GAUTENG SHAKA INTERNATIONAL ACCOUNTING GAMES Jozi DA rewards An airport desperately Still ducking and ANC crony seeking passengers dodging over JCI

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Making mischief Page 26 4 Letters 5 Editorial FEATURES 30 Smalls 6 Notes & Updates AVAILABLE Teflon Two stick it to SARS n EnviroServ owns up (finally) n Physician, heal thyself ON YOUR COLUMNS TABLET 26 Books 8 No accounting for JCI Allan Gray and Investec still ducking and dodging

27 Down and Out 10 FNB safety deposit box heists Download your More questions than answers 28 Letter from digital edition today Umjindi 12 Dines Gihwala to pay up big time Past finally catches up with disgraced both single issues and 29 Last Word rogue attorney subscriptions available 15 Valuable friends Jozi DA embraces ANC crony with R100m tender PLUS never miss a copy – with back issues available to 18 A cut and paste job download and store How Ekurhuleni planning chiefs covered their tracks after permitting illegal school opening DOWNLOAD YOUR DIGITAL 21 Durban’s tender Mafia EDITION AT City’s construction industry under siege from www.noseweek.co.za groups of armed raiders or % 021 686 0570 24 King Shaka International An airport desperately seeking passengers

NOSEWEEK May 2017 3 Letters

Mayor’s forgotten his promises Fake agave’s bitter aftertaste supply Xylitol powder. This was worth R18 million per annum in turnover. DID YOU READ NOSE210, SOLLY Since Noseweek’s story “Sweet Talk” in “I expect that due to your actions we Msimanga? What a damning indict- March (nose209) about the production will probably lose many clients; sadly ment of your tough-talking and most just buy plain sugar from us.” promises as the new DA Mayor of of dodgy Agave produced in St Francis In conclusion, he declared: “If you Tshwane. What a shame! Bay by Brian Neary, we have received had taken time to visit our factory Lucy Pearl Klein several emails from him and from his via Twitter ex-wife Hanlie Rothmann. before jumping to conclusions, I am sure this unpleasantness would not Shaming the law profession “YOU HAVE BEEN FED FALSE INFORMATION have occurred.” by a disgruntled former employee Brian Neary THE ARTICLE “COURTING DISASTER” who was fired for theft of petty cash (nose210), on some of the main funds and a company iPhone, and Neary appears to have forgotten “players” in the Pietermaritzburg law is being charged by the SAPS, and that, far from inviting him to view profession, led me to wonder what the by my ex-wife Hanlie who is bitter the factory, when approached for many honourable lawyers such as the and resentful and cannot stomach comment, he told Noseweek’s reporter late Leslie Weinberg who practised the idea that I have moved on in my to “do what you want to do. I am not there, would think of the current life…” Neary wrote to Noseweek.“In going to talk to you. Go fuck yourself. scene. Have these people no shame? the last two years Hanlie has received Alright?” and then hung up. Lew Rood R34,000 per month in a divorce settle- The salient points in Noseweek’s Rondebosch ment. Now that this has come to an article were the fraudulent organic end, she has demanded I continue Agave certificates flagged by the US Can we trust our ‘guardians’? paying, failing which she threatened Department of Agriculture, naming AS AN AVID READER OF Noseweek, I to disrupt and discredit my business Neary; the suspension of the current wonder whether your sleuths have activities – which she has done. organic certificate; and comments uncovered anything on the robbery “We deal in various products made by staff, farmers and the SAPS. at the State Security headquarters in including Xylitol, Agave, Table Sugar, Rothmann was not interviewed Pretoria a while back. Amazing, given Erythritol, Cocoa powder and Fructose for our story, however Noseweek did the vast amount of dollars involved, and purchase some stock from Tongaat report on a letter she’d sent to Neary’s that the matter has gone quiet – or is and other suppliers. But for Noseweek customers. She now confirms there was it possibly a matter of the “guardians to state our products are not pure is a divorce agreement but contends it of law and order” at the top enjoying devoid of all truth. In your wisdom you had been broken by Neary “time and the rewards of their labour? have taken the words of a thief and a time again”. She says all she wants is Alex Hegland fraudster and so damaged my compa- her money and, feeling short-changed, Johannesburg ny’s image. I am giving you the oppor- she decided to expose Neary’s crooked Fair question. – Ed. tunity to withdraw your article and enterprise with her public letter. place on record that these assumptions Noseweek has noted Rothmann only What news of Protector’s report? you have come to are not necessarily decided to expose the allegedly fraudu- WHAT IS HAPPENING WITH THE PUBLIC truthful, failing which we will with all lent Agave business after she stopped Protector’s State Capture Report? due force take Noseweek to Court and receiving a share of the proceeds. Linda Algie sue for many Millions. When thieves fall out, the truth will via Twitter “Your article has cost us a National out, is one way of looking at it. Hell Another fair question. – Ed. client who cancelled our contract to hath no fury… is another. – Ed. Stent

4 C

Editor Editorial Martin Welz [email protected] Assistant Editor Jonathan Erasmus The cost of news Special Correspondent Jack Lundin Designer HORTLY BEFORE WRITING THIS, I START I read on: “We have several subscription Tony Pinchuck my day, as usual, by attending to options to help you enjoy the best of our Consultant the day’s emails. I immediately content every day, including exclusive Len Ashton delete 72, most of them unsolicited Financial Times articles, Morningstar marketing. The remaining 21 I financial data and full digital access to Sub-editor keep for further consideration. By the The Wall Street Journal.” Fiona Harrison S end of the morning I will probably only Hunger drives me on. I click on Contributors have kept 10. “subscribe” and discover that to get the Len Ashton, Sue Barkly, Niki Moore, At best, that’s only 24% news with a whole online “economy” package – a Ciaran Ryan, Harold Strachan, 76% ad-load. That’s a heavy load! Still selection from all their publications, Anne Susskind worse: in the age of newspapers, the ads excluding The Wall Street Journal – will Cartoonists were funding the news gathering. Now cost me R120 a month. Adding The Wall Dr Jack, Stacey Stent none of it contributes to the cost of news. Street Journal ups the cost to R349 a Accounts It’s not even such a great deal for the month. R4,200 a year; what most South Nicci van Doesburgh advertiser: most ad emails and Tweets Africans earn in a month. [email protected] are discarded without being opened. Then the really interesting discovery: Subscriptions The loss of advertising revenue has had if you happen to prefer your serious news Maud Petersen dire consequences for news gatherers and in print, on paper, the cost of getting the [email protected] consumers alike. That is quickly demon- whole local-only package delivered to strated when I move on to an email that your post box is R750 a month – more Advertising interests me: from BusinessLive, the than six times the cost of the online 021 686 0570 online version of Business Day. Top of its digital package! R25,000-odd a year – [email protected] list of news offerings is headlined: more than half a year’s wages for most Gareth Van Onselen: Jacob Zuma’s 10 South Africans. All material in this issue is copyright, and belongs to Chaucer Publications (Pty) Ltd, unless otherwise most reckless comments as president. Some 95% of ANC voters will not be indicated. No part of the material may be quoted, Below that is the teaser line: “Zuma uses getting the news produced by the Times photocopied, reproduced or be stored by any racial scapegoats, appeals for a patriotic Media’s business publications and The electronic system without prior written permission. press, paternalistic tribalism and Biblical Wall Street Journal. Conclusion: in Disclaimer: While every reasonable effort is taken to ensure the accuracy and soundness of the contents of threats to mask his failure and ANC’s our democracy, these publications are this publication, neither the authors nor the publisher giant patronage machine.” irrelevant. will bear any responsibility for the consequences of Interesting. I want to read more, but The next bin also shows promise. any actions based on information contained. Printed all I get is a pop-up screen announcing: Moneyweb Today’s email comes with the and Published by Chaucer Publications (Pty) Ltd. “This article is reserved for our subject line: “Tax revolt: The frustration subscribers.” is growing”, followed by a still-more- Never mind, I’ve gathered enough depressing teaser: “But SARS has the of value from those few lines not to upper hand.” It’s all about boycotting the want to actually pay for more. In fact taxman as a means of boycotting Zuma I’ve retrieved a whole news bulletin for and the Treasury’s favourite benefi- nothing! Even if this exercise immedi- ciaries, the Guptas. SUBSCRIPTION RATES ately reminds me of the derelict street But my interest in a tax revolt was triggered by something else. On the same Print person who trawls our neighbourhood’s rubbish bins each Thursday for edible day, also by email, I receive a surprise SA only R410 scraps. Or throwaway bits to sell for Payroll Taxes Notice of Assessment from SARS investigations division Neighbouring states (airmail) R600 recycling, as I am doing here. Europe, Americas and Australasia R740 in Alberton. The payment “period” to There’s more in this “bin”: Hilary Joffe’s Internet edition which this “internal revised” assess- 1 year R298 piece headlined “Great show, but magic ment refers is April 2006 – eleven will eventually fail” and the teaser: “The years ago. The “assessment summary” Combined dividends were a welcome windfall, but Print+Internet (SA only) R510 says that Noseweek should have paid it was a windfall that should have raised over R18,345.21 in PAYE but only paid To subscribe red flags immediately”. That’s a bit like R6,087-odd. We are given 21 days to pay By post: Send cheque with name, finding a wrapper with a delicious smell, the difference. The problem: we have kept address and phone no. to: noseweek, but absolutely nothing in it to eat. How no documentation that long. Who has? PO Box 44538, Claremont 7735. infuriating! Particularly since it, too, is Is SARS so desperate that it’s throwing Via Internet (pay by credit card): blocked from further reading; “reserved” the requirement of “fair and reasonable www.noseweek.co.za for subscribers. administrative action” to the wind? Email [email protected] Sufficiently tantalised while being The frustration is growing. Further information deprived of any satisfaction whatsoever, The Editor Call (021) 686 0570; fax 021 686 0573 or email [email protected] NOSEWEEK May 2017 5 Notes & Updates Notes & Updates Tefon Two EnviroServ owns up (fnally) stick it FTER NEARLY A YEAR OF DENYING to have been in April. that it was the source of the In April, the non-profit Upper High- to SARS “toxic” fumes that are making way Air – founded to protect the rights many local residents ill, Envi- of residents – approached the High roServ Waste Management’s Court in Durban to interdict Enviro- hazardousA landfill west of Durban has Serv “to comply with its licence con- URBAN’S TEFLON TWO, S’BU been ordered to suspend “acceptance, ditions and statutory obligations… to and Shauwn Mpisane, who treatment and disposal” of waste. The account for the advantages it has re- owe the taxman more than waste destined for the Shongweni site ceived by virtue of the contraventions” R203 million, are once again will now be sent to other facilities. and to have “an order declared that set to oppose SARS’s attach- In a letter to clients, EnviroServ the company or its senior executives mentD of their homes, farms, luxury ve- said it has “another landfill that we are not ‘fit and proper’ to be granted a hicles, businesses and trust fund. will use in Durban and Holfontein licence application, renewal or review The couple’s assets were attached [near Benoni]”. of existing licences”. in November last year. The case was The suspension is the result of a EnviroServ has consistently denied meant to be heard in March but has directive issued on 4 April by the any health implications associated now been postponed sine die (indefi- Department of Environmental Af- with the stench. nitely). fairs (DEA). The decision has been a Thompson said the company is like- SARS attached their goods on the year coming after Noseweek broke the ly to appeal the DEA directive, claim- basis that the Mpisanes were “dissi- story exactly 12 months ago (nos- ing that the department is cherry- pating” their assets and had “frustrat- es199; 200;203;204;205&210). picking the data in order to come to a ed SARS” in its ability to collect taxes Local residents have complained of pre-determined conclusion. effectively. This included offloading suffering nosebleeds, nausea, vomit- “We shared information with the assets into a newly formed trust and ing, sinusitis, bronchitis, asthma and DEA relating to fresh data obtained setting up front companies to transfer other health-related conditions, and from three real-time air quality moni- remain convinced these ailments are tors recently installed in communities caused by the “toxic fumes” from the surrounding the Shongweni Landfill. landfill. “These monitors revealed the pres- In April Noseweek reported that ence of high levels of sulphur dioxide children at a facility near the site had (a harmful gas with a pungent odour), complained of headaches, migraines a gas typically produced by combus- and nausea. Noseweek has seen affi- tion processes, and which does not davits compiled by doctors in the area emanate from landfill sites. This, to in which they say they believe the ill- our knowledge, has yet to be followed nesses experienced in the affected ar- up by the authorities,” said Thomp- S’bu and Shauwn Mpisane eas are because of the fumes. son. In a statement outlining the rea- However the company’s reasons for assets out of indebted companies. sons for the directive, DEA spokes- not being responsible have shifted The tax authority also felt it had man Albie Modise said that there was over the past year. Initially they de- been conned by the couple who, when still an “unacceptably high level of nied any responsibility, they then ad- unable to get a tax-clearance cer- landfill gases being emitted” from the mitted to “contributing” to an odour tificate for their flagship company Shongweni landfill site. but blamed nearby agricultural indus- Zikhulise Cleaning Maintenance & “The decision to suspend the Waste tries, sewage works and fuel pipelines Trading (ZCMT), created a new en- Management Licence (WML) is there- as also being possible contributors. tity under a similar-sounding name, fore one of the significant steps to Once these were ruled out, Enviro- Zikhulise Group, which had a clean a permanent solution to this cata- Serv shifted yet again and the compa- tax bill of health. This was in order strophic situation,” said Modise. He ny blamed the regulations they were to qualify for more – often dubious – added that it was the department’s required to follow. multi-million-rand government con- view there was a potential threat to To counter what has now turned struction contracts while using their human health and/or the environ- into an onslaught of bad press, the existing infrastructure. ment. company has launched a website ded- “The legality of this conduct is ques- EnviroServ and its CEO, Dean icated to the landfill site and has en- tionable,” SARS contended in found- Thompson, are facing criminal charg- listed the help of brand management ing papers. n es. The first appearance in court was firm Corporate Image. n

6 Notes & Updates Notes & Updates Physician, heal thyself

AST MONTH, THE PRESIDENT OF THE He had led Sama since 2001 and Health Professions Council of was well-known for his strong position South Africa, Dr Kgosi Letlape, against medical schemes, announcing described medical aid schemes in 2008 at a Sama conference that as “a crime against humanity” he had given up his medical scheme andL suggested they should be abol- membership and urging others to do ished as they cannot co-exist with the same. the government’s proposed National His declared bias caused members Health Insurance (NHI) scheme. of Sama to be concerned about his Letlape was speaking to academics ability to represent all doctors fairly. and medical professionals during a His performance at the Health Pro- public discussion at the University of fessions Council of SA has been as KwaZulu-Natal on whether the NHI controversial, if for different reasons. white paper meets the human rights In November 2015, Health Minis- objectives of the Constitution. ter Aaron Motsoaledi made public a He said private medical aids and scathing report which found the coun- the Medical Schemes Act would have cil was “in a state of multi-system or- to be abolished if the NHI is to pro- ganisational dysfunction” and that its vide universal health care access for management was “unfit”. all citizens. Dr Kgosi Letlape The report came out of a high-level “With half of South Africa’s health investigation headed by UCT’s Dean professionals catering exclusively to of the Faculty of Health Sciences, Pro- only 17% of the population on medi- Democratic Alliance Health spokes- fessor Bongani Mayosi. It revealed evi- cal aid schemes, the entire setup is a man Dr Wilmot James said in re- dence of administrative irregularities, crime against humanity and should sponse: “No mature, sensible leader mismanagement and poor governance be abolished,” he declared. would ever dare utter such populist, at the council. He went on to note that the privi- reckless nonsense that medical aid, Motsoaledi promised major changes leged few who have access to medical which takes care of the health of 20% to the body, but last year doctors com- aid – including those in government of our population, amounts to geno- plained that these had not been imple- who are subscribed to it – refuse to cide… it is particularly rich coming mented. engage, saying “hands off my medical from the head of the HPCSA, an in- The council has been plagued with aid”. stitution that UCT’s Head of Health complaints since it was set up in 1997 But, he argued, universal health- Sciences, Dr Bongani Mayosi, found – and Letlape does not seem to have care in South Africa is possible. to be so shockingly dysfunctional that made much difference. “The health plan under apartheid he recommended it be rebuilt from the l In early February this year a was one of the best in the world. South ground up. 26-year-old man, Tebogo Letlape, was African whites had health for all. By “What we should be doing is expand- booked into the Melomed Gatesville 1967 they had a system that could ing medical aid and health insurance Private Hospital in Athlone, Cape give somebody a heart transplant for to cover more and more people. As we Town for an orthopaedic procedure. no payment. At the point of service, outline in the DA’s ‘Our Health Plan,’ On his admission form, his home ad- there were no deductibles, the doctor we should reform both the private and dress is given as 97 Jan Smuts Avenue, was on a salary, and everyone could the public sectors to provide the same Saxonwold, Johannesburg – which access health care,” he was quoted basic package of health services, mak- happens also to be Dr Kgosi Letlape’s saying. ing the former more competitive and home address. Could it be that, like However, with the introduction of cheaper and the latter more accessible most parents, when it comes to his the Medical Schemes Act, most medi- and significantly better.” own family, the revolutionary anti- cal professionals moved over to the In early 2009, Letlape resigned private-health-care activist wants private sector, which only caters to abruptly as head of the SA Medical only the best available… and believes an “elite” 17% of the population. This Association, (Sama) the country’s pro- that medical treatment is to be found meant most of the South African pop- fessional body for medical practition- at a private hospital – not even at ulation have been left without quality ers. His opposition to private medical one of Cape Town’s more famous and health care and are unable to realise insurance was one of the factors be- celebrated public hospitals such as their constitutional rights. This was a hind the vote of no-confidence that led Groote Schuur or Tygerberg? – Sue crime against humanity, Letlape said. to his resignation. Barkly n

NOSEWEEK May 2017 7 JCI: still ducking and dodging

What game are Investec and Allan Gray playing with JCI’s annual accounts – and why?

Y MEANS OF A STRATEGIC PLAN While it is intended the general read- past and present transactions and set- spearheaded by Investec er should enjoy being taken for this tlements in the JCI Group, JCI has CEO Stephen Koseff himself, two-page ride, JCI’s minority share- sought legal advice on numerous tax Investec, with the help of holders are anything but amused. issues. The amount owing to or due by fund managers Allan Gray, JCI 2013 Annual Financial JCI to/by SARS will be finally calcu- contrivedB in August 2005 to wrench Statements (Undated): JCI Lim- lated after taking such advice into ac- control from Brett Kebble of JCI Ltd ited has a 49% investment in [histori- count. The amount shown as income – the hub of Kebble’s criminal corpo- cal Cape wine farm] Boschendal and tax payable… could be significantly rate empire. it is therefore necessary to consolidate lower. Not long thereafter, Kebble was the Boschendal (Pty) Ltd accounts into [Editor’s note: In JCI Ltd’s (unau- shot and killed by hired gunmen who JCI Ltd. Boschendal annual financial dited) Group Annual Financial State- claimed it was an assisted suicide. statements will only be completed late ments for the year ended 31 March Some friends mourned his death, in the third quarter of this year. Con- 2012, completed on 6 December many more breathed a sigh of relief, sequently the Company anticipates the 2012, “Current tax payable” is put at assured that he would never be called audited consolidated annual financial R52,065,000.] to testify in a court of law. statements for the year ended 31 March 22 June 2014: The 2013 Annual Fi- Like all public companies, JCI is re- 2013 will only be finalised and signed nancial Statements are in final prepa- quired in terms of the Companies Act off early in the fourth quarter of 2013. ration, the delay has been caused pri- to publish its audited annual accounts (Not Done 1.) marily by further extensive work that for approval by its shareholders within 03 October 2013: Further to our has gone into the tax situation for the six months of the end of each financial previous notice, the 2013 accounts last 10 years. …the Company will still year. Banks and auditors are supposed should be published late in the fourth need to negotiate with SARS to achieve to be ultra compliant when it comes to quarter. The delay is due to Boschen- a settlement. The audited Annual Fi- company law and financial accounting. dal’s audit which has taken slightly nancial Statements will be posted on But Investec Bank and its favoured longer than anticipated. (Not Done 2.) the website shortly. (Not Done 4.) auditors, KPMG, have managed not 17 December 2013: The accounting (Note: In “JCI Limited Audited to produce audited annual accounts function of JCI has been outsourced to Group Annual Financial Statements for JCI for the past six years. Seeing BDO Business Services and the secre- for the year ended 31 March 2013”, is believing. tarial function to Statucor. This has issued on 8 July 2014 [the statements resulted in the staff complement at JCI were not in fact auditied – and did not First, the How: being reduced to three. The consolidat- contain an audit report], “Current tax ed JCI annual financial statements are payable” is put at R25,000,000.) Presented here, in chronological or- virtually finalised. (Not So 3.) The company has submitted the tax der, are extracts from statements that The directors are endeavouring to returns of all group companies up to have appeared on JCI’s website and in negotiate a tax settlement with South date and will be meeting with SARS correspondence with shareholders and African Revenue Services [SARS]. Fi- to finalise the amounts due to or from the Independent Regulatory Board for nality of the tax amount is the reason SARS. A provision has been raised Auditors (IRBA) with regard to the for the accounts not being finalised… based on what is believed by the direc- endlessly “imminent” publication of its Shareholders are further advised that tors to be the best estimate of the tax annual accounts. The 2011 to 2016 an- JCI has changed its year end from 31 liability, taking account of opinions re- nual financial statements are now be- March to 30 June. ceived from independent tax advisors. tween 4 and 67 months overdue. Due to the complexity of the various 9 December 2014: The financial

8 statements will be finalised and pub- the complexities of the tax matters the with JCI’s external auditors, KPMG. lished as soon as the tax issues are re- auditors, KPMG, felt it necessary to The JCI team together with BDO are fi- solved. (Not Done 5.) lodge a Reportable Irregularity with nalising the accounts and these should 17 August 2015: Discussions are the Independent Regulatory Board for be available shortly. Once these are re- continuing with SARS and as soon as Auditors (IRBA) and have requested a ceived they will need to be reviewed by the tax matters are resolved the Compa- 30-day response which the Company both the directors and KPMG. ny will be in a position to complete the will be providing. Further information All parties remain committed to pub- outstanding Annual Financial State- will be provided once this response has lishing the outstanding Annual Finan- ments. (Not Done 6.) been furnished. cial Statements as soon as possible. 11 April 2016: The Board is happy to (A meaningless response was pro- Further updates will be provided. announce that the long outstanding tax vided on 27 October 2016 – thus effec- Noseweek’s consultant observes: issues have been resolved and the Com- tively Not Done 10.) JCI is suggesting that it took some pany is now in a position to finalise the 27 October 2016: (Extract from eight months to agree the entries re- outstanding financial statements. JCI’s letter to KPMG dated 18 Octo- cording the tax settlement reached in To avoid unnecessary expense it is in- ber 2016) …the [JCI] Board, without April 2016 (see above) – presumably tended to publish the Financial State- commitment but in good faith, will the book entries required are: debit ments for the year ending June 2016 to- provide to your firm the Annual Fi- Provision for Tax R17 million, credit gether with the outstanding statements nancial Statement in question and Tax Over-provided R17m. for previous years in the third quarter any reasonably required and/or re- JCI also suggest that the adjust- of 2016. (Not Done 7.) quested audit evidence as soon as pos- ments relating to the tax settlement 9 May 2016: Further discussions sible. (No confirmation published by were the predominant reason for de- have been held with the Auditors, 28 November 2016 – thus effectively laying the finalisation of the annual KPMG, who are comfortable that all Not Done 11.) financial statements. The more likely the audits for the periods 2013 to 2016 31 October 2016 and 17 Novem- reasons: the claims from Gold Fields will be completed by the second week of ber 2016: Shareholder DC Palmer Operations Ltd (previously Randgold) August 2016, whereafter an AGM will writes requesting publication of (1) and challenges to the validity of the in- be called. (Not Done 8.) KPMG’s reply to JCI’s letter to them demnity JCI Ltd received from Rand- The claims against the previous au- of 18 October 2016 and (2) details of gold & Exploration Company Ltd (at ditors are progressing satisfactorily. KPMG requirements relating to JCI’s Investec’s direction). Shareholders will be kept advised. The outstanding annual financial state- The accounts only went to KPMG for Randgold/Goldfields matter is pro- ments that JCI is unable or unwilling review more than two months later – ceeding and the legal process is running to comply with. No response received. thus effectively Not Done 13.) its course. Further updates shortly. Email from JCI to shareholder 1 March 2017: Further to the com- 12 August 2016: Attorneys Nor- David Smyth (22 November 2016): munication to shareholders published ton Rose (for KPMG) write to IRBA: ...there will be a meeting with the audi- on 5 December 2016, JCI is pleased to …JCI has been left with a small fi- tors today and a full response will be advise that the Group Annual Finan- nance team responsible for the prepa- provided thereafter. (Not Done 12.) cial Statements for the periods 2013 to ration of financial information and for 5 December 2016: The audit 2016 have been provided to the external regulatory compliance. This, together adjustments required as a result of the auditors, KPMG, who are in the process with the length of time it took to final- tax settlement have now been agreed of carrying out their audits. ise the complex tax dispute, has delayed It is anticipated that the audits will the preparation of the latest financial be completed during March and that statements. Our client (i.e. KPMG Inc) the Annual General Meeting will be has been advised by JCI that they are held in April 2017. (Not Done 14.) likely to be completed by the end of 24 March 2017: Further to the com- August 2016. Our client is reasonably Promises, munication published on 1 March confident that this deadline will be met. 2017, JCI is pleased to advise that, in (Not Done 9.) consultation with the Company’s au- 4 October 2016: In the communica- ditors, the audits for the years 2013 to tion to shareholders dated 9 May 2016 promises... How 2016 are well advanced and the Annu- it was anticipated that the audits of the al General Meeting is expected to take Company for the outstanding periods place in June 2017. would be completed towards the end of Notice of Annual General Meeting August 2016. can we possibly and the signed-off Group Annual Fi- The tax settlement, concluded and nancial Statements will be published signed in July 2016 [but note: it was al- as required and will be available on the ready stated in April 2016 that the tax Company’s website in due course. dispute had been resolved], has created believe them? How can we possibly believe them? certain accounting challenges that need to be addressed. l Why all this? See nose212! Following the delays in addressing (Lest Barry Sergeant be forgotten) n

NOSEWEEK May 2017 9 FNB heists: more questions than answers

ICTIMS OF THE RECENT SAFETY through an internal wall rents premises. He was locked in his deposit box heists from First • The gang had 12-15 hours in the guardhouse and says he saw nothing. National Bank (FNB) branch- bank to gain entry, remove the 339 FNB itself employed no security guard es in Randburg and Parktown boxes and load them up. at that branch. The CCTV footage was remain dissatisfied with the • The boxes were loaded into a van removed from the bank’s own CCTV bank’sV response – or the absence of a and removed from the premises. cameras, presumably by a bank em- response to their demands for infor- • There was only one, untrained ployee collaborating with the thieves. mation and proper compensation. “night” guard in a guardhouse with • At the Parktown branch, the near- They have sought Noseweek’s sup- broken CCTV cameras provided by est security guard was stationed at port in informing a wider public about the owner of the building complex in the Engen garage next door. Investiga- their shocking discoveries and their which the Randburg branch of FNB tors found that he assisted the thieves questions that remain unanswered. to gain access to the bank through a • The victims were only contacted back gate and through a fire escape about the robbery three to four days CCTV footage shows door. CCTV footage shows that the (on 21 December) after the incident on safe door was deliberately left open 18 December 2016. by bank staff members before closing • Two victims only found out be- that the safe door was time, allowing the thieves easy access. cause they attempted to deposit more Images from the footage have led in- valuables. vestigators to believe that they are the • Many of the victims had been left open by bank staff same men who previously carried out unaware their boxes were moved from cash-in-transit heists. the Fourways branch to the Randburg • The name of the private security branch where they were stolen. members before closing company is being withheld. Normal • They discovered by “informal procedure would involve that they reg- means” that 339 boxes were taken ularly check in with the guard on the from the bank. time to allow the premises – which was clearly not done. • The thieves gained entry to • An alarm went off, but the private the Randburg bank by grinding (or thieves easy access security company that responded and by jackhammer, according to FNB somehow found nothing suspicious CEO Lee-Anne van Zyl) their way despite there being a guard locked in

10 The private security company that responded found nothing suspicious despite there being a guard locked in the guard house next door

alarm was going off besides the pri- vate security company? • Why was there no bank security IF YOU RENT PROPERTY guard on duty? • Why did the private security com- KEEP THIS NUMBER pany not check in with the guard? • Why did the gang have 12-15 I CAN HELP YOU WITH hours to pull off the heist? PROBLEM TENANTS • Why, after the previous robbery, the guardhouse next door. was there no attempt to make the I CAN ASSIST YOU WITH THE • There was an ATM heist at this branch more secure? RENTAL HOUSING TRIBUNAL same branch just four months previ- • When do the Hawks/police plan to ously, which should have led to im- release more information on the pro- IF YOU DON’T NEED ME NOW, proved security measures. gress of this investigation? • The 339 victims have had minimal • Anyone affected by this heist is YOU WILL LATER communication from FNB besides be- invited to get in contact with, and ing asked to go to the police station join, the group. For more information JOHN: 082 901 0824 and submit an affidavit. call Kelly Fraser on 083 287 8897 or • One victim asked Bank Manager email [email protected]. Barry Gordon if it was an internal or external wall that was breached and l Shortly before going to press, his response was: “It was an internal Noseweek learnt that FNB had made wall that was breached, but not many some token gestures in the vain hope people know the layout of the bank.” of pacifying its unhappy clients. The • Two elderly victims (over 70) have bank has offered to cover the cost of lost a lifetime’s savings and items of replacing documents such as title great sentimental value. deeds and passports. Without making • FNB refuses to comment on the any firm commitment, it has invited security measures in place at the clients to submit lists of items lost branch “for security reasons”. and their value. • FNB refuses to comment on the FNB has said it then planned to number of boxes. interview each claimant individu- • FNB refuses to communicate what ally, preparatory to making a settle- and if compensation will be given to ment offer at the end of April. The victims. bank has also offered to pay any excess payments (of up to R500) The questions the victims want an- required by insurers when clients swered by FNB: have submitted claims to their own • Who else was alerted that the insurers. n

NOSEWEEK May 2017 11 Once celebrated, since disgraced Dines Gihwala to pay up big time

EAR READER, THIS STORY BEGINS By Martin Welz for six years – from the Western Cape way back in 1998, but listen High Court all the way to the Constitu- patiently and keep in mind: for the lot of the poor and oppressed. tional Court and back again. the sting is in the tail. It was They travelled to London (where The action arose from a business ar- in that year that Cape Flats they stayed at the five-star Dorches- rangement reached between the two attorneyD Dines Gihwala was made an ter Hotel, and called on the luminar- men in 2003, in terms of which Mavji acting Judge of the Western Cape High ies of the Regent’s Park Mosque for had entrusted Gihwala with several Court on the recommendation of then- introductions to rich Arabs), then flew millions of rands for investment in Minister of Justice Dullah Omar. This to New York by Concorde. There they South Africa. was, Noseweek reported at the time, saw various well-connected people to Mavji explained that he had been led after Gihwala, a one-time political op- whom they promised 25% commission to trust Gihwala because, at the time ponent of his, had made a donation of on any money they could raise for this and for several years afterwards, Gih- R50,000 to ANC funds, and persuaded cause. How much money they raised wala was widely perceived to be a high- the Hindu Association of Rylands Es- and what causes benefited, no-one was ly respected attorney and businessman tate to throw a festive bash in honour ever told. and chairman of Hofmeyr Herbstein & of the new minister – in an election It was ten years later that the first Gihwala (another predecessor of Cliffe year. serious move was made to strike Dekker Hofmeyr), a major law firm. May 1999: Noseweek revealed the Gihwala from his deviously created Clearly Mavji had not been a sub- improper involvement of Dines Gih- pedestal: in January 2010 summons scriber to Noseweek, which reported in wala, then BEE chairman of mega- was issued against Gihwala by Karim January 2011 that Johannesburg at- Afrikaner law firm Hofmeyr Van der Mavji, a UK-based businessman with torney Ian Small-Smith had also laid Merwe (later Cliffe Dekker Hofmeyr) the vast financial resources along with criminal charges against Gihwala, and in the cases of hundreds of Macas- the determination and patience need- that Cliffe Dekker Hofmeyr (at about sar residents with claims against the ed to drive a case that would drag on the same time) quietly removed him chemical giant AECI, resulting from a as chairman of their firm. Noseweek sulphur fire that broke out at the com- could with fair justification declare: pany’s premises. “These developments should come as Hofmeyrs were AECI’s attorneys, Noseweek readers no surprise to Noseweek readers: they defending the company against all the have long known Dines Gihwala to be claims brought by the Macassar resi- unscrupulous and a disreputable op- dents when Gihwala secretly managed have long known portunist.” to gain access to – and control of – the In the midst of all this, in 2011 Lib- claimants’ attorney’s files – more than erty Medical Scheme, too, discovered 600 of them – creating an obviously se- Dines Gihwala to that Dines Gihwala was a thief and a rious conflict of interest. scoundrel who was happy to defraud In August 2000 Noseweek reported be unscrupulous anyone fool enough to trust him, and how, back in 1988, Cape Town attor- issued summons against him in the neys Faizal Noor and Dines Gihwala North Gauteng High Court in Preto- had decided it would be a good idea to and a disreputable ria. That case arose from Gihwala’s go abroad to raise money for the poor appointment in 2001 as curator of the and oppressed of South Africa. Medicover 2000 Medical Aid Scheme This represented a remarkable and opportunist which later, in 2010, merged with the praiseworthy conversion, as neither Liberty Medical Scheme. man had previously shown any concern In the summons Gihwala was

12 charged with having au- l misappropriated funds thorised, as curator, a loan of their joint venture for his of R5 million by Medicover own benefit; to a company controlled by l made a secret profit for Cape Town businessman himself; Farrell Mark Bernberg to l was recklessly in breach fund a property develop- of his fiduciary obligations; ment. Various other com- l was guilty of grossly panies under Bernberg’s negligent conduct in mak- control were to provide ing payments to himself of security for the loan. All R2.75m as “director’s remu- the relevant documents neration”, R1.1m as “surety were drawn up by one of fees” and R225,000 as “pro- Gihwala’s junior partners motion fees” when he was at his law firm Hofmeyr entitled to none of these pay- Gihwala – a serious con- ments; and flict of interest. l failed to disclose that Bernberg subsequently the shareholders of a compa- repaid only R180,000 of ny in which he had invested the R5m owed before he his partner’s funds were re- was declared bankrupt. lated to him. All the security offered The court felt that in the to Medicover proved to circumstances it had no op- be dud. The contracts tion but to declare Gihwala drawn by Gihwala’s law a delinquent director, no firm were all found to be longer fit to be a director of flawed and unenforceable. any company, or be entrust- Not only was the loan ed with the fiduciary respon- not deemed to be prudent sibility of managing any cor- use of medical aid funds; porate entity. Gihwala had not revealed In his judgment, Judge that he was Bernberg’s P B Fourie remarked: “It is business associate. They necessary to eliminate rogue were, inter alia, both di- directors from operating in rectors of one of the com- South Africa to protect in- panies that provided dud vestors, as well as boost con- security for the loan. Far fidence in the South African from acting with the ut- regulatory system in order most good faith, as is re- to attract investments and quired of a curator, he had stimulate growth.” acted in a fashion calcu- Mavji, in the interim, has lated to gain advantage discovered evidence reveal- for himself at the expense ing even more frauds perpe- of Medicover. trated by Gihwala. Further The medical aid fund court hearings are antici- sought repayment of the pated. outstanding R4.8m plus Legal costs awarded interest from Gihwala Dines Gihwala against Gihwala in Mavji’s and from his then law favour continue to mount up. firm. Currently on the court roll The case was subsequently taken The court found that Gihwala: for taxation by the taxing master at the to arbitration where a settlement was l failed to keep proper books of ac- Western Cape High Court in May is a reached in 2014. The agreement in- count; bill from Mavji’s lawyers for costs still cludes a secrecy clause which “regret- l failed to allow his business partner to be paid by Gihwala totalling close on tably” prevented Liberty’s attorneys access to the accounts; R20m. Gildenhuys Lessing Malatji Inc from l failed to disclose material informa- He has already managed to pay divulging to Noseweek what the terms tion to his business partner; R12m in damages awards. But then he of the settlement had been. l failed to distribute to his partner a did manage to accumulate a fair for- The Western Cape High Court deliv- fair share of the profits; tune as curator of Fidentia, thanks to ered its judgment in Mavji’s case on 26 l preferred himself as a creditor his kind friends at the FSB who would June 2014. above other creditors; hear no evil said of him. n

NOSEWEEK May 2017 13 Not Rocket Science SIBUSISO BIYELA

xxxx. xxxxxx

www.penguinrandomhouse.co.za

noseweek advert may 2017.indd 1 2017/04/05 12:25 PM The sizeable Melrose Arch development was valued at R0 Valuable friends

Jozi DA embraces ANC crony with R100m tender. By Jonathan Erasmus

HE CITY OF JOHANNESBURG, LED as a passing remark in an off-chance by the DA, has quietly awarded telephone conversation with a strate- a tender of nearly R100 million gic advisor to the Joburg council. The to a company which eight years advisor promised to email Noseweek ago they accused of being part of formal comment, but never did. theT ANC’s “crony” capitalist machine eValuations’ founder, a known ANC of tender rigging, jobs-for-pals, and backer and KZN Teflon Club member substantial backhanders. And they who has been fingered in questionable don’t want anything said about it. contracts in Durban, is Willy Govender eValuations Enhanced Property Ap- (see nose203). praisals has won the right to value Govender once boasted in a 2011 in- nearly 900,000 properties in Johan- terview with Entrepreneur Magazine nesburg for the General Valuation Roll that “90%” of his growing business em- 2018 (GV2018). They were awarded pire’s work was from “the public sector” the tender through what appears to be and that they already had a turnover a dodgy process pushed through just of R250m which he hoped to grow to days before the ANC lost power in the R1 billion by 2016. metro. In February 2009 Helen Zille, then eValuations only won the contract DA leader, said eValuations and Willy when the first tender (under Bid A654, Govender were part of “closed, crony Willy and Vanessa Govender at their in which eValuations was the third- politics” and that Govender had been silver wedding anniversary party lowest bid, with the worst BBB-EE awarded the valuation contract in Dur- scorecard) was mysteriously with- ban in 2008 because he was “a well- drawn and then re-issued and re-ad- known backer of the ruling party”. penheimers, Johann Rupert, Tokyo vertised as Bid A683. When the bids Noseweek revealed in August 2016 Sexwale, property tycoon Douw Steyn came in on this round, lo and behold, (nose202) that eValuations had con- and Angolan warlord Bento dos Santos eValuations came in as the lowest bid. veniently under-valued the properties Kangamba. Not to speak of providing The only confirmation that the tender of Johannesburg’s elite, including bil- valuations of nil for billion-rand de- had been awarded to eValuations came lionaires such as the Guptas, the Op- velopments such as Melrose Arch – as

NOSEWEEK May 2017 15 in the General Valuation Roll of 2013 (GV2013). These “discrepancies”, such as with eValuations merger under scrutiny Johann Rupert’s valuation which was set at R0 then re-valued to R88.8m, PROPOSED MERGER BEWEEN EOH R404,656,224 contract as “Provid- and a Gupta-owned property that Holdings, a technology services ers for the SAP Implementation/ changed from a valuation of R480,000 Agroup founded by Israeli immi- Upgrade”. They have also regularly to one of R22m – were uncovered by grant Asher Bohbot, and Willy Gov- won multi-million-rand contracts Howick pensioner and maverick tax ender’s companies: eValuations, in another DA-led metro, Cape crusader Dr Robert McLaren (noses Data World (Pty) Ltd, Data World Town, as well as Nelson Mandela 202,203&207). Later, McLaren was Information Systems and Xcallibre Bay Metro and the City of Tshwane. served a R24,000 costs order by the (Pty) Ltd is the subject of a Compe- The company is a regular spon- city’s internal valuations appeal board, tition Commission inquiry. sor of City of Johannesburg events apparently for “wasting their time”. EOH is one of the fastest grow- including the recently rained-out The board had never before issued ing companies in the country and Joburg Open Pro-Am. such a costs order. is gobbling up technology compa- Early last year EOH paid R16.5m The board had asked McLaren to nies at a rapid rate. One valuer for a 100% share company called provide information to back up his de- said that if the deal were allowed New African Rail (NAR), The BEE mands for higher rates for the city’s it would effectively “put the lock on partner to French manufacturing uber-rich by providing information the valuations business” which he firm Alstom who were partners in a (which the city had refused to provide claims eValuations had cornered R51bn contract to supply 3,600 new him with) that eValuations was al- through political muscle. The pend- passenger carriages to the Passen- lowed to ignore when doing its original ing merger was lodged with the ger Rail Agency of SA (PRASA). valuations. As a result McLaren was commission on 27 February 2017. NAR’s BEE shareholders, who forced to withdraw many of his other- EOH is no stranger to Johannes- sold before a single carriage was wise-valid objections. burg residents, having had its hand built, were, according to News24, Ironically, in the GV2013 there were in the billing crisis that rocked the Thalente Myeni, son of SAA chair- 94,565 valuation objections of which city in the past decade. Last year man Dudu Myeni, Monde Africa 71,552 were lodged by the city’s own EOH was awarded a three-year and Sesinyi Seopela. n officials – an unheard-of situation in South Africa’s recent valuation history. The explanation: the majority were for duction”. In other words, they had been by an average of 58% of their real value over-valuations of township dwellings successful in carrying out their man- by means of forged signatures and fake which the then-ANC-led council real- date. documents (nose207). ised was not likely to please their vot- Noseweek, in conjunction with the Among those found to have benefited ers in Soweto. investigative journalism programme from this scam – although they denied McLaren lodged 961 objections, all of Carte Blanche, has since revealed how any knowledge of the crooked valua- which focused on the high-end market. Johannesburg’s own valuers were able tions – included self-confessed KZN Govender told Noseweek in a 2016 to manually alter valuation rates ille- slumlord Ahmed Kazi, South African/ article that the overall value change as gally for high-end city customers – at Chinese business leader Li Xinzhu and a result of the objections “was a reduc- a price. The gritty facts are detailed in Bloemfontein property developer Nic tion from R290bn to R284bn, the differ- a 52-page forensic report that shows Georgiou. ence therefore being R6bn”. He said the how a sample of 22 high-value Johan- The city failed to answer whether total value of the GV2013 was R912bn, nesburg properties (together worth they would prosecute the customers which reflected “a less-than-1% roll re- R885.26m) were re-valued downwards found to be colluding with the already

16 criminally charged former Joburg Met- sulting – R229m; Inani Lempahla Con- ro employee implicated in the fraud, sortium/ICT Works – R483m; Lutendo Mbali Maclare. – R108,4m; Indigo – R166,7m; another Now the city has elected to throw firm called “Lapdot Property Consult- a veil of secrecy over the lucrative ing” – R110m; and the lowest bid was contract awarded to eValuations eValuations – R99,897,750, a reduction for GV2018. They tried to thwart of R67.3m from their previous bid. Noseweek’s requests for details of the Out of six requests for information contract – first, via a Promotion of Ac- made in Noseweek’s PAIA application cess to Information Act (PAIA) applica- only a portion of one request was an- tion, then through direct questions to swered. It was submitted on 30 Novem- Rendani Tshivhase, Strategic Advisor ber 2016 and it took the city 105 days to the city’s finance boss, Prof Rabela- to respond. All they provided was a ni Dagada, a staunch libertarian and hodgepodge of information that made close ally of Mayor Herman Mashaba. little sense. All of the documents pro- But despite the city’s best efforts to vided were already freely available on hush up the deal, eValuations’ Johan- their website. nesburg office confirmed informally What was denied to Noseweek were over the phone, that they had won the the minutes for both Bid A683 and contract and had been given “a short Bid A654 from the Bid Specifications time frame” to fulfil their mandate. Committee, Bid Evaluation Commit- The first bid, A654, was issued on 4 tee and Bid Adjudication Committee, Rendani Tshivhase December 2015, with the closing date as well as the 90/10 Preference Point of 21 January 2016. Five bids were re- System score for each bidder; names of closure would involve the unreasonable ceived. According to the Bid Opening members of bid committees including disclosure of personal information”. Register – which is available online emails, letters, notes, memos relating to They further claimed they were not and was also obtained via the PAIA ap- the bids; any evidence that there were obligated by law to provide any docu- plication – DPP Valuers quoted R144m; significant differences in tender re- ments containing opinions or advice Sizanane Consulting, R264m; Black quirements between Bid A654 and Bid such as minutes of meetings. Jills PMM Consortium, R95m; eValu- A683; details of why any bidder was Noseweek has appealed the city’s ations, R167m; and Inani Lempahla disqualified; details on any joint ven- findings against the PAIA application. Consortium/ICT Works, R417m. tures between bidders and records that The only formal confirmation by the Bidders to whom Noseweek spoke “evidence the withdrawal of Bid A654 city that eValuations had won the ten- said they had heard nothing further including communiques with bidders, der was via a short conversation with about the bid until 30 June 2016 when officials, and the committees”. Tshivhase who, when asked who won the bidders received a “Cancellation” The city claimed that providing such the contract, said: “The same company letter. information contained “privileged in- who undertook the previous valuation”. “The City of Johannesburg regret- formation of third party” and its “dis- Probed further, he asked for questions tably informs you of the cancellation to be emailed. of the above mentioned tender due to Tshivhase repeatedly missed dead- the expiry of the validity period,” said lines to provide answers, despite the the letter sent by director of strategic deadline having been extended six supply chain management support, Now the city has times. Noseweek’s questions included Setlhabi Leso. asking for “substantive reasons” as to The letter said a new bid, number why Bid A654 was cancelled; wheth- A683, would be opened on 4 July and elected to throw ert they had inquired into the manner closed 1 August 2016 – just two days in which eValuations won the tender, before the start of the country’s local and why the DA seemed to be embrac- government elections. a veil of secrecy ing ANC “crony” business. He said the The city refused to divulge any infor- reason for the delay in responding was mation concerning this bid as request- that the answers had to be approved by ed by Noseweek’s PAIA application, in- the mayor’s office. cluding the bid register which should over the lucrative The city’s formal media channels ig- be publicly available. Furthermore nored all questions about the tender. there is no publicly available online l A new question for Mr Tshivhase record that this bid was awarded. Nor- contract awarded (and the mayor’s office): Might some mally records of this nature are stored of the Gauteng DA’s major funders be on the city’s website. amongst those favoured with nil or However a source leaked Noseweek to eValuations ultra-low valuations, allowing them to the details. The bids were as follows: pay little or no rates on their valuable DPP Valuers – R145m; Sizanane Con- properties? – Ed. n

NOSEWEEK May 2017 17 A cut and paste job

How Ekurhuleni planning chiefs covered their tracks after permitting illegal school opening. By Jack Lundin

OUTH AFRICAN POST OFFICE CHIEFS enue, a spacious old-style property on city planning department. The appli- are incensed following two se- a 2,000m2 stand, has been the home cation was to be considered by a Metro cret forensic reports which, for 13 years of Ken and Dalene Elling- development tribunal on 20 November Noseweek can reveal, concluded worth. Next door at number 2 is the 2015. Legally the Metro must give ob- that senior city planning of- Dunamis Christian School, part of a jectors 14 days advance notification of ficialsS in Gauteng’s Ekurhuleni Met- flourishing local empire controlled by hearings – these notices routinely go- ropolitan Municipality conspired to a wheeler-dealing pastor named Dr ing out by registered letter. create “proof” that Registered Letters Hendrik Bester. But, claims Ken Ellingworth, no had been sent to residents fighting a The school’s main premises, for pu- registered letters went out this time controversial rezoning application. pils up to grade 7, was previously es- so that the objectors were unaware of Mzwandile Masina, former deputy tablished in nearby Piercy Avenue. the tribunal hearing. Ellingworth says trade minister, was elected executive Bester’s Dunamis International Fam- City Planning only gave him the date mayor of the vast Ekurhuleni Metro ily Church acquired the Grace Avenue in an email a week earlier when he on the strength of his vow to wipe out former family home in 2014 as over- called for the school to be closed until corruption and fraud within the coun- spill premises for the younger grade rezoning had taken place. After estab- cil. After his inauguration speech fol- 1-3s. The extended school opened on lishing that none of his eight fellow ob- lowing August’s municipal elections 14 January 2015. jectors had received their notifications, Masina declared that there were no Senior Pastor Bester and his admin- Ellingworth decided not to attend the existing claims of corruption against istrator and security chief Pastor Jaco tribunal hearing “on principle”. any officials and promised to set up de Swardt aren’t known for their com- The seven-strong Development Tri- an anti-corruption body to keep things pliance with formalities. Their public bunal was chaired by DA councillor that way. health permit from the Metro’s health Shadow Shabangu. Seven Metro of- When he made his “we’re clean” department was withdrawn in Sep- ficials sat in attendance, including claim the new mayor was presumably tember when a site visit by officials three from city planning: Development unaware of the Post Office forensic re- revealed that what De Swardt had Tribunal head Gift Motsepe, Glyn port completed months earlier which described as a (less scrutinised) child- Kelly and Yvonne van Deventer. highlighted “discrepancies to the mu- care centre was a fully-fledged school. Tribunal minutes record that only nicipality”. The report concluded that Shortly after the overspill school one written submission, by Hareklea senior Metro staffers had conspired opened, neighbour Ken Ellingworth, Markides, was read out “on behalf of to breach the Post Office’s supposedly 63, who owns a business repairing the objectors”. The solitary objector, secure registered letter system in a garbage trucks, discovered that the hailed from Larnaca Palms and, says cut-and-paste operation to create an new prefab block of four classrooms in Ken Ellingworth, her complaint was official Post Office document. At the the garden had been put up without “pretty tepid”. Certainly nothing like urging of a Post Office security chief, planning permission. Worse, the erf on his own lengthy submission which de- a Germiston resident has opened a which the school stood was still zoned tailed a host of illegalities: no plan- fraud case against Ekurhuleni Metro as residential. Dunamis Christian ning permission for the classroom at Kempton Park Police Station. School was operating illegally. block, the school having been running Post Office chiefs are intensely em- On top of that, his wife’s daytime for 10 months before rezoning, offload- barrassed by the breach, but CEO peace was disturbed by the ear-split- ing children on the public road etc. Mark Barnes declines to comment on ting din of up to 100 young children Objectors may attend but not speak Ekurhuleni Metro’s maverick actions charging around the next-door garden at development tribunals. Had they or say what measures the Post Office in their twice-daily classroom breaks. been present, the objecting nine could is taking to close the loophole. Ellingworth and eight other local resi- at least have ensured that their writ- The story starts with a bitter row dents, mostly from the nearby Larnaca ten submissions were ventilated. In between neighbours in once-tranquil Palms townhouse complex, filed objec- their absence, rezoning consent for Grace Avenue in the Germiston sub- tions to the belated rezoning applica- Bester’s little school went through on urb of Lambton. Number 4 Grace Av- tion lodged with Ekurhuleni Metro’s the nod – without even objections.

18 Post Ofce CEO Mark Barnes

went off to consult the system, which showed the Metro had only brought one batch of registered letters to them that 30 October. And it wasn’t his. The manager gave Ellingworth a copy of the list of registered letters concerning that unconnected batch, The Dunamis Christian School which had also been completed and signed by the same Alicia. Teller no 2 confirmed that this list did bear her Ken Ellingworth was convinced letters on which the names and ad- genuine signature. planners deliberately omitted their dresses of all nine objectors were list- A shocked Booysen told Ellingworth objections – which is why they had ed by one Alicia of Ekurhuleni Metro. that she was escalating the matter to faked “evidence” that the objectors Each addressee had been allocated a the Post Office’s forensic department. were notified. And there was big mon- tracking number and the list bore the She gave Ellingworth a letter confirm- ey involved; by turning a blind eye, of- PO’s date stamp: 30 October 2015. ing that the registered letter purport- ficials had allowed the school to oper- But Ellingworth’s close scrutiny edly mailed to him (tracking number ate illegally for 10 months – and rake showed that lines on the form didn’t RC 094 719 368 ZA) had not been re- in income of up to R2m. quite match up and the signature of ceived in her Post Office for registered If the objectors hadn’t received their the Post Office’s accepting officer, tell- posting, as claimed by the Metro. registered letters it was all the fault er no 2, looked decidedly odd. Armed with Booysen’s disclaimer, of the Post Office, said Tribunal head The following day saw Ellingworth Ellingworth confronted city planning Gift Motsepe. Ten days after the hear- at Kempton Park Post Office, where chiefs at their Kempton Park head- ing Motsepe assured Ellingworth that teller no 2 declared indignantly that quarters. At the meeting with officials all nine had been properly notified. the signature on the list was indeed Tshepiso Lentsoane, Gift Motsepe, “Unfortunately this office cannot be not hers. The branch manager SE Yvonne van Deventer and Glyn Kelly, held liable for any misgivings [sic] by Booysen was called. Ms Booysen he told them the matter could be eas- the Post Office,” he told Ellingworth. ily resolved: Tribunal chair, Shadow Shabangu, “Show me the original of the docu- a part-time councillor who draws a ment,” he challenged. “There was a salary from the Metro, tells Noseweek: stunned silence,” recalls Ellingworth. “All nine objectors were notified as per The teller declared “That was the end of the meeting.” Township Ordinance via Post Office (Planning officials later told the Met- and we have proof of that, even though ro’s internal audit department that there is an objection with regards to indignantly that the original could not be found.) the stamp from the Post Office.” Ten days after the meeting Glyn An objection re the stamp? Be pa- Kelly emailed Ellingworth – again, tient. Read on. the signature on it was all the fault of the Post Office. Ellingworth demanded proof of reg- “The registered letters were in fact re- istered letter posting. Eleven days ceived by the Kempton Park Post Of- after the tribunal hearing this was the list was indeed fice on 30 October 2015, i.e. 22 days provided to him on the orders of Glyn prior to the hearing date scheduled for Kelly by his colleague Yvonne van 20 November 2015,” Kelly assured El- Deventer. It came in the form of an not hers lingworth. “Unfortunately, this office official Post Office list of registered cannot be held liable for any misgiv-

NOSEWEEK May 2017 19 ings [That same odd phrase! – Ed] by statement “as a witness to the forgery, the Post Office and is furthermore not uttering and fraud pertaining to the responsible as to how it manages its rezoning aspect”. delivery of registered mail.” The list of registered Ellingworth, escorted by Grobler, Ekurhuleni Metro’s legal depart- duly opened case No. 283/9/2016 ment pitched in too: “We maintain letters sent to Ken against Ekurhuleni Metro Council at that the objectors were notified of Kempton Park Police Station several the hearing,” Davey Frank, executive days later. manager; corporate legal services, Ellingworth as proof of Security chief Vossie Vos tells told Ellingworth’s attorney. “The no- Noseweek that the Post Office regards tification letters were posted at the posting by Ekurhuleni the alleged forgery as “very serious”. Kempton Park Office and receipt of He adds: “From our side we’ve done the letters was acknowledged by the what we can do internally. The SAPS Kempton Park Post Office. This is evi- Metro was a forgery now needs to drive the process in dent from the stamp that appears on terms of the alleged fraud by the mu- the list of registered letters. nicipality.” Vos says that names of in- “As the Ekurhuleni Metropolitan dividuals identified in Grobler’s foren- Municipality we confirm that we have Kempton Park Post Office. The item sic investigation have been provided complied with the 14 day notification was not handed in over the counter. to the police. period as stipulated in Section 131 (2) Discrepancies were found on the proof Post Office CEO Mark Barnes de- of the Town Planning and Townships of posting by the municipality. These clines to discuss the whole embarrass- Ordinance of 1986.” discrepancies were highlighted to the ing business. “The Post Office Security But Post Office chiefs weren’t going Municipality.” and Investigation division conducted to take this lying down. They ordered In September, furious that Metro an internal investigation which un- a forensic probe, which was conducted planners were blaming the Post Of- covered sufficient information to war- by Pieter Grobler, a veteran Post Of- fice for non-delivery of the registered rant a police investigation,” says a fice investigator in Security and In- letters, “Vossie” Vos, acting general statement from his Communication vestigation Services. Grobler’s report manager of Post Office Security and department. “Unfortunately we are (Ref. HD 2826505) concludes that the Investigation Services, urged Elling- not able to provide the media with List of Registered Letters sent to Ken worth to lodge a fraud complaint with the SAPO investigation report as this Ellingworth as proof of posting by the police. Vos assured Ellingworth currently forms the basis of the SAPS Ekurhuleni Metro was a forgery. that his unit’s investigator, Pieter investigation on the matter.” Grobler also told Ellingworth: “No Grobler, would accompany him to the A SAPS spokesperson says the case proof of posting could be found at police station and submit a separate is under investigation by the Com- mercial Branch in Germiston. “No suspect has been arrested yet.” As for the second secret forensic in- vestigation, conducted by Ekurhuleni Your fraud is in the post Metro’s own internal audit depart- HE POST OFFICE TAKES GREAT PRIDE form for completion. ment, Noseweek has established that in the security of its Registered These bulk registered letter mail- it also concludes the disputed List of TLetters system. But Noseweek’s ings, however, have no security until Registered Letters is a forgery. Dirang story demonstrates its vulnerability the dispatching customer deposits Modimakwane, the senior forensic au- to fraud. them at a Post Office and their ac- ditor who wrote report Ref. 025 FOR Ekurhuleni, the fourth-largest companying List of Registered Let- 15/16 says that his conclusion is sup- metropolitan municipality in the ters is signed and date-stamped by ported by an external handwriting country, sprawls from Germiston in the accepting officer. Only then do expert. the west to Springs and Nigel in the they enter the Post Office “stream” Noseweek emailed a copy of the dis- east. It embraces OR Tambo inter- and become trackable – and safe. puted list to Ekurhuleni’s legal de- national airport and is SA’s manu- Sensitive documents and valu- partment and asked if Davey Frank, facturing hub. ables worth millions are annually executive manager; corporate legal Major customers, including corpo- entrusted to the SA Post Office’s services, finally accepts it is a forgery. rations and bodies such as Ekurhu- Registered Letter system, on the No response. leni Metro, have mail rooms in utility’s guarantee of security. Today Dunamis Christian School which they are entrusted to make The courts accept the official Reg- (fees R2,200/month, R100 penalty if up their own batches of Registered istered Letter List as legal proof of instalments not paid by the 2nd of the Letter postings. For this the Post posting. Now it emerges that, with month), is in vibrant and full-decibel Office provides them with large rolls a little cut-and-pasting, this “proof” swing down in Grace Avenue, Ger- of duplicated tracking numbers and isn’t worth the paper on which it miston, although its colourful driving its official List of Registered Letters appears. n force, Snr Pastor Dr Hendrik Bester, is not available for interview. n

20 Durban’s tender mafa

Forum chair Nathi “Bhamuza” Mnyandu and friends

The Durban construction industry is under siege from a shadowy ‘tender mafa’ of armed ‘businessmen’ who invade construction sites, close them down, and demand a ‘ransom’ before work can resume. By Niki Moore

HE FIRST RUMBLES OF KWA- A source, who insisted on anonym- instead of negotiating with them the Zulu-Natal’s AmaDelangokubo- ity, told Durban newspaper The Daily city should be arresting them. na Business Forum were heard News that crews had become terrified “These groups are bringing pure in December 2015 when con- of going into certain areas. “If there anarchy to the city,” he told the Daily tractors in Umlazi suspended is a critical job that needs to be done, News at the time. “It seems that all refuseT removal in the township, saying we have to organise police escorts,” he you have to do to get a contract now they were underpaid. The contractors, said. “People are scared to go to work. is to go out there and intimidate peo- claiming to be members of the Forum, These guys are armed and tell people ple doing the work. The scary thing is shut down municipal refuse depots they will be killed.” that the people who are doing this are and threatened violence if their de- Forum chair Nathi “Bhamuza” Mn- known. They should not be negotiated mand for a pay increase was not met. yandu, the self-declared spokesman with, they should be arrested,” he said. For a month, the rubbish piled up in for the group, confirmed that they A week later, gangs of armed men Umlazi while the city tried to solve the were intimidating workers, but would closed down the construction site of impasse. not give their reasons. the city’s proposed Mount Edgecombe Things took a sinister turn in Janu- The municipal siege ended in Febru- Road interchange, stopping work for ary last year when city contractors ary last year when the ANC leadership several weeks at an estimated cost of began receiving death threats if they in the city intervened. The attacks and R600,000 per day. City management turned up for work. Forum members threats stopped. The Forum held a intervened once again and reached a laid siege to the municipality’s electric- joint press conference with the region- confidential agreement with the group. ity depots, threatening to kill workers, al ANC and the eThekwini Municipal- The site re-opened shortly afterwards. and then targeted road repair crews, ity, announcing that Forum members By May last year, the group had tar- storm water depots and maintenance merely wanted access to economic op- geted eight construction sites around teams. Senior managers also received portunities. the city. A construction company own- death threats. Workers were beaten However, DA caucus leader in eThek- er who insisted on remaining anony- up, shot at, and had equipment and wini, Zwakele Mnwango, described Fo- mous told The Mercury newspaper cellphones stolen. rum members as “thugs” and said that that a few minibuses would arrive on

NOSEWEEK May 2017 21 site with armed men on board. They should be paid. According to their Facebook page, they would demand to see “the boss”. “If they are told their work is sub- charge R1,000 for membership, which “Each of the men would have their standard, apparently their response entitles members to a card, and a list- own company and they would tell you is, ‘That is your problem, you sort it ing on their “database”. that you must employ skilled and un- out.’ They are seriously damaging an In June 2016, The Mercury news- skilled workers from them. On top industry that is already struggling in paper reported that Elias Mechanicos of that you must give each of them the current economic climate” he said, Building and Civil Engineering sought R5,000 a fortnight to ensure there are adding that most construction compa- an interdict against the group. no disruptions. That money is nothing nies were trying to “co-operate and co- The construction company had been but protection fees,” he said. exist with the Forum”. building a R120m city fleet facility for At one construction site the group of Forum chair Mnyandu admitted the eThekwini Municipality in Spring- men gave the owner of the company an they were demanding work from con- field Park. One afternoon a group of 15 AK-47 bullet and said the bullet was struction companies. to 20 men frog-marched the security worth R17. They told him that it was “All we are doing is ensuring these guard to the main office and demanded the cost of his life if he did not comply. white and Indian companies comply to see management. They wanted 10% Construction companies did not call with BEE. They must do the right of the contract value subcontracted to the police, instead seeking legal ad- thing,” he said. The members of the them. If their demands were not met, vice from lawyers. They also notified Forum, he said, were all ex-prisoners they would shut down the site. the Master Builders Association and who had served time for Schedule 6 The company went to the High Court the SA Institute of Civil Engineers crimes (which include murder, rape in Durban for an urgent interdict. In (SAICE) in hopes that they would and armed robbery). They were look- his affidavit, quantity surveyor Declan exert some political pressure on city ing for “legitimate work” so that they Weyers said the group arrived on Mon- management to rein in the “‘business did not have to go back to committing day “unannounced”. forum”. They got short shrift. crime. “I was taken aback by the sheer “They just told us to beef up security Asked by a Daily News reporter what numbers... I became intimidated as on site and at our houses, in case we would happen to those who refused to soon as we went into the spare office. were targeted at home,” one construc- comply, Mnyandu said: “If they do not All 15 crammed themselves in and be- tion company owner told the Daily stop, they will get in trouble. We will gan interrogating me. News. give them direction and show them “They were constantly talking over A letter from the Master Builders the constitution that we are using. If the top of each other, they were rude Association KZN to members in May they still do not comply, ay, my friend, and quite aggressive. In the back of my said they had received reports of dis- I can’t tell you over the phone what we mind I was questioning who on earth ruptions at various sites throughout will do.” these people were.” the province. The name Delangokubona is a Zulu He said he had tried to explain that “This situation seems to be impact- word that very loosely translates into there was a procedure through which ing negatively on the completion of “Here comes trouble”, and is regarded the company had been instructed by contracts and the financial aspects as an aggressive and warlike phrase. the employer (the municipality) to thereof. Even more so, our report in- work with the ward councillor and two dicates acts of violence and intimida- community liaison officers for the ap- tion on site. We are requesting that The members pointment of local labour. In response, our members supply details of such one of the group said they knew the encounters to the association, as this representative of the municipality and is a matter of urgency,” the letter said. of the Forum, there would be no difficulties. Attorney Peter Barnard, of law firm Weyers said he was shaking when Cox Yeats, said in an interview with they left, their parting shot being “we the Daily News that he had been ap- he said, were all will shut the site down”. The police proached by a number of clients in the were contacted but had failed to re- construction industry who wanted to spond, so the company appointed two put a stop to the Delangokubona Busi- ex-convicts who private security companies. ness Forum. Shortly afterward, the Durban “However, everyone I’ve spoken to is Chamber of Commerce issued a press nervous and doesn’t want to put their had served time release, expressing concern about name to anything,” he told the news- the existence of the “so-called Delan- paper. “I can only go to court if I have a gokubona Business Forum”: “…not mandate from someone. Nobody wants for crimes which only at the brazen and wanton violent to give me a mandate because they are nature of this group and its bullying all worried about the ramifications. include murder, tactics, but also at the apparent un- Barnard said after arriving on site willingness or inability of the security and demanding work, Delangokubo- establishment to take the necessary na Business Forum also dictated to rape and robbery decisive action to stop what is a violent contractors what rate their workers crime.

22 “This can only be described as a form Robert Ndlela, representing the Fed- of industrial terrorism and no citizen eration for Radical Economic Transfor- of eThekwini is unaffected by this. It is mation – which claims to have 60,000 a matter of national importance. members and is now an umbrella “Action must be taken to establish An R8bn resort grouping for all these rapidly expand- a SAPS special task team working in ing forums – was quoted in The Mer- conjunction with National Intelligence site near Sibaya cury as saying that he was surprised and, if necessary, the SANDF, to tackle by the allegations of intimidation. All this head on.” they wanted, he said, was for compa- In response, KZN Premier Willies Casino was nies to work with them and mentor Mchunu vowed to “crush” the rogue them. business forum. “We assure you that Despite furious rumblings from pro- with cooperation from the private sec- stormed by vincial government, Acting Premier, tor, they can be crushed overnight. We Economic Development and Tourism will be there,” Mchunu said. MEC Sihle Zikalala, Community Safe- But Forum chair Mnyandu was not armed men, who ty and Liaison MEC Mxolisi Kaunda, perturbed by Mchunu’s threats. “Those and city management, no apparent people must not play political ball action has been taken against these games with us, we are not politicians. demanded 40% of groups. That premier just came in, he does not “If people feel they have been de- know us,” Mnyandu told The Mercury. nied an opportunity, we will engage “We are not mad in the head, they the work with them and that applies to projects paint us as such because they want to that are either government or private benefit alone, and we have researched sector. But once there is vandalism, this and know officials use companies In November 2016 these groups we will not be found wanting; we will as fronts for their own pockets,” he invaded other construction sites. An mobilise all partners in the Economic said. R8bn residential and hotel resort pro- Council to understand that firmness is In October 2016 construction com- ject near Sibaya Casino on the North firmness,” said KZN Economic Devel- pany Group Five went to court to Coast was stormed by armed men, opment MEC Sihle Zikalala in a press prevent the Forum from closing down who demanded 40% of the work of the statement. renovations to Kingsway Hospital in project. Once again the construction The eThekwini Municipality ap- Amanzimtoti. Site manager Raj Pool- company interdicted the forums from peared confused by a request for chand said in an affidavit that around disrupting construction. A week later, comment. “That was all done by the ten forum members had arrived unan- it was the turn of the KwaDukuza previous city manager,” explained an nounced on site. Forum chair Mnyandu Municipality. They cited Delangokubo- anonymous person in the city’s com- Radovan had said to Poolchand that the group na members, as well as a new group munication department. “No-one now had noticed the constructionKrejcir work and called Umzansi wa Darkie, who they is doing anything.” wanted “a few slices of the Group Five said had been “storming building and/ The municipality is in disarray fol- loaf”. or engineering sites” over the past lowing factional battles in the council, Poolchand said he had explained eighteen months. with no communications officer and that the work was highly specialised In January 2017 the group, now call- only acting staff in senior positions. and could not be re-assigned. ing themselves the Federation of KZN Sipho Khumalo, spokesman for MEC “They were irate,” Poolchand said in Business Forums, were active again. for Transport and Community Safety, his affidavit, adding: “They said they This time the target was the proposed said that the issue was not regarded were trying to be reasonable, but that R1.8bn renovation to Durban’s Sun- as a criminal matter, but rather an eco- one phone call could result in 500 peo- coast casino. Suncoast executive direc- nomic and development matter. ple being mobilised outside the hos- tor Mike Dowsley told the Daily News “You must speak to the MEC for pital, who would start burning tyres, that they had decided to shut down the that department,” he said. “We do not rioting and otherwise make it impos- site while negotiations with the group regard these as criminal offences be- sible for work to go on.” were in progress. cause no complaints have been laid This worried him, he added, as they The secretary of this new expanded with the police.” were trying to keep the hospital oper- group, Mfundo Mseleku, told the Daily Numerous attempts were made to ating normally and such a disruption News that stopping the work was the get comment from the Premier’s office, could have dire consequences for pa- only way to get contracts. the office of the MEC for Economic De- tients’ lives. “We’ve had success in achieving this velopment, the eThekwini Municipali- The Forum did not oppose the in- in the construction of the Umlazi Mega ty, and the Federation of KZN Business terdict nor appear in court. But by City Mall and its current extension Forums, without success. The person the end of 2016 the forum’s “business project, the building of new residences who answered the phone number for model” was proving so successful that at Mangosuthu University of Technol- the Federation on their Facebook page it had spawned several other similar ogy and the R603 road in Umbumbu- explained that they do not talk to “forums” that used the same tactics. lu,” said Mseleku. journalists. n

NOSEWEEK May 2017 23 King Shaka International an airport in search of passengers

IRST COSTED AT R3.15 BILLION, BY By Ciaran Ryan come of R109m, which is less than a the time Durban’s King Shaka third of the R350m cost of borrowings International Airport was com- they incurred to take up their shares. pleted in 2010, it had cost any- decent return on their investment. A 2012 report by auditors Ernst & thing between R7.6bn and R9bn. Just a few years ago, in 2011, when Young suggested the financiers who ThisF kind of cost overrun is chicken ACSA had completed a massive airport backed the empowerment shareholders feed when stacked against Eskom’s upgrade programme, it was granted a were keen to foreclose on the underly- Medupi and Kusile power stations, but staggering 133% increase in tariffs by ing ACSA shares, but that this would it set in motion a chain of events that the regulator. Why would ACSA now have a negative effect on perceptions of helps explain some of the bizarre deci- apply for a reduction in tariffs? None ACSA and the empowerment deal. sions coming out of Airports Company of this makes much sense unless, as If minority shareholders are dis- of SA (ACSA). minority shareholders have argued, gusted with the crumbs they have been King Shaka is one of the nine air- one understands that ACSA has aban- tossed by ACSA, why would the PIC be ports managed by ACSA. doned its commercial mandate due to inspired to purchase ADR’s 20% share- In February, Minister of Transport political meddling. holding, unless it is subject to the same Dipuo Peters fired half the board of Minorities want nothing more than political interference as ACSA? ACSA, ostensibly to strengthen it, but to sell their shares back to the state To sweeten the deal for the PIC, left in place CEO Bongani Maseko who and have been trying for years to do so ACSA paid out a special dividend of was fingered last year in a forensic re- at something approaching fair value. R1.79 a share shortly after PIC ac- port that detailed several instances of Instead they have been offered 40% of quired its shareholding in the compa- procurement irregularities. net asset value. ny. The PIC invests public sector funds This is just one instance of political The only buyer for these shares is “based on investment mandates set by interference in the running of ACSA. the government which, nearly 20 years each of these clients and approved by A far graver interference was the de- ago, lured investors into ACSA with the Financial Services Board (FSB),” cision in 2006 to force ACSA to build promises of privatisation and an even- according to its website. “Our goal is to the King Shaka International Airport tual listing on the stock exchange. not only meet, but exceed our clients’ without a feasibility study having been Based on these promises, it got Aero- expectations and our shareholders’ in- carried out and in defiance of all com- porti di Roma (ADR) to purchase 20% vestment objectives through thorough mercial logic. This decision lumbered of the company for about R890m in research, careful risk analysis and ACSA with crippling debt which it has 1998, or R8.19 a share. This valued stringent compliance practices.” How’s been forced to service ever since. ACSA at about R4bn at the time. When that for a laugh! In March this year, minority BEE it became clear the government had no Many of ACSA’s difficulties can be shareholders in ACSA brought an ap- intention of listing ACSA, ADR sold its traced back to 2006, when then-Min- plication before the High Court in Pre- shares to the Public Investment Corpo- ister of Transport Jeff Radebe decided toria challenging the “commercially ration (PIC) for R16.75 a share, mak- that Durban needed a new airport and illogical” decision by the airports regu- ing a decent return on its investment. announced plans to go ahead with the lator to lower tariffs by 35.5%, which No such luck for the minorities, who building of the King Shaka Interna- would cut revenue by R1.8 billion by have now turned to the courts for relief. tional Airport (KSIA) at La Mercy in 2018 and remove all prospect of the ACSA is 74.6% owned by the state, Durban. This was to be followed by the company’s being able to declare a divi- 20% by the Public Investment Corpo- decommissioning of the pre-existing dend to shareholders. ration, 1.2% by staff and 4.2% by five Durban International Airport. The tariffs went into effect on 1 empowerment companies. It is the em- Back in 2006, with the 2010 World April, but the matter has now been powerment companies that are peeved Cup looming, ACSA embarked on placed under judicial review. These tar- at the direction the company has tak- a massive upgrade of its airport in- iffs benefit airline operators and pas- en. They paid R172m for their shares frastructure. Radebe did not consult sengers, but not ACSA shareholders, in 1998, almost all of it borrowed. By ACSA about the government’s deci- who long ago gave up hoping for a 2006 they had received dividend in- sion to build KSIA – which is odd since

24 the airport is premature, with insuf- ficient traffic or demand to support it. Airlines support the user-pays prin- ciple and are willing to pay for use of facilities that add value, deliver effi- ciencies and provide a value-for-money service. But why should they pay for construction of an airport that is not needed and that most airlines do not even plan to use? As in any other in- dustry, surely ACSA’s shareholders, who earned handsome dividends for several years, should recapitalise the company so it can fund its own capex ACSA would be responsible for run- are unlikely to do so for several years. programmes?” said Poole. ning the airport and therefore lum- Even at these traffic volumes, the new The then-Director-General of Trans- bered with the cost, which we now airport would only have been viable at port George Mahlalela defended the know nearly trebled from the original what turned out to be unreasonably decision to build KSIA and criticised estimates. The consequences of that optimistic project cost estimates. the former CEO of ACSA for being decision have suffocated ACSA’s finan- ACSA came under heavy pressure critical of the proposal to construct it cial viability and effectively forced it from across the political spectrum to earlier than deemed necessary. to abandon the commercial mandate construct KSIA prematurely. However, ACSA thus embarked on its capex it is required by law to uphold. To all as late as March 2010 its economic programme without an equity injec- intents and purposes, ACSA no longer value was still being questioned by tion, relying instead on a massive es- operates as a company but as a devel- the CEO of the Board of Airline Repre- calation in debt imposed on it by the opmental arm of the government, de- sentatives of South Africa, Alan Moore: government and the regulator. In 2015 termined to advance the ambitions of “There is nothing at this airport that ACSA’s board approved capital ex- the modern Zulu empire. would have warranted the spend on penditure of R52.4bn over the 10 years In 2006, ACSA had interest-bearing the facility... The new facility was to 2025, despite not having the capital borrowings of R118m, equivalent to built with little or no consideration of and that its airports were operating at 5.4% of revenue. Today, borrowings the general aviation community and only 63%-68% of design capacity and exceed R10bn, more than 117% of a number of operators in the Durban forecast returns would be insufficient revenue. Most of this increase in bor- sector are under threat.” to fund borrowings of R52.4bn. rowings relates to the construction of International Air Transport Asso- “ACSA is allowed to give notice to the KSIA. In 2013 the Presidential Review ciation (IATA’s) Director for Industry regulator that it intends to close an air- Committee of State-Owned Enter- Charges: Fuel and Taxation, Jeff Poole, port if it is not commercially viable, but prises likewise challenged the logic of stated at the time: “Quite simply, the to my knowledge ACSA has not done so building the airport: “It was clear that extravagance that is King Shaka In- in respect of KSIA. Were it to do so the the commercial viability of ACSA was ternational Airport cannot be justified. regulator is required to make recom- negatively affected by the pursuit of There is no sustainable business case mendations to the Minister of Trans- a national interest. ACSA carried the underpinning its rushed development. port and the minister may compensate lion’s share of the funding that was re- Local and international airlines agree ACSA for the continued operation until quired, and the regulator forced ACSA it becomes commercially viable. To my to rely on borrowed funds.” knowledge ACSA has not sought com- The contract to build the new airport pensation from the government for the and the first phase of the Dube Trade- uneconomic KSIA,” says Alun Frost, in- port, north of Durban, was won by the ACSA is no longer vestment manager at African Harvest, Ilembe Consortium, headed by Group one of the minority shareholders. Five and WBHO Construction. Both operating as a What’s happening at ACSA is hap- companies featured prominently in the pening across the public sector. Private Competition Commission’s investiga- investors are deserting the bond auc- tion into bid-rigging and collusive ten- company but as tions held by state-owned companies, dering in the construction industry. leaving it to the PIC – the government’s ACSA was not in principle opposed current go-to source of victim capital – to the construction of the new airport a developmental to pick up what is now officially junk but did not consider it necessary or credit, thereby further imperilling the even viable before 2017 to 2020, which arm of the pensions of public servants. is when traffic through Durban Inter- The message is clear: next time a national Airport is expected to reach government minister comes up with a five million passengers a year. Traffic government grand investment scheme, run for the volumes have yet to hit that level and hills. n

NOSEWEEK May 2017 25 Books LEN ASHTON

Grins and groans. Funny business

OT GETTING OUT MUCH? LIFE A and amusing antics of Jeremy Clarke’s million shades of grey? Despair “Low Life” column; from the murderously not: a dose of this rich stew of pointed political invective of Rod Liddle to Spectator delights is the cure. the surreal wonders of the “Dear Mary” Readers unacquainted with the THE SPECTATOR BOOK advice column; and the unexpectedly brilliantN cast of columnists who make OF WIT, HUMOUR, perceptive diary notes of actress Joan this topical British weekly magazine a AND MISCHIEF Collins. Even the “Readers’ Letters” make feast of character and controversy are Edited by for satisfying reading. in for a treat. And auld acquaintance will Marcus Berkman “Dear Mary” is a legendary purveyor rejoice. (Little, Brown) of wisdom, some of which might, just Subscriptions to imported publications possibly, represent rebukes to idiocy. A are prohibitive these days, but at least worried reader writes to inquire about devotees can source online pleasure. And the right thing to do when, hampered by the true devotees think it well worthwhile a champagne glass, it becomes necessary to shell out a crore rupees occasionally for to applaud. She advises that gentlemen the actual magazine, opin- unbutton the bottom three ions, cartoons, provocations buttons on your shirt. “You and all. will find that slapping the The aptly titled magnum stomach will produce a very of selections from 1990 realistic clapping noise at the onwards, compiled by the same time as helping to loosen publication’s former pop up the proceedings”. music columnist Marcus Rod Liddle, in a memo- Berkmann (Pop? In a rably scathing review of hap- serious publication? Dis- less Ed Milliband’s TV grilling graceful!) is absolutely deli- by Jeremy Paxman, accuses cious. Pray forgive the foodie Milliband of repeatedly duck- vocabulary: the parlous ing questions with “You can’t state of South African jour- expect me to answer that.” nalism has left us starved “The questions weren’t im- of articulacy, of savouring pertinent, personal, or irrel- the absurdities of life, and evant. Paxo didn’t ask him if speaking without fear of the he masturbated regularly.” PC police. Spectator toler- Liddle was infuriated by the ates all manner of opinion. fact that a politician with high The recent hysteria ambition should evade legiti- surrounding Helen Zille’s mate questions, and snarled: self-evident statement “The nerve we have, expecting about the possible existence to be told stuff, expecting of non-wicked whites would politicians to engage”. Would baffle the Spectator mind. Is that the South African voter it true, or is it not? That’s the could set Liddle on our own question. Truth is the crite- politicians, as they dodge and rion. Speccie writers present dive in the face of the mildest a menu of extraordinary media inquiries. range: intelligent, coher- In a mad world, Spectator ent, passionate, funny, often fights for good sense, right- outrageous. Never boring. eous protest, and as much From the cool reason of laughter as we can squeeze the editorials, to the moving out of the chaos. n

26 Down and Out ANNE SUSSKIND

Goodness me. Keep trying

N A DO-GOODER FRAME OF MIND, In March she brought to her private Noseweek’s intrepid correspon- gallery in Sydney an exhibition of the dent [Please God, not another one! works of Japanese architect Shigeru – Ed.] last year ventured out of Ban, best known for his work with pa- Sydney’s eastern suburbs to see if per, recycled carbon tubes and bamboo sheI could be of any use at the Asylum used for low-cost emergency housing. Seekers Centre in the somewhat less Sherman’s husband Brian founded salubrious Newtown. Helping with the animal rights think-tank Voiceless, communications, or teaching English, Ronni Kahn which champions the rights of factory- perhaps. As it turned out, there were farmed animals. The couple also funds over 2,000 volunteers on the centre’s medical research – specifically, these wait-list. Since then, she has applied greatest joy was chasing a ball around days, into a rare genetic disorder affect- twice and twice been knocked back for a tennis court, who did yoga and had no ing two of their grandchildren, meaning volunteer roles. family history of bowel cancer. And yet, they cannot walk or talk. Every year The latest email is seeking coaches there it was, plain to see… I collected the Shermans bring together 20-or-so to help prepare asylum seekers for job the stool samples and sent them off, researchers from around the globe and interviews: a day a week, half with the hoping to hear nothing more, hoping to “lock them in a room together” to up- interview subject, and half researching hide somewhere within the herd. Now, date each other. the company and the specifics of the aged 55, I find myself on the outer edge With mainstream print media having job being sought. But the centre warns: of that herd…” collapsed in a heap, your everyday do- “Please Note: Due to our limited capac- Joburg-born Ronni Kahn’s OzHar- gooder columnist has ended up working ity in staffing and overwhelming num- vest, which hit the 60-million mark for for a union whose members are on the ber of applications received, only short- free delivered meals of non-perishable receiving end of public service job cuts. listed applicants will be contacted.” Do high-quality food to charities, has gen- All day I hear tales from bewildered not call, questions and inquiries should erated spin-offs in the UK (with Camil- people who’d thought they had jobs for be emailed. la Parker Bowles as a patron) and in life, now thrown on the scrap heap as One of Australia’s best-loved TV New Zealand. Kahn, a former events privatisation of government services presenters – South African import An- organiser, started OzHarvest in 2004. bite – made redundant, in corporate- ton Enus – has gone public about his The “food rescue charity” collects sur- speak. Those who survive the cullings bowel cancer to raise awareness of the plus food daily from delis, takeaways, complain of being over-worked, doing country’s second-highest cause of can- boardrooms, hotels and restaurants, the jobs of two or three, and of being cer deaths after lung cancer. Enus is producers, growers, farmers and fields, shunted aside for bosses who are way definitely on the side of the angels. De- and delivers it to about 600 charities younger than them – and more techno- scribed in the Sydney Morning Herald nationally. logically adept. as “utterly handsome and extremely “OzHarvest has brought wagyu beef Even in Australia, far from the world’s svelt”, Enus says he has the National to the poor, and whole salmon, raw and hotspots, it is starting to feel as though Bowel Cancer Screening Program to cooked food from the finest restaurants, we are living on a time bomb. Signs of thank for detection of his illness. Avail- and even the leftovers from MasterChef decay: MP Barnaby Joyce wants the able to all Australians from the age of and other TV cookery shows,” says the state emblem of Victoria, Leadbeater’s 50, it includes a home test kit that ar- Sydney Morning Herald. Kahn was Possum – which was declared endan- rives free in the mail. instrumental in changing legislation gered in 2015 – taken off the list so The former SABC newsreader, who in several states that had prevented that logging can proceed apace in the is said by friends to be doing well af- food donors from supplying excess food. possum’s favourite forests. The historic ter completing radiation and chemo, Now, companies and registered busi- moratorium on logging in Tasmania’s recently wrote of his shock diagnosis: nesses are protected under the Civil Li- old growth forests may be overturned “The one who’d given up eating meat abilities Amendment (Food Donations) to create jobs. more than three decades before, who’d Act and Health acts. And MP Peter Dutton said recently never been a smoker and no more than Making her mark in the art and de- that the government “won’t be bullied” a glass-with-dinner kind of drinker. sign world is Dr Gene Sherman, who by CEOs campaigning for same-sex The one who ran marathons and whose emigrated from Johannesburg in 1976. marriage. Sigh. n

NOSEWEEK May 2017 27 Letter from Umjindi BHEKI MASHILE

TV trash. Spoiling the child

K NOSEY ONES, BEFORE I GET TO aware of the Broadcasting Complaints by comic Loyiso Gwala. Although it was the rubbish that has seemingly Commission’s (BCCSA) code of con- aired after 9pm the profanity in his act become the norm on our tel- duct they claim to adhere to. The code was enough to make a brother from the evision screens, a quick update says, in part, they must not broadcast hood proud. It seems Loyiso cannot be on my inflated-debt battle. As programming intended for adult au- funny without the f-word. IO reported previously, the matter was diences before the watershed period And while we are on the f-word, it going to be postponed. Since then it of 9pm-5am which contains scenes of would appear that nearly all the pro- has been postponed again twice and is explicit violence and/or sexual conduct grammes – so-called telenovelas or now due set to be heard on 31 May. The and/or nudity and/or grossly offensive whatever they call this locally made, postponements were granted at my re- language intended for adult audiences. extremely violence-driven rubbish such quest, since I felt my attorney had not Wow, who at the SABC are the Gen- as the show Heist, has made the f-word prepared properly by thoroughly fa- erations team paying off? This show is a prerequisite for their scripts. miliarising himself with the necessary aired at 8pm and is reportedly the most The BCCSA code also states that pro- info: the Schedule of Particulars and widely watched soapy. However, it has grammes should not be harmful. Well, the Debt Collectors Amendment Bill of gone from featuring humorous charac- Nosey ones, clearly these channels are 2016. Without these two pieces of leg- ters such as Queen Moroka, wholesome airing harmful content. Case in point: islation as our basis for argument, we ones such as Archie Moroka, to what during a recent family gathering I be- have nothing, zero, goose-egg. can only be described as pure smut. gan using the f-word while talking to Ignorance of this is exactly what al- Storylines have included a female my sister and nephew, albeit using the lows these debt collectors, particularly character subjected to S&M who com- f-word in a casual manner, American- the law-firm ones, to fleece us. mits suicide; a character who throws style. Since my sister and I grew up And, as I also pointed out before, the a woman off a balcony; and another in that country, it’s no big deal to say clerks of the court – to my disgust – storyline where a woman is kidnapped something like, Wow, he’s dead? I just were not familiar with these two docu- and held captive. Let’s not forget the saw the f***in’ guy in town just a few ments intended to assist complainants woman forced to sleep with a brother days ago. What happened? requesting a court taxation, seeing the for the sake of the family since the However, noticing that my nephew’s debt-collector’s costs are in line with other brother is sterile. Promoting this two-year-old son was present, I imme- the schedule of particulars (costs al- crap in this day and age? Generations’ diately said “Sorry guys, I should not be lowed as prescribed by the Department content makes a mockery of the fight using this kind of language with these of Justice). And of course, said costs against violence and abuse of women. kids around (there was also a young must also be in line with the Debt Col- Moreover its rubbish content is aired girl about the same age). My nephew lectors Amendment Bill of 2016. before the watershed period. responded: “Uncle, it’s too late, he uses Surely if the clerks cannot assist Is the SABC allowing this smut for the f-word all the time.” I ask, “Where complainants properly one must make the sake of advertising revenue that is is he getting this from? Certainly not a solid argument to the court. It’s not at its max during this prime-time pe- from me. This is only the second time enough for the court simply to ask, why riod, despite the fact that Gogo and the I’ve seen him since he was born!” My aren’t you paying? They need to start kids are watching at that time? nephew’s response: “He hears it on tel- asking why the debt has ballooned? Let’s look at another example: on 5 evision all the time.” Yes, indeed, this fight I must see March, SABC 1 aired a movie – again Yes, it is said children are very per- through. If Parliament can see the need at 8pm – starring Steven Seagal and ceptive and pick up things easily. But to table and pass the bill, we need to titled Force of Execution. Talk about ex- that is not the point here. The fact is, thank parliamentarians by using it. plicit nudity! The movie showed more if a two-year-old has picked up foul The fight goes on. breasts than all the chicken thighs be- language from hearing it on TV then Alrighty then, now let us look at the ing dumped on our shores. Not forget- clearly we have a problem. rubbish and smut that has become ting, of course, the G-string clad booties. To the scriptwriters of local content: the norm in too many programmes The movie was immediately followed you guys suck. You lack imagination aired particularly by our four chan- by the youth programme Selimathunzi. and creativity. All your scripts have one nels accessible to everyone – e.tv and So much for the code ha? common theme, violence. Not to men- the three SABCs. A review of too many And another example: in late March, tion your obsessive use of the f-word. programmes aired by these four makes with the culprit here being SABC 2, the Do we really need more cheap shock- one wonder whether they are even public broadcaster aired a performance horror right now? n

28 Last Word HAROLD STRACHAN

Giraffe Braai. Tall tales

TELL YOU, FEW THINGS ARE MESSIER steel and hot blood squirting all we hung the biltong in there with to work with than that polyethyl- about so they call me in as mosquito netting over the ventila- ene wood glue in a squeezy plastic a contractor. And you aren’t tion holes to keep the flies out. bottle. But for sure it’s tougher squeamish about the poor The torso was problematic too, than timber itself. I don a butch- suffering animal, says she being so big, but I sawed it open er-typeI long stripey apron and set to with some scorn. We-e-ell, down the thorax and spread on a batch of artists’ canvas stretcher not exactly, say I; I don’t it out flat like a kipper frames down in my workshop, and use cold steel, see, I remove then we fixed a chain to sharpen up my kitchen cutlery on the the head with a chain saw. each leg and lifted it up grindstone while I’m about it. Tralala, Quick, quick and painless. with a construction I sing a cheerful song, Mozart, but this They have this small room crane with a long arm is a dull way to spend a beautiful win- for it so the congregation and suspended it over ter morning in Durbs, man, and it’s doesn’t get sprayed all over the fire. Turned out not long ere I get a bit teatime-ish and by the splash of blood, then a splendid idea, we set off back to the flat for a cuppa in afterwards I take a nice hot could raise and lower my lush subtropical garden. shower and it’s over in half the giraffe for deli- At my parked car stands a certain an hour. Profitable work. cate slow browning Mrs Bhamjee from over the road. Last year I did a giraffe and from time to She coldly introduces herself. Do you for a Christmas braaivleis time swing it away kill animals? she asks. Sometimes it in Orania, say I. It’s a from the fire entirely happens, say I, you know, cats mostly, communal thing there, so the Fire Brigade but why do you ask? Because of your everybody chips in and could squirt it all butcher’s clothes and tools, says she; every year they buy over with Mev Balls do you mean to tell me people eat a different species se Spesiale Orania cats? Thai people do, say I. If they of wildlife in Braaispesery. bring their own it’s half-price, some- memory of Pres They’ve booked a times I cut them up in small cubes to Paul Kruger black market hippo order for a special sort of curry they who loved for next year. The favour in Thailand. Immigrants from hunting and Orania librarian Hong Kong like snakes for a Chinese braais. Fuel is discovered that chow mein, they bring their own puff- problematic, of course, back in the 1500s adders and mambas and stuff and true Afrikaners don’t use a certain monk I slice them up on a bandsaw like supermarket charcoal, in Moçambique polony only narrower and thicker. Also hey, but good dense tradi- applied to the Pope tortoises scooped out. tional hardwoods: olien- to have the hippo- Mrs Bhamjee turns down the hout, ysterhout, that potamus declared a fish corners of her mouth in contempt. I sort of brandstof, but for the ritual Friday supper because don’t suppose you have a licence for it’s scarce and a fire crocodiles had cleaned out the it, says she. Well-er-no, say I, and I including this giraffe’s Maputo River, and the Orania Braai get paid in bank notes so I don’t tell neck would be simply too expensive, so Committee has now decided to put SARS either. Even when I do sacri- I cut the head off at the shoulder and this to the taste-bud test. Of course ficial goats I get paid in cash. Seven they turned the neck into long strips of I should have to do it in its big crate hundred rands. Small goats five biltong and got a record in the Guiness with the chain saw, but the saw may hundred. You murder goats on your Book and the editor said they’d never be too small and maybe I’ll just turn premises? says she with a mixture of heard of such a thing before. it loose and shoot it with a rocket- disgust and alarm. Oh no no! say I, The Orania Fire Brigade doesn’t use propelled grenade. I put on this, my special apron, and those old-time canvas hoses anymore I think you are an absolute b*st*rd do it in a special place of ritual at a but nylon-reinforced polypropylene says Mrs Bhamjee and I’m never certain temple. Many priests agree which doesn’t need drying out after going to speak to you again! A pity, with killing the goat, you see, but get use, so that tall drying tower that say I, I was just starting to enjoy your a bit squeamish when it comes to cold fire stations have was not in use and company. n

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