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Monday, 26 September 2011 11:32

Taryne Eastwood

Corruption watch
Zumas response to increased pressure
South Africas perceived rampant corruption continues to make headlines with a number of new developments placing it in the full glare of the public spotlight. Wider factors than just the need for good governance have come into play during recent times, prompting responses from president Jacob Zuma. There are now deeper underlying factors involved, with issues like factional power struggles in the ruling African National Congress (ANC), the activities and management of the countrys security services, and the ANCs elective conference next year, coming into play. Some recent developments have dramatically increased the pressure on Zuma and his government, making it clear they could no longer simply gloss over the escalation of incidents and hope they would eventually go away. There has not been a sudden Damascus experience regarding corruption. Instead public pressure, a confluence of various developments, specific political dynamics and, most importantly, key elements in South Africas constitutional system have forced various government role-players to a point where action became unavoidable. Some of the outcomes include: Probes into tender deals in Limpopo and into the affairs of ANC Youth League leader Julius Malema; A probe into the role of national Police Commissioner General Bheki Cele in the irregular leasing of buildings and his possible
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suspension; Public Works Minister Gwen MahlanguNkabinde embarking on a public relations crusade to try and clear her own name and going to court to overturn the police property-lease deals; and A commission of inquiry to finally probe South Africas multi-billion-dollar strategic arms procurement deal. While South Africa still is one of the less corrupt African nations according to Transparency Internationals annual survey, that distinction could be changing fast. Added up the amounts involved in just a few of the current or recent corruption scandals, representing just the tip of the  Public Works Ironically it is the beleaguered Mhalangu-Nkabinde who aptly hit the nail on the head this week lamenting at a news conference that we have allowed thieves and thugs to run our country. She herself still owes the country and the Public Protectors some answers regarding her role in the R1.7bn shady police building-lease deals. Without naming any names, she clearly entered into a tit-for-tat verbal duel with her predecessor, the redeployed Geoff Doidge, claiming she had been handed a poisoned chalice when she took over from him 10 months ago. She announced that corruption to the tune of R3bn was being investigated in her department, but made no mention of the two police-building leases. While she had suspended the departmental directorgeneral who first blew the whistle on the police

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property deals she has now also suspended her own replacement. Last week she embarked on a public relations road-show to clear her name, coming out against her predecessor, officials in the department, and even the Public Protector. She also went to court to try and reverse the police property-lease deals she herself reinstated after Doidge had put them on hold when alerted by his D-G. Although President Zuma has yet to take any action against her, as proposed by the Public Protector, in some political circles her latest actions are viewed as a desperate attempt to save her political career.

has come back to haunt President Zuma and the ANC. After more than a decade of resisting pressure for an inquiry, Zuma suddenly out of the blue announced that he was appointing a commission of inquiry. Related news items: Newer news items: Older news items: This led to a flood of speculation about possible reasons. The most feasible one is that his hand was forced by expectations that the Constitutional Court will in November rule in favour of arms-deal activist Terry Crawford Brownes application to force Zuma to reopen the arms deal investigation. Zuma, it is believed, may have opted to pre-empt the court ruling to allow him to retain control over the composition and terms of reference of a commission of inquiry. But it was new evidence emerging from Swedish arms company Saab in June that first may have forced the matter, as it left the head of the police Hawks investigative unit, General Anwar Dramat, with no option but to reopen investigations. Other speculation and there is no confirmation for this is that Zuma wants to use the inquiry to expose and embarrass some of his political opponents in the ANC before they can generate enough momentum to try and topple him. It should however be remembered that Zuma himself is not safe. He spent many months and a small fortune to avoid going to court to have to answer corruption charges related to the arms deal for which his erstwhile financial adviser, Schabir Shaik was jailed.

Police Property Leases

Equally under pressure is General Cele whose role in the affair is to be probed on instructions from Zuma. In his case the Public Protector had also advised that action should be taken. In both his and Mahlangu-Nkabindes cases the public outcry, demands by opposition parties and by others left Zuma will little choice. But, in Celes case there are strong suspicions that Zumas is also motivated by the fact that he may be part of a group of senior ANC role-players opposing Zumas re-election at the ANCs elective conference next year. Previously seen as a long-time trusted ally, Celes name cropped up the first time with that of Human Settlements Minister Tokyo Sexwale and others some months ago as belonging to a group that want to topple Zuma.
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Arms Deal
After numerous attempts by the government to sidetrack and shelve probes into the controversial R30bn strategic arms procurement deal, the issue

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Monday, 26 September 2011

Oilgate
In another recent development a letter addressed to ANC leaders and written shortly before his death by the businessman who stood central in the Oilgate scandal, Sandi Majali, spells out how he channelled R18-million to the ANCs election funds through a deal with state oil company PetroSA, and that he paid a further R13.5-million to the ANC. Majali threatened that if probes into these payments and other matters were not stopped, he would make further public disclosures. However, Majali was found dead in a hotel room shortly afterwards.

Manthata; Lesiba Gwangwa, the chief executive of On-Point Engineering, which is co-owned by Malemas Ratanang Family Trust; and Limpopo ANC Youth League secretary Jacob Lebogo. Numerous cases of tender irregularities and gross price inflation on invoices in the provincial Health Department are finally being investigated. Malema and his family trust are now being investigated by among others the Hawks, while police are also investigating tender irregularities amounting to millions of rands in this province after the ANCs labour ally, the Congress of SA Trade Unions (Cosatu), recently laid charges. |2011-09-27 13:17:17 Nick Tam -warren corruption is apparently so widespread, that every accused can easily point a finger at his accusers |2011-09-27 15:17:59 Rukudzo Murapa -Prof. This is fantastic. How I wish such investigative journalism would take place in more African countries. These exposures contribute a great deal to the efforts to build transparency ahd good governance. Well done. |2011-09-27 15:19:52 Rukudzo Murapa Excellent. Keep up the fight for transparency andgood governance |2011-09-27 16:05:55 Wil -Stop top rot!

Limpopo tenders
While corruption and self-enrichment by the politically connected has become endemic throughout South Africa, few if any other regions arguably suffer this social cancer more severely than the northern province of Limpopo. And while recent news reports regarding allegations of corruption in this province have tended to focus on the affairs of ANC Youth League (ANCYL) leader Julius Malema and those closely associated with him, the problem in this province goes much deeper and is much more widerspread. In a sinister new development a power struggle for control of resources and business opportunities between supposed allies, the Limpopo SA Communist Party (SACP) on the one hand and the ANC provincial government, ANC Youth League (ANCYL) and the Limpopo ANC Womens League (ANCWL) on the other, has shed new light on the problems in this province. (See our analysis of last week.) Names that have cropped up in connection with patronage deals, irregular tender awards and other corrupt deals in the province, are those of Malema; close family and friends of his; the provincial ANC leader and premier, Cassel Mathale, who is also a Malema ally; Mathales business partner Selby
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Stop illegal tax for lawless corrupters! The state may tax for legal use, but never for its reported massive illegal corruption. The state must prevent all corruption or recover and also tax it. If not, it is illegal and discriminating. Tax laws used for corruption are likewise illegal. Numerous published reports for decades prove illegal abuse of tax for massive state corruption. The state has never any legal power to tax for illegal use or to corrupt. And nothing can justify any corruption. The state holds absolute powers over all its corruption: its policies, laws, decisions, actions, inactions, negligence, incompetence, nepotism, contracts, waste, records and personal information of corrupters. Thus no reason exists why the state cannot prevent or recover and tax corruption. Not to do so, is illegal. And this selective taxing discriminates against the poor masses and honest taxpayers. Most important, no civilized law is legal for criminal or illegal purposes like corruption. Hence tax laws for its use are likewise illegal. Certainly, the illegal nature of these amassed trillions amounts was never legally approved. Stop this illegal, criminal, discriminatory and protected state corruption with its illegal tax burden. Clearly, state corruption thrives on grand scale illegalities. In contrast, angel honesty is extorted from taxpayers. But honesty by all shall slash tax for all. State corruption forces distresssed masses to protests against absurd services. Which is then crushed with inhuman bloody oppression. Whilst a quickrich corrupt minority parasitises on illegal tax of enslaved masses; showing off extravagance. How can a brutal, corrupt state be that of free and honest elections by the people?

|2011-09-27 16:32:48 Free State Business Bulletin -Dimensions of corruption Research by most international institutions dealing with corruption, such as Transparency International, Global Financial Integrity, UN Convention Against Corruption, World Bank, Tear Fund, etc many organisations that deal with corruption, place the upper estimates of the cost of corruption in Africa, including bribery in procurement and tender fraud, at around 25% of Africas GDP. This is thought to increase the cost of goods by as much as 20%. Meanwhile with South Africas GDP around R2,700 billion, finance Minister Gordhan is stating that the tax-to-GDP ratio stands at 25,3%, which means that the potential loss to corruption for the South African economy, is equal to the total amount of tax collected by SARS for a given year - circa R675 billion! Write comment Your Contact Details: Comment: Security Please input the anti-spam code that you can read in the image.

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