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DBSA’s strange treatment of the allegations of corruption regarding the Poseidon water project and its funding

Mr Patrick K Dlamini Chief Executive Officer and Managing Director Development Bank of Southern Africa PO Box 1234 Halfway House 1685 Dear Mr Dlamini Development Bank of Southern Africa’s strange treatment of the allegations of corruption regarding the Poseidon water project and its funding 1. I respond to your letter of 10 July 2020, which the Development Bank of Southern Africa (DBSA) Company Secretary, Ms Bathobile Sowazi, sent at 22:57 on a Friday. Looking back at other emails, after hours correspondence seems to be the norm at the DBSA and one can but speculate as to the reasons why. 2. In all your letters to me regarding the Poseidon water project you sound defensive and blustering regarding the DBSA’s handling of this funding deal. Why would you cover your wickets with such excessive vigour and choose to cast aspersions on my bona fides? 3. You stated that I have “…publicly disclosed confidential information and documents belonging to the DBSA’s clients…”, what I interpret this to mean is that the information at my disposal is true and accurate. You are, in fact, right to be worried that the DBSA’s credibility might be undermined, as it, and/or some of its leadership, are seemingly engaged in activities they do not want exposed. 4. It is interesting that you decided to pre-empt President Ramaphosa’s response to my request for an investigation of the Poseidon deal. Now that you have positioned yourself as the president of this country, will you please tell the nation how the following people, as per your below document, are involved in the Poseidon transaction and how they directly and/or indirectly benefit from this deal. 5. This list of politically exposed persons (PEPs) in Poseidon’s group structure is a veritable Who’s Who of directors of public owned entities. It raises questions about the comprehensiveness and effectiveness of the DBSA’s due diligence processes in terms of corporate governance as defined in the Companies Act, No. 71 of 2008 and its 2011 amendment, the Public Finance Management Act, No. 1 of 1999 and the fourth revision of the King Report on Corporate Governance. 6. Item number 4 of the above document (in the picture), refers to the Public Investment Corporation (PIC) directors who were identified as PEPs in this deal by virtue of being board members of a state-owned entity. Who exactly are these PIC board members your document refers to i.e. the board members at the time of the submission of the application or those at the time of its approval? Either way it would be helpful if you could explain their involvement in this private, for-profit matter and whether the DBSA condones this kind of association. 7. It is confounding that your very own document states that Dr Renosi Mokate is a PEP by virtue of her being a trustee of the Harith Holdings Employee Trust and the board chairperson of the Government Employees Pension Fund (GEPF), yet she made a bare denial of any connection to Poseidon in her submission to the court in her defamation case against me and the United Democratic Movement. So, the questions the public and/or a judge might ask you are: Who added her name to this document, and why? Also, from where did you obtain this information? 8. Ultimately you are to be thanked for confirming the veracity of the above information. We will however ask those individuals (including the GEPF chairperson) who ran to court, to explain why their names appear on a DBSA document pertaining to the Crede Power and Infrastructure Investments/Poseidon funding application. 9. Our letter to the President is clear in terms of what we want to be investigated. Part of that would be that you seemingly misled the DBSA’s board by allegedly recommending that this project be funded despite the above information being at your disposal. Worse still is that some of these PEPs have been fingered in the Commission of inquiry into allegations of impropriety regarding the Public Investment Corporation. Why are you promoting and protecting these people? 10. You have placed on record that “On or about June 2019 the DBSA received an application from Crede Power and Infrastructure Investments…”. Mr Jabu Moleketi left as DBSA Chairperson in December 2018. What these two facts mean is that the Crede Power and Infrastructure Investments/Poseidon funding application was submitted to the DBSA within six months of his having left the DBSA, which I understand is in contravention of the DBSA’s twelve month “cooling off” period for directors who have left the Bank. The public might ask you whether these facts were disclosed to the Board when it considered and approved the funding application? 11. Your artless attempt to threaten me with “the law” where it pertains to whistleblowing, begs the question: “Is it not nice and convenient that the DBSA decision-makers, in the Poseidon water project deal, can hide behind this country’s laws?” This might exactly be the reason why there was no other way of exposing the alleged corruption in the way that we have. 12. The DBSA’s refusal of my Promotion of Access to Information Act 2 of 2000 request, because of technicalities, is utter drivel. You and Ms Kim Sanderson (DBSA Deputy Information Officer) who wrote to me, know exactly to which deal I was referring and what information I had asked for. Such seemingly spiteful delaying tactics could be interpreted as the DBSA playing for time to “cook the books”. If I were in your boots, I would be preparing to explain this mess in court. 13. Your 10 July 2020 letter smacks of a panicked response to being confronted by facts that are not to your and your colleagues’ liking, least of all to the liking of the PEPs involved in Poseidon. 14. I walk away from all your correspondence, thus far, with a very repulsive taste in my mouth and the perturbing feeling that you are not acting in the best interest of the people of this country. Yours sincerely Mr Bantu Holomisa, MP UDM President Copied to: Minister of Finance, Mr Tito Mboweni DBSA Chairperson, Mr Enoch Godongwana DBSA Company Secretary, Ms Bathobile Sowazi DBSA Deputy Information Officer, Ms Kim Sanderson Mabuza Attorneys, Attorney Eric Mabuza

Call on the IEC to host a meeting for political parties to debate South Africa’s democratic ideals, electoral reform and the impact of Covid-19 on elections

Mr Glen Mashinini Chair of the Electoral Commission Private Bag X112 Centurion 0046 Dear Mr Mashinini Call on the IEC to host a meeting for political parties to debate South Africa’s democratic ideals, electoral reform and the impact of Covid-19 on elections 1. The United Democratic Movement (UDM) has had in-depth internal discussions around two critical matters that have already impacted on, and will still impact, the way that South Africa practices democracy and runs elections. One is of course the Constitutional Court’s judgment that the Electoral Act 73 of 1998 (‘the Electoral Act’) is unconstitutional in so far as it requires candidates to contest national and provincial elections only as members of political parties and, the other, the impact that Covid-19 is having, and will have, on future elections. 2. We have also noted the opinions of some political parties on electoral reform, as well as that of the Independent Electoral Commission (IEC), expressed in the media. 3. One such item is the notion of combining national, provincial and local government elections, especially given the impact of the Covid-19 pandemic on the IEC’s preparations for the 2021 Local Government Elections and what an election would look like – in a little more than a year from now – with the uncertainty around our continued journey with the Coronavirus. Combining our elections will require constitutional changes and the practicality of somehow altering the five-year election cycles to achieve synchronicity, and the impact it will have on democracy, must be carefully considered. 4. The UDM has long been of the view that changes to our electoral system is indeed needed and the opportunity has presented itself, no matter how it was precipitated, to have earnest debate around public representatives’ accountability to the electorate and whether South Africa’s purely proportional system is the right tool to ensure that. 5. But to our minds, the most important change necessary is the need to have voters directly elect their president of the country, as is the case in many established democracies across the globe. The UDM believes that South Africa’s president should be directly elected by her people, and be held accountable to them, instead of the around 3,000 delegates at a party congress choosing a party president to be foisted onto an entire nation. 6. It is necessary to have a structured debate around these issues and it is imperative that we, as political parties, must formally engage as primary stakeholders of the IEC and South Africa’s democratic processes. 7. Given the complexities of the matters on the table, we must start the debate now in order to (if there is consensus that changes to our electoral systems are necessary and will achieve greater democracy) amend the Constitution, the Electoral Act and the Municipal Electoral Act 27 of 2000 and the attending regulations. 8. The UDM therefore calls on the Electoral Commission to urgently host a formal debate, maybe in a virtual hybrid format, where political parties can officially table their policies on the matter of electoral reform so that we can chart the way forward. Time is of the essence. Yours sincerely Mr Bantu Holomisa, MP UDM President Copied to the leaders of all political parties and the people of South Africa

UDM calls for referendum on the death penalty

Considering the calls from various sectors of our society for the death penalty to be reintroduced, especially in terms of gender-based violence (GBV), femicide, as well as child abuse and murder, the United Democratic Movement (UDM) reiterates its longstanding call that the government must allow for the voice of the people to be heard; it is time to have a referendum on the death penalty. The existing punishments for the guilty, are not a deterrent. Protection orders have become mere pieces of paper and ink and the perpetrators do not take them seriously, and the police fail to enforce them. The UDM calls upon the government of the day to take GBV seriously and to stop paying lip service as it makes no difference to the lives of those who live with daily abuse. Governmental leaders cannot take decisions alone behind closed doors, excluding the people who face these disastrous situations in our society. Let the people speak. Issued by: Mr Bongani Msomi UDM Secretary General

Capturing of the administration of NSFAS

Advocate Busisiwe Mkhwebane The Public Protector South Africa Private Bag X677 Pretoria 0001 Dear Advocate Mkhwebane COMPLAINT: CAPTURING OF THE ADMINISTRATION OF THE NATIONAL STUDENT FINANCIAL AID SCHEME – ALLEGED NEPOTISM AT THE HIGHEST LEVELS, STAFF VICTIMISATION AND PURGE, CORRUPTION AND MALADMINISTRATION As you might be aware, the National Student Financial Aid Scheme (NSFAS) was placed under administration by former Minister of Higher Education and Training Naledi Pandor after its failure to pay out bursaries had led to student protests. I have been approached by concerned NSFAS employees for assistance, and the seriousness of the allegations that are being made lead me to think that this process has been “captured”. There are allegations of nepotism, victimisation and purging of staff, racism, corruption, general maladministration, mismanagement by Dr Randall Carolissen (NSFAS Administrator) in particular, as well as a general collapse of corporate governance at NSFAS. Worst of all is the allegation that the Minister of Higher Education, Science and Technology, Dr Blade Nzimande (who is supposed to oversee this process and is the custodian of good governance) is aware of some of these issues and are seemingly ignoring them and worse still, is involved in nepotism with the appointment of those loyal to him to key NSFAS (and other) positions. I hereby lodge a complaint in terms of Section 6(1) (A) of the Public Protector Act, 1994 and request you to investigate these allegations. To assist you at this point in time, please find attached to this email: 1. Annexure A (98KB) – a document that details various allegations of poor performance, unscrupulous procurement, compromised internal auditing, failures of NSFAS’s IT system, maladministration, racism and compromised oversight. 2. Annexure B (85KB) – a list of key questions regarding allegations against Dr Carolissen in terms of his role in various matters, such as nepotism and maladministration (amongst others, how much of the cumulative irregular expenditure of R7.5 billion NSFAS declared in the 2018/19 financial year was spent under his watch?). 3. Annexure C – a list of staffers and former staffers who have allegedly been victimised, targeted and or purged by Dr Carolissen (not posted due to sensitivity of the information). 4. Annexure D1 and D2 – list of persons allegedly appointed by virtue of their links to Dr Carolissen and other key players. (not posted due to sensitivity of the information) 5. Annexures E and F – allegations around a list of key persons appointed at NSFAS, and other bodies, by virtue of their personal links to Minister Nzimande. (not posted due to sensitivity of the information) I have further and more detailed information in my possession, which I am more than willing to share should you decide to investigate, as it is of paramount importance (at this stage) to protect the identities of the whistle-blowers to avoid further victimisation. I am at your disposal and look forward to engaging with you. Yours faithfully Mr Bantu Holomisa, MP President of the United Democratic Movement

Donald Trump’s so-called Israeli-Palestinian peace plan is a recipe for disaster

The long-standing Israeli-Palestinian conflict is well documented, but United States President Donald Trump’s “peace plan” might put peace between Israel and the Palestinians even further out of reach. It is an extreme pity that former President Nelson Mandela’s efforts to end their struggle was left to peter out. However, history has taught us that, whenever the United States attempts to solve problems in the region it always appears to be that they support one faction or country against another, instead of following an inclusive approach. The United Democratic Movement believes that a deeply conceited United States is abusing its influence and power, to “give us an idea of what the world should look like according to Trump” (and therefore America). This style of diplomacy will surely not bring lasting peace to the region. South Africa, as a member of the United Nations Security Council, has a responsibility to oppose any act that might escalate an already untenable situation to full-blown war. We also call on the United States and her president to act soberly and to not abuse their might as their current pro-Israel stance is not conducive to finding a solution that will work for both sides.

Loss of used Covid-19 test kits near Mdantsane is proof of an uncaring ANC government

Health MEC Sindiswa Gomba and the entire Eastern Cape African National Congress (ANC) leadership simply do not care about the lives of the poor and its nauseating. The only time they pretend to care for the people they claim to represent is when they need their votes, thereafter the people are left to their own devices. The fact that, yesterday, hundreds of used Covid-19 test kits were found lying in the veld near Mdantsane in the Eastern Cape, is shocking beyond belief. Anything could have happened if not for an informed Good Samaritan who noticed the used test kits scattered next to the N2 highway. What if this is not the only place were these kits were lost? What if children pick them up and play with them? Besides that, if what reports say are true, they represent at least 500 people who are awaiting their Covid-19 test results, but they will have to be redone as these kits have now been environmentally compromised. Worse still, who is to say that all the kits that were indeed found, comprises the entire load that was seemingly on route to Port Elizabeth? How exactly did the kits get inside the veld? They surely would have been lying shattered on the tarmac if this was indeed an honest mistake. UDEMWO calls on the Eastern Cape Health Department to immediately launch an investigation into how those test kits were lost in the first instance and more importantly, put measures in place to prevent this kind of thing from ever happening again. Issued by: Ms Thandi Nontenja UDEMWO Secretary General

Transport Department must take SANTACO seriously

The United Democratic Movement (UDM) is disappointed with Transport Minister Fikile Mbalula’s failure to address disgruntled taxi drivers just a few days ago. This is not what is expected of a minister; he could have done better and not just throw tantrums, as the taxi drivers are justifiably frustrated, and they have been patient with the government for nearly three months. The taxi industry may not yet be formalised, but it should be respected, because it carries thousands of South Africans to and from work, and, should there be another taxi shutdown, the working class and ordinary citizens will be immensely affected. The UDM however does not support SANTACO’s call to load taxis to full capacity, as, by doing so, innocent people will be exposed to Covid-19 and a lot can go wrong with the few resources we have to fight this deadly virus. We also plead with commuters to meet government halfway, whilst rushing to and from their destinations, to curb the spread of this virus. The R5,000 once-off relief money offered by government is clearly problematic and we plead with Minister Mbalula to urgently meet with SANTACO and other taxi associations to negotiate a way forward. South Africa is faced by serious crises already – Covid-19 infections are exponentially increasing and the scourge of gender-based violence is marring our social landscape – the fight between SANTACO and the Department of Transport cannot be one of them. Issued by: Mr Bongani Msomi UDM Secretary General

Youth Power – Growing South Africa together in a time of Covid-19

Honourable Chairperson Honourable Members Fellow South Africans The United Democratic Movement Youth Vanguard (UDMYV) salutes the frontline workers and those in healthcare who place their lives in the firing line, fighting the invisible enemy.  We also would like to convey our deepest condolences to the families of those South Africans who have succumbed to the Coronavirus. The UDMYV also congratulates Prof Zeblon Vilakazi on being appointed as Chancellor of Wits University. We believe that adequate transformation will be seen at that institution. Honourable Chairperson, it is almost a decade since the inception of the first sitting of the South African Youth Parliament in 2011, an initiative that was welcomed by the UDM Youth Vanguard. Young people had gathered in this house to deliberate on the issues affecting young people, ranging from economic participation, prejudice, inequality, racism, sexism, classism, ableism, and unemployment. Little did we know that today we would gather in this house and still deliberate the very same issues, still seeking solutions. In fact, we now know, and Covid-19 has proven, that government has not been serious about solving our challenges as youth. The UDM Youth Vanguard believes that we find ourselves barely existing in a society of crumbs, whilst the rich, connected elite and the politically powerful enjoy themselves at the expense of the poor masses. Twenty-six years into democracy and South Africa ranks as one of the most unequal societies in the world, with the formerly oppressed still having no opportunities and living in squalor. Our mostly geriatric cabinet has no clue how to deal with young people or their plight. We have for years said that it is necessary to have young people in all kinds of decision-making positions.  It is of no use to appoint a token young person as a minister who does not even deal with youth matters. Youth unemployment has increased dramatically because of the Covid-19 lockdown and the end is not in sight. Another thing the pandemic has proven, is our country’s lack of innovation and research tools. South Africa will need an economic repositioning, which focuses on youth and skills development. We no longer want to hear lip service; we want rigorous action. We must get past the stumbling blocks that hamper our progress as young people. As it stands our education system does not adequately prepare young people for the future, or the job market, it needs a massive overhaul. It generates dropouts and perpetual jobseekers. The UDM Youth Vanguard believes that there must be a greater focus on building young people to be job-creators – skilling them to, for instance, be innovators and artisans, work the land and produce food and start small businesses that can grow. Such a transformed education system must speak to today’s needs considering the current industrial revolution. We note that young graduates sit at home hoping for a better, viable economic homeland. Their NSFAS debts are accumulating interest, meaning even if they are employed, they are already sinking in financial deficits. The UDMYV proposes that government must be obliged to hire those who they invest in. Failing which, if a graduate sits for over 5 years being unemployed, his/her debt must be scratched. We further propose that for every R250 000.00 spent by government, must be equal to one graduate employed. Lastly, the UDM Youth Vanguard has a lingering question for President Cyril Ramaphosa and Minister Lindiwe Zulu. Where is their R350 Social Distress Relief Fund monies? Aphi ama R350 of the unemployed siyawafuna maqabane, the promise was made in April and still today millions of young people sifile yindlala, siphatshe imilomo as such millions of young South Africans are without data and do not have the privilege to watch this session on a paid television platform. We want the R350 to be a permanent grant for the unemployed and it should be increased to at least R1000 a month. I thank you.