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Your favourite magazine is now ISSUE 200 • JUNE 2016 available on your iPad and PC A most unsaintly president

Page 8 FEATURES 12 Jansen prophesies academic ruination Within ten years, academics and middle class 4 Letters students will desert the sinking ship

5 Editorial 14 The contested Midas touch 6 Bits & bites Bell rings for round six in fight between property developer Barry Sneech and ex-partner Rui Nobre AVAILABLE 38 Smalls 18 Iqbal at war ON YOUR As Guptas advance from the east and Alide from TABLET the west Survé’s claims of victory are premature COLUMNS 20 Pondo game of thrones 34 Books Rule by queen said to be undermining male authority, resulting in botched circumcisions Download your 35 Down & Out 22 White Zulu, big black market digital edition today Muti is a R6bn industry and SA imports 300,000 both single issues and 36 Letter from goats a year for ceremonial purposes Umjindi subscriptions available 37 Last Word 27 Please call me maybe It takes investors with deep pockets to PLUS never miss a copy – champion the rights of the small guy with back issues available to 29 NCIS South Africa style download and store DNA testing is not a magical cure-all for the problems of crime detection DOWNLOAD YOUR DIGITAL EDITION AT 30 Foiled again Those roasted vegetables cooked in foil may www.noseweek.co.za not be as good as they appear or % 021 686 0570 32 Maputo’s massive fraud Donors cancel funding as corrupt defence deals take Mozambique into bankruptcy

NOSEWEEK June 2016 3 Letters

Why flay your best writer? dishonest nor moneygrubbing – and I be noticed”. You seem wholly under- have no reason to believe otherwise – informed and your lazy thinking on this strikes me as the only decent thing to do, is disappointing. You are a white man SHAME ON YOU, MR EDITOR, FOR YOUR cringing apology for Jack Lundin’s without detracting from my generally and do not understand the long history jokey (and so true) quip at the heart- negative impression of most members of of naked protest by black people. less money-grubbing ways of banks and that profession. I would expect noth- The Trans Collective put out a long lawyers (Letters, nose199), following ing different from Lundin. Flaying my and detailed statement on the method, Lundin’s fascinating account of the epic writer? Humbug! – Ed. reasons and outcomes of the protest duel between Nedbank and law firm Puddin Findlay & Niemeyer (nose198). Wake up to the world, SA via Twitter Over the years you yourself have Not to be noticed? Who are you kidding? THANK YOU FOR PUBLISHING “GOOGLE IS made far ruder assessments of these The exhibitionism all but obscured the watching you” (nose199). The article is “sub-species” (ie “Standard Wank” as true reason for protest: the macho-mi- illuminating, although I fear few South you repeatedly refer to that fine bank- sogynist ethic of the FMF/RMF crowd. Africans will have bothered to read it. ing house). Yet when Lundin follows I admit, it’s the first I hear of “a history What is happening in world politics your lead and a self-proclaimed “honest of naked protest by black people”. In my is even more frightening than what is and hard-working” lawyer, one Herman lifetime yours was the first. – Ed. happening here, where no-one I know Smith of Durbanville, complains, you even seems to know who Assange and flay your writer for his “unnecessarily Strachan wants a class war? Snowden are. The South African public crude” introductory paragraph and ten- are as parochial as the Americans. Their der your apology to Smith and all honest IN NOSE198 HAROLD STRACHAN WRITES THAT ignorance encourages our administra- attorneys. Bah. Humbug! it is time for the redistribution of wealth tion to ignore public outcry against Mr Welz, you are a pathetic shadow in South Africa. He wants a class war. wrongdoing and carry on regardless. of your former self. Lundin is the only As a communist he probably means a What affects others in the global com- writer worth following in Noseweek. revolution by which the poor take away munity will likely ultimately affect us. His wide-ranging subject matter, his all the assets held by the wealthy and meticulous research, combined with a Lin James distribute them amongst themselves. deliciously sardonic sense of humour Cape Town Would this work? Look at Germany: and irony, make for compulsive read- I fear you are probably right about what on one side the prosperous and free ing. You should treasure your stars, not interests the general public in South West; on the other, the communist East condemn them. And you wouldn’t even Africa. I do, however, remain confident which had to erect walls to prevent their allow Lundin to respond! that a significant number of regular people escaping and who were subjected C Pringle Noseweek readers are, like yourself, to the Stasi, a typical brutal police Chiang Mai, Thailand interested and wish to keep up with de- force. What about North and South Jack Lundin could hardly have written velopments in the outside world. – Ed. Korea? Which system works for the best a better testimonial for himself. I am interests of all its people? What of the pleased you share my long-standing ap- Bare-faced ignorance millions killed in Russia and China to preciation for his writing and reporting enforce the failed communist system? It TRANS AND NON-BINARY PEOPLE USING THEIR skills. As editor I take joint responsibility is surprising that Strachan and ilk can- bodies to protest (UCT circus, nose199) for everything I publish. Tendering an not understand the lessons of history. is about more than you are wanting apology to an attorney (and a Noseweek OD Hart to sexualise. Nude protests are not “to reader) who protests he is neither By email

4 C Editorial Editor Martin Welz [email protected] Special Correspondent Jack Lundin Designer Tony Pinchuck Winners and losers Consultant Len Ashton Sub-editor HE LOSING PARTY IN A CIVIL ACTION IN may well become the moral directives of Fiona Harrison South Africa’s courts is as a general tomorrow. As the Constitutional Court said Contributors rule also required to pay its oppo- in S v Mamabolo, the open market-place of Len Ashton, Jonathan Erasmus, nents’ legal costs. Seen in the light of ideas is all the more important to us in this Todd Gillespie, Ed Herbst, David Klatzow, Bheki Mashile, Greg Penfold, the shatteringly high cost of litiga- country because our democracy is not yet Sue Segar, Barry Sergeant, tionT today, “justice for all” and “all citizens firmly established and must feel its way. For Harold Strachan, Anne Susskind are equal before the law” are old-fashioned that reason civil society activists should not Cartoon myths that, despite being enthusiastically be discouraged from pursuing constitutional Gus Ferguson, Dr Jack, Stacey Stent promoted by a self-serving legal profession, claims for fear of being mulcted in costs. are by now believed by absolutely no-one. “Although the FMF’s constitutional argu- Accounts Faced with the risk of having to pay not ment misses the mark […and] might not Nicci van Doesburgh [email protected] only your own lawyers but also the (invaria- have yielded what the FMF asked for, by bly still more numerous and costly) lawyers compelling the debate in the way it did, the Subscriptions application has usefully demarcated the Maud Petersen hired by your opponent, only the govern- [email protected] ment, politicians, the insane in search of parameters of power and administrative martyrdom or the extraordinarily wealthy justice in the legislative scheme governing Advertising sales executive Godfrey Lancellas would risk briefing lawyers to argue an collective bargaining at sectoral level.” [email protected] uncertain case in court on a matter of prin- For those reasons, despite its lack of suc- cess in the application, the FMF was not Advertising ciple, in the hope of breaking new legal or 021 686 0570 constitutional ground. required to pay its opponents’ costs. [email protected] On May 4, at the conclusion of his judg- ment in just such an uncertain case (the N PAGE 12 WE REPORT ON WHAT THE All material in this issue is copyright, and Free Market Foundation [FMF] vs the Min- celebrated vice-chancellor of Free State belongs to Chaucer Publications (Pty) Ltd, unless ister of Labour, various bargaining councils University, Jonathan Jansen, has to otherwise indicated. No part of the material O and trade unions) Judge J R Murphy of the say about the state of our universities and may be quoted, photocopied, reproduced or be stored by any electronic system without North Gauteng High Court articulated why, the prognosis for their future. Asked where prior written permission. Disclaimer: While in some cases, the general rule should not he gets the strength and humour to have every reasonable effort is taken to ensure the apply, such as when the losing party is a carried on doing what he does for so long, he accuracy and soundness of the contents of this publication, neither the authors nor the publisher civil society organisation that has argued a replied: “The incredible support of students, will bear any responsibility for the consequences case in good faith, thereby advancing debate staff and communities around the univer- of any actions based on information contained. on a legal issue of public importance. sity, at home and abroad. Truly amazing, the Printed and Published by Chaucer Publications In his words: “While the Free Market breadth of support for what we do.” But that (Pty) Ltd. Foundation’s application has been shown in was clearly not enough to stop him – after a number of respects to be fundamentally the past year of turmoil on all our campuses misconceived, I have no doubt that it was – from being the first of the vice-chancellors motivated by the best of intentions. Our to leave for greener pastures. I suspect country prides itself on the promotion of a it has a lot to do with a feeling of great strong civil society. Although there will be disappointment, or what he referred to as a SUBSCRIPTION RATES many opposed ideologically to the classic broken heart. Print liberal and free market agenda advanced by Who can fail to understand that? the FMF, there should be no quibble with its SA only R374 activism on behalf of small business and the EE OUR REPORTS ON THE SORRY STATE OF Neighbouring states (airmail) R546 unemployed. The most intractable problem democracy in Angola, (page 8) and Mo- Europe, Americas and Australasia R673 facing our country is the persistently high zambique, (page 32), then take a look at Internet edition S level of unemployment and its attendant what Gupta, Zuma & Sons (Pty) Ltd are up 1 year R298 negative social consequences.” to. It does rather look as if they are desper- Combined How to solve it? “Many will argue that we ate to keep up with the neighbours. The Print+Internet (SA only) R474 need to think outside the box and cannot expectation that the masses will again vote To subscribe simply continue with business as usual. for them, is a sad reflection on the media’s By post: Send cheque with name, “The FMF is intent upon challenging the failure to properly inform the people. But address and phone no. to: noseweek, prevailing dogma. It does so as a morally then, if all that remains to be decided is PO Box 44538, Claremont 7735. responsible citizen whose opinion, if not whether it is to be Iqbal Survé or the Gupta Via Internet (pay by credit card): heeded, deserves at least to be heard. We brothers who will control the mainstream www.noseweek.co.za need not look back far into our history to media (see page 18), what more’s to be said? Email [email protected] recall that the censured opinions of today The Editor Further information Call (021)5N OSEWEEK 686 0570; June 2016 fax 021 686 0573 or 5 email [email protected] Bits and bites

Many countries are already imple- menting projects that aim to realise Transforming the way the them. In Rio de Janeiro, for example, the World Bank is helping the govern- ment to upgrade and green the city’s world moves rail system by funding more than 100 new energy-efficient trains to improve TWO WEEKS AFTER 175 GOVERNMENT representatives came together in New services and reduce travel time for York City to sign the historic Paris low-income families living on the city’s Climate Agreement, leaders from outskirts. This will increase people’s national and local governments, civil access to jobs, schools, and health care. society, academia, and the private And it will help reduce 93,700 tons of sector gathered in Washington for a greenhouse gas emissions, equivalent Climate Action 2016 summit. While to taking off the road some 25,000 the challenges to tackle climate gasoline passenger cars per year. – change span numerous sectors and World Bank Group Weekly Update, require actions on multiple fronts, in- May 11, 2016 cluding in agriculture and energy, one area deemed particularly crucial for Free State corruption eruption lowering the world’s carbon footprint ON 12TH MAY 500 PEOPLE MARCHED TO is transportation. the SAPS and the Free State Pros- “We will be outlining the main ecuting Authority in Bloemfontein to principles for a plan to transform the demand that SAPS urgently conclude world’s transport systems,” said World its investigation of corruption charges Bank President Jim Yong Kim in his laid two years ago by the Treatment opening remarks. “We are calling it Action Campaign (TAC) against ‘sustainable mobility for all’. It means Health MEC Benny Malakoane and moving people and goods in an acces- commence prosecution. sible, efficient and safe way to help cut They charged that in June 2014, poverty, cut emissions and increase Malakoane and other senior Free State resilience to a changing climate.” Health officials had ordered an ICU Speaking on behalf of the COP22 bed in Dihlabeng Regional Hospital presidency, Dr Hakima El Haité, of be made available to a patient despite Morocco, said: “We should establish World Bank President Jim Yong Kim the responsible doctors at the hospital the link between sustainable trans- having found that the patient did not portation and the whole vision for qualify for the bed. When the doctors the transformation of society, and the in mobility. Technologies necessary explained to MEC Malakoane that the goals of the Paris Climate Agreement.” to significantly reduce the footprint patient did not qualify for an ICU bed, Today, transport accounts for nearly of transport and to make transport the MEC replied he had promised the a quarter of energy-related global accessible to all already exist,” said patient’s family the patient would be greenhouse gas emissions. With the Denis Coderre, Mayor of Montreal, given the bed. The MEC then forced global population set to rise to 9.6 bil- Canada. “The new eco-friendly electric the patient to be admitted. As a result, lion by 2050, business as usual will public transit network proposed for an elderly woman with good chances of increase emissions from transport to the Montreal region is one example recovery was forced out of the ICU. She 33%, and the number of vehicles on of what can be done. We need to unite later died. – TAC newsletter, May 2016 the road could double to two billion behind a clear vision and clear tar- by 2030. This will also threaten road gets. We must make these choices now Interesting interests safety, as road crashes already claim because today’s transport investments some 1.3 million lives every year and will determine the mobility patterns DOCUMENTS AMONG THE LEAKED PANAMA injure 50m people worldwide. The lack and the greenhouse gas emissions Papers suggest that Zimplats, the of road safety also costs up to 5% of of tomorrow. Making mobility more Zimbabwean subsidiary of Impala countries’ GDP, mostly affecting the sustainable translates into transport Platinum Holdings Ltd (Implats), poorest ones. systems that are more accessible, ef- used an offshore company to pay “We can and must enter a new era ficient, safer, and climate responsive. (most of) the salaries of its senior

6 employees, presumably enabling them Watch that man ple were due to show at the Nelson to avoid paying income tax in Zimba- Mandela Bay Stadium, but then only bwe (or anywhere, for that matter). ANOTHER CHAPTER IS DEVELOPING IN an estimated 30,000 pitched. Party However, Implats insists it is not even President Jacob Zuma’s complicated chairperson and National Assembly aware of the company – HR Consul- relationships with finance ministers speaker Baleka Mbete told the crowd tancy – and says that all salaries are after the quiet swearing-in of Sfiso that the official record of attendees paid internally. Buthelezi MP in March. A former at the ANC’s local election manifesto According to the South African chairman of PRASA, who has fingers launch was 42,000, a clearly optimis- Parliament’s Register of Members’ in many pies, from media, to finance, tic assessment when compared with Interests, Finance Minister Pravin to tourism, Buthelezi is considered by photos of the event. Gordhan owns 250 Implats shares. many in Parliament as being groomed She insisted that many supporters Maybe, as a shareholder, he might be to take a job in the Ministry of had moved from their seats because inclined to seek reassurance on that Finance, probably as the next deputy of the sweltering heat. Where to, she score from the directors themselves? finance minister. did not say. Or maybe he could suggest that SARS Speculation is rife about the pos- City Press reporters interviewed does the odd lifestyle audit on senior sible removal of Mcebisi Jonas, the local residents who stayed at home on Implats executives to see whether current deputy minister who angered the day; many declared they were dis- their cars and homes match their Zuma by lifting the lid on the most illusioned with the ANC and planned modest salaries. recent Gupta scandal: he revealed to vote EFF or UDM. The (former-communist) finance that he had been offered the job of As telling: an ANC spokesman later minister owns a share portfolio with a finance minister to replace Nhlanhla explained that a number of busloads combined worth of over R3.4 million. Nene. Buthelezi is the one to watch. of supporters from faraway places His shares include over R865,000 in had sadly not arrived – because banks: ABSA, First Rand, Nedbank ANC spins half-hearted launch the [wise] bus drivers had refused and Standard Bank. Perhaps the to drive unless they were paid in DESPITE PLENTY OF SINGING AND DANCING, finance minister should leave his advance. They weren’t. The word has Zuma had nothing to celebrate when investment decisions to his pension clearly got out that last time round the ANC’s local election campaign got fund, lest he be unduly affected by the numerous service providers were off to a weak start, managing to fill fact that his state borrowing and tax- never paid by the ANC. barely more than half a stadium for making powers can heavily impact the Great organisation. At least they’re its manifesto launch. The ANC had companies in which he has a direct not tasked with organising the coun- initially claimed that 110,000 peo- interest? try – oh, hang on... – Todd Gillespie n Stent

NOSEWEEK June 2016 7 A most unsaintly president Angolan President José Eduardo dos Santos has hinted that he’s keen to abdicate – but he’s holding back because he fears that his sins will be avenged when he relinquishes power. By Greg Penfold

OR YEARS, ANGOLA HAS BEEN on earth. Angola is also among the ten Léopoldville (now Kinshasa), his obvi- touted as the epitome of “Africa countries with the lowest life expec- ous leadership qualities led to his ap- rising” – the new frontier of in- tancy (51.3), while its child mortality pointment as deputy president of the vestment, where fortunes stand rate has led to it being described as the MPLA youth wing. Two years later he to be made for those with the world’s most dangerous place to be a joined the MPLA office in Brazzaville, acumenF and audacity to take the risks child under the age of five – even dur- where “he could not have had more and reap the profits. And indeed, on pa- ing the height of the oil boom. than two pairs of trousers and two per, Angola has been just that. Now oil has gone from boom to bust, pairs of shirts,” according to Dr Maku- From 2003 to 2013, Angola had one parts of the country are experiencing ta Nkondo. Then, in 1963, Dos Santos of the fastest-growing economies in severe food shortages, banks are ra- went to study petroleum engineering the world and the third-largest in tioning withdrawals to deal with cash in Soviet Azerbaijan. Graduating in sub-Saharan Africa, with oil revenues shortages and the real-estate market 1969, he delayed his return to take a reaching over US $450 billion and an- has crashed. Meanwhile, the informal course in telecommunications and ra- nual average GDP growth at the 11% dollar exchange rate has risen 500% dar and marry Soviet chess champion mark – a remarkable performance by in one year against the official 60% at Tatiana Kukanova, who bore his eldest any standards. Kudos to the leader- a time when private-sector companies child, Isabel. ship of Africa’s second-longest serving are either slashing their staff comple- Returning to Angola in 1970, Dos president, José Eduardo dos Santos. ments or simply going bankrupt. Gov- Santos spent three years with the This version of the facts was endorsed ernment institutions are utterly dys- MPLA armed forces on the Cabinda in February by the UN General Assem- functional. front and was appointed second-in- bly, which resolved that Angola’s sta- Why is Angola suddenly looking like command of telecommunications ser- tus will rise from low to middle income a failed state? It’s not just about the oil; vices. In 1974, the year of the Carna- by 2020. Concrete proof of progress and it’s about how failure has been built tion Revolution that saw the peaceful cause for congratulations all round. into the fabric of the state under the overthrow of the Portuguese fascist However, there is a jarring dispar- leadership of José Eduardo dos Santos, dictatorship, Dos Santos became a ity between these figures and facts who also happens to have become Af- member of the MPLA executive com- on the ground. In fact, under current rica’s wealthiest president. Unofficial mittee. Angola’s independence in No- economic circumstances, not even mid- estimates put Dos Santos’s worth at a vember 1975 saw his appointment as dle-income status may suffice Angolan cool US$20bn. Minister of Foreign Affairs in Presi- citizens – most of whom get by on two How did the son of a poor immi- dent Agostinho Neto’s government, dollars a day. Yet the “cost of living in grant stonemason ascend to such lofty on the strength of his loyalty, military Angola is 60.25% higher than in Unit- heights? It all began with revolution- track record and education. ed States (aggregate data for all cities, ary zeal. Even as a schoolboy, Dos San- In 1977, with Angola now mired rent is not taken into account). Rent in tos agitated for the overthrow of Por- in civil war between the rival MPLA, Angola is 327.97% higher than in Unit- tuguese rule. At age 19, he became a FNLA and UNITA, Dos Santos was as- ed States (average data for all cities)” member of the Popular Movement for signed to head the National Planning (www.numbeo.com). the Liberation of Angola (MPLA) when Commission. Neto died in September Luanda is the most expensive city it was still banned and persecuted. In 1979. At the age of 37, José Eduardo

8 NOSEWEEK June 2016 dos Santos was unanimously chosen by the MPLA Central Committee as party leader, commander-in-chief of the Armed Forces, and President of Angola. The office of president carried the right to appoint the board, chair and CEO of all state-owned companies di- rectly, affording him direct access to national oil company Sonangol, the sole oil concessionaire, regulator, tax collector and manager of revenue on behalf of the Angolan state. Sonangol was founded in 1976, the very year in which the MPLA officially adopted Marxist-Leninism. Angola specialist Ricardo Soares de Oliveira points out that late colonial Angola had a vibrant and diversified economy, growing at 4.7% between 1961 and 1974. The civil war put paid to that: massive infrastructure de- struction and an exodus of educated and technically able personnel led a desperate President Neto to introduce central economic planning. Catastro- phe ensued. Nationalised companies and collective farms led by inexperi- enced political appointees were run into the ground, until very little re- mained of the economy at all – except for oil. To win the war, the MPLA needed to buy weapons. Pragmatism dictated that Sonangol be exempt from the strictures of Marxist-Leninist eco- nomics. While every other sector nose- dived, Sonangol was allowed to flour- ish. Whatever it takes, the oil must flow, was the prevailing wisdom. The first step was to woo back the mul- tinationals, starting with Gulf Oil. The American firm had previously accounted for the bulk of Angolan oil production through its subsidiary, the Cabinda Gulf Oil Company (CAB- GOC), but pulled out of the country in November 1975. A combination of di- plomacy and promises of “business as usual” persuaded Gulf Oil to return. It didn’t seem to matter that Angola was a sworn enemy of the USA, backed by Moscow and Havana in a flashpoint of the Cold War. Gulf Oil was followed by other players such as Petrofina and Texaco. Although the MPLA took control of the oil company ANGOL, in line with its policy of expropriating all Portu- guese property without compensation, Angola’s President José Eduardo dos Santos the blow was softened when the An-

NOSEWEEK June 2016 9 golan oil commission visited Lisbon in treated Sonangol like a private bank 1976 and signed an MOU with Petro- account, enriching themselves through gal, ANGOL’s Lisbon-based principal, offshore money laundering, running agreeing to staff Sonangol with AN- Maintaining up debts against future oil production, GOL staff, many of whom stayed on to procuring military hardware at inflat- become long-serving Sonangol employ- ed prices, and other crooked practices. ees. good relations The lack of internal regulation at So- As one such executive told De Ol- nangol makes it difficult to trace where iveira, “In no other area of the Ango- the money goes. For example, some lan economy was there such a degree with Western oil $4,22bn simply disappeared between of continuity, with both structures and 1997-2002, into what the IMF called a people kept in place. You see, through investors took financial Bermuda Triangle. colonialism, foreign invasion, Marxist- One thing is for certain: the state’s Leninism and capitalism, I have not oil revenues are not invested where left the same building.” precedence over all they should be. On the contrary, state Maintaining good relations with institutions have been neglected to the Western oil investors took precedence point that they have been completely over all political concerns. Covering political concerns undermined. A strong, healthy democ- any skills gaps with the best interna- racy is diametrically opposed to the tional expertise (including Arthur D interests of the rentier elite. This year, Little, the highly renowned consulting the president set the cat among the firm from Cambridge, Massachusetts), marketing of fuels and refined prod- pigeons by announcing his intention Sonangol soon established an enviable ucts in Portugal), BAI (Banco Africano to step down in 2018. (The next elec- reputation for reliability and compe- de Investimento) (banking), Bricomil tion is in 2017; since the winning party tence. It was a good company to do (civil engineering) and Wapo Angola gets to appoint the president directly, business with. (services for the oil industry and other Dos Santos is confident of maintaining Late colonial production levels were businesses). his seat.) Immediately, talk turned to surpassed in 1983; the first Sonangol Naturally, when the civil war ended the question of who he would choose subsidiary, Sonangol Limited, was es- in 2002, the Sonangol Group was ex- to succeed him. An orderly succession tablished in London to trade Angola’s pected to power Angola into an era would guarantee the continued influ- 40% share of oil production directly. of accelerated national development. ence of the Dos Santos family and its Chevron bought out CABGOC in 1984 Despite incredible economic growth associates and ensure that their finan- and remained Angola’s biggest private- figures from 2003-2013, this didn’t cial interests are not investigated. The sector ally throughout the conflict pe- happen. The reason is simple enough: prime candidates are two of the presi- riod. It didn’t matter that 80% of An- from the outside, Sonangol was a good dent’s numerous children, Isabel dos gola had been over-run by US-backed company to do business with; on the Santos and José Filomeno dos Santos. UNITA – it was protected by Cuban inside, it has been treated as a private Born in 1973, Isabel has become troops and Soviet weaponry, paid for piggy-bank by a rentier elite grown fat Angola’s First Lady of Business, with with Sonangol petrodollars. Not once, on the spoils of war. large stakes in Angola’s banking, ce- in the midst of one of Africa’s lengthi- For O Chefe (“The Boss”), President ment, diamonds and telecom indus- est, most devastating wars, did oil pro- José Eduardo dos Santos has never tries. Most of her assets are held in duction cease. Chevron was joined by won a presidential election. The MPLA publicly traded Portuguese compa- ELF, British Petroleum, Royal Dutch/ rules by right of conquest. The contest- nies. Indeed, her ranking on the 2012 Shell, ExxonMobil, Statoil, Norsk Hy- ed 1992 election was inconclusive (Dos Forbes list of Africa’s 40 Richest was dro, Petrobras, Marathon, CNOOC, Santos did not gain the 50% mandate based on Portuguese shareholdings Sinopec, and others. required), yielding only the bloody Hal- in ZON Multimedia and Banco BPI, Angola dropped Marxist-Leninism loween Massacre and a return to civil amounting to some $500m. However, in 1991; Sonangol restructured. The war; in 2008, direct presidential elec- one year later, Forbes revealed that Sonangol Group comprised a far-flung tions were formally done away with. she also owned stakes in an Angolan net of international business interests, Since 1979, his power has been based bank, a share in Angolan mobile net- including Sonils (logistical support of on patronage purchased with oil mon- work UNITEL, and a 6.9% stake in oil exploration and services compa- ey and backed by military muscle. Al- Portuguese oil company GALP, which nies), Sonadiets (technical assistance, ready in the 1980s, unlimited access raised her net worth to $3bn – making maintenance and professional train- to oil revenue had allowed Dos Santos her Africa’s eighth-wealthiest billion- ing), AngloFlex (manufacturing of um- and his cronies, known as the Futun- aire. According to the authors of the bilicals and pipelines for underwater go de Belas (“the Palace”), to build a Forbes report, “As best as we can trace, production systems in the oil and gas parallel state accountable only to the every major Angolan investment held industry), SonanGalp (distribution Presidency. by Dos Santos stems either from tak- and marketing of fuels and refined Sidelining official MPLA structures, ing a chunk of a company that wants products), Sodispal (food retail and this web of officials and business- to do business in the country or from agriculture), SOPOR (distribution and men, with the president at its centre, a stroke of the president’s pen that cut

10 her into the action.” However, the London-educated, pho- togenic and well spoken Isabel dos Santos has repeatedly denied ever ben- efiting from undue influence, instead ascribing her success to honest hard work. She is attached to a personal myth that would have had her starting up in business as a six-year-old selling eggs “to finance her candy floss habit”. Angolan activist Raphael de Moraes tells a different story. During the war- torn 1990s, several companies were formed in order to control diamond sales intended to finance the war; Isa- bel dos Santos’s mother Tatiana Ku- kanova was awarded a 25% share in a company that, by presidential decree, received a monopoly to buy and sell Angolan diamonds. De Moraes also re- Angola’s frst daughter multi-billionairess Isabel dos Santos ports that in 2014, the Princess, as she is unaffectionately known in Angola, acquired 75% of the Swiss jeweller De tablished in 2012 with $5bn of initial other investment funds recently certi- Grisogono for over $100m. The stake capital, plus oil revenue derived from fied, which all aim for social and eco- was acquired by Victoria Holding Ltd, the sale of 100,000 barrels a day, in or- nomic development in Angola and for a shell company, owned by Sodiam, the der to develop and diversify the econo- the whole of sub-Saharan Africa. We Angolan state diamond company, and my away from oil. invite you to refer to these imminent Melbourne Investments, whose sole Although his appointment was de- announcements for any additional in- owner is Sindika Dokolo, Isabel dos fended on the grounds of his experi- formation.” Santos’s husband. ence in the banking sector, it is clear Some US$3bn of the FSDEA’s assets Dokolo reputedly owns Africa’s larg- that other factors were at work. Ques- are managed by Quantum Global In- est private art collection. He also sits tioned in 2013 by the Wall Street Jour- vestment Management (QGIM), whose on the board of Amorim Energia BV, nal, Zenú said the fund’s investments founder and chairman Jean-Claude a holding company that owns a third “would depend on priorities set by Bastos de Morais has a long-standing of Galp Energia, the Portuguese oil parliament and his father”. In other business relation with Zenú, and who company. He was appointed in 2006 by words, the FSDEA is just another type just happens to be a majority share- Esperaza Holding, a company entirely of family-and-friends piggy-bank. For holder in Banco Kwanza Invest. De- owned by Sonangol at the time. example, Raphael de Moraes reports, spite the FSDEA’s Sovereign Wealth This year, Isabel has expanded into on 22 January 2015, the FSDEA trans- Fund Institute having given the FS- politics. In February, she was appoint- ferred the equivalent of US$100m in DEA a clean bill of health, its efforts ed to head three key government com- kwanzas to Kijinga SA, a shell com- towards development and diversifica- missions charged with overseeing the pany created by Banco Kwanza Invest tion have signally failed, since low oil restructuring of Sonangol, the oil sec- (BKI), which had been run by Zenú be- prices have now pushed Angola into tor as a whole, and Luanda’s US $15bn fore he resigned to become chairman of asking the IMF for help. Urban Redevelopment Master Plan. the FSDEA. Such a shell is Kijinga SA. Clearly, neither Zenú nor Isabel are This effectively puts Isabel directly In fact, according to official documents, likely to improve the situation of An- in control of everything that matters it doesn’t even have a single employee gola’s desperately poor citizens. The from a financial point of view, even on its payroll. fact of the matter remains that nobody though she has never held a govern- Questioned on this, the FSDEA re- seeking to invest or do business in An- ment appointment before. She has also sponded blandly: “The Angolan Sover- gola can do so without the direct or in- been granted a US $615.2m contract eign Fund provided the equity capital direct approval of the Presidency. to develop the southern waterfront of of 9.950.750.000,00 kwanzas for a com- Since no such approval will be grant- Luanda. pany which is focused on setting up ed unless it furthers the interests of To recap: the president’s daughter, incubators for micro-business for An- the elite, it should be understood in no a businesswoman with no previous golan businesspeople. This initiative uncertain terms that any potential en- political experience, has been given represents the first project of social in- terprise or investment is guaranteed the keys to 95% of Angola’s GDP. tegration in the country undertaken as to prolong the status quo, postponing The President’s 36-year-old son, José a sustainable business enterprise. the day when the Angolan people can Filomeno dos Santos, known as Zenú, “FSDEA has scheduled the public have a say in their own destiny, or see is chairman of the Angolan Sovereign announcement of this investment in the resources of their country applied Wealth Fund (FSDEA), which was es- the coming days, in tandem with five to improving their prospects in life. n

NOSEWEEK June 2016 11 N HIS ADDRESS TO THE FRANSCHHOEK Literary festival in May, Jonathan Jansen quipped that his work as Vice-Chancellor of the University Dr Jonathan Jansen; and (facing of the Free State was the second- page) Wits University vice chancel- mostI difficult job in the world – after lor Adam Habib berated by Sasco that of National Assembly Speaker. president Mcebo Freedom Dlamini “Right now, I should be spending during last year’s student protests time raising R100 million to fund stu- dents at my university. I should be de- veloping curricula. I should be meeting with scholars to urge them to come to my university. But I’ve recently had to cancel three meetings with top inter- national scholars in order to deal with constant protests and instability.” Three days later, Jansen announced that he is to step down from his post as Vice-Chancellor and Rector at the end of August, to take up a Fellowship at the Centre for Advanced Studies in the Behavioural Sciences at Stanford Uni- versity in the USA. The UFS said his departure was a great loss, but an op- portunity for him to further his career as an internationally renowned educa- tion academic. To those who had attended his Fran- schhoek talk, the announcement came as no great surprise, given what he had told them about the state and plight of university leadership in a year in which South Africa’s campuses have erupted in protests over a range of is- sues, culminating in millions of rands’ Jansen prophesies damage, abusive confrontations with staff, violent clashes with security per- sonnel and police, and running battles between student groups. “Many 18-year-olds, arriving at uni- academic ruination versities, have already participated in burning schools... and they think it is normal to burn things. On top of that, when young people turn on their tele- on and off campuses was transferred Following President Jacob Zuma’s visions, they see the spectacle of impu- to the leadership. “It becomes per- announcement that there would be no nity and incivility that is Parliament. sonal... and is also directed at family fee increases, Jansen embarked on a “Professors are trained to teach, to members, often on the social media… mission to raise R100m in bursaries for develop curricula, to write books, to You get your heart broken in a million 1,000 students, but in recent months manage budgets. Now, what we are pieces but you have to keep picking he had spent all his time dealing with doing is managing security forces. We up... for the sake of higher education.” security issues. “The problem is, you are dealing with angry students, anx- Vice-chancellors were not accustomed are not a vice-chancellor anymore.” ious parents, and managing right-wing to the new anger being expressed on He felt as if he was constantly play- alumni and left-wing alumni.” campuses, he said. ing a US arcade game called whack a Jansen said he had recently inter- Jansen, in his recent book, Leading mole in which players hit pop-up toy viewed four of the ten vice-chancellors for Change: Race, Intimacy and Lead- moles with a mallet: “You are always in South Africa and had discovered ership on Divided University Cam- having to anticipate and manage crisis that none wants to stay in the job. Vice- puses, looks at the current tensions on after crisis,” he said, adding: “We are in chancellors were no longer sure wheth- campuses and at transforming leader- very serious trouble.” er the benefits of being leaders of uni- ship and higher education by employ- On the bright side, his mission to versities outweighed the costs, he said. ing physical, intellectual and emotion- raise R100m was going well, he said, Much of the anger related to conflict al closeness with young people. with “major” funding in the bag. “It

12 Photograph: Alon Skuy/The Times Skuy/The Alon Photograph: Ignam, consendia vendist, omnihil lessent oditaes doluptatem. Nam labo. Itasper natius, voloreniet errum et quibus ut ut lam hic

takes persistent, back-breaking work, professors give the university its ex- but we’re confident that by the end of cellent reputation. If you take away 2017, we should reach our goal,”. Prof Bongani Majosi (Medicine) and However, Jansen says he has been Prof George Ellis (Mathematics) and overcome by pessimism. He predicts it a few others... you are soon reduced to is “a matter of years” before our uni- a campus of ordinary lecturers who do versities will have been reduced to not have the mobility that comes with mere “teacher training colleges”. He offers from international universities.” foresees that within ten years South The next development is when mid- African universities will become al- dle-class students start leaving be- most exclusively black. And that the cause of declining quality of education top professors on the campuses will and security concerns. “The rich will start walking away. go elsewhere, to private universities.” “At UCT, for instance, about ten Jansen advocates a two-pronged ap- proach at universities. He says bring- ing people together in forgiveness and In a matter of years reconciliation is not enough; simulta- neously we must deal with social jus- tice, poverty and inequality. “It has to universities will be done in tandem.” What should the government be do- ing to save our universities? “Not in- have been reduced terfering (except in dysfunctional ins- titutions), funding adequately and ad- to teacher training dressing root causes of instability on campus by, for example, [providing] models of leadership for students in colleges public behaviour, eg. Parliament.” See Editorial. n

NOSEWEEK June 2016 13 The contested Midas touch No love lost as ex-partners squabble in byzantine row over property deal millions. By Jonathan Erasmus

T WAS MEANT TO RANK AS ONE OF THE – had negotiated a lucrative new long On 26 March 2003 Nobre confirmed most insignificant property deals lease with their tenant Midas and dis- the transfer of R100,000 to Sneech, in history but it has snowballed counted it with Absa for a R65m pay- but proposed they agree on a number into a legal fight-to-the-death be- out (again without informing Sneech of terms for repayment. The R100,000 tween two Johannesburg property who was then still his co-shareholder could be deemed “part of payment developers,I one relatively small fry, the and co-director) of the windfall that due to you on the Blue Dot share sale other who has since made the bigtime had come their company’s way. Nei- agreement” (still being considered) or and now owns Earl Spencer’s former ther had Nobre informed Sneech that it could constitute payment for the residence in Constantia, Cape Town. shortly thereafter he had negotiated purchase of 2.17% of Sneech’s shares. In December 2003 Barry Sneech sold the sale of the property itself at anoth- In the alternative, if Sneech didn’t his shares in the company that owned er huge profit – for himself only. agree to sell any or all of his shares to a Pretoria property (occupied by the The arbitrator’s ruling set off a se- Nobre, the loan would become “refund- vehicle parts group Midas), to his co- ries of legal actions, the latest being able with interest at prime”. director and now multi-millionaire the summons Sneech has recently is- Sneech accepted the loan terms, property mogul, Rui Nobre, for a paltry sued, suing Nobre for R71m. and negotiations for the sale of his R2.5 million. They were co-directors The two partners had first discussed shares to Nobre commenced. On 13 and equal shareholders at the time. the possible sale of Sneech’s shares to April 2003 Sneech emailed Nobre ask- Two years later, when Sneech Nobre in March 2003, after Sneech ap- ing his views on possibly negotiating learned that prior to taking transfer of proached Nobre for a R100,000 loan. a new long lease with Midas, which his shares in December, Nobre had se- they could then discount to a bank for cretly negotiated the sale of the prop- a large cash sum. On 5 May Nobre re- erty for a massive undisclosed profit, plied: “I assure you that the refinanc- he hired lawyers to challenge Nobre’s Two years later, ing exercise is a zero-sum game, at alleged non-disclosure of information. best, and most probably it would incur That, he said, would materially have a loss for us”. (Just eight months later affected the price he had been pre- when Sneech learned Nobre would secretly do exactly what pared to accept for his shares. he had persuaded Sneech not to do – But in a controversial 2008 ruling that prior to taking and make a substantial profit.) an arbitrator decided that Nobre had Nobre continued to work on a pro- had no duty to disclose new develop- posed share sale agreement with his ments in their joint company, Blue Dot transfer of his attorney, Andrew de Jongh. On 20 May Pty Ltd, to Sneech after 6 June 2003. a “structured” offer of R2.3m which His reasoning was that, since by then shares in December, involved part-payments, was sent to Sneech had made clear he was eager to Sneech. Five days later Sneech sent it sell his shares to Nobre, it could there- back requiring various changes of his fore be regarded a “done deal”. Even Nobre had secretly own. Nobre’s final revised offer was though a price had yet to be agreed sent to Sneech on 27 May 2003. upon, another buyer was also in con- negotiated the sale of But Sneech, who was cash-strapped tention and the actual sale was only at the time, had simultaneously been concluded six months later. the property talking to Gordon Odgers, the manag- This vindicated Nobre, who after ing director at Midas. Odgers (on be- June 2003 – and unknown to Sneech half of Midas) offered Sneech R3.3m

14 at Quantum Property Group (QPG), once a bull on the JSE, but jumped ship, before it went belly up in 2012 (see nose157). Then, one day in 2005, Sneech learned on his golfing rounds that Nobre had sold the Midas property for R110m to the Paramount Prop- erty Fund – significantly now with a fresh eight-year lease to Midas. And that Nobre had made a profit of about

Sneech sought legal recourse and damages of R33m. He said Nobre had failed to disclose the new Midas lease agreement

R45m on this deal. The sale was not in dispute but the extension of Midas’s lease was, as it had been negotiated without Sneech’s knowledge when he Smoking buddies: Rui Nobre (left) and friend was still a co-director and shareholder of Blue Dot. Sneech sought legal recourse and cash, to be paid within a week. Sneech concerned he still had his shareholding significant damages of R33m. He said then phoned Nobre to tell him about and was still a director of Blue Dot. Nobre had failed to disclose the new Odgers’s offer. They set up a meeting On 12 December 2003, unaware that Midas lease agreement, which would for 5 June to discuss this development. his co-director had secretly taken up have likely changed his mind about The meeting didn’t take place, but it the negotiations with Midas where wanting to sell – or at the very least, would later become key to the arbitra- he had left off, and had in the interim caused him to seek a higher price for tor’s ruling against Sneech. concluded a very profitable new deal of his shares. Nobre maintained that on 5 June their own, Sneech finally signed a con- But between 2008 and 2012 he lost 2003 he and Sneech were meant to sign tract agreeing to sell his shares to No- in arbitration (chaired by Advocate the agreement but Sneech didn’t turn bre for R2.5m (just R200,000 up on the Michael Kuper SC), and then again up. Sneech, however, was adamant that previous offer made in May) and signed before a three-man Appellate Tribu- Nobre had pulled out of the meeting over his shares. nal (Judges Johann Kriegler and Craig because he wasn’t prepared to match Everyone seemed happy. As far as Howie and Adv Alistair Frankin SC); the Midas offer. Sneech knew, Nobre had a blue-chip a review in the North Gauteng High Sneech’s negotiations continued with client with about five years remaining Court before Judge Roland Sutherland, Midas but suddenly Midas couldn’t do on the existing lease and Sneech could an application for leave to appeal to the deal and pay within a week after play golf at any number of courses in the same court and an application for all: board resolutions were required the leafy suburbs of Johannesburg and leave to appeal at the Supreme Court and terms needed to be negotiated. By move on to any number of new projects, of Appeal. Each one upheld the original the end of June their negotiations had from petrol stations to golf estates. He arbitration ruling in Nobre’s favour, or simply fizzled out. As far as Sneech was even became a non-executive director refused Sneech leave to appeal.

NOSEWEEK June 2016 15 Sneech’s case was that neither the sale negotiations in March 2003 nor May 2003 mattered, only the signed sale on 12 December 2003 did. He claims it was when Nobre was seeking to use his shares as collateral for an Sneech has laid a unrelated property deal in Boksburg and needed company financials, that Nobre made him an improved offer for charge of ‘company his shares on 10 December 2003. He contends that until he signed two days later, he was legally entitled to act hijacking’ against freely with his shares as he wished. Nobre’s defence was that the sale happened in March 2003 and he Nobre therefore no longer had a duty to disclose, with just the terms and a written agreement needed to be fi- nalised. Nobre said he had made it Barry Sneech clear to Sneech that he couldn’t sell to Midas as they had a deal. Kuper Down but not out, Sneech has now largely agreed with Nobre that even changed tack and has issued summons if the actual sale was only concluded against Nobre in the High Court, Jo- on 12 December 2003, because they hannesburg. Forgetting about the un- Do the sums were meant to sign the agreement on successful rulings, he now claims No- 5 June 2003 – as Nobre claimed and bre broke the law. (Inter alia he claims RONICALLY SNEECH HAS CLAIMED IN Kuper accepted – they already had a he can prove that Nobre effectively previous hearings, that he had “done deal”. used the company’s money to fund his Iasked Nobre early in 2003 if the “Sneech had sold his shares, or was purchase of Sneech’s shares in the com- Midas lease could be extended and certainly going to do so, and had no fur- pany, which is illegal.) He is seeking money be made by discounting the ther interest in their fate. By Decem- R71m with interest, which includes his new lease. Nobre then purported to ber, and for his own reasons, he chose claimed share of the Paramount deal “do the sums” and informed Sneech it to sign the deal... on terms which... and of the (prior) long-lease agreement came to a “zero sum game”– it would were... agreed back in May [except the with Midas that Nobre secretly se- not be worth the trouble. price had increased]. I see no reason in cured and then discounted with Absa Sneech claims the allegedly ille- the circumstances to hold that a duty for R65m in cash. gal non-disclosure to him of the true of disclosure continued after 6 June,” In the summons Sneech claims that, facts makes the 12 December 2003 said Kuper. unbeknown to him, in early December sale of his shares null and void – thus Kuper said that an email sent by 2003 Nobre had “secretly arranged to reinstating Sneech as a shareholder Sneech to fellow property developer discount the newly extended Midas of Blue Dot, entitling him to receive Rob Hulme on 8 June 2003 (whom he lease with ABSA”. He alleges this was 50% of “any of the net funds gener- was asking for money) confirmed that illegal in terms of section 226 and vari- ated and released by Blue Dot”. Sneech was going to sell to Nobre, or ous other sections of the old Compa- But Nobre maintains Sneech has at least to Midas. Sneech admitted to nies Act, in that Nobre failed to inform been “unable to grasp the legal ba- Hulme in the email that he was “about Sneech – a co-director and shareholder sis of the [Kuper] ruling”, and points to sign an offer on [5 June 2003] from – of the transaction. to his series of lost appeals. “He has Rui” but he delayed it “stupidly? in fa- The Absa deal was meant to set- been using every angle he can think vour of Odgers’s offer of “R3.3 million tle their company’s existing mortgage of to avoid my [legal] cost order,” No- cash in three days”. loan from Rand Merchant Bank and bre told Noseweek. He wrote that “Rui was not going to fund Nobre’s purchase of his partner Nobre has called Sneech’s new take up his right to pre-emption” to Sneech’s shares. In addition, R9.5m of line of attack “another misguided at- meet or beat the Midas offer for his the proceeds was a kick-back to Midas tempt” and that he “expects no dif- shares. Odgers had in the meantime for taking on a new lease. (Midas was ferent outcome”. Documents are still delayed the deal (with Midas) “due to heavily leveraged at the time. In 2002 being filed in the matter lodged by corporate governance issues”. it had completed a buy-out of its ma- Sneech with no court date set yet. In an interview with Noseweek, jority shareholder Dorbyl Group Lim- Meantime Sneech will appear in the Sneech calls the arbitrator’s ruling “bi- ited and the lender, Absa Bank, was North Gauteng High Court on 13 zarre”. “Just because a person is think- concerned about its exposure. June to face a civil claim, launched ing of selling to one – or another – per- The R9.5m deal was gladly accepted by Nobre, for the costs of the previous son doesn’t mean they lose all rights to and paid back to the bank to reduce hearings. n what they are proposing to sell!” Absa’s exposure.)

16 Who is Rui Nobre?

UI NOBRE, NOW 45, HAS BUILT UP AN against him because of his “conduct”. empire named Griffin Holdings, Johl got his remote. Rbased in both South Africa and A twist to the tale: from 1998 to the UK (known as Griffen in the UK), June 2004 Sneech and Nobre each of which he is chairman. In June 2015 owned shares in Blue Dot 56 (Pty) Nobre would have made a fortune Ltd, whose sole asset was the leased when Investec acquired 22 proper- commercial property. Their shares ties for R826 million from Griffin. The were held through companies they company website claims Nobre has controlled; Sneech’s through a Brit- “successfully led Griffin to become a ish Virgin Islands-registered com- multi-billion-rand group”. pany called Hannington and Nobre’s He now spends his time document- through his local property company, ing his travels on an online “Motor- Griffin. Nobre and Sneech both held cycle Diary” including Cape to Cairo 25% of shares in the company via and a crossing of the American conti- their proxies, while a further 50% nent, the most recent being a trip in of “invisible shares” lay with Midas, 2015 to Las Vegas. which on completion of the lease, He also owns Tarrystone Estate, Midas had a pre-emptive right to ac- the former Constantia home of Earl quire. Spencer, brother of the late Princess While Nobre’s ownership was fairly Diana. It is currently on the market. straightforward Sneech’s was not. In 2010 Nobre lost in the Western The BVI firm’s sole director was De- Cape High Court when he refused rard Limited in Jersey and the sole to give his 94-year-old Constantia shareholder was Sarong Trust, also in neighbour a remote control for a secu- Jersey. rity gate on a servitude lane dividing From 1998 to 2003 Hannington was their properties. Nobre claimed that de-registered, as fees had not been handing pensioner Wilfred Johl and paid, making it legally impossible for his partner a remote was a security Hannington to transact any deal. Be- risk as the couple could get “mugged” fore the final sale of its shares to No- while walking their dogs and thus bre could be concluded, Sneech had to compromise his family’s security. pay its outstanding registration fees Judge Yasmin Meer didn’t buy it. to have it legally reinstated – which She said considering Nobre had an he did only in December, days before armed guard at the gate, another gate the transfer of its shares to Nobre. further up and CCTV at the entrance The arbitrator chose to ignore to their property, there was no secu- this legal element, preferring simply rity risk. Judge Meer said Nobre’s “in- to deal with the matter on the prem- transigence” was “somewhat difficult ise that Hannington was, in fact, HAVE AN ORIGINAL? to comprehend”. She awarded costs Sneech. n Get the biography of Tinus de Jongh

That left a R10.6m profit for Nobre to his co-shareholder and co-director, which should, in any event, legally Sneech) secured confirmation from have been shared with his then-part- Midas on 22 October 2003 that they ner in the company, contends Sneech. would enter into another 10-year lease In the summons Sneech alleges the which kicked-in early in 2014. loan was proposed to Absa on 5 De- Sneech claims he never got his share cember 2003, verbally awarded on 6 of the profit; that it had instead gone December 2003 and given written ap- as a “loan” to EXG Investments, con- proval on 12 December 2003 – the day trolled by Nobre – to, inter alia, fund Sneech agreed to hand over his shares the purchase of his shares. Sneech has to Nobre. also laid a criminal charge of “compa- Lavishly illustrated - ONLY R245.00 The loan was negotiated with Absa ny hijacking” against Nobre at SAPS Order from www.tinusdejongh.co.za or www.takealot.com on the basis that Nobre had (unknown Sandton. n

NOSEWEEK June 2016 17

Untitled-5.indd 1 2016/04/18 10:01 AM The Survé settlement – claim no easy victories Vilifcation and vindication claims fan the fames in newspaper ethics battle. By Ed Herbst

N 9 MAY INDEPENDENT MEDIA executive chairman Dr Iqbal Survé reached an out-of-court settlement with former Edi- tor of the Cape Times Alide Dasnois,O which negated the need for him to testify against her under oath in the Labour Court. But then, clearly ignorant of Amil Cabral’s clarion call to “Claim no easy victories”, he imme- diately did so: next morning the front page of the Cape Times carried an arti- cle headlined “Independent vindicated as Dasnois settlement reached”. The article quoted Survé saying: “Alide Dasnois will forever be known as the editor who failed to tell the sto- ry of the death of Nelson Mandela on the front page of the newspaper she edited. No other editor in the world would have recorded his death in a wraparound.” Strange to say, Die Burger, the Af- rikaans morning newspaper in Cape Town, also carried the momentous news in this way (as did the Daily Dispatch in East London) but per- Four of those editors – Moshoe- haps one can forgive Survé for not let- shoe Monare (Sunday Independent), ting the facts interfere with his story, Dasnois claims in Makhudu Sefara (The Star), Philani given that Die Burger sells twice as Mgwaba (Natal Mercury) and Chris many newspapers as the Cape Times Whitfield (Executive Editor INMSA) and does so without the benefit of an her court papers voted with their feet and left his em- almost R1-billion loan, on extraordi- ploy within months – and another narily lenient terms, from the Public 50-or-so senior news personnel and Investment Corporation. that Survé verbally columnists were subsequently driv- Survé, a confidante and one-time en out of the organisation, resigned, business partner of the late Brett abused her at a asked for early retirement or oth- Kebble, went on: “When we called an erwise ended their association with editors’ forum and asked every editor INMSA. That’s a stirring vote of con- whether they would have even con- disciplinary hearing fidence in the man who claimed in an sidered a wraparound for the story SABC interview that his adoring staff of Madiba’s death, every one of them call him “The Fearless Leader”. Sur- said, ‘Absolutely not!’.” vé, as quoted in the Cape Times, went

18 on to claim that Dasnois “...chose to reduce her entire career to one inde- fensible decision based on everything but editorial imperatives that night”. There is a problem with this state- And the answer is... ment – as the Dasnois court papers, published on Biznews on the day of the hearing, reveal that the buck did F READERS HAVE BEEN WONDERING More interesting still: as part of the not stop with her. Survé’s designated these past few years how come In- package, the Guptas were also to have subordinate, Group Executive Editor Idependent Media has been so free been given a deciding say in the ap- Karima Brown was in the newsroom to publish stories critical of the Presi- pointment of senior staff at Independ- on 5 December 2013 to keep a watch- dent’s dearest friends, the Guptas, ent Media. (Why not? After all, they ing brief on his behalf. She neither when those same newspapers have have the same arrangement when it called a halt to the editor’s plans, nor been so embarassingly ingratiating comes to cabinet appointments.) telephoned her employer for further of the President himself, the answer Is Survé’s resistance to the Guptas’ instructions. Fortunately she did not, finally emerged in the Western Cape demands perhaps the reason why the or else the “wraparound” cover tribute High Court in May. government has been withholding the to Mandela – which Time magazine For the past three years the Guptas, promised wodges of state advertising rated as one of the best in the world via their company Oakbay, have been that were supposed to make Inde- – would never have received that ac- suing Independent and its executive pendent Media hugely profitable – colade, an accolade that Survé now chairman, Dr Iqbal Survé, for delivery and reward state pensioners for their bizarrely dismisses as a “fabrication”. of half his shares in the Independent R1bn investment via the Public In- SANEF, the South African National Media Group, as he allegedly con- vestment Corporation? We would love Editors’ Forum, does not agree with tracted to do some years back, when to say Survé and the Guptas may de- his denigration of Dasnois either. Six state capture was still a competitive serve one another, but do we deserve months after he fired her, SANEF sport recognised by the IAF. either of them? – The Editor. n awarded her its prestigious Nat Na- kasa award for courageous journal- ism. According to reporters present erment Investments Limited. The l A final question: Who has been at the function, Survé added gravitas non-executive chair, Prof. Vukile Me- funding the expensive High Court and lustre to the occasion by depart- hana said this rebranding had had war waged by poo protestor (and al- ing in high dudgeon, proclaiming that a very positive effect: “The change leged misogynist) Chumani Maxwele, the decision was “bullshit” and, pre- of name has already had a positive much celebrated in Independent Me- dictably, that it was clear evidence of influence on our organisation. There dia publications, against UCT, given racism. is a fresh level of energy, perspective that he is a student with no known Dasnois claims in her court pa- and future focus,” he said. source of income? n pers that he verbally abused her at a disciplinary hearing and promised to use his “billions” to destroy her reputation and harm her future em- ployment prospects. He did not deny this. Nor did he sue her for defama- tion but he has, claiming defamation, sued Cape Town human rights activ- ist Rhoda Kadalie for R250,000. It re- mains to be seen whether this makes it to court and whether, if it does, he will choose the Dasnois option to set- tle out of court and, once again, avoid testifying under oath. “Reputational damage” is much in the news at the moment and it is in- teresting to note that in November 2014 Survé resigned as executive chairman of JSE-listed holding com- pany Sekunjalo (once saved from in- solvency with an injection of – proba- bly stolen – cash provided by his then best friend Brett Kebble). In April last year Sekunjalo Invest- ments Limited changed its name to the anodyne African Equity Empow-

NOSEWEEK June 2016 19 King or queen? For the amaMpondo, rule by a queen is undermining of male authority and promotes botched circumcisions – so say government representatives in the High Court. (It also happens to be in the interests of the mining industry that Princess Wezizwe should not succeed to the Pondo throne.) By John Clarke

ESPITE HAVING BEEN TEASED WITH Murphy found cause to deviate from team to appeal. It took six months be- “Murphy’s law” jibes ever since the general rule in civil cases which re- fore Judge Murphy could consider ar- his appointment to the High quires the losing party to pay the win- gument as to whether another court Court in 2006, Judge John ning party’s legal costs in addition to could come to a different conclusion. Murphy has earned great re- its own. (See Editorial.) In turn the Director-General of Co- spectD because of his innovative judg- The executive arm of government operative Governance and Traditional ments and exceptional competence. might not have liked Judge Murphy’s Affairs (COGTA), Charles Nwaila, In November 2015 his Facebook boldness in these instances of judi- brought a motion that, should Judge friends were heaping congratulations cial law-making, but the judgment he Murphy grant the Princess the right on him for having cracked a part-time handed down on the ongoing kingship to appeal to the Constitutional Court, appointment to the United Nations Ap- dispute of the amaMpondo in Decem- President Jacob Zuma should, in the peals Tribunal for showing the requi- ber was at least evidence of his im- interim, be permitted to instal Zano- site “high moral character”, impartial- partiality; it largely favoured the case zuko as King even though the Consti- ity and “at least 15 years of aggregate brought by the Director-General of Co- tutional Court might yet find that his judicial experience in the field of ad- operative Governance and Traditional cousin, Princess Wezizwe, had a more ministrative law, employment law or Affairs (COGTA) and the President. lawful claim to the throne. the equivalent”, which is what the UN In effect the judgment said “yes, the Curiously, even though Zanozuko General Assembly rules say. President made a mistake due to am- obviously stands to benefit from being Domestically, he has been willing biguities in the wording of legislation named King, he is listed among the on more than one occasion to defy the governing the certification and ap- respondents, together with the Queen “law” that carries his name to venture pointment of kings and queens, but he and Princess, and not among the Ap- courageously into the terrain of judicial could now lawfully appoint Zanozuko plicants. He was present in the public law-making by putting some things Sigcau as King to fill the vacuum since gallery with his supporters but had no right that would otherwise keep going the death of Mpondombini Justice Sig- legal team of his own to participate in wrong and lead to greater injustice in cau” (see nose195). proceedings. This means he will simply society. In September 2013 he ruled to But the judgment did not go all the abide by the court’s decision (while pin- declare that decisions to withdraw or way in satisfying the applicants. Judge ning his hopes on the government). discontinue serious criminal and dis- Murphy did not grant their first re- Judge Murphy expressed compas- ciplinary charges against suspended quest for an order declaring that the sionate concern for all parties. “Who police crime intelligence head Lieuten- Princess had no claim to the monarchy. would suffer the greater prejudice by ant-General Richard Mdluli were un- He said that, since the Constitutional whatever ruling I make?” lawful. “At times it would be naive of Court had not ruled on this substan- Norman Arendse SC, acting for the the courts to pretend to be oblivious to tive issue (Mpondombini’s argument DG of COGTA, said it was Zanozuko the political context and consequences that the Commission on Traditional (although he had no mandate to rep- of disputes before them. In politically Leadership Disputes and Claims was resent his interests) but that, from the contentious matters, the courts should wrong to have found in favour of Za- government’s point of view the greatest expect to be called upon to explicate nozuko), Princess Wezizwe Sigcau still prejudice by further delay would be felt the source, nature and extent of their had every right to now have that mat- by vulnerable Mpondo boys at risk of powers,” he reasoned. ter ventilated again and adjudicated mutilation of their genitals and death, More recently in May 2016 while sit- by the Constitutional Court. due to botched circumcisions done by ting on a full bench of judges adjudicat- Princess Wezizwe and her mother illicit initiation schools. Government ing a labour law matter brought by the the Queen (who has been ruling as needed a strong male authority at the Free Market Foundation against the Regent since the death of her husband apex of the Mpondo Royal family to Minister of Labour and others, Judge in March 2013) instructed their legal oversee the traditional custom.

20 deaths due to illicit initiation schools, Judge Murphy adjourned proceedings to consider his decision. One can only hope that he will not be “naive... to pretend to be oblivious to the political context and consequences of the disputes” before him, to quote his own words, and read the report carried by City Press in September last year in a front-page story. It reported that Za- nozuko, in the process of defining him- self as uniquely capable of addressing the problem of illicit initiation schools and the harm caused to young Mpon- do men, had insulted both Zulu King Zwelithini and President Jacob Zuma by saying that they could not do so be- cause they were “amakwenke” (boys), for not having undergone traditional circumcision rituals. The incumbent Royal Family had to apologise to King Game of thrones: Zanozuko Tyelovuyo Sigcau (left) and Wezizwe Sicgau Zwelithini for the foolish remarks. Princess Sigcau, by contrast, says: Government might have shown a “The local residents have said no to “The distinctive cultural quality of the better sense of strategy by positing mining on their land, but the govern- amaMpondo is our inclusiveness. Since Zanozuko as the one best able to help ment has not respected that decision.” the rule of King Faku who died in 1867, the vast numbers of amaMpondo men To great applause from the mourners, the amaMpondo have been known as who are sick and dying of silicosis and he concluded, “the keys to the Xolobeni ‘ikhaya leziwe’ – the refuge of the na- TB. It would be a great service to them heavy mineral deposits have now been tions. We are not in the business of for traditional leaders to now assist in effectively buried six foot underground making distinctions between people the identification of victims to ensure in the grave of Bazooka Rhadebe”. based on particular cultural practices, they join the class action that another But Judge Murphy is constrained by but in assimilating and integrating progressive judge, Judge Phineas Mo- what is in the papers before him, and people into our culture.” japelo, has just certified. It would speed nowhere is mention made of what this According to City Press, President up compensation claims before more of writer believes are the real issues be- Zuma immediately set up a media- them die from what has been a much hind the Pondo game-of-thrones judi- tion team led by Deputy Minister of more devastating scourge on the lives cial caution and a reluctance to under- COGTA, Obed Bapela, which included of amaMpondo men than botched cir- mine the lawful prerogatives of either Presidency Director-General Cassius cumcisions, serious as these may be. the Executive or the Legislature, could Lubisi and his COGTA counterpart, But that would have set Zanozuku further inhibit any inclination he might Charles Nwaila, to smooth relations. in an adversarial position against the have to take note of these undoubtedly Given that, it seems an extraordinary mining industry. He would then be at serious issues. Nevertheless, because own-goal for the government to punt variance with the ambitions of that Arendse SC cited facts that were not Zanozuko as a good leader with wis- industry to mine the Pondoland Wild in evidence about the exact number of dom to offer on that score. Coast for heavy mineral deposits. Zano- The institution of traditional leader- zuko is a firm supporter of the Xolobeni ship is entrenched in the Constitution, Mining scheme as well as Sanral’s N2 The institution so we are stuck with it. If it is to serve Wild Coast Toll Road schemes. a useful purpose, the leaders within it Which by contrast Princess Wezizwe have to side with the people, not the is not. Her attendance, with the Queen of traditional politicians. The dispute over whether at the funeral of the assassinated chair Wezizwe or Zanozuko should assume of the Amadiba Crisis Committee Siko- leadership is the throne of amaMpondo aseQaukeni siphi Bazooka Rhadebe on 2 April was must surely be decided not simply over significant. The statement made by her whether Nelson (Zanozuko’s grandfa- spokesperson Chief MG Cinani left no entrenched in the ther) or Botha (Wezizwe’s grandfather) doubt as to where their sympathies lay. should have inherited the throne from “If a ‘crisis’ lasts more than ten years, their brother Mandlonke, who died and people lose their lives in the pro- Constitution, so we without an heir 80 years ago, but who cess, it says that the government has has shown the better sense of principle not simply failed to resolve the crisis. It are stuck with it and accountability to the amaMpondo is part of the crisis. over the past six years. n

NOSEWEEK June 2016 21 The white Zulu in the heart of the huge black market Did you know that muti is a R6 billion industry? Or that SA imports 300,000 goats annually for ceremonial purposes? By Sue Segar

N KASINOMICS, HIS BOOK ON AFRICAN Msinga in rural Zululand. says Alcock. “We just need to open our informal economies, GG Alcock He explains: “The kota, this town- eyes to the economies, markets and tells the anecdote of how he ship burger, is so popular that John product categories that are under the bumped into a black associate who Dube’s little outlet on its own has 600 formal market radar.” had just bought a beautiful new loaves of unsliced bread delivered each By all accounts, Alcock’s childhood JeepI Grand Cherokee. “Nice car,” com- day, to be cut into 2,400 kotas. His staff – minus electricity, running-water, for- mented GG. “Thanks,” said John Dube peel 80 bags of potatoes to make the mal education and toys – which saw (not his real name), who runs his busi- slap chips. Yep 80 bags of potatoes a him become fluent in Zulu and several ness from a tiny shack/shop in Orlando day, six days a week. That’s 2,400 kotas other South African ethnic languages, East. “I am so happy to have this car, a day at one outlet, making a profit of gave him some unique insights, includ- but yo, I struggled to get it.” around R12,000 a day for the owner – ing marketing to black Africans. Advis- “Ja, they are expensive,” said GG, and there are kota outlets everywhere, ing “white” corporates on how to speak imagining that Dube had saved long even if they are not as big as John’s. Do to their black customers is second na- and hard for his dream car. the maths. It is massive and a seem- ture to him. And, he warns, “some do “No, not the price,” said Dube. “I had ingly invisible business. Yet it’s not in- it so wrong.” An example: “Don’t use a over R500,000 with me when I went to visible, it’s there.” picture of a light bulb to convey a sud- Jeep, but they wouldn’t take my mon- The kota anecdote is one of many den idea or inspiration, as most South ey. Some Fica or such-such thing. They that Alcock uses to demonstrate the Africans who have not enjoyed a de- asked me to fill in a form saying where theme of his latest book and, in fact, cent early education will immediately I got my money. Ja, so I filled in the is the basis for most of the business think you are talking about something form and, where it asked ‘Where did he does as founder of his highly suc- to do with lights or electricity!” the money come from?’ I filled in ‘ama- cessful specialist marketing company, Today Minanawe is the leading Kota’. So the salesman says, ‘What’s a Minanawe. (Zulu for “you and I”.) events and activations marketing kota?’, looking at me like it’s a drug. I “There are invisible markets all agency in the mass informal market explain and he shakes his head. I call around us – in or around which one and has large companies like Unilever the black guy washing the Jeeps. ‘Tshe- can you create entire new industries,” and Tiger tapping into their expertise. la umlungu wakho what is a kota?’ Tell The hugely successful business was re- your white man what is a kota, I say. cently bought out by Publicis, an inter- A kota is a hollowed-out quarter-loaf national network of agencies. of bread – hence the phonetic name Says Alcock: “Too many of us in busi- “kota” – filled with different ingredi- How many people ness are so busy analysing stocks and ents: slap chips, polony slices, fried egg, shares and staring at spreadsheets and atchar, tomato sauce. This is the burg- know that there is Powerpoint presentations in board- er of the Gauteng townships where rooms, that we are ignoring the town- there is a kota outlet on every street, ship economy – with its thousands schoolyard and taxi rank. R44 billion sitting upon thousands of hawkers, spaza “And this white man says, ‘Suka! Go shops, muti sellers, stokvels, taverns away! You can’t make this money from and taxis – which is as fascinating and selling those kota thingies!’ So I had in coffee tins or important. There is unbelievable stuff to ask my friend who has a business happening there. in town to pay for the Jeep and I paid under mattresses in “How many people know that there him. Hayi, you white people, so igno- is R44 billion sitting in coffee tins or rant of the township.” under mattresses in thousands of GG Alcock is also the author of Third thousands of homes homes throughout South Africa; that World Child – Born White, Zulu Bred, there are more than 800,000 stokvels; which describes his childhood as the and that the muti market is a R6bn son of humanitarians Neil and Creina throughout SA? industry? Some 27 million people use Alcock, who raised their two sons in muti – one in two people in our popula- the impoverished and violent area of tion – and more than 133,000 people

22 GG Alcock (left) and images of the target market (above)

are employed in the muti trade. All “And to what extent do we bother to “Wiping the sleep out of our eyes, we this with no marketing involvement! open our eyes to this informally struc- climb out of the taxi at Bree Street in “And, who knew that South Africa tured society, and realise there are downtown Jo’burg and join the huge imports 300,000 goats every year from massive sectors with huge turnovers?” surge of people moving in every direc- SADC countries, worth R500m – for It is with the kota anecdote that Al- tion in organised confusion towards a ceremonial purposes? cock goes on to describe how, as one of million destinations. The smell of oil “The township economy looks infor- South Africa’s top marketing special- and pastry wraps around us like a mal,” says Alcock, “but it is incredibly ists, he and his manager Fats Mulule- London smog and the mamas chatter structured and organised. We don’t see ka, “a huge, affable, charismatic Sowe- to each other and regular customers it, but there is this amazing infrastruc- to boy with the street-sense and urban as, for every 50 metres walked, thou- ture and order to it”. investigation instinct of an elite intel- sands of vetkoek are sold. The massive informal economic mar- ligence agent”, dragged a brand team “Block after block we go, leading ket includes fruit and vegetable ven- from Parmalat into the townships at the marketing and brand managers, dors that operate around every taxi 5am, township breakfast time, to suss who are chewing on yummy gwin- rank, the numerous muti sellers and out the market. Parmalat’s brief to Mi- yas [vetkoek] and pointing excitedly the huge informal fast-food market. nanawe had been to explore the town- like Japanese tourists in the Kruger “To what extent is our economy sus- ship lunchbox market. Alcock knew National Park: ‘There’s another and tained by large informal sectors which that convincing Parmalat would not there and there and there… Bliksem, we do not even quantify?” asks Alcock. be done in a Powerpoint presentation. Fats, do you really think that we can

NOSEWEEK June 2016 23 get cheese slices into all of these?’” Alcock and his team convinced Par- malat to drop their idea of “getting cheese slices into English sandwiches From mud hut to in the township” but rather into the kotas and the vetkoek. They developed a marketing and sampling drive, along with a local campaign aimed at getting people to try their kotas and vetkoeks with a slice of melting cheese inside. mahogany row “It was an instant success… and today Parmalat is the generic quality standard for cheese slices in the thou- sands of kotas sold every day. “Vetkoek and Parmalat becomes a N HIS BOOK KASINOMICS, GG ALCOCK bu and Mchunu tribes in the area. normal order. Parmalat, quickly be- describes his upbringing as one The family lived in a single-room coming the generic term and quality mired in “deep poverty” on the mud hut with no running water or standard for cheeses slices…” banks of the Tugela River. electricity. “We had no toys, no televi- According to Alcock: “It’s all about “My home was a mud hut with sion. Sometimes we had no food. Our knowing what to look for in the infor- noI running water beyond the river kitchen was a gas ring under and mal sector.” that ran below the rocky terrace on an acacia tree and our bath was the The Parmalat story is just one ex- which our hut was built. The river was mighty Tugela River,” he writes. ample of how Africa’s informal market our bath and our laundry. My brother As children, GG and his younger works. Alcock says 13 cheese slices are and I were as barefoot and brown as brother Rauri (called Khonya by the being consumed every second of every the local Zulu kids and we grew up as Zulus) were taught at home by their day. “That’s more than 200 million slic- Zulus, learning the skills of a herds- mother, under a tree. If volunteers es a year, worth R1 billion!” man, a hunter and a warrior. We spoke came to work with their parents, Crei- It makes a lot of strategic sense, he Zulu before we spoke English and felt na would rope them in to help teach says, to enter the third-world informal closer to the Zulus of our valley than to the boys. markets, thanks to the low levels of the white people surrounding our val- “We were really poor and it was competition, massive consumer num- ley who called us kaffirboeties and who terrible. We had malnutrition at one bers and high consumption. “People saw us as revolutionaries, troublemak- stage… and the local doctor said to my must eat, drink, party, dress, clean etc ers and deviants.” father: ‘You can’t have your children even if they are at the lower end of the GG (christened Marc) was born in as malnourished as the people around income spectrum.” Ladysmith in 1968 to anti-apartheid them.’ Once I got typhoid. I was the That’s where his company, Minana- activist parents Neil and Creina first white person in 50 years to get we comes in. “Immersions are our sta- Alcock, who were community workers typhoid. When I arrived at Grey’s Hos- ple diet at Minanawe… and it amazes in rural KwaZulu-Natal. GG was nick- pital, they couldn’t believe it. Then the me how few advertising agencies, mar- named after the Government Garage doctor from Tugela Ferry said, ‘but you keting departments or researchers im- (GG) trucks and bulldozers that rolled don’t know how they live!’” merse themselves in the environments in on the day he was born, to carry Nevertheless, the young GG adored within which they plan to work to at- out forced removals in areas where his parents. He says he followed his tract to convert…” his parents were working – they ran a father everywhere. He recalls how his When they need to understand a community project at a Catholic Mis- mother, a journalist who often reported consumer segment, a buying pattern, sion, and were involved in fighting on Msinga and researched the history or form of behaviour, Minanawe and forced removals. of the Msinga people, “taught us the its clients roll out of their fancy offices Convinced that the rural Zulu peo- magic of the written word in her amaz- “and we immerse ourselves, staying in ple would not take them seriously ing newsletters about the daily strug- shacks, riding taxis, eating tripe and unless they lived among them, the Al- gles of Msinga…” and remembers how chicken heads and washing in a basin cocks moved to dirt-poor Msinga when “the rattle of the typewriter was even- outside the tiny shack with water we GG was seven years old. There they tually even copied by the local robin”. fetched from the tap down the street. started Mdukatshani, a community- The Alcocks, who had the only phone “It remains an uncommon practice based non-profit NGO that opposed in their immediate community, became in our marketing world,” he says apartheid policies and helped facilitate the go-betweens for local residents and Anecdotes abound in the book – rural development. their absent relatives doing migrant such as how Minanawe learnt that The idealist and visionary Neil Al- work in far-off places. Alcock recalls the disinfectant brand Jeyes Fluid is cock dreamed of turning the Msinga how, as the boys got older, his parents perceived by many South Africans to area into a flourishing agricultural were approached by government offi- have supernatural ability to ward off project. His dream suffered a variety of cials “who tried to force us to go to a evil. Against a backdrop of increased setbacks, mainly drought and the con- white school”. competition in the To page 26 tinual conflict between the rival Them- “They said we needed to meet other

24 Left: GG Alcock, his brother Khonya, father Neil and friends; above: fourteen- year-old GG distributing drought relief to local women

ful agency boasts clients such as Uni- lever, Tiger, Adcock Ingram, Kimberly Clarke and Parmalat, among others. In 2014, Alcock published Third World Child, Born White, Zulu Bred, children. My father said, ‘But they the story of his life, and in 2015, he have friends’, and the officials said, published KasiNomics. ‘they have to do sport’. My father said, Last year, he sold Minanawe to the ‘but they do sport!’ My parents fought international agency network Publicis. against this concept that black people A passionate motorcyclist, he lives didn’t matter.” in Kyalami, Johannesburg with his The boys were eventually forced to wife Sue and two horse-mad daugh- go to a “real” high school – as boarders ters, both of whom have Zulu names – and GG hated every second of it. – Consi, 16, and Zandi, 11 – and has a Tragedy struck the family in 1983 grown-up stepson, Josh. when Neil Alcock was killed in the “I will expect lots of lobola for my crossfire of a battle between rival Zulu daughters one of these days,” he jokes. factions. While some people believed His mother still lives in Msinga. “She his death was accidental, GG is con- less soldier to work with the KwaZulu is still strong, like the statue of Paul vinced his father was assassinated in Bureau of Natural Resources for the Kruger. People always expect to see a an operation by apartheid police. remainder of my two-year service.” butch woman when they visit her. She “My dad’s death was a huge thing… After the army, he worked for a few is weatherbeaten, but still very beauti- apart from the way it happened, it anti-apartheid organisations before ful, with long blonde hair. was like the whole world had turned moving to Johannesburg “as a migrant His brother, Khonya, runs the Mdu- against us. My mother really struggled worker” in the early 1990s. Initially katshani Rural Development Project after that. I was suddenly forced to un- employed on a construction site, he which their parents started. Its focus is derstand how many black kids become hooked up with some businessmen on livestock development in the poor- the breadwinners or decision-makers who wanted to instal phone booths in est rural communities of KwaZulu-Na- in a home. How tragic it is. And you are black townships and hostels. He then tal, including Msinga. just not prepared for it. I was the old- met some people from the marketing GG Alcock’s work takes him deep est man [in the family]… and the men company Group Africa, which special- into Africa... and the work keeps com- of the district and the tribe would ask ised in marketing to the (then) inac- ing. “I realise that a poverty-stricken me to make decisions.” cessible township and rural audiences. childhood and the life my parents GG matriculated in 1984 and spent They asked him to join them, which he made for us among equally poor Zulus six months working with his mother did, for a year, becoming a director. was a unique business school, one in on the community project at home, be- In 1997, Alcock established Ingwe which I am able to think and talk like fore being reluctantly conscripted into Communications, an advertising agen- an African and to move confidently and the army. cy specialising in television, radio and casually from the dirt path to the city “After refusing to do township duty face-to-face concepts for the mass black boulevard. More importantly, it has en- and later putting up End Conscrip- market. In 1999, he was bought out of abled me to recruit talent and person- tion Campaign posters in the military Ingwe and he started Minanawe Mar- alities who, like me, have no degrees base and getting into lots of trouble as keting, with the same specialisation in but a passion for and an understand- a result, I was transferred as a hope- the mass market. The highly success- ing of an invisible sector.” n

NOSEWEEK June 2016 25 From page 24 4. African spirituality, the rise of in- dependent churches, muti and spirits; disinfectant industry, his company 5. Language, the complexities of lan- worked on a campaign which capital- guage, iconography and communica- ised on this belief, promising customers tion barriers; that Jeyes Fluid would protect them Neil Alcock said to 6. Dirt street and locavore shopping, from germs “and other bad things”. the matrix of informal sector retail. In another stroke of genius, and his son: “I won’t be “Living and doing business in Afri- drawing on his childhood memories can marketplaces requires an ethos of eating shishebos (stews generally uniquely suited to the informal, to the cooked in a three-legged pot) with his able to send you to invisible, the intangible. As you tread Zulu friends, Alcock-and-Co created those rural pathways, weave between the reality TV series, Unilever’s Your claustrophobic mazes of shacks or Perfect Shishebo Show, aimed at pro- university but I will browse a muti market, remember to: moting Unilever brands such as Rob- l Open your eyes to finding or seeing ertsons spices, Knorr soup and Rajah prepare you well to markets in new invisible sectors; Curry powder. In it, modest South Af- l Seek expert insights into what will rican housewives compete to produce work, knowing that the expert is the the perfect shishebo in 20 minutes. live in Africa” hawker on her crate, the gogo in her Now in its sixth year, it still drives stokvel, the informal trader or a shem- massive sales for Shoprite and the be priest; Knorr, Robertsons and Knorrox brands l Understand and cater for the role which sponsor the show, which has of informal versus formal markets, a much higher audience reach than dressed in western clothes, is suddenly particularly where each represents a MasterChef SA. ‘a coconut’, white on the inside and different shopping occasion; Says Alcock, there are 2.1 million black on the outside. Think about it: a l Create marketing campaigns that people in South Africa active in the in- Jewish guy, working as a stockbroker build enduring, credible and emotive formal economy, accounting for about in New York, still remains Jewish, an presences in communities which are in 28% of the GDP – about R160bn. About Italian guy working at Unilever re- turn shared from lip to lip. one-fifth of all money that changes mains Italian. In Africa, we under esti- l Seek to add value to people’s lives, hands in South Africa is spent in the mate how important culture is within making their daily grind easier, more informal sector, which sells goods val- our society. We see it in how we deal convenient or richer in experience. ued at about R46bn a year. There are with death… Even Patrice Motsepe l Immerse yourself here as readily 100,000 informal stores, of which 70% asks for lobolo for his daughter.” as you would in obtaining an MBA; the are run by non-South Africans and of In a nutshell, says Alcock, there are returns may be higher. which about 70,000 are spazas. They big opportunities for the government l Capture the imagination to create are making profits of between R15,000 and for business to support and grow talkability... creatively share experi- and R25,000 a month. There are also the massive (informal) markets that ences people want to be part of, share, about 500,000 people running “table exist in South Africa and all Africa – marvel at; experiences that they can- top” businesses, making on average be they for goats, muti, transport for not imagine within their life’s parame- R1,500 to R3,000 profit a month. hawkers and foreign traders, kota sell- ters, but which alter those parameters And, he says, don’t forget the infor- ers or stokvels. or entertain and delight.” mal sector’s 150,000 hairdressers, rak- “It needs, first, a realisation that the As young boys, Alcock and his broth- ing in pretty fortunes in their little sa- street is a market, the hole-in-a-wall er often asked their parents why they lons. And take note, they are following spaza is a retail sector, the goat and did not have lives, homes and toys like the trends set by Nollywood, and not chicken in the yard is a farm, smoky the white children they occasionally Hollywood! muti shops are a pharmacy sector, visited when they went to town. It is worth noting that just under a a stokvel is a financial sector and a As a boy he once asked the father he third of all households in South Africa shack is a home. It is in these spaces worshipped what would become of him. spend more than 10% of their income where we need to cast our shadows, Neil Alcock said to his son, “I won’t be on public transport, so shopping closer to be present and aware of the forces able to send you to university but I will to home in informal stores is that much which shape and influence the people prepare you well to live in Africa”. more convenient and cost-effective. and their economies.” “It was hard to understand why Alcock has many lessons to impart: Key among the influences are: my parents would choose this harsh don’t under-estimate the extent of in- 1. Community, (ubuntu) and its man- poverty-stricken lifestyle. It was only ter-township trade; don’t equate pov- ifestation in group social behaviour. later that the value of my upbringing erty with unhappiness; and don’t ever 2. Kasinomics, the formality of in- became clear to me. I could shift from underestimate the power of culture. formality, economic survival and inter one culture to another in a flash. I real- “A big mistake is to confuse west- reliance; ised my whole life had been a prepara- ernising with modernising. There is 3. Social stratification, social groups tion for this exciting marketing career this sense that a black man in a BMW, and classes; I was embarking on, says Alcock.” n

26 Please call me maybe It takes investors with deep pockets to champion the rights of the little folk. By Barry Sergeant

UDGMENT IN THE CONSTITUTIONAL objects of the Bill of Rights.” These few ing a penny or a cupcake, Vodacom re- Court case OF Vodacom vs Ken- words introduced an approach to stat- invented the origins of the service and neth Makate, handed down on 26 utory interpretation entirely different chose to treat Makate like a pest, rais- April, has been applauded as a from that followed under the doctrine ing legal defences, and, of course, hav- victory for the small man, a clas- of supremacy of Parliament. “While ing its day in court. sicJ case of David versus Goliath. technical issues must, of course, be However, as Justice Jafta noted: “It True – and also misleading. This Da- considered, the Constitutional Court – is ironic that in pursuit of its constitu- vid would never have reached South and any other relevant entity, as men- tional right, Vodacom invoked legisla- Africa’s judicial battlefield had he not tioned by section 39 (2) – can apply a tion from the height of the apartheid had the backing of some serious finan- far broader interpretation.” era, to prevent the applicant from ex- cial musclemen. It was Makate, a jun- In this case, Justice Chris Jafta ercising the same right.” In applying ior Vodacom employee at the time, who found that “The stance taken by Voda- the precepts of the Bill of Rights to the conceived the Please Call Me service com in this litigation is unfortunate.” Makate case, the Constitutional Court back in 2000 – an app that has subse- An understatement if ever there was found that there was an agreement. It quently raked in billions for Vodacom, one. Guided by the Constitution, the also found that there was no “debt” and and other mobile phone operators, here court embraced the notion that if you that prescription legislation therefore and abroad. All Makate asked was for have a fair case, the court is there to did not apply. On the prescription is- a slice of the cake, something he had assist you, where it can. When the facts sue, thus, Vodacom scored an own-goal. negotiated upfront with his seniors at of the Makate case – which are really The court ordered Vodacom to nego- Vodacom when he introduced them to quite simple – are considered in terms tiate a settlement with Makate within his idea. of the Bill of Rights (sections seven to 30 days of judgment being handed Vodacom, while initially celebrating 39 of the Constitution), it is arguable down. It is apparent that Makate had Makate’s idea at staff meetings, was that Vodacom could, and should, have always had a figure of 15% – presum- quick to reinvent the narrative and applied basic rights such as equity, ably of turnover – in his mind. If so, shamelessly attributed the idea to its fairness, transparency, and so on, in its then he could be in for compensation long-standing CEO, Alan Knott-Craig. approach to sorting Makate out. that runs into many hundreds of mil- In due course, Makate sued – and Despite having heaped praise on lions of rand. lost, on the basis that his seniors had Makate for the rather brilliant idea, The Vodacom case is significant to not been authorised to strike a deal when payday came, instead of tender- the extent that it exemplifies the ruth- with him on behalf of the company, and less, disingenuous conduct of a large even if they had been, his claim had corporate and a shockingly dishonest prescribed (that is, he took too long to CEO. For many of us, Vodacom’s at- sue). The trial court refused Makate titude to Makate –“let’s squash this leave to appeal, as did the Supreme inconvenient bug”– is the rule, not the Court of Appeal. exception. More significant still, is that When he approached the Constitu- Vodacom’s anticipated outcome of the tional Court, Makate won on all bases. case was stunningly reversed at the Although that court was somewhat highest level. split on the technical points of estoppel As was to be expected, Vodacom and ostensible authority, there was no hired a formidable legal team to fight impact on the outcome. The judgment Makate’s case, including four advo- runs to 92 pages. Much of Makate’s cates (three seniors), led by the cele- dramatic reversal of fortunes can be brated Stephanus “Fanie” Cilliers. It is ascribed to section 39 (2) of the Con- crucial to note that Makate’s legal rep- stitution, quoted here verbatim: “When resentation was more than up to the interpreting any legislation, and when Vodacom offensive – solely, it can be developing the common law or custom- argued, because it was financed by ary law, every court, tribunal or forum Sterling Rand. Since 2004, in the wake must promote the spirit, purport and Alan Knott-Craig of the National Potato case, “cham-

NOSEWEEK June 2016 27 is perhaps what Vodacom had been EW CASES BETTER DEMONSTRATE THE relying on. The legal costs in Makate’s great value of DNA-matching in case (which started 16 years ago) are crime detection than this one: in not known, but can be estimated in the past month, Western Cape the tens of millions. police investigating a string Sterling Rand agreed with Makate ofF rape and murder cases announced that he would not be paying any le- they had arrested a suspect whom gal costs; in the outcome, the Consti- they identified as the perpetrator in tutional Court ordered that Vodacom several of them – based on DNA speci- pay legal costs for all the parties in mens retrieved from the victims . the case, but restricted to the costs In four of the cases where the DNA of two counsel. The highly unusual samples matched the now-arrested facts of the Makate case were strong suspect, police had previously arrest- enough to attract an investor who ed other suspects on the basis of re- Kenneth Makate risked financing legal costs running ports from the community. They were into millions, with the prospect of zero almost immediately released for lack return. of evidence. perty”, which is the funding/investing One case that may be compared in The fact that they are now provably in someone else’s case for a stake in this context is the Randgold minori- innocent is, tragically, of no account to the outcome, was in effect legalised in ties saga, where Investec, a bank, is these men: they were promptly mur- South Africa. There are specific rules being sued for hundreds of millions of dered by angry mobs. for lawyers, who can agree to waive up- rand. It is cases like these that prompt front costs, in return for double normal Investec argues strenuously, under people to herald DNA matching as fees, or 25% of the final award, if any, equally shady circumstances, that science’s ultimate gift to crime detec- whichever is less. there is absolutely no merit in the tion. But such over-enthusiasm brings The obvious “gap in the market” is matter, but it has spent tens of mil- its own perils. Daily, the gullible pub- created by the fact that, under normal lions of rand on funding lawyers who lic are bombarded with small- screen circumstances, the courts in South Af- have for years been doing whatever trash in the form of forensic pro- rica are inaccessible to the vast major- it takes to keep the main case out of grammes with ever-more gruesome ity of citizens because of the cost. With- court. images of the post mortem room. Gen- out an “investor” with extremely deep Those who need reminding should erally, a white coated individual (often pockets, their lordships would never re-read nose146 (Investec in court), covered in tattoos) takes one look at have seen or heard of Makate, which nose197&199. n the minutest piece of evidence, places the same into a shiny new machine/in- strument and, hey presto, the answer pops out and the culprit is tracked down and arrested. Much of forensic “science” that was the mainstay of police work has come under intense scrutiny since the pub- lication by the US National Academy of Science (NAS) of a report titled “Strengthening Forensic Science in the United States. The Path Forward.” This report was in response to the so- called Mayfield case, where senior FBI fingerprint experts, in their enthusi- asm to assist their Spanish colleagues in identifyling those responsible for the Madrid train bombings in 2004, wrongly matched the fingerprint on a plastic bag containing detona- tors found lying near Madrid station, with a fingerprint on the FBI’s data- base: that of an Oregon lawyer named Brandon Mayfield. On the basis of that fingerprint identification, Mayfield was arrested and only released when the Spanish “They either have more taste than money or more money police, by means of basic, old-fash- than taste, but I can never remember which.” ioned detective work, found the real

28 NCIS – South Africa style DNA testing not a magical cure-all for the problems of crime detection. By Dr David Klatzow owner of the fingerprint – in Spain. Re-inspection of the fingerprints, showed that the two were, in fact, a very poor match: the match was only in the prejudiced eyes of the analyst, whose sight had in all probability been distorted by the knowledge that May- field had converted to Islam and was married to an Egyptian woman. To compound the embarrassment of the fingerprint community, Itiel Dror, a cognitive psychologist in London, sent sets of fingerprints off to several senior fingerprint experts. He gave the fingerprints a slightly misleading con- textual colour by labelling them falsely as coming from the by-now-notorious Mayfield case. What Dror did not tell have been well advised to have looked was shown that the dead suspect had them was that these were prints taken at his passport before coming to any worked in construction, building the from case files in which they had them- conclusions: from it, they would have very chase some years earlier and selves given expert evidence five years learned that he had not left the shores had clearly deposited quantities of his earlier. Three of the five experts could of his native America for 13 years – DNA within the structure, which had not match the prints despite having and would have been less inclined to been transferred to the deceased as matched them five years previously. make such asses of themselves. she fell down the chase. Had this man The issue of cognitive bias had well Let me illustrate the point with two still been alive, he would have had a and truly raised its ugly head. more cases involving the matching of tough time proving his innocence. His DNA technology was supposed to DNA samples. In 2009, a murder took previous conviction and his knowledge get away from all this subjective stuff. place in a post-graduate laboratory of this particular structure would have I am not so sure. Send a mixed DNA at Yale. Tragically, on what was to be counted strongly against him. sample to ten different labs and cer- her wedding day, a student’s body was Similarly, a man who was arrested tainly there will not be a single answer. found in a chase behind the laboratory on suspicion of a felony in the USA Ultimately a subjective human has to wall. Her body had snagged on a pipe had his DNA taken and submitted to make a judgement call. within the chase. Significant quanti- the national database. Although he Fingerprint matching having lost its ties of DNA – not her own – were found was acquitted of the crime, his DNA certainty, DNA has replaced it as the on the waistband of her underwear. matched a sample taken in a rape case latest catch-all technique in the ar- On submitting the DNA results to a some ten years before. He was duly ar- moury of forensic science. The danger computerised search of the police da- rested, charged and incarcerated. Were lies in the enthusiasm with which it is tabase, a match was found to a known it not for the fact that the rape victim touted as the ultimate crime-solving and convicted offender who lived in the was alive, and knew him well, things tool. It, too, is not infallible. The advent area. Case closed. would have gone really badly for this of DNA technology has undoubtedly Unfortunately for the authorities, suspect. The complainant was able to taken forensic identification out of the the known offender they had identified tell the police that she had been in a Stone Age into an era of much more as the probable murderer had the most relationship with this poor fellow at certainty. But context remains vital perfect alibi: he had died two years the time of the rape and that his DNA in interpreting any forensic evidence, earlier. Alibis do not get much better was to be expected as they had consen- DNA included. than that. sual sexual relations at the time. And In the Mayfield case, the FBI would On more thorough investigation, it that he was not her rapist.

NOSEWEEK June 2016 29 Foiled again

Those delectable and healthy-looking roasted vegetables may not be as good for you as they appear. By Dr Ghada Bassioni

SING ALUMINIUM when they’re scrubbed pots to cook in and shiny, but a matt isn’t a bad thing, base is better for your but wrapping food and your health. food in foil and Cooking your food in cookingU it in the oven is foil is a different story. problematic. This is par- Aluminium foil is dis- ticularly true if the food posable and you will you’re cooking is acidic or not be able to create spicy and you’re cooking that inert layer prior it at a high temperature. to using it. My research The reason? These condi- found that the migra- tions lead to aluminium tion of aluminium into leaching into the food at food during the cooking levels that aren’t healthy. process of food wrapped Minimal exposure to in aluminium foil is aluminium is not a prob- above the permissible lem: the World Health limit set by the World Organisation (WHO) Health Organisation. has established a safe Aluminium is signifi- daily intake of 40mg per cantly more likely to kilogram of body weight per day. So ined the community of old people with leach into food, and at higher levels, for a person who weighs 60kg the al- Alzheimer’s and concluded that it is a in acidic and liquid food solutions like lowable intake would be 2,400mg. modern disease that’s developed from lemon and tomato juice than in those But most people ingest far more altered living conditions associated containing alcohol or salt. than this suggested safe daily intake. with society’s industrialisation. These Leaching levels climb even more Aluminium is present in mealies, yel- conditions may include high levels of when spice is added to food that’s low cheese, salt, herbs, spices and aluminium in daily life. cooked in aluminium foil. Anything tea. It’s used in cooking utensils, as Aluminium poses other health risks, acidic sparks a particularly aggres- described above, as well as in phar- too. Studies have suggested that high sive process that dissolves layers of macological agents like antacids and aluminium intake may be harmful to aluminium into food. antiperspirants. Aluminium sulfate, some patients with bone diseases or This research suggests that alu- which is derived from aluminium, is renal impairment. It also reduces the minium foil should not be used for used as a coagulent during the purifi- growth rate of human brain cells. cooking. Instead, we’d recommend us- cation process for drinking water. Pots and other cookware tend to be ing glassware or porcelain when pre- Scientists are exploring whether oxidised, providing an inert layer that paring baked dishes. It’s safe to wrap over-exposure to aluminium may be prevents the aluminium from leach- cold food in foil, though not for long posing threats to human health. For ing into food. The problem is that stretches of time. – The Conversation instance, high concentrations of alu- when you scrub your pots after cook- l Dr Ghada Bassioni is Associate minium have been detected in the ing, that layer is worn away and the Professor and Head of the Chemistry brain tissue of patients with Alzhei- aluminium can seep into your food. Division at the Faculty of Engineering, mer’s disease. Scientists have exam Leave them matt. They may look nicer Ain Shams University, Cairo. n

30 This book is a razor-sharp poke at a regime whose only real purpose … is wealth accumulation for the leadership and its friends, without regard for what may happen to everyone else.

– Brooks Spector, The Daily Maverick

All new noseweek subscribers will receive a FREE copy of Goodnight Zzzuma.

AVAILABLE AT ALL GOOD BOOKSTORES.

NOSEWEEK June 2016 31 Africa Confidential

President Filipe Nyusi

Secret security debts devastate Mozambique economy

S MOZAMBIQUE’S MOUNTAIN OF et support funds and grants. Debt-to- panies – Empresa Moçambicana de dubious debts tops US$2 bil- GDP levels will soon hit 100% and the Atum (Ematum), Proindicus and lion, there are growing calls metical stands at 55 to the US dollar, Mozambique Asset Management for a forensic audit and an in- and is still heading south. Foreign ex- (MAM) – was the culmination of this ternational police probe into change reserves are critically low. programme. The companies, which theA officials and entities involved in Sources close to Rosário Fernandes, received the totality of the $2 billion this massive fraud. ex-head of the revenue authority, the now owed by the state, were mainly The deals and loans arranged un- Autoridade Tributária de Moçam- in the field of maritime security, even der former President Armando Gue- bique, have told AC of systematic though it was the intelligence and se- buza, and largely kept secret under diversions of taxes straight into the curity services that provided the man- his successor Filipe Nyusi, mean that pockets of the Frelimo elite, especially agement. They bypassed parliament, Mozambicans now face the prospect of in the later years of President Gue- illegally, and defence procurement, ef- penury under the yoke of debt repay- buza’s term of office, when he exer- fectively privatising, as one commen- ments on an epic scale. cised enormous patronage. Massively tator put it, national security while The role of the banks involved in inflated contracts were commonplace. lining the pockets of the elite into the the deals, whose terms were far above The latest to emerge is the extrava- bargain. market rates, is also attracting regula- gant, nearly complete, Bank of Mo- Yet the ill-equipped companies could tory interest and criticism. It is clear zambique building in Maputo, which not cope and quickly collapsed. Ema- that the secret lending was undertak- boasts a helicopter landing pad on the tum, which originally claimed to be en by the country’s state security and roof. Originally estimated to cost $90 focused on tuna fishing, is no longer intelligence services, and Africa Con- million, the final cost is reckoned to operating its few licensed vessels be- fidential (AC) has now revealed yet be at least $300m, with kickbacks and cause it cannot pay salaries. The three more detail of the astonishing malfea- “commissions” accounting for the cost companies also own VIPAS (VIP and sance at the heart of the state and who inflation, say Frelimo sources. assets security), which was created in was responsible. Guebuza engaged in an ultimately February this year to supply protec- The International Monetary Fund doomed attempt to extend his term of tion services to embassies. It’s unclear (IMF) leads an international financial office, which ended in October 2014, what the outlook is for the fledgling community aghast at the enormity of and this partly explains the extraor- VIPAS, but it is hard to imagine Ma- the deceptions of leaders of the govern- dinary scale of his liberality towards puto’s diplomats being keen. The only ing Frente de Libertação de Moçam- loyalists, sources formerly close to public face common to all the compa- bique (Frelimo) and is still pondering him have said. The schemes became nies is their chief executive, António its response. It is sure to be severe and increasingly brazen, and the crea- Carlos do Rosário, a previously little- donors have already suspended budg- tion in 2013 and 2014 of three com- known director of Serviço de Infor-

32 mação e Segurança do Estado (SISE, Frelimo is constitutionally incapable thorities as being the military com- Mozambique’s intelligence service). of pursuing the generals, spies, and ponent of Ematum is actually Proin- Behind him stand senior Frelimo poli- party cadres who won the equivalent dicus, as AC can see from the Credit ticians, and defence and security per- of lottery jackpots. The wealth of many Suisse feasibility study document pro- sonnel. Do Rosário is the shop window, of them – in the form of lavish enter- duced in February 2013. This means but he answers to the current SISE tainments, luxury cars, and stunning the Ematum money allocated to the Director, Grégorio Leão José, who was homes – is on conspicuous display in Defence budget was probably used for appointed by Guebuza in 2005, AC Mozambique’s cities. For now, Nyusi is other purposes. Indeed, the total value sources say. Leão’s wife, Ângela Diniz taking the blame. Prime Minister Car- of Ematum’s fishing assets cannot be Buque Leão, is in business with Do los Agostinho do Rosário even spoke worth more than $100m – probably Rosário, a trusted Guebuza loyalist. recently of the Nyusi administration far less – so the unexplained sum may Many have often wondered how as a “transition government”, in tacit reach over $700m. (AC Vol 56 No 14). President Nyusi, who was Defence acknowledgement of the long shadow But since the three companies effec- Minister at the time, could have re- Guebuza casts. tively own each other, it is harder to mained uninvolved – which was the In the absence of action by the gov- trace money and assets, which can be public impression as the Ematum ernment – although the Attorney- easily moved in an opaque manner. scandal broke. However, the CEO of General’s office has announced an in- The authorities, including António the company supplying the patrol vestigation into the illegalities – the Carlos do Rosário and senior military boats, Iskandar Safa, commented that United States may take an interest, personnel, are now trying to give the the parent company of his shipyard, since it has de facto jurisdiction given impression that large amounts of de- Constructions mécaniques de Nor- the US dollar denomination of the fence equipment were purchased. But mandie (CMN), had struck other deals debt. It is Mozambique’s largest bilat- security sources on the ground see with Mozambique. One of them was eral donor, at $400m of aid per year, little evidence of that, even though with Proindicus, one of the previously which is now under what we hear will Mozambique’s defence and security secret massive debt-holders, which is be “very tough” review. The whiff of a spending now equates to around a half-owned by the Defence Ministry- multi-billion-dollar arms deal involv- quarter of the national budget. As a run company Monte Binga. Commen- ing Russia could easily pique Ameri- percentage of gross domestic product, tators have remarked it would have can interest. Given the secretiveness the amount allocated to defence is been impossible for Nyusi not to have to date, it would hardly be surprising among the highest in the world, at a been aware of deals of such magni- if more diversions, and more secret staggering 5%. But it has little to show tude. This could well explain his reluc- loans, turned up. Following talks with for its money, and a more probable sce- tance to move against his predecessor the IMF in Washington, ending on 21 nario is that the money enriched indi- over the Ematum bonds and similar April, the Prime Minister confirmed viduals. opaque debts. the additional loans: $622m to Proin- Yet more debt may be in the pipe- Some Frelimo members who are op- dicus (which was topped up to $900m, line. AC has learned that China is be- posed to Guebuza nonetheless have lit- although the extra line of credit was lieved to have made as yet undisclosed tle sympathy for Nyusi. Veteran senior not activated) and $535m to Mozam- loans to SISE, which has undergone member Sérgio Castel Branco da Silva bique Asset Management (MAM). significant expansion in recent years. Vieira said, “I, and my children and Of Proindicus’s $622m, AC has SISE is part of the Interior Ministry. grandchildren, are not going to pay learned from senior banking sources Mozambican independent newspa- the debt of this robbery”. He added that only $311m is shown to have per CanalMoz recently reported that that Nyusi “humiliated himself” dur- gone to the company. The other half Chinese company ZTE provided the ing his recent visits to Germany and may have been diverted to other pro- intelligence service with an extensive Brussels, where he tried to cling to do- jects and possibly into private hands. telephone surveillance suite in a deal nor support. German Chancellor An- The same suspicions apply to MAM, which netted Guebuza’s son Mussum- gela Merkel asked Nyusi when he met which has not explained its procure- buluko an 8% commission, equivalent her in Berlin on 19 April, “Where is the ment plans. The company is meant to to $11m. money?” and also, “Are you in charge?”, operate port facilities for Proindicus, Security sources also report two according to a source in Nyusi’s del- including in Pemba – and to compen- new training centres outside Ma- egation – which also included elusive sate General Albertio Chipande for be- puto, where Israelis are also assist- SISE head Leão. Germany supplied ing cut out of the original Pemba deal, ing. Possibly, the sheer level of abuse radar equipment for the maritime se- AC is told. in the system caused the Ministry curity programme, as did France and Finally, Mozambique confessed to of Finance to lose track of Mozam- Switzerland. funders that it was holding other state- bique’s debts. But three years is a Merkel’s questions go to the heart backed loans to the Ministry of the In- long time in which to conceal $2bn of the scandal, as the heaviness of the terior. They have refused to name the worth of debt, and the Prime Minis- external debt is obscuring the ques- bilateral lender, or detail the purpose ter beggars the belief of many in call- tion of where the cash ended up. There of the loans. They total $221.4m and ing it an “error”. “Cover-up” is widely is widespread fear that, with its in- were obtained between 2009 and 2014. thought a more accurate description. – sistence on unity at all costs and its It is clear that the maritime security Copyright © Africa Confidential 2016; long record running a one-party state, project previously claimed by the au- www.africa-confidential.com

NOSEWEEK June 2016 33 Books LEN ASHTON

Not ideal. A cautionary tale

HE CYNICAL ROMANS REMARKED, “Paul”, said sweetly that “all this could be perhaps with amusement, that sorted out” if Cajee fingered two men who novelties popped up constantly from were accused of initiating a mutiny. darkest Africa. Fordsburg Fighter It seemed that Modise suspected the pair would have confounded them. This of threatening his position as senior com- memoireT of the sufferings of a group of ide- mander, at a time when there was much alistic uMkhonto we Sizwe freedom fighters FORDSBURG FIGHTER: jockeying for position. The two were well conjures a 1960s microcosm of the schisms THE JOURNEY OF AN MK known in the movement in South Africa that bedevil South Africa to this day. So VOLUNTEER and held top positions in the ANC before nothing new then. By Amin Cajee it was banned. Both were among early re- Same old cultural and ethnic prejudices, (As told to Terry Bell) cruits to MK and had been sent to China same old corruption, inflicted on a group of (Face2Face) for training. But now China and the ANC’s young men who had volunteered to fight main backer, the Soviet Union, were at log- for democratic freedom. Cajee’s tale is gerheads. The Russians had embarked on moving in its depiction of the hopeful in- a policy of peaceful co-existence with the nocence of youths who left their families United States, which the Chinese opposed. to take up arms against the apartheid re- The South African Communist Party gime. And devastating in its cool recollec- (SACP) took the Moscow line. tion of selfish and wasteful incompetence This shameful mock trial was probably on the part of leaders. the culminating disillusionment for the The central drama that motivates the young Cajee and his friends. Their naïve- telling is a trumped up “hearing” before té had been abused almost from the day officers in a Tanzanian bush camp, where they fled South Africa in a noble cause. In some 400 young people were supposedly a series of confusions that would almost be being trained to take up arms and liberate laughable if the young volunteers had not their homeland. suffered so much, they were shunted from The accusations of treason and betrayal pillar to post without guidance, comfort or all seem embarrassingly familiar. Cajee is even, sometimes, food and shelter. The ex- threatened with bloody death if he fails to ile trail dragged Cajee from Czechoslova- point the finger at a chosen soldier victim. kia, to Kongwa Camp in Tanzania, to Eng- And we do mean bloody: “My sentence, I land, and seemingly all ports north. was told, could mean being taken to a In an afterword, Terry Bell notes: Many game park where I would be left for wild of the MK volunteers were young, in their animals to tear me to bits”. teens and early twenties, most with little It was at this point that Cajee realised experience of the world outside their rural he had been thrust into a bitter power villages or urban townships. A few, such struggle based on language lines – a bat- as 21-year-old Chris Hani, were well-edu- tle between Xhosa speakers from the Cape cated and they were quickly absorbed into and Zulu speakers from Natal. Although the ranks of the SACP and catapulted into the senior “judge” Joe Modise (he of Arms leadership roles. Deal and other shenanigans notoriety) Cajee was not among the elect. Home- was a Setswana speaker, he had allied sick though he was for his beloved Fords- himself with members of what was called burg suburb in Johannesburg, he survived the “Cape group”. In a previous encoun- much danger and eventually ended up liv- ter, Modise had ordered Cajee to clean his ing in London, a successful businessman boots. Comrade Cajee declined the honour. with a large family. Interestingly, Chris Hani, among the His truths are bravely stated. Fordsburg inquisitors, also spoke menacingly of con- Fighter should be a salutary textbook for sequences. Then another officer, named militants. n

34 Down and Out ANNE SUSSKIND

Problems, problems. Smoke and mirrors

T’S BEEN DUBBED THE ELECTION Firth’s midge orchid and the myr- of the shapeless against the tle orchid. faceless: Prime Minister Mal- Australian Conservation Foun- colm Turnbull versus opposi- dation campaigner Jess Abra- tion leader Bill Shorten. The hams says it’s all due to habitat dateI has finally been confirmed for loss and commercial activities. 2 July and, for want of an inspir- The ghost bat, for example, which ing opposition leader, the disap- has joined the large-eared horse- pointing incumbent Turnbull looks shoe bat and Semon’s leaf-nosed set to win. He’s shapeless because, bat as endangered, all live in the despite high hopes post-Tony Ab- Melody Rocks near Cooktown on bott’s disastrous stint as PM, the Cape York Peninsula, where a man with oodles of charm and even mining proposal is being consid- more money appears to be a dud – Shapeless: PM Turnbull Faceless: Bill Shorten ered by the Queensland state having abandoned one progressive government. The limestone karst reform after another. In his election pollution is apparently so bad that a formations and cave systems are announcement speech he did not even traffic policeman only makes it to age key habitats. mention climate change once, harping 43 on average because of exposure. People aren’t doing too well either only on fiscal management. There are several flavours, including under Aussie care: saying he couldn’t And the most heroic thing the cha- Bondi and the Blue Mountains, with take it anymore, 23-year-old Iranian, risma-less Shorten has done is report- a sea tang and eucalyptus traces re- Omid Masoumali, has died by self- edly lose 15kg to be more appealing to spectively. At $18.80 a can, it can pro- immolating after three years in an voters. Shorten was one of the “face- vide about 130 deep breaths, a small Australian-run offshore detention less” backroom plotters against two percentage of the average 23,000 centre on Nauru. Masoumali had been previous Labour Prime Ministers in breathed by most people daily. recognised as a refugee: he was judged previous coups. Mobile phone use, it seems, does not to have a “well-founded fear of perse- One of the few welcome announce- cause brain cancer. Phew. Comment- cution” in his homeland. And Somali ments in the pre-election budget (not ing on the results of a study of 19,858 refugee Hodan Yasi is in hospital with least because it’s easy for a non-econo- men and 14,222 women diagnosed burns to 70% of her body after setting mist to understand) is that the price of with brain cancer in Australia be- herself alight in a detention centre for cigarettes, now AU$25 (R275) a pack tween 1982-2012, and national mobile boat arrivals. of 25, will increase by 12% annually phone usage data from 1987-2012, If there were a neighbourhood watch from mid-2017, for four years, to about Emeritus Professor of Public Health group around here, Australia would $41 by 2020, by which time 75% of the at the University of Sydney, Simon be the neighbour they’d be watching, cost will be made up by tax. Combined Chapman, said: “...we are seeing no writes Sydney Morning Herald col- with plain packaging and strenuous rise in the incidence of brain cancer umnist Tim Dick. Rich, large, rude and anti-smoking campaigns, high prices against the background rate”. loud, its government has managed to have helped drive smoking rates in Australia, which is reputed to have infuriate most nearby countries in one Australia down to one-in-five. It’s a the worst mammal extinction rate in way or other. “Some have to deal with real incentive to give up, as present the world – many of which are not the consequences of our peculiar, un- company can attest, the other reason found anywhere else – has 49 newly justified obsessions with refugees and that her teenage son has been so thor- listed critically endangered, endan- dole bludgers... Australia has behaved oughly schooled in the ills of smok- gered and vulnerable species. Among scandalously towards East Timor; ing that he took to flushing her packs them are the three-toed snake-tooth selfishly towards New Zealand; high- down the toilet. skink, the bar-tailed godwit, the swift handedly towards its former colony, Air too, is increasingly valuable. En- parrot, the ghost bat, the brush-tailed Papua New Guinea. It acts towards trepreneurs are selling canned Aus- bettong, the carpentarian grasswren tiny Nauru as if it is a shameful ille- tralian air, with reports of Chinese and orchids whose names can make gitimate child, to be paid off to do our personal shoppers snapping up the you dream, such as the blue star dirty work, running a refugee gulag product for their clients. Beijing air sun orchid, the copper beard orchid, hidden from view.” n

NOSEWEEK June 2016 35 Letter from Umjindi BHEKI MASHILE

F*** crisis. TAC tactics urgent

ATVOL, I CALL MY FRIEND MARLIES Why call me? Power of the media. “No, just a caring friend and some- Liebenberg, a passionate sup- And because of this-here nose having one who knows the shit conditions porter of the SPCA here in published the story on the botched you have to work under.” He put a Barberton. I bitch, I yell and circumcision that resulted in the am- smile on his face and got on the phone. I ask her: “With all the money putation of a young boy’s penis. Law- Roughly 20 minutes later the am- Gthat has been injected thus far, how the yers expect a settlement soon in the bulance arrived. Now here is another, hell can such things still be happening? boy’s R10 million damages claim. what-the-f*** moment: the good doc- No vehicles, workers hiding and only This time round, the patient had tor is looking for the nurse who is one professional to render service.” She been viciously assaulted late on a Fri- supposed to accompany the patient to says, “Bheki there is nothing we can do, day night, resulting in his head swell- Witbank. She is nowhere to be found. everyone is crying about this problem ing like small beach ball and blood Another staff nurse volunteers to go – black, white, locally and nationally”. streaming from his eyes. The good instead and informs the doctor and us And no, this was not about the SPCA doctor – and I really mean good doc- that the nurse is hiding in the kitchen shelter but rather what I had experi- tor, doing his residency – was so con- because she does not feel like going all enced at Barberton General Hospital. cerned about the victim’s injuries he the way to Witbank. And get this: that On this subject I cannot subscribe to wanted him to be taken for a CT scan. hiding-in-the-kitchen nurse happens the rapper’s call to “throw your hands But there were only two ambulances to be a matron! Yes, a f***ing an ma- in the air and wave them like you just available serving the province – yes, tron. We have heard too many stories don’t care”. Instead, our public health the whole bloody Province of Mpuma- about uncaring nurses and the ques- system needs the slogan that screams langa. And, wouldn’t you know it, one tion is: Why are they allowed to con- out “make some noise”. of them had broken down, out of order. tinue working at our hospitals? Though we have been making some The overwhelmed good doctor was There are three major problems noise through the media about the understandably frustrated because highlighted by this scenario. First, way-too-many scary stories coming there was no CT scanner at Barberton with millions of rands being spent out of our hospitals, we are clearly not General so he had to send this criti- on the initial phase of the National being loud enough because it seems cally ill patient roughly 100km away Health Insurance (NHI) scheme, why we are not being heard. We need a to Witbank. The drivers of the one am- does a hospital such as Barberton much louder public outcry about the bulance were not sure what time they General, one of the country’s premier state of our public health system. Bet- could make it to Barberton. training hospitals, not have a CT ter still, a public attack in the tradi- To make matters worse for the good scanner? Two: how could something tion of the Treatment Action Cam- doctor, he is the only doctor on duty as crucial as ambulances not be work- paign (TAC). If only this organisation on a bloody Saturday morning. As you ing? Lastly, how could there be only had realised that it could contribute can imagine, the patient’s family is on one doctor on duty at a f***ing public to the bigger picture of public health his case about the ambulance and all hospital? We know the country has a shortcomings and, after it succeeded the while more patients are pouring shortage of doctors, but surely there in pushing for the roll-out of ARVs, it in to the hospital. are private doctors on health’s books? should have expanded its focus. God This-here journo sees an opportu- What, no-one in management saw fit knows we could use the oomph! nity to approach the doc, but I decide to call one of these guys and ask them And just as the TAC pointed out that the guy is already overwhelmed to come in to help the good doctor? that lives were being lost needlessly so I say to myself: approach him with Now, to the kitchen-hiding matron. due to the failure to roll out ARVs, so respect and take off your journal- It is high time the Department of too do lives continue to be lost or (to ism cap. Wise decision, because as I Health set up a hotline for complaints be diplomatic) lives are at risk, due to approach the doc and question him so the public can expose the likes of easily avoidable shortcomings at our about the mugging victim he stops me this matron. hospitals. We cannot throw our hands in my tracks and says: “Please, I don’t To the young Good Doctor: I take my in the air and act like we don’t care. need any more harassment from you hat off to you sir, likewise to all the That was driven home to me when relatives, I am doing my best”. I say, other doctors who have to put up with in mid-April I received a call from “Doc I understand, and I will ask the the shit at our public health facilities, some friends who begged me to meet family to step outside. In the mean- and certainly not forgetting the likes them at Barberton General and inter- time, can you please try the ambu- of the staff nurse who volunteered for vene to help get the hospital to sum- lance again?” the Witbank trip. Thanks to them the mon an ambulance to take their rela- The doc says, “You are not family? victim is recovering. Now, TAC, please tive to another hospital for a CT scan. Who are you, a counsellor or what?” guys, we need you back. n

36 Last Word HAROLD STRACHAN

F*** crisis. TAC tactics urgent Floating. Evolution, revolution

O I’M POTTERING AROUND IN THE front garden when a stupid woman with two stupid disciples comes to my gate to confront me with a denunciation of Darwin- ism.S Why me f’chrissakes? Why Dar- win? I weave my fingers about my ears to suggest I’m stone deaf and loony and go indoors for a cuppa. Such stupid de- bate continues after 157 years; comes to mind an Honorary Doctor game ranger name of Ivan Palaver who on Darwin’s anniversary in 1959 set out to swim backwards across Lake Saint Lucia in Zululand midst hordes of hippos and blood-crazed crocodiles to disprove that charlatan’s mere theory. The Hon Doc would now give a dem- onstration of evolution according to the she studied the leaves, the Hon Doc’s of advantage for better surviving they laws not of Natural Selection but of the palms, his navel, toenails and tochis just get sort of diluted in the species by Shaman Jung. and announced that Mother Nature other mutations until they are no more. In the parking lot of the Mtubatuba had declared him Jungian Ambassador By Shaman Jung’s theory evolution is Bazaar (no supermarkets in those to Planet Earth. Starting now. purposive. He got it from Mother N days, hey) a certain Madame Enbon- Mother Nature is like Mrs God, you herself, straight. She makes mutations point (pron. Onbonpong) had a gypsy should understand. She sits at His because they are moral and will pretty tent with stars and moons all over and right hand all done up in white sheets. soon be useful according to her design. Saturn with rings, also a small paraffin It’s okay for Michelangelo’s Adam to If you lie on your back in Lake St stove inside for making tea so she could float around heaven all starkers and Lucia and hold your arms against your read folks’ tea leaves, and one day she flash his tiny little piepie, but God you sides and pull the water towards your stuck upon a pole at this bazaar in Zu- will notice doesn’t display His, if indeed bum with your heels you will move luland a photograph from the new ob- He needs one, and as for His missus re- backwards, if a little slowly (take note servatory on top of a volcano in Hawaii, vealing all, well God forbid; they wear that one cannot heel-swim backwards clearly showing a 30-mile human face these old-style bioscope-style curtains, belly-down because one’s knees bend on Mars which could only have been see, which billow about in the heavenly the wrong way). Paddling with the constructed as a signal to Earth that winds. When Mother N billows Her back of your hands will help some- somebody was there with a message. curtains in your direction and gives what, of course, but this would make The Hon Doc buying his bananas in- you the green light you’re in business, you directionally unstable and anyway stantly recognised this as a portrait of boet. Hon Doc there and then decides you might need your hands for towing Jung, and the message probably was to construct a great big self-portrait a raft with all your clobber on board that he’d run out of fuel for another with big white stones up in the Natal like Homo/Homa sapiens crossing the Earth-journey. Nobody had known Midlands where Shaman Jung will see Straits of Hormuz out of Africa 150,000 whence he’d arrived on his last sojourn it. The project is to make a great big years ago on her/his historic global mi- nor whither he’d departed. And here it thing like Mount Rushmore with those gration to improve peoplekind. was, here was the answer! All a-trem- US presidents’ portraits in stone, only By Darwin’s reckoning, of course, this ble with this perception Hon Doc en- here they will be of Hon Doc, flat on ability of heel-swimming should æons tered the gypsy tent. Mme Onbonpong the ground, and the place will be called ago have been lost. But recently an- pinned up a notice outside saying “Psy- Sametime Dreamland. other Jungian game ranger (no names) chism in progress. Please come tomor- Well then, the swimming. Mother one morning undertook to swim across row. Thanking you”. N explains to Hon Doc that Darwin’s the Midmar Dam backwards. Train- She lit up the stove for tea leaves motto is If You don’t Use It You Lose ing, see, for the great Midmar Mile. By and set about the star charts with her It. By his theory evolution is purpose- nightfall he had travelled only 100 me- slide-rule (no calculators in those days, less, it comes from random mutations, tres and certain campers had to haul hey). Chart and tea drinking complete you see, and if such mutations aren’t him ashore with a tent rope. n

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