global south african news wrap 17 may 2012

7/31/2019 Global South African News Wrap 17 May 2012

1/36

17 May 2012 1

Global South African Weekly News Wrap Up 17 May

2012

Contents

Zuma backs youth wage but Cosatu stands firm ...................................................... 2Sexwale may be in race, but Zumas in the lead ....................................................... 3States R6bn recap of SAA no bail-out.................................................................... 5Freedom Under Law in bid to stop Mdluli ................................................................ 7Zuma allies get re-elected in KwaZulu ...................................................................... 8Zuma condemns DA-Cosatu protests......................................................................... 9SA its own worst enemy in its bid to chair AU Commission ............................... 10Madonsela praises appointment of Military Ombudsman .................................... 12Malema: Ill be ANC president ................................................................................ 13Ambassador post for Mdluli: Malema ..................................................................... 15Information bill worse than apartheid IFPs Mncwango............................... 16Give Mthethwa space to deal with Mdluli matter: Zuma ...................................... 17ANC policies may dictate credit rating .................................................................... 18SAA needs state cash to renew its fleetGigaba .................................................. 19ANC failures help DA to get black vote ................................................................ 20Criticism of30% matric pass surprises Motshekga ............................................ 22Consumer chief may ask Zuma to intervene ........................................................... 23Surveys help to explain trauma in the ANC ............................................................ 25Vavi warns ANC of 'ticking bomb' .......................................................................... 27Hlophe back in dock .................................................................................................. 29Drop in youth support for Malema .......................................................................... 30Stones, insults thrown as DA marches ..................................................................... 32Sexwale could be compromise candidate ................................................................. 33Dismay over new bid to install Dlamini-Zuma at AU ............................................ 35


2/36

17 May 2012 2

17 May 2012Business Day

Page 1

Sam Mkokeli

Zuma backs youth wage but Cosatu stands firm

Specifics open to negotiation, laws will protect older workers

PresidenT Jacob Zuma has given the assurance that the government intends goingahead with its planned wage subsidy to cut youth unemployment, but its final designcould still be negotiated.

Mr Zuma also hinted that rules could be established to address concerns raised by theCongress of South African Trade Unions (Cosatu). This is likely to fuel claims by theDemocratic Alliance (DA) that Cosatu rather than the African National Congress(ANC) is driving government policy.

The issue of the wage subsidy was thrust into the limelight when DA and Cosatusupporters were involved in street battles this week, as the DA tried to march onCosatu House to highlight Cosatus opposition to the scheme.

The union federation appears unlikely to budge. Emboldened by recent governmentclimb-downs at its insistence, Cosatu said yesterday it would continue to try toinfluence economic policy, which includes persuading the government to abandon the

subsidy.

A three-year pilot of the R5bn subsidy was meant to start in April last year but washalted when Cosatu objected during talks at the National Economic Development andLabour Council (Nedlac).

In a written reply to a question by Democratic Alliance (DA) parliamentary leaderLindiwe Mazibuko, Mr Zuma said this week the government had undertaken toresolve the concerns raised at Nedlac, which included that the subsidy scheme wouldresult in older, higher-paid workers being replaced by younger workers.

Mr Zuma said the rules could be thrashed out during talks so risks could be reduced."For example, firms will only be able to access the incentive if they create

additional jobs for young and inexperienced South Africans above currentemployment levels. The incentive targets a net rise in youth and overall employment."

He said existing labour law prevented the retrenchment of older workers.

But Cosatus economic policy adviser, Chris Malikane, who a lso teaches economicsat the University of the Witwatersrand, said the government could not visit everyfactory to see whether employers were abiding by labour laws.

Mr Zuma said the tax system would monitor the number of jobs created and ensureyoung employees hired were additional staff.


3/36

17 May 2012 3

Yesterday, the DA laid a complaint of intimidation against Cosatu after Tuesdays

march turned violent.

Ms Mazibuko said yesterday that Mr Zuma had " put the politics of the tripartite

alliance ahead of the interests of millions of unemployed South Africans. Instead ofshowing leadership, he has chosen votes at Mangaung (the ANCs conference in

December)."

Prof Malikane said the subsidy was a shortsighted initiative, when SAs

unemployment crisis needed government intervention at a broader, macroeconomiclevel.

Cosatu has shot down key parts of the governments New Growth Path, introduced in

November 2010 as a policy guide to creating 5-million new jobs by 2020. It has beenpunting its own policy, which calls for more state intervention in the macroeconomy.

It wants inflation targeting to be dropped, in favour of a pegged rand.

As the DA questions who is in charge of economic policy in the alliance, Mr Zumafaces growing pressure to manage the battle for dominance, especially in the build-upto leadership elections.

The government has proposed that the youth subsidy be made available for workersunder the age of 30, whose salaries are below the personal income tax threshold. Itwill be paid for a maximum of two years and have a maximum value of R12000.

14 May 2012

Business DayPage 3

Stephen Grootes

Sexwale may be in race, but Zumas in the lead

President Jacob Zuma has several advantages over his two possible competitors

Reports emerged at the weekend suggesting that Human Settlements Minister Tokyo

Sexwale was ready to throw his hat into the presidential ring and challenge PresidentJacob Zuma at the African National Congresss (ANCs) Mangaung conference inDecember.

It is also said he is trying to be the face of what is being called the "Anyone butZuma" coalition.

Should Mr Sexwale decide to go ahead with a presidential bid, it could turnMangaung into a three-horse race: Mr Zuma would be standing against Mr Sexwaleand, possibly, Deputy President Kgalema Motlanthe .

In politics, it is usually sensible not to bet against the incumbent. Mr Zuma hasseveral advantages over his two possible competitors.


4/36

17 May 2012 4

First, he controls the intelligence services and the police. In any political battle,intelligence is the key and Mr Zuma would appear to have an unassailable advantagehere.

As seen by last weeks decision to move, but not suspend, Lt-Gen Richard Mdluli,this is crucial. By controlling that particular lever of power, it could be possible forMr Zuma to know where his opponents are at all times through Mr Mdlulissupervision of the polices VIP protection service and whom they are meeting.

However, the Mdluli saga could also be used against Mr Zuma. If it is correct that lastweeks move was sparked by anger and concern in ANC circles, it would be very

damaging in the eyes of the ANC members for Mr Zuma to be seen as using thepolice against his enemies.

He needs to be wary of the "dictator" tag, particularly after that label was pinned on

him so publicly by former ANC Youth League president Julius Malema.

Moreover, incumbency comes with disadvantages.

Mr Zuma used to be greeted with adulation and ululation wherever he went. He wasseen as the challenger, the face of hope.

But now he is the face of the government and can be made to appear responsible forevery mistake made by the government.

Mr Motlanthe appears to have very few of these problems.

The jobs that government leaders give their possible opponents can sometimes beseen as a measure of the threat that they pose.

Mr Sexwale was given Human Settlements, because it is hard to see how he couldpossibly give everyone a house. More than 3-million houses have been deliveredsince 1994, but there is a backlog estimated at 2,1-million. Nearly 70% of the backlogis in urban areas.

As for Mr Motlanthe, he was made chairman 10 days ago of the task team mandated

to deal with the e-tolling issue.

Mr Motlanthes choice is now either to be the face of the governments backtrack on

the issue, or to face public wrath by going ahead. There is also political pressure fromthe Congress of South African Trade Unions to scrap e-tolling. If the task team, withMr Motlanthe at its head, decides to push ahead with e-tolling, this will put MrMotlanthe in the middle of tension with the ANCs ally in the tripartite alliance.

From this appointment, it would appear that Mr Zuma is still wary of Mr Motlanthe,despite his silence about whether he will join the presidential race.

Mr Motlanthe's advantages are that he appears to have some access to state power, butis not the face of the government.


5/36

17 May 2012 5

Howeverwhether this is true or nothe has been labelled as being close to MrMalema. This could make it hard for him to win over the middle ground of the ANC.

Delegates at the ANCs national general council in 2010 stood firmly behind Mr

Zuma on the Malema issue and they are unlikely to have changed their opinions onhim since then. This has possible implications for Mr Motlanthe.

The same would appear to hold true for Mr Sexwale. He testified in Mr Malemas

favour during the ANC disciplinary hearing. It is also claimed that he paid R100000into a trust controlled by Mr Malema.

Thatcoupled with his decision to challenge what was clearly going to be a two-horse race at Polokwane and then his abrupt about-face days before the conference would appear to indicate a lack of political adroitness. That may lead some ANCmembers to believe that he is not serious in his candidature.

At the weekend, the ANCs Kwa-Zulu-Natal province, the biggest in the country, didall but say that it was backing Mr Zuma. This gives him a base from which to work,and a huge advantage in the numbers game.

It would appear that the ANC presidencyand that of the countryis still to be MrZumas game to lose.

15 May 2012Business DayPage 1

Edward West

States R6bn recap of SAA no bail-out

SAA CEO Siza Mzimela say the cash injection is needed to strengthenSAAs balance sheet for fleet renewal and other improvements

The governments proposed recapitalisation of South African Airways

(SAA) by up to R6bn is not a bail-out and will help to make thenational carrier sustainable, says CEO Siza Mzimela.

The injection of state funds would be in addition to the R1,3bnsubordinated loan SAA already has from the government, and the R1,6bn"going concern" guarantee it has obtained to underpin its cashrequirements.

A bail-out typically involves providing loans or capital to an entity

that is failing. SAA warned in February it would post a loss in theyear to March 31 following a R782m net profit last year.

Ms Mzimela said the cash injection was needed to strengthen SAAsbalance sheet for fleet renewal and other improvements such as the

introduction of a premium economy class and the extension of businessclass cabins on long-haul flights.


6/36

17 May 2012 6

She said airlines around the world were struggling due to rising fueland other industry-related costs, airport fees and declining passenger

demand.

Qantas has reported losses and American Airlines, one of the worlds

biggest, has begun bankruptcy proceedings. Lufthansa reported a 381m

loss in the first quarter and announced 3 500 job cuts while Emiratesreported a 61% decline in profit.

Airlines that have stopped flying to SA include Malaysia Airlines, TAPPortugal, Jet Airways and Iberia.

In SA, Velvet Sky has ceased to operate and Comair , the operator of

British Airways and Kulula, has had its first loss in 61 years.

Average aviation industry profit was expected to fall further thisyear, Ms Mzimela said.

She said new, fuel-efficient aircraft would help to make SAAfinancially sustainable in the future and enable it to increaseflights, services and distribution, using Johannesburg as a hub.

Tourism Minister Marthinus van Schalkwyk said at the Tourism Indaba inDurban at the weekend that no long-haul destination such as SA could gowithout a properly capitalised, commercially viable national carrier.

To unlock the benefits of aviation on the continent, "space needs to becreated for low-cost airlines", competition needed to be advanced, and

Johannesburgs status as hub for the continent and the "south-southcorridor" needed to be promoted, he said.

"In all of this, South African Airways will have an important role to

play," said Mr van Schalkwyk.

Democratic Alliance spokesman for industry Tim Harris said yesterday he

saw no justification for a national carrier, and that the privatesector was taking ownership of the global airspace. He doubted that theroutes flown by SAA were chosen because they were intrinsicallyunprofitable.

Ms Mzimela said SAA needed the recapitalisation to replace its short-haul fleet of 737-800 s by 2017. Two A320 aircraft were delivered in

January and February, the first of 20 new A320 s in the next fiveyears.

Talks to replace SAAs long-haul fleet had started, and a major order

was expected to be finalised by the end of the year. Once the order wasfinalised, the airline would announce plans for the new premium economy

class.

Ms Mzimela said that despite tough trading conditions, SAA had openednew routes to Ndola, Kigali, Bujumbura, Pointe Noire, Beijing and

Cotonou. It expected to announce two more routes to Africandestinations this year.


7/36

17 May 2012 7

Passenger revenue was up 20% in the last quarter of 2011-12, fleetutilisation was up 4% and there had been a 21% increase in passengers

connecting through Johannesburg.

Ms Mzimela said the weak performance of SAAs operations to and from

the UK a key market was of concern.

SAAs low-cost airline, Mango, posted growth of 15% year on year and a

new service between Lanseria and Cape Town had been launched this year.


Page 3Ernest Mabuza

Freedom Under Law in bid to stop Mdluli

Freedom Under Law has launched an urgent application to interdict Lt-Gen RichardMdluli from continuing to perform any function as a police officer pending the

judicial review of a series of decisions relating to his reinstatement

Lobby group Freedom Under Law yesterday launched an urgent application tointerdict Lt-Gen Richard Mdluli from continuing to perform any function as a policeofficer pending the judicial review of a series of decisions relating to his reinstatementas head of crime intelligence.

Lt-Gen Mdluli was suspended as chief of police crime intelligence in March last yearafter he appeared in court on a murder charge. He was arrested in September on fraudand corruption arising from his alleged misuse of police intelligence funds. He wasreinstated in March after all charges against him were dropped.

Freedom Under Law s application is the latest twist after Police Minister Nathi

Mthethwa said last week Lt-Gen Mdluli would be moved to another division in thepolice while charges against him were probed.

His reinstatement and the dropping of charges has raised concern about the lack ofexplanation by the National Prosecuting Authority.

The application is in two parts. The first, set down for the North Gauteng High Courton June 5, seeks interim relief to ensure Lt-Gen Mdluli does not perform any officialpolice functions either as head of crime intelligence or in connection with theredeployment announced by Mr Mthethwa. The second seeks to review and set asidefour decisions relating to the dropping of charges and his reinstatement.

In her founding affidavit, Dr Mamphela Ramphele, a member of the internationaladvisory board of trustees of Freedom Under Law, said the circumstances of thewithdrawal of criminal charges against Lt-Gen Mdluli were shrouded in secrecy,primarily because neither the acting national director of public prosecutions nor the

head of the specialised commercial crime unit took it upon themselves to explain tothe public those circumstances and the reasons the charges were withdrawn.


8/36

17 May 2012 8

Dr Ramphele said the way Lt-Gen Mdluli had been dealt with reflected anextraordinary degree of lack of accountability and a breach of the culture of

justification under the constitution. His reinstatement, "without prosecution ofcriminal and disciplinary charges against him, has caused serious controversy,

material lack of trust within and outside the ranks of the SAPS (the South AfricanPolice Service), as well instability in SAPS, more particularly at its leadership level".

She said apart from the nearly 600 junior SAPS officers suspended pendingdetermination of allegations of criminality, police commissioner Gen Bheki Cele wassuspended by the president pending the outcome of an inquiry into allegations ofimproper behaviour against him. As far as she was aware, no reason was given for asimilar course not being followed in Lt-Gen Mdlulis case.


Page 3Natasha Marrian

Zuma allies get re-elected in KwaZulu

The leaders who remain in their posts are premier, chairman and long-time Zuma ally,Zweli Mkhize; his deputy Willie Mchunu, provincial secretary Sihle Zikalala; deputysecretary Nomusa Duba; and treasurer Peggy Nkonyeni

President Jacob Zuma s bid for a second term at the helm of the African NationalCongress (ANC) received a predictable boost this weekend with leaders loyal to himre-elected at the KwaZulu-Natal provincial conference.

However, battle lines are being drawn ahead of the ANCs national electiveconference in Mangaung in December, with newspaper reSports claiming that HumanSettlements Minister Tokyo Sexwale may be entering the race.

The leaders who remained in their posts were premier, chairman and long-time Zumaally, Zweli Mkhize; his deputy Willie Mchunu, provincial secretary Sihle Zikalala;deputy secretary Nomusa Duba; and treasurer Peggy Nkonyeni.

The provincial conference also resolved that judges must publicly declare theirfinancial interests.

This would "enhance transparency (and the) promotion of ethical conduct," the

premiers adviser, Cyril Xaba, said.

All public servants needed to disclose their interests, including judges. The congressalso resolved that judges had to recuse themselves from cases where there might be aconflict of interest.


9/36

17 May 2012 9

Mr Xaba said that the ANC in KwaZulu-Natal was worried about the abuse of thejudiciary by those "hellbent on undermining the ANC". He said that there needed tobe a separation of powers.

According to sources, there were those from the branches who said they would

support nationalisation at the ANCs upcoming policy conference, but this did notemerge in resolutions read out at the conference late yesterday.

While the provinces of Mpumalanga and KwaZulu-Natal are firmly behind Mr Zuma,it is expected that the conferences in the Free State and the Northern Cape will betightly contested.

In the Free State, incumbent and important Zuma ally, Ace Magashule is set to takeon provincial treasurer Mxolisi Dukwana for the position of chairman.

In the Northern Cape, a group disgruntled with the leadership of chairman John Block

are campaigning to replace him with his deputy, Godfrey Oliphant.

Mr Block is facing charges of corruption, but has the support of the provincial ANCYouth League and the womens league.

The Eastern Capethe second-largest provinceseems undecided. Its largestregion, OR Tambo, will hold an elective conference in two weeks time.

Director of the Centre for the Study of Democracy, Prof Steven Friedman, saidyesterday Mr Zuma may face more difficulties in the upcoming elective conferences,

but that it was impossible to gauge candidates progress because the leadership

question in the ANC was being kept under wraps.

"There is a proxy war going on right now with all sorts of interpretations put on it,"

he said.

However, Prof Friedman said that it was unlikely that Mr Sexwale would challengeMr Zuma.

" You dont take on a sitting president without being sure that you have 75% of thesupport behind you," Prof Friedman said.

The process of nominating leaders publicly remains closed until October.17 May

2012

The New AgeSandile Hlangani

Zuma condemns DA-Cosatu protests

Addressing The New Age business briefing in Bloemfontein, President Jacob Zuma

has condemned with strongest terms the violent protest flanked by Cosatu and DAsaying that you can't produce a solution by fighting people who disagree with you.


10/36

17 May 2012 10

We should have allowed the protests between DA and Cosatu to take course

peacefully and in my view there was no need for violence, said Zuma.

He said that in a democratic country people should be allowed to voice their concernsand to exercise their rights by protesting.

We are a democratic country, people have democratic rights to voice their concerns

but we will never accept violence by people who are protesting, said Zuma.

I do not understand why you will not allow others to deliver a memorandum to you,

he added.

He also took a swipe on Mdluli saga saying that people should give the minister ofpolice Nathi Mthethwa the opportunity and space to deal with Mdluli matter.

He however, reassured the masses that the constitution has provisions to protectcitizens from violation of rights.

Mdluli matter is being looked into by the police minister and he should be given

space to deal with that and he will be guided by the constitution, he said.

Meanwhile, in recent weeks there have been calls from opposition parties includingthe expelled ANC Youth League president Julius Malema that former head of crimeintelligence Richard Mdluli be removed from all police establishments.

Asked about the recent rape incidents across the country, Zuma said the governmentis launching a campaign that seek to protect childrens rights under the theme

working together to protect children.

Meanwhile on Wednesday DA national spokesman Mmusi Maimane laid chargesagainst Cosatu after a protest by the party turned violent in Johannesburg.

Charges of incitement of violence, intimidation and illegal gathering were laid at theHillbrow police station at noon. The DA would also analyse the footage of the marchto try and identify individual perpetrators.

16 May 2012

Business DayPage 3

Sam Mkokeli

SA its ownworst enemy in its bid to chair AUCommission

Influential African states fear a victory for Home Affairs Minister NkosazanaDlamini-Zuma will give South Africa too much dominance on the continent


11/36

17 May 2012 11

Home Affairs Minister Nkosazana Dlamini-Zuma s path to becoming the AfricanUnion (AU) Commission chairwoman is packed with obstacles, some of whichanalysts said yesterday could be attributed to the actions of her own government.

It has emerged that opposition to a South African occupying the position is growing,with Kenya last week voicing its disapproval.

At home, Dr Dlamini-Zuma is well respected. She is credited with turning theDepartment of Home Affairs from a shambles into a reliable, efficient agency, andshe has vast foreign affairs experience.

A government official says Ms Dlamini-Zuma commands a lot of respect in theCabinet and within African National Congress structures. It is her managerialcompetence that the South African government is banking on, in its ambitious drive tocontrol the administrative arm of the AU.

But the odds are stacked against her. While the other 14 Southern AfricanDevelopment Community countries are united behind her, influential African statesfear a victory for SA would give it too much dominance on the continent.

The phenomenon of small countries fearing big ones allows candidates from smallcountriessuch as Gabonto fare well. Incumbent AU Commission chairmanJean Ping is a former Gabonese foreign minister.

Tom Wheeler, a foreign policy analyst with the South African Institute ofInternational Affairs, said yesterday Dr Dlamini-Zumas candidacy was "doomedfrom the start because there is an understanding that this position is for smallerAfrican countries. As we saw in the first round of voting (in January), she was notsuccessful."

He said Dr Dlamini-Zuma and SA would be humiliated again in the July election.Even if she pulled out now, it was too late to avoid embarrassment. "Whateverhappens, SA is going to be embarrassed or humiliated, I dont think they will besuccessful." Some countries saw SA as being "too pushy" for wanting a post generallyreserved for small countries.

It is understood that International Relations Minister Maite Nkoana-Mashabanewho succeeded Dr Dlamini-Zuma in the foreign affairs portfoliocame up with theidea of a South African occupying the post. Victory would boost Ms Nkoana-Mashabanes standing outside SA as the foreign minister under whose reign SA

gained control of the administrative levers of Africa.

A delegation from SA failed to win over the Kenyan government last week, as theinfluential country voiced its support for Mr Ping.

African leaders met in Cotonou, Benin, on Monday, where SA pushed for the post tobe given to Southern Africa in terms of a rotational gentlemens agreement.


12/36

17 May 2012 12

In Pretoria yesterday, Ms Nkoana-Mashabane said SA had not given up on persuadingKenya to back Dr Dlamini-Zuma, who was endorsed by a coalition of African

businessmen and professionals in Ghana on Monday. The forums president, PrinceProsper Ladislas Agbesi, reportedly said: "It would be a victory for gender equalityand indeed affirmative action for the whole continent, since all three AU chairmen till

now have been men."

15 May 2012The New Age

Ofentse Ratsie and Sapa

Madonsela praises appointment of MilitaryOmbudsman

The Department of Defence and Military Veterans succession on the

establishment of South Africas first Military Ombudsman, a body set upto investigate complaints raised within its department. The move wascongratulated by the Public Protector Advocate Thuli Madonsela.

Speaking at the opening ceremony of Lieutenant-General Themba

Mathanzima in Pretoria on Monday, Madonsela celebrated the speed atwhich the legislation regulating the existence of the Ombud and theestablishment of the office had been done.

She also appreciated the decision to hold a swearing-in ceremony asthat would go a long way towards ensuring visibility and ensuring

accessibility of the important office.

The idea to establish a Military Ombud had partly been triggered by

her office after seeing the crisis of soldiers. This is particularlythe retired ones and military veterans, who often took their grievances

to her office.

Madonsela says there was a need for a faster mechanism with the

necessary expertise to resolve military complaints expeditiously.

"My team and I had a small contribution to the giant step that is beingtaken today. We approached the Minister in 2010 with this idea and she

indicated that she was happy with it but also that it was an idea they

had previously mooted and that a lot of work had already been done onit," she said.

The Public Protector said, she was happy that a lot of comments fromher office on the first draft legislation of the Military Ombud wereimplemented. These include the recommendation that the Ombud be

appointed by the President. Their rank must be equivalent to a Judge,their required qualifications, the name of the office and the need for

the office to be financed directly.

"There was a lot of emphasis on independence and impartiality. Thefinal product is excellent, however, there may be a need to tweak it a

bit as it looks as if my jurisdiction and possibly that of otherChapter 9 bodies has been ousted," she said.


13/36

17 May 2012 13

She, however, indicated that she was happy with the fact that the Act

made it clear that a decision of the Ombud had to be taken on reviewand therefore unilateral refusal to implement was not an option.

On her expectations regarding the work of the Ombud, the Public

Protector said it was a good idea to appoint an "insider", explainingthat this could work excellently if Lieutenant-General Mathanzima uses

his "insider status" and seniority to leverage respect for the office.

"If he treats the defence family as the mafia, he will be inviting themto disrespect the office. However, I do not expect him to do thatbecause he has a history of integrity," she said, adding that to be

effective the office needed rigour, speed and remedies that will bringcomplainants as close as possible to where they would have been had the

department acted right in the first instance.

The Defense Minister, Lindiwe Sisulu and her department are expected to

respond swiftly and honesty when questioned by ombudsman. She furtherexpected swift implementation of findings and recommendations.

15 May 2012The New AgeWarren Mabona

Malema: Ill be ANC president

A defiant Julius Malema yesterday threw down the gauntlet to theleadership of the ANC when he declared his ambition to be president ofthe party.

Malema was addressing a media briefing in Johannesburg.

Im telling you this today and you can put it in your archives. I will

lead the ANC one day, Malema said.

I have no worry about what is happening now. I have nothing personal

against Zuma and Secretary-general Gwede Mantashe because they are ourleaders.

Flanked by his youth league lieutenants, Floyd Shivambu and SindisoMagaqa, Malema also vowed to remain the president of the youth body.

He said he was called by the ANCYL to be their president while herding

cattle at home.

I heeded that call. The ANC is my home and nobody will chase me away

from it, Malema said.

The firebrand former leader described his expulsion and the suspension

of his two lieutenants as a move by the ANC to isolate them and deny

the youth wing autonomy. He said the outcomes of the ANCs national


14/36

17 May 2012 14

disciplinary committee of appeals (NDCA) were concluded before thedisciplinary process commenced in order to settle political scores.

Malema said he still considered himself a member of the ANC and wouldnever challenge his expulsion in court.

I am the ANC. I cant take myself to court.

Contrary to speculation, the expelled youth leader also emphaticallydenied that he planned to start a breakaway political party.

It has never crossed my mind. I will never do that, Malema said.

My blood is black, green and gold. I will die in the ANC. I will stay

and sleep here, outside the gate of the ANC. My umbilical cord was

buried here in the ANC.

Malema also shot down reports that he called President Jacob Zuma a

dictator.

He also denied media reports that Human Settlements Minister TokyoSexwale donated R100000 to his family trust.

"I said there are issues settled in an undemocratic manner in this

country, said Malema.

I have not received money from Comrade Tokyo. I wish I can receive

some from him, especially the one that comes from a comrade who does

not have blood (on his hands). Comrade Tokyo cannot buy me forR100000.

Contrary to media reports that he was bankrupt, Malema said his

personal coffers were full. He also denied allegations of involvementin fraudulent tender practices.

I have never been to any government offices to give instructions on

the awarding of tenders, he said. Unlike his previous defence of Zumawhen he was charged for corruption, Malema said that he supported thereopening of the charges.

f there is a basis for corruption charges to be reinstated and for

President Zuma to have his day in court, so be it, said Malema.


15/36

17 May 2012 15


Phuti Mosomane and Sapa

Ambassador post for Mdluli: MalemaLt-General Richard Mdluli must be removed from the police service,expelled ANC Youth League president Julius Malema said in Johannesburgon Monday.

"He is a serious threat to state security. Mdluli said I participatedin the plot against President [Jacob] Zuma. My name is there, I havenever been part of any plot," Malema told reporters.

Mdluli was moved as head of the crime intelligence unit to another

position last week. So far, he has had fraud and corruption, and murder

charges against him, dropped.

Malema said fabrication of information was a serious threat.

"Now our phones are being listened to. When you greet on the phone...then you must greet Mdluli."

He said moving him to a different position did not help.

"If we can't trust the police, who are we going to trust?"

Malema said people could not even accept police protection because then

"you are driving with Mdluli permanently".

He said people were living in fear.

"We are creating a police state. We are being policed."

This applied only to people who expressed a different view, said

Malema.

"So... if I was responsible for those things, the man must be askednicely to resign, and then he can be offered ambassador something

nice... Somalia... and then you deploy him there."

President Jacob Zuma has denied that he ever received a letter from

former head of Crime Intelligence Lt-Gen Richard Mdluli stating thatfour senior police managers were plotting to remove him from thepolice.

In a reply to a parliamentary question from cope MP Leonard Ramatlakaneon Friday, Zuma said he was not even aware of the content of Mdlulis

letter.

He said they were taking matters of national security seriously andthat was why Police Minister Nathi Mthethwa had decided to take action.

The government does not want members of the security cluster to beinvolved in personal clashes by using state machinery.


16/36

17 May 2012 16

Zuma said, in a statement issued by his office later, while he

appoints the national commissioner of police he does not get involvedwith officials serving under the police chief.

14 May 2012

Business DayPage 3

Karl Gernetzky

Information bill worse than apartheid IFPsMncwango

MP Albert Mncwango says the concessions made by the African National Congresswill not be sufficient to satisfy the public

The Protection of State Information Bill was "worse than apartheid", and representeda move by the African National Congress (ANC) to cover up its own inefficiency,Inkatha Freedom Party (IFP) MP Albert Mncwango said yesterday.

ANC members of the National Council of Provinces committee processing the bill

proposed on Thursday that section 43which criminalises revealing classifiedinformationmake an explicit exception for cases where "such disclosure revealscriminal activity".

The secrecy bill, as it has been nicknamed by its critics, was passed by the NationalAssembly late last year amid calls by opposition parties and lobby groups for theinclusion of a public interest defence.

The bill was then referred to the National Council of Provinces for its concurrence.

Speaking at a community meeting in Port Elizabeth yesterday, Mr Mncwango said theconcessions made by the ANC would not be sufficient to satisfy the public.

Mr Mncwango said the rationale behind the Protection of State Information Billappeared to be that the ANC wanted to "cover up its actions and its inefficiency".

If voters had access to all such information, no one would ever vote ANC again, MrMncwango said.

The ANC was putting the will of "the spies, the secret services and the securityapparatus" ahead of that of the people.

Other political parties, churches, the media and members of the public had voicedtheir concern about the proposed legislation, he said.

"This is even worse than what happened during apartheid, when even the worst laws

were supported by a segment of the South African population," he said. This meantthat SA was faced with a "coup detat".


17/36

17 May 2012 17

The South African National Editors Forum (Sanef) on Friday welcomed the ANCsproposed amendments, saying they appeared to be in the right direction.

"It seems clear that members of the committee have decided that the legislation must

reflect the fact that the vast majority of those who made submissions on the bill calledfor a public interest defence to be inserted, along with other important changes,"Sanef chairman Mondli Makhanya and media freedom chairman Nic Dawes said.

Sanef said t he proposed amendments would be studied carefully.

Mr Mncwango said the public needed to make Parliament reject the bill, if necessaryby occupying Parliament in such numbers that it would be impossible for it to bepassed into law.

"The people, not Parliament, shall have the final say," he said.

Congress of the People president Mosiuoa Lekota said l ast week, referring to the bill:"We cannot be quiet in the face of dictatorship that is intended to suppress thepeople."


Sandile Hlangani

Give Mthethwa space to deal with Mdluli matter: Zuma

President Jacob Zuma said people should give the minister of police Nathi Mthethwathe space to deal with Mdluli matter.

He reassured the masses that Constitution has provisions to protect citizens fromviolation of rights.

Mdluli matter is being looked into by the police minister and he should be givenspace to deal with that.

Meanwhile , in recent weeks there have been calls from opposition parties includingthe expelled ANC Youth League president Julius Malema that former head of crimeintelligence Richard Mdluli be removed from all police establishments.

17 May 2012Business Report

Page 15Ethel Hazelhurst


18/36

17 May 2012 18

ANC policies may dictate credit rating

The ANC national policy conference next month could prove a watershed for South

Africas credit status. This emerged yesterday at the Moodys Investors Service sub-Saharan Africa credit risk conference in Johannesburg.

Kristin Lindow, Moodys lead South Africa analyst, expressed concern about policy

papers submitted ahead of the event. They marked a definite change in economic

policy with an interventionist approach to the mining sector and threats to property

ownership.

Speaking on the sidelines, she said Moodys did not undertake sovereign reviews

routinely, but reacted to developments. She warned that further signs that populistpressures were driving government policy in the wrong direction could trigger a ratingdowngrade.

The conference in June will give us some clarity about where (the) government is

going.

Ratings determine the interest governments pay on their borrowings; the lower therating the higher the bill. Moodys initially assigned South Africa an investment grade

rating in 1994, the first rating agency to do so, and it currently has the country on A3,four notches above the lowest investment grade.

However, Lindow noted that, in some respects, South Africa had moved closer toBaa country medians than A range medians. She was referring to institutionalindicators which include enforcement of contracts, predictability of policymakingthrough successive political cycles and the freedom of the press.

In November last year, Moodys changed the sovereign outlook from stable to

negative, due to concerns about the future of fiscal policy, given the increasingdemands made on the government purse. A negative outlook means the next move islikely to be down.

Lindow explained the drivers behind the change to a negative outlook. They included

the rising ratio of debt to gross domestic product (GDP) since 2008. The ratio of netloan debt has risen from 22.8 percent in 2008/09 to 36 percent in the current fiscalyear.

Also a negative, Lindow said, was the significant increase in contingent liabilities in

the non-financial public sector. In other words, the government has beenunderwriting the rising debt of public enterprises and other state institutions.

Among these entities is the SA National Roads Agency Limited (Sanral). The about-turn on Sanrals introduction of tolling on Gautengs highways at the end of last

month has increased this burden: the government will have to help the road agency

service its debt as it has been deprived of expected income from tolling.


19/36

17 May 2012 19

Lindow cited the reversal as an example of policy unpredictability. Ahead of ajudgment that halted tolling last month, the ANC and Cosatu decided to postpone itsintroduction. This move was seen as particularly inappropriate as the NationalTreasury had intervened in the action on Sanrals behalf and was unaware of the

move. Moodys subsequently cut the road agencys status from Baa1 to Baa2 after

revising it down from A3 at the end of February.

However, Lindow also identified positives, particularly the governments track

record of coherent fiscal, monetary and exchange rate policy mix. She noted the

build-up in foreign exchange reserves over the past decade to about $50 billion(R415bn), from an earlier negative position. And she praised the moderate and

predominantly domestic currency denominated public debt. Domestic borrowing

protects a country from shifts in exchange rates.

17 May 2012

Business DayPage 2

Linda Ensor

SAA needs state cash to renew its fleet Gigaba

South African Airways (SAA) needed to be recapitalised by the state to allow it torenew its fleet of aircraft and roll out its African aviation strategy, Public EnterprisesMinister Malusi Gigaba said yesterday.

The strategy, which is scheduled to be submitted to Cabinet next month, would targetAfrica as the primary market for SAA and for its low-cost offshoot Mango.

Mr Gigaba would not quantify the proposed cash-injection, which he said was stillunder discussion with the Treasury, and disputed the R6bn figure reported earlier thisweek on the basis of comments by SAA CEO Siza Mzimela.

Talks were also under way with the Treasury over additional funding for state-ownedarms manufacturer Denel, the minister said in his budget vote speech in an extendedpublic committee of the National Assembly. This would be in addition to the R700m

capitalisation of Denel Aerostructures announced by Finance Minister PravinGordhan in his budget in February.

Government support for Denel was required so that it could convert its "substantialpipeline" of orders "into bankable orders given the intense competition in the sector".

SAA is already benefiting from state financial support in the form of a R1,3bnsubordinated loan and a R1,6bn "going-concern" guarantee to underpin its cashrequirements.

Mr Gigaba said at a media briefing before his speech that it was vital for SA to

maintain its own flag carrier to ensure the continuity of air travel into and out of SA


20/36

17 May 2012 20

and achieve its international objectives. State support was needed to purchase fuelefficient aircraft that would boost SAAs competitiveness.

But he emphasised that the aid would not be limitless and that SAA would have tostand on its own once it was properly capitalised. The state funding would not be a

bail-out as SAA was not in the red.

"Given our location on the southern tip of Africa and the extremely volatile nature ofthe airline industry, I believe that it is critical that we sustain a national flag-carrier toensure security of air transport to our country," he said. "The damage both to businessand tourism of unreliable air-travel to SA would be immeasurable.

"The dual challenge of a depressed global economy and high fuel prices means thatshareholder support for SAA to procure a modern and fuel-efficient fleet is vital if itis to remain competitive."

SAA has introduced five new routes in Africa since October with the one to Cotonou,Benin, starting from today, and it plans to launch two more later this year.

Ms Mzimela said earlier this week that SAA needed a cash injection to strengthen itsbalance sheet for fleet renewal and to introduce a premium economy class and extendbusiness class cabins on long-haul flights. New, fuel-efficient aircraft would help tomake SAA financially sustainable in the future and enable it to increase flights,services and distribution, she said.

Mr Gigaba also said Transnet would cover two-thirds of its R300b n infrastructureprogramme with "retained earnings".

He said in the next quarter, Transnet would introduce a seven-year fleet locomotiveprocurement, unprecedented in SAs history.

17 May 2012

Business DayPage 3

Natasha Marrian

ANC failures help DA to get black voteCosatu general secretary Zwelinzima Vavi says the African National Congress mustdiverge from the Democratic Alliance in both policy and posture or risk losing votesTHE African National Congress (ANC) must diverge from the Democratic Alliance(DA) in both policy and posture or risk losing votes, Congress of the South AfricanTrade Unions (Cosatu) general secretary Zwelinzima Vavi warned yesterday.

Mr Vavis comments came in the wake of a march by the DA marred by violentaltercations between Cosatu members and DA supportersto voice its displeasureover the federations opposition to the youth wage subsidy, a policy that the

government had sought to implement.


21/36

17 May 2012 21

Cosatu has used its alliance with the ANC to push forward worker friendly and pro-poor policies, but often clashes with the ruling party over its economic stance. It hasaccused the ANC of talking left but walking right.

At its international relations policy conference in Kempton Park yesterday Cosatu

congratulated workers for "defending" it on Tuesday, forc ing the DA to abandon itsbid to hand over a memorandum.

Mr Vavi said the failure to address unemployment, inequality and poverty left manyvulnerable to exploitation by "demagogues who pretend to be the left while pursuingtheir own narrow interests" or "the right wing who see acres of space to occupy forthemselves to agitate for a change of direction".

"We can say anything we want, comradesthat they (the DA marchers) were ill-informed young people abused by the white madame, we can say all that, but that alsotalks to the extent of their marginalisation; an empty stomach has no ideology, no

logic, not rationality. An empty stomach is desperate.

"To me the significance of that (the march) is much more bigger. Clearly the DA hasseen that there is a niche for themselves to exploit this desperation of the workingclass."

It was not an "easy thing to swallow", Mr Vavi said, watching young unemployedAfricans "who made most of the noise". This, and the DA holding a Workers Dayrally with an audience of about 98 % young Africans were "not a small matter".

"This is a dangerous place we are finding ourselves in and it goes back to the point

that the ANC must go back in posture and in policy and must be different to the DA.

"We cant be fighting the youth wage subsidy with these forces and then fight other

forces inside the house," he said.

"We cant be fighting the commodification of even our roads with the DA and then

fight with our own forces inside the house," he said.

This was the reason many left-leaning parties in Europe lost power in the past,because "in the eyes of the ordinary people" there was little difference between the

labour party in the UK, for instance, and the conservatives.

Mr Vavi said another "own goal" was the fact that now-shifted crime intelligenceboss, Richard Mdluli was still in the police. He questioned the logic of having apoliceman facing "that magnitude of allegations" in the South African Police Service.

The ANCs policy conference next month was the perfect opportunity to go "back to

basics". He warned against viewing everything through the narrow prism of thesuccession in the partys election year.

17 May 2012

Business DayPage 4


22/36

17 May 2012 22

Bekezela Phakathi

Criticism of 30% matric pass surprises Motshekga

Basic Education Minister Angie Motshekga has defended the controversial 30%matric pass mark, saying it is "reasonable", and that she is surprised at the criticismBasic Education Minister Angie Motshekga defended the controversial 30% matricpass mark yesterday, saying it was "reasonable", and that she was surprised at thecriticism.

Prominent academics such as Prof Jonathan Jansen and Mamphela Ramphele haveexpressed criticism in recent months about the National Senior Certificate.

Earlier this year, Dr Ramphele said the 30% pass benchmark degraded educationstandards and last year, Prof Jansen, vice-chancellor at the University of the FreeState, described the 30% pass mark as a "political football".

He said to earn a matric certificate, pupils need to pass two out of six subjects with30%, and four with 40%whereas under apartheid a 33% average was needed.

"You no longer need 50% to pass certain subjects, which means you can becompletely ignorant of more than half the subject matter content and still pass," hesaid.

Speaking ahead of her budget vote speech, Ms Motshekga said 30% as a pass mark

was reasonable. "It is a reasonable pass. In the old curriculum when we hadstandard and higher grade, you could pass at standard grade with 25%, it wasrecognised.... 30% is higher than what was there in the past.... Really, as a teachermyself, 30% for a slow learner is fine," she said.

It was necessary to create space to allow "kids with basic skills to proceed with life",she said.

"It is 30% of what is assessed. When you set up a question paper, you assess differentlevels of competency in terms of the skills required ... and when we say 30%, it meansthat person has been able to master the basic skills.

"It is 30% of a subject, not of your overall pass. The standards can only be measuredin terms of the whole overall pass." Ms Motshekga said there was evidence thatdemonstrated the "high standards of our national senior certificate".

"To obtain admission to university study for a bachelors (degree), with the old seniorcertificate, a candidate needed to pass four subjects at 40% and two at 33,3%. (Now)admission to bachelor studies requires a pass in four subjects at 50% and theremaining at 30%".

Ms Motshekga also announced that to improve both the "quality and quantity" of

passes in mathematics and science, the Department of Basic Education wouldimplement a new national strategy for those subjects.


23/36

17 May 2012 23

"It reinforces Dinaledi schools programme, which has received a conditional grant ofR99,7m for 2012-13." Dinaledi is a government programme meant to improve passesin math s and science.

She said the department would convene a mathematics and science indaba with keyeducation stakeholders next month.

Speaking at the same briefing, the departments director-general, Bobby Soobrayan,said there was an assumption in SA that everybody who holds a National SeniorCertificate must "qualify for every offering in the labour market".

"It has never been the case, it cannot be the case, and that is what is contributing tothe misunderstanding (of the 30% pass mark) and people are attributing thatphenomenon to the National Senior Certificate," Mr Soobrayan said.

Last month, education expert Prof Graeme Bloch said he would rather see a largernumber of pupils attain a grade 12 certificate, even with a 30% pass. He said bettermarks did not guarantee jobs.

17 May 2012

Business DayPage 4

Setumo Stone

Consumer chief may ask Zuma to intervenePresident Jacob Zuma might have the final word in the longstanding struggle betweenNational Consumer Commissioner Mamodupi Mohlala-Mulaudzi and her bosses inthe Department of Trade and Industry.

Ms Mohlala-Mulaudzi said yesterday she would consider petitioning Mr Zuma tointervene if a pending court challenge to save her employment contract was upheld.

It seems increasingly unlikely that Ms Mohlala-Mulaudzi could enjoy any healthyworking relationship with the political and executive management within the

Department of Trade and Industry.

" I would like to go to court and have a judge make a decision (on my position beingadvertised). If Im successful then Ill be approaching the Presidency on the grounds

that I have been treated unfairly," Ms Mohlala-Mulaudzi said.

She was expected to file an urgent application at the Labour Court tomorrow to blockthe departments advertisement of her position. The closing date for applications was

set for next week.

The Presidency said yesterday it was "well aware" of the challenges facing the

consumer commission and was satisfied with the handling of the matter by Trade andIndustry Minister Rob Davies .


24/36

17 May 2012 24

However, Ms Mohlala-Mulaudzi said the future of the commission looked "bleak".

Should she go ahead, it would be the second time she has appealed for the presidentshelp, the first being after her fallout with then communications minister Siphiwe

Nyanda in 2010, which resulted in her being shifted to the consumer commission.

The commissions formation last year was seen as "a new era" in ensuring theeffectiveness of consumer protection laws. It was also viewed as a milestone in MrZumas presidential term.

Presidency spokesman Mac Maharaj said the commissioner was at liberty to decideon how to proceed with the matter.

Ms Mohlala-Mulaudzi said there had been a concerted effort over 11 months to pushher out and "many different hurdles" had been put in her way. She was appointed on

an 18-month contract in November 2010, while her deputy, Ebrahim Mohamed, wasoffered a five-year contract, she said.

Her conflict with senior officials in trade and industry over human resources andfinances began from the start.

Ms Mohlala-Mulaudzis court challenge is expected to decide whether the departmenthas to employ her for five years from the date of her appointment or whether herappointment is a continuation of the two-year contract she had with the Department ofCommunications as its director-general.

Ms Mohlala-Mulaudzi said she might have "stepped on many toes", and there couldbe a fear by business that it could lose a lot of ground if the work of the commissioncontinued at the current pace. So far the commission had issued more than 850compliance notices, and more than 1000 consent agreements were reached withbusinesses.

The commission had among other things investigated fraudulent property schemes,where consumers said they did not have access to homes they had bought; as well asfraudulent motor industry schemes, where used cars were purportedly sold as new. Itis understood that some major business players, including in the motor industry and

information technology, would be happy to see Ms Mohlala-Mulaudzi gone.

But questions had also been raised about the stability of the commission and itsemployees, and it had often been seen to be stumbling over its own procedures. MsMohlala-Mulaudzi is expected to respond to allegations that she maltreated some ofher staff. She said yesterday the allegations against her were "made up of gossip andunsubstantiated information".

In March this year, Mr Davies said the Department of Trade and Industry wouldconsider granting more funds to the commission once it had improved its financialmanagement, amid allegations it was experiencing challenges with internal controls

and administration.


25/36

17 May 2012 25

This was a few weeks after Ms Mohlala-Mulaudzi complained to Public ProtectorThuli Madonsela that the department had starved the commission of the funds neededto fulfil its mandate, and had interfered in financial and human resource issues.

The commissions budget for the 2012-13 financial year was R43m, which the

opposition Democratic Alliance had said was not enough in light of the importantwork it was doing to enforce consumer rights.

Ms Mohlala-Mulaudzi said staff at the commission had not been paid their latestsalaries, which had been due on Tuesday.

Earlier this week, Mr Davies said financial management "challenges" at thecommission had persisted. He defended his departments position on the terms of Ms

Mohlala-Mulaudzis work contract, saying he had told her that the position would beadvertised "in the interest of good governance" and she was "welcome to apply".


Page 13

Tim Cohen

Surveys help to explain trauma in the ANC

Two important surveys were published this week, both of which had interesting twistsfor reasons that are hard to explain. Both were done by research house TNS among

2000 adults in the seven major metropolitan areas, they were weighted to race andincome group and are claimed to have a 2,5% margin of error. This is not a hugesample group, but its reflective and probably the best indication we have of popular

sentiment.

The first was a simple approval/disapproval measure for President Jacob Zuma ,which has been done regularly over the past three years. A similar survey was donefor Deputy President Kgalema Motlanthe . The result showed Zumas approval rating

has declined to less than half of SAs voters. Its not quite the lowest its been, but its

pretty close. His "approvals" are now at 46%, down nine percentage points in a fewmonths. But really worrying are his "disapprovals", which have never been higher.

They are also currently pegged at 46%. The "dont know" column has been shrinkingand, unfortunately for Zuma, is being added to the "disapproval" column. This meansthe more people make up their minds, the less they approve of him.

Even worse for Zuma, when asked the same question about Motlanthe, the opposite istrue: the more they get to know him, the more they like him. Motlanthes pop ularity,at 49%, is now a bit higher that Zumas. This is the first time this has happened too. In

2008, 40% of respondents offered no opinion on Mot lanthe. Now, only 15% respond"dont know" and most of those who have made up their minds have boosted

Mothlantes positives, although it must be said his negatives rose between Octoberlast year, from 25% to 36%. Still, he can boast 13% net positives about his

performance, which Zuma cant.


26/36

17 May 2012 26

Looking at these numbers, it easy to understand why there is such trauma in theAfrican National Congress (ANC) over leadership, and why Tokyo Sexwale hasreportedly decided it is time to t ake a stand. If voters vote along these lines next year( they wont, of course), the ANC could find itself having to rule in coalitio nanextraordinary thought.

So, why has Zuma been losing support? The most instinctive response would be thathe is suffering from taking on the ANC Youth League and Julius Malema. But this isthe interesting thing. The data suggest this is not the problem at all; quite the oppositeactually. The age group most positive about him are people 18 to 34 years old51%

and this has been steady over the past four poll readings going back to lastSeptember. Zuma is losing support among adults and his biggest problem is peopleolder than 60.

I think there is one positive for Zuma that comes out of all this: his political radarseems to be operating pretty well. He must have weighted the possibility that

expelling Malema would cost support and correctly rejected it. I suspect the declinewas actually the consequence of the police drama, and once again, Zuma did respondafter the poll was taken, demoting crime intelligence head Richard Mdluli.

But of course, it is not poll numbers that matter to Zuma, its constituents at theANCs conferences. Interestingly, Malemas post-expulsion support has actually risena bit in some areas, perhaps out of sympathy, notably in Johannesburg and Soweto.But his positives still remain low, at about 21%, and his negatives remain high.

The second survey is even more cryptic, showing that a narrow majority (41% to39%) feel the constitution should be changed.

The twist is that the majority of black South Africans (a narrow majority, it must besaid) feel the constitution should not be changed.

Other race groups are much more pro-change. The pollsters tell me that they, too,were surprised by this result and that they have not yet investigated the reasons somany people want the constitution to be changed.

These polls demonstrate a huge distance between SAs political class and popularviews.

Some popular notions of the political class (that SA has a "fabulous" constitution, forexample) are much more contentious than they believe. Thats not unusual

internationally, but it is a concern.


27/36

17 May 2012 27

17 May 2012The Times

Page 1

Chandr Prince

Vavi warns ANC of 'ticking bomb'

Cosatu general secretary Zwelinzima Vavi sent a warning to the ANC yesterday,saying the party needed to get its house in order or face a revolt similar to the 1976riots against Bantu education.

Vavi said the ruling party had landed itself in a "very dangerous place" and needed todo some serious introspection to salvage its losses and improve the lives of ordinarycitizens.

The warning was given a day after thousands of DA supporters marched on Cosatu'sheadquarters in Braamfontein, Johannesburg. The march ended in chaos followingviolence between DA and Cosatu supporters.

In a keynote speech at the trade union federation's international policy conference, inKempton Park, on the East Rand, Vavi warned against the ANC's policies which, hesaid, were failing the poor and unemployed.

Criticising some of the ruling party's recent controversial decisions - including thereinstatement of crime intelligence chief Richard Mdluli - Vavi said the ANC must

focus on the poor and not on fights for leadership.

The ruling party will in December hold an elective conference in Mangaung at whichPresident Jacob Zuma is expected to fight for re-election.

"South Africa as a country is sitting on a ticking bomb that one day will explode ...Another 1976 is waiting to happen.

"If we preoccupy ourselves with palace politics while Rome is burning, then historywill judge us equally and harshly."

Vavi's critique of the ruling party was sparked by Tuesday's march by DA supporters- mainly black youths - in protest at rising unemployment and the government'sfailure to introduce a youth wage subsidy.

"A country that has this magnitude of unemployment in the midst of this opulenceworkers see every day, a country that tolerates for 18 years those kind of inequalitiesto just grow and grow and deepen, and with the poverty that not only grinds buthumiliates such a huge number of the population - we are sitting on a ticking bombindeed."

Earlier this month, the International Labour Organisation released statistics that

showed that unemployment in South Africa was at 23.9% and that 70% of theunemployed were between 15 and 34.


28/36

17 May 2012 28

Vavi warned that, if radical policy changes were not effected, the ANC could see theD A gaining more sympathy from the working class.

"If we don't stop the real crisis, then those 3000 [DA marchers] will become 6000.

"It will eventually succeed. Eventually all of us will be in very, very hot water in notime."

In addition to the DA's march, Vavi said the intensity of violent service deliveryprotests should be a sign that South Africans are losing faith in the ANC's policies.

"That ticking bomb is starting to explode, judging by the number of service deliveryprotests all over the country.

"Unless we break with what is currently unfolding - I'm not an alarmist - we may see

[the events that have been] unfolding in Europe in the past two years being revisitedhere in South Africa."

The ANC will hold its policy conference next month. This will be an opportunity forit to address these issues.

"It can't be business as usual. We offer nice rhetoric but in practice we are not verydifferent.

"We can talk about the Freedom Charter and this history and nice things we hearabout now, but in essence there is no difference in the content."

Cosatu - which was instrumental in pressuring the ANC into delaying thecontroversial e-tolls, which would have hit motorists hard in the pocket - saidunemployment was still too high.

"Is this not a reality that a growing number of those 72% unemployed in the countryare beginning to lose hope because they have been waiting for far too long? If they arelosing hope they find new heroes," said Vavi, referring to the sea of blue T-shirtedDA supporters who descended on the Johannesburg city centre on Tuesday.

He said the march was significant and that nobody could claim that the thousands ofblack DA supporters were ill-informed and there merely to support "the whitemadam".

Describing the march as a "very critical thing that happened", Vavi said it boileddown to the fact that "an empty stomach has no ideology, has no logic, no rationality.[A] stomach is desperate.

"[For] me, the significance of that march is far bigger because the DA has seen theneed for itself to exploit this desperation of the most marginalised ."


29/36

17 May 2012 29

While Vavi was launching his vitriolic attack on the ANC, President Jacob Zuma, in aresponse to a DA parliamentary question, confirmed that Cosatu remained thestumbling block to the implementation of the youth wage subsidy scheme.

DA parliamentary leader Lindiwe Mazibuko said: "This is a president who is afraid to

make the tough choices that would benefit so many unemployed young people.

"So what is the hold-up?

"Why does the president need to seek further buy-in from Cosatu?"


Page 5

Nashira Davids

Hlophe back in dock

The complaint against embattled Cape Judge President John Hlophe has come underthe spotlight yet again.

The Judicial Service Commission's judicial conduct committee will meet on May 31to consider the allegations against Hlophe.

Last month, Dumisa Ntsebeza, the commission's spokesman, said a report by its

litigation committee had referred the complaint against Hlophe to the conductcommittee.

In terms of legislation, Chief Justice Mogoeng Mogoeng and his deputy, JudgeDikgang Moseneke, will lead the conduct committee.

Yesterday, Lulama Luti, a spokesman for Mogoeng, said members of the conductcommittee had been trying to secure a "meeting date as a matter of priority" since lastmonth.

In addition to Mogoeng and Moseneke, the conduct committee includes Judge

President of the Supreme Court of Appeal Lex Mpati, Free State Judge PresidentHendrik Musi, Judge Roshnie Allie and Judge Cynthia Pretorius.

Hlophe's woes started in 2008 when Constitutional Court judges Bess Nkabinde andChris Jafta alleged that he had tried to influence them in their consideration of thecorruption allegations against President Jacob Zuma.

A complaint of misconduct by Hlophe was made to the JSC by the ConstitutionalCourt judges.

In 2009, the commission cleared Hlophe.


30/36

17 May 2012 30

But then Western Cape premier Helen Zille argued in the Cape Town High Court thatthe JSC had not been properly constituted when it made its decision.

Zille said that, as premier, she should have been party to the decision.

Her application was dismissed but she succeeded in the Supreme Court of Appeal.

The non-government organisation Freedom Under Law asked the Pretoria High Courtto order the JSC to reopen its investigation of Hlophe. Its application was dismissedbut, as with Zille, the Supreme Court of Appeal ruled in its favour.

Hlophe unsuccessfully appealed both judgments in the Constitutional Court.

The ruling revived the NGO's bid to have him declared unfit for the bench.

When the JSC deliberated on the matter in Cape Town last month, Mogoeng recused

himself because he had, at the time, tried to mediate in the dispute between theConstitutional Court judges and Hlophe.

Luti would not say whether Mogoeng would recuse himself from the judicial conductcommittee meeting later this month.

"This meeting will discuss all the complaints and appeals before the committee andtherefore the issue of the chief justice's recusal is not necessarily on the agenda."


Page 4Sapa

Drop in youth support for Malema

Only 20% of metropolitan adults support what Julius Malema says and does, a recentsurvey revealed.

"This is in the same region as the 17% of September 2011, the 21% measured in mid-

2010 and down on the 27% at the end of 2009," the researchers said yesterday.

The study was conducted among 2000 metropolitan adults by TNS South Africa, aresearch company, between April 13 and 24, before the ANC Youth League leaderwas expelled from the ANC.

Eight percent of those polled gave a "don't know" response, down from 11% last year.

Asked to agree or disagree with the statement "I support what Julius Malema says anddoes", blacks were 27% in favour, whites 8%, coloureds 5% and Indians/ Asians 6%.

Researchers found a drop in support for Malema among 18- to 24-year-olds - to 21%,from 26% in 2001 - and a rise among 35- to 59-year-olds.


31/36

17 May 2012 31

Support among 35- to 59-year-olds rose to 19% from 13%, and for 50- to 59-year-olds from 7% to 14%.

Support in the 60-plus age group rose from 5% to 6%.

Malema's support reaches 25% among the unemployed, compared with 19% amongthose working.

Twenty-one percent of men showed support for Malema, compared with 18% ofwomen.

The gender difference was "particularly marked" for blacks at 29% for men and 25%for women.

However, the figure for blacks is slightly up on the 26% for 2011, but down on the

30% in 2010.

The 8% support from whites is also up on the 2% in 2011, and 5% in 2010.

The figure for coloureds rose from zero in 2011 and 7% in 2010.

In Gauteng, Malema's overall support stood at 28%, up from 20% in September 2011.

In mid-2010, it was 23% and at the end of 2009, it was 32%.

His greatest support in Gauteng in the latest survey was in Soweto at 42% (23% inSeptember 2011, 34% in mid-2010, and 31% at the end of 2009) and lowest in theVaal Triangle at 19% (31% in September 2011, 16% in mid-2010, 30% at the end of2009).

In Cape Town, it was 9% (11% for the three previous surveys); in Durban 10% (12%for September 2011, 24% mid-2011 and 32% at the end of 2009); and in PortElizabeth 9% (22% September 2011, 8% mid-2011 and 17% end of 2009).

In East London, Malema had 14% support (9% in September 2011, 25% mid-2011,24% end of 2009) and in Bloemfontein, 11% (43% for September 2011, 33% in mid-

2001, 40% at the end of 2009).

Support levels are highest among those whose home language is Tswana (36% ) andthe lowest among Xhosa speakers (22% ), with Zulu home language speakers comingin at 25% and Sotho home language speakers at 29% .


32/36

17 May 2012 32


Page 3

Natasha Marrian and Khulekani Magubane

Stones, insults thrown as DA marches

The tit-for-tat between the Congress of South African Trade Unions and theDemocratic Alliance continues, with each side blaming the other for the violenceIT WAS the culmination of a recent war of words, as a march by the DemocraticAlliance (DA) to the headquarters of the Congress of South African Trade Unions(Cosatu) turned violent yesterday.

The DA and Cosatu have of late been at loggerheads, with the party taking on theAfrican National Congress (ANC) ally over its stance on labour broking and the youthwage subsidy. The implementation of the subsidyannounced by Finance MinisterPravin Gordhan last yearwas put on ice due to Cosatus opposition to it.

It was Cosatus opposition to the youth wage subsidy that pitted the DAs blue T -shirts against the federations red, with rocks thrown by both sides and a stunned

police force intervening with tear gas.

The march began at Beyers Naud Square in central Johannesburg and was largelypeaceful until DA members came face to face with Cosatu supporters.

Both groups sang songs and hurled insults at each other. A handful of policemenattempted to contain the situation as the groups faced off, with the DA eventuallyretreating and attempting to approach Cosatu House from another street.

They were met with the same response and eventually turned back. As they headedoff, protesters from both sides came face to face again and began throwing stones.The police, whose numbers increased considerably towards the end of the march,intervened by firing tear gas canisters to disperse the angry crowd.

The DA was eventually forced to retreat, unable to deliver its memorandum to CosatuHouse due to a barrage of federation supporters blocking the way.

As DA and Cosatu supporters uneasily eyed each other from opposite sides of thestreet, DA leader Helen Zille told the crowd of about 2000 young people that Cosatuhad lied to South Africans. "Cosatu claims to stand for the poor. We see you. We willexpose you, we will expose your lies. The DA stands on the side of the poor no

one elected Cosatu into government."

Cosatu general secretary Zwelinzima Vavi accused the DA of taking advantage ofjobless young people. "The DA hopes to get into power on the backs of theunemployed youth, but she (Ms Zille) has nowhere to run to because Cosatu hasstopped her in her tracks."


33/36

17 May 2012 33

Mr Vavi, who recently said that Ms Zille had asked him to join the DA, told Cosatusupporters after the march that he already had a wife, and a beautiful one at that.

"I am already married. We are not up for the taking, we are married to the ANC, weare married to the South African Communist Party, We are married to the Freedom

Charter," he said.

The tit-for-tat between Cosatu and the DA continued, with each side blaming theother for the violence.

None of the leaders present from either side condemned the violent exchanges, whichsaw four people injured. Instead, workers were congratulated for "defending" Cosatu.

DA spokesman Mmusi Maimane said the party would examine video footage of themarch to help police to make arrests. It would also lay charges against thoseresponsible.

Cosatu president Sdumo Dlamini said the federation wanted to know why the policeshot at its members.

Ebrahim Fakir, head of governance at the Electoral Institute for SustainableDemocracy in Africa, said yesterdays events were a "very bad indicator ofgrowingintolerance (in) society". He agreed with Cosatu on its opposition to the wage subsidy,but said that the "tragedy of the day" was that it did not allow for any policy orideological debate.

15 May 2012

Business DayPage 3Sam Mkokeli

Sexwale could be compromise candidate

Human Settlements Minister Tokyo Sexwale arrived in the Eastern Capeyesterday, a province that those hoping to unseat President Jacob Zumaare keen to control.

Mr Sexwale is a regular visitor to the province either on governmentbusiness or in his other capacities, such as his new one: undeclaredpresidential campaigner.

He was in Tsolo yesterday to participate in the Faith Healers Church

anniversary celebrations. Local journalists were curious to find out ifhe would confirm he was in the running for the African National

Congress (ANC) presidency ahead of the December Mangaung elections.However, they were disappointed when he gave a typically ambiguousresponse.

A reporter said Mr Sexwale preferred to say he was only in the Eastern

Cape to do government work. But there is more to the visit, says alocal politician, insisting that Mr Sexwale is heavily invested in the


34/36

17 May 2012 34

Eastern Cape. "He is always here, launching housing projects and thingslike that."

Such government initiatives give him a platform on which to campaign.On the political front, East London seems happy, comfortable territoryfor Mr Sexwale. The regional executive elected two months ago is one of

those that have a serious bout of ABZ the Anything But Zumasentiment.

Elected leaders headed by chairwoman Zukiswa Faku dislike Mr Zuma, itis whispered. Their issue ? They were overlooked when a team of people

to lead the local municipality was put together before last years

local elections.

But they went on to win regional ANC elections in March, an event that

created two centres of power. So there is now a powerful group thatruns the party in the province, and another one favoured by Luthuli

House in charge of the municipality. The anti-Zuma sentiment is

growing in the Eastern Capes metropolitan areas. A TNS survey releasedat the weekend showed that Mr Zuma enjoyed only 45% approval ratings inEast London, while his deputy, Kgalema Motlanthe is backed by 64% ofthose polled.

The Eastern Cape, the second biggest of the ANC after KwaZulu-Natal, isconsidered the home of the ANC, and to some within the ruling party MrZumas presidency symbolises the waning of the provinces influence in

the ANC.

KwaZulu-Natal, Mr Zumas home province, has 244900 members, or 23,8% ofthe ANCs total membership. The Eastern Cape is a close second, with

225597 members. This means the provinces will have big delegations tothe conference in Mangaung.

KwaZulu-Natal, which re-elected leaders sympathetic to Mr Zuma at theweekend, is expected to pull other provinces into voting for Mr Zuma

again. The Eastern Cape, on the other hand, is where the ABZ sentimentcould potentially grow and draw other provinces eager for change.However, unlike KwaZulu-Natal, the Eastern Cape, is not singing fromthe proverbial hymn book ahead of Mangaung.

Mr Zuma still has some appeal, and his campaigners have not given up onthe province.

Mr Zumas approval rating of 39% in Port Elizabeth makes his stronger

than Mr Motlanthes 37%. While such surveys are not specificallypolling ANC branch delegates to Mangaung, they give an indication of

leaders broader appeal in society. Mr Zumas ally, Nceba Faku, was re-elected chairman in Nelson Mandela Bay last month, giving the pro-Zuma

camp another region in the bag.

Mr Zuma could also bank on the OR Tambo region, which holds leadershipelections on May 25. This region sent the biggest delegation to the

Polokwane conference five years ago, and it backed Mr Zuma.



35/36

17 May 2012 35

Page 1Steve Mbogo

Dismay over new bid to install Dlamini-Zuma at AU

A new and apparently clumsy bid by SA to secure support for Home

Affairs Minister Nkosazana Dlamini-Zuma as chairwoman of the AfricanUnion (AU) Commission has been greeted with dismay in Kenya and Gabonahead of a meeting on the issue.

Several African leaders, including President Jacob Zuma , met inCotonou yesterday to again examine the thorny issue of a new chair ofthe AU Commission, a key post contested by Gabon and SA.

The one-day gathering was held to try to end the impasse after African

leaders failed to choose between Gabons Jean Ping, who has held the

post since 2008, and Dr Dlamini-Zuma. Mr Ping was present at theCotonou meeting.

After a meeting last week between Kenyan President Mwai Kibaki and a

delegation from SA, which included Justice Minister Jeff Radebe , theoffice of the Kenyan president called on Dr Dlamini-Zuma to throw her

support behind Mr Ping for another term.

Kenya argued that, as the position of the chairman and the vice-chairman rotates between Anglophone and Franc ophone countries, Dr

Dlamini-Zumas ascendancy would result in the forced withdrawal of AUdeputy vice-chairman Erastus Mwencha, a Kenyan.

A vote was deferred in January when neither Mr Ping nor Dr Dlamini-Zumasecured a two-thirds majority vote. The next vote will be at the AUheads of state summit in Lilongwe, Malawi, in July.

Relations between Kenya and SA have soured since the January vote whenSA was accused of putting pressure on AU member states to back Dr

Dlamini-Zuma.

Kenyas position could influence countries in Eastern Africa and the

Horn of Africa region where it enjoys diplomatic influence.

A foreign affairs commentator in Kenya said SAs bid to lead the AU wasviewed as an attempt to become the "godfather of the continent" in the

same vein as Libyas late dictator Muammar Gaddafi, because it was one

of the largest contributors to the AUs coffers.

Mukhisa Kituyi, director of the Kenya Institute of Governance and the

countrys former trade minister, questioned the combative diplomacy

employed by Mr Zuma. His "brazen efforts are not helping to keepsolidarity with Africans. Xenophobic attacks on immigrants across SouthAfrican townships have opened a wound that heals too slowly," he said.

Similar concerns were raised by Gabons foreign affairs minister,

Emmanuel Issoze-Ngondet. He said SA failed to respect an agreementunder the special AU committee formed to find a solution withoutunilateral action.


36/36

"It is with regret that we note that SA and the Southern African

Development Community have intensified campaigning for their candidate,despite the recommendations of the heads of state and government.

"This is creating confusion within African and world opinion and is

indicative of an attitude far removed from the goal of unity andsolidarity embodied by the AU," he said yesterday

Gabon reiterated its full support for the candidacy of Mr Ping, whichwas motivated by a "strict observance" of the principles governing thefunctioning of the AU, Mr Issoze-Ngondet said.

global south african news wrap 17 may 2012

Documents