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24 Jun, 2020
Holomisa tackles implications of illegal conversion of Toyota Quantum panel vans to taxis and ambulances: allegations of a scam of major proportions
Membership (as per United Democratic Movement Women’s Organisation Constitution) 6.1.1. Membership of the Organisation shall be open to all South African Women who qualify in terms of this clause and subscribe to this Constitution and who support a multi-party democratic political system for the Republic of South Africa. 6.1.2. To this end any individual aged twenty-one (21) years and above shall be eligible for membership and be entitled to exercise all rights and honour all obligations, associated with membership, without discrimination based on race, gender, marital status, ethnic- or social origin, colour, sexual orientation, disability, religion, conscience, belief, culture and language, provided that; 6.1.2.1. She is a citizen or permanent resident of Republic South Africa; 6.1.2.2. She applies for membership in writing; 6.1.2.3. She pays the prescribed annual membership fees; 6.1.2.4. She is not a member of any other political party except the United Democratic Movement
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04 Jun, 2020
Bantu Holomisa writes to Wesbank CEO Chris De Kock re Mr Mzukisi Ndara’s case
Dear Mr De Kock MZUKISI NDARA: NATIONAL DIRECTOR OF PUBLIC PROSECUTIONS CONFIRMS “MISREPRESENTATIONS AND CONTRAVENTION OF STATUTES” BY WESBANK The above subject matter bears reference. The first time I wrote to you was on 2 May 2018, just over two years ago, seeking justice in the form of restoration for Mr Mzukisi Ndara, and his family. Mr Ndara firmly believed that FirstRand bank was complicit in a fraudulent vehicle sale transaction in 2004 that caused him to suffer irreparable harm. Frankly, I also believed, hence I wrote to you in the manner that I did. The last of the four letters I have written to you hitherto, was written on 30 October 2019. I concluded the letter thus “I would simply urge you to take this matter seriously by engaging meaningfully and honestly to find solutions. It will not just go away instead it’s going to grow until it is entrenched in the psyche of South African society”. This will now sound prophetic given the latest developments. The National Director of Public Prosecutions (NDPP) Advocate Shamila Batohi, in a letter addressed to Mr Ndara dated 24 September 2019 (Annexure 1), places Wesbank squarely at the centre of the fifteen-year saga that has severely prejudiced an ordinary family. Mr Ndara unfortunately only received this correspondence on Friday 29 May as it was sent to his old email address. The NDPP in this letter writes: “3. Based on my analysis of the matter the fraudulent activities that are the subject of your representations, emanated out of an instalment sale agreement entered into between yourself and Wesbank. 4. Based on your statement filed with the police documentary evidential material as well as the circumstances of this matter, Wesbank and/or its employees committed a breach of contract in the form of misrepresentations and also acted in contravention of various statutes as alluded to in your reports. On the basis thereof, you are, as an aggrieved party entitled to approach courts for an appropriate relief.” These assertions by the top prosecutor in the country implicating the entity that you lead are now available for public consumption. I have been at pains over the last two years urging you to occupy moral high ground by resolving Mr Ndara’s matter. Time and time again I have been met with denials and apathy. Fundamentally in our first meeting with you in May 2018, you were adamant that the bank has done nothing wrong and in fact placed the blame squarely on Datnis Nissan dealership. The National Prosecuting Authority (NPA) correspondence points to Wesbank and its officials as the people responsible. The correspondence distils that the two contracting parties are Wesbank and Mr Ndara. No one else. In the same meeting, after Mr Ndara had taken us through the details of how the deal was concluded and what he had since discovered in hindsight, you were the voice of reason as you said to him “If it’s true what you are saying and it is accurate then I must sympathise with you because you will have been done a grave injustice”. Those words remained with me and I asked myself what you will do when Mr Ndara’s utterances prove to be true. That moment is now upon us. The NDPP, who has been exposed to the case docket, with police evidential material, various internal reports and Mr Ndara’s presentations, has now confirmed that there is documentary evidence that points to misrepresentations by Wesbank. It is now time to replace your intransigence with relevance, you need to be abreast of the mood and to confront the reality that your conduct as a corporate citizen has fallen short of what is expected. It is time to accord this ordinary citizen respect, by engaging him to find a solution by sitting around the table. I am aware that you contemplated settlement on this matter in a letter to the former Chairperson of the Standing Committee on Finance, Mr Yunus Carrim dated 17 April 2019. Paragraphs 3 and 4 of this letter (Annexure 2) read as follows: “However, your suggestion for me to meet personally with Mr Ndara in an attempt to reach some kind of confidential settlement is noted. The question of who is right or wrong in this matter is not the only issue at stake here. The other issue regards the actions that Mr Ndara, backed by the media could take to further express the anger and resentment directed at Banks based on alleged discrimination over the past number of years. On the advice of our legal team we have decided it would not be the prudent approach to personally meet with Mr Ndara in an attempt to reach a confidential settlement. As discussed, we have limited appetite to enrich the individual which does not take into account the time and effort that will be required to defend this matter in the courts and the in the private domain” Gleaning from these two paragraphs these are not the contentions of an innocent party. Gone are the vehement denials of big corporates that dismiss complains with contempt. For that matter whilst I write to you open letters that are transparent, also for public consumption, not once on the four occasions I have done so have you responded in kind. There is not a single letter where you have taken the public into your confidence regarding this matter and that of the Crusaders for Justice. There are over thirty people who have suffered similar fates to Mr Ndara whose lives are ruined because of the immorality of this bank. In all their cases, their tormentor is Wesbank. Surely we should now call time on this; it is time to do the right thing. I note, in fact, that you are amenable to a settle with Mr Ndara were it not for your legal team who needed more time to explore if there were any other seemingly unethical avenues to cause him greater harm. Notably there is again no outright denial. Paramount in your narrative in this letter is the point that “As discussed, we have limited appetite to enrich the individual”. This pregnant statement takes the cake. It says so many things all at once. In fact, I hear you loud and clear, Wesbank has turned Mr Ndara’s life upside down for over fifteen years, he has lost properties and lost all cars he had, owing to this transaction based on misrepresentations. As such, whilst you “have limited appetite to enrich the individual”, Wesbank has all the appetite to rid people of their hard-earned money and property. Wesbank has had the appetite to impoverish people as has been aptly demonstrated in this case. Will the real leaders of the First Rand Group please stand up. Your silence is deafening. Judge Buyiswa Majiki in an August 2018 judgement (Ndara and Another v Weir Investments (Pty) Ltd and Others (3180/2013) (2018) at the Grahamstown High Court set aside a 2015 judgement that was in favour of Wesbank on the basis that it was erroneously sought and granted. This has been Webank’s modus operandi, hence Mr Carrim exhorts you to settle this matter. Judge Elna Revelas presided over a hearing on 18 August 2015 with only the bank’s legal team present. There were no papers served on Mr Ndara and his attorneys. Significantly there was not even a Notice of Set-down. Strangely, Judge Revelas proceeded to dismiss Mr Ndara’s leave to appeal with costs. When the bank’s representatives appeared before Judge Majiki in 2018; they conceded that they did not follow any of the applicable High Court Rules. The bank appealed Judge Majiki’s judgement and it was dismissed with costs around March 2019. A month or so later you wrote this letter to Mr Carrim. Quo Vadis? Whilst I applaud the NDPP, unlike Advocates Naicker, Goosen, Mrwebi and Govender she was much more forthcoming on what has really transpired in this David and Goliath battle. Advocate Batohi was prepared to call out the culprits – Wesbank. However whilst she identified the unethical and immoral conduct on your part, she did not have the courage to act (as the law allows her) in the interests of good governance, for justice to be served. That is really disappointing. 2) Whenever any manager, agent or employee of any credit grantor does or omits to do any act which it would be an offence under this Act for the credit grantor to do or omit to do, such manager, agent or employee shall be liable to be convicted and sentenced in respect thereof as if he were the credit grantor. The above extract is taken directly from the Credit Agreements Act 1980, that was in place when Mr Ndara’s credit agreement was concluded. In my book, “shall be liable to be convicted and sentenced”, refers to a criminal prosecution if one were to have been found to have contravened this statute. Furthermore, Advocate Tenjwa Sellem, who oversaw a seven-month investigation at the NPA on this matter, took a decision to prosecute and took warning statements. On receiving a copy of NDPP’s letter his response was “If Mr Ndara on purchasing a vehicle through Wesbank, had provided a false representations concerning his salary advice and place of domicile, was he not going to face criminal charges of FRAUD, the answer is in the affirmative”. He went on to say, in the investigation, evidence points to the following issues that anchor this matter • Wesbank delivered to Mr Ndara a USED Nissan X-Trail 2.2 Diesel, Manual with 6700 kilometres travelled valued at R270000-00 Then they processed and invoiced him for a BRAND NEW Nissan X-Trail 2.5 Automatic valued at R298000-00. • Wesbank processed and approved the sale agreement, relying on a fraudulent Offer to Purchase (OTP) that Mr Ndara had never had sight of nor signed. The OTP provided for him to sign firstly to tender his Nissan Almera as a trade in, and secondly to sign making the Offer to Purchase the Nissan X-Trail described therein. Instead Mr Jaen Van Aardt – the Dealer Principal signed on the document accepting an offer that had not been made. Despite the invalidity of the document Wesbank processed and concluded the deal as if it was above board. • Furthermore Wesbank approved fictitious extras to the value of R33000-00 that do not exist. These were insurance products as opposed to physical material enhancement in the vehicle that would have been requested by Mr Ndara. So in all the vehicle that he would have paid R270000-00 for, he was invoiced for R333000-00. • The Dealer Principal induced Mr Ndara into this deal under the pretext that he was redressing a wrong committed by a salesperson at the dealership, hence Mr Ndara believed him. He offered to do a special deal that will see Mr Ndara benefit from the Wesbank Senior Manager Scheme that he already qualified for. Noting that Mr Ndara is ignorant of the Scheme’s formula, he loaded 15,25% interest rate instead of 9% that he qualified for. Mr Ndara as a result had R8857 monthly instalment for a USED Nissan X-Trail in 2004, sixteen years ago. Advocate Sellem ended by saying he stands by his decision to prosecute this matter. To conclude my letter, Sir, I shall quote from the Regional Director of Public Prosecutions, Advocate Goosen, who was the only prosecutor to write to Mr Ndara giving reasons why they decline to prosecute. Advocate TC Goosen on 11 December 2015 writes as follows: “ “It is a fact that the vehicle was described on the transaction details document as a new one. I am of the opinion that this aspect does not assist in making a decision in your favour. Everyone including yourself knew at all times relevant that the vehicle was a demo model and therefore not brand new. Consequently the action to tick the ‘new box’ surely could not have been made with an intention to defraud you. I also consider a possible argument that being a demo model, the vehicle was definitely a used vehicle, but also new in the sense that ti has never been sold before. Another possible argument can also be that the ticking of the ‘new box’ was a mistake and that the person who made the tick is as much to blame as those who had signed the document.” The car was indeed sold to you at a price consistent with that of a new car. Essentially because of all that he advances above, Advocate Goosen then concludes that whilst there are all these permutations above, Mr Ndara’s case would not stand scrutiny in a court of law as he will be a single witness. I shall leave these two contrasting versions for your benefit and the public at large. Once more with all the respect I invite you to meet with Mr Ndara and resolve what is patently a grave injustice. Not only to Mr Ndara, but to all South Africans who believe in natural justice and the rule of law. Sir, I believe you owe this to yourself, FirstRand Bank and to all those who inflicted pain on Mr Ndara and his family throughout these years. It is never too late to mend. Yours sincerely Mr Bantu Holomisa, MP UDM President
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03 Jun, 2020
Composition of PIC interim board: beneficiaries should not be members
Honourable Minister Mboweni QUESTIONS AROUND THE COMPOSITION OF PUBLIC INVESTMENT CORPORATION’S BOARD: BENEFICIARIES SHOULD NOT BE ALLOWED TO SERVE 1. Some time has lapsed since the 995-page report of the Judicial Commission of Inquiry into allegations of impropriety at the Public Investment Corporation, as lead by the Honourable Justice Lex Mpati (‘the Mpati Commission’), was handed over to President Ramaphosa and was released to the public on 12 March 2020. 2. One of the consequences of the Coronavirus lockdown is that I had the opportunity and time to read the voluminous Mpati Commission’s report and apply my mind to the size of the task of implementing its recommendations, over and above the management of the Public Investment Corporation’s (PIC) day-to-day business. 3. From my personal experience of the way the Mpati Commission functioned and reading its report, I believe that the commission did a sterling job. We will hopefully see sweeping changes that will lead to the PIC being a responsible organisation, as well as rooting out corruption and poor administration. South Africans will hopefully see the police, the Directorate for Priority Crime Investigation (Hawks) and the National Prosecuting Authority continue investigating and bring culprits to book. 4. Regarding the implementation of the Mpati Commission’s recommendations at the PIC, the complexity of the job ahead and the fortitude required to complete it requires the most competent, qualified, and trustworthy individuals. The PIC’s board and administrators must have the best interests of the PIC, and by extension the South African Government Employees Pension Fund (GEPF), at heart. 5. This knowledge and given the poor track-record of past PIC boards brought me to my next exercise, which was to look at the composition of the PIC’s incumbent interim board which you appointed in consultation with cabinet almost a year ago. 6. To my surprise, in doing my quick study, I came across an individual who now sits on the PIC’s interim board, who is a past PIC beneficiary. 7. That person is Ms Irene Charnley; the company is her Smile Telecoms Limited, to which the PIC committed an investment of USD 100,000,000 in 2015. This is a little more than R1,7 billion when calculated at today’s Rand/Dollar exchange rate. The PIC Investment Details sheet where I obtained this information, is available at https://www.pic.gov.za/DocPresentations/95.-Smile-Telecoms-Holdings.pdf). 8. It is an interesting side-note that, at the time, the now disgraced former PIC CEO, Dr Daniel Matjila, said: “We are excited about our investment in Smile Telecoms as it provides us with an opportunity to accelerate and realise our mandate to invest in the rest of the African continent.” 9. Given this information I have provided thus far, I could not help but ask whether history was repeating; and it left me feeling quite uneasy. 10. This discovery piqued my interest and I also did a cursory internet search on Smile Telecoms Limited (‘Smile’) and found the following information, the context of which will become clear in my later questions to you: 10.1. “Capitalworks” is listed as Smile’s “partner” on its website but is named “CapitalWorks SSA” on the Investment Details sheet. Presumably, this name difference is due to there being different divisions of the same company. I then found an announcement that an entity called “Capitalworks Group”, in 2017, had launched “Africa Capitalworks”, an investment company, which aimed to raise USD 300 million to “…deploy permanent equity capital in mid-market companies in strategically selected sectors across Sub Sahara Africa (“SSA”) (excluding South Africa)”. This discovery in itself is not interesting, what however is, is that they had “… already secured early support and substantial investment, including from CDC, the UK’s development finance institution, and the Public Investment Corporation SOC Limited (PIC) on behalf of its client the South African Government Employees Pension Fund (GEPF).” 10.2. I also found a PIC document called “ISIBAYA DETAILED INVESTMENT SCHEDULE AS AT 31 MARCH 2017” which is available on, investigative journalism organisation, Amabhungane’s website at https://amabhungane.org/wp-content/uploads/2018/08/170331_PIC-Unlisted-assets.pdf. Under the column called “FRESG Performance” the following is written about Smile: • “Financially Underperforming – economic headwinds, devaluation of local currencies mainly Nigeria and stiff competition led to underperformance”, • “Owner Managed Companies – Corporate governance principles are compromised- Governance policy, Delegation of Authority, succession planning and risk management framework need to be in place” • “Establishment of Social and Ethics Committee to manage the Representatives of local people on the boards be increased to ensure legislation in countries that advocate local representation on the board.” 11. Given the above information the following questions arose in my mind: 11.1. Were you aware that Ms Charnley had been a PIC beneficiary when you appointed her as an interim board member? If so, do you consider this to be a healthy situation and what were your reasons for continuing with her appointment despite the knowledge? 11.2. What was the agreement in terms of the USD 100,000,000 investment the PIC made in Smile and has investment paid dividends, especially given the PIC’s 2017 conclusion that Smile was “financially underperforming”? What were the implications of this lack of performance? Did the PIC write off this investment and if so, would this not constitute mere looting? 11.3. The PIC concluded that Smile’s “Corporate governance principles are compromised” whilst the company was squarely under Ms Charnley’s management. Would you agree that this casts doubt on Ms Charnley’s suitability to function at board level? 11.4. Did CapitalWorks SSA/Capitalworks Group/Africa Capitalworks receive PIC/GEPF funding? If so, what are the details, and would you consider it compromising that a board member has yet another link to a PIC beneficiary? The United Democratic Movement would argue that there is enough evidence that warrants that Ms Charnley must vacate her seat on the PIC board immediately. One other matter I would like to raise with you is the appointment of Mr Abel Sithole as the new PIC CEO. It would serve us well to remember that the GEPF wrote off billions of rands in investment losses, as was reported in 2018, whilst he was that entity’s Principal Executive Officer. Some of those so-called investments were quite dodgy and this scenario means that Mr Sithole is a man who failed at his job. Surely there were other competent individuals available for your consideration. We do not want to conclude that his appointment is to merely clean-up the mess he was part of and covering tracks in the process. We look forward to your response. Yours sincerely Mr Bantu Holomisa, MP President of the United Democratic Movement
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12 Mar, 2020
PIC report: the UDM is vindicated on Harith
The United Democratic Movement (UDM) welcomes the publishing of the long-awaited report of the Mpati Commission of inquiry into the Public Investment Corporation (PIC). We are happy that, even though President Ramaphosa took his sweet time in releasing it, it does not seem as if there was any attempt to lessen the blow. We have been vindicated with the Commission’s findings which attributes improprieties to the PIC senior management for failure to manage decision-making in a professional and honest manner. The Commission found in particular that the former CEO, Dr Dan Matjila was dishonest, and the PIC board merely rubber-stamped his decisions. In particular the UDM is happy that the Commission cut to the bone in its findings around Harith, saying that the company managed the PAIDF I and II “at significantly high fees” and that the earnings and incentive schemes provided rich rewards for those “…selected by the PIC… confirming that PIC directors and employees used their positions for personal gain and/or to benefit another person.” “Harith’s conduct was driven by financial reward to its employees and management, and not by returns to the GEPF. In essence the PIC initiative, created in keeping with government vision and PIC funding was ‘privatised’ such that those PIC employees and office bearers originally appointed to establish the various Funds and companies reaped rich rewards.” Even though we are proud of the fact that we championed the cause in getting the rot exposed at the PIC, the sad part is that the damage done will be everlasting. At this stage, we certainly hope that the National Prosecuting Authority, and other authorities, will run with the ball and bring any and all guilty parties to book. This process should be a lesson in point for the greedy hyenas out there that they will not get away with corruption and mismanagement. The UDM will be scrutinising the details of the almost 1000-page report in due course. Issued by: Mr Bantu Holomisa UDM President
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29 Jan, 2020
Free education a reality or a dream deferred
In December 2017 on the evening of the ANC Conference, South African youth woke up to news that free higher education was finally a reality as the then President Jacob Gedleyihlekisa Zuma declared. These news were greatly received with jubilation hence fees must fall activists thought they finally won the long war that has seen many young people lose their lives and others like Khanya Cekeshe activists incarcerated for a cause they so much believed in. The fees must fall campaign saw many violent attacks and blood was shed as the ANC government was very sluggish in responding to the cries of young people who so wants to be educated in-order for them to be formidable players in all economic activities. It was the same Minister Blade Nzimande who was at the helm of the Department of Higher Education and Training then and he is still today as we see yet another historical National shutdown. This is really Minister Nzimande’s legacy in this ministry, every time he holds this position in this particular department there emanates chaos as young people feel that what he says and what is happening on the ground do not talk to each other. The United Democratic Movement Youth Vanguard is of the view that there are no measures in place, plans to curb such from re-occurring, year in year out there are these shutdowns of higher learning institutions. Clearly there’s no preventative work done, and the DHET get surprised when each academic year resumes. The Youth Vanguard lamented the appointment of Minister Nzimande into DHET and all those cries and of many young South Africans fell on deaf ears as our President felt obligated to appease his comrades, factions within the ANC and tripartite alliance above the interest of the country. This is costing the country dearly. What young people are fighting for are not new demands or needs they’ve been there for years and we have called for action and decisive leadership and nothing has emanated. The UDM Youth Vanguard proposes that there should be a synergy between the two departments of lower and higher Education, since the latter seemed to not know how to prepare for the in-take of matriculants that have passed each year. These two departments are required to work closely together. Selling out the youth dreams is a gross human rights violation. A country that does not take care of its youth is a country with no future. The way things are, the ruling party will be judged negatively by history. Issued by: Yongama Zigebe UDMYV Gauteng Secretary
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01 Oct, 2019
Vehicle financing: Holomisa asks Wesbank CEO some pointed questions
AN OPEN LETTER TO THE CHIEF EXECUTIVE OFFICER OF WESBANK, CHRIS DE KOCK Mr Chris de Kock Wesbank Chief Executive Officer Enterprise Road Fairland 2170 Dear Mr De Kock ALLEGED CORRUPTION IN MOTOR VEHICLE SALES: THIRTY MORE PEOPLE CONFIRM SEEMING FRAUDULENT TRANSACTIONS INVOLVING WESBANK FINANCING 1. Introduction Our meeting of the 10th of May 2018 regarding Mr Mzukisi Ndara’s complaint and subsequent correspondence refers. You will recall that I addressed an open letter to you in May last year that contained serious allegations of impropriety and possible fraudulent misconduct occasioned by officials that were acting on behalf of FirstRand Bank, trading as Wesbank. The vehicle sale deal that was concluded with Mr Ndara, on the face of it, carried fraudulent misrepresentations that have led to untold financial harm and prejudice to him and his family for fifteen years; this year. The letter I wrote to you was also posted on my social media platforms provoking a flurry of activity largely condemning the conduct of the bank. 2. Context You consequently invited Mr Ndara and I to a meeting to discuss this matter further. We met at Wesbank’s headquarters at Fairlands in Johannesburg. Apart from you absolving the bank of all responsibility, and partly blaming the dealership, you were unable to debunk the authenticity of what Mr Ndara contended. Instead, pursuant to him narrating what had transpired, during and post the conclusion of his vehicle sale deal you said that “if it is true what you are saying, and its accurate, then I must sympathise with you because you will have been done a grave injustice”. In order to eliminate in your statement, the suspensive condition “if” Mr Ndara took the trouble to furnish your legal officer, Mr McLellan, with the documents that relate to his matter, his utterances when he saw them, was “it is the first time I am seeing these documents”. This is yet another statement that begs the question: Does FirstRand bank value its reputation as a corporate citizen in this country and if so, why doesn’t it redress what are clearly gross violations of Mr Ndara’s constitutional rights? Sir, I have had to answer this question myself. Shocking as this may be, scary as this may sound, the balance of probabilities points to Wesbank having used this approach as its modus operandi to seemingly swindle a significant number of South Africans from their hard-earned money. It came as a shock to the system, when Mr Ndara told me that Mr Prishen Ramsamay and Mrs Cheryl Moosa contacted him to say that they had been trying to locate him since the time I had posted the first letter to you. There are now at least thirty other people who have been party to vehicle sales transactions borne out of alleged fraudulent misrepresentations; destroying many people’s lives in the process. All these seemingly fraudulent transactions that were initiated at the BMW Melrose Arch Dealership in Sandton were predictably all financed by Wesbank. The shocking details of some of these transactions are contained here below. This group of ordinary South Africans whose demographics constitute a rainbow nation, have come together under the banner “Crusaders for Justice” Stop Bank Corruption. 3. Legislative framework In my first letter to you, whilst I am by no means a legal eagle, I ventured an opinion that asserts that, on the face of it, you do not require intimate insights of jurisprudence to understand that a bank cannot approve finance for a new car and the customer receives and pays for a used vehicle, in order to discern fraud. Surely it is not that difficult. My opinion aside, the first reason that points to Wesbank having possibly gone rogue is simply the nature of the transactions they have concluded with the members of Crusaders for Justice. Some of these transactions have violated so many provisions of the National Credit Act of 2007 and its forerunner, the Credit Agreements Act of 1980. The National Credit Act (Act No. 34 of 2005) Section 90 is entitled: “Unlawful provisions of Credit Agreement” and it reads as follows; 90. (1) A credit agreement must not contain an unlawful provision’ (2) A provision of a credit agreement is unlawful if – (a) its general purpose or effect is to – (i) defeat the purposes or policies of this Act; (ii) deceive the consumer; or (iii) subject the consumer to fraudulent conduct; (b) it directly or indirectly purports to – (i) waive or deprive a consumer of a right set out in this Act; (ii) avoid a credit provider’s obligation or duty in terms of this Act (iii) set aside or override the effect of any provision of this Act (iv) authorise the credit provider to; (aa) do anything that is unlawful in terms of this Act; or (bb) fail to do anything that is required in terms of this Act; (e) it purports to make the agreement subject to a supplementary agreement, or sign a document, prohibited by section 91 (a) (g) it purports to exempt the credit provider from liability, or limit such liability for- (i) any act, omission or representation by a person acting on behalf of the credit provider. In summary, all these provisions refer to a credit provider, and in everyday language a credit provider referred to above is a bank. Banks in terms of the law must not violate any of the provisions above. Hence, we can boldly say, FirstRand Bank has seemingly broken the law in many instances and on many occasions. The Bank is not above the law. 4. What has the bank done? Wesbank’s modus operandi is as follows; at least according to the lived experiences of the members of Crusaders for Justice; • Most people were induced into these unlawful deals or contracts; the National Credit Act also deals with inducement as being unlawful. • There are seemingly fraudulent misrepresentations in most, if not all these deals, with the following examples: ? The dealership processed a car for finance as if it is brand-new and this is approved by the bank, yet the vehicle is used. The consumer is invoiced for a brand-new car, whilst the dealership agents and the bank are aware that there appears to be misrepresentation; in fact, there is alleged fraud (as in Mr Ndara’s case). ? There is a member of Crusaders for Justice, who was a first-time buyer but, in his contract, the bank purports that he traded in a vehicle and yet that is not the case (as in the case of Devy De Klerk). ? The most common of these alleged unlawful practices, we have come to learn, is what is called loading or adding onto the price of a vehicle, what is normally known as “extras”. An extra in a vehicle, is a material enhancement the customer requests of his/her own volition over and above the cost of the vehicle i.e. an additional item, at an additional cost. Extras under normal circumstances would be things like cruise control, bull bars, metallic paint, sunroofs, air-conditioning, boot spoilers, etc. The buyer would then be advised of the price of each of these extras so that he/she can make an informed decision on whether it was desired. Some members of the Crusaders for Justice had all manner of extras added on to their contracts without them even knowing that they were so-called extras. These include Group Life Insurance at R25,900 (M Ndara) and a digital braking system at a cost of virtually R60,000 (Cheryl Moosa). In some cases, some of the contracts were padded with these fictitious extras to an additional total amount of R150,000 per vehicle. ? The National Credit Act also refers to consumers being induced into signing supplementary agreements, as if these were obligatory. And, unwittingly through trust and naivety, people sign only to find they are being defrauded and further prejudiced. There are some that are paying instalments of R30,000 for having concluded car deals, in some cases up to R50,000 (Mr Siva Pather). Sir, I have taken the trouble to write to you again. As previously, giving you the benefit of doubt to say, you may not be aware, maybe Mr Ndara’s matter was an isolated incident. However, with these latest revelations, nothing can be left to chance. This needs to be probed as it now comes across as a deliberate and planned scheme to rob people who least suspect that a reputable bank is capable of such. 5. Do the banks know? I have in my possession a High Court judgement handed down on the 16th of May 2013 by the KwaZulu-Natal High Court, in Durban, Case No 2142/2009 in the matter between: FIRSTRAND BANK LIMITED t/a WESBANK as plaintiff and DUAL DISCOUNT WHOLESALERS CC as defendant. In a nutshell, Wesbank in this case took to court a dealership in Durban that had misrepresented the price of a vehicle, as a result of which Wesbank paid more than the value of the car and ended up charging a consumer through instalments more than what the car was worth. Simple and straightforward. When the consumer discontinued payments the bank repossessed the vehicle and, in that process, discovered that in this contract there was fraudulent misrepresentation regarding the price of the vehicle, so they invoked what is called a “master agreement” that regulates transactions between dealerships and banks. These master agreements ironically protect the consumer against such conduct. Needless to say, Wesbank was successful in this action and the dealership carried liability. What defies logic is the principles that underpin this case have not been applied to all these complaints lodged by this group of people. And this is clearly a precedent that demonstrates what should obtain and what steps should have been taken against all dealerships by the bank. 6. Conclusion In our meeting you harped on the fact that you have a judgement against Mr Ndara on case number 3180/2013 underway at the Grahamstown High Court, wherein on the 3 March 2015 Judge Elna Revelas upheld the bank’s Special Plea of Prescription against Mr Ndara’s application against the Bank. Further to that, the Bank obtained a judgement on the 18th of August 2015, dismissing Mr Ndara’s Application for Leave to Appeal Judge Revelas’ decision. A new team of lawyers for Mr Ndara discovered in May 2018 that the judgement the Bank had obtained in August of 2015 was sought through underhanded means, it was erroneously sought and granted in the absence of Mr Ndara’s legal team and without even a Notice of Set Down served on them. Invariably it was set aside by Judge Buyiswa Majiki in August of 2018. The Bank’s appeal of the same judgement was dismissed with costs on the 12th of March this year. Sir, with due respect, is all this necessary? What do we make of the sacrosanct corporate governance associated with the banks in this country which you purport to subscribe to? It is now an open secret that Mr Ndara’s saga is a drop in the ocean, as clearly there are many, many others whose documentation is in our possession. I am now appealing to the shareholders of FirstRand Bank to assist you to do what is right for the benefit of us all. Redress for all these people who have been done wrong is the first step in my view that is non-negotiable. I also call upon the South African public, political and leadership of all self-respecting organisations to call out First Rand Bank for these unlawful acts against ordinary citizens. The all-round condemnation of anyone who was involved in the VBS scandal is commendable. Corruption is corruption by any other name, so let us join the call for Wesbank to be held accountable and answer openly and honestly to these accusations. After all, Wesbank operates on a license granted by government, and is regulated like all other companies in this country. Mr De Kock, I shall eagerly await your response to this matter before we take it further. We look forward to your response. Mr Bantu Holomisa, MP UDM President
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01 Aug, 2019
Bantu Holomisa, MP and UDM President’s address at the BPI Foundation’s 2019 Summit
Bantu Holomisa, MP and UDM President’s address at the BPI Foundation’s 2019 Summit on 1 and 2 August 2019 at the Midrand Conference Centre Topic of discussion: “The oneness and shared success we seek and should aspire to as a new nation and developing country, while battling with deep wounds of our historical atrocities” • Our hosts at the BPI Foundation • Fellow speakers • Ladies and gentlemen 1. Thank you Thank you to the BPI Foundation for allowing me to talk to you today and share the stage with a variety of great minds discussing an interesting array of topics. It’s an honour. 2. Talking about history To say that South Africa still bears the scars of colonialization and Apartheid is obvious; but it still bears saying. To nay-say this history and its impact on the South Africa of today is denialist and foolish. Some say history is just that; history. But good or bad, history keeps us aware of what should never be repeated and what worked. It also teaches us what our priorities should be. I mention this specifically, because if we had – for instance – tackled the land issue timeously, we could have avoided the entire drama that is playing out at the moment. It could have gone a long way in addressing some of the economic ills of our time. If we keep history at the back of our minds, we know where we come from so that we can know where we are going. The reason I make these points is that we need to think constructively about creating a prosperous country. Yes, we must be sensitive, but we can make an active choice to not wallow in our past. We can decide to roll up our sleeves and work towards making South Africa a winning nation. I say this, because our children and future generations will hold us responsible for the decisions we make. Each of us alive today must make the best choices possible for a prosperous South Africa. 3. Leadership in post-Apartheid South Africa I think we started off with this project we called “The New South Africa” on the right track. But we got lost or waylaid, especially in the past ten years or so. But let me quickly add, in all fairness, that 25 years is not a long time in terms of what established, modern democracies look like. We might lay the blame for this ambushed project at several possible doors, but to my mind being a politician, much of the blame can be apportioned to weak and/or corrupt leadership – starting at the highest level, right down to local government. You will agree with me that, if the commander of the army is directionless and corrupt, the lower command and troops will follow instructions; or worse, follow suit. We see evidence of this mind-set and institutionalised corruption in the testimony we hear at both the Zondo and the Mpati Commissions. Our newspapers are flooded with tales of people in positions of power who have succumbed to wrongdoing, including those in the private sector. Given that greediness, reward and compensation were the prime policies of past 25 years, you will find that the poor are progressively more agitated by empty promises. In some corners these policies are called deployment and patronage, but it not only ransacked government coffers in the process, it also elbowed-out people with skills and experience. However, this behaviour has not escaped the notice of the poor. One cannot deny that, in simple terms, the poor of today is different from the poor of the past who were easily manipulated. I think this is evidenced by the sheer number of satellite dishes one sees in the villages, townships and informal settlements. Gone are the days where the poor’s only source of information is party propaganda. They are now more informed and better educated about their rights and the basic services they are entitled to. Even if you watch their interviews on television, you can hear that people are articulating themselves well. South Africa has been burning for some years now, with people more aggressively protesting about service delivery. It is worrying though that once they start resisting law enforcement, and we have already seen this happen, it looks as if we are entering the second stage of the revolution. More often than not, anger and frustration boil over with private and government buildings and property being damaged or destroyed. In all seriousness, we are staring anarchy and lawlessness in the face. This is where one starts to ask whether the centre is holding. Do the people who have been given a mandate to run this country, know what they are doing? I think that South Africans are not going to wait another 30 years to read through the lies and recognise that they are being led by clueless and corrupt leaders. One thing that is certain, when the ANC was given power in 1994, they might have been politically ready, but not in terms of technocracy and the civil service. They were caught off guard. We know this, because some of those people, who hail from the same political party, are now subject to the commissions of inquiry. 4. Eradicating corruption If one likens corruption to a boil, it is best to lance it, as soon as possible… even if it’s painful. It is therefore better that we have the Zondo and Mpati Commissions at this point in time – let all the pus be drained, so that we can start afresh. The only wish I would have had, is that this process should have started sooner. Having said that, I would also wish that these commissions be given enough time to get to the bottom of the rot and that no-one should be spared. The next important step, to my mind, is that the guilty must be brought to book. I made a suggestion to the President (in the recent Budget Vote on the Presidency) to have a meeting with the commissions, to assist in what I called “Phase 2” of the process. In this proposed meeting, I suggested that the President discuss with the commissions, how law enforcement agencies and the auditor general, could be involved in giving them some bite to their bark. The final, long-lasting outcomes of these commissions could be: 1) upping the checks and balances to deter the would-be corrupt and 2) creating special instruments, like dedicated courts that only deal with corruption. 5. Is it possible to build a nation? I want to quote a translation of an academic article that I was recently shown, written by one H.O. Terblanche about Port Elizabeth in the 1920’s and 1930’s. “Two factors were mainly responsible for the impoverished rural Afrikaner’s trek to the city, namely rural impoverishment and urban industrialisation. Most of the poor whites were unskilled or semi-skilled workers. White unemployment was rife in Port Elizabeth during the 1920’s and 1930’s. Only a small percentage of the whites owned their own homes. Overcrowding was a common phenomenon. Korsten and Sidwell was in actual fact one big slum. The health conditions were shocking. Community poverty also adversely affected the urban Afrikaner as regards education. Many impoverished Afrikaners in the city thus developed a feeling of inferiority.” Without trying to be controversial, does this description not sound familiar? It is as if this article describes modern day South Africa, almost a century later, for blacks. There is a lesson to be drawn from this part of the history of the Afrikaner i.e. how they managed to pull themselves up by their socks and actively did something about their problems. They had their own Marshal Plan and implemented it with great success. They did this without fear or shame; so why is our government shy of doing the same and on the same scale? Maybe corruption is too much of a debilitating factor, but the past has proven that transforming a nation, in a relatively short space of time, is doable. 6. Hosting an Economic Indaba One of the problems we have, in the running of our economy, is that many family owned companies have either fled our shores or have closed down, because government withdrew incentives or because their owners left because of our high crime levels. Some did not agree with the political changes after 1994. These companies were responsible for generating and sustaining thousands and thousands of jobs. If we expect our population of 57 million people to be sustained through companies currently on the playing field, we are wasting our time. The situation is also aggravated by the brain-drain, which, these days has no colour. We are losing far too many South Africans to other economies in the world. These are the kind of matters which should pressurise government into taking the lead in organising an economic indaba, where all stakeholders can meet, to emerge with a Marshall Plan for the South Africa of today. 7. Conclusion The desire to live in an equal, peaceful and prosperous South Africa is undoubtfully universal, irrespective of which political party one votes for. The question is how do we get there. Maybe, with the few ideas I’ve mentioned, we can achieve this. I thank you
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08 Jul, 2019
Holomisa writes to PIC Commission re alleged R2.5m personal loan from VBS to Dr Dan Matjila, former PIC boss
Dear Advocate Lubbe SC DR DAN MATJILA’S EXPECTED TESTIMONY AT THE MPATI COMMISSION: FURTHER GERMANE INFORMATION RECEIVED FROM A WHISTLE-BLOWER I herewith acknowledge receipt of your email, dated 6 July 2019, wherein you informed me that – according to the rules of the commission of inquiry into allegations of impropriety regarding the Public Investment Corporation (‘the Commission’) – I may today be implicated in evidence to be submitted by Dr Dan Matjila, former Chief Executive Officer of the Public Investment Corporation (PIC). I wish to inform the Commission about information that has been provided to me by a whistle-blower regarding an alleged forensic review report (dated 15 April 2019) (‘the report”) as commissioned by the PIC board from Nexus Forensic Services regarding a VBS Mutual Bank investment transaction. 1. According to the alleged report, Dr Matjila, together with the PIC’s former chief risk officer Paul Magula and the head of legal Ernest Nesane received loans from VBS Mutual Bank. The allegations about the loans to the latter two gentlemen have been widely reported on in the media. 2. Dr Matjila has never declared a VBS Mutual Bank loan allegedly extended to him, to the value of R2 456 761.66, as required, which may constitute a conflict of interest and even possible criminal conduct. 3. The term of Dr Matjila’s loan is alleged to be a thirty (30) year period, which raises the questions whether a) the loan was extended at arm’s length and b) such a lengthy repayment period was the standard for VBS Mutual Bank? 4. In terms of the conditions of the loan, it is allegedly unclear whether the loan was intended to ever be repaid, or whether it is/was in fact being repaid. The only way to establish the veracity of this allegation is to scrutinise the dates of disbursement and repayment. 5. If there is any truth in these allegations, it raises serious concerns about Advocate Terry Motau SC’s report called: “The Great Bank Heist”. Why did Advocate Motau’s report omit Dr Matjila’s alleged loan, especially given his position as PIC CEO? 6. Why did Advocate Motua’s report exclusively focus on Messrs Magula and Nesane? Common sense would dictate that Advocate Motau would have declared Dr Matjila’s alleged loan even if no wrongdoing was apparent. 7. The alleged report apparently states that Dr Matjila holds ten directorships, but according to the whistle-blower, around two have not been disclosed as required. 8. As we all know, Advocate Terry Motau’s report revealed that a cash sum of R5 million was apparently “stolen” from VBS Mutual Bank, allegedly to bribe Dr Matjila to obtain his cooperation in facilitating the funding of VBS Mutual Banks’ requirements by the PIC. Famously, the money was reportedly carried by helicopter from Makhado to Lanseria Airport. If the alleged report is anything to go by, one could argue that Dr Matjila had personally benefitted from nearly R7.5 million of VBS Mutual Bank money. 9. Nexus Forensic Services’ alleged report apparently recommended that the PIC board should pursue criminal investigation. If that is true, the question is what has the board done about this recommendation and if nothing, why? Lastly and with respect, given the information the whistle-blower has imparted to me, I wanted to establish whether the Commission is aware of this alleged report and if not, could the Commission make enquiry into obtaining the said report to assist in its investigation. Yours sincerely Mr Bantu Holomisa, MP UDM President
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03 Jul, 2019
The UDM in KwaZulu-Natal calls on the IFP to come clean on its forever lasting investigation of its uMzinyathi District Municipality Mayor
On 24 May 2019, the United Democratic Movement (UDM) exposed, in the form of recordings, the until then, widely speculated allegations of corruption of the Inkatha Freedom Party’s (IFP) uMzinyathi District Municipality Mayor. The allegations pertained to the siphoning off of funds from that municipality. In an Isolezwe newspaper article on the 3rd of June, IFP Spokesperson, Mr Mkhuleko Hlengwa, was quoted saying that the IFP was investigating the matter. On 7 June, during a live talk-show hosted by Ikhwezi FM, the mayor, who was cornered by the UDM KwaZulu-Natal Interim Provincial Secretary, admitted that the voice on the recordings was his. He therefore owned up to the content of those recordings. More allegations of corruption, where the mayor was involved, were published by the Daily Sun on 28 June. Mr Hlengwa was again quoted saying that the IFP was investigating that matter too! The IFP does not seem to be in the least concerned about these compromising claims and allegations about their deployed mayor, whom has apparently rendered the district as a total failure in the core function of providing water to this community; yet the yearly budget is committed and exhausted without any provision of what it was earmarked for. The UDM calls on the IFP to come clean about whether its mayor is siphoning off funds from this municipality’s service providers as a directive from itself or not. If not, the IFP must respect the community of the uMzinyathi district by removing their seemingly corrupt mayor with immediate effect and conclude its never-ending and ineffectual investigation into these allegations. Statement issued by Mr Boysey Gumede UDM KwaZulu-Natal Interim Provincial Secretary
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24 May, 2019
Funds allegedly siphoned off from uMzinyathi district municipality service providers
The United Democratic Movement (UDM) in KwaZulu-Natal, is appalled at a recording we have in our possession, where the voice of the uMzinyathi district mayor is allegedly having a fishy conversation with one of the municipal executive managers. In the recording, it sounds as if the mayor instructed this official to confront the municipal manager about funds that the municipal manager had apparently siphoned off from two municipal service providers (allegedly to the tune of R1,8m and R3m respectively) but had apparently failed to pay it over to the Inkatha Freedom Party’s coffers. Even though the speaker did not mention the IFP by name, he simply referred to ‘Umtwana’, it is common cause that both the mayor and the municipal manager are IFP deployees. This kind of tapping of funds, raises a lot of questions e.g. 1. Is the awarding of municipal tenders, legitimate and above board? 2. Are these service providers’ work of compromised quality to make room for kickbacks? 3. Were the earmarked development projects started off at all? The UDM reiterates its view that corruption remains corruption even if it is not committed by the usual suspects like the alleged VBS looters, and the Bosasa and PIC scandal mongers. The UDM in KwaZulu-Natal will gladly make the recording available to the mayor and invites him to explain the content of the voice clip. Issued by Mr Boysey Gumede Interim Provincial Secretary UDM in KwaZulu-Natal
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12 Apr, 2019
Bantu Holomisa speaks at a Unisa panel discussion on the 2019 general elections
• Our hosts today • Dr Somadoda Fikeni, our moderator • Those who represent the various departments that sponsored this panel discussion • My colleagues from other political parties • Academics and students • Ladies and gentlemen Thank you for affording me the opportunity to have a chat with you today. 1. The UDM’s road of success The United Democratic Movement (UDM) has since its inception batted on the wicket of the ethics of good governance. In fact, the UDM in part owes its beginning to that principled stance. My testimony at the Truth and Reconciliation Commission, about corruption in the former Transkei, got me unceremoniously kicked out of the African National Congress, because I refused to recant. Soon after that, the UDM was born and we have not stopped fighting for what is good and right in this world: • We opposed the immoral floor-crossing legislation that was eventually scrapped. • We succeeded in having the Independent Electoral Commission’s former Chief Electoral Officer, Pansy Tlakula, resign because of an irregular lease agreement she organised. • We were part of the legal action taken to preserve and protect the former Public Protector Thuli Madonsela’s report on state capture. • The UDM was the catalyst that saw coalitions form after the 2016 elections. • We did our part in forcing the former president to vacate his office, specifically taking the matter of the secret ballot to the Constitutional Court and organising one of the biggest marches to the Union Buildings. • The UDM were there with our colleagues from other opposition parties when we asked the Constitutional Court to order parliament to consider the former president’s conduct and whether he is impeachable. • We have asked President Ramaphosa to intervene in the malfunctioning and corruption-ridden SETAs. Nothing has yet been done about it, but we won’t give up. • Various communities will attest to the fact that the UDM has intervened on their behalf to have government, at municipal, provincial and national levels, attend to their service delivery complaints. • Most recently, the UDM exposed alleged corruption at the Public Investment Corporation amounting to billions of rands. This directly led to the establishment of the Mpati Commission of Inquiry at which I am sure you saw me testify. Once again at our post guarding against corruption. These are the actions of a party that is opposed to pervasive corruption, maladministration and malfeasance in government. 2. Fighting government corruption It is a sad reality that South Africans have become jaded when they talk about government corruption. There is too much of it and it’s demoralising our nation. They only sit up and listen when “things get serious”, as we see with the current commissions of inquiry. Things are indeed very serious with billions of Rands at play. For the UDM, integrity, commitment and hard work are required from everyone in government, as well as those in the private sector. No quarter shall be given to those who fail. Rewarding party loyalty is an evil, that should become a thing of the past. The best quality must be ensured in all appointments, so that merit, responsibility and integrity is guaranteed, and excellence is rewarded. Specifically, the UDM believes that special courts must be established to investigate and prosecute the corrupt in the public and private sector. Also, each province must have an independent anti-corruption task team to determine the depth of corruption and to immediately act. 3. Safety and security For the UDM, the long-term solution to crime and violence lies in our people committing to a concerted effort to reform our society, so that we do not simply address the symptoms, but also the root causes. Although there are a number of initiatives that the UDM would introduce to bring about safety and security, I wish to highlight two specific strategies for the purpose of today’s discussion. a) As far as we are concerned, the recruitment processes of the police, defence and intelligence services must be revamped. The aim of such a programme will be to allow communities to participate in keeping their environments safe and secure. Individuals who are interested in a career in law enforcement will be trained and assigned to serve their communities. This will allow for the monitoring of crime, the gathering of intelligence and combating lawlessness, whilst also creating much needed jobs. b) The coordination between the ministries of justice, police services, correctional services, defence and national intelligence must be stepped up. The UDM proposes that a crime prevention ministry be established to coordinate the work of these departments. Specific objectives and deadlines must be set for the departments to achieve their goals. 4. Free education • The UDM supports fee-free tertiary education for students from poor and working-class families. Such an expanded programme can be justified economically as free education is a strategic economic driver, because it is an investment by the state in the creation of a larger tax base in the long run. However, once implemented under a UDM government, students’ progress shall be monitored and managed as an investment. • We also think that the National Student Financial Aid Scheme (NFSAS) is a big flop. It is hamstrung by chronic maladministration, corruption and a jobs-for-pals leadership scheme. In addition, the way in which NSFAS is structured produces graduates who end up mired in debt. Because of our under-performing job market, they will remain indebted with no hope of repaying their loans. Of course, the biggest challenge at the other end of this education process is making sure that our graduates have jobs. 5. Job creation The UDM has always said that a massive initiative focussing on job creation through infrastructure maintenance and development is one of the routes to go. This planned sustainable development project must be driven through the department of public works, in collaboration with all other departments. Furthermore, the UDM’s response to the challenge of unemployment includes: • Identifying markets for small firms, through promoting domestic and foreign connections to adequately address both the supply and demand side of the economy. • Developing capacity in the areas of improved business and entrepreneurial skills. • Identifying loan and capital sources, as well as facilitating loans and investments in community businesses. • Investing in sector-based planning and implementation, including the creation of sector-specific banks to provide financial assistance to historically disadvantaged groups and individuals. 6. Xenophobia Xenophobia in South Africa is not a new thing and, as a matter of fact, it is getting worse by the day. There are multiple causes of xenophobia, but at the risk of over-simplifying the matter, the UDM is of the view that the root cause lies in the unregulated and unfair competition for the poor’s meagre resources. The dearth of jobs is, for instance, part of this dynamic and complex situation. On the one hand, undocumented immigrants are exploited, because they are desperate enough to work for low wages. And, on the other, there are no job opportunities for South Africans that pay a decent wage. To add to the complexity of the matter we have the issue of undocumented foreigners illegally occupying dwellings. The owners of such buildings, should be brought to book as they exploit undocumented immigrants and, by default, also deprive South Africans of safe havens. Like it or not, much of the blame is to be laid at government’s feet as the impact of its inadequate control over the arrival of illegal immigrants, and lack of resettlement mechanisms, are not addressed. A UDM government will handle illegal immigration in a humane and holistic manner, in line with our continental and international obligations. We also make a call on undocumented immigrants to come forward and be registered. Finally, we recognise that legal immigrants contribute immensely to our society and our economy. We are home to, for instance, some of the best educators and academics who impart knowledge and do important research and development. The UDM believes that xenophobia has no place in our society, but we must also be cognisant of our responsibilities to our own people. It is entirely possible for both these ambitions to work harmoniously. 7. An Economic Indaba with land at the apex of its work As we worked on establishing a new South Africa, land was placed on the backburner. Political emancipation was our primary goal at that time. Land, as a tool to achieve economic emancipation and make reparation, should have been addressed straight after liberation. Matters would look very different if the land issue had been addressed timeously. We certainly would have avoided the destructive tug-and-pull we now witness. When the National Assembly took a resolution on the expropriation of land without compensation, the UDM voted in favour of this resolution after it was amended. The UDM certainly did not vote for free-for-all land grabs and evictions. In this regard, the UDM has long promoted the view that the matter can only be effectively resolved at our proposed Economic Indaba, where all stakeholders can congregate to discuss South Africa’s macro economy, with land at the apex of the debate. There are a number of pertinent questions that should be answered before we make any rash decisions. Those are, amongst others, the following: • Who exactly (individuals, companies and/or government) will be affected and how? • How does food security and economic stability impact implementation i.e. does it prevent expropriation in specific circumstances, and what those would be? • How will government handle rapid urbanisation and an ever-increasing need to make land available in cities and the concomitant denuding of rural communities and local economies? • How will traditional leaders and rural communities be affected? • How will entities such as the Ingonyama Trust be impacted? 8. Closing With these few words I leave you and invite you to ask me any questions you wish me to answer. Thank you
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06 Apr, 2019
#ShutAlexandraDown civil protests is the ANC’s legacy
The United Democratic Movement (UDM) has noted the volatile situation in Alexandra, Johannesburg. Much of this unhappiness stems from the African National Congress’ (ANC) misuse of billions of Rands allocated to the Alexandra renewal project during the era of former President Thabo Mbeki. RDP houses in Alexandra Extension 7, were apparently sold to non-South Africans and this explosive situation has the potential to spill over to xenophobic attacks. In addition, the ANC had relegated hundreds of families to live in shacks in the informal settlements, depriving them from living a life of dignity and prosperity. The irony is that the ANC is leading this protest, using it for electioneering at the expense of the poor residents. The ruling party has done this country immeasurable damage with its don’t care attitude. Come 8 May 2019, the electorate must make an enlightened decision and should not vote for it. Issued by: Cllr Thandi Nontenja UDM Councillor in the City of Johannesburg
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05 Apr, 2019
Mpati Commission should look at GEPF and PIC investment in Sibanye-Stillwater
The United Democratic Movement (UDM) wishes the Mpati Commission to take a deep look into the investment linkages between the Government Employees Pension Fund, the Public Investment Corporation and Sibanye-Stillwater. Sibanye had acquired the Stillwater Mining Company and is located and managed in two regions i.e. Southern Africa region and the United States region. We understand that the Government Employees Pension Fund (GEPF) and the Public Investment Corporation (PIC) has invested in Sibanye-Stillwater. The questions the UDM wishes the Commission of inquiry into allegations of impropriety regarding the Public Investment Corporation to ask, are, amongst others: • How much of the GEPF and the PIC’s monies are invested in this deal? • How much of that money lies outside our borders? • How was the deal structured and what does this mean for government workers’ pensions? • Why is Sibanye-Stillwater hellbent on retrenching South Africans thus jeopardising the future of hundreds-of-thousands of mineworkers, especially considering the impact that retrenchments have on these families where those salaries are their only source of income. To get to the bottom of the matter, the Mpati Commission should summon the aforementioned parties to testify before it, as well as the Association of Mineworkers and Construction Union which have made allegations of wrongdoing in the company. Issued by: Mr Bantu Holomisa, MP UDM President
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29 Mar, 2019
Personal bribes paid to ruling party top 6?
The latest shock in the state capture debacle, that some of the ruling party’s top 6 had allegedly personally pocketed millions of rands from Bosasa coffers, will undoubtedly have a very negative effect in the eyes of potential investors. The whole system is contaminated. Given that President Ramaphosa could possibly be implicated, seriously jeopardises South Africa’s current administrative machinery, and will erode the last shred of dignity it possesses. The country is sick and tired of wave upon wave of corruption revelations crashing down on us. This causes the nation anxiety about the future of our country. We also note that, former Bosasa COO Angelo Agrizzi is quoted saying that: “I know of large donations given to the top 6 at one stage of 10 to R12 million…”. At how many “stages” were the top 6 allegedly bribed? The United Democratic Movement therefore advises President Ramaphosa and Justice Zondo to urgently get the police, the Hawks and a team of forensic auditors involved at this stage. A docket must be opened so that the NPA can decide if these alleged villains can be prosecuted. Issued by: Mr Bantu Holomisa, MP UDM President
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07 Feb, 2019
UDM KZN: KwaZulu-Natal’s “missing” R220 million drought relief funds
The R220 million, that was meant to give drought-stricken communities and farmers in KwaZulu-Natal some relief, has seemingly vanished in a flourish of orchestrated thievery. This situation has, for instance, had a devastating effect on the Pomeroy Community Health Centre in Msinga which must keep water in dustbins just to flush toilets. It also is a great disappointment that four years have passed without the incumbent opposition parties in the KwaZulu-Natal legislature raising the issue of the “missing” R220 million drought-relief funds. If it had not been for the media making noise about it, the public would have been none the wiser. This is a similar scenario to where it was alleged that R300,000 of a R28 million allocation for the North Sea Jazz Festival made its way into the ruling party’s current deputy provincial chairperson, Mike Mabuyakhulu’s pockets. Yet, the serving opposition parties kept mum which raises ugly questions about trustworthiness. Firstly, R220 million cannot just disappear into thin air and secondly, there must be a paper trail. It cannot take four years for someone to take a physical walk to the finance department to look at the batch of documents that would have been prepared to authorise payments. It cannot be denied that corruption and alleged corruption committed by those mainly in the ruling party’s administrations (be it at local, provincial and national government levels) is prevalent. It is as if the word “corruption” has become synonymous with the name of the ruling party. Hence, the so-called self-correcting nature of the ruling party has become a flimsy expression that is automatically spouted when they are in trouble. The United Democratic Movement in KwaZulu-Natal calls on MEC for cooperative governance and traditional affairs Nomusa Dube-Ncube, the ruling party, and all opposition parties in the legislature to at least respect voters’ intelligence and let the public know what is going on under their watch. We, accordingly, encourage the voters of KwaZulu-Natal to punish both the ruling party and all current opposition parties as it seems that they are all working together in stealing from the public. Issued by Mr Boysey Gumede Interim Provincial Secretary UDM in KwaZulu-Natal
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06 Feb, 2019
R116m of the PIC’s money to allegedly be spent on UWC student accommodation without due diligence
Dear Honourable Minister Mboweni REQUEST FOR THE URGENT INTERVENTION ON THE POSSIBLE IRREGULAR FUNDING OF IKHAYA STUDENT ACCOMMODATION (PTY) LTD BY THE PUBLIC INVESTMENT CORPORATION The above has reference, and I attach hereto relevant documents for your ease of reference. The referenced documents suggest, amongst others, that: 1. Based on an email dated 4 February 2019 from the Public Investment Corporation’s (PIC) Roy Rajdhar to some George Blackenberg, it appears, that the PIC is on the verge of transacting an amount exceeding R116 million, purportedly for the construction of student accommodation for the University of the Western Cape (UWC). 2. Disturbingly, there does not seem to be an existing approval and due diligence. Neither is there an approval by UWC council. According to the letter dated 30 May 2018, and signed by the UWC Head of Legal Service, such a project would be subject to the approval of the Executive Management, the Council and reported to the Minister of Higher Education. Without confirmation of these provisions, it is surprising that the PIC is on the verge of funding this project. 3. Furthermore, the two registration numbers which are (2007/025898/07 and 2013/144938/07- found in the referenced documents) have been listed under the Ikhaya Student Registration Company and appear to be inconsistent with the company details. 4. According to the attached document, titled “STRICTLY PRIVATE AND CONFIDENTIAL – Indicative Term Sheet Issued by the PIC to the Ikhaya Student Accommodation Proprietary”, signed by the PIC’s Roy Rajdhar (Executive Head: Development Investment) and Rodger Lionel Hendrick, (Chief Executive Office of Ikhaya Student Accommodation), may shed light for your ease of reference. 5. With regard to Rodger Hendricks, it is alleged that he has been sequestrated by a court of law in a separate case dealing with student accommodation services within the Cape Peninsula University of Technology (CPUT). It would be apt to establish, at this time, his alleged historical conduct for the purposes of this investigation in order to provide a character assessment. 6. According to our quick search with the Companies and Intellectual Properties Commission (CIPC), this company include Dennis Henry George, Michelle Xaviera Gabler and Carl Liebenberg as active directors. Find attached the results from CIPC. The inconsistence on the registration numbers referred to above may be clarified by these directors. Accordingly, I request your good office to: • Stop any envisaged financial transaction as per the email dated 4 February 2019; and • Subject the entire transaction to the current PIC enquiry. I will be pleased to be advised on the steps taken by your office at all material times. Sincerely yours, Mr. Bantu Holomisa, MP President United Democratic Movement
Admin
05 Feb, 2019
An Alternative State of the Nation: Holomisa addresses the Cape Town Press Club
Address by Mr BH Holomisa, MP and UDM President regarding an Alternative State of the Nation at the Cape Town Press Club • Chairperson • Ladies and gentlemen 1. Introduction We are grateful to be part of this engagement exploring the very important subject of the true state of the nation. We are just three months away from the 6th democratic elections in South Africa, which means that electioneering has begun and that all political parties are roaming the streets with their manifestos. We invite you to the launch of our manifesto on the 16th of February in Port Elizabeth. You can participate through personal attendance, the mainstream media and social media platforms. It is in this manifesto that the United Democratic Movement (UDM) will address the true state of the nation and project our vision for South Africa’s future. 2. The status quo South Africa has fast diminishing hopes of being able to respond to the triple threat of acute poverty, ever-rising unemployment and inequality. Our massive socio-economic problems remain glaring after 25 years into democracy. Furthermore, the pace at which the governing party is developing South Africa, takes a back seat to corruption. The reality is that South Africa is swamped in corruption scandals that extend its poisonous tentacles in almost all state institutions with little hope that there will be consequences. We are a nation of commissions of inquiry, because the governing party has decided to put itself and its corrupt leaders at the top of government’s agenda rather than serving the people. If my numbers are correct, we are currently dealing with three major judicial commissions (NPA – Mokgoro Commission, PIC – Mpati Commission, State Capture – Zondo Commission) and endless other investigation such as those into VBS, the HAWKS and Eskom. These commissions reveal that governance systems have collapsed due to brazen looting. We have also seen that state intelligence and law enforcement agencies have no absolute commitment to hold those accused of wrong-doing accountable. This is as a result of the governing party’s deployment policy. Instead of owning up and showing respect for the nation, the governing party, led by its president and finance minister, further insult the nation and solely place the blame for South Africa’s mess, squarely in the Zuma court when in fact they were also leaders. They attempt to hide behind any of their own goals by attributing it to the legacy of their former leader. South Africans must remember that the removal, of the African National Congress’ (ANC) sponsored head of state, was an initiative of the opposition parties supported by several civil society organisations. This initiative was fiercely opposed by the ANC on all fronts. Be reminded of his nine lives when he was defended by the ANC in nine votes of no-confidence. Whilst the governing party remain haunted by his presence, who is either a critical element, if not the face of their campaign, we must move forward and move with speed. We have not forgotten that more than 80% of the current ANC leadership was in the national executive and this fact was exposed in the Zondo commission when Ngoako Ramatlodi found it extremely difficult to distance the party from the looting that has robbed the nation of its resources. South Africa’s development trajectory has been significantly reversed by the governing party. We have less of their so-called good stories to tell. Instead, we see a rise of lawlessness, would-be whistle blowers are murdered, mud schools still exist, infrastructure keeps on decaying, the economy is faltering, which all present a loss of hope. 3. The PIC fiasco As if the state capture through the state-owned enterprises and departments was not enough, these looters have made a grand visit to the coffers of the Government Employees Pension Fund (GEPF). When we discovered this plot, we were not sure about its depth and scale. Since we succeeded in calling for a judicial commission of inquiry, we can now characterise the thievery at the PIC as nothing different from the grand capture of state by leaders of the governing party and its travellers in the administration of state institutions. Nepotism and patronage are the most dominant methods of bankrupting the PIC, robbing the pensioners whilst filling the bottomless pockets of the connected few. The UDM, as it promised the nation, shall not rest until those who have stolen from the pensioners face the might of the law. In August 2017, I asked Minister Nene a question in parliament, which dealt with the alleged mismanagement and irregularities at the PIC and the PPC board. To date, this question has not been answered. The current minister of finance must not act like his predecessor, he must show maximum interest in bringing stability to this institution. In this regard, Minister Mboweni must deal decisively with corruption, and start by immediately putting in place a credible board, so that the corrupt legacy left by the former board that resigned last Friday is erased. 4. UDM recommendations If there is going to be any meaningful change and hope, South Africa must go back to basics. 1. Thieves who are mainly in the leadership roles of the ruling party at all levels, must be removed from power come May 2019. 2. Those who are mentioned in all the investigations and are alleged to have been on the wrong side of the law, must be thoroughly investigated and subjected to the full might of the law. 3. South Africa must place active citizenry in the development trajectory of the nation. 4. We cannot be indifferent to the battle to bring back hope to our nation. We must through a range of avenues engage all South Africans all of whom have an interest in clean governance, legality and equitable distribution of resources, as a basis for improving our lives. 5. Lastly, we need a major structural change in the economy of South Africa from a consumption driven, exporting economy to a redistributive economy. We need to intensify the productive nature of our economy and for this, we need to find a new industrialisation of our economic model. 5. Conclusion The UDM is certain that the situation of our nation is far from what we define as a winning nation. We have reversed the hope for a winning nation that we brought by the 1994 break-through. We have collective responsibility to reclaim our freedoms. For this to happen, we must change gear and vote for credible leaders. Thank you
Admin
04 Dec, 2018
GEPF’s R7,4 billion write-offs are shocking
The United Democratic Movement noted with disbelief, the Government Employees Pension Fund’s (GEPF) write-offs amounting to R7,4 billion for the 2017/2018 financial year. These write-offs are of direct consequence of some of the Public Investment Corporation’s (PIC) most controversial deals such as investments in Steinhoff/Lancaster 101, as well as with companies controlled by Iqbal Surve. All of which happened under the management of former PIC boss, Dr Dan Matjila. Something is rotten in the state of Denmark. Why were these PIC investments given the green light? Why was the GEPF board allowed to make these write-offs? Why was there a delay in appointing the PIC commission of inquiry? Has anything been swept under the carpet? Minister of Finance Tito Mboweni and his deputy, Mondli Gungubele has much to explain. The Mpati Commission of Inquiry must get to the bottom of this mess; sooner rather than later. It should, in particular, look at these transactions that led to the write-offs. The PIC board and Dan Matjila should not get away with this immoral and egregious abuse of people’s retirement money. Merely resigning from a position cannot be the end of the road, if corruption is proved, the guilty must go to jail. The state pensioners, whose moneys are invested at the PIC, have a right to be very worried about how the GEPF and PIC boards are handling their funds, because the powers that be has cast them to the wolves. In the meantime, the disciplinary action taken against any PIC staff members should be immediately suspended pending the outcome of the work to be done by the Mpati Commission. For further comment: Mr Bantu Holomisa, MP UDM President
Admin
25 Oct, 2018
UDM KwaZulu-Natal calls for Endumeni municipal manager to resign or to be suspended with immediate effect
UDM KwaZulu-Natal calls for Endumeni municipal manager to resign or to be suspended with immediate effect After our media statement of 23 October 2018 regarding deeply concerning issues in the Endumeni Municipality in the uMzinyathi District, the United Democratic Movement in KwaZulu Natal were given explosive documents that should make the Endumeni municipal manager’s life very uncomfortable. The documents contain damning proof of the municipal manager ‘s gross negligence and/or corruption by improperly and irregularly signing a contract worth R 969 000, which he has since tried to nullify by withdrawing an appointment letter. Such action has been challenged in court by the concerned service provider and is due to be heard on 6 December 2018 in the Pietermaritzburg High Court. 1. The appointment letter was signed by the municipal manager on 8 June 2018. 2. The contract which states that 50% of the contractual value (R484 500) is payable within thirty days of signing the contract, was signed by the municipal manager on 26 June 2018. 3. On 30 August 2018, the municipal manager wrote to the service provider to withdraw the letter of appointment, citing among other reasons that “Your document was incomplete as you had not filed MBD 1 nor MBD 3.1 which are compulsory to Special Conditions of Bid, point no. 10”. 4. On 15 October 2018 the concerned service provider filed a court application to enforce the contract. The sequence of events clearly proves either gross negligence and/or corruption on the part of the municipal manager. It is very disturbing that the Inkatha Freedom Party-led coalition with the Democratic Alliance (DA) and the Economic Freedom Fighters (EFF), is keeping mum on this and by implication intend to cause further financial losses at the expense of the Endumeni residents. The UDM KZN, urges both the DA and the EFF particularly, to put Endumeni residents first by personally pushing for the removal of the municipal manager and holding him accountable for the already lost municipal funds. Issued by Mr Boysey Gumede Interim Provincial Secretary UDM in KwaZulu-Natal
Admin
25 Oct, 2018
Request for investigation in navy contracts
Honourable Ms Nosiviwe N Mapisa-Nqakula Minister of Defence and Military Veterans Room 1418, Floor 14 120 Plein Street CAPE TOWN 8000 Dear Honourable Mapisa-Nqakula REQUEST FOR AN URGENT INVESTIGATION: APPOINTMENT OF PRIVATE CONTRACT FOR THE RENDERING OF A MAINTENANCE AND REPAIR OF OPERATIONAL MECHANICAL EQUIPMENT FOR THE SOUTH AFRICAN NAVY WESTERN CAPE REGION FOR A THREE YEARS PERIOD The above has reference. The awarding of the bid for the maintenance and repair of operational mechanical equipment for the SA navy in the Western Cape region, to RA Govender CC, appears to be irregular and corrupt. This claim is based on the documents in my possession which I am sharing with you. Amongst the disturbing revelations, are the following: • The compliance history report from the Central Supplier Database for government (CSD), shows that RA Govender CC was Non-Tax Compliant at the time of awarding the bid. • RA Govender CC has claimed to have the necessary and requisite capacity to deliver on the terms of the reference, yet has subcontracted his service resulting to the cost of the contract ballooning to more than R52 million. • The sub-contractors are not registered with Workmen’s compensation, non-BBBEE compliant and were not vetted for operating in a National Key Point. Furthermore I drawn your attention to the following files, that were fiddled with in order to fraudulently influence the bidding, and in particular, the pricing process. • SPSC Bid 012 / 2015 • SPSC Bid 050 / 2015 • SPSC Bid 1051 / 2015 • SPSC Bid 1652 / 2015 On 16 November 2016, REAR ADMIRAL (JG) Mkhonto, a Director of Fleet Logistics, did not support the recommendation to award the bid to RA Govender CC. A signed document by someone going by the name of “Lamola” suggest that Mkhonto had directed this person to act on behalf of his support. Therefore this is contradictory to the one singed by Mkhonto and dated 16 November 2016. Accordingly, I request that your department appoint credible and independent bodies to conduct a detailed investigation of these allegations. I will be pleased to be advised on the steps taken by your office. Sincerely yours, Mr. Bantu Holomisa, MP President of the United Democratic Movement
Admin
17 Oct, 2018
UDM welcomes announcement of PIC commission of inquiry
The United Democratic Movement welcomes the president’s announcement of the appointment of Justice Lex Mpati as the head of the commission of inquiry into the allegations of corruption at the Public Investment Corporation (PIC). The inquiry should clean-up the mess at the PIC and get to the bottom of the rot we have seen exposed in the media for quite some time. The pension funds of past and present government employees should be protected from the ruthless sharks that are eating away at their financial futures. We reiterate our call that PIC chief executive officer, Dr Dan Matjila, who played a pivotal role in, for example the Mozambican oil deal, the VBS Mutual Bank scandal, the Ayo Technologies and Sagarmatha Technologies mess, should be suspended with immediate effect, which is in line with international norms and standards. Issued by: Mr Bantu Holomisa, MP UDM President
