls 11 Secret letter to Thabo Letter revealed how ANC secret service AVAILABLE scuppered recovery of apartheid-era loot ON YOUR COLUMNS 12 Dr Munsamy, I presume ... TABLET 28 Africa He's been called 'a crook and a fraudster. An Confidential animal and a disgusting bag of bones' 33 Books 17 Legal hanky-panky at Master's office Download your Bribery and corruption infects official processing of 34 Down & deceased estates and insolvencies digital edition today Out 19 OUTsurance's Youi hooey both single issues and 35 Letter from SA company's New Zealand subsidiary fined for subscriptions available Umjindi misleading consumers

36 Not Rocket 20 Heroic doctors’ torment PLUS never miss a copy – Science Dedicated medics targeted by unions and politicians with back issues available to download and store 37 Last Word 24 Draining Tshwane's swamp Mayor plans to focus on service delivery DOWNLOAD YOUR DIGITAL 26 Another year in Pondoland EDITION AT SANRAL and Australian mining company www.noseweek.co.za continue their sinful relationship or % 021 686 0570 30 2017: A year of living dangerously Futurist Daniel Silke sees dramatic probablities for SA

NOSEWEEK February 2017 3 Letters

Spanner in the organworks by private consultant Leonie Marais and Heritage Consultants who are Botes, who is also a member of the first to be investigated. South IN YOUR EXCELLENT EXPOSÉ ON THE PHRA-G’s Built Environment and Africans rely on these bodies to have Pretoria City Hall (nose207) you Plans Committee. Applicant, expert our heritage conserved – and they let mention that it has protection under witness, judge and jury in her own us down. Section 30 of the National Herit- case? Anton Jansen age Resources Act but none of the The chairperson of the Built En- Tshwane Building Heritage Association heritage guidelines were followed vironment and Plans Committee is and approval for the renovations Prof Susan Bouillon who is a board Sanral pushes old apartheid plan was never obtained. Further on you member of Delacon Group, a private state that “It is doubtful if a heritage company doing inter alia Heritage SANRAL CLAIMED IN A LETTER IN NOSE207 assessment or study of the build- Impact Assessments; she is also that Outa (Organisation Undoing ing’s history was ever done… Pieter chairperson of the PHRA-G and a Tax Abuse) and Noseweek had de Necker says they had no experts board member of the South African deliberately misled the public. But involved…” Heritage Resources Agency (SAHRA). then Sanral knows all about how Before former Tshwane mayor When Gauteng Heritage has a site to mislead. It compares its route Sputla Ramakgopa took over the meeting and Bouillon has to be pre- via De Beer’s Pass with the present reins, our Tshwane Building Herit- sent, she arrives in her company car route over Van Reenen’s Pass. This age Association led numerous tours which loudly advertises her business. is deliberately misleading. The first through the building and had emi- Back to the City Hall. Noseweek environmental authorisation in 1999 nent organists demonstrating the was right to finger former mayor did not give Sanral carte blanche. It organ and carillon. Two previous Ramakgopa, along with the project required an analysis of alternatives, mayors and councillors – whom we manager, the supply chain manage- and stipulated that wetlands were took on tours to bring the deteriora- ment, etc. But then again, what not to be damaged. tion to their attention – promised knowledge do they have about con- The analysis we undertook in the millions, to no avail. servation and restoration of heritage second EIA – I was the wetland Could the council at least attend to buildings? It is SAHRA, the PHRA-G expert on the team – was of several the organ and its 7,000 pipes? Their routing options, including De Beer’s response was to advertise a tender for Pass, Alternative A (a new route up plumbing! Van Reenen), Alternative C (up- The only person who really cared grading the present route over Van was the facility officer, Kwena Daniel Reenen’s Pass), and the no-go option: Masego, who received a Certificate of leaving the existing route over Van Merit from the Association. But since Reenen’s Pass as is. No sane person then Ramakgopa refused us access to Gus sees the last option as a proposition; the building under the pretext that it its inclusion was part of the standard was being restored. EIA process. The inadequacies of the When a security fence was erected present route are the reason for look- on Pretorius Square, an open public ing for alternatives or an upgrade. space in front of the city hall, neither Sanral does not want the public to the SA Heritage Resources Agency know there are other alternatives to nor the Provincial Heritage Re- its pet De Beer’s Pass route. To keep sources Authority-Gauteng (PHRA-G) people ignorant, it does not talk about would say whether an application them. Sanral would mention them had been made in accordance with only if they were not serious competi- the Heritage Act. tors to the De Beer’s Pass route. On June 27, 2016 we noticed that Alternatives A and C, or a com- workmen were painting the historic bination of them, have less of an Italian-pattern clay roof tiles and environmental impact than the De requested Gauteng Heritage to issue Beer’s route – and they don’t bypass a Compulsory Repair Order. Painting Harrismith, so there is no threat clay rooftiles is unheard of in resto- to the local economy and jobs. They ration circles as it causes irrevers- are valid alternatives and deserve ible damage to the tiles. Instead of a serious consideration. Among other repair order Gauteng Heritage issued things, Sanral’s De Beer’s Pass route 2 a permit dated the next day to allow “Can I have one rand’s worth will destroy 4km of prime wetland. 2 “repairs” to be done. of pain relief, please!” Alternative A will destroy 1km of The permit application was done mostly degraded wetland.

4 Pretoria City Hall... Spanner in the organ works

Forgotten but not yet buried

THIS RIDICULOUS HAPPENING MAY BE OF INTEREST TO YOU AND YOUR READERS. In April, I turn 90. Since childhood, I have been a member of the Beth- lehem (Free State) Hebrew Congregation. My wife Noreen converted to Judaism about 30 years ago in the Progressive Reform Synagogue, Overport, Durban and she and I became members of that shul. The Bethlehem shul closed approximately 14 years ago as the com- munity was so reduced that we could no longer afford a rabbi. Through the Rabbi, we donated our sacred scrolls (torah) and other silverware which he, in turn, distributed to other communi- ties. He has not responded to my inquiries as to who received these items – which have a value of up to a million rand. We have never even had a letter of appreciation. The affairs of our shul are now conducted by the community rabbi, Rabbi Silberhaft, who has his rabbinate in Johannesburg. As my wife is now 80 years old, I thought it expedient to arrange for burial plots. I wrote to the rabbi, who said the cemetery is only for orthodox Jews and there was no way that we, as Progressive Reform Jews, could be buried in Bethlehem cemetery. I also wrote to the local chevra kadisha committee (the body that oversees burials). They said I should make other arrangements timeously! I have also suggested changing the constitution to allow all denomi- In the town of Roermond, Netherlands, two lovers manage to hold nations of Jews to be buried in the cemetery. This is also my right hands across eternity despite the bigotry of their respective religions. according to the constitution – that a special general meeting be called A Protestant Col J W C van Gorcum was married to a Roman Catholic, to vote on the change. No response. Lady J C P H van Aeferden, for 42 years. The colonel died in 1880 and It is crazy that, although we have been in this community for years, was buried in the town’s Protestant cemetery, separated by a wall from we are excluded from being buried here. (I know this has no bearing, the catholic burial ground. When his wife passed away eight years later but I served in the Israeli Air Force, in the 1948 War of Independence.) in 1888, she was laid to rest as close to her husband as possible. Both Zan Swartzberg graves face each other and are joined by hands above the wall. Today Bethlehem, Free State the graves are known in Dutch as the “Grave with the little hands”.

Why does Sanral stick with its De known that the Vaal River system precious wetlands. Beer’s Pass route? There is no con- is under threat from the drought, Basic economics – inter alia the vincing environmental, socio-econom- unlawful irrigation practices and cost of dilution from expensive ic or pragmatic reason. Certainly, the from different pollution sources, such sources like [Lesotho’s] Katse Dam stakeholders, especially the local poor as sewage from inadequate municipal have galvanised the Department of people whose jobs are threatened, waste water treatment works, indus- the Environment to launch extensive are unconvinced. One would have trial effluents, acid mine drainage “Working for Wetlands” programmes. hoped that, from such debacles as the and other activities taking place They are now working – spending Gauteng e-toll saga, Sanral would within the Vaal River System.” resources – on rehabilitating the very have learnt to get the stakeholders on It is a sad situation that Sanral wetland that the De Beer’s Pass road board. Yet Sanral continues to punt has to use such negative justification so desired by Sanral will destroy! an obsolete road design, dreamed to achieve their objective of creating Strange that this is allowed to up more than 40 years ago under an a De Beer’s Pass route that is not happen. apartheid regime that didn’t care required when there are less environ- There is also a new initiative from about poor people, their jobs and/or mentally destructive alternatives. the local farming community in the the environment. The Vaal system is polluted as Wilger River catchment who have Dr Mike Mentis described. That is a fact. One sustain- banded together to form a conserv- Environmental consultant able solution to this pollution is in- ancy, with one of its objectives being Kloof creased clean water production which to increase water production. will dilute the Vaal water. This will We see the value in water produc- n IN LETTERS (NOSE207) SANRAL come from the catchment of the tion for our future. These efforts, had the following to say about the Wilger River system and it is here combined with the Ingula Wetland Vaal River system: “It is also well that Sanral proposes to destroy the project and hopefully the success of

NOSEWEEK February 2017 5 Letters the Department’s Wetlands and Alien encourages sycophancy, stifles inner to the roads department but into the vegetation projects will all soon bear party democracy and smothers talent. coffers of private investors. fruit and we will have the production Our national politics has moved g) Free-trade agreements as pro- of more water in the catchment. beyond the bounds of extreme par- posed between the US and the Pacific The Wilger River flowed in the tisanship into the realm of political Rim, known as the TPP (Trans Pacific catchment all year last year, for the madness. We have become a trauma- Partnership) agreements and bet- first time in about 10 years – this de- tised nation. Are we heading for a ween the US and Europe – the TTIP. spite the worst drought in 100 years. cataclysmic showdown? [Both the TPP and TTIP are We just have to give nature a Farouk Araie expected to be scrapped by Donald chance to rectify some mistakes that Actonville Trump. Neither agreement has yet were made in the past. Lucky for been ratified. – Ed.] us nature is forgiving. But a road A more demanding electorate The little that the media has been through this wetland… unforgivable! able to find out about these very Rick Dillon SOUTH AFRICANS SHOULD START secret trade agreements (thanks to Chairman, Nelsons Kop Conservancy preparing themselves for the next WikiLeaks) is that they override the Van Reenen general election instead of listening national sovereignty, the constitu- to the barrage of mud-slinging from tions and the laws of any country that politicians – which is simply a sub- signs them, including health regula- Floored by TopOption stitute for dealing with the country’s tions, minimum-wage regulations or I CAN CONFIRM FROM EXPERIENCE THAT real issues. The electorate must flood environmental requirements, in the your account of the binary options the media with what they would like interests of a handful of international scam (nose206) is entirely accurate. to see achieved, so that before the corporate monopolies. In signing up with TopOption many general election all parties are forced This comes about when politicians promises were made about being able to tell us where they stand on the do not act for the benefit of their to withdraw at any time. Also they following: electorate but to the advantage of the would match your deposit to help a) the patenting of food sources, multi-national corporations. Resourc- your trading success. This is a trick including plants used for medicinal es, mining rights and corporate GMO because once you accept, you can no purposes. At the rate that genetically farming have been handed over in a longer withdraw your funds until you engineered food products are going, frenzy of privatisation. The so-called have grown twenty-fold. Their trading farmers and gardeners of the future “trickle-down effect” only goes one advisor then helps you to trade small will have to pay patenting fees on all way – into offshore bank accounts, so amounts and the first six give about plants which, for all of human history, they can avoid paying any tax. 75% profit. they have propagated themselves In South Africa, taxpayers pay al- Every day he tries to bully you into without having to pay a third party. most half of their salaries in taxes: in- depositing more – because this deter- This is a form of theft. Patents on come tax, rates and taxes on property, mines his commission. Then he tells potatoes and bananas, where one mi- VAT on everything they buy, toll fees you to make three trades which use nor component of the DNA has been on every freeway… yet few see a re- nearly all your funds. One of them changed, becomes a money-making turn on their investment. What taxes luckily just made enough to cover the racket. should be funding is a high standard other two trades which were a loss. b) The same applies to the patent- of affordable education, health care Then more pressure until you end ing of animal DNA. and policing. up with a single trade, using all the c) Do they support the clear and Teachers, health-care workers and funds, which is a loss. labelling of food products on our police should be highly trained, and When you look back you can see store shelves. The herbicides used paid decent salaries. the manipulation. TopOption is not on genetically modified products are After 22 years the ANC has had the subject to any regulatory body. South carcinogenic, cause organ failure and opportunity to redress the inequali- Africans be warned. an increased rate of infertility. ties of a racist system. If they have Badly Bitten Farmers in Hungary burnt all their not done so by now, they never will. By email GMO crops in order to free them- P.S. I do not want my family and selves from GMO monopolies. Gail Evans friends to know that I tried this! Russia regards all GMO as a ter- Mtunzini rorist threat and has invested heavily Now see page 10. – Ed. in organic farming. In the past two Nickname was off colour years Russians have transformed the Governed by political madness country’s economic landscape from a THE SOUTH AFRICAN FOREIGN AFFAIRS food importer to a food exporter. official you refer to (on page 11 in THE PROFOUND ARTICLE BY SUE BARKLY d) Fracking of the Karoo, since nose207) as “Sandy” Evans who titled “ABZ is not The Way” (nose207) internationally fracking has been fronted for a German spy boss’s bribe warrants comment. The ANC is in ut- proved to destroy the groundwater of loot in France, was actually Rusty ter political turmoil, frittering away a region: an ecological disaster. Evans. its gains in a maze of corruption scan- e) The privatisation of our rivers, Anonymous dals. The dominance of certain fac- dams and other water resources. Pretoria tions hobbles nimble decision-making, f) Toll roads and the privatisation of The record has been corrected. Thank perpetuates a feudal political culture, freeways, where profits are not paid you. – Ed.

6 NOSEWEEK February 2017 C Editorial Editor Martin Welz [email protected] Assistant Editor Money has no colour Jonathan Erasmus CTING CHIEF EXECUTIVE OF ESKOM, amounts of this type of unproductive debt. Special Correspondent Matshela Koko, recently attacked In the meantime, power for the nation Jack Lundin Exxaro in an angry tweet accus- remains a priority. Providers of capital Designer ing the coal digger of having dealt (shareholders, mainly institutions) and Tony Pinchuck a heavy blow to “radical economic debt finance (banks and stock markets) Consultant transformation”.A While Exxaro is hardly have clearly given Exxaro feedback on a Len Ashton the world’s saintliest company (see preferred funding plan, including target noses186&202), what substance is there shareholder stakes after a capital raising. Sub-editor to Koko’s highly charged statement? Fiona Harrison To counter this argument, BEE His tweet was prompted by Exxaro’s “consultants” such as Duma Gqubule of Contributors announcement that it plans to reduce its KIO Advisory Services and Ajay Lalu Len Ashton, Sue Barkly, Chris Bateman, 50%-plus BEE equity ownership to 30% of Black Lite Consulting (both quoted Sibusiso Biyela, John Clarke, Bheki with a massive capital-raising exercise. As in Business Day) suggest the Industrial Mashile, Susan Puren, Barry Sergeant, a result, Exxaro could be trumpeted as a Development Corporation, the Public Harold Strachan, Anne Susskind black-owned company, but it will effec- Investment Corporation and the African Cartoonists tively no longer enjoy that status. This, Development Bank would be happy to Dr Jack, Stacey Stent said Koko, was an “insult” to Eskom. fund such a deal. Taxpayers and the But there are differences of opinion as Accounts Treasury (who fund all three) are no to just what aspect of the BEE deal is doubt thrilled to hear that. Nicci van Doesburgh most insulting and to whom. [email protected] There are further troubling factors. It is Eskom is building new coal-fired power not uncommon for mining companies to Subscriptions stations (up to a decade behind schedule) be forced into one BEE deal after another Maud Petersen and needs lots of coal. It is estimated that (see “Northam Platinum: for pensioners [email protected] to meet the demand, coal mining capacity or the Party”, nose186), on the spurious Advertising in South Africa will require more than notion that anyone but BEE shareholders 021 686 0570 R100 billion in fresh investment. will simply cough up ad infinitum for a [email protected] Koko, widely supported by empower- BEE stake to be maintained. ment “experts”, is one of many who never Tellingly, there has never been a explains how BEE assists in raising large All material in this issue is copyright, and belongs “sunset” clause for BEE ownership. On chunks of capital. Were that even vaguely to Chaucer Publications (Pty) Ltd, unless otherwise the contrary, it has been argued that indicated. No part of the material may be quoted, possible, BEE shareholders could cough companies must maintain an “always photocopied, reproduced or be stored by any up, and follow their rights in any fresh electronic system without prior written permission. share issue, thus maintaining unchanged empowered” profile, even when BEE Disclaimer: While every reasonable effort is taken to equity stakes. It does not happen. shareholders have sold up and walked off ensure the accuracy and soundness of the contents of with their loot. this publication, neither the authors nor the publisher BEE shareholders in general have long will bear any responsibility for the consequences of become accustomed to risk-free equity There are a number of court cases any actions based on information contained. Printed stakes, which require zero capital invest- under way seeking legal and constitu- and Published by Chaucer Publications (Pty) Ltd. ment by them. All they offer the company tional clarity on the Mining Charter and is their names and their apartheid-era other odious chunks of BEE laws, rules race classification, with now and again a and regulations. No-one in their right handy connection to a senior personage in mind is against genuine BEE, but rules the Zuma government. for equity and debt – not least when All it does, with rare exceptions, is massive new investments are called for – SUBSCRIPTION RATES line the pockets of the idle rich in the must be fair, honest, and without colour. ranks of the ANC. They themselves don’t l More news you’re not supposed to Print borrow the money to buy their shares; the know: In Noseweek’s interview with Solly SA only R410 company stands in for the debt, effectively Msimanga (page 18), the Tshwane mayor Neighbouring states (airmail) R600 financing the purchase of its own shares. was reluctant to reveal names of ANC Europe, Americas and Australasia R740 In many cases, the debt is paid off by personages who in the past 24 months had been happy to – in the ANC’s words Internet edition the company withholding dividends – 1 year R298 assuming there are dividends. Just as – “commit treason” by visiting Taiwan. Noseweek fortunately has other sources Combined often, the debt is simply written off over time. In some cases, such as seen with who aren’t so shy. Among the ANC elite Print+Internet (SA only) R510 Gold Fields in 2010, billions of rands who have visited Taiwan are President To subscribe worth of equity are given away free to Jacob Zuma’s favourite son and nephew, By post: Send cheque with name, BEE “partners”. Which, from a purely Edward and Khulubuse, as well as a address and phone no. to: noseweek, commercial point of view, looks horribly former mayor of eThekwini and – top of PO Box 44538, Claremont 7735. like licensed bribery on a grand scale. the pile – Minister of Trade and Industry Via Internet (pay by credit card): This climate is hardly conducive to Rob Davies, accompanied by his Director- www.noseweek.co.za conventional financing. Large lenders are General Lionel October. We thought you Email [email protected] reluctant to lend huge sums to companies ought to be told. Further information burdened in advance with significant The Editor Call (021) 686 0570; fax 021 686 0573 or email [email protected] NOSEWEEK February 2017 7 Notes & Updates Taxman has another go at Tefon Two

URBAN’S MOST FLAMBOYANT COUPLE Ferrari 612 Scaglietti and a McLaren and Transport from various munici- Shauwn and S’bu Mpisane, who MP4-12C. palities, in an attempt to hide/dissipate have financed their high-flying Properties include their La Lucia such funds, to the detriment of SARS lifestyle primarily through not mansion in Durban North. and other creditors”. In court papers it paying taxes on their earnings The couple’s assets are being held by is alleged that the new company had fromD the lucrative government tenders, Pieter Strydom of Strydom & Breden- already received R52m between April are now desperately trying to hide as- kamp Inc in Pretoria and Tshifhiwa and June 2016. sets as the taxman hovers with claims Mudzusi of Honey Attorneys, Bloem- The Sunday Tribune reported that a totalling nearly a quarter of a billion fontein. preservation order was brought against rand. It appears the Mpisanes have been Zikhulise Cleaning Maintenance and Noseweek has written extensively preparing for the arrival of the men Transport CC, Zikhulise Auto Restor- (noses103;109;125;150;195;203&204) from SARS. Before the seizure the ers CC, Inyanga Trading 559 (Pty) about the Teflon Two, most recently in couple had already began transferring Ltd, Royal Eagles Football Club and November (nose205). property and vehicles into other enti- Zikhulise Auto Recoveries (Pty) Ltd as According to court papers filed by ties to avoid having them seized, in- well as Madoda Mbeje, a trustee of the SARS at the High Court, Durban, in cluding into a family trust called Sbu- Sbusha Trust, effectively freezing all November, the couple and their com- sha Trust, which was set up only at the their assets. panies owe “in excess of R204 million”, beginning of 2016. Between 2011 and 2014 SARS was most of it being part of a settlement One of these assets is a 54-hectare the complainant in a criminal case agreement reached in 2014 with the farm in uMshwathi Municipality in against the Mpisanes, and their com- tax authority. the KwaZulu-Natal Midlands, bought pany Zikhulise Cleaning Maintenance SARS obtained the order in cham- by the Mpisanes in 2014 for R14m. and Transport, of which Shauwn was bers in the North Gauteng High Court This has been developed into a multi- the sole director. Combined, they faced from Deputy Judge President Audrey million-rand soccer training academy, 183 charges of tax fraud, forgery and Ledwaba and, in Durban, from Judge possibly for their own First Division bribery over their 2008 and 2012 tax Rashid Vahed. club, the Royal Eagles. The property assessments (see nose205). But the Of the total claimed, Shauwn owes was transferred from the Mpisanes to National Prosecuting Authority and R57m, but SARS is going after the two the trust in March 2016 and valued at SARS, despite what appeared to be jointly, as they are married in commu- R15m. With all the improvements they overwhelming evidence, withdrew nity of property. have made, it is said now to be worth as the case against them, alleging that The Mpisanes are disputing the taxes much as R30m. the prosecution had been irreparably owed, but SARS is sticking by its “pay- When moveable items were seized tainted by the alleged misconduct of now-argue-later” principle. from the Mpisanes’ properties it was re- KZN senior prosecutor, Advocate Meera It is unclear who exactly is playing ported that several known assets were Naidu. Naidu was summarily suspend- whom and whether this is all part of missing. ed and blamed for the acquittal by then a ruse by the Mpisanes to escape their Simultaneously both Zikhulise Clean- Director of Public Prosecutions Mxolisi monumental tax burden by claiming – ing Maintenance and Transport CC and Nxasana. in the media in KwaZulu-Natal – that Zikhulise Auto Restorers – both with Two years later Naidu was cleared of they are unable to pay their taxes be- extensive tax woes – are being wound all charges and reinstated at the con- cause government departments have up. Concurrently the couple have ap- clusion of a disciplinary hearing. Adv not paid them for various construction plied for business rescue, although it is Justice Mnisi, who presided over the contracts. unclear for which businesses. hearing, said the treatment of the pros- SARS seized the assets of the couple, While Zikhulise Cleaning Mainte- ecutor was a “travesty of justice” and and those belonging to their various nance and Transport’s tax woes hark questioned the NPA’s motives for drop- companies under the Tax Administra- back to the 2014 settlement agreement ping the Mpisane matter. tion Act. If the seizure is successfully with SARS, Zikhulise Auto Restorers In 2014 Shauwn went directly from challenged, SARS will bring a se- is the subject of a January high court the dock to the swanky five-star The questration application in February, judgment in terms of which it owes Square Boutique Hotel in Umhlanga Noseweek has been informed. SARS R2,880,724 in unpaid taxes and to attend a special tax court set up by Vehicles seized by SARS include an penalties. SARS. The settlement reached there Aston Martin Rapide, a Dodge Ram In the interim the Mpisanes have set was never made public but it now ap- and several BMWs. Although not on up a new entity called Zikhulise Group, pears that the current action by SARS the seizure list filed in court, several formed in March 2016. According to is on account of her reneging on at least more luxury cars are also reported SARS it was created to “receive funds part of the agreement reached at the to have been impounded, including a due to Zikhulise Cleaning Maintenance hotel. – Jonathan Erasmus n

8 US expands VW emissions scandal

OME OF VOLKSWAGEN, GERMANY’S Schmidt, 48, who was VW’s liaison top executives may find it too person with US environmental regu- risky to leave Germany as US lators, appeared in a federal court in prosecutors prepare to charge Miami, where a judge ordered him more company officials. Oliver to be held in custody as a flight risk. Schmidt,S a senior VW executive, was His lawyer sought Schmidt’s release, arrested in Miami in early January saying his client had alerted the gov- as he was returning to Germany from ernment that he was visiting and was vacation. He faces charges of mislead- willing to speak with investigators ing regulators about the automaker’s and face charges. diesel-emissions cheating devices. Comment from the Daily Bell, a lib- Bloomberg reports that US pros- ertarian website: ecutors are preparing to charge more “Were VW officials dishonest and high-level German-based executives manipulative? Possibly so. Did any- in the case, a source familiar with the one get badly harmed by their emis- matter said. Schmidt’s arrest caught sions ‘cheating’? Any hard evidence of many VW executives by surprise, in- Volkswagen’s Oliver Schmidt that? Probably not. cluding some who were attending an “This is a witch hunt seemingly of auto show in Detroit early in January. greater urgency than catching pae- Lawyers for some senior executives A multi-billion-dollar settlement be- dophile priests. Why? Because VW in Germany have already warned tween the carmaker and the US Jus- has money. White collar crime does their clients not to leave the country. tice Department was expected soon, pay – for the government, in the fines The arrest and the looming charges insiders said. that they manage to extract from the against senior executives show that VW admitted last year that about perpetrators.” the year-long investigation into the 11 million diesel cars worldwide had l What do Noseweek readers think? emissions cheating was coming to a been fitted with so-called defeat de- Let the VW men off with a modest fine, head in the final days of the Obama vices – embedded algorithms used to or lock them up in prison? Let us know administration. “doctor” emissions tests. your views. n Stent

NOSEWEEK February 2017 9 Notes & Updates Lawyers set When, oh when do we to sue see JCI’s accounts? binary options HY HASN’T THE JCI PUBLISHED perpetrator/beneficiary (JCI) and the audited annual financial victim of the theft (Randgold): Investec statements since 2012? and its allies contrived to gain control of Noseweek has been asking the boards of both companies and were traders that question for years, most so able to prevent Randgold from assert- recentlyW in September 2016. ing and legally enforcing multi-billion- Through the years JCI’s directors and rand claims against the wrongdoers, auditors KPMG have stated from time that included JCI, Western Areas (now ONDON LAW FIRM GIAMBRONE IS to time that the accounts would be forth- Gold Fields Operations), Investec SA preparing litigation against coming “soon”. Most recently, on 9 May and Investec UK. Banc de Binary (see nose206), 2016 they advised shareholders that the By means of general obfuscation (such according to a recent report audited accounts for 2013, 2014, 2015 as the non-production of audited annual on binary options’ website, and 2016 would be published in the sec- accounts) they hoped to deprive their FinanceL Magnates. The firm is re- ond week of August 2016. They weren’t. enemies of information which might ported to be investigating numer- For some mysterious reason they have have assisted them in pursuing Rand- ous complaints by victims of Banc still not been published. gold’s legitimate claims. de Binary’s fraudulent binary op- Now the minority shareholders in With Investec and Peter Gray (who, tions trading, and is negotiating the JSE-listed Randgold & Exploration as head of Kebble’s stockbrokerage, had with a City of London litigation Company (Randgold), who are involved overseen the sale of the stolen Randgold hedge fund to finance litigation in suing JCI’s “caretaker”, Investec, for shares) in control of both companies, aimed at recovering their losses. billions, have joined the clamour. they were able to stage what appeared The lawyer on the case, Joanna Once the mothership of the late Brett to be mediation proceedings between Bailey, is quoted as saying the Kebble, JCI, while still under the direc- the two, lending an air of legitimacy law firm had been contacted by tion of Kebble, looted Randgold (a public, to Randgold’s acceptance of a pitiful around 40 former Banc de Binary listed company also under Kebble’s di- settlement offer founded inter alia on clients, most of whom are based rection at the time) of its share portfolio. false representations of the value of JCI in Europe, the Middle East and Aided by bankers and brokers, JCI then shares. Australia. The joint value of their sold the stolen shares, raising a total of Randgold’s claim of R19bn at the time claims is approximately €2 million R1.9 billion. The money was used to fund was settled for R600 million in Janu- (R28 million). “We need to reach at the JCI’s misguided plans to develop the ary 2010. The purported settlement least €3m to make the litigation fi- South Deep gold mine and, of course, to value was R900m but that included JCI nancially viable for the litigation fund the life of excess enjoyed by Kebble shares valued at R300m in the settle- funders,” she said. and his close friends in the ANC. ment circular, which were, in fact, val- l In March 2016, US regulators Noseweek has detailed the events that ueless. ordered Banc de Binary Ltd, ET Bi- followed Kebble’s death (he was shot by For their assistance in carrying out nary Options Ltd, BO Systems Ltd, paid assassins in September 2005) and the plan, both the former CEO (Peter BDB Services Ltd and its owner, the extraordinary machinations em- Gray) and current CEO (Marais Steyn) Oren Shabat Laurent, to pay over ployed by his partners in crime – includ- of Randgold received multi-million-rand $9m (R1.2 billion) in refunds to US ing Investec – to cover up their appall- bonuses. clients. ing conduct and avoid having to make Investec simply cannot afford to lose l The Cyprus Securities Ex- good Randgold’s massive losses. control. On Kebble’s demise in 2005, change Commission has confirmed Whatever it took, they had to prevent it ensured its lapdog auditors, KPMG, that Banc de Binary has given no- Randgold from forcing JCI into bank- were installed at JCI and Randgold. It tice of its intention to close down ruptcy, which might have exposed the is possible that KPMG may have devel- as a result of the consistently nega- conspirators to the risk of an insolvency oped a conscience or a heightened sense tive press that the company has inquiry, where a raft of highly irregular of self-preservation, and now refuses to faced over the past year. A news if not illegal commercial transactions sign off on the accounts. report quotes a Banc de Binary committed by Investec and others would Some good news for Randgold mi- spokesperson saying: “I don’t see likely have been unearthed. norities is that various regulatory how we can continue operating As part of their sinister strategy – and associated authorities are starting under such scrutiny and [with this] spearheaded by Investec – they engi- to look at the case. After more than a public image.” n neered the corporate capture of both the decade. – Barry Sergeant

10 Secret letter to Thabo Report reveals how ANC secret service scuppered recovery of R200bn-worth of apartheid-era loot. By Jonathan Erasmus

EARLY TWO DECADES AFTER THE the investigation of apartheid-era loot- politicians and the then Director-Gener- South African government ing of government resources and efforts al of Intelligence, Billy Masetlha. was briefed on how exten- aimed at recovering the stolen money “So we are in a mess. I understand sive the dying apartheid-era’s from the perpetrators and their collabo- why [SASS] were brought in, but I think looting was, nothing has yet rators. These included major European we can handle the security of the exer- hasN been recovered. banks and defence corporations, all list- cise quite well without them. I do not What is known on this matter is large- ed in the Ciex Report (see nose131). think we can handle the collaboration.” ly the result of the secret Ciex Report, Noseweek can now reveal that in a Ciex was eventually paid a total of dubbed Project Spear, which was com- “Private & Confidential” letter that Oat- £600,000 to fund the first year of a wide- pleted in 1999 on instruction of then ley sent to Mbeki on 13 October 1997, ranging international probe. For the deputy president Thabo Mbeki and the less than two months after Mbeki au- second year, Ciex agreed to continue its head of the South African Secret Ser- thorised the investigation, Oatley com- inquiry for a 10% cut of all recoveries. vice, Billy Masetlha. In it, the London- plained to Mbeki that Ciex had not yet By the time Oatley wrote his letter in based investigations company, headed been paid as promised – and that the October 1997, he was already remark- by former senior British intelligence South African Secret Service (SASS – ably well-informed on South Africa’s se- officer-turned-consultant Michael Oat- now the State Security Agency) with cret affairs. Two years before the deals ley, provided the government with an whom he was told to cooperate was be- were signed, he told Mbeki that he could itemised blueprint on how to reclaim the ing anything but helpful. provide “objective information” into hidden money. “Forgive the frank and personal let- South Africa’s arms procurement pro- Since then South Africans have ter,” wrote Oatley. “Things are not going gramme – which, years later, would be watched how this matter, with approxi- well with the project which you author- found to have cost the taxpayer over R70 mately R200 billion believed to have ised at our second meeting on 26 August. billion and was riddled with high-level been stolen, has been pushed from one I thought I should write to you directly corruption and collusion. hearing to another; each saying the as I now doubt whether matters can be “I am looking at the ways in which the same thing – the state was looted but put right without your intervention. French, Spanish, British and German going after the perpetrators is too risky “You made it clear at our meeting you competitors are developing plans to ob- and costly. That the issue remained sen- wanted the project pursued urgently.” tain the South African defence contracts, sitive – for whatever reason – became The promise of a “senior point of con- and at aspects of South African oil deal- clear when the SABC in 2013 found it tact” in the secret service had not been ings,” he states in the letter. “I believe we necessary to ban the broadcasting of a kept. Instead, he told Mbeki, he had can do something really useful in this documentary film on the subject that it been assigned a “very junior member delicate phase of the country’s develop- had itself commissioned. of SASS who… is inefficient and rather ment – but not if we are kept at arm’s Equally clear is that, at least until now, dozy, does not understand the project… length and treated with suspicion.” there has been little or no political will to and is allowed absolutely no authority Whether known to Oatley or not at the tackle this issue. So much so that the be- to take action. In other words an un-re- time, the then-recently retired defence lief has grown in some quarters that the spected messenger boy, which is how his minister Joe Modise was already on the ANC deemed it more advantageous to superiors treat him!”. arms dealers’ payroll. Even before he inherit the apartheid government’s se- Oatley noted that the SASS “clearly was sworn in, experienced senior Arms- cret funding sources, rather than expose don’t like this project… and are certain- cor officers had helped him set up trusts them. This was demonstrably the case in ly not committed to its success”. He add- into which bribe money could be safely the 1999 arms deal. ed: “…documents which I had asked for hidden. (See nose132.) Interest in the report has been revived and been promised in preparation of our Weeks before the final sign-off on the by the Public Protector’s recent report case on Absa are now described, a week deals, Modise became the new chair- on apartheid-era looting, which referred later, as being government papers which man and major shareholder of Conlog, a to Ciex – and Noseweek – as key sources I should not be given because I am not company with extensive interests in the of information. The provisional report, an official. SASS will look at them, at overall armaments package. His pur- leaked to the Mail & Guardian in Janu- some unspecified time in the future, and chase of Conlog shares was made possi- ary, immediately elicited furious denials give me selected quotes if they think it ble via a “German friend” who lent him from the first two parties implicated by suitable to do so.” R40 million, sent via Mozambique into Ciex – Absa and the SA Reserve Bank. Oatley, on visiting South Africa, was the account of Kingsgate Clothing – con- Less well-known is how South Africa’s often kept in safe houses during which trolled by Schabir Shaik. post-democracy intelligence services time “nothing happens for a long time”; Online subscribers can see Oatley’s tried at first to control and then scupper he was also regularly stood up by senior letter on the Noseweek website. n

NOSEWEEK February 2017 11 Dr Munsamy, I presume ... He’s been called ‘A crook and a fraudster. An animal and a disgusting waste of skin and bones’ By Mandy Wiener

N JULY LAST YEAR, NOTORIOUS CZECH (Sapeg) – a company controlled by that “even a criminal has rights”, and fugitive and gangster Radovan Mahendran Munsamy – against RMB a bank does not, by law, have the right Krejcir stood in the dock in the Private Bank (a division of FirstRand to freeze a client’s account on it’s own Johannesburg Magistrate’s Court Bank Ltd) in August 2014. The bank accord, even if it has grounds to believe in connection with a money-laun- had frozen his accounts because they the account is being used for money deringI scam that defrauded the Cen- had come to the conclusion that he was laundering or other criminal purposes. tral Bank of Swaziland of R7.6 million. using them for money laundering other In such a case the bank must report Next to him stood his three co-accused unlawful purposes. (He also happened its suspicions to the appropriate state – a prominent Gauteng businessman, to owe the bank a couple of hundred authority – the Financial Intelligence Nico Oosthuizen, a relatively innocu- million on some fraudulently obtained Centre – and only the FIC may order ous individual called Keith Bain and bank guarantees. an account to be frozen, preparatory to a Dr Mahendran Munsamy. (See box.) Munsamy denied the accusation and legal action. There have been several postpone- applied to court to order the bank to re- Of even greater interest to Noseweek ments since, and their next court ap- lease his funds. readers will be the account of just what pearance was scheduled to take place Remarkably, considering the nature the bank discovered about Munsamy shortly after Noseweek went to press. and extent of the evidence presented and his associates when it went look- The world knows about Krejcir – but and the issue of law raised in it, the ing. This is contained in the 150-page where had we heard of Dr Munsamy case appears to have escaped media at- answering affidavit by Malini Mudaly, before? A bit of research revealed that tention until now. FNB Premium’s Head of Legal. the wealthy, suave medical doctor A 105-page affidavit made on behalf The story begins on 13 June 2014 with a portfolio of lavish properties, of RMB by FNB Premium’s Head of Le- when $560,000 (approximately R6m at from Hyde Park to Sandhurst, Johan- gal, Malini Mudaly, reads like a thriller the time) was transferred from a Mau- nesburg, has previously featured in a and handbook on money laundering ritius bank account into the FNB ac- variety of elaborate, convoluted and combined. But despite the detailed evi- count of Corporate Social Investment allegedly criminal schemes involving dence that the bank had managed to (Pty) Ltd, a company controlled by South African banks and petroleum gather – which persuaded it to freeze Munsamy’s wife, Dr Leegale Adonis. companies, a corrupted bank manager Sapeg and Munsamy’s bank accounts Routinely asked by a bank official and the criminal underworld. – all of it has yet to be tested in court. to explain the source and purpose of Of particular interest was the ex- Munsamy succeeded in his applica- the payment, to comply with Reserve traordinary evidence we found con- tion and the court ordered the bank Bank regulations, Adonis first said it tained in case file number 2014/27890, to release the funds it had frozen. In a was a loan, but when asked to com- at the Gauteng Local Division of the controversial judgment delivered on 5 plete the required form for foreign High Court. It contains the record of December 2014, Judge Roland Suther- loans, changed her mind and claimed an application brought by South Af- land ordered Sapeg and Munsamy’s ac- that it was actually an advance pay- rican Petroleum and Energy Guild counts to be unfrozen on the grounds ment for her research services related

12 The legal argument

N A THURSDAY IN JULY LAST YEAR, DR Mahendran Munsamy, together Owith Gauteng businessmen Nico Oosthuizen and Keith Bain, handed themselves over to the police. On the same day they appeared in the Johan- nesburg Magistrate’s Court – along with notorious Czech gangster Rado- van Krejcir as their celebrity co-ac- cused. Their arraignment in court was the culmination of a police investigation that started in 2013. That investiga- tion and those charges involved their alleged dealings with Absa Bank and was unrelated to the events described here in the adjacent Noseweek story, which recounts Munsamy’s dealings with FNB – although the alleged mo- dus operandi of the suspects in both cases shows striking similarities. Lead investigator Colonel Cohen Oock told the court that the group and employees at the Central Bank of Swaziland had issued fraudulent docu- ments to Absa and the South African Dr Mahendran Munsamy Reserve Bank relating to various in- and wife Dr Leegale Adonis ternational transactions. “The money was then laundered through various entities and persons, and unlawfully and intentionally ap- propriated,” Oock said. Krejcir had been implicated because money laundered through the scam to the fuel trade between Mauritius properties in high-end suburbs and at had been used to buy Krejcir’s yacht, and Richards Bay. a BMW motor dealership. which was later seized by SARS as This raised the bank’s suspicions – At that stage, the bank officials part of a preservation order against both because of the sudden change in investigating the transaction were the Czech’s assets. description, and the unlikelihood of unaware of a prior contentious issue The State’s provisional charge sheet Adonis, a medical doctor, being com- between the bank and Dr Munsamy, alleges that the group secured four missioned to research matters relat- relating to fraudulent guarantees is- amounts of between R429,878 and ing to the oil trade. These suspicions sued by the bank in favour of Sasol Oil. R3,980,823 in October 2013 through were confirmed when, within days of But then the details came pouring Absa and the Reserve Bank. The to- the money’s arrival in Corporate Social out – and this is the really interesting tal amount involved was said to be Investment (CSI’s) account, the entire part of the story if you’re a fan of care- R7,594,467. sum was transferred to that of Sapeg, fully considered financial conspiracies. The largest amount ultimately ar- of which Dr Munsamy is a director. What the bank investigators now rived in the accounts of Basadi Logix, a On closer investigation, according to discovered putting two and two to- company of which Munsamy was once the affidavit, it emerged that the Sa- gether, led them to believe that the a director. peg account (also held at FNB) was questionable transfer from Mauritius The accused in the Absa case were conducted primarily to pay Munsamy’s and the initial fraudulent guarantees due to make their next court appear- personal expenses. Within no time, the were “very much linked and inter- ance within days of Noseweek’s going money was spent by him, purchasing twined”. As a result, the bank iced the to press. n

NOSEWEEK February 2017 13 payments. Sapeg responded with a liquidation without having paid Sasol, used for illegal purposes in the past court application to force the bank to leaving FNB to meet the guarantees. and is again being utilised for illegal release the money. On investigation, the bank found purposes, and the bank submits that it FNB argued in court that, by virtue that none of the guarantees were en- is entitled to put a hold on the account,” of an implied or tacit term governing tered on its register, and that the sec- says the bank in court papers. the relationship between the bank and ond bank signature on the guarantees In his affidavit, Munsamy insists its client Sapeg, it was entitled to pre- was a forgery. Subsequent investiga- that the fraudulent guarantee litiga- vent the payment of R5m from Mau- tions revealed that Sapeg’s account tion has nothing to do with the funds ritius and freeze the funds. In turn, was linked to Reddy and the fraudu- transferred from Mauritius. Munsamy accused the bank of hold- lent guarantees, and that Munsamy The bank disagrees. It believes that ing Sapeg to ransom saying its behav- and entities controlled by him or by instead of paying Sasol, entities con- iour was akin to extortion and it had his personal assistant had paid at least trolled by Munsamy ensured the fuel breached statutory obligations. R670,000 – and possibly as much as was shipped off-shore to Mozambique Justifying the bank’s actions, Mudaly R2m – to Reddy at the time the fraudu- and sold there. Part of the proceeds of explained in her affidavit how, between lent guarantees were issued. those sales were not remitted to South January and May 2011, the bank man- These payments were into a “staff ac- Africa but instead ended up in Mauri- ager of FNB in Hyde Park, Preggy Red- count” in the name of Reddy’s mother tius, in the hands of another Munsamy dy, fraudulently created and issued at – who did not work at the bank – and entity, “GTL Direct Ltd Mauritius”, least four bank guarantees for a total carried descriptions such as “Part controlled by a cousin of Munsamy. of R310m in favour of Sasol Oil (Pty) Comm” and “Consulting Fee”. In short, instead of paying Sasol, the Ltd. This enabled a company called Although in his mother’s name, the fuel and the proceeds of its sale were Lavela (controlled by Munsamy) to account was opened by the bank man- diverted off shore. The bank believed purchase fuel worth hundreds of mil- ager for his own benefit. (See interview the same company that received the di- lions of rands without having to pay for with Reddy on page 14.) verted funds was trying to reintroduce it in advance, as was usually required. “The bank considers that the facts this money back into South Africa. (The Shortly afterwards Lavela went into show that Sapeg’s account has been “Payor” of the $560,000 that arrived in Bank manager who was hung out to dry RAGASEN “PREGGY” REDDY DOES a year, so we’ve got to look after him; unethical about it. He was a friendly, not look like a banker. That they do a lot of cash withdrawals so nice kinda guy. He put on the charm. may be because, despite hav- can we just make sure the process is He knows how to schmooze somebody. ing had a relatively long and expedited and not to frustrate the cli- “We started talking and he says to successful career in banking, ent. me, ‘Listen I’ve got projects coming heP no longer is one. He has some tat- “It was a Saturday morning when up in 2011, I’ve just bought another toos. He’s in shorts. He’s had a rough I first met Munsamy. He said: ‘You company called Lavela Petroleum. few years – by his own admission, this won’t see me but you’ll see my PA My wife is going to be the head of the is largely as a result of his own doing Tanya Klein. She’ll be running in with company. The company is in her name and his naïvety in trusting someone the cheques,’ so we said ‘Sweet like a but it’s a massive contract we’re tak- he now calls “an animal” and “a dis- lemon. No issues. Just give us an hour ing on.’ gusting waste of skin and bones”. and we’ll ready your cash.’ That’s how “He said he’s bought companies The 38-year-old started out as a Munsamy walked into my life.” here and there and he wants to lev- service adviser at the FNB branch Over the years Reddy got to know erage their properties with the bank in Sandton City. He explains that he Klein very well although he rarely, if [use them as security for a bank loan]. was then hand-picked to join a group ever, saw Munsamy. Munsamy’s peo- He’s had some problems with other of elite managers for a new chain of ple regularly invited him to their end- banks. Would the bank look at it?” “McDonald’s-style” FNB outlets. He of-year parties, but he would never Over the Christmas break and into was appointed the associate bank attend – until 2010, when he decided January, Reddy says, Munsamy was manager at Hyde Park in 2010. “What the hell, why not?” That deci- putting pressure on him to urgently Dr Mahendran Munsamy first sion would change his life forever. set up the deal. He even summoned walked into Reddy’s life during his “I was at Hyde Park and Tanya the bank manager to a meeting while Sandton days. “It was my job to meet (Klein) came to the branch and said he was on leave. the niche clients, the whales, the high- ‘Listen, we’re having drinks tonight. “He treated me to lunch. We chat- flyers, just to keep them happy,” Reddy Come.’ It was Friday, 20 December. ted for about three hours. At that time recalls. “We were told by his account “I hadn’t seen Munsamy in years. I didn’t realise he was busy profiling manager that we’ve got a big client in It’s not strange for a banker to go to me. He was getting to know me on a the gasoline industry, huge turnover his client and have a drink, nothing very personal level. I’ve taken some

14 Munsamy’s wife’s FNB account was When the bank’s attorneys were giv- whilst receiving payments from enti- identified as “GTL Mauritius”.) It also en sight of – but not allowed to copy – ties controlled by Dr Munsamy and his believes that the reasons advanced by the Richard’s Bay report she claimed to personal assistant,” says FNB’s head Munsamy and his wife for the payment have written, in order to justify the fee of legal in its affidavit. were “false and mere pretences” and she said she was paid, they found plen- Bank manager Preggy Reddy was that “the funds are being introduced as ty of evidence to show that it had been suspended in July 2011 and he sub- part of money laundering”. hurriedly concocted from a report on oil sequently resigned from the bank. He In correspondence with the bank, logistics produced several years earlier, has since offered to come clean and Adonis claimed that, as a public health and quoting long-outdated statistics. spill the beans on the entire intricate specialist working for Wits Univer- During an insolvency inquiry held web of deals. sity and completing her PhD, she was in May 2014 for Lavela, Andrew Botha The Hawks are investigating vari- tasked to conduct a research project re- testified that he had acted as personal ous charges of money laundering aris- lating to Richards Bay and Mauritius. consultant to Dr Munsamy at a time ing from the case in conjunction with “The sponsors of the project who when Munsamy had come into “a pile the National Prosecuting Authority. commissioned my services indicated of money”, and how he had used it to Munsamy insists that the bank has that the funds of $560,000 is advance go on a property purchasing “rampage” made several false and defamatory payment for the scope of work to be (aided and abetted by Botha, an archi- claims against him and he reserves his rendered. Further funds will be paid tect and former property developer). rights with regard to these. as the project develops over a four-year “The reason why Dr Munsamy had In his 2014 ruling, Judge Suther- period,” she told the bank in an email. a pile of money available is because it land explained that it was not for him In the court papers, the bank lists was the proceeds of the fuel that had to determine whether the allegations several reasons why it is suspicious been shipped to Mozambique instead of of money laundering were indeed true, that, as a medical doctor, Adonis is be- paying Sasol – leaving Sasol to claim but rather he had to determine wheth- ing paid significant sums of money for against FNB on the back of the fraudu- er the bank acted correctly in freezing a petroleum-related research project. lent guarantees that Mr Reddy created the money. “The sole basis in law relied upon to freeze the operation of the account is an alleged power that the bank has in hard knocks in life. I don’t have a for- ple and he’s going to arrest him. terms of an alleged term of the agree- mal education but I’m smart. (I am “So I phone Mahen and I say ‘Ma- ment between the parties.” busy studying for my BComm cur- hen there’s a cop knocking on my The sole question to be determined rently.) He says ‘You’re one of the stu- door at work and he says he believes by the court was therefore whether dents of the university of life’. Now I there’s fraudulent guarantees placed such a term in favour of the bank could realise why the banks didn’t want to at Sasol’. I panicked. Mahen says be implied, as it was not written into fund him. Because he’s a crook and a ‘Don’t worry about it, this is a witch their contract. fraudster.” hunt and he’s shaking the tree to see Judge Sutherland found that it was Reddy won’t answer any questions what falls.’ He says ‘Well, you must not an implied term. On the contrary, about what happened between that do what you like.’ But he warns me: their written contract explicitly pre- time and when he was arrested be- ‘We are a chain put together and you scribed that the bank could only place cause there is still on ongoing investi- can’t act unilaterally on your own. a hold on (or “freeze”) a client’s account gation. Yes, Munsamy’s PA did make You must face the consequences if you on instruction from the Financial In- payments into an account opened in want to withdraw.’ telligence Centre. his mother’s name. Yes, he did issue “Then I knew I was in kak.” “Moreover, the term sought to be fraudulent guarantees. But he won’t The police arrested Reddy and he imputed and its radical intrusion on say why he assisted Munsamy and spent a night in the cells in Germis- the rights of a client far exceed what whether he knew what he was do- ton before appearing at the Commer- Fica authorises the Centre [Finan- ing was wrong. He is adamant that cial Crimes Court in Johannesburg. cial Intelligence Centre] to do. What he was not wilfully participating in a Munsamy sent a legal team over to is sometimes overlooked, is that even fraudulent activity. help. In September 2013 the charges criminals have rights; the more basic “My mother’s account was not were provisionally withdrawn. of which is to be convicted before be- opened for fraud. I had an ITC issue Reddy has decided to speak out now ing punished. With the sole exception in 2008, so I closed my FNB account because of his conscience and because of the process of Asset Forfeiture, pro- and I opened my mom’s account and he feels there is no longer a threat to vided for in Chapter 6 of Poca [Pre- my salary was going into her account. his safety. vention of Organised Crime Act], our That was it.” “I had never been arrested for as law adheres to this order of things. Reddy was extremely surprised much as a parking ticket before. I By contrast, the respondent claims a when in 2011 “this cop comes knock- was not intentionally part of a mon- term that entitles it to freeze R5m of ing on my door and he says ‘I’m inves- ey-laundering ring. I feel absolutely a business for over five months, and tigating Mahendran Munsamy’. My stupid! I was naïve to have done what further claims it may continue to do so heart fell into the pit of my stomach. I did. But I do want that animal ar- until the applicant convinces a court He said this guy had defrauded peo- rested.” n that the bank’s belief in its wickedness

NOSEWEEK February 2017 15 statement. Noseweek put the following questions Despite extensive to Dr Munsamy through his attorney, Rudi Pottas: 1. Dr Munsamy is accused of money investigations and laundering, both in court documents and in court in the so-called Krejcir matter. What is his response to this al- what it believed legation? 2. Dr Munsamy has not been crimi- to be evidence nally charged in relation to the Lavela/ Sapeg vs RMB matter – would he like to respond to the allegations levelled of a vast money against him by the bank in that case? 3. Did he intentionally enlist FNB manager Preggy Reddy to issue laundering scheme, fraudulent guarantees in order to fa- cilitate fraudulent activities? 4. In reply, Dr Munsamy insists the Munsamy won the fraudulent guarantee litigation has nothing to do with the funds trans- ferred from Mauritius but the bank day in court disagrees. What is his version? 5. Reddy accuses Dr Munsamy of being a money launderer and a thief. What is his response to this? 6. Is Dr Munsamy aware that the Hawks are currently investigating other cases (aside from the Swaziland/ Munsamy won the day in court and the Krejcir case) and that other victims bank and its lawyers were left to lick have come forward to claim he has de- their wounds – and pay Munsamy’s frauded them? costs on the punitive attorney-and- Noseweek received the following re- own-client scale. ply from attorney Pottas: It’s unclear why, despite the evidence “Dr Munsamy denies any liability, Radovan of fraud and probable money launder- whether civil or criminal of any nature. Krejcir ing collected by FNB, the National The matters are largely sub judice, Prosecuting Authority (NPA) has not save for the RMB matter where judg- charged Dr Munsamy, his wife or his ment has been delivered. It should be is unreasonable. In my view to imply personal assistant with money laun- noted that the learned Judge Suther- such a term is untenable.” dering relating to this incident. land J ordered that: The actions of Judge Sutherland did take the op- The bank manager, Reddy, was RMB were unlawful; RMB was to re- portunity to lash the law enforcement charged and taken to court but charges lease the funds; and pay costs on attor- authorities for failing to act in this were provisionally withdrawn in 2014. ney-client scale. case. FNB says it has reported all of its in- “Preggy Reddy was the only individ- “The languid, if not moribund re- formation to the NPA and is standing ual to have ever been charged crimi- sponse from the authorities in re- ready to assist prosecutors. nally in the Sasol/FNB matter and sponse to the report by the respondent “First National Bank (FNB) has zero various stories have been touted over a of a possible crime is lamentable. But tolerance for criminal conduct and will long period in order to obtain financial the harsh reality is that a bank is not take the necessary steps to assist the incentives. The allegations as they cur- the sheriff in a frontier town. I refrain authorities in dealing with any crimi- rently stand are denied in the strong- from offering gratuitous advice about nal activity. You will note from the af- est terms. You may also have regard what a bank might do to invigorate the fidavit that the Bank had reported the to paragraph 30 of the judgment of centre, and the police. Self-evidently, facts to, amongst others, the National Sutherland J, which amplifies Dr Mun- if a proper case exists to interdict the Prosecuting Authority. samy’s contentions that no criminal operation of the account, such an appli- “The Bank is waiting for the authori- conduct has been committed by him as cation may be brought by anyone who ties to complete their investigations alleged or at all. has a plausible cause of action.” and, so as not to prejudice the finalisa- “Dr Munsamy has instructed me to So despite extensive investigations tion of the investigations, we are not, place on record that any reckless re- and what it believed to be evidence at this stage, in a position to make any porting, without the necessary verifica- of a vast money-laundering scheme, further comment,” said the bank in a tion, will be dealt with legally.” n

16 Legal hanky-panky after destruction of nice little business

It is widely believed in legal circles that bribery and corruption pervade the Master’s ofce, the division of the Department of Justice that deals with deceased estates and insolvencies. By Jack Lundin

AMSANQA MOYA’S TWO BUSES PLIED As one major creditor owed R12.2m, To satisfy himself that all was in or- the 860km run between Johan- Moya expected that in due course the der Mudenda called the Master’s Office, nesburg and Bulawayo, Zim- trustees would sell Saloojee’s house where clerk Mavis Nkuna told him the babwe – a nice little business. and, after any bond was settled, he Saloojee file was “untraceable”. The fol- Until, that is, he decided to ex- would get at least something back. But lowing month Mudenda spoke to Dep- pandT his fleet with the addition of two two years after sequestration there had uty Master Reuben Maphaha, head of luxury coaches from China, 55-seaters, still been no first meeting of creditors the Liquidations and Insolvency sec- with reclining seats and air condition- and little progress on the winding up of tion. “He confirmed that they were un- ing that would take his business to a Saloojee’s estate. That is in the hands able to locate the file,” says Mudenda. new level. of Pretoria-based Cassim Trust, head- By now Moya had filed a high court The deal was arranged by a 53-year- ed by Zaheer Cassim, a business- res- action against provisional trustees old Joburg businessman Mahomed cue expert and well-known liquidator Zaheer Cassim and Thabiso Moleko; Saloojee who represented a close co- of insolvent estates. MahomedSaloojee and daughter Ra- roporation owned by his wife which It has now emerged that just three zeena; and the Master of the High supplied Combis to the taxi industry. days before Judge Wepener’s default Court seeking that the trustees be re- “Tami” Moya paid R1.3 million for the judgment against MahomedSaloojee moved and the house sale declared im- coaches into the cc’s account at FNB. in March 2014, the Cassim trustees proper and therefore null and void. But when he contacted Shenyang Bril- had signed an agreement of sale to sell At the Discovery of Documents stage, liance Jinbei Automobile in Shenyang the Winchester Hills property – to Sa- the Master’s Office produced a copy five months later regarding progress loojee’s 23-year-old daughter Razeena. of the long-lost file No G1269/2013. It on his order, he was shattered to be Razeena Saloojee had acquired her made bizarre reading. told that the Chinese company does father’s home – a handsome property Cassim Trust’s application to the not make coaches and they had not re- with four bedrooms and three bath- Master for consent to make an urgent ceived his R1.3m. rooms in the pleasant Joburg South sale of the house was dated 17 April On 28 March 2014 default judgment suburb of Winchester Hills – for what 2014. It made no mention of the March was granted against Saloojee by Judge seemed to Moya to be a knockdown R12.2m default judgment against the Willem Wepener in the South Gauteng price of R1.1m. A year previously it had house’s owner. It merely stated that Sa- High Court for R12.2m (the lost coach been valued at R1.75m for a forced sale, loojee’s estate was sequestrated on 25 money plus R11m damages for loss of and its current value is put at R2.4m. October 2013, that the interest on the future earnings). Alarm bells rang in the office of house’s R1.15m bond was increasing Twelve days later, when the sheriff ar- Moya’s attorney, Tendayi Mudenda. Mu- daily, and its sale was in the general rived at Saloojee’s Johannesburg South denda explains that to sell a property in interest of all creditors. home in Winchester Hills to attach prop- an insolvent estate before the Second The letter included Standard Bank’s erty, it was to learn that Saloojee had Meeting of Creditors is a “drastic pro- consent to sell the property, a valuation placed himself in voluntary sequestra- cedure that requires motivation to the and a blank Consent, in duplicate, for tion the previous October, in 2013. Sa- satisfaction of the Master of the High the Master’s signature. loojee’s insolvent estate was now under Court. The Master must scrutinise any Two things aroused the suspicions the control of provisional trustees and such offer and be satisfied that it pro- of Moya and his attorney. The Con- no attachments could be made. tects the interests of all the creditors”. sent form carrying the Master’s stamp

NOSEWEEK February 2017 17 Moya. “This girl was not in my depart- evaluation report is dated 18 January ment when she stamped this letter.” 2016, which raises suspicions as to the Deputy Master Reuben Maphaha, correct date upon which the consent head of Liquidations and Insolvency, was granted.” subsequently confirmed that Dube was Deputy Master Maphaha’s memo only moved to his section as of 3 August recommends “that the matter be inves- 2015. tigated and disciplinary proceedings In her brief responding affidavit in be instituted against the said official, court papers Assistant Master Dube together with enquiring as to the con- says the application to sell the Win- duct of the Joint Provisional Trustees chester Hills property was brought to to ascertain if there were no fraudulent her attention by the provisional trus- activities conducted”. tees, with supporting documentation. Last November a justice department “It was not unlawful to authorise the official told Moya’s attorney Tendayi provisional trustees to sell the property Mudenda that “the investigation was and the sale was in line with the valua- finalised and the forensic report was tion report,” she says. distributed to the relevant internal The Master has supplied Moya’s at- stakeholders.” torney with an explosive memo from And Martin Mafojane, Chief Direc- Deputy Master Maphaha to Leonard tor (Coastal Operations and Insolvency Pule, Master of the South Gauteng projects) at the Department of Justice High Court. Dated 6 July last year it has told Mudenda: “Our departmental begins: “The purpose of this memoran- Forensic Unit reports are not available dum is to inform the Master of the fraud for public consumption. These are not committed by Ms Dube when authoris- shared with outsiders. You are advised ing the sale of the immovable property to work through the Deputy Informa- in the insolvent estate Saloojee, and for tion Officer in terms of the Access to the Master to cause a forensic investi- Information Act.” gation to be conducted against the ac- A fruitless exercise for Tamsanqa tion of Ms Dube. Moya, the complainant in this case – Tamsanqa Moya The Consent to Sell was authorised and out of pocket to the tune of R12.2m, by Dube with stamp number 36 and the which has now risen to around R20m memo adds that “Ms Dube was in Trust with compounded interest. Access to dated 24 April 2014 had an indeci- section during the period in which the Information applicants are also han- pherable signature. And the valuation consent was granted”. dled by the Department of Justice, report, with a forced-sale valuation of “Furthermore, it was noticed that the whose Deputy Information Officer, Ms R1.1m, was dated 18 January 2016 – ND Louw, told Mudenda in December 21 months after its supposed submis- that his application for access to the sion by Cassim Trust. forensic report had been refused. “No Last June 48-year-old Tamsanqa ‘There’s something decision in the exercise of a power or Moya visited the office of Assistant performance of a duty has taken place Master Matome Moshoma in the Liq- as yet and the release of the record uidations and Insolvency Section. “He really fishy going would be premature, resulting in the said that Saloojee’s file No G1269/2013 frustration of the operation of the De- had been under his control, but went on here,’ Moshoma partment.” missing,” says Moya. It was Moshoma, The R1.1m “forced sale” valuation for he adds, who revealed who had signed allegedly told the Winchester Hills property was done the controversial Conset to Sell. The by Pretoria valuer Anrie Erasmus, who Master's stamp on the consent form tells Noseweek that she has done nine bears the number 36. This, Mashoma Moya. ‘This girl valuations for Cassim Trust since 2013, told Moya, identified its holder as an- but has never met Zaheer Cassim. other Assistant Master, Pamela Dube. was not in my Asked to explain how her 2016 report But when Dube stamped the consent came to be attached to the 2014 ap- form, said Assistant Master Moshoma, plication to sell to the Master’s Office, she wasn’t working in the Liquidations department when Erasmus says: “I received a request section (on the 7th floor of the Master’s from Frieda Roets from Cassim Trust Office at 66 Marshall Street, Joburg). she stamped this in January 2016. When I did a Light- She was working in Trusts and Cura- stone property search I saw the owner/ torship, (down on the 3rd floor). buyer was Razeena Saloojee. I contact- “There’s something really fishy go- letter’ ed Frieda and told her that the prop- ing on here,” Moshoma allegedly told erty had a new owner. She asked me to

18 OUTsurance’s Youi hooey

OR MISLEADING CONSUMERS WITH Her original investigation started ambush sales tactics, OUT- with a call to Youi looking for an insur- surance’s wholly-owned New ance quote on a motor vehicle. Three Zealand subsidiary, Youi, was minutes into the call, the salesperson fined NZ$320,000 (R3.08 mil- claimed falsely that Youi’s computer lion)F in the Auckland District Court system couldn’t produce a quote with- in December. The NZ Commerce Com- out payment details being entered. mission had filed 15 sample charges Youi went on to debit $592 from her relating to misrepresentations made credit card without permission. to consumers by Youi salespersons As soon as Clement’s article was between July 2014 (when the insurer published, victims started coming for- opened shop) and February 2016. The ward. Then eight staff members made South African-owned insurer pleaded contact and told how, rather than being Zaheer Cassim guilty to charges that it: a one-off rogue employee, the extraor- l made false or misleading repre- dinary sales methods were used by sentations on its website; Youi staff across the company’s South do a valuation on the previous owner’s l made false or misleading state- African, Australian and New Zealand name [MahomedSaloojee] for the pe- ments during telephone sales calls, offices. The sales methods that they riod of 2014.” including claiming that bank or credit were pressured to use to ambush cli- In other words, the valuation that card details were required to generate ents had been schooled into them by gives the impression it was made to a policy quote; managers. support the Master’s decision to allow l asserted a right to payment for The company continues to sell poli- the property to be sold to Razeena Sa- unsolicited insurance policies by send- cies that simply don’t cover the basics. loojee for R1.1m in 2014 was indeed ing letters demanding payment and/ The standard household contents poli- created in January 2016 and only re- or debiting consumers’ bank or credit cy, for example, doesn’t include away- cently inserted by someone into the card accounts without their express from-home cover that is standard with Master’s file. permission or knowledge; and all leading insurers. Tamsanqa Moya’s bus business col- l sent invoices to consumers in re- Other ways that staff members rou- lapsed after the above events and he’s lation to unsolicited insurance policies tinely reduced premiums included now producing vegetables and chick- that did not specify that the consumer that, when certain models of car were ens from a plot near Krugersdorp. was under no obligation to pay for the expensive to insure, they would say Assistant Master Pamela Dube did policies. they couldn’t find that model on the not respond to our request for com- The Commerce Commission’s in- computer and suggest they input an- ment. vestigation was triggered by a series other (cheaper) model “in the mean- Mahomed Saloojee’s attorney Patrick of articles written by investigative time”. Payne of Leahy Attorneys says: “The journalist Diana Clement for the New The change meant they would not be questions posed under cover of your Zealand Herald’s online news site In- covered by the policy should they have letter concerns a factual circumstance terest.co.nz. While Clement is pleased to claim. Also, sales staff would often which is presently still to be adjudicat- with the outcome of the investigation, put words in customers’ mouths and ed upon by a court of law. Sensitised to she is not convinced the company has then rush on to the next issue, hoping the aforesaid, we regard it inappropri- mended its ways. the customer wouldn’t notice they had ate for the facts (which are still to be “Every couple of days someone is agreed to include data on their policy pronounced upon as aforesaid) and is- complaining on social media about that wasn’t true – such as the age they sues concerning the pending litigation them,” she later told Interest.co.nz. began driving. to be ventilated in a public forum, and One victim found that the Austral- particularly in the media, until such ian-based staff member had entered time as the pending litigation has been that her car was garaged at home, finalised.” even though she had l Last year Justice Minister Michael no garage. Had Masutha reported to the National As- her car been sembly that Chief Justice Mogoeng stolen, Youi Mogoeng had expressed concern over could have fraudulent court orders and the misuse declined the of court stamps. n claim. n

NOSEWEEK February 2017 19 Heroic doctors’ torment

Dedicated medics hounded by self-serving politicians. By Chris Bateman and Jack Lundin

SELENI PROVINCIAL HOSPITAL to puff the tinder into full-scale con- applications of two others who had al- is in the sticks in a dis- flagration. At a rowdy public meeting legedly falsified their addresses. But tant corner of northern in a community hall – that would not that is precisely what head office had KwaZulu-Natal, yet this have been built without Fredlund’s advised me to do!” remote state hospital is personal drive and enthusiasm – one Fredlund instructed the 20 general renownedM in specialist medical cir- politico accused the CEO and his man- orderlies he had appointed, as well as cles for its stewardship of the strange agement of corruption over the order- five suspended managers, to return to Mseleni joint disease. This crippling lies’ recruitment, including the tak- work. form of endemic osteoarthritis, cause ing of backhanders in return for jobs. But the provincial health depart- unknown, is curiously confined only Wildly, the politician screamed for ment then instructed him to bring to the local population, to whose long- Mseleni Hospital to be torched. charges against his chief matron, HR suffering joints it brings stiffness and A long list of historical grievances manager and systems manager, for agonising pain. was produced. Two ANC candidates their roles in hiring the orderlies in The rare condition targets mainly in the local government elections, one the first place. It was nonsense from the hip and, at Mseleni, Dr Victor a former Mseleni Hospital staffer, Ze- hell. Fredlund and Dr Kobus Viljoen regu- nzele Ngubane, vied with one another “My real frustration is that this is larly performed two total hip replace- to heap on the vitriol as they demand- distracting from the battle of fighting ments every Wednesday. Until, that is, ed the heads of Fredlund, the hospital disease and poverty,” Fredlund said at the day they set about filling 20 va- matron, its human resources officer the time. “If you’re looking for a battle cancies for general orderlies who are and the systems manager. Without fur- there are plenty of things out there to required to keep the hospital running ther ado, all four were put on enforced fight, not each other. smoothly. leave by the provincial health depart- “I run quite a proficient clinical Recruitment of the orderlies fell ment. Fredlund’s removal was “for his team and I’m not indispensable. There to Fredlund, its 60-year-old London- own safety” bureaucrats continued to just wasn’t that much senior cover in trained chief executive and recent insist, long after any perceived threat my absence. I cannot say how many winner of the Rural Doctors of South to the veteran had evaporated. patients died or not, because I wasn’t Africa’s Lifetime Achiever Award. Gui- While Fredlund, a devout Christian, there. But one friend of mine, a local tar-playing Fredlund, who can speak sat at home for months there were no pastor and patient, died while I was and sing in fluent Zulu, has worked hip replacement operations at Msele- away. My medical staff did a fantastic at the former mission hospital for 35 ni. Fredlund’s co-surgeon Kobus Vil- job in my absence under extreme pres- years – his entire career. joen, standing in as CEO, was too busy sure and abuse. But they were trying With poverty endemic in this isolat- keeping the 184-bed hospital running to save a sinking ship.” ed spot, 60km from the Mozambique to be able to perform major surgery. In Until the KwaZulu-Natal provincial border, the locals survive on fish they protest at his boss’s treatment Viljoen health department “took our manage- catch from Lake Sibhayi and the crops stopped shaving on March 3, the day ment apart and planted an atom bomb” they grow. So when 20 rare vacancies he took over, mowing off his impres- as Fredlund put it, Mseleni Hospital came up at Mseleni Hospital the 2,720 sive beard only when Fredlund was had been widely lauded. It had recent- hopefuls who applied felt strongly cleared of all charges six months later. ly won the Batho Pele Service Deliv- that the jobs should go to locals, a view “It was just bizarre,” says Fredlund, ery Award, a national honour across loudly reinforced by politicians at row- who displays no rancour at his treat- all government departments. Before dy rallies in the area. ment. “The charge was that I wilfully that, it scooped the KZN Premier’s When it emerged that two of the and deliberately abused my power Service Excellence Award, and before applicants were not in fact locals and in dismissing a guy who failed to de- that, the KZN health MEC’s Service had falsified their addresses, these clare an assault conviction in his job Excellence Award. firebrand politicians didn’t hesitate application, and that I withdrew the Thus did a weak-kneed provin-

20 Heroic doctors’ torment

Clockwise from top left: Rachel and building of a direly-needed HIV/Aids Victor Fredlund; Roger and Michelle orphanage near the hospital. In June Walsh; and Kobus Viljoen, who stopped 2015 an electrical fault caused a fire shaving in protest at Fredlund’s that destroyed the facility, with one suspension child fatality. The 55 orphans were farmed out to institutions across the country and Rachel Fredlund has al- cial health department, desperate Nxumalo, intervened, berating the ready raised R2 million of the R3m to dampen the rage of ignorant, self- ranting political agitators and threat- needed for its rebuilding. serving politicians, abandon Dr Vic- ening to banish them from the district Switch now to Grahamstown, bas- tor Fredlund, a tireless public servant if they continued to “act like children”. tion of Rhodes University and sup- who had led the provision of primary The chief invited Fredlund and his posed centre of civilisation in the health care to a community of 90,000 wife Rachel over for supper, apologis- Eastern Cape. There, one can find people since 1981. ing for what had happened. Fort England Psychiatric Hospital, a However, this remarkable man has Rachel Fredlund is as committed to 313-bed state relic is one of the old- not been entirely without support. At the local community as her husband. est mental institutions in South Af- one stage the local chief, Inkosi K T She provided the impetus for the rica, established in 1894. Its facilities

NOSEWEEK February 2017 21 include a drug rehab unit and a maxi- Mail Grocott’s Picture: mum security ward for the treatment and rehabilitation of high-risk state patients referred by the courts. This time it’s the unions that are af- ter this hospital’s chief executive, Dr Roger Walsh, baying for his dismissal and the removal of his name from the board at the main gate and at the en- trance to his office. Last July, 30 chanting members of three unions – the National Educa- tion, Health and Allied Workers’ Un- ion (Nehawu), the Democratic Nurs- ing Organisation of SA (Denosa) and the National Union of Public Ser- vice and Allied Workers (Nupsaw) – stormed the wards, flourishing sticks and blowing whistles. They ordered hospital workers out on strike, threat- ened to burn their homes and at one Protesting workers at Fort England hospital in Grahamstown stage allegedly assaulted Walsh. Days later the situation escalated, standards” score for cleanliness, shop vibrant community newspaper, got its according to a memo from hospi- stewards were enraged that cleaners hands on a summary of its findings. tal managers addressed to Eastern had to work a full week and called off This stated that Da Silva had found Cape Department of Health bosses. negotiations until Walsh was fired. no evidence to support allegations of It reported “ongoing industrial ac- Eastern Cape Health MEC Dr Tho- mismanagement, corruption or negli- tion, widespread intimidation, forced bile Mbengashe was swift to oblige, gence by hospital management. Nei- removal of staff from wards, offices saying Walsh’s removal was “in the ther had disciplinary procedures been and essential services, and threats of best interests of patients, continued flouted. violence to clinical staff who were at- service-delivery and his own safety”. “The lack of communication between tempting to prepare food in the kitch- Walsh resisted department officials’ management and the labour force ap- en and dispense medication in the suggestions that he be redeployed to pears to have originated from a time wards.” health department headquarters in when the workforce stopped attending Patients – some, “extremely dis- Bhisho. The department has refused ITU meetings after November 2015,” turbed and needing constant super- to reinstate him at Fort England, al- reads the summary. “The reason for vision” – plus 26 prisoners and some though two advocate-led probes have the withdrawal of the workforce is of the “most difficult and dangerous” cleared him of a long list of spurious that management took decisions with- state patients in the country – were union charges. out consultation and the workforce left confused and vulnerable. “With- An independent inquiry by advocate felt marginalised and excluded.” out proper supervision there a danger Amelia da Silva, commissioned by the The advocate’s report summed up of violence, escapes and relapsing of department, yielded a 150-page report the overall situation as one of work- psychosis going unnoticed,” the memo that has been kept under wraps. How- place conflict. It recommended that in- warned the Bhisho health department ever, Grocott’s Mail, Grahamstown’s dependent HR professionals and con- bosses. flict management experts be engaged What was the problem? Walsh’s to resolve the impasse. woes began shortly after his arrival One striking worker told Grocott’s in 2013, when he tackled mounting Mail that CEO Walsh was “arrogant. tension over nurses’ scope of practice He takes decisions without consult- at the institution. This resulted in a Walsh raised the ire of ing. It’s his way or no way.” one-day strike, to which the new CEO Democratic Nursing Organisation responded with a no-work-no-pay the unions when he of SA (Denosa) member Ntombizodidi ruling. Ngcosini said: “This [unhappiness] has Under orders to reduce costs, Walsh switched seven cleaners been a long-standing problem since raised the ire of the unions when he 2014. It is the culture of our employer switched seven cleaners from double- that they don’t take people seriously. pay Sunday shifts to Mondays – and from double-pay Sunday We have been crying for a long time.” increased their number of working However, an anonymous hospital days from four to the normal five days shifts to Mondays worker told Grocott’s Mail: “This situ- a week. Although this immediately im- ation is beyond what Fort England can proved Fort England’s “national core manage. It needs decisive leadership

22 (from province) to resolve this. Look, dures followed. Roger Walsh might not be popular, but KwaZulu-Natal health department he is the best CEO the institution has spokesman Sam Mkhwanazi says: had for a long time.” “There are ongoing disciplinary mat- Following an earlier workers’ peti- ters involving a number of officials tion calling for Walsh’s removal back from Mseleni Hospital. However, it is in November 2015, a letter to the not the practice of the department to health department signed by eight ventilate in the public [sic] internal senior staff members said that “whilst and confidential matters which are there may be some that disagree with employer/employee related.” GRAPHIC DESIGN | COPYWRITING | PHOTOGRAPHY the leadership style of the CEO…” The Eastern Cape health depart- WEB DESIGN | ILLUSTRATION | SOCIAL MEDIA AND MORE since Walsh arrived, “he has managed ment refuses to explain itself, despite GET IN TOUCH TO TELL US ABOUT YOUR DESIGN NEEDS the institution with fairness, innova- repeated email, SMS and voice mes- [email protected] tion, enthusiasm, energy and dedica- sage requests. Not surprising, consid- tion. His commitment to Batho Pele ering the extent of skulduggery and principles, streamlining administra- political manoeuvring within this ex- tive and managerial efficiency, en- cuse for a provincial health authority. riching the work conditions of all em- Latest victim of the toxic hellhole is ployees and, above all, improving the deputy director-general Karen Camp- IF YOU RENT PROPERTY quality of patient care, is clear to us.” bell, Bhisho’s long-serving and highly- KEEP THIS NUMBER Today Dr Walsh is still trapped in regarded human resources head, who the ongoing lock-out impasse. His became a target after challenging I CAN HELP YOU WITH specialist physician wife Michelle has union pressure to forcibly upgrade meanwhile accepted a post at Settlers’ swathes of healthcare workers, osten- PROBLEM TENANTS Hospital in Grahamstown. sibly to stave off strikes. She’s had to I CAN ASSIST YOU WITH THE Last December seven top manag- be hospitalised, a nervous wreck. RENTAL HOUSING TRIBUNAL ers at Fort England hospital accused l As Noseweek went to press, the Bhisho of acting illegally in appoint- KZN health authorities launched an- IF YOU DON’T NEED ME NOW, ing an interim acting chief executive other attack on Fredlund. This time, YOU WILL LATER while not suspending Walsh or placing charging him with irregularly ap- him on special leave. pointing clinic nurses in 2014. He has JOHN: 082 901 0824 Commenting on these doctors’ tales, been “relieved of his duties” as CEO Dr Desmond Kegakilwe, chairman of of Mseleni Hospital and the CEO of Rural Doctors’ Association of South neighbouring Bethesda Hospitalis Africa (RuSASA), describes Fort Eng- now overseeing both facilities. Fred- land’s Roger Walsh and Mseleni’s Vic- land continues working at the hospi- SPECIAL OFFER! tor Fredlund as dedicated, vocation- tal as mere medical officer while he driven doctors who helped deliver awaits his next hearing on 17 January. Book two 5cm boxed ads healthcare independently of political l The Port Elizabeth Labour Court and get a third dispensations or changes. is currently hearing a dispute involv- FREE “But no matter how good and dedi- ing a R2m Vodacom tender, for which cated you are, you will always end up the funds were allegedly misused by for just R980 per ad (plus VAT) the victim when you are the obstacle Bhisho to boost the salaries of senior to the agenda of corrupt individuals,” admin staff and Nehawu members. (R420 discount!) says Kegakilwe. “We’re going to be This is in addition to the R40m of watching these and similar cases very budget meant to be used to recruit vi- [email protected] carefully in future.” tally needed healthcare professionals Dr Mzukisi Grootboom, chairman that was allegedly also misappropri- 021 686 0570 of the South African Medical Asso- ated to promote admin staff. n ciation, slams KwaZulu-Natal health department for “turning a blind eye for political expediency”. SAMA was “extremely perturbed” at the treat- BEFORE YOU BLOW THE WHISTLE! Whistle-blowers do the right thing but ment meted out to doctors who had most pay a dear price. Ethics Africa offers confidential and legally privileged dedicated most of their lives to servic- ing needy communities, especially in a consulting services designed to protect the whistle-blower from fall-out country with a dire shortage of rural whilst delivering the message to the right recipients. Call 0861 266759. doctors and basic healthcare services. SAMA, declares Grootboom, will not rest until doctors Fredlund and Walsh are fully reinstated and proper proce-

NOSEWEEK February 2017 23 We knew there were things Draining that we knew and then there were things that we knew we didn’t know. Now Tshwane’s I am fnding out that we didn’t know what we would swamp never have guessed. Tese are the things that are Mayor Solly Msimanga coming out right now Solly Msimanga, wants to focus on service Executive Mayor, City of Tshwane delivery. By Susan Puren

INCE AUGUST LAST YEAR THE CITY the city’s supply chain who were alleg- “We’re talking billions of rands in of Tshwane’s metro municipal- edly working together to defraud the corruption and more cases keep on ity and its DA mayor, Solly Msi- municipality on a daily basis. Family coming in,” says Msimanga. manga, have decorated many members and friends of officials were He revealed that in one instance, pages in Noseweek, which has supplying sundry goods ranging from more than R100 million was paid out exposedS a litany of fraud and corrup- nails to mini sub-stations, seemingly to build a sub-station in Mamelodi tion left behind by the previous regime from the same address – without a but “not a single pole was planted”. and its ever-so greedy cohorts. proper office or workshop and without In another instance, more than 5,000 Shortly after being sworn in, Msi- being registered for VAT. government officials were found to be manga was confronted with the so- Some of the perpetrators were grad- beneficiaries of the city’s indigent pro- called shoe polish scandal. Tens of uates from the Tshepo 10,000 project gramme. Also, many ghost employees thousands of small tins of Kiwi shoe set up by the previous administration seemingly haunted the corridors – and polish had been ordered over the to train 10,000 of the city’s unem- the payroll – when the ANC adminis- years at three times the retail price ployed youth in entrepreneurial skills. tration was running the capital. and nobody was able to say why and They were then listed as preferred Several multi-million-rand con- for whom. Also stocked up in excess in suppliers of goods to the municipality. tracts have been put on hold, includ- the city’s warehouses were household Msimanga says the abuse of funds ing one for the supposed management cleaning products like Surf and Handy by the previous administration and of the city’s fleet of vehicles. This was Andy – purchased by the thousand in some officials meant that young people after 400 vehicles were found hidden the smallest packaging available but ended up being trained as fraudsters in workshops across the city. “We were sold to the municipality at a 100% rather than genuine entrepreneurs. renting trucks at exorbitant amounts mark-up on the wholesale price. The Tshwane’s new leadership has put a while ours were standing there un- most shocking was the energy saving system in place that cannot easily be used,” says Msimanga. globes that Tshwane purchased at bypassed, Misimanga told Noseweek. So far 15 officials have been sus- R300 each, while Makro was selling Asked about the saga of the Pretoria pended, four fired and a director in the same items for R79 each. City Hall restoration project (nose207) supply chain management was moved The household cleaning stuff was that turned into a very costly down- to another department. meant for elderly or indigent house- grade instead, Misimanga said it had “It’s a shame, but I am not going to holds needing assistance, Msimanga been managed by his predecessor’s spend the next five years digging, I tells Noseweek, as he is interviewed in chief of staff Ernest Shozi. Shozi and want to focus on delivery and I want his office in the municipal building in two others were criminally charged to focus on getting the job done.” Centurion. “But it does not justify the months ago but have not yet appeared The digging is now left in the hands money spent, which could have been in a court. Meanwhile one of the trio of the metro’s newly founded inde- used in a more beneficial way.” still works for Tshwane, and another pendent investigative unit. The new In November last year Noseweek has since been employed by a different administration also established its named several vendors and officials in municipality. own drug squad – a first in Africa for

24 Solly Msimanga a municipality – with 76 cadets that came up, when we went in where we went through training, some with the shouldn’t…” FBI. In just a few weeks they have Msimanga’s recent visit to Taiwan to closed down three drug manufactur- attract investment to the city caused ing labs in the capital. a huge uproar in the government and Tshwane has a current deficit of the ANC caucus in Tshwane. Some R2 billion, but Msimanga laughs even called it an act of treason be- about the threats to place the city un- cause of the government’s so-called der administration and says that 70% One China policy. of municipalities in the country should The Tshwane mayor is adamant be under administration if the criteria that he had permission from the De- are what Tshwane is going through. partment of International Relations “If Tshwane were to be put under and Co-operation (DIRCO) – a so- administration it should have been called note verbale – to go to Taipei. done two years ago when this PEM “DIRCO even arranged for me to use thing [prepaid electricity meters] came the diplomatic lounge at OR Tambo up, when the broadband contract airport and I had South Africa’s rep- resentative waiting for me on arrival in Taipei. But a DIRCO spokesperson Msimanga laughs then phoned my office just before the plane departed to say if I leave, they about threats to would run a story.” The irony is that those who were place the city under trying to score easy political points had egg on their faces: it soon emerged that several government ministers, administration. In deputy ministers and at least two ANC mayors have visited Taiwan in that case, he says, the recent past. “I saw their photos there. And some 70% of municipalities of the factories confirmed they had been funding the governing party. I should be under will reveal their names, if the govern- ment continues to press the point,” Msimanga told Noseweek. administration See Editorial – Ed. n

NOSEWEEK February 2017 25 Another year in Pondoland They may not ofcially be married, but everyone can see SANRAL and the Australian mining company are having an afair. By John Clarke

NE YEAR AGO, NEAR THE other people who are against mining. picturesque Wild Coast village That is a gross caricature. The conflict of Mdatya, while the soothing is between a mining company and a strains of the Christmas carol community who do not want mining.” Silent Night, Holy Night were The full interview, conducted after stillO echoing tidings of goodwill and the government’s inept attempt on 18 peace to all humankind, another child July 2016 at intervention – supposed- was born in the early hours of New ly a “peace-building outreach” – (See Year’s morn. Pondo People Power on YouTube.). Akolwa Ndovela came into the The event descended into chaos world, not in a stable but under a when question time arrived – a chaos Waterberry tree where her mother that only Nonhle Mbuthuma, leader was hiding with her older siblings, and celebrated spokesperson for the having been chased out of their home crisis committee was able to calm, to by armed thugs intent on clearing the acute embarrassment of Deputy the way for MRC Ltd, an Australian Ministers Godfrey Oliphant (Mineral mining company, and their local BEE Resources ) and Maggie Sotyu (Police) partner Xolco to mine their ancestral who were present. lands for titanium. After the local government elections Arrests were made, but that did not – which delivered significant gains end the conflict. On 22nd March Sik- for the anti-mining coastal residents, hosiphe “Bazooka” Radebe, chair of with the election of Mzamo Dlamini the Amadiba Crisis Committee (ACC), as ward councillor for Ward 28, in who opposed MRC and Xolco ambi- which the mineral deposits lie – the tions, was brutally murdered. No ar- Minister of Mineral Resources, Mose- rests have yet been made. Fellow ACC benzi Zwane, signalled his intent to leaders Nonhle Mbuthuma and Mza- declare an 18-month moratorium on mo Dlamini have feared for their lives the mineral prospecting, while Spoor New Year baby born under a bush as ever since. Shortly before he died Ba- and the Legal Resources Centre have her mother fed rampaging gunmen zooka had warned them that he had lodged an application on behalf of the learned of a hit list. He was the first Amadiba Crisis Committee (ACC) and name. They were second and third. local residents in the North Gauteng mining protagonists to continue their Will 2017 be another annus horribi- High Court for a declaratory order to ruthless co-option and subversion lis for the families who have been ter- establish that prior, free and informed strategy. rorised with increasing intensity ever consent of directly affected communi- “We now know that the moratori- since 2002 when MRC announced its ties is an absolute constitutional pre- um is not in effect” the ACC said in a intention to seek mining rights? condition for the state to award min- statement on 24 November 2016. “To- The government’s mishandling of ing rights to anyone. day, DMR officials refused to answer the volatile situation before and since But, alas, peace has not returned. repeated questions on the matter. In- Bazooka’s murder has done nothing to DMR has arrogated to themselves the stead they tried to establish a ‘Tech- ameliorate what has all the appear- role of peacemaker and mediator de- nical Committee’ under the ‘Mining ance of a civil war in the Amadiba spite their clear intention to promote Health and Safety Inspectorate’!” community. mining, and the ACC is questioning The ACC leaders left the meeting in But, as human rights lawyer Rich- whether Zwane has really declared disgust, stating “DMR wants to have ard Spoor explains: “The conflict is not a moratorium, or whether that was a committee to bulldoze a process that between some people who are for, and all just a bluff to create cover for the can end in mining of our land, no mat-

26 ter the bloodshed. DMR wants a house that the community should “deal with fected and because the two schemes without foundation. As ACC we will them”. are mutually interdependent. You not be a part of that. We witnessed Given the violent death of Bazooka can’t mine successfully without an ac- three hours of confused tactics from Radebe, Cullinan has warned that “vi- cess route, and you can’t build an ex- DMR… cooking all dishes in one pot.” olence against the known opponents pensive road without a revenue source Meanwhile, as DMR’s unappetising for the N2 Toll Road is a distinct pos- to pay for it. They might not have of- concoction was being spurned by the sibility”. ficially married but everyone can see ACC, retiring Sanral CEO Nazir Alli Nonhle Mbuthuma, spokesperson SANRAL and the mining company had been desperately working to try for the Amadiba Crisis Committee, are having an affair.” and force a pre-cooked meal on the is scathing: “Save perhaps for certain To add to SANRAL’s woes, a report same community: his long-cherished mining companies, SANRAL must by two respected transport econo- ambition to tame the Wild Coast with be the most ruthless and dishonest a “troll” road. company in South Africa. SANRAL After the setback of having the managers and consultants lie as they first EIA report on the N2 Wild Coast drink water, not only in media, but “green fields” section rejected on Min- also in sworn affidavits and at commu- isterial Review in 2004, he was over- nity meetings. That is why SANRAL heard saying he would not retire until had to withdraw four forged affidavits he had seen it built. But the Amadiba from court when fighting against the coastal residents – savvied up from Amadiba coastal community”. their experience with DMR’s duplici- With characteristic contempt, ties – has run rings around Alli. Alli’s last stand before he retired was On YouTube, see Sanral’s Shortcuts to have his chosen contractors com- on John Clarke’s blog (www.icosinda- mence preparatory work on the two ba.co.za) where it is revealed how sig- largest bridges for the haul roads. natures were forged and fraudulent This is despite a pending high court affidavits lodged to support Nazir Al- review, brought by local residents (for li’s claim that SANRAL enjoyed com- much the same reasons that apply to munity support and that the commu- the Xolobeni mining rights) to seek nity had never mandated Cape Town another judicial order to set aside the environmental law firm Cullinan and environmental authorisation by the Associates to oppose the road on their Minister of Environment. behalf. Perjury charges have since Alli still denies any purposeful con- been laid against Alli by OUTA. nection between the new N2 shortcut Alli routinely used interlocutory and the mining scheme, but Margie “lawfare” tactics as an attrition strat- Pretorius, chair of Sustaining the Wild mists, Professor Gavin Maasdorp egy against his civil society opponents. Coast, the NGO that works with the and Allen Jorgensen, has now recom- That strategy has begun to backfire ACC scoffs: “They are connected be- mended that the N2 Wild Coast toll since the Cape Winelands SCA judg- cause the same communities are af- road should be suspended “until the ment in favour of the City of Cape economic viability of the road has Town. Cullinan was the instructing been thoroughly reviewed in the light attorney for the successful applicant. of our criticisms”. Yet the Big Lie strategy continues. The ACC is scathing: Finance Minister Pravin Gordhan In November SANRAL hired Ntsiki announced in his MTBR that special Ngalo – who has previously served as funding would be allocated to San- spokesperson for the claimant king ‘Save perhaps for ral. SWC is urgently seeking a meet- in the Pondo Kingship dispute (nos- ing with the Treasury, to alert them es195;200&201) – to organise com- certain mining that SANRAL’s declared intention to munity meetings to persuade people commence construction of the R3 bil- to support the road. Ngalo reportedly lion mega bridges (see nose205) will promised each affected household companies, SANRAL amount to pouring much needed fiscal R4 million compensation to “make resources into assets that will likely them rich”. must be the most end up stranded. Violating the protocols of local cus- “We have seen what has happened tomary law, he went so far as to in- ruthless and at Standing Rock (where an American cite the community against Nonhle Indian community successfully re- Mbuthuma and the main applicant in sisted plans to have a major oil pipe- the N2 review, Sinegugu Zukulu, by dishonest company line cross their tribal territory)”, says stating they are “the only ones stand- Margie Pretorius. “Does the govern- ing between the community and the in South Africa’ ment really want that to happen now promised jobs and compensation”, and in South Africa?” n

NOSEWEEK February 2017 27 Nigeria: Partisan politics runs riot

President Buhari will struggle to gain the upper hand on corruption and security while party rivalries block economic change

Nigeria’s President Muhammadu Buhari

OR AN ESSENTIALLY APOLITICAL of displaced people are returning to the makeshift camps. Intelligence ex- president, Muhammadu Buha- the region. Although Boko Haram has perts say that a better-organised fac- ri of Nigeria faces a nightmare been pushed out of most of the territo- tion of Boko Haram is still planning 2017 as party rivalries loom ry it occupied, including large swathes a big attack on an international insti- larger and larger, obstructing of the expansive Sambisa Forest in tution to further weaken the govern- manyF of his economic and social re- Borno State and neighbouring Cam- ment’s standing. forms, as well as his cherished cam- eroon and Chad, it retains a deadly All this is being seized on by Bu- paign against corruption. The repu- ability to launch hit-and-run opera- hari’s political opponents, within and tation of Buhari, a retired general tions in all three countries. These of- outside the governing All Progres- who makes no secret of his scepticism ten involve sending conscripted sui- sives’ Congress (APC). Whether it about party politicians, could now de- cide bombers, usually small girls, into concerns the clashes between Fulani pend on how his team manages rela- marketplaces and mosques to kill as herdsmen and settled farmers in the tions with the faction-ridden National many people as possible. Unquestion- Middle Belt or the worsening con- Assembly. ably, Buhari’s new commanders have frontations between militant Shia This year looks like sink or swim for improved the military’s response and Muslims and the military, Buhari is the government, especially without a intelligence gathering but its resourc- accused by his opponents of refusing dramatic improvement in economic es are stretched over an area about to back political or negotiated settle- conditions. Even Buhari’s efforts to re- half the size of Western Europe, with ments. Despite a recent court order solve the myriad security threats are poor roads and weak communications. for the release of Ibrahim el Zakzaky, being undermined by partisan ma- Equally important will be how the leader of the (Shiite) Islamic Move- noeuvres. government handles the aftermath of ment of Nigeria, there is little sign Buhari starts the year as the threat the Boko Haram crisis: the displaced that the army will comply. of Boko Haram’s Islamist fighters con- masses face malnutrition, and lo- Opponents make the same criticism tinues to cast a pall over the north- cal and international human rights of the government’s crackdown on the east, even if hundreds of thousands groups have condemned conditions in Biafra independence movement. The

28 Africa Confidential

leader of the Indigenous People of Bia- but now it seems that they are organ- provisional head, Ibrahim Magu. fra, Nnamdi Kanu, remains in deten- ising a political alternative: the “Mega Along with respect from the mili- tion and protests in favour of Biafra Party”, which would group their own tary, fighting corruption is still Buha- continue. band of supporters with other APC ri’s main selling point but that could Regardless of whether criticisms of dissidents together with the rump of change unless there are some high- government tactics are in good faith, the opposition People’s Democratic level convictions and asset seizures in they are beginning to be taken seri- Party (PDP). 2017. His predecessor Goodluck Jona- ously by Buhari’s legions of support- As Tinubu and Atiku are both bil- than’s allies, including former Petrole- ers. Indeed, the only group that the lionaires, they have the wherewithal um Minister Diezani Alison-Madueke; government has seriously tried to and probably the enthusiasm to fi- former National Security Advisor, draw into negotiations is the Niger nance the new party. Atiku could run Colonel Sambo Dasuki, and even ex- Delta militants. That seems directly for the presidency and Tinubu would presidential wife Patience Jonathan linked to their ability to inflict still be in his favourite role of kingmaker- are targets but are fighting back hard more damage on an economy stagger- in-chief. APC insiders say that both on the legal front. ing under crashing oil prices. Some men have lost the last vestiges of Bu- In the PDP its former leader, Jona- sort of deal seems likely between the hari’s trust. than, keeps a low profile. Infighting government and the Delta militants Senate President Abubakar Bukola continues between the factions of this year: Buhari made a special ap- Saraki starts 2017 on better terms Ahmed Makarfi and Ali Modu Sher- peal to the region in his New Year with Buhari than he was a year ago, riff. Some say that Tinubu will ally message. partly because he has used his politi- with the PDP’s Makarfi faction in the Nigeria starts the year in the eco- cal weight effectively. It falls partly to planned Mega Party. nomic doldrums. It has slumped into Saraki to persuade his fellow senators After the disputes over the Rivers recession for the first time in 25 years, to back the government’s plan to bor- State election rerun last month, there with manufacturers complaining at row US$30 billion for infrastructure will be an increasing focus on the per- foreign exchange shortages and re- projects to bridge the financing gap formance of the Independent National strictions. Banks too are under pres- in the 2017 budget. Yet Saraki is not Electoral Commission under its new sure, with some predicting a rerun of completely out of the danger zone. management. the 2009 crisis, when the Central Bank His Code of Conduct Tribunal trial for Niger Delta militancy and its po- of Nigeria intervened and took over false assets declaration, adjourned un- litical links will receive high priority the management of some. Electricity til this month, still has to be resolved. from the government this year. Most output, or rather, its transmission, is It has been going badly for the pros- of the country’s oil production centres well below target and undermining ecution, like so many other anti-cor- are back on stream. According to the attempts to kick-start the economy. ruption efforts. Organisation of the Petroleum Export- As domestic debt and arrears build Top priority this year is to find a new ing Countries, Nigeria was Africa’s up and inflation rises perilously, the chairman for the Economic and Finan- largest oil producer in December. The clamour for the promised turnaround cial Crimes Commission after the Sen- position remains precarious, with the is also rising. ate refused last month to confirm the Niger Delta Avengers and other mili- With talented ministers such as tant groups still at large. The 2017 Okechukwu “Okey” Enelamah, Baba- budget includes 65 billion naira for tunde Fashola, Kayode Fayemi and the Delta amnesty. Udo Udoma, all with clear reform ide- Foreign oil companies will face an- as, there is puzzlement and concern Nigeria starts other round of local protests and law- about the government’s economic fail- suits in Nigeria, Britain and the Unit- ures. Some attribute them to arcane ed States over environmental damage. political vendettas, others to admin- Rising oil prices should bolster Fi- istrative dysfunction. Business people the year in the nance Minister Kemi Adeosun’s plans hope that the economic team of min- to issue a $1bn sovereign bond in the isters under Vice-PresidentYemi Osin- first quarter of 2017. This is a frac- bajo will be able to assert its authority economic doldrums. tion of the country’s borrowing needs, on policy and push ahead with its ini- whether from the World Bank, African tiatives to expand the economy. They Development Bank or China. Recent complain, though, that many road- It has slumped into discussions with China and India on blocks remain in the legislature and close to $100bn in planned investment the executive. and borrowing sparked concern in the Now, the divisions in the APC are recession for the first Senate about the forward sale of oil out in the open. The main fissure is be- production. tween Buhari’s supporters and those The Central Bank of Nigeria’s for- of former Lagos State Governor Bola time in 25 years eign exchange reserves have fallen Tinubu and former Vice-President Ati- below $25bn. ku Abubakar. First, they complained l Copyright © Africa Confidential 2017 that they could get no access to Buhari http://www.africa-confidential.com n

NOSEWEEK February 2017 29 2017: A year of living dangerously Futurist Daniel Silke’s crystal ball reveals dramatic probabilities for SA – and he argues that the ratings downgrade threat is teaching the government valuable lessons. By Sue Barkly

HE CONSTANT THREAT OF A emplified in the way the disastrous 2003, Silke has been the director of the ratings agency downgrade was ‘Nhlanhla Nene week’ was handled Political Futures Consultancy. In 2012, the best thing that could have – mainly President Jacob Zuma’s fail- he published Tracking the Future: Top happened to South Africa dur- ure to grasp reality and the confused Trends that will Shape South Africa ing 2016. “It was like a Sword of justifications from senior ANC spokes- and the World. DamoclesT hanging over our heads all people. A self-confessed “Twitter nut” and year and it kept us on our toes,” said “It is thanks to the Treasury – and news junkie, who says change is his Daniel Silke, the Cape Town futurist, media – that we have an understand- food, Silke explained: “What I do is political analyst and sought-after key- ing of what a ratings downgrade would marry political analysis with economic note speaker to blue-chip companies. mean to us. The reality of a reduced trends. The linkages between politics “The penny dropped and, even ability to borrow capital on global mar- and economics have become profound though the buy-in was not a hundred kets at affordable rates has hit home. and complex. percent, the connection between de- “For a political party that believes in “South Africans are more honest livery and more stable, prudent and a high degree of centralised state ex- and open than ever before, robust in globally acceptable policies became a penditure, a line of borrowing at afford- engagement but prepared to look at glaring reality for our government, one able rates is crucial. So, the ongoing scenarios that will change the politi- which they had no option but to heed. threats of a downgrade have enabled cal course. There is also much more of “We were held to account by the glob- more people within the ruling party to a willingness to be pragmatic and to al financial community and the global get to grips with the implications of a judge South Africa against what’s hap- rules of the game. The ANC didn’t like downgrade.” pening in other parts of the world.” it, as it has generally been a party that Silke’s clients include Standard The year 2017, said Silke, will see doesn’t have great synergy with the Bank, First National Bank, MTN, the world enter a period of being “less global rules of finance. Rand Merchant Bank, Sanlam, Eskom inclusive” as wealthy nations retract “But the ANC learnt, in the course of and Telkom, among many other listed into themselves to protect their own, last year, that they cannot be as mav- companies. and poorer nations are left to fend for erick in their approach to governance, “In times of uncertainty, clients come themselves. There will be a shift from and that they are, in fact, constrained to me for perspective on where South “soft power” to “hard power”, where by what happens in the global financial Africa stands, both regionally and glob- strength prevails. community. ally. It’s been a hectic year, in which Prepare for heightened global risk “The rand dropped and the ANC and there’s been a clamouring for a realistic as the world drifts towards more right- the whole of South Africa woke up to assessment of where we’re at. wing, military politics, and countries the importance of integration into “The performance of the government become more introspective, as opposed international markets. Before then, has heralded a much greater willing- to embracing other nations. “It will be a there was, on the whole, a glaring and ness to confront and discuss deficien- case of ‘no more Mr Nice Guy’.” distressing lack of understanding from cies in governance,” said Silke. The reputable think tank/invest- many elements in the ANC over just A former MP in the Western Cape ment house, Eurasia, has warned in its how South Africa fits into global fi- Provincial Parliament (for six years, in- annual report, that global risk will be nance, whether we like it or not. cluding a stint as chair of the standing heightened as a result of Trump-style “The lack of understanding was ex- committee on Economic Affairs), since populism and a general trend towards

30 nationalism and right-wing thinking. South Africa. “Clearly, Trump’s protec- Time magazine in a recent edition, tionist view and his intentions to focus cited South African instability as one more inwardly on domestic business, to of the top ten global risks, an assess- reduce some of the trade benefits that ment which Silke described as “some- have been accruing to countries out- what over-dramatic”, adding: “But the side of the US, and to bring manufac- fact is, we are living in a political era of turing back into the US and encourage ongoing upheaval which will, without job creation domestically, will have a doubt, affect South Africa and the rest major affect on AGOA (African Growth of Africa.” and Opportunity Act). Like most analysts in the field, in the “Trump has made it clear he intends coming months Silke will be keeping to protect US domestic industry rather a close watch on US President Donald than be generous to the outside world. Trump. “We’ve not seen this different “That protectionism is taking off in approach to global politics in decades. Europe too, which poses a great danger It will have global implications from to South African exports. the economy to the environment. US “We will have to see how this plays policy and performance will be critical out. The South African government, for everyone this year.” right now, should be sending out skilled Looking back on 2016, Silke said diplomats to knock on the door of every both South Africa and the rest of Africa Republican legislator to lobby about the had felt the brunt of the continued de- importance of a more liberal approach pressed commodity supercycle. to trade policies and the importance of “We felt the slow-down in the Chi- continued trade with the developing nese economy which affected exports to world, including Africa. It should have China from Africa and South Africa. Its been a priority… not enough lobbying substantial impact on African econo- has been done. Everybody was caught mies will continue into 2017. off guard by the Trump victory. “We in Africa have all become de- “In Europe we will face similar tests, pendent, even over-reliant, on the with the rise of more right-wing nation- China growth story and when China alism and populism which also sees a catches a cold, we suffer. In 2015, ex- rise in protectionism for domestic in- ports from Africa to China were down dustries. The French election could be about 40%. This has been a real shock a litmus test for the immediate future to the system. of the EU. If the right wing gains power, “The good news for South Africa this this could see a breakup of the EU as year is that we have seen some stabil- we know it. The right-wing gains will ity return to labour relations, with few- also make it more difficult for South Af- er days lost to industrial unrest. rica from a trade perspective.” “There has been an effort on the part The political changes sweeping of the government to instil in unions through the Western world will affect a sense of urgency about righting the South Africa deeply and will necessi- messy state of labour relations in South tate a different type of diplomacy, Silke Africa. This shift in labour relations continued. has been one of the positive spin-offs of “The Western world, rather than be- the downgrade threat. The threat of a coming more socially conscious, is say- downgrade is ongoing because we are ing ‘we are looking after our own now’. reviewed every few months. It will con- This is not good news for the develop- tinue into 2017.” ing world.” Looking ahead to world trends that However, all is not doom and gloom will affect South Africa during 2017, on the African front. Silke said it will still be critical to “Africa continues to embrace compet- watch the changing Chinese economy. itive democracy, with ever more elec- “Chinese growth rates are lower, and, tions taking place and more changes of in the year ahead, they will be moving government occurring peacefully than from a production-led to a consump- ever before. There are exceptions, but tion-driven economy. There will be a on the whole, elections are being much slowdown in what they want from the more closely fought across Africa. Op- outside world, including Africa. position parties are now regularly win- “The other big issue is how the Trump ning elections. This competitive nature presidency will relate to Africa and Futurist: Daniel Silke of elections in many parts of Africa has

NOSEWEEK February 2017 31 a positive bearing on South Africa. liament become the battleground as “There remains very good growth in rival factions of the ANC – those sup- many parts of Africa, particularly east porting Zuma and those opposing him Africa: Kenya’s growth rate has been – fight for dominance in the build-up 6%, Ethiopia’s grew at 7%; Tanzania towards the party’s elective conference has been a good performer and Rwan- Parliament will be the in December. da is doing well. This, despite the glar- “It will largely be a stalemate, as ing problems in Zimbabwe, Gambia, nobody is powerful enough to unseat Burundi and DRC.” battleground as rival Zuma, and, at the same time, Zuma’s Silke believes technology will contin- hands are tied in terms of what he can ue to provide both benefits and threats do. across the world. “Technology, despite factions of the ANC fight “The factions are balanced in the its benefits, will play havoc with jobs ANC. The problem is that this deep- into the future. Humanity has yet to rooted factionalism means we will understand the real effects of Artificial for dominance in the spend most of the year in a navel-gaz- Intelligence and robotics in the work- ing exercise as the ANC introspects, place. build-up to the party’s and all politics will be centred around “Technology will take jobs away from the ANC’s internecine battles. This will large swathes of populations across the retard policy formulation and imple- world, particularly in our case where conference in December mentation. our skills base is relatively shallow. “The constant battles between fac- “The menial jobs are most under tion A and faction B means we won’t threat by robo-sourcing, for example, get consensus on policy to kick-start in the automotive, mining and agri- our economy. At best we will have con- cultural industries. In South Africa, stant piecemeal compromises to stave we protect some jobs, like the people needs policy reform to kick-start an up- off rating downgrades or to keep our who fill up our cars. The technology is, ward path. heads above water.” of course, available to do that, but we “All in all, we are facing a very tough Locally, Silke will be watching Depu- have specifically not put in electronic year. We need a cataclysmic political ty President Cyril Ramaphosa closely checkouts, because of the jobs it would event to reboot our economy, but we are this year. “He needs to make a move if cost. quite a way from that. he really wants the job as president. He “Amazon has opened up a stand- “South African business will contin- must up his profile. He’s been deficient alone supermarket in Seattle – the first ue to hedge its bets from an investment in his public relations, in putting for- supermarket with no checkouts. Each point of view outside South Africa and ward a case for himself. The pressure is product is added to an online cart on will look to augment their business in- now on him to rise up and say what he people’s phones. That’s the future of re- terests with foreign businesses. can offer the country. tail. Technology and jobs are one of the “Businesses will still be reluctant to “I will also be watching the so-called big unresolved issues of the future. invest any cash stockpile they have Premier League as a group. I always “In the next few years we will also in domestic enterprises until there is feel they have a backroom plan to re- interact much more with robots – in greater policy clarity coming from the tain as much power as they can. The call centres and telemedicine. Soon di- government. That reluctance to invest way they manipulate themselves into agnosis will be done online from any- means they will either sit on their cash power will be a strong indicator of the where. This is already being rolled out or look for outside places to invest it.” future.” in many parts of the world including According to Silke, urbanisation will It’s been refreshing seeing ANC peo- in South Africa. It avoids long, uncom- continue at a dramatic pace in South ple speaking out in Parliament against fortable journeys and waiting times for Africa, putting pressure on our local their own government, as in the SABC medical help. authorities to maintain and enhance hearings, said Silke. “We will also see technology being service delivery and smart cities that “It’s been way more exciting than the used much more for education, espe- can provide for an increasingly de- DA’s constant votes of no confidence.” cially by universities, which, in our manding resident. The tension between self-serving case, should have contingency plans to “In the South African context, new ANC members and those serving the circumvent the disruptions.” DA administrations will increasingly national interest will reach fever pitch, Cost cutting will continue to be a test the boundaries of their power and he predicted. feature of the economy worldwide, as will attempt to forge greater independ- “The factionalism which will contin- companies focus on doing more with ence in policy making and implementa- ue playing out in the ruling party this less expenditure. Expect a tough year, tion. year will continue to extend like a virus especially in the retail consumer sector. “The foray by the Tshwane Mayor to into state institutions, like the SABC, The mining sector, which has under- Taiwan is an example of DA-led metros SAA, Eskom and SARS. performed in the past few years, may also forging a more ‘independent’ for- “But the threat of a ratings down- see a rebound if commodity prices in- eign policy.” grade will help keep everyone sober crease, while manufacturing clearly Silke agrees that 2017 will see Par- and realistic.” n

32 Books LEN ASHTON

Insider. Womb with a view

O YOU LIKE MAKING GOO-GOO NOISES AT NUTSHELL longueurs of late pregnancy. The docu- innocent babes-in-arms? Well, pause By Ian McEwan mentary broadcasts are illuminating. In for reflection. Ian McEwan’s wildly (Jonathan Cape) the still of the night a distinguished com- imaginative new offering makes a mentator with a deep, rich voice warns case for premature infant awareness that all is not well with the world. She ob- Sthat is both disturbing – and very funny. serves two states of mind internationally: The fact that he shamelessly plagia- self-pity and aggression. rises Hamlet in order to bolster this fancy “Now that the Russian state was the is incidentally amusing, but the strangely political arm of organised crime, another convincing commentary by the protago- war in Europe was not inconceivable.” nist, cramped uncomfortably in mother’s In the barbaric fringes of Islam, the cry womb, is a warning to those who would goes up: we’ve been humiliated, we’ll be patronise little people. avenged. And psychopaths are a constant This particular miniature person-in- fraction of humanity. Armed struggle at- waiting is learning fast. Eavesdropping tracts them. on the nefarious doings of a seductively All these current menaces are economi- wicked female parent and her manipula- cally stirred into the mix of a gripping tive lover is profoundly instructive. Mum- thriller. For Nutshell is exciting, with my, sulky Trudy, writhes in an orgy of sex convincing villains and cunning police- and booze while fending off the reconcilia- men. And eventually the baby solves an tory advances of her overly romantic poet intriguing puzzle: is it a boy baby or girl husband. Lover Claude has a dull agenda baby? Ah – goo-goo! n but a potent sex drive. Trudy has chosen the lustful dullard. The fact that the rutting couple’s activi- ties often restrict the unborn baby’s ac- commodation does not hamper the hump- ing. But baby is not amused. Particularly when it transpires that there’s a plot afoot to murder father John. At this point the subject of filthy lucre is introduced to the child’s mind. Of course, children need to know about the role of hard cash in a cruel world, but the little one is horrified at the notion that some people would kill for it. So, while loving the mother (for both natural and survival reasons) the infant mind is alarmed by questions of morality. McEwan is at the top of his game just now. His success as a novelist, awash with film glories and prizes, allows him lati- tude to play with ideas. Nutshell is the equivalent of hearing a celebrated con- cert pianist playing jazz, for fun. Not that he avoids the big issues of the day. On the contrary: he once again dazzles with trademark fluency and high intelligence. Baby learns much from mother’s reli- Ian McEwan ance on radio entertainment during the

NOSEWEEK February 2017 33 Down and Out ANNE SUSSKIND

Wild idea. Shy-making

ATTRACTING THE MOST ATTENTION award-winning journalist who started Aat the Art Gallery of New South his (until now illustrious) career as a Wales in Sydney – alongside Rodin’s cadet at Fairfax newspapers in 1985, The Kiss and works by Hockney, Picasso has resigned after alleged sexual har- and Lucian Freud among others – is the assment of two female reporters. One much larger-than-life and hyper-realis- says he “groped her on the bottom” at tic sculpture, Wild Man, by Australian an awards night; the other, that he Ron Mueck, which is part of the London stared at her breasts and said some- Tate’s blockbuster collection of over 100 thing like “You’re looking busty” then nudes on show. It is a strangely touching adding “Not that I’m complaining.” and almost embarrassing figure: a man looking startled on the edge of his chair, 46-YEAR-OLD PUBLIC SERVANT HAS WON naked and defenceless among crowds of A a payout of A$1m (R10m) after bul- dressed people in a well-lit room. lying by two managers left her dou- bled over, sobbing. Her crime was to HAT “OH OMG, EVERYONE AROUND ME IS make mistakes in an internal job ap- Tmarried” moment occurs about five plication. Afterwards, whenever she years later for Australians than it used entered a lift, she would look down to, says a Melbourne sociologist of new to try to identify the shoes of her Australian Bureau of Statistics figures. supervisors. In the 1980s most people were married “I was terrified. I couldn’t be near by 25, whereas now the most marriage- a Russian migratory bird which makes them… I did not leave that office the able age is 30. Perhaps because of more the bird world’s longest non-stop flight same person as when I arrived,” the careful choices, and living together (80% of more than 11,000km from New Zea- woman said. Her psychiatrist says she before marriage), those who marry stay land to the Yellow Sea. Developers are will never be able to work again. together longer, the divorce rate is down working with government agencies to and the seven-year itch looks more like identify new conservation areas, plans ORE GOVERNMENT REVENUE AND a 7.4% itch. for ranger sponsorship and remediation M better health perhaps, but tobacco and rehabilitation projects. tax hikes which will see a pack of ciga- IFE IS FULL OF CONTRADICTIONS, rettes hit the A$40 (R408!) mark by L saving birds while building coal LSO IN QUEENSLAND, THE FEDERAL 2020 are leading to a smuggling boom, mines. “They are morons, they really A government is funding the construc- which may in turn fuel drug traffick- are morons,” says Dr Dejan Stojanovic tion of a A$1.3 billion, 310km rail line ing or terrorism funding. of the critically endangered orange- from the Galilee Basin to a port which Government tobacco strike team in- bellied parrot, whose population in the will service the huge new A$16-24bn spector Allister Keel, who led an inves- wild has dropped to 14. During nest- (R250bn) Adani/Carmichael coal mine, tigation that seized about 4.5 tonnes ing season, would-be saviours scale a threat to the severely stressed Great of illicit tobacco and over 615,000 trees near Tasmania’s south-west tip to Barrier Reef. Gautam Adani, reputedly cigarette sticks from an organised smuggle eggs laid in captivity into wild India’s wealthiest man, with a personal crime syndicate, says there is a steady nests, and hand-feed nestlings of negli- value of A$7bn, is behind it and, apart stream from China and the Middle gent parents. Raised in captivity, they’d from despair that it will massively ex- East. become “fat, lazy parrots” with no idea acerbate climate change when all that “Syndicate members over here would how to avoid a predator or survive mi- coal is burnt in Indian power stations, simply open any number of postal gration across the Bass Strait. Starlings and government assurances that the [boxes] …in their own name or family just stab them in the stomach and drag dredged spoil will not be dumped in the or friend’s name to receive these par- them out of their nests. reef, conservation groups are gearing up cels of illicit tobacco products” which for the “mother of all fights”. they sell through an online platform N OTHER AVIAN NEWS, A A$1.3 BILLION or other retailers. Police intelligence Iharbour project in Queensland has ARK FORBES, THE EDITOR-IN-CHIEF OF had linked one syndicate to fundrais- been halted for six months to study the MMelbourne’s The Age newspaper ing for a Lebanese charity aligned with critically endangered bar-tailed godwit, and a United Nations media peace Hezbollah. n

34 Letter from Umjindi BHEKI MASHILE

Passion fruit? Forget it!

HAT IS ON MY MIND THIS NEW year of 2017? Quite a bit actually – although, being a journalist is enough to prevent my mind from oc- casionallyW just taking a chill. Add to Bheki amongst his rampant granadilla creepers that my farming responsibilities and you have a cocktail that could drive a weaker soul cuckoo. fle, brought about by a hit song, State to myself, “Ah! s***t! I was really hop- Be that as it may, one of the top Capture, as recorded by Jay Zee and ing to do a hectare”. things on my mind is to remind myself the Goopters. Fast forward again. Keen as mus- to be careful what you wish for – you Waiting two years for a guava har- tard, I knuckle down with my loyal just might get it. You see, early last vest does not sit well with an emerging workers to plant the 500 granadilla year a friend introduced me to a com- farmer who needs to generate income seedlings allocated to me. pany that specialises in manufactur- ASAP. After all, this emerging farmer Now, granadillas are also known as ing fruit juice concentrates. I thought is already facing a seven-year wait for passion fruit. Yeah, right! I would soon he was doing me a favour, since this the first macadamia harvest. learn that this plant has no passion. company outsources the planting of Yes! when that mac harvest comes And I’m reminded: Be careful what some of its fruit to other farmers – a through it will be nice, considering you wish for! ready market. And, as those in the what macadamias currently fetch at Fast forward yet again. Six months know know, failure to secure markets market – and the future outlook is on and I have granadillas growing on has been one of the biggest contribu- said to be even more promising. Still, a small portion of the farm, not even tors to the demise of many black- it is a seven-year wait, so I thank the a quarter of a hectare. We have done owned farms. Almighty for the cash-crop markets I well, followed all the technical advice So naturally this here emerging have secured to fill the gap. and, all in all, I am happy with the farmer (although I prefer to refer to Seeing my dismay at the two-year progress. Not just happy but damn myself as an agri-entrepreneur) was guava news, the juice manufacturer’s well proud of myself. over the moon at securing another rep makes an effort to reassure me I had been advised that the best – market, particularly one for commodi- there is immediate light at the end of and really, the only – way to farm the ties that were not part of my original the tunnel with the granadillas. He ex- fruit properly is to set up a grapevine- planting programme. Sweetening this plains that you can expect to harvest like support for the plants – which we opportunity was the fact that the man- them in eight months’ time; moreover, did successfully. ufacturer would be supplying the key one can expect two harvests a year. But here is what Bron Pro did not inputs, planting material and even “Well,” I say with fully revived enthu- tell me: this damn plant grows like a technical support. siasm, “now we’re talking.” weed and if you do not manage and But I am not keeping in mind “Be Fast forward. A few weeks later I am control it, then you are in s***t. Funny careful what you wish for”. Next, my called to come and pick up my first al- though, my main man on the farm – new-found partners, the juice concen- location of seedlings for the granadilla who has been working on farms for 20- trate manufacturers, decide: “Hey, let’s crop. Excited, I virtually fly to juice odd years – kept laughing and saying, kick-start you guys with two crops: concentrate manufacturer Bron Pro’s “Bhuti Bheki, do you really know what guavas and granadillas.” farm/production facility. There, Bron you are into with granadillas? When “Hey whatever we kick off with is Pro’s absolute gentleman-and-a-half this baby grows, it has these tentacles fine with me,” I say with enthusiasm. farm manager says, “Sorry Bheki we that wrap around the vine and if you They proceeded to explain that the cannot give you the promised seed do not take time to guide it upwards it guavas would take roughly two years volumes for a full hectare as we dis- just grips and goes sideways.” to produce a full harvest. My enthusi- cussed, however we can give you Untangling that baby is a nightmare. asm took a dive – like the rand when roughly 500 seedlings to start with. And one that must be dealt with every President Zuma subjected our Minis- Granadilla seedlings are hard to find day – yes every day – or you lose control. try of Finance to a short-lived dance and we get our supply from a nursery Passion fruit! Yeah right! They cer- craze called the Nene-Pravin shuf- in Cape Town”. At this news I remark tainly aren’t my passion. n

NOSEWEEK February 2017 35 Not rocket science SIBUSISO BIYELA

Medicinal cannabis. Beyond the anecdotes

HAVE A SPECIAL HAIRDRESSER WE After looking at all these trials, the will call Bongo Man. He wears authors found the evidence sketchy a giant woollen beanie over his that cannabis is any better than main- labyrinthine locks. A professional. stream medicines. In fact, the research- Proud of his work. The only person ers found an increased risk of adverse I trust to handle my own dreadlocks. effects associated with the drug. The stereotype that people like my- Specifically, the 79 trials looked at self and Bongo Man are regular weed the action of cannabis against chem- smokers could not be further from the otherapy-induced nausea and vomit- truth, in my case. I have a Christian ing, appetite stimulation in HIV/Aids, mother who once gave me a good hid- chronic pain, spasticity caused by mul- ing for holding an imaginary cigarette tiple sclerosis, depression, anxiety dis- against my mouth. order, sleep disorder, psychosis, glau- Bongo Man is proud of his associa- coma, and Tourette’s syndrome. tion with the plant and believes strong- The quality of evidence around the ly in its many benefits, both medical treatment of these ailments ranged and recreational. In many a session, from “moderate quality” to “low qual- we’ve discussed the possibility that this ity”. In short, researchers themselves drug may soon (hopefully) be legalised are not convinced about the medical in South Africa. benefits of cannabis – the science re- Bongo Man is knowledgeable of an mains sketchy. historical injustice that has befallen the that is medicinal cannabis. In the US, Research into medicinal cannabis is sacred plant and how this informs much parents of children suffering epilepsy neither here nor there right now. A big of the stigma around ganja. The murky have put their faith in Charlotte’s Web, reason for this is because it is difficult middle of the 20th century saw what just one of many strains that have spe- for scientists to access a Schedule 1 was then known as “Reefer Madness”, cific amounts of cannabinoids. drug that cranky oldies put in the same when the idea that “The Killer Weed” is Cannabis is claimed to dull pain, aid category as heroin. a gateway drug became current. sleep and stimulate appetite. It even The Department of Health and the The home of the idea of “Reefer Mad- apparently fights cancer and is an an- Medicines Control Council announced ness”, the US, is where the future his- algesic, an antiemetic, a bronchodilator, in Parliament in November 2016 its tory of the Holy Herb was decided, and and an anti-inflammatory. intention to request public comment on has continued to inform our prejudices Research conducted by Manuel the Medical Innovation Bill. This bill regarding the drug to this day. It has Guzmán has generated headlines would pave the way for South African taken more than 70 years for science to claiming that marijuana can cure scientists to legally consider the possi- start piecing together the jigsaw of ben- brain cancer. However, the scientist ble medicinal benefits of cannabis. eficial – or harmful – effects the plant himself is not so keen on the publicity Despite many potheads already blaz- is purported to dole out of its prickly his research has garnered. “The prob- ing in celebration, I must stress that leaves in its innumerable strains. lem is, mice are not humans”, he told this bill does not mean that South Af- In my research for this article, I came National Geographic regarding one rica is anywhere near legalising canna- across a flurry of “evidence” that makes study in which he and his colleagues bis for recreational use. It just means cannabis out to be the cure-all human- found that brain tumours were eradi- that restrictions on research will be ity has been dreaming about for thou- cated in a third of rats that they had lighter. sands of years. Much of this evidence treated with cannabis compounds. Still, to people like Bongo Man, the is anecdotal, beginning with the over- “We do not know if this can be extrap- bill is a step in the right direction. With stated idea that cannabis has been olated to humans at all,” he stressed. more research into cannabis, blunt with humanity for thousands of years A paper in the Journal of American smokers may be ratified in their as- so it must be good. Medical Research (Cannabinoids for sertions about what cannabis can do Many anecdotes and stories from us- Medical Use: A Systematic Review and and why it possibly isn’t as bad as it ers and patients are quite heart-felt; suf- Meta-analysis) looked at 79 trials that has been made out to be for all these ferers from various ailments and their studied the medicinal claims made for decades. For that reason alone the laws loved ones swear by the miracle remedy cannabis. might change sooner than later. n

36 Last Word HAROLD STRACHAN

Muti. Taking the bait

ONNY, SAID I, HOOZIT MAN? I HAVEN’T between forefinger and thumb. pocket and produces a piece of pa- seen you since ’07, remember Hey bad luck, Sonny, man! say I, per… this thing I got, man. There is the beach at Umzumbi? And but they can fix that today with a sort written PHLEBOTRACTITIS. Blimey, think that bloody big simonfish we of little blow-up balloon thing which I, ’twould be a happier world if all doc- had to divide between us and we name I forget just now. A long thin bal- tors had the humour of this guy. Did couldn’tS decide how? loon on a long thin plastic tube, they he give you any muti for this condi- Of course that salmon was not a sort of shove it inside a vein and ex- tion? say I. Oh yes yes, says he, very salmon at all, but a Natal Salmon pand the balloon then pull it out and powerful pills, make my veins get long which is a Kabeljou, Kob for short, but your vein stays expanded. Just for an same time, twice a day with food. He that’s a Dutch codfish, and it isn’t re- awful moment I thought you meant produces a plastic tub of powerful pills. ally that either. Ah well, Simon will do your veins were getting shorter. Yes, If they’re not vitamin B dog pills you for now until the ichthyologists find a yes, says he, they getting shorter also, can bite me. This is not to sneer; I re- nice local name for it. I reckon Rietbul and he shows how short between his member in the Air Force the favoured as at Knysna sounds best, but treatment for Sunday babelas you know how chauvinistic we was Bob Martin Condition Pills KZN people are. for Dogs, two with corn flakes Anyway, there had been Son- for breakfast plus a cup of tea. ny and I standing on the beach Sonny, say I, what you need is and debating about this fish, to get down to Rocket Hut beach 20kg, a big bliksem that I had this Sunday morning where you caught but he had a half-claim and I will catch another simon- on because I had used one of his fish. Walking on the sand will fix shad as live bait. That’s the tra- your condition. No-o-o, says he, I dition, see: if you haven’t been get one very terrible pain in my lucky with the shad you can bor- left-hand-side foot on the beach. row a nice little 1kg one from Oh let’s just try, say I, we’ll take your mate and carefully thread my folding camp chair and you your hook through its skin and can fish sitting down. gently launch it as live bait on So on Sunday he limps on your heavy rod and let it swim to the beach with his legs and out to the white water where the arms bent and settles into the simonfishes lurk about. That’s canvas chair with his big surf where the 50/50 deal came in. rod all ready and this time I get His 1kg investment of shad had the dinky little shad and lace brought in 1,000% profit of si- her on to his line and launch her monfish. But how to divide it? If in the shallows, and she hardly we split it fore and aft, one of us reaches the white water when would get the head which some there’s a sudden relentless drag- deem tastiest, so we did it east to west two forefingers, as anglers show the ging like a bloody u-boat, man, the and the head was traded for the best length of a fish they have caught. My sure sign of a simonfish. Sonny goes steaks down the tail end. Sonny had arms and legs too long for my veins all aquiver till the bait is right inside first choice, and he chose the head. now, says he, every time I walk my its gob and strikes this fish so hard it So here we are now in the Cracker legs stretch my veins, that’s why they straightens out all his veins and limbs Jack Tackle Shack, Prop. Poobie Lal, getting so narrow. Like elastic? say I. there and then and his left-hand-side down King Dinizulu Road, Durbs, and Like elastic, says he. That’s why he foot is instantly cured. He spends I’m asking about Sonny’s condition. has to walk with his knees bent now, twenty minutes battling this beast up Sonny, say I, you are the living picture says Sonny. And his elbows. and down the beach, leaning heavily of robust health. No-o-o, no-o-o, says Hell, Sonny, say I, that’s bloody aw- back on the rod, the tight line whist- he, chrinking veins I got. Chrinking, ful, man! Have you seen your doc, and ling in the wind. When its ashore, we chrinking, small, small, and he shows what did he say? No-o-o, says Sonny, weigh it. 20kg, exactly. me the diameter of his shrinking veins he says I got… and he fumbles in his Very powerful pills, says Sonny. n

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