Mbeki's Secret French Connection

R2880 news you’re not supposed to know (including VAT ) noseweek

81JULY 2006

Mbeki’s secret French Connection

Durban police’s 150 missing guns Brett Kebble’s last laugh Greed and the Nigerians destroy preacher’s life 2 noseweek July 2006 SUBSCRIBE to noseweek and SAVE R68 on the shop price: see PAGE 33 JULY2006 ISSUE81 Don’t July

to me 8 Mr Mbeki’s secret French – there’s really Connection no excuse for not advertising in Cover illustration: DR JACK noseweek! 4 Letters Power, lies and Werksmans n Bring me the heads of the headhunters n Water wastrels n Vintage wine column n Man’s intolerance: who cares? n Unwholesome Holcim n Capital punishment is dead loss

6 Dear Reader Smokey deals n Judge for yourself

12 Durban Metro Blues Whatever happened to the 150 guns missing from the police armoury?

13 Kebble’s last laugh And the joke’s on Randgold

16 Smoke gets in your eyes Mr Big & Co get away with millions in bonded goods KEN FORRESTER WINES

19 Judge Hlophe and friends A profitable academic study of the ancient art of back-scratching

22 Carrot and schtick Mitchell Zuckoff traces the temptation and fall of a Massachusetts psychotherapist, who was tempted by a Nigerian e-mail Contact promising him an easy few million bucks Adrienne de Jongh [email protected] 28 Plett chukkas away its wetlands Was millionaire Leo Baxter just being ‘very naughty’, in the words of an admirer, when he allegedly trashed the environment to build his polo field? 31 Web dreams Hoaxes, lies and rumours Advertise 32 Law of the B®and Curl up with a good computer database

34 NoseArk Oudtshoorn: the dorp that just can’t say no NOW!

37 Wine Another glass of Three-Penis Plonk, anyone? in noseweek

38 Last Word That’ll be the day!

SUBSCRIBE to noseweek and SAVEnoseweek R68 July 2006 on the shop price: see PAGE3 33 Letters

Jew process of law Power, lies and Werksmans allowed it should be replaced “rip-off”. That said, surely What possible relevance Your report on the “restruc- with competent individuals. these wines only become can there be for consistently turing” at Werksmans Clive Varejes “serious” or “grand” (Mr mentioning the religious (nose80) was brilliant! By email James’ terms) after the five affiliation of some of the I work in the lower ranks, Could you suggest a cheap to 20 years it takes for them characters who played their but find myself in the same headhunter to find the to mature? If this is so, roles in the fiasco regarding nasty clutches of power, lies replacement CEOs – Ed then surely the price paid the Werksmans law practice and deceit as Carl [Stein] did. for them should include the (nose80)? Now at least the world knows Putting a damper cost of their proper storage For instance, what is a what’s happening here. If it The street and area NoseArk over that time? Let the “Jewish specialist” corporate weren’t for you, well ... I think describes in “Greenie, green vendor coddle the bottles, partner? Is he the same a lot of people would feel they thyself” (nose80) must Molly! Meanwhile, it seems as a “Christian specialist” were farting against thunder. have the most uncaring, there are enough “label corporate partner? Could an Werksmans employee arrogant water wastrels in drinkers” around to justify Afrikaner be a follower of Johannesburg the province. I live around these usurious prices for the Jewish faith? Is religion the corner from Morgenrood apparently undrinkable language-related? If not, why Fire the head cheeses Street and regularly walk my immature wines. mention it? I’m appalled at the indecent dogs in the neighbourhood. Finally, after much soul- You do this quite often; do fees paid to corporate A yellow face-brick house searching and angst, I have decided to forego my case of preferred plonk this month and instead invest R220 What is a ‘Jewish specialist’ corporate partner? Is it the in renewing my noseweek same as a ‘Christian specialist’ corporate partner? subscription. Lasts longer, no lingering, bitter aftertaste – what did I expect for R220? – and no glass to recycle. you have a pertinent reason headhunters. After reading in Baker Street is being Michael Webb for this? your article “Who gave Sasol ripped-apart for refurbishing Rondebosch Eddie Windsor head?” (nose80) I did some and the once tidy little Wetton investigation and found that terraced garden is now a pile Man’s intolerance: who cares? the fees can amount to 35% of of bricks and rubble. What is happening to your We hate to see a good Jew the first year’s gross salary. As I passed, I saw that magazine? In nose80 you “fucked around by a bunch of This is way higher than the the irrigation” system was tell the tragic tale of the Yoks. Seriously, we generally international standard. squirting streams of water all man who shot the dog – four mention ethnic or religious I honestly feel that, if over the destroyed garden. years ago! Surely there are affiliation only when (at least this is what a company is Inspired by your column, I more pertinent things to be some of) the players in the paying an “independent stopped and politely told a investigating in this country story themselves regard these headhunter”, whoever jolly little group of brickies of ours? All that article as relevant. If that means authorised that payment busy chopping cement off confirms is the intolerance of often, well, this is South should be fired, and perhaps piles of yellow bricks that mankind. Other than that, Africa, after all. – Ed. the board of directors who they were wasting water. I don’t think it is of interest Besides telling me that the to anyone apart from those Gus automated sprinkler system involved. Here’s hoping you had “shorted out” and now get back on track. comes on for a few hours Lou Burger every day, they also told Cape Town me to mind my own business We’re on track; all you need and, for good measure, yelled do is get on board and start a hearty “jou ma se p@#s” in enjoying the passing show. my direction. They also said – Ed something about a “cheeky wit vark”. Name withheld Unwholesome Holcim Your article “Where there’s Mowbray smoke” (nose79) was very Vintage wine column disturbing, especially in I enjoy Tim James’ wine light of the fact that Holcim column and would be happier are planning to put up a still if it were to spill over “blending platform”, to do and fill the next page as well, exactly what is described in obliterating the mental wank the article, at their Florida that is Last Word. factory on the West Rand. Referring to Mr James’ This is within one kilometre June column, I cannot of Soweto, as well as the contemplate the phrases “five residential areas of Florida. hundred rands” and “a bottle At the moment they have an of wine” used in a sentence environmental impact study “Were it not for your obsessive compulsive disorder, that does not also include on view at their factory and you would just be be an idle slob.” the words “outrageous” and at some other venues. I urge

4 noseweek July 2006 Drivel

everyone to go and look at Capital punishment is dead loss Structure of power it and voice their objections, In 2002 Americans were Due to a series of disastrous power failures in the 1990s, based on your report. very, very happy because the city of Ponacel in South America totally banned elevators. Mike Zimmermann they had only 16,638 criminal Renowned for its high-rise residential and commercial buildings, Weltevreden Park homicides: and they were the impact of this on the population has been profound. right because from 1984 to Scary in my backyard 1993 criminal homicides had An early effect was a steep increase in heart attacks but, as the The piece in nose79 on the averaged 22,000 a year. The burning of hazardous waste population got fitter and stronger from climbing endless stairs, same year, in Italy we were the incidence of heart attacks plunged a staggering 45% from the pre-ban high. in the cement industry was very afraid because, with a scary enough. But now it’s population that is one fifth about to happen in my own of America’s, we had 638 A side-effect of this increase in general health was the rise backyard. criminal homicides. We were in serotonin levels, thanks to the beneficial effects of exercise Holcim intends building very concerned, even if 638 and a concomitant upsurge in traditional cocaine and coca leaf use. a waste-processing facility was half the homicides we’d A survey conducted by the Cocatl University suggests that cocaine in the middle of the densely had in 1994. use increased in proportion to the height of office or apartment. populated West Rand, which Americans love to think the is already heavily polluted drop in their figures is a result There have also been curious sociological changes. The well-to-do by Sasol, Mittal (nee Iscor) of the retention of the death began to favour the lower floors, while the higher floors were and other noxious industries. penalty. occupied by the poor but§ healthy, who enjoyed better views. Here, in winter, pollution On the other hand, Italy’s does not rise, but sits close murder rate has halved – yet This situation, according the Marxist Emmanuel Klug, to the ground, choking every we have no death penalty. (In living thing. If allowed to go Europe, capital punishment is creates a situation classically conducive to revolution – ahead, this new facility can strictly forbidden and most of Spartan versus Epicurean. only make an already critical the world is abolitionist). situation worse. Italy first abolished capital However, he said, such a revolution, thanks to the mood-enhancing Maybe it’s time the minister punishment in 1888, and effects of serotonin and endorphins will be neither angry nor violent of health got off her butt, left restored under Fascism. In but cheerful and simple. The poor will move down. The rich smokers alone for a while and those sad years the homicide will shift up, immediately becoming a counter-revolutionary force. did something about the real rate was five times higher The middle-classes will, of course, be immured from change. polluters in this country. than now. In the 20 years Cedric Edwards following the abolition of the As the Indian writer Vikram Tagore put it: West Rand death penalty (1948-1968), “A living analogy of karma in action”. the homicide rate dropped to a Gus Ferguson Sleepless in Slovakia quarter of its previous levels. I’m really glad to have found Something similar happened noseweek. The Holcim cement in Canada too following the factory in Rohoznik, just 4km abolition of capital punishment “hanging” states in the US Of the executed, some were from where I live in Western there in 1976. are not better than those for innocent, many were mad and Slovakia, wants to increase Curiously, in the same year, states which do not impose the many more were not guilty of a the amount of dangerous the US Supreme Court gave death penalty. Of the 10 states capital crime; nearly all would waste for “co-incinerating” the green light to the “new and with the lowest homicide rates, be alive, and some free, if from the present 40,000 improved” American death eight have no gallows, one has they had had competent legal tons per year, to 117,000 penalty and, with the shooting had no execution and one has counsel. tons! It was while seeking of Gary Gilmore (17 January an empty death row. Sooner or later, Americans information about this 1977), the executioner was The death penalty is an will realise that the death technology that I discovered back in business. enormous waste of lives, penalty is an immoral, indecent, your magazine on the Now, after more than 1000 money, time and resources. illegal, expensive, stupid, cruel, internet. So, thank you very administrative killings, we can This cancer is destroying dangerous, racist, class-related much: We need all the help say, with Justice Blackman, American justice. It is not and ineffective violation of we can get to win this fight. that “the death penalty a deterrent and kills the human rights. Jan Ripka experiment has failed”. poor, the weak, the mad, the Dr Claudio Giusti Solosnica, Slovakia Crime statistics for illiterate, the black. Forlì, Italy Your Complete Software Solution Trust Accounting Electronic Instructions Property Transfers Case Management Bond Registrations Client Billing Debt Collection Diary System “”Making computers work for you Litigation Time Management 0861711150 Bills of Cost Management Reports For a free demonstration. Trade Marks Admin Orders www.legalsuite.co.za

noseweek July 2006 5 Dear Reader

Tel: (021) 686 0570 Fax: (021) 686 0573 [email protected] www.noseweek.co.za Smokey deals

Editor N OUR COVER story we tell about President John Major and Thabo Mbeki already in 1995.” Martin Welz Thabo Mbeki’s French connection. There How smokey was the deal? British was, of course, also an English connection, investigators estimate that Charter was Managing editor and a German – not to speak of the Kebble involved in laundering an estimated R1.8- Marten du Plessis Iconnection and all those other happy Party billion in “commission” from BAe to the ANC Production editor funding connections. and/or its senior members, within weeks of the Tony Pinchuck A recap on the English connection sets the deals being signed in 1999. scene. In the apartheid arms embargo years, The ANC has a problem: the vast majority of Gauteng bureau British Aerospace (BAe) still had their man in its supporters are desperately poor. They cannot Jack Lundin Johannesburg: Richard Charter, who traded afford food, let alone fund a political party in a very lucratively, for the duration, as Osprey modern democracy. So to fund its infrastructure Censor-in-chief Aviation. Come 1994 he was back in uniform and campaigns, the party must look to funders Len Ashton as BAe Systems SA. From then on BAe was it would rather not identify. Who demand their Proof reader actively vying for a slice of the South African pound of flesh in profit or policy changes. Ann van Bart defence pie: not only to sell us fighter planes, That way we end up paying R50-billion-plus but (less well known) also for a chunk of the for inappropriate defence equipment in order to Researcher navy splurge. It had a team of experts in SA for provide the party with perhaps half a billion in Jacqui Kadey months working on a navy bid. But within days funding. (The other half went to the suits.) in early January 1999, BAe’s navy bid was Surely there are more rational – and less Cartoons off and its naval men were gone. It transpires corrupting – ways of funding the democratic Gus Ferguson they’d got a directive from somebody “very, process? Can’t we, as taxpayers, just agree to Myke Ashley-Cooper very high up” to get out of the country. pay the party a billion – and get to keep the R49- Contributors Richard Charter would later explain to a billion in change? Mzilikazi wa Afrika trusted noseweek source: “We were told late in We do not raise the subject in defence of Jacob Tim James December 1998 that if we didn’t withdraw from Zuma: bums on the take must take what they Hans Muhlberg the naval bid, we stood a good chance of losing get. But friends of the president should note that the promised aircraft deal as well.” How come it’s natural for politicians to use any dirt that Marike Roth BAe was so sure of getting the fighter deal? comes to hand against their competitors. It’s the Andreas Stelzer Charter’s reply: “That was settled in a smokey way democracy benefits from the insight that, Harold Strachan room deal between [then UK prime minister] when thieves fall out the truth will out. Subscriptions Maud Petersen

Advertising Adrienne de Jongh Judge for yourself

Subscription rates ONG AGO (in nose41), Dr Owen Dean of scandalous role, but in the meantime, there is Print: SA only R220 for 10 Spoor and Fisher, intellectual property justice. issues. Neighbouring states attorneys of Johannesburg, had “cause Go to Spoor and Fisher’s website, where you’ll (airmail) R355; Overseas (airmail) to reflect” about noseweek’s attitude to find the following delicious passage: “The Coun- Europe, Americas and Australasia: trademarks and trademark attorneys. terfeit Goods Act 37 of 1997 is perceived to be a R375 (for 10 issues). Online: L(He referred to us as “nauseous week”.) Of par- world first of its kind and was largely devised R250 for 10 issues (visit www. ticular concern to him was the Standard Wank and authored by the firm’s Dr Owen Dean. A full noseweek.co.za). T-shirt produced by Laugh it Off. description and analysis of the Act written by To subscribe by post On Sunday 18 November 2001, Rapport had Owen Dean is available on our website ....” Send cheque with name, carried an amused report on the T-shirts. By So, nobody knows the Counterfeit Goods Act address and phone no. to: 11am the next day, Standard Bank’s attorney, better than Dr Dean. He wrote it. There can noseweek, PO Box 44538, one Mohamed Khader had organised a search be no doubt that he knows the Standard Wank Claremont 7735. and seizure warrant – improperly issued in search and seizure warrant was unlawfully To subscribe via Internet and terms of Sec 7 of the Counterfeit Goods Act obtained. Dr Dean is personally in charge of the pay by credit card go to (the T-shirts were definitely not counterfeit Standard Bank’s intellectual property work. Mr www.noseweek.co.za goods) – and had six teams of inspectors from Khader was/is his sidekick, sent in to bat on a Copyright All material in this issue the Department of Trade and Industry (DTI) dicey wicket – and, no doubt, to take the rap, if is copyright, and belongs to Chaucer launching simultaneous raids on six boutiques they get caught out. Publications (Pty) Ltd, unless in the Joburg area. (All had already sold out of Late in 2005, TV personality Judge Dennis otherwise indicated. No part of the material may be quoted, photocopied, the shirts.) Davis interviewed Dr Dean and Laugh it Off’s reproduced or be stored by any Laugh it Off should have brought a court Justin Nurse on his TV show Judge for Your- electronic system without prior written application to challenge the DTI’s Nazi-style self. Dean obsessively questioned Nurse about permission. Disclaimer While every action and the decision of the magistrate who the “political statement and social comment” reasonable effort is taken to ensure granted the order. But they didn’t have a mil- made by the Standard Wank T-shirt. the accuracy and soundness of the contents of this publication, neither lion or three, and the issue of the improperly It’s simple, Dr Dean: you’re the standard the authors nor the publisher will bear issued warrant faded away. wanker. any responsibility for the consequences We’ll return at a later date to the DTI’s The Editor of any actions based on information contained herein. Printed and Published by Chaucer 6 Publications (Pty) Ltd. noseweek July 2006

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noseweek July 2006 7 FIREWATER FW1567/1150 COVER STORY

ident and his financial adviser Schabir Shaik. Shaik solicited the R500,000 THE ARMS DEAL bribe for Zuma from Thales.

IMAGES24.co.za/City Press/Bongani Shaik’s Nkobi group – named after a former ANC treasurer – is Thales’ local partner in the defence business. Documents that have emerged from various investigations of the arms deal appear to confirm what has long been rumoured: that Mbeki, too, had secret meetings with the French and other major bidders for the defence contracts

Mnguni while he chaired the cabinet committee that oversaw the multi-billion rand arms acquisition process. When last year Mbeki was asked a formal question in parliament about one such meeting, the reply was that he “does not recall” such a meeting. Three weeks ago the president’s spokes- man, Mukoni Ratshitanga, promised us: “I will come back to you as soon as the people I need your answers from are out of a meeting. I will try my best to answer your questions before your deadline.” Days later, Ratshitanga changed his tune: “I cannot say anything about your questions. And I am unable to make any comment.” Documents in our possession show that Mbeki met with Thompsons/Thales Mr Mbeki’s secret senior vice-president Bernard de Bollar- diere, among others, more than once. In the documents, Johannesburg businessman Reuel Khoza and then- South African ambassador to France French Connection Barbara Masekela (now ambassador to Washington), are named as facilitators and organisers of the meetings. In a letter dated 18 December 1998, RESIDENT THABO MBEKI had a series addressed to “His Excellency Mr Thabo of seriously compromising secret Mbeki”, De Bollardiere states that he meetings with executives of and his colleagues “have been very the French arms company that much honoured by the audience you P was subsequently awarded a granted to us during your last stay in R1.3-billion share in the South African Were the Paris and we deeply appreciate your government’s controversial arms deal advice related to the present situation – meetings that today he prefers not to president’s in South Africa. We understood through remember. a further discussion with Her Excel- Thompson-CSF, since renamed lency Mrs B Masekela that we could Thales International, faces criminal clandestine possibly meet with you in South Africa charges for offering former deputy beginning of 1999 to enter into further president Jacob Zuma a R500,000-a- meetings meant details as far as the implementation of year bribe, inter alia for protection the black empowerment policy of our against the formal probe that was being to advance the JV [joint venture] African Defence Sys- conducted into allegations of corruption tems [ADS] is concerned.” related to the arms deal. Both Thales interests of the A senior representative of Thales and Zuma go on trial on these International hand delivered the let- charges in the Pietermaritzburg ANC or of ter to Masekela at the South African High Court later this month. Embassy in Paris, who received it on Mbeki fired Zuma last year behalf of Mbeki. after Judge Hillary Squires South Africa? Another letter, dated 19 June 1998, found there was a cor- signed by De Bollardiere and addressed rupt relationship between to Alain Thetard (Thales’ chief execu- the former deputy pres- tive in South Africa), informs the lat-

8 noseweek July 2006 ter that the meeting between Mbeki Paris on 17 December 1998. At that packages. Naidoo was the chief nego- and Jean-Paul Perrier, head of Thales time the arms deal negotiations were at tiator on behalf of the government and International, “must take place on Sat- a very sensitive stage. Shamin “Chippy” Shaik, brother of urday the 27th or Sunday 28th of June, In the same letter, De Bollardiere Schabir Shaik, was the chief of acquisi- in Pretoria if possible or even in Cape informed Masekela that he was plan- tions. Town.” ning to visit South Africa in January or Masekela refused to answer any of our It also says that “Khoza must press February 1999 to get Mbeki’s reaction questions – sent to her in writing – relat- for an appointment with Mbeki. He is and also “to discuss the subject of black ing to the documents and events referred keeping us informed.” empowerment in our ADS JV with him.” to in this report. (See box below on her Perrier came to South Africa as De Bollardiere arrived in South Afri- personal relationship with the notori- planned. His programme for 27 June ca on 9 February 1999. On his itinerary ously corrupt French defence supplier.) 1998 shows that he had a “meeting for the next day was listed a “meeting Reuel Khoza confirmed that he did with Mr Thabo Mbeki, Deputy Presi- with Thabo Mbeki, Barbara Masekela, meet Thales representatives, but vehe- dent of the RSA” scheduled for that day Chippy Shaik and Jayandra Naidoo”, at mently denied facilitating a meeting – “details to be given by Mr Thetard.” an unnamed hotel at 2pm. between them and Mbeki. A month later Pierre Moynot, chief President Mbeki chaired the sub-com- Khoza said: “If there was a meeting executive officer of Thales subsidiary mittee of cabinet ministers responsible between Mbeki and Thales officials, I African Defence Systems [ADS], record- for approving the defence acquisition was not part of it at all.” ed on a handwritten note that Mbeki “is not happy” and that this was one of the reasons why the then-deputy president had “refused to see Perrier when he was in Paris.” ... and the ambassador The cause of Mbeki’s unhappiness is not stated. A two-page business OCUMENTS IN noseweek’s possession sug- ship Jurgen Kogl holds at the highest proposal written by De Bollardiere gest that South Africa’s most senior political level, which I have accepted.” (He to ambassador Masekela, dated 27 D diplomat, ambassador to the USA also notes that French intelligence have November 1998, makes the unlikely Barbara Masekela, has business links reported that “Kogl is not as influential as claim that “the company was able, dur- with the French company most prominent he once was”.) ing the apartheid era, to show its sup- in South Africa’s arms deal scandal. Thetard recorded four meetings with port for the ANC cause in a symbolic Masekela’s dealings with Thompson- Masekela and one with Kogl, in his pri- manner and this without taking imme- CSF began while she was ambassador to vate diary for 1999. Their phone numbers diate commercial considerations [into France from 1995 to 1999. The company are written on its front page. account].” has since been renamed Thales Interna- The Scorpions have a warrant issued More importantly, it records that tional, in a bid to blur it’s international for the arrest of Thetard for his role in the “we had access six months ago to your reputation for corrupt dealings. alleged Zuma bribe, after the Frenchman President T Mbeki [perhaps a reference Masekela accompanied Thabo Mbeki to fled South Africa. to Mbeki’s presidency of the ANC – he a secret meeting with Thompsons execu- In a telephone interview from Wash- only became president of the country tives (including Bernard de Bollardiere, ington, Masekela refused to confirm or in 1999] and at the time handed him Thales senior vice president) in Paris on 17 deny she held shares or some interest in the name of a partner to play the black December 1998 – just a week after the for- Thales. “I have no comment to make at empowerment role in ADS and to thus mal contract negotiations between Thomp- the moment. I will come back to you if I be our political guarantee.” This would sons and the SA Defence Force had begun. think it’s necessary.” She didn’t. appear to confirm that a meeting with Mbeki was deputy president at the The issue is particularly sensitive, since Mbeki did take place in mid-1998 – at time, but some Thompsons records appear Thales is facing corruption charges along about the time of Perrier’s June visit to suggest that they were also negotiating with Zuma in the trial scheduled to begin to SA and his then scheduled meeting with him as president of the ANC. in Pietermaritzburg on 31 July. with the president. A document in our possession, dated Last year, at the trial of Zuma’s De Bollardiere’s business proposal 17 May 1999 – scarcely a week before financial advisor Schabir Shaik, it was goes on to confirm that “a contact whom the contract negotiations were success- revealed that one of Kogl’s companies we consider authorised by Mr T Mbeki fully concluded – indicates that Masekela paid R656,000 into a bond account for recently informed Mr J P Perrier in “authorised” Johannesburg businessman Zuma’s flat – on the same day Shaik met RSA that ADS had met the require- Jurgen Kogl to handle all her affairs with with Thales officials in Mauritius. ments with regard to black empower- the company because “for ethical reasons, Kogl also paid R183,000 to settle ment” and concludes that “we could being an ambassador in Paris, it was not Zuma’s debt with Mercedes Benz Finance. receive a clear message from the presi- possible for her to be in a direct business Scorpions chief investigator Johan du dent on the subject on his trip to Paris.” relationship with a French company.” Plooy later declared in a search warrant And, indeed, three weeks later, on 18 The document – an encrypted fax – is application that Kogl was at one stage sus- December 1998, De Bollardiere wrote addressed to Thales boss Jean-Paul Perri- pected of being a Thales representative. another letter to ambassador Masekela er by Alain Thetard, Thales CEO in South Du Plooy said the search necessary “to in which he thanks her for arranging Africa at the time. establish the true nature of the payment; a meeting with Mbeki while he was in Thetard reports that Masekela “wishes whether the funds can be linked to Thom- Paris. The letter explicitly confirms that to wait for the next elections before defin- son/Thales; the relationship between Mbeki had a meeting with De Bollardi- ing precisely the terms and conditions of Zuma and Kogl, and if any repayments ere, Perrier and Michel Denis (a senior our co-operation.” He adds that “Barbara were made.” official with Thales International) in suggested that I validate the relation- Kogl could not be reached for comment.

noseweek July 2006 9 Durban Metro Blues

Gunshot victim: Cherise Cox and colleague

HEN CHERISE COX was called to a corpse turned up in an abandoned car crime incident in Voortrekker after he snitched about a second rob- WRoad, south of the Durban CBD bery the Shezi gang was planning. she could hardly have been surprised “He’d been bludgeoned to death with to find herself being shot at. She was a a baseball bat. They’d tried to make it cop after all – a member of the Durban look like a car crash,” says McInnes. Metro Police Service Dog Unit – and When Cox and her partner ran into this was a hijacking. the Shezi gang, the criminals were What might have surprised her, hijacking an old-model Merc – said to though (if she’d had time to be surprised be their car of choice for ramming cash in the seconds before a bullet tore into vans. her stomach), was that the gun that Whatever The cops leapt out of their car firing brought her down was police issue. at the four armed men. The pint-sized Cox and a colleague arrived at the happened to Cox was wearing a bulletproof vest scene to be confronted by four well- – but not a Metro Police one. In a cost- armed, highly trained and extremely cutting measure the Ethekweni Coun- violent criminals – armed robbers that the 150 guns cil hadn’t bought vests small enough the SAPS Serious and Violent Crimes for a 1.5m female. Unit had been hunting for years. missing from As Cox stood up to fire over her car Detective Inspector Bruce McInnes at one of the hijackers across the road, of the SAPS Serious and Violent the police her vest hiked up – and a bullet Crimes Unit takes up the story: ripped into her navel, tearing “We’d received a tip-off from through her flesh and cutting her an informer, Vulile Blose, that a armoury? femoral artery – an injury that cash-in-transit vehicle was going usually means a victim will bleed to be robbed near Southway Mall to death within five minutes. in Rossburgh. The van was going Cox was saved by an ambulance to be rammed off the road prior to – literally around the corner. being robbed and a Beemer or a Paramedics stemmed the bleeding Merc would be hijacked for that and raced her to St Augustine’s purpose.” Hospital Trauma Centre. Simphiwe Shezi, alleged mas- It was when investigating cops termind of the gang, doesn’t have secured the crime scene that they a long criminal record. He’d been discovered that the Shezi gang arrested only once for hijacking had been armed with two Metro a truck – but before he could be Police pistols – one of them the brought to trial the complainant gun that shot Cox. and witness vanished. McInnes rushed to the scene Nobody knows precisely what when he realised his man had happened to them, but McInnes been nabbed. Shezi, desperate knows his informer’s fate. Blose’s to cut a deal with the cops, sang like the proverbial canary. After shopping the rest of his Under arrest: Simphiwe Shezi, alleged gang, Shezi told McInnes that cash-in-transit-heist mastermind, being led the Metro Police guns had been away from the hijack scene bought off two bent cops.

10 noseweek July 2006 Not quite the story the pair of cops McInnes provided a sworn affidavit spun. Thembinkosi Mthethwa and that Shezi had claimed that the Metro Sthembiso Zimu, in their official state- Police officers had sold their duty ment of 30 July 2003 reporting the loss firearms. This he handed to Cox, who of their firearms, claimed that three handed it to Inspector Dieter Meyer armed men had robbed them of their – a Metro Police officer. weapons. Serious and Violent Crimes Unit Cape Town and suburbs Mthethwa went on to say the men detectives have heard nothing more sped off in a white VW Golf with regis- from Meyer. tel 0861 422 426 tration ND 527 890. When noseweek interviewed Shezi in fax 021 419 7484 However he failed to describe any the holding cells during an appearance email [email protected] of his robbers or even the clothes they in the magistrate’s court, the alleged were wearing, despite having been face robber confirmed that nobody from to face with them. the Metro Police had been to see him The number plate he gave belonged – although he is willing to give them a to a Golf reported hijacked to the statement. The more he is seen to help SAPS two weeks before the alleged the authorities the better it looks for robbery. him when he comes to be sentenced on One sceptical detective wonders why, the several counts of armed robbery after being robbed, the pair didn’t fol- and attempted murder he is facing. low the vehicle and report the incident When noseweek asked Durban over their police radios. municipal manager Dr Michael Sut- Someone else thought of that too. cliffe why his police had been so Zimu’s statement has an addition, remiss, he said it was felt that it would made in a different handwriting, which “not be in the interests of justice” to adds that the robbers also took their question Shezi and his accomplices For all your property ﬁnance requirements Metro Police car keys. about his claim – as they are awaiting- Zimu did not sign his statement. trial prisoners in a serious criminal He, too, neglected to describe the gun case. Gary Peterson Jenni Warrington 082 453 7374 083 280 2444 [email protected] [email protected]

After shopping the rest of his gang, Shezi www.bondman.co.za told McInnes that the Metro Police guns

had been bought off two bent cops Steve Banhegyi & Associates www.trans4mation.co.za thieves, despite his claim that they Former Durban city councillor Lyn 083 232 6047 had come up close enough to search Ploos van Amstel, a former senior pub- Consulting in leadership, organisational change him. lic prosecutor in the Pinetown courts management, knowledge management, educational Amazingly, the pair also did not was shown the documentation relating media development, and storytelling report anything other than their guns to the probe of Cox’s shooting. being taken – despite being in posses- “The facts are sufficiently suspi- sion of cell phones and portable radios. cious that the policemen need to be Two weeks after this alleged rob- cross-examined in great detail. If you bery, Cox was shot and maimed with are on-duty in a marked vehicle and I can’t find your cool the Tanfoglio pistol issued to Mthet- someone comes waving a gun at you I can’t find your golf game hwa. demanding your firearm, I would have Sthembiso Mnyando, the man who expected that you would draw your Nor can I find your car maimed her, was shot dead on the firearm and shoot. A member of the But I CAN find your water leaks scene by Cox. public making a similarly absurd claim Shezi was arrested on the scene and would be charged with negligently los- Using the latest technology took detectives to his gang’s lair where ing his gun.” with no guess work. they recovered another Metro Police She also observed that, if the case Greater Johannesburg gun – the one that Zimu allegedly sold had been thoroughly investigated from to Shezi’s gang. the instant the guns were reported But when McInnes passed on the stolen, it was possible they would (011) 763 6306 information that Shezi was “singing” have been recovered and the suspects and suggested the Metro Police speak arrested before they maimed Cox. Geldenhuis to him preparatory to having another At the time the Serious and Violent chat with Zimu and Mthethwa, the Crimes Unit recovered the two miss- Plumbing suggestion was ignored. ing guns, the Metro Police had not

noseweek July 2006 11 even listed them as stolen on the SAPS gess with being in possession of stolen Durban) the irate ANC big wig said computer system. This also might have military goods – which turned out to that although “some” guns had gone helped lead to the guns being recov- be equipment the SANDF had formally missing, “all are now accounted for.” ered before Cox was shot. request he store in his strongroom. Since he is known for his creative Sutcliffe now says he will make the Jacques Botha, Burgess’ lawyer told use of the English language, we chal- results of his probe into firearms con- noseweek he suspected this was all lenged Sutcliffe to confirm exactly trol in the Metro Police known. Don’t done to punish his client for reporting what he meant by “accounted for.” hold you breath. rampant corruption in the Metro Police It transpires that in Sutcliffe-ese In 2004 councillor John Steenhuizen to the SAPS. it means that somewhere they are asked for the results of an audit into It gets worse. recorded on a scrap of paper as “miss- the firearms controlled by Metro Police The Durban Metro Police record ing” or “stolen”. to be made available to council. In proof missing guns lists an SAPS case Now read his official statement on posing the motion he said that around number against each missing firearm. the subject again: “I have indicated 150 guns were missing from the Metro These case numbers are provided by that, in our own 2003 audit we ended Police armoury. the policeman who reports having lost up accounting for all the guns which The ANC caucus in council voted his gun and are recorded as proof that should have been in our possession; unanimously not to make this audit the gun was reported missing or stolen this was confirmed by the 2005 SAPS public – ensuring the public never got to the SAPS and that the case is being audit and in my own audits now this to know how many lethal weapons investigated. has been confirmed. I am further crooked cops have put in the hands of Metro police management uses the investigating each aspect of these and criminals. Despite the ANC majority’s fact that the SAPS are probing the what is being done about those guns attempt to keep the audit from council- missing guns as a reason for avoiding which are accounted for but not any lors, noseweek has learned some inter- holding their own disciplinary inquiry more under our control.” esting details about it. to find out how the guns went missing Meanwhile, since being shot three

Burgess found that in some cases cops had lost two or even three guns – without facing a disciplinary inquiry

In 2003 Metro Police armourer and if the policeman who lost them is years ago, policewoman Cox has Warren Burgess was tasked with con- culpable. endured nearly a dozen operations and ducting an audit of the Metro Police Trouble is, most of the listed SAPS is so badly scarred that she has been armoury. Described as a perfectionist case numbers are false. told no plastic surgeon in this country and a stickler for detail by his col- In one case a Metro policeman has can help her. She’s also had her pay leagues, Burgess discovered nearly lost three guns and each of the SAPS slashed – and been offered a pittance four dozen guns had vanished from the case numbers next to these missing as a medical pension – an amount Metro Police armoury. guns is fake. equal to less than one month of “Metro He found that in some cases cops Neither Sutcliffe nor the head of the Mike” Sutcliffe’s salary. had lost two or even three handguns Durban Metro Police, Eugene Nzama Cox has also been told that her – without facing a disciplinary inquiry. responded to queries as to whether severe post traumatic stress is not, in He also discovered that many of the this man was still in the Durban Metro the Metro Police’s view, due to her hor- guns had never been reported missing Police. They also ignored questions on rific injuries in the line of duty. So, she to the SAPS. whether he has been issued another has had to pay for psychiatric medica- Burgess’ report of the missing gun. tion out of her own pocket. Her broth- and stolen guns is filed at Durban Neither did they respond to ques- er Shane has been reduced to writing Central Police Station (case number tions about Chatsworth SAPS case letters to newspapers asking anyone 273/04/2004). number 132/01/2005. In this case who could help his sister with her vast Days later Burgess, a reservist with SAPS detectives recovered a Metro medical bills to contact him. the SA National Defence Force, was Police assault rifle from an armed rob- Metro Police have refused to pay for arrested and charged with being in bery gang – while the Metro Police did plastic surgery to repair the massive illegal possession of army property. not even know the gun was missing. damage to her abdomen and her medi- The case against Burgess collapsed “in This case was not investigated by cal aid was exhausted long ago. abject and complete ridicule” according the Metro Police, despite the fact Metro Mike says he can’t comment to a prosecutor at the Durban courts. that the person caught with the rifle on anything relating to Cox until he The Metro Police had charged him described and named the Metro Police has finished his own investigation. with having unlicensed shotgun bar- officer who supplied him with the He ought, as the saying goes, to be rels – which turned out to be old pieces firearm. shot. of steam piping. The Durban corpora- When noseweek put all this to “Metro n Shane Cox can be contacted on tion’s men in blue also charged Bur- Mike” (as Sutcliffe is now known in 083 560 0489 or at [email protected]

12 noseweek July 2006 Brett’s last laugh (and the joke’s on Randgold)

OW EXACTLY PETER Gray Grave situation: Kebble’s chosen came to succeed Brett man Peter Gray Kebble as CEO of JSE-listed mining investment company HRandgold and Exploration appointment as CEO was like (Randgold) has always been waking in the operating theatre Picture: MiningWeekly an intriguing question. after a mugging – only to Now, thanks to legal action find that the surgeon was the by disgruntled Randgold mugger’s accomplice. shareholders, answers are Equally troubling for starting to emerge. And it’s Randgold shareholders was hair-raising stuff. the fact that Gray had been The question is intriguing Kebble’s representative in because it’s hard to imagine negotiations with Investec a less suitable choice for the Bank over a new loan for JCI position. Gray was a close Ltd. The negotiations started business associate of Kebble’s, early in 2005 and culminated and had been his share broker in the deal that saw Kebble’s for many years. (What an resignation in August – and interesting job that must have Gray’s installation in his been! And how instructive of place. Kebble had plundered Kebble’s business affairs and Randgold to support JCI, where methods.) his main financial interests As CEO of Tlotlisa Securities lay, and had much to hide. (T-Sec), a brokerage set up and That Gray emerged from those secret financed by Kebble (no doubt with negotiations as CEO, acceptable to both ill-gotten gains), Gray was the broker Kebble and Investec, suggests that he through whom Kebble carried out must have shown an understanding of the now notorious unauthorised and the “sensitivities” of the situation. And fraudulent sale of billions of rands demonstrates that he would approach of Randgold shares in London-listed Kebble’s own special requirements Randgold Resources. (e.g. to avoid jail) in a manner that There are still many unanswered both Kebble and the bank approved. questions about Gray’s role in those Meet the man But that might well be at odds with dishonest dealings. How, for example, the interests of shareholders and the was it possible for an experienced principles of good corporate governance. broker like Gray to sell at least handpicked by Perhaps the main reason for R1bn-worth of shares belonging to Randgold shareholder concern was the Randgold, and then remit the proceeds Kebble (and fact that Gray was, simultaneously, to accounts belonging to JCI and its also appointed CEO of JCI. Under various subsidiaries, without noticing Investec) to keep Kebble’s direction, JCI and Randgold that something was amiss? Did Gray’s had come to share nearly identical brokerage services for his crooked pal the lid on the boards of directors. This is what made comply with the normal procedures and it possible for Kebble to misappropriate safety mechanisms? (Gray has refused Randgold’s assets for JCI’s benefit. to allow shareholders access to T-Sec’s shares scandal It seemed common sense, many records for the Kebble account.) Randgold shareholders thought, to To what extent might cheated properly separate the affairs of the two Randgold shareholders have a claim companies, and for Randgold’s claims against T-Sec, or against Gray himself? against JCI to be properly identified One Randgold shareholder told and vigorously prosecuted by an noseweek that news of Gray’s independent Randgold board.

noseweek July 2006 13 Despite the obvious conflict of largest shareholder, Aflease Gold Ltd. worst fears about Gray’s appointment. interests, however, Gray was appointed That, and the fact that the forensic The documents revealed that it was CEO of both Randgold and JCI. And audit initiated by Gray, after he took a specific condition of Investec’s loan to the other executive directors of the over at Randgold, appeared to be JCI that the board of Randgold would be new Randgold board - chairman David dragging on indefinitely, prompted reconstituted in a manner “acceptable Nurek, (a long-time Investec stalwart), action by a group of Randgold to Investec”. Investec’s dream board and financial director Chris Lamprecht shareholders. Led by Quinton George, included Gray as CEO, and all the other (from gold miner Western Areas) CEO of Cape-based money manager directors that have since been appointed.

A specific condition of Investec’s loan to JCI was that the board of Randgold would be reconstituted in a manner acceptable to Investec

– occupied equal positions on the JCI “Trinity Asset Management, they took Investec did not own ”shares in board. legal action this year in an attempt to Randgold, and had not lent any money All the more troubling, and downright wrest control of Randgold from Gray to Randgold, and therefore had no suspicious, was the new board’s refusal and his associates. legitimate right to interfere in the over the next few months to appoint a The documents discovered, and legal affairs of Randgold, or the interests of director nominated by Randgold’s single exchanges in the case, confirmed their Randgold shareholders. Why, then, was the bank seeking to control the board of Randgold? Readers will remember that Kebble’s resignation as CEO of JCI was precipitated by a cash crisis at JCI that threatened bankruptcy. As Kebble’s representative, Gray negotiated with Investec for a R460m loan that would keep JCI afloat, and allow JCI to preserve its most valuable asset, its stake in Western Areas. In return, Investec would receive interest on the loan plus a fee that would be equal to the greater of R50m or 30% of the increase in the value of JCI’s shares in various mining and other companies, most notably Western Areas, plus 10% of the rise in value of the shares of JCI itself. So far, Investec’s fee amounts to a massive R360m – excluding a cut in an increased share price, which has yet to be established when JCI’s shares are traded again on the JSE. An unprecedented and exploitative banker’s fee! The deal offered Investec the added advantage of avoiding all sorts of unpleasant consequences should JCI have been declared bankrupt – such as losses on sums already advanced to JCI and its exposure on the Western Areas hedge book. Investec CEO Stephen Koseff personally negotiated the deal, turning a potentially bad situation into an opportunity for the bank to make big bucks. But there was still a potential danger: according to the financial statements of the two companies at the end of the 2003 financial year, JCI officially owed 315611 some R140m to Randgold. Insiders like Gray and Investec would have

14 noseweek July 2006 known that the sum owing by the firms. Allan Gray Ltd is not a Randgold in both JCI and Western Areas that middle of 2005 was much larger. An shareholder. Allan Gray’s clients own would have been adversely affected if independent Randgold CEO and board, Randgold shares – 25% of them. The an independent Randgold board was acting in the interests of Randgold distinction is crucial because it means to claim the full amount owed to that shareholders, would have claimed that Allan Gray must obtain a specific company by JCI – pushing JCI into repayment immediately of the R140m, mandate from its clients invested in bankruptcy. Allan Gray Ltd has a and other sums, from JCI. That would Randgold, before supporting Peter serious conflict of interests. have pushed JCI into bankruptcy and Gray’s appointment – either informally, Quinton George maintains that spoiled the Investec party. as they have done, or formally in a vote Peter Gray continues to protect JCI Hence the bank’s determination to (which has yet to take place). to the detriment of Randgold. In appoint a Randgold board of its own Until Allan Gray Ltd is willing to particular, Gray is treating the loan to choosing, and one that would direct explain openly to those of its clients JCI of Randgold’s shares in Randgold Randgold affairs with a lenient view of who hold Randgold shares why they Resources and Afrikaner Leases as a the sums owed by JCI and contrary to should support Peter Gray as CEO, theft by Kebble. This means that, by its own shareholders’ interests. Hence, any backing they express for Gray is Gray’s interpretation, Randgold can to get back to our original question, questionable - particularly since, at claim only the proceeds of the sale the appointment of such an unlikely the time of Peter Gray’s appointment, of those shares, not the return of the character as Peter Gray to head Allan Gray Ltd also had interests actual shares. Both companies’ share Randgold. prices have risen so much that The appointment of a the difference is worth well new CEO by the board over a billion rand to should normally be Randgold. ratified at the earliest George says that an possible opportunity independent Randgold by shareholders at an CEO, with no allegiance AGM. Nearly a year after to JCI, would claim the Gray’s appointment, return of its borrowed Randgold shareholders shares, in addition have still not been given to pursuing more an opportunity to vote aggressively Randgold’s on his appointment, or other claims against JCI. that of the other new It is to this end that he directors. Gray is still and his investor group CEO of Randgold, only by have instituted various virtue of the deal between court applications that Investec and a desperate are still pending. Brett Kebble. The agenda Gray, on the other for a general meeting of hand, has proposed a Randgold shareholders, process of arbitration scheduled for June 30, did between the claims of the not include ratification of Randgold board (led by Gray’s appointment. Peter Gray) and the JCI Gray claims support board (led by Peter Gray) from one surprising – proving that he does quarter: that of Allan at least have a sense of Gray Ltd (no relation), one humour. of South Africa’s biggest Randgold shareholders and most reputable are not amused. So far, investmentFivaz AD (183x62) management (Converte.fh8 13/12/04 1:23 PM Page 1 the joke’s on them.

C M Y CM MY CY CMY K

noseweek July 2006 15 Composite Smoke gets in your eyes

OOTING OF CONTAINERS in transit to and from ports – particularly those carrying hi-tech items, alcohol and cigarettes – is rampant. But the syndicate bosses who spe- Lcialise in this lucrative organised crime live charmed lives. Cases rarely come to court and, when they do, it’s usually their gofers who wind up in the dock. Take the theft of more than 7 million British American Tobacco cigarettes and the heist of container number TEXU 4470296 from Spoornet’s bonded warehouse at Johannesburg’s City Deep. It took place more than nine years ago, yet the criminal trial was concluded only last month – more than six years and at least 15 postponements after it began in Johannesburg Magis- trates’ Court. Result? Token fines for two bit-players. The case raises some disturbing questions: n Are police in league with the syn- dicates? The lost police docket story is wearing thin. Investigating officer Ser- geant Palm of the Theft Unit claimed it disappeared while he was discussing the case with a magistrate. n Why have the exporter (BAT) and the transporter (Cross Country Contain- ers) failed to accept their responsibility? But only two containers out of three Why did both ignore strict rules govern- went to Durban. SCI’s local representa- ing the transportation of bonded exports? tive phoned Cross Country and was told n Will the small Portuguese trading there was “some sort of problem” with firm Sociedade de Serviços e Comércio Mr Big & Co the third, which they were sending to International (SCI) ever succeed in its Durban by road. On arrrival two days claims for compensation for the contain- later, SCI’s shipping agent reported er-load of cigarettes it paid for? With get away that its high quality German padlocks interest compounded over nine years, had been replaced by cheap Chinese the claim has grown to more than R9m. ones, and the seals had been tampered The saga starts in January 1997, with millions with. when SCI paid BAT (trading as United SCI ordered that the container be Tobacco Company) R696,342 for 2700 opened. Of the 899 master cases loaded, master cases of duty-free Life and Good in bonded 716 were missing. Luck cigarettes – each case containing SCI’s representative in South Africa, 10,000 cigarettes. They were driven Eric Monteiro, accompanied by BAT’s in three 40ft containers from BAT’s goods assistant export manager Anver Rah- factory in Industria by Cross Country man, went straight to City Deep. Cross Containers to City Deep. They were to Country’s export manageress, Fatima be railed to Durban and delivered to Malek, explained that the third contain- the vessel Kilimanjaro, destined for the er had been taken – on BAT’s instruc- Mozambique port of Nacala. tions – to the premises of Eagle Freight

16 noseweek July 2006 in Potchefstroom for “packing” and Fatima Malek was charged and returned the same day to City Deep, released on R15,000 bail. before going on to Durban by road. The report states that “Walley” SEE IN THE DARK Malek later produced a fax, suppos- was arrested the following day. “He Night vision monocular with edly signed by Anver Rahman, giving was accompanied by his lawyer and 5x magniﬁcation this instruction. Eagle Freight operates refused to say where the contents are. See perfectly in total darkness out of Durban and has no premises in Mr Walley was also taken to court and Ideal for: Potchefstroom. Rahman denied ever received bail for R30,000.” n Surveillance sending the fax, which police concluded But the container had not been driv- n Anti-poaching n Game viewing at night was a forgery. en to Potchefstroom. It had been taken, n Night boating (unit Investigators from three companies and the cigarettes offloaded, at the ﬂoats If dropped in water) licensed by SA Customs to operate mining village of Fochville, some 50km R3980 (including delivery) from City Deep – Marius Laas (Cross north-east of Potch! Only a few available Country), Jaco Nelson (Roadwing) and Evidence of syndicate involvement Henry Beukes (Conlog), all signed a appeared in an affidavit sworn by Road- Spytech: 072 856 8540 report dated 10 February 1997. This wing’s Isobel Louw. She says she went stated that on 30 January, the day to Kazerne police station that 30 Janu- after the theft was discovered, the trio, ary to take a statement from a man in accompanied by police, took the driver connection with container pilferage. of the container back to Potchefstroom. There she found Fatima Malek sit- The driver said he had “received an ting alone in a constable’s office. Malek INCLUDE instruction from the Cross Country con- started crying. “She told me over and trol room that the client will meet him over that she did not want to do it, but along the road to show him where his she was deeply in financial difficulty,” noseweek premises were.” reads Louw’s affidavit. “Her husband in your conference goody bag [email protected] Det Insp Jonker of the police’s Container Theft Unit tried to persuade Fatima Malek to turn state witness, Congatulations but she refused saying: “ They’ll kill me” The driver recounted how, when was out of work. She was R7000 behind he arrived, two Indian men took him on water and lights. The children she to lunch, leaving the container in the must support. care of his assistant. “According to the “I asked her who made her do this. assistant, about 10 labourers off-loaded She told me a Mohammed, she thinks about three-quarters of the contents at his surname was something with a Forresters Wine Pack Winners the premises,” says the report. “When ‘W’; Wyllis or Wolles. He offered her Mr T Payne, Parkhurst 2120; Mr JH Schoeman; the driver returned from lunch he gave R150,000 to remove the container from Welkom; Cpt G Fenn, Bergvlet 7945; Mr SA Parsons, a new seal to ‘the client’, who resealed the terminal. She also said they wanted Himeville 3256; Mrs N Nyembezi-Heita, Sandton 2146 the container. He then returned the her to take it out a second time [for the container to City Deep.” remaining cigarettes?], but she came to The report states that two people, her senses and refused. Adam Omar and Fatima Omar, were “She then stated that somebody else arrested at the Potchefstroom premises in Cross Country Containers helped BackGet relief from Pain?pain and learn “for receiving stolen goods”. these people before, and containers It continues: “The investigation were removed from the terminal like how to avoid it took us back to Johannesburg. Fatima this before. She also stated that the British-qualified Malek, the export manageress of Cross people from United Tobacco Company practitioner of Country, was questioned and she con- now plays innocent, but ‘he’ is part of Pilates fessed to being part of the scam. the deal.” Therapeutic Massage “According to Fatima Malek, she Louw states that “before I could Feldenkrais Method ® received the forged fax from Mr establish who ‘he’ was, Sergeant Palm of gentle exercise Mohammed Walley. She does not and Constable van Lingernvelde know where Mr Walley got the fax. entered the room and I moved away Barbara McCrea Fatima Malek was offered R150,000 from Fatima.” (021) 788 9626 or 083 745 7086 for the release of this container TEXU Concluding her affidavit, Louw said: Classes and individual sessions – phone to find out 4470296.” “When I looked at Fatima, I once again about Cape Town and Joburg dates

noseweek July 2006 17 realised how sad it is that a person Det Insp Jonker of the police’s (sub- any way responsible.” with her good reputation in the con- sequently disbanded) Container Theft In Corbin’s view, SCI is justified in tainer industry is used by syndicate Unit, to recreate the lost docket. Jonker claiming for the market value of the criminals to reach their selfish greedy tried to persuade Fatima Malek to turn stolen cigarettes ($322,290), plus inter- goals. I just hope that the SAPS will get state witness, but she refused saying: est over 3,441 days of $1,054,268 – a ‘Mohammed’ and all the others behind “They’ll kill me”. total of $1,376,558 which, at today’s him, the receivers of the stolen goods, Cross Country was insured by SA exchange rate, computes at more than the people that profit out of these types Eagle through SMS Insurance Bro- R9m. “I would say he’s got a good case. of crimes… Fatima was used when she kers, and a claim – No 60-MP/97 – was BAT should give him his money. They was at her most vulnerable.” made. SA Eagle’s group audit manager, didn’t deliver the goods to the ship – it’s Goods held for export in a bonded Joe Martins, now tells noseweek: “Cross as simple as that. Just because he paid warehouse may only be transported to a Country had cover for goods in transit in advance, at their insistence, doesn’t designated destination – in this case to up to R500,000, plus theft and hijack- alter their responsibility at all. the vessel Kilimanjaro in Durban. Any ing endorsements. But if an employee “BAT should have been totally deviation – to Potchefstroom, Fochville defrauds or steals from their company responsible for the export of those or wherever – is a breach of SARS regu- you need separate fidelity cover – and goods. They are the owners until they lations. this they did not have. We did not are actually on the vessel.” Moreover, although SCI had paid repudiate the claim; the insured never As for Cross Country Containers, for all 2700 cartons in advance, under proceeded with it.” owned by the Maersk shipping line these same regulations safe delivery to In August 1999 SCI issued a high until it was taken over in April this the ship remained the responsibility of court summons against Cross Country year by JSE-listed Grindrod Group, the exporter, BAT. for the market value of the stolen ciga- Corbin says: “When you’re exporting Initially three people were accused rettes. The writ amount was R1,188,786, bonded traffic it can only be handled by of the theft: Fatima Malek, Adam although Monteiro now says the figure bonded carriers from A to B. You can’t Omar from Fochville and the mys- should have been R1.4m. SCI’s attorney divert it out of the bonded warehouse at terious Mohammed Walley (ID No. was a Lebanese named Brian Lebos. City Deep, as Cross Country did.” 7405315241087). Monteiro says that in December 2000 If BAT’s suggestion that SCI bought But the case against Mohamed Aruff Lebos told him there was no hope in this the cigarettes “ex warehouse”, and Wally (finally, patient reader, that’s the case. “So I told him to drop it.” not for export, is true, why hadn’t the correct name spelling), a 32-year-old Imagine Monteiro’s surprise years tobacco giant paid excise duty of R1.1m businessman (ID No. 7405315241087) later when he discovered that Lebos at the time? (With penalties over the and director of several companies, with had not dropped the claim, as instruct- years, duty will have increased to some addresses in Lenasia and Benoni, was ed. In fact, in 2002 the attorney “set- R3.2m). The Chamber of Commerce withdrawn for “lack of evidence”. And tled” SCI’s claim with Cross Country for took up the matter with (noseweek’s Sergeant Palm had, of course, managed a paltry R75,000, without SCI’s knowl- old friend) Ivan Pillay at SARS. BAT to lose the docket! edge. And the money remained in his responded by wheeling in Pricewater- Says SCI’s local representative Mon- firm’s trust account. houseCoopers, who persuaded SARS to teiro: “For two years we exchanged In January this year, Lebos appeared go along with the “ex warehouse” false- correspondence with BAT and Cross at a disciplinary committee meeting of hood. And BAT handed over around Country, the exporter and the inland the Law Society of the Northern Prov- R500,000 in a negotiated settlement for transporter. BAT falsely claimed we inces, which recommended that the the late payment of excise duty! (It’s had bought the cigarettes ex warehouse attorney be charged with delaying the one of those famous Pillay settlements: and they were washing their hands of payment of trust money and that he crooks pay half the normal tax rate, no the whole thing. Cross Country also failed or neglected to give proper atten- penalties and no interest.) denied any responsibility. tion to the affairs of his client. The mat- Is Cross Country liable for the dishon- “But there are no ex warehouse sales ter is to be re-enrolled. esty of its manager, Fatima Malek? The in international trading! These were SCI refuses to accept the R75,000 or law says that a company is vicariously bonded export goods exempted from recognise the “settlement”. liable for the acts of its employees only if excise duty and the exporter, BAT, was With all these extraordinary goings they are acting “in the course and scope responsible for them until they reached on, the owners of SCI in Lisbon of their employment”. SCI obtained coun- the port of exit.” instructed Monteiro to get some inde- sel’s opinion from advocate Colin Munro, In July 1998, after SCI complained pendent advice. Monteiro turned to the who considered SCI had a case. There to Trade and Industry Minister Johannesburg Chamber of Commerce, was no way Malek could have diverted Alec Erwin and the then Safety where he has been assisted by its past the container were she not employed by and Security Minister, Sidney president, Patrick Corbin, a long-stand- the carrier, wrote Munro. “In clothing Mufamadi, the police ing expert on the intricacies of interna- her with the responsibility of protecting conducted an inter- tional trading. the containers, the carrier thereby creat- nal investigation. “What I found most astounding was ed the risk she may not be trustworthy, This resulted in Sgt Cross Country’s arrogant attitude,” says and divert goods.” Palm’s departure Corbin. “They were trying to bamboozle At the beginning of June, Malek was from the force – he’s and intimidate SCI into not pushing fined a paltry R60,000 for theft. Adam now said to be run- this case.” Omar, from the offloading point at ning a garden busi- Why doesn’t Cross Country claim on Fochville, was fined R75,000. ness in Pretoria. its insurance with SA Eagle? “Why not You can rely on the taxman and the It fell to the new indeed?” asks Corbin. “I don’t think department of justice to help make investigating officer, they want to admit that they were in crime pay.

18 noseweek July 2006 THEORY AND PRACTICE OF BACKSCRATCHING Judge Hlophe and friends: A profitable academic study

OTORIOUS CAPE JUDGE President John Mnguni Press/Bongani IMAGES24.co.za/City Picture: as Pentech’s VC in 1993, Figaji set him- Hlophe has, we are reliably self and his inner circle up to maximise informed, told the Minister of the profits to be made from his tenure. Justice that he has no intention He ensured that his close business asso- of resigning from the Bench. If ciates dominated the technikon’s coun- Nshe wants him to go, she will have to cil, which approves all large contracts persuade parliament to fire him. and major financial decisions. This It’s old news to noseweek readers that ensured that no-one disapproved of the Judge Hlophe and the Muslim finance institution being used as a vehicle for and investment group Oasis have a furthering Figaji and friends’ financial mutually beneficial relationship. But, interests, or questioned their suspect wait – there’s more to Judge Hlophe’s Judge John Hlophe financial decisions. relationship with Oasis and its remark- Oasis was not the only company Figaji able network of friends. developed a special relationship with; First, a quick recap: Hlophe heads he also got cosy with Mentor Healthcare the Umbilo Trust, which has a stake in Tech’s then vice chancellor, Marcus Bal- Planning, which was chosen as Pentech Oasis Asset Management; unbeknown intulo, to lobby for a R25-million Oasis staff’s medical aid consultant. While to the judicial authorities, Hlophe investment. But Cape Tech’s Council Mentor does not get paid for these advi- has since 2001 also been receiving (chairman: Judge Siraj Desai) rejected sory services, it receives substantial com- a R10,000 monthly “consulting fee” the proposal. mission for referring hundreds of medical from Oasis for providing “expert legal In 2000, Peninsula Technikon aid policies to companies such as Discov- advice”; (Latterly, he’s claimed the invested half its reserves – about R300- ery Health. Figaji was appointed chair- money is for expenses.) million – with Oasis, thereby becoming man of Mentor in early 2005 – perhaps Judge Siraj Desai suspects the fee Oasis’ single biggest customer. as a reward for his loyalty? might (at least partly) explain why the In February 2003 Hlophe became It has to be said: Figaji isn’t self- Judge President granted permission for Pentech chancellor. Very shortly there- ish when it comes to looking after his Oasis’s bosses, the Ebrahim brothers, to after, Oasis was appointed as one of the friends. Just ask his long-time business sue Desai for defamation. Judge Hlophe portfolio managers of the National Ter- associate Patrick Parring. Currently a and the Ebrahim brothers suspect, tiary Retirement Fund – to which all director of 40 companies, Parring has or so they tell everyone, that Desai is Pentech staff are required to subscribe his fingers in a lot of pies (including the noseweek’s source for all the dirt on them. – currently worth over R3.1-billion. Chapman’s Peak saga and the Big Bay But, while having the judge president While Hlophe’s support would surely scandal) and unabashedly brags that in your pocket might be handy, and a have been helpful, the deal is more like- his “popularity and credibility in the bit of sound legal advice is always wel- ly to have been facilitated by another Western Cape extends to some of South come, there was another, equally good, of the Ebrahim brothers’ influential Africa’s most senior political and busi- reason why Oasis should have wanted friends, Pentech’s former vice chancel- ness leaders”. to keep their favourite judge well-oiled: lor, Prof. Brian Figaji. Parring’s popularity has earned him Judge Hlophe was the chancellor of Figaji was a trustee of the retirement big dividends at Pentech. As a long- Peninsula Technikon, the Oasis Group’s fund at the time. (He also sat at the standing member of council, he scored single biggest client. helm of Pentech when it invested the at least three major Pentech contracts It transpires that Hlophe and the R300-million with Oasis.) (that we know of), in addition to using Ebrahim brothers have long had a And so, sadly, we must abandon tales the campus as a base for his Western shared (financial) interest in academia. of the judge to focus serious attention Cape Business Opportunities Forum Between attending sponsored functions on Figaji, whom readers will remem- (WECBOF). for judges, Hlophe is said to have done ber from nose58 as the beneficiary of Parring’s company Granbuild got the some moonlighting for the Ebrahim GrandWest Casino shares earmarked contract to build a new control room for brothers by “urging” tertiary education for the “disadvantaged”, and from Pentech’s security surveillance system institutions to invest with Oasis. nose77, where he and some of his Pen- – without a tender. The building even- The Durban Institute of Technology tech pals profited from the dubious tually cost double the original budget. is known to have responded negatively Chapman’s Peak toll road venture. When Pentech needed new electrified to Hlophe’s urging. At Cape Technikon These, and Figaji’s many other busi- perimeter fencing, Parring’s company he had only marginal success: he did, ness escapades, were anything but Nedsteel was one of three invited to apparently, succeed in recruiting Cape extra-curricular. After his appointment tender. When one of the other tender-

noseweek July 2006 19 ers put in the lowest price, Parring was It was apparently no problem for International Convention Centre. secretly advised to adjust his bid. Ned- Figaji’s cronies to abuse Pentech funds, No idler, Figaji spent his first retire- steel got the massive contract, which is but if you weren’t a member of the ment year consolidating the business now running way over budget and into inner circle such behaviour could lit- links he established in and outside the six digit figures. erally be the death of you, as former technikon during his reign. Along with In 2000, Holbert Technologies was director of finance Michael Clarke dis- Parring, Louw and Phuti Tsukudu (who chosen as the preferred supplier for covered. At a staff meeting in Novem- sat on the new merged council), he Pentech’s new high-tech surveillance ber 2001, Figaji announced (no formal established “BEE investment company” and access control system, worth a hearing had taken place) that Clarke Dormell, which then bought a 30% couple of million. Parring muscled in had “stolen” more than R1.1-million of stake in a company called Cape Lime in on the contract by persuading Holden Pentech’s funds. Nine days later, on the March 2005. to form a joint venture with Nedsteel, day of his disciplinary hearing, Clarke Mysteriously, two companies named called NTI Security Solutions. Things shot and killed himself. Figaji later Dormell became active on 11 February turned nasty when Nedsteel failed sued his widow for the money. 2005: Figaji and Co’s Dormell 428 and to pay its dues and then collected a Without blinking, Figaji announced another called Dormell 435 – headed R850,000 cheque from Pentech that that under no circumstances were by three of the main Oasis Directors. was supposed to go to Holden. A legal employees or any of their relations What’s up Doc? wrangle ensued that ended with Holden allowed to tender for Pentech contracts. Figaji has been heard to brag that his pulling out of the venture and Parring When the Pentech Employees’ Union 18 directorships (most accrued while he keeping NTI, along with the Pentech (PTEU) objected to the “continued lack was VC) earn him over R1.5-million a security contract. of transparency and culture of secrecy year - plus plenty more in business con- NTI now lacked experienced staff to in which business is conducted”, and nections. operate and maintain the highly spe- raised concerns about conflicts of inter- Some of his friends on council were cialised system, which consequentially ests “arising from members of Council not as ready to let go of the cash cow. deteriorated. Despite staff complaints, and technikon management being So they made sure that close allies the Figaji-led Council opted to stick engaged in business activities with each such as Parring and Louw were on the with Parring’s company and NTI now other”, Figaji responded by dragging the panel tasked with selecting a new VC. holds a maintenance contract for the PTEU’s executive committee to a disci- It was clearly predetermined that fel- system until 2008. plinary hearing on charges that they had low council member Lineo Tanga would Unbelievably, Pentech never had a “impaired the dignity of the institution”! be appointed, even though she was code of conduct to ensure that Council It was happy days for Figaji and one of the least qualified candidates members declare their outside business friends until 2003, when it was (more on this in next month’s issue). interests. It also has no tender guide- announced that Pentech and Cape Nevertheless, her loyalty to the old lines to prevent them from bidding for Technikon would be merged to form the Figaji crew on council obviously carried contracts. It was common knowledge Cape Peninsula University of Technol- weight and she was officially appointed that WECBOF, Granbuild, Nedsteel ogy (CPUT) in January 2005. CPUT’s new VC in February this year. and NTI are Parring’s companies, but At that time, Cape Tech had practi- (A month before the selection process questions about dodgy contracts and cally no funds in reserve, while Pentech began, Figaji and Tanga formed a com- the squandering of funds were never had about R350-million. Figaji’s crew pany together, named Sithaba Hotel publicly raised because Figaji had cre- was damned if they were going to let and Leisure.) ated a tight inner circle on council that outsiders get to spend “their” money. In keeping with Figaji tradition a looked after each other’s interests. So began the race to spend as much as “welcome” party was held for Tanga, Being a loyal member of the Figaji possible before the merger. costing the institution an estimated council clan also guaranteed lucrative More than R5-million is said to R500,000. Although it was poorly business links off-campus. An example have been spent on upgrading roads attended – most staff boycotted the of how inter-connected these Council on campus, while the IT centre was celebration – several VIP guests did members became over the years: Figaji revamped in another multi-million deal; pitch up, including Oasis director Adam and Parring have shared interests in R4-million was spent on a high-tech Ebrahim. six companies, while Figaji, Parring PVAX Siemens phone and internet Shortly after Tanga’s appointment, and their strong ally Rev.Lionel Louw system. (The Alcatel system it replaced another big party was held at the pricey (former Western Cape Premier Ebra- could have been upgraded for a mere Cape Town restaurant Pigalle – this him Rasool’s chief of staff) are involved R160,000.) time to “celebrate the life and achieve- in two more companies. Figaji and Figaji’s grand final gesture was to ments of Brian Figaji”. The big bash, Parring both sit on another board with demand a severance package that was costing “many thousands” according to Michael Thompson, who was on coun- double the norm. This was after he several guests, was paid for … by Oasis. cil when the multi-million rand Oasis repeatedly told Pentech staff that, due It was a jolly affair, with all Figaji’s investment was approved, and has to the merger, nobody would be get- old council chums mingling with his since become a director of Oasis Cres- ting severance packages. He is fondly Oasis friends. In a heartfelt speech, cent Property Fund Managers. Parring remembered by many as saying: “Why Parring had some special words of wis- and Norman Jacobs, another member of should we pay someone for leaving?” dom for the new VC, Ms Tanga: “Devel- the Pentech Council inner circle, are co- Despite vociferous protests from op a good relationship with Oasis.” We directors of yet another company, while staff unions, Figaji’s pals on council have no doubt that she will. Figaji has business connections with his approved his R2.3-million package in She might also wish to be reminded long-time supporter Patricia Gorvalla, August 2004. They then gave Figaji that Judge Desai allegedly described who, in turn, shared business interests the go-ahead to have a R1-million-plus the Oasis owners as “scum” and “a with Parring. “farewell” party at the Cape Town bunch of thugs”.

20 noseweek July 2006 noseweek July 2006 21 Carrot and schtick

A Massachusetts psychotherapist,

ATE ONE afternoon in June 2001, who spent his life overseas bank account. That partner, John W Worley sat reading his e- of course, would be richly rewarded. mail. He was 57 and burly, with advocating self- Mbote’s offer had the hallmarks of glasses, a fringe of salt-and- an advance-fee fraud, a swindle whose pepper hair, and a bushy grey knowledge, seemed victims are asked to provide money, Lbeard. A decorated Vietnam veteran information, or services in exchange and an ordained minister, he had a like the most unlikely for a share of a promised fortune. busy practice as a Christian psycho- Countless such e-mails, letters, and therapist in Groton, Massachusetts, person to fall for a faxes are sent every year, with a broad in a ground-floor office with walls variety of stories about how the money adorned with images of Jesus and scam, but the whiff of supposedly became available. It is framed military medals. His wife, often called a 419 scheme, after the Barbara, had been his high-school big bucks promised anti-fraud section of the criminal code sweetheart – he was president of his in Nigeria, where it flourishes. class, and she was the homecoming by a Nigerian e-mail queen – and they had four daughters and seven grandchildren, whose photos proved irresistible, surrounded Worley at his desk. Worley scrolled through his in-box writes Mitchell and opened an e-mail addressed to “CEO/Owner”. The writer said that Zuckoff his name was Captain Joshua Mbote, and he offered an awkwardly phrased proposition: “With regards to your trustworthiness and reliability, I decided to seek your assistance in transfer- ring some money out of South Africa into your country, for onward dispatch and investment.” Mbote explained that he had been chief of security for the Congolese President Laurent Kabila, who had secretly sent him to South Africa to buy weapons for a force of élite bodyguards. But Kabila had been assassinated before Mbote could complete the mission. “I quickly decided to stop all negotiations and divert the funds to my personal use, as it was a golden opportunity, and I could not return to my country due to my loyalty to the government of Laurent Kabila,” Mbote wrote. Now Mbote had US$55- m, in cash, and he needed a discreet partner with an

22 noseweek July 2006 (Last year, a Nigerian comic released A few minutes after receiving Mbote’s said that he couldn’t fund the opera- a song that taunted Westerners with entreaty, he replied, “I can help and tion. No problem, Mbote answered; the lyrics “I go chop your dollar. I go I am interested”. His only question “investors” would provide up to take your money and disappear. Four- was how Mbote had found him, and he $150,000 for airfare and other expens- one-nine is just a game. You are the seemed satisfied with the explanation: es needed to move the money to the loser and I am the winner.”) Worley, that the South African Department of US, while Worley would act as middle- who had spent his adult life advocat- Home Affairs had supplied his name. man and curator of the funds. ing self-knowledge and introspection, When Worley attributed this improb- As promised, in late August 2001, seemed particularly unlikely to be able event to God’s will, Mbote elabo- Worley received a cheque for $47,500, fooled. He had developed a psychologi- rated on the story to say that Worley’s purportedly from one such investor. cal profiling tool designed to reveal a name was one of 10 that he had been It was from an account belonging to person’s “unique needs, desires and given, and that it had been pulled from the Syms Corporation, the discount- probable behavioural responses.” He a hat after much prayer by someone clothing chain whose slogan is “An promised users of the test: “The indi- named Pastor Mark. (A more likely Educated Consumer Is Our Best

He cautioned the students about Satan, telling them, ‘He’s going to try to destroy you every inch of the way’ vidual’s understanding of self will possibility is that his e-mail address Customer”. Worley was wary. He called be greatly enhanced, increasing the was plucked from an Internet chain the Fleet Bank in Portland, Maine, potential for a fulfilled and balanced letter, which he received and passed where the cheque had been drawn. The life.” And Worley was vigilant against on, that promised a cash reward from bank told him it was an altered dupli- temptation. Two weeks before the Microsoft to anyone who forwarded cate of a cheque that Syms had paid to e-mail arrived, he had been the key- the letter to others.) In e-mails, phone the Maryland office of an international note speaker at the First Assembly calls, faxes, and letters during the luggage manufacturer. Christian Academy in Worcester, ensuing weeks, Mbote laid out the After the Syms cheque proved Massachusetts. He cautioned the stu- plan: If Worley would pay up-front false and Mbote failed to send a dents about Satan, telling them: “He’s costs, such as fees to a storage facility replacement, Worley told him their going to be trying to destroy you every where the cash was being kept, and partnership was over. A few days inch of the way.” possibly travel to South Africa to col- later, though, he began receiving Still, Worley, faced with an e-mail lect the money, he would receive 30%, e-mails from someone claiming to that would, according to federal or more than $16-m. be Mohammed Abacha, the eldest authorities, eventually lead him to join Worley told Mbote that he lived his surviving son of Nigeria’s late dictator a gang of Nigerian criminals seeking life with the “utmost integrity” and General Sani Abacha, who reputedly to defraud US banks, didn’t hesitate. didn’t want to jeopardise that. He also stole billions from the Nigerian

noseweek July 2006 23 treasury. Mohammed Abacha told right partner, and begged for patience: more and more distressed. The number Worley that Joshua Mbote had “I am a smart man and very cautious of correspondents was increasing – at been operating surreptitiously on and do not want anything to go wrong.” one point, he counted nine – and the the Abacha family’s behalf, but had He settled on the Bermuda-based Bank spelling of their names kept changing. bungled so badly that Abacha decided of Butterfield, and in late January He complained of receiving letters from to step forward. He told Worley that 2002, he told Mrs Abacha that he had “Maram Abacha”, “Mariam Abacha”, the story about buying weapons had spent $4,300 to open an account there. and “Mrs Maryam S Abacha”. “I would been a ruse to protect the Abacha “There will be no trail back to the US think that everyone would know how family and their money, which, he and no tax to be paid,” he wrote. to spell their own real name,” he wrote said, was actually hidden in Ghana. Worley’s partners soon persuaded testily. “Obviously, someone does Soon Worley was put in touch with him to wire more than $8,000 to retain not.” When he still seemed no closer someone claiming to be the general’s a Nigerian lawyer and “to cover the to receiving the payment he’d been widow, Maryam Abacha. In a torrent of bank fees and late fees” that supposed- promised, he made a bid for sympathy, phone calls and e-mails, she appealed ly were the last barriers to the trans- falsely telling his partners that he had to Worley. “I learned you wanted to fer. But, after more delays and grow- been given a diagnosis of cancer. That hear from me,” she wrote. “Here I ing doubts, Worley told them that he didn’t work, so he told them that he am. Help me.” In his e-mails, Worley would not travel abroad – the money, was abandoning the project: “To date,

She said that they needed $500,000 to bribe five Nigerian bank officials, who had the power to release the $45-m

they said, had been I have lost nearly $50,000 chasing a moved to Amsterdam rainbow with a pot of gold at the end of – to collect the cash. it. I cannot go any further. It will take They couldn’t change me two years to recover from this, and his mind, so they tried a I will probably be dead by then.” Mrs different approach. Mrs Abacha’s reassurances wrung $13,000 Abacha asked him for help more from Worley, but in April 2002, in claiming $45-m that she he swore he was through, writing, “I told him was hidden in an account of must stop this financial torment and the Federal Ministry of Aviation at the anguish and pray that God forgives me Central Bank of Nigeria. It was a text- for my pursuit of money, simply put, book 419 tactic. When Worley doubted greed.” Mbote, he disappeared; when Worley For five months, Worley didn’t cor- wouldn’t travel for one treasure, they respond with the Nigerians. Then, in seemed found another. He sent more money. September 2002, a fax arrived from invigorated by Under this new plan, Worley allowed someone calling herself Mercy Nduka, this new scenario; he his partners to file false documenta- who claimed to be a confidential sec- apparently believed that tion claiming that he was a private retary at the Central Bank of Nigeria. he was on the verge of becoming rich aviation contractor to whom the Nduka told Worley that the Aviation while rescuing a woman in distress. Nigerian government owed $45-m. At Ministry funds were still waiting for In late November 2001, Worley spent the end of February, Worley crossed him, and that she was secretly work- several thousand dollars on an attor- another line when a patient named ing with the Abacha family. She said ney who specialised in international Jennifer Morlock came to his home that they needed $500,000 to bribe tax planning. The attorney warned office for a counselling session. She five Nigerian bank officials who had him against the seeming opportunity, had barely arrived when he told her the power to release the $45-m; plus, as did Barbara Worley. She knew little he was engaged in a business venture she said, they needed another $85,000 about her husband’s “project”, as he with partners in Nigeria. Violating his to cover fees. Worley refused to send called it, but she didn’t like it. profession’s code of ethics, he asked to more money, so Nduka and her boss, Worley dismissed these warnings; borrow $15,000. Morlock went home, Usman Bello, said that they would bor- now that he had committed money to spoke with her husband, and agreed. row it from investors. Worley would the partnership, he had a vested inter- By noon, Worley was at her door to pass along the investors’ money and est. By the end of 2001, he was telling collect the money. The same day, he then receive the fortune on behalf of the Abachas that he had investigated went to a nearby liquor store with a the Abachas, with shares going to him, ways to ship the cash secretly and had Western Union postal outlet and wired Nduka, and Bello for their services. searched a half-dozen countries for a all $15,000 to Nigeria. He soon repaid Soon men who claimed to be inves- bank that would accept a huge deposit Morlock, with interest, by borrowing tors began calling Worley from New without alerting authorities. He reason his credit card. York and Washington, asking him to sured them that they had chosen the Meanwhile, Worley was growing provide credit references and request-

24 noseweek July 2006 ing that he put up collateral for the When Worley deposited it at a to be patient. She asked for loans they were considering making to branch of Citizens Bank near another $600,000 – the balance of him. He refused to offer collateral, but his home, it cleared; following Nduka’s Cartwright’s cashier’s cheque – to that was never the point. The inves- instructions, he wired the money to bribe the telex operators who would tors’ questions and demands made an account in a Swiss bank. execute the transfer. Worley hesi- him feel more secure, as though they In the meantime, the Nigerians tated, but soon sent that money, were truly weighing whether to lend had ensnared Marcia Cartwright, too. Finally, Nduka told him him money. In late November 2002, the wife of a Mississippi car what he longed to hear: “All is Worley received a cheque for $95,000, dealer. In October 2002, she set for the final release of your drawn on an account of the Robert had received a 419 e-mail from fund.” Plan Corporation, a Long Island-based a man saying he was desperate That day, the president of the insurance company. Without verify- to get his money out of Nigeria. Farmers & Merchants Bank ing it, as he had done with the Syms Two months later, Cartwright learned that the cheque Marcia cheque, he deposited it at a branch of received a cheque made out to Cartwright had deposited a Fleet Bank. In fact, the cheque was her for nearly $109,000, drawn on month earlier had been returned fraudulent, but a novice employee the account of a Texas advertis- as fraudulent. Bank officials at the insurance company approved ing firm, and deposited it at the called federal and state authori- Fleet’s payment inquiry. When the Farmers & Merchants Bank of ties, and Citizens Bank, where money appeared in Worley’s account, Booneville, Mississippi. It cleared, Worley had deposited Cartwright’s Nduka told him to wire $85,000 to a and, on orders from Nigeria, she cashier’s cheque, was also noti- bank in Latvia, which he did. He wired sent Worley a cashier’s cheque for fied. An investigator for Citizens, another $3,800 dollars when Bello said $106,000, keeping the remainder for a former police lieutenant named that he needed to buy a Rolex watch herself. He deposited the money in Michael Raymond, told Worley what to bribe a bank official. Although the his Citizens account on January 15 had happened and said that he was Robert Plan employee had approved 2003. The next day, he wired $100,000 investigating potentially fraudulent the cheque and Fleet had paid it, to the Swiss account. activity. Worley sent frantic e-mails Worley, according to federal law, was Worley told Nduka and Bello that and made repeated calls to Nigeria, responsible for repayment. About a he was certain they now had more begging for a replacement cheque. month later, the Nigerians sent Worley than enough to bribe the bankers Nduka answered with bad news: Bello a cheque for some $400,000 from a and cover other expenses. Nduka, had been attacked by robbers and Michigan marketing company. This ever polite, said that they were not was comatose. But, she wrote, “I have cheque was real, but it had been stolen quite there. She sympathised with reached an agreement with them for and altered to make Worley the payee. his frustration, and Worley promised your fund to be released as planned on NOSEWEEK IS RECRUITING Full-time book-keeper Well-organised, motivated and meticulous person n Enter on Pastel all financial transactions. required to oversee all financial and general n Reconcile and follow up debtors and creditors. administration aspects of our publishing business, based n Manage salaries, PAYE and VAT returns. in Rondebosch. Must have excellent knowledge of, n Provide regular reports. and at least three years’ experience with, Pastel plus Flexi-time / informal atmosphere working knowledge of Excel and Word. Salary: in the vicinity of R9000 a month Email application with CV and references to: Responsibilities: [email protected]. n Manage accounts, financial planning and budgets. n Monitor and report on cash flow, budget deviations. For further information call (021) 686 0570 Ad salesperson Intrepid ad salesperson with current experience and contacts required in Gauteng to market a special limited offer ad project in noseweek in return for a very special fee. Send relevant details to [email protected]

noseweek July 2006 25 Friday.” All she needed was $1,000 to Including credit-card interest, money- he knew an investigation was under bribe another telex operator. wiring fees, long-distance telephone way – this was evidence, he said, of Worley seemed on the verge of charges, and the tax lawyer’s bills, Worley’s gullibility. Mostly, Hoopes panicking. “If you are my friend, Worley’s losses may have been urged the jury to view Worley’s acts as then make it happen tomor- closer to $80,000. foolish, not criminal. Hoopes empha- row,” he pleaded. “Why are you The prosecutor, an Assistant US sised that Worley had lost heavily in badgering me with this $1,000? I Attorney named Nadine Pellegrini, the scam. “It’s not willful blindness,” have gone as far as I will go with urged the jury to reject sugges- Hoopes said. “It is blind trust.” this. I am desperate and have tions that Worley had simply been In addition to witness testimony and nothing else to say at this time. scammed. At best, she said, Worley lawyers’ arguments, the jury was given I am emotionally, spiritually, “got in over his head”. Pellegrini hundreds of e-mails between Worley and financially drained.” Nduka portrayed Worley as the puppeteer, and the Nigerians, which told a story answered humbly, calling herself not the puppet, and said that he of their own, about a man transformed “an ordinary woman” who strug- knowingly passed bad cheques, in by his pursuit of riches. Reading the gled on $400 a month. Worley the belief that he was entering into e-mails, in which Worley displays both responded that Nduka had a “mutually beneficial arrangement”. cunning and credulousness – some- “touched my heart”. He wired the She focused on Worley’s recognition times in the same message – it is clear $1,000 on 30 January 2003. at various points that he was dealing that the Nigerians were able to take The next day, Raymond told with liars, and said that he displayed advantage of his religious convictions, Worley that the other cheque “willful blindness” by ignoring the his stubbornness, and his desire to be he had deposited at Citizens, warning signs of their criminality and a hero to Mrs Abacha and to his fam- the cheque from Michigan for his own. Pellegrini said that Worley’s ily. Patiently and persistently, the $400,000, was also phoney. Worley claims of innocence were undermined Nigerians turned Worley’s scepticism

‘I am ashamed, and shamed, and an embarrassment to my family. Thoughts of suicide are filling my mind’

knew what that meant, and, accord- by consistent bad conduct – lying to his into suspension of disbelief, to the ing to Raymond, disclosed his suspi- wife, borrowing from a patient, plotting point where he seemed to worry that cion that the Robert Plan cheque was to avoid taxes, posing as an aviation they might not trust him. They made probably fake, too. When Worley got contractor, claiming to have cancer, Worley the perfect mark. off the phone with Raymond, he was and agreeing to bribe Nigerian bank The trial took six days, and the jury enraged. “I hate being taken advan- officials. She was unsparing during found Worley guilty on all counts. On tage of by you evil bastards,” he wrote her cross-examination. “So you don’t February 15, Worley, now 62, returned to Nduka. “This is all lies?” He went have any integrity either, do you, Dr to the federal courthouse to face sen- on: “Your day will come that you will Worley?” she asked. He answered, “No, tencing. US District Judge George be judged by God, and so will I. And I don’t.” O’Toole, Jr., sentenced Worley to two I am ashamed, and shamed, and an “Ladies and gentlemen,” she told the years in prison, plus restitution of embarrassment to my family, who are jury, “it’s clear John Worley under- nearly $600,000, and gave him five so precious and Godly people. What stands behaviour of people and moti- weeks to turn himself in. a terrible model of a Christian that I vation of people, and he could and he One morning a week later, I drove am. Thoughts of suicide are filling my can manipulate both behaviour and to the Worleys’ house. Barbara let me mind, and I am full of rage at you des- reaction… There is only one story here, in. The house was dark, and the picable people. I hate living right now, and that’s the story of John Worley’s hallways were filled with packing and I want to die. My whole life is fall- greed.” boxes: Worley was preparing ing apart, my family, my ministry, my Worley’s lawyer, a former prosecu- for prison, and Barbara was reputation and all that I have worked tor named Thomas Hoopes, cast him moving to a small house in a for all my life. Dear God, help me. I am as a childlike man who was tricked by nearby town. so frightened.” sophisticated con artists into a cheque- Barbara led the way In May 2005, Worley went on trial cashing scheme. Hoopes stressed that upstairs to a in the US District Court in Boston on Fleet and Citizens had approved pay- living room. charges of bank fraud, money laun- ment on the cheques, which, he said, dering, and possession of counterfeit reasonably led Worley to believe cheques. Worley’s overseas correspond- they were legitimate. He ents, whose real identities he never urged the jury to knew, disappeared, and were never focus on the located or charged. With them went final $1,000 more than $40,000 of Worley’s money that Worley and nearly $600,000 from the cheques. had sent after

26 noseweek July 2006 Worley entered. He seemed stunned Barbara demanded. “Would you put it by his misadventures of the past five in the bank to see if it cleared again?” years. “The communications that I “Yeah.” Private Apartments had with those people were so convinc- “John!” she said. ing that I really believed that they “I don’t know,” Worley said finally, TO LET were real, they were true,” he said. “I sounding defeated. “I have to have time would question them and they would to think about what I would do in that FULL FACILITIES • TV • SECURITY come back with a response that was situation.” adequate to cover my concerns each “My husband is naïve,” she explained LONDON £80 per day* and every time.” Despite everything, to me. “He trusts people.” between Park Lane and Grosvenor Square he insisted that he still believed he had An enduring trait of Nigerian letter NEW YORK $100 per day* been dealing with the real Maryam scammers – indeed, of most con art- Midtown/E63rd & Madison Avenue and Mohammed Abacha. “I think they ists – is their reluctance to walk away PARIS €100 per day* were legitimately trying to use me and from a mark before his resources are my resources to get their funds out of exhausted. On 5 February 2003, several 206 Rue de Rivoli on Tuileries Metro Station Nigeria into a safe place where they days after the cheques were revealed CELL 082 445 1804 or Tel/Fax 021 712 1712 could have access to them,” he said. as fraudulent, after Worley was under EMAIL [email protected] Worley wasn’t sure whom to blame for siege by investigators, after his bank *Costs apply for stays of 3 or more days. the bad cheques, though Nduka was account had been frozen, after he had Cost of 1 or 2 days extra 25%. suspect. “Somehow there was a buyoff, called his partners “evil bastards”, a payoff, or something that went on Worley received one more e-mail from there, and then it got switched to the Mercy Nduka. point where I was then dealing with “I am quite sympathetic about all your fraudsters,” he said. predicaments,” she wrote, “but the truth When I asked Worley what he wished is that we are at the final step and I am he had done differently, he didn’t not willing to let go, especially with all answer directly. Instead, he spoke of these amounts of money that you say about hoping that the Abachas would that you have to pay back.” She needed get back in touch with him. However, just one more thing from Worley and the before they could resume work on the millions would be theirs: another $3,000. multimillion-dollar transfer, he expect- “You have to trust somebody at times ed them to send the $600,000 he needs like this,” she wrote. “I am waiting your for restitution. response.” “What if they sent you a © The New Yorker. Reprinted with cheque?” permission.

noseweek July 2006 27 Country Life

Plett chukkas its wetlands away

belated environmental assessment to determine the level of rehabilitation required. Fischer has admitted that there have been “transgressions”, and he wants to

Picture: noseweek see non-compliances rectified in a “partic- ipative and transparent manner”. They include road construction in sensitive areas, storage of hazardous chemicals (herbicides and pesticides), construction of dams and infilling of a wetland. Says Pretoria-based Fischer: “Obviously it’s a sensitive issue. We are in the process of finalising terms of reference for a fairly comprehensive environmental impact assessment. We have some preliminary results but it’s not quite the time to make those public, so hang on before you run your story. Or run it at your peril.” [Thanks for the invitation. – Ed.] It was two or more years ago that Johannesburg-based Baxter decided to build a polo estate in the Bitou floodplain. Peter Wilson, who for 18 years was owner of Mallard River Lodge, a guest- house perched on a koppie overlooking High horses: Plettenberg Bay greenies are alarmed at the galloping destruction of its environment When millionaire Leo Baxter allegedly trashed the ILL MILLIONAIRE Leo Baxter be forced to remove tons of sand environment to build his polo field, was it a case of ‘wealth and topsoil that he trucked into a protected wetland area and arrogance’ as his detractors claimed or, in the words of Wto create a polo field? That’s the question being pondered by envi- an admirer, was he just being ‘very naughty’? ronmentalists at Plettenberg Bay, who are up in arms at the plethora of polo fields – 13, at the last count – now sur- polo estate without having done an envi- the wetland, is nostalgic about the area rounding the fashionable Western Cape ronmental impact assessment. – and bitter at Baxter’s “destruction” resort town. The Western Cape’s Department of it. Baxter, founder and chairman of of Environmental Affairs and “It’s a unique situation, where you MB Technologies Group, stands accused Development Planning tells noseweek: have two wetlands – a freshwater wet- of infilling the precious Bitou wetland “The department has issued a directive land and a saltwater wetland – joined to raise the ground level above the flood to Mr Baxter to cease activities and by a narrow wildlife corridor,” says line. He’s also accused of constructing an rehabilitate the impacted area.” Wilson. “All your wetland animals and illegal dam, erecting a wire mesh fence Baxter, 48, has responded by appoint- wader birds moved between the two that has blocked a vital wildlife corridor ing “independent” environmental con- wetlands, mainly at night. But Baxter and, finally, of building his Stonefield sultant Theo Fischer to undertake a erected a tall wire mesh fence that has

28 noseweek July 2006 blocked this corridor. When I asked the Environment Forum, was there to take man who was doing the fencing to lift incriminating photographs of the event. Veritas legal it 200mm so the creatures could get Declares Nieuwoudt: “He’s (Baxter) underneath, he told me to fuck off.” been playing polo on that estate, so it’s transcriptions Infilling the wetland, says Wilson, not a farm breeding polo ponies any Transcribers to Higher & Lower Courts in the has created a “green desert” of mani- more.” Western and Eastern Cape cured lawn grass that is the new polo Says Frootko: “I think the real field. “The area used to be amazingly story is of wealth and arrogance and Specialists in recording and transcribing of commissions, rich in bird life. What was so special disregard for a lot of things. These arbitrations, disciplinary hearings, were the birds of prey; there were sev- enormously wealthy guys buy up these interviews etc. eral species of hawks, forever hovering farms. They don’t need environmental Vast experience in preparation of over that area because it was full of impact assessments if they’re going appeal records to High Court and rats, mice and snakes. It was a whole to continue farming, and apparently Supreme Court of Appeal. thriving ecology. Baxter’s destroyed breeding horses is an agricultural activ- all of that. There’s nothing left – just a ity. It’s a loophole. Then they start lev- green desert.” elling fields, with all that entails, to the Just ring us on (021) 424 4424 or fax at (021) 424 4555 Henk Nieuwoudt, Nature degradation of the environment – and, Conservation’s manager at Plett, says suddenly, there’s a polo match. even though it’s agricultural land, “We’re also discussing what herbi- if you want to develop it into a polo cides and pesticides they’re using to estate you have to do an environmental make that grass grow. They wash into impact assessment. “You’re going to the waterway and affect the whole eco- use water; you’re going to have to level logical chain.” certain areas; you will put up buildings Bryan Denman, vice-chairman of in a floodplain. All these issues have to Birdlife Plettenberg Bay, who’s been be addressed.” doing waterbird counts in the Bitou On 10 April Baxter held two “inau- wetland since 1995, says that 10 years gural” polo matches at Stonefield. ago the area was rich in waders such as And Nick Frootko, a retired ear, nose red-chested and buff-spotted flufftails, and throat surgeon who’s a member greenshanks, marsh sandpipers and of the Plettenberg Bay Community three-banded plovers. No longer. For Steve du Toit of Wessa (Wildlife and Environment Society of SA), the water gulped by Plett’s polo fields is a major issue. Some 275-million m3 Dry rot: It’s not certain how long of rain fall on the area annually. The Plettenberg Bay’s wetland will remain wet human requirement alone is 339-mil- Marvellous Picture: noseweek Picture: Maids 086 111 5030

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noseweek July 2006 29 lion m3, so that’s a 64-million m3 short- It’s cumulative, impacting negatively on is a storm in a teacup. I haven’t filled in fall at present. And by 2025 the Gouritz the environment.” the wetland, as they allege. But maybe, water management area’s anticipated Leo Baxter does have at least one because you’ve got a little bit of money, requirement will be a massive 445-mil- admirer on the Bitou – his immedi- suddenly people start objecting. lion m3 yearly. ate neighbour, pensioner Mick Jones. “I had to spend literally millions of Nobody seems to know how much “Everybody’s going at poor Mr Baxter, rands removing dump sites, scrapped water a polo field requires. Estimates except me,” says Jones. “He’s been very cars and rehabilitating over-grazed point to at least 250,000 litres daily. naughty; it’s illegal to fill in land which ground, where cattle had trampled the That’s 3.3-million litres every day for is in a floodplain. He brought in an enor- wetland to a state of destruction. If I’ve the area’s 13 polo fields – a substantial mous amount of sand and stuff. I live done wrong, I need to remedy it. Where 1.2-million m3 a year. across the way and was horrified when I haven’t done wrong, I need to be able “Wetlands are endangered habitats, I saw what he was doing – but now that to show them and convince them. because there are so few left,” says Du it’s done I think it looks pretty nice. “My investment at Stonefield runs Toit. “Estuarine wetlands like the one at “Now they’re asking him to rehabili- into tens of millions. I’ve now got Stonefield also perform a very important tate that land. That’s one helluva job. an environmental consultant [Theo nursery function for marine species. If Presumably it means taking off the soil Fischer] making sure we conduct you change the level of the substrate that he put on. No polo field then. I’m ourselves in the appropriate manner. you’re going to destroy this habitat. sorry for him. In my opinion he hasn’t We’ve basically finished the environ- “Mr Baxter has raised the level of done an awful lot of damage.” mental impact assessment and have the substrate by about half a metre. Baxter is unrepentant. “I bought agri- dealt with the specific allegations about You’re talking thousands of tons that cultural property that had been com- infilling wetland, damming up rivers he’s dumped there – topsoil, sand, who pletely disused and mal-used, in order and all sorts of things which were really knows what.” to develop this polo estate,” he says. a lot of nonsense. Infilling causes changes in the quality “Almost immediately I had all sorts “If the truth be told, I think I bore and flow of wetland ground water, Du of environmental issues and for what- the brunt of what happened before, Toit explains. “Wetlands act as sponges; ever reason there was huge resistance in the development of Kurland Park they retain water during flood events against a polo estate. [owner Charles Cornwall] and Kurland and slowly release it during drier peri- “Simultaneously I went about trying [Clifford Elphick], where people did ods. If you infill, larger volumes of water to resurrect, to resuscitate, the wetland. seem to go ahead and do exactly as they will flow into the rivers during heavy And they claimed I had compromised the pleased in terms of damming up rivers. rains, causing unnecessary erosion. And environment! They said I had infilled the Charles Cornwall blew up half a moun- there’s less water available during drier wetland and all sorts of things. tain to make his polo fields. I think I periods for the river and wetland species. “If indeed the people under my con- became the scapegoat. “In my opinion significant damage trol had done this, I’d be the first one “The wetland at Stonefield has has been caused and may well continue to remedy it and make amends. There’s become dramatically reduced over a to be caused if he doesn’t take the top- no one who wants to protect the envi- period of 30 to 40 years. I’m going to soil out and rehabilitate it,” he says. ronment more than me. My objective is play my part in protecting it.” “The activities that Baxter has to protect the wetland and turn it into n It was Clifford Elphick, former conducted below the highwater mark something really special. I’ll make a chief executive of E Oppenheimer & – the filling in of the wetland and the significant contribution to make sure it Sons, who built Plett’s first polo field construction of a polo field – are illegal. is not compromised. some five years ago. Those who have Then there’s the construction of the “I’m going to demonstrate scientifical- followed include London-based asset- fence and the noise from helicopters. ly that in actual fact [the controversy] stripper Brian Myerson (Bitou House Polo); Zimbabwean businessman Mike Mouat (Redford Polo); Charles Cornwall, who created video game heroine Lara Croft and is now facing charges for his alleged involvement in Brett Kebble’s frauds (Kurland Park); Paul Main (Bateleur Polo) – who made at least part of his fortune as a col- laborator in Kebble’s frauds (see: “Who framed Roger?” in nose63); and Nicola Fitzgerald (Platinum Polo). The Western Cape’s Department of Environmental Affairs referred Cornwall’s activities at Kurland Park to the director of public prosecutions more than two years ago (nothing happened) and the department now says that the allegation that the millionaire blew up part of a mountain to level his land is “being investigated” by its law enforce- ment and compliance unit. See “The dorp that just can’t say no”: Page 34

30 noseweek July 2006 WebDreams Marike Roth

Hoaxes, lies and rumours

ILL GATES is sharing his fortune, oral sex tume party, discovered the tarp had come loose is a cure for breast cancer, someone is from his truck, releasing 12 helium-filled blow- out to steal your kidneys, Nokia is giv- up dolls. So he flung his arms up in frustration ing away free cellphones, beware of the – and just then the woman’s car passed by. B HIV-tainted blood in the ketchup dis- According to her husband, his wife imagined she penser … Who believes this stuff? had seen Jesus lifting people into heaven and A lot of people, evidently. couldn’t wait for her husband to stop the car. The most outrageous stories are spread daily Then there’s the Lovenstein Institute via the internet. Never before in the history of of Scranton, Pennsylvania, study, wherein humankind has the world had such an efficient George W Bush was found to have the lowest means of passing on rumours, hoaxes and down- IQ score (92) of the last 11 American presi- right lies. dents. The report stated “… his low ratings Nielsen/Netratings have estimated that there were due to his apparent difficulty to command are 450 million cyberspace surfers around the the English language in public statements, his world. Not all of them are termed “active” but limited use of vocabulary…, his lack of scholarly there are about 250 million people regularly achievements other than a basic MBA, and an surfing through cyberspace. Never before absence of any body of work which could be In the past, myths related to a place or group studied on an intellectual basis.” Okay, so I fell of people and spread by word of mouth. Now in the history for that one. that we can fly around the world in a matter of The late Joseph Campbell, noted mythology days and have instant mass communication via of humankind scholar, wrote in his book Hero with a Thousand the internet, the world has become the prover- Faces: “Myth is the secret opening through bial global village: a sort of collective conscious- has the world which the inexhaustible energies of the cosmos ness that reacts fast. pour into human manifestation....” Just hours after the first jet slammed into had such an Quite profound. But I reckon what he was the Twin Towers on 11 September 2001, emails really trying to say is that a culture can be claimed that Nostradamus predicted the event efficient means studied through its history and geography, but in 1654: nothing tells you more about a culture than its “In the City of God there will be a great thunder, of passing on mythology. We can discover what people aspired Two brothers torn apart by Chaos, while the for- to, what they feared, what they envied; in tress endures, the great leader will succumb, disinformation essence, who they really were. The third big war will begin when the big city is So what does the mythology of the internet burning.” tell us about our emerging worldwide society? Actually, it was written by college student What would Joseph Campbell say today about Neil Marshall as part of a critical analysis of warnings of killer crocs in the sewer system, Nostradamus. Ironically, his hypothesis was deadly diseases from unwashed coke cans, lead that his made-up verse could be interpreted in a in our lipstick, flesh-eating camel spiders and myriad different ways. dwarf-eating hippos? We’ve all had emails from well-meaning And did you know that the act of ogling friends, who have passed on warnings of bod- breasts makes men live longer? ies in rum barrels, kidney thieves and explod- What do these myths tell us about our sub- ing toilets. Then there’s the poor little dying conscious? What are the hidden meanings, and boy with a rare disease whose last wish was to what do they reveal about who we are today? set a world record for the most postcards ever I hope some investigator has the courage received … Sometimes we laugh, sometimes we to find out. I sure as hell don’t know what to cry, sometimes we hit the delete button. make of it. Some net lore is hilarious and worthy of n How good is your bullshit detector? Go to: passing on. Like the story about the Arkansas urbanlegends.about.com, a site with all the lat- woman who killed herself, in a mistaken rap- est and greatest internet hoaxes, urban legends ture, jumping from the sunroof of a car. It seems and netlore. Then under “most popular” click on a man, dressed in a toga and on his way to a cos- Test Your Urban Legends IQ.

noseweek July 2006 31 Law of the B and Hans Muhlberg

Curl up with a good bit of software

T’S NOT often that copyright disputes make it all the way up to the Supreme Court of Appeal. Which is just as well, because they can I be pretty tedious affairs. The recent case involving Brewer’s Marketing Intelligence makes interesting reading, though! People who have read this judgment will tell you that the facts were horribly technical and complicated. We don’t do technical and complicated, of course – we do simple. There’s a man called Chris Brewer. There’s another man called Anton Haupt. They’re brothers- in-law, although, by the time you’ve read this story you’ll probably feel that their family Christmas lunch must be a pretty tense affair. They were also business partners (yes, very When a silly, you’re quite right), and co-directors of a company called Brewer’s Almanac, an adver- off to visit him. Six months in the US is of tising agency which also disseminated infor- database course a very long time and, after he’d been mation to the advertising industry. There’s there for about that many months, Coetzee a third man, called Byron Coetzee. He’s a started getting restless. He contacted Brewer computer geek. It’s not clear if he’s anyone’s becomes to say he hadn’t heard from Haupt for some brother-in-law. time. Brewer responded in an e-mail, which Brewer’s Almanac briefed Coetzee to write a went something like this: “Hey Byron my computer progam to “interrogate and manipu- a literary old china, can I use your program to convert late” All Media Products Survey (AMPS) data AMPS data into my own database? I’ll get (perhaps one of the partners had a previous old Hank to do the technical stuff [Hank’s life in the secret police?). What’s AMPS you work a new character, and with Hank in SA and ask? It’s Big Brother-type information about Coetzee in the US you may be wondering what who’s reading, viewing and listening to what on earth is going on in this story]. I’ll pay – information which is apparently useful to you a royalty on sales. Don’t say a word to people in marketing or advertising. Coetzee Anton Haupt, but don’t worry, there’s nothing programmed away merrily and, in the process, underhand or devious about this. We really also created a database or two. The program should work together because there is room was given the mildly intriguing name Project for another player in the market – Anton is AMPS – by the former spook, we reckon. obviously doing exceptionally well, in fact he’s Haupt and Brewer parted ways (you never positively RICH – and you, yourself, would not saw that coming did you?) before Project be compromised.” Basically your classic “Why AMPS was completed. Coetzee’s relationship the %#@! didn’t I just phone?” type e-mail. with Brewer’s Almanac came to an end, but he The thick plottens! Coetzee was so enam- continued to develop the program for Haupt, oured of this plan that he signed an agreement in return for a promise of 20% of gross sales with Brewer’s company, Brewer’s Marketing of the program. Further component programs Intelligence (an oxymoron?). The company and databases were created along the way would develop the program, and Coetzee (hope we’re not getting too technical!). The would provide compiled data and generally be program was now given the grand title of Data very helpful. Brewer’s Marketing Intelligence Explorer – bravely going where no data has then employed our friend Hank to write the ever gone before. program, which became known as Brewer’s Coetzee moved to the USA. Why? Perhaps AMPS program. Hank frequently contacted he did, in fact, have a brother-in-law and went Coetzee for assistance, and Coetzee kindly

32 noseweek July 2006 sent him portions of the source code of Data Explorer, even though it was author of a computer program, on the the Data Explorer program. essentially an improvement on the other hand, is the person who exercises When Haupt found out about Project AMPS program. An improve- control over the making of the program. Brewer’s AMPS he sued for copyright ment or refinement of a copyrighted The making of the program had been infringement. All parties involved work is eligible for copyright if it is sub- controlled by Brewer’s Almanac before appear to have made a complete hash stantial and if it is original. the parting of the ways, but after that of things. Haupt lost. He therefore took A work must be original before it by Haupt. He had instructed Coetzee, the matter to the Supreme Court of enjoys copyright, but originality in every step of the way, even though he Appeal, Bloemfontein’s sole claim to copyright law does not mean creative. himself didn’t have the expertise to fame (apart from the Cheetahs, that is). It simply means that the work was not write the program. Copyright in Data He succeeded in his appeal. Although copied and involved the exercise of a Explorer therefore belonged to Haupt. the court didn’t really create any new substantial degree of skill, judgment In order for there to be an infringe- law, it did clarify a number of basic principles and applied them to a some- what convoluted set of facts. It held that: Don’t say a word to Anton Haupt, but don’t worry, There is a clear difference between a computer program and a database, although both are protected by copyright there’s nothing underhand or devious about this law. A computer program is specifically protected as such, whereas a database is protected as a “literary work”. Although or labour. The work done by Coetzee ment, there must be a substantial degree it may sound bizarre to call a database “clearly did involve skill, judgment and of copying and it is quality, not quantity, a literary work, the expression basi- labour. that counts. The evidence showed that cally means a written work – no literary The question of the authorship of a significant parts of the Data Explorer merit is required at all. work depends on the kind of work it program had been copied in the Brewer’s Project AMPS (the original and uncom- is. With a literary work, the author AMPS program. There had, therefore,” pleted program created by Brewer’s is the person who first makes it. The been infringement, and Coetzee had Almanac) enjoyed copyright as a com- databases had been created by Coetzee, assisted in this infringement. puter program, even though it wasn’t albeit computer assisted, and he was Brewer’s Marketing Intelligence, completed and didn’t work properly. therefore the author. Haupt, however, Brewer personally and Coetzee were all There was a separate copyright in had an implied licence to use them. The ordered to stop infringing the copyright.

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wonderful, lush gardens. The municipality irrigates its road island gardens so The dorp that enthusiastically that the streets are often shining wet. The dams can supply about 6-million m3 per year at what water boffins call a one- in-10-year assurance of supply to urban just can’t say no Oudtshoorn. This means that, for nine years out of 10, the town should have access to at least 6-million m3 of the stuff. For one year out of ten, there will be a shortfall. Water planners usually aim to provide sufficient water at a 1 in 50 year assurance of supply, reducing the likelihood of a shortfall to 1 in 50 years. Oudtshoorn’s current system can only supply 5.4-million m3 per year at the desirable 1-in-50-year-assurance-of-supply level. According to a report by consultants Ninham Shand (connected to the well-known construction/engineering company of the same name), Oudtshoorn currently draws 6.3 million m3 per year – almost a million m3 per year more than it “should”. This explains the more frequent water restrictions. One would think that the local council would halt further development until it implements permanent water saving measures, or increases supply. But they’re not – they want as much development to happen, as quickly as possible. One of the projects they’re backing is the Karoo N A WIDE, arid valley floor, between the Heritage Estate (slogan: “Come back to Swartberg and the Outeniquaberg, earth!”), a golf estate residential complex lies the not-quite-bustling main dorp (how original). of the Little Karoo, Oudtshoorn. A few years ago the Oudtshoorn Golf OMost famous for its innumerable Club, a typical small-town golf club, went highly-strung ostriches, the nearby Cango into partnership with BC Design and Kanu Caves, and that annual gathering of the In Oudtshoorn, Construction (Pty) Ltd. to redevelop the Volk, the Klein Karoo Nasionale Kunstefees, course. Kanu (the guys who built the famous it feels like the kind of place where things Fancourt golf estate) and BC have planned will never change much, or too fast. Kids it’s not just an upmarket residential estate around play in the street, tourists dwaal around, the existing golf course – and called it the and the crackle and thud of small arms fire the ostriches Karoo Heritage Estate. The development is from the army base gives a little frisson to financed by RMB Private Bank. many an immaculate sunset. that have their Although the greens of the golf course are, Little do Oudtshoorn’s residents know that and will be, irrigated with semi-purified their lives may soon be getting a lot worse. wastewater from the dorp’s sewerage plant, The dorp, like others in this part of the heads in the Ninham Shand has estimated that the world, is heading for a water crisis. Instead Estate’s accommodation – 500+ living units of taking steps to avoid that crisis, the local sand – will add 4.5% to Oudtshoorn’s already council is driving developments that will excessive water consumption. make water scarcer and thus more expensive In addition to the Karoo Heritage Estate, to users. other new developments are springing up Oudtshoorn has generally had access to a around town: hideous “security villages” that reliable supply of cheap, clean water, piped attract paranoid buyers who haven’t realised from two dams in the Swartberg (although that Oudtshoorn’s low crime rate obviates in recent years water restrictions have the need to live in a Fortress a la Jozi. The become more frequent). Many residents have council also wants 1,170 low-cost houses,

34 noseweek July 2006 NoseArk

and an expanded industrial area. streams run dry, devastating the local noises, never mind that the Karoo Ninham Shand reckons that, if the economy and wiping out wild species Heritage Estate is already contravening currently proposed developments are like fish and water-loving plants. To the Western Cape’s guidelines for completed, by 2010 Oudtshoorn will appease environmentalists and farmers golf and polo estates by promoting have to abstract 7.2 million m3 of water near Blossoms, it was agreed that the development in advance of a year to supply its urban needs – water would be abstracted from the approval being granted. (None of their almost a million more than the current research holes for about five years so advertising tells potential buyers that over-abstraction. In other words, if the that potential impacts could be properly the go-ahead has not yet been given.) developments go ahead, Oudtshoorn studied before wide-bore production Marketers are telling buyers to expect must find lots of extra water, or holes are considered. But as the water transfer in mid or late 2006. condemn its citizens to enduring more- position becomes more desperate, The only major obstacle to Dead- or-less constant water shortages. council officials are railroading through P approving the estate has been a Council thinks that unbridled plans to increase the size of one of the letter of opposition from ecologists building can go ahead because they research holes to ‘production diameter’, at CapeNature who seem to be the have plans around the water issue. unilaterally reducing the study period only people clued up on Oudtshoorn’s Proposals include making residents use to one year, so that they can start perilous water position. They are now less via a Water Demand Management pumping out vast amounts of water under pressure to tone down their Plan, fixing leaky pipes, buying – fast. disapproval. water rights from farmers, and, most They don’t want a proper impact The Karoo Heritage Estate’s controversially, pumping a helluva lot study, which takes years. They want marketing guy (Golf Club ex-chairman from a planned ultra-deep borehole the Blossoms water at all costs, stuff Jan Celliers), perhaps sensing trouble field at a place called Blossoms south of the farmers and the environment. The on the horizon, has quietly started the town. officials find big-budget projects more saying that estate houses will not, Fixing pipes costs millions. glamorous (and more lucrative?). So do despite what is said in their written Implementing a demand reduction plan their more overtly political colleagues, materials, be using municipal water. costs millions more. (The chronically disorganised council appointed a consultant last year to draw a plan up, but they haven’t yet given him a They’re stupid to use this for watering work schedule, so it’s likely to be years before even just the plan sees the light gardens and flushing toilets – they could make of day.) Buying water rights from “millions selling it as bottled mineral water farmers is all well and good, but these rights are hugely over-subscribed in the Oudtshoorn area – farmers have rights to far more water than is in its the elected councillors. “Blossoms is They will, he now says, install a water- rivers and dams. A right to water is no like the Angel Gabriel coming to save purification system so the sewage-plant guarantee that you’ll actually get it, them”, says a NoseArk source. water they currently get for the greens ” especially in dry years. At a recent PR function arranged can be used for human consumption. The ultra-deep boreholes at Blossoms by the golf estate project manager, an “What nonsense!” a current Golf Club are still in pilot phase. Two narrow- out-of-towner called Sarel Coetzee, the member told NoseArk. “Jan proposed diameter research holes were drilled deputy mayor of Oudtshoorn, James some expensive Swedish system that in 2005 at a cost of millions, and these Swigelaar, sang the estate’s praises: we could never afford to operate. It’ll are currently spewing out abnormally “The Oudtshoorn municipality very never be installed. The estate will use high quality water. (“They’re stupid much wants the development at the municipal water.” to use this for watering gardens golf estate to be commenced as soon Celliers also says that there were and flushing toilets – they could as possible”. Long-serving councillor no objections to the project in the make tens of millions selling it as Angeline LeKay warned all present not public participation process. Amazing. bottled mineral water”, a hydrologist to “sour” the good relationship between If the developments go ahead, it’s declared when viewing the quality the council and the developers. Oudtshoorn’s people that will pay test results.) The cost of developing a The Western Cape’s Department more for less water and see their full production borehole system and a of Environmental Affairs and environment deteriorate, while the pipeline to Oudtshoorn will probably be Development Planning (“Dead-P” in developers profit. While rich golf estate somewhere between R30 million and Acronymish) could stop the golf estate. investors will be “coming back to R40 million. There are also additional, It still needs to grant a positive Record earth”, the average local will be coming non-financial, factors to consider. of Decision to allow it to go ahead. down to earth with a bang. If you suck too much water too fast At the time of writing, a decision had Perhaps people do get the govern- out of a deep borehole you’re likely to not yet been made, but NoseArk’s ment they deserve. dry up other shallower boreholes and informants in Dead-P assure us that See “Plett chukkas away springs in the area. Farm pumps and the top brass are making approving its Wetlands”: Page 28

noseweek July 2006 35 36 noseweek July 2006 Wining Tim James

Three-Penis Wine

HROWING STUFF into wine to make it more the legacy of Vin Mariani. An American copy tasty, or more interesting, has a long his- was concocted in Atlanta in the 1880s, called T tory. The ancient Greeks and Romans French Wine Coca. But when prohibition pres- added sea-water or, on occasion, honey, or sures grew, John S Pemberton was forced to herbs and other “botanicals” to produce a replace the wine component with distilled fruit sort of vermouth. The Chinese, who seem oils in his “valuable brain tonic and … cure for traditionally to delight in ripping things off all nervous afflictions”. Such was the disrepu- or out of animals for dubious purposes, still table birth of what became Coca-Cola, which produce variations of snake-infused wine and apparently included coca until around 1903. “three-penis wine”. Such exotic additives make pulping some The trio of unwilling contributors to the latter greenpepper into your sauvignon blanc seem potion have customarily been the seal, the dog pretty dull (as done by those two naughty and the deer. As species, they no doubt sighed KWV winemakers, and cleverer ones who with relief when Viagra came along, but sighed weren’t caught). Nowadays, in what is, I trust, too soon – a number of traditional chaps out our largely law-abiding industry, I suspect East still insist on the good old ways. the most popular illegal additive is even more For a short time in Singapore, however, a innocuous. In our cynical age, it’s less a ques- crucial component of Viagra became a popular In our cynical tion of miraculously turning water into wine, wine additive, before the dour health ministry than of putting water into wine. clamped down. Sadly, there’s been an internet Dilution is not (well, not always) done to purge, and I can no longer find the splendid age it’s less a stretch the wine. Rather, the aim is to mitigate and hope-giving ad I came across half a dec- the soaring alcohol levels that accompany fash- ade back while researching an article on wine question of ionable ultra-ripe fruit flavours and richness. additives. It informed me that Viagra Tonic Riper grapes mean more sugar, which means Wine, “which had been abstracted from the miraculously more alcohol. One possible result is “stuck treasure-house of traditional Chinese medicine fermentation”, when the rising alcohol inhibits and pharmacology, has properly met the man’s turning further conversion of sugar, and the yeasts need for a overloaded wrok and high quality turn up their myriad little toes and leave the of pursuit in life, giving them more confidence water into wine sweeter than most wine-lovers want it. and price” [sic]. The same producer offered If you’re a clever wine-maker, the wine can be other means to deal with an overloaded wrok, in balance despite big alcohols. But many find including their version of Three-Penis Wine, wine than of these wines hard to drink, especially when a “brewed with pure grains, mixed with the pre- refreshing accompaniment to food is wanted. cious Chinese medical materials as deerhorn putting water Adding water to lower the alcohol level, blood, deer penis, bull penis, dog penis, lycium especially during fermentation, can be an & ect. through scientific formula and advanced into wine attractive option – though not for ambitious process”. winemakers who don’t like too much manipu- For some, on the other hand, things go lation. But the process has already become better with cocaine. For all I know, it has legal (with some notional limits) in California, the same effect as Three-Penis Wine and where the Americans have developed euphe- certainly in the latter half of the 19th century misms like “breaking back” and “rehydration”. there was a big buzz for Vin Mariani à la Perhaps, perversely, dilution can have the Coca du Perou: a mixture of Bordeaux wine same net effect as more convincing aphrodisiacs and coca-leaf extract, developed by a Corsican like deer penis. For alcohol’s effect on (male) chemist fascinated by coca, and enthusiasti- lust is pretty equivocal, as the Porter in Mac- cally endorsed by such diverse members of beth pointed out: “Lechery, sir, it provokes and the establishment as Pope Leo XIII, Buffalo unprovokes; it provokes the desire, but it takes Bill, Queen Victoria and Louis Blériot – who away the performance.” But properly managed was swigging it as he adventurously fluttered vineyards and wineries, and less devotion to across the Channel. over-ripe fruit, are preferable ways to satisfac- Government crackdowns put a halt to this tion at table and in bed than any amount of sort of adulteration, but it’s worth noting dilution – sorry, rehydration.

noseweek July 2006 37 Last word Harold Strachan spits it

Scottish Railways, expertly at work in the workshops of the Glasgow Terminus on the great steam locomotives of the day, taking note as he goes of the new electric technol- That’ll be the day ogy of the German railways, deducing it possible to attach the belt drive of his capstan lathe to a small generator and lead certain wires therefrom to where it’s quiet outside, and there drive a small electric motor with a EAR MR NOSE, compressor attached to the family pipes while There are those spreadeagled on a workbench like the family pet on a vet’s operating table. He nails who opine, nay down the bag with tapes to the bench, ordain, that Captain ties the drones to an overhead beam Hornblower is the with string and clamps the chanter in Dmodel of excellence for all fic- a vise so he can play it like a piano. tion, and that Buddy Holly He sings: was the greatest musician of the 20th century because O-o-och he was the first to play the Wullie’s waife was dour an’ dun, electric guitar. And here was Tinkler Maidgie was her mither, I thinking Gabriel Garcia Sic a waife as Wullie had, I wudna gie a button f’r her Marquez was a bit of all right and Sir Edward Elgar had a certain majesty And I must say I find this something of an about him, though he wasn’t the first to play advance on the That’ll be the Day theme, as the electric violincello. Well it’s quot homines lyrics go. Also the music has something jaunty tot sententiae in the matter of literature, I to it, such as might cause one to spring about suppose. (However many men, so many opin- ‘twixt crossed swords at risk of injury to the ions.) But I refute outright the chronological Additional to toes, and to join in the song. claim, because my father was the first to play That’s not the end of the story of Firsts, the electric bagpipes in 1902. the claim, on though. Later he was able to fix metal stops Buddy Holly had this electrical meister- on levers to the holes along the pipe, as on stück called That’ll be the Day, the lyric of my late father’s a clarinet, and dispense altogether with the which went like this: bag and the drones, and with a series of such behalf, to being pipes conjoined vertically in a cabinet with Uuuh double-manual harpsichord-type keyboards, That’ll be the day, gechunkachunkachunk the greatest to constitute what was in fact the first electric That’ll be the day, gechunkachunkachunk organ, the patent for which was purchased by That’ll be the day, gechunkachunkachunk a certain Walter Hammond, who produced the Uuuh that’ll be the dayhayhay when I die musician of the Hammond Organ of the 1940s, as favoured Uuuh by a certain Ethel Smith who played on it a That’ll be the day, ge…(etc for 3.5 mins) 20th century, melody titled Tico Tico about a cuckoo in a clock, which was top of the popularity ratings Now it is possible to imagine Sir Edward I can also lay of 1942 (possibly 1943). retiring to agricultural life upon hearing such And now, additional to the claim, on my late advanced composition in the later 20th cen- claim on behalf father’s behalf, to being the greatest musician tury, and Igor Stravinsky returning to the of the 20th century, I can also lay claim on Music of Social Purpose in the Soviet Union, of my cousin’s behalf of my cousin’s grandson in Australia to and among the guitarists Andres Segovia being the greatest of the 21st. You see, he is falling into clinical depression since he’d only the first to play the electric digeridoo, a tech- got as far as playing J S Bach on the guitar, grandson in nology achieved by fixing a hair-dryer to the which is about as advanced as Chopsticks on blowing end with a flat piece of inner tube in the pianoforte, and Julian Bream dying of Australia to between, with a slit in it like human lips, and dismay, which I believe he did. I have heard controlling the volume of air passing through that Eric Clapton got stoned unrecognisable being the there with a foot-pedal type rheostat as on a on hearing the above and tanked up with liq- sewing machine, thus varying the traditional uor and squirted full of every drowsy syrup greatest timbre of the instrument whilst his true lips known unto science and art and set forth are free to sing down at the Seednee ferryboat to drive his car into the Hudson River with of the 21st harbour there: every musical instrument he owned on board, being saved from ignominious death only by Aaar an oak tree which he happened not to notice The sun shoines broight in Woolloomooloo en route. Mick Jagger confirms it was this The sun shoines broight in Woolloomooloo meisterstück that gave him the wrinkles. The sun shoines broight in Woolloomooloo So here’s me father in 1902, then, employed An’ Oi’ll be sewfing in the wives in a minute or two as metal turner by the London, Midland and Aaar The sun shoines broight…(etc for 3,5 mins)

38 noseweek July 2006 PAYMENT & TERMS FOR SMALLS 4-Ball + tours in Western Cape in luxury M/ Applegrange Store Magoebaskloof/Haenerts- Benz Vito. Call Ian on 082 900 9911. burg. Visit Stuart and Linda Miller’s exciting Deadline for smalls is the 1st of the month prior to publication. new local craft shop. Call 082 575 5738. Smalls ads are prepaid at R100 for up to 15 words, PROPERTY TO BUY, SELL OR RENT LEGAL & FINANCIAL SERVICES thereafter R10 per word. KZN For all your property needs in Hillcrest, Boxed ads are R150 per column cm (min 3cm in depth). Kloof, Assagay, 1000 Hills, Kwazulu-Natal? Payment by cheque should be made to Chaucer Professional, independent advice on invest- Delaine Cools on 083 949 2837 or (031) 765 3833 Publications, PO Box 44538, Claremont 7735. ments, medical aid or insurance? Call Henry Payment by direct transfer should be made to Chaucer Warmwaterberge 76 ha getaway between Smith on (021) 683 5454. 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