Global South African News Wrap - 11 January 2013

7/30/2019 Global South African News Wrap - 11 January 2013

1/56

Global South African News Wrap 21 December 2012

How Zuma persuaded ANC to drop the N word

South Africa's Zuma pledges ANC renewal to dispel doubts

Don't bet against Zuma: ABZ left out of the NECOne love: Zuma picks Motlanthe to lead ANC's political school

Cope whizz kids boost ANC media

Zuma savours victory, but still has mountain to climb

Cyril Ramaphosa the key to urban voters

It's not all doom and gloom

The saviour returns

Motlanthe to head political education

Zuma calls for unity after leadership battle

Anti-Zuma camp hit by purgeSchizophrenia grips ANC at Mangaung conference

ANC gets serious about curbing corrupt members

Minerals: 'We want fair share'

ANC executive now almost 100% Zuma

Miners breathe sigh of relief with nationalisation debate off table

Motlanthe to lead ANCs political school

ANC Youth Leagues future in balance

Dlamini-Zuma tops the list as ANC chooses national executive

Zuma victory bad for Mugabe

Ramaphosa's election may boost plan

Zille scathing on Zuma's re-election

Achmat to consult veterans league over ANC support

ANC slaps down Vavi over election slates

Ramaphosa move makes sense if he is delegated wide powers

Man of action Ramaphosa good for Zuma

ANC must cement unity with action

Ramaphosas rise could bring conflicts of interest

Boost for business in Ramaphosa comeback

ANC members must learn economics ManuelJZ needs rivals close

Motlanthe must retain his position: delegates

Party's pinnacle of power

Blueprints for 'death plot'

Unionist-turned-tycoon is now SA's second most powerful man

Out in the cold


2/56

21 December 2012Business DayPage 1Carol Paton and Mariam Isa

How Zuma persuaded ANC to drop the N word

THE African National Congress (ANC) has ditched the concept of "strategicnationalisation" in favour of "strategic state ownership" after an 11th-hour interventionby President Jacob Zuma.

He told the drafters of the partys economic policy resolution at its conference inMangaung to remove the word "nationalisation" a bold effort to restore policy

certainty for investors and turn around South Africas flagging credit ratings.

An attempt by the ANC Youth League to have the word reinstated when theresolution was presented to conference delegates on Thursday, failed.

"The state will increase state ownership in strategic sectors where deemedappropriate, on the balance of evidence ," the resolution read.

The state would further increase its participation in the mining sector through equity,using the state-owned mining company as its vehicle.

The resolution implied that there will be higher taxes for the mining industry, but didnot specify what form these might take. It said the state should "capture an equitableshare of mineral resource rents and deploy them in the interests of long-termeconomic growth, development and transformation".

Enoch Godongwana, chairman of the ANCs economic transformation committee,told a media briefing this could take the form a resource rent tax, a "windfall tax" onsuper profits or another, unspecified, measure. "There will be a tax, what form it willtake has not been decided."

The resolution further raised the prospect of export taxes on designated "strategicminerals" deemed important for industrialisation or as key inputs into downstream

products. Among those in line for designation are iron ore, coal, base metals andgas.

The party said it wanted to assure investors that "nationalisation was off the table".

"The national conference has refused to be drawn into the (use of) the wordnationalisation," said Public Enterprises Minister Malusi Gigaba. "This means that theissue of nationalisation, that we have discussed over the past few months, is off thetable.

"We are providing final clarity. There shouldnt be any expectation from here that we

will come out and say we are going to nationalise."


3/56

Mr Zuma called the drafters of the resolution who included Thaba Mufamadi,chairman of Parliaments standing committee on finance, Mr Godongwana and MrGigaba to an early morning meeting on Thursday. Participants close to theprocess said the president told them they should take out "that word".

Provincial chairpersons and secretaries were hurriedly briefed before thepresentation to the plenary on Thursday and asked to support the resolution.

But global rating agencies are likely to continue sitting on the fence for a while interms of their assessment of South Africa.

Standard & Poors (S&P) MD for Southern Africa Konrad Reuss said on Thursdaythe agency would wait to see what follow-through action the government took beforerevisiting its sovereign rating of South Africa, which it downgraded in October. "Fromour perspective the jury is out we have to see what it is that is going to beimplemented as far as policy action is concerned ."

Anything that would support growth in the economy, deal with social and labourmarket issues, and support fiscal consolidation, would be constructive for South

Africas rating, Mr Reuss said.

S&P has put a negative outlook on its BBB credit rating for South Africa, citing therecent wave of strikes, which it said might increase "uncertainties" related to thecountrys economic policy framework.

The Black Business Council (BBC) said it was "relieved" that the ANC had "once andfor all buried the threat" of the wholesale nationalisation of mines and banks. "TheBBC believes the ANC should better manage the perceptions around its economic

policy choices and reaffirm the private sector as the appropriate agent foraccelerated economic growth and employment creation."

The council believed the role of the state should be to create conducive conditionsfor good and socially responsible business.

MD of Pan African Investment and Research Iraj Abedian, said the ANCs economicpolicy resolution was " more of the same".

"The ANC has always engaged in rigorous, left-sounding debate, or more recently,populist oriented, but when all is said and done there are fairly pragmatic andrealistic policy choices ."

The ANC further resolved that there would be no ban on labour brokers. The SouthAfrican Chamber of Commerce and Industry welcomed the resolution.

" One must take it as an appreciation by the ANC that labour broking has a role toplay in job creation," CE Neren Rau said.

"On the issue of nationalisation, its good that this has been clarified. It will bepositively received by the international community."

20 December 2012


4/56

Reuters

South Africa's Zuma pledges ANC renewal to dispel doubts

(Reuters) - South African President Jacob Zuma, fresh from a landslide re-election

as head of the ruling ANC, on Thursday promised to crack down on corruption andfeuding that has shaken confidence in the party's leadership of Africa's top economy.

In a speech to close a week-long ANC elective conference, Zuma called on the 100-year-old African National Congress to "root out" faction-fighting and the use of moneyto buy members or influence within the party.

"The primary task of the ANC going forward is to work for unity," said Zuma, whosere-election this week ended months of feverish speculation over a challenge fromDeputy President Kgalema Motlanthe.

"It is clear that the ANC is renewing itself already," a smiling Zuma told the packed

audience.

By winning a fresh term to lead the ANC at the conference in the central city ofBloemfontein, Zuma has virtually guaranteed himself another term as president ofSouth Africa through 2019, given the party's dominance of domestic politics.

Yet there are fears - both inside and outside the party - that Zuma has steeredNelson Mandela's former liberation movement away from its idealistic beginnings andinto a morass of graft, cronyism and a corrosive culture of self-enrichment.

The party that took power at the end of apartheid in 1994 is seeing some decline its

once-unassailable popularity, hit by charges that corruption has siphoned off billionsof dollars meant to improve the lives of the country's poor black majority.

The ANC has admitted that members running local governments are often not up tothe task, and pledged to set up an integrity committee to hold them accountable.

"This will be our primary weapon in our fight against corruption," said ANC officialDavid Makhura, who sits on the party's organisational renewal committee.

Some ANC insiders say Zuma - who has faced corruption charges but has neverbeen convicted - is the wrong person to lead the renewal drive.

"Zuma is more a part of the problem then the solution. If we don't change leaders,the ANC will be heading for deep troubles," said a senior party member fromGauteng province, who asked not to be named.

The ANC dominates local politics due to its still-admired role in bringing downapartheid while the main opposition Democratic Alliance is seen as the party of thewhite minority.

SHORING UP IMAGE

To restore the party and government's battered image, the conference chose 60-

year-old anti-apartheid hero and millionaire businessman Cyril Ramaphosa as


5/56

Zuma's deputy in the ANC, hoping for a boost from his political credentials andreputation for integrity.

But there are questions whether Ramaphosa - now South Africa's second-richestblack executive - can strike a chord with the poor and unemployed masses as he did

when he led striking mineworkers against their white bosses in the 1980s.

Ramaphosa will replace Motlanthe, whose challenge to Zuma for the ANC top jobwas crushed at the conference. Zuma named Motlanthe to head up a politicaleducation programme for ANC members, in what could be seen as a politicalbanishment.

The president appeared to settle another old score when he said the ANC would nottolerate indiscipline, a clear reference to former party Youth League leader JuliusMalema, who became Zuma's nosiest critic after expulsion from the ANC this year.

"We will be able to deal with the comrades who disrupt ANC meetings," Zuma said to

cheers and applause from the floor.

"There must be consequences for such ANC members," he said.

Zuma said the ruling party would tackle the poverty, inequality and unemploymentthat still afflict South Africa with decisive policies focusing on industrialisation andBlack Economic Empowerment, which seeks to put more of the economy in thehands of the black majority.

Nearly two decades after Mandela led the ANC to bring down apartheid, critics saythe party has not done enough to fix worsening inequality and an unemployment rate

stuck at around 25 percent.

Zuma said the health of 94-year-old Mandela, who has spent nearly two weeks inhospital, had improved.

In a sign of the social and labour challenges facing the ANC, police fired rubberbullets on Thursday to disperse protesting gold workers, the latest flare-up of violentlabour unrest that has shaken South Africa this year.

And as the ANC conference members streamed home, there were those around thecountry hoping that the pledges for renewal and action would lead to concretechange.

Sabelo Baza, 25, who lives in the township of Botshabelo, down the highway fromthe venue of ANC meeting, has given up on the party he once supported.

"I have heard promises and promises about jobs. I am unemployed and I don't trustthe ANC anymore," he said.

20 December 2012Mail and Guardian

Verashni Pillay


6/56

ANC Youth League's fate up in the air

The future of the youth league hangs in the balance, with Zuma announcing in hisclosing speech at the party's elective conference in Mangaung on Thursday that "thematter of the league" would be discussed by the incoming NEC in the new year. The

ANC president also lashed out at his detractors aligned to Malema, as well as thosewho supported him within the party.

This follows reports that there were calls by some provinces to dissolve the leaguefollowing the defiance it showed to Zuma in the run-up to the conference and itsattempt to have him unseated.

Zuma, who pulled off a convincing victory over the pro-change lobby that tried toreplace him with his then deputy, Kgalema Motlanthe, never mentioned Malema byname but referenced the firebrand's actions at several moments.

The amount of time devoted to the issue during his closing address was indicative of

the level of concern about the violent rhetoric that had come out of the party in recentyears thanks to Malema and his ousted spokesperson Floyd Shivambu. There was acommon call to restore discipline and unity among most of the delegates the Mail& Guardian spoke to.

And Zuma responded to the call decisively in his speech.

"Through cadre development and decisive action against indiscipline we will be ableto root out all the tendencies that we have identified over the years," he said. "Theseinclude factionalism, sowing of disunity and confusion in the movement, the use ofmoney to buy members and to buy positions or influence in the organisation, the

hurling of insults or, even worse, the attacks of members on the ANC."

"We will be able to deal with the comrades who disrupt ANC meetings. And thosewho want the ANC to now be run on technicalities and through the court."

After months, and even years, of retiscence, Zuma has finally reacted to Malema'srepeated provocations. Known for his strategic dealings with his opponents, hechose his moment well, using the party's biggest platform to make his point.

His remarks also referenced a faction in the Free State who had taken the party tocourt and was attempting to get the outcomes of the conference declared invalid. In astern warning to his now neutered enemies, Zuma warned against "working with

those who have been expelled from the organisation" and "assisting them toundermine the organisation", saying they should know the implications.

And with the opponents he was referencing effectively out in the cold, theimplications were very clear.

20 December 2012Mail and GuardianCharles Molele, Matuma Letsoalo, Mmanaledi Mataboge

Don't bet against Zuma: ABZ left out of the NEC


7/56

ANC president Jacob Zuma's allies dominated the party's newly elected nationalexecutive committee (NEC) on Thursday. All former NEC members who campaignedand supported the project to replace him with his former deputy Kgalema Motlanthehave been dumped.

Winnie Madikizela-Mandela was re-elected from the prominent 2007 NEC thatpublicly criticised Zuma and supported the call for leadership change. She receivedthe majority of the Polokwane conference votes, but was this year the second lastsuccessful NEC member. Thenjiwe Mtintso, a South African Ambassador to Italy whoonce served the ANC as deputy secretary general was also re-elected, despite beingnominated by Motlanthe's supporters.

Former treasurer general Mathews Phosa, Human Settlements Minister TokyoSexwale, Sport Minister Fikile Mbalula, ANC Youth League NEC member AndileLungisa and former youth league leader Saki Mofokeng were the biggest losers afterpushing to the end to lead the ANC.

Former ANC Youth League president and Minister of Public Enterprises MalusiGigaba's political star keeps rising. He was the second-most favourite member of thenew NEC.

Congress of South African Trade Unions president Sdumo Dlamini becomes the firsttrade union movement leader to sit on the ANC NEC since 1994. While some inCosatu believe it's a necessary step towards the federation's mission to populate the

ANC's ranks, Dlamini's election into the top ANC structure will be contentiousbecause of the possibility of compromising the federation's independence. Other keyunion leaders who made it to the NEC are National Union of Mineworkers presidentSenzeni Zokwana and health union Nehawu general secretary Fikile Majola. ThulasNxesi, a former general secretary of teacher union Sadtu, was also elected.

The new brooms in the NEC include former presidential spokesperson Zizi Kodwa,the ANC Youth League's suspended treasurer general Pule Mabe, North West ANCtreasurer Philly Mapulane, chairperson of the Umkhonto we Sizwe Military Veterans

Association Kebby Maphatsoe, former Western Cape provincial chairperson McebisiSkwatsha, Intelligence Minister Siyabonga Cwele, Cosatu president Sdumo Dlamini,Labour Minister Mildred Oliphant and Rosemary Zoleka.

Despite allegations of corruption and a guilty verdict by the Gauteng ANC, HumphreyMmemezi made it to the new NEC. Former police commissioner Bheki Cele, whowas fired for his role in the multimillion-rand police offices lease debacle, was also

elected.

Surprise losers included Young Communist League general secretary ButiManamela and former ANC Youth League secretary general Vuyiswa Tulelo.

Former president Thabo Mbeki's allies making a comeback to the ANC's highestdecision-making body are former Reserve Bank Governor Tito Mboweni and formerminister of agriculture Thoko Didiza.

20 December 2012Mail and GuardianVerashni Pillay


8/56

One love: Zuma picks Motlanthe to lead ANC's political school

Former ANC deputy president Kgalema Motlanthe, whom businessman CyrilRamaphosa replaced as deputy president during the party's electoral conference in

Mangaung, has been appointed to head the party's mooted school of politicaleducation.

"Leading the ANC political education needs to be a senior member of the ANC whois schooled in the traditions of the movement," newly re-elected ANC president JacobZuma announced in his closing address on Thursday, before the eruption ofprolonged and enthusiastic cheers from the audience.

Motlanthe opted to run against Zuma for the position of president after a battle by hissupporters within the party to get him elected, which was damaging to his chances ofremaining in the ANC's top six leadership. His acceptance of the nomination at thelast minute, while withdrawing from running for his then incumbent position as deputy

president, set him up to be ousted from the position.

He then declined nomination to the party's national executive committee (NEC) itstop decision-making body. The lack of unity in the party emerged from theconference as a key concern for the ANC's leaders after the bruising leadershipbattle, and Motlanthe's move made delegates nervous about losing a strong leaderand causing further disunity.

Zuma's move to appoint Motlanthe, which he said he did in consultation withMotlanthe and Ramaphosa, sent out a strong message of unity, despite the fact thatpro-change leaders have been thoroughly removed from top leadership structures inthe party.

Tokyo Sexwale, Mathews Phosa, Fikile Mbalula, Paul Mashatile and Thandi Modise,who all openly opposed Zuma for a second term, were not successful in theirnominations for any of the top six positions and were all excluded from the new NEClist voted for by delegates.

Zuma's inclusion of Motlanthe in this token role potentially protects him from theaccusation of a purge.

The ANC has discussed the need for improved political education for some time,partly as a solution to damaging public statements by some in the party. Zuma noted

that the time for talking about the school was over and it was time to implement theidea.

21 December 2012Mail and GuardianVerashni Pillay, Mmanaledi Mataboge

Cope whizz kids boost ANC media

The ANC drew on the expertise of former Congress of the People (Cope)communications strategists to give the party a fresher face for the Mangaungconference.


9/56

The Mail & Guardian identified at least five former Cope communication officers inthe party's renewed and social media-savvy communication team for the ANC's 53rdnational conference.

But Senzi Ngubane, the ANC's online development officer, who co-ordinates the 13-

member social media team, said she didn't know anything about them. Social mediadarling Shaka Sisulu, one of the leaders of the team, attributed the remarkableturnaround in the party's communications to a grassroots movement.

He said the people in question had left the ANC and returned as part of a normalprocess. "It's an organisation that reconciles even with its oppressors. So whenpeople left and then came back to the ANC, they would most likely have more toprove. They were not given preference over anyone in any way and don't have anyleadership positions."

But sources said Cope's former communication officer, Lunga Kepe, led theproduction of video content and a former Cope member, Onkgopotse JJ Tabane, had

been instrumental in strengthening the ANC's commentary published in variousmedia before the conference. A senior former Cope member was asked to bring in"people he knows can do the job and people he trusts".

Three sources said that it was the beginning of the renewal of the ANC's publicityand media strategy. They said the ruling party approached former Copecommunicators because it wanted the sort of product the breakaway party initiallyused to make a name for itself. "The ANC request was more to say we are helpless,"said an insider.

Just a year ago, the ANC's social media strategy was almost nonexistent. The partyhad a gratuitous social media presence in the 2009 elections with blogs that werenever updated. In the 2011 municipal elections, the party made token nods to thesocial media, albeit laughably late. President Jacob Zuma launched his officialTwitter profile slightly more than a month before the elections. On the same day, atthe behest of the social media-savvy Sisulu, several ANC leaders in Gauteng gottogether to talk social media. But it was too little too late.

Virtual beatingMeanwhile, they took a virtual beating from the opposition: Cope was impressive withits use of various platforms when the party was still the flavour of the year, usingTwitter and Facebook to form its network while its branches were still being built up.

The Democratic Alliance has had a remarkably good social media strategy since2009, inspired in no small part by the viral wave that carried Barack Obama to thepresidency in the United States.

In the hype that followed Cope's split from the ANC in late 2008, the nascent party,with little structure or organisation, relied heavily on social media to get its messageacross. The party would later be torn apart by internal disputes, but the campaigningon Facebook in particular attracted much attention.

Fast-forward to Mangaung 2012 and the ANC now has a robust social mediapresence that has come from seemingly nowhere. The social media team wereparticularly impressive: young men and women, stylishly dressed and wanderingaround the media centre with cellphones in hand.


10/56

"It's a temporary team for the conference, but we're planning on growing it after this,"said Ngubane. "Most of them are volunteers, while some of them have been drawnfrom provincial offices."

The once neglected @MyANC_Twitter account swelled to 34 000 followers after

there was a sharp uptake from the start of the conference on Sunday.

A YouTube account created for the 2009 elections was dusted off and video uploadsstarted happening in earnest, featuring interviews with the president and updatesfrom the conference. And the party's Facebook page, which has 14470 fans, finallyreceived regular updates.

But a former Cope communicator said the ruling party was "too distant to be able toachieve" a fully modern communications plan.

"They're now able to do this because it's an event. With Cope, it was an everydaything."

21 December 2012Mail and GuardianRapule Tabane

Zuma savours victory, but still has mountain to climb

ANC president Jacob Zuma goes home to Nkandla for Christmas buoyed on a wave

of success, but also with the knowledge that those who voted for him in hugenumbers at Mangaung this week expect him to deliver in his second term.

Although he has increased ANC membership, boosted access to HIV/Aids treatmentand taken a tougher stance on Zimbabwean President Robert Mugabe in his firstterm, the core problems of poverty, unemployment and inequality have deepened.

Trade union federation Cosatu first came up with a Brazilian-style Lula momentslogan to motivate Zumas election for a second term and to give him the opportunityto exercise his authority to decrease poverty and create jobs and a functional socialwelfare system that looks after the needs of the poor.

Zuma has demonstrated an incredible skill at defeating his opponents: five years agoin Polokwane it was Thabo Mbeki and now, at Mangaung, it was Kgalema Motlanthe

both of whom were regarded as better than him. Although surveys show that he isless popular with broader South African society, that is clearly not what most ANCmembers think.

South Africans will have to live with him as president of the country for another fiveyears. Speculation continues that the ANC will suffer at the polls in 2014 if he is stillin office, but the party is convinced that members including dejected Motlanthesupporters will rally around him.


11/56

Creating a legacyZuma will once again have to defy the doomsayers who predict that the party couldexperience its worst ever showing at the polls in 2014.

Unencumbered now by being made to pay for any bold or controversial decisions,

Zumas worry is about creating a legacy something he did not achieve in his firstterm.

He has been mired in controversy over the R240-million splurge on his home inNkandla in KwaZulu-Natal. The Mangaung conference reinforced the need for stricterconduct from party members as it grapples with internal anarchy and corruption. The

ANC now has an integrity committee, but we will have to wait to see whether it hasthe courage to probe Zuma over allegations of financial impropriety and corruption.

The presidents legacy will depend on the tasks the ANC sets itself for the next fewyears. Zumas acceptance will be enhanced by the elevation of Cyril Ramaphosa ashis deputy but it will be the latter who will have to sell the government to local and

international business.

ANC secretary general Gwede Mantashe has already said that Ramaphosa will be ade facto prime minister. Zuma will still be in charge of the big picture, but Ramaphosawill be expected to act in much the same way as Mbeki did when he was deputy toformer president Nelson Mandela after 1994.

But for now Zuma savours his victory, showing like a cat that with his mshini wam[machine gun], he always manages to land on his feet.

21 December 2012Mail and GuardianNic Dawes

Cyril Ramaphosa the key to urban voters

When Kgalema Motlanthe decided not to run for deputy president and instead tocontend only for the top job, he knew that he would lose and lose badly.

One of his objectives here, according to people who lobbied to support him, was to

confront the ANC with the enormity of its Jacob Zuma problem. When campaignersfor change speak of "a principled stance", this is what they mean. Angry andfrustrated at all the scandal surrounding the president and worried about its effect onthe party but unable to say so himself, Motlanthe found another way to deliver themessage.

Without him in place there can be no pretence that the party is unified around itspresident. Yes, the Zuma slate won a 75% majority, but it left outside the big, hotMangaung tent much of Gauteng, where so much leadership capital and actualcapital is concentrated, as well as important parts of the Western Cape, NorthernCape, Eastern Cape and Limpopo.

A TNS poll ahead of Mangaung confirmed what some in the ANC were saying.Zuma's approval rating in urban areas declined from 55% to 49% in the year of


12/56

Nkandla, the "spy tapes" and the textbook debacle. Motlanthe's shot up from 49% to67%, although he did very little but allow supporters to declare him an alternative.

Luthuli House's own research, say three senior officials briefed on it, suggests thatan ANC going into the 2014 national elections with Zuma as its main face will see a

significant ebbing of support, some of it to a growing stay-at-home fraction of theelectorate and some to an energised opposition, particularly in Gauteng and theEastern and Northern Cape.

The warnings in the poll data are backed by other evidence that Zuma, in rescuingKwaZulu-Natal for the ANC, has moved dangerously far away from urban and middleclass voters and other parts of South Africa. He told traditional leaders that "cleverblacks" were losing touch with their roots, appearing to confirm suspicions that he iswilling to move a party founded by an educated, anti-tribalist African elite towardsethnic, regional and traditionalist politics.

Even some of his most important lieutenants seem to see the problem and to

identify Ramaphosa as the solution. During the past weekend's intense lobbying,KwaZulu-Natal provincial secretary Sihle Zikalala told Business Day that Ramaphosa"will help the ANC connect and relate better with the business sector, intellectualsand younger voters, especially those born after ... 1990". You couldn't ask for aclearer statement of the thinking behind the Zuma slate: the president for thecountryside, his deputy for everyone else.

Frontally attackedFor his part, Ramaphosa did an even more convincing impression of a man whodoesn't want the job than Motlanthe did. He made no public case for himself and,even when frontally attacked over his efforts to secure police intervention atMarikana, barely defended himself.

According to people who worked on a deal between the two, Ramaphosa said hedidn't want to go head to head with his National Union of Mineworkers successor. Herefused to confirm his candidacy until late on Sunday afternoon, when it was clearthat Motlanthe would go for broke.

By mid-week, talk of their mutual respect had some anti-Zuma delegates mutteringabout a secret deal to secure Motlanthe's return. More sober talk among seniorfigures was about maximising any Ramaphosa dividend; there is real uncertaintyabout the 18 months leading up to the national elections.

The process is fraught with risk for Ramaphosa. First, there is the question of hisbusiness interests: Shanduka has been in expansion mode and is exposed toconsiderable debt. "Some felt he was reluctant because he wanted to consolidate hisempire before handing its management to a blind trust. Second, there is what oneparty elder described as "the difference between what Cyril stands for and whatZuma stands for". In other words, can two men who are complementary in that theyattract different voters actually live with each other in government and Luthuli House?Can the constitutionalist businessperson avoid contamination by association with ascandal-prone, authoritarian traditionalist?

Gwede Mantashe has made public what lobbyists were saying privately in the run-upto the vote: Ramaphosa in government would function much as Thabo Mbeki did

under Nelson Mandela, as a "de facto prime minister" driving the primary executivefunctions of the government and using the national development plan (with which


13/56

Ramaphosa was intimately involved) as the primary policy framework. It might suitRamaphosa better to do so only after 2014. But that choice could be very tricky. IfMotlanthe steps down, as those around him feel he will, Ramaphosa will have to stepup or take the risk of allowing someone else, possibly the ambitious Baleka Mbete,to hold his place for him.

Meanwhile, Zuma will continue being Zuma as the other elections, the ones we allget to vote in, bear down. The ANC has never before had to consider seriously theelectoral effect of its internal party choices. Winkling Ramaphosa out of theboardroom was smart, but the game has only just begun.

20 December 2012Financial MailPage 9Editorial

It's not all doom and gloom

After the violent strikes of recent months, wilting business confidence and the risingcriticism about SAs political leadership, it is easy to forget the good news about thisyear.

The third quarter of last year was a period of heightened volatility and fear in financialmarkets. US sovereign debt was downgraded by ratings agency Standard & Poor's.Politicians in the US were unable to agree on policy. There were fears that theworld's largest economy would slip into another downturn. Many commentators saidthe euro region was heading towards a breakup. The idea of a sudden and risky exitby Greece became almost commonplace.

None of the worst-case scenarios has happened. Those dogs did not bark. The UShas maintained steady growth. Much of the EU is in or near recession, but therehave been no new shocks. The EU and the IMF recently struck another agreementon Greece's debt. Assurances and actions by European Central Bank presidentMario Draghi helped stabilise Europe's markets, and bond yields in the morestressed economies have fallen.

Markets performed much better this year than in 2011. Equities have risen in bothdeveloped and emerging markets. In 2011 the JSE all share index ended slightlylower. By mid-December 2012 it had risen by more than 20% in rand and by 11% in

US dollars.

The rand has weakened and looks vulnerable but it hasn't collapsed. Net foreignpurchases of SA bonds have remained positive and are up on last year. Thecountry's growth rate has faltered but is still well into positive territory.

In SA, there are opportunities for new beginnings and favourable shifts in the politicaland economic landscape next year, though that does require some optimism.President Jacob Zuma's re-election as ANC president at Mangaung this week hasconfirmed his abilities as a canny political player, though his skills have notnecessarily benefited the country so far. The quick and perhaps logical response toZuma's victory is that we can expect more of the same. That implies continuing weak

growth, high unemployment, slow implementation of investment programmes andrising social tensions. Optimists can hope that Zuma, like US president Barack


14/56

Obama, will feel sufficiently strengthened to move on from political infighting andentrenchment of his position, to making the country and the economy work.

In his report to the Mangaung conference, Zuma continued to place the economyand social transformation near the centre of this agenda. He emphasised the

National Development Plan (NDP), and said the critical task for the conference wasto take the plan forward by creating a stronger sense of unity and purpose aroundthe direction of economic change.

"We will work with business, labour, the community and other sectors to make theseplans succeed," he said.

Zuma also referred to the NDP in the context of a developmental state. As nationalplanning commission chairman Trevor Manuel has argued, SA needs a "capablestate". Achieving that through a large and expanding developmental state will bedifficult. But Manuel remains in government, near the centre.

Another NDP champion, the commission's deputy president, Cyril Ramaphosa, hasbeen elected ANC deputy president. The NDP is a long-term programme. Itschances of implementation appear to have improved.

As this year showed, the worst-case scenarios, whether in the form of dramaticchange or incremental slippage, don't always happen and should not be assumed fornext year.

Continued gradual improvement in the world economy and in SA's main exportmarkets, particularly Europe and China, should help. Government can become moreunified and purposeful. The darkening domestic mood could brighten next year, as

happened after the huge capital outflows of the late 1980s and the emerging marketscrisis of 1997-1998. Business leaders are right to be cautious, but they must playtheir part in uplifting the economy - and confidence.

20 December 2012Financial MailPage 6Barney Mthombothi

The saviour returns

The saviour has returned. Two decades after stepping in to help the ANC out of alittle difficulty, Cyril Ramaphosa is back, older and wiser, much more likely thanbefore to claim the prize that was rudely denied him last time around. The partyneeds him more than he needs them.

By agreeing to understudy a flawed incumbent, Ramaphosa hopes that, instead ofsoiling his own reputation, he could take a big step toward the prize he came within awhisker of claiming two decades ago. To this day it's a source of fascination forpolitical connoisseurs as to what could have been had Ramaphosa, and not ThaboMbeki, succeeded Nelson Mandela as president.

FW de Klerk's 1990 decision to unban the ANC caught the organisation totallyunprepared. Its officials arrived home in dribs and drabs. As Tom Sebina told me atan eerily deserted ANC HQ in Lusaka: "Some of our chaps left as if they were going


15/56

to the toilet. They went to check out the scene and never came back." The ANC hadlittle understanding of the political dynamics on the ground. Its president, OliverTambo, was ailing, later to die. Alfred Nzo, its lethargic secretary- general, waseffectively in charge.

De Klerk's reforms had earned him huge international affection. That put the ANCunder some pressure to reciprocate by urging the lifting of sanctions against SA andabandoning the armed struggle. De Klerk was winning the propaganda war.

The ANC needed a shot in the arm. Enter Ramaphosa. He had built the NationalUnion of Mineworkers from scratch into the biggest and most influential union in thecountry. He replaced Nzo at the ANC's Durban conference in 1991, the first in thecountry since the unbanning of the organisation.

As jubilant supporters carried Ramaphosa shoulder-high around the hall, Mbekitentatively put out his hand to congratulate him. Ramaphosa ignored it. He laterclaimed not to have seen it. But that was to set the tone for their frosty relationship.

Mbeki probably saw Ramaphosa as a Johnny-come-lately about to usurp his crownafter he, Mbeki, had spent years in the trenches of exile.

Ramaphosa organised the party, became its linchpin in Codesa talks and capped itall by chairing the task team that crafted the constitution. He thought he had donewell enough to deserve a promotion. So did Mandela, who wanted him to be hisdeputy. But they were both outfoxed by Mbeki.

His political ambitions frustrated, Ramaphosa took a detour into business where heconsoled himself by making a fistful of cash.

Now Ramaphosa is in a stronger position than any deputy before him. Jacob Zumaneeds him more than he needs Zuma. In his second rescue mission for the party, hewill make Zuma more palatable.

Three different scenarios could unfold. Zuma could finish his second term withRamaphosa as an able, loyal deputy. Or Zuma, like Mbeki before him, could berecalled, with Ramaphosa taking over prematurely. Or, as is being mooted in certaincircles, Ramaphosa could be put forward as the presidential candidate, with Zumaremaining party leader. Whichever scenario pans out, Ramaphosa wins. He's in poleposition to claim the presidency.

He's no longer the firebrand unionist of yore, but a wealthy businessman. Along the

way he's picked up what leftists in the party will regard as unwanted baggage or badhabits. That will play itself out in the perennial fights over economic policy. But hisreturn should settle nerves within the business community. For Ramaphosa, it's acase of better late than never.

This is the last issue of 2012. We shall be back on January 11 2013. Wishing you alla peaceful festive season. Enjoy the break.

21 December 2012Cape Times/ The StarPage 4Sapa


16/56

Motlanthe to head political education

ANC president Jacob Zuma vowed yesterday to root out factionalism and to dealwith dissidents and members challenging the ruling party in court.

Through political education and cadre development as well as decisive actionagainst ill-discipline, we will be able to root out all the tendencies that we haveidentified over the years, he said in his closing address to the ANCs 53rd nationalelective conference in Mangaung in the Free State.

These include factionalism, the sowing of disunity and confusion within themovement, the use of money to buy members, positions or influence in theorganisation, the hurling of insults or even worse, the attacks on members of the

ANC.

Zuma announced that Deputy President Kgalema Motlanthe would head up a

political education programme for the party.

We must move away from saying how important political education is, to actuallyimplementing the decisions...

We will be able to deal with the comrades who disrupt ANC meetings and those whowant the ANC to be now run on technicalities and through the courts.

He said he discussed the political education programme with the newly electeddeputy president, Cyril Ramaphosa, and Motlanthe, the former deputy president ofthe party.

He said the ANC would be building cadres who respect actions taken by themovement to enforce discipline against others, who know the implications of workingwith members who have been expelled from the organisation, assisting them toundermine the organisation.

There must be consequences for such ANC members, said Zuma.

He said the process of collectively understanding the democratic principles andinternal democracy that prevailed within the movement was not monitored.

Zuma said unity within the ANC would not happen automatically and its memberswould have to work hard for it.

Turning to the leagues of the ANC, Zuma said they should implement the work andresolutions of the Mangaung conference, the final version of which was yet to bereleased.

He congratulated the newly elected leadership and thanked the outgoing leaders. Healso wished Nelson Mandela well, saying he was in good care as he spent a 13thday in hospital.

Zuma broke into song as he ended his closing address.


17/56

It's a long walk, Mandela said to his followers. We will meet on freedom day, hesang.

20 December 2012Cape Times/ The StarPage 1Mogomotsi Magome

Zuma calls for unity after leadership battle

While ANC president Jacob Zuma yesterday called for unity following the leadershipbattle which caused deep divisions within the ANC, some in the party called on himto use his second term to accelerate service delivery and fix the ANC.

Addressing delegates shortly after his second term as party president was confirmed,Zuma said it was important for delegates to move beyond the election and unite theparty.

He said it would not be good for the party if members who had backed deputypresident Kgalema Motlanthe were sidelined owing to their preference ahead of theMangaung conference.

His sentiments were received with wild cheers from the delegates and reiterated bymost leaders.

According to Zuma, contests for leadership positions in the ANC were part of thedemocratic processes of the party.

You have to be careful about how you treat one another. You cant find a situationwhere, after the elections of officials and the additional members, members whowere exercising their democratic right must feel that they are outside theorganisation. No one must feel so.

We begin here to address the fundamental principles of the ANC, the unity of theAfrican National Congress.

Im saying this because from now we must realise that the national conference has

spoken and all of us are part of that decision, said Zuma.

He said the new leadership of the ANC must preside over a united ANC.

National Union of Metalworkers of SA general secretary Irvin Jim said Zuma mustensure that the ANC implemented radical economic policies to transform thecountrys economy and improve the lives of the majority.

Zuma has taken full responsibility to forge unity in the party, and that is great,because things change in an organisation. But as we go into commissions, we mustmake sure that as workers we influence the policy direction of the ANC.


18/56

President Zuma must ensure that in his second term at the helm of the party wemust pursue economic policies that will change the lives of the majority and benefitthem economically.

It cannot be right that the country has so many minerals yet people are still poor and

our minerals are being taken abroad without any benefit for the majority.

Peace Ntuli, a Zuma backer from the Northern Cape, said Zumas victory meant heneeded to vigorously implement ANC policies, improve service delivery, and fireunderperforming ministers and civil servants.

The issue of talking and talking must come to an end. There must be a very clearmessage to anybody who does not perform, including those ministers. They must befired.

We should also look at section 139, whereby national government cant intervene ina province. You know, a minister cant tell an MEC what to do. If you look at the issue

of Limpopo textbooks, the minister couldnt do anything because she does not havepowers. We need to change that so that we can hold the minister accountable, saidNtuli.

21 December 2012Cape TimesPage 1Staff reporters and Sapa

Anti-Zuma camp hit by purge

Bloemfontein - The so-called Forces of Change which had resisted ANC presidentJacob Zumas re-election were voted out of the partys national executive committeeon Thursday.

None of those who contested the top six leadership posts without success earlierthis week made it on to the ANCs 80-member NEC.

Human Settlements Minister Tokyo Sexwale, who lost his bid for deputy president ofthe party, was number 10 on the NEC list at the last ANC elective conference in

Polokwane in 2007.

This time, he did not make it.

Neither did former treasurer-general Mathews Phosa, who also contested the deputypresidency, nor former deputy secretary-general Thandi Modise. Gauteng chairmanPaul Mashatile and Sport Minister Fikile Mbalula, who was number 15 on the NEC in2007, were also excluded.

The five had automatically been put on the nomination list after they lost in the top sixofficials election at the Mangaung conference.


19/56

Deputy President Kgalema Motlanthe, who failed in his challenge for the partypresidency, did not make himself available for election on the NEC.

ANC chief whip Mathole Motshekga failed to make it, but his wife Angie was elected.

History seemed to be repeating itself. In 2007, when former president Thabo Mbekilost the party presidency to Zuma, many of his allies did not make it on to the NEClist either.

The most popular NEC member of 2002s Stellenbosch elective conference, TrevorManuel, did not make himself available for election this year.

Nelson Mandelas ex-wife, Winnie Madikizela-Mandela, topped the NEC list in 2007.

This year, she was second-last on the list and the announcement of her name failedto draw any cheers.

Those who received the loudest cheers by delegates this year included sackedpolice commissioner Bheki Cele and former Gauteng housing MEC HumphreyMmemezi, who was fired for misusing a state-issued credit card.

The new NEC included several cabinet ministers and AU Commission chairNkosazana Dlamini Zuma, as well as ANC spokesman Jackson Mthembu.

Cabinet ministers on the list are Public Enterprises Minister Malusi Gigaba, PublicService Minister Lindiwe Sisulu, Minister in the Presidency Collins Chabane, JusticeMinister Jeff Radebe, Home Affairs Minister Naledi Pandor, Science and TechnologyMinister Derek Hanekom, Finance Minister Pravin Gordon, Police Minister NathiMthethwa, Higher Education Minister Blade Nzimande, Intelligence MinisterSiyabonga Cwele and National Assembly Speaker Max Sisulu.

Former Reserve Bank governor Tito Mboweni, and former arts and culture ministerPallo Jordan were also elected.

Closing the conference on Thursday night, Zuma announced that Motlanthe will leadthe partys political education programme. We thank the former deputy president foravailing himself for this critical task, he said to cheers from delegates.

The ANC must root out factionalism, Zuma said. We will be rooting out all thetendencies factionalism, sowing disunity and the use of money to buy members orpositions, or even worse, the attack on members of the ANC.

He warned the party would deal with members who disrupted ANC meetings. Hesaid the conference had robust and constructive debates on policies. The prioritynow was to draw up a clear plan on how to implement them. The plan was expectedto be ready early next year.


20/56

l The conference rejected the idea of nationalisation, opting instead for strategicintervention in the economy where necessary.

The national conference has refused to be drawn into the word nationalisationwhich means nationalisation as discussed over the past few months is off the table,

ANC economic transformation committee head, Malusi Gigaba, said on Thursday.

But the government would decide on strategic ownership in the economy whendeemed necessary. There might come a moment when a particular sector mightneed to be nationalised for particular purposes as happened in the UK and US duringthe global economic crisis Weve not limited ourselves.

National conference was eager that we provide final clarity on this. There shouldntbe any expectation the ANC will move from here and start deciding who and wherewere going to nationalise, he said.

21 December 2012The TimesPage 17Mondli Makhanya

Schizophrenia grips ANC at Mangaung conference

RENEWAL, unity and integrity were the buzz words at the ANC's conference inMangaung this week.

They were words of aspiration as South Africa's governing party examined the stateof its affairs and its performance in governance and plotted its future.

It was because of the centrality of these words in the workings of the week that theMangaung conference was thick with irony and contradiction.

Setting itself the task of cleaning itself up and modernising, the ANC committed todevising a 10-year programme of renewal. According to ANC thinker and Gauteng

ANC secretary David Makhura, this decade of the cadre would involve "political,ideological, academic and ethical training" of ANC members.

ANC members would be trained in line with a "cadre policy" on the party's core

values.

"Integrity will be the primary criteria for membership of the ANC. An ANC member willhave to be beyond question and beyond reproach, " said Makhura, just a day afterthe party had re-elected Jacob Zuma as its leader.

The party would establish an "integrity commission" to police the conduct of itsmembers. It would investigate allegations of impropriety, corruption and unethicalbehaviour by ANC members, particularly those who hold leadership positions andpublic office. It would also have the power to recommend the suspension of amember who was under a cloud, and the prosecution of such members by the party's

disciplinary committee.


21/56

But, in some instances, Makhura added, the party would expect members who faceallegations to use their own discretion and step aside while they are beinginvestigated.

"Conscientious members of the ANC would decide on their own when they face

damaging allegations," said Makhura, without any hint of irony.

In his opening address on Sunday, Zuma had also punted the need to root out "alientendencies" if the ANC was to be successful in renewing itself.

He urged delegates to deliberate on "how we should fight corruption and promoteethics and integrity within the ANC as well, instead of leaving action againstcorruption to the government alone".

Another alien tendency that needed to be fought, Zuma said, was the practice ofANC members using public office to benefit and enrich themselves. For thiscomment, Zuma received cheers from an adoring audience.

Unity was the other recurrent theme in a most divisive conference. The theme of theconference was "Unity in action towards socioeconomic freedom".

On the public platforms, the leaders repeated the unity mantra over and over ,seemingly in denial about the wars that were being waged under their noses.

Delegates sang songs disparaging leaders who helped engineer Thabo Mbeki'sousting in 2007 and put Zuma in office. Deputy President Kgalema Motlanthe was agoat whose departure was "very good news", was just one of the songs they sangabout the only leader they revered during the Polokwane conference and in the

aftermath.

The likes of Fikile Mbalula, Tokyo Sexwale, Mathews Phosa, Paul Mashatile andThandi Modise - who had been on the Motlanthe slate - were suddenly enemiesrather than electoral foes. During the two days of electoral contest, the mood amongdelegates was decidedly tense. And, in the wake of the Zuma camp's victory, therewas unbridled triumphalism on the one side and inconsolable dejection on the other.Motlanthe supporters rallied too, trashing Zuma on his relationship with the Guptas.

What will now follow are repercussions reminiscent of the post-Polokwane fallout asthe lives of the losers are made unbearable. A new round of purges will follow,leading the ANC to bleed talent and remain in permanent turmoil. Having vanquished

the foe, new rifts will develop among the victors.

The first spur will be contestation for places on the 2014 electoral lists, a process thatbegins during the course of next year. Battle lines will be drawn and the public will betreated to another round of governing party wars.

Thereafter, it will be gloves off for the race for the 2017 ANC conference, withdifferent leaders vying to succeed Zuma and claim other positions on the top rungs.

Cyril Ramaphosa's return to big politics may have put him in pole position to succeedZuma but, as he knows, loyalties in politics are fickle.


22/56

Just as happened to Motlanthe, some of those who cheered him on this week will beamong those who will be sharpening their knives in no time.

All the ANC crown princes know that the 2019 election will be the last one in whichthe party will be guaranteed victory and its leader assured of the presidency of the

republic.

Others know that it might be the last guaranteed ticket to cabinet positions andpremierships, so the fights might be more vicious than the ones we have seen in thepast.

Renewal, integrity and unity will remain mirages under these circumstances. Thedecade of the cadre may just be the decade of accelerated decline.

21 December 2012

The TimesPage 4Caiphus Kgosana and Thabo Mokone

ANC gets serious about curbing corrupt members

THE ANC has released a detailed plan to clamp down on corrupt, ill-disciplined andunruly members.

The crackdown will be extended to its "deployees" in the government.

An integrity committee - to be established within the next three months - will havepowers to impose wide-ranging sanctions on misbehaving members, includingforcing those in trouble with the law to "step aside" while they try to clear their name.

The commission will be able to remove members from high-ranking positions in thegovernment and state institutions if they are found guilty of financial impropriety andother irregularities.

The setting up of the integrity committee was one of the resolutions adopted by theANC elective conference yesterday.

Gauteng ANC secretary David Makhura, one of the drafters of the proposals on

organisational renewal, said the integrity committee would be the ruling party'sweapon against corruption.

"That committee will be able to recommend the removal of such a leader of theANC," he said.

"Our principal weapon to deal with corruption is the integrity committee. Issues maybe brought to the integrity committee about the conduct of a leader of the ANC or anofficial representative of the ANC who is doing unethical things. The committee willoperate on the basis of trying to ensure that each one of us abides by the code ofconduct of the ANC, core values of the ANC, as well as the laws of the land."


23/56

Gauteng, the only ANC province with an integrity committee, used it successfully toget rid of housing MEC Humphrey Mmemezi after he abused his government-issuecredit card.

But Mmemezi, aligned with the successful campaign to re-electPresident Jacob

Zuma, is likely to make a spectacular comeback after his election yesterday to theparty's national executive committee.

ANC delegates also agreed on a constitutional amendment that allows the party todiscipline directly "deployees" found guilty of corruption, money-laundering,racketeering or any other act of financial impropriety in the positions they hold.

Andries Nel, a member of the commission on constitutional amendments, said theoption of asking members in trouble with the law to "step aside" would not apply tothose already facing criminal charges, such as ANC Northern Cape chairman JohnBlock.

21 December 2012The TimesPage 2TJ Strydom, Olebogeng Molatlhwa and Thando Mgaga

Minerals: 'We want fair share'

NATIONALISATION as a blunt instrument of economic transformation is off the table,but targeted intervention in certain sectors remain on the agenda.

This announcement came as the ANC's elective conference in Mangaung drew to aclose yesterday.

Public Enterprises Minister Malusi Gigaba said "the issue of nationalisation as [it has]been discussed over the last few months is off the table".

Instead, the state "will increase state ownership in strategic sectors where [it is]deemed appropriate on a balance of evidence".

The commission also confirmed that the National Development Plan - a

comprehensive economic blueprint for the country - will be the overarching long-termvision of the ANC.

This follows months of uncertainty among investors and two ratings agenciesdowngrading South Africa's government debt, potentially making it more expensive toraise funds for its multibillion-rand infrastructure plans.

The ANC Youth League had been pushing hard for the nationalisation of the mines.The ANC, however, said yesterday that the government wanted an "equitable share"of the revenue of mining companies.

Enoch Godongwana, head of the party's economic transformation committee,confirmed that it would take the form of a tax, but details will only be finalised later. A


24/56

resource rent tax, similar to the system used in Australia, is one of the options beingconsidered.

"A particular sector might need to be nationalised for particular purposes. Ithappened in the UK and in the US during the global financial crisis," Gigaba said.

The financial crisis has cost South Africa 1million jobs over the past years andspecifically 200000 in manufacturing.

21 December 2012The TimesPage 1Sibongakonke Shoba and Dominic Mahlangu

ANC executive now almost 100% Zuma

PRESIDENT Jacob Zuma has consolidated his grip on the ANC - his backers nowdominate all its most powerful structures and the national party conference inMangaung adopted almost all his key policy proposals on the opening day.

As well as being determined to win a second term as party president, Zuma went toMangaung with the intention of getting party branches to reject the nationalisationcalls made by former ANC Youth League leader Julius Malema.

Zuma also wanted the conference to endorse Trevor Manuel's National Development

Plan, which he intends to put at the centre of government programmes for the nextseven years.

Zuma got his way on both counts at the conference yesterday.

Public Enterprises Minister Malusi Gigaba told journalists that wholesalenationalisation, as proposed by the youth league, was now "off the table".

Zuma repeated his call for party unity last night, saying: "We must all do everythingthat is humanly possible to lead the organisation in promoting unity. As Madibataught us, unity is the rock upon which the ANC was founded.

"Unity will not [just] happen, we need to work hard for it."

Zuma's hand will also be strengthened by the election of a national executivecommittee that is dominated by those loyal to him.

During his first term as party president, Zuma's leadership faced resistance fromsome in the NEC. Malema and Arts and Culture Minister Paul Mashatile were amongthe NEC members who openly opposed some of his programmes.

But Zuma allies made a clean sweep in the NEC elections yesterday, kicking outseveral leaders who were part of the unsuccessful bid to oust Zuma. Tokyo Sexwale,

Mathews Phosa, Fikile Mbalula and Mashatile were purged.


25/56

Those elected to the NEC include disgraced former Gauteng housing MECHumphrey Mmemezi and former national police commissioner Bheki Cele.

Former agriculture minister Thoko Didiza and former Reserve Bank governor TitoMboweni are also on the executive.

Finance Minister Pravin Gordhan's election to the NEC will strengthen his position inthe government.

The election earlier this week of Cyril Ramaphosa as the party's deputy president islikely to give impetus to the implementation of the National Development Plan.

Ramaphosa, one of the plan's architects, is likely to take over as national deputypresident from Kgalema Motlanthe. It is expected that he will be an important driverof the plan, which sets out the country's developmental objectives for the next 20years.

At the start of the conference on Sunday, Zuma made a passionate plea to delegatesto endorse the National Development Plan, which alliance partner Cosatu hascriticised for promoting "conservative" economic policies.

ANC economic transformation committee chairman Enoch Godongwana toldjournalists yesterday that the conference had adopted the plan as the pillar of itspolicies.

20 December 2012Business Day

Page 2Natasha Marrian

Motlanthe to lead ANCs political school

FORMER African National Congress (ANC) deputy president Kgalema Motlanthe isto head up the partys political school, President Jacob Zuma said on Thursday.

Mr Motlanthe, who challenged Mr Zuma for the party presidency and lost to theincumbent, declined nomination to serve on the ANCs national executive committee,amid concern that the ruling party lost skilled leaders after elective gatherings.

The ANC again emphasised unity at the close of the 53rd national conference inMangaung on Thursday, with Mr Zuma telling delegates that the party had to take itstask to unite seriously, unlike after the divisive Polokwane elective conference in2007.

The primary task of the ANC going forward is to work for unity at all levels of theorganisation, he said. We must all do everything that is humanly possible to leadthe organisation in promoting unity.

Mr Zuma said the party had to root out ill-discipline, factionalism and public spatsthrough political education, which the party would no longer merely speak about, but

also implement.


26/56

We have to fast-track the implementation of a coherent cadre policy, the presidentsaid, and institutionalise political education. We must move away from saying howimportant political education is, to actually implementing the decisions. Throughpolitical education and cadre development as well as decisive action against ill-discipline, we will be able to root out all the tendencies that we have identified overthe years.

Mr Motlanthe would head up political education, he said, following discussionsbetween himself, newly elected deputy president Cyril Ramaphosa and MrMotlanthe.

In an interview with Business Day earlier this month, Mr Motlanthe said he washappy to take direction from those he led, even if this took him full circle. He alsoexpressed a desire to teach those at the beginning of their political careers, in theCongress of South African Students (Cosas).

He was quick to respond when asked if he had ever contemplated professional life

after the ANC, saying political education was close to his heart and he believed hecould make a wonderful contribution.

Mr Motlanthe said at the time that he was privileged to be asked to lead the ANC bysome of its branches.

Briefly the president of South Africa when Thabo Mbeki was recalled, Mr Motlanthescoffed at suggestions of harbouring presidential ambitions at the ANCs previousnational electoral conference in Polokwane, where he joked that he would prefer tohelp coach Bafana Bafana. At the time, he was quoted as saying his trademarkgoatee had steadily turned grey during his time in the ANC.

Call for discipline

In his closing address, Mr Zuma also reminded delegates that all ANC members hada right to be nominated for any position in the party and to accept or decline thatnomination. Therefore, no member or leader of the ANC should be ostracised forexercising their democratic rights as members.

Mr Motlanthe had declined nomination both for his own position as deputy ANCpresident and for the ANCs national executive committee.

Mr Zuma also said the conference had tasked the incoming NEC to develop

guidelines for and constitute an integrity committee within the next three months.

The NEC must also develop a code of conduct to be circulated to all branches in thefirst quarter of 2013.

Mr Zuma added that the conference had in its wisdom taken a decision that theincoming NEC must discuss the matter of the ANC Youth League. We appreciatethat decision and the spirit in which it was taken.

Economy


27/56

On the economy, Mr Zuma said the ANC would in the next five years take decisiveand resolute action to overcome the triple challenges of poverty, inequality andunemployment.

The ANC government will therefore transform the structure of the economy through

industrialisation, broad-based black economic empowerment, addressing the basicneeds of our people, including women and youth, as well as strengthening andexpanding the role of the state, he said.

More importantly, the ANC has at this conference welcomed and embraced NationalDevelopment Plan as a critical basis for united action by all South Africans to build atruly united, non-racial, non-sexist, democratic and prosperous society.

Therefore, Mr Zuma said, the ANCs first strategic task is now the comprehensiveand democratic implementation of the National Development Plan. It is a strategictask to ensure that by 2030 we attain full employment for our people, consequentlyeradicate poverty and significantly reduce inequality.

21 December 2012Business DayPage 1Allan Seccombe


THE mining industry is relieved the African National Congress (ANC) has firmlyrejected nationalisation of mines, talk of which had caused policy uncertainty, cast apall over their shares and dominated their interactions with international investors.

But there will be intense negotiations between the sector and the Treasury on a newtax regime for mining companies, which argue that they are the most heavily taxed inSouth Africa.

The Chamber of Mines said on Thursday in a statement that the finalisation of theANCs stance on nationalisation removed a key point of uncertainty for investors."The chamber welcomes the ANC resolution that wholesale nationalisation is not areasonable or sustainable option and that it has now firmly ruled out nationalisationof the mining industry.

"We are hopeful that this will create some certainty amongst investors and onceagain encourage investment in the countrys mining sector."

Cadiz Corporate Solutions analyst Peter Major said there had been heightened fearsof what could have come from the ANC against the backdrop of unprecedentedstrikes this year that cut billions of rand in revenue for platinum and gold companies.The outcome of the policy debate was good. "Its come out a whole lot better thanany of us thought it would," Mr Major said. " It has defused the Malema-type guys inthe party ."

The ANC has for years been dithering on calls for nationalisation from the partysyouth league and its since-expelled president, Julius Malema. But there remains


28/56

uncertainty in the market about the quantum of taxes that may be imposed on themining sector.

The JSE index, housing the top 20 resources shares, closed 0.2% down onThursday.

"The real issue is that there is still no certainty on what will happen, so investors willremain cautious until there is some clarity," said Des Kilalea, a mining analyst withRoyal Bank of Canada in Europe.

"Merely taking nationalisation off the table is not sufficient. There has to be a detailedand firm policy if investment dollars are to be attracted."

The mining sector paid R25.8bn in direct corporate taxes and R5.5bn in royalties lastyear. It is further obliged to spend money on social and labour plans necessary tosecure mining rights.

Chamber of Mines CEO Bheki Sibiya said last week that higher taxes could force theclosure of marginal shafts and the potential loss of tens of thousands of jobs.

A senior figure in the ANC said the appointment of businessman Cyril Ramaphosa asdeputy president of the party augured well for the mining sector. "One of thefunctions of the position taken here (at Mangaung) was to manage the expectationsof people frustrated by what they perceive as an insignificant contribution made bythe mining industry.

"Its important to manage those expectations and its even more important that thismatter be resolved as soon as possible to thwart those who want wholesale

nationalisation."

The source said the nationalisation debate had engendered uncertainty that washigher than that emanating from discussions about the level of taxation. "Assets arenot under threat of being taken anymore.

"It now means profits will be less, but the extent of that is up for discussion," thesource said. "There was a price to pay to deal with nationalisation and that is highertaxes that will be imposed in a responsible manner."

21 December 2012

Business DayAllan Seccombe


THE mining industry is relieved the African National Congress (ANC) has firmlyrejected nationalisation of mines, talk of which had caused policy uncertainty, cast apall over their shares and dominated their interactions with international investors.

But there will be intense negotiations between the sector and the Treasury on a newtax regime for mining companies, which argue that they are the most heavily taxed in

South Africa.


29/56

The Chamber of Mines said on Thursday in a statement that the finalisation of theANCs stance on nationalisation removed a key point of uncertainty for investors."The chamber welcomes the ANC resolution that wholesale nationalisation is not areasonable or sustainable option and that it has now firmly ruled out nationalisationof the mining industry.

"We are hopeful that this will create some certainty amongst investors and onceagain encourage investment in the countrys mining sector."

Cadiz Corporate Solutions analyst Peter Major said there had been heightened fearsof what could have come from the ANC against the backdrop of unprecedentedstrikes this year that cut billions of rand in revenue for platinum and gold companies.The outcome of the policy debate was good. "Its come out a whole lot better thanany of us thought it would," Mr Major said. " It has defused the Malema-type guys inthe party ."

The ANC has for years been dithering on calls for nationalisation from the partys

youth league and its since-expelled president, Julius Malema. But there remainsuncertainty in the market about the quantum of taxes that may be imposed on themining sector.

The JSE index, housing the top 20 resources shares, closed 0.2% down onThursday.

"The real issue is that there is still no certainty on what will happen, so investors willremain cautious until there is some clarity," said Des Kilalea, a mining analyst withRoyal Bank of Canada in Europe.

"Merely taking nationalisation off the table is not sufficient. There has to be a detailedand firm policy if investment dollars are to be attracted."

The mining sector paid R25.8bn in direct corporate taxes and R5.5bn in royalties lastyear. It is further obliged to spend money on social and labour plans necessary tosecure mining rights.

Chamber of Mines CEO Bheki Sibiya said last week that higher taxes could force theclosure of marginal shafts and the potential loss of tens of thousands of jobs.

A senior figure in the ANC said the appointment of businessman Cyril Ramaphosa asdeputy president of the party augured well for the mining sector. "One of the

functions of the position taken here (at Mangaung) was to manage the expectationsof people frustrated by what they perceive as an insignificant contribution made bythe mining industry.

"Its important to manage those expectations and its even more important that thismatter be resolved as soon as possible to thwart those who want wholesalenationalisation."

The source said the nationalisation debate had engendered uncertainty that washigher than that emanating from discussions about the level of taxation. "Assets arenot under threat of being taken anymore.


30/56

"It now means profits will be less, but the extent of that is up for discussion," thesource said. "There was a price to pay to deal with nationalisation and that is highertaxes that will be imposed in a responsible manner."

21 DecemberBusiness Day

Setumo Stone

ANC Youth Leagues future in balance

THE future of the African National Congress (ANC) Youth League came underscrutiny this week at the partys national conference, threatening to erode the littleprogress made between the league and the ANC since Julius Malema was bootedout.

Speaking at a media briefing on Thursday, former ANC national executive committee

member Febe Potgieter-Gqubule said delegates gave the incoming executivecommittee the mandate to urgently intervene and assess the state of the youthleague. This follows a strong push from President Jacob Zumas supporters for the

ANC to disband the youth league executive and order an early conference to electnew leaders.

However, attempts by the ANC to intervene in the running of the youth league arelikely to spark another controversy on the interpretation of the leagues autonomousstatus. Some in the league this week dared the ANC to go ahead and intervene.

Ms Potgieter-Gqubule said the league is an organ of the ANC and it cannot defineitself outside the mother body.

The league had supported Deputy President Kgalema Motlanthe to replace Mr Zumaat the elections this week in Mangaung. But he lost to Mr Zuma by a wide margin.

The term of office of the youth league leadership ends in 2014. But the expulsion ofits former president, Mr Malema, as well as the suspension of its secretary-generalSindiso Magaqa, had left it in limbo.

In an interview earlier this week, Mpumalanga premier and ANC provincial chairmanDavid Mabuza, a close ally of Mr Zuma, said the league had been participating inefforts ahead of the conference to seek unity within the ANC, including a consensus

on the partys national leadership candidates. Mr Mabuza said there was "room tobuild the youth league with the current contingent and allow them to go to a properconference".

ANC secretary-general Gwede Mantashe who had been the subject of theleagues vociferous attacks against the ANC during the Malema era also took aconciliatory note, saying the league was not in trouble. "All the league needs is to behelped to play its rightful role.

"It is very militant, but sometimes it loses focus and it is the responsibility of theincoming national executive committee to help the youth league," Mr Mantashe said

this week.


31/56

On Sunday, Mr Malema wrote a letter to the conference for permission to return asyouth league president. Mr Mantashe said the letter was received after theprogramme for the conference had been adopted.

Mr Malema was expelled from the ANC for comparing the leadership style of Mr

Zuma to that of former president Thabo Mbeki, and for remarks on bringing aboutregime change in Botswana.

21 DecemberBusiness Day

Dlamini-Zuma tops the list as ANC chooses national executive

FORMER home affairs minister Nkosazana Dlamini-Zuma, now chairwoman of theAfrican Union Commission, was the first member of the African National Congresss

new national executive committee (NEC) announced at its national electiveconference in Mangaung on Thursday, the last day of the conference.

She had received the most votes in the election that took place on Wednesday. The80-member NEC is the ruling party's highest decision-making body betweenconferences and general councils.

Also high up on the list were Minister of Public Enterprises Malusi Gigaba, in secondplace, and Public Service and Administration Minister Lindiwe Sisulu in third, alongwith Minister in the Presidency Collins Chabane, Justice Minister Jeff Radebe, Home

Affairs Minister Naledi Pandor and Science and Technology Minister DerekHanekom.

Senior ANC figures who supported the change campaign in Mangaung werenowhere to be seen on the list of the partys top brass. Among those not electedwere Sport and Recreation Minister Fikile Mbalula, ANC Gauteng chairman PaulMashatile, Human Settlements Minister Tokyo Sexwale, former ANC deputysecretary-general Thandi Modise and former ANC treasurer-general MathewsPhosa.

Thoko Didiza, former minister of public works, joined the NEC too, and delegatescheered when the name of former Gauteng local government MEC HumphreyMmemezi was read out. He resigned after it was revealed that he bought a painting

at McDonalds using a government credit card.

Former national police chief Bheki Cele, who was fired by President Jacob Zuma,also made the cut.

The party has also selected top financial minds in a bid to boost its financial prowess,a move likely to bring confidence to the party's top leadership structure in the eyes ofinvestors. The economic boost to the NEC came in the form of Finance MinisterPravin Gordhan, Minister of Rural Development and Land Reform Gugile Nkwinti andformer Reserve Bank governor Tito Mboweni.

Police Minister Nathi Mthethwa, Speaker of Parliament Max Sisulu and formerCabinet minister Z Pallo Jordan got the nod.


32/56

From the ANCs alliance partners, South African Communist Party (SACP) generalsecretary Blade Nzimande and Congress of South African Trade Unions (Cosatu)president Sdumo Dlamini were elected as well.

Other trade unionists also featured prominently, including National Education, Health

and Allied Workers' Union general secretary Fikile Majola, National Union ofMineworkers president and SACP chairman Senzeni Zokwane and Free StateCosatu secretary Sam Mashinini.

Joining the other NEC members on stage were ANC spokesman Jackson Mthembu,Health Minister Aaron Motsoaledi and ANC economic policy chief EnochGodongwana.

In a nod to the younger generation in the ANC, former ANC Youth League treasurerPule Mabe and former presidential spokesman Zizi Kodwa were elected too.

Winnie Madikizela-Mandela, who received the most votes in the NEC election at

Polokwane in 2007, squeezed into the second-last spot this time.

Former ANC deputy president Kgalema Motlanthe had withdrawn from nomination tothe NEC after losing the race for the party presidency to Mr Zuma earlier this week.

Others who had not made themselves available for election to the NEC werePlanning Minister Trevor Manuel, Cosatu general secretary Zwelinzima Vavi andformer Free State provincial leader Ace Magashule, whose provincial executivecommittee was disbanded after the Constitutional Court last week declared the FreeState elective conference invalid.

21 December

Business DayRay Ndlovu

Zuma victory bad for Mugabe

PRESIDENT Jacob Zumas re-election to lead the African National Congress (ANC)in Mangaung this week for a second term is likely to slam the brakes on PresidentRobert Mugabes bid to hold early elections, according to political analysts inZimbabwe.

Mr Mugabe wants elections in March, but Mr Zuma, the Southern AfricanDevelopment Community (Sadc)-appointed mediator, is widely seen as an obstacleto Mr Mugabes plans.

Mr Mugabes Zanu (PF) passed a resolution at its party conference held at thebeginning of this month to go ahead with early elections next year, despite keypolitical reforms not yet being completed.

Insiders in Zanu (PF) say that Mr Mugabe is now privately conceding that theelections he desperately wants held early may not be possible until next Junebecause of the slow pace of implementing the reforms.


33/56

Political analyst Charles Mangongera said on Thursday Mr Zumas victory meantthere would be a continuation of the same trajectory of dealing with Mr Mugabe.

"A leadership change in the ANC would not necessarily have resulted in a change ofattitude towards Harare by Sadc, but would have certainly slowed down things a bit.

Mr Zuma and his facilitation team will stick to their guns in calling for strict adherenceto the road map on elections. This will put a damper on Zanu (PF)s threat to call anelection without a new constitution."

Political analyst Tanonoka Joseph Whande said Zanu (PF) was "in the same leagueof losers as the former ANC Youth League leader Julius Malema", who had launcheda public push to block Mr Zumas re-election.

"Zanu (PF) may not have been publicly campaigning against Mr Zuma, but theystood to benefit immensely from a leadership change in the ANC," he said.

Zanu (PF) chairman Simon Khaya Moyo, however, downplayed the effect of Mr

Zumas win. He said that his party remained the firm favourite to win the nextelections.

"Our party has always stood firm in advancing the views of the people and webelieve that agreeing to anything from external sources, other than the views of thepeople, is a betrayal of the revolution. Zanu (PF) remains the sole political choice forthe majority of people of Zimbabwe", Mr Moyo said.

The opposition Movement for Democratic Change (MDC) welcomed the ANCleadership outcome.

"The election of Mr Zuma will ensure continuity in the mediation process inZimbabwe," said MDC spokesman Douglas Mwonzora.

19 December 2012Business ReportPage 1

Donwald Pressly

Ramaphosa's election may boost plan

The election of Cyril Ramaphosa, the deputy chairman of the National Planning

Commission, to the ANCs second most powerful position has given the NationalDevelopment Plan (NDP) much-needed impetus, but cabinet ministers played downany contradictions it may have with the New Growth Path (NGP), which already hasthe backing of ANC structures.

Ramaphosa notched up 3 018 votes in the race for deputy to President Jacob Zuma,who got 2 983 votes against Kgalema Motlanthe, signalling that the moreconservative and pro-business NDP will receive a solid thumbs-up by the 4 000delegates to the Mangaung ANC conference.

Before the conference started, Ramaphosa himself noted that the plan needed to get

the conference nod, although the blueprint, driven by National Planning MinisterTrevor Manuel, had already been given the green light by Parliament and thecabinet.


34/56

In his opening speech, Zuma referred to the plan as representing a confluence ofideas that extended beyond ANC supporters alone, and he did not wish to entertaindebate about alternative plans.

During a Progressive Business Forum breakfast yesterday, Economic Development

Minister Ebrahim Patel said he did not view the NDP and the NGP, driven by hisdepartment, as being contradictory. Some minor details might clash during theimplementation process, he said, but these were not significant.

Deputy Finance Minister Nhlanhla Nene expressed similar sentiments on Monday atthe conference.

The NDP is essentially a development blueprint. It warns that urgent steps areneeded to grow the economy, drastically raise employment levels, massively improveeducation standards, upgrade infrastructure, curb corruption and improve healthservices.

The NGP, first launched in 2010, has seven priority areas, including job creation,infrastructure development, agriculture, mining, manufacturing, the green economyand tourism. It places emphasis on the state creating the platform for economicdevelopment.

Pressed on whether the conference would end critical policy uncertainty in theeconomic arena, Patel said: I believe that business will get that certainty.

However, he said that in a democracy, public policy was open to public debate.

It is not an issue for smoke-filled rooms it is a societal matter of course it is

sometimes noisy and on occasion it is messy.

Confronted by the charge that the NGP which sees a significant role for thegovernment and its state-owned entities in creating jobs was not consistent withthe NDP, Patel said: The NGP and the NDP fit well together [and this is] not byaccident. .

The starting points are the same, he argued. Both documents sought fast economicexpansion and job-rich growth.

Asked by First National Bank chief economist Sizwe Nxedlana why there appearedto be a disconnect between policies on paper and accountability on the ground

such as the non-delivery of school textbooks Patel said he agreed that there wasoften a lot of talk about policies, but little action.

Business Unity SA (Busa) welcomed the results of the vote for the ANCs new top sixleadership.

It particularly drew attention to the need for the implementation of the NDP.

Busa chief

Global South African News Wrap - 11 January 2013

Documents

Transcript of Global South African News Wrap - 11 January 2013