Global South African News Wrap 06 July 2012

7/31/2019 Global South African News Wrap 06 July 2012

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Global South African Weekly News Wrap Up 06 July

2012

Contents

Malema teaches Zuma about Freedom Charter ....................................................... 2Minister calls for control of Africas mines ............................................................... 5ANCs move on mining concerning, says Fitch ...................................................... 6Concern at ANC plan to limit sales of platinum ....................................................... 8Mines must join policy debate, says Cutifani .......................................................... 10ANC seizes middle ground on land reform ............................................................. 11New Land Bank scheme to provide emerging farmers with affordable loans ..... 13Mine proposals will hurt sectorAnglo ................................................................ 14Disparities in SA steadfastly narrowing, say the numbers .................................... 15Lobby out to nationalise strategic companies ....................................................... 18Maritime draft policy will soon be given to Cabinet............................................ 19Business to study bridging income gap .................................................................... 21Zuma seeks DA submission on top judge candidates ............................................. 23Metcalfe to head probe on textbooks debacle.......................................................... 24World cup an example: Zuma .................................................................................. 25Banks are greedy monstersGordhan .................................................................... 26ANCYL saved JZMalema ...................................................................................... 28Nationalisation debate to stay ................................................................................... 28Zuma 'fears jail' if he loses re-electionJuju ......................................................... 30Policy meeting rejects wage subsidy ......................................................................... 31The ANC is Zuma's shield ......................................................................................... 33Info Bill: 2 errant MPs off hook? ............................................................................. 36S.Africa mine union revolt shows cracks in ANC rule ........................................... 37Vavi promises change of mindset in Cosatu ......................................................... 40KwaZulu-Natal coalition shows signs of fracture ................................................... 42Sisulu calls for suspension of possible Zuma jet deal ............................................. 44SA seeks solution to wage disparity .......................................................................... 45ANC caught in policy quagmire ............................................................................... 47

ANC policy is as clear as mud ................................................................................... 49ANC obstacles in Zumas path to Mangaung.......................................................... 51Fights at ANC Indaba ................................................................................................ 52Zumas new bling Boeing to cost R2bn .................................................................... 55ANC keeps lid on succession battles ......................................................................... 57ANC puts cart before horse on jobs ......................................................................... 59


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1 July 2012The Sunday IndependentJulius Malema

Malema teaches Zuma about Freedom Charter

In his opening address to the ANC fourth policy conference at the GallagherConvention Centre, President Jacob Zuma made many observations that, althoughpresented in a contradictory manner, confirmed the many assertions and observationsof the ANC Youth League in the struggle for economic freedom in our lifetime.

While the address was delivered on June 26, the 57th anniversary of the FreedomCharter, little mention and reference was made to this seminal strategic mission.

Not paying adequate attention to the Freedom Charter in an ANC gathering and on theday the Freedom Charter was adopted 57 years ago represents political negligence,which seeks to undermine this important document.

In an attempt to define the nature of SAs transition, the political opening addressdelivered on behalf of the national executive committee (NEC) of the ANCacknowledged that Codesa (the Convention for a Democratic SA) represented astrategic retreat and detour from the original perspectives and commitments of theliberation movement, particularly as it relates to the economy.

Summing up these observations, the opening political address of the NEC said:

Among underlying causes of the slow pace towards economic freedom, is the factthat ahead of the 1994 breakthrough, we had to make certain compromises in thenational interest we had to be cautious about restructuring the economy, to mainta ineconomic stability and confidence Thus, the economic power relations of theapartheid era have in the main remained intact. The ownership of the economy is still

primarily in the hands of white males.

The observations that the past 18 years have been defined by slow progress towardsattainment of economic freedom, and that the economy is still in the hands of whitemales, are the central messages the ANC Youth League has been championing.

The youth league has been saying we need to fundamentally change the apartheidcapitalist class relations, which favoured white minorities as the only owners of themeans of production, while the black majority were turned into slaves and wagelabourers.

We were labelled racist and inconsiderate of SAs negotiated transition when wespoke about and exposed the fact that the economy was still in white males hands,but President Zuma shines when he verbatimly makes reference to what we havealways said.

The other aspect that came vividly from the opening political address is an assertion

that we need to take the difficult decisions that we could not take in 1994, with


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regards the economy. This is the clarion call by the youth league on its programmeof action for economic freedom in our lifetime.

The youth league discussion documents on nationalisation of mines and on economicfreedom dedicate adequate attention to the political foundation of the need to intensify

economic freedom.

That political foundation is the national democratic revolution, the aim of which is toattain all Freedom Charter objectives through concurrent resolution of the national,class and gender contradictions that defined SAs colonialism.

We never tried to disjoint the struggle for economic freedom as a separate strugglebecause we appreciate that the struggle the ANC is pursuing is simultaneouslyintended at the attainment of political, social and economic freedom.

In discussing the question of state intervention in the minerals sector, President Zuma

said: We must go deeper than the nationalise or not nationalise debate as thediscussion document indicates.

This is a deliberate affront to trivialise the ANC national general council (NGC)resolution that unequivocally said, there was greater consensus in the commiss ion onthe nationalisation of mines and other strategic sectors of the economy. The NGCtherefore mandated the NEC to ensure further work be doneincluding research,study tours and discussionsand to report to the policy conference for a decision atthe national conference in 2012.

This greater consensus is not insignificant and happened because, in the NGC, notonly did 98% endorse nationalisation of mines and other strategic sectors of theeconomy, but all provinces of the ANC, the youth, womens and veterans leaguesand all formations of the mass democratic movement such as Cosatu, Sasco,Contralesa, and Sanco, and the SACP waffled in the plenary session of the NGC.

Any work the ANC NEC had to do should necessarily acknowledge and appreciatethat the second-highest decision-making body of the ANC established greaterconsensus on the nationalisation of mines.

As part of what we call cardinal pillars for economic freedom in our lifetime, the

youth league mentions the intensification of education and training as an importantpillar. Under this pillar, we concretely propose that the state should initiate a fundingscheme that will take South African students to the best universities across the worldto attain skills, knowledge and expertise.In the opening political address, President Zuma said: The youth league has alsoproposed that we look at formal programmes of sending young people to othercountries for training and exposure. This can be looked at in the context of relationswith other countries.

What he fails to acknowledge is that the youth league made formal policysubmissions to the ANC on this matter even before the ANC NGC, and that, in our

address to the youth leagues 65th anniversary rally in Mthatha in the Eastern Cape in


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October 2009, we made the first public call for the scholarship for SA students whomust be sent to the best universities across the world.

Among the many policy submissions we have made is that about the integration andmainstreaming of youth development in South Africa, which we said should find

expression through the establishment and support of the National Youth DevelopmentAgency.

On June 16 2009, we jointly addressed the rally of the government with PresidentZuma in Katlehong, Ekurhuleni, to officially launch the NYDA and announce newlyappointed board members of the NYDA.

In the opening address, President Zuma said the NYDA, with state owned enterprisesand the banking sector, should complement job creation measures and implementationof a job seekers grant for young people.

These are concrete policy matters we brought forth as the youth league and these werenot given attention by the ANC-led government. More than once, President Zumamade the commitment that the funding and support of the NYDA from thegovernment will be enhanced and harnessed, but we all know that what has happenedthus far is the deliberate strangling of the NYDA by the Presidency, which hasrecently disbanded the board of the NYDA before a new one is appointed.

In academic circles, mentioning other peoples ideas as if one is expressing his ownviews, and failure to correctly acknowledge the sources of the ideas one is expressing,amounts to plagiarism.

If this was in academic circles, we would say President Zuma has plagiarised, becausehe deliberately refused to acknowledge the sources of the many observations andideas he expressed in the opening political address and he failed to acknowledge thatvirtually all progressive and developmental proposals made reference to come fromthe youth of the ANC, whom he is so impatient with and does not want to see thrivein the movement.

Failure to acknowledge the sources of these ideals leads to their distortion andmisplacement into non-existent concepts of second transitions, which should never beelevated to any significance in the ANC.

Because we are in the struggle for economic freedom in our lifetime, we appreciate itwhen centreright ideological opponents propagate our ideas because it means what weare fighting for is a just cause. For this reason, our struggle for economic freedom inour lifetime continues and will never be deterred by people of low selfesteem andpretenders who only shine on ideas of others and cannot think on their own.

The opening political address lacked coherence and was ideologically inconsistent inpositing various ideological trends.

The input was also conflicted in whether to acknowledge failure of the ANC

government in the 18 years of democracy and whether there was adequate progress.


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She said African countries also needed to contain the illicit outflowof capital from the continent and use its raw-materials advantage to

attract investment.

It was important to improve transport and telecoms infrastructure tofacilitate trade within the continent, she said.

"We have taken lots of decisions as the AU, but where we have failed is

in the implementation of the decision," she said in what could be readas a swipe at AU chairman Jean Ping, who was running against her.

The speech was followed by an announcement by International Relationsand Co-operation Minister Maite Nkoana-Mashabane at the Sadc meeting,that the regional body was unanimous on the appointment of a woman tolead the AU.

"In this decade of women, from 2010 to 2020, Sadc and the southern

region are presenting again a formidable candidate in respect to the

heads of states resolution to dedicate this decade to women," shesaid.

African leaders will meet in Addis Ababa, Ethiopia for the latest AUsummit this month.

The event was originally scheduled for Lilongwe, Malawi, but it wasmoved after Malawi refused to welcome Sudanese President Omar al-Bashir, a war crimes suspect.

Mr Ping and Ms Dlamini-Zuma squared off for the post in January, butthe election was deadlocked when neither could get the 75% majority

required.

Institute for Security Studies head Jakkie Cilliers said the CPAconference had been a chance for Ms Dlamini-Zuma to make an impressionahead of the AU vote and espouse ANC policy.

3 July 2012Business DayPage 1Mariam Isa

ANCs move on mining concerning, says Fitch

Ratings agency says failure to put nail in coffin of nationalisationat policy conference will deter investors in a sector that is already

struggling due to policy uncertainty

TWO top rating agencies have warned that the African NationalCongresss (ANCs) move towards greater state intervention in the

mining industry at its policy conference is "concerning" and a threatto investor confidence.

All three main global agenciesFitch, Moodys and Standard & Poors

(S&P) have given their credit ratings for South Africa a negativeoutlook, which means the next move could be a downgrade.


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That would raise the cost of borrowing for both South Africa and state-owned entities, and erode investor appetite for local assets.

"The ANCs recent policy conference was deeply concerning and very

disappointing," said Carmen Altenkirch, sovereign director at FitchRatings.

"The failure to put a nail in the coffin of nationalisation and agree

on a way forward for the mining sector will continue to harm a sectorthat has already suffered from a lack of policy clarity."

South Africas mining sector contracted by nearly 17% in the first

quarter, hit by a prolonged strike at Impala Platinum as well assoaring costs for electricity and labour.

Platinum mines have recently been shut down and miners have generallybeen troubled by uncertainty over mooted state intervention in the

sector.

A report, commissioned by the ANC and discussed at the conference,proposed a 50% resource rent tax on mining "super profits", increased

regulation, and price and export controls for minerals seen as"strategic".

No consensus was reached and the contentious topic of nationalisationresurfaced with a vengeance, despite repeated assurances from thegovernment that it was not being considered.

"I see the continuing discussion around nationalisation as somethingthat could be a negative outcome to confidence-sensitive investment,"

said S&Ps MD for South Africa and southern Africa, Konrad Reuss. "TheANC keeps putting the debate to rest and it keeps coming back."

In the end the conference rejected outright nationalisation but fiercesupport for the idea from the ANC Youth League and other party factions

means it is likely to come up again. Policy decisions will be takenonly at the ANCs elective conference in Mangaung in December.

"My worry now is that the lack of detail and lack of commitments from

the conference mean that the general policy debate will be transferredto Mangaung," Nomura economist Peter Attard Montalto said. "That means

potential for a risk event in December is higher with the succession

debate carrying on at the same time, politics will intermingle muchmore aggressively with economic policy."

President Jacob Zuma s leadership will be challenged at the Mangaung

conference, which will decide who will fill all of the ANCs top posts.

Ms Altenkirch said it was a pity that political infighting dominatedlast weeks talks, at a time when decisive leadership was needed to

place South Africa on a higher growth path and reduce unemployment.

Another issue of contention at the conference was an official youthwage subsidy, which appeared to have been scrapped in favour of a

proposed job seekers grant for young people.


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Analysts say this policy could simply create a new welfare payment,rather than the type of job opportunities which would help to reduceSouth Africas youth unemployment rate of 50%. That could ultimatelymake it difficult for the Treasury to achieve its aim of keeping

spending in check and reducing the official budget deficit to 3% ofgross domestic product over the next few years.

"From our perspective, South Africa doesnt have the luxury of going

through any policy experiments or adventures there is no room to

manoeuvre from a credit rating perspective," Mr Reuss said.

He said S&P would take a "wait and see" view over the next few months,until the debate translated into actual policies.

S&P and Fitch have both given South Africa a BBB+ investment graderating, while Moodys rating is one notch higher at A3.

When Moodys put a negative outlook on its rating in November, it said

populist pressure and strains within the ANC could undermine commitmentto low budget deficits and debt targets.

S&P gave South Africas rating a negative outlook in March, warning

that there was scope for a downgrade if economic and social problemsfed into the political debate.

2 July 2012Business DayPage 1Allan Seccombe

Concern at ANC plan to limit sales of platinum

Mining industry and Department of Mineral Resources worried about AfricanNational Congresss proposals

SAs already fragile platinum mining sector could be further damaged shouldproposals contained in a report commissioned by the African National Congress(ANC) into the states role in the minerals sector take effect.

The document, called State Intervention in the Minerals Sector (Sims), has beenroundly criticised by the mining sector and the Department of Mineral Resources,which have warned that its recommendations for a 50% resource rent tax on "superprofits", increased regulation and ring-fencing of certain minerals would provedamaging and drive off investment.

The Sims report suggests export tariffs on platinum salesexcept where tradeagreements prevent thiscapping the price at which the metal may be sold todomestic users, that the metal be subject to exchange controls as gold is, and that SAuse its position as the worlds dominant supplier to negotiate supply and beneficiation

deals with customers.


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It also suggests that a state-owned mining company be given preferential rights tofuture discoveries of platinum group metal (PGM) deposits.

Little clarity on ANC mines policy emerged from the partys policy conference inMidrand last week. But recommendations in the Sims document come against a

backdrop of a platinum sector struggling with stagnant rand prices for the basket ofmetals it produces, and soaring costs as electricity prices and wages rise at above-inflation rates.

"It is important to note that the demand for PGM is derived that is, the use ofplatinum is created and promoted by mining companies, and not driven by the marketitself," Anglo American said in a document feeding into the ANCs policy debate.

"Further, the potential to create new input markets is limited: firstly, the networkeffects of processing further downstream are restricted in terms of product variability(most processing is in the form of manufacturing autocatalysts); secondly, there are

intellectual property rights that protect the technology required in downstreamoperations," said Anglo, which owns 80% of the worlds largest platinum miner,Anglo American Platinum (Amplats).

Amplats has established a R100m PGM development fund to promote technologiesand products using the metals. It is also pushing fuel cell technology, which usesplatinum.

Aquarius Platinum has suspended two mines in recent weeks, taking a third of loss-making production out of circulation. Eastern Platinum has halted work on a100000oz a year PGM project because of the state of the oversupplied market.Amplats is reviewing its operations with a view to restoring the companys profitmargins.

An estimated 120000oz of platinum have been taken out of the system and ImpalaPlatinum has shed about 140000oz due to a six-week strike in the March quarter and aslow return to full production again.

Aquarius CEO, Stuart Murray estimated the market has a surplus of 500000oz ofplatinum because of the slowdown in Europe, a major market for platinum forautocatalysts.

Anglo warned the platinum market was fragile.

"While 80% of the worlds PGMs originate in SA, end users already see SA as anunreliable supply source. If platinum mines in SA use collective producer power toexert dominance over the market, there would be increased incentives for end users tosubstitute or recycle PGMs.

"By artificially increasing the industrial price, demand for platinum will be dampened,posing a direct risk to the health of the market," it said.

Compelling buyers of platinum to set up beneficiation projects could also backfire, itwarned.


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"Forcing platinum miners to negotiate supply and beneficiation-linked contracts withtheir international customers by controlling the sale of platinum through the Treasurywill restrict the supply of platinum to the market. This will result in price increases forplatinum.

"This would compromise the appeal of platinum for industrial uses, which may triggera retaliatory response from customers in the form of increased substitution orrecycling," it said.\

4 July 2012

Business DayPage 1

Allan Seccombe

Mines must join policy debate, says CutifaniNationalisation plan kicked into touch at African National Conference

policy conference

Mining companies must be active in the debate around a mineral policyformulated by the African National Congress (ANC) over the next sixmonths or live with the consequences, one of the countrys mostinfluential mining leaders has warned.

Mark Cutifani, CEO of AngloGold Ashanti , told a Mining For Changeseminar in Johannesburg yesterday that nationalisation as proposed by

various factions in the ANC and its alliance partners has been "kickedinto touch" at the partys policy conference.

This view was opposed by Abiel Mngomezulu, head of parastatal mineral

research company Mintek, who argued that nationalisation would remaintopical as long as communities had expectations about the benefits theindustry should deliver to them.

The mining sector faces six more months of uncertainty after lastweeks ANC policy conference failed to deliver a decisive message tothe minerals sector.

The conference accepted the proposals in the State Intervention in theMinerals Sector report, commissioned by the ANC.

The partys policies will be finalised at its electoral conference inDecember, giving the industry until then to participate in the

formulation of that policy.

"I observe a revolutionary movement and a political party all mixed upin one set of conversations. Im not sure how you could come out with

definitive conversations in a policy conference. That will probablycome after youve nominated the people who have to sell the message,"said Mr Cutifani, who is vice-president of the Chamber of Mines.


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"At least the things that really worried us werent ticked (at thepolicy conference) and in fact you could see people wanting to get thebalance right. Theres a lot more work to be done on sharpening themessage and thats where wed like to see the ANC and the government

focus its conversations in the next six months," he said. "As anindustry, theres an opportunity for us to be part of the debate and

wed better take it or, at the end of the day, we cant complain aboutthe result if we dont like it."

Mr Cutifani said the debate had moved away from nationalisation. "Impleased to say I think weve kicked that ball (nationalisation) intotouch. I think the debate has morphed into something that is much more

constructive, which is the role of the state in the minerals industryand the role of companies in creating a better society."

Mr Mngomezulu, who spent nearly eights years in senior positions in theDepartment of Minerals and Energy, said the nationalisation debate was

nowhere near resolved. "Everybody from this weekend was saying that

nationalisation is off the table. I dont think so," Mr Mngomezulusaid. Unrealised expectations of what mines could deliver tocommunities had fuelled the calls for their nationalisation, he added.

"Even if we form a state mining company it is going to have the sameproblem the private sector companies are facing expectations from

communities which are expecting things that are impossible," said MrMngomezulu, a nonexecutive director of state mining company AfricanExploration, Mining and Finance Company.

Communities had to be educated on what their involvement would be andregulations were needed to outline companies responsibilities so

everyone clearly understood what benefits could come from mines, hesaid.

A lot of changes needed to be made to existing regulations, said FaithBikani, an ANC MP who serves on the parliamentary portfolio committee

on mineral resources. These included changes to the Mining Charter.

Ms Bikani ruled out any nationalisation of mines.

"Its just not possible," she said, adding that the state could barelyafford to deal with the legacy of ownerless and derelict mines.

2 July 2012Business DayPage 3Natasha Marrian

ANC seizes middle ground on land reform

The African National Congress (ANC) policy conference recommended a "sober"approach to land redistribution, through replacing the failed willing-buyer, willing-

seller method with expropriation in line with Section 25 of the constitution.


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There were fears from opposition parties and agricultural groups that the ruling partywould tamper with the property clause, and remove the right to compensation.

The land question was the subject of heated debate with the ANC Youth League andthe National Union of Metalworkers of SA calling for expropriation without

compensation, by amending the property clause.

AgriSA deputy executive director Johan Pienaar welcomed the ANCs approach tothe constitution.

"Were very glad, its a very positive development. The expropriation act has alsobeen up for review for a long time," he said.

He said the position emerging from the conference was in line with the green paper onland reform and AgriSA would continue to engage with the government on the paper.

Earlier drafts of the ANCs now modified strategy and tactics document had includedamending the property clause. However, the policy conference took decisions which,in the case of land in particular, appear to mirror policies already in play by thegovernment.

Agriculture Minister and ANC national executive committee member Tina Joemat-Pettersson said on Friday there was no need for the party to change the constitution asit already made room for expropriation for the "common good".

Section 25 states that no one may be deprived of property except in terms of the lawof general application and no one may "permit arbitrary deprivation of property". Thesection provides for the expropriation of land "for a public purpose or in the publicinterest" and is "subject to compensation", the amount and timing of which should beagreed to by those affected or decided or approved by a court.

The proposals around land would be refined and would only become policy if agreedupon at the national conference in December.

The willing-buyer, willing-seller approach would be replaced with the provisions ofSection 25 to speed up land reform. However, the state would no longer fixate ontargets.

"Targets are not the main objective, the main objective is land utilisation," MsJoemat-Pettersson said. The target was to redistribute 30% of SA s farm land by2014.

The long-awaited land audit would also be fast tracked and completed by Decemberthis year, to assist the state to determine the extent of its ownership of land in thecountry. "The state will intervene to buy and allocate land," she said.

The ANC also disagreed "in principle" with foreign ownership of land but this "didnot mean the expropriation of the land of foreigners". Foreigners may acquire "long

leases" for South African land.


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5 July 2012Business Day

Page 4Hopewell Radebe

New Land Bank scheme to provide emerging farmerswith affordable loans

The Land Bank has secured a funding arrangement with the African

Development Bank (AfDB), allowing South African farmers to access aR1bn fund.

The facility is the first significant international funding for the

state-owned Land Bank since the Treasury intervened in 2009 to save theinstitution from possible collapse after a period of mismanagement, and

is indicative of a growing confidence in the banks operations.

Last year the bank acquired Afgri s Gro Capital division debtor book,

valued at about R2,4bn.

In April the bank established the Nerpo Farm Machinery andInfrastructural Improvement Fund administered by Nerpo Financial

Services a subsidiary of Nerpo Group.

These vehicles were meant to assist the bank as it sought to extend itsreach to farmers in rural areas.

Land Bank CEO Phakamani Hadebe said yesterday the AfDB loan was in

rands instead of dollars, which meant there were no currency hedgingcosts involved. "It has been offered with a two-year grace period onrepayment, which enables the Bank to provide funding to emergingfarmers that is tailor-made to their specific cash flow requirements.

"Borrowing requires a grace period in both capital and interestcomponents of the loan until the project or farm starts generating cashflow to service the debt while benefiting the emerging farmers from thetwo-year grace period offered by the facility," he said.

"The facility therefore goes a long way in mitigating risks associatedwith financing few farmers," Mr Hadebe said.

Land Bank acting chief strategy officer Greg van Wyk said the facility

has been structured in a way allowing emerging farmers to accessfinance from a R500m pool tailored-made for start-ups, with establishedfarmers benefiting from the rest of the funding.

"This approach will go a long way in balancing the developmentalimperative of the mandate, while at the same time implementing prudentfinancing principles associated with an economically sustainablefinancial institution," Mr van Wyk said.

In his budget speech in February, Finance Minister Pravin Gordhan said

the recapitalisation of the Land Bank would be completed this year witha final payment of R1bn.


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The banks turnaround strategy has given a boost to its performing loan

book, which grew 47,4% from R13,6bn in 2010-11 to R20,1bn in 2011-12.

29 June 2012

Business Day

Page 2

Allan Seccombe

Mine proposals will hurt sector Anglo

The Department of Mineral Resources, the Chamber of Mines and Anglo Americanhave all found the State Intervention in the Minerals Sector document to be faulty

Recommendations from a study commissioned by the African National Congress

(ANC) into the states role in the minerals sector are out of step with thegovernments economic policies and would damage the mining industry, said keyindustry stakeholders in submissions to the ANC.

The Department of Mineral Resources, the Chamber of Mines and Anglo Americanhave all found the State Intervention in the Minerals Sector (Sims) document to befaulty.

They also said through exaggerated assumptions of what gains the mining sector canbring to the economy, the document could result in more taxes, uncertainty andregulations that the industry could ill afford.

The three parties have made submissions for the ANC to consider in its policydiscussions this week.

However, submissions from the department and the chamber in the possession ofBusiness Day both addressed particular points raised in the Sims document, with littleto offer in the way of alternatives.

Anglo made suggestions in three core commoditiesiron ore, platinum and coal.According to Anglo, the Chamber of Mines, in a submission to the Sims committee,said SA is losing between R5bn and R10bn a year in mining investments because ofregulatory constraints.

Anglo pointed out a number of factual faults in the Sims document in which theauthors blamed Anglos subsidiaries in SA for charging import parity prices forcommodities rather than export parity prices, which are lower. "The design of far-reaching interventions based on factual errors is extremely concerning to AngloAmerican .

"Anglo submits that the implementation of the Sims proposals in concert would beextremely harmful to the mining industry," it said.


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Anglo warned that the focus on the mining industry to solve SAs social andeconomic ills was misplaced and the heavier tax burden on mining companies,especially related to a proposed mineral resource rent tax of 50% on profits over about15% of "normal returns", would curtail investment inflows as would the restrictionson exports of strategic minerals and changes to mining regulations.

"While critically important to SA, and while Anglo commits to leveraging mining forgreater development, mining should not be seen as a silver bullet for all SAssocioeconomic ills."

The Department of Mineral Resources rejected the Sims proposal for a super ministryencompassing those related to the economy, noting there was already a high level ofengagement between departments. The department also blamed a lack of funding to itfor the lack of progress made in establishing upstream and downstream industriesrelated to the sector.

The department said since the Mineral and Petroleum Resources Development Actwas implemented in 2004 it had not been allocated funding to implement thebeneficiation strategy laid out in the act.

The constraints meant it had a staff of less than 20 to deploy to regulate, monitor andenforce compliance at about 1500 mines.

5 July 2012

Business DayPage 9Lucy Holborn

Disparities in SA steadfastly narrowing, say thenumbers

The overall message that nothing has changed and that we thereforeneed to adopt more radical policies is wrong

The African National Congress (ANC) policy conference has raised anissue that comes to the fore frequently in policy debate in South

Africa. This is the question of ownership or control of the economy.

President Jacob Zuma and Finance Minister Pravin Gordhan have declaredthat the economy "is still primarily in the hands of white males".

As is often the case with political rhetoric, the reality is much more

complex. In suggesting that white South Africans are on the whole moreeconomically empowered than their black compatriots, they areabsolutely right. But the overall message that nothing has changedand that we therefore need to adopt more radical policies is wrong.

Part of the problem is that too often the debate about ownership of theeconomy rages on without anyone stopping to define what they mean by

ownership or control.


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Does it mean ownership of the JSE?

What about ownership of unlisted companies? What about other forms ofeconomic advantage, such as home ownership, ownership of land, income

levels and senior management positions?

If we look at all of these, the picture is mixed, but it is generallyone of continuing, yet narrowing, disparities between white and black.

In 2000, if state and foreign ownership of the JSE is excluded, 23% ofindividual ownership was in the hands of black (African, coloured andIndian) South Africans, against 77% owned by whites. By 2010, this hadgone up to 34% black ownership and 66% white ownership, according todata from economists.co.za. The JSEs own research puts the figure at aslightly more conservative 28% for black ownership.

Ownership of shares in JSE retirement funds has gone from 23% black and

77% white in 1995, to 37% black and 63% white in 2010. However, these

statistics capture ownership of listed shares only. Economists.co.zaestimates that 47% of unlisted businesses are owned by black SouthAfricans and 53% by whites, although this does not capture the value of

such businesses. Estimates of net private ownership of assets (thevalue of assets minus debt) suggest that the net value of white-ownedassets stands at about one-and-a-half times that of black-owned assets,

although if this is calculated on a per-capita basis, the ratio risesto 13:1, white to black.

Home ownership statistics from Statistics S A show 91% of homes that

are owned and fully paid off are owned by black people, compared with9% by whites. If value is taken into account, economists.co.za

estimates that 57% of the value of all property is in black handscompared with 43% in white. Based on land-reform data published by the

government, the South African Institute of Race Relations hascalculated that as much as 44% of privately owned land (thereforeexcluding land owned by the state) is in black hands.

As far as incomes are concerned, IHS Global Insight suggests that per-capita incomes of whites were seven times higher than those of Africansin 2010, although their data show African incomes have been rising at a

faster rate than those of other race groups since 1996.

Data from the Commission for Employment Equity show the proportion of

top managers who are black has gone up from 13% in 2000 to 24% in 2010.

In some way, these statistics prove the likes of Zuma right; there arestill significant inequalities in income, wealth and general economicempowerment between races.

In saying so, he is admitting the ANCs policies aimed at rectifying

apartheid-era inequalities have failed.

However, Zuma could be doing his party and government a disservice. The

trends do show some positive changes in patterns of ownership andincomes.


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Yet it seems the ANC is not arguing this, because it along with manyoutside the party recognises that much more progress could have been

made.

Policies put in place after 1994 have failed to sufficiently transformpatterns of wealth and income and have left nearly 20-million black

South Africans living in relative poverty, and up to 2,5-million peopleliving in absolute poverty on less than $2 a day.

The policies have failed for a number of reasons. One is thatemployment equity and black economic empowerment legislation havepushed whites into entrepreneurial activity, which might explain whythe growth of white incomes has largely kept pace with that ofpreviously disadvantaged groups that are supposed to have benefitedfrom this legislation. At the same time, affirmative action in its

various forms has created a disincentive for black people to set up andown businesses that could have raised their share of the productive

parts of the economy.

The second reason is that the government has used social grants, andnot rising employment, to lift millions out of the worst poverty. While

it is a good thing that so many people who otherwise might not have anincome have some means of basic survival, it has not significantlychanged opportunities for that large mass of people to participate in

economic activity and benefit from it.

In fact, some would argue it has created dependency among poor blackpeople and has been a disincentive to a culture of entrepreneurial

activity and self-help that has been witnessed among similar classes inother postcolonial economies.

Indeed, the failure to address high unemployment is the third reason

there has not been a significant shift in patterns of income andownership. The unemployment rate among Africans has risen from 24,7% in1994 to 29,1% this year. The unemployment rate among whites, while it

has gone up from 3% in 1994, remains below those of many developedeconomies, at 6,1%.

Strict labour regulation and powerful unions have led many businesses

to replace low-skilled labour with greater mechanisation or to avoidhiring extra workers, with the greatest effect being on historically

lower-skilled black workers.

The state of the education system is the fourth reason the governmenthas failed to do more to transform patterns of ownership and wealth.While it has succeeded in improving access and attendance, the qualityof education provided in the vast majority of public schools upon whichmillions of relatively poor black pupils rely means another generation

of black youth is entering the economy (if they ever manage to do so)with a significant disadvantage compared with their white peers.

Matric pass rates sum this up: 63% of African pupils passed matric

compared with 79% of white pupils in 2010. In 2008, only 13% of Africanpupils passed well enough to gain admission to university. The number

of black graduates from university has started to outstrip the numberof white, but this has been only fairly recently.


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These four reasons present four relatively straightforward solutions to

the problem Zuma and the ANC have rightly identified. The problem isnot exactly that control of the economy is still in white hands, it is

rather that still too few people have the necessary education, skillsand opportunities to take part in and benefit from the economy.

Therefore, the solution is not to shift greater control of the economy

to the state which is what policies such as nationalisation and landexpropriation without compensation aim to do, and which recent historyelsewhere tells us will harm the poorest even more.

5 July 2012Business Day

Page 1Sam Mkokeli

Lobby out to nationalise strategic companies

ANC delegates from six provinces pushed for mines to be taken over atpolicy conference, and a resurgent push at Mangaung in December couldcreate further unease over South Africas policy direction and deter

investment

In the vacuum left by the inconclusive outcome of last weeks African

National Congress (ANC) policy conference, a strong lobby has emergedto promote the idea of the state taking over strategic minerals and

companies such as Sasol and ArcelorMittal.

The conference endorsed the idea of "strategic nationalisation" if itwas backed by the "balance of evidence" a nebulous term which anyfaction can interpret to support its case.

Delegates from six of the nine provinces last week pushed for mines and

companies in the steel and energy industries to be taken over a movethat is being celebrated by the ANC Youth League and many provinces.

The provinces are likely to push even harder for the controversial idea

to become policy at the Mangaung elective conference in December.

The details of the concept are sketchy and the resolution can beinterpreted in many ways, which would create more confusion on policyand heighten unease among investors.

The youth league yesterday accused party officials of watering down thedecision taken at last weeks conference.

This resolution, if adopted in Mangaung, would raise the possibility ofspecific assets and resources being nationalised, a business leader whodeclined to be named said last night.

Even the usually vocal elements in the alliance have been cagey about

commenting on the resolution, which appears to have left opponents ofnationalisation battling to resist a strong push by the majority of the


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provinces. It also opens the ANC to manipulation by various interestswho can introduce other sectors that should be nationalised later.

ANC spokesman Jackson Mthembu said last night that only two committees the steering committee chaired by Gwede Mantashe and the policysubcommittee chaired by Jeff Radebe were qualified to interpret the

official outcome of the conference. They had not compiled a reportstating the resolutions, he said.

"When they have compiled, they have a duty to report to the nationalexecutive committee (NEC). It is then the NEC that will produce theofficial communication and disseminate (it) to our structures,including the youth league. The youth league must not jump the gun," hesaid.

Senior leaders who attended the policy conference say the idea forstrategic nationalisation was supported by the spokesmen of six

provinces, with KwaZulu-Natal, Mpumalanga and the Free State in the

minority.

The youth league began the nationalisation campaign but now the six

provinces which have the power to push it into policy seem to betouting the concept of "strategic nationalisation".

The spokesmen for the three dissenting provinces were now "stage-managing" the communications on the events at the conference, said aunion leader who attended it as a delegate.

Congress of South African Trade Unions (Cosatu) general secretaryZwelinzima Vavi said last night that he was part of the commission that

came up with a "resolution that was very categorical" about the needfor state intervention. He said while Cosatu did not want blanket

nationalisation, it needed an active role for the state, including akeen interest in the nationalisation of a key sector through a statecompany.

Youth league spokesman Khusela Sangoni-Khawe said the ANC was dilutingthe resolution when the conference had directed that "nationalisationof mines and other strategic sectors shall be a policy of the ANC

emerging from the Mangaung conference".

5 July 2012

Business DayPage 2Nicky Smith

Maritime draft policy will soon be given to Cabinet

SA has been devising a maritime policy over the past seven years andwould implement the proposed new framework for development of thesector over a 20-year period.

SAs present shipping policy was outdated and has been described asoffering no attractive investment framework for shipping companies


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largely because the tax paid in SA is higher than in other, morecompetitive maritime jurisdictions such as Singapore.

The country has no ships on its register following the deregistration

of the Safmarine Oranje in December 2010.

"By the end of this year we will have a maritime policy and it willaddress all the issues of financing and the (unattractive) tax regime,"

Department of Transport director-general George Mahlalela said at theSouth African Maritime Industry Conference yesterday.

The maritime draft policy would soon be presented to the Cabinet for"refinement" and debate, said recently appointed Transport Minister BenMartins.

The former deputy minister of public enterprises said that SA had tomove to grow the maritime industry into a key competitive sector in the

countrys economy.

"Our challenge is how to move forward. How do we utilise the skills andthe expertise in the best interests of this industry?

"This maritime industry has been in the background and it is time tomove it to the foreground," Mr Martins said.

In his first major appearance since his appointment last month, MrMartins said he was in the process of meeting all deputy directors-general in the department and "the next phase will be to engage the 12

entities that report to the department to meet the CEOs andchairpersons and boards to find out what the challenges are and to find

out where they can obtain greater support from the department".

Agencies that fall under the Department of Transport include theAirports Company SA (Acsa), the South African National Roads AgencyLimited (Sanral), the Passenger Rail Agency of SA (Prasa) and the South

African Maritime Safety Authority (Samsa).

The Department of Transport had also commissioned a study toinvestigate the performance of SAs network of ports in order to

understand the challenges faced by such facilities, amid a bid to lowerthe cost of doing business.

The objective of the study was to evaluate the relative efficiency ofthe ports and to be "able to unblock obstacles and form a strategy toenable us to reduce the cost of doing business and reduce turnaroundtimes at our ports," Mr Martins.

There were "a number of studies that point to the fact we could have

greater efficiencies at our ports and as a result of the efficienciesthere would be greater economic returns for our economy," he said.

"We have to put measures in place to turn our ports around and make

them ports of choice," Mr Martins said.

The Department of Transport had also done "comprehensive studies on keysectors" within the maritime industry which included coastal shipping,


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oil and gas services, ship repairs, green ship recycling, transhipmenthubs with special economic zones, crewing and logistics and planning,

he said.

Just within the oil and gas sector there were many opportunities, MrMartins said, adding that off the west coast of Africa there were 250

oil and gas exploration projects being undertaken, all of which wouldneed services and support.

"This activity implies considerable opportunities for oil-rig repairsand maintenance which can take place within SA where there is capacity,mainly at Cape Town and Durban, where we have the facilities," MrMartins said.

Samsa CEO Tsietsi Mokhele said it was time for the country to reclaim

its "tenth province" and move to extract the benefits fromopportunities that are presented by the maritime sector. "Our waters

are three times the size of our land and if we aggregate the value of

all the industries in this sector our tenth province could be our mostvaluable," Com Mokhele said.

He was speaking on the sidelines of the launch of SAs only dedicated

training vessel the SA Agulhas, which was formerly used as researchsupport vessel.

5 July 2012Business DayPage 3

Setumo Stone

Business to study bridging income gap

Business Unity SA Nomaxabiso Majokweni says business has commissioned astudy to seek ways in which companies can lead by example in reducingincome disparities between rich and poor in South Africa

Business has commissioned a study to seek ways in which companies canlead by example in reducing income disparities between rich and poor inSouth Africa, the CEO of Business Unity SA, Nomaxabiso Majokweni, said

yesterday.

Speaking at the Social Cohesion Summit in Kliptown, Soweto, Ms

Majokweni said business had accepted the expanded role it had to playin social transformation, in that it could "not be sustainable in a

pool of poverty. There is no value in business not takingtransformation with both hands."

The two-day summit ending on Thursday comes a few days after the

African National Congress (ANC) national policy conference, where theparty set out to design a long-term plan for "a radical shift and agiant leap towards economic and social transformation" to address thechallenges of poverty, inequality and unemployment.


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Reports indicate that the level of unemployment in South Africa sits at36%. The country also features high among the most unequal countries in

the world, particularly in terms of income disparities.

In his opening address, President Jacob Zuma said socioeconomictransformation ranked high in the governments efforts to achieve

national reconciliation, nation building and social cohesion. He saidit was the responsibility of the government to lead South Africa

towards a society where there was an improved quality of life for all,"regardless of their race, colour, gender or creed".

Mr Zuma said the governments transformation programmes as well as the

expansion of basic services and improving the performance of theeconomy to create jobs, were all designed to create a united, cohesivesociety where all had access to a better life. "People will be more

responsive to social cohesion messages if there is hope and tangibleexamples of movement towards a better life and economic freedom."

Congress of South African Trade Unions general secretary ZwelinzimaVavi said income inequality in South Africa had grown across the board."In 1995, the Gini coefficient stood at 0,64 but it had increased to

0,68 in 2008.

"The share of employees in national income was 56% in 1995 but it had

declined to 51% in 2009. That is, there has been reverse redistributionfrom the poor to the rich."

Earlier yesterday, retired judge Yvonne Mokgoro said South Africa was

leading by example in boldly facing issues of social cohesion andplacing them high on the national agenda. She said social cohesion had

to embrace the idea of social justice.

Mr Vavi said South Africa had a constitution and laws that gave betterguarantees of social justice, human rights and equality than most othercountries in the world, but in practice millions of South Africans were

denied these rights.

He said inequality was by far the biggest obstacle to national unityand social cohesion, "and no amount of talk at summits like this will

bring us closer together unless we can solve the underlying structuralproblems within our economy".

National African Federated Chamber of Commerce and Industry presidentLawrence Mavundla said exclusion was still prevalent in the structuresof the economy despite the attainment of democracy, "even in what isbeing cooked as black participation in terms of broad-based blackeconomic empowerment".

Ms Majokweni said trust was central in the process of building socialcohesion because "a lot gets lost through mistrust" and a lack ofgoodwill. She said the National Economic Development and Labour Councilforum for business, labour and government could contribute to social

cohesion if used appropriately.

The Black Business Councils Sandile Zungu said the integrity of somecorporate leaders was shameful. "Trust is fundamental to social


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cohesion, simply because social cohesion is a mass-dimensional andcollective undertaking.

"Business must be at the centre of such initiatives right from their

conceptualisation, to funding, implementation and post-implementationreview," he said.

5 July 2012

Business DayPage 3Ernest Mabuza

Zuma seeks DA submission on top judge candidates

Democratic Alliance leader Helen Zille says President Jacob Zuma has

heeded calls to consult more extensively with opposition leaders on the

appointment of Constitutional Court judges

President Jacob Zuma has heeded calls to consult more extensively withopposition leaders on the appointment of Constitutional Court judges,Democratic Alliance (DA) leader Helen Zille said yesterday.

In a letter to Ms Zille, Mr Zuma had asked for consultation andsubmissions on all four candidates on the current short list, not just

his preferred choice as in the past.

The DA had in the past felt that Mr Zumas consultations had beeninadequate, saying he sought consultation only at the last moment, when

his mind was seemingly already made up.

Last month Chief Justice Mogoeng Mogoeng presented the names of Supreme

Court of Appeal judges Lebotsang Bosielo, Mandisa Maya and RobertNugent, and Judge Ray Zondo of the Gauteng high court to be consideredby Mr Zuma for possible appointment to the Constitutional Court. TheJudicial Service Commission interviewed the candidates last month for

the single vacant position.

The constitution states that the judges of the Constitutional Court areappointed by the president, after consulting the c hief j ustice and

the leaders of parties represented in the National Assembly.

Ms Zille said she wrote to Mr Zuma two weeks ago, suggesting ways in

which he should consult with leaders of opposition parties moremeaningfully in the appointment of Constitutional Court judges.

She said her office yesterday received a formal request for

consultation on the candidates for the Constitutional Court vacancy.

Mr Zuma had acceded to a number of requests that the DA had made andthis was an important step towards real and meaningful consultationbetween the president and leaders of opposition parties on judicialappointments.

"The presidents new commitment to real consultation is welcomed by theDA."


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Ms Zille said her party had requested that opposition parties be

consulted on the full short list of candidates, and not just on MrZumas preferred candidate. "In his letter today for the first time

the president has done so, asking for submissions on all fourcandidates.

"This is important, as it indicates that the president has not alreadymade up his mind, and that todays letter is a bona fide request that

will inform his final decision."

She said Mr Zuma also heeded her request for a fair time frame to beallowed for the compilation of submissions on the suitability of judgecandidates and he had allowed 12 days for the consultation process.

"This important change of heart opens the door for consultation onjudicial appointments to become a meaningful endeavour, where the

opposition gets the opportunity to make informed submissions on all

candidates," Ms Zille said.

2 July 2012

Sunday Times

Page 10

Nontobeko Mtshali

Metcalfe to head probe on textbooks debacle

The Department of Basic Education has appointed Professor Mary Metcalfe to helpverify information coming out of Limpopo relating to the delivery of textbooks.

In a statement at the weekend, the department said it was concerned about reportsthat books may not have reached all schools in Limpopo and that progress reportsbeing provided to the department, with regard to the delivery of these learningmaterials, may not be accurate.

The department has also set up a call centre to deal with all information from thepublic regarding the delivery of textbooks. Anyone with information can phone 0800202 933 between 8.30am and 4pm on weekdays.

In line with the new Curriculum and Assessment Policy Statement that started beingimplemented this year, grades 1, 2, 3 and 10 were supposed to receive new studymaterial before the start of the year.

Metcalfe said on Sunday she was waiting for the terms of reference and a letter ofappointment from the department.

She expected to meet officials from the department on Monday to finalise theprocesses to be followed. The department is working with the NGO Section 27, thepublic interest legal organisation which took it to court over the debacle.


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I am preparing by putting together a team with the necessary skills to complete thisverification before Limpopo schools open for the new term, said Metcalfe. It isimportant that the verification process proceeds with the necessary expertise,objectivity and independence so that the outcomes have the confidence of allstakeholders and of the public.

Meanwhile, Sapa stated that Basic Education Minister Angie Motshekga could facethe axe over the bungled textbook delivery to Limpopo schools, according to mediareports on Sunday.

At its policy conference last week, the ANC agreed that action should be takenagainst under-performing civil servants, The Sunday Independent reported.

If one of us is under-performing as a public servant, regardless of what level we areat, then we need to act, ANC treasurer-general Mathews Phosa told the paper.

Delegates had reportedly called for Motshekgas head.

4 July 2012The New AgeSapa

World cup an example: Zuma

The 2010 Fifa World Cup is an example of what a united South Africacould be like, President Jacob Zuma said on Wednesday.

"Every citizen became an ambassador of our beautiful country," he told

the national social cohesion summit in Soweto.

In the build-up to the event, community conversations were held to askwhat it meant to be South African.

Many participants identified the unity and national pride of SouthAfricans during the World Cup as a success story.

"It showed us what is possible if we put our country first..." Zuma

said.

"We need to ask ourselves whether that is the standard of SouthAfricans that we ask, or if there is more that we should and can do to

build the South African vision?"

The summit is being held in Kliptown, where 3000 delegates of all races

met in 1955 to draft the Freedom Charter, which calls for a non-racialSouth Africa that belongs to all who live in it.

"As leaders we have the responsibility to bring about [the] South

Africa as it was envisaged by those who met here," Zuma told the fewhundred delegates.

This meant building national unity out of multiple identities, he said.


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It would entail dealing with issues that still caused divisions,

including poverty, unemployment, inequality, homelessness, andlandlessness.

The two-day event is hosted by the arts and culture department.

Arts and Culture Minister Paul Mashatile said the summit would not be a

mere talk shop.

"Out of it must come decisive steps," he said.

These included a clear plan of action to heal the wounds of the pastand strengthen social cohesion.

Political parties, business leaders, and civil society and governmentrepresentatives attended.

Among them were National Assembly Speaker Max Sisulu, former speakerFrene Ginwala, and Zanele Mbeki, wife of former president Thabo Mbeki.

The summit's theme is: "Working together to create a proud and caringsociety".

Following Zuma's opening address, delegates were discussing the role ofthe judiciary, Parliament, political parties, and traditional leaders,among others, in building an inclusive society.

Zuma announced the need for the social cohesion summit in May,following the controversy caused by Brett Murray's painting "The

Spear", which depicted Zuma with his genitals exposed, and exposedrifts in South African society.

He had previously called for such a summit in 2009.

4 July 2012

Cape Times

Page 1

Sipho Khumalo and Suren Naidoo

Banks are greedy monsters Gordhan

Finance Minister Pravin Gordhan yesterday accused banks and financial institutionsof being greedy monsters who seek to maximise profits at all costs, to the detrimentof ordinary people.

Addressing a two-day conference on financial literacy in Pietermaritzburg, Gordhanurged South Africans to strive towards financial literacy so that they could makeinformed choices and be able to see when they were being hoodwinked by banks intounsustainable financial deals and products.

Gordhan gave an example of how the 2008 recession came about, saying banksplayed a role in the financial meltdown by offering mortgage loans to people who


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could not afford to pay them. This resulted in SA losing millions of jobsand R60billionand the country, he said, was still trying to recover from the crisis.

He also referred to Barclays Bank in London, which stands accused of manipulatinginterest rates so that they could make more money for themselves

With the Barclays saga of the last few days, it illustrates brilliantly the fault lines inthe banking sector. It illustrates dishonesty, manipulation of prices and information,profiteering at any cost and little regard to the ordinary people and the cost to them.People think they can play games and be the only ones who benefit, he said.

Gordhan said questions were being asked about the roles of the banks in the economyand their influence.

Vulnerable South Africans can be exposed to unfair and manipulative sales andoffered products that will strain their finances, he said.

Gordhan said measures were already being put in place in SA to protect vulnerableconsumers.

There is a policy document to strengthen financial regulation that national Treasuryhas come up with.

This document aims to strengthen the consumer protection, financial stability,combat financial crimes, to ensure that financial services are appropriate, accessibleand affordable, he said.

The Ombudsman for Banking Services, Clive Pillay, who was at the conference, saidhe did not think Gordhans comments were an attack on SA banks and the financialservices sector.

The minister was alluding to the Barclays incident in the UK. He was referring torogue elements in major global banks that were driven by greed, which led to theglobal financial crisis

In light of these unscrupulous dealings, he was reinforcing that consumers need to beprotected by being more financially literate and aware of issues that affect their lives,

he said.

Pillay said the Treasurys policy document, titled A safer financial sector to serveSouth Africa better, was aimed at getting the financial sector to treat consumers morefairly.

I think it is a good idea as the policy ca lls for a combination of protection, financialeducation and financial literacy. I think it will go some way in achieving a faireroutcome for financial consumers, he said.


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2 July 2012

IAfrica

Sapa

ANCYL saved JZMalema

The ANCYL saved President Jacob Zuma from a prison sentence, expelled leaguepresident Julius Malema claims in an interview published in the Sunday Times.

Malema was not convinced the "spy tapes", cited as the reason that corruption chargesagainst Zuma were dropped in 2008, really existed.

"Actually, we went to fetch him from a prison door," Malema said.

According to Malema, Zuma "does not have what it takes" to serve as president andthe thought of another term for Zuma was "scary and traumatic".

Having once proclaimed that he would "kill for Zuma", he apologised for endorsing aZuma presidency, claiming it was "a mistake" on the part of the league.

The ANCYL's support for Zuma was based on his apparent "courage" against then-president Thabo Mbeki's bid for a third term in office.

"That courage was very personal. It was informed by personal fear of being arrestedand going to prison."

Malema claimed Zuma had "nothing to lose" because he knew if he became president"chances are that you will not be arrested".

Malema said both Deputy President Kgalema Motlanthe and Human SettlementsMinister Tokyo Sexwale had the qualities necessary for the presidency. The ANCelects its new leaders at its elective conference in Mangaung in December.

4 July 2012

IAfrica/Cape Times

Page 5

Sapa

Nationalisation debate to stay

The nationalisation debate will remain unless the mining industry gets the support ofpeople living around mines, Mintek CEO AbieMngomezulu said on Tuesday.

"Without having those communities on our side, we will always have those problemsof nationalisation," he said at the Mining for Change seminar in Johannesburg.

In the past, mines went to rural areas, erected a shaft, built hostels, bused in men andprovided food and accommodation.


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This later changed to a housing allowance and food rations, but expectations ofpaternalism remained.

It set off the current mushrooming of squatter camps around mines, because people

still expected this support from mines. Families living around mines watchedoutsiders come in and get jobs, when their own children, even if they hadqualifications, could not.

"And we think those children won't fight for nationalisation? I don't think we will bein a better position going forward until we resolve the problem of the communities inthe mining areas."

The example of the Bafokeng -- who are in empowerment agreements with miningcompanies operating where they live in the North West -- should be looked at, hesaid.

African National Congress MP Faith Bikani, who serves on Parliament's portfoliocommittee on mineral resources, said the ANC's policies were not about the"selfishness of the state".

"The principal objective is to transform mining to serve all," she said.

On a recent visit to a mine in the Free State, she found there were still single sexhostels for women miners, who were breadwinners with families, in spite ofcommitments by the human settlements department to meet companies half way withhousing provision.

The actual meaning of "nationalisation" -- whether it was 100 percent state ownershipor not -- also needed to be decided.

"It's about how we understand nationalisation. If we just talk about the statenationalising mines, it's not possible. We are not in a position to afford it."

On Friday, at the conclusion of its policy conference, the ANC said it had decided notto pursue the nationalisation of mines, but to move towards greater state intervention.

Anglo Gold Ashanti CEO Mark Cutifani said the ANC had managed the discussionswell, but more was needed, and the industry had to be involved.If it did not participate, it would have only itself to blame later.

Until the threat of losing ownership of critical assets was removed, investors would bescared of a full commitment, he said.

Business Day reported that Fitch, Moody's and Standard & Poor global ratingsagencies had given their credit ratings for South Africa a negative outlook, whichmeant the next move could be a downgrade.

Fitch reportedly cited the "failure to put a nail in the coffin of nationalisation" as areason.


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Cutifani said: "The 'n-word' is really a symptom of another conversation, and the realconversation is really around social benefit."

On a recent trip to Guinea, he found that although 10 percent of the local community

was employed because of the mines, the prices of goods and services for the rest ofthe community had risen because of the mining activity.

Roleplayers had to find a way of making sure the rest of the community was alsobetter off.

This involved more discussions with them on finding out what they wanted, andtraining them to ask the right questions.

The mining industry contributed 45 percent to global GDP and was one of the fewindustries with the capital available to develop infrastructure such as roads, which

helped communities.

Companies, governments, institutions such as the World Bank and the InternationalMonetary Fund, had a chance to work together to provide an infrastructure strategythat could be adopted in Africa, instead of aid.

"We just need to have the conversation," he said.

2 July 2012

Sunday World

George Matlala

Zuma 'fears jail' if he loses re-election Juju

Expelled ANCYL president Julius Malema claims that President Jacob Zuma isseeking re-election as ANC president because he fears going to jail.

In a wide-ranging interview with the Sunday Times on Friday, Malema dressed Zumadown, saying his advisors are also aware and have told him should he lose power,there is a possibility that he will go to jail.

He also says Zuma is in no position to talk hard about corruption because he shouldclear his name first.

Malema, who is out in the cold and could not attend the ANC policy conference lastweek, accuses the National Prosecuting Authority (NPA) of compromising principlefor political expediency when it dropped corruption charges against Zuma in 2009.

"... was a wrong thing because the NPA shouldn't make political considerations whenit is to prosecute. That is why today we are very interested to see the reasons behindthe dropping of charges against Zuma.


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"(then acting NPA head Mokotedi) Mpshe said he had the tapes, let him produce thetapes. One thing for sure is that Mpshe didn't have the tapes. We are waiting for thosetapes. Let them be produced. Lets hear if there was indeed a political conspiracy todestroy Zuma," Malema says from his house in Sandton.

He says they made a mistake by supporting Zuma's presidency in 2007, somethingthat needs to be corrected in Mangaung in December.

"President Zuma doesn't have what it takes to be the president of both the ANC andthe republic. We must first acknowledge that we made a terrible mistake, and amistake we will never forgive ourselves for having committed. A mistake we are notproud of. The only thing that made us support president Zuma was his courage tocontest President (Thabo) Mbeki who wanted to come for the third term."

He says Zuma knew that was the only way to rescue himself from his troubles, if hebecomes the president of the republic.

Malema says Zuma can't tell people about being ideologically grounded as he lacksthat too.

"I always try and listen to him when he speaks about how people should conductthemselves, including when he was opening the conference wanting to give veterans alecture on how a veteran should behave.

"But he is not doing that. He doesn't behave like a veteran. We all know his issues.They are in the public domain. They are not of a dignified veteran who should berespected by all," he says.

29 June 2012

Business Day

Page 3

Natasha Marrian

Policy meeting rejects wage subsidy

The African National Congress (ANC) last night rejected the proposed youth wage

subsidy, opting instead for a "job seekers grant" national executive committeemember Paul Mashatile said yesterday.

Compulsory national service was also being looked at as an option.

ANC ally, the Congress of South African Trade Unions (Cosatu), has opposed thewage subsidy since it was announced by Finance Minister Pravin Gordhan in his 2011budget speech. It appears to have made headway in its push for the subsidy to bescrapped, at the ANC policy conference in Midrand, yesterday.

Mr Mashatile said delegates felt that a system in which employers received money

was open to abuse, and was "not a good mechanism to push employment".


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Instead, they had endorsed the job seekers grant proposed by President Jacob Zumain his opening address to the meeting on Tuesday.

Mr Mashatile said the resources set aside by the government could be used to fundother mechanisms, including the grant.

The ANC has also proposed a national youth servicewith the South AfricanNational Defence Forcewhich "should be compulsory as far as possible". Heemphasised, however, that this did not amount to conscription. Rather it was aimed atpreventing "loitering" by young school leavers, and to ensure that they were skilled.

The proposals would be further fleshed out at the ANCs national conference inDecember.

Speaking on the sidelines of the conference, Cosatu general secretary ZwelinzimaVavi hinted at a new approach, a "comprehensive youth development strategy",

formulated with input from the unions and the ANC Youth League.

The idea of the subsidy had been lauded by the Democratic Alliance (DA), whichargued that it would create 400000 jobs.

The DA and Cosatu clashed over the subsidy during a march earlier this year.Discussions around the subsidy are unfolding in the National Economic Developmentand Labour Council (Nedlac).

Cosatu has stalled the implementation of the youth wage subsidy by the Treasury,arguing that it would "entrench slavery".

The union federation released its detailed response to the Treasury and the DA thisweek, outlining its vehement opposition to the subsidy. The paper, submitted to thepolicy conference for discussion, argues that proponents of the subsidy incorrectlyassumed that wages were a major constraint to job creation.

Mr Vavi said Mr Zumas proposed job seekers grant sounded like an "interestingintervention", but the concept had yet to be unpacked.

"In other countries you put together a system of ensuring that people continually

search for work, to present themselves for training in whatever system you have forpeople seeking employment opportunities, and you give them a grant to continuesurviving while they look for employment. Thats what it is elsewhere in the world,"he said.

Young Communist League secretary Buti Manamela welcomed the idea of a jobseekers grant, saying it would bring relief to young job seekers if endorsed by theANC.

"What weve always been saying is that you have to reduce the cost of loo king for ajob, we never think about the cost involved for young people to look for a job, people

getting a newspaper, getting money to travel to interviews, all those things require acost."


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In its paper opposing the youth wage subsidy, Cosatu argues that the youth wagesubsidy was not a policy that emanated from the ANC, and was in fact rejected byparty delegates at previous gatherings.

The federation also maintained the subsidy would bring about "substitution effects",with companies being given incentives to let go of workers in order that they employsubsidised ones.

Cosatu said the subsidy also did not guarantee skills development and training, andwould entrench inequality in wages.

Cosatu president Sdumo Dlamini has said that the subsidy was typical of how thegovernment "runs directly opposite to the ANC direction".

The federation has been critical of the Treasury for its perceived failure to implement

ANC policies.

29 June 2012

Mail & Guardian

Niren Tolsi

The ANC is Zuma's shield

President Jacob Zuma may casts himself as party custodian, but it is his future that

may need protecting, writes Niren Tolsi.ANC president Jacob Zuma cast himself in a familiar role at the partys fourth annualpolicy conference at Gallagher Estate in Midrand this week: that of the ANCsguardian.

He was Zuma, the partys high priest, interpreter of the ANCs 100-year-old historyas a liberation movement and custodian of its institutional memory and ethosat theexpense of others like the ANC Youth League, bent on replacing him.

This was most apparent when Zuma, during a press conference on Tuesday,responded to a question about a ban on songs derogating leaders. Earlier in the day,

Zuma supporters had sung in isiXhosa: If you mess with Zuma, we will shoot wit h arevolver. The singing was apparently aimed at the likes of Human SettlementsMinister Tokyo Sexwale and ANC Deputy President Kgalema Motlantheconsidered two of those around whom the anyone but Zuma factions in the partyappear to have formed.

During the press conference, Zuma resurrected ANC icons while drawing on his own53 years in the liberation movementfrom when he joined the party led by AlbertLuthuli in 1959 through to his time as an underground Umkhonto weSizwe operativewhen Oliver Tambo was presidentand he remembered singing songs about themand the likes of Chris Hani and Nelson Mandela before he became party president.

[The tradition of singing about ANC leaders] has always been there.


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It is not just songs about our leaders; we sing about ANC members and their trackrecords too, he said, obliquely referencing Sexwale and his problem-ridden nationalhousing portfolio.

He also reminded journalists that the ANC president was the face of the ANC. This

conflation of individual and party is something that Zuma, a wily political operator,has done consistently and exceptionally well over the years.

Party platformsIt was particularly evident when he was sacked as deputy president of South Africa in

2005 by former president Thabo Mbeki. ANC supporters ensured that Zuma did notlose his job as deputy president of the party and between his sacking and successfulascension to the ANC presidency at the Polokwane elective conference in 2007, Zumaused party platforms like rallies cannily.

Rather than attack Mbeki directly, Zuma engagingly wove the ANCs historical

mythology, constructing himself as one of its main custodians. This also tapped intopublic disenchantment with the Mbeki government and macroeconomic policies suchas Gear, which appeared, in this context, almost anti-ANC.

The resurrection of the memory of Moses Mabhidaa tripartite alliance icon whomZuma considered a mentorfor example, served him well at a time when Cosatu andthe South African Communist Party were increasingly at odds with Mbekis ANC.

Attempting, in the build-up to the ANCs elective conference in Mangaung at the endof the year, to contain the anyone but Zuma faction and an unruly youth leagueintent on replacing him as ANC president, Zuma raised history once again whenaddressing party discipline and when encouraging the ANC to have a greater presencein public debates that involved it.

Zuma reverted to form this weekone that entrenched his historical role in thepresent, but also legitimised his supporters manoeuvring at the conference. Therewere several JZ classics. The conflation of Zuma and the ANC was not just evidentin the presidents public messaging, he also deferred to the party when he appeared tobe stuck on policy specifics. He said the delegates must decide on the radicalchange he encouraged during his opening address, after being asked by the Mail &Guardian what his radical vision was in light of criticism that discussion documents

on economic transformation and the second transition did not go far enough.

Second transitionDespite having punted the notion of a second transition as essential to societaltransformation in recent provincial conferences, Zuma denied that heand perceivedsupport for his second termwas wedded to whether the second transition flew orsunk at Gallagher Estate.

He admitted to merely sharpening the discussion around a second transition, sayingit was a national executive committee document, an ANC document and not hissolely.


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There was urgency for the ANC to discuss the second transition vigorously, saidZuma, because of poverty, inequality and unemployment. The plight of the poor inplaces such as Diepsloot gave him sleepless nights, he said, reviving his man-of-the-people persona.

But Zuma could not ignore the populist chord struck by former youth league presidentJulius Malemas talk of economic freedom and nationalisation, among others. WithMalemas ousting, the former issue in particular has become Zumas terrain, onlyrecoded as a second transition that addresses the challenges of poverty, inequalityand unemployment.

This week, Zuma delivered another masterclass by portraying himself as the guardianof the ANC. Yet events like the Democratic Alliances legal challenge to review the2009 decision to drop corruption charges against him or the manner in which the partymobilised to defend him against The Spear painting begs another question: Is theANC now also Zumas guardian?

From spin doctor to roadieIs it as bird, is it a plane no, it is a lighting technician.

When President Jacob Zuma addressed the first press briefing of the ANCs policyconference at Gallagher Estate on Tuesday, he arrived with his normal retinue,including political and security mindersand what appeared to be a technician toensure the lighting flattered the first citizen.

The roadie fiddling with the lights before Zuma addressed the media turned out to benone other than former presidential communications adviser Zizi Kodwa.

After he had been promoted to Zumas office in 2010, the sky had appeared the limitfor Kodwa, who was considered one of the rising stars of the ANC Youth Leagueclass of 2007 that ensured Zumas ascension to the party presidency at its electiveconference in Polokwane.

But with the commander in chief apparently concerned about the youth leaguesattempts to remove him as head of the ANC, Kodwa became a casualty of the ensuingconsolidation in the presidential office: the young lion apparently was too close toother cubs from the ANCs preschool, including Sports Minister Fikile Mbalula.

With the presidency recently announcing that Kodwa had taken up a job ascommunications manager of the Gauteng Film Commission, the Mail & Guardian wasleft wondering: Was Kodwa sharpening his skills for his new job, or merely showingJZ that he could still handle the job of casting him in the best possible light?


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5 July 2012Cape Times

Page 1BabaloNdenze

Info Bill: 2 errant MPs off hook?

Veteran ANC MP Ben Turok and his colleague Gloria Borman appear to beoff the hook for ignoring party orders to vote in favour of theProtection of State Information Bill aft

Documents

Global South African News Wrap 06 July 2012