Reserve Bank Still Hiding Apartheid-Era Looting WOEMA!

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Rabie giveth – 131SEPTEMBER 2010 and taketh away

ANC secretly learnt their tricks from the Nats

Reserve Bank still hiding apartheid-era looting WOEMA!

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4 Letters Noseweek and the hit parade edition for only 6 Dear Reader The heady whiff of bribery R278 7 Notes & Updates Disarming robbery at Moti HQ n Playing cops and robbers n Sweet and sour cell service Wherever you want 14 Diamonds in the dust Two communities were supposed to benefit from gems mined from restored land – but one was left out in the cold it....whenever you 16 Smashed! When a multi-millionaire businessman went on a drunken rampage he wrecked a lot more than just the seven cars he tore into want it

18 The Hole truth Favours and favouritism at the diamond dorp courts

20 Lies, damned lies and litigation The Law Society eyes a tangled web of fat fees and long delays

22 Hot wheels Bikers beware! You could be taken for an extremely expensive ride

24 ‘Jake White threatened me with Kebble killer’ Veteran sports writer Dale Granger remembers menacing talk during the 2006 Tri-Nations

26 Dream verdict for bent reverends Fraudsters pray their way out of hellish prison sentence www. 27 Rabie Property monkeys around on the 14th floor With one hand they noseweek.co.za gaveth luxury facilities and with the other they tooketh away

30 Not quite like the brochure A retirement development delivered a lot less in reality than was mentioned in their publicity material

33 Books Sleepwalking in a Surveillance Society

35 Country Life Where there’s smoke n Fear and loathing in Mpumalanga

37 Last Word Naval Foefies

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Making the hit parade n Congratulations! By be- No-one is above the law. We ately after his tragic death. It was good to learn that the ing on Kebble’s hit list, your will name and shame them. Your report has caused Kebble “hit-men” failed to credibility has just shot up Chad Thomas many ripples in the security get you. by 300%. This is better than Johannesburg industry. I am certain Ray- Errol Friedmann winning the Pulitzer! mond would loudly applaud Meridien Group, Cape Town Mousy Mandarin Van Staden deeply missed your skills in revealing the Noseweek’s editor was on Cape Town Raymond van Staden (“The disgusting behaviour of cer- the late tycoon’s hit list. The n I’m really really glad that spy who went in too deep”, tain family members, col- above letter and the simi- you are safe from the mad- nose129) was a colleague leagues, employees and a larly supportive notes below ness around us! and friend and is sadly former girlfriend. Particu- are selected from the many Pam missed. The actions of the larly distressing is that so kind notes received. Thank Sun Valley parties as described in your many people in the security you. – Ed. The above are just some of article in the days after his industry are apparently not the witty and supportive death are disgusting and to be trusted. Do they loot n I suppose one should see messages received after the horrendous. I sincerely hope their clients’ desks as well? being on a Kebble hit list news broke that I had been that they are all brought to One can only hope that the as a compliment, but I’m amongst those on the Kebble book. As for the sanctity of police actually do their job pleased nothing came of it! hit list. Thank you all! – Ed. brotherhood – no comment! and that justice will pre- Martin Plaut Mike Irving vail. I also hope that SARS Africa Editor, BBC, Bush House, London No escape for Investec By email has taken note of the large Your editorial about Invest- amounts of foreign ex- n I see you’ve brought new ec (nose130) was superb. My n Congratulations on a fine change allegedly looted by meaning to the phrase “mak- wife Glenda and I thank you piece of investigative jour- a Cape Town financial advi- ing the list”. for vindicating us. We’re just nalism on the looting of pri- sor. (That photograph of her Mel getting started: next stop, vate investigator Raymond should have been on your By email the Constitutional Court. van Staden’s estate immedi- cover.) Joubert Pretoria Gus Why no ponzi action? I have been wondering why no further news ever surfac- es regarding ponzi masters Tannenbaum and Rees, the perpetrators of one the biggest scams ever to hit this country. I’m truly amazed at the fact that nothing has been heard about what progress, if any, is being made in this case. No meeting of creditors has been held and the investors are simply being kept in the dark whilst T and R appear (on the surface anyway) to be leading “normal” lives – it’s preposterous. Some investors have been subpoenaed to appear before the Master and a bank of attorneys in Johannesburg is attempting to recover all monies paid to them regard- less of whether investors lost or made money. This smacks of desperation as they try and recover whatever they possibly can in order to continue drawing their fees. For doing what exactly? Ponzi Pooper Cape Town The Emperor wonders what to wear

4 noseweek Se p t e m b e r 2010

No audit on World Cup? the same problems, which censed bandwidth and the grow new heads as the old Congratulations on your are also reflected in the re- SA public are paying for are chopped off, and that the report on what some of the cent correspondence in the this – in my case I estimate noseweek team might even-

top Fifa officials are up to press between Trevor Noah about R500/month for at tually lose heart. I wonder (nose128) – even if it’s cold and the CEO of Vodacom. least the last few months. how you stay “clear” amidst comfort to know that such I started corresponding I suggested to Mr Cassim the endless poison that you goings-on occur throughout with Vodaphone about this that all I wanted was an have to swim in – because the world and not just in in late May. After some thir- admission by Vodacom that even as I thank God for SA. ty or more emails and calls their bandwidth was over- your latest exposé, I liter- “ Will we ever be told the to the so-called customer subscribed and a refund of ally grow ill. It takes me truth about how much mon- care help line, all I got was the cost to me for the last hours, even days, to recover ey the World Cup brought an offer to test my signal few months. He stated hope for our “civilization”. into SA and how much left at home. All attempts to quite emphatically that I am tempted to stop, but the country? How much did escalate the complaint got that would not be possible. have decided to continue it – will it – really cost the nowhere. I’m now escalating this to reading, in solidarity, and taxpayer? I believe that Whatever technology Vo- Icasa, in accordance with in order to stay alert to the It’s preposterous that ponzi fraudsters Tannenbaum and Rees appear to be leading normal lives

many in the hospitality in- dacom is using to measure their guidelines, and trust dark side of our political, dustry lost a lot of money, dropped calls (which I be- they will do an independent business and social reality. upgrading hotels and guest lieve is part of their license investigation. I believe they But I’m wondering: would houses which were fully condition) somehow (and will find that wholesale fraud it be feasible to devote some booked by Fifa and then not surprisingly) it meas- is being perpetrated on South pages to hopeful initiatives, “cancelled shortly before the ures perhaps 1% of the Africans, rich and poor. or stories of positive change? tournament, when they had REAL number of dropped Dr Richard Doyle Surely, noseweek could not no chance of finding other calls I suffer. I have offered Greenside, Johannesburg exist unless there was a guests. to provide an affidavit to powerful and realistic ideal If this was the USA, might this effect, and for somebody Don’t lose heart noseweek! which drives it? It would they all have got together from Vodacom to accompany Thank you to the noseweek be absolutely super to have and instituted an action for me for a few hours to wit- team for persisting against this ideal revealed in exam- damages? ness this – again to no avail. impossible odds. Thank you ples in each edition. John Nugent I finally got put through to for uncovering the danger- Rob Small Upington Faizel Cassim, the head of ous truth of so much nasty Harfield Village, Cape Town the Vodacom escalation de- behaviour among our so- n I’ve said it before: there’s Vodafraud partment. All he would say called social, political and a nose week in every month I have an account with Vo- was that Vodacom was Icasa business “leadership” and – you need the other three daphone/Vodacom. For a compliant, and my own ex- their armies of cronies and to recover. We are seriously long time now I have been perience was irrelevant. connections. Thank you for considering doing the odd experiencing ridiculous I need my cellphone for being so strong in the com- affirming piece, as you sug- numbers of dropped calls my work and spend a lot on mon folk’s defence. gest. Meanwhile, we will not or inability to get a signal. it a month. I believe Voda- My concern is that the pretend we haven’t noticed Many of my colleagues have com has oversold their li- clever barbarism seems to what is going on. – Ed.

noseweek Se p t e m b e r 2010 5 ReaderDearLettersDear Reader 021 686 0570 Dear Reader Editor Martin Welz [email protected] A bribe by any name Managing editor Hans Muhlberg Production editor ustifying the composition of her company’s it purely based on the fact that he’s the presi- Tony Pinchuck new BEE structure, ArcelorMittal (Amsa) dent’s son? I don’t know. I can’t answer you Gauteng bureau chief chief executive Nku Nyembezi-Heita last for sure.” Jack Lundin month told the Mail & Guardian that Can you believe this! [email protected] “strategic” (as opposed to broad-based) Next day government spokespeople were News editor blackJ investors had been included “where desperately describing the deal as “contro- Mark Thomas [email protected] the company needs assistance in a particular versial, not corrupt”. It looks horribly like a area”. standard bribery procedure to us: the bribing Censor-in-chief The M&G report continued: “For ‘strategic’, company rarely pays the bribe directly; it pays Len Ashton read ‘politically connected’; for ‘assistance’, an agent or “facilitator” a ridiculously high fa- Sub-editor read ‘lobbying with government’. So what are cilitation fee. Ask Siemens and BAE. Ask Mr Chas Unwin the lobbying fees, and to whom do they go?” Shaik. All the facilitator has to do is use part Cartoons In summary: President Jacob Zuma’s of his remarkably generous “fee” to pay the Myke Ashley-Cooper, Gus Ferguson, intended bribe – as an innocent donation to Stacey Stent 28-year-old son, Duduzane Zuma, will get shares that he will sell back to the company a close friend or relative, naturally. This one Cover art in four years’ time for between R46m and goes one step smarter. The bribe contains an Dr Jack R104m, depending on the performance of ongoing inducement for the beneficiaries to Contributors the company. (What most middle class peo- use their influence to advance actively the Bheki Mashile, Harold Strachan, Andreas Stelzer ple might earn in two lifetimes.) The Gupta business prospects of their ultimate benefac- family company Oakbay, too, will get shares tor. Which could explain why, if the company Subscriptions that will be worth between R46 and R104m. does well in the next four years, the benefici- Maud Petersen [email protected] Gugu Mtshali, reportedly Deputy President aries can get as much as double what they’ll Kgalema Motlanthe’s romantic partner, will get if it doesn’t. Advertising Adrienne de Jongh get shares that in four years’ time will see her The first test: how will minister Davies pocketing between between R30m and R70m. regulate the price Amsa pays Kumba for its Accounts iron ore – up or down? And how is he going Nicci Joubert-van Doesburgh Plus she’ll get an immediate cash payout of R67m. Ayigobi, the investment company head- to regulate the price of steel Amsa supplies to

Copyright All material in this issue is copy- ed by Sandile Zungu – a member of President the South African market – up or down? Both right, and belongs to Chaucer Publications Zuma’s broad-based empowerment advisory could radically influence Amsa’s profits and (Pty) Ltd, unless otherwise indicated. No part counsel – will get shares that will realise be- share price over the next four years – up or of the material may be quoted, photocopied, tween R46m and R104m. down. Which will radically effect how much reproduced or be stored by any electronic system without prior written permission. The largest single benefit – shares and cash young Mr Zuma and not quite so young Ms Disclaimer While every reasonable effort is totalling around a R1bn – will go to Jagdish Mtshali get to spend on presents for their taken to ensure the accuracy and sound- Parekh, chief executive of the Guptas’ Oakbay. friends and family come Christmas 2014. ness of the contents of this publication, neither the authors nor the publisher will He is half-owner of Imperial Crown Trading, Wait a second. Is ArcelorMittal (Amsa) not bear any responsibility for the consequences the upstart company that was in a prime bar- the previous ISCOR, the Iron and Steel Cor- of any actions based on information con- gaining position after controversially winning poration of South Africa? Indeed, the Arce- tained. Printed and Published by Chaucer a stake in the Sishen iron mine that had be- lorMittal website is still www.iscor.co.za. Was Publications (Pty) Ltd. longed to ArcelorMittal. ISCOR not set up with taxpayers’ money and In another report in the same issue of the owned by all South Africans? M&G, mineral rights lawyer Peter Leon is In June 2002 Business Day reported that the quoted as saying that the Department of Min- IDC had sold Indian billionaire Lakshmi Mit- SUBSCRIPTION RATES eral Resources had broken the law by granting tal a sack of Iscor shares at rock bottom prices Print the stake in the Sishen mine to Crown Trad- – just as it emerged in the British press that ing. Right or wrong, Imperial Crown share- Mittal had donated £125,000 to the UK Labour SA only R336 holders had a gun to Amsa’s head, because of party around the time that Labour leader Tony Neighbouring states (airmail) R446 their disputed Sishen mine stake. But how did Blair was writing to the Romanian government Europe, Americas and Australasia R530 the Guptas get their stake, and how did Dudu- to support Mittal’s bid for a steel mill there. At Internet edition zane Zuma get a stake as large as theirs? about the same time a Mittal company in the 1 year R278 Nyembezi-Heita told Moneyweb radio that US paid $600,000 to a campaign group which Combined the Guptas had been cut in as “major facilita- was seeking 40% tariffs on imported steel. This Print+Internet (SA only) R468 tors” of the deal. was in addition to political donations totalling To subscribe Asked why the president’s son’s company $100,000 made there. By post: Send cheque with name, should get a stake as large as the Guptas’ A spokesman assured Business Day that address and phone no. to: noseweek, and Zungu’s combined, the spokesperson was neither Mittal nor any associated company PO Box 44538, Claremont 7735. stumped: “I can see what you’re saying – was had made any donation to any political party, Via Internet (pay by credit card): there a greater contribution from [Zuma’s] politician, or to the government in SA. www.noseweek.co.za Mabengela Investments to warrant it? Or was The Editor For further information call (021) 686 0570; fax 021 686 0573 or email [email protected] 6 noseweek Se p t e m b e r 2010 Notes & Updates

Disarming robbery at Moti HQ clave. There’s been a fuss over his raz- ing of the house next door to extend his garden. But most annoying to long-term he ease with which 12 heavily-armed an inside job? residents has been the millionaire’s rag men wiped out Zunaid Moti’s Noseweek can reveal that Moti, not tag private army, with their guns and T20-strong private army in a pre- present at the time, has claimed that scruffy camouflage uniforms. dawn raid on his Sandhurst home last around R2m in cash, plus jewellery “Most people here are protected by month hasn’t done much for the cred- worth a similar amount, was taken in Core Tactical, who are simply marvel- ibility of the Aba lengani property mo- the heist. lous,” says one local. “They have one gul’s minders. In fact, so effortless was Moti has changed the whole aura of car with two armed guards on con- the elimination of the Moti force that once tranquil Cleveland Road since he stant patrol in the area. Their peo- the question must be asked: was this moved into the exclusive Joburg en- ple are properly trained – and every month they go off for top-up training. Moti’s men are high in number but low in quality. They Flying by the seat of their pants sit around glowering at passers- by; goodness knows where he gets them from.” n the wake of our Valor n Directors are listed Moti, well known to noseweek IT revelations, Mr who have not been born; readers for his thuggish ways INose has n Directors and cosy relationship with In- been burrowing are listed vestec, has been in the news around Cipro, after they recently after it transpired that government’s have been two of his companies had been recorder of com- recorded as deceased on the recipients of 33 tracts of City pany statistics, and has come up with the National Population Register; of Johannesburg-owned park his own set of Cipro stats that should n The auditors’ database lists land that were sold without the scare the pants off every entrepreneur over 200,000 entries, many council’s knowledge or approval. in the country. duplicates/variances of the same Several arrests have since been Did you know that: member. In some cases there are up made in connection with the out- n There are more than 2800 regis- to 240 different name variations of the rageous fraud. tered enterprises with verbatim dupli- same accountant; Last month’s raid on Moti’s cate names; n Some accountants are the registered house took place in the early n More than 100,000 enterprises are auditor for thousands of enterprises, hours of 13 August. Police have registered with confusingly similar names; such as: only said that “an undisclosed” n Hundreds of enterprises are regis- • M Hlabano (94,000 enterprises); amount of cash was taken. The tered with duplicate SARS tax numbers; • MM Masilela (82,000); gang fled with 14 guns – all n Of 4.5m entries in the directors’ • SC Maphotoma (45,000); taken off Moti’s gang of guards – database, 2.2m are either incomplete, • ABD Mekgoe (40,000); and Moti’s white Lexus 4x4. No faulty or false; and many more. shots were fired and no one was injured. As for the allegedly missing Cachalias no friends of Zunaid cash, Moti is said to gain comfort and reassurance from hav- n our editorial in nose128 on the fraudu- nothing to do with the Motis and their ing large bundles of cash close Ilent “sale”of various parks belonging to property “shenanigans”. at hand. Once, at a dinner to the Johannesburg city council, we got a bit “Feroz Cachalia, who is Gauteng MEC for celebrate his father’s birthday, carried away in generalizing about the con- Economic Affairs is rigorous in his anti-cor- Zunaid arrived with a tastefully nections between the Motis and “the Mias”, ruption drive. Our cousin, who was elected wrapped gift – R1m in crisp new and in turn the Mias and “the Cachalias who to the Johannesburg city council, has, sadly, banknotes. include a well-known Gauteng politician”. been in a coma for the past year and could It’s not known whether the One of the Cachalias – brand consultant definitely not have had anything to do with guards, who by now may well be Ghaleb – has quite rightly objected. The these irregular property deals.” ex-guards, were required to re- Cachalias, he points out, have little or noth- Our source was misguided and I apolo- imburse their employer for the ing to do with the Mias – and absolutely gise – unreservedly. – The Editor stolen guns.

noseweek Se p t e m b e r 2010 7 & Updates & Notes

8 Stent ed by the records, when she was in fact suggest- times the of some at do didn’t certainly and does, never she claims purposes, Jenna Something sites. of porn to visits evil most that for used quiriesshowed that the card had been en- MTN’s and this queried mediately ary 2010 it was some R2000. Jenna im- Februin R4000,- and over was it 2010 January in R1400, to up shot bill her 2009 December in But R200. of order the in usually is bill monthly her and card, 3G MTN an has Schnell, Jenna tomer goestothepress. H ae onbsd rnig type, branding Town-based Cape it only does so when the cus- the when so does only it news: bad The customer. the to listen indeed does SA rate corpo- news: good The story. ere’s A od news good Sweet andsour cellservice bd news bad , received good customer service. After After service. customer good received actually I months in time first Forthe low-up call from Paul Rozycki at MTN. to you I received a mail and then a fol- She went on to say that “after chatting YOU.”THANK “big a with us emailed result was The dramatic – the explanation? very next day other Jenna some perhaps there Was into? hacked been thebilling, could Jenna’s account have in mistake a been have there could – she so nowhere,came tonoseweek. got she Naturally uncoopera- centre. call very inefficient highly and tive a as describes she what with dealing hours two on close long in fact – she claims that she spent arguedMTN.withhardandlong Very Jenna So Plett. in beach the on lying e se MN o a explanation an for MTN asked We noseweek S r e b m e t p e 2010

usage.” data higher in resulted that software malicious with infected was computer customer’s the that found MTN tions, pleasure – Ed]. After further investiga- bringing a [Always attention our for to matter the you “Thank noseweek: by me.” generated not were they though even up the R7,000 costs to get my line back suck havingto up endedhavewould I suspicion that without your assistance finally lay this matter rest.to have I a can I that relieved re- I’m and been connected have lines My card. 3G the for debited been has that money the made for credit full a me give to decision the MTN everything, explained I Sweet. And alittlesour. to wrote MTN later, days few A Gill Marcus, Tito Mboweni and friend

What are they HIDING? The ANC government was told in a secret report how apartheid-era government operatives aided and abetted the theft of hundreds of billions of rands from the State – and how substantial sums might be recovered from those responsible and from the European bankers who helped them hide the loot. But, mysteriously, the Mbeki cabinet and the Reserve Bank decided to do nothing about it. Why?

fter a vitriolic disinforma- the apartheid era – frauds that their Bank shareholder, management con- tion campaign led by Re- ANC successors have until now cho- sultant Michael Lang of Germany. serve Bank governor Gill sen to cover up for reasons that must Lang, who apparently has ties to Euro- Marcus, an amendment still be explained. pean military and intelligence circles, to the current Reserve Quite apart from its startling con- is among the Reserve Bank share- Bank Act, tailor-made to tents, the document casts a whole new holders who have for some time been silence the bank’s private light on Thabo Mbeki’s and Trevor demanding a full audit of the Bank’s shareholders, has hur- Manuel’s roles in setting up the 1999 gold reserves and other assets. In his riedly been tabled in parliament. arms deal as a major source of party submission, the German investor pro- ABut, instead of silencing its critics, funding: we now know that they had tests “in the strongest terms” against the proposed Bill has whipped critical just been shown how, for more than the Bill, which he calls a “resounding Reserve Bank shareholders into furi- a decade, their Afrikaner nationalist slap in the face of every democracy ... ous action – and brought to light an predecessors had done many similarly a deception to put sand in the eyes of explosive secret document in which corrupt kick-back deals! the South African nation”. the Mbeki government was given a de- Extracts from the secret document To his submission Lang attached tailed account of the extraordinary ex- were attached to a submission made just five pages tent of frauds on the state perpetrated on 25 May to Parliament’s Standing from a much by the Afrikaner nationalist elite in Committee on Finance by a Reserve longer report

noseweek Se p t e m b e r 2010 9 submitted to the South African Secret misappropriated during the apartheid ber 6, 1997. In it Ciex were instructed Service (SASS) in 1999 by a London- era, with a view to recovering some to report to the government through based firm of private investigators pretty substantial sums of money, most the Secret Service, and their first pri- called Ciex. The extract from “Opera- of it still hidden abroad. The Ciex re- ority was to be the recovery of the il- tions on behalf of the South African port contains a strategic plan, “Project legal gift of R3bn or so that Absa Bank Government 1997-1999” is, however, Spear” designed to do just that. had secretly been given by the SA Re- enough to show that Ciex was com- The final page of the contract be- serve Bank. missioned by SASS to investigate how tween the South African government Within no time Ciex was able to republic funds were stolen or otherwise and Ciex – amongst the pages sub- port: “Potential profitability of the op- mitted to the Select Committee, bears eration is illustrated by the following the signature of former spymaster amounts which Ciex has to date iden- Billy Masethla, chief of SASS at the tified and provided Government with time. The signatory on behalf of Ciex the opportunity to recover: is Michael Oatley, once an illustrious n R3.2bn from Absa senior member of Britain’s foreign n R3bn to R6bn from Sanlam and intelligence service, MI6. (Oatley’s Rembrandt On a delicious heroic role in achieving a settlement n Up to R5.5bn from Aerospatiale/ with the IRA, bringing a semblance of Daimler-Chrysler peace to Northern Ireland for the first Among other culprits identified were Swiss role time in half a century, and his role in state arms procurer Armscor and a the search for Saddam Hussein’s gold former senior apartheid cabinet min- are well documented.) He was subse- ister identified only by the code-name quently a Managing Director of US “Gnome”. [See box.] corporate investigators Kroll, and left A great deal of the money had, it Kroll to become a founding member of transpires, disappeared with the ac- ames Cross is said to have played a Ciex – which set up offices in a base- tive but secret assistance of the South critical role in negotiating the terms ment across the road from Bucking- African Reserve Bank. Page 3 of Mr Jon which the Swiss came to the res- ham Palace. Lang’s attachment outlines how Ciex cue of the apartheid government when, The contract was signed on Octo- was supposed to “develop leverage” at about the time he joined the SA Re- serve Bank, the sovereign debt world declined to renew their facilities to the RSA. Despite conclusive evidence of fraud, Six months or so after standing down as the Reserve Bank deputy governor in 2001, for “serious health reasons”, Cross the bankers escaped prosecution popped up in a number of gold and diamond companies with very strong links iex's summary of events relating to its inves- telligence [Mufamadi?] with the Ciex to Switzerland. The following potted tigation of the Absa lifeboat: team that included Sir Kit McMa- “In reports delivered to SA Se- hon (former Deputy Governor, Bank biography appears on the website of C curity Services (SASS) on 29 Novem- of England), Pierre du Toit (senior Namakwa Diamonds, one of the compa- ber 1997 and 8 January 1998, Ciex partner of Arthur Andersen SA) and nies of which he is currently a director: produced a full account of the manner Eberhard Bertelsmann SC, a past “Mr Cross joined the South African Re- in which public money had been mis- president of the Pretoria Bar [now a serve Bank in 1986 and stepped down appropriated. It described the nature Pretoria High Court judge]. from his position as senior deputy gov- of the illegalities, including criminal “Provisional agreement was reached ernor in 2001. He has since chaired the fraud by senior Absa managers and that recovery should be pursued. Ciex board of directors of the South African board members, the illicit profit-mak- predicted that Absa and Sanlam would Mint Co (Pty) Ltd and the South African ing by shareholders, and the roles of obstruct the process and develop false Bank Note Company (Pty) Ltd from 2002 participating individuals and inter- suggestions of a danger of systemic to 2006, as well as Highland Gold Min- ests. Expert legal and financial opinion risk. Which is precisely what they have ing Limited from 2004 to 2008. James was included indicating that govern- since done. To establish a publicly rec- currently chairs the Financial Markets ment might safely and legally seek re- ognisable framework for recovery, the Advisory Board in South Africa, is dep- covery of sums up to Rl0bn from Absa matter was passed to Judge Heath for uty chair of the Policy Board advising and its shareholders, and that crimi- formal investigation. Ciex assisted his the government on market policy and nal charges could be brought against enquiry. Meetings were held with the a member of the board of the Finan- the principal individuals concerned Bank of England (and other interna- cial Services Board in South Africa. He is for major acts of insider-trading and tional banking institutions). chairing the commodities trader Swiss false accounting. “Ciex also reported regularly to Gold DMCC, based in Dubai, and is a di- “All this material was discussed on SASS on the strategy and activities rector of MKS Finance Geneva.” 13 and 25 January 1998 by the rel- of Absa management in obstructing evant ministers of Justice [Omar], Heath and developing a number of Investigators believe Cross has a lot to Finance [Manuel], Trade and Indus- spurious defences, while at the same explain – and a lot to tell. try [Erwin], Labour [Mboweni], In- time making actual provision (in their

10 noseweek Se p t e m b e r 2010 with the SARB and Absa to “recover and “defamatory”. for such a contingency.) funds” such as “Illegal lifeboats/sub- Noseweek readers have, of course, The real mystery is: why would first ventions by SARB”. long known (see nose18) that the Re- Mboweni, then Marcus, both senior, These are the same “illegal lifeboats” serve Bank’s illegal “lifeboats” (mas- well-informed members of the ANC’s about which various Reserve Bank sive but secret free handouts to po- post apartheid government, feel the shareholders, including another Ger- litically well-connected banks) were need not only to plead ignorance of the man shareholder, banker Michael Duerr no mere “notion”. Thanks to Mr Lang, matter but declare it ‘non-existent” – (see noses101,103,115,127&129), have noseweek can now state categorically and definitely not up for discussion? for the past year been asking ques- that Ms Marcus and her predecessor, In effect feel obliged to cover up major tions – questions which the Bank Mr Mboweni, knew that the illegal misdeeds of the apartheid era? has simply refused to answer. “What gifts which the SARB chose to dis- Had the ANC government – on financial assistance packages, life- guise as “lifeboats” in fact amounted Thabo Mbeki’s watch – chosen to use boats etc. are responsible for losses to to plain fraud – and that they had cost Ciex’s evidence of the apartheid elite’s the SARB? Where have those billions the general population many billions, misdeeds as a handy precedent, rather gone?” Duerr demanded to know from while contributing hugely to the per- than expose them? Or had they sim- the new governor, Gill Marcus in April. sonal wealth of just a few members ply used their secret knowledge as a (His similar questions to her predeces- of the Afrikaner elite of the apartheid lever to extract a quid pro quo from sor, Tito Mboweni got no answers – but era. At the time of Project Spear, Gill Absa and its shareholders, in the form appear to have precipitated Mboweni’s Marcus was the Deputy Governor of of a “comfortable relationship” where- early retirement.) the SARB. She had been been given by Absa extended generous credit to Quite logically Duerr reckoned that an expert briefing about the purport- the party and its membership elite? A billions of lost assets would obviously ed “lifeboats” and their illegal status. comfortable relationship that has con- have diminished the bank’s share val- And, most importantly, it had also tinued since UK banking group, Bar- ue, and that, as a shareholder of the been explained to her why recovery of clays, took control of Absa. (Barclays bank, he was entitled to demand an the money from Absa - in instalments also played a leading role in financing explanation from the bank’s manage- over four years – posed no risk to the the scandalous 1999 arms deals – see ment. In May, Marcus, too, refused to South African banking system. (The below.) answer the questions, while dismiss- bank had, in fact, itself made provi- Lang’s five-page extract from the ing the “lifeboat notion” as “scurrilous” sion in it annual accounts at the time Ciex report submitted to the Standing Committee on Finance is public record; all committee members received them balance sheet) to pay R3.2bn over a Cross, and without having been shown as part of the hearing’s submissions. four year period, should Heath or the any of the material which described The full Ciex report runs to 62 pag- government require them to do so. and exposed the fraud and the man- es, plus some fascinating annexures – “In mid-1999 Ciex reported to SASS ner in which recovery could safely be and, as luck would have it, noseweek that Absa director Danie Cronje had achieved. Ciex arranged to rectify this has come into possession of the 57 pag- told one of the bank’s financial advisers situation, and to supply Gill Marcus es still missing from the parliamen- in London: ‘We are getting the South with a more balanced picture, includ- tary record. They describe a number African government pretty much un- ing the advice of distinguished inde- of secret schemes that, in the latter der control in this matter, and might pendent experts. apartheid years, accounted for the well get away with no more than a “Heath judged the ‘lifeboat’ to be il- theft or misappropriation of around warning.’ Ciex also reported to SASS legal and due for repayment, but has R200bn. Yes, TWO HUNDRED BIL- that Reserve Bank deputy governor yielded to pressure not to demand re- LION RAND; that is many times what James Cross, a close associate of both payment. It is incontrovertible that the ANC spent on the 1999 arms deal! Danie Cronje and Stals, was working payment over a period of time would More significantly, the secret Ciex re- actively with Cronje to frustrate any pose no risk to either the bank or the port explained how the attempt to seek recovery. Cross con- system. Absa had, indeed, ear- post-apartheid South Af- tinued to claim that the subvention of marked funds for the rican government might Absa was a ‘normal support operation’, purpose – but set about recovering the despite overwhelming evidence to the is delighted stolen money – a large contrary – finally and conclusively ac- to be able to chunk of it within just cepted by Heath – and the specific ad- keep them. six months. vice of the Bank of England. Absa direc- For some reason, “It became apparent that the Minis- tors and sen- however, the ANC ter of Finance [Manuel], the new Gov- ior managers government decided ernor of the Reserve bank [Mboweni] who have made to ignore various and the Head of South African Reve- personal for- reports it received nue Services were inclined, or were ac- tunes through from Ciex – or at cepting advice, not to support Heath. fraudulent share least not to insti- Within the Bank deputy governor Gill deals made possi- tute any of the Marcus, responsible for supervision, ble by the lifeboat actions they sug- was being invited to take a view of the are relieved to es- matter based on deliberately menda- cape prosecution or South African cious advice from her colleague James censure.” Reserve Bank, Pretoria

noseweek Se p t e m b e r 2010 11 gested to recover funds from the old government decided it had no need to cally. (Sanlam had been target number Afrikaner Nationalist elite and the recover those billions. two on Ciex’s proposed recovery list.) foreign banks and corporations that After Gill Marcus’ earlier term at It came as no surprise, therefore, had assisted them in their allegedly the reserve bank (she was Mboweni’s when, in May, Marcus asked the Par- fraudulent enterprises. deputy for two years), she spent a few liamentary Finance Committee to (In the light of the secret memo that years as executive chairperson of one keep the Reserve Bank’s response to the Sunday Times last month un- of celebrity fraudster Brett Kebble’s the private shareholders’ submissions earthed relating to Thabo and Trevor’s goldmining operations. (They were – including the half dozen pages ex- plans for ANC fund raising on the back Kebble’s dirtiest years, so she will un- tracted from the Ciex report – under of the arms deals then under negotia- doubtedly have learnt a thing or two wraps. Her request was granted by the tion – and at about the time that the about the “dark side” of business.) committee. A sign of things to come. deal with Ciex was finally called off From there she moved to Absa, to be- In June, after much ado, the com- – it seems the government may well come her favourite bank’s very protec- mittee relented and decided to make have been more interested in what tive chairperson, succeeding Danie the Reserve Bank’s two-word response Ciex could tell them about how the Cronje, the man who had personally to just Lang’s submission public. “Not apartheid elite had managed to chan- pulled off some of the biggest schemes understood”, was the Bank’s evasive nel state funds to advance their own to misappropriate public funds. (Cron- comment. party or personal interests, rather je moved up to join the Barclays board Due to a twist of fate the South Af- than in recovering the misappropri- in London.) rican government, the Reserve Bank, ated billions.) Last year Marcus returned to the Absa and, ultimately, Barclays might Ciex’s contract was not renewed in Reserve Bank to succeed Mboweni as soon be put in the position of having 1999 and Ciex was never allowed to governor. “There’s no doubt that she is to explain their side of the story. The earn its agreed 10% commission on re- the best-qualified person for the job,” contract with Ciex provided for a com- coveries – because the South African Sanlam CEO Kriel declared ecstati- mission on recoveries made (10% on SA officials ignored opportunities for recovery of huge amounts of public money Extracts from the Ciex report to the South African government:

Reserve Bank assets South African cabinet minister, subsequently that he was South African and had been a “At a private meeting with senior Bank of identified from photographs, arrived at Dulles minister in the South African government. He England officials on 2 December 1993 the Airport, Washington DC from the Bahamas. said that he was in the US to find help in in- recently appointed secretary of the South He was accompanied by a senior partner of vesting certain funds that he had “secured” in African Reserve Bank said he had discovered the German law firm of Punder Vollhart We- South Africa and which had been exported, that the SARB had considerable assets, built ber Axte, of Frankfurt. mainly via Liechtenstein and Panama, and up over the years by Dr Stals, which had not “The two men arrived in a private jet leased that he wished to “resurface” them in the US. been disclosed to the Minister of Finance. He from a company owned by Charles Oliver, a “Gnome added that the initial sum in- also said that there were two rooms full of businessman with strong South African con- volved was $240m, but that there were very documents at the Reserve Bank to which only nections. As they had cleared customs and considerable additional funds available if Dr Stals had access.” (SASS took no action to immigration in the Bahamas there was no suitable measures for investment could be secure the documents.) record of their arrival in the United States. established. He said that no one would at any (The aircraft's fuel bill for the Bahamas stop- stage be allowed to know the true origin of Gold audit over confirms the flight). They were picked up the funds, but that he could undertake that “Evidence of discrepancies over the years be- on the tarmac by a local limousine company they were “not contraband or narcotic-relat- tween gold mined and gold held by the Bank, and were driven to the Mayflower Hotel in ed”. The utmost discretion and confidentiality and between gold sold by mining companies Washington where a room had been booked must be maintained. He would be employing and gold actually sold through the gold pool in the name of Anke Sessler of Punder Voll- physical protection operatives while in the in Zurich, is available to be examined. hart. US as he felt under threat. “The Volcker Committee [in the US] has “Also involved in arrangements for the “Ciex reported this information to SASS in drawn attention to possible similarities be- meeting was Klaus Weber, owner and man- early 1998. SASS officers first obstructed the tween the irregular behaviour of Swiss Banks aging director of Seal Bureau of Investigation enquiry and then, either directly or through in relation to Holocaust gold and the poten- of Randpark Ridge, Johannesburg. indiscretion, alerted the target, Gnome, to tial for irregular handling of South African “Weber is a German national and was for- the fact that he was being investigated by gold. lnvestigation in this area offers potent merly a member of the East German Police Ciex. Ciex has not been able to secure any opportunities for negotiation with the Swiss VIP Protection and Counter Terrorist Unit. Seal official support in pursuing this enquiry – over the future of South African gold market- offers executive close protection and aviation which could lead to recovery of hundreds of ing.” security services. millions of dollars and would be of obvious “At the Mayflower, Gnome met US lawyers political significance. Informal discussions Gnome and financial advisers. He told them that he with law enforcement agencies in the United “On 11 February 1998 Gnome, who is a former did not wish to identify himself to them, but States have indicated considerable willing-

12 noseweek Se p t e m b e r 2010 the first R100m, 7.5% on the balance) ternational group pursuing massive opponent into bankruptcy before he – that being the declared aim of the reparations claims which it may be can get to court. project. open to the SA government to pursue If Ms Marcus doesn’t quickly get her Now Oatley wants his percentage, against those who benefited illegally act together on this one, so that she even if the Mbeki administration had during the latter days of apartheid. and the government can be seen to be (and the Reserve Bank still has) their The claim related to the so-called serving the interests of ordinary tax- own mysterious reasons for not want- “Lifeboat” is only one of these. payers, she could find herself starring ing their 90%. What puts Ms Marcus and the in an international farce of monumen- The aim is apparently still to get management of the SARB in a spot, tal proportions, dragging the country’s Absa or its parent, Barclays to pro- and the SA Government if it does not reputation – and that of its bankers duce the money, in preference to the move quickly to deal with the matter, – down the drain with her. South African tax-payer having to do is that as a result of their maltreat- Risley appears to be a man of many so. (Intriguingly, Barclays was the lead ment of the SARB private sharehold- business talents and one of them is bank in compiling the finance package ers they find themselves standing in 3rd-party litigation: bankrolling fi- to fund the South African purchase of the path of a very well-established nancially worthwhile lawsuits in Gripen fighter planes and Hawk train- reparations campaign funded by Ca- well-chosen international courts on ers, one of the biggest, most expensive nadian fisheries and telecommunica- behalf of others, winning them, taking and most suspect components of the tions gazillionaire John Risley. Risley a share of the profit – and looking for 1999 arms deal. The South African and a Caribbean business partner the next suit. government tried desperately to keep bring a joint net worth in excess of For his sins he also happens to be that finance contract secret. See nose $4bn to the litigation table, so the Re- a mega-benefactor to various, mostly 43.) serve Bank can forget about produc- Canadian, charities. According to reliably informed ing its usual parade of lawyers whose Combined suit value of the Absa sources Oatley is now part of an in- main defence strategy is to see their crookery, misleadingly described as a “lifeboat”, plus the proceeds of knock- on share dealings and alleged illegal ness of the US authorities to pursue the mat- $300m per annum to the Cayman Islands enrichment by Absa directors: £1bn ter if officially tasked. to facilitate strategic purchases. The funds (going on R12bn). According to the “Note: There is also prima facie evidence were not used for that purpose, but for a Ciex report, most, if not all, Absa di- of Gnome's involvement in unauthorised disguised [financial] rand 'round-tripping' rectors at the time (including Cronje banknote production. Sources independent operation'. The sums available were invested that Barclay’s proceeded to honour of the Gnome enquiry have pointed to the from the Cayman Islands into Escom stock with a position on its main board) are existence of this activity which is known to and the annual profits from dealing in this also liable to prosecution. have been used to generate funds for special stock, averaging between $50m-$130m Papers confirming the existence of operations under the previous government.” per annum, were not repatriated. Recovery the lifeboat, that it was a fraud (and could be pursued.” did not accord with the accepted cen- Armscor tral bank practice generally described At the beginning of 1999 Ciex was encour- Procurement frauds in the US as a “lifeboat”), and the on-going re- aged by SASS to support an investigation “Between 1987 and 1993 South African of- ordered by the President into Armscor trans- ficials and US suppliers collaborated to de- sponsibility of management in Absa actions. Ciex has identified: fraud the government by ordering large and Barclays have been drafted by n The main bank accounts through which items of expensive equipment which were two South African Senior Counsel commission payments were made by Arms- paid for but not delivered. The officials ac- and a Queens Counsel in London. cor on arms deals from 1972 onwards. cepted invoices from the supplier for ad- (Barclays continues to benefit from n Evidence of payments of $20m per vance payment, failed to note non-delivery, the original theft and is considered month through bank accounts in Luxem- and blocked all subsequent enquiry. The vulnerable. Absa is currently chaired bourg and elsewhere, controlled by the Arm- brother and nephew of the then finance by Dave Brink who, like Cronje, was a scor unit in the Paris Embassy. Payments con- minister, [name withheld], were involved party to the original theft and fraud.) tinued at this rate from 1985-I995, reaching in setting up corporate entities in Jersey to Risley and Oatley are businessmen. a sum far in excess of the cost of equipment hold the proceeds of these operations and in The length of Risley’s yacht allegedly ordered. providing billing mechanisms for products exceeds 200 feet – but why not get a n Potential undisclosed liabilities to Gov- and services which were sold to the govern- bigger one? As things are looking now, ernment through use of the Armscor pen- ment, and on which deposits were paid, but we could end up paying for it. sion fund to support a US$200 million credit which were not delivered. More interesting, however, will be for arms deals. “(Similar fraudulent schemes were oper- the response of the South African n Witnesses offering evidence of major ated by officials and ministers in relation to Government to the obvious question: misappropriation of public money by senior bond issues and the creation of spurious law why did Thabo Mbeki, Trevor Manuel Armscor officials. suits against SA ministries on behalf of US and Gill Marcus decide not to recover “Information available to Ciex suggests suppliers).” billions of rands, already set aside by opportunities for huge cash recoveries and also potential liabilities of which govern- Bond issues Absa for repayment at the time? ment is unaware.” “The Reserve Bank is believed to have issued Sooner or later we’re going to find the undisclosed tranches of bond issues to Absa, answer. Meanwhile, read the shocking Trust Bank Frauds 1991-1992 in dollar denominations. extracts from the Ciex report, read our “From 1986 to 1992 Trust Bank was secretly “These unrecorded transactions represent a editorial and then take your guess at authorised by the Reserve Bank to export potentially heavy liability for government.” what the answer might be.

noseweek Se p t e m b e r 2010 13 Wounded landscape at Schmidtsdrift

Diamonds aren’t a Griqua’s best friend

hen dispossessed communities were handed back 31,816ha of land along the western bank of the Vaal River outside Kimberley Two communities were supposed to inW 2000 there was much jubilation – accompanied by hopes of soon-to- be-discovered riches. The 320sqkm benefit from gems mined from restored property – six farms collectively called Schmidtsdrift – is known to contain land – but one was left out in the cold an abundance of diamond-bearing al- luvial gravels. Two communities were the re-inher- individuals approach different mem- Makokwe and Jurgen Kögl. Two others itors of Schmidtsdrift – one Tswana- bers of the claimant group, promising on the board in those early days were speaking and the other descended heaven and earth if they take them as one Dawn Maropefela (aka Dawn Ma- from Griquas, both having been booted the community’s strategic partners,” role, wife of drunken driver Moses; see off the land in 1968, in the dark days he told the Mail & Guardian. “Each page 16) and that ghastly upstart and of apartheid. The restitution has been business targets a different individual unsuccessful litigant, Ronald Suresh a delicate operation from the start, and in the end you have a community Roberts. given that the dominant Tswanas at war with itself.” (In July 1999, New Diamond Corpo- have for a long time considered them- Back in 2000, a settlement agree- ration’s bank account had been boost- selves superior to the ever-dwindling ment under the Restitution of Land ed by a R408,000 payment of money minority Griquas. Act saw the establishment of a Com- belonging to global aerospace, defence Stirring diamond wealth into this munal Property Association, or CPA, and energy group Rolls-Royce plc, who already-volatile cauldron has created to take transfer and ownership of had deposited R1.9m into the trust an explosive mix, as this cautionary Schmidtsdrift. The CPA was comprised account of Tiego Moseneke’s law firm tale relates. of two equal partners – the Tswa- for a secret payment to private spooks’ The problems caused by mining na Trust and the Fonteintjie Trust, firm Kroll (nose78). In 2006 Moseneke companies homing in on diamond-rich representing the Griquas. was struck off the roll of attorneys for terrain in the Northern Cape subject Hot on the scene that year was the unprofessional conduct, bookkeeping to land-restitution claims have been BEE mining company of New Dia- contraventions and alleged trust fund highlighted by regional land claims mond Corporation – chairman Tiego shortages.) commissioner Sugar Ramakarane. In Moseneke (brother of Deputy Chief The Schmidtsdrift CPA was giv- 2005 he singled out Schmidtsdrift as Justice Dikgang Moseneke) and in- en 20% of a New Diamond subsidi- a classic example. “Mining houses or cluding such notables as Gopolang ary that would operate the mining,

14 noseweek Se p t e m b e r 2010 Schmidtsdrift Mining Enterprise, and R1m arrived at the offices of the CPA. ing New Diamond Corporation alive the association was promised royal- It was paid into the old FNB bank ac- in order to utilise its prospecting li- ties of 5% of the gross value of its dia- count opened by the Tswana Trust be- cence. mond sales. fore the association was formed. How- Explaining the current court action, Mining, on a prospecting licence, ever, none of this money found its way Leonardo Steenkamp states in court began in 2001 but was always a stop/ to the CPA’s 50% partner, the Griquas’ papers that at 29 February 2008 New start operation. In October 2003 the Fonteintjie Trust. The R4m balance? Diamond Corporation’s liabilities ex- Department of Minerals and Energy If it was ever paid, the Griqua half of ceeded its assets by R31m, making suspended operations after discover- the CPA saw none of it. the company insolvent and unable to ing “a serious lack of management on Also in 2005, the CPA received pay its debts. “Accordingly, it seeks the prospecting area when it comes to R95,000 for livestock losses to the to divest itself of its most important general environmental management Tswana faction within the CPA. The asset, namely the prospecting rights and rehabilitation”. Pollution control Griquas received nothing for their that it has,” he says in his founding facilities at diesel storage tanks, oil similar livestock losses. affidavit. Steenkamp adds: “It is clear storage facilities, workshops, washing In 2006 New Diamond Corpora- to me that what New Diamond Cor- bays and hazardous waste sites were tion’s holding company, Nare Dia- poration intends doing is transferring “non-existing”. The following year New monds, was listed on the Australian its prospecting rights to New Africa Diamond’s application for a full-blown Stock Exchange. And at Schmidtsdrift Mining and thereby rendering (itself) mining licence was rejected after the relations between the Tswana and hopelessly insolvent so it can seek and property association wrote to the min- Griqua factions on the CPA went from obtain a winding up order and thereby erals minister informing her that no bad to worse. In March that year Le- divest itself of any contractual obliga- royalty payments had been made. onardo Steenkamp, co-trustee of the tions that it may owe its creditors, On top of this, reported the associa- Fonteintjie Trust, had to be escorted including the Fonteintjie Trust.” tion, livestock had been lost in slimes to his car by police after his life was Not that New Diamond Corporation dams created by New Diamond and threatened by a Tswana mob at the has done too badly at Schmidtsdrift. there was urgent need for rehabilita- CPA offices. Soon after its Australian listing, hold- tion of the environment, which had This whole sorry saga is due to be ing company Nare was announcing been trashed by the company’s sub- unveiled in Kimberley High Court that since April 2006 the farm had contractors. There was also no social this month when, on 14 September, yielded a total of 3,849 carats at an and labour plan. The lack of a mining the Fonteintjie Trust joins Represen- average price of $1.161/carat, raising licence didn’t deter New Diamond; it tation Investments in seeking an in- a total of $4.5m. This included a rare simply applied for, and was granted, terdict restraining New Diamond Cor- 235-carat gemstone that was sold for a “new order prospecting right” – and poration from applying to the Minister $2.4m. A more recently discovered carried on digging. for cession of its prospecting rights at gemstone of 66 carats had still to be At the beginning of 2005 Craig Ol- Schmidtsdrift to a Swiss-based com- valued. iver, new chief executive of New Dia- pany, New Africa Mining. An affidavit filed by New Africa mond, told the CPA he wanted to “do Tiego Moseneke is long gone from Mining director Gideon Kotze states things right”. The company would pay New Diamond Corporation, having that since April this year diamonds to R5m royalties to the CPA, with an sold his shares to Nare Diamonds. the value of $290,000 have been recov- initial downpayment of R1m. He also Nare in turn became Lonrho Mining ered at Schmidtsdrift. Comments the pledged that both Tswanas and Gri- SA before going into liquidation last Griquas’ trustee Leonardo Steenkamp quas would be employed once mining year. New Africa Mining came to the in court papers: “This is a substantial was in full flow. (Of the 100-odd locals rescue, taking Lonrho out of liquida- amount of money and New Diamond eventually on the payroll, all were tion and by April this year it was New Corporation has done nothing to ten- Tswanas.) Africa Mining that had taken over der the royalties owing and payable to In September 2005 a cheque for mining at Schmidtsdrift, albeit keep- the Fonteintjie Trust.”

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noseweek Se p t e m b e r 2010 15 Smashed!When a multi-millionaire businessman went on a drunken rampage he wrecked a lot more than just the seven cars he tore into

early five MONTHS have passed driving against Marole had been “pro- John Wingrove fought to lift the car since multi-millionaire busi- visionally withdrawn”, President Zuma trapping Christine, but could not man- nessman Moses Marole ran announced in parliament the inclu- age the task alone. However, diners riot in a Sandton parking lot, sion of 50-year-old Dawn Marole in his who witnessed the whole thing from his luxury Mercedes S class Presidential State-Owned Enterprises the balcony of Col-Cacchio’s, rushed ploughingN into seven cars and severely Review Committee. to help. They included a medical man, injuring a woman, following an after- The event took place in the early ophthalmic surgeon, Dr Rob Daniel. noon spent celebrating his 67th birth- evening of 12 April. Christine Botha, an “Dr Daniel took control of the situa- day. Although Marole had nearly three independent HR consultant and single tion and saved my life,” says Christine. times the legal amount of alcohol in his mother of two grown-up daughters, had “He told me to take little side steps to- blood at the time, when noseweek went just had dinner with John Wingrove at wards him and when I was out from be- to press the tycoon was out on R1000 Col-Cacchio’s pizzeria in the Benmore hind the car he said ‘just fall back into bail, unencumbered by inconvenient Shopping Centre in Sandton. my arms’. Which I did, and he laid me charges such as drunken or reckless “It was early – about 7.45 in the down. If I had moved forward I could and dangerous driving. evening – and I was standing beside my have caused terminal internal inju- Besides being chairman of BVI Con- car with the door open, about to step in,” ries.” sulting Engineers, he holds director- says Christine. “I looked up and saw a Dr Daniel sat holding Christine’s ships in as many as 31 companies, in- silver Mercedes reverse out of a park- hand until medics arrived. Another cluding Phungo IT Solutions, Platinum ing space into a Mini Cooper that was Col-Cacchio diner, audiologist Shabiera Communications, Uku Engineering parked there. The car guard walked Allie, went with Christine in the ambu- and ad agency Vutha. He’s in the BEE up and tried to convince the driver to lance to Morningside Clinic and stayed star-studded True Class Consortium, get out of his car. The next thing I saw with her until family and friends ar- whose members include Yvonne Chaka this man speed off very fast. He tried rived. Chaka, media mogul Basetsana Kuma- to turn but couldn’t manage it, and Christine was admitted and doctors lo and Lot Ndlovu. smashed into a row of parked cars. told her that her pelvis was fractured His wife is Dawn Marole, whose “The next thing I saw was all these – in three places, as it turned out. “I directorships have included Kumba cars being pushed my way. There was have never experienced pain like that,” Resources, Premier Foods, Tsogo Sun no way I could get out of the way, it she says. “I was on very strong painkill- and JP Morgan. Those who feel that was so quick. Then I felt this incredible ers, and had to lie flat on my back for the couple’s status as leading BEE pain running through the bottom part a week before they started training me hotshots seems to have placed them of my body. My initial thought was that to take little steps on the walker.” above the law, point to the fact that on my back was broken. I realised I was Back home in Fairland, and flat on 12 May, the day the police announced pinned between my car and the one her back for a further three weeks, two that charges of reckless and negligent that was parked next to me.” full-time nurses were brought in to

16 noseweek Se p t e m b e r 2010 care for her. “I couldn’t do anything for up’.” “I ran forward and all of myself.” It so happens that the McLeods’ us were focusing on getting After five weeks she started taking 11-year-old son and the Maroles’ boy Christine free. I saw there was a doctor, short rides within the estate where she of 10 both attend St Stithians, a top and left it. I ran back to the fancy Mer- lives, in a wheelchair pushed by one of private school, though they are in dif- cedes and told its driver to get out. His her daughters. “About six weeks later ferent years. “I feel bad for Moses’s phone rang and I grabbed it and said: I was able to move around a bit more children,” says Joanne McLeod. “Dawn ‘You’re not speaking to anyone!’ He freely on the walker and after two doesn’t even know who I am. She came was very slow, speaking slowly¸moving and a half months I was able to go on and sat next to me in the school chapel slowly. He kept saying: ‘I don’t know crutches.” the other day. I’m not fighting with her, what happened. I can’t explain it. I At the time of the accident Christine she’s very nice. I’m sure Moses is too, don’t know what’s going on’. Possibly was generating R5,500/day as an HR when he’s not drinking. Our mutual he was in shock, but to me it looked like consultant – and was booked every friend says Dawn is completely humili- drunkenness; he was a bit unsteady on day. That income came to an abrupt ated and so embarrassed about this his feet. He wanted to walk into the halt and only a couple of weeks ago whole thing. She said that Moses was shopping centre. I said: ‘Come back, was she mobile enough to get out and in hiding, because he was so ashamed you’re not leaving the scene’. meet clients. Counting the cost, she about what happened. But he doesn’t “At no stage did I see or hear any of reckons that Moses Marole’s spin in look that ashamed to me¸ because eve- the so-called white people being racist the Benmore parking lot has cost her ry time you see him he’s out drinking.” to him, heckling him, grabbing him, in- close to R200,000 in damages and loss How does Joanne know that? “About sulting him. At no stage did I hear any- of income. That’s not counting R40,000 five weeks ago my husband and I were body being less than completely civil to damage to her Audi A3 car. “This man having a drink at the Southern Sun ho- him. Which he did not deserve. is still walking free and until today he’s tel in Hyde Park. My husband’s in pack- “I saw his wife arrive and later she made no attempt to even find out if I’m aging and Marole has contacted him so drove his car off. The cops took him Smashed! still alive!” many times about doing a deal. Moses off in a van. I said to my friend: ‘That So what did the other diners see that came up to us, blind drunk again, put breathalyser test is going to disappear. night? Joanne McLeod, wife of packag- his arm around Justin and said: ‘Hello That docket’s going to get lost. That ing company boss Justin, was driving Justin, we must do a deal, we must do case is going to go nowhere’.” her husband’s Merc that night. It was a deal.’ In fact, the investigating officer, an one of the seven cars hit by Marole, and “Moses then said: ‘There’s somebody Inspector Nkosi, has been extremely the Merc’s damages bill alone came to here I need to meet. Is this your wife?’ diligent and has built up a thick file on more than R100,000. I said: ‘No, we’ve actually met’. He said the case, vowing privately that he will “When he was bashing all the cars ‘Really, remind me.’ I said: ‘On your not give up until he sees Moses Marole and he tried to drive off¸ one guy birthday. You smashed my car and all stand in court. His investigation was grabbed him and pulled his cellphone,” the other cars.’ He said to my husband: completed weeks ago, but there’s been says Joanne. “And they took his car ‘Is she joking with me? Oh, I’m so hu- an unexplained hold-up in getting a keys from him. Then the police came miliated, I’m so embarrassed’.” decision from the senior prosecutor and another woman took his cellphone Another diner at Col-Cacchio on the at Randburg magistrates court. The and phoned his wife. She arrived with fateful night was consulting engineer breathalyser test did not, as Frik Stey- a very high-powered looking woman. Frik Steynberg. “Fifteen metres in front nberg feared, disappear. The result, They had class. I thought they were of me we saw this noseweek can dis- going to sneak him off, but a friend of fancy Mercedes re- close, is that Moses mine who knows them says that Dawn versing into a Coop- Marole’s blood alco- took Moses to the police to make sure er,” he says. “A secu- hol level at the time that he was breathalysed. rity guard walked was 0.14g/100ml, al- “Yes, she took him and made sure over and that guy most three times the they breathalysed him. I’m assuming put his foot down; legal limit of 0.05. it’s because she’s sick and tired of his he sped away from Moses Marole de- drinking. us at great speed. clined to discuss the “Moses sat down with a policeman He couldn’t get his case. “Well, I’m sorry and I walked up to see what was hap- turn and he took out sir, I couldn’t really pening. Moses was saying: ‘Ag, these three cars. He then talk to you about white people, they’re just saying that! reversed at speed. something that’s sub How can I have hit seven cars?” Then he selected judice, so to speak. I The next day Joanne phoned Marole forward and tried to really apologise.” (No from her swish Sandhurst home and make his turn again. charge has been laid.) informed him that he had inconven- He couldn’t and took Was he the driver of ienced her. “I told him that now I’ve got out the next three the Mercedes that to pay for car hire and my husband had cars¸ in the process hit those cars? “I re- to pay R5,000 excess on his car insur- squashing Christine ally apologise, but I ance. Moses said: ‘I’m not going to have between two cars. cannot speak and I this conversation with you, you must At that stage he re- don’t really want to speak to my lawyer. None of this hap- versed quite fast and hang up on you. It’s pened. White people made the story banged into a jeep. Christine Botha rude, eh?”

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WATER LEAKS Don’t call the plumber rather call who he calls that’s FINDALEAK he nose130 story about the garding two statements he has lodged Leak detectors also call us for help extraordinary influence that concerning magistrate Hole – he SEE OUR WEBSITE FOR DETAILS Northern Cape regional court didn’t bother to get a Commissioner www.findaleak.co.za president Khandilizwe Nqada- to witness his signing those either. Call la wields in that neck of the This doesn’t mean Nqadala is re- FINDALEAK woodsT has elicited a couple of respons- luctant to use his position and con- es: the Magistrate’s Commission, af- tacts: the documents were sent to 0861-11-6306 ter claiming they’ve not received com- “The Station Commander, Transvaal 083-651-6306 plaints against Nqadala, have headed Road Police Station, Kimberley”, on off to Kimberley to take a closer look the official letterhead of the “Regional at what’s going on; and Mr Nqadala Court President/Northern Cape”. This has lodged complaints with the Kim- despite the fact that the complaint, This space is a snip at only berley police, against both noseweek crimen injuria, is essentially of a per- and magistrate Phumele Hole. sonal rather than official nature. In support of the complaint against So here’s what Nqadala has to say noseweek, the court president has for himself, with noseweek’s com- lodged an affidavit, denying allega- ments: R1250... tions made in the nose130 story. Well, n As regards his relationship with (Plus VAT) the document looks like an affidavit, ANC Northern Cape heavyweight and is titled “Affidavit” – but it isn’t John Block: “I am not John Block’s Why not try it for size? one, as it hasn’t been sworn in front of friend, nor do I help him evade the a Commissioner of Oaths. Not some- clutches of the law, if he is doing so.” [email protected] thing a magistrate usually overlooks. John Block may be granted a little Nqadala was apparently also un- smile at this: apparently, shortly after 021 686 0570 willing to commit himself on oath re- nose130 appeared, Block’s spokesman,

18 noseweek Se p t e m b e r 2010 in an article in the Diamond Fields la, or, in his absence, by his favourite Advertiser, made no attempt to deny subordinates, magistrates Smith and L BLBS Financial Services the friendship, adding that Block has Kgopa (and no one else). FSP Lic No: 31089 the right to have friends. n As regards the claim that he has S n As regards those little social gath- been rejected (more than once) by the Lydia Barley 082 442 3889 erings of key figures in the running of Judicial Services Commission, appar- Briony Burns 083 350 5079 the Northern Cape: “I have not held ently for a double relocation claim: “I Michelle Long 083 983 0122 Sunday braais for local dignitaries and have never been told or advised by the Belinda Harrison - office 011 794 4113 in particular for the MECs mentioned, Judicial Services Commission that it nor for Commissioner Mbombo.” is rejecting me, nor had I ever made a Specialists in: n On his wife’s elevation to direc- double relocation claim in the Eastern Private vehicle Finance tor in the Health Department, despite Cape.” Asset Based Finance her rather lowly qualifications: “As far n On the claim that he helped ad- Personal Loans as I know my wife has been temporar- vance a girlfriend’s career: “I have no ily appointed acting deputy director, knowledge of how Ms Bomyana was and not even a director, nor even a full appointed, not did I have her appoint- deputy director.” Jawellnofine. ed. Ms Bomyana is not my ‘bit on the SOUTHERN DRAKENSBERG n As regards the claim that he side’.” helped out Police Commissioner n On the claim that he doesn’t pull Mbombo’s husband, giving him a job his weight: “I believe that I go an ex- as personal clerk despite his lack tra mile, and that any absences I may of a matric certificate: “Mr Mbombo have had in court would be the una- SUMMER VALUE SPECIAL* has been appointed on a temporary voidable ones.” basis as a clerk in my office. He was n On the claim that he has boasted Valid until 15 December Enjoy the Drakensberg as it used to be! appointed because of his extensive that magistrate Hole is being investi- knowledge and experience, especially gated by the Magistrate’s Commission: at management levels, and was the “I never boasted to anybody about him person best suited for the responsibili- being investigated.” Did you perhaps ties which his office required. At the just talk about it? time of his appointment Mr Mbombo n As regards the claim that he and was not at all a friend, and neither is his favourites hog the lucrative away Commissioner Mbombo. If anything, trips: “The only outside trips that I R695* Mr Mbombo was severely underpaid made are those absolutely necessary *Dinner, bed & breakfast pp/n sharing. for the work he was doing.” to accomplish my functions and the Children under 12 sharing stay free! So what knowledge and experience compensation made, I believe, hardly (Subject to availability/Terms & conditions apply) does Mr Mbombo have? withstands the concomitant costs in- 0861 SANI PASS 076 583 6335 n As regards the claim that Nqada- volved in both short and long term. I 0861 7264 7277 la can, at any time, call the Police have no favourite magistrates.” www.sanipasshotel.co.za |[email protected] Commissioner and get what he wants: Noseweek’s sources are clear: mag- “Whilst I applaud the prompt respons- istrates Smith and Kgopa are the es my office has in many instances re- favourites, and have been granted ceived from the Northern Cape Police, supervisory powers over the others, I cannot think of even one instance despite being of equivalent rank. when I had to phone Commissioner Nqadala also claims that noseweek Mbombo for assistance or response. didn’t verify the story. We certainly fraud hurts Calls to other police officers in the tried: noseweek phoned Nqadala be- province have often sufficed.” fore running the story, but he didn’t WE MAKE IT n On the claim that he stifles inves- want to discuss it on the phone, and tigations into Block’s affairs, includ- asked for written questions. He then BETTER! ing an investigation into the Mandy didn’t respond to a two-page email – Bakker matter (nose126): “I never sti- apparently believing, as people often fled any police investigations, nor do I do, that if you ignore those people control the police force; I have never from noseweek they’ll go away. stifled any investigation concerning It seems that since the story ap- complainant Bakker (in fact I have no peared Police Commissioner Mbombo clue about Ms Bakker nor of any com- has left her job, apparently moving to plaint by her); neither do I ensure that the North West province. Her husband, I hear MEC Block’s cases.” as may be expected, has gone with her, Noseweek’s sources are adamant — leaving Nqadala without the services Nqadala has heard a case involving of the clerk with “extensive experience Block, and there is a written standing and knowledge”. Noseweek waits with tel. + 27 (0)11 234 2189 instruction that says that all “sensi- interest to learn what the Law Commis- www.restitution.co.za tive” cases (not defined but generally sion might have to say after their tour of understood) are to be heard by Nqada- the diamond dorp.

noseweek Se p t e m b e r 2010 19 LIES,damned lies and litigation The Law Society eyes a tangled web of fat fees and long delays

ttorney Nico Humphries, who Ord of Edward Nathan Sonnenbergs represented Iman Dharsey in rightly filed a Notice of Motion to have a long-running road accident the matter dismissed with costs. case against Glenrand MIB In his affidavit filed at the Cape (nose103), not only misled his Town High Court, attorney Ord point- client,A but, it now emerges, blatantly ed out Humphries’ failure to pros- lied when he blamed the delay in fi- ecute “in accordance with the rules nalising the matter on Western Cape governing the conduct of the honour- Judge President, John Hlophe. able court”. In April 2008 Humphries, of Ord swore that, on 6 March 2006, Michalowsky, Geldenhuys & Hum- Sibanye Bus Services served a notice phries Attorneys, told noseweek: “I am in terms of Rule 36(4) on Golden Ar- just waiting for a court date. But this row and Iman Dharsey to be included has not been forthcoming since Judge in the suit as a Third Party, which President Hlophe, who sets trial dates wasn’t contested: “Since the aforemen- and assigns judges, is always busy tioned date in March 2006, no further with his private businesses.” He add- pleadings or notices have been filed ed that the earliest likely date for a by any party to the proceeding. hearing would be “some time in 2010”. “The last formal step taken in this It turns out that the delays had noth- matter by Dharsey [Nico Humphries] ing to do with Judge John Hlophe, was the issue and service of its Sum- �1�0�0 and everything to do with Humphries’ mons and Particulars of Claims in own lack of follow-through. He simply March 2005, almost two years ago. �9�5 didn’t do what he was being paid for. Since that date, my client is unaware Mrs Dharsey was initially repre- of any further steps taken in this mat- �7�5 sented by Balsillies Inc. (now Balsil- ter to bring same to finality and/or lies Strauss Daly), who succeeded in to prosecute the claim in accordance securing a settlement of R25,000 from with the Act and the rules governing the Road Accident Fund, plus costs. the conduct of the above honourable �2�5 Balsillies handed her only R6,628. court. When Mrs Dharsey complained, “In fact, the last piece of corre- �5 Balsillies dropped her “for being a spondence received from Mrs Dharsey troublemaker”, and she turned to [Humphries] in this matter was dated �0 Nico Humphries – who, for two years, in February 2006. Golden Arrow has failed to prosecute the matter. made enquiries with the Registrar of On 16 March 2007 attorney James the above honourable court, and has

20 noseweek Se p t e m b e r 2010 a�d�v�e�r�t 0�7� �J�u�l�y� �2�0�1�0� �1�1�:�0�1�:�4�2� �A�M confirms that the errors were enough to have this second matter struck off the roll. A single court case cannot bear different defendants. But it’s possible that Humphries wasn’t oblivious of his errors. When presenting his costs to his various consultants, when a settlement of R295,000 plus costs was allegedly agreed upon, the attorney billed Iman Dharsey for all experts who had filed their respective findings under the title “Iman Dharsey vs Road Accident Iman Dharsey Fund” – and deducted these amounts from the capital settlement. confirmed that this matter has not yet His questionable ways didn’t end been enrolled for trial. there; he billed his client for phone “It is trite law that it is incumbent calls to noseweek and one with inde- upon Mrs Dharsey [Humphries] to pendent forensic scientist Dr David prosecute her claim properly, time- Klatzow. Besides collecting nearly ously and with due diligence. It is 70% of the award amount, to be shared the submission of my client that Mrs with the experts he listed, Humphries Dharsey [Humphries] has failed to deposited a bad cheque of R32,421 discharge this duty in this matter.” into his client’s bank account, which So there it is: for two years Hum- incurred bank penalties of R678 to phries simply didn’t bother to seek a Mrs Dharsey. court date. After collecting the bigger share of On 20 March 2007, Humphries en- the awards for himself, and for ad- tered into an agreement with Golden vocate HJG Labuschagne and other Arrow and Sibanye Bus Services on listed experts (some of whom never behalf of Iman Dharsey to have the examined his client), as soon as he matter postponed to 3 April 2007 with- learnt that Mrs Dharsey had sought out consulting his client to reach some recourse from the Law Society, attor- sort of settlement. He also agreed that ney Humphries applied to the Master Mrs Dharsey would bear the costs oc- of the Cape High Court for taxation casioned by the postponement. of his bill (as the settlement had been On 10 May 2007 Humphries, in “plus cost”). agreement with the two bus compa- The final taxed bill was granted at nies (again without consultation with R96,802, of which Glenrand MIB attor- his client) withdrew the matter from neys were authorised by Humphries the high court. While no costs order to deduct the R24,369 awarded in the was awarded to Golden Arrow, Hum- earlier court case). But before he could This space is a snip at phries agreed that his client was to quietly collect the remaining R72,433, pay the costs of Sibanye Bus Services probably for himself, Iman Dharsey’s O N LY (which had been incorporated as a new attorneys, Rehana Khan Parker Third Party to the matter), including & Associates interdicted any further the costs occasioned by the applica- disbursement to Humphries. He is tion. now claiming a further R41,322 from Unbeknown to Mrs Dharsey, while his former client, and will not release R2250... costs of R24,369 were being accepted her file until he is paid. (Plus VAT) on her behalf by Nico Humphries, the When noseweek asked Humphries same “learned fellow” had instituted to explain the various anomalies in Why not try another court action against Sibanye his handling of Dharsey’s case, and Bus Services at the Cape High Court. why he had misled noseweek as to why

It would appear from the court file the case was taking so long to go to it for size? that Humphries was either plain court: “I can’t remember everything Karoo Business negligent or simply didn’t want the as I don’t have the file in front of me. matter to go anywhere. For instance, Please send me your queries in an [email protected] while some of the papers he filed list- email and I’ll respond to them if I find ed Sibanye Bus Services (Glenrand them appropriate.” 021 686 0570 MIB) as the defendant, a good number The Law Society is keenly monitor- of documents listed the Road Accident ing the ongoing investigations into Fund as the defendant. Humphries’ handling of Mrs Dhar- Legal opinion sought by noseweek sey’s case.

noseweek Se p t e m b e r 2010 21 HOT WHEELS Bikers beware! You could be taken for an extremely expensive ride

nce bitten, twice shy’ – up the bikes at 10am, but no-one the fire ... there’s no case docket due to while most people operate pitched and Ilderton phoned to make the fact that there were no elements on this principle, Graydon sure a truck was still coming. Satisfied of crime”. Ilderton’s story about his that it was, Ilderton left instructions Ilderton was obviously distraught dealings with Time Freight with his gardener and caught his flight at the loss of his bikes, which had a shows‘O that for some it’s more like to Cape Town. When the Time Freight combined value in excess of R200,000, ‘twice bitten, shy at last’. truck finally arrived at 10pm (12 hours but Time Freight told him not to wor- In April 2009 Ilderton, whose hob- late), Ilderton’s gardener helped load ry and promised to investigate. Then by is off-road biking, entered for a the two motorcycles onto the truck. the company’s Johannesburg man- National Motorcycle Enduro race in Both bikes had full fuel tanks. The ager, Dave O’Gorman, started getting Montague, Western Cape. Ilderton, driver said nothing about petrol, and stroppy, asking whether Ilderton was who lives in Kyalami, Gauteng, heard got the gardener to sign a waybill. insured. Ilderton said he’d assumed through the grapevine that Time You know what’s coming next, don’t that Time Freight had insurance: had Freight – a division of DPD Laser Ex- you? The next day, Ilderton heard the he been told they hadn’t, he would press Logistics, and a business that truck had caught fire and burnt to cin- have provided it. sponsors bike events – was offering ders on the N1 outside Three Sisters. So Ilderton contacted Time Freight’s good transport deals for bikers going This saw the end of Ilderton’s bikes, head office in Pietermaritzburg, where to Montague. He called the company, plus three others belonging to friends Debbie Anderson, PA to CEO Etienne and they agreed to transport two of of his, as well as all sorts of odds and van Ravesteyn, assured him that the his bikes. The deal was done in that sods belonging to over 200 people. matter was in the hands of their in- typically slapgat South African way: Cause of fire: who knows? The police surers, and that he would be getting what’s the price?; that includes bring- report simply said that the drivers a substantial payout. Further discus- ing them back to Joburg does it? OK “saw smoke coming from the back side sions followed, and Ilderton filled in a cool; what time will you fetch? of the trailer... they opened the doors claim form. Time Freight was scheduled to pick and used the fire extinguisher to stop Then in June 2009 Ilderton entered

22 noseweek Se p t e m b e r 2010 one of his older bikes into a ride in fully suggest that you refer the mat- Cape Town – and decided to use Time ter to your own insurers for compen- Freight again. This time he did take sation.” out insurance, and Time Freight did Ilderton was angry at the flat denial insist that the bike be drained of fuel. of responsibility, but as he did have And this time Time Freight dropped other insurance, and was still wait- the bike, causing damage to the tune ing for his Time Freight payout on the of R8,000. first claim, he decided not to make a The gobsmacked Ilderton again sub- fuss. mitted a claim – which was prompt- Eventually, in November 2009, the ly repudiated by Time Freight, who long-awaited “substantial” payout for claimed that Ilderton had been neg- the loss of his two bikes in the truck ligent (though they still haven’t ex- fire came: a cheque for R2,500, in plained in what way). CEO Etienne full and final settlement. A shocked van Ravesteyn’s letter was a classic Ilderton instructed attorneys to get example of “We love our customers – involved, but so did Time Freight, but we’ll screw them when we have leading to a stalemate, in which Time to”. Freight’s attorneys, Tatham Wilkes, First the pleasant: “Please accept questioned the R211,000 value placed our sincere apologies for any incon- on the bikes, denied that Time Freight venience due to the delay in finalis- had been negligent, and threatened to ing this matter and for the damage. sue Ilderton if he went to the press. Despite our best intentions when Ilderton believes that he’s been handling a client’s freight there are cheated, especially since it was due to occasions when accidents occur, usu- Time Freight’s own tardiness that he ally because the cargo is insufficiently did not get to see the terms and condi- or not correctly packed for road trans- tions listed on the waybill (signed by portation, as we believe was possibly his gardener in his absence). For all the case in the above instance ... Un- he knows, says Ilderton, Time Freight der our Standard Trading Conditions have their own insurance, and have liability for goods lost or damaged in pocketed the payout. transit due to gross negligence on the Noseweek asked Time Freight for part of the carrier is limited to a max- comment, but Van Ravesteyn simply imum of R2,500 ... these terms and sent copies of correspondence already conditions are clearly stated on all our supplied by Ilderton, and commented waybills and acceptance thereof is a that “the information given to you prerequisite of carriage.” contains a number of inaccuracies and Then the not-so-pleasant: “Whilst I do not intend to debate these issues the damage... is regretted, the fact that by correspondence”. He also issued a any damage is unsubstantiated by the threat: “You are cautioned that you sending and receiving depots... sug- should ensure that whatever you in- gests other factors may have resulted tend to publish is factually correct.” in the damage. We dispute therefore Here’s the thing Etienne: if you that the damage occurred whilst we think noseweek has it wrong, and you were involved in the consignment’s want us to get it right, try talking to transportation, and therefore respect- us.

Up in smoke .... fiery freight van with Graydon Ilderton’s bikes aboard

noseweek Se p t e m b e r 2010 23 ‘Jake White threatened me with Kebble killer’ Veteran sports writer Dale Granger remembers menacing talk during the 2006 Tri-Nations

ith Nigel McGurk in the “Jake”, I said, “Don’t threaten me.” At news as one of the that point Smit chipped in: “Hey guys. self-confessed hitmen Just calm down.” hired to take out Brett Waiting at the baggage carousel Kebble, I’ve been reliv- at Sydney airport, I called Argus edi- Wing the moment I first heard his tor Chris Whitfield to tell him about name. I was accompanying the White’s threat of turning McGurk on Boks on their disastrous 2006 me – a guy known as a “heavy”, and Tri-nations tour of Australa- no stranger to putting the fist in. No- sia, reporting for the Inde- one wanted to take up the story, but pendent Group. in the end White didn’t need the likes With South Africa crash- of McGurk to silence anyone at Inde- ing to their second worst dependent . feat in history, going down That was, in fact, accomplished in- 49-0 to the Wallabies in stead with the assistance of English Brisbane, a torrent of criti- rugby journalist Peter Bills, who set cism of coach Jake White up a meeting between White and the had been unleashed back Independent Group’s owner, Sir An- home. Suggestions were thony O’Reilly – who had been an Irish being made left, right and national rugby player and who main- centre that he wasn’t up to tained a keen interest in the fortunes the job. On the flight from of international rugby. Bills assured Wellington to Sydney, af- White that they would deal with his ter South Africa had lost critics at Independent, and Bills got the second test to New to be White’s point man at Independ- Zealand, I approached ent in South Africa. This only came to White, sitting next to light some time later, when White told captain John Smit, to the story to an inner circle at a Friday discuss the way things lunch club session. were going, after he had Bills had written a book about spat the dummy in public O’Reilly that was never published, but a few days earlier, having got him close to the media baron – and just escaped the guillotine. won him a private account to keep him “Have you heard of Nigel comfortable on tour. On that four-hour McGurk?” said White. I said flight across the Tasman, Bills had no. been sitting in first class: so much for “Well why don’t you check cost-cutting at the “cash-strapped” In- him out?” said White. “He is dependent. a KES [King Edward School, It also turned out that during that Joburg] old boy.” tour Bills did his best to have me sent “What are you saying?” I back to South Africa, which would have asked. left him as the Group’s sole representa- “I get SMSs all the time tive accompanying the Boks. He had a [from McGurk] offering to direct line to Independent managing sort you okes [the media] director Tony Howard and Star editor out,” he replied. Moegsien Williams, who were lobbying

24 Nigel McGurk with Star sports editor David Legge and show that transformation is got in a rage and threatened to put (later fired for falsifying overtime happening in our country. We have got McGurk onto me. claims) to fly me back to South Africa. a guy like Solly on tour – and then to When I arrived back in South Af- Bills, in one of his calls to South call for another flanker to start in a rica I checked out McGurk, find- Africa, had described me as “an unex- Test match. There is a relationship in ing out more about the ex-KES boy ploded car bomb from Baghdad”. a team structure and we need to be bouncer connected to Mafia-style -or This had come after the proverbial considerate to that dynamic between ganisations, who was implicated in had hit the fan, at a press conference the players.” murder, extortion and intimidation. the Monday after the Boks had arrived The following day, all hell broke After fellow bouncer Patrick Caetano in New Zealand, to banner headlines loose at the Springboks’ hotel, after was murdered, McGurk was found in proclaiming “How low can they go?” the Argus had expanded on the story, possession of his bloodstained cloth- and “Brain dead, error-ridden Boks at getting a news reporter to call Parlia- ing. Then another story surfaced link- their worst”. mentary Sports Portfolio chair Butana ing him to the death of an Edenvale, The press back home were lobbying Komphela for comment. Komphela Johannesburg, art student. Not long hard for Luke Watson to be flown over wasted no time putting the boot into after that allegations emerged that to replace lock cum flank Danie Ros- the beleaguered Bok coach, demand- he’d been involved in the murder of souw, who was on his way home with ing White’s immediate resignation Brett Kebble. an injury. My brief at the press con- and slamming him for labelling Tyibi- As for Bills, his relationship with ference was to ask White whether he lika “a transformation player”. the Springbok coach ended acrimoni- might now consider picking Watson The next day the Boks put out a ously just before the 2007 World Cup, and flying him over to New Zealand. statement denying White had called when a South African living abroad If not, what did Tyibilika, also a flank, Tyibilika a transformation player, shone light on the headless chicken offer ahead of Watson? saying he had been misquoted. I was theme Bills was using in his writing “At this stage no,” White replied: furious: he had said it at a press con- about the Boks in overseas papers – in “For him to get here this late, after ference and news agencies had run stark contrast to his obsequious copy never being a part of the squad, would the quote in full, as had the rugby365 published in Independent titles in not serve our immediate needs. But website. South Africa. we also need to be honest about sen- It was when I challenged White on I somehow don’t think there’ll ever sitivities of the make-up of the team the plane about this denial that he be a 2006 Tri-Nations Tour Reunion.

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noseweek Se p t e m b e r 2010 25 Dream verdict for bent reverends

ome reverends have their gods in Presumably they will (payoffs and the right places. Or could it be a kickbacks aside). matter of having friends at the A point repeatedly made in the right milking house? plea bargain concerns the fact that, Nose114 exposed how, for years, by pleading guilty and offering to pay theS “reverends” Harris and De Witt, and back what they stole, the reverends their sons, had been submitting inflated have saved the state much money and subsidy claims for The Dream Centre time. Sorry guys: the equation doesn’t HIV-Aids hospice in Pinetown to the quite work out. KwaZulu-Natal Department of Health, Noseweek contacted the NPA spokes- and each month siphoning hundreds of person, advocate Mthunzi Mhaga, thousands of rands into their own pock- for clarification on how the NPA had ets. The unholy lot were ultimately ar- arrived at accepting the reverends’ rested, and charged with 80 counts of claims. He asked for questions to be fraud and forgery. emailed to him – to which he did not Whoever it was to Whom the rever- reply. (Noseweek does get a bit tired of ends directed their supplications, their publishing that phrase.) prayers have been answered. Plea bargain negotiations kicked On 21 July, nearly a year after the off with Reverend Leslie Harris and publicly-hailed arrest, the office of Mophela Housing Project, trading as NPA director Menzi Simelane signed a The Dream Centre, pleading guilty on Plea and Sentence Agreement, freeing two counts of fraud and forgery (they the accused – and, it emerges, handing initially faced 80 counts), on condition them the means to plot a new robbery that charges against Harris’s son, and of taxpayers. misrepresenting themselves as the the De Witts, were dropped. When the Not only are the “men of God” off the rightful owners. This matter has now NPA accepted this, Harris presented hook, but the NPA and the KZN Spe- fallen away – and the memorandum of himself as an old man (he’s 63) suffer- cialised Commercial Crime Court are agreement on the use and ownership of ing from an undiagnosed illness, with a urging them, as part of the plea agree- the building is nowhere to be found. sick wife, and a young grandson to look ment, to sell the building which housed But there’s the same fraudulent mis- after. This led the NPA to announce The Dream Centre, in order to pay back representation, reflected in the plea that “substantial and compelling cir- what they stole. bargain: “The Accused has further, in cumstances ... justified a deviation from This is quite astonishing. To establish conjunction with others (the other rev- the mandatory minimum sentence of their hospice, the reverends’ non-profit erends and sons), seen to it that the 15 years’ imprisonment. Mophela Housing Project was granted building, the asset of Mophela Housing “The Accused has shown his remorse R4.5m by the KwaZulu-Natal Depart- Project, has been properly maintained for his participation in the crime, this ment of Housing, R3.3m of which they so as to ensure that when it is sold, it is is evident from his plea of guilty. It used to buy the building. According to not in a state of disrepair and therefore should further be noted that from the various sources, the money was handed will raise a reasonable sum on its sale.” outset of the investigation, the accused over on the basis of terms established in It would appear that the KwaZulu- has assisted the investigation by an- a memorandum of agreement. One of Natal Department of Housing was swering questions, making admission these was that the building would only not formally consulted by the NPA, detrimental to himself and providing be used as a hospice (some parts were who therefore accepted the reverends’ documents. He has also sat with the used for other purposes), and that it claims of ownership at face value – the forensic investigator, Trevor White, would revert to the housing department building is indeed registered to Mophe- during his investigations”. when the hospice stopped operating. la Housing Project. It is also possible, So Mophela Housing Project is sen- In fact, in March 2009, before the even likely, that “negotiations” to lose tenced to a fine of R1m and to refund reverends were arrested, the Depart- the memorandum and misrepresent R9m to the Department of Health while ment of Housing obtained an interdict the ownership situation took place be- Harris is sentenced to 10 years’ impris- to stop the transfer of the building, af- tween the reverends and officials in the onment, suspended for five years. ter the unholy men, sensing the law housing department. “The fine and the R9m to be paid by closing in on them, had fraudulently The unholy ones have apparently the Mophela Housing Project is de- sold it at auction in Durban for R26m now secured a sale for R19m. Having ferred... and must be paid upon finali- (nose117). With the transfer stopped, paid the Department of Health the sation of the sale agreement involving the buyer, Wayde Park (Pty) Ltd, took R9m they stole, plus a fine of R1m, will the asset of the Dream Centre but not the reverends to court for fraudulently they get to keep the remaining R9m? later than 15 December 2010.”

26 noseweek Se p t e m b e r 2010 The developers lured apartment buyers with tales of a luxury entertainment facility, and then took it away

nose128 and box on next page on the Schulphoek development). The 15-storey Manhattan was ad- vertised as introducing “trendy New York-style living to Century City”, and consists of 95 units and a stunning penthouse. Part of the deal offered to prospective buyers was access to “entertainment facilities where residents can meet, sip cocktails ... or have a barbecue while enjoying the spectacular mountain and sea views”. This meant the 14th floor was held as common property and included there were a sauna and lounge and braai areas. The sectional title scheme was opened in August 2008, and by 23 December 2008 Rabie was left holding around 30 units. However, on that same 23 December – when business was slack – an odd transaction was recorded at the Deeds Office, which granted Rabie the exclusive use of certain common properties at Manhattan: four parking bays, eight Rabie Property storerooms and, lo and behold, most of the 14th floor, including the lounge and braai area (but not the sauna). monkeys around on Rabie also registered an endorsement in favour of Nedbank, under a R129m mortgage. Yes folks: Rabie attracted buyers with promises of access to a spec- the14th floor tacular lounge in the sky – then took the space for itself, and mortgaged it. Quite how Rabie managed to do this n 11 June Judge Thring of the Cape ed to changing the names of trustees isn’t clear – noseweek is reliably in- High Court handed down a on a body corporate, makes for dread- formed that it could only have been judgment against the Rabie fully dull reading – but actually hides done by an order of court, or by unani- Property Group, in a matter a curious tale. mous resolution of the body corporate. involving the luxury Cape Rabie is half of the infamous Rab- Neither of these took place (a board of TownO apartment block called Manhat- cav consortium that makes fortunes trustees was elected only in February tan. The judgment, dealing as it does building housing developments on 2009; until then all owners were, by with a decidedly technical issue relat- municipal land it buys for a song (see law, trustees).

noseweek Se p t e m b e r 2010 27 Having registered exclusive use of client’s commercial activities when ment owners... Since then we have the lounge and braai area, Rabie con- you sought to interrupt a client func- had to accept the use of that space as a verted the space to operate as a break- tion being held in the breakfast room daily breakfast area for Platinum Va- fast room, which it then ran for its located on the 14th floor” – followed by cations, and it now seems that we may own profit. The refurbishing involved the usual desist-or-you’ll-be-vaporised be losing this exclusive area”. turning two toilets into a kitchen, and bullshit. The complaints obviously bugged converting the shower adjoining the Then there’s Koos Stassen, chief le- the Rabie directors, who, predictably, sauna into a toilet. As a sauna without gal advisor of a large insurance com- denied everything. First, they claimed a shower isn’t much fun, it was effec- pany and a regular contributor to the they hadn’t nicked the 14th floor or tively rendered unusable. attorneys’ magazine De Rebus, who es- deprived the owners of access. Rabie also restricted access to the tablished that the Sectional Titles Act In a circular, Rabie managing direc- breakfast room to two categories of had been contravened. And wealthy tor Leon Cohen said: “Mr Sperling al- people. Firstly: rental pool owners Hermanus-based businessman Han- leges that the lounge area has been – the handful of people who bought nes Kleynhans (now deceased), who ‘lost’ to the developer. This is blatantly to rent, and who were willing to pay owned a mighty 240sqm 13th floor incorrect. All owners are entitled to Graziella Whitehead was furious when access was blocked because an Old Mutual Conference was going on

the extra R350,000 or so to have the city base. On 20 April 2009 Kleynhans access and use the lounge area... all rentals managed by Rabie through complained bitterly in a letter, after owners and occupiers at Manhattan Platinum Vacations. Secondly: hotel discovering he couldn’t access the are entitled to use the lounge areas guests. 14th floor. and to go for breakfast at the break- Yes: stuck with 30 unsold units, and Graziella Whitehead, furious when fast facility”. a monster R249m bond, Rabie de- her access was blocked because an Old In another circular, on 17 April cided to create a hotel. Which wasn’t Mutual conference was going on, wrote 2009, Cohen claimed “the 14th floor is too difficult – lots of rooms, and space to say: “When advertising the develop- not registered in the name of the de- on the ground floor (which Rabie con- ment... a selling point was the 14th veloper” – a claim Rabie legal advisor trolled) for a lobby and gym. All that floor for the exclusive use of apart- Kim Pistor would repeat, under oath, was needed was a breakfast facility – i.e the 14th floor lounge. True, hotel rooms need air-conditioning, but that’s easy to install – and why not link it to the central power system, so the other owners pay for it? Rabie also set about taking control Firstworld World of the board of trustees, by stacking it with Rabie employees, which eased making unlawful changes to the man- he Schulphoek Point development in to improve the interface and quality agement rules: for example, Rabie was Hermanus, that highly-suspect of environment in the transition area relieved of the obligation to pay levies Tdeal between the Overberg council between Zwelihle and Sandbaai it is (over R400,000 in dues was avoided and its “facilitation” partner Rabcav, critical that the aesthetic quality of the this way). Rabie also appointed Fair- which has seen a highly valuable piece route experience between Main Road cape as the managing agent, a com- of coastal property sold for a song (nos- and Schulphoek Point is improved pany that the unhappy apartment es128&129) has, it turns out, a theme by creating a landscaped boulevard”. owners claimed was not registered park component. Unless noseweek is very mistaken, this with the Estate Agents’ Board, and As reported, the development will is corporate speak for: “We’re going to had neither a fidelity certificate nor a cut off the adjacent township’s access plant lots of trees along the access road trust account. to the sea: noseweek can now reveal so no-one has to see the darkies living Unfortunately for Rabie, some feisty that Cape Theme Parks (Pty) Ltd, in dire poverty when they drive in.” and informed owners were members which will be involved in the project, So there you have it: Schulphoek of the rental pool. People like Philip also plans to cut the development’s Point is to be a big theme park, where Sperling, a retired Lloyds of London residents and visitors off from reality. delusional residents will play at living agent, who made enough of a fuss A plan of the development shows in a First World utopia, and the game when his access to the 14th floor was a veritable small forest of trees posi- will begin at the main road turn-off. blocked to receive an admonishment tioned along the access road, which All that remains is to furnish a de- from Rabie’s attorneys, Deneys Reitz: runs past Zwelihle’s “shackline”. Ac- cent theme park name: how about “We are instructed that on Friday 6 cording to the plan, in order “to secure Firstworld World? Suggestions are March 2009 you interfered with our the viability of Schulphoek Point and welcomed.

28 noseweek Se p t e m b e r 2010 in legal proceedings. by all members of the scheme and its Rabie also denied it was operating occupant”. K I N G S a hotel. But, as Koos Stassen pointed Ja, right: we were doing it for you. ESTATE AGENTS out, if you have guests paying to stay Dealing with issues of legal liability, overnight you’re running a hotel. His legal costs, and unlawful management MARKET LEADERS IN opinion was that this was not legal, af- rules, raised by an increasingly bellig- PARKTOWN NORTH fected the building’s security, and was erent and confident body of owners: PARKHURST certainly not what apartment owners “Rabie is aware that... members may CRAIGHALL PARK had bought into. suffer damages due to the registra- Rabie obviously forgot to tell its at- tion and thereafter cancellation of the torneys to take the view that it wasn’t exclusive use rights ... in order to up- The only place you will find us in NOSEWEEK is right here running a hotel – Deneys Reitz’s let- hold its image and reputation as prop- ter to Sperling began “We act on the erty developer Rabie elected to issue ANDREW 083 655 0366 instructions of Platinum Places. Our an indemnity to the Body Corporate GREGOR 082 829 6969 client operates the Manhattan Suites against damages that it may suffer in Hotel”. this regard ...Rabie is tendering to pay Eventually Rabie could no longer all costs incidental to this process... keep up the pretence, especially after Rabie is aware that certain manage- losing the court case. The minutes of ment rules dealing with the recrea-  a meeting of the Manhattan body cor- tional area may be unenforceable and porate, of 18 June, reflect the climb- undertakes to investigate the matter  down: “Rabie’s motivation for the reg- and take the necessary steps to rectify istration of the exclusive use area in the situation.” its favour was in no way to gain con- So Rabie will transfer the lounge trol over the recreational areas for its and braai area back to the body corpo- own benefit. rate, and the Manhattan Suites web- “Rabie realised that if it effectively site, which once spoke of a “luxurious managed this area for the benefit of guest lounge and breakfast terrace” all the owners in the scheme an op- and showed a photo of the 14th floor erational manager would have to be room, now refers to breakfast being appointed... the registration of an ex- available at a bistro on the ground clusive use area in Rabie’s name was floor. purely a tool to establish and improve You do have to wonder what makes such management... the recreational so many property developers so un- area will always be available for use likeable. www.c-a.co.za  

noseweek Se p t e m b e r 2010 29 If any prospective buyer had their doubts (given the amount of sheer bunkum spewed out by property development PR consultants), they would surely have been reassured by chairman Wilson’s weighty words, as reported in the Cape Argus on 6 De- cember 2008: “The concept behind the development was to be completely different from those which promise magnificent facilities, only to provide them after the final home in a phased development is completed – sometimes several years after the first residents move in. We believe in providing the communal, recreational, social and medical facilities right from the moment the first residents move in. This Not quite like is the quality of product and standard of service that Evergreen residents can expect throughout.” Not quite the situation at Evergreen Muizenberg, where, two years on, residents are still waiting for the prom- the brochure (2) ised indoor pool, putting and bowling greens and croquet facility. Amdec’s story is that the facilities will come “when Phase 2 is built” – but they can’t esidents of Evergreen Retire- providing 24-hour nursing care, giving say when that might be. ment Lifestyle Village in Mui- you peace of mind that, in the event of Evergreen Muizenberg consists of zenberg are wondering how an emergency or ill-health, help is al- roughly 50 units, with a near-100% to get John Wilson, chairman ways on hand.” occupancy. It’s one of those schemes of Amdec property developers, The Evergreen Muizenberg brochure, where a few million buys the right to toR put his money where his mouth is like its generic counterpart, shows hap- live in a “unit” for the rest of your days, and ensure that his company provides py, smiley old toppies drinking wine or and at your death the company pays the leisure and care facilities promised splashing around in the pool, cuddling into your estate the purchase price in promotional brochures – and which grandkids and tripping the light fan- plus 20% of the increase in value. Wilson has publically declared would tastic. Among the Frequently Asked Amdec, joint owner of Melrose Arch be in place “right from the moment the Questions, we find; “Q: What facilities in Joburg, boasts a property portfo- first residents move in”. will there be at Evergreen Retirement lio “in excess of R4.5bn”, and in Cape The generic brochure for the Ever- Lifestyle Village? A: Facilities include Town alone has developed, among green chain is pretty enticing: “Imag- a health centre ... with heated indoor others, Westlake Lifestyle Centre in ine having your own heated swimming pool and gymnasium. Q: What outdoor Tokai, The Paddocks in Constantia, pool, your own putting green, bowling sports facilities are there? A: There Normandy Village in Plumstead, Fish- green and even a croquet lawn. Each will be a practice bowling lane, putting erman’s Village in Muizenberg, Kei Evergreen Village has a Care Centre green and croquet facility.” Apple Lane in Constantia and The

30 noseweek Se p t e m b e r 2010 Summit in Higgovale. The little problem for Evergreen A question now trembling on the residents who aren’t too happy with lips of the retired folk of Evergreen their lot, is that they allowed sharp Muizenberg is whether Phase 2 will advertising and fancy sales talk to actually go ahead at all. On 5 March lure them into signing contracts that Amdec general manager Arthur Case include a clause which says what caused a stir by writing to say: “We are they’re buying may differ from what keen to commence with the construc- they’ve been led to expect. Clause 29 tion of Phase 2 of Evergreen Muizen- says that where “the agreement” dif- berg. Notwithstanding every effort on fers from marketing materials, the our part, sales are not happening fast agreement takes precedent. Amdec enough and the Amdec Board is there- and Mr Wilson are legally off the fore considering alternative strategies hook. As for ethics and keeping your ... this includes launching a number of word – what’s that got to do with good satellite villages that comprise single business? dwelling units.” Bad move. On 4 May Amdec general manager Arthur Case issued something of a retrac- Case told noseweek that, “while the tion: “We are aware that a letter was world recession has created chal- distributed to residents of Evergreen lenges for us, we were surprised by Muizenberg [yes Arthur, you sent it] the allegations since Evergreen Mui- ... unfortunately the wording of the zenberg recently won an internation- letter may have inadvertently caused al award for excellence based on its some confusion. We are currently con- current facilities”. Given that this was sidering the launching of Evergreen apparently a design award relating to villages in Bergvliet and Noordhoek the boardwalk at the entrance, Case ... this will not distract us from our would seem to be deliberately com- commitment to develop Evergreen pounding the confusion, rather than Muizenberg Phase 2.” facing the issue. He also sent nose- Some residents aren’t too delighted week copies of thank-you notes from with what has been provided, either. occupants, complimenting Amdec on They say there’s little of the promised events that it had arranged for them, privacy and spacious living: bedrooms and solemnly intoned that “we believe are so poky that cupboards can’t be the vast majority of our residents are opened properly if you’re silly enough very satisfied with the development”. to actually have a bed; bedroom win- Case claims that Amdec “have done dows are only a metre away from everything possible to provide the the next-door patio, and kitchens are services promised in our marketing so tiny that washing machine and material, and which currently include dishwasher must go into the garage. a clubhouse, TV room, bistro and res- Neither is the frail care – one sister taurant, leisure centre and library, and three nurse aids working frail care centre, boule facility and shifts – quite what buy- gymnasium”. He says he “can confirm ers were led to categorically that Phase 2 will be built, expect. not just to keep our promise to Phase 1 residents, but because 200 units en- sures economy of scale in terms of operating costs and levies”. No explanation, then, of why the “agreement” has differed mark- edly from “marketing materials”; no Karoo Business indication of when Phase 2 might go ahead – and no promise that it will include the facilities Phase 1 buyers were led to expect. n Weekend Argus of 14 August carried a full page ad for Evergreen, saying that Phase 2 is now selling: listed among facilities is a “heated indoor pool”. No indication that Amdec is selling off plan.

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32 noseweek Se p t e m b e r 2010 Sleepwalking into a Surveillance Society

K investigative journalist much like. She describes bureaucracy Heather Brooke (a “total nin- Hans Muhlberg as “a sap on the human spirit. It stifles ja” says her blurb) was very Reviews individual creative drive and, worse, much involved in uncovering The Silent State it allows those in power to behave un- the recent British MPs’ ex- (Heinemann) accountably, and by doing so become pensesU scandal, though she was gall- by HEATHER BROOKE corrupted and commit crimes that an ingly pipped at the post by the Daily individual would find difficult if not Telegraph, which took great delight in impossible”. Brooke directs the reader reporting that British taxpayers were to Salvador Dali’s painting The Aver- paying for their MPs’ nannies, moats age Bureaucrat – a face with mouth and porn films. That MPs could pay and eyes, but no ears – and says that family from the public purse, com- bureaucrats not only hate to listen, but mented Brooke at the time, “struck me also believe they’re the only ones re- as the sort of unaccountable behaviour sponsible enough to be entrusted with common to a banana republic and not important information. She makes the what I expected from parliament”. point that, because it’s so unbelievably The Silent State tells its story around easy to spend other people’s money, three main points: the UK state knows the best decisions are those where the a great deal about its citizens; the same decision-maker is known to those af- state has a lot to say about itself, but fected. Yet, officials love anonymity, most of that is spin; it avoids telling its and will do anything to avoid publi- citizens what it is actually up to. cising the names of decision makers. Compared to what the UK state This reminds Brooke of a scene in the knows about its citizens, South Afri- filmSchindler’s List, where Schindler’s cans can count themselves lucky: in the request for the names of the officials UK, the ubiquitous CCTV cameras are who are causing him grief leaves them on the watch 24/7, and the state also ashamed and scared. has at its disposal a formidable array Of course it’s not just bureaucrats of efficient databases: DNA, National who are to blame, says Brooke, there Health Service, a National Identity are policy issues too. She rails at the Register. (Surprisingly, it has very lit- fact that the UK authorities make ac- tle information on immigration.) cess to information difficult by invok- As a result, claims Brooke, the good ing Crown copyright and imposing high people of Britain are “sleepwalking into fees for court transcripts. Consequent- a surveillance society”, where each in- ly, says Brooke, the justice system is dividual citizen will have a “data dop- “becoming a closed world, a cloistered pelganger”. What’s at stake here is that sanctum of the legal profession ... a sys- citizens who grant the state such pow- tem paid for by the common people, but ers begin to lose their rights – the right whose proceedings are available only to be treated as innocent until proven to the few: the legal profession and the guilty, the right to live freely without rich, powerful or privileged”. Getting interference. The absurdity of it all is it all off her chest, she gives incredibly that the plethora of data doesn’t make detailed examples of where authorities citizens safer or deliver better services in the UK have relentlessly pursued in- — it’s all geared towards “Soviet-style dividuals who dared to challenge their targets” rather than meeting the pub- authority, and asks how the state could lic’s needs. be so vindictive. Furthermore, despite the fact that Yet, concedes Brooke, the state does the state is suffering from information say a lot about itself – mostly nonsense overload, there’s very little real infor- though, because it’s all about putting a mation coming back. First and fore- positive spin on policy, to give it that air most, Brooke points the finger at the of success. In other words, everything bureaucrat, a species she clearly doesn’t becomes geared toward the retention

noseweek Se p t e m b e r 2010 33 of power and jobs, and spin happens at police warnings. All of this was shown Yes, interesting stuff, and it clearly every level of government, with nearly to be untrue – but who could be accused does have resonances in this country. every local authority producing its own of misleading the public? Not so much the data collection stuff “Pravda rag”. The takeover of the news is, says (here the data will be lost by the well- As for the British police, managing Brooke, exacerbated by the fact that connected but clueless company that their own public reputation has become papers, especially local papers, are clos- got the IT contract), and not so much part of their job – the police services ing down at an alarming rate, and that the officious bureaucrats (ours are too spend some £40m per year on spin and we live in age of “churnalism”, where busy with industrial action to be re- news management. Statistics are “mas- journalists simply rewrite official really offensive). But these are worrying saged”; easy to do when you receive leases, and little or no independent times, what with our government de- them before general release. Officials verification of facts and figures takes ciding it’s better to shoot the messenger give ambiguous answers whenever pos- place. Brooke’s rather obvious predic- than the offender, and that we’ll soon be sible – Brooke gives the wonderful ex- tion: “The more officials take over the offered an endless stream of good news, ample of a Home Office minister who, news the more corruption will sweep courtesy of the ANC-friendly paper, The in response to a question about a very across government and the more that New Age. expensive police operation involving public money will be wasted. It is scru- So when you read the dedication in protestors, said “seventy officers were tiny by the general public that keeps Brooke’s book – “To Whistleblowers hurt” – failing to mention that the inju- the powerful honest.” Past, Present, Future” – you wonder ries had absolutely nothing to do with The scapegoat for all this is, of course, how many of those we’ll see if the ANC protestors, but involved toothache, di- the spin doctor, the “modern day Iago”, has its way with the press. It might be arrhoea, cut fingers and “possible bee according to Brooke (will study guides useful for Jackson Mthembu, Enver stings”. one day describe Iago as the “olden day David and other apologists for the Pro- Security services also tend to make Alistair Campbell”?). The spin doctor’s tection of Information Bill, to read this their claims anonymously: after Bra- goal isn’t truth but the promotion of a book, but they probably won’t. zilian citizen Jean Charles de Menezes politician or institution, operating on Interesting as it is, in the end The was mistakenly shot at Stockwell Sta- the principle of never admitting fault. Silent State is a somewhat unsatisfy- tion (shortly after the 2005 London After years of spin doctor rule, the ing read, as the thinking is at times a underground bombings), “senior police modern politician operates on the follow- bit muddled: one gets the feeling that sources” announced that he had been ing very simple basis: do whatever you Brooke was determined to say every- running from the police, had jumped can to stop the press or public getting thing on her busy mind in one book. It’s a tube barrier, wore unusually bulky raw unadulterated data, then manipu- certainly not another Flat Earth News, clothes in hot weather, and had ignored late the data; if that fails, simply smear but the best bit of writing is, unfortu- or attack anyone who asks questions. nately, found in the foreword. That’s Brooke’s final plea to officialdom: pub- just a little risk you take when you get lish lists of bureaucrats, make informa- Ian Hislop – of Private Eye and Have tion generally accessible, treat citizens I Got News For You fame, and who is as adults and drop the spin. “We are not simply incapable of being dull – to do naughty children and the state is not the honours. His words certainly add to our parent.” the value of the book.

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34 noseweek Se p t e m b e r 2010 xxxxxxxx

for Married MenFighting fire with fire: Bheki Mashile Wheresmoke there’s ... irst they killed me by having me with this guy and his magazine might hang myself on my farm, then get me killed. I’m referring of course to they bewitched me by placing the tale of Brett Kebble’s hit list. Yes, two dead owls in front of my the financial backer of the top rusty door. Now they are trying to brass of the ANC Youth Louts had been burnF me out. Ah, to be a black boer! No intent on getting rid of everyone in his wonder my helper Moses quit after the way – including two journalists, one be- owl job failed. Bheki Mashile’s ing the editor of this very publication. The first day of August began bril- Country Life Hey, think about it: if noseweek’s edi- liantly. I attended a meeting in neigh- tor was on Kebble’s hit list, he’s surely boring Badplaas where I was honoured also on others. And just maybe that to be offered the position of editor for means lowly contributors, like myself, a newsletter. Not just any newsletter, could also make easy prey. For a mo- mind you, but one that will promote ment I considered submitting a letter a multi-million-rand tourism develop- Who else of disassociation to the magazine. ment, as well as the area’s other won- After my productive meeting and ders, such as geological surveys. A very the delightful country lunch I headed pleasant honour indeed. was on home to my African paradise of a farm. After that I had the pleasure of lunch- Now, this being winter, many a cattle ing on a lovely deck with absolutely owner is busily setting fire to every magnificent views of the Badplaas val- patch of grass to make room for fresh ley. Yeah I’m living a good country life, Kebble’s growth, and my beloved neighbours, thank you – or so I thought. who set their stock to graze on govern- The lunch turned out to be even more ment land, or “trust land”, as they call pleasant when I happened on a story in it, had been doing the same. Except the Sunday Times, which I was read- hit list? that they don’t bother to control the ing while licking burger juice off my fire once they’ve set the grass ablaze, fingers. Oh shit, I thought – associating so for days I’d been on fire watch, like

noseweek Se p t e m b e r 2010 35 a game ranger in some American na- have broken into a hurried run, just to with myself, what do I hear but the rac- tional park. get there and prove the voice wrong. ing crackle, crackle, crackle, not too far All was more or less well, as I’d Except that I happened to be suffering off, of a runaway fire. I didn’t have the got my firebreaks done in good time: the worst bit of gout I’ve ever experi- number of the fire department; I didn’t the first blaze had come in close, but enced, in the right foot. So I simply kept even have a hosepipe. In short: I had hadn’t jumped the break, so I’d told to a steady stride. As soon as I got to jack shit. myself; yeah! I’m chillin. Not complete- the farm gate I saw the damned voice I get on the phone frantically, call- ly though, as I wasn’t totally satisfied had been right – the fire had jumped ing friends to raise the fire depart- with the firewall on one side of the the firewall. I’ve never cursed so much, ment for me. Three calls and all I get is farm. So why didn’t I address the prob- ever. Stupid m***f*** idiots, incompe- voice mail. Once again that AWB ghost lem? you ask. Oh, give me a break: like tent illiterate buffoons – you name it. comes alive: goddamn black bastards, many, I do sometimes procrastinate. I’m convinced there is something in the I exclaim, never there when you need Well, that happy August day on my farmhouse that puts these kinds of ag- them. Actually, I uttered that bit of sac- way back from Badplaas and feeling gressive thoughts into my head: it was rilege after calling a white friend who very much the in-demand editor and once an AWB hideout, honestly. did answer, and then sent in the fire- happily fed, I was dropped off on my So I run (gout forgotten) to the house, fighters. farm road. Walking gaily home I could grab a 25-litre bucket and begin filling The fire department arrived very see smoke in the distance, but decid- it. Hey, I didn’t have anything else, promptly, and we went about extin- ed it wasn’t a threat. Then, of course, and all I could focus on was the little guishing the blazing grass on all sides. there’s always the voice of the devil’s thread of flame heading my way. Yeah One firefighter drove the vehicle while advocate – and soon enough that voice right, says the voice, you think you can the other manned the hose, and I was began its chattering about what things play the Boers’ game: that stupid little assigned to stomping out smaller would look like if the blaze jumped bucket won’t do a thing. flames. So much for my gout – and for over where the firewall wasn’t secure. As I stand there, having extinguish- my two-month-old Hush Puppies. That was the point at which I should ing those tiny flames, very satisfied Yeah, my country life – I love it. Fear and loathing in Mpumalanga

hile journalists around the carved out its own special niche. I take country were appalled by immense pride in the way my stories the arrest last month of and commentary in this little country Sunday Times journalist, gem have made a dent in what was Mzilikazi wa Afrika, we widespread corruption and total dis- smallW scribes in Mpumalanga were respect of the community by Umjindi left wondering what might befall us (Barberton) municipality officials. should we dare expose the rot that But right now, we’re looking at issues seems to be prevalent within premier like the manipulation by provincial DD Mabuza's administration. Having powers of the governance of the mu- gotten to know how the current powers nicipality, including the manipulation tend to deal with their “enemies”, I had of the appointment of municipal direc- no doubt that Wa Afrika’s arrest was tors. And what about the suspected in- politically motivated. Then came the volvement of the province in allowing report of someone accosting City Press construction of a controversial medical journalist Sizwe Sama Yende with a waste disposal unit to go ahead after pistol, outside his home in Nelspruit. the municipality stopped it? City Press is said to have immediately Am I to avoid investigating because I provided Yende with 24-hour security. might be thrown into the slammer? Am Where does this leave an independ- I to look in the other direction, out of ent publishing editor like myself, who fear of having some hired assassin put focuses on hard stories? It is a question a gun to my head as I unlock my door? that has obviously much preoccupied ciation of my work by greeting me with Like any self-respecting journalist I my thoughts in the last while. For a a pistol as I enter my homestead. pride myself in writing without fear or start, I don’t have the protection of a So what is a lone ranger like me to favour. But I would hardly be human large newspaper group, which might do? The answer is simple: continue do- if I wasn’t feeling fear in light of the provide me with lawyers to secure ing exactly as I have done, and remain current goings-on in my country home- an urgent interdict for my release, in true to my commitment to press free- stead of Mpumalanga. But to be cow- the middle of the night. My employer dom and writing in the public interest. ardly is simply not an option. I owe it to (that’s me folks) won’t step in to provide Unlike other community newspapers myself, my community and to freedom 24-hour protection in the event that a in the province, that focus on generic of the press, to remain vigilant and stay die-hard reader decides to show appre- stuff, my little Umjindi Guardian has true to the cause.

36 noseweek Se p t e m b e r 2010 Harold Last Word Strachan

are bombing us! We’re under attack from the air and the sea! Give us orders! Presidential Authority comes back: Give ’em Hell! Go down fighting, remember the Alamo! I mean the USS Yorktown or...or...! Let every man die with “Libdy” on his lips! And that’s what ol’ LBJ is talking about Naval Foefies with his toptop intelligence dude. I must say he looks like he wouldn’t mind being one of ’ve had a nasty feeling this last while, and those other presidents who can say to their haven’t quite known how to define it; man in the black suit at the door there: Take it’s an uncomfortable notion that cer- this bugger outside and shoot him. LBJ has tain persons are laying a bullshit story got in amongst classified CIA files, see, and on me and they’re pretty confident I’ll here he reads stuff which tries to dimin- fallI for it. And last night as I sat pondering ish, bit by bit, the fraud of his intelligence this discomfort with the aid of a wee staff, and he’s on the last, the very latest noggin or two, suddenly there before page. He holds it up to the camera. Here my very eyeballs on the telly is Lyndon it says there was no North Vietnamese B Johnson, in a history programme, ship at all, says LBJ. He is seething. It looking dismayed as the Vietnam war seems he is not the most powerful man steadily unravels. He’s explaining to in the US. Nor is any president; nobody some top-senior US Intelligence dude knows who is. Eisenhower’s only advice that he’s had a nasty feeling the last to the young incoming JFK: Beware the while that the intelligence agency has military/industrial. been laying a bullshit story on him Nou ja, oukei then, so it’s 2010. Here since before the war began, and they’d on the telly is displayed but not for too been pretty confident he’d fall for it. It Illustration: Harold Strachan long a glass case holding a piece of old is very cynical to lie to the President of torpedo, and this torpedo was the one the United States, says LBJ, not to men- that unlawfully did blow in half a South tion unwise, but then if you’re confident Korean destroyer, it must be so because the world will fall for your bullshit why a certain fishing vessel hauled it up from not include the President while you’re the seabed quite close but not exactly about it? Straight talk, man, about most how close to where this destroyer sank. crooked behaviour. Seemed to me in the brief glance allowed And what the Prez is talking about here that this piece of torpedo had mature bar- is of course that monstrous foefie in the Gulf nacles growing on it, but let’s not niggle, an of Tonkin, when the US military was fairly international team has scrutinised it and itching to start shooting in Vietnam; they Eisenhower’s all agree it is the one used by North Korea had to have a casus belli, you understand, to provoke a nuclear war against South a cause for war. And the casus went like Korea and world capitalism. International this: a jolly decent sort of American war- only advice means more than one nation of right-think- ship, a destroyer I think, was going about ing people, of course, like the US and the its benign business patrolling the coastline UK and er... you know... Puerto Rico and... of North Vietnam, you know, benign like say to the young you know, decent people. Only indecent peo- now a North Vietnam destroyer patrolling ple like N Koreans would cause 26 young off the coast of New Jersey, when suddenly men to die in a sinking ship. Ja? Well try in amongst the normal radio traffic an anx- incoming JFK: FD Rooseveldt who laid the best foefie ever ious voice declares that a North Vietnamese on the Imperial Japanese Navy, a bait they warship is menacing this nice US destroyer beware the couldn’t refuse, a line of yesteryear’s battle- and, please sir, what should we do? Sir comes ships at anchor in Pearl Harbor while the back with presidential authority: Stay cool. new capital ships, the a/c carriers, were over The North Vietnam navy says there’s been military/ the horizon and the Japs had no radar. That some sort of mistake, they don’t have any cost 2000 American sailorboys their lives, ship there. Stay cool. hey, but it brought America into the war, did But after a bit, Anxious Voice is anxiouser industrial it not, as schemed by dear ol’ FDR and dear than before. Please please! sir, he cries, now old Winnie Churchill. they’re shooting across our bow! Stay cool, So here we go round the mulberry bush; says Presidential Authority. The N.V. navy an American nuclear carrier with an entire too is anxiouser now, Please please! they cry, air force on board, South Korean Navy US- we really don’t have a ship there. Really re- provided ships, the tutti, off to do benign ally stay cool. A tense night ensues, all await exercises off the coast of North Korea. By an outcome. Then suddenly next morning, the time you read this it may well be Korea: desperately: They’re shooting at us! Aircraft Round Two, Seconds Out !

noseweek Se p t e m b e r 2010 37 Property

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38 noseweek Se p t e m b e r 2010 Property SMALLS

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Deadline for smalls is the 1st of the month Payment by direct transfer should be prior to publication. included in the online made to Chaucer Publications; Account Smalls ads are prepaid at R150 for up to 15 591 7001 7966; First National Bank; Vineyard words, thereafter R15 per word plus VAT. Boxed ads are R250 plus VAT per column cm Branch; Branch code 204 209. edition of noseweek at (min 3cm deep). Payment online at www.noseweek.co.za. Payment by cheque should be made Email ads to [email protected]. to Chaucer Publications, PO Box 44538, Claremont 7735. Further info Adrienne 021 686 0570. no extra cost

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