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Beer’s power of persuasion a forensic investigation into corrup- letter from the Fund advising that tion and maladministration within pensionable emoluments would NOSEWEEK’S REPORTS ON THE eThekwini Metro. The report – which include the car allowance, following growing public outrage at the dis- has been rotting on bureaucratic a high court decision. The letter went posal of toxic leachate into the shelves since it was made public in on to claim that the Group and Trus- sea off a Durban beach (noses199, 2013 – connected Mlaba to a multi- tees had acted in accordance with 200,203&204), reminded me of a simi- billion-rand waste-collection tender “good governance” and “the spirit of lar, unpublicised incident 15 years ago scam. For his shenanigans, Mlaba the rules of the Fund”. This outraged involving SA Breweries. was rewarded with a post in the UK David, because there had in fact been In around1999-2000 I witnessed as South Africa’s High Commissioner. a complete lack of transparency con- a meeting between Durban’s then- Mlaba was a South African Brewer- cerning the pension fund. mayor, Obed Mlaba, and some SA ies employee from 1987 to 1993, and He made enquiries of certain of his Breweries senior executives, including was still listed as a member of the old colleagues and learnt that the then- MD Norman Adami and Product board of the SA Breweries (Ltd) Trust new benefit was only applicable to Manager Stephen Park. They had ar- in a 2015 CV. members pensioned since 1996. ranged for truckloads of beer to be de- See noses34,86,178,179&195 for The proposal to discriminate livered for Mlaba’s daughter’s wedding more on beer-soaked Mlaba. – Ed. between existing and post-1996 reception, to which the entire commu- pensioners had been judged by the nity had been invited to win votes for Saddened by pension plunder Pension Funds Adjudicator as illegal, the ANC. The SAB men asked whether but Tongaat Hulett took the matter I WAS SADDENED TO READ IN NOSE199 enough beer had been delivered and that Tongaat Hulett Ltd had plun- to the high court and were successful the mayor gave a drunken thumbs-up. dered a R585-million surplus from on a legal technicality in getting the For the duration of Mlaba’s reign, the pension fund behind the pension- Adjudicator’s ruling set aside. SAB was allowed to pump their ers’ backs – so much so that I have The merits of the case were not ad- untreated effluent into a nearby river addressed the following open letter to dressed by the court. without interference from the council. the CEO, Steven Saunders, who my It would be interesting to know if husband and I knew well for half a Here follows June Clarkson’s letter: the untreated effluent is still leaking lifetime. into the sea via the river every day, My husband, David Clarkson, Open letter to Tongaat Hulett CEO and whether the tradition continues joined the Tongaat Sugar Company in DEAR STEVEN SAUNDERS, of donating a “truckload” of beer to 1959, was Chief Accountant and ulti- In 2001 David Clarkson, my husband, the mayor to cover up the misde- mately became Director of Marketing wrote to the Chairman of the Tongaat meanour. and Investments. For years David Hulett Pension Fund to express his J Zulu argued that the pensioners’ emolu- astonishment at the unjust action by ments should include their car allow- both the Group and the Trustees that Mayor from 1996 to 2011, Obed ance, but the then-MD kept refusing. was at odds with the philosophy of a Mlaba featured in the Manase report, In 2000 David received a circular group he had served for 34 years.

4 Obed Mlaba... Beer's power of persuasion

He reminded the Trustees that which they contributed during their Jordaan made a big mistake the assets of the Pension Fund were long hard working careers.” subscribed to by the fund members Sadly David died in 2010. IT IS SURPRISING THAT MANY WERE and the Group, and that employees I, David’s widow June Clarkson, surprised by Danny Jordaan’s resig- had always placed their trust in the had always believed that living in nation as an “ordinary” councillor of Trustees to administer their funds Tongaat for 30 years with my chil- Nelson Mandela Bay. A man with an in an equitable manner and to resist dren, we belonged to one large family, independent outlook and self-respect any attempt to rifle their assets by a sharing each other’s joys and sor- would never have accepted being rapacious employer. rows. I was particularly fortunate to used in an attempt to swing the Col- David added that these views were have known and loved all your chil- oured vote from the DA to the ANC – shared by those who had advised dren. which was ultimately his mandate. him. Today my thoughts are shattered The ANC’s greatest independent “My concern was occasioned by the by knowing what Tongaat Hulett thinker was Kaizana “Oliver Regi- complete lack of transparency which Pension Fund has done to all the nald” Tambo. It seems most ANC has given rise to a lack of faith and loyal pensioners who believed they leaders today thrive on adulation/ a concern as to what other matters were giving their working years to populism and money/status/material- may be instituted in the future in a an honest employer, only to discover ism, and fail to question the basis of similar secretive fashion,” he wrote. that they've been cheated out of their popularity. “Please bear in mind that most em- Surplus Pension Funds. Shame on As Warren Buffett puts it: “Only ployees have to rely on the vigilance you Steven Saunders for letting this when the tide is low, do we see who and rectitude of Trustees to ensure happen. has been swimming naked.” their final years are funded by their June Clarkson Luyanda Kama full share of the Pension Fund to Terrigal, NSW, Australia Port Elizabeth Stent

NOSEWEEK November 2016 5 C

Editor Martin Welz [email protected] Shameless Special Correspondent Jack Lundin We are shameless, shameless corrupt supply chains? That’s how business Designer moonlight sleeping on a midnight lake is done, isn’t it? And Whitey Basson’s fabu- Tony Pinchuck lous Shoprite pay packet? “He deserves it.” Consultant OT THE WORDS OF THE SONG? WELL, that’s “That’s what executives at that level expect Len Ashton how they came up in my mind, sung to earn these days.” End of argument. They in Ladysmith Black Mambazo’s re- just don’t get what morals have to do with it. Sub-editor signed, mournful tones, when I read A 2014 OECD report noted that civil soci- Fiona Harrison June Clarkson’s letter to Steven ety viewed our government’s ability to suc- Contributors SaundersN (Letters p4) and this month’s stories cessfully prosecute and punish those guilty Len Ashton, Sue Barkly, John Clarke, about the Mpisanes (p8), Tshwane’s “supply of corruption “as somewhere between lim- Desiree Erasmus, Jonathan Erasmus, chains” (p26), and RW Johnson’s take on the ited and completely non-existent”. Thorne Godinho, Susan Puren, Zuma era (p30). Add the recent brief news re- The wrangling over the assent of the new Harold Strachan, port about the Shoprite CEO’s R25-million an- Fica Bill (see p18) speaks to a greater strug- Cartoon nual salary plus R100m bonus, and we’re back gle regarding the way in which business, pol- Dr Jack, Stacey Stent to the chorus: “Shameless, shameless…” itics and government operate in this country. Accounts Why did Tongaat Hulett pocket the R585m The extent of the dishonesty and intrigues Nicci van Doesburgh pension fund surplus behind its employees’ surrounding the government’s plan to take [email protected] backs? Because they could. Why do Shau- over the management of the country’s mas- Subscriptions wn Mpisane and her sister Nosipho Ngubo sive social security payments, and the scale Maud Petersen get state housing contracts worth tens of of the potential for catastrophe are only [email protected] millions without tendering? Because their equalled by the absence of any political de- mother was a struggle veteran and chair of bate or reporting on the subject. Why? Be- Advertising sales executive Ethekwini’s housing committee. Why does cause social security and the lot of the poor Godfrey Lancellas Shauwn get away with forgery and fraud? masses aren’t what’s discussed at the dinner [email protected] Because the head of the NPA thinks she tables of the elite. Advertising should. Why is President Zuma protected by But some have, quietly, seen the profit to 021 686 0570 a ring of blatantly corrupt provincial lead- be made from it… [email protected] ers? Because he likes it that way. Tshwane’s The Editor

All material in this issue is copyright, and belongs to Chaucer Publications (Pty) Ltd, unless otherwise indicated. No part of the material may be quoted, photocopied, reproduced or be stored by any Propaganda dressed as news electronic system without prior written permission. Disclaimer: While every reasonable effort is taken to HE FOSSIL FUEL INDUSTRY’S DETERMINATION TO clude the oil industry and whose remit in- ensure the accuracy and soundness of the contents of this publication, neither the authors nor the publisher manufacture doubt about global warming cludes “reputation management”. will bear any responsibility for the consequences of Tillustrates the desperation of the oil, gas Recent revelations by whistleblowers have any actions based on information contained. Printed and coal producers as the realities of climate shown that decades ago the fossil fuel indus- and Published by Chaucer Publications (Pty) Ltd. change strike home. They have created a net- try already knew more than anybody else work of front organisations which actively en- about the impact of their products on climate gage in lies and misinformation about the re- change. (See nose198, “The nuclear lie of the alities of climate change. While the campaign land” .) is largely driven from within the developed As a result, there is a real risk that compa- world the global South has also been pulled nies like ExxonMobil can be held liable not SUBSCRIPTION RATES into this high stakes dirty tricks campaign. just for covering up the known consequences Print Keith Bryer has been a regular columnist of greenhouse gas emissions, but for lying SA only R410 for South Africa’s largest newspaper group, about these and then embarking on a cynical Neighbouring states (airmail) R600 Independent Media, for several years. He is long-term campaign to undermine any action Europe, Americas and Australasia R740 published in the group’s Business Report, a to reduce fossil fuel use. The industry faces Internet edition daily business supplement distributed inside an unprecedented class action, dwarfing the 1 year R298 each of the group’s regional titles, reaching extent of the punishment meted out to the to- Combined hundreds of thousands of readers. Strangely, bacco industry, which already runs into hun- neither Bryer, nor Business Report, are will- dreds of billions of dollars. Print+Internet (SA only) R510 ing to disclose whether he is a paid columnist Exxon has known of these specific risks To subscribe or just a source of free copy. since the 1970s – from its own research. By post: Send cheque with name, Bryer spent decades at the centre of the Yet despite having developed a scientifically address and phone no. to: noseweek, public relations department for British Pe- sound model, Exxon not only failed to take ac- PO Box 44538, Claremont 7735. troleum (BP) South Africa. Now retired, he tion but instead rather chose to spend untold Via Internet (pay by credit card): millions of dollars both covering up the facts www.noseweek.co.za is listed as an associate partner of the ma- jor London based international PR company, and actively spreading doubt among the pub- Email [email protected] Etoile Partners, a “geopolitical consultancy” lic, politicians and legislators. Further information (www.etoilepartners.com) whose clients in- Dozens of front organisations were cre- Call (021) 686 0570; fax 021 686 0573 or email [email protected] Editorial

swells to a flood. As liberal media baron PR pundits in the USA. As far as I can Randolph Hearst put it, “News is what ascertain Bryer has never indicated someone does not want you to print – in any article he has written his link the rest is advertising.” to Etoile, as an associate partner. Re- This is where PR specialists such as member, their self-proclaimed job is South Africa’s Bryer enter the picture, “reputation management” for the oil having spent years fronting up for the and gas industry, among others. fossil fuel industry. Not only does he I raised these failures of disclosure snidely dismiss and denigrate the very with the Press Council of South Africa. notion of climate change, terming it “so- Despite pointing out the links between called,” and an unproven theory caused Bryer and the fossil fuel industry the by the sun; he insists that those calling Council insisted Bryer was free to ex- for action on emissions are “commu- press his opinion and that opinion nists and socialists of every stripe” and cannot constitutionally be limited, as “latter-day puritans”. These are well- it is protected under the rights to free documented tactics, widely employed speech. Further appeals that provided by the Merchants of Doubt. detailed material links between Bryer Reading Bryer’s articles is like jug- and Etoile were likewise dismissed, gling a series of contradictions. In one, again citing the protected right to free he claims coal companies are being speech. wrongly held liable for climate change, This is a remarkable ruling on two in another it’s Exxon that’s liable. He accounts. First, the Press Code re- cites pundits like the utterly discred- quires balance and the disclosure of Keith Bryer ited ex-Greenpeace founder Patrick vested interests. It stipulates that no Moore as a reliable source. He claims intentional distortion or misrepresen- ated to push this agenda. Groups like dealing with climate change will be tation can be made, nor shall commer- the Competitive Enterprise Institute, prohibitively expensive, yet fails to cial interests be allowed to influence or The Heartland Institute and the Cato mention the staggering costs and risks slant reporting. It also clearly states Institute continue to do so, effectively of delayed action to manage the emerg- that conflicts of interest should not un- undermining and stalling meaningful ing impacts of global warming. Bryer dermine the trust of the public in the action to address climate change. unreservedly supports the oil and nu- media. The documents released in late 2015 clear industries, excuses Volkswagen’s The fact that a business newspaper by Inside Climate News and The New emissions fraud, undermines solar and failed to disclose these links appears Yorker have prompted various US state wind-generated alternative energy. to be a significant moral and ethical attorneys, including those of New York, Naturally he disagrees vehemently lapse of disclosure, notwithstanding California, Massachusetts and the US with international agreements to deal the Press Code. Virgin Islands, to start investigations with climate change. And as a seasoned Surely if Bryer’s writings were above- to uncover the fraud and malfeasance. PR hack, he spins a convincing story to board and simply a reflection of his The potential damages pose a threat to a largely sympathetic audience. own opinions – not those he was paid the very existence of the industry. The The extent to which Bryer’s dis- to write for his entire professional life stakes could not be higher. course closely parallels the identical – he would disclose his links to Etoile? In order to spread this corporate narratives emerging elsewhere is tell- And surely Business Report would also counter-narrative as widely as possible ing. A recent example neatly demon- feel morally obliged to share this infor- the fossil fuel industry has exploited strated his role in this corporate echo mation? Neither did so. the increasingly tightly controlled cor- chamber. In July 2016 he wrote of how Surely neither he nor his publishers porate media conglomerates and the ExxonMobil was forced to defend the ought to be able to naively claim that trend toward outsourced news gather- liberties of free speech as it sought to he is simply a “retired communications ing. Most people are unaware that a counter legal investigations into its lies consultant” providing his “opinion” significant proportion of current news and cover-ups, as discussed. – rather than an active player in the is sourced directly from public rela- Exxon has fought back on several field? tions organisations contracted to mul- fronts. First, it called in its PR media On a more sinister note, Bryer’s role tinational corporate interests, while outlets; second, it engaged in the legal appears entirely consistent with that mainstream media outlets simultane- battle; and third, it harnessed tame of the Merchants of Doubt, constantly ously shrink newsrooms and staff to legislators it has a record of funding. seeking to cast aspersions, sew discord maximise profitability. The underlying message was the ab- and undermine opposition to its inter- As journalists have declined, the surd claim that Exxon’s right to free ests. The first rule of propaganda is to ratio of PR news agency employees speech was being undermined and that repeat a lie, often; by doing so people to journalists has risen. This media it was the target of a latter-day witch- start to believe it. infiltration by vested interests has in- hunt by nefarious green groups. Glenn Ashton evitably skewed the bias, as the flow of Bryer’s narrative was essentially a Ashton is an environmental researcher, public relations masquerading as news cut-and-paste emanating from Exxon’s writer and activist.

NOSEWEEK November 2016 7 What’s cooking with the ANC’s Tefon Two

Ex-cop millionaire S’bu Mpisane and busy wife Shauwn sizzle in rich mix of legal shenanigans. By Jonathan Erasmus

URBAN’S LAMBORGHINI COP, SGT ternal disciplinary hearing eventually ed, this time for allegedly trying to S’bu Mpisane and his spouse cleared her of any wrongdoing. bribe a State witness and persuad- Shauwn have made their for- The evidence Noseweek has seen ing him to alter his books with the tune on the back of state hous- suggests that various serious crimi- promise of a lucrative cut of her state ing contracts totalling more nal charges related to the Mpisane contracts. Then in 2013, Shauwn was Dthan R1 billion, often awarded with- investigation which should have been charged for forging her company’s out any tender processes (see noses100; prosecuted were simply abandoned Construction Industry Development 109;125;150,195,204). without any evidence having been Board (CIDB) grading to score bigger Shauwn is the director of Zikhulise led. (Read associated story: “Claims tenders – which she duly did between Cleaning Maintenance and Trans- against Naidu ‘spurious’”.) It appears 2007 and 2012. This matter was port CC, the couple’s vehicle for state that the evidence, which was volumi- brought before the Durban Commer- construction contracts. Between 2011 nous, with over 20 witnesses lining up cial Crimes Court. and 2013, she and Zikhulise faced 183 for the State, never even came into The State’s cases ground to a halt separate charges of fraud, corrup- the equation when Shauwn was given when the former National Director of tion, forgery and defeating the ends a free pass. Public Prosecutions Mxolisi Nxasana of justice across three separate courts Last month a senior SARS execu- weighed in, blaming Naidu for mis- in Durban. But the Mpisanes are not tive, Jonas Makwakwa, Group Execu- managing the case. rated leading members of Durban’s tive: Auditing Division, was suspend- Shauwn’s access to state contracts ignominious Teflon Club for nothing ed on suspicion of having taken cash was because her late mother Florence (see nose203). bribes, coincidently during the period Mkhize was an ANC struggle veter- The alleged incompetence of the when Shauwn somehow got the im- an – and chair of Durban’s powerful prosecution, helped by some political pression that she had successfully ne- housing committee. (Earlier this year manipulation, prompted SARS and gotiated with Makwakwa a massive Shauwn’s sister, Nosipho Ngubo, also the NPA to do some frantic back-ped- reduction of the R33m penalty she landed a cushy R20m housing con- alling and back-room bargaining. The owed SARS (see nose204). tract from eThekwini – also without outcome: Shauwn and her company That bit of confusion contributed to tendering.) were acquitted on some charges, while the criminal cases against her being S’bu Mpisane’s climb up the ladder most were quietly dropped. dropped in January 2014. In the big- of success is less happily explained. From the recent findings of a an in- ger scheme of things, the R200,000 He is not a director of the company ternal inquiry held by the NPA, how- bail she had paid was such small but is fully involved in its affairs, and ever, it appears that the Mpisanes’ change that she only bothered to col- shares in the spoils. defence lawyers, SARS and the NPA, lect the refund in April this year. According to various reports in collaborated in a scheme to discredit In the June 2011 case in the Durban 1998, S’bu, then an ordinary consta- and destroy the career of the pros- Magistrate’s Court, Shauwn Mpisane ble in the metro police, took part in a ecutor in the case, Advocate Meera faced 119 criminal charges, most of hit on a judge, the prosecutor and a Naidu as a means to get the Mpisanes them involving forged VAT invoices witnesses involved in the murder trial off the hook. She ended up at a back submitted to SARS, and the under- of taxi boss (and nephew of President desk with a pencil and no phone for declaration of VAT. Jacob Zuma) Mandla Gcaba. Three two years, before the NPA’s own in- A year later, Shauwn was re-arrest- people including a policeman were

8 What’s cooking with S’bu and Shauwn Mpisane?

Ex-cop millionaire S’bu Mpisane and busy wife Shauwn sizzle in rich mix of legal shenanigans. By Jonathan Erasmus

killed in a shootout outside the Dur- and her company, Zikhulise, no evidence of having ban Magistrate’s Court. with that R33m tax assessment traded in these cars; they S’bu was identified as the driver of for the 2008 financial year. The bulk drove them. the hitmen’s getaway car. He was ar- was for illegitimate VAT claims on In early 2010 – with Zikhulise’s fi- rested and agreed to turn State wit- the purchase of a Lamborghini, a Por- nancials and VAT account in sham- ness, but days before Gcaba’s trial was sche, a Rolls Royce and a BMW. The bles, a huge tax penalty, and facing to recommence he mysteriously disap- Mpisanes claimed they were trading increased scrutiny – the company at- peared and Gcaba’s murder trial col- in luxury vehicles, but could produce tempted to enter the Alternative Dis- lapsed. pute Resolution (ADR) process with A year later S’bu reappeared claim- the help of their new tax consultant, ing he had been kidnapped and held Trevor Dalton (nose201), to sort out hostage on some unknown African their 2008 tax audit. This process is island. (We got no answer when we The couple were shot meant to be informal, to avoid litiga- asked which island.) Without further tion and work towards a settlement – ado, he got his job back and was pro- provided there is no tax evasion, fraud moted to sergeant. 16 times, and their or serious non-compliance with the The Mpisanes’ tax problems started tax laws. in mid-2008, when SARS recommend- bodies found only As is required, SARS asked for doc- ed a lifestyle audit on S’bu, who, as a uments to validate claimed cash pur- low-ranking policeman was arriving three days later. chases and cash wages in the disputed at work in a Lamborghini, making 2008 financial year. The documents him rather conspicuous in the crowd. provided by Zikhulise’s tax consultant But his wife was earning the money, Their relatives still were sent to senior SARS officials in- so the investigation shifted. (He has cluding Poobanthiran Govender (who since resigned from the police.) don’t know why they investigated Zikhulise’s PAYE) and Based on that lifestyle audit, Dur- Osman. Govender plays no further ban-based SARS auditor Waheeda were killed role in this story as he was murdered Osman (she later became a key wit- alongside his girlfriend in Sandton a ness in the State’s case) issued her month before Shauwn was formally

NOSEWEEK November 2016 9 charged. The couple were shot 16 dress of a tax-services company that ing NDPP, Adv Nomgcobo Jiba, (since times, and their bodies found only was based next to the SARS head of- struck from the Roll of Advocates), three days later. Their relatives still fice in Brooklyn (Pretoria)”. Nothing complaining about Naidu’s conduct don’t know why they were killed and came of this matter. in court and her apparent “coaching” have only a vague theory involving the The ADR process was terminated on of Osman. Nigerian underworld. 25 August 2010. An investigation fol- Jiba in turn sent the 52-page sub- Alternative Dispute Resolution of- lowed on the orders of former SARS mission to the complainant – SARS. ficial Solomon Mthembu had been anti-corruption and security head, The submission to the NDPP, writ- tasked with dealing with the Zikhulise Clifford Collings – later to be among ten by Bhana (of Shauwn’s legal dispute. He would later claim that a the victims of the “rogue unit” scan- team), said that irregularities in the tax consultant acting for the Mpisanes, dal (nose190) – who allocated the case trial “exposed misconduct” which was Myesh Pillay, tried to bribe him. (Read to Van der Merwe, who in turn was “so serious” that it demanded their accompanying story: “Jimmy’s killer joined by the SAPS Serious Economic “immediate attention”. Naidu’s con- prawn bribe trap”.) Offences Unit’s Johan Prinsloo. duct, he said, amounted to a “miscar- In June 2010 Dalton, and the Mp- Shauwn’s legal team was made up riage of justice”. isanes met ADR manager Dierdre of well-known criminal law advocate He also accused Van der Merwe of Pieterse (since resigned), along with Jimmy Howse, Wim Trengrove SC and using “illegal investigative methods”. other officials and presented them Rafik Bhana SC. Most particularly he claimed the State with invoices that, it later transpired, In this story, family connections had failed to furnish the defence with were forged. count. Bhana is related to liquidator an audit report on Zikhulise that was Pieterse told Dalton in an email the Enver Motala (See noses113;126;127; undertaken by (now former) SARS ac- invoices given to them made no sense. 128;147) as well as Fazel and Solly countant Sumantha Ramharak which, “[The auditors] have found that in- Bhana, who were involved in the loot- he said, might have assisted the De- voice serial numbers on the relevant ing of Aurora Mine, Grootvlei, along fence. VAT invoices have only been used by with Motala, Khulubuse Zuma (Presi- The Ramharak audit report into the supplier this year. It… needs to be dent Zuma’s nephew), Zondwa Man- Zikhulise’s 2008 tax year, was com- explained by your client how the rel- dela (Nelson Mandela’s nephew) and pleted in 2010 on instructions from evant invoices, dated 2007, could have President Zuma’s wheeler-dealer law- Makwakwa. He had issued the in- been issued by the supplier. Very little yer Michael Hulley. structions at Shauwn’s request, after of those invoices [supplied to us on 4 Rafik Bhana also has an exceptional she told him she had “new informa- June] may be allowed by SARS”. talent for claiming enormous fees for tion” about her 2008 financials. This Dalton, after leaving Zikhulise’s em- non-stop reading of clients’ documents “new information” was hand-deliv- ployment, gave three statements to in- (nose140). ered to Durban-based Ramharak by vestigators. He told Naidu that Shau- The trial commenced in mid-2013 Shauwn’s personal driver. She was in wn and her accountant Kishal Reddy when SARS auditor Osman took the constant telephonic contact with Ram- (who would later turn State witness) stand. On July 10 that year Shauwn’s harak at the time. At one stage, it is “denied fabricating any invoices”. counsel sent a submission to then act- alleged, they had lunch together at a On another occasion Dalton told Nando’s and went joyriding in the Mp- SARS investigator Martin van der isane’s Lamborghini through the leafy Merwe that neither Reddy nor Shau- streets of Umhlanga. wn had a “straight answer” for the Ramharak’s actions would later see same forged invoices. Van der Merwe suggest she was “com- There was also the strange claim There was also the promised”. Van der Merwe said some by Shauwn to Dalton that a SARS of- of the “new” invoices given to Ram- ficial called “Mark” tried to solicit a harak were also fraudulent. Ram- R4m bribe to “assist her with her tax strange claim by harak admitted to Van der Merwe, ad- issues”. She met “Mark” at the Bever- vocate Etienne Coetzee, SARS’s legal ley Hills Hotel, Umhlanga on 31 Au- Shauwn to Dalton that advisor Helen Templeton and Prinsloo gust 2010. SARS eventually obtained (of SAPS’s Economic Offences unit) the video footage from the hotel but a SARS official called at a private meeting that the “audit they didn’t have the software to open verification report was flawed in vari- it. “Mark” had also sent an SMS to ous respects”. She blamed the poor Shauwn which said he could “resolve ‘Mark’ tried to solicit a quality of the report on the fact that her appeal” for the sum of “R500,000 she was “very new at SARS”. for each of the eight members of the R4m bribe to ‘assist her The defence claimed in its submis- “committee”, who would adjudicate sion that the Ramharak report showed her situation. with her tax issues’ Mpisane had paid her tax and not While SARS claimed they couldn’t evaded it. They said the tax paid on investigate the matter, Shauwn told the genuine invoices of approximately Dalton that “Mark’s” phone was R10m was higher than the tax owed traced, allegedly by SARS, to “an ad- on the (admittedly) fraudulent invoic-

10 Jimmy’s killer prawn bribe trap

ARS ALTERNATIVE DISPUTES ments from a person in a blue Toyota – had similar suspicions about Pillay. Resolution official Solomon Conquest. He confirmed that Pillay worked for SMthembu, tasked with handling On arrival he found the car parked Shauwn Mpisane. the tax dispute involving Shauwn Mp- at the corner of Middle and Dey Street, In a sworn affidavit, Dalton main- isane and Zikhulise Cleaning Mainte- in the parking lot of Jimmy’s Killer tained that he only spoke to Pillay nance and Transport CC, declared in a Prawns. “At this time I felt awkward, once in early August 2010, days before written statement that Shauwn’s tax but I trusted Pillay,” he said. SARS abandoned the ADR process. He consultant Myesh Pillay had attempt- There, an unidentified Indian male said Shauwn had handed him a phone ed to set him up with a bribe. handed him a parcel wrapped in “A4 to continue a conversation where Pil- Pillay is COO of the LSP Group writing pad paper” saying he was “giv- lay told him she had “worked out an in Durban which offers tax advisory ing me cash for Pillay instead of docu- effective game plan to, in principle, services. She was previously a senior ments”. mitigate, if not eliminate, the basis for manager at SARS. Her boss is La- “I phoned Pillay and informed her the SARS assessment”. zarus Pillay (not related), a pastor de- that the occupant of the car wanted to “I simply listened as I was astound- scribed by the Chatsworth Rising Sun give me money instead of documents. ed that Myesh [Pillay] had gathered newspaper in March 2015 as having [She] said the occupant owed her mon- so much detailed information so a “close relationship” with former fi- ey and that I should collect the money quickly”. Pillay told Dalton she had nance minister Nhlanhla Nene. on her behalf and she will collect the spoken to senior SARS officials includ- In a signed statement, Mthembu same from me on Wednesday 19 May ing “the Commissioner”, then Oupa said he had known Pillay for three 2010. I informed her that I was not Magashula. years, having met her when she acted prepared to take the money on her be- “Subsequent to the conversation I as tax consultant for Balele Leisure half,” said Mthembu. advised Shauwn that I had no desire Pty (Ltd), owned by Durban casino A short while later, back at the to interact with Pillay as I instinc- and development tycoon Vivian Red- SARS office, he told his boss Jonas tively sensed that our characters and dy, a well-known fawner and funder of Makwakwa that he suspected the in- working styles were not compatible. President Jacob Zuma. cident was connected to the Zikhulise Shauwn informed me that it had been In a written statement, Mthembu case – the only high profile case under her friend, Bheki Cele, (then National relates how, on 14 May 2010, in the his control. Police Commissioner), who had put midst of the dispute resolution pro- “[Makwakwa] mentioned that he Shauwn in contact with Myesh”. ceedings with the Mpisanes, he was would not be surprised if it is indeed Asked by Noseweek for comment, telephoned by Pillay, who asked him the case, since the people involved Pillay denied ever having worked for to meet her at the Shell garage on Dey were of the kind that one could expect Shauwn . “No, no, no. We didn’t do any Street in Pretoria. such behaviour from. Makwakwa also work for the Mpisanes. In fact we were Moments before they were to meet mentioned that he knows Pillay and given an instruction not to allow them at 2.30pm, Pillay called him to say she did not seem surprised by the fact that into our office. I also have no interac- could not make the meeting as she she was apparently involved,” said tion with Bheki Cele,”said Pillay. She had another meeting “around Menlyn Mthembu. maintained she and Mthembu were with lawyers”. She told him she had Mthembu was removed from the still friends. also been scheduled to meet another case and instead a team was put in Not according to Mthembu’s state- person at the Shell garage, and asked place to oversee the matter “so as to ment, where he declares: “I was if, as a favour, he would collect a par- protect the identity of the individu- shocked by the fact that a person I cel of documents from that person and als”. had known on a professional level for keep the parcel for her to collect later Another tax consultant hired by about three years could be involved in from his office. He was to collect docu- Zikhulise – KZN-based Trevor Dalton an attempt to set me up”. n es totalling R5,056,035, and therefore genuine invoices to assess the impact ently, SARS was not prejudiced and no crime was committed. on the tax claims based on the ficti- the accused were not advantaged by While not denying the existence tious invoices… and confirmed the the claim based on the fictitious in- of fake invoices – which the Defence genuinness of the invoices and that voices.” maintained was the work of rogue they reflected purchases in a higher “Osman’s evidence… proves that Zikhulise accountant Reddy – they amount than the fictitious invoices. In SARS and the state were up to no argued that SARS was not robbed of consequence the benefit to Zikhulise good during this investigation and the taxes. based on the genuine invoices was motive was to charge [Shauwn] at any “[SARS accountant] Ramharak con- greater than the tax benefit based on cost,” said Bhana SC. ducted a verification process on the the fictitious invoices. “Stated differ- Bhana said he believed that “Naidu’s

NOSEWEEK November 2016 11 conduct was in flagrant disregard of several provisions of the Prosecution Policy and Code of Conduct”, and that Claims against Naidu spurious Shauwn’s rights to a fair trial had been “seriously compromised” by Naidu. DV MEERA NAIDU’S DISCIPLINARY Others charged but not prosecuted Bhana said that before they made started two years after she had after the State’s case collapsed, in- the submission, they had met with Abeen withdrawn from the case. cluded Durban-based project consult- SARS counsel Adv Mike Helens and After a lengthy hearing she was ant DGW Consulting owner Dave that “obviously SARS is concerned”. cleared of all charges including fail- Williamson, who was double dipping: Shortly after the trial’s postpone- ing to disclose the famed Ramharak he was “consulting” for Zikhulise, at ment, then-SARS boss Ivan Pillay report to the defence and coaching of approximately R145,000 a month, (who was known in tax circles for her lead witness Waheeda Osman. while in full-time employment with “settlement deals” for the rich (see Represented by Durban lawyer the eThekwini Metro’s Housing Unit nose69), moved the Mpisane tax file Bruce Macgregor who was seconded from 2005 to 2010, earning a salary to Pieter Engelbrecht, the deputy of by the Public Servants Association, of about R47,000 a month. Johann van Loggerenberg (see noses Naidu also made the extraordinary Williamson approved and signed 190,191). claim that communications between off payments on behalf of the city to Also worth mentioning: SARS dep- SARS, the NPA and the SAPS were Zikhulise for the period March 2007 uty commissioner Raymond Lalla being monitored. to February 2008. An investigation (nose195) deemed the matter so impor- She had reason to believe that de- found DGW Consulting was nothing tant that he visited the Durban court cisions from private meetings were but a shell and that it was impossi- on one of the trial days and spoke to somehow being leaked to the Defence. ble for Williamson, who claimed to both Naidu and Osman. Osman com- Chairman of the disciplinary hear- work nine hours a day for the city, plained to him about her treatment ing, Advocate Justice Mnisi, called the to be working simultaneously for on the stand by Bhana. Lalla assured hearing “very strange” and suspected Zikhulise. her “it will all be sorted out”. (It wasn’t that the charges had been formulated Further evidence was obtained and she has since reported Bhana to on the trot and were baseless. where Zikhulise issued a cheque the Johannesburg Bar.) “I have little hesitation in rejecting dated 5 October 2007 to the value of On August 30, 2013 SARS replied to the allegations in the charge sheet as R539,240 to Fordsdicks Motors for the NPA on the basis of Bhana’s sub- entirely unsubstantiated and spuri- the purchase of a BMW X5, regis- mission with their own 40-page docu- ous. To find the employee guilty of the tered in the name of DG Williamson. ment. Drafted by former SARS head of above-mentioned charges in the light Docket four was for Lorna William- tax and customs investigations, Gene of oral and documentary evidence ta- son, Dave’s wife. She was the sole Ravele, and sent to Jiba, KZN Direc- bled before me, will be a guarantee member of another company called torate for Prosecutions Adv Moipone that the employer will be found very Lezmin 1257 CC. An investigation Noko, and national Specialised Com- wanting in any other forum. revealed that Lorna failed to declare mercial Crime Unit director Lawrence “My finding in regard to these income of R3.3m for the 2008 tax Mrwebi (also, since struck from the charges is that the employee is not year. This was the value of a prop- advocate’s roll), Ravele agreed that guilty of all these charges. To find erty acquired by her, in one of Hill- the “trial has been rendered unfair”, anything to the contrary would be a crest’s exclusive estates, Le Domaine, that “justice will best be served to stop travesty of justice,” said Adv Mnisi. and paid for with cheques issued by the prosecution (sic)” and “there is no Who else was charged? Zikhulise and Ukhozi Construction – hope of a successful prosecution”. Shauwn’s former accountant both owned by the Mpisanes. Ravele, also embroiled in the “rogue Kishal Reddy pleaded guilty to for- The fifth and final docket was for unit” scandal at SARS which cost him gery and was handed a suspended Preshan Ramdutt. He was accused his job, based his finding almost en- sentence and a R30,000 fine, while of forging the invoices at his print- tirely on the Defence submission. turning State witness. He claimed ing shop that purported to have been In his rationale for ditching the case, that on Shauwn’s instruction he fab- issued to Zikhulise by DGW Con- he refers to “strained debate” between ricated the invoices. There was no sulting, Eveready Brick and Block, Naidu and Judge Blessing Msane; evidence produced of his having had Nelson Allopi and Associates, Tiger Naidu had “lashed out at the Defence” any financial gain from the forgery. Plant Hire, NAC Inc and Afrisam. n and Judge Msane had “reprimanded” the prosecutor. He said Naidu – a pros- ecutor with 22 years’ experience and a specialist in tax matters for 13 years drafted by Van der Merwe, who said tion process, claiming these negotia- – was “not sufficiently competent” and he was “personally of the view that the tions were “substantially advanced”. lacked integrity. State docket made out a strong case Naidu was removed from the case on Ravele said SARS “cannot in good against Zikhulise and Mpisane”. 2 September 2013, to be replaced by a conscience associate itself with the Ravele said SARS would instead veritable squad: NPA Advocate Arno J continuation of the current trial”. collect their dues from Shauwn and Rossouw, Advocate Jan Ferreira, Advo- This was in contrast to an affidavit Zikhulise through the civil tax collec- cate Paul Louw (see noses56;58;60;89

12 for more about him) and State pros- was also withdrawn. ecutor Adv David Broughton. Asked whether the NPA would re- On 31 January 2014, making his view the acquittal, Noko told Noseweek first major – and possibly only deci- “the accused may legally never be sion as NDPP – Nxasana withdrew charged again with the same charges”. the charges in Pinetown and acquitted And asked whether Nxasana had Shauwn and Zikhulise in the Durban erred in agreeing to Shauwn’s acquit- Regional Court matter on the basis of tal, she said: “No comment”. Naidu’s “incompetent” prosecution. When the Mpisanes’ tax problems “My responsibility is to ensure began in 2008 their known assets to- that all cases are prosecuted without talled R68m. This included R30m in fear, favour and prejudice. [We] will motor vehicles, six properties valued be working very hard to ensure that at R32m, and R5m in household goods there is no reoccurrence of incidents and jewellery. similar to the one that has led to this They had no serious creditors – just decision,” said Nxasana. a R4m overdraft with Standard Bank. A special tax court was then held The Mpisanes have since branched at the five-star The Square Boutique out into new fields of business; includ- Hotel in Umhlanga, where a final se- ing national first division football club cret settlement was reached between Royal Eagles and security firm Inyan- SARS and the Mpisanes. ga Protection Services. Just 15 days before Nxasana made Attempts to get comment from the his decision public, Shauwn Mpisane’s Mpisanes were unsuccessful despite Durban Commercial Court matter emails, calls made and SMSes sent. n

“What is it, Lassie – is Timmy in trouble?”

NOSEWEEK November 2016 13 Stench warfare rages on Residents around EnviroServ’s Shongweni landfll have accused environmental afairs minister Edna Molewa of stonewalling investigations into a toxic dump. By Desiree Erasmus

ASTLY DIFFERENT COMMUNITIES IN senhoek, KwaNdengezi and surrounds issues. the Hillcrest/Shongweni area of say they have been experiencing the In August, the DEA received over KwaZulu-Natal have pledged same or similar symptoms for up to 15 300 complaints in one week from resi- solidarity in their drive to close years. dents of Hillcrest/Shongweni and sur- down a toxic dump owned and Their complaints have been lodged rounds, prompting it to formulate an operatedV by EnviroServ, one of the with the eThekwini authorities and agreed-upon, deadline-driven 11-point country’s self-proclaimed leaders in the Department of Environmental plan with EnviroServ. Some of those hazardous waste disposal. Affairs (DEA) after residents asked deadlines have since been extended The inland communities of Hillcrest, renowned activist Desmond D’Sa for by mutual agreement. The company Dassenhoek, Shongweni, KwaNdenge- assistance. D’Sa has since been mo- says it is working flat-out to meet the zi and surrounds, as well as people liv- bilising the affected communities to targets and has made “good progress”. ing in south Durban about 30km away, assert their Constitutional rights and “We remain on track to meet our believe EnviroServ is mishandling fight for their health. In the process he 11-point action plan as agreed with toxic waste at the site to fatten its bot- has become a thorn in the side of En- the DEA,” Thompson said in a press tom line at the expense of community viroServ, as well as local and national release. health. Since April, residents have authorities. “A scientific report by a specialist complained of suffering nosebleeds, The plight of the residents has been appointed by the community previ- nausea, vomiting, sinusitis, bronchitis, well documented by Noseweek (noses ously revealed that EnviroServ was asthma and other health-related is- 199;200;203;204). not the sole source of the malodour as sues. Those from the adjacent, mostly After months of denying any respon- there are a number of other industries poor, rural areas of Shongweni, Das- sibility, EnviroServ eventually ac- operating in the same area. cepted partial blame for the odours in “Despite having existing air quality the area. Sustained pressure from the monitoring in place, EnviroServ will community, activists, Noseweek and soon instal real-time air-quality moni- other media prompted the company tors, which will allow the company to hire a second independent special- to determine air quality immediate- ist to work alongside its long-standing ly and as well as help identify other specialist, GeoZone Environmental, to odour sources. look into the noxious smells. Residents “The DEA has committed to inves- have said publicly they do not trust tigate other potential contributors to GeoZone’s methodology and results. the problem,” said Thompson. Activist and scientist, Rico Euripi- Included in the 11 points was the dou (see accompanying story) has pre- “decanting and disposal off-site of all viously called GeoZone’s initial air stored leachate and contaminated quality results “junk science”. stormwater through the approved per- EnviroServ CEO Dean Thompson mit processes within ten weeks”. said the “gaseous emissions” coming (The Green Scorpions have since from the stored leachate at the landfill launched a criminal investigation were a “contributor to the malodours” into the landfill, which includes other in the area. Leachate is the liquid that industries in the area, while adminis- drains from a waste site; it generally trative enforcement is also underway. contains elevated concentrations of Should EnviroServ not comply with Goldman Environmental Prize undesirable material from the waste. the administrative notices, they will recipient Desmond D’Sa EnviroServ, has vehemently denied have to endure a second criminal in- any culpability for residents’ health vestigation for non-compliance.)

14 arm of the DEA, the Oceans and Coast Unit, told Merebank residents it had annulled the temporary permit, claim- ing it was illegal, thus stopping Envi- roServ from pumping the leachate to sea. Gordon had initially confirmed he would attend the meeting but pulled out just hours beforehand “due to oth- er urgent matters”. “With regards to the existing lea- chate, we have advised the municipal- ity to stop taking any more leachate from the Shongweni landfill, and we are waiting for feedback from the mu- nicipality that it has been stopped,” Natasha Pillay of the Oceans and Coast Unit told the meeting. She said eThekwini was within its authority to issue permits according to local bylaws, but that the final ef- fluent must meet the requirements of the licence issued by national govern- Environmental Afairs Deputy ment overseeing the marine environ- EnviroServ CEO Dean Thompson has Director-General for chemicals and ment. been accused of being 'insincere' waste management Mark Gordon EnviroServ and eThekwini Munici- pality have both stated that Enviro- Serv voluntarily stopped tankering South Durban residents were Noseweek they believe the municipal- leachate to the treatment works. thrown into the mix when it was ity’s Fennemore has been set up as a “No formal directive has been re- learned that the DEA’s Deputy Direc- “fall guy” so that those who have “real ceived by the City from [DEA] to tor-General for chemicals and waste authority”, like the DEA’s Gordon, are cease the acceptance of leachate from management, Mark Gordon, had au- absolved of responsibility for their “in- Shongweni landfill,” said eThekwini’s thorised eThekwini’s senior manager competence”. communications head, Tozi Mthethwa, at its pollution unit, Chris Fennemore, Fennemore denied this. But at a adding: “However, EnviroServ volun- to grant a temporary permit to Envi- later meeting (at which Fennemore tarily stopped tankering leachate to roServ to dispose of the stored lea- and Gordon were not present) another the Southern Wastewater Treatment chate and contaminated stormwater Works on 21 September 2016.” through the city’s Southern Wastewa- EnviroServ CEO Thompson said: ter Treatment Works. About 27 mil- “EnviroServ, by its own accord, has lion litres of leachate and contaminat- temporarily suspended tankering ed stormwater was to be pumped 4km Added to all of this is the of effluent to Southern Wastewater out to sea, 60m below surface off the Treatment Works until such time as popular south Durban fishing spot, municipality’s poor fines we are able to be assured of a consist- Cuttings Beach, in Merebank. This is ency in standards. a predominantly Indian and coloured and penalty regime. “We informed eThekwini Water and area and one of the most polluted Sanitation of our decision on 21 Sep- parts of Durban. A large portion of the tember 2016 after noting inconsisten- population is made up of subsistence EnviroServ has received cies in samples. EnviroServ is still in fishermen. possession of a valid discharge permit The Merebank community demand- five R1,000 fines since as issued by eThekwini Water and ed that the waste-to-sea agreement, Sanitation,” said Thompson. which was to run from September to 2013 related to effluent Added to all of this is the municipal- November, be terminated immedi- ity’s poor fines and penalty regime. ately. Fennemore refused the request, EnviroServ received five R1,000 ad- claiming there was a “signed agree- disposal. Before each ministrative fines between 2013 and ment” with a stamp of approval from this year for bylaw transgressions the DEA, which legally allowed Envi- fine is issued, three related to effluent disposal. Before roServ to dump its leachate into the each fine is issued, three warnings are ocean after being treated with hydro- warnings are given given. gen peroxide. The Green Scorpions have also be- Residents and D’Sa have told gun an investigation into the South-

NOSEWEEK November 2016 15 ern Wastewater Treatment Works. Merebank meeting. D’Sa and Johnson were collecting af- Residents from Hillcrest and south D’Sa has written to eThekwini’s fidavits from the affected communities Durban have speculated publicly that mayor, Zandile Gumede, and Environ- when they received Thompson’s letter. the lack of action by the authorities mental Affairs minister Edna Molewa, To date, over 500 affidavits have been to deal effectively with an issue that detailing the plight of the communi- submitted to the Green Scorpions. affects the health and wellbeing of ties. He had received no reply from ei- Noseweek was told that testimonies communities over a 30km stretch is ther at the time of going to print. from five local doctors are among the the result of political stonewalling. Community members complain that submissions. They have accused eThekwini’s po- while all of this has been playing out, In a leaflet handed out at one of the litical elite and Environment minister EnviroServ has been using “bullying” Merebank meetings – which Enviro- Edna Molewa of having buckled un- and “intimidation tactics”. In Sep- Serv did not attend – Thompson said: der political pressure because deputy tember, Thompson threatened D’Sa “At our last external audit by the president Cyril Ramaphosa’s brother and Hillcrest resident and monitor- DEA in May, the Shongweni landfill Douglas was appointed to the Enviro- ing committee member Lauren John- achieved an excellent result of 99.2%, Serv board in April as a non-executive son with legal action due to negative which is only a minor non-compliance.” director. publicity, loss of revenue, and for being But the DEA’s Grant Walters told The Green Scorpions’ Marie-Louise part of an “orchestrated public cam- the meeting that the department had Lume denied any political interfer- paign directed at coercing the DEA not conducted an audit on the compa- ence in their investigation – whether and other authorities into precipitous ny in May. Asked to clarify, Thompson related to Ramaphosa or any other action without all the necessary and told Noseweek, through his PR com- political figure or party – at the last relevant information being gathered”. pany, “The audit earlier this year was Why all the secrecy?

HE 11-POINT PLAN AGREED UPON of which is in Noseweek’s possession), It is important to know what the between the DEA and Enviro- documented that the site had ac- POP waste was made up of and where TServ, specified that the company cepted waste that could contribute to it came from, he said. had to “immediately provide a de- or cause the malodours being experi- “Mercury waste should not be tailed inventory of all waste accepted enced in the area. dumped into a landfill site. Mercury at the site over the past eight months The manifest lists quantities of is an element, it is neither created including volume, tonnage, toxicity, waste such as inorganic liquid and nor destroyed, it is always there; it flammability and chemical composi- sludge, waste oils, liquid and solid gets transformed. If it is pumped out tion”. EnviroServ has refused to pro- waste containing mercury, tarry and to sea, it comes back to you in your vide this inventory to monitoring com- bituminous waste, sulphur contain- shellfish. You can’t treat anything mittee members, affected residents, ing waste, chemical and refractory contaminated with mercury or lead activists, Noseweek and other media. waste and persistent organic pollut- with hydrogen peroxide and expect The inventory has been submitted ants (POP waste). that it will go away. It doesn’t”. to the DEA, which also refuse to re- “That listing in itself doesn’t tell D’Sa and community members lease it. you much. The way it has been listed have questioned whether the Shong- After being pressed as to why doesn’t give you a good enough clue weni landfill receives toxic waste EnviroServ wanted to keep the in- about what is inside it and whether from other countries. ventory secret, Thompson (through or not it can cause a smell. When it “Absolutely no waste is accepted Enviro-Serv’s PR company) stated: comes to things like waste oils, what at Shongweni which originates from “The inventory submissions to the waste oils are they?” outside South Africa’s borders,” said DEA were intended for the authori- He said that the manifest should Thompson. “The import of all waste ties to evaluate what EnviroServ was have listed all of the landfill’s incom- into South Africa is subject to compli- accepting and its potential contribu- ing waste streams for odour potential. ance with the requirements of the Ba- tion to odours. This information is POP waste (for example obsolete sel Convention. About 0.1% of Enviro- competitor-sensitive and as such, not stockpiles of pesticides) should never Serv’s total waste is accepted from the for general distribution.” be accepted at landfills, he said. SADC countries and this hazardous Rico Euripidou of environmen- “It’s a no-brainer. POP waste has waste is disposed of at Holfontein in tal justice group, groundWork, told the potential to harm the environ- compliance with the site waste man- Noseweek that the company’s waste ment and cause cancer. In March agement licence requirements and in manifesto for the Shongweni landfill 2016, the Shongweni landfill accept- line with the applicable Basel permit. from May 2015 to April 2016 (a copy ed 59 tonnes of POP waste.” No waste is received via sea.” n

16 an independent external compliance and environmental audit, done by Dr Dave Baldwin. “This audit is a re- Spinning it like quirement of our waste management licence issued by the DEA. En-Chem Consultants conducted the first audit of the fully-operational Shongweni leachate treatment plant, which in- a polluter cluded a site visit. Of the 67 auditable conditions only one was considered by the auditor to be only in partial HILE ENVIROSERV CLAIMS “OPEN community and other stakeholders”. compliance. None were found to be and transparent” communica- But at the MC meeting on 29 Sep- non-compliant. This resulted in the Wtion with its stakeholders, it tember, the last before Noseweek leachate treatment plant being rated has been consistently slapped down went to print, residents accused En- 99.2% compliant with requirements by residents and activists at public viroServ and their long-standing con- of the Shongweni Storage, Recovery meetings for lying, deception and be- sultant Pravin Amar Singh of again and Treatment (SRT) Licence. ing unwilling to make critical infor- trying to silence the community – as “The most recent independent ex- mation available. they had for the 1 September meeting ternal landfill audit was conducted by Residents have also accused Envi- – by sending invititaions and updates En-Chem in September 2015 and that roServ of skewing information by uti- to select people or deliberately giving audit score was 99.1%.” lising long-time contractors who “do short notice of meetings. Residents from Hillcrest, Shong- its bidding” in order to achieve results Some monitoring committee mem- weni and surrounds have posted on that favour the company. EnviroServ bers, including Lauren Johnson, were social media that the smell and their has denied this, but admits that some not alerted to the meeting; and some illnesses have not abated since April. of its contractors have been working had not received the minutes of the Residents told Noseweek the smell with the company for up to 20 years. previous meeting. (Noseweek was not had in fact worsened, as had the ad- EnviroServ representatives also invited despite being on Singh’s mail- verse health conditions being experi- did not attend any of the Merebank ing list and despite having been in enced. meetings. Instead, at the 15 Septem- regular contact with their PR firm. EnviroServ did not respond when ber meeting, copies of a letter on an Noseweek was sent a recording of asked if it felt the DEA and residents EnviroServ letterhead, signed by the meeting – at which Singh said were unfairly targeting the company. CEO Dean Thompson, were distrib- there might have been a problem with While initially willing to answer uted by what appeared to be someone his emails. He said he also knew most Noseweek’s questions, since 9 Sep- plucked off the street. of the residents were on social media tember the DEA has said it would no In the letter, he claimed there were groups and assumed they would find longer be providing comment while “literally hundreds” of industries us- out about the meeting that way. investigations are under way. ing the treatment works to dispose of Johnson asked him why it had not Minister Molewa accused Noseweek effluent, and that Shongweni’s land- been minuted that at the 1 September of using “ambush tactics” when con- fill effluent “is just a small fraction of meeting, residents from Dassenhoek tacted. this”. The effluent had to meet “me- and KwaNdengezi said effluent from Gordon continues to be as elusive as ticulous standards” set by the eThek- the landfill had flowed to streams the Scarlet Pimpernel. n wini municipality before disposal. in their areas and caused the death The company told Noseweek it did of livestock, or that a woman from not attend the meetings because Shongweni Clinic said that people in EnviroServ held its own “regular” the area were dying, or that a four- monitoring committee meetings and year-old child in Assagay had died of members of the public were welcome an asthma attack, or that Mark Gor- to “apply to become members”. don had replied “No” when he was At a fiery 1 September meeting, asked if EnviroServ was compliant. The DEA’s Mark Gordon said that Singh said those points would be all Monitoring Committee meetings noted in the next minutes and asked were to be open to residents, the me- those present to approve the current dia and other interested and affected set. They refused. parties. A monitoring committee is a “Today’s minutes must record that legal requirement. there are dissenting voices, that a The agreed 11-point plan required number of people have been left out the submission of “a detailed and in- of being invited to today’s meeting. clusive stakeholder engagement plan We are not willing to pass the min- Environmental Afairs Minister for the coordination and management utes now in this inaccurate form,” Edna Molewa of communication to all of the affected said D’Sa. n

NOSEWEEK November 2016 17 Why are we waiting?

President Zuma is holding of signing the Fica Amendment Bill passed by Parliament. By Thorne Godinho

OR MONTHS, SOUTH AFRICANS HAVE in fact urged Zuma to sign the Fica bill Much like the broader standoff be- watched the standoff between into law. tween Gordhan and Zuma, the Presi- the Treasury and the Presiden- The loudest voices in the opposition dency’s slow response to the new Fica cy unfold, with much of the pub- to this increased legislation have come bill highlights both the political fis- lic’s focus on Minister Pravin from former government apparatchik sures present in Zuma’s administra- Gordhan’sF longevity in Cabinet. This Jimmy Manyi’s Progressive Profes- tion, as well as the slow progress be- has more broadly resulted in a crisis in sionals Forum. ing made to tackle bribery, corruption government – one which has slowed its In September, the ANC Youth and political patronage networks. This attempts to pass more comprehensive League joined the chorus opposing the stalemate represents a hindrance to legislation to tackle financial crime and Fica bill, declaring that it was, “per- inculcating a culture of corporate com- the financing of terrorism. petuated by Monopoly White Capital”, pliance and securing South Africa from The Financial Intelligence Centre and was an attempt by the government organised crime, extremist groups and Amendment bill, intended to update to “abdicate” its responsibility to fight money-laundering operations. South Africa’s anti-corruption and an- financial crime. For industry insiders The new Fica bill is a comprehensive ti-money-laundering laws, was passed and political commentators alike these amendment to the current Financial by both the National Assembly and the protestations – likely fuelled by self-in- Intelligence Centre Act (Fica), which in National Council of Provinces in May, terest – seem bizarre, especially in the 2003 established the Financial Intelli- but has still not been signed into law light of growing international consen- gence Centre (FIC), the state agency by President Jacob Zuma. sus over the safeguarding of financial empowered to identify and investigate This is despite concerns that South systems and of increasing transparen- the unlawful proceeds of crime pass- Africa’s current legislation may not cy and accountability in these systems. ing through South Africa’s financial meet obligations set by the Financial system, and the regulations imposed Action Task Force (FATF) – a multina- on financial institutions and others tional anti-money-laundering body of to implement anti-money-laundering which South Africa is a member – and and identity verification controls. The that terrorist groups may be access- These obligations amendment proposes several new ob- ing funds and recruiting members in ligations on the private sector, bring- South Africa. are wildly unpopular ing the regulations in line with some In addition to this, in March 2014 the FATF recommendations and interna- bribery working group of the Organi- tional best practice: sation for Economic Co-operation and among those Development (OECD) raised concerns l Flexible and ongoing due diligence: over the limited investigation and For most South Africans, the acronym prosecution of foreign bribery in South who might find “Fica” recalls an often tedious journey Africa. through regulations, paperwork and The widely anticipated pushback themselves classified bank queues to verify addresses and from the financial services industry, identities. This has become a staple of which would face increased obligations South African consumer life, but the and regulation (and therefore extra as ‘prominent persons’ amendment bill will empower account- costs and potentially lost business op- able financial institutions to adopt a portunities) did not materialise. De- more flexible and nuanced way of com- spite initial reservations, the Banking plying with customer due diligence Association of South Africa (BASA) has obligations. For example, the amend-

18 Jacob Zuma Pravin Gordhan ment suggests that institutions adopt of opaque corporate vehicles, often in amendment, focused more broadly on a risk-focused approach, specifically offshore jurisdictions, to engage in il- preventing terrorism financing and tailored to the customers, countries, licit transactions and avoid tax. money laundering. All due diligence, products and channels being Know-Your-Customer checks and in- used at any given time. This may be a l Identifying “Prominent Persons”: ternal compliance procedures must be reprieve for the many South Africans The Fica amendment bill defines documented by accountable institu- who are excluded from the formal econ- two new classes of customers, namely tions, and employees must be trained omy and will shift the focus of finan- “domestic prominent influential per- to recognise risks and apply Fica con- cial institutions from compliance box- sons” and “foreign prominent public sistently. ticking to understanding and targeting officials”. These individuals, and their The amendment would effectively specific suspicious activity and risks. family and associates, will be subject modernise regulations on financial Accountable institutions will also be to enhanced due diligence and source crime, and bring the country in line required to implement ongoing Know- of wealth checks by prescribed institu- with its international obligations. Of Your-Customer (KYC) due diligence tions, bringing local regulations in line course, these obligations are wildly un- checks, scrutinising transactions in with the monitoring of so-called “Po- popular among those who might find respect of the client’s source of wealth litically Exposed Persons” under FATF themselves classified as “prominent and individualised risk profile. requirements. Of note, the amendment persons”, subject to greater scrutiny of extends beyond politically influential their financial affairs and association l Increasing transparency in the individuals, to include senior private with politicians and the state. financial system: sector executives in the employ of high- The loud and unfounded criticism Many wealthy individuals make use turnover companies or companies that provided by the amendment bill’s po- of trusts, partnerships or corporate contract with the state. litical opponents may provide the entities to obscure their ownership clearest indication of why it should be of a specific asset or involvement in a l Inculcating a culture of compliance: signed into law – and why businesses transaction. The new bill will thus re- In terms of the Fica amendment bill, must take a robust, risk-focused ap- quire institutions that fall within its all entities falling within the ambit of proach to cleaning up the economy. ambit to identify and verify the ben- the legislation will be required to de- (See Editorial). eficial ownership and control of juristic velop and implement a Risk Manage- persons. This requirement also comes ment and Compliance Programme l Thorne Godinho is an analyst at at a time when there have been grow- – internal rules and processes aimed S-RM, an international risk consulting ing international concerns over the use at meeting the obligations set by the company with offices in Cape Town. n

NOSEWEEK November 2016 19 Bridges of SIZE Controversial Sanral CEO Nazir Alli has retired, to be succeeded by former fellow board member Skhumbuzo Macozoma. As a welcoming gift, John Clarke ofers a story for him to ponder …

USTRALIANS TAKE HUGE PRIDE IN gest of its type you have ever seen... the Sydney Harbour Bridge This is a great bridge.” for its design – and because it The bridge finally opened on 19 is so huge. Bill Bryson in his March 1932. At 505 metres, it was book Down Under describes aiming to become the largest single- Athe structure: “From a distance it has span-arch bridge in the world. Alas, a kind of gallant restraint, majestic just before the ceremonial cutting ing founder, CEO Nazir Alli. but not assertive, but up close it is all of the ribbon, Bryson wryly records Sanral has not enjoyed a happy re- might. It soars above you, so high that that “the Bayonne bridge in New York lationship with civil society for the you could pass a ten-storey building quietly opened and was found to be last decade of Alli’s long tenure. He beneath it, and looks like the heaviest 6.35cm – 0.121% longer.” believes that Bishop Geoff Davies thing on earth. Everything that is in This story is told mainly for the ben- of SAFCEI (Southern African Faith it – the stone blocks in its four towers, efit of Mr Skhumbuzo Macozoma, the Communities’ Environment Insti- the latticework of girders, the metal man appointed to take charge of the tute), Wayne Duvenage of Outa (Or- plates, the six-million rivets (with South African National Roads Agency ganisation Undoing Tax Abuse) and I, heads like halved apples) – is the big- Ltd, (Sanral) to replace its long-serv- John Clarke, are largely to blame for

20 The humane face of engineering: the Mzamba footbridge; and (below) artist’s impression of the proposed Mtentu bridge compared to the dystopian Hillbrow Tower and Ponte City the alienation. “Beneficiaries of the unearned dividend of apartheid” is how he groups us. Ten years ago I tried to engage Na- zir Alli in a dialogue around our res- pective visions of development, hop- ing we could find common ground over his plans to shorten the N2 route via a shortcut along the Wild Coast. We were hoping to persuade Sanral to just move the alignment more inland, well away from the rich titanium deposits in the Xolobeni mineral sands, and away from the Msikaba Vulture Colony. he refused to hear what we were advo- Sanral’s Wild Coast road project still By the end of the conversation we cating. Confrontation has now soured pivots around its two mega bridges. were on first-name terms. He said his into adversarial hostility. At 580m the span of the Msikaba door was always open. Alas it soon bridge beats the Sydney Harbour became apparent that his mind re- c c c Bridge by 74m. But the total deck mained firmly shut. Not only against length of the Mtentu Bridge falls 16m the idea of moving the alignment in- I wasn’t sure whether to laugh or short of that bridge. It is only 1,133m. land (which would have obviated the cry when I recently received a Sanral To give a sense of comparative scale, need for the mega bridge crossings PowerPoint presentation which tries it would have been clever to superim- over the Msikaba and Mtentu river to “sell” the N2 Wild Coast Toll Road as pose the Sydney Harbour Bridge over gorges), but shut to any perspective “not just a road project, but a catalyst the two Wild Coast mega structures. that challenged or contradicted his for other development”. It assiduously They are in the same league. Moreover, dogmatic, top-down, technology driv- avoids any mention of the Xolobeni the Wild Coast bridges are much more en, money-measured, “bigger is better” Mineral Sands “development” (see beautiful than the giant “Coat Hang- approach to development. noses94, 116, 158, 195, 199 & 201). er” of the Sydney Harbour Bridge. Our engagement soon turned into a For years Alli has protested (too Instead Sanral “scales” their de- protracted email confrontation. Still, much?) that there is no connection. signs by superimposing the Hillbrow

NOSEWEEK November 2016 21 Artist’s impression of the proposed Msikaba bridge

Tower and the Ponte “Vodacom” sky- tive. My mentor, Professor Manfred liance to be harnessed to build many scrapers in the presentation. Max-Neef’s explanation can be found more bridges, but bridges that scratch There is irony in their choice of on YouTube – see “Manfred Max-Neef the real itch, like the Mzamba foot- these two structures as a reference. explains the Human Needs Matrix”. bridge that serves the needs of the Both symbolise the worst of 1970s ur- I bear Alli no malice. He has tried so people of the Pondo hills. ban architecture, an era when higher hard to get these mega bridges built That project shows that money is and bigger was assumed to be better, but all he has to show is a growing necessary and has its place, but only when today they are seen as brutally polarisation and an increasingly un- when the beneficiaries are respected dehumanising displays of power and bridgeable chasm between Sanral and as active participants in the develop- excess and the sort of technology driv- civil society. I weep for him. I hope in ment process. Development is about en hubris first encountered with the his retirement he will finally come to people, not about objects. allegory of the Tower of Babel. understand the power of love will al- The Mzamba footbridge cost ap- They betray a wholly inappropri- ways triumph over the love of power. proximately R5 million, including the ate mindset, totally out of character I hope even more that his departure costing of donated time of volunteers with the amaMpondo Cultural Herit- will now allow Sanral’s vast techno- and the management time of Marlene age Landscape that last month was logical prowess and engineering bril- Wagner and colleagues from the NGO named as one of “South Africa’s Top Build Collective, (www.buildcollec- Ten Endangered Heritage Sites”. tive.net) who designed, constructed Sustaining the Wild Coast chairper- and managed the project with a lo- son, Margie Pretorius, has written to cal steering committee (see Facebook Macozoma inviting him to “walk the Ultimately it is page Bridging Mzamba). Wild Coast,” to reflect again on what Divide R5m into the R2.5 billion “development” really means, and how not about the mega bridge bill and one could com- state resources really can serve peo- fortably afford to build 500 similar ple. If he accepts, we will commence footbridges – far more than needed. the walk at the Mzamba footbridge, quantum of money, Instead of making another new big immediately below where Sanral environmental footprint, why not sim- plans to build the first of nine bridges ply use the existing footprint and up- along the 96km “green fields” section. or the volume of grade rural roads in partnership with If one contrasts the Sanral mega- the people? bridges with the Mzamba footbridge, traffic as it is about Ultimately it is not about the incommensurability of the two devel- amount of money, or the volume of opment paradigms is stark. traffic as it is about the quality of com- Whereas the Sanral development the quality of munity life that results. That can only philosophy under Alli’s tenure was happen when technology is placed at “bigger is better”, technology driven, the service of the other two members money measured, elitist and efficient, community life that of the World Survival Trinity: nature the human scale development model and people. that underlies the Mzamba foot- results Seen that way, Sanral’s N2 Wild bridge is from the gut, people-centred, Coast Toll Road is obscene and ab- needs-based and ecologically sensi- surd. n

22 The mystery of Castlepines’ billions You have probably never heard of Castlepines Corporation. Yet every year, says its chief executive David Grose, pension funds and insurance companies ofer him so many billions of dollars to invest that he can’t place it all. Does that sound too good to be true? Jack Lundin investigates

ROF GIRISH MODI, DISTINGUISHED give any information about their in- – was non-refundable. The Wepani head of neurology at Wits Uni- vestor to “any third party, including partners were incensed and speculated versity, must be wondering the investment community”. Should a that they had become victims of what whether he had a brainstorm recipient receive a court subpoena re- Geoffrey Freeman describes as “a glob- when he handed over R1.5 mil- quiring disclosure about Castlepines, al scam operation”. lionP in US dollars to a company called there must be immediate consultation Says Freeman: “Prof Modi said Castlepines in Sydney, Australia. “on the advisability of taking available there’s something definitely strange The professor, who also has a lucra- legal steps to resist or narrow such re- here. He had this friend who’s in bank- tive private practice at Life Brenthurst quest”. ing in Dubai, who came back and said: Clinic in Parktown, Johannesburg, The Wepani Village development, on ‘Guys, I think you’ve got a serious prob- up the $130,000 to fund a due 25 hectares outside Nampula, Mozam- lem here; these people don’t exist’.” diligence by Castlepines Global Equity, bique’s fourth-largest city is more than Freeman has complained to the Fi- lined up to deliver US$300m to kick- 2,000km north of the capital, Maputo. nancial Services Board that Castle- start a luxury housing/retail develop- It is the ambitious $600m (R8.3bn – pines “are not what they claim to be or ment in north-west Mozambique. yes billion) shopping centre/luxury are able to do”. The FSB has confirmed Castlepines Global Equity, registered housing project of Joburg “funding fa- “the matter will be investigated”. in the British Virgin Islands, doesn’t cilitator” Geoffrey Freeman and Mo- Castelpines’ “man in Africa” Andre publish its annual accounts for public zambican businessman, Dula Magide. Botha tells Noseweek that Freeman is scrutiny, despite being apparently en- The master development plan in- “motivated by malice”. trusted with billions of dollars annu- cludes 740 apartments, 31 luxury There has been speculation about ally – in insurance and pension funds houses and a 160-bed hospital. Castlepines on the internet for years. dollars – to invest in massive private Modi came into the enterprise on the Sample postings: We have been seek- and governmental projects around the carrot that he would run the hospital. ing information about Castlepines world. Its associated Castlepines Cor- His $130,000 payment to Castlepines Corporation Australia and its ability to poration (Australia) Pty Ltd, is just as gave him an 8% stake in Freeman/ raise funding in excess of US$100m for reticent. Magide’s Mozambique-registered com- major infrastructure projects (2011)… With a tiny staff – one man in Joburg pany Wepani Lda. They were deregistered in Australia for Africa and the MidEast, working Modi’s $130,000 was duly dispatched in November last year (2008) …The from home – Castlepines flies so far un- to Sydney in two separate drafts. principal has been subject of litigation der the radar that some speculate that Then Castlepines dropped a bomb- with an Australian bank before… They it doesn’t even exist. Certainly, for the shell: they were pulling out. Wepani are an unknown entity in Australia al- press, they’re a bunch of unapproach- did not fit their investment criteria; though their principals are known… able, hard-to-tie-down curmudgeons. the project was “unbankable”. And the Geoffrey Freeman, an alumnus of Recipients of Castlepines investment- prof’s $130,000 – as stipulated in the King David School, Linksfield, is a for-equity billions must pledge not to now-cancelled Letter of Engagement wheeler-dealer in traditional Joburg

NOSEWEEK November 2016 23 tycoon in Houston, Texas, where he headed Starr Corporation Inc; and Thomas Doo, member of a powerful Chinese merchant family in New Zea- land. Starr died five years ago aged 66; Doo retired to Auckland in his 80s. The venture grew out of Grose Prop- erty Holdings, a New Zealand property investment company formed by David Grose in 1975. Around 25 years ago Grose joined up with Starr and Doo and they became Castlepines Corporation, describing themselves as a consortium of private sector investors seeking to buy long-term conservatively yielding assets that provided a secure stream of passive income in order “to provide income to the superannuation funds of the principals”. In other words, Castle- pines was a pension money-raiser for Messrs Grose, Starr and Doo. In the early years, under David Grose at Grose Property Holdings, the trio pursued an aggressive policy of “risk-taking and a preference for undervalued assets capable of renova- tion”. Later on, “owing to the age of Mr Prof Girish Modi (above); David Grose (top right) Starr,” a more conservative acquisition and Peter Phippen style was introduced. A former Castlepines director is Peter Phippen, present head of Ab- botts Valuers, one of Australia’s lead- mould. He describes himself as a “fund- the capital plus interest. We just had ing property valuers. Phippen was not ing facilitator”, and waxes eloquent on to put up US$130,000 for lawyers and inclined to talk to Noseweek. “I have current projects such as “facilitating” accountants to do the corporate and had nothing to do with Castlepines for R2.5bn for a client to snap up Caltex’s tax structuring.” years – why are you contacting me?” he 845 petrol stations, and negotiations Botha, 54, is a former advocate who demanded from Sydney. with Lafarge, the world’s largest ce- explains to Noseweek that he resigned What was his role at Castlepines? ment company, over a 20,000-hectare from the Johannesburg Bar after six Can he confirm that when he was in- limestone concession. years “in order to do other work”. In volved Castlepines was a genuine glob- Like his Castlepines nemesis, Free- 2010 he began his present self-em- al investor with access to many billions man is a will-o’-the-wisp, with no office, ployed “contractor” role as Castlepines’ of dollars for investment? no landline; strictly a laptop-and-cell Strategic Adviser and General Man- Phippen replied: “When Castlepines operator, working from home. He de- ager Africa and Middle East. To help Corporation commenced operations scribes Dula Magide (owner of a 57% with the job he beefed up on develop- over 25 years ago and I was recruited, I majority stake in Wepani) as a Mozam- ment finance with some short courses had to sign confidentiality agreements bique businessman active in Nampula at Stellenbosch Business School. thicker than an old phone book, so I am Province who’s just flogged a couple of Botha also operates from home – his unable to help you. I suggest you find mega-rich graphite concessions to Aus- emails bear the address 12 Anderson another story to pursue – no one who tralia’s Syrah Resources. Lane, Lambton in Germiston, with a is or was ever involved with CC will Freeman’s introduction to Castle- landline number that hasn’t worked tell you anything. People who deal in pines, as he tells it, came via Ken, man- for a while. The address is the regu- multi-billions and who make the world ager of Mugg & Bean in Sandton City. lar meeting place for an enterprise turn do not want publicity.” Over breakfast he told Ken he was on named HealingPoint, which ministers It’s hardly surprising that Phippen the hunt for some mega funding and to trauma victims through “family con- is press-shy. In 2008 he was called be- Ken suggested he meet one of his regu- stellations workshops”, with healing fore the New South Wales Supreme lars, Andre Botha. to those suffering from negative emo- Court for questioning by liquidator “Andre said yes, we can definitely tions, angst or panic. PricewaterhouseCoopers into the de- help you,” says Freeman. “He said Castlepines Corp had three found- mise of Australian Capital Reserve Castlepines would fund 100%, take ing partners: property director David (ACR), a debenture issuer that had col- 50% equity and at their exit we’d repay Grose; E Wayne Starr, a real estate lapsed owing 7,000 investors around

24 Au$300m. It was alleged that Phippen Global Equity GM (Africa and Mid- had overvalued property appraisals to East) says: “The project in Tunisia has assist ACR directors in their eleventh- Geoffrey Freeman been delayed by political violence in hour bid to attract hundreds of mil- the country, but remains planned for lions of dollars from investors. future implementation.” He can of- This followed revelations that Phi- says he has now fer no amplification on the three 2014 ppen had negotiated to buy a coastal projects scantily mentioned by Da- apartment from ACR at a discount of vid Grose in his Tunis presentation. Au$200,000. Phippen denied all im- secured new investors “These projects are ongoing and the propriety and said heart surgery a few details are confidential,” says Botha. years previously could have affected for Wepani: Industrial He declines comment on the apparent his memory. fall-through of Castlepines’ US$1.1bn At Castlepines today, its now-ageing investment in Vietnam’s Van Don Air- founding partner David Grose calls and Chemical port. the shots as chief executive officer and Last year Castlepines received more head of acquisitions. There’s a telling media plaudits for racing to the aid of picture of his style in his presentation Bank of China has Australia’s troubled Discovery Metals, video at a 2014 fund-raiser in Tunis for offering US$110m to pay Discovery’s Tunisia Economic City. TEC is a gran- “committed” to put debts and develop its underground diose if implausible US$180bn Saudi- copper mine in Botswana. Four months sponsored project to create a “new later, however, Discovery’s lender syn- Dubai” over 90km2 in economically up half the money dicate rejected the Castlepines rescue stagnant Tunisia. package and Discovery went into vol- In the video (watch it on Noseweek’s untary administration. internet edition) Grose explains that Saudi Arabia, TEC is no longer consid- Regarding Wepani Village in Mozam- Castlepines is a private pension fund ered a serious project. Prince Moham- bique, Botha says: “Wepani was unable headquartered in Sydney, Australia. mad bin Salman, the youthful new or unwilling to meet our agreed invest- “We are partners with public pension Deputy Crown Prince, defence min- ment criteria. Accordingly the project funds and insurance companies who ister and head of the embryo Council failed to satisfy our due diligence ex- constantly offer me very substantial for Economic and Development Affairs, amination. sums, many billions of dollars per year, has little appetite for this sort of eso- “Unfortunately, sometimes our cli- for new projects that we do not use,” he teric indulgence – he’d prefer to give ents overestimate the commercial vi- tells his audience. any spare cash to Egypt. ability of their projects and their pro- Tunisia Economic City matches the One project in 2014 that Grose didn’t jects fail our due diligence process, as Castlepines criteria perfectly, declares mention in that Tunis video, but which was the case with Wepani.” Grose, announcing partner approval Noseweek has managed to track down Prof Girish Modi declines to give for an investment of US$3bn, increas- to time and place, was a projected in- a view on Castlepines and his lost ing to US$10bn within five years. “We ternational airport to handle 6.5 mil- US$130,000. Andre Botha says: “Wepa- are ready to start now.” lion passengers annually, to be built on ni paid this fee for outsourced legal As for Castlepines’ credibility, rather Van Don island in Quang Ninh Prov- and tax advisers to conduct the due than “bore you with the past”, Grose ince, Vietnam. diligence on our behalf. This fee is non- gives his audience some impressive if In August that year Dolin Han, chair- refundable.” vague information about three of the man of South Korean property compa- From Castlepines’ “representative of- “more significant” projects that year. ny Joinus, announced that Australia’s fice” in London at 39 St James’s Street, With no identification of country or cli- Castlepines Corp had delivered a writ- Piccadilly (they rent one of those units ent, they are: ten commitment to invest US$1.1bn in that provide a swish address) chief ex- l A €4bn rail project in Northern the airport and a nearby resort com- ecutive David Grose emailed Wepani’s Europe, partnered with a government. plex. Han said the first instalment of Geoffrey Freeman: “You seem incapa- A three-year construction programme US$800m would arrive after “official ble of understanding that you have not had begun; agreement had been reached” and con- even remotely met our criteria with l US$800m for barges carrying struction would begin in the first quar- your current project. What you do from floating power plants to two African ter of 2015. here is entirely up to you.” countries to supply low-cost power. To- The following year, however, Joinus Despite Castlepines’ rebuff, Geoffrey tal orders were for 33,180-megaWatt was replaced as Van Don’s developer Freeman tells Noseweek he has now se- floating plants, for US$6.7bn; by Vietnamese property company Sun cured new investors for Wepani: Indus- l The approval of £6bn “for an en- Group. Provincial management au- trial and Chemical Bank of China has ergy project”. thority deputy director Trinh van Hong “committed” to put up half the money, Nothing much has since happened said a new investor had to be found, as on condition that Bank of China comes with the grand Tunisia Economic City under Joinus, there had been no posi- up with the other half. Chinese State venture. That country remains in eco- tive progress. Construction Engineering Corp, he nomic meltdown and, in sponsoring In Joburg, Andre Botha, Castlepines says, will do the construction. n

NOSEWEEK November 2016 25 Not laughing all the way to the bank

Tshwane’s new DA Mayor, Solly Msimanga, is drowning in the sea of corruption left by his ANC predecessor. By Susan Puren Tshwane’s former mayor Sputla Ramokgopa

HE LOOTING OF PRETORIA’S the municipality are unemployed black long-term contractor’s tendered price is municipal coffers (nose203) did youths from the townships. Networks often up to 400% cheaper than that of not stop when the DA won the of white officials and their relatives are the tenderpreneurs-in-training. recent local elections. Corrupt as expert at taking the loopholes and Reams of documents in Noseweek’s Tshwane officials and their co- shortcuts created in the city’s supply possession contain thousands of exam- hortsT are still defrauding the metro chain to accommodate small-time en- ples. For instance, 161 purchase orders, at an alarming rate – and still getting trepreneurs. (See accompanying story.) worth almost R68m, were issued to just away with it. (So far only three city of- Many of the township “Tshepos” have 12 of these new “co-ops” between May ficials are facing criminal charges – and lately formed co-operatives because and August this year. Compared to the even that could not be confirmed.) these qualify as preferred suppliers long-term tenders that were already in It seems new DA Mayor Solly Msi- for orders worth up to R30,000, when place for the same items, the overspend manga and his team are overwhelmed only three quotes need be submitted. involved was more than R25m. by the extent of the rot – an almost im- The system has triggered a corruption In August one of these new co-oper- penetrable maze of skullduggery is be- fest. To recap on an example given in atives, Meetsing Primary Co-op, sup- ing uncovered in the municipality. last month’s Noseweek: a quote for 100 plied 2,000 prepaid meters for around Last month chaos broke out during units of an item would be R300 per unit, R4m, while the company that had won a council meeting when thugs occupy- while a quote for 50 of the identical the tender would have supplied the ing the opposition benches physically item, supplied a week later by the same same meters for R1.8m. Meetsing Pri- attacked the new political leadership. company, would simply be increased to mary Co-op also supplied electrical mini While the bottle throwing and fist fight- R600 per unit to attain the magic quali- sub-stations at four-times the tendered ing in the council chamber were mak- fying figure of R30,000. Both bids are price, robbing the cash-strapped metro ing the headlines, a Who’s Who of the accepted by city officials, with no ques- of a further R1.5m. In addition they re- municipality’s Supply Chain Manage- tions asked. ceived an order for something described ment were sipping cappuccinos with In contravention of the preferred bid- as “cleaning” at R16,800 and this service their freewheeling fraudster friends der directive the co-ops are also given was delivered no fewer than 11 times, and relatives who make their living orders for much larger amounts, all all on one day. Meetsing’s sales to the masquerading as bona fide suppliers. without a tender process, as long as council totalled R9m over the three- Many of them acquired their “skills” three quotes are in place. month period. Noseweek’s repeated calls from former mayor Sputla Ramok- Time and again companies that re- to Meetsing Motubatse, who is listed in gopa’s Tshepo 10,000 Programme, portedly exist on paper only submit the council documents as the co-op repre- which was supposed to turn Pretoria’s required second and third quotes. Tra- sentative, remained unanswered unemployed youth into entrepreneurs. ditional long-term tender contracts in Another of the 12 co-ops, Safety Line, Instead it appears to have bred a new place for the same goods and services supplied a range of goods from garden generation of tenderpreneurs. are totally disregarded in favour of tools to food for township crèches and Not all those involved in defrauding these “do good” frauds, even though the had a turnover of R10m in one month.

26 When Noseweek called the Safety Line Co-op representative Regina Mo- jipelo, she said she only speaks Tswana – and rang off. Legae Housing Project received orders for grave digging, toi- Racketeering as let paper and the generation of final- demand letters and turned over R6.7m in three months. But are these co-ops for real? Noseweek called the listed members of another six usual in Tshwane of the 12 co-ops and in all cases the cell phone numbers went unanswered. A call to the telephone number of Wining (sic) Minds Farming was answered by a man who said he had never heard of Nearest and dearest (and their many an entity with that name. He was sur- prised to learn that his name and num- ber appeared on the co-op’s documents friends) make big bucks out of crooked filed at the council, and that it had sup- plied pre-paid meters and mini substa- tenderpreneur cartels. By Susan Puren tions worth R8.9m in just 15 days to the Tshwane metro. He told Noseweek he had applied to take part in the Tshepo 10,000 Programme, but was informed he had not been accepted. Someone in the know has clearly stolen his identity to better defraud the Tshwane munici- pality. OLLUSIVE BIDDING BY SUPPLIERS gang Trading quoted R300 for a R79 When Noseweek phoned another of of goods and services to the light bulb. She asked the journalist the cellphone numbers listed for Win- Tshwane municipal administra- to contact her business partner, Le- ing Minds Farming, someone called tion happens frequently – and Roy van Niekerk for the answer. It Mandla answered and said Wining often quite openly, with some of soon emerged that he had submitted Minds was his brother Bongi’s com- theC five chief storekeepers in cahoots a slightly lower quote for the same pany. Mandla said Bongi was younger with vendors, overriding the system to globes in the name of another compa- than 35 and therefore qualified for the benefit their own back pockets, inside ny, Tloxile Supplier. Van Niekerk said Tshepo 10,000 Programme. He said he sources have told Noseweek. Angelique buys the globes from his was mentoring Bongi. In fact, Mandla A chief storekeeper would both cre- company when she gets the order, and was running the business as well as ate and release a purchase requisi- that he in turn buys them from a re- financing it, while Bongi was study- tion, which is contrary to the National tailer. Needless to say each link in the ing Town Planning. When asked about Treasury’s guidelines about the seg- chain adds a markup but without add- the other directors, Mandla said one regation of duties. He/she would then ing any value to the product. was living in Welkom and the other pass it on to a specific buyer who is in Neither Batlegang Trading nor Tlox- three, in townships around Tshwane. on the deal. The buyer only procures ile Supplier is registered for VAT, ac- Noseweek did not want to spoil a happy the three regulation quotes from com- cording to the documents leaked to conversation by asking what role they panies in their fraud syndicate so that Noseweek, but the two companies re- play in the company and whether they in reality there is no competition. The ceived orders worth a total of R4.5 mil- are actually aware that they are part- hugely inflated profit is shared among lion from Tshwane in 12 months. ners in a multi-million-rand business. the conspiring parties. Matthew Gerstner, the spokesperson Lucrative money-making scams have Collusive bidding is a criminal of- for the Tshwane Mayor, says: “Those brought Tshwane to the brink of finan- fence and against section 4 (1)(b)(iii) of contracts have been stopped and disci- cial administration. Early in October the Competition Act. plinary processes have begun. We have the newly appointed MMC for Finance, In September Noseweek described instituted a full forensic investigation Mare-Lise Fourie, gave some insight one such deal for the supply of energy- by an external audit firm into this into the financial chaos left behind by saving light bulbs. Several companies matter; thereafter criminal charges the ANC: an unfunded budget, an ac- submitted quotes but it appears as may follow.” cumulated deficit, an unaffordable fleet though some companies exist only on Yet Noseweek sources in the Tshwane management contract, an unsupport- paper – and that the owners are all administration have no knowledge of ive IT system and little management known or related to each other. any of this and both Angelique Lom- oversight or control over outsourced Noseweek’s lead came from eNCA’s baard and Le-Roy van Niekerk are contractors, she wrote in a notice to investigative programme, Check- still doing business with Tshwane. DA councillors. She said none of these Point, in which Angelique Lombaard Van Niekerk’s alleged group of com- could be rectified in the short term. n was asked why her company Batle- panies and co-ops reaches much fur-

NOSEWEEK November 2016 27 director of the company” – was on his engagement to Vadruscka, saying maternity leave. He refused to sup- on Facebook “She said yes!” ply Noseweek with her contact de- The Facebook profile os minicipal tails but claimed to be an agent for storekeeper Robert Slaughter, and the company. that of his wife, Vanessa, has a wealth When confronted about the alleged of personal information about the cosy collusive bidding he said it was not networks of friends and friends-of- true and asked that questions be friends and relations-of-friends who do sent to him – then refused to supply business with the Tshwane Metro. Le- his email address. Roy, Kurt, Vadruscka, her brother Da- During the last financial year Kurt mian and members of other “families” van Niekerk’s company, Consumable that draw from the lucrative Tshwane Warehouse and G J van Niekerk’s budget constantly “like” and “love” pic- company, Tirusano Services & Trad- tures of each other’s flashy cars, hunt- ing, received orders worth nearly ing trips and newborn babies. Yet the R5m from Tshwane. The total turn- declarations of interest that accompa- over for the eight companies was ny the hundreds of quotes they have R31.6 million. submitted to the municipality, all state Facing up: Le-Roy van Niekerk and One of Tshwane’s chief storekeep- that they have no ties with any metro Vadruscka Diedericks ers, Robert Slaughter, created and employee. released the purchase requisitions For example, Wizeli Trading’s owner for a significant number of the orders Zelde Snyman declared over and over ther and higher than Batlegang and that went to the Van Niekerk grouping. that she had no relationship with any- Tloxile. His fiancée, 21-year-old Vadr- Slaughter is a larger-than-life charac- one involved in the adjudication of the uscka Diedericks, his father, G J van ter with a love of tattoos, exotic cars hundreds of bids she submitted. Not Niekerk and his brother Kurt are all and luxury holidays on sun-drenched only was Snyman on the alleged spon- doing “business” with Tshwane, sup- Indian Ocean islands. It’s alleged that sored Mauritius trip, she is also mar- plying a variety of goods under sever- in May this year Le-Roy van Niekerk ried to Willie Snyman, a storekeeper in al company names. Of note is the fact sponsored a Mauritius holiday for the charge of a municipal warehouse that that the second and third quotes – re- Slaughters and several other Tshwane is under Robert Slaughter’s control. quired by the Treasury before an or- employees and their families. There are at least four companies der is issued – are almost always sub- During the trip Le-Roy announced in the Snyman stable: Wizeli Trad- mitted by one or other of the (at least) eight companies in the family’s stable. Although they use different postal ad- dresses, it is alleged that the grouping operates from the same premises in Pretoria North. Young Ms Diedericks is listed as a director of Tshwane North Electrical Co-operative. It has no VAT number and its business address is a flat in Pretoria Gardens. In the past financial year Tshwane North Electrical sup- plied the metro with goods – ranging from clothing to mini electrical sub- stations – worth R15m. The city would have saved more than R6m had these been supplied by the contractors who originally won the different tenders. When Noseweek went looking for Diedericks, hoping to elicit her recipe for business success, she was not to be found at Tshwane North Electrical but at one of two new Pretoria nail bars, of which she is the proud owner: Planet Nails in Wonderpark Shopping Centre and Planet Nails in Pretoria North. Le-Roy van Niekerk also answered a number listed for Tshwane North Living large: Robert and Vanessa Slaughter in Thailand Electrical saying Ms Diedericks – “a

28 Can I quote you? Zelde and Willie Snyman

Snyman group and even placed orders with them for highly specialised work. This includes renovations to historical Veiled truth: Robert Slaughter with structures like the City Hall and sev- step-daughter Samantha eral buildings on Church Square that were carried out by Wizeli Trading. IF YOU RENT PROPERTY Calls to Zelde Snyman and Saman- ing; Wakewood Technical Corporation; tha Wyeth’s cell phone numbers went KEEP THIS NUMBER Panbuch Trading; and Phoenixmoon unanswered. The quotes submitted by Trading. They all submit quotes for Corrie Snyman had no contact details the same goods and services but with for him. Slaughter did not reply to I CAN HELP YOU WITH small differences in price. All of them questions about the allegations. PROBLEM TENANTS are reportedly connected and known to These marauding companies and Slaughter. dishonest officials who so readily feed I CAN ASSIST YOU WITH THE It is alleged that Samantha Wyeth, them with public money are minor ex- RENTAL HOUSING TRIBUNAL the registered owner of Phoenixmoon, amples of the bid-rigging cartels that is Slaughter’s step-daughter, while have thrived in the corrupt environ- IF YOU DON’T NEED ME NOW, Corrie Snyman, the brother of store- ment of the previous ANC regime in keeper Willie Snyman, is a sharehold- Tshwane. It remains to be seen wheth- YOU WILL LATER er of Wakewood Technical Corp. er the DA will be able to stop them in Noseweek’s sources say Panbuch’s their tracks. JOHN: 082 901 0824 owner, Marisca Rademeyer, is in busi- Shortly before Noseweek went to ness with Zelde Snyman of Wizeli press, the new mayor announced that Trading. Marisca denied this (but then disciplinarly action had been insti- abruptly ended the call). tuted against several officials involved Over the past few years the Tshwane in the multi-million-rand contract to Metro took good financial care of the renovate the City Hall. n

The wheel deal: Zelde Snyman receives the keys to a new Prado

NOSEWEEK November 2016 29 Zulu impis will cling to power in 2019 RW Johnson prophesies tough times – but all is not lost. By Sue Barkly

HE REALLY BIG DIFFERENCE ARISING says Johnson, “but decades in Oxford”. from South Africa’s recent lo- it does mean other Behind his desk is a cal government elections is that possibilities are now photograph of an Ox- they considerably weakened much stronger and ford group taught by President Jacob Zuma’s ability that Zweli Mkhize is Johnson: his former toT control the succession race – and the most likely suc- students include Brit- dispense patronage. cessor to Jacob Zuma ain’s Health Minister, Zuma’s hopes for his ex-wife Nko- as president.” Jeremy Hunt, former sazana Dlamini-Zuma to succeed him In his most recent Foreign Secretary could well have been dashed – leaving book, How Long Will William Hague, for- Zweli Mkhize (ANC Treasurer and South Africa Sur- mer Minister of En- former KwaZulu-Natal premier) as vive? The Looming ergy, Chris Huhne, as his most likely successor. Crisis (2015), John- well as Gareth Evans, This is the view of political scientist son concluded that Chancellor of Austral- and author RW Johnson, interviewed South Africa was on ian National Univer- by Noseweek in his office at his home its way to an Inter- sity. in Constantia, Cape Town. national Monetary In 1977, Johnson’s “Many people feel that Zuma cost Fund (IMF) bailout, then top-selling book the ANC a lot of votes – which he did,” followed by regime (also titled How Long said Johnson. “The ANC lost some- change. And that while Deputy Presi- Will SA Survive?) gave a compelling thing like 1,000 council seats around dent Cyril Ramaphosa “clearly wants” analysis of the survival prospects of the country in the election. And those the position of president, “I don’t see the apartheid government. He looked are not the only losses. Many ANC how he can possibly get it, unless at how long it would be before the rul- people working in the administrations there’s a sudden change or if Mkhize ing white establishment encountered of Johannesburg, Port Elizabeth and wants him to get it”. a regime crisis. The second book of Pretoria will now lose their jobs be- “Mkhize is in the pound seats here. the same title takes the position that cause they are ANC cadres whose po- It’s a very interesting situation,” John- the situation in South Africa after 20 sitions were based only on tenders and son said. He explains: “A key reason years of ANC rule is so bad that we contracts. They were damn useless at for Mkhize’s rise is simply because he need to ask the same question again. their jobs. has his base in KwaZulu-Natal, which Considered by some to be a man of “Add all that up and thousands of is the critical province.” controversial views – he doesn’t hesi- people in the ANC will lose their jobs An Emeritus Fellow of Magdalen tate to use words like “tribalism” and and salaries as a direct result of these College, Johnson, 73, has published 12 “buffoonery” – Johnson remains an elections. books, numerous academic papers and internationally recognised commenta- “In other words, Zuma’s decline has many articles for the international tor on South African affairs, known for now cost them enormous amounts in press. He recently completed an anal- his frank analysis and lack of political patronage.” ysis of the local election results. correctness. The reason for the turnaround on His book on Oxford, Look Back in Christine Qunta, one-time ANC Dlamini-Zuma, Johnson explained, is Laughter – Oxford’s Post-War Golden lawyer and former SABC board mem- that people will see her as “a continu- Age, came out at the same time last ber, denounced him for his references ation of Zuma by other means”.While year as How Long Will SA Survive? to tribalism. his ability to control the succession The Oxford book was described by Reviewing Johnson’s book, former will be a lot weaker than it was, “this The Times Literary Supplement as US diplomat Brooks Spector calls doesn’t mean he will be chucked out,” “a marvelous memoir about his three the author “a kind of a contemporary

30 “I have been saying these things since the middle of the 90s – and eve- ryone said how reactionary and right- wing I was. I have found it strange… as throughout my life I have had friends around the world, but somehow I have got this purely local reputation as a right-winger. I am certainly not seen that way in Britain, but… you put up with that. “As things go by, I find that more and more of the people who were attacking me have either emigrated or gone very quiet. And when I bump into them, I find that they agree with me entirely. It is not clear where we disagree,” he told Noseweek. Johnson has long maintained that Durban is the core of the battle being RW Johnson with his wife, Irina Filatova fought in the ANC at national level. No matter how controversial it may sound, he says, it is highly significant South African Cassandra, telling all enced, skilled or educated to be able to that ANC membership is higher in who will listen or read his predictions, do it and, in a way, it’s not their fault. KwaZulu-Natal than anywhere else. repeatedly, that South Africa as it is But… if they continue to be in charge, He also says the effects of a large trib- presently constituted and governed is it is inevitable that things will get al vote – ie the “Zulu bloc” – should not headed down a seriously steep, nearly worse… As you can see, the political be underestimated. inevitable downward trajectory to a situation is changing.” In a recent address to the Cape very bad end, ever-accelerating as it He scoffs when asked if South Africa Town Press Club, Johnson said one heads ever downward…” has reached its darkest hour? “Good possible scenario that could play out Rian Malan, an old friend of John- heavens, no… there is much leeway was that the faction forming around son’s, noted in The Spectator last for things to get a lot worse.” Mkhize would work in alliance with year that, despite Johnson’s publish- Johnson has long voiced concern Ramaphosa – with Mkhize bringing ing and academic record, he has been that, while manufacturing and mining the Zulu vote behind Ramaphosa as “shunned by local book fairs and ban- industries are decreasing, the public president. Mkhize would then sup- ished from our op-ed pages”. sector – which pays big salaries to a port Ramaphosa as interim president Johnson’s latest book, said Malan, bloated civil service – is the one sector of the ANC from 2017, and then of had been “greeted by an ominous that continues to grow. the country from 2019, with Mkhize silence here in South Africa, making becoming deputy president and, ulti- its way on to local best-seller lists mately president. without any review attention, not But, in our interview, Johnson down- even attacks from Johnson’s enemies”. played the “happy assumption” that “It seems even they are reconciled Ramaphosa will step into the posi- to the fact that Johnson is right again. tion as president. “It depends how South Africa is in crisis,” wrote Malan. Johnson has long it happens. If Zuma had a heart at- Johnson, who labels himself a social tack, or something like that and he democrat, is bemused by his reputa- maintained that suddenly had to go, then obviously the tion as a reactionary and controversial deputy president would succeed and commentator. Ramaphosa would come in, but if it is Having, through the years, seen de- Durban is the core done in the usual way by a conference velopments in South Africa from an and a long build-up, with martialling economic perspective, he believes the of votes in the provinces etc, I don’t country can either choose to have an of the battle being think Ramaphosa has a hope. That’s ANC government or a modern indus- because he is a Venda. He doesn’t trial economy. “It can’t have both.” fought in the ANC at even have his own province, Limpopo, He believes South Africa has “a com- behind him and Vendas are not very plete misfitgovernment. “We are be- popular elsewhere. ing ruled by an elite and a party that national level “I laid it out in the book... If you look is completely inappropriate to run a at it, once the ANC became a serious country of this type. party… by about 1952, they chose Lu- “They’re not sufficiently experi- thuli, after which they chose Mandela,

NOSEWEEK November 2016 31 then Tambo, then Mbeki, then Zuma eral] Gwede Mantashe literally gave making him immensely rich – in re- as leaders. Every single one of them the game away when he said the split turn for which he gave Zuma total loy- is Nguni. They are all either Zulus or (into Cope) that took place when the alty. The result was the formation of Xhosas. ANC got rid of Mbeki, would be noth- a political alliance between KZN and “That group has it sewn up. They’ve ing compared to what would happen the neighbouring provinces of Mpu- had the leadership now for over 50 with Zuma. malanga (where Premier David Ma- years. It takes a bold person to bet “What he meant is, if they chucked buza ran a similarly corrupt fiefdom) that a Venda will break that line. The out the first Zulu leader in 50 years, and the Free State, creating a pro-Zu- betting has to be on a Zulu.” there would be holy hell from KZN. ma bloc which controlled some 40% of One wonders what the relatively They would not stand for that… and the votes at any ANC conference. In low-profile Mkhize – believed to have Zulus are much more cohesive than effect Zuma had thus already insured fallen out with Zuma in recent times Xhosas. Zulus have one king and see himself against any possibility of the – would be thinking at the moment. themselves as one group. They would sort of insurrection that had deposed “Mkhize must be in a difficult situ- not take that lying down. (his predecessor, Thabo) Mbeki. ation because he knows if he decides “Think back to when Vorster was “A similar deal was done in Lim- to run – the minute that becomes vis- president and Buthelezi was the popo province, where Cassel Math- ible – Zuma will try everything to stop most outspoken African leader… who ale became premier. In the Northern him. Zuma wants his ex-wife to suc- would continually say, ‘we demand Cape, the ANC provincial chairman, ceed him, because he wants someone universal suffrage’, ‘release Mandela’ John Block, became the pivotal figure who will do for him what Ford did for and ‘unban the ANC’ etc. Vorster was in a similar web of corruption, revolv- Nixon, to give him immediate amnes- furious… but he knew what half a ing – as such things generally did – ties etc. million angry Zulus could do… knew around tenders and procurement. “He strongly believes his ex-wife that was a force to be reckoned with. I The same applied exactly to the MK will not let her children’s father be put think now the ANC government feels veterans. Thus the Zuma system. In in jail, or be humiliated. That is why just the same.” effect, provincial premiers and party she’s his safest bet… He can trust her In the book, Johnson details how bosses were given a licence to plunder, and she’s a Zulu so that keeps her on the “Zuma system” actually works provided they stayed loyal to the chief the inside track. and succeeds in making the reader at the centre. Since the chief and his “I think Zweli Mkhize, who is no breathless with the realisation that family were themselves getting rich doubt ambitious, can see the situa- things in South Africa are much worse at a great rate, everyone understood tion. Remember, he was not just head than ever. For example: key Zuma ap- the game.” of the party in KZN, he was premier pointments included the confirmation The ANC, said Johnson, is currently as well. So he really was the key man. of Ace Magashule – legendary for cor- dissolved into factions and into “re- Mkhize was also one of the key people ruption – as premier of the Free State. gional warlords” who control different behind Zuma’s accession to the presi- “It was pure Tammany politics: Ma- parts of the country. “It’s a bit like a dency and could have had any min- gashule was allowed to turn the Free medieval kingdom. You have a king istry he wanted when Zuma came to State into his own private kingdom, who has to sign off on who is going to power in 2009. become a premier. The premiership “But what did he want? He wanted is a licence to loot. Then the premier, to stay and be boss in KZN because in, say, Free State or Mpumalanga, that is the base. That’s what really makes damn sure he controls who be- matters. If you’re a Zulu, that’s the comes mayor – and being mayor is a key thing. He has that going for him, The ANC is currently licence to loot in the towns. That is ba- in a big way, but he also knows that, sically how it works and so on down. at the moment, there are tremendous “The medieval king would do this factional fights going on in KZN. Yet dissolved into with his barons and he would allow no matter which faction… they will all them to loot… but there would always say they support Zuma… because, for factions and into be a limit. The understanding is that KZN ANC politicians, whatever their they must not go too far. The king does faction, he is ‘our boy’… it means ‘us’ not want a peasant revolt. in power. regional warlords “The main thing is, if there’s a war, “It means Durban is the capital of you have to get troops to fight for me, the country. It means we get all sorts you owe me your loyalty and you must of pork barrel that others don’t, we get who control different make sure taxes get paid from there the Commonwealth Games, the new into my national treasury. That was airport... he who controls Durban will parts of the country the deal.” control much of the province and, in In his book, Johnson cites the fig- turn, the ANC, and the country. ures for what happened at the last “They understand all that. This is ANC conference in Mangaung. the basic reason why it’s difficult to “Then there were three in the pre- get rid of Zuma. [ANC Secretary-Gen- mier league, KZN, the Free State and

32 Zuma’s ring of steel (left to right): Limpopo Premier Cassel Mathale, Free State Premier Ace Magashule, Northern Cape Premier John Block and Limpopo Premier David Mabuza

Mpumalanga. When they got to voting is, will we be downgraded by one, two year.” for Zuma or (Kgalema) Motlanthe, the or three of the credit ratings agencies? Johnson believes South Africa is in Free State voted, for Zuma 324, Mot- One is bearable; three is very bad.” for a tough 2017. “In fact, we’re in for lanthe nil. KZN voted 858 to nil for Johnson does not think an IMF bail- a tough time until the next elections. Zuma and Mpumalanga voted 427 to out will follow easily. “If there was a Only then will we get a new president 17. Once those three provinces have downgrade, the logical thing to do in charge. voted, the game is over. That’s already would be to say, ‘crikey we’re in a hell “Nkosazana Zuma would be bad 40% of the whole conference rounded of a mess,’ and say to the IMF, ‘We news. She is dreadful – authoritarian up for Zuma. He only needed another don’t want Africa’s greatest non-racial and very ideological. She was a ter- ten from the remaining six provinces. democracy to go down the tubes, we rible Minister of Health and has not If you look at it, you find that in the need a big loan, please, and with that been good at anything, really. Also, she other six provinces, he did no better we will deal with all our problems.’ will be well over 70, which is a ridicu- than even-stevens with Motlanthe. “That would be rational, but the lous age to take on the presidency. I He lost a number of them but of course politics is that the ANC and the SACP don’t even think she is that keen. it didn’t matter. can’t bear the conditionalities that “I think we will be carrying the can “That is the basis of Zuma’s power – would come with it, and would resist for the downgrade, and of course there why, despite all the talk and prophesy- that for all they are worth. will be all sorts of politicking going on ing for six or nine months now, saying “So, what I fear is that there will be in advance of the ANC conference and that the ANC must surely now get rid a downgrade and that, instead of go- elections so a lot of important realities of Zuma, it ain’t happening. ing to the IMF, we will drag along the won’t be treated as realities.” “Also, if you look at the NEC, 85% bottom like a ship dragging an anchor What is it about Jacob Zuma that of the membership hold public sector and not get out of the mess. Because, enables him to sustain an attitude of jobs of one kind or another, which ulti- frankly, on their own, without that blatant denial about what is happen- mately are under Zuma’s control. They sort of external help, they will not get ing in South Africa? are either in Parliament or in provin- out of the mess – if anything, they will “I doubt very much that Jacob Zuma cial legislatures or the civil service in compound it. And all those patronage is in denial about what is happening one way or another… so all of those seekers… are as hungry as ever and a in South Africa. He is a shrewd and jobs are potentially within Zuma’s gift. lot of them have now lost positions in practical man, not given to Thabo’s It’s all about patronage. cities, so the patronage won’t stop and grand visions and flights of fancy. “Of course, the heart of the mat- those pressures are inimical to good “I think one should take deadly seri- ter is KZN… and what we have now governance.” ously Mamphela Ramphele’s observa- is the premier league people saying, Johnson believes that if and when tion that we are governed by thieves. ‘Oh please won’t you stay for another an IMF bailout with conditionalities I doubt if there is a single member of term’ and if he can’t or won’t then of takes place, “that will be almost the the cabinet or even the deputy min- course they’ll go for Nkosazana. That end of the ANC, as they will be bound isters, who are not thieves. Probably is why she is a possible. to split at that point”. only a few of the white Communists “But the recent local elections have “The Communist party can’t survive like Cronin and Davies are clean. Per- most definitely weakened Jacob Zu- that and nor can Cosatu. That would haps not even all of them. ma’s ability to control the succession.” be a rubicon… “One person well in the know sug- Asked for his predictions for the “That is why they will resist hav- gested to me last week that it really months ahead, Johnson said: “Firstly, ing it, as they know it is the Rubicon would be best if, on appointment to a I think the downgrade is very likely by they don’t want to cross.” But such a minister/deputy-minister job, one was the end of the year, but the details will scenario will take a while to develop. immediately given R100 million, since make a lot of difference. The question “I doubt whether it will happen in a everyone steals at least that much and

NOSEWEEK November 2016 33 then it would be out of the way and they could just get on with their jobs. This is the world Zuma inhabits and The making of a presides over and I am sure he is con- scious of every detail.” Who are the “up-and-comings” in the ANC? keen observer “We are generally told that the Young Turks of the ANC are Fikile Mbalula and Malusi Gigaba. Mbalula is simply a buffoon, a figure of fun. It RW JOHNSON, THE ELDEST BOY OF SIX and professor at the University of Na- is completely ludicrous that he had children, was born in 1943 into a tal, UCT, the Sorbonne and Stanford. the ambition of displacing Mantashe working class family on Merseyside He decided to return to South Af- as ANC Secretary General. It suggests “opposite Liverpool, overlooking the rica and became director of the Helen he has a very large and unrealistic ego, docks”. His father, Stanley, was an en- Suzman Foundation from 1995 until so one may be sure the buffoonery will gineer on tankers. His mother, Elsie, 2001. continue, contributing to the general left school at 14 but instilled in her Johnson was Southern Africa cor- gaiety. children a passion for books. When respondent for the Sunday Times in “Gigaba is the genius who ordered RW was 13, the family moved to Dur- London for years and wrote for the that there be no maintenance work ban when his father was asked to set London Review of Books and others. done at Eskom during the World Cup up a refuelling base. In 2009, Johnson’s left foot was in- season, thus creating a disastrous As a “fair-skinned, red-headed” jured while he was swimming and maintenance backlog. He then fol- teen, Johnson found it difficult to ad- became infected with necrotising fas- lowed that up by introducing the visa just to Durban’s beach culture. He ciitis. The leg had to be amputated regulations that did billions of rands of attended Northlands High School, “a above the knee. damage to the country’s tourist indus- blackboard jungle school, with drunk- Johnson is married to Professor Iri- try. It is all rather like the ANC having en teachers and no discipline” where, na Filatova, an author who has dual had a disinvestment campaign under “we had to teach ourselves as the Russian-South African citizenship apartheid – but in power, it is even bet- teachers were AWOL.” Nevertheless, and who was previously head of the ter at achieving disinvestment.” he grew to love Durban. African Studies Department at Mos- What are your predictions for the Johnson grew up with strong egali- cow State University and an Emeri- 2019 elections? tarian, “leftward” ideas and was fas- tus Professor of UKZN. “There are lots of silly predictions cinated by politics and “very chal- “Amazingly, Irina has never been being made about 2019. In 2016 the lenged” by apartheid, which was “full invited to any book festival in South DA managed to get exactly half the of moral issues”. Africa even though she is probably percentage vote that the ANC got. The After school he completed a BA at this country’s most distinguished Af- ANC will also do far better in a gener- the (then) University of Natal, where ricanist. She puts this down to having al election and with a new leader. The he was on the SRC, did “a bit of sport” such a politically incorrect husband.” imponderable is the economic fallout and worked on the student newspa- Johnson’s plans include, “a further from our probable credit downgrade per, The Dome. He was elected to the memoir, a book about the future of before then.” SRC on the liberal slate but took part Africa, and maybe a book about the Black and white South Africans in a number of leftist activities, like future of social democracy” which. he alike are deeply concerned about the trying to integrate social functions says is in a bad way everywhere. country, Johnson said. between race groups on campus. When not writing about politics, he “They are used to this being a coun- “At the University of Natal, they listens to music, particularly early try that works and can see that large kept a black medical school… and rock and roll. “But my chief enjoy- parts of it aren’t. there was a whole campus of black ment is going out to restaurants and “Things could get worse… but I’m an students known as the University of talking.” optimist, in the sense that we’ve come Natal Non-European Section. “From all those years in Oxford, I through so many bad things as a coun- “Myself and other students wanted got used to having extremely inter- try: just think of the Anglo Boer War, to integrate functions like rag and esting friends… Tories, Trotskyites the Depression, the Second World War graduation boards etc.” and Liberals. It doesn’t matter to me. and apartheid. These were all terrible Johnson, the first member of his They’re all interesting. In this coun- experiences, and we’ve come through family to go to university, got nine try, there’s this assumption that, if all of them and the country has grown firsts and an upper second, and was a people disagree with you, they’re your more prosperous throughout and 1964 Rhodes Scholar. enemy.” things have basically improved over He completed a M.Phil. MA at Ox- He also swims in the pool – which the century. I do think that, in the ford and was a fellow and tutor in Pol- he finds much more difficult with one end, one should be optimistic that the itics at Magdalen College, Oxford, for leg. “I can’t do the long walks I used longer term trajectory will resume. It’s 26 years, from 1969 to 1995. During to love, or run into the waves. Those what everybody wants.” n this period he was a visiting lecturer things are gone from me.” n

34 NOSEWEEK November 2016 CUT ALONG THE DOTTED LINE

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NOSEWEEK November 2016 35 Books LEN ASHTON

Self-discovery. Marianne on Marianne

OLL UP! ROLL UP! BUY YOUR TICKETS FOR every childhood joy is rooted in love for her the Marianne Thamm Rollercoaster mother. Father is never forgiven for being Ride! Uproarious highs, and plung- what history and circumstance made him. ing lows! The irony is that, despite their profound dif- This vivid autobiographical exer- HITLER, VERWOERD, ferences, daughter yearned for his approval. ciseR is a rare thing – an honest warts-and- MANDELA AND ME He clearly cared deeply for her, but was un- all record of a life energetically lived. Or (A MEMOIR OF SORTS) able to demonstrate his love in the desired living, rather, since the woman in question By Marianne Thamm manner. Their sustained warfare endured to is vigorously extant at the time of writing, (Tafelberg) the end of his life. And, seemingly, beyond. and unlikely to float heavenward soon with- It is a curiosity that there is no sympa- out fierce resistance. Or downward, for that thetic note of Georg Thamm’s years as a matter. Marianne, after picaresque begin- prisoner of war. The fact that his Berlin nings, has found good reason to carpe diem. childhood world had collapsed in the bomb It hasn’t been easy, but she has survived rubble, his mother had died. Yes, he had sundry complexities without losing an es- been a 14-year-old Hitler Jugend member, sential idealism. She is funny, combative, but not quite in the Himmler category. Mar- thin-skinned and given to dark imaginings, ianne , furious at defensive male stiff-upper- often leavened by the gift of superb comic lip conduct, sees her late father as an obsti- timing. nate relic of obsolete social modelling. It is The humour is surprising, with such an a relief to know that the old man loved his operatically unlikely background. Picture daughter’s two adopted girls. For Marianne, this: Daddy was a World War II Luftwaffe fighting a losing battle against emotional pilot, Mama was a unilingual Portuguese commitment, eventually succumbed to the cleaning lady and the displaced parents met love of a partner, and the riotous joys of chil- passionately in post-war London. This lin- dren. Black children, by the way, which fact guistic and cultural collision led to the cou- failed to ignite any possible latent racism in ple’s mutually tolerant relationship. It soon Georg. produced sensible engineering-type son Al- This book is a passionate record of self- bert, and not-so-sensible little Marianne. discovery. Surprisingly, for such an origi- Clearly, she was rebellious from the start. nal thinker, it includes the usual religious Albert left for Australia soon after gradua- mea culpa for having been born a privileged tion. To duck family strife? white, but that scarcely detracts from the Who would have thought that such par- joyful affirmation of a sparkling, subversive ents could produce a notable writer, journal- mind. n ist, stand-up comic and sharp-tongued social commentator? Raised in the less salubrious bits of Pretoria North, she was not schooled in the suavities of the English tongue. Read- ing for pleasure and instruction came com- paratively late in Marianne’s life, but she compensated richly for the delay. From the outset, she identified as a boy. Girly frills were rejected. Her adored and supportive mother did her best to impose conventional girlhood, but Mommy didn’t stand a chance. Her little darling was too busy fending off the local perv and compet- ing with the lads at the fishing hole. One might say Marianne is a feminist. Marianne Thamm But that would be an understatement. Her

36 NOSEWEEK November 2016 Last Word HAROLD STRACHAN

Oom Kitchener. A most disagreeable man

OM KITCHENER VAN TONDER rikaners and Ons Skryf soos ons was an uncommonly Praat and all that intellectual aca- disagreeable man. Not demic stuff. only did he seem to find Well Oom Bangbroek of course it necessary to contradict said Ag kak, man, Afrikaans was everythingO anybody ever said, the language of slaves who weren’t he would also take much pleas- properly educated and the nannies ure in enraging people for no ap- taught it to white kids. parent reason. He would smile Ja, said I, I’ve heard that in- with great satisfaction at seeing teresting theory about the early them grind their teeth and hate Cape, whereupon of course Oupa him. This curious character trait B said Well, that’s all kak too, was explained by a certain girl Afrikaans wasn’t African at all friend of mine, name of Hooty, be- to start with, it started in those cause she looked like an owl with Dutch colonies in the East. It was great big eyes plus great big thick the creole Dutch of the natives and lenses in her specs. Also she seemed not was going to do a Master’s thesis on the slaves brought it to the Cape ready- to blink very often, and as one spoke Oom K when she’d done her BA, which made. Here later on it was hijacked by to her one would expect her perhaps straightway Oom K sought to discour- a white elite and declared a European suddenly to swivel her head through age and provoke hatred towards himself lingo. So Hooty and I cock our heads and 180° as owls are able to do. But I fan- by telling her how he had been given the give it some thought and Oom B hates cied her like anything because of her sobriquet Bangbroek in WW2. us because we are not cross. wondrous sense of humour, which she At the Battle of Gazala in Libya he Well all that was long long ago, of needed, as ladies do who are not too had sought to avoid danger by bury- course, I was only twenty and now I’m good-looking. And other blokes were not ing himself in the sand behind a low ninety. But just last week I watched a always trying to shag her, as the say- brick wall like one of those dune vi- fine documentary movie about the erup- ing went in 1946, a nasty situation I’d pers in the Namib desert, leaving tion of Krakatao in 1863, and they’d got had with a beautiful blonde lover but only his nose sticking out. But she the clothing of the Dutch officials in Java recently. found out somewhere that the bat- dead accurate, also the houses and the Well, Hooty was doing Psycho at the tle had become known as the Gazala furniture, the food, the vehicles, every- university so she knew all about self- Gallop when Rommel routed the Al- thing. This is audio/visual history at its hatred and stuff, and she said Oom lies entirely and almost everybody very best and, blow me down, what were Kitchener had this sorry condition be- was taken prisoner except Bangbroek the old old Javanese natives speaking cause of the evil name his mother in van Tonder who was mentioned in dis- if not ur-Afrikaans, with all the double the Transvaal had bestowed upon him, patches for his heroism. This heroism negatives and “baie” and the Indonesian she who had been a hensopper in the filled Hooty with love to such a de- vocabulary: blatjang and piesang and Engelse Oorlog. When Oom K realised gree she wished to kiss him and Oupa biltong and sjambok. Et cetera. Hooty had summed him up so pre- Bangbroek became so enraged he re- I surf around. I see there’s a book by cisely he hated her like anything and fused to speak to her evermore for six Professor Gilliomee on the history of the called her in Afrikaans a libidinous months. Afrikaner people and language, 500pp, educated whore, which words I can’t re- All this background to our relation- heavy as a brick and erudite, man, eru- member otherwise I’d give them to you ship you need to know because, while dite, not the sort of thing you’d want to al fresco with certain grating conso- Hooty was doing Psycho I was doing drop on your foot, and perhaps he tells nants to offend her sensibilities. Hooty Dutch and part of my course was a bit us about all this. I think I’ll get a good quite liked this since because of her on the origins of Afrikaans, all about the night’s sleep and read it. being not too good-looking nobody ever language evolving in the mouths of the But what I really want now is for before had accused her of excessive settler community in the Cape far away some dear reader who knows about sexuality. from Holland and how it was taken to these things to do us a piece on the So we had this curious three-cornered the republics in the north by the Great eastern origins of our second most-used relationship. Hooty declared that she Trek, and Die Genootskap vir Regte Af- language. n

NOSEWEEK November 2016 37 Smalls ads must be booked and paid for online. Book at: SMALLS www.noseweek.co.za

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