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31 May, 2018
@PresidencyZA, UDM writes to #PresidentRamaphosa abt #corruption in #PIC: Mr President plz walk the talk! Scandal bigger than #Guptas?
Mr CM Ramaphosa President of the Republic of South Africa Union Buildings Private Bag X 1000 Pretoria 0001 and Deputy Chief Justice RMM Zondo Chairperson of the Commission of Inquiry into State Capture Private Bag X1 Constitution Hill Braamfontein 2017 Dear Mr President and Deputy Chief Justice THE PUBLIC INVESTMENT CORPORATION, THE GOVERNMENT EMPLOYEE PENSION FUND AND SUSPECTED CORRUPTION; A SCANDAL BIGGER THAN THE GUPTA-FAMILY’S STATE CAPTURE? 1. I refer to the below information which is a summary of the alleged corruption involving, in main, the Chief Executive Officer of the Public Investment Corporation (PIC) Dr Daniel Matjila. 2. The allegations contained therein describes serious corruption, dodging of due diligence, misrepresentation, money laundering and purging of staff (possibly for a cover-up) in deals of the PIC, which could only be the tip of the proverbial iceberg. 3. The extent of the rot could in fact be worth billions of rands, which makes it potentially bigger than the Gupta Scandal. Through PIC, Dr Matjila appears to have tentacles across various sectors of society – from unions, political parties and possibly parts of the fourth estate. He seems to have built a platform that has so far protected him from scrutiny and they have been protecting him against accusations of serious corruption. 4. There are many other nauseating examples of corruption which the media (like amaBhungane Centre for Investigative Journalism) have uncovered and have put in the public domain. Yet we have not seen the authorities do anything about the allegations of corruption and irregular deals, especially those within the past nine years. 5. It is therefore the United Democratic Movement’s urgent request that this matter forms part of the inquiry into state capture, because of the potential scope of the corruption. The commission’s terms of reference could be widened to include these allegations, especially considering that this could only be the tip of the iceberg and that more corruption will be exposed in its investigations 6. Because of the sophistication with which this alleged wheeling and dealing in the PIC was done, we suggest that a team of specialist professionals (including but not limited to forensic auditors, as well as finance and investment experts), should speedily investigate this matter, before proof of these misdeeds are ferreted away. 7. Mr President, you have categorically stated that you will root out corruption in government, which includes State Owned enterprises; but in this instance it will also directly affect hundreds of thousands of families for whom this is a life or death situation. Yours in stamping out corruption Mr Bantu Holomisa, MP UDM President Re: Investigation of CEO, Dr Daniel Matjila, with regards to irregularities at PIC Background Public Investment Corporation (PIC) is one of the largest asset manager managing South African government public funds. Its biggest client is the Government Employee Pension Fund (GEPF), which constitute approximately 90% of its fund under management. GEPF is a defined benefit fund, which means it is guaranteed by the employer. Employer, with regards to GEPF, is the South African Government. Any shortfall in member benefits or liabilities are therefore guaranteed by the government. It is for this reason that any maladministration from the asset/investment management is detriment to both the members of the fund and the fiscus. There have been several irregularities that have been raised in the media which are of concern and could impairment the ability of GEPF to meet its obligations over the long-term, such eventuality could trigger support from the fiscus. The following deals need further investigations by an independent party: Steinhoff Steinhoff on the unlisted side where PIC gave R 9.3 billion to an entity led by Jayendra Naidoo called Lancaster01. The shareholding of Lancaster01 is as follows is as follows: GEPF 50%, J Naidoo, 25% and community trust 25%. (Why such a narrow-based BEE structure with one person getting 25% of the deal? Does the community trust a front?). The transaction was done in two phases: • Phase 1 PIC gave Lancaster R 9.3 billion secured by both shares and collar structure if share price decline for capital preservation. • Phase 2 was the restructuring of the transaction wherein PIC was to partially forego its security to another lender Citibank. Citibank funded Lancaster02 Investment in STAR worth over R 6 billion. • Compromising of the security package in favour of J Naidoo in phase 2 resulted in impairment amount worth billions of rands. (could be up to R 5 billion possible loss for doing a favour to J Naidoo and Citibank) Ayo Technologies Ltd • Ayo Technologies Ltd, a start-up company, listed on the Johannesburg Stock Exchange and due diligence was waived. Funds were disbursed without a condition precedent – put option being in place. Put option is an insurance instrument that would protect PIC if the share price declines. • PIC was the only material participant in the private placement despite media reports of oversubscription. • Lack of market participation could be indicative of the poor underlying investment value. The share price has remained below listing price and have experience very limited liquidity. • PIC invested R 4.3 billion, current market value is R 3.3 billion. Already lost R 1 billion on market to market basis. Sagarmantha Technologies • The CEO lobbied the investment committee members even by using letters from unions and convenient press release from a political party. Has the CEO allowed governance processes within PIC to breakdown to such a level that he felt better outsourcing the function of PIC Investment Committee to the political and union formations? Why did he deem it fit to have the letters from unions be sent to investment committees if he believes in the internal process that they will do the right thing? What was his intention to have these letters given to members of investment committee? • Despite the lobbying, the deal was declined due to critical media scrutiny. • Sagarmatha technology proposal lacked investment rationale and largely mirrored the same methodology used to get R 4.3 billion for AYO technology and backed by the same sponsor –Iqbal Surve. • GEPF was expected to invest a minimum of R 3 billion. S&S Oil Refinery • S&S Oil Refinery in Mozambique. PIC funds are tied in an asset that is currently not producing much of what have been projected? And the sponsor-Momade Rassul is alleged to be an underworld figure. Rassul is based Nacala in Northern Province of Mozambique was arrested on 29 June 2017 facing an assortment of serious charges including money laundering, illicit enrichment, tax fraud, foreign currency manipulation, smuggling and misappropriation. • Total investment at risk of full write down is R 1 billion. Erin Energy Media reported on a dodgy deal concluded with an American – Nigerian businessman – Kase Lawal. The ownership of the underlying oil asset by Erin Energy was disputed at the point of PIC investment, but the PIC proceeded. Erin Energy failed to get full ownership of the asset. Considering the PIC’s $270-million equity investment and the fact that Erin had drawn $65.6-million against the $100-million PIC-backed loan but held $9.1-million in cash security, the PIC could lose roughly R 4 billion. The girlfriend story • PIC utilisation of CSI budget to fund the project introduced by the girlfriend of the CEO. • CEO asked an Investee company to financially assist the girlfriend. Note that the CEO has not disputed this. It borders on money laundering and serous conflict of interest, this is subject to Police investigations. Other issues for further investigations: Corporate finance Advisory on deals seem to be for selected few. • Sao Capital has been an advisor on many deals. Why does the company have such a great strike rate within PIC? How many deals have they done through PIC? • Kurhisani has been an advisor in many deals – MOGS, Distell, etc. Why does the company have such a great strike rate within PIC? How many deals have they done through PIC? Recent purging of staff Head of risk is fired. Head of IT, IT security and Company secretary are under suspension. Over the last few years the PIC has victimised a lot of black professionals. Independent investigations of the staff issues will show the extent of the rot.
Admin
24 May, 2018
UDM’s Thandi Nontenja on Mtubatuba by-elections: voter registration ahead of by-elections is a recipe for disaster as the results proved
Mr Sy Mamabolo Chief Electoral Officer Independent Electoral Commission Private Bag X112 Centurion, 0046 Dear Mr Mamabolo MTUBATUBA BY-ELECTIONS: VOTER REGISTRATION AHEAD OF BY-ELECTIONS IS A RECIPE FOR DISASTER AS THE RESULTS PROVED The United Democratic Movement (UDM) hopes that the Independent Electoral Commission (IEC) is happy and it appreciates the current state of affairs in the Mtubatuba Municipality following our continuous warnings against the registration of voters when there are by-elections. We warned that such registration might 1) have a negative impact, that 2) the results might not be accurate and that 3) there might be loopholes for the manipulation of the voters’ roll. The UDM has, for time immemorial, warned at the National Party Liaison Committee meetings that this practice must be stopped. Unfortunately, the IEC is hellbent in continuing on doing this. What happened in Mkhanyakude District during the by-elections in Ward 4 in the Mtubatuba Municipality, where it was found that some voters who are not residents in that particular ward – and were residents of adjacent wards – who voted. This could have been prevented if the IEC had listened to the UDM’s counsel. The UDM hopes that the IEC will now take our position on this matter seriously. The IEC is expected to be responsive and listen to the voice of political parties as they are important role players in the electoral process. The results in the by-elections of Ward 4 have been compromised and it cannot be credible. Yours in nation building Mrs Thandi Nontenja UDM Representative on the National Party Liaison Committee thandi@udm.org.za
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23 May, 2018
The UDM’s views on Budget Vote 01: Presidency
Honourable Deputy Speaker, Honourable President and Honourable Members United Democratic Movement (UDM) supports budget vote 1. Mr President you continue to make bold statements on the economic front. The recent appointment of your special envoy on investments is encouraging. We hope that the instability, that has the ruling party at the centre, will not undermine the work of these envoys. We also need to communicate a clear message that South Africa is working hard to be an investment destination of choice. Investments in our economy must be able to create jobs for the majority of young people who constitute the large section of the 26.7% of the unemployed South Africans. In the absence of much needed improvement on the governance front, the apparent delays on the commencement of the state capture inquiry note the business and consumer confidence will remain pessimistic. Accordingly, this administration must go beyond changing board members of the various State-Owned Entities (SOEs), but ensure sector leading qualitative and efficient productivity, through the appointment of qualified and competent administrators. In the same vein, let the State Capture Commission begin with its work. Yes, to see who has been misusing state funds to line their party or private pockets. South Africa needs a significantly improved fiscal base, accelerated inclusive economic growth, with a sharp decline in wasteful and fruitless expenditure, that will also contribute to the reduction of the budget deficit. Wastage which happens across the different spheres of government and in other public institutions, must be eliminated. However, these measures must not compromise the security of the country. We want you to do more to bring an end to violent protests that have occupied our streets, day-in day-out. Our law enforcement agencies, including the intelligence, must help you put an end to the increasing cash in transit heists, the burning of trucks, and all other forms of crime and lawlessness. We agree, with you, that so-called political killings are crimes and must be dealt with accordingly. Political killings are a blatant attack on the very democracy and constitution, that many so rightly fought for. As chairperson of Southern African Development Community (SADC), you are best placed to understand the conflicts internally and externally in many African regions. We call for the revitalisation of peace programmes that were started in the Mandela administration. South Africa cannot be expected to deploy its armed forces to, maintain stability, without progressive peace negotiations running parallel. The presence of South African armed forces must be a temporary measure, with the ultimate goal of promoting peace in the continent, not to protect corrupt regimes. Currently South Africa plays host to political refugees, who are being harassed by some of the governments which they are seeking refuge from. There are cases whereby these refugees are being assassinated within South African borders thereby threatening the security of our country. Ensuring peace in other African countries may lead to many refugees wanting to return to their homes and develop their states to become prosperous whilst also reducing the financial burden for deploying our troops. Thank you
Admin
16 May, 2018
2018 Budget Vote 10 – Public Service and Administration
Address by Mr ML Filtane, MP in the National Assembly Honourable Chairperson and members It is up to the citizens of South Africa to claim their entitlement to accountable government in which, constitutionally guaranteed human and other rights are upheld. The constitution alone, however sounds it is, is insufficient, unless it is fully applied in the daily lives of all of the people and the state institutions. The continued high unemployment rate, poverty and underdevelopment, demands that the more than 1.2 million men and women in the public service must double the effort in their daily responsibilities intended to create a better life for the people of the South Africa. Governance is about the implementation of laws and the actual provisions of services. Public Service and Administration programme actions should contribute towards an enhanced quality of life for all. At the root of many of the problems facing country at present, in particular that which relates to governance, is a lack of appreciation of the difference between party and state. The governing party’s cadre deployment policy is adversely affecting public service. Evidence is that the ANC cadre deployment strategy systematically places loyalty ahead of merit and competence. Therefore, it its own serious obstacle to efficient public service. Politically and factionally connected incompetent individuals are often deployed to public positions. This results in a demoralised public service. Incompetent and unqualified people are unable to deliver services efficiently and effectively. Competency and ethical standards are critical for an effective and efficient public service. In order to realise the public administration provided, read in section 195 of the Constitution, that renders services to all people in a manner which is impartial, fair, equitable and without bias, we need, amongst others: • To run public service as a professional state service; and • An integrated and seamless single public service across all the three spheres of government. A democratic public service must uphold values of honesty; integrity and non-partisanship; prudence in the use of taxpayers’ money. There must be faithfulness to the principles of fairness, impartiality and professionalism whilst carrying out their duties; with respect for the government of the day and most importantly – PUTTING THE CITIZENS FIRST. The ruling party has taken similar or same resolutions in many of its decision-making bodies, but, implementation, DOLOLO! There is no implementation because PATRONAGE and the ANC is in the same WhatsApp group. The governing party cannot operate without patronage and patronage is an antithesis of patriotism. So, with patronage, the people of South Africa will never be at the apex of the governing party programmes. That will only remain a paper commitment. Thank you
Admin
13 May, 2018
North West under administration, but the provincial system itself is flawed
Media release by Mr Bantu Holomisa, MP and UDM President Some might consider President Cyril Ramaphosa’s taking control of North West a good move and believe that it will sort out the administrative and management quagmire it finds itself in. Whilst we appreciate the sentiment that prompted this move, it remains to be seen if it will eradicate institutionalised corruption in the North West. The unabated looting of state resources in this province have brought it to its knees, but one wonders whether, when national government steps in, this will not be a case of the wolf looking after the sheep. To sum up the situation, our people take to the streets daily, protesting the lack of service delivery, whether it be in the townships, rural areas or in the cities. We can no longer afford to fold our arms whilst South Africa is quite literally burning. Clearly the president has in fact used this constitutional provision in an attempt to sort out political problems within his party and it has nothing to do with a rescue mission. Given the exploitation of state funds, in all nine provinces, it makes sense to put the whole caboodle under administration. However, part of the problem is that the system in itself is flawed and have created nothing more but glorified homelands where racism and the fires of ethnicity are fanned. Do we really need these glorified homelands? We should rather strengthen the local sphere of government and let national government supervise. This piecemeal intervention by the president is simply not good enough to save South Africa from the slippery slope we find ourselves on due to the years’ long maladministration of the ruling party.
Admin
11 May, 2018
Open letter to Wesbank CEO re meeting about banks and car dealers’ relationships
Dear Mr De Kock LETTER OF GRATITUDE Our meeting of the 10th of May 2018 refers. I wish to express my gratitude that you convened us in the manner that you did. We are particularly grateful that you took time out of your busy schedule to prioritise this matter and to listen to us and allow us to engage with you. I believe it was a worthwhile and valuable exercise, where both sides of the story were expressed and pondered. Given yesterday’s deliberations it also became quite evident that something was amiss; all considered there is certainly a problem that needs to be attended to. 1. Observations Against the backdrop of the meeting I would also like to make the following observations: • I noted your firm response that the bank is not responsible or that it cannot be held accountable for the dealer’s actions. • As a layman, I had difficulty staying abreast of your perspective in this instance. The reason being that at all, if not most dealerships, there are bank representatives, who actually perform and participate in the acquisition process of a vehicle, liaising with and on behalf of banks. • It hence becomes difficult for me to grasp if the bank will now want to exonerate itself, when there is a problem. • Mr Ndara outlined to all of us in detail how the problematic deal came to be. I must say again I appreciate your frankness when you responded to him by saying “If what you are saying is true and accurate, then I must sympathise with you because you will have been done a grave injustice” • In all honesty anyone who would hear and intimately understand how the deal was concluded, can only sympathise with the situation in which he now finds himself. You will have noted the scathing comments made on my social media platforms; it was clear that the majority of responders either sympathised or empathised with him. • The other significant point that came from the meeting was that, he could have obliged and continued to make payments towards the vehicle, and had he not spent it on lawyers perhaps he would have settled the balance of the debt, but the principle superseded all. • In fact, Sir, Mr Ndara did not take a decision to pay himself. His lawyer at the time, Mr Ben Du Plessis, based in Pretoria, wrote to the bank in October of 2007 requesting documentation that de facto amended or cancelled the original agreement of 2004 that had been signed by both parties. When a month went by without a response, he advised Mr Ndara of his rights in terms of payments especially in view of the two reloaded agreements. 2. Facilitation of a meeting with the dealership I also believe that in view of master agreements between banks and dealerships, it is rather unfortunate that in this case the bank and the dealership worked together in the courts pursuing Mr Ndara. That is what makes me rather uncomfortable with your having to preside over the matter. Nevertheless, now that you have made this suggestion and also your response to Mr Ndara’s narration I do believe that you are engaging with us in good faith. I would therefore suggest that you proceed and arrange the meeting with the dealership so that everyone involved is present. Given that this is a credit agreement and to give more clarity and to lend credence to the meeting, you must also invite a representative from the National Credit Regulator, the custodian of credit agreements. Such a move would allow all of us to gain clarity and help us to move in the right direction. This by no means stops anyone who wants to go to court, but in the spirit of yesterday’s meeting I believe it is very important that we meet as such. 3. Way Forward At the end of the day, the bank is licensed to operate and as such it is obligatory that it also operates within the parameters and conditions of the license that it has been granted. We have various bodies like the Parliamentary Committee on Finance, the Financial Services Board, Ombudsmen, National Treasury, the Department of Trade and Industry and the Reserve Bank Disciplinary Committee who may take a particular interest in this matter. However, given our engagement yesterday I am convinced if we soberly apply our minds we may well be able to find one another here, as we are not only dealing with our opinions but more fundamentally we are also dealing with the laws that govern this country. As a member of parliament and the president of a political party it is my duty to see this matter through. I have no intention of abandoning this process. I intend to follow through until this matter is resolved either way. Once more I appreciate your leadership yesterday and I look forward to further engagement on this matter. Yours sincerely Mr Bantu Holomisa Member of Parliament President of the United Democratic Movement
Admin
11 May, 2018
2018 Budget Vote 39: Rural Development and Land Reform
Address by Mr ML Filtane, MP in the National Assembly Subject for Discussion: Budget Vote 39: Rural Development and Land Reform Honourable Chairperson and members The Preamble of the Constitution of the Republic of South Africa, states: “we … believing that South Africa belongs to all who live in it…” Question is, which part of South Africa actually belongs to the landless. Please respond by providing radical action to help them get their land back. Honourable Minister, hear the cry of the millions of the so-called South African citizens. They are crying out for land. Help them get what is in reality and constitutionally theirs, LAND. They want to belong to South Africa, they want to own South Africa, they want their acre of our beloved country. To them this budget means nothing, nothing because it talks about development programmes on land, yet they own no land, yet they own no land. So desperate are their circumstances, so dire is their situation, that 11 million of them are likely to go to bed tonight without a meal. They need land, on which to build family homes, from which to produce food for their families, from which to conduct business, on which their children will play, on which their budding sportsman and women can develop their talents. The people of Baziya and Highbury are painfully waiting for the finalisation of their land claim. Please Minister we need action and we need it NOW. They need land, which they can hold and horde for future generations, on which they can keep their livestock and milk their cows and feed their children, nutritionally. Minister, Africans will not ask for even one penny from you in order to do all the above. I have personally experienced this lifestyle in rural Transkei The much spoken about radical economic transformation needs radical legislation. The Bills that are with us now come nowhere near achieving that. Just over a year ago, I questioned the then Minister of Rural Development about this weak ESTA Bill and his response was that, that can only be done with a new Bill. Will you look into that as the new Minister, please. Farm workers continue to be evicted without getting much effective protection from government. Municipalities need land to resettle these evictees. Three weeks ago, I finally cleared the myth that Isilo owns Ingonyama Trust land. I took the committee through the Act clause by clause. The Ingonyama Trust Board Chairperson, Judge Ngwenya did not rebut my statement. So your department can now move in there and carryout the programme of securing land tenure for the inhabitants of that 2.9 million hector land. We have yet to see as the committee, a departmental report that as little as 1 000 supported entrepreneurs are earning just a R1 000 monthly for 12 months on the trot. In the absence of such a report this department does not qualify to be part of the economic cluster. It should be moved to the social cluster. But we support this pittance budget. Thank you
Admin
10 May, 2018
Local Government Week Outcomes: address by Mr LB Gaehler, MP (NCOP) in the National Assembly
Honourable Chairperson and Members Notwithstanding the recent outbreak of listeriosis, in which at least 190 people have died, South Africa does not meet the world health standards for food inspectors. According to the National Institute for Communicable Diseases (NICD), we have just one environmental health practitioner per 30, 000 people. The World Health Organisation (WHO) recommends a ratio of one environmental health practitioner for every 10, 000 people. This means South Africa does not have enough people checking the health and safety standards for production. Municipalities, in particular those in rural and small towns are the hardest hit. They must be helped to be proactive, to pre-plan and meet the required standards of at least one environmental health practitioner for every 10, 000 people. The NICD must have more laboratories to deal with this crisis. Chairperson, the municipalities are the culprits with regard to the non-payment of service providers within the regulated 30 days as per the National Treasury Instruction note number 34. This is not only a defiance of government policy, but a brutal onslaught against the poor masses of our people who are trying their best to live a better life, through their own initiative. Chairperson, we suggest that the NCOP institute an urgent investigation of the extent of this crime against our people who are running small businesses. We must know, which municipality is in debt to our poor people and how much is owned. Once that is established, culprits must be reported to the relevant authority for a proper recourse, on behalf of the local hawkers, caterers, B&B owners and many others. Lastly, there are still municipalities and institutions who are hell bent on defying another government policy, that of buying local. Officials go to places like Butterworth yet they sleep and eat in East London, they procure food and other items more than 50kms outside the local area. WHY ARE THE POOR MASSES IN RURAL AREAS BEING ATTACKED LIKE THIS. This new dawn must arrive to the poor too. Municipalities must play the ball and BUY LOCAL. Thank you
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