Shareholders Sydney wake-up Liquidator outraged by Investec call fnds Bobrof Berrangé in deal with KPMG in his jammies pig-farm poo R4680 NEWS YOU’RE NOT SUPPOSED TO KNOW (inc VAT)

noseweek227 Reporter says foul-mouthed magistrate SEPTEMBER threatened her: ‘I know where

you live – take 2018 care driving home’

Why US banks lovexxxxxxxx paying fnes KZN killers-for-hire go on trial – fnally

Your favourite magazine is now ISSUE 227 • SEPTEMBER 2018 available on your iPad and PC

Stent Page 5

FEATURES 9 Porkies in pig farmer divorce case 4 Letters Liquidator probed by Master of High Court 7 Editorial 10 Why isn’t Zweli Mkhize finance minister? Noseweek’s alleged part in his downfall 28 Books 12 Sydney’s wake-up call for Bobroff’s AVAILABLE Ronald in his jammies makes front page news 30 Last Word ON YOUR 31 Smalls 13 Joburg shrugs off ‘frivolous’ probe TABLET City refuses to tackle questions over tenders

14 Shareholders challenge Investec Continued relationship with KPMG: Investec’s explanation v. the true explanation Download your 15 ‘Swearing magistrate threatened me’ digital edition today Maritzburg journalist lays charges following alleged abuse in court over newspaper articles both single issues and subscriptions available 18 KZN gang of hitmen go to trial Glebelands Hostel killers-for-hire will face the state in September PLUS never miss a copy – with back issues available to 22 Son of Gauteng download and store Although Paul Mashatile has the track record, and the chops, to lead the ANC, for the moment he wants to simply help the president fix the economy DOWNLOAD YOUR DIGITAL EDITION AT 26 Doing healthy business www.noseweek.co.za Are all those fancy grains and berries really super foods – or do they just fetch super prices? or % 021 686 0570 27 Why big US banks love paying fines The $2bn Deutsche Bank paid for breaking the law was the equivalent of a $150 speeding fine

3 Letters

Signed up while phone off who saw an opportunity when Toyota Admiration for Gift of Givers was unable to supply. WHEN I DISCOVERED THAT MTN WAS The taxi associations were more SUSAN SEGAR’S ACCOUNT OF HER TRIP illegally charging me for third party than happy to issue permits for with Gift of the Givers to aid the content providers, I complained on these vehicles and as usual the drought-stricken farmers and their Facebook page and got this banks turned a blind eye. community of Sutherland (nose226) response: “Thank you for your post. Lloyd Macklin is the best story of the year from The registration of these services is Vaal Marina Noseweek. completely voluntary and is acti- No, we make the point that Toyota It gives me new hope for this vated on the handset by the user of and its dealerships knew why the country and the world. the device. You need to dial *156# sale of panel vans had doubled in a A F Leger option 97 option 12 or *136*5# to year, but said nothing for three years Plettenberg Bay unsubscribe from these services”. because it suited them; even after My reply was, how did I subscribe that, they simply quietly created a n GIFT OF THE GIVERS DESERVES AS when I was asleep and the phone legal out from liability for them- much media attention as is possible turned off? The “unsubscribe” link selves, but failed to warn the in this generally Godforsaken world. didn’t work and I had to phone public. I know of no other such organisa- them to get rid of it. Only lost R6 As the story also points out, taxi tion which works as efficiently and but the annoyance cost much, much associations and banks were equally cohesively to do good. more. at fault because it was the most prof- Mo Haarhoff Linda Howe-Ely itable route for them to follow, never Stellenbosch Cape Town mind a few hundred deaths and scores of unsophisticated new taxi Iqbal gets an ant up his trunk n I DISCOVERED VODACOM IS IN CAHOOTS owners left burdened with a debt they I SALUTE THE FINE EXPOSÉ OF IQBAL with a company called Basebone, can never repay. – Ed. stealing R6 every day from my Survé by Ed Herbst, (nose226). It Vodacom account. Vodacom are Banking on the bar gives me solace and company in my complicit. I carried on like a fishwife outrage. But there are a growing on both of their Facebook pages and BANKS AND THE LEGAL PROFESSION number, I gather, now alert to the eventually, to keep me quiet, I got are professional crooks. The bigger picture, not to mention the a double refund of R430. Don’t just Johannesburg Bar Council’s selective servings of Dr Iqbal and his accept it... kick up hell until you get response to the overcharging sell-outs. your money back. by three of its senior members Nowadays I’ll occasionally browse through a coffee bar Times, as one Joy Termorshuizen (Editorial, nose226) is appalling. Cape Town One wonders what happened to might scan a somewhat entertaining the VAT raised on the fees. curiosity: its undisguised partiality, its klutzy agenda-driven crusade. n WHEN I DISCOVERED THAT I WAS BEING Andre Crause charged for third party services on Southbroom Shame on the lot of them. the MTN network, I called them to As for the Cape Argus, the “all- complain. The response: “some kid ‘Jersey Way’ echoes in Mauritius seeing eyes”, how about an appro- might have used my phone”. priate name-switch to The Cape HAVING READ NOSEWEEK’S ACCOUNT OF Cyclops: one-eyed, fixated siblings. But there’s no chance of that. the Brakspear family’s sorry experi- Heide-Marie von der Au Trevor Ruthenberg ence at the hands of a biased Sunningdale Midrand Jersey court (nose226), in my experience Mauritius is not that n I WAS DELIGHTED TO READ THE ARTICLE Toyota killer taxi vans different. by Ed Herbst in the latest Noseweek Wait-and-see NOSEWEEK USES LOADED LANGUAGE AND tackling megalomaniac Dr Iqbal Johannesburg innuendo to build the case against Survé. I have written many articles the sale of modified vehicles. The for the Cape Argus and Cape Times implication is that many Toyota Cele as prosecution and defence over 20 years, but that came to an franchised dealers were directly SURELY SOMEONE WITH THE RIGHT LEGAL abrupt end when Dr No and his band and willingly involved in the sale of mind can point out to us what is of yes-men took over. modified vehicles. wrong here and save the taxpayer a The majority of pale-faced writers The truth is that most of the few million in this farce? were booted into touch at about the panel vans were modified and sold Anthony Krijger same time that Alide Dasnois was by non-franchise used-car outlets Westville fired by Survé. Out went all the

4 Letters

regular loyal (read mostly white) the abuse. This is way better. All of their dirty linen in public. Leave contributors to both newspapers and you feeling sorry for big, strapping, De Lille and Zille alone. It’s scary in came the new kids on the block, rich males, get real! how quickly their name has become who within no time were DA bashing How many ladies do you know (I tarnished. and turning Patricia de Lille and mean actually, personally know – And what can we do? Egos are Survé himself into rockstars. your sister, your wife) who would destroying the party. It’s the leader- Any hint of approval for their like to state publicly that they were ship not leading. Send the leaders masters in the ANC in your letter, raped? to PMB to note how bad leaders and you are guaranteed space on The rest of your post is good, but destroy everything of any value. their Letters page. that sentence needed calling out. Adrian Moore A message to Survé: even an ant, Get Real Pietermaritzburg as small as it is, is capable of taking Montclair on an elephant by climbing up its Yes, and no. In situations where the Free Julian Assange trunk. police and prosecuting authorities AFTER SIX YEARS IN DETENTION, JULIAN Colin Bosman are totally ineffective, doing nothing Assange, a WikiLeaks founder Newlands, Cape Town for years – eg the non-prosecution of Jacob Zuma re arms deal bribes rightly fearing US retribution for Bheki’s butt of a joke and failure to render accurate tax daring to expose US war crimes in returns for a decade, and those scores Iraq and Afghanistan and the dark “YOU KNOW, THERE IS SOMETHING VERY of women who lay rape and similar reality of US empire, deserves a just wrong about this #MeToo movement charges that never get beyond a “lost” resolution of his case and his voice where people [ie men accused of police dossier – then publication is restored. sexual harassment] are being tried the only alternative route to some It’s shameful how many govern- by popular opinion. You can forget form of justice. – Ed. ments and journalists have not just about innocent-until-proven-guilty abandoned Assange to his fate, but – once you are exposed on social Tell the DA failed to recognise his important role media, your goose is cooked” (Letter in releasing millions of documents from Umjindi, nose226). I DON’T KNOW WHO ELSE TO TELL. THE that reveal how the world really Nah! There was something very DA is losing all credibility here in works. wrong when ladies didn’t dare tell of KZN. Tell them to stop washing I support heavy pressure being Stent

NOSEWEEK September 2018 5 Letters placed on the Australian, British prepay) just to listen to their blurb As are its peoples. These decades and US governments to bring him and then to be told all their consult- since 1976 have left me wondering freedom and justice, along with the ants are busy. I reckon that took less from afar at the temptations of many other whistleblowers and than two minutes. returning to what I think of as my reporters languishing in prisons The banks are also on the band- home country (think of, as I was born around the world. wagon, telling you it is a free call to Danish parents in neighbouring Antony Loewenstein when Freecall does not apply to kingdom, Sweden). Australian journalist, cell phones. I have hung on for ages Over time I have returned to author and filmmaker waiting for a consultant to come on drink in the memories of my slightly Currently resident in Jerusalem the line until the call is terminated tarnished past in Cape Town. On because my credit balance has been occasion it crosses my mind to return ‘Freecall’ a misnomer depleted. It is not uncommon for to Die Kaap for good, or at least until such calls to cost anything between my time is up. The desire to return FOLLOWING YOUR ARTICLE ON ILLEGAL cell phone charges I want to add my R80 and R90. I am told the banks then passes and I get on with life penny’s worth: make money out of calls to their once more in the blandscape I have Pick n Pay has a customer help helplines. Is this true? come to call home, Canada. line for their internet shoppers. I Brian Utterson Yet a strange thing happens when have been an online shopper of theirs Gauteng I read Harold Strachan’s column. for years. Recently I was unable to His words magnetise my lust for complete a shop on their website due Harold’s come-hither a permanent return to Wynberg, Clifton, Muizenberg and Die Bo to technical problems. In such cases A STRANGE THING HAPPENS WHEN I READ you are encouraged to phone their Kaap. Writers hey? Harold Strachan’s column. True, the Claus Andrup help line 0860 30 30 30. weather in South Africa is legendary. Vodacom charged me R5.33 (I’m on Maple Ridge, Canada Tongaat weedkiller’s bitter aftertaste TONGAAT SUGAR CO. HAVE BEEN A would never work again – unless… millionaires’ shacks! controversial bunch of “lawyered up” A Greek family (I forget their Right now, Tongaat has a twits for many, many years. We had name) who farmed further north also problem with “Rubber Chickens”. a farm, Zwolle Estate, on the road had a huge case against Tongaat. I Experimenting with the cheapest from Canelands to Ndwedwe, and believe that this weedkiller 2,4-D was possible chicken food to maximise produced sugar, coffee, pecan nuts, banned almost everywhere else on their profits, they have produced litchies, pine apples and a range of earth. chickens whose bones do not harden vegetables. Our farming venture was Then these clever dicks got into and these chickens cannot stand up, virtually wiped out by a weedkiller, poultry and their accountants decided their bones just bend! 2,4-D, that was sprayed everywhere to build two more levels of cages than A few years ago, Eldana Borer by aircraft and tractor by Tongaat everybody else (more chickens per became a problem in sugar cane. Sugar Co. square metre) and on the first really Apparently this insect always lived Years of expensive legal battles stinking-hot summer’s day, they had in the reeds of rivers and streams ensued and my late dad, John B mass mortality from heatstroke – hot but our clever Tongaat accountants James, was told that Tongaat had air rises – and they threw the dead decided to use every square metre the desire and ability – and cash – to chickens out on their cane fields of land and removed the traditional crush us financially. as “fertiliser”. The stink of tens of strips of indigenous bush that all real Our neighbour, Trevor Polking- thousands of rotting chickens was farmers left on either side of a stream horne, would plant a block of about incredible!!! Health authorities were or river – so the Eldana Borer took to 100 acres of tomatoes now and then called in. the sugar cane! and he too was wiped out when a The Moths had a Shell Hole at My uncle, Wyatt James, was crop-spraying plane flew over his Mount Edgecombe, given to them managing a Tongaat section at place while still spraying because by Huletts, but this place did not Doornkop outside Stanger and they the nozzles would not shut off. suit Tongaat’s development plans. conducted an experimental spraying He got the plane’s registra- Meetings were held and promises of a thousand-hectare block of sugar tion number and raced to Virginia made but as usual their crafty cane to eradicate this Eldana Borer. Airport, found the plane and pilot lawyers made sure that nothing was They succeeded in killing every and technicians who were fixing the given in writing and the Moths were living thing in sight. problem and got evidence and state- eventually booted out and told to fuck All their staff seemed to be trained ments here. off! to become a two-bit accountant Next day the Tongaat lawyers At about the same time, early crossed with a split-arsed lawyer. forced the pilot to withdraw his settler graves at Mount Edgecombe Chris James statement, with threats that he were ploughed up to make way for Durban North

6 C

Editor Editorial odds and ends Martin Welz [email protected] Assistant Editor Some gems and that Jonathan Erasmus Special Correspondent elusive pot of gold Jack Lundin N AUGUST, CREAMER MEDIA’S MINING £230,000 (R4.5m). Designer Weekly reported that: “The company has taken this prudent Tony Pinchuck • during the first half of this year, action on the advice of its lawyers because, Sub-editor LSE-listed Gem Diamonds recovered a while the board was confident that, had Fiona Harrison record ten diamonds greater than 100 ct the hearing proceeded, it would have been Contributors Iat its Letseng mine, in Lesotho. successful, it is impossible to be entirely Desireé Erasmus, Michiel Heyns, Another such gem was recovered in July, confident of success in this or indeed any Tom Philpott, Susan Segar, resulting in the highest number of above- other court process,” BlueRock noted in a Harold Strachan 100 ct diamond recoveries in a single year. statement. Cartoonists • Diamcor Mining has recovered six special Yes, neatly summed up: South Africa’s legal Stacey Stent, Dr Jack rough diamonds at its Krone-Endora project, fraternity have reduced our legal system to an expensive high-risk lottery – by at least Accounts in Limpopo. They include a high-quality Nicci van Doesburgh 18.45 ct gem octahedron rough diamond, one member’s prudently honest admission. [email protected] two gem-quality rough diamonds (18.56 ct and 14.71 ct) and three non gem-quality a a a Subscriptions diamonds ( 21.92 ct, 17.32 ct and 15.84 ct). Maud August • TSX-listed Lucara Diamonds’ Karowe FROM DIAMONDS TO GOLD – THE KIND THAT [email protected] mine in Botswana delivered 253 diamonds beckons from the other end of the rainbow. Advertising larger than 10.8 ct during the second quarter, Hard on the heels of those Mining Weekly 021 686 0570 ended June 30 – the highest number of reports from the diamond mining industry, a [email protected] specials recovered, by quarter, since produc- statement arrives in my mailbox from Gold tion started at Karowe. Fields Limited, the company that declares All material in this issue is copyright, and belongs The mine processed a total of 700,000 tons at the top of its website: “Our vision is to to Chaucer Publications (Pty) Ltd, unless otherwise of ore and 4.4 million tons of waste, during indicated. No part of the material may be quoted, be the global leader in sustainable gold the quarter under review. photocopied, reproduced or be stored by any mining.” Vision being the operative word, as electronic system without prior written permission. From these brief reports I learned a great in daydream, fantasy, hallucination, because Disclaimer: While every reasonable effort is taken to deal. Firstly, large, even huge diamonds ensure the accuracy and soundness of the contents of the reality at Gold Fields’s South Deep mine are not nearly as rare as we once were led this publication, neither the authors nor the publisher is quite different, as quickly emerges from to believe; they are in fact, well, common. will bear any responsibility for the consequences of the statement they’ve sent me: any actions based on information contained. Printed Secondly, the last also reminds me of the vast Johannesburg, 8 August 2018: Gold Fields and Published by Chaucer Publications (Pty) Ltd. amounts of earth and rocks that are blasted Ltd (JSE, NYSE: GFI) advises that basic earn- and moved by thousands of exploited mine- ings per share (EPS) for the six months ended workers flattening mountains, scarring the 30 June 2018 is expected to be at least 20% landscape and poisoning rivers – for what? lower than the US$0.07 per share reported Chunks of quite pretty shiny stones whose for the six months ended 30 June 2017. only real use is to decorate the regalia of Noseweek readers would not have been royalty, or for mafia bosses to shift value the least surprised. For example see across borders undetected, or to be buried noses192,194&196. In nose196 (February once more – in the safes of the foolish rich. 2016) Barry Sergeant described the “terrible Yes, I know diamonds cater for the vanity SUBSCRIPTION RATES saga of Gold Fields and South Deep” as of a great many women – but, let’s face it, a powerful symbol of South Africa’s loss Print most could not tell the difference between a of innocence, pointing out that since Nick SA only R420 diamond and a beautifully cut glass crystal. Holland took the CEO seat in May 2008, In short, diamond mining is so costly in Neighbouring states (airmail) R620 Gold Fields’ executives had earned over Europe, Americas and Australasia R760 human effort and to the environment that, R700 million “in return for shamelessly spin- in this day and age, how can any sane person Internet edition ning a plainly impossible future-production 1 year R305 go along with it, let alone invest in it? profile for South Deep”. Year after year, with Finally, there was one diamond mining Combined much the same story trotted out each time. report in Mining Weekly in which I found Print+Internet (SA only) R520 There’s a good example in nose202 (“All that something of value: good, and telling, advice. To subscribe glisters…”). By that year (2016) company It read: “AIM-listed [listed on the Alternative By phone (021) 686 0570 executives had scored more than a billion Investment Market of the London Stock rand; Nick Holland personally R200 million. Online (pay by credit card): Exchange] BlueRock Diamonds has reached www.noseweek.co.za The latest expected drop in earnings was an agreement with former CEO Riaan Visser explained in a further statement issued on Email [email protected] that his application for the liquidation of 14 August. It read “Gold Fields Ltd (JSE: Kareevlei Mining be removed from the court (Note: cheques no longer accepted) GFI) (NYSE: GFI) announces a restructuring roll, subject to security being provided for at its South Deep operation and provides a Further information the full amount of his alleged claim of about Call (021) 686 0570; fax 021 686 0573 or email [email protected] September 2018 7 further trading statement relating to and production targets; cantly below industry average.” its first half year 2018 results, due for • Unique and complex mining method, All this seems aimed at softening up release on Thursday, 16 August 2018: long hole stoping mining at 3,000m with shareholders for yet another annual “South Deep has had a number of attendant challenging … conditions report with bad news. And – is it operational challenges since Gold Fields requiring extensive support; possible? – for another rights issue to acquired it in 2006. The key challenge • Extensive infrastructure and raise yet more capital for a lost cause? has been the difficulty in transitioning support services required to underpin When are shareholders going to vote for the mine from one run with a conven- mining activities, which continue to calling it a day at South Deep – despite tional mining mindset and practices to operate sub-optimally… ; the billions and billions they have been mining with a modern, bulk, mecha- • Poor equipment reliability and conned into investing over the past nised mining approach. South Deep is productivity impacted by poor mainte- decade? Is it a case of institutional inves- a complex and unique mine that has nance practices and operational condi- tors being so deep in that they can’t turn faced persistent issues that need to be tions; around and declare a loss so vast they addressed in a holistic manner which • The operation is staffed and will have difficulty explaining it? include: resourced for a much higher production And at what stage is Nick Holland • Rising operating and overhead costs, rate than is currently being achieved; going to grab his last bag of loot and run? not aligned with current output levels; and Noseweek’s guess: if he and his share- • Consistent failure to meet mining • Overall labour productivity is signifi- holders have any sense, soon. Sell in May and regret the day

N MAY – APPROPRIATELY – BUSINESS the trading graphs on their screens. economic data that I thought might Insider published a report head- In fact, to the extent that South push the markets higher and I there- lined “Why Sell-in-May-and-go- African fund/asset managers of all fore felt markets would adopt the away doesn’t work for SA inves- kinds may have used the “Sell in May” usual sell-in-May stance and therefore tors”. legend as a reason for selling their drift lower.” I“Sell in May and go away” has long clients’ shares in May have, one may Andrew Todd’s JSE data referred to been a popular adage on New York’s safely assume, been using it simply above shows that the JSE index rose Wall Street. There they believe the as an excuse to “churn” (buy-sell- 15.8 percent from May to October 2013. strategy is a great way to avoid the buy) shares in order to up their own As a result of the sale, Peggy had to worst months on the US market. Many brokerage and management fee income pay R104,000 in capital gains tax, and market crises seem to happen between at their ill-informed client’s expense. Michael a further R228,163. May and October. This was clearly the case with Five weeks after selling their shares, Since 1926, total returns delivered Investec Securities Cape Town broker Bell went back on the market and by the S&P 500 during the May to Harry Bell when he sold the entire bought all the same shares for them October period are about half those blue-chip portfolios of his clients again. He did buy one new share: for the seasonally strong November to Michael and Peggy Schonland, both over R1m worth of Kumba – after April. retired and in their eighties, in May Investec had itself warned clients of However, an analysis of 20 years’ 2013 and again in May 2014, specifi- an impending decline in Kumba due worth of data from the JSE Top 40 cally referring to the sell-in-May to economic woes in China. Kumba’s index, compiled by Andrew Todd of the legend as his reason for selling. They share price plummeted in the following investment platform Traders’ Corner, had good reason to be unhappy with months, and three years later have still has shown that South African inves- the outcome and have since taken their not recovered to the purchase price. tors on the JSE will have lost money share portfolios elsewhere. In May 2014 Bell did it again. He if they sold each May and went away. Bell took charge of the Schonlands’ sold their entire portfolios without On average the index gained almost share portfolios in 2012 when their prior warning or their consent. At 2% in the May to October period, more previous brokers, HSBC SA, were 4pm on 15 May – after the sales had than 37% over the years. bought out by Investec. gone through, he called them and after The index rose in the March-Oct On the morning of 15 May 2013 several minutes of small talk, chirpily period in 14 out of the 20 years. a flood of share sales notices from slipped in: “I’ve got news for you!” His conclusion: For investors with a Investec Securities began arriving in Over the next six weeks the sold long-term horizon, it is better to ignore the Schonlands’ email inbox. Without shares appreciated by about R600,000. the legend and remain invested. prior notice or their permission, Bell The total profit they made on the Also remember that you would have was selling their entire share portfolio: sale – before tax – was R12,635. to keep transaction costs and capital Anglo American, Aspen Pharma, BHP Investec’s brokerage fee on the trans- gains tax in mind if you sell out at the Billiton, British American Tobacco, actions: R35,514. end of April. This could result in even Richemont, MTN Group, Naspers, Just before they closed their accounts lower returns, cautioned Todd. RMBHoldings, SA Breweries, Standard at Investec, Bell called them to suggest All this information would/should Bank, Sasol, AVIAT and Brait. he buy a million-worth of Steinhoff not have been news to any major Responding to the complaint they shares to add to their portfolio. Can banks, financial managers or stockbro- subsequently lodged with the JSE, Bell you believe it: their answer was No! kers who spend their days watching wrote: “There was no large pending The Editor

8 Notes & Updates JONATHAN ERASMUS

Liquidator probed over porkies in pig farmer divorce case

HAT BEGAN AS AN EXTRAMARITAL companies. On 6 May 2013 the liquida- affair for Vryheid pig tion order was made final. farmer Thomas Volker, has Prior to their divorce, Thomas and ended up causing one of Renata ran successful piggeries, a KwaZulu-Natal’s top liqui- meat wholesale business and a feed- dators,W Pierre Berrangé, being placed manufacturing plant. They reared under investigation by the Master of cattle, grew timber and also owned the High Court in Pretoria. several farms and properties in The Master’s Office has instructed Pretoria and Cape Town. The annual Pretoria-based Theo van den Heever turnover was approximately R100m. of D&T Trust to investigate Pieter- Their assets were in excess of R80m maritzburg liquidator Berrangé and liabilities were about R40m. Their (nose219) and his handling of the farmhouse mansion was designed to divorce-fuelled liquidation of a once- be a boutique hotel and had cost about successful Vryheid business, the R10m to build. Penvaan Group, run by now-divorced But it was the land question, an Thomas and Renata Volker. over-arching reason for the Master’s The investigation will be conducted investigation, which led to the failure under Section 381 (3) of the Companies of the liquidation-by-design plan to Act which empowers the Master’s sell the land and the business infra- Office to “appoint a person to investi- structure based on the farms. The gate the books and vouchers of a liqui- land was never owned by the group of dator” if there is “reason to believe that companies but rather by a trust whose a liquidator is not faithfully performing trustees were Renata, Thomas and an his duties and duly observing all the Maritzburg liquidator Pierre Berrangé independent trustee Johannes de Witt requirements imposed on him”. is under investigation for cooking who voted with Renata, effectively Noseweek has learnt that once giving her control. books to help his client the investigation is complete, which Furthermore the trust had no debt includes interviews and assessing all and was solvent. Potential suitors available documents, Van den Heever family business, the Penvaan Group for the businesses had told Berrangé will submit his report to the Deputy of Companies, and (as Renata had they were only interested if they got Master in charge of insolvencies, consistently maintained) leave her the land. So to get around this, FNB Marianne Bernard, by September. penniless. First National Bank which – advised by ENS’s liquidation unit Based on the findings and recommen- was the company’s preferential cred- (headed by Leonard “Lennie the dations, Bernard could institute a full itor – and possibly facing hefty costs Liquidator” Katz) – tried to liquidate inquiry. for their role in the liquidation – were the trust, claiming it had signed surety As Noseweek has previously reported, represented by Africa’s largest law over the companies being wound up. court records, including transcripts firm, ENS. However in March 2014 Pieter- from a taped conversation between On 22 March 2013 Berrangé wrote maritzburg High Court Judge Thoba Thomas and creditors – spread over to the Master’s Office to be appointed Poyo-Dlwati said Thomas was the only several years and in multiple courts liquidator of the Penvaan Group trustee who had signed the suretyship from Paulpietersburg to Pretoria and shortly after Thomas had told the on behalf of the trust and therefore it Pietermaritzburg – revealed how bank his company was in distress and was not valid and binding. Thomas, along with Berrangé, his asked for it to be liquidated. Five days Then eight months later Berrangé divorce lawyer Gert Vonkeman, and later he provided the Master with brought a high court application KZN advocate Eddie Lotz devised a a R20-million surety bond to secure against the trust, claiming that it had strategy to dismantle his successful his appointment as liquidator of the been unfairly enriched to the value of

NOSEWEEK September 2018 9 Notes & Updates

R16.46m by the company’s improve- Subsequently it was established that now controlled, were the ones he had ments on the land. The matter is still this was incorrect “as [Thomas Volker] controlled until January 2014 – when ongoing. had been employed by his (new) wife’s he resigned and installed his new wife Then in February 2016 a third company since March 2016”. as the sole member of the companies. option arose: they could sequestrate The prosecutor said claims by Erasmus said that, while there Renata Volker, effectively removing Thomas Volker that he earned were five judgments that Volker her as trustee of the trust, leaving R15,000-a-month and had expenses of claimed he had against him, total- Thomas Volker in control to sell the R17,133 were also untrue She put his ling R9,241,417.11 – including more land. Or at least that was the plan. true earnings in the region of R60,000. than R7m owed to FNB, there was no FNB, with ENS, stepped in again and Erasmus pointed to Thomas Volker’s evidence that he was trying to – or was duly sequestrated Renata Volker in credit card expenditure which was required to – service the debt. March 2017. in excess of R30,000-a-month, while “More pertinently, none… [have] However, instead of Thomas Volker’s he had no evidence that he had paid been reported as ‘bad debt’ by these gaining control, his three sons with any expenses at all. She said it was organisations. One would have reason- Renata – whom he had effectively clear that his employer was his new ably expected this to reflect on your abandoned – stepped in to the trust wife Monica Volker (née Bates), and client’s credit report, which it does not. void, wrestling control yet again from that it was by design that the cash- He remains a client of FNB.” their father. Months later Thomas generating companies Monica Volker The battle continues. n Volker resigned from the trust. A complaint lodged with the Master was that Berrangé had never paid rent to the trust when he occupied the business premises based at the farms and leased them to third parties. Moreover, in about November 2017, once it became clear to Berrangé that he would not be able to seize control of the trust land, he simply packed up and left. The trust claims the infra- structure was left in a “horrendous state” far beyond being the result of fair wear and tear. Renata Volker has recently brought an application to have her ex-husband’s retirement annuity fund attached. She says in documents filed in the Paulpietersburg Magistrate’s Court that he has failed to honour even a Dr May Mashego with her husband Zweli Mkhize single monthly maintenance payment of R20,000 since ordered to do so by the High Court in Pietermaritzburg in September 2014. She is owed approxi- Zweli Mkhize: Noseweek’s mately R900,000. Thomas Volker claims that, since January 2017 he has been “unem- part in his downfall ployed and [has] no assets” while only doing “volunteer work” for his local HORTLY AFTER CYRIL RAMAPHOSA profit. They came from Pietermaritzburg church. But this has also been uncov- took over as President of South property developer Protus Sokhela. ered as a lie. Africa in February, it was wide- In mid-2008 Sokhela landed a lucra- Ironically it was his attempt to have ly speculated that Dr Zweli tive R10.9m lease agreement with the the maintenance order discharged Mkhize would become his new KwaZulu-Natal Department of Finance during the course of 2017 at the MinisterS of Finance. This didn’t hap- – of which Mashego’s husband Zweli Paulpietersburg Maintenance Court pen, and, according to government Mkhize was then the MEC. The deal that revealed this lie. sources, Noseweek played a role in his was recorded in the Government Gazette. On 23 April this year KZN senior losing out. Mkhize became KZN ANC chair- maintenance prosecutor S Erasmus Earlier this year Noseweek ran a person in mid-2008 and was installed as contested Thomas Volker’s applica- story about Mkhize’s wife Dr May the KwaZulu-Natal premier in 2009. tion for discharge. She said that on 3 Mashego who had received two Sokhela’s 2008 lease has been rolled January 2017, when Volker applied R1m “loans” in 2007 and 2008 that over and is still in place today, for the discharge, he had stated he were interest-free and did not have to Mkhize should have declared his was “unemployed and had no assets”. be repaid if her company did not turn a wife’s “loans” to the KwaZulu-Natal

10 Notes & Updates

Legislature in 2008, due to the clear partners. She has since been appointed also members of the legislature, for over- conflict of interest. But his declara- a judge of the High Court in KZN. sight purposes. Noseweek later found tions – for that year only – have disap- At the time Noseweek asked Mkhize out they did keep records and Sukraj peared from two separate locations – an and Mashego about the highly ques- was deliberately fobbing us off. unheard of coincidence, say officials. tionable loans and whether they had Noseweek then approached the Shortly after Noseweek ran the story informed the KZN Legislature about the director-general in the KZN Premier’s in late February (nose221), a source said conflict of interest, but they refused to Office, Dr Nonhlanhla Mkhize (no rela- it was being shared on ANC leadership comment. Mashego did however see the tion to Zweli Mkhize). She made avail- WhatsApp groups, resulting in specula- questions sent via WhatsApp. able Mkhize’s public declarations but tion that Mkhize’s possible appointment Mkhize’s spokesperson Tahera informed Noseweek that the record for as finance minister was in jeopardy. Mather told Noseweek she couldn’t 2008 had “gone missing”. She said both Days later Nhlanhla Nene was comment because she was “only the the cabinet copy and the copy kept at the appointed Minister of Finance, while spokesman [for] Dr Mkhize and, “Since KZN Legislature could not be located and Mkhize was made Minister of (the less this is related to his wife, I am unable “only the 2007 and 2009 ones were avail- glitzy and more gritty) Department to assist.” able”. She suggested Noseweek “could of Cooperative Governance and We asked if Mkhize had declared the ask Dr Mkhize for a record,” as they had Traditional Affairs. loans to the KZN Legislature, whether given him the “benefit of the doubt” that Just how much of a role the Noseweek May had paid back the loans and if he would not alter his missing declara- article played, if at all, is debatable but Mkhize saw the conflict of interest. tion if he needed to reconstitute it. what is certain is that Mkhize has been We also asked the KZN Legislature Noseweek informed Dr Nonhlanhla embroiled in more than one kickback secretary’s office for Mkhize’s declara- Mkhize that the reason we were scandal, the most recent being allega- tions from 2007 to 2009. Office assis- requesting a copy from her office was tions made in June that he was involved tant Nishen Sukraj told Noseweek: because Dr Zweli Mkhize had refused to in a R4.5m kickback involving the “Dr Mkhize was a Cabinet Member at assist. The Sokhela “loan” declarations Public Investment Corporation (PIC), as that time and would have disclosed to would have likely fallen within the 2008 reported by the Sunday Times. cabinet. It is suggested that Cabinet be declaration period. In January the EFF laid criminal approached for access to his disclosures”. Noseweek asked the director gener- charges against Mkhize, accusing him of Sukraj ignored further questions as to al’s deputy, Sifiso Zondo, an economist soliciting a bribe of R80m from former how it was possible that the legislature by training, whether Zweli Mkhize Passenger Rail Agency of South Africa did not keep records of MECs, who were had been informed that Noseweek was (Prasa) CEO Lucky Montana. The “loans” Dr Mashego received were paid to Essential Equity CC, an entity solely controlled by her, on 12 March 2007 and 15 January 2008 respectively, which came from Sirela Trading CC, controlled by Sokhela. On 14 June 2007 Sirela Trading purchased the multi- storey block known as the Nomalanga Building, 212 Langalibalele Street, Pietermaritzburg for R10m. A year later the R10.9 lease deal was signed. The terms of both “loans” from Essential Equity were identical – and very favourable to Mashego, who was not required to pay them back at all if the company failed to turn a profit. “The loan will be repayable after a period of 24 months from the date that the whole loan amount has been paid to the debtor. The loan will be paid as follows: sale of shares/members’ interest in the closed corporation (the debtor) and monthly repayments of R50,000 after profit has been realised each month. It is recorded that interest will be payable only if the debtor defaults in payment.” Both loan agreements were drawn up by the law firm Ngcobo Poyo & Diedricks Inc. Mkhize’s lawyer at the time was Thoba Poyo-Dlwati, one of the firm’s “Let’s face it, we just don’t get on.”

NOSEWEEK September 2018 11 Notes & Updates looking for his declarations. He said it would not be done formally but it was not entirely unlikely that, through Sydney’s wake-up “informal interactions” between the various leaders, he could have been told. He also said he had never heard of declarations going missing before. call for Bobrofs fnds Noseweek was not allowed a copy of the declarations and could only view them and take notes from the public Ronald in his jammies section at the Premier’s Durban office, according to the Executive Members’ Ethics Act, 1998. The tiny 2007 public declaration AUGHT IN HIS PINSTRIPED PYJAMAS state Ronald is looking to practise law revealed that, at the time, Zweli Mkhize and splashed across the front in New South Wales and that Darren owned Sanlam shares worth R100,000; page of one of Australia’s largest runs a successful property business was given R400-worth of wall paint by Sunday newspapers, disbarred there. Shoprite Checkers; owned a house in and disgraced South African Ronald – who told the Australian Ashburton, Pietermaritzburg valued at attorneyC Ronald Bobroff is convinced paper in August that he was living in R450,000; and was selling a flat on the his meteoric demise is not of his own “reduced circumstances”, “on the smell KZN South Coast for R99,000. volition but by some twisted con- of an oil rag” and that his AU$2.5m The 2009 declaration revealed a spiracy driven by the insurance giant home in St Ives was “not much” – now change in status and fortune. It said he Discovery Limited. believes the Australian journalist is was a member of the non-profit, KZN And the conspiracy is real, says part of a cabal secretly out to get him. provincial government-funded Moses Bobroff, because those “against him” This view was expressed on his own Kotane Institute; that his Sanlam follow each other on Twitter. website www.bobroffronald.com. shares were still only worth R100,000; Adamant that he is being “martyred” The website’s opening sentence, all that he still owned a house in Ashburton for – he claims – uncovering in 2011 in capital letters, states that the site (R450,000) and had bought two more – Discovery’s “decades of institution- provides “the facts not the fiction as in Willowfontein, Pietermaritzburg, for alised defrauding of its members to what’s really behind the relentless R700,000 and in Cato Manor, Durban who had sustained injuries during vendetta by the multi-billion-rand for R725,000. road accidents”, Bobroff believes the public company Discovery Limited, Under “Gifts Received” there were: Sunday splash in the Australian it’s highly paid legal army and their sheep worth R700 from “Cllr Mdabe”; paper was because “Discovery…has proxies on Ronald Bobroff, Darren cattle worth R6,000 from “Inkosi now commenced doing business in Bobroff and RBP Inc”. Shabalala”; more sheep, valued at Sydney and Melbourne” and no doubt Bobroff snr seems to see himself as R700 from community TV “station want him out of the land down under. John Lennon’s Working Class Hero – manager” at BayTV; R6,000 of cattle Presumably the continent is not big like the working class folk he ripped from “President JG Zuma”; [Cows enough for their respective egos. off. In response to the Australian JZ was supposed to distribute to the In recent months there have been article, he authored a 4,000-plus-word poor? – Ed.] a R700 “engraved shield” two South African news reports, one in reply, claiming the Sun-Herald jour- from the University of KZN; a sword Moneyweb and another in the Sunday nalist Sally Rawsthorne was working valued at R5,000 from the “Foreign Times, about Bobroff and his son with a “Discovery gang” that included Minister of Dubai”; a R1,800 carpet and Darren, also a lawyer. The Australian Noseweek and Carte Blanche (and R500 “Crystal Eagle Statue” from the report appeared on 5 August in The occasionally Noseweek) journalist “Government of Dubai”; and a R10,000 Sun-Herald – the Sydney Morning Tony Beamish, Graeme Hosken from zebra skin from Ezemvelo KZN Wildlife. Herald’s Sunday tabloid. the Sunday Times, and “Discovery’s There was no mention of the soft The articles are fairly similar in that Jeffrey Katz”, one of the company’s loans, at least not in the public section. they both state that a “Red Notice” various in-house attorneys. The only people who may view the for the Bobroffs, issued by Interpol Bobroff questioned “Rawsthorne’s private section, according to the Ethics in 2016, is still valid; that their bank morality and lack of any sense of Act, is “the President or Premier as the accounts in Israel containing “over decency” when she door-stopped him case may be, the Public Protector, the R100-million” have been frozen thanks two days before the Sun-Herald article Secretary concerned and staff desig- to efforts by the South African govern- appeared while the paper’s photogra- nated by the Secretary to have access to ment; that the Bobroff family lives in pher snapped the picture. He claimed the confidential part of a register”. luxury in a R25m home in the suburb he looked awful in the image because Noseweek has since asked the DA, the of St Ives in Sydney; and that the SA he’d “been awake all night due to official opposition in the KZN legisla- National Prosecuting Authority is pain, caused by a fractured ankle”. He ture, to make inquiries about Mkhize’s still trying to extradite the Bobroffs to asked: “What kind of people are they?” declarations. Their requests to view the South Africa to face criminal charges Ronald and Darren, who were part- declarations have been ignored. n for ripping off RAF victims. They also ners in and directors of personal injury

12 Notes & Updates

Africa’s most senior judges” – whom they describe as “a Joburg shrugs reformed alcoholic and drug addict” – at Beamish’s villa in France, and that former of ‘frivolous’ RBP staffer Cora van der Merwe was “trained by the South African Navy in counter Noseweek probe espionage and had been sent to a Russian University to study HE CITY OF JOHANNESBURG STILL allied topics”. refuses to explain why a multi- In conclusion Bobroff declares: million-rand property valua- “Perhaps the clearest indication tion tender was handed to an of collusion between Rawsthorne ANC-backed company that was and Discovery’s Jeffrey Katz, notT among the initial bid-winners, in- his media assassin Beamish and stead labelling Noseweek’s request for accomplice Graeme Hosken of the them to account for the anomaly as Sunday Times appears from their “manifestly frivolous”. all following each other on Twitter, Noseweek has reported extensively and Katz tweeting Rawsthorne’s (noses211,212,215&222) on how the article within minutes of her doing city’s tender for the General Valuation so. Roll 2018 (Bid A683), was found to be “The question may rightly be asked rife with problems, including over- how and why at this particular time valuation of the 900,000-plus rated and day would these corrupt conspir- properties. The contract was awarded ators be following each other and to Durban-based Evaluations Enhan- tweeting about Rawsthorne’s oblig- ced Property Appraisals in October ingly delivering the goods – served as 2016, with a price tag of R99.9 million. a special present for Ronald’s birthday But that was not the first tender which is on the 7th August. issued for the same contract. A year “What words are there to describe earlier the identical tender was adver- law firm Ronald Bobroff & Partners such persons, and does Rawsthorne tised and closed in January 2016. (RBP) in Rosebank, Johannesburg, have no shame or conscience?” Then, the bid submitted by valuations, are accused of swindling their clients, Ronald’s scorn for anyone who thinks owned by ANC-backer Willy Govender, all claimants of the Road Accident he’s a stand-up crook has always been was only the third-lowest, at R167.2m. Fund, of up to 40% of their claim made evident. On the same website he The scoring process was approved against the fund when the law only dismissed Noseweek of being a “fringe by the city’s Bid Evaluations Com- allowed them to charge their client publication”, while in 2012 when he mittee and the clear winner was DPP up to 25% of what was successfully was still somebody in the Law Society Valuers (Pty) Ltd at R144.9m. The claimed against the RAF. of the Northern Provinces he called contract budget was R300m. The city They have settled with some but Noseweek a “gutter publication… filled then went mum, refused to award the according to the Sunday Times, are with half-truths and malicious specu- time-critical contract and it lapsed. still in dispute with former clients to lation designed to titillate its minimal The tender was re-issued and this the value of R12m. They are alleged subscribing readership”. time Evaluations shaved R67.3m off to have netted over R100m through In a letter to the society he went their original quote, undercutting their gambit, shovelling it offshore, on to declare: “It is beneath my everyone else to a price one insider protected by a series of trusts. dignity [as a] respectable attorney to said was “simply too low” and would If the Bobroffs return home – having endeavour to respond to this gutter lead to corners being cut. The city skipped the country in 2016 – they will journalism”. In that issue, Noseweek has had more than 50,000 objec- face charges of fraud. revealed that a report by top forensic tions to their valuations, including a On their website it is claimed that accountant Vincent Faris, filed at the direct intervention by mayor Herman both Ronald and Darren are inno- North Gauteng High Court in 2014. Mashaba relating to 8,000 valua- cent and claim that Rawsthorne is a found there was “sufficient evidence tions – a cock-up for which he blamed “scoundrel”. It unpacks, complete with to prove contraventions of the Income Evaluations, now owned by JSE-listed links, the alleged conspiracy against Tax Act, the VAT Act, the Companies technology firm EOH Holdings. them orchestrated by Jeffrey Katz. Act, the Attorneys Act and the Rules Noseweek has twice formally It also makes inappropriate of the Law Society of the Northern requested records that show why the bizarre and unrelated claims, that Provinces” by Bobroff and son. first tender process for Bid A654 was Carte Blanche reporter Beamish is a The action resulted in father and cancelled as well as all communication “Discovery-hired media assassin” who son being struck off the Roll of dealing with a specific bid. Both were regularly “entertained one of South Attorneys. n denied but we’ll keep trying. n

NOSEWEEK September 2018 13 Notes & Updates Shareholders up in arms as Investec fails to sack KPMG

HORTLY BEFORE THIS ISSUE OF Noseweek went to press, the Financial Times reported that almost 20% of shareholders at Investec have objected to the company’sS decision to reappoint KPMG as its joint auditor. Investec responded with a lengthy statement accompanying the results of its annual shareholder meeting, setting out why it was sticking with KPMG. Eye of the storm: Investec CEO Stephen Kosef who will be stepping down in October Revelations over the past 18 months about KPMG’s practices in South Africa Online comments by Financial Times many years now that it is beyond a joke. have highlighted its work for the noto- readers quickly uncover the true, decid- “Why is this so important? Because riously corrupt Gupta family, for SARS edly less worthy reason for Investec’s if this contingent liability were recog- and for VBS, a mutual lender that decision to retain KPMG as its audi- nised, JCI would be clearly bankrupt. collapsed in March as a result of large- tors: the bankers can’t afford to fire their And Investec lent a lot of money to a scale theft and corruption facilitated by partner in a decades-long conspiracy to bankrupt company. This would press an its top executives. cover up a massive fraud from which inquiry (Section 35) into this loan, and Investec has long been audited by they raked in billions of rands. that is something Investec would never Ernst&Young and additionally, for the Reader Stephen O’Hagan kicks the let happen. Too many skeletons would past 13 years, by KPMG. (It paid KPMG ball into the air with this observation: come clattering out of the cupboard. about R90m for its services last year.) “Any company who continues to utilise “To be more specific: JCI delivered One of Investec’s independent non-exec- KPMG’s services must be viewed with 5.46 million Randgold Resources shares utive directors, David Friedland, was deep suspicion concerning integrity, (current value: R5.5 billion) it had the head of audit and risk at KPMG’s corporate ethics and honesty.” stolen from Randgold to Investec in Cape Town office until 2013. Philip Jansen picks up the ball with: March 2004. Investec sold these stolen Investec said its decision to retain “My private bank account and my shares and retained part of the proceeds KPMG “was not taken lightly” and that shareholding in Investec were cancelled to settle a long overdue loan to JCI/ the board remains “concerned about the – many years ago when they gave the Kebble. This is described in a never- failures of KPMG’s internal controls world the one-finger salute about the challenged article by Barry Sergeant and procedures”. Kebble affair.” “Dirty Laundry Remains Unwashed” in However, it said, “of greater concern The ball gets neatly passed down the the September 2014 issue of Noseweek. is the significant negative impact this line to reader Gordon Beattie who adds: “In October 2005 the Investec- has had on the country’s audit profes- “I have followed the Kebble/Investec/ appointed JCI board appointed sion, individual lives and the South KPMG debacle for years. No one has Investec’s auditors, KPMG, also as African economy”. Its decision to reap- been held to account for the billions of JCI’s auditors. Unbelievable but true point KPMG had been influenced by missing money. Read Barry Sergeant’s is that JCI has not since published “the need to ensure stability within the books on this sordid affair and the series audited accounts: on 1 March 2018 South African financial system and the of articles in Noseweek. The muddying of KPMG [finally took the precaution to] audit profession at a time of uncertainty the water continues to this day. Another record a Reportable Irregularity to and volatility in the country as a whole”. book that is relevant is Elite Deviance. the Independent Regulatory Board for [Such worthy sentiments expressed by Perhaps keeping KPMG is a quid pro Auditors and JCI, stating: ‘The company the likes of Investec are so unusual they quo for hiding some ugly stuff that could has not prepared audited financial state- have to be suspect. – Ed.] hurt top guys.” ments since the 2005 financial year end’. Twenty percent of Investec share- That sees the ball passed out to the “JCI is facing a multi-billion-rand holders also rejected the company’s wing, James Gubb, who scores a goal claim from Gold Fields which, if remuneration policy, and nearly 20% with this neat summary: awarded, it will not be able to pay. The rejected its pay report – a report that “Investec will never get rid of KPMG. winding-up of JCI would put the spot- had drawn criticism from a separate They are also the auditors of JCI and light on Investec’s acceptance and sale shareholder advisory firm, Pirc, for Randgold. An undisclosed liability in JCI of the stolen Resources shares.” setting out bonuses for senior executives has been unrecognised for many years. But then, of course, Noseweek readers at the company that were many times JCI has not produced JSE and IFRS knew all of that a long, long time ago. – larger than their fixed salaries. compliant financial statements for so Martin Welz n

14 ‘Foul-mouthed magistrate threatened me’ Maritzburg journalist lays charges following alleged abuse in court over newspaper articles. By Jonathan Erasmus

HERE IS NO BETTER PLACE IN THE kingdom of KwaZulu-Natal to find a vastness of eccentrics than in the small city of Piet- ermaritzburg. Among the city’s moreT famous oddballs is the flaccid for- mer National Director of Public Pros- ecutions, Shaun Abrahams. Now flamboyant local magistrate Ashin Singh is threatening to drag Pietermaritzburg journalist Sharika Regchand at the The Witness and her editor, Yves Vanderhaeghen, to the Equality Court. Singh’s issue is that the paper had the temerity to report on two court cases in which he features – as respondent in one and witness in the other. Singh claims the two articles in The Witness were a deliberate attempt to besmirch his name, orchestrated by his foes who he believes enlisted the help of Witness reporter Regchand. On the flip side, Singh has had a criminal charge of verbal abuse opened against him by Regchand after he allegedly threatened her husband and children, called her “a bitch”, and inti- mated that she was sexually promis- cuous with her sources in a hostile The journalist and the magistrate: Witness reporter Sharika Regchand (left) has exchange at court on 31 July. The laid a charge of verbal abuse against magistrate Ashin Singh, who in turn, is suing Witness has also filed a complaint of her and the editor of The Witness for defamation over articles in the newspaper abusive conduct against Singh with the Magistrate’s Commission. Singh said their complaint “can go to hell”. swearing at his boss, Chief Magistrate showing that Mootheram and fellow The articles Singh is seething over Mpho Evelyn Monyemore, in April last magistrates Ms A Bezuidenhout and emanate from publicly available court year, claiming he would “get rid of that Ms P S Joubert had lodged grievances records. In the first newspaper article, corrupt black bitch”. Singh is a witness in August 2017 against Monyemore dated 12 May 2018, Regchand reported for Monyemore. and Singh with the Magistrate’s on a twist in an otherwise parochial The article said that on the day Commission, citing they were “intimi- court case in which another local magis- of the hearing Mootheram’s lawyer dated and victimised” by the pair and trate, Divesh Mootheram, is accused of Sanjay Sarawan, handed in documents that these documents confirmed the

NOSEWEEK September 2018 15 matter was with the commission’s “ethics committee”. The Commission confirmed to Ashin Singh: guns, gossip and grudges Noseweek they had matters pending against Singh but would not divulge ASHIN SINGH IS NO STRANGER TO THE He was represented by two recent any details. Attempts to obtain spotlight, nor known for holding his Pietermaritzburg outcasts, Cameron comment from Mootheram were unsuc- tongue. When Jacob Zuma, as leader “Knock-out” Hunt SC – who famously cessful, despite his undertaking that of the ANC, appeared before Judge floored “inebriated” fellow advocate, his lawyer would contact Noseweek. Chris Nicholson in 2007 on charges Mergen Chetty, with a hefty punch On 22 June this year Regchand wrote of corruption related to the 1990s at a Bar function in 2010 (Nose210) a front-page splash titled “Fraudster Arms Deal, Singh – a senior magis- – and his wife, advocate Penny Hunt, drags city bigwigs to court”. trate in the Pietermaritzburg district who is known for her exceptionally Regchand reported how convicted court – tried to enter the trial as an sharp (and apparently foul) tongue. fraudster Visham Panday, brother of amicus curiae (friend of the court). The Hunts were eventually hounded equally dodgy Durban tycoon Thoshan It would later emerge that he out of Pietermaritzburg chambers Panday (Noses149,150,154,181,184, wanted to have a go at advocate Billy and took up residence in Durban. 204,221&226) had claimed in an urgent Downer SC, the prosecutor leading Penny Hunt is currently appealing application filed at the High Court in the charge against Zuma. Singh had her suspension from the Bar for Pietermaritzburg that a local hospital an old grudge against Downer and spying on colleagues (Nose217). owner Dr Navind Dayanand, had paid was determined to ensure that he Judge Nicholson found Singh’s R1 million for a “hit” on Visham’s life. was taken off the case. amicus application ridiculous, calling Panday also implicated Singh, among Singh’s grudge related to his it “vexatious and an abuse of the others, in the plot. having been seconded to, and then process of the Court”, and stuck Singh Singh has filed answering affidavits removed from the Investigating with a cost order. Singh later struck which have been published by The Directorate for Organised Crime a deal with the justice department Witness, dismissing Panday’s claim and Public Safety in KwaZulu-Natal. to avoid the costs order and dropped as “malicious and defamatory”. He The unit was tasked primarily with his claims against the department in told Noseweek he has “never shared a investigating politically related kill- return. cup of tea” with his co-accused in the ings in Richmond, and later formed Other publicly recorded inci- case, which was postponed to a date part of the now-disbanded Scorpions. dents include a report about Singh to be determined. Singh believes it will As reported at the time by the discharging a gun during a fracas never be brought to trial. “Panday has South African Press Association involving a fender-bender at a resi- no intention of pursuing the matter. (Sapa) Singh was dismissed, charged dential parking bay and insulting a By circulating his court papers to the and prosecuted by Downer for going Witness guest columnist in 2013 who press he simply used the application as rogue. But Singh won a permanent wrote about gossip in Indian commu- a means to defame me and others.” stay of prosecution in 2003 against nities. On 31 July Regchand attended court, Downer. He then launched an In a letter to the editor Singh called like any other day, as the court reporter. unsuccessful private prosecution of her “a sourpuss” and said it was “little She walked through the turnstile gate former National Director of Public wonder that she is not married… into the open foyer and proceeded to Prosecutions Bulelani Ngcuka, Maybe that is the source of her frus- Court A, where all first appearances the KZN Scorpions head Clifford tration”. The Press Council ordered enter the District Court system. Marion, and Downer, followed by The Witness’s then editor Andrew Singh was standing outside the civil claim of R2.87 million against Trench, who defended Singh’s letter, court. He and Regchand locked eyes the Department of Justice for “being to apologise to the columnist for briefly as Regchand proceeded into the insulted” and for his previous legal publishing it. courtroom. South African courts allo- costs. Singh, who worked his way up cate special seats separate from the In his attempt to enter the Zuma from Magistrate’s Court clerk in public gallery and to the side of the trial he said in papers: “Unless one 1988, has also verbally attacked Bench, for the press. This is partly in of the members of the team of pros- EFF leader Julius Malema’s dispar- order for reporters to hear better. The ecuting counsel is removed from that aging remarks about Indians. Singh public gallery is behind a large sheet team, the accused will not be afforded uses his own organisation, the South of glass. a fair trial. The member of the team African Minority Rights Equality When Singh entered the court he of the prosecuting counsel that I refer Movement (Samrem) as his platform walked over to Magistrate Vincent to is Mr WJ [Billy] Downer SC.” to defend the Indian community. n Ncanyana and left again, only to move to the slightly ajar public gallery door. Then the court orderly went to Singh, seated in the public gallery, he is out to get me, he is out to ruin Regchand and told her she, too, had is accused of then calling Regchand “a me and that I must watch my back. I to move to the public gallery, saying stupid bitch”. Regchand says that when kept explaining to him I was just doing “Singh said that you must go to the she confronted him about this, Singh my job,” Regchand said in a signed affi- back”. She refused. Prosecutor Rene again called her “a bitch” and accused davit deposed on 1 August. Padayachee spoke to Ncanyana who her of sleeping with her sources. She claimed he said: “I am out to eventually told Regchand to move, “While still in the vicinity of Court A, get you” and that he said he knew which she did. Magistrate Singh then said to me that her husband and what school her son

16 BoyS FlEEcE BoyS Body jackEtS waRmERS SizES :7-14 yEaRS SizES :9-14 yEaRS aVailaBlE in naVy,Black &cHaRcoal aVailaBlE in Black &GREy    99 99 

49 69 • Flagship Store Victoria Road Edendale Store Hyper Store 4ELs'REYLING3TREET The 455 Church street 204 Victoria Rd Edendale Mall 17 Barnsley Rd Tel: 033 345 4245 Tel: 033 345 5010 Tel: 033 398 0314 Tel: 033 386 4000

FRIDAY, JUNE 22, 2018 Witness R7,30 (incl vat) Don’t glorify Shifting shape Pap and attended. He said she “must be careful dads of Shaka custard tart attempt to poke her finger into Singh’s PAGE 10 PAGE 11 PAGE 12 when you are driving home”. face. She did, however, point at him to “Magistrate Singh said I had ruined Fraudster drags city object to him calling her a ‘bitch’, which his reputation in front of his children,” bigwigs to court he repeated several times. said Regchand. Durban businessman Panday ‘in fear’ over Krugerrand deal “Despite Singh’s statement, neither SHARIKA REGCHAND pay him a R425 000 deposit. Brigadier Francis Bantham. Senior Pietermaritzburg magistrate The money was deposited into his PHOTOS: FILE Ashin Singh. CONVICTED fraudster Visham Pan- bank account. day has dragged several city “big-wigs” Subsequently he said the doctor had to court and claims they want him dead. shown him a threatening e-mail alleg- Panday dramatically claims in papers edly sent to him, following which Pan- before the Pietermaritzburg high court day requested the balance of payment The newspaper was quick to complain that Dr Navind Dayanand had paid for the coins. The Witness nor the reporter has been R1 million for a “hit” on his life, and On April 5, Haffajee told him that implicated his wife, Nirupa, Brigadier Bantham (who knew the doctor) was Francis Bantham and senior magistrate getting threatening messages and be- Ashin Singh in the plot. ing extorted. He also implicates retired policeman He claims the next day Bantham told Yusuf Abbas “Pipes” Haffajee in an al- him to pay her R600 000 to make two leged attempt to extort money from dockets opened against him disappear. served papers by Singh.” to the South African National Editor’s him. On May 7, he laid criminal charges Panday brought an urgent applica- of extortion against the doctor and his tion to stop them from harassing, as- wife, Bantham and Haffajee, he said. saulting or intimidating him, or getting Later that month, the police investi- anyone else to harass him. gating his allegations approached the Panday also wants to restrain them regional court for a search and seizure from communicating with him. warrant in respect of the doctor. Dr Navind Dayanand. Retired policeman Pipes Haffajee. Forum (Sanef) which on 1 August said it No order was granted and the case Singh was not willing to sign the Singh told Noseweek he will be was adjourned to August. warrant and took the application to Panday claims the threats stem from magistrate Langa. a business deal over the sale of Kruger- Panday said an hour later he and rand coins to the doctor. Khan (his witness) saw Bantham, But the doctor says he innocently Singh and Langa get into the doctor’s tried to buy a flat from Panday without vehicle. knowing he “is a man with a clandes- They then saw Singh call the doctor notes “a pattern of abuse by the magis- tine character and is prone to fraudu- and overheard him say: “These ous are taking Harrison, Vanderhaeghen and lent conduct”. He also thinks that Pan- here from general Khana’s office and day may be trying to extort R7 million we are not going to sign any warrant from him. and you must cover us with a parcel lat-      Panday is described by Singh in court er”.     papers as “a notorious criminal who “I submit it is illegal if not highly ir- has served time in prison, with his wit- regular for him to have done so.” 
   
   ness Razak Khan, an equally notorious Panday claims further that on June 3 trate” who had also threatened “to throw convicted criminal”. he got an anonymous call from an Indi- Regchand to the Equality Court but Khan served time for the murder of an male telling him that there was an Visham Panday, brother of controversial Umhlanga businessman Thoshan Panday, is a convicted fraudster who Surie Maharaj, known as the leader of instruction by Dayanand, his wife, Ban- served nine months of an effective three-year prison sentence for several fraud cases, including planning a HIKVISION VIDEO the Curry Mafia. tham and Singh to have him “execut- hacking operation that saw South African banks robbed of almost R1 billion. PHOTO: FILE INTERCOM Singh also said Panday has previous- ed”. ly brought “frivolous applications” and He was told R1 million had been of- Khan criminally. the search warrant application because He said he’d paid Panday R460 000 made complaints against NPA officials fered to the hitmen, put up by the doc- “He [Panday] is a man of straw who it was “fraught with dishonesty, cor- “not knowing his history and ulterior R2100,00 Regchand out of cases he is presiding and Hawks members. tor and his wife. has nothing to lose and continues with ruption and illegality.” motives” to secure the purchase of a only once he has finalised a number of In his affidavit Panday said he’d met In response Singh said the matter his malicious and defamatory conduct Dayanand said that he may bring a flat which Panday offered him for the doctor and his wife at the Daymed was clearly an attempt to defame his knowing there is no recourse against counter application against Panday as R4,8 million at the Pearls, Umhlanga. Hospital in March. They wanted to buy good name and reputation and that he him.” he could be the person attempting to • [email protected] gold Krugerrand coins and agreed to is in the process of charging Panday and Singh said he recused himself from extort R7 million from him. PARAVISION 4CH CAMERA KIT over”, while abusing another Witness Medical schemes set to soon pay more and take less R2600,00 serious judgments in his court. GARAGE DOOR THE abolition of co-payments is one be undesirable for medical scheme ben- ROLL UP MOTOR of the proposals of the Medical • No more co-payments eficiaries to have to wait for long-term FROM Schemes Amendment bill, announced changes,” said Motsoaledi. by Health Minister Aaron Motsoaledi. • Some of medical schemes’ reserves released back into payment pool The amendment will also ensure a “Yves’s reputation will take a knock. journalist Kerushun Pillay “over stories R2500,00 Motsoaledi was speaking at a brief- • Brokers not allowed “smooth, harmonious transition” that ing on the medical schemes bill and Na- • Income cross-subsidisation does not disrupt access to healthcare tional Health Insurance (NHI) bill in • Savings must be passed back to members during the implementation of NHI. Pretoria yesterday. Motsoaledi explained that only 10% SNORRE GAS The NHI bill was gazetted earlier yes- • Waiting periods abolished of South Africans can afford private BB GUN terday. Motsoaledi explained that the healthcare, according to the World medical schemes bill was amended to Health Organisation and the Organisa- It was one thing to write articles and The Witness has and hasn’t run” as well align with the NHI white paper and ment’s definition, NHI is a health fi- needs and irrespective of their socio- relief from serious challenges” they’re tion for Economic and Social Develop- R1100,00 NHI bill, which seeks to achieve univer- nancing system that pools funds to pro- economic status. experiencing in the current medical ment, and it is important to ease the sal healthcare. vide access to quality health services for While NHI is phased in, beneficiaries scheme regime. “The nature and mag- financial burden on South Africans. According to the Health Depart- all South Africans based on their health of medical schemes need “immediate nitude of the challenges is that it will • Continued on page 5 CENTURION D5 
EVO KIT as “abusive behaviour” towards the news Drag race smash-up: City boss on new another to sit under the glare of cross Teen in court — Page 2 ‘job-rigging’ tape — Page 3 R3900,00    

STEED 52.2MPI 4X2 WORKHORSE STEED 52.2 MPI 4X2 D/CAB BASE STEED 5E 2.4 SX 4X2 D/CAB editor, Ingrid Harrison. 33Y YRR1 10000 000 KM WWAARRANTYRRANTY F/L 5YR100 000 KM WARRANTY 5YR100 000 KM WARRANTY examination,” said Singh. He said he

     “Sanef believes that Singh is abusing     had witnesses that proved Regchand    
    
     900 900 900 4EL    s&AX    s%MAIL 3AYED GWMPMBCOZA 154 R174 R209 4YRONE .AIDOO    s3BU .DBELE    From R From From his position and using his authority 7ESLEY -URUGAN    s!NDRE "ESTER    colluded with Mootheram while, in the as a senior magistrate to harass and Panday matter, he had witnesses and intimidate reporters in relation to cases as a Senior Magistrate and remain evidence that proved Panday’s claims in which he himself is a party,” said the aloof; however, I cannot do so any longer. made in his application were fabri- statement. The article carried photos of the Chief cated. The same day Singh said in a rambling Magistrate and myself, both non-whites “Panday sued the NDPP and the letter sent to various media houses, but no photos of the two white complain- DPP; he’s sued seven or eight pros- including The Witness, that the publi- ants.” ecutors, he’s written a book on how cation was “a very dishonest, malicious He accused Regchand of having much money he’s stolen, what a thief and racist newspaper”. He said the arti- having broken court rules, and said that he is, how he was a ‘general’ in prison. cles in dispute did not give him a “right her behaviour in the courts was being He’s a convicted criminal but he has to respond”. investigated by him as the “Magistrate never taken a single matter to court. “This tabloid with its declining figures in charge of Quality Assurance”. He circulates [his applications] to is on the brink of collapse specifically “CCTV footage will show Regchand journalists and he gets the maximum because of its poor journalism,” said confronting me and attempting to poke bad publicity on everybody and not Singh. He accused Panday of bringing her finger into my face,” Singh added in a single case goes on. We have a case “dozens of applications against most his letter. against him for defeating the ends of senior state officials and [then] with- “Rest assured that your editor Yves justice. He will be charged and he will draws the actions after defaming them and Sharika [Regchand] will have to go to jail,” Singh told Noseweek. Singh through unethical reporting”. He also repeat the allegations in court as I denied the accusations made against accused The Witness of not reporting have commenced legal proceedings him by Regchand. on “Mootheram’s nude pornographic against them. They will not be able to When The Witness complained to chief selfies” which had been “widely circu- hide behind the newspaper. I view your magistrate Monyemore about their jour- lated in Pietermaritzburg” and which Editor’s conduct as racist and malicious nalist being moved to the back of the was “the subject of an ongoing investiga- and self-serving.” court, she responded by saying that it tion which The Witness withheld from its Portions of this letter were published was a “standing rule that if the media readers, yet chose to defame me through by The Witness on 2 August. Editor wish to do coverage in any court, permis- its newspaper”. Vanderhaeghen responded: “The sion must be obtained in writing from Singh said he “had to exercise restraint reporter maintains that she did not the Chief Magistrate’s Office”. n

Cellar Door open After Hours Monday - Friday 09:00 - 17:00 tasting at Saturday 09:30 - 15:30 96 Winery Road

Cnr of R44 & Winery road, between Somerset West & Stellenbosch | GPS: 34° 1’ 39.06 “ S 18° 49’ 12.83” E Tel +27 (0)21 855 2374 | [email protected] | www.kenforresterwines.com

NOSEWEEK September 2018 17 Notorious KZN hitmen go to trial – fnally Glebelands Hostel killers-for-hire will face the state in September. By Desireé Erasmus

FTER YEARS OF INACTION, A RISING to be among the numerous “hitmen case. During each appearance in the body count, hits on witnesses for hire” who operate throughout Durban Regional Court, the gallery and stories of crooked cops KwaZulu-Natal particularly and has been packed with supporters of being up to their eyes in the other provinces. (More about this in a the accused. Heavily armed police violence at Durban’s Gleb- future report. – Ed). have also been in attendance. Several elandsA Hostel, eight alleged killers The arrest of Durban Central of the supporters sitting casually in will finally stand trial in September. undercover cop Mdweshu came as the public gallery were pointed out to One of the accused is a former senior no surprise to many hostel residents Noseweek as being known hitmen. police officer. and some SAPS members who spoke But the show goes on, albeit The case of the Glebelands Eight to Noseweek. Human Rights activist cautiously. Paver has been placed (previously seven accused) has been Vanessa Burger, who has worked with under 24-hour protection following dubbed a slam-dunk, but as expe- victims of violence at the hostel for death threats, information he shared rience has taught, when it comes years, and KZN violence monitor, Mary with the Durban Regional Court in to convictions for things to do with de Haas (Nose201), who researches April when he opposed bail applica- hostels, taxis or politics in KwaZulu- political violence in the province, did tions brought by the accused. All were Natal, scoring is not assured. not express shock, either. Mdweshu’s denied bail. Critically, in this case, the pros- name and his alleged criminal activi- Noseweek understands that the ecution is at an advantage. Already, ties have long been no secret. In fact, disgraced undercover detective was two of the accused are serving life Mdweshu’s name and rank were planning a hit on the advocate from sentences for murders committed at emailed to senior police manage- Westville Prison, where he had the sprawling, squalid Glebelands ment at Umlazi Police Station back obtained access to a cell phone. complex – crimes that occurred in 2015 as being one of several police The reign of terror perpetrated outside of the timeline in the case officers alleged to be implicated in the by the eight came to an end in July against the Glebelands Eight. violence, including hits, at the hostel. 2017, when all Glebelands-related Noseweek has learned that there The cluster commander and other top cases were handed to a three-man is also “solid” DNA and documentary brass have denied ever receiving the special team appointed to investigate evidence linking Durban Central email. murders and attempted murders at Police Station undercover detective Seasoned State advocate Dorian the hostel. Bhekukwazi Louis Mdweshu, aged 37, Paver is prosecuting the Glebelands The three men were chosen because to at least one of the crime scenes. Eight who are charged with common they had no known links to the Umlazi Witnesses – who are either rival purpose for crimes committed at the Police Station: Lieutenant Colonel “gang” members or victims – are hostel between August 2014 and Bhekumuzi Cosmos Sikhakhane was lining up to tell their tales of horror. March 2016. shipped in from Ulundi, Lieutenant The State’s witness list stands at over Mdweshu is alleged to have been the Colonel Mbhekeni Bongani Mazibuko 100 people. orchestrator of several killings and from KwaDukuza (Stanger area) and The alleged killers were arrested alleged to have been the go-to man Detective Warrant Officer Thulani between December 2017 and April for recruiting hitmen. He was identi- Robert Mwelase from Durban Central. this year. Initially seven men, now fied as the de-facto boss of the alleged The men report directly to Brigadier eight, were arrested on suspicion of gang, and is accused of “managing Tebogo Mbhele, provincial head of the being at the heart of many unsolved an enterprise conducted through a organised crime unit in KZN. murders and attempted murders at pattern of racketeering activities” In an affidavit placed before the Glebelands. Some of the men have throughout the period. court, lead investigator Sikhakhane also been linked to assassinations Slam-dunk or not, prosecutor explains: “[Brigadier Mbhele] and assassination attempts outside Paver has faced some nasty chal- instructed my team to intervene… the hostel complex, and are believed lenges since being assigned to the because the matters were not being

18 Some of the Glebelands Seven (before Central to the violence at they became the Glebelands Eight) at Glebelands, it is alleged, is ANC Ward their bail hearing in Durban in April Councillor Robert Mzobe, now serving Several Umlazi his third term in public office. Should satisfactorily investigated at station he complete this term, he would have level, being the South African Police been the Glebelands Hostel’s coun- Service at Umlazi.” In fact, several police officers have cillor for 15 years. Umlazi police officers have been Advocate Manyathi is quoted by named as collaborators in violent News24 saying: “We heard evidence crimes and some allegedly have links been named as that there were several demonstra- to the hitmen. tions to have the councillor removed. There is “a plethora of cases” that collaborators in The perception was that he was [the] had to be reworked, according to instigator of violence. The plea from Sikhakhane’s affidavit. residents was ignored by the ANC However, Noseweek has learned violent crimes and locally and provincially.” that three Umlazi warrant officers – Glebelands is not alone as being Shabangu, Madonsela and Ngcobo – something of a crime-ridden cesspit who worked on the Glebelands cases some allegedly have that appears to be low on eThekwini before Sikhakhane and his team took Municipality’s clean-up list. Other over, did much of the legwork. links to the hitmen hostels in the metro area can be They were never implicated in any described similarly. But two impor- corruption and managed to secure a tant factors set Glebelands apart from life sentence in September last year the other poorly maintained hostels in for the killer of Sipho Ndovela who brass contends that the murders at the metro. First, it is the only complex was shot execution-style outside the the hostel are “pure criminality” and that has been described before a Umlazi Magistrate’s Court in 2015. have no links to politics, the evidence- formal commission of inquiry as being Ndovela was a witness to the murder leader for the Moerane Commission “a haven for hitmen” by more than one of another Glebelands resident and of Inquiry into political violence in witness and in a variety of ways. The was waiting for his police escort – the province made an interesting arrest of the Glebelands Eight and which was supposed to be with him connection. During his closing argu- their subsequent court statements throughout the duration of his appear- ments before the Commission in certainly appear to prove this. ance – when he was shot in the back of March, advocate Bheki Manyathi said Second, is that a report released by the head and in the heart. Glebelands was central to the political the Public Protector last year found While the province’s top police violence in KwaZulu-Natal. that the municipality had completely

NOSEWEEK September 2018 19 “failed” the hostel’s residents, as here, he thinks he knows the coun- had the police, the metro police and cillor, even if we don’t know him.” department of social development. Glebelands is estimated to have Since the release of the Public Accused Number between 20,000 and 22,000 residents. Protector report, it seems that only It was built to accommodate about the police have taken steps to address 12,000. There are no official numbers the violence at the hostel – including One told the because there has not been an official establishing a satellite police station head count – no resident list exists. in the grounds – which has not stopped prosecutor Dorian This, says Mzobe, is where the the violence. The number of murders violence started – with the allocation at Glebelands since 2014 is impossible of accommodation, an administra- to tally accurately. Varying accounts Paver that, to his tion issue that lies with the council, by police, the Public Protector and not an individual councillor. “It goes activists put the number between 50 back to the main battle of violence and 100. knowledge, the here, it’s about beds. How did people Trying to separate murders and get allocations here? It starts back attempted murders according to “pure Glebelands death there. Because some of the people are criminality” and “politically moti- lawful and other people are unlawful. vated” is even more difficult, but some That’s where the problem starts; put the overall tally closer to 200. toll stood at 180 access control… Family units [are] And Khayelihle “Mroza” Mbuthuma, the answer to all the problems govern- Accused Number One (of the eight), ment is facing at the hostels.” told Paver during his prosecution for were “just criminal”. Glebelands is awash with security. another “contract-style killing” at Why then, Noseweek asked, was A satellite police station was officially the hostel in 2017 – unrelated to the his name repeatedly linked to the opened on 1 December 2017; there are charges against the Eight – that, to violence? Mzobe at first declined to between 60 and 70 CCTV cameras; his knowledge, the toll stood at 180. answer, but then said: “Everybody Metro police and private security In a face-to-face interview with has freedom of expression, freedom of guards patrol the area. None of this, Noseweek (a rarity, we are told), speech. They can say anything about however, stopped the latest spate of Ward Councillor Mzobe denied any you. Particularly us, as public serv- violence in early August in which involvement whatsoever in any of ants, we are not protected [by] anyone. three people died, one of them, a secu- the violence. He said his first job had “Anyone can insult you, just insult rity guard. been in construction, he then worked you in public, we are not protected, Noseweek has been told that the for the OK Bazaars and after that for you see. I can’t answer that question, streetlights in the area where the “a concrete company”. At one stage but anyone who says Mzobe is part guard was killed are still not working, he was also a social facilitator for and parcel of it, he has to prove it. rendering anything that may have KwaZulu Finance Development before How?” been captured on CCTV useless. it became Ithala Bank. He resigned Noseweek has been told by three Fixing all streetlights was one of in 2005 and was elected Glebelands independent sources that Mzobe and the remedial actions in the Public councillor in 2006 after fellow resi- disgraced detective Mdweshu had Protector’s report. dents asked him to stand. a close relationship. Not true, said Mzobe told Noseweek that the city Tall, big-boned and serious during Mzobe. “I knew him as a resident, council was doing “all we can do to the interview at his hostel-based but not my friend or my neighbour; make things good here, but it [also] office, 53-year-old Mzobe said that we are not sitting in the same flat depends [on] the community”. the Glebelands violence, including [socialising]. I know him like I know The city’s efforts to do “all it can murders and attempted murders, anybody here. Anybody who lives do” involves a R75-million tender

20 approved on 29 August last year. The He said he does not feel particularly contract, according to Mzobe and a safe in his single quarters, adding: “I city official, is to be used for upgrades am not feeling safe if the people I live stipulated in the Public Protector’s with are not safe. Even as a councillor, report. The municipality says the you always have threats. People come three-year contract was procured in to your office, they try to fight with terms of section 32 of the Municipal you and say ‘hey, you can’t have this Finance Management Regulations. because of this’.” “…the contractor carrying out the Mzobe has twice had his office developments at the Glebelands burned down, allegedly by unhappy Community Residential Unit has a residents. contract with another organ of state. His most recent risk-assessment So we, as eThekwini Municipality, was in 2017 or perhaps at the start never issued any tender in this of 2018, he is not sure. “As I am not regard,” the municipality told conducting it, it depends on when- Noseweek. [This tender and others ever anyone comes from Intelligence will be unpacked in a future issue. – saying, ‘I want to have an interview’. Ed.] I don’t record that, because it is their The project, says the municipality, own business. Even if they will come “entails conducting a conditional tomorrow, I have no control over that,” assessment of all council assets, he said. He does not lose sleep over repairs, refurbishment and main- things his detractors may say: “The tenance, attend to all Occupational people who are voting for me are not Health and Safety related problems”. those individuals who want to make The city says Glebelands residents tall stories about me. It’s about the “will be involved in various ways, people who come stand in the queue for example, employment of local to vote for me.” residents, and emerging local busi- Pressed again on whether he felt nesses will be utilised to respond safe at Glebelands, Mzobe said: “It’s IF YOU RENT PROPERTY to emergency maintenance issues not safe according to the environ- and repairs”. But residents say that ment, but I have no choice, I have to KEEP THIS NUMBER has not happened. A few (unskilled) serve our people here. I have to be Mzobe loyalists have allegedly been with them, all the time.” I CAN HELP YOU WITH hand-picked as the group of “local Returning to questions about PROBLEM TENANTS residents” mentioned above. evictions, Mzobe said there were Mzobe, however, denies any involve- “too many institutions” that had an I CAN ASSIST YOU WITH THE ment in tenders and contracts. “I am interest in Glebelands. “It is very RENTAL HOUSING TRIBUNAL involved in tenders because I am just difficult to take all of the stake- a councillor, not an official, I am not holders and bring them together IF YOU DON’T NEED ME NOW, working [in] the procurement depart- and agree on what kind of policies to ment. I am not doing any [tender] have,” he said. YOU WILL LATER allocations.” Government could not have one Mzobe denies the rumours that he policy for Glebelands and differing JOHN: 082 901 0824 is related to Jacob Zuma and that he policies for other hostels, he said. is a taxi owner. “I am Mzobe, [Zuma’s] “There is no easy way, but the govern- mother is maMzobe, but it doesn’t ment of the day, I can tell you, it has mean that we are related. I [never done a lot at Glebelands to change even went to] any parties for him” nor the lives of the people.” had he been to Zuma’s house, he said. When there is a killing at the He also denied having any businesses hostel, people tend to forget about the or work, aside from being a councillor. good that has been done, he said. “I am the poorest of the poor. How can The Glebelands family units, I stay here if I have money?” Mzobe said, are his greatest achieve- Mzobe says he does have a family ment to date. “Women and children homestead that he travels to, and were not allowed to set foot in this points out that at Glebelands he place. There is now even an early lives in an “old style” block – the old, childhood development unit here.” n single-quarters where some of the Research for for this story was funded by alleged hitmen were accommodated – the Taco Kuiper Fund for Investigative and where most of the violence takes Journalism, administered by Wits place. Journalism.

NOSEWEEK September 2018 21 Son of Gauteng Despite struggle roots in Gauteng’s Alexandra township, frst- hand experience managing SA’s richest province and the chops to lead the ANC, the party’s treasurer Paul Mashatile says for the moment his sights aren’t set on high position but rather on the nuts and bolts of working with Cyril Ramaphosa to get the economy humming. By Susan Segar

HEN ZWELI MKHIZE HANDED have risen to positions of influence are saying, ‘you guys are beginning to over the ANC purse strings – who has street politics in his blood. do the right thing’. We need to stick to to their new Treasurer Paul A former Finance MEC and Premier that. People like that we are decisive Mashatile earlier this year, of Gauteng, he’s been labelled “enig- about the land question, because they he warned that the party’s matic”, “ambitious” and “courageous”. are hungry for access to land. They debtW of about R200 million could only He spoke out against Jacob Zuma long are also happy that we are acting deci- be reduced if the ANC restructured. before most comrades dared do so. sively on corruption. We are bringing It had incurred substantive costs – Now, since being escalated to become back the image of a party that is caring, largely through the ANC congresses in a member of the ANC’s top six and as opposed to arrogant. Polokwane and Mangaung – and owed Treasurer General of the party, he “The feedback we are getting is that millions to service providers. faces his biggest challenge yet: to help people who did not vote ANC in the “The debts were huge and we’ve not turn around the country’s economy. last election are now returning to the paid all of them off,” Mashatile said in “The economy is top of the agenda at party they know. People are saying an interview with Noseweek, following Luthuli House. We discuss this all the ‘because of what you did in December, an address to the Cape Town Press time. We have to get the economy right we are ready to come back and vote Club. “We are restructuring as [his and create employment. The growth for the ANC’. But leadership is about predecessor] Zweli recommended and forecasts are not good yet but we’re consistency. As the new leadership of looking at how to pay off the debts putting all the ducks in a row.” the ANC, we must sustain this.” and ensure long-term funding. We Despite the challenges, Mashatile Political analyst Dr Somadoda are also looking at how other progres- is buoyant that, in facing next year’s Fikeni says of Mashatile: “He has a sive parties on the continent run their General Election, the ANC will be a very bright future, having shown his funding. The ANC is a complex organi- much stronger party than in the 2016 skills in various powerful positions sation and turning it around cannot be poll. “Then, we were weak, divided and in Gauteng… he’s also on the right done overnight.” perceived as arrogant and tolerant side of history as he chose very early Asked how much money was needed of corruption. The December confer- to be critical of the Zuma administra- and where he intended getting it from, ence created a new hope that we are tion. He understands business and the Mashatile was coy. “It’s confidential… returning to the ANC we were under economy. Importantly, he also brings I don’t want my opponents to know Nelson Mandela and Thabo Mbeki.” the experience from within the ANC in how much money I need.” Recent surveys by market research its declining years.” Paul Mashatile is a tall man with group Ipsos, he said, were very encour- Commentator Ralph Mathekga a golden smile, who “still dresses in aging. They showed that the new says: “Paul cemented his presence Mapantsula township style”. He’s a president had been broadly accepted in Gauteng… and look how Gauteng somewhat controversial member of the by South Africans. He was polling at defined itself, by raising its hand first “Alex mafia” – a group of former activ- 68% and the ANC, above 60%. “We [against Zuma]. They were not afraid ists from Alexandra township who think that’s an indication that people to be critical of the ANC – even though

22 ANC treasurer Paul Mashatile they might not have been entirely collection and of raising investments, clean themselves. Nevertheless, Paul is Ramaphosa on his recent two-day a man of the people, somebody who can Mashatile has trip was given separate investment twist arms and forge decisions. We will commitments of $10 billion each from see him rise even higher in the ANC.” worked closely Saudi Arabia and the UAE. “This is Said Mashatile: “Serving in the top the equivalent of R240bn. This is what six of the ANC is the highest position we will continue to do. There is a posi- you can attain in the organisation. with Ramaphosa tive response coming from all over, but Together we look not only at the ANC, we’re highly aware we need to correct but at the country. If we get it wrong, our institutional frameworks and the it goes wrong all the way down. The on economic issues, governance of our state owned enter- whole country is affected by our deci- prises if we want to succeed.” sions. Running the ANC and handling joining him in Davos In his address to the Press Club, its finances is a mammoth task. I want Mashatile spoke about the ANC’s to do this properly.” commitment to organisational renewal, Mashatile has been working closely in January and economic recovery and African develop- with President Cyril Ramaphosa on ment. He also gave reassurances about economic issues, joining him in Davos a fair and rigorous procedure for land in January and travelling to London, travelling to London, expropriation. Saudi Arabia, the UAE and several Organisational renewal and modern- African countries to talk business. He’s Saudi Arabia and the ising the ANC required political educa- off to the United States in September. tion, he said. “People who join the party Mashatile says that despite his must understand the ANC is not a worries about the country’s cash- UAE to talk business place to enrich oneself but a place to strapped coffers, the challenges of tax- serve the people. Our head of political

NOSEWEEK September 2018 23 education, Fikile Mbalula is now full- tion. Although privatisation was not an Despite his assertions that the ANC time at Luthuli House and working on option, the ANC was willing to engage was hellbent on fighting corruption, this. It will take time to ensure proper with the private sector on equity invest- Mashatile seemed taken aback when organisational renewal but we have ments in SOEs. He stressed these questioned about the recent election started and we are happy with our investments would be minority stakes of Tony Yengeni as head of the ANC’s efforts.” and not a complete outsourcing, unless crime and corruption committee, He said the ANC hoped to use the the entity was unable to recover. and the election to the Gauteng Public Investment Corporation (PIC) Land expropriation, said Mashatile, ANC’s provincial executive of former to tackle the problems of state owned “must be done in an orderly way and health MECs Qedani Mahlangu enterprises (SOEs) and to stabilise not with land-grabs”. and Brian Hlongwa. Mahlangu was Eskom by turning its R120bn loan into “When we start rolling out land Gauteng Health MEC during the Life equity. He proposed that Eskom – “an redistribution, restitution and secu- Esidimeni tragedy in which at least 144 elephant that is too big to walk” – would rity of tenure, we will look at all land, patients died, and Hlongwa is facing a be more manageable if split into three including land owned by the state. probe by the police’s SIU for alleged companies with different functions: We will not expropriate land that is corruption. Yengeni was convicted for production, transmission and distribu- already being used productively.” fraud in the early 2000s. From Alexandra Township to Luthuli House

AUL MASHATILE WAS BORN IN positions. When he was deputy presi- always in and out of jail.” 1961 in Gerhardsville, a small dent of the ANC, he could have ended Mashatile was detained without trial township near Pretoria. His up being president, but he’d say to us, on and off over four years from 1985 to father, Diamond, was a priest ‘I’m not going to Parliament… I want 1989 after the government declared a and his mother, Nomvula, to just work with you guys at Luthuli state of emergency. aP domestic worker who was also an House’. He really loved the ANC. Those “We were charged for the bus boycott, informal trader. guys were strong influences in how I but won the case… and then the state of Aged 16, Mashatile went to live saw the ANC and my commitment to emergency was declared. I was returning with relatives in Alexandra township, leadership.” from the funeral of the Cradock Four Johannesburg, to attend high school. When Mashatile left high school, with some friends and we were stopped His passion for soccer had to take a back his plan was to study at Wits “but a at a roadblock and arrested and jailed seat when he became politically active funny law that required ministerial in the Sun City prison, where we stayed as a student at Alexandra High School. consent to get into Wits, and because for seven months. I came out in 1986 He joined the Congress of South African we were hardened activists, made that for three months and then was arrested Students (Cosas) to try to address option impossible”. He only got around again till 1989. It went like that for four students’ problems and co-founded the to studying some time later, while in years without trial.” Alexandra Youth Congress (Ayco) in prison, when he signed up for a BA Law While in detention in 1989, Mashatile 1983, of which he was elected the first with Unisa. “Being in and out of prison joined a nationwide protest and president. meant I was always missing exams, so embarked on an 18-day hunger strike. He was close to his father and I didn’t finish.” He is currently studying “We wanted the world to know we were strongly influenced by him. “He was economics through the University of being kept in jail indefinitely without a very humble person: a giver, not a London. trial. When I came out, my flat in Alex taker. I used to help him at his church, At 23, Mashatile was elected the was bombed in the early hours while working as his secretary and teaching assistant general secretary of the I was staying there with the secre- in the Sunday school in the early ’80s. United Democratic Front (UDF), tary of the Ayco, Jacob Mtshali, but we “Many people thought I would become a Southern Transvaal Region and later survived.” priest but my political activities started became its general secretary from 1989 Mashatile was a key player in taking up all my time.” until political parties were unbanned in re-establishing the structures of the The young Mashatile and his Alex 1990 and the UDF was dissolved. ANC and the SACP when these organi- comrades were fascinated by the then Throughout his years of activism, sations were unbanned in 1990. He imprisoned Nelson Mandela, as well as he was harassed by the security police was appointed General Secretary Oliver Tambo, Walter Sisulu and other who also tried to assassinate him. of the SACP in Gauteng. He was struggle heroes. “When Chris Hani “Growing up in Alex, they would regu- also appointed as the ANC Branch returned from exile, I worked with him larly theaten to deport me to Pretoria Organiser in Alexandra and Branch when I was UDF secretary in the then because my reference book said I was Chairperson for the SACP. He helped Transvaal. He was a very down-to- from Pretoria. They said I had no right build ANC branches throughout South earth man and I loved him. to be in Alex. They continually harassed Africa. He also served on the Interim “Walter Sisulu had no interest in my comrades and me, and we were Leadership Group of the ANC in the

24 Mashatile said the ANC’s integrity affinities with trade unions, tradi- on hearsay,” he told Noseweek. “When body should decide on the controver- tional leaders, youth formations you look at all the departments I ran sial appointments/elections. and civil society organisations. His in Gauteng, including the GSSC, there While Mashatile clearly has a constituency is largely in business. is no evidence of corruption. People powerful future in the ANC, analyst In considering ANC power blocs, he just didn’t like us tampering with Fikeni has this to say: “His rise would needs to strengthen these connec- entrenched interests. I am one of the never have happened without the tions.” few leaders who emphasised empow- skills needed to play a role in the Then there’s the matter of his links erment …corruption by the Alex mafia richest and most populous province to the “Alex mafia”. Mashatile and his does not exist. We ran Gauteng well. in the country and the one with the friends from the anti-apartheid move- “One of the biggest projects I was most demanding stakeholders because ment grew into powerful figures of responsible for in Gauteng was the of its industrialised, urbanised base. influence in Gauteng and have been Gautrain – which ended up being a “But I have not yet seen a solid linked to alleged corruption in enti- R26bn project. There is not single alle- constituency for him outside of ties like the Gauteng Shared Services gation of corruption related to that Gauteng and he does need a stronger Centre (GSSC). project – and it is one of the biggest national profile. He also has no strong “Those Alex mafia stories are based projects we did.” n

Pretoria-Witwatersrand-Vereeniging Mashatile took over as premier of the Gauteng Integrity Commissioner (PWV) region (of the former Transvaal) province from October 2008 to May cleared Mashatile of a conflict-of- led by Kgalema Motlanthe. 2009 when Nomvula Mokonyane was interest in the Business Connexion He was later appointed head of polit- made premier. saga as he had declared, then disowned, ical education for the ANC PWV region. He then served as Jacob Zuma’s his own shares in the company. During the ’90s, he formed a strong deputy minister of Arts and Culture Kekana and Sithole were share- base in Gauteng which supported his before being appointed as minister in holders in Business Connexion. rise through the ranks in politics. that department, a position he held Mashatile has always denied the In 1992 he was elected the Provincial from November 2010 to May 2014. allegations of corruption, accusing Secretary of the ANC, a position he At the time, the ANC in Gauteng his naysayers of having a personal retained for six years, under Tokyo had become very vocal against Zuma’s vendetta against him. Sexwale as Chairperson of the province. shenanigans – and few were surprised Mashatile also has a reputation as a In 1994, Mashatile became a member when Mashatile was axed by Zuma survivor who is able to sit out contro- of the Gauteng Legislature and was as minister, with many seeing it as a versies, including the R96,000 dinner appointed Leader of the House, serving punishment for his role in talking out bill he clocked up in 2006 by hosting ex-officio in the Gauteng Cabinet. against Zuma. a post-Budget Speech dinner for 200 In 1996, he was appointed Gauteng Through the years in Gauteng, guests. MEC for Transport and Public Works. Mashatile became known as the “don” of He has stoked concern in the ANC for He went on to hold numerous posts the so-called “Alex mafia”, the network his often vocal opposition to the white in the Gauteng provincial govern- of old struggle-buddies who, after rising monopoly capital narrative. ment, handling the portfolios of Safety through the ranks to become powerful On 18 December 2017, Mashatile (1998-1999), Housing (1999-2004) and and influential in Gauteng, were linked was elected Treasurer General of ANC Finance and Economic Affairs (2004- to alleged corruption in the province’s at their 54th national conference, 2008). administrative agency, the Gauteng meaning he had to relinquish his posi- As MEC for Finance he was effec- Shared Services Centre (GSSC). The tion as Gauteng chair of the ANC. tively responsible for an annual provin- four friends appeared intertwined in a Mashatile is married to Manzi and cial budget of more than R40 billion number of business dealings. has four children. In his spare time and for keeping the country’s economic The anti-apartheid activists included he watches soccer – he is an Orlando hub running. He also became head Mike Maile (former CEO of the GSSC), Pirates supporter – or motor sports, and of a number of entities, including Nkenke Kekana and Bridgman Sithole. visits friends or reads. the Gauteng Economic Development Mashatile also courted controversy for He reads a lot about China, particu- Agency, the Gauteng Shared Services allegedly failing to declare his stake in a larly the country’s president Xi Centre and the Gauteng Tourism number of companies and for awarding Jinpeng. “I want to understand what Authority, to name a few. shadowy tenders. is happening in this country that is In 1998 he became Deputy Chair- These included: in 2007, it was already the second-biggest economy in person of the ANC in Gauteng and in reported that IT company Business the world, driven by him, what kind of 2007 was elected chairperson of the Connexion employed Mashatile’s person he is and the issues he is dealing province, beating his rival, Education daughter, Palesa, while waiting for with.” MEC Angie Motshekga to the post. the outcome of two big tenders from Mashatile’s political style is “to work In 2008, after Gauteng Premier the GSSC, which was answerable to with people honestly”. One politician he Mbhazima Shilowa resigned in protest Mashatile. admires is Abraham Lincoln: “He fasci- against the ANC’s decision to remove The company won both tenders in nated me. I loved his style of leadership, President Thabo Mbeki from office, 2005 but lost others. However, the his way of “bringing in the rivals”. n

NOSEWEEK September 2018 25 From another country Doing healthy business Are açaí and goji berries, as well as quinoa really super foods – or do they just fetch super prices? By Tom Philpott

HEY’RE WIDELY VILIFIED, BUT FOOD industry marketers really do have a tough job. People can only eat so much, and in in- dustrialised countries where foodT is plentiful, they don’t tend to consume more of it as their incomes grow. Unlike sales of, say, personal computers in the 1990s or tablets in the 2010s, overall food spending tends to be pretty flat – it rises roughly with the growth of population. One way the industry responds to this stagnation is to roll out “new and improved” products – an endless grope for bigger pieces of a slow-growing pie. Junk food manufacturers are masters of this game: Smokin’ Bacon Ranch Miracle Whip Dipping Sauce, anyone? But the natural-food industry does it, too – with superfoods such as açaí berries, goji berries, quinoa, and chia seeds. These pricey, often exotic ingre- dients cycle quickly in and out of the foodie spotlight. Açaí berries were barely known outside of Brazil a decade ago, but in 2012 açaí-laced products Gojis being shovelled at the Zhongning market in China grossed nearly $200 million in the United States. And while açaí sales have dropped recently as their novelty unsubstantiated health claims in viola- phytochemicals. The only problem is has worn thin, coconut oil – touted as a tion of the Federal Food, Drug, and that lacking an exotic back story, food wonder fat – is picking up the slack. Cosmetic Act. marketers can’t wring as exorbitant Some of the super claims are true: Nor do all superfoods come from the a markup from these staples: the Açaí berries, native to the Amazon rain- pristine places that their packaging domestic blueberry, for example, is peri- forest, and goji berries, produced mostly would suggest. One prominent US goji odically (and justifiably) marketed as in northern China, are indeed loaded supplier, Navitas, calls its berries a a superfood, and in recent years, prod- with phytochemicals, plant compounds “Himalayan superfruit,” but the compa- ucts featuring blueberries as a primary that seem to protect us from heart ny’s website reveals they’re a product ingredient saw their sales nearly quad- disease, brain deterioration, and cancer. of China, grown in the “lush, fertile ruple. But they still only raked in less And quinoa, the seed of a spinach-like valleys of the Ningxia Province.” That’s than 2% of açaí-based product sales. plant grown in the Andes, really does nowhere near Tibet – and, it turns out, Yes, the food industry’s hawkers have offer a complete, high-quality vege- most of the world’s goji berries hail from a tough job – and you can make it even tarian protein. industrial fields in this region. tougher. The real superfoods are lurking Other boasts are, well, less true: Açaí If that doesn’t faze you, perhaps this exactly where marketers don’t want you and goji berries are not really miracle will: Quinoa may deliver a complete to look: in produce sections, bulk food cures for everything from obesity to protein – all of the amino acids you aisles, and backyard gardens. Not quite sexual dysfunction. Indeed, in 2006, require – in a compact package but as exotic as the Himalayas. But then the US Food and Drug Administration rice and beans together actually do again, neither are those industrial plots (FDA) reprimanded two different goji better. And like goji berries, blueber- in China where goji berries actually product manufacturers for making ries and strawberries are packed with come from. – Mother Jones n

26 From another country Why big banks LOVE paying fnes to the US government The $2bn fne Deutsche Bank happily paid to the Federal Reserve for breaking the law was the equivalent of a motorist paying a $150 speeding ticket – no big deal

HEN VOLKSWAGEN EXECUTIVES throughout 2017, Wells Fargo’s noto- selling of various currencies with found out that United rious “fake account” scandal was found competitors. The bank also failed to States regulations would to have affected millions of customers. follow some of the rules on using the kill off one of their diesel Wells Fargo paid $185 million in bank’s own capital for certain invest- models, they pulled some fines for the fake account fraud. They ments. Because Deutsche Bank is tricksW to fool them by installing soft- paid $1 billion for the car-insurance government insured, the rules limit ware that misrepresented the emis- scam. what kind of investments it can make. sions their vehicles released. In the past decade, Wells Fargo has Deutsche Bank said it was happy to But the US found out and arrested been fined $11.8bn. This includes the settle with the Federal Reserve. Why? several VW executives – one of whom money it cost the bank to redress the Because their assets are pushing $2 was sentenced in late 2017 to seven damage done to customers, and even trillion according to Forbes. The bank years in prison for his role. that was lacking. brings in tens of billions of dollars each How does the US government Volkswagen fines and settlements year. Under the circumstances, $156m respond when a business directly have topped $25 billion. The next- is a small price to pay to get the Fed victimises hundreds, thousands, or highest fine paid by an automaker was off your back. Especially if you want to tens of thousands of its own customers? $900m. That was when 126 customers keep doing what you are doing. Look no further than banker Wells died because of a faulty GM part. That fine was less than one- Fargo, which has repeatedly screwed Accidentally kill a hundred people hundredth of one percent of their its customers, yet not a single execu- or intentionally rob your customers, balance sheet. It’s like an average tive has gone to prison. and it is no big deal. Lie to the US American getting a $10 parking ticket. Sovereignman.com sums up the last government, and you’ve gone too far. Deutsche Bank paid over $2bn few years of scandals: The fact is, Volkswagen and its exec- in fines a couple years ago to settle “The ink isn’t even dry yet on the utives made an irresponsible move, charges that it conspired to manipu- $1 billion check that Wells Fargo which cost investors dearly. But the late interest rates. That was like a wrote in April as a penalty to settle US response is draconian, especially $150 speeding ticket. You might slow its previous scandal, in which 570,000 when compared to the country’s treat- down for a while, but does your overall clients were defrauded in a car- ment of the banking industry. behaviour change? No. You’ve got insurance scam. As many as 20,000 No one from Wells Fargo has gone to places to be! This is simply the cost of of those clients may have had their prison despite intentional theft from doing business. Fines to punish banks vehicles repossessed as a result of customers. are small, compared to how much the their inability to pay for the insurance Volkswagen didn’t actually victimise banks make from the misconduct. that Wells Fargo illegally stuck them any individual – which makes it clear Banks basically legally pay-off the with,” the news site reported. that this response is meant to make government to say that everything In October 2017 Wells Fargo was an example out of VW and its execu- has been resolved. found to have deliberately recom- tives: this is what happens if you Who gets screwed? The taxpayers mended investment products that mess with the US government. On the who expect the government to watch were “highly likely to lose value…” other hand, why would the US govern- out for them, and the consumers who Earlier that month, the bank ment care to make an example out of rely on the banks to behave appropri- admitted that it had “erroneously” Wells Fargo? They only screwed their ately with their money. This is why charged late fees to more than 100,000 customers, not the government. governments are such poor regulators. borrowers, even though the delays Wells Fargo brings in about $6bn per They don’t care about protecting the were the bank’s fault. quarter. When a government fines a consumers. They are more interested In 2016, a number of employees bank, it is tough for outsiders to know in making money. The government is at various Wells Fargo branches in what kind of effect that has on the essentially charging a fee to look the California were found to have sold bottom line. For many banks, millions other way and allow banks to continue sensitive customer information, or billions, which sounds like a lot of screwing their customers. including Social Security numbers, to money, is just a drop in the bucket. • This is an edited version of an article a ring of identity thieves. The US fined Deutsche Bank $156m first appeared in The Daily Bell, a US And of course, in late 2016 and after it coordinated the buying and Libertarian online publication. n

NOSEWEEK September 2018 27 Books MICHIEL HEYNS

Inside view. Tale wagging the dog

N THE EARLY NINETIES AN ASPIRING YOUNG more than a device: he is drawn into the Tasmanian writer called Richard web of deceit and self-deception of his Flanagan was approached to ghost- subject, and finds his moral preconcep- write the autobiography of the no- tions, his notions of good and evil, chal- torious conman John Friedrich, lenged and even destroyed. Both Kurtz Iawaiting trial for defrauding banks and and Heidl become representatives of other institutions to the amount of near- “the horror”, in Conrad’s phrase, under- ly $300 million Australian dollars. The lying what we regard as civilised society emolument would be AUD10,000, the – in Conrad, colonialism, in Flanagan, main condition being that the book had capitalism. A possible additional point of to be written in six weeks. Hard-pressed reference is Scott Fitzgerald’s The Great for cash, his wife expecting twins, Fla- Gatsby. Gatsby, like Kurtz and Heidl, nagan accepted. But in the course of the was a self-made ruler of his demesne, in six weeks, Friedrich committed suicide, this instance the vapid, heedless, pros- and Flanagan had to complete the au- perous flapper generation of the 1920s. tobiography on the strength of the very All this is to say that Heidl is clearly a very meagre information he’d managed representative figure, a product as well to glean from Friedrich’s evasive, con- as parasite of the world of high finance tradictory narrative. – with the offshoot of that world, the cul- Flanagan completed the autobiog- ture of publishing and television, greed- raphy, and went on to publish six very ily gorging itself on the sensation value successful novels, the most recent of of high crime. which, The Narrow Road to the Deep Kif Kehlman is, like Conrad’s Mar- North, won the Man Booker Prize. Now, FIRST PERSON low and Fitzgerald’s Nick Carraway, the in First Person, Flanagan gives us the by Richard Flanagan outsider who is drawn into the vortex story, in the first person, of an aspir- (Chatto & Windus) of amorality, finding his own moral no- ing young Tasmanian writer called, Kif tions challenged, indeed finding himself Kehlman, who, in the early nineties, is becoming Heidl, in becoming a writer. approached to ghost-write, for a consid- Kif’s best friend, Ray, who is also Heidl’s eration of 10,000 dollars, the autobiog- bodyguard and factotum, says “He’s a raphy of the notorious conman Siegfried bloody funhouse mirror… Look at Heidl Heidl, awaiting trial for fraud amount- long enough and all you can see is your- ing to millions of dollars. Kehlman is self.” And Kif himself starts to feel that reluctant, but his own writing is getting “The more I invented Heidl on the page, nowhere. the more the page became Heidl and the So where does fact stop and fiction more Heidl me – and me the page and start? The question is probably a dis- the book me and me Heidl.” traction, in focusing on the origins Thus Flanagan uses his own experi- rather than the actual contents of the ence of writing the autobiography of a novel: best to just get on with reading conman to explore the relation between and judging the book as fiction. Even the writer and his subject: as Heidl says, here, though, the reviewer is faced with quoting his beloved Nietzsche, “And origins: it doesn’t take long to discern in when you look long into the abyss, the Flanagan’s novel the potent influence abyss also looks into you.” And what Hei- of Joseph Conrad’s Heart of Darkness. dl reveals to Kif is the illusory nature of Heidl is Flanagan’s version of Kurtz, all ideals and morality: “The point of all the megalomaniac jungle potentate, as Heidl’s stories: to make me believe my observed by the narrator Marlow. As in life was based on illusions – the illusions Flanagan’s novel, Conrad’s narrator is of goodness, of love, of hope.”

28 We must assume that it is at this point that Flanagan and Kif part com- pany: where Flanagan went on from Victimhood. Boot on other’s foot his encounter with his subject to be- come a respected author and a dough- ty fighter for environmental causes in exhaustive detail the reporting of (so controversially so that the Pre- Beeld from 1 November 2012 to 31 mier of Tasmania has declared “Rich- January 2013, that is, a total of 77 ard Flanagan and his fictions are not editions, in terms mainly of the news welcome in the New Tasmania”), Kif and opinion sections, from which takes to producing television shows, “were generated discursive categories the perfect medium for Heidl’s rock of ‘grievable’, which are then inter- bottom view of life: “We made rubbish, preted in terms of a prevailing dis- and, in the Australian way, the more course of dysfunction, informed pri- mediocre our work, the more awards marily by …crime and disorder.” and the more praise with which we Thus Beeld, according to the au- garlanded ourselves. …TV was the art thor, promotes a “grievable” narra- of turning money into light and light tive of Afrikanerdom, in which the into money.” Afrikaner is the victim of a political Ultimately, Kif comes to share Hei- dispensation whose dysfunctional- dl’s view that “The evidence of the ity disproportionately disadvantages world is that the world is evil.” This is the white Afrikaners. He shows by the equivalent of Kurtz’s dying words: AFRIKANER IDENTITY: numerical analysis how strong the ‘The horror! The horror!’ and Kif (Fla- DYSFUNCTION AND GRIEF emphasis is on whites as victims: “In nagan?) finds that evil alive and well by Yves Vanderhaeghen Beeld, the life of the Afrikaner subject in his native land: “It was a land not (University of KwaZulu-Natal Press) is presented as vulnerable at every infinitely perfectible, just infinitely level, that is, ‘othered’ in every aspect corruptible. There was nothing of it- of public life.” self it wouldn’t sell, and always cheap- He notes, possibly sardonically, er than last time.” HE AUTHOR, A SEASONED JOURNALIST that the fate of the rhino becomes, in But if Flanagan is particularly acer- (and editor of the KZN-based Beeld’s rendering, metaphoric of the bic on the subject of Australia, he ex- daily newspaper The Witness), threatened position of the Afrikaner. tends, in the closing pages of the book, bases his survey of Afrikaner In general, he finds that stories in- Heidl’s philosophy to the brave new identity on a close analysis of volving animals outnumber, by 199- global world of the 21st Century: “He theT Afrikaans daily Beeld. His find- to-110, stories “in which a black per- swindled the banks of seven hundred ings are revealing, though perhaps son was the subject of the story”. million, but soon enough the world not surprising: given the paper’s gen- Interestingly, in the light of recent would be swindled by so much more, erally well-to-do Afrikaans reader- revelations, Vanderhaeghen refers the racket disarmingly the same tak- ship, Beeld concentrates overwhelm- several times to Beeld’s hagiographic ing and making money out of …junk ingly on issues close to the concerns of obituary, alone among the local me- bonds, no doc loans, derivatives… En- Afrikaans middle-class people. dia, to General Magnus Malan. It is ron, Lehman Brothers, Northern Rock Vanderhaeghen sees Afrikaners as tempting to speculate whether Beeld and Bear Stearns.” “self-othering”, that is, casting them- was aware of the rumours circulat- And when Kif says of Heidl, “He selves as victims of the new dispensa- ing at the time regarding the Gen- contradicted his own lies with fresh tion, in defensive reaction against be- eral’s paedophilic activities; if so, lies, and then he contradicted his con- ing cast by others as the perpetrators that would support Vanderhaeghen’s tradictions,” who does not think of of Apartheid. He uses the concept of contention that Beeld was intent on The Most Powerful Man on Earth? At “grievability”, which he defines as a counteracting the Afrikaner-as-per- least Heidl had the grace and insight matter of “trying to claim a position petrator image. to shoot himself. of legitimacy… through establishing To summarise somewhat baldly a Flanagan’s book is a pungent fable an equivalence of suffering. Othered complex argument, Vanderhaeghen for our times, as Heart of Darkness by dominant social discourse as rac- suggests that, judging by the editori- and The Great Gatsby were of theirs. ists and right-wingers, Afrikaners al practices of Beeld, Afrikaners have It does not always make for pleasant flip the dynamic around: they are the retreated into a new laager, not of ra- reading, and in truth may at times new ‘other’, …appropriating the tra- cial domination, but of self-othering, be too moralistic in its questioning of ditional position of minorities around casting themselves as “grievable” vic- morality, but there is no denying its the world. They offer up their dead tims rather than perpetrators, rhinos power, or evading Heidl’s uncomfort- and maimed to the world to bear wit- rather than hunters. This is a chal- able question: “Do you think the evi- ness to their grief…” lenging thesis, and will no doubt be dence of the world is that the good are To support these necessarily broad challenged. It is certainly a thought- rewarded?” n generalisations, the author analyses provoking one. n

NOSEWEEK September 2018 29 Last Word HAROLD STRACHAN

Bluebirdism. Let’s get over the rainbow

OES ANYBODY REMEMBER JUDY up in boep for our hallucination, and Garland anymore? A sweet lucky not to get the rope. Well, no, not girl with nice eyes and a nice all, some flee to London to bask in the smile, also uncomplicated by warmth of world flattery and claim too much thinking about un- some bullshit about running an un- Dcomfortable things, as befits a daugh- derground back here. ter of the US of A. I suppose you could In the US they have a thing called say she came in the same category the Deep State, a power elite, certain of comfort as Bing Crosby who sang men of inconceivable wealth, uniden- songs about baking a sunshine cake, tifiable and unelected. The govern- as follows: We-he-he oughta ba-hake a ment is elected and it governs, it ad- sunshine cake, it really isn’t so hard to ministers, but the Deep State rules, make, ah-ha fresh cheers, a pocket full supreme. The Deep State 1980s is of pleasure, kind words you needn’t content with Apartheid SA, see. use a measure, ah-ha and for goodness The country is stable, their invest- sake whaddawe waiting for? A-let’s ments secure, there is no blood run- aba-hake a sun, a shine, a sunshine ning down the gutters. But in the ’80s cake aday-daky, a Sunshine Cake. our mission in exile gets the quaint Judy, now, she descended from a idea of disinvestment in SA, a right more Romantic era, that of Chopin tion and I’ll tell y’all a history story, as kick up the crutch for the Apartheid and Liszt, and her main contribution follows. O frabjous day! Callooh Cal- State. It is becoming unprofitable. to the history of music went some- lay! A full-on real-live in-the-flesh US With all due apologies our govern- thing like this: Somewhere over the former president comes to Joeys and ment is told to find somebody on Rob- rainbow, way up high, there’s a land smiles upon us with all his 64 teeth ben Island with nice eyes and a nice that I dreamed of once in a lullaby. and tells us ordinary humans he ad- smile, groom him up as our first black And but recently it occurred to me mires Mandela’s vision like anything. president and give him a Springbok that for twenty four years we’ve been But why should Mandela have need- rugby jersey to swop with Francois casting about for a suitable national ed a vision when he had a perfectly Pienaar if we win the World Cup in anthem and this may be just the job. good charter? The Freedom Charter 1995. But note NO Marxist. NO com- I mean we are a secular state, and of 1955? Aha! you will say, but that’s munist. NO Govan Mbeki to redistrib- calling on the Almighty to bless us socialist! Well, if such a document of ute our wealth. along with an entire continent, Nkosi decency is socialist then bring social- Certain lucky bandiete are consid- Sikelel’ iAfrika, that’s a bit clumsy, ism on. ered for gentlemanly training and also dreary, you must admit. Then But let’s not niggle. Let’s shunt for- polishing for the presidency and lo! again, we are a republic with five wards to 1961, when certain rebels our Madiba is the winner! He is by far kings f’Chrissakes, and though we conceive a certain vision instead of a the most celebrated of our celebrities! might appeal to the Almighty to help mere charter of words: the original M- He does swop the rugby jersey and finance this lot, it would sound silly plan. M for Mandela, whatever later Dezzie the Toot comes all over coy and to plead that He should save them nomenclature suggests. The armed giggly and rainbowly; as Judy said, all and make them all gracious, no- struggle is about to begin, its sched- “Somewhere over the rainbow blue- ble, victorious, happy and glorious. ule laid out by this plan. First will birds fly”. We must all confess pub- No! Appeal to Mother Nature! Thus come industrial sabotage, and when licly our evil past and forgive and love Judy: Some day I’ll wish upon a star the economy is on its knees, armed at- each other because deep down we are and wake up where my cares are far tacks on police and army places will all good Christians and now we must behind me, where troubles melt like begin. Then when the prole populace get together and make a nice new lemon drops away above the chimney has risen as one and overthrown the country. tops, that’s where you’ll find me. racist regime we will plan a decent If happy little bluebirds fly Okay, so now, how to become a Rain- democracy. Plan schman, the whole beyond the rainbow bow Nation? Well sit up and pay atten- bloody lot of us, self included, end Why, oh why can’t I? n

30 Smalls ads must be booked and paid for online. Book at: SMALLS www.noseweek.co.za

FOREIGN HOLIDAY ACCOMMODATION Marquard, Free State Former Station Master’s WANTED house professionally restored. R425,000. Pics Paris apartment Centrally located Montorgueil available. Contact owner 084 876 8132. Your unwanted frearms, left from deceased (2nd) Reasonable rates, internet, TV, etc; estates or simply a bother to keep? david. [email protected]; +33 62 034 6710. FOR SALE [email protected] is looking for a variety of weapons to add to a forensic collection used FOREIGN PROPERTY FOR SALE Tent Pro cc sells new army tents (5x5m and for research. 10x5m) and dome tents. Go to Aquitaine, France Five pristine renovated www.tentpro.co.za or call Philip SERVICES apartments for sale. Includes shop, wine cellar, 082 537 2894. courtyard, 92msq garage + duplex opportunity. Tinus & Gabriel de Jongh paintings bought, French lessons (Jhb) or translations (country- Approximately ZAR7.9m payable in SA. See sold and valued for estates and insurance; wide). Sorbonne-degreed native French speaker www.bordeauxwinelands.com; enquiries to 021 686 4141; [email protected]; from Paris. For more information call 071 356 [email protected] www.tinusdejongh.co.za 8279; or email [email protected] Plastic pallets bought & sold. (New interna- Get away from it all Come and learn to make LOCAL HOLIDAY ACCOMMODATION tional legislation for exporting on wooden artisan bread in Wakkerstroom. Call Jeff on pallets! ISPM15); www.premierpallets.co.za or 082 900 2760 for details. Klein Bosheuwel Bishopscourt, Klaassens Road, 083 756 6897. Pet Portraits in oil For examples and sizes email: 200m from Kirstenbosch Gardens Rycroft gate. South African Art Collection Including N Lewis, [email protected] Tranquil B & B in an acre of gardens. Call A Krenz and T McCaw. Call 021 551 9917. 021 762 2323; www.kleinbosheuwel.co.za Arniston Stunning seafront home perched on LEGAL, INSURANCE & FINANCIAL cliff top overlooking beach. Breathtaking posi- Lawyer.co.za is a new website for members of tion and panoramic sea views, 5 bedrooms, 3 the public with extensive information about en-suite, serviced; 082 706 5902. lawyers and the law in SA. Research the law, or LOCAL PROPERTY FOR SALE find a law firm. Also available in Afrikaans at www.Prokureur.co.za Nosing around for property in Langebaan or the Jurgens Bekker Attorneys, Alberton West Coast? Call Melanie Mouton-Creugnet; 079 Commercial and litigation. Call 072 011 3670 378 0000 or [email protected] or email [email protected] Serviced holiday apartments at Natal coast or Jurgens Bekker Attorneys, Bedfordview Cape Town. Call 083 627 3253. Commercial and litigation. Call 083 294 9995 Cabana Beach Resort Luxury Timeshare Duplex or email [email protected] for sale. This blue week unit, Week 35, available Jurgens Bekker Attorneys, Cape Town this 01 September to 08 September 2018, is Commercial and litigation. Call 078 989 2957 located on the sunny extreme northern end of or email [email protected] the 7th floor. It has an enormous (10 x 8 metre) Jurgens Bekker Attorneys, Kempton Park sea facing balcony, 3 bed and bathrooms, sleeps Commercial and litigation. Call 072 424 3177 8 and is fully equipped and serviced. R55,000 or email [email protected] onco. Call 082 441 6149. Jurgens Bekker Attorneys, Pretoria Exclusive Golf Estates Timeshare to spend one Commercial and litigation. Call 082 776 8650 week annually for life at many 5 star loca- or email [email protected] tions including Arabella, Fancourt, Zimbali, Alleged forgery? Questioned signatures? Docu- Champagne Sports. All lodge accommodation. “I liquidated my assets and put ment fraud? FDE/handwriting expert in Cape R55,000 onco. Call 082 441 6149. everything into scratch-off Lotto.” Town. Go to www.fdex.co.za

SMALLS ADS IT’S EASY TO SUBSCRIBE The deadline is the 24th of the month, two months prior to publication. Never miss an issue...Free delivery...Enjoy big savings Ads are prepaid at R200 plus VAT for up to 15 words, thereafter R15 per word plus VAT. ONLINE Subscribe at PHONE Call 021 686 0570 Please note that multiple (long-term bookings) are now www.noseweek.co.za or with your credit card or fax available online. email [email protected] 021 686 0573 or 0866 773 650 BOXED ADS Boxed ads are 6cm (1 column) wide, and are charged at R900 for the first 3cm and R250 per additional cm (length) plus VAT. PLEASE NOTE: Cheques are no longer accepted in payment. Payment is due within 30 days of invoicing. Please contact [email protected] to book or phone 021 686 0570. Apart from having SA’s top investigative magazine delivered to your door, you could also win one of five Ken Forrester wine packs. DISCLAIMER Subscribe now and stand in line to score. Although Noseweek does reject obviously questionable ads, it can’t run checks on every ad that appears in the magazine. The CONGRATULATIONS TO THIS MONTH’S WINNERS: magazine doesn’t endorse the products or services advertised Mr Alfred Dolt, Bergvliet; Mrs L Maiden, Pinetown; and readers are urged to exercise normal caution when doing Mr P Maré, Claremont; Mr AP Stiebel, Durban; business with advertisers. Mrs M van Vuuren, Mossel Bay

NOSEWEEK September 2018 31