Global South African News Wrap – 2 November 2012 ANC branches battle with numbers Jacob Zuma's decade of destruction A-G to probe upgrade of Nkandla Mixed Mangaung signals to media Workers’ party ‘will contest 2014 election’ DA’s unity dream suffers severe setback Mine layoffs set to add to 4.7-million out of work Gordhan defends ANC over mine tax ANC race hits snags Electricity hikes will damage industry Secrecy bill ‘should prevail on classified information’ Marikana commission told of ‘brutal assaults and torture’ Mpofu the right man to play both law and politics Bid to block Zille’s Khayelitsha inquiry South Africa bottom of class in maths and science 'Secrecy Bill must trump all' Lonmin raises the spectre of layoffs Whites earn 6 times more than blacks Pay disparities persist –Zuma Manuel: Income gaps worrying DA seeks mining unrest committee SA must let anger go: Zuma Airlines cash in on London-CT flights Proof of how much we have done — and must still do Tlakula urges protection for whistle-blowers ANC chief whip Motshekga calls for second term for Zuma Judge comments on ‘remarkable’ lack of Marikana police footage Lekota ejected from the National Assembly over Zuma comments South Africans are following the money Sadtu ‘stands behind’ Zuma re-election bid Politics at work in Zuma, Zapiro case Western funds shock for Dlamini-Zuma Mangaung ‘tipping point’, says Motlanthe Cabinet decision triggers wrangling over e-toll tariffs Opposition parties laud pay-freeze move

2 November 2012 Mail and Guardian Andisiwe Makinana, Matuma Letsoalo

ANC branches battle with numbers

The branch meetings are where the nominations take place.

Some regional leaders are panicking that their branches may miss the opportunity to nominate and elect new leaders – and will therefore not be represented at the ANC's Mangaung conference because of their failure to hold proper meetings.

The ANC constitution requires that for a branch meeting to proceed there must be at least a 50% turnout – plus one branch member. Achieving this quorum is proving to be a mammoth task.

One regional leader, who did not want to be named, said most branches in his region would be trying for a second or third time to hold meetings.

ANC spokesperson Keith Khoza said all provinces should finalise their nominations by November 26.

Meanwhile, it remains to be seen which faction is leading the nominations as lobbyists from both sides claim to have the edge.

A simple thing In the Western Cape, a senior ANC leader who is campaigning for change in Mangaung claims that of the 84 branches that had held branch meetings by Wednesday night, 55 had nominated Deputy President Kgalema Motlanthe to take over the reins of the party and Sports Minister Fikile Mbalula as the proposed new secretary general.

The provincial leader said: "It's a simple thing; they might make claims, but we are leading. That's not going to change. If you remember, even before Polokwane the Western Cape didn't want Zuma."

This claim has been rubbished by the province's pro-Jacob Zuma grouping.

ANC Eastern Cape spokesperson Mlibo Qoboshiyane said about 60% of the province's branches had completed their nominations and 80% of them had chosen Zuma to continue at the helm.

"We rely on the information we receive on the day of branch general meetings, but we have not yet consolidated the statistics. JZ may be enjoying 80% of the total number of those who have already nominated. There is no region that has failed to nominate him, including those that were said to be against him," said Qoboshiyane.

"He shows no sign of fear. In Mbizana we went to the same area as the ANC Youth League and received the loudest applause. He conducts his organisational leadership differently. He has a common touch."

Qoboshiyane said there were no policy differences between Zuma and Motlanthe and, instead, the two were working closely together.

Agents for change "If Motlanthe is available [for deputy president], it will be an advantage for the ANC," he said.

Thandekile Sabisa, chairperson of the province's large OR Tambo region and chief lobbyist for the "agents for change" grouping, differred. "Anyone who claims to know the numbers is misleading you. They are merely giving you their opinion," he said.

Sabisa said that after a branch had nominated its preferred leaders the nominations were put at a sealed envelope and therefore, with the exception of the people in the meeting, no one could be certain about who had been nominated.

He was confident, however, that Motlanthe would come out tops in the province.

"As a region [OR Tambo] we have resolved to campaign for Motlanthe and we are busy lobbying other regions to do the same. At the regional general council Kgalema will be nominated and we will ensure that in the provincial general council he is nominated strongly."

Necessary protocols The Eastern Cape is proving to be a battleground for the two factions. Last week, the youth league was forced to postpone its OR Tambo rally, which was meant to be attended by Motlanthe, because Zuma was addressing a rally in the same area.

The league claimed that the rally organised by the Zuma-backed provincial executive committee was an act of sabotage. The league said it had organised its OR Tambo rally two months in advance and had followed all the necessary protocols, including informing ANC headquarters about the event.

"There was no competing programme at any point. We are not surprised, however, to note that President Zuma has agreed to address a rally in the same area, organised by the provincial executive committee of the ANC, the following day. This swiftly organised rally is nothing but a blatant and immature act to sabotage the activities of the ANC Youth League [and is] further evidence of how far some among us are willing to go to preserve the status quo, while shouting for change on other platforms."

The youth league rally has been rescheduled for this weekend in Mbizana and Motlanthe will apparently address it.

Zuma's diary, released to the media on Monday, reveals that he will be back in the Eastern Cape to address "heritage" celebrations at Lotana Great Place in Qumbu, about two hours away from Mbizana, on Sunday.

Qoboshiyane said traditional leaders had invited Zuma to the event. "He is visiting all areas in the province. He will be here again this weekend to interact with traditional

leaders. They invited him for their event. So you have a president who has his own contacts. That, to us, is a leader that we need," he said.

2 November 2012 Mail and Guardian Sam Sole

Jacob Zuma's decade of destruction

It is almost 10 years since the Mail & Guardian first revealed that the Scorpions were investigating then-deputy president Jacob Zuma – on November 29 2002.

Since then Zuma's decade-long battle to avoid prosecution on corruption charges has been the real political tsunami, ripping through institutions and careers.

It has led to the recall of a president, the factionalisation of the ruling party and its government, the destruction of the Scorpions, the departure of three national directors of public prosecutions and the tainting of the reputation of the National Prosecuting Authority (NPA).

Now Zuma's bid to avoid his day of reckoning – including accounting for the seed money that first funded what has become the Nkandla monstrosity – has entered a bitter new phase following the NPA's refusal to hand over copies of the so-called spy tapes.

The Zuma tapes The tapes – secret recordings by the intelligence services of discussions between members of the Scorpions, the NPA and prominent political figures – were leaked to Zuma's lawyer, Michael Hulley, and used as the basis of the claim that the Zuma prosecution had been tainted by an "abuse of process".

Then-acting national director of public prosecutions Moketedi Mpshe cited intercepted conversations of former Scorpions boss Leonard McCarthy as central to his decision, in April 2009, to discontinue the prosecution.

In excerpted transcripts released by Mpshe, McCarthy appeared to have a number of discussions in late 2007 with people outside the NPA – including then-former national director of public prosecutions Bulelani Ngcuka – about the timing of charges being reintroduced.

Read More: The spy tapes timeline

Of concern was the looming Polokwane conference of the ANC – and the impact that recharging Zuma might have on the outcome.

McCarthy also appeared to make a special effort – with Ngcuka's assistance – to have the NPA's court papers in the Constitutional Court filed and made public on their due date, Friday December 14.

The papers – in reply to Zuma's constitutional challenge to the search and seizure operations carried out against him – set out the case against the man challenging Mbeki for the ANC presidency.

The intention appears to have been that delegates gathering in Polokwane that weekend would, in Ngcuka's intercepted phrase: "Wake up, think: What are we doing?"

Mpshe's decision In justifying his decision, Mpshe emphasised there had been a valid case against Zuma. He also noted that the prosecution team itself believed the case should continue and that it should be left to a court to decide whether to stop the prosecution.

But Mpshe argued: "Mr McCarthy used the legal process for a purpose other than for which the process was designed to serve, that is, for collateral and illicit purposes. It does not matter that the team acted properly, honestly, fairly and justly throughout. Mr McCarthy's conduct amounts to a serious abuse of process and offends one's sense of justice." It later emerged that part of Mpshe's legal justification appeared to have been lifted from a Hong Kong judgment that was later overturned on appeal.

McCarthy, who by then had left to join the World Bank, has never given his version of events.

The DA steps in In 2009 the Democratic Alliance went to court to try to have Mpshe's decision reviewed and set aside.

A preliminary point was the right of the DA as part of the review process to have access to the "record of decision" – the documentary evidence on which Mpshe relied when deciding to terminate the case, which included representations made by Zuma's lawyers.

The prosecuting authorities refused to deliver the record on the basis that it contained the representations, which had been made on a confidential basis.

The DA then applied to receive what was termed the "reduced record" – the material on which Mpshe relied, minus the written representations from Zuma.

The North Gauteng High Court in Pretoria ruled that the party did not have sufficient direct interest or "standing" to bring the case and dismissed the DA's application for the record.

The appeal court ruling The DA took this ruling to the Supreme Court of Appeal.

In March this year the appeal court ruled in the DA's favour, making an important determination on the rights of political parties to go to court in the public interest. On the record of decision, Judge Navsa made the following key finding: "Without the record a court cannot perform its constitutionally entrenched review function …The DA … has merely asked for an order directing the office of the national director of public prosecutions to dispatch … the record of proceedings relating to the decision to discontinue the prosecution, excluding the written representations made on behalf of Mr Zuma … I can see no bar to such an order being made."

The order Navsa ordered that within 14 days – by early April – the national director of public prosecutions produce the record, with the following caveat: "Such record shall exclude the written representations made on behalf of [Zuma] and any consequent memorandum or report prepared in response thereto, or oral representations if the production thereof, would breach any confidentiality attaching to the representations."

The judgment also made reference to concerns expressed by Zuma's lawyers that there might be material in the record of decision that might adversely affect his rights and to which he might justifiably object.

To meet this concern, acting national director of public prosecutions Nomgcobo Jiba gave an undertaking that her office would inform Zuma of the contents of the documents to be released so that his lawyers could raise any objections.

It is this loophole that Jiba and Hulley have used to block the release of the spy tapes.

Return to Stalingrad In the drawn-out litigation with the Scorpions, Zuma's lawyers became notorious for what was termed the Stalingrad approach – fighting off the prosecution street by legal street by taking technical and preliminary points.

The response to Navsa's ruling carries the same hallmarks. Two days after the expiry of the appeal court's deadline, the state attorney wrote to the DA saying the NPA was still compiling the record. In addition, there were "certain tape recordings" that were still in the process of being transcribed.

But the state claimed it was obliged to give Zuma's legal team an opportunity to consider whether there was any objection to the disclosure of the recordings.

The completed transcript was delivered to Hulley by April 25, to which he responded in a manner that suggested he believed he had been given a veto right, something not suggested by the appeal court judgment.

Asking for more time to consider the matter, Hulley noted: "We are presently not disposed to consenting to the release of any further information to the DA …"

No further response was received from Hulley until after the DA launched a new North Gauteng High Court application on September 18 to compel the NPA to comply with the appeal court order.

Since then, Jiba has argued in court papers that the recordings or transcripts are "inextricably linked" with Zuma's representations and therefore cannot be disclosed without Zuma's consent. Such objections, she argues, will have to be referred back to court for adjudication.

Hulley has merely indicated – without providing any argument – that at the hearing Zuma's lawyers will argue that the transcripts do not fall within the ambit of the appeal court order.

This leaves the DA in the absurd position that none of the material on which Mpshe publicly based his decision forms part of the "official" record.

Any adverse ruling in Gauteng is sure to be appealed.

What are they hiding? The reluctance to deal with the tapes is both substantive and procedural.

All indications are that Mpshe took his decision under enormous pressure.

The political atmosphere in the run-up to the withdrawal of charges was extremely heated. Mbeki had been recalled in September 2008. Zuma was the ANC presidential candidate for the national elections just more than two weeks away.

Key Zuma allies made it clear to the M&G at the time that the lobbying was intense (although not necessarily communicated directly to Mpshe) and included implied threats of wider disclosure of surveillance material that might be personally, politically or professionally embarrassing to members of the NPA or Scorpions.

Mpshe's apparent reference to an obscure Hong Kong judgment might suggest that a decision was taken –and then legal reasons dug up to justify it.

Now, given that the prosecution team disagreed with the decision –and Wim Trengove, a senior advocate with deep knowledge of the case, had publicly lambasted it – there must be real concern in the Zuma camp that Mpshe's decision might not stand up to court scrutiny.

By blocking access to the transcripts, claimed as the very foundation of Mpshe's decision, Zuma's lawyers are preventing any meaningful review at all.

What else are they hiding? So far, the only transcripts provided are small snatches of what intelligence sources have conceded was very extensive surveillance.

One intelligence source claimed to the M&G that the high-security conference room at NPA headquarters itself was bugged.

Justice would demand that the full context of the exchanges be disclosed.

It is possible that counterveiling interpretations and events might emerge from the full record that were not given due weight in the fevered atmosphere of April 2009. More likely, however, is that the full recordings – and the circumstances of their capture and delivery, both to Hulley and to the NPA – might disclose details that are embarrassing, if not illegal.

Certainly, the legality of the initial recordings, never mind the legality of their disclosure to Hulley, may well be called into question.

This is so, despite the inspector general of intelligence concluding that taps by both the National Intelligence Agency and police crime intelligence were legally authorised by the designated judge.

Former acting head of crime intelligence Mulangi Mphego revealed in court papers that the initial judicial approval for the surveillance of McCarthy was sought on the basis that he was suspected of links to a drugs cartel.

Now Judge Willie Seriti, who granted the application for the wiretap, would have us believe that he applied his mind to this application but does not remember coming across this extraordinary allegation about the man who was head of the Scorpions at the time.

And former intelligence minister Ronnie Kasrils has said publicly that he was bypassed by the National Intelligence Agency (NIA) – contrary to instructions he had issued after the hoax email debacle – when the agency applied for its own interception order.

It was the agency tapes, which covered most of the material disclosed by Hulley, on which the NPA relied for its decision.

Confidential? As Mpshe explained at the time: "Although [Hulley's] recordings sounded authentic, the NPA decided to approach agencies that have a legal mandate to intercept telephone calls with a view to ascertaining whether they may have legally obtained recordings of the same conversations.

"The NIA confirmed to the NPA that it indeed had legally obtained recordings of many of the same conversations that were obtained during the course of its investigation into the circumstances surrounding the production and leaking of the Browse Mole report.

"The NIA indicated that it was able to share these legally with the NPA for the purposes of the investigation and for reaching a decision in this matter."

So it is clear that Mpshe based his decision on material he obtained from his own resources, although he was alerted to its existence by Hulley.

How the NPA will now argue that this material is governed by the confidentiality of Zuma's representations awaits illumination in the North Gauteng High Court. Do not expect enlightenment anytime soon.

2 November 2012 Cape Times Page 1 Gaye Davis

A-G to probe upgrade of Nkandla

The auditor-general has been asked to audit spending on the upgrade of President Jacob Zuma’s private residence at Nkandla, Public Works Minister Thulas Nxesi has announced.

Nxesi said the possibility of prices being inflated because of the “lack of controls” in the Department of Public Works could not be ruled out. That was why Auditor-General Terence Nombembe had been asked to investigate.

He told members of the National Council of Provinces that Nombembe had been asked “to audit all classified projects”, including those in the Department of Public Works’ so-called prestige portfolio, which includes ministerial and presidential residences.

Developments at Nkandla, which Nxesi has steadfastly maintained are necessary security arrangements based on a needs assessment, are reportedly costing R240 million in public funds.

He has just as steadfastly refused to give details on the basis that the information is classified in terms of the National Key Points Act.

On Thursday, Nxesi would not give a figure for the amount being spent on the Nkandla upgrade, which he said had started in 2009 and was due for completion in mid-2013.

But he said many Public Works projects had ended up costing much more than their original price.

“The question of a possibility of inflated figures cannot be ruled out,” he said. It was “common knowledge that many projects in the public works department have had variations where they end up being three times the original price”.

He cited a Limpopo hospital project for which the department quoted R360m, but which was brought down to R260m after the intervention of the Department of Health and the Treasury.

The Department of Public Works had quoted R28m to renovate the offices of the Health Ministry – but this had been contested by engineers employed by Health Minister Aaron Motsoaledi and the bill was reduced to R5m, he said.

Nxesi said the cost of renovating the department’s own headquarters, which started in 2006 at a projected cost of R69m, had escalated over five years to R230m by December last year, when it took occupation of the building.

This was “more than three times the original price”, Nxesi said.

“Clearly the lack of controls and qualified built-environment personnel and even corruption and collusion have contributed to the inflation of these prices,” he said.

Because of the lack of controls in the department, inflation of the costs associated with Nkandla could not be ruled out, he said.

“This is why we asked the auditor-general to audit all prestige projects.” He stressed that if there was corruption in the Nkandla project the blame would lie at the door of the department and not Zuma.

“The president has nothing to do with it,” he said. The project was being implemented by Public Works on the basis of the recommendations of the SAPS, Defence Department and State Security.

Nombembe’s findings “will tell us if we must do our own investigation into pricing”, Nxesi said.

He did not want to discuss the National Key Points Act as the minister responsible was Defence and Military Veterans Minister Nosiviwe Mapisa-Nqakula.

However, as the Nkandla homestead had been classified a national key point, “the information is privileged and confidential and thus can’t be disclosed”.

Nxesi gave no indication of how long the auditor-general’s probe would take.

2 November 2012 Business Day Page 3 Sam Mkokeli

Mixed Mangaung signals to media

PREPARATIONS for the African National Congress’s (ANC’s) Mangaung conference have revealed a rare side of the ruling party: a courteous organisation mindful of the need for cordial media relations.

That is the sense some journalists had, as they left Bloemfontein this week, where they were invited by the ANC and taken through the facilities that will be available to them at next month’s event, and to get an idea of how they would be expected to operate.

If all goes to plan, it seems this will be a smoother conference, compared say to the 2010 National General Council, when the accreditation process was botched. It may sound like an insignificant issue, but spending 18 hours, queuing and waiting, then queuing again, and again, for an identity tag to hang around your neck can upset even the most careful coverage plans.

This time around, ANC "communications manager" Keith Khoza, running his first conference since being appointed two years ago, is putting together a plan, and trying his best to make it as comfortable as possible for media.

But Mr Khoza has a problem, and it is not from outside the party. Some of his colleagues and political bosses come from an earlier era. As the ANC aspires to be a professional organisation, it is clashing with an old-school element trying to preserve things the way they have been for the past 100 years.

The biggest concern for journalists is access to politicians at the conference, and whether they will be allowed to attend key events. As it stands, journalists will be allowed to cover only some events at the main venue — a marquee set up 2km away from the media centre.

Out of five days, it seems only the first and the last segments will be open — the opening address by President Jacob Zuma, the nomination of the top six officials, the announcement of the winners and the closing address. That has been the custom, and trying to persuade the ANC to do otherwise may be a fruitless exercise.

At the main venue lessons from the June policy conference are set to be applied. Journalists’ movements were strictly controlled, so much so that a photographer caught without permission shooting politicians milling about had his camera confiscated and his images deleted. That happened as journalists were restricted to a media centre, 200m from the venue. The general idea appears to be to keep sniffing media at bay — while politicians will be delegated to address official press conferences.

What also promises to be controversial is the issue of cellphone signal. There are murmurs that there will be no cellphone signal at the main marquee — all the better to ensure that excited delegates do not keep journalists informed.

There are at least two ways to kill connectivity. Organisers can, presumably, jam the signal, or additional network capacity will not be provided. This is on the assumption the system would not cope with the thousands of cellphones and computers, making internet connection slow and calls impossible.

The expected erratic connectivity at the main conference venue has many journalists incensed already. But official communication from the party is that delegates need to pay attention and cannot be expected to be constantly in touch with journalists by SMS, BBM and phone calls.

Cutting communication is standard at the party’s national executive committee meetings, where all the leaders have to hand their phones over to be stored away when entering the meeting room.

Before the ANC took to such measures, deliberations at the meeting would leak to journalists, almost in real time. The news of the 2008 national executive committee decision to recall Thabo Mbeki came out as SMSs flew from that meeting, thick and fast. A lesson was learnt, and the rumour was that the signal was jammed in subsequent meetings.

For the Mangaung conference the ANC communications team is trying its best to be the gracious host. But its members are not the only people running the show. The ANC national executive committee this month will decide which sections of the conference the media will be allowed into.

A senior ANC official, part of the facilities tour in Bloemfontein this week, laid down the law — much to the embarrassment of his media relations colleagues. Rule number one was: during the conference, do not argue with security officials. That was followed by a litany of detention camp-style rules, like: "Don’t try to be a hero. When we catch up with you, we’re not going to accept reason." If you dare break any of the "10 Commandments", such as handing over a camera to a delegate to film closed sessions, or pulling a delegate aside for a quick interview, drastic steps will be taken. The media relations team is not averse to journalists speaking to delegates, but in the words of the security managers: "You will end up destroying that delegate’s career."

Cringeworthy comments, indeed, which reveal the insular tendency within the party, likely to butt heads with the more open operators as the event draws close.

2 November 2012 Business Day

Page 3 Natasha Marrian Workers’ party ‘will contest 2014 election’

A SOCIALIST, worker-based party, the Democratic Socialist Movement (DSM), is preparing to register and contest the 2014 national election, its leader, Mametlwe Sebei, said in an interview on Wednesday.

The party — fashioned as a grassroots, Marxist organisation — is working closely with "strike committees" from platinum mines in the Rustenburg area which have led wildcat strikes this year, demanding improved wages and working conditions. It is capitalising on the social distance that has sprung up between workers and established trade unions, such as the National Union of Mineworkers (NUM), which has strong ties to the ruling African National Congress (ANC).

The new party is fashioning itself as the voice of mining workers, and that of the poor communities surrounding the mines. The party prefers a "bottom up" approach — where the people at grassroots level lead — to political representation, in stark contrast to the Congress of the People — also punted as an alternative to the ANC — which self-destructed in fights over who should lead the party.

Mr Sebei said the DSM "took a decision at the beginning of the year that the working class of Rustenburg are at the forefront of the revolt of the working class".

"They are the ones that are going to break the entire alliance that until now has been used to hold in check the working class," he said in an interview after a meeting of the national strike committee in Rustenburg this week.

He traced the party’s roots to a small group within the ANC under apartheid who believed that the party could meet their aspirations for a socialist South Africa. In 1996, however, with the adoption of the Growth, Employment and Redistribution plan, it became clear that the ANC would not pursue this path.

The DSM has in the past worked through trade unions because unions were at the forefront of worker struggles, were democratic and well placed to fight for socialism.

However, it soon dawned on the DSM that the NUM, which is affiliated to the Congress of South African Trade Unions (Cosatu), was a "lost case" and that its shop stewards’ relationship with mine bosses was "toxic" to the interest of the workers, Mr Sebei said.

The NUM was "beyond redemption," he said. "If mineworkers were rejecting the NUM, Cosatu had to follow the workers."

"There is no Cosatu without mineworkers ; without Cosatu there is no alliance ; without the alliance, capitalists have run out of the only effective political instrument by means of which they can hold down the working class in this country," Mr Sebei said.

The DSM is trying to build a labour party and has encouraged Cosatu to pull out of the alliance with the ANC. He describes the alliance as a "contradiction".

"It is a collaboration between the working class, on the one hand, and the party that is committed to the preservation of capitalism, and in that sense is a political instrument of the rule of the capitalists and imperialists," he said.

The DSM is campaigning for a mass worker party, which would include the youth and poor communities and would demand that the commanding heights of the economy be in public hands.

While Cosatu has largely dismissed the DSM as "counter-revolutionaries" and "flies", the workers themselves have welcomed its support.

A strike committee member from Anglo American Platinum, Joseph Khoza, said the NUM and Cosatu had betrayed workers.

The workers handed over a memorandum of their demands to the union in July, but the NUM disagreed with them, which is why workers were now representing themselves and had to resort to an unprotected strike, he said.

Mr Khoza said the DSM was giving workers a voice, where the NUM had denied them one.

2 November 2012 Business Day Page 1 Sam Mkokeli

DA’s unity dream suffers severe setback

A DEMOCRATIC Alliance (DA) initiative seeking to unite opposition parties under one umbrella hit a snag when potential allies rejected the party’s key proposal.

Opposition parties met in Parliament on Monday as their leaders began exploring how they could take advantage of what they believe to be a vulnerable African National Congress in the 2014 national elections.

The DA, United Democratic Movement (UDM) and the Congress of the People have agreed that there is a need for a stronger and united opposition. But there are already signs that the leaders of the parties will struggle to agree on the shape of a new initiative.

UDM president Bantu Holomisa said on Thursday that his party — and others at Monday’s meeting — found a suggestion presented by DA federal chairman Wilmot James that their members take up dual membership in the DA "problematic".

"The dual membership model led to the absorption of the Independent Democrats (ID) into the DA. It is therefore wrong to suggest that the model works or has worked, since it has only benefited the DA at the expense of the ID," he said.

Mr Holomisa said the DA had also suggested that initiatives of all the parties be migrated into a "rebranded" party, that would use the DA’s administrative platforms.

"We reject this proposal and its implication that the DA is the only opposition party that has an effective administrative and election machinery," he said.

The UDM suggested that a multiparty forum organised a workshop for opposition leaders, including those not represented in Parliament, to discuss options to realign opposition parties.

"The workshop should include a team of experts, who will make an input on the best way forward," Mr Holomisa said.

If the parties agreed on some aspects, an independent facilitator should be appointed to develop a programme for consulting society about the possibility of establishing an alternative alliance.

"By so doing, we would avoid falling prey to the narrow agendas of political interest groups."

The DA did not respond to requests for comment on Thursday.

2 November 2012 Business Day Page 1 Ntsakisi Masqanganyi Mine layoffs set to add to 4.7-million out of work

THE number of unemployed people in South Africa reached 4.7-million in the third quarter — the most since 2008 — with indications that this could deteriorate given the flagging economy and the mass dismissals of mine workers who participated in illegal strikes.

Statistics South Africa figures released on Thursday showed that unemployment — defined as people actively seeking work — increased to 25.5% in the third quarter from 24.9% in the previous quarter .

The agency said this could be the result of an increase in the number of economically active people and a decline in the number of discouraged work seekers.

"Given the circumstances of the economy … the unemployment rate is stubbornly sitting at about 25%," said Stats SA deputy director-general for social statistics Kefiloe Masiteng.

"It looks like the circumstances and the environment are improving, but not to the extent that the economy is creating jobs in a very significant way yet," she said.

Of the 4.7-million people who looked for work in the third quarter, 3.1-million had been seeking employment for a year or longer — an indication of the extent of the scarcity of jobs.

The data showed that 61% of work seekers did not have matric and 44.5% of them had never worked before . Private households laid off 29,000 employees in the third quarter, and mining jobs declined by 8,000, Stats SA said.

The expanded definition of unemployment, which includes people who have stopped looking for work, increased to 36.3% from 36.2% previously.

Ms Masiteng warned against interpreting the decline in mining sector jobs as a result of the recent wave of illegal strikes.

"At the moment we do not have facts that we can use to attribute the numbers that we see to the strikes in the mining sector."

Absa Capital economist Ilke van Zyl said she expected unemployment to increase in the fourth quarter as the mining sector layoffs "come through in earnest".

"We then expect some employment growth in 2013, which should bring the unemployment rate down slightly," she said.

The 198,000 jobs added in the quarter were mainly driven by the informal and formal sectors. The finance and other business services sector added 74,000 jobs.

Manufacturing and transport sectors also added jobs in the third quarter, despite strike action in August and September.

Business Unity South Africa special policy adviser Raymond Parsons said on Thursday that, while worrying, the increase in unemployment was not unexpected given the weakening domestic and international economic conditions.

"It is a reminder that the single biggest challenge facing South Africa is still to create more jobs, especially for the youth," he said. Unemployment among people aged 15-34 years is estimated at 36.1%.

Pressure has been mounting on the government and business to address youth unemployment, but the wage subsidy proposed by the Treasury to encourage the employment of young people has been opposed by the Congress of South African Trade Unions.

Prof Parsons said the private sector would escalate its job creation efforts once economic conditions improve .

"As the economic climate improves and there is greater certainty in the policy environment, so the private sector will be able to respond more fully in terms of investment and job creation," he said.

December is traditionally a good month for manufacturers and retailers, but many of the jobs they add may be temporary.

2 November 2012 Business Report Page 16

Olivia Sterns and Andres R Martinez

Gordhan defends ANC over mine tax

THE ANC had been responsible in its relationship with investors and did not have immediate plans to boost taxes in mining, Finance Minister Pravin Gordhan said yesterday.

“Taxing a particular industry is not within our radar at the moment,” Gordhan said. “The assurance we want to give investors, mining houses, others, is that the ANC, in 18 years, has demonstrated immense responsibility in the way it has managed its relationship with business and investors.”

Gordhan is trying to shore up confidence as the ANC’s push for “radical” measures to combat a 25 percent unemployment rate unsettles investors, and after Moody’s Investors Service and Standard & Poor’s downgraded South Africa for the first time since the end of apartheid.

The ANC is set to rule on proposals to nationalise mining assets and raise taxes at its national leadership conference in December, in Mangaung.

Taxes are “part of our discussion in broad policy terms”, Gordhan said. “When and how and if we exercise it, it’s a matter that we will have to decide within the context of what is happening at that particular point in time.”

The mining industry is facing the worst labour unrest since 1994. Strikes cut output by R10.1 billion this year, the Treasury said.

Violence “is not what we want to be known for around the world”, Gordhan said. “The strikes have cut exports and reduced government revenue.”

The ANC Youth League and its former leader, Julius Malema, led a campaign for the government to nationalise mines, forcing the ANC to agree to investigate its viability.

“We hope that finally at the ANC conference in December we will resolve that,” Gordhan said. “Many of us have expressed our view that that is no panacea for the problems we have.” – Bloomberg

Marikana inquiry hangs in the balance 1 November 2012 The New Age Warren Mabona ANC race hits snags With just over three weeks left to the closure of nominations, the race for the top positions at the ANC’s elective conference in Mangaung is getting tougher with claims of intimidation and poor attendance at branch level meetings. Late arrivals of members at crucial branch meetings and torrential rain were some of

the other problems that have marred the nomination process in several provinces, it emerged on Wednesday. But the provincial leaders of six provinces said branches were pulling out all the stops to carry out and conclude the nomination process. The Gauteng ANC provincial spokesperson, Dumisa Ntuli, told The New Age that the provincial executive committee (PEC) had received complaints of intimidation of branch members. He said nominations were, however, taking place and the PEC would meet the submission deadline. “Some members are being intimidated by others for their nomination preferences, but we are dealing with the matter,” Ntuli said. “We don’t want to talk too much about these matters because some branch leaders invite journalists to their nominations gatherings, compromising the process.” The Gauteng PEC nominated Deputy President Kgalema Motlanthe to challenge President Jacob Zuma for the ANC presidency, while Mpumalanga gave Zuma the nod for a second term. Mpumalanga provincial secretary Lucky Ndinisa said 70% of branches had held general meetings, adding that the branches were excited about the PEC’s choice of leadership. Ndinisa told The New Age: “There were claims that some comrades did not appear on the list of attendance registers. The late arrivals of deployees was also a problem. But we will do our best to deal with these challenges.” Ndinisa added that the province would have 406 branch delegates at the Mangaung conference. While the Kwazulu-Natal PEC is known to be behind Zuma, provincial secretary Sihle Zikalala remained mum when asked to reveal their presidential choice. “The nominations are going well but we will only speak after they are finalised. We don’t even give out information about the numbers. This will be done by the ANC head office,” Zikalala said. Mlibo Qoboshiyane, Eastern Cape’s ANC spokesperson, said the Chris Hani region was about to wrap up its nomina 1 November 2012 Business Report Page 1 Donwald Pressly

Electricity hikes will damage industry

Johannesburg - Massive electricity tariff hikes by Eskom with heavy top-ups by municipalities will force industries – particularly light industries – to shut up shop, with a potential contraction of gross domestic product (GDP) and thousands of job losses being among the consequences of “a perfect storm”.

This was the warning yesterday from the Department of Trade and Industry (dti).

While acting dti deputy director-general Garth Strachan stopped short of calling on MPs to stop Eskom’s proposed 16 percent hike each year over the next five years in its tracks, he painted a gloomy picture for the economy if these increases – allied with up to 700 percent mark-ups by some metropolitan municipalities – were allowed to proceed.

The dti was also concerned by the “sharply escalating and bunched-up” electricity prices on the viability of the manufacturing sector. He warned the National Assembly trade and industry portfolio committee that the increases might have already reached a pivotal “tipping price” for companies.

The consequences had already been felt sharply in the Eastern Cape where manufacturing jobs had already been lost where the Nelson Mandela Bay metropolitan municipality was further charging a 548 percent mark-up on the Eskom price in 2011/12.

Already “upwards of” 300 companies – mainly in light industry – had closed.

Next week Nelson Mandela Bay foundries would be presenting their concerns to the committee. These include Autocast, an iron cast foundry, and Borbet, which manufactures parts and accessories for motor vehicles.

Autocast consumes 45 600 000 kilowatt hours a year – the largest power user in the province – and it has publicly acknowledged it has lost its competitive advantage to its German competitors because of recent energy cost increases. It produces exhaust manifolds, catalytic converter cones, axle components, bearing caps and crankshafts.

Strachan, a former Western Cape ANC economic affairs minister, said there was “a grave danger” of escalating administered and power prices “especially with municipal premiums added”, creating “a perfect storm” in the manufacturing sector.

His warnings are in stark contrast to the energy and public enterprises ministries, which argued that the increases were necessary.

The Manufacturing Circle put the consequences of high administered pricing bluntly.

“Electricity costs have rocketed by over 170 percent in South Africa over the past five years, while administered prices in [Brazil, Russia, India and China] have decreased by over 36 percent in the last decade,” said executive director Coenraad Bezuidenhout.

At the same time, the South African domestic market was under-protected against unfairly incentivised imports.

South Africa had seen a 171.7 percent growth in administrative prices – defined as a goods or service price as dictated by a governmental agency rather than market forces – between 2000 and 2010. In India, Russia, China and Brazil, these had contracted by 36.5 percent, 15.6 percent, 2 percent and 8.5 percent, respectively.

Brazil had announced a power cost cut next year.

Bezuidenhout warned that there would be a further manufacturing decline in South Africa over the next two years “unless key domestic policy issues and the unfair trade… are addressed immediately”.

One immediate step would be to implement power discounts for manufacturers.

Unless steps were taken, “more companies will close down, more jobs will be lost, the manufacturing contribution to GDP will contract further and the balance of payments situation will weaken”.

Citing academic studies, Strachan said that if there was a 2.8 percent cut in power demand for basic and fabricated metals, this would equal a 0.7 percent loss to GDP and the loss of 86 304 jobs. “Some municipalities… are using electricity tariffs to generate revenue and for cost recovery [for] inefficiencies. This may lead to closing down companies… it might be a case of killing the goose that lays the golden egg.”

ANC MP Bheki Radebe suggested that it was not Eskom which was to blame as the basic electricity price was competitive. The problem lay with local government mark-ups.

In contrast, DA MP Geordin Hill-Lewis suggested the government should instruct Eskom not to raise prices beyond inflation, noting that Eskom itself reported tariff increases of above 25 percent since 2008.

ANC committee chairwoman Joan Fubbs suggested that manufacturing sector discounts for electricity should be studied further.

1 November 2012 Business Day Page 4 Wyndham Hartley Secrecy bill ‘should prevail on classified information’

STATE Security Minister Siyabonga Cwele on Wednesday rejected an amendment proposed for the "secrecy bill", saying that in all matters concerning classified information, the Protection of State Information Bill should prevail and not any other statute.

At issue is whether the Protection of State Information Bill is the final authority or whether the Promotion of Access to Information Act (PAIA) would prevail. A committee proposal recently that the clause placing the protection bill above the PAIA should be deleted was seen as a major breakthrough.

Mr Cwele told the special ad hoc committee of the National Council of Provinces (NCOP) dealing with the bill the Department of State Security agreed with most of the amendments suggested by the committee, but did not agree on deleting the clause which specifies which law prevails.

Mr Cwele said he was concerned about the " endless battles over which one prevails" if the bill did not specify which law would. "The Protection of State Information should prevail on all matters related to classified information."

Congress of the People MP Dennis Bloem objected to the point raised by the minister, and said he and his party rejected the position of the department.

His view was shared by Democratic Alliance MP Alf Lees, who said that he had listened to the minister’s views and did not agree on the issue of the Protection Bill prevailing over all other information legislation in matters of classified information. He said he would need more time to consult and get advice on the matter.

Committee chairman Raseriti Tau took issue with Mr Bloem’s rejection of the minister’s position saying, "that is hectic, I thought we were engaging".

It then fell to his African National Congress colleague Sam Mazosiwe to calm the situation. "We are very close to each other and I am sure that we will be able to finalise the bill in the time we have left before Parliament rises," he said.

This leaves the committee with a race against time as Parliament rises at the end of this month and the NCOP will be visiting the Northern Cape for two weeks for the "Taking Parliament to the people" programme.

Mr Tau said it was hoped that the bill could be finalised by consensus but that if it had to be put to the vote, then it would because that was the democratic way to resolve the issue.

31 October 2012 Business Day Page 3 Franny Rabkin Marikana commission told of ‘brutal assaults and torture’

THE Marikana Commission on Wednesday morning heard of "brutal assaults and torture" of miners released from custody on Tuesday.

The miners’ counsel, advocate Dali Mpofu, said: "One of the persons I spoke to informed me and showed me (how) he was beaten up until he soiled himself.

"Another one has almost lost the hearing in his right ear. The third one has visible scarring on his face, which he did not have when I last saw him on Tuesday," Mr Mpofu said.

He said he would be taking this up with the Independent Police Investigative Directorate, but it was relevant to the commission in the sense of the "impact it is likely to have on the witnesses and other potential witnesses coming here".

The chairman of the inquiry, Judge Ian Farlam, said allegations of this kind were "taken very seriously".

"I’m sure the representatives of the South African Police Service are aware that if these allegations are well founded, they cannot assist their case as presented before this inquiry. Inferences might well be drawn, or have to be drawn, if the allegations

are well founded and if they are indicative of an attempt to intimidate witnesses and prevent them from giving evidence before this inquiry," Judge Farlam said.

Counsel for the police, Ishmael Semenya SC, said it was "most unfortunate" that Mr Mpofu had "just thrown out there" the "very serious, very grave" allegations, without notifying his team first.

"It is certainly prejudicial just to raise them as they are raised for the first time.... As the chair correctly points out: if well founded, they have profound implications," he said.

North West police spokesman warrant officer Sam Tselanwane said if the matter was with the Independent Police Investigative Directorate it was outside his jurisdiction and he could not comment.

The rest of the day was spent on the testimony of Captain Apollo Mohlaki who had “processed” the crime scene, called scene 2, at the small koppie, where 14 people died.

1 November 2012 Business Day Page 3 Stephen Grootes

Mpofu the right man to play both law and politics

AS THE Farlam inquiry into the Marikana shootings continues, the advocate representing many of the miners, Dali Mpofu, has become one of the central figures in the proceedings. He has already made a public splash with his claim that it was Lonmin nonexecutive director Cyril Ramaphosa, a former National Union of Mineworkers leader, whose actions may have led to the August 16 shootings.

On Wednesday Mr Mpofu told the inquiry that he and the workers he represents would be forced to withdraw if they were not given funding by the government to participate.

Mr Mpofu is a lawyer whose legal experience has tended to focus on labour issues, and at one point he acted as a judge in the Labour Court. However, he has also played a major role in many other areas of society.

Many South Africans will remember him as making headlines in the early 1990s when he was named in letters by Winnie Madikizela-Mandela, as her marriage to former president Nelson Mandela was ending. Mr Mpofu represented Julius Malema during the disciplinary hearings that led to his expulsion from the ANC, during which Ms Madikizela-Mandela testified on Mr Malema’s behalf.

Mr Mpofu is married to Mpumi Mpofu, a former director-general in the Department of Transport and later secretary of defence.

However, it appears that it was during his tumultuous time as SABC group CEO that Mr Mpofu may have honed his political skills.

He led the SABC out of the South African National Editors Forum (Sanef) in 2007 after Sanef backed the Sunday Times’ decision to release medical records indicating that then health minister Manto Tshabalala-Msimang may have instructed hospital staff to buy her alcohol.

He also held off long-running attempts by the SABC board to sack him. But in the end, it was his skill in labour law that enabled him to exit the SABC with a R14m payout.

Mr Mpofu has played various other roles, occupying several directorships in private companies and chairing Boxing South Africa for a time.

But it was during the Malema disciplinary hearings that his love of politics and the law intersected. In a country where the courts and disciplinary proceedings have often become politics by other means, he is tailor-made for a client who needs a lawyer who understands both.

This made him invaluable for Mr Malema. The former youth league leader needed a lawyer who could use whichever pulpit he had, to make both the legal and the political case for him.

This was evidenced by claims that the ANC’s national disciplinary committee was biased against him. While the claim did not have a strong legal basis, the political message it sent was well received by those sympathetic to Mr Malema. The repeated requests for delays and for more time to prepare could also be interpreted, by Mr Malema’s critics, as evidence of political scheming.

With his claims about Mr Ramaphosa, Mr Mpofu could be accused of placing ANC internal politics above the interests of his clients. Yesterday he was also able to use the spotlight afforded him by the inquiry to accuse the police of detaining and assaulting some of his clients. This had the effect of putting the police under pressure and forcing the service to explain itself.

No doubt the people Mr Mpofu represents would suggest that their case is about both the law and politics, and that this inquiry needs to focus on both issues.

If the aim of the workers is to force major changes to the politics of our society, someone with the political, legal and media experience of Mr Mpofu could be useful to them. But it could also lay him open to claims that he is acting for reasons other than simply finding out the truth of what happened at Marikana on August 16.

1 November 2012 Business Day Page 3 Bekezela Phakathi Bid to block Zille’s Khayelitsha inquiry

TENSION between Police Minister Nathi Mthethwa and Western Cape Premier Helen Zille could escalate after the minister’s announcement on Wednesday that he would approach the courts to halt the commission of inquiry into policing failures in Khayelitsha.

The commission, which is headed by Justice Catherine O’Regan and Adv Vusumzi Pikoli, began work this week despite Mr Mthethwa’s request to Ms Zille earlier this year to have it suspend its work. Ms Zille set up the commission after intense lobbying by civil society formations, including the Social Justice Coalition. The groups believe that the spate of vigilante killings that rocked Khayelitsha earlier this year were as a result of failed policing.

Mr Mthethwa said on Wednesday he had decided to challenge, legally, the establishment of the commission and have it set aside, while "appropriate platforms are followed to address the challenges of crime in Khayelitsha". He said his legal team was finalising the papers to be filed before the end of this week.

"I have indicated during my engagements with Premier Zille, substantiated my reasons and proposed an approach around the challenges of crime in Khayelitsha.

"I have further emphatically stated that we do not question her powers to set up such a commission, however, remain convinced that there were various avenues where the issue could have been raised, but never was," Mr Mthethwa said.

"The rationale behind setting up of such a commission which at a strategic level only focuses on the SAPS and not the Western Cape metro police, is suspicious if not questionable. Despite the engagements we held with the premier over the past weeks, it is evident that she is determined to continue with the commission by hook or crook, which leaves us with no option but to challenge the matter, through the legal framework," he said.

Social Justice Coalition policy coordinator Gavin Silber said on Wednesday the group was disappointed that Mr Mthethwa had decided to approach the courts. The group would file opposing papers. "We believe that a commission of inquiry is important, because it is independent."

Mr Silber said the inquiry would go "well beyond the police", contrary to Mr Mthethwa’s assertions that the inquiry only focused on the SAPS.

Ms Zille’s office would not comment on possible court proceedings until it had received papers from Mr Mthethwa’s lawyers.

"Suffice it to say that the minister is wrong in his protestations that he initiated protracted interaction with the premier on this matter. Indeed, his office failed to respond to our repeated correspondence for eight months and only initiated a meeting after the commission had been established," Ms Zille’s spokesman Zak Mbhele said.

31 October 2012 Business Day Page 1 Karl Gernetzky

South Africa bottom of class in maths and science

AFTER years of poor performances in education rankings, South Africa finally hit rock bottom in an international measure of the quality of maths and science education.

Concern is mounting whether the education system is producing a sufficient number of graduates in the hard sciences to support South Africa’s growth and development.

The World Economic Forum’s annual report on financial development, released on Wednesday, placed South Africa last in a ranking of 62 countries in the quality of maths and science education.

The forum’s report pointed to a high correlation between human capital and the degree of financial development in countries.

The 2011 census results, released on Tuesday, showed that a decade ago 2.7% of men and 2% of women who had tertiary qualifications in South Africa had qualifications in the fields of natural, physical and mathematical sciences. By 2011, this had declined to 2% of men and 1.8% of women.

This year, 527,335 pupils are writing matric exams. Compared with last year, science candidates declined by 2,000, but 900 more pupils are writing maths.

Last month, Basic Education Minister Angie Motshekga said a summit would be convened to discuss how to increase the number of pupils studying maths and science. On Wednesday, the department said it would respond to the World Economic Forum report on Thursday.

But education expert Graeme Bloch said more needed to be done to understand why mathematics and science education was lagging. The department should devise plans to convince more pupils to pursue the subjects, instead of just discussing policy, Dr Bloch said.

Marissa Rollnick, director of Wits University’s Marang Centre for Science and Mathematics Education, said South Africa was “facing a crisis”. At Wits, a maximum of 10 or 11 students specialised in science education annually, and for post-graduate certificates “four students is a good year”.

Improving the quantity and quality of teachers was the “key strategic leverage point” to better results, Prof Rollnick said. For existing teachers, content knowledge was an issue, with most pupils being taught “by rote”.

1 November 2012 The Times Page 4 Denise Williams

'Secrecy Bill must trump all'

Minister of State Security Siyabonga Cwele wants the controversial Protection of State Information Bill to trump all other legislation, including the Promotion of Access to Information Bill, when dealing with classified information.

This would mean that anyone who discloses classified information - even that which exposes corruption and wrongdoing - could not claim protection under existing laws, such as the Promotion of Access to Information Bill, when it is enacted.

Briefing the National Council of Provinces ad-hoc committee on the Protection of State Information Bill, Cwele said the committee's decision to scrap clause 1(4), which gave the bill supreme authority on classification, should be re-considered.

"We didn't say this bill should supersede the Promotion of Access to Information Bill, we said in terms of classified information, to avoid conflict in terms of the interpretation of the bill, this bill must supersede [any legislation] in terms of only classified information," said Cwele.

He said that if the secrecy bill were not given "sovereignty" in court it would be rendered ineffective and "unmanageable".

He said municipal officials should have the power to classify information, as recommended by earlier drafts of the Secrecy Bill.

This provision was removed following fears that municipal officials could use this power to hide corruption and other wrongdoing.

Cwele said the police and the defence force had raised concerns that their "ordinary" members would not have the authority to classify information if the bill were passed in its current form.

"All members of the [police] must be in a position to protect sensitive information pertaining to investigative methods and sources of information.

"Defence has reservations [because] ordinary members in hostile territories in conflict areas must be able to classify their reports," said Cwele.

But MPs were not convinced by Cwele's arguments.

COPE MP Dennis Bloem said: "We [COPE] are sticking to what we have presented.

"We disagree with what the department is presenting today - everything!"

But ad-hoc committee chairman Raseriti Tau, of the ANC, advised Bloem to keep an open mind.

"You can't just close your eyes and shut off," said Tau.

DA MP Alf Lees also slammed Cwele's proposals.

"This trumping of the Promotion of Access to Information Bill just cannot be accepted.

"Also the interference with the exclusion of municipalities. We really can't afford to have municipalities included in classification," he said.

Right2Know Campaign spokesman Murray Hunter said: "We urge members of parliament not to rush their important task and to attend to the remaining draconian aspects of the Protection of State Information Bill.

"We will not accept a society of secrets."

1 November 2012 The Times Page 1 TJ Strydom

Lonmin raises the spectre of layoffs

Lonmin has given its trade unions notice of a corporate restructuring, putting thousands of skilled jobs at its Marikana platinum mine on the line.

The restructuring of its Marikana operations will affect artisans, and mid-level and senior managers. It is being interpreted as a desperate attempt to make the operation viable.

The move could affect about 7000 employees, Gideon du Plessis, general secretary of Solidarity trade union, estimates.

A representative of the National Union of Mineworkers thinks the number could be as high as 10000.

Lonmin spokesman and executive vice-president of human capital and external affairs Barnard Mokwena did not respond to calls for comment yesterday. But Lonmin chairman Roger Phillimore said earlier this week: "The business is now back in production and must look to the future."

The restructuring, and the possibility of retrenchments, are part of this future.

In a document entitled "Notice of contemplated restructuring" addressed to the National Union of Mineworkers general secretary Frans Baleni, the company said it was reviewing its operating model and expected all employees in Patterson job grades F, E, D and C would be affected.

Most of the employees in these job grades are skilled workers and managers.

Lonmin was paralysed for much of August and September by an illegal and violent strike started by rock-drill operators. The strike cost the lives of 46 people and lost the company thousands of ounces in platinum production.

In September, the strike spread to the rest of the platinum sector and to gold, diamond, iron ore and chromium mines.

Drill operators do not fall into the job grades Lonmin cited but their jobs are not necessarily safe.

Du Plessis believes there will be more retrenchments.

He said Lonmin had done the same thing a few years ago, retrenching a number of more senior employees as a strategic move before retrenching less-skilled and lower-paid employees.

In 2009, more than 1500 people were retrenched.

The impending job cuts will raise tensions at the Marikana mine, where 34 striking miners were shot dead in August.

And retrenchments are likely to trigger another wave of strikes.

Du Plessis said: "It is unfair for employees/management that did not participate or instigate the unprotected strike and unlawful protest action to become the victims of the five weeks of workplace anarchy."

He said Solidarity would do "everything in its power" to prevent retrenchments.

Trade statistics released by the SA Revenue Service showed that mineral exports declined sharply in September, stretching the country's trade deficit to R13.8-billion.

Weaker economic growth and lower tax revenues are expected by most economists and the Treasury.

Lonmin said on Monday that the return to full production - which will take months - was going better than expected and production of platinum was due to resume yesterday.

The company lost 110000oz of the precious metal - more than 10% of the year's production - during the strike and has been forced to shelve some of its long-term investment plans.

It asked shareholders two days ago for nearly R7-billion in a rights issue to enable it to cut its debt.

30 October 2012 Fin 24 AFP Whites earn 6 times more than blacks

Cape Town - Incomes of black South African households have surged 169% in a decade, but whites still take home six times more money 18 years into all-race democracy, a national census showed Tuesday.

Census 2011 put the country's population at 51.8 million people, an increase of 6 950 782 million since the 2001 count. Nearly eight in 10 people are black and less than one in 10 white.

"(In) 2011, we have 51.8 million people in South Africa," said Pali Lehohla, Statistician-General of Statistics South Africa.

Overall, household incomes more than doubled in the last ten years.

The average now stands at R103 204, up from R48 385 in 2001.

The statistics point to a growing black middle class with the majority race group's yearly household incomes showing the fastest growth of 169.1% to R60 613 from R22 522 recorded in Census 2001.

But the country's biggest wealth and employment figures are still sharply skewed in favour of whites.

"Black African-headed households were found to have an average annual income of R60 613 in 2011," states the report, with incomes followed by mixed race and Indian and Asian households.

"White-headed households had the highest average household income at R365 134 per annum."

Nearly two million people still live in shacks, which has risen by more than 100 000 since 2001, and more than nine million people live in a house.

The number of outright homeowners has grown from 4 625 300 to 5 970 852 homeowners of whom 4 919 563 are black owners which is an increase by more than one million since ten years ago.

Expanded unemployment among blacks was nearly 50%, while only around 10% among whites.

30 October 2012 Fin 24 Sapa Pay disparities persist –Zuma Cape Town - Census 2011 results show the black majority remains worst affected by poverty, unemployment, and inequality, President Jacob Zuma said on Tuesday. Zuma accepted the results during an official handover by Statistician General Pali Lehohla in Pretoria. The census reveals that blacks earn significantly less than their coloured, Indian, and white counterparts. The average household income in South Africa has more than doubled the past decade.

In 2001, South African households earned on average R48 000, which had increased to R103 204 by October last year. "Black African-headed households were found to have an average annual income of R60 613 in 2011," the census statistical release revealed. White households earned on average about six times more than blacks. "White-headed households had the highest average household income at R365 134 per annum." The average coloured household made about R112 000 a year, and Indian households just over R250 000. As expected, households in Gauteng earned more than those in the rest of the country, raking in about R156 243 a year on average, followed by the Western Cape with R143 460. "Census 2011 found that Limpopo remained the province with the lowest average annual household income at R56 844, followed by the Eastern Cape, where the average was R64 539." Commenting on the results Zuma said: "These figures tell us at the bottom of the rung is the black majority who continue to be confronted by deep poverty, unemployment, and inequality, despite the progress that we have made since 1994." Zuma noted that access to basic services such as piped water, electricity and refuse removal had more than doubled since 1994. "However, much remains to be done to further improve the livelihoods of our people, especially in terms of [the] significant disparities that still exist between the rich and poor," he said. Zuma said the National Development Plan, the blueprint for development in the country, would help the government achieve better outcomes. "Government departments must now use this information wisely in planning for the extension of services mentioned in the National Development Plan," Zuma said. 30 October 2012 Fin 24 Sapa Manuel: Income gaps worrying Cape Town - The most startling figures in the Census 2011 results are on income distribution among race and gender groups, Planning Minister Trevor Manuel said on Tuesday. Although he found the gaps in earnings high, he was not surprised. "It confirms our worst fears and I think it represents us with an enormous challenge...," Manuel told reporters in Cape Town.

The census showed the gap in income between white- and black-headed households was still significantly high. Black-headed households had an average annual income of R60 613 in 2011, the census statistical release revealed. White households earned on average about six times more a year, R365 134 per annum. Households headed by women were worse off in terms of pay. Female-headed households earned on average R67 330 in 2011, compared to R128 329 for their male counterparts. Manuel said it was important for organs of state, business and civil society to use this information in making decisions. The most surprising figure for Statistics Council chairman Howard Gabriels was the rate of growth in Gauteng and the Western Cape, which he said was faster than he expected. "If you look at all the models developed over the last two years, provincial distribution of population estimates were lower for both provinces," Gabriels said. The third census undertaken in post-1994 South Africa showed some major shifts in population between provinces. The greatest appeared to have been in Gauteng. There were 7.6 million people counted in that region in the 1996 census. This had grown to 9.2 million by 2001 (a 20.4% increase), and to 12.3 million last year, an increase of 33.7% from 1996 to 2011. The population of the Western Cape grew by 28.7%, from almost four million to 5.9 million, in the same period. 30 October 2012 The New Age Sapa DA seeks mining unrest committee

The Democratic Alliance has called for the establishment of an ad hoc parliamentary committee on problems in South Africa's mining industry. Speaking in the National Assembly on Tuesday, DA parliamentary leader Lindiwe Mazibuko said the committee should comprise members of the labour, police, trade and industry, minerals, health, and rural development portfolios. "Unless we do so, we cannot raise work participation and reduce absenteeism. Only then can we make mining a more attractive industry in which people want to work, and investors want to invest," she said. Closely aligned to this, President Jacob Zuma should intervene to end the de facto

closed shop policy, so that workers could be represented by unions not affiliated to the Congress of SA Trade Unions (Cosatu). The Marikana shooting was, in part, sparked by smaller unions being locked out of wage negotiations, she said. The DA acknowledged there were no easy policy solutions. "We will support this government if they sincerely seek to address the deep human underlying issues, and, at the same time, adopt measures to increase productivity. Sincerity, however, is subject to proof." In framing a new vision for the mining industry, Zuma and his government should recognise the need for a structural shift in the industry. The most urgent intervention should be to review all legislation underpinning the system of oscillating migration in the mining sector. "Simply put, we need to introduce a more humane system of labour to help rebuild families and communities. We need to ensure that cash gets back to the many families in need in rural South Africa. And we must mitigate health risks, especially HIV infections. For too long, public policy has been crafted in a disjointed way," Mazibuko said. -Sapa

30 October 2012 The New Age Sapa SA must let anger go: Zuma Deep-seated pain from the past cannot translate to violence, President Jacob Zuma said on Tuesday. "Our society is very angry. When people quarrel, they kill one another. Taking the life of a human being has become very simple," he said at an interfaith dialogue in Cape Town. He said people also demonstrated their anger by burning community halls, libraries and other public property. "That is an anger which is abnormal. It needs collective leadership." Zuma acknowledged that a "horrific past" had caused much unresolved pain. "There was never enough time to cry or mourn in 1994, as we had to start working immediately to build a new country. Also, the message, correctly then, was for people to move on." He called on citizens to complete the healing process by channelling their anger towards solutions. "The task to remove anger, violence, crime and immorality is in the hands of all of us."

The government's "potent" tool to resolving conflict remained constructive dialogue with various sectors of society. It also relied on the work of many religious leaders to instil morals and values. Zuma called on religious leaders to pray for government. "You are charged by God to do so," he said. The president was welcomed at the Good Hope Centre on Tuesday by hundreds of singing members from different faiths and backgrounds, including Christianity, Islam, Rasta and the Khoisan. Politics was not left out of the event, and political songs praising Zuma and the African National Congress echoed the centre. Many called for Zuma to serve a second term. -Sapa 31 October 2012 Cape Times Page 7 Sybrand Mostert Airlines cash in on London-CT flights

INTERNATIONAL airlines are flying in to fill the vacuum left by South African Airways (SAA) when the airline scrapped it’s popular direct route between Cape Town and London.

Yesterday Virgin Atlantic announced that it was laying on three flights a week between Cape Town and London until April, and will be bringing over 30 000 tourists to the city.

British Airways has also doubled its capacity to the Mother City, and is now operating two daily direct services between London Heathrow and Cape Town International – 14 flights a week.

This has increased the number of available seats on the route by nearly 2 400 a week on BA.

While this service increase by these two airlines is an annual occurrence for summer, what is new is that Lufthansa, the highly rated German airline, said it would now be flying directly to the city from Munich five times a week.

Munich is Lufthansa’s second largest hub in Germany with connections to Eastern Europe, Italy and the US.

Condor Airlines have also stepped in, offering two flights a week to Frankfurt, advertising the service at a fiercely competitive price.

SAA announced in August that it was pulling the plug on direct flights from Cape Town to London – and local tourism roleplayers expressed disappointment and concern about the move.

SAA said declining passenger numbers to the UK and increasing airport taxes in that country were among reasons for ending its 20-year Cape Town-London service.

Local tourism players said at the time that the move by SAA would increase travel costs, be inconvenient and would make the marketing of the city difficult.

Meanwhile, Cape Town was voted as the second most popular world city by Conde Nast Traveller readers this month, and named as the top world destination in 2011 by Trip Advisor.

“Other airlines have stopped their direct flights between London and Cape Town, but we plan our routes to meet the needs and convenience of our customers,” Simon Newton-Smith, country manager for Virgin, said yesterday.

He said over 420 000 tourists from the UK had visited SA in 2011, and there had been an increase of 5.5 percent in the first six months this year.

This signified the UK market was showing signs of recovery from the global recession.

Ian Petrie, BA’s regional commercial manager for Africa, says that over the past decade Cape Town has emerged as one of the world’s leading leisure destinations and regularly features among British Airways’ customers top 10 Christmas holiday choices.

“We’ve been actively growing our schedule to Cape Town since 2002, but believed it important to operate year-round and not just during the peak summer season.

“This builds confidence in the route, not only among inbound tourists and business travellers, but also local customers wanting to visit London or travel onwards to the rest of our network”

Mayco member for tourism, marketing and events Grant Pascoe said SAA had made its decision based on finance modelling that would make sense for them.

“But it’s great news that the other airlines will be servicing Cape Town direct.”

Pascoe said that it was heartening that the latest tourism figures indicated a solid growth for Cape Town, and that the city could see a substantial growth in numbers of visitors.

Pascoe said he and mayor Patricia de Lille had met the new SAA chief executive recently on the Cape Town/London route question, and had been heartened by the discussion.

“They are looking at a fresh approach and we want to build a new relationship with them,” Pascoe said.

31 October 2012 Business Day Page 13 Trevor Manuel

Proof of how much we have done — and must still do

THE results of Census 2011 were published on Tuesday. While the results are an enumeration of who we are, as a society, and where we live and work, the data set that undergirds these results are the cold hard facts of what we have achieved over the past 18 years and the evidence on which future policy-making should be based.

The achievements are significant and show the important gains we have made in rolling back some of the worst effects of our past. We can and should use the statistical data set to build on our gains in more inclusive ways. In this sense, the statistics can bring together policy makers and communities, as well as our international partners, in partnerships and relationships that are based on evidence — and not narrow, sectoral interests based on opinion.

The data set produced by Statistics South Africa is vast and comprehensive. The data was produced with highly advanced and reliable methodologies and presented in forms that are at the cutting edge of technology across electronic platforms and in print. Census 2011 is the third under democratic rule. It provides us with the evidence against which we can measure how far we have come as a country and what still needs to be done.

If we look at some of the key indices, notably education and access to utilities — especially water and electricity — we have made gains over the past decade or more.

In 1996, 57.6% of South Africans had access to electricity. By last year, this figure rose to 84.7%. In the same period, household access to piped water increased from 80% to 91%. In education, there has been a marked increase in the percentage of individuals aged five to 24 attending an educational institution between 1996 (70.1%) and last year (73.5%). The percentage of people aged 20 years or older who have no schooling decreased from 19.1% in 1996 to 8.7% last year. Most of the individuals without schooling were black Africans; the number decreased by more than half, from 24% to 10.5%. With respect to household income, there has been an increase from R48,385 in 2001 to R130,204 last year. This is an increase of 113%.

What the evidence also shows is that there remains a lot of work to be done.

For instance, household income remains unevenly based on population group and on location. The average income for the white population continues to be significantly higher than that of other groups. The average household income for whites is R365,134; for Indians/Asians it is R251,541; coloured income is R112,172 and black Africans’ income is R60,613.

Limpopo remains the province with the lowest average annual household income of R56,844, followed by the Eastern Cape at R64,539. Gauteng has the highest average household income (R156,844) followed by the Western Cape at R143,460. What we see, then, is continued disproportional gains from the growth we have achieved over the past decade. While the data records these overall gains, it also provides us with the evidentiary basis for policy-making.

Without reliable statistics, the development process is blind. The statistics published on Tuesday must help us identify our needs, set and shape our goals and monitor

our progress. Without these statistics policy makers cannot learn from their mistakes and the public cannot hold them accountable.

To move towards the vision for 2030, set out in the National Development Plan, several things must fall into place. We need government departments to start embedding the core objectives of the plan into their line functions and we need to start engaging with transformation and empowerment on the basis of the evidence before us — and not in narrow, exclusive terms. The objectives of development are to increase and expand the measurable wellbeing and the capabilities of more and more people across society. It is about inclusivity and not about personal enrichment or get-rich-quick schemes. It is important, therefore, to achieve this broad-based development and inclusivity and for policy-making to start with understanding the significance of the evidence.

Evidence-based policy-making can help planners make better informed decisions by putting the best available evidence at the centre of the policy process. We cannot make policies based on opinions that rely on the selective use of evidence or on the untested views of individuals or vested interests with deeply embedded ideological views, prejudices, preferences, and who rely on speculative conjecture and are comfortable with the status quo.

It is a fact that policy-making is an inherently political process, but we cannot let narrow sectarian politics interfere with the quality of policies. Policies have to be shaped by evidence that is reliable and durable and that meets the highest standards of quality. The census results, and larger data set, are not just for use by technocrats and decision-makers in the state. They should also facilitate discussion among communities that feed into policy-making. Public policy-making and implementation are generally considered to be the remit of the government or the administrative system. As a result, the public tends to be lulled into accepting its fate. In other words, policy is often seen as something delivered to the public rather than emanating from the public.

To be sure, policy-making and implementation are part of the core functions of the state and are exercised through combinations of power, authority and knowledge or evidence. There must, therefore, be a continuance between evidence, policy-making, implementation, monitoring and evaluation and accountability. The data set produced by Statistics SA must empower all South Africans to make better, more informed decisions about our future.

The data is available throughout the country across municipalities. It is also accessible online for tablet computers and on the "mobi" platform for cellphones. This will improve and enhance the capabilities of South Africans and help our communities set realistic, evidence-based benchmarks for implantation of policies and hold the government to account. Making the data available and accessible across communities will also help harmonise our monitoring by promoting agreement on the facts among different stakeholders. The national priorities of the state and those of society as a whole can, therefore, be brought into a more coherent framework and implementation becomes more measurable.

There’s a canard among global public policy makers that measuring development, progress and implementation in Africa is difficult, if not impossible, because of a lack of data. Democratic SA has shown, again, that we can break the mould. With Census 2011, we have produced a reliable, thorough and sophisticated data set. There can

be no excuses; not on the part of policy makers, nor among South Africans, now, about what we have achieved and what we have yet to achieve in the country.

The evidence shows that we have made progress in key social sectors; from education and access to utilities and in terms of household income and communications.

We completed the collection and statistical processing in 12 months and with detail that is laudable by any standards. By using the most sophisticated methods and technology, we have made the data more accessible and usable. We must now take it out to our communities so they can set the benchmarks for policy-making and implementation on the basis of the evidence before us.

31 October 2012 Business Day Page 5 Tamar Kahn Tlakula urges protection for whistle-blowers

INDEPENDENT Electoral Commission chairwoman Pansy Tlakula on Tuesday repeated her call for the government to amend the controversial Protection of State Information Bill to include a public-interest defence.

The "secrecy bill" includes provisions that penalise whistle-blowers and journalists who publish classified information. Freedom of expression advocates have criticised the omission from the bill of provisions that would allow journalists to use the public interest as a defence for publishing suppressed information that exposes government failures.

Speaking at the inaugural Carlos Cardoso lecture at the University of the Witwatersrand, held in honour of the slain Mozambican journalist, Ms Tlakula said: "We must keep on fighting for the inclusion of the public interest defence because without it, the right to information in this country might be compromised. We must keep on pushing until we have a bill that complies with the international and regional obligations that SA has voluntarily assumed."

Ms Tlakula, who is also special rapporteur on freedom of expression and access to information in Africa for the African Commission on Human and People’s Rights, said South Africa was not alone in making promises to uphold freedom of expression in international declarations that were not followed through in domestic legislation.

Many African governments retained laws from colonial times that criminalised defamation or penalised the publication of "false information", she said. "I call on all freedom of expression advocates to join us in ridding the continent of these unnecessary laws."

Only 10 out of 54 African governments had public access to information laws, she said. "Unfortunately, very few countries on the continent have embraced the culture of openness … (and) the compliance with these laws with international human rights standards remains a concern."

She also acknowledged the hundreds of journalists who had died in the line of duty in the past decade. Since 2000, 1,054 journalists had lost their lives worldwide, of which 106 were African.

Mr Cardoso, a Wits alumnus, was assassinated in November 2000 while investigating corruption at a large state-controlled bank.

30 October 2012 Business Day Page 3 Bekezela Phakathi

ANC chief whip Motshekga calls for second term for Zuma

AFRICAN National Congress (ANC) chief whip Mathole Motshekga on Tuesday showed his support for President Jacob Zuma’s bid for a second term in office, telling a gathering of religious groups at Cape Town's Good Hope Centre that Mr Zuma had to be re-elected to lead the party and the country "to continue his good work".

Mr Zuma was the keynote speaker at the interfaith conference on Tuesday.

The ANC will hold its elective conference in December and some in the party have been calling for a change in leadership. Some ANC structures want Deputy President Kgalema Motlanthe to take over the reins, but he has not yet indicated whether he will accept the nomination.

Mr Motshekga, who is seen to hold significant influence within the ANC, especially within the parliamentary caucus, said during the interfaith conference: "Everybody in here wants you (Mr Zuma) to be re-elected for a second term."

The conference, which organisers said was "nation building through social dialogue with the religious sector", degenerated somewhat into a political rally, with crowd members singing songs in support of Mr Zuma.

Delivering his speech, Mr Zuma said dialogue and striving for consensus had seen South Africa overcome some of its most difficult challenges. He said the government and South Africans working together, with the help of stakeholders such as the faith-based sector, would be able to tackle some of the problems facing the country.

"It is for this reason that we will continue to prioritise social dialogues, such as this one today, in our quest to make new and decisive advances towards our goal of building a truly united, non-racial, non-sexist, democratic and prosperous society," Mr Zuma said.

However, Democratic Alliance chief whip Watty Watson dismissed the interfaith summit, saying Mr Motshekga was abusing Parliament for his own political agenda. He said the entire event would cost Parliament R2.1m, with R715,930 being spent on transporting people to the event and R438,500 on catering.

"But no formal multiparty committee (was) convened to establish, co-ordinate and approve the conference and its funding by Parliament, and no members of

Parliament (were) formally invited. Not even the leader of the official opposition in Parliament, Lindiwe Mazibuko, (was) invited," he said.

"Mr Motshekga appears to have put together the entire event by himself for his own political gain," Mr Watson added.

31 October 2012 Business Day Page 3 Franny Rabkin Judge comments on ‘remarkable’ lack of Marikana police footage

IT was “remarkable” that the only police video footage of the events of August 16 in Marikana that Lt-Col Cornelius Botha was aware of, was his own 41-minute film, said Dumisa Ntsebeza SC, counsel for some of the families of those who died.

Lt-Col Botha’s film — shown in full to the commission on Monday — appeared to have missed everything important. Counsel for Lonmin Schalk Burger SC said on Tuesday: “There are two tragedies happening, you don’t record either of them and you take about 80% of your time to film what is ... irrelevant.”

The absence of police video footage of the bloody standoff between striking miners and the police, which saw 34 people die, might prove a big hurdle for the Farlam commission of inquiry. This is especially the case with the deaths at the “little koppie” where there were no media cameras and where it is alleged that police officers shot people in cold blood.

Mr Ntsebeza put it to Lt-Col Botha that the omission was remarkable, given the extent of planning going into the police’s operation of dispersing and disarming the crowd. The police normally attached importance to filming such operations.

“I can only say yes,” Lt-Col Botha admitted in response.

He could also not remember many of the details of a nine-day police conference in Potchefstroom to prepare for the inquiry — who chaired the meeting, whether his footage was shown there and if other camera operators were present.

Lt-Col Botha was challenged on his claim not to remember most of what was discussed at the police conference. “Surely colonel, you must remember something of the nine days that caught your attention?” Mr Ntsebeza asked.

Lt-Col Botha said there were “a lot of discussions” — about what had happened and what the police did, but he did not remember “specifics”. National Union of Mineworker’s counsel Karel Tip SC said: “If you had displayed your 41-minute video to top officers of the SAPS, that would have been something you most certainly would have recalled in detail … I’m challenging the credibility of what you said about that .”

But Lt Col Botha stuck to his version. He said what he took away from the meeting was that what had happened at Marikana was an unfortunate incident.

“Thirty-four people were killed. The police were involved in it.

“I cannot say if we did right or we did wrong. It’s not my decision .”

31 October 2012 Business Day Page 3 Paul Vecchiatto Lekota ejected from the National Assembly over Zuma comments

FOR the first time in the history of South Africa’s democracy, the enforcer of Parliament’s rules, the sergeant-at-arms, was ordered to evict an MP from the National Assembly, after Congress of the People (COPE) leader Mosiuoa Lekota refused to withdraw his remarks, made last month, that President Jacob Zuma should be impeached.

However, Mr Lekota and his fellow party members departed before the sergeant-at-arms could forcibly remove him. This is the second time in three months that National Assembly Deputy Speaker Nomaindia Mfeketo has expelled Mr Lekota from the Assembly.

The first instance was in July after Mr Lekota accused President Jacob Zuma of not defending the rights of The Spear artist, Brett Murray.

That expulsion is now subject to a Constitutional Court action by Mr Lekota that is scheduled to be heard on November 29.

On Tuesday, Mr Lekota was expelled when Ms Mfeketo said he had told the House last Tuesday : "The president is illegally refusing to be bound by section 165 of the constitution which binds all persons to obey a judicial order, and he said COPE requests the speaker that impeachment procedure against the president be instituted for defying a lawful judicial order ".

At the time, Mr Lekota accused Mr Zuma of "defying" a Supreme Court of Appeals order to hand over the abbreviated transcripts of the terms that permitted criminal charges to be dropped against Mr Zuma. African National Congress chief whip Mathole Motshekga immediately objected to Mr Lekota’s comments, calling them unparliamentary, and asked Ms Mfeketo to make a ruling.

on Tuesday, Ms Mfeketo said Mr Lekota was a long-standing member of the House, was a former Cabinet minister and, at one time, was a presiding officer. She cited parliamentary rules that permitted any matter to be raised, but said the character and dignity of any member could not be attacked without a substantive motion. She ordered Mr Lekota to withdraw the comments.

Mr Lekota said that since his previous expulsion was subject to a court hearing and that the tapes were as well, he could not withdraw his comments. "If I had to withdraw (my comments) then I would have to throw out my court case," he argued. Ms Mfeketo ordered him to leave, and after he remained seated called for the sergeant-at-arms.

Ms Mfeketo also ordered Mineral Resources Minister Susan Shabangu and Water Affairs Minister Edna Molewa to withdraw their comments, made during August’s Marikana shooting debate, that when minister of defence during former president Thabo Mbeki’s term, Mr Lekota ordered soldiers into the Gauteng township of Khutsong to act against civilians. She ruled that the comments by the ministers were against the dignity and character of Mr Lekota, but did not rule on the truthfulness of their statements.

Democratic Alliance chief whip Watty Watson said he would approach National Assembly Speaker Max Sisulu about what he called the "disgraceful" conduct of Ms Mfeketo and Mr Motshekga.

31 October 2012 The Times Page 1 TJStrydom and Denise Williams South Africans are following the money

South Africans, rich and poor, are following the money as they shun rural parts of the country and head for either Gauteng or Western Cape.

Millions of people have migrated between provinces in the past decade, the latest census reveals.

Gauteng has gained more than 3.1million people and Western Cape 1.3million, putting pressure on infrastructure and eroding the income base of poorer provinces.

Statistician-general Pali Lehohla said yesterday that Gauteng seemed to have a "pull effect".

The pull was money - or at least the opportunities it offered.

Gauteng has the richest population - more than 20000 people in the province earn more than R2.45-million a year. Another 30292 earn between R1.29-million and R2.45-million, according to the census.

Professor Carel van Aardt, who specialises in demographic and econometric modelling at the Bureau for Market Research, said the migrants were a mix of rich and poor. Two million people born in Limpopo, KwaZulu-Natal, Eastern Cape and Mpumalanga have settled in Gauteng since 2001.

"It is either the very poor that go to these areas for jobs, or the highly skilled and rich, who follow lifestyle and business opportunities," said Van Aardt.

With Gauteng's population growing by more than a third since 2001, it has overtaken KwaZulu-Natal as the most populous province, with 12.27million people.

Western Cape added nearly 29% to its population to 5.88million.

Almost 900000 people born in Eastern Cape have moved to Western Cape, boosting the proportion of Xhosa-speaking people in the province to nearly a third.

Earlier this year, Western Cape Premier Helen Zille - referring to the influx of people to her province - labelled pupils from Eastern Cape attending Western Cape schools "refugees" and compared the poorer province to an "incapacitated state".

As Gauteng and Western Cape - already the most prosperous provinces - grab a larger share of the population, they are also likely to get a bigger slice of the national government's budget.

According to Van Aardt, this will put the squeeze on poorer provinces' finances.

Municipalities in the poorer provinces will suffer even more as they continue to lose ratepayers to Western Cape and Gauteng's urban areas.

Howard Gabriels, chairman of the Statistics Council, which advises the government, said the migration figures were "surprising".

"What this suggests is that urbanisation in Gauteng and Western Cape is happening much faster than expected," he said.

He said it was important that the government align its financial planning with the new data.

"They need to set their programmes to deal with a broad range of service-delivery issues [and providing] access to basic services. With comprehensive new data set like this, it will definitely help the government to review its policies," he said.

Van Aardt said the census had confirmed some of his own research, which showed that large numbers of people had moved to urban centres, not only Johannesburg and Cape Town but also Durban and other cities.

Some of the metros, he said, gained more than others as entrepreneurs and professionals flocked to Gauteng's cities in search of bigger markets and other opportunities.

Professor Ivan Turok, deputy executive director of the Human Sciences Research Council, said economic data supported the census finding that Gauteng "has become the golden egg of the country".

Turok said internal migrants prompted many service-delivery protests and the government should take cognisance of this.

"There are service-delivery protests because people are moving and the services [they find] are not what they are expecting.

"Government funding does recognise this movement . the money is following the people with the services they need," he said.

President Jacob Zuma, who received the results of last year's census from Lehohla yesterday, said great strides had been made in improving the lives of South Africans.

Van Aardt agreed, saying the provision of housing, piped water and access to electricity contributed to the improvement.

29 October 2012 Business Day Page 3 Karl Gernetzky Sadtu ‘stands behind’ Zuma re-election bid

THE South African Democratic Teachers' Union (Sadtu) three-day annual general council ended on Sunday with "unambiguous" support for President Jacob Zuma’s bid for a second term in office.

The annual meeting of the union’s leadership this year takes place ahead of the African National Congress (ANC) elective congress in December, when the party’s leadership will be decided, and the ANC’s policies reviewed.

Sadtu’s declaration on Sunday was a mix on the union’s stance on education issues such as school infrastructure and early childhood development, and politics, with the union issuing a declaration calling for increased unity within the tripartite alliance.

Sadtu general secretary Mugwena Maluleke said on Sunday the union had resolved to push for unity, especially on the issue of party leadership in the run-up to Mangaung. This was needed to implement policies that would drive the economic restructuring necessary to address economic growth, unemployment and inequality.

Sadtu, which has more than 250,000 members and represents two-thirds of all teachers, has already lined itself up behind Mr Zuma’s second-term bid. The union said on Sunday that issues of education could no longer be isolated from the wider problems facing the country.

Sadtu president Thobile Ntola opened the general council on Friday by calling for increased involvement of members in carrying out all the government’s policies. Good policies are being designed, but Sadtu members are not doing enough to ensure they are properly implemented.

Mr Ntola also called for renewed focus on school infrastructure, such as science laboratories, saying the ability of pupils to learn and be effectively taught was at stake.

Mr Ntola said the Department of Basic Education needed to "balance its books" and address the issue of temporary teachers. It was unacceptable that after 18 years of democracy, teachers were being told at the end of the year they would not return to schools with vacancies.

Sadtu declared on Sunday: "All substantive vacant posts occupied by the temporary teachers (must) be made permanent before the end of 2012 in order to ensure that there are no disruptions at the beginning of the school year."

Sadtu and the Department of Basic Education have butted heads over unfilled vacancies, notably in the Eastern Cape, a province heavily reliant on temporary teachers.

At the opening of the general council, Basic Education Minister Angie Motshekga said this year had been an "uphill battle" for the education sector, but there had been notable achievements such as the memorandum of understanding with unions on professional development. The government is to spend R3bn on raising teachers’ skills in 2013-14.

Ms Motshekga said the effectiveness of policies for filling vacancies needed to be evaluated.

Mr Maluleke said on Sunday Sadtu still had confidence in Ms Motshekga’s leadership, but that the minister needed to "pull up her socks" as the union’s patience was "wearing thin" over her failure to properly exercise oversight.

The union was awaiting her action against officials who were responsible for the delay in textbook delivery in Limpopo, he said.

Ms Motshekga was also frustrating collective bargaining procedures and needed to show more leadership on the issues facing the country, he said.

29 October 2012 Business Day Page 3 Stephen Grootes Politics at work in Zuma, Zapiro case

PRESIDENT Jacob Zuma’s decision to withdraw his defamation case against cartoonist Jonathan "Zapiro" Shapiro has been warmly welcomed by supporters of media freedom. The cartoon depicted Lady Justice held down by African National Congress secretary-general Gwede Mantashe, union leader Zwelinzima Vavi and then ANC Youth League leader Julius Malema as Mr Zuma unbuckled his belt.

It was strongly condemned by the ANC and its alliance partners. Mr Zuma then sued, claiming his dignity had been hurt, and that it was defamatory. But after a lengthy period, he dropped the dignity claim. On Friday he dropped the entire suit. However, it appears this was a simple political calculation rather than any change of heart towards Zapiro or media freedom in general.

Mr Zuma has made much of his claims to dignity over the last several years. Thus it could have been expected that he would continue with this case to the bitter end, if just to make the claim that he had a natural right to dignity.

It also appeared that this was a useful political tool, as the cartoon could have been claimed to be proof that he was being abused by a rich, generally white portion of society.

However, his final calculation shows he stood to lose far more than he would have gained.

If he had proceeded with his first claim, relating to his dignity, Mr Zuma would have had to testify from the witness box. As it is a subjective claim, he would have had to make the case that he felt his dignity had been abused. This would have opened him

up to cross-examination from the paper’s advocate, Wim Trengove, who is well known for his skills in cross-examination.

However, even the second claim, that he had been defamed, would have allowed Zapiro to present evidence that Mr Zuma had deliberately abused the justice system, as depicted by Lady Justice in the original cartoon.

Webber Wentzel attorney Dario Milo, who represented both Zapiro and the Sunday Times in this case, has confirmed they would have brought evidence from both before the cartoon was published, such as comments made by ANC leaders, and from after it was printed. The court would have heard claims that the decision by the National Prosecuting Authority (NPA) to drop corruption charges against Mr Zuma was politically motivated.

As a result of this, Mr Milo has confirmed, they had requested the "spy tapes", or transcripts of recordings between then Scorpions head Leonard McCarthy and former NPA head Bulelani Ngcuka. In 2009 these tapes were obtained by Mr Zuma’s attorney, Michael Hulley, through means which have never been explained. They were then used as evidence of a political conspiracy.

And Mr Zuma’s team has tried to block every chance these tapes will be made public. The Democratic Alliance has also had no success with its formal request for them, as part of its application for a judicial review of that NPA decision. This could have been the major factor in Mr Zuma’s decision to withdraw the action. Also, this case would have occupied the public imagination ahead of the ANC’s Mangaung conference.

But the length of time this suit has taken is evidence that this was an issue Mr Zuma wanted to pursue. He may have required some convincing to make the decision to withdraw.

29 October 2012 Business Day Page 1 Nick Kotch Western funds shock for Dlamini-Zuma

AFRICAN Union (AU) commissioner Nkosazana Dlamini-Zuma got a rude awakening on her first week in office: nearly all of the AU’s programmes are funded largely by foreign donors.

"No liberated mind can think their development agenda can be funded by donors," Ms Dlamini-Zuma told a Business Unity South Africa banquet in her honour at the weekend in Johannesburg.

"Over 97% of programmes in the AU are funded by donors.

"We should be more selfreliant. Our governments must put more money there (in the AU)," Ms Dlamini-Zuma said.

She said donors were even footing the bill for African institutions to develop the continent’s strategic agenda, a fundamental task in what has been dubbed the

African century. The rocketing value of mineral resources over the past decade has given Africa unprecedented opportunities to shape its own future.

"Our forebears liberated us from colonisation. But we must also liberate our minds."

The AU, whose executive branch, the AU Commission, Ms Dlamini-Zuma has led since October 15, was founded in 2002 with decisive traction provided by a handful of African leaders, including then South African president Thabo Mbeki.

Compulsory contributions to the body’s annual budget were blithely ignored by many governments. Donors stepped in to pay for peacekeeping, health and educational programmes, as well as staff salaries.

But to really break with the past, the 54 AU members will have to pay their contributions in full and on time. Even then, the AU’s programmes budget will be financed by donors, although precise numbers are kept virtually secret, according to the Heritage Foundation, a conservative US think tank.

"The total support provided by American taxpayers to the AU is unknown, because the organisation lacks the most rudimentary standards in transparency," it said in a report last March.

Ms Dlamini-Zuma has already beg un to get the feel of her new job, spending the bulk of her first eight days in Bamako, Mali, because of infrequent flights between continental capitals.

29 October 2012 Business Day Page 1 Sam Mkokeli Mangaung ‘tipping point’, says Motlanthe

DEPUTY President Kgalema Motlanthe says the Mangaung conference represents a tipping point for the African National Congress (ANC), which needs to restore public confidence in its ability to lead the country out of a rut and formulate good policies.

In a transcript of an interview published by the Financial Times on Monday, Mr Motlanthe warns that the party needs to get its house in order and come up with policies that work for South Africa.

There is a campaign to market Mr Motlanthe as a potential successor to President Jacob Zuma.

He has received nominations from some branches as the ANC prepares for provincial general meetings next month at which it will be clear which leaders have enough nominations to be considered candidates in Mangaung.

Mr Motlanthe acknowledged that many people and sectors looked to such a conference for clues on the country’s political and economic outlook. He said if the

expectations of outsiders were not met on policy issues, the levels of despondency and negative outlook on South Africa’s political and economic trajectory would be strengthened. South Africa’s sovereign rating has been downgraded by two rating agencies, essentially due to the uncertain political terrain.

Mr Motlanthe said the ANC could be saved if the conference could adopt clear policies and the party itself had a unity of purpose "so that people can say, yes, there is hope for tomorrow being better than yesterday".

Asked what he would do if his name came up, Mr Motlanthe downplayed its significance. "All these people who are making pronouncements now about this and that and so on are merely expressing their own wishes," he said.

Asked if he would accept nomination, Mr Motlanthe said: "I can only respond to that question when it is put to me, because I have a right to … The constitution of the ANC says each and every member has a right to nominate whomsoever and be nominated for any position."

While Mr Motlanthe has not expressly said that he would stand for the position of party president, some ANC leaders say the indications are that he will accept a nomination for any position, based on the principle of serving wherever ANC branches want him to.

Mr Motlanthe said Mangaung could be the tipping point for the ANC, which led a country facing myriad economic development obstacles. "We have to ensure that we come up with a formula that works for this country," he said.

The government’s welfare expenditure — with more than 15-million people receiving social grants — was not sustainable, he said. "We need to create jobs; we need to grow the economy."

The ANC had to renew itself, as that would make it capable of leading South Africa out of a "rut", he said. If it failed to do so, there was a chance that those who felt there was a need for a radical approach to the issues of transformation would gain currency. "There is no doubt about it that we need renewal or we’re going south."

The ANC must "continue to be relevant and capable of providing leadership today, not because of the glorious history", Mr Motlanthe said. It should aspire to be "the natural political home to the broadest cross-section" of South Africa.

The 2014 election posed a challenge for the ANC, as children born after apartheid would be voting for the first time. "They use a simple measurement … Is the ANC capable of going to the moon? And they say, well, if it can’t deliver books, how can it go to space?"

The new generation was not sentimental in its approach to choosing a party to vote for, he said. "There’s no sentimentality … It’s plain, straightforward."

29 October 2012 Business Day Page 1 Nicky Smith

Cabinet decision triggers wrangling over e-toll tariffs

THE government’s proposed new e-toll fees were "not cast in stone" and could still be cut further, it emerged at the weekend, as intense wrangling begins over a final tariff.

Faced with widespread resistance to the tolling of Gauteng’s freeways, the government said on Friday that it would lower e-tag tariffs, and announced the start of a 30-day consultation process.

According to senior officials in the Treasury, it is likely that tariffs could drop further.

Under the new schedule, motorcycles will pay about 18c/km compared to the 30c/km announced last year. Light motor vehicles will be charged 30c/km (40c/km), medium-heavy vehicles 75c/km (R1/km) and heavy vehicles will have to pay R1.50/km (R2).

A monthly cap of R550 has been suggested for light vehicles.

The South African National Roads Agency (Sanral) estimates it will generate R200m-R300m a month from tolls.

In February, the Treasury was forced to allocate R5.75bn to Sanral, which borrowed R20bn of the R30bn cost of the Gauteng Freeway Improvement Project, to ease the agency’s cash flow problem after the implementation of tolling had stalled a fourth time.

There is still a chance that tolling on Gauteng’s freeways could be disrupted, if not scrapped entirely, with a legal challenge led by the Opposition to Urban Tolling Alliance, a pressure group.

Hearings for the legal review of Sanral’s procedures to implement the tolling system have been set down for November 26.

Business Unity South Africa (Busa) said there were "still some difficulties to be ironed out before the project can be implemented".

"There remains widespread criticism of the impact which e-tolling will have on the regional and national economies and it is important to use the time available to ensure that confidence is built in the final decisions before they are implemented," Busa said.

It welcomed the 30-day consultation period, and said the court review and public hearings were an opportunity for "further consultation with stakeholders".

While a new financial injection will relieve Sanral’s debt burden, it is likely to stretch the Treasury’s resources, forcing it to divert funds from other projects.

"Can the tariffs still change? Yes. And that can have an impact on what we would need to make available to Sanral," Marissa Moore, a director of public finance at the Treasury, said last week.

Transport Minister Ben Martins said on Friday that the Cabinet had decided to go ahead with e-tolling as a funding mechanism for the improvements made to the Gauteng freeway network.

Mr Martins said last week’s proposed tariffs were "not carved in stone" and that the state wanted to have a genuine consultative process with the public. This could open the way for further reductions.

Congress of South African Trade Unions general secretary Zwelinzima Vavi has urged commuters not to buy e-tags and said the federation would file a section 77 notice to allow for a general strike to protest against e-tolling.

No date has been set for the implementation of e-tolls, but the government’s timetable indicates that they could begin four days before Christmas.

29 October 2012 Cape Times/ The Star Page 4 Babalo Ndenze

Opposition parties laud pay-freeze move

THE CABINET’S decision to freeze its own salary increases for the next year has been welcomed by opposition parties as showing the government is “walking the talk”.

President Jacob Zuma has encouraged senior executives in the public and private sectors to freeze their salaries as a “signal of a commitment to guide an equitable economy”.

It was a commitment agreed to at the top-level summit arranged by the government. The cabinet decided at its regular meeting last week to take the lead and freeze the salary increases of Zuma and his ministers.

Acting cabinet spokeswoman Phumla Williams said that to demonstrate the “commitment to diminishing salary inequalities”.

United Democratic Movement president Bantu Holomisa said it was encouraging to see the cabinet take such a decision. “I think they are walking the talk. But we don’t know what’s the game-plan, for all we know this could be just politicking.”

DA national spokesman Mmusi Maimane said his party welcomed the initiative.

29 October 2012 The Times Page 1 TJ Strydom and Bongani Fuzile Marikana inquiry hangs in the balance

The progress of the Marikana Commission of Inquiry hangs in the balance - lawyers representing the victims' families yesterday threatened to make a high court application to halt the proceedings.

The threat follows the Department of Justice's decision to stop paying the transport and accommodation costs the victims' families incur in attending the commission's hearings.

The lawyers, some of whom have described the decision as "outrageous", will today raise the issue with both the commission and the department.

Osmond Mngomezulu, an attorney for the Socio-economic Rights Institute, who represents some of the families, said: "If the situation does not change we will bring an urgent application for review in the [Pretoria] High Court to set the department's decision aside."

Mngomezulu said part of the application would be for a postponement of the inquiry until it was made possible for the families to attend.

Family members of the 34 miners shot dead by police on August 16 have expressed outrage at the department's move.

Mthuthuzeli Xhego, whose nephew, Mafolosi Mabiya, was shot dead, said the chairman of the commission, Judge Ian Farlam, should be the one to decide who should attended the hearings.

"The millions of rands that have been thrown into this commission are for all the logistics involved, including ensuring that families are part of it," he said.

"We read in the newspapers that Farlam wanted families to be part of this but now we hear that there's no money. Really, this should be his decision, not [Justice Minister] Jeff Radebe's department," said Xhego.

The department helped to cover the families' travelling costs only after advocate Dumisa Ntsebeza, who represents some of the families the miners killed, questioned their absence at the inquiry.

At the start of the commission's hearings, Ntsebeza said means of financing the travel, accommodation and food should be found for the families.

Justice Department spokesman Mthunzi Mhaga said yesterday that the department would "deal with the lawyers' legal action when we are formally notified" of it.

"There is no legal basis on which the attendance of the family members or representatives can be sustained at state expense," the department said earlier.

Some family members who attended the proceedings last week saw video footage of the shootings for the first time.

Other Eastern Cape family members expressed their disappointment at the "abrupt" decision to cut the funding.

Jamela Thukuza, brother of killed miner Mphangeli Thukuza, of Ngqeleni village, Eastern Cape, said this was another slap in the face for the victims' families after they had first been ignored by the commission.

"We were ignored. Only the lawyers representing our families pushed for our attendance [at the hearings]," he said.

"We stand by our belief that this commission was set up to enrich a few individuals rather than help families get closure. Our brother died like a dog and it was for the government to make sure that we are part of the inquiry. "

At the weekend, Shanduka chairman and Lonmin board member Cyril Ramaphosa offered to appear before the commission to explain the e-mail correspondence on the eve of the Marikana massacre between him and senior Lonmin executives. The correspondence was revealed at the inquiry last week.

In the e-mails, released by advocate Dali Mpofu, who also represents families of the dead miners, Ramaphosa wrote to Lonmin's chief commercial officer, Albert Jamieson, on August 15, saying: "The terrible events that have unfolded cannot be described as a labour dispute.

"They are plainly dastardly criminal and must be characterised as such. There needs to be concomitant action to address this situation."

Ramaphosa said this weekend: "I believe there are a number of issues relevant to the deliberations of the inquiry on which I might be able to make a contribution.''

The commission's spokesman, Kevin Malunga, could not say whether Ramaphosa would appear before the commission, saying that the commissioners and evidence leaders would decide whether he should be called.