Admin
11 Apr, 2016
Bantu Holomisa writes to the Speaker of the NA regarding meeting with Presiding Officers
Dear Honourable Speaker NOTICE OF A MEETING WITH PRESIDING OFFICERS – 13 APRIL 2016. The above matter has reference. Your notice of a meeting between the Presiding Officers and Leaders of Political Parties in Parliament is confirmed. On the 18th of February 2016, I wrote to you requesting that your office direct the Joint Standing Committee on Intelligence to conduct hearings on what I referred to, as; “The threat presented by the Gupta family to the security of the country’s resources”. I have not received a response to this letter either than a request for a signed version, which was delivered to your office. On the 7th of April 2016, I wrote to you requesting for a disciplinary enquiry against President Zuma. Again I have not received a response to this letter either than an acknowledgement. Given the above, I confirm that I will attend the meeting with Presiding Officers, only on condition that your office replies to the contents of the two letters referred to above. Kind regards, Mr. Bantu Holomisa, MP President of the United Democratic Movement
Admin
07 Apr, 2016
Bantu Holomisa writes to Speaker of the NA regarding disciplinary inquiry: President Zuma
Dear Honourable Speaker REQUEST FOR A DISCIPLINARY INQUIRY AGAINST PRESIDENT ZUMA The above matter has reference. Following the scathing Constitutional Court judgment delivered on the 31st of March instant, and found amongst others: “Consistent with this constitutional injunction, an order will thus be made that the President’s failure to comply with the remedial action taken against him by the Public Protector is inconsistent with his obligation to uphold, defend and respect the Constitution as the supreme law of the Republic; to comply with the remedial action taken by the Public Protector; and the duty to assist and protect the office of the Public Protector to ensure its independence, impartiality, dignity and effectiveness”. A barrage of vicious attacks was meted against the office of the Public Protector and the Public Protector, by amongst others, members of the National Assembly; to a point of accusing her of misleading the nation. This grave misconduct has adversely affected the operations, performance and effectiveness of the Public Protector. Notwithstanding the clarity given by the Constitutional Court, the President, in his public half-hearted apology, failed to express himself on this matter of national interest. In July, justice portfolio committee chairperson Dr. Mathole Motshekga told the Nkandla ad hoc committee: “We should not, and cannot, apologise when we say the report of the public protector is misleading and has misled the nation.” The National Assembly Portfolio Committee on Justice and Correctional Services, led by the chairperson, Dr. Mathole Motshekga and Ms Thandiswa Mahambehlala brutally attacked the person of the public protector. This may have led to the economic embargo against the office of the Public Protector. News 24 reported on the 3rd of April 2016; attribute the following to the Speaker of the National Assembly, Ms Baleka Mbete; “Now I don’t know who owes the public protector an apology about what because as far as Parliament is concerned, the situation has been explained,” she said. It is my considered view, that the National Assembly has a Constitutional obligation to hold the President accountable on this matter. He has the duty to assist and protect the office of the Public Protector to ensure its independence, impartiality, dignity and effectiveness. Further, the Constitutional Court found, against the President: “Consistent with this constitutional injunction, an order will thus be made that the President’s failure to comply with the remedial action taken against him by the Public Protector is inconsistent with his obligation to uphold, defend and respect the Constitution as the supreme law of the Republic; to comply with the remedial action taken by the Public Protector; and the duty to assist and protect the office of the Public Protector to ensure its independence, impartiality, dignity and effectiveness”. Schedule 2 of the Constitution under Oath or solemn affirmation of President and Acting President provides: “The President of Acting President, before the Chief Justice, or another judge designated by the Chief Justice, must swear/affirm as follows: In the presence of everyone assembled here, and in full realisation of the high calling I assume as President/Acting President of the Republic of South Africa, I, A, B., swear/solemnly affirm that I will be faithful to the Republic of South Africa, and will obey, observe, uphold and maintain the Constitution and all other law of the Republic; and I solemnly and sincerely promise that I will always – promote all that will advance the Republic, and oppose all that may harm it; protect and promote the rights of all South Africans; discharge my duties with all my strength and talents to the best of my knowledge and ability and true to the dictates of my conscience; do justice to all; and devote myself to the well-being of the Republic and all of its people”. The President has on numerous occasions, and with regard to the report of the Public Protector and the security upgrades at his private homestead; made statements in the National Assembly, which were not accurate and may be bordering on perjury. To date, the nation as has not seen, the size and colour of a piece of paper purporting to be a bond that the President told the National Assembly funded his private home. Access to this document was never granted to the Public Protector as reported. Above all, the President had the audacity to come to the National Assembly and made mockery on a matter affecting the whole nation. We can all remember him infamously saying “…Nkandla – Nkandla! Owu Thixo – wa-se – George – Goch!” Accordingly, it is my considered view that the National Assembly is enjoined to institute a disciplinary enquiry against the President, in order to ascertain the gravity and the seriousness of the conduct of the President, as determined by the highest court of the land. In this regard, I propose: That a disciplinary enquiry be instituted against the President to: 1.1. Investigate whether the President has not misled the National Assembly with regard to his pronouncement on the security upgrades in his private homestead as well as the report of the Public Protector; and 1.2. Investigate the gravity and seriousness of the conduct of the President as determined by Constitutional Court on the 31st of March 2016, and in line with section 89 (1) of the Constitution. That the composition of the disciplinary enquiry be made up of three retired judges given that the National Assembly is conflicted, and that its findings should only be subjected to a review by a court of law where necessary. That a Multi-Party Committee be established to conduct a review of the current legislation governing security upgrades for public representatives in order to avoid further occurrence. That the National Assembly, set up a process that will immediately address the economic embargo meted against the office of the Public Protector and ensure that it is sufficiently resourced to be able to discharge its Constitutional obligations independently, impartially, effective and with dignity. Finally, the National Assembly has no choice but to hold the President accountable. Failure to do so, will send an unfortunate message to many other entities, that since the President was never held accountable, no one will have consequences for misleading the National Assembly under oath. Kind regards Mr. Bantu Holomisa, MP President of the United Democratic Movement
Admin
04 Apr, 2016
Bantu Holomisa writes to Thuli Mandonsela with request for an addendum of costs for Nkandla
Dear Advocate Madonsela REQUEST FOR AN ADDENDUM TO THE COSTS OF NKANDLA New details have emerged of how state funds were used to buy fittings, fixtures and building materials for private residence of the President. I am aware that your office was not granted access to this information, however, it is now in the public domain. The former Deputy Director General of the Department of Public Works, Rachard Samuel, is reported to have compiled a dossier revealing the following as costs that were paid by the department towards the private renovations of the private residence of the President. According to the Sunday Times report of the 27 March 2016, Rachard Samuel listed costs, totalling to a whopping R4, 6 million which is broken down as follows: 1. R1.5-million for air-conditioning at two private houses, a guesthouse and a guardhouse. This is apart from the R5-million for air-conditioning detailed in your report and that of the Special Investigating Unit (SIU); 2. R311, 932 for covered walkways between private residences; 3. R54,721.20 for six meranti doors and 26 meranti window frames; 4. R11,850 for hinges and bolts, doorstops, stainless steel hat-and-coat hooks, and six doormats that cost R1500 each; 5. R34,834.80 for aluminium sliding doors – without bulletproof glass – and other aluminium installations; 6. R38,517 for bulletproof sliding doors; 7. R63,215 for plastering materials, R23,300 for tiling and R41,406 for painting internal and external walls; 8. R271, 796 for carpentry and joinery, including roof construction; and 9. R2.4 million for “extras”. I believe, that your office has the authority to summon this information, and approach the Office of the Chief Justice for a proper guidance on how to deal with the new exposé. If this information is true as I believe, then it should help the National Treasury in making a proper determination of the costs to be personally paid by the President. I look forward to a favourable consideration of this request. Kind regards, Mr Bantu Holomisa, MP President of the United Democratic Movement
Admin
08 Mar, 2016
Bantu Holomisa writes to SABC about ANC hijacking of Imvuselelo
Honourable Minister F Muthambi, The Chairperson of the SABC Board, The Provincial Manager of Umhlobo Wenene ANC HIJACKING OF THE SABC – UMHLOBO WENENE IMVUSELELO PROGRAMME The above matter has reference. I am an ardent follower of the Imvuselelo Programme broadcasted by SABC by Umhlobo Wenene Radio Station. Every Sunday evening, I invest time to listen to this spiritually building programme since the time of the late Reverend Lufafa from the then Radio Transkei. When it was integrated into the programmes of Umhlobo Wenene, I continued following it. In the past the programme was purely religious in every aspect. Today, the African National Congress (ANC) Government has hijacked the programme with Members of the Executive Council and Mayors using public money. It has been captured by an unethical ruling party and turned it to be its campaigning platform. After the elections of 2014 it raised eyebrows when this programme went to Bhisho to wash the premier’s feet, even though it was known that he was under investigation, because an amount of R200 000 from monies earmarked for former President Mandela’s funeral ended up in his personal account. Every time the programme airs, you find these Executive Members at centre stage of the church and are given a podium to campaign for their political party. I attended one of these services in Mthatha and it was most repulsive to see the ANC Women’s League Members wearing their uniforms. I was told that when this programme was recently broadcasted from Sterkspruit and Mancam Village in Mqanduli that one would not be amiss to think that it was an ANC gathering. ANC flags and other campaign material were paraded during what is supposed to be a religious gathering for all citizens irrespective of their political affiliation. If you were to listen to the recording of the service in Mancam, the MEC of Social Development made no bones of praising her party and bringing service delivery to the people. She went on praising the role of ANC stalwarts. You tell me if that is not political campaigning. Writing this letter, I also consulted some party leaders who informed me that the same abuse is true of a religious programme on Radio Lesedi called Mafulong a Matala. I fail to understand why the SABC, as the public broadcaster, would allow itself to be used for political gain by a ruling party. If public funds are used for the benefit of the public, the SABC should extend participation to all political parties represented in the area where the programme is held to air views on a specific issue affecting all citizens. It would be important that the SABC goes back to basics and run this programme using its own budget. Programmes like Imvuselelo should not be funded through provincial and/or local fiscus as such will come with conditions that will undermine the independence of the SABC. After all this money they are using is to bring services to the poor, such as roads, water and electricity and not to brainwash them with ANC propaganda. If the SABC charges the Guptas for the breakfast show on SABC TV2 from monies they receive from SEOs, such as Eskom, Transnet, etc. they certainly could afford this expense. SABC should refuse to be used as a mobilising vehicle of the ruling party using the platforms created to develop citizens spiritually. It is a public broadcaster and should be above party politics, at best it should create a separate programme for all political parties to use the public space equally. Should the SABC not stop this blatant bias in Imvuselelo, we shall be forced to instruct our members to attend these services in full party regalia, carrying party material, and insist that they on, the spot, be given a platform – as they do for the ANC – to address any topic they choose. I am sure other political parties would also welcome this opportunity, especially since talk-shows have been suspended by the SABC. Whilst you are pondering our demands in the meantime, could you please forward the schedule of these programmes so that we can tell our members to attend these services. I will always support Imvuselelo in the form that it was originally intended. I however outright reject the fact that the ANC has hijacked religious programmes for their own nefarious objectives. Our message is clear; the ANC must be stopped from hijacking SABC religious programmes. I hope this will be attended to urgently Mr Bantu Holomisa, MP UDM President Copied to: Secretary of the South African Council of Churches Party Political Leaders
Admin
20 Jan, 2016
Public Protector must investigate Public Investment Corporation (PIC)
Dear Advocate Madonsela REQUEST FOR AN URGENT INVESTIGATION: Public Investment Corporation (PIC). I take this opportunity to welcome and wish you and your office, a very successful year in the service of the nation, in 2016. In this regard, I wish to table the following matter with you, so that you may investigate it appropriately for the benefit of the South African public. I have anonymously received serious allegations with regard to the possible corruption in the Public Investment Corporation (PIC) fund. It looks like the institutionalised corruption, which has resulted to South Africa being downgraded by various global grading bodies, has extended its vicious arm to the pensions of government employees, Judges, Members of Parliament and others who are paid from the public purse. It is alleged that, during the second week of December 2015, an amount of R40m was transferred from the PIC account to a company whose name is attached herein. This company is known for handling the PIC and government transactions. It is further alleged that this R40m was meant to fund salaries of the ANC staff members and its Birthday Anniversary Celebrations held on the 8th of January 2016. Another allegation is that, in January 2016, an amount of R2m was transferred from the PIC account to a company whose name is also attached, for the benefit of the ruling party. You are further requested to investigate another allegation that the PIC is about to fund a company whose name is attached herein, with an amount of R1.5bn, in order for this company to purchase a 25% stake from another person who holds this stake with TOTAL Oil Company. I request you to investigate whether due diligence of this transaction was conducted and whether it is in accordance with the relevant laws governing the PIC. Given the specific allegations above, it is clear that there is a need for a thorough and comprehensive investigation of how the PIC is managing all the monies entrusted with them. A judicial commission of enquiry may be relevant in order to ensure that these monies are not vulnerable to the whims of the political elite. I look forward to your excellent investigative work on this matter. Kind regards Bantu Holomisa President of the United Democratic Movement
Admin
23 Oct, 2015
PE Ward 30 service delivery challenges
LETTER TO PRESIDENT JACOB ZUMA, MINISTER PRAVIN GORDHAN AND MAYOR DANNY JORDAAN BY UDM PRESIDENT BANTU HOLOMISA Honourable Mr D Jordaan Executive Mayor of the Nelson Mandela Bay Municipality First Floor City Hall Vuyisile Mini Square Port Elizabeth Honourable Mr Pravin Gordhan Minister of Cooperative Governance and Traditional Affairs Republic of South Africa 120 Plein Street, Floor 11 Room 1110 Cape Town 8000 Honourable Mr JG Zuma President of the Republic of South Africa Tuynhuys Private Bag X1000, Cape Town 8000 Dear All SERVICE DELIVERY CHALLENGES IN WARD 30 NELSON MANDELA BAY MUNICIPALITY The above matter has reference. On the 13 of September 2015, I visited ward 30 of Nelson Mandela Bay Municipality in Port Elizabeth and conducted a walk about at the ward and had a dialogue with residents, in the company of the newly elected United Democratic Movement (UDM) Ward Councillor, Mr Mandla Lous Faltein. The ward mainly covers two settlements, Kwamagxaki and Veeplaas. During our interaction with residents of both settlements, and the subsequent engagements with the ward councillor, the residents raised the following issues for urgent consideration by authorities. The Kwamagxaki residents raised the following issues, in no order of priority: • Leaking water pipes and meters; • Roads with potholes and some untarred; • Water fountains which are reducing the durability of their houses; • Inaccurate municipal electricity and rates billing system; • Delays in the issuing out of title deeds to deserving people; • Lack of clarity on the substance and implementation of the indigent policy as some households are headed by children and or unemployed persons; • The long turn-around time of the community services department, resulting to unhealthy environment and the mushrooming of illegal dumping sites; and • Daily increasing levels of crime. The Veeplaas residents raised the following issues, in no order of priority: • High rate of unemployment and lack of opportunities thereof; • Lack of or poor street lighting and playing grounds; • Slow pace of houses delivery resulting to unending mushrooming of shacks; • Overcrowded and poor state of the clinic; • Road with pothole and some untarred; • Sewerage spilling over the street due to poor maintenance; • No legally agreed to, occupation of the official buildings (incubator) by political parties in the ward; • Lack of communication between the ward councillor and municipal officials with regard to show houses; and • Lack of support for local initiatives like the carwash, cleaning of the Chetty River, fencing of cemeteries which initiatives may result to job opportunities. Although the two communities may not share exactly the same socio-economic circumstances, their service delivery issues raised above, are similar and related. This reality presents an opportunity for the municipality to consider implementing ward-based service delivery and development approach as an intervention method. The ward based planning and implementation approach to service delivery, which is central in the Back to Basics Campaign championed by the Minister of Corporative Governance and Traditional Affairs, Pravin Gordhan, is the way to go. This approach may be piloted in this ward and be implemented to all other 59 wards of the municipality. This will also provide an opportunity for residents to be at the centre of planning and implementing their own developmental programmes, thus owning up to their responsibilities and rights. I urge your respective offices, to seriously consider the suggested intervention and be in contact with the ward councillor and residents of these communities as a matter of outmost urgency. Your prompt and decisive intervention is awaited and appreciated. Yours in service, Mr. Bantu Holomisa, MP President of the United Democratic Movement
Admin
30 Sep, 2015
Diverting ratepayers’ funds in Beacon Bay, Buffalo City
Honourable Mr JG Zuma President of the Republic of South Africa Honourable Mr Pravin Gordhan Minister of Cooperative Governance and Traditional Affairs Dear Mr President and Minister DIVERTING RATEPAYERS FUNDS IN BEACON BAY, BUFFALO CITY MUNICIPALITY The above matter has reference. A group of ratepayers residing in Beacon Bay, Buffalo City Municipality in the Eastern Cape have for period of three to four years, decided to divert their rates to a separate bank account held with PSG, a registered financial institution. This is a civil protest by these residents based on a range of allegations against the municipality. Amongst these is the claim that the municipality has no valid by-law empowering them to force ratepayers to pay rates and that the municipal accounts are not consolidated as required by the Municipal Systems Act. They further allege that the municipality has elected to close ears, and rather threaten them with disconnections whilst they also threaten the municipality with legal action as and when they need information in terms of Promotion of Access to Information Act. The immediate and long term victim of all this is the economy of the area and its poor citizens. If the rates are not paid, the revenue base of the municipality is compromised and service delivery impossible. It is my firm belief that this matter can be resolved without having to go through the straining process of litigation which on its own will have to be funded by citizens. Accordingly, I request your office to make a decisive intervention on this matter to ensure that it is resolved as quickly as possible and in the interest of service delivery. For further information, I am happy to refer you to their spokesperson who contacted me. His name is Mr. Johan Koekemoer Pr Eng whose contact details are: Your prompt and decisive action is awaited. Mr Bantu Holomisa, MP President of the United Democratic Movement
Admin
15 Jul, 2015
Bantu Holomisa writes to President Zuma re sorry state of Moretele Local Municipality in urgent need of Government’s attention
Dear Honourable President, RE: SORRY STATE OF MORETELE LOCAL MUNICIPALITY IN URGENT NEED OF GOVERNMENT’S ATTENTION The above mentioned matter has reference. A few weeks ago, I was invited to a community meeting by the Concerned Residents of Moretele Local Municipality in North West Province. The purpose of the meeting was to discuss and find solutions to the challenges facing their Municipality. In addition to the meeting, the Community had also planned a march on 26 June 2015 to the Municipal Offices to deliver a Memorandum of Complaints to the Mayor. Both events took place, and were a huge success. However, due to circumstances beyond my control, I could not attend these events. Mrs Thandi Nontenja, our National Treasurer, represented the UDM at these events. After receiving a Report from Mrs Nontenja about her visit to Moretele Local Municipality, I felt obligated to write you this letter in order to bring to your attention the challenges besetting Moretele Local Municipality. Below is a summary of the residents’ complaints. For more details, please consult the attached Memorandum. 1. Poor Leadership and Corruption The residents complained about poor leadership and bad management at the Municipality. They accused the leadership of failing to attend meetings and of failing to fulfil their service delivery promises and mandates. They also alleged that some of the senior leaders of the Municipality are involved in corrupt activities. For details, please see attached Memorandum. 2. Water and Sanitation It was with a great deal of shock to hear that about 56 Moretele villages have no access to clean running water and sanitation. These villagers still use pit toilets and have to walk long distances to fetch water from nearby rivers. It beggars belief that more than 20 years into our democracy there are still people, who live in such conditions. This is a serious violation of our people’s basic human rights, as access to clean water and sanitation are fundamental human rights that are essential for life and human dignity. We call on your Government to urgently look into this matter. In so doing, kindly also look into the millions of Rands that the residents claim were spent on the water reservoirs that were either never used or have never worked. 3. Public Works Programmes and Road Infrastructure The residents complained bitterly about the poor management of the Public Works Programmes in North West. They have apparently made numerous requests to the Provincial PWP leadership to discuss the poor state of their road infrastructure, but all their efforts have come to naught. Their roads infrastructure is so poor to the point where most of their roads are impassable. This, needless to say, disconnects these communities from important economic hubs in the Province. As already indicated above, this is a summary of some of the key issues that were raised by the residents of Moretele during their engagements with Mrs Nontenja. For more details, please see attached Memorandum of Complaints. Feel to contact person Thubakgalo at 072 832 0233 should you require more information. We call on your Office to urgently look into the sorry state of this Municipality. I look forward to hearing from you. Kind regards, Bantu Holomisa, MP UDM President
Admin
10 Jul, 2015
UDM President Bantu Holomisa requests an investigation by Public Protector into the Department of Transport – Eastern Cape Province
Dear Advocate Madonsela REQUEST FOR AN INVESTIGATION: DEPARTMENT OF TRANSPORT – EASTERN CAPE PROVINCE – SCHOLAR TRANSPORT. I take this opportunity to table the following matter with you, so that you may please investigate it appropriately for the benefit of the South African public. I have anonymously received the attached information alleging maladministration within the Eastern Cape Department of Transport with regard to the scholar transport. Most importantly is not how it landed on my desk but its contents which we kindly request your office to investigate. The amounts involved here exceeds R15m of public money as well as a list of people whose employment is allegedly not transparent and not according to procedure. I look forward to your excellent investigative work on this matter, and these are the only things I could identify, however, the attached documents will help you to identify relevant offices to be approached for further information which may possibly bring up many more discrepancies that would need to be exposed. Kind regards Mr Bantu Holomisa, MP President of the United Democratic Movement
Admin
07 Jul, 2015
Letter by Bantu Holomisa, MP to President Jacob Zuma: Marikana, UDM proposes a way forward for Marikana Massacre
Dear Honourable President, RE: UDM PROPOSE A WAY FORWARD FOR MARIKANA MASSACRE August 16, 2015 marks the third anniversary of the Marikana massacre. The Marikana massacre stands out as the worst case of police brutality in the post-Apartheid South Africa, where more than 30 miners were massacred by the South African Police for demanding a living wage and an improvement in their working conditions. The Nation and the families of the victims of the massacre eagerly awaited the release of the report of the Marikana Commission Inquiry, hoping against hope that it would once and for all provide answers to lingering questions about what really happened during that fateful day and who was responsible for it. Upon its release, the report fell hopelessly short of expectations. It provides no clear answers and holds no political leader accountable for the tragic incident, which leaves South Africans and the families of the victims none the wiser. In the midst of all this doom and gloom, and notwithstanding the processes that are currently underway to deal with the after effects of the Marikana massacre, there are a few additional options your Office could explore to turn the situation around, and they are: Establishment of a Committee It is our considered view that Government should initiate the establishment of a Committee compromised of all the relevant stakeholders in Marikana to discuss a possible way forward, which should include, but not limited to, compensation to the families of victims. Such a step would go a long way towards addressing the families’ bread and butter issues, as many of them struggle to make ends meet because their bread winners perished in that tragic incident. Annual Marikana Day In order to prevent such barbaric acts from happening again in future, the United Democratic Movement (UDM) proposes that August 16 be commemorated annually as the National Marikana Day. This will also serve as a reminder to both current and future generations that the price of democracy is eternal vigilance against any abuses of power whether by the state or its organs. We will also table this proposal at the first sitting of Parliament in July as a Motion Without Notice in an attempt to get the National Assembly to officially adopt it as its resolution. I Iook forward to hearing from you. Kind regards, Bantu Holomisa, MP UDM President
Admin
08 May, 2015
Letter by Mr LB Gaehler, MP to the Minister of Social Development regarding concerns about abuse of child grants – Hillcrest, Mthatha, Eastern Cape
Dear Minister of Social Development, Ms B Dlamini CONCERNS ABOUT ABUSE OF CHILD GRANTS – HILLCREST, MTHATHA, EASTERN CAPE 1. The above matter has reference. 2. Numerous reports have been given to me verbally about the abuse child grants in Hillcrest suburb in Mthatha Eastern Cape. 3. It is alleged that many of the people who receives child grant are not using them in accordance with the relevant prescripts and as such children are not attending school and not fed properly. 4. I humbly request your good office to investigate this matter and where possible bring sustainable solution by enforcing the application of the relevant regulations. 5. We await your kind intervention. Yours sincerely, Mr LB Gaehler, MP United Democratic Movement NCOP – EC
Admin
04 Jun, 2015
Request for intervention: renewable energy sector challenges in the Eastern Cape
Dear Minister Patel, Minister of Economic Development RE: REQUEST FOR INTERVENTION: RENEWABLE ENERGY SECTOR CHALLENGES IN THE EASTERN CAPE The abovementioned matter has reference. Thank you for the interest you have shown on this matter. This letter highlights some of the challenges faced by renewable energy investors, whose projects are situated in former Homeland areas of the Eastern Cape. I had intended to bring some of these issues to your attention during the Economic Development Budget Vote Debate, but due to time constraints (3 minutes speaking time) I could not do so. While some of the issues here fall under the mandate of the Department of Energy and, to a less extent, the Department of Rural Development and Land Reform, I have decided to include them in an attempt to give you a comprehensive picture – and primarily because they all have a negative impact on the economic development of the aforementioned areas. Please find hereunder the details of the issues I would like to bring to your attention. 1. REIPP Procurement Programme In 2011, the Department of Energy launched the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) consisting of 5 bidding rounds taking place over a five year period. The first 4 rounds saw 79 renewable energy projects being selected amounting to R170 billions of investment by the private sector nation-wide. The Eastern Cape Province was only awarded 1 solar project and 15 wind energy projects by the Department of Energy (DOE). The total Rand value amount of this investment is approximately R26 billion. However, regrettably none of these projects is located in former Homelands, despite these areas representing 40 per cent of the Province’s land mass and 60 per cent of its population. I therefore appeal to you Mr Minister to influence the DOE to spread the benefit of these projects as wide as possible. 2. Socio-Economic Impact of the REIPP Procurement Programme Apart from its primary objective of procuring energy, the DOE has commendably designed the REIPP Procurement Programme as a tool to foster long term rural development within a 50km radius of each project location. The social benefits of this are massive. Each successful renewable energy project is compelled and has to commit to spend between 1 to 2.1 per cent of its turnover on Socio-Economic Development (SED) contributions and Enterprise Development (ED) contributions over the 20 year life cycle of its project. In addition to the job opportunities created during the construction and operation phase, each renewable energy project has to set up a community trust that owns between 5 and 40 per cent of the project’s equity shares and the dividends should be spent on community upliftment projects. The long term benefits are substantial, and will definitely change the face of rural South Africa in the medium to long term. 2.1 Over-concentration of Projects While these policies have massive socio-economic benefits, several challenges about the overconcentration of projects in certain areas of the Province remain. For instance, the majority of Wind Farms in the Eastern Cape are situated in two areas, Jeffrey’s Bay and Cookhouse, and together they have a combined investment value of R26 billion. In other words, the entire R26 billion that has been invested on renewable energy in the Eastern Cape thus far has gone to the two “previously advantaged” areas. Needless to say, this creates a long term imbalance with regard to development in the Province. It is often argued that the Northern Cape also suffers from the same over-concentration of projects in some areas. This over-concentration results in a situation, where a few communities that happen to fall the same within the 50km radius experience massive development, while leaving those who fall outside largely depending on the limited resources of the municipality for development. If left unchanged, this will become a major source of future intra-community inequality, which would lead to major community tensions and instability in future. To balance development in the Eastern Cape and other Provinces, I would like to propose that 30 per cent of the 1 and 2.1 per cent of the turnover companies have to spend on socio-economic development and enterprise development over the 20 year life cycle of the project be channelled to municipal coffers for service delivery across the municipality. Government should also take active steps to address the over-concentration of projects in a few areas. In particular, there should be deliberate focus on projects that are situated in previously disadvantaged communities. 3. Complex Land Tenure Systems: Former Homelands at a Competitive Disadvantage A private investor has to secure land rights before participating in the REIPP Procurement Programme. To acquire such rights on communal land, an investor must follow a lengthy and complicated administrative procedure with the Department of Rural Development and Land Reform, which takes anything between 3 to 4 years to complete. In contrast it takes a couple of months to achieve the same result when land is acquired from a private landowner. Government has to streamline this process if it has to level the playing field. 4. High Community Ownership and the Role of Development Finance Institutions (IDC) In former Homelands, communities are the landowners, meaning that in rural areas instead of dealing with a few farmers as landlords; a developer has to negotiate with several communities and therefore has to ensure that the project will meaningfully benefit tens of thousands of people, who live on the land earmarked for development. However, when the community is the landlord, most developers will back-end the payment of dividends from the community trust as a way to increase the competitiveness of the project. In other words, developers delay the payment of dividends to the surrounding communities by 10 years. This enables a developer to secure much more favourable financing terms for the community trust, which has a direct impact on the improvement of the project’s finances. But the downside of it is that communities have to wait for ten years to get dividends. Again the playing field is not level, as high community ownership stakes and favourable financing terms are required for projects that have thousands of community members as landlords, but there are currently no incentive schemes or reward mechanisms built into the DOE’s selection criteria to reflect the positive long term socio-economic impacts of rural projects. Moreover, development finance institutions do not provide projects located on communal land in Former Homelands any preferential financing terms for community stakes. For instance, the Industrial Development Corporation (IDC) has been very active in financing community stakes for projects located on privately owned land in the renewable energy hotspots with 50km radius overlap between projects. The terms offered by the IDC to project’s located in former Homelands are less competitive than commercial banks. For instance, one of the Wind Farms in Motherwell had to acquire finance from commercial banks in order to finance the community stake due to the IDC’s unfavourable loan conditions. Clearly, IDC failed to play its developmental role of bridging the inequality gap in our economy in this example. It is estimated that in order to finance a 30 per cent community ownership stake for the 400MW of renewable energy projects that are currently being developed in Former Homelands, about R600 million would be required at competitive rates. The amount of R600 million might seem like a lot of money. But it is not out of reach when one considers that the Department of Economic Development has set aside R23 billion to assist black industrialists out a R100 billion rand package earmarked for industrial development. Currently, lack of funding and other challenges force developers, who are located in former Homelands, to reduce community stakes, back-end the distribution of dividends and reduce the percentage of ED and SED contributions in order to stand a slim chance of winning in the REIPP Procurement Programme. In summary, to level the playing field, I propose that two actions be taken by Government: • The DOE gives more credit in its score card to projects located on communal land in the former Homelands. • Development Finance Institutions provide very competitive financial terms for community stakes in order to beat commercial banks and allow projects to be more competitive. 5. Underutilisation of Electricity Infrastructure. Since 1994, the ANC government has successfully built brand new electricity substations in former Homelands in order to give access to electricity rural communities. This new infrastructure represents cheap and rapid means of connecting renewable energy projects to the grid, while placing no additional financial burden on Eskom. However, the large majority of projects selected to date by the DOE require substantial network investment with the associated timing implications, while the country is in the middle of an energy crisis. The DOE has not taken into account the advantages former Homelands offer in terms of rapid, cheap and decentralized energy generation capacity they bring to the Eskom grid. In other words, it is easier to connect the small wind farm projects to the substations that are in rural areas than it is to connect big renewable farms to the same substations for reasons mentioned above. Again, the playing field is not level, as these advantages which have a financial implication for the country are not taken into account. I look forward to hearing from you. Mr Nqabayomzi Kwankwa, MP Copied to: Honourable Elsie Mmathulare Coleman, Chair PC on Economic Development
Admin
28 Apr, 2015
Debate on the African Union’s Agenda 2063: “The Africa We Want”
Address by Mr Nqabayomzi Kwankwa, MP UDM Chief Whip In the National Assembly Debate on the African Union’s Agenda 2063: “The Africa We Want” Thursday, 30 October 2014 Speaker and Honourable Members, On 3 May 1999, respected BBC newsreader and former African correspondent, George Alagiah, wrote in a piece for The Guardian (of London) that, and I quote: “For most people who get their view of the world from TV, Africa is a faraway place where good people go hungry, bad people run government, and chaos and anarchy are the norm. My job is to give a fuller picture. But I have a gnawing regret that, as a foreign correspondent, I have done Africa a disservice too often showing the continent at its worst and too rarely showing it in full flower.” End quote. Making a bad situation worse is that even Africans themselves contribute to the negative African narrative. In a study of Afro-pessimism online in 2011, Matha Evans highlights that, and I quote: “Online expatriate responses to events in South Africa perpetuate its [afropessimist] thinking to varying degrees, with openly racist declarations and fantasies of recolonisation sitting at the extreme of the continuum, and predictions about the country’s decline and apologetic speculations about the benefits of apartheid situated further along the scale.” End quote. Even today there is a litany of media stories both here at home and abroad that propel this negative narrative about Africa. However, beneath this media-fuelled pessimism is a continent that dreams of moving out of the malaise of poverty and underdevelopment and building a new Africa. After many decades of relative economic stagnation, a number of African countries have achieved economic growth through the adoption of prudent macroeconomic policies and have seen improvements in political stability and more transparent elections. Therefore, the African Union’s Agenda 2063 should, among others plans and programmes, serve as a new trajectory for Africa’s development. Despite these achievements, we are aware that in Africa there is a yawning disconnect between word and deed, between our grand plans and implementation. And this disconnect regrettably tends to be couched in idealism rather than pragmatism. To achieve Africa Vision 2063, we must demonstrate the political will to implement our plans and commitments to eradicate hunger and poverty in Africa and by so doing place African countries on a path to sustainable growth and development. In Africa, we should commit to good governance and democracy and do away with the tendency to tolerate authoritarian regimes. As long as we tolerate authoritarian regimes, which brazenly fiddle with the public purse for self-enrichment, we will never remove the detritus that shackles Africa’s potential. We should compel African countries to create conditions necessary to help democracy take root. The success of nations rests on their ability successfully to entrench good governance, promote and consolidate democracy, because where there is democracy there is likely to be observance of the rule of law and of human rights. We all need to put hands on deck to end wars and conflicts in Africa and prevent new ones from occurring. We need to deal in particular with the “Big Men” of Africa who commit to bringing peace and stability in their countries, but simultaneously tear them asunder by conflict and endless civil wars due to, in part, their refusal to relinquish power. Fellow South Africans, Africans need a leadership that is able to reconfigure the hidden dynamics in the world that shape the relationship between Africa as the powerless continent and the mighty in the world, because these are important in how trade and wealth accumulation are determined in the world. We need a good leadership that takes on an iconoclastic character to providing African solutions to African problems. Taking the aforementioned bold steps would ,among other things, help to improve the depressing investment climate on the continent. Fellow South Africans, As we begin the process of implementing Africa’s Vision 2063, we should draw inspiration from the words of Haile Selassie, when he once said, and I quote: “We remain persuaded that in our efforts to scatter the clouds which rim the horizon of our future, success must come, if only because failure is unthinkable.” I thank you.
Admin
17 Apr, 2015
Honourable Kwankwa Requests For A Snap Debate On Xenophobic Attacks In South Africa
TO: Hon. Baleka Mbete, Speaker of the National Assembly From: Hon. Nqabayomzi Kwankwa, MP – UDM Chief Whip Dear Madame Speaker, RE: REQUEST FOR A SNAP DEBATE ON XENOPHOBIA IN SOUTH AFRICA The above matter has reference. We once more find ourselves faced with the challenge of having to deal with attacks on foreign nationals by South African citizens. According to media reports, many lives have once again been lost and property destroyed in the spate of xenophobic attacks taking place in KwaZulu-Natal. To this end, it is the United Democratic Movement’s (UDM’s) considered view that Parliament should lead the debate on this very important matter in order to influence the climate of public opinion. I therefore request you, Madame Speaker, in terms of rule 104 (1) of the Rules of the National Assembly, to place the problem of xenophobia in South Africa on the Order Paper for discussion. I am aware that rule 104 has never been invoked before in the democratic South Africa. However, the violent crimes that have been committed against foreign nationals in South Africa over the past ten years, if not nipped in the bud, are likely to escalate into a vicious fight or a full blown genocide. However, should you, Madame Speaker, feel that this matter is not of urgent public importance, I would be delighted if you would accede to my request in terms of 103 (1) of the Rules of the National Assembly, which would make it just a matter of public importance. We are aware that the rules provide for such requests to only be made during days on which the House sits. However, the UDM is of the view that the urgency and seriousness of this matter warrants that we act without delay. I look forward to hearing from you. Nqabayomzi Kwankwa, MP. UDM Chief whip
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17 Apr, 2015
Address By Mr Bh Holomisa Mp: Statement By The President Jacob Zuma On Violence In Kzn
Hon Speaker and members A country with high levels of poverty, high unemployment rate, high levels of inequality, blended with leadership whose attention is on filling their pockets through corrupt activities, breeds all social evils including criminality. Compounding the situation is that the African Agenda we were once known to be its champions, has taken a back seat. We must agree that, indeed the violence we see today in KZN with a potential to spread to other provinces can be best described as recklessness, inhumane, barbaric and criminal. This debate must immensely contribute to the stoppage of this inhumanity in the history of our democracy. We must also acknowledge that the levels of lawlessness in this country are increasing daily, this has to come to a stop, if we are to redeem our image and attract investors as a country. To respond and address this situation a number of things needs to be done immediately; amongst are the following: • An immediate Presidential visit to the Kingdom of the Zulu nation has to done immediately after this house concludes this debate to share with the King the spirit of the house on this important matter. (Nxamalala ndikulungele ukuhamba nawe siyo Phunga ne Silo Samabandla) • We must contain the current situation in KZN by amongst others enforce the law to the fullest. Such a step must communicate to all, that South Africa is not a lawless society. • The state of our intelligence services requires urgent attention because these activities should have been detected before their occurrence. • Special police units as well as special courts to deal with incidents of sporadic lawlessness must be established nationally. • A comprehensive audit must be conducted on foreigners already in our country, what are they doing where, how and with whom are they engage in those activities. This will help to expose those who are in the country for wrong reasons like corrupt activities including drug and human trafficking. • The poor and slack labour relations regime with regard to foreigners within our labour market needs and urgent review. Included to this is to ensure that those who trade, do so in accordance with the applicable laws of the country. • Aggressively reduce unemployment by amongst others, create more entrepreneurs on soft skills to run small business in the township, salons, small shops, car washes and others. Target young people in particular, train them in these areas and providing seed funding and support to run sustainable business. • Build a sense of responsibility and collectivism amongst the people, motivate them to move away from hand out syndrome into action for their livelihood. • Implement a civic education programme on Africanism targeting young people in-particular to change attitudes towards other Africans and citizens of the world. • We must revisit our policies on people entering and leaving South Africa to ensure full control of our borders. In the words of Kwame Krumah, “Africa must Unite”. I thank you
Admin
01 Apr, 2015
UDM letter to the Public Protector Thuli Madonsela: Request for a forensic audit on Inkandla non-security expenditure
The Public Protector Hillcrest Office Park 175 Lunnon Street Pretoria 0001 Dear Advocate Madonsela REQUEST FOR A FORENSIC AUDIT ON INKANDLA NON-SECURITY EXPENDITURE Following the release of your report on the Nkandla Security Upgrades as well as the Report of the President to the National Assembly; the National Assembly appointed an Ad-Hoc Committee which made the following recommendation with respect to non-security upgrades: “the Committee recommends that the matter of what constitutes security and non-security upgrades at the President’s private residence be referred back to Cabinet for determination by the relevant security experts in line with the Cabinet Memorandum of 2003. Cabinet must report back to Parliament on the steps taken to give effect on this recommendation within three months”. This recommendation was adopted by the National Assembly through a majority vote. On the 18th and 19th of March 2015, the Speaker of the National Assembly convened a meeting of the Leaders of the Parties represented in the National Assembly. The purpose of the meeting was to first advise the party leaders that the Minister of Police has indicated his readiness to present the report on the non-security expenditure on Nkandla. Secondly, it was to secure the support of the party leaders that they be briefed by the Minister of Police on the contents of the Nkandla non-security upgrade report, and in turn for them to agree to blackout what she referred to as sensitive areas, all this was to be done before the same report is presented to the National Assembly. However, during the meeting, I personal asked the Speaker; whether the report is based on the report of the Public Protector or the report of the President and or that of the Ad-Hoc Committee. This question was not answered and it remains not responded to. The above question is critical and at the centre of what I wish to bring to your attention for a possible action. The report of the Public Protector says with regard to the matter at hand: “The President is to: take steps, with the assistance of the National Treasury and the SAPS, to determine the reasonable cost of the measures implemented by the DPW at his private residence that do not relate to security, and which include Visitors’ Centre, the amphitheatre, the cattle kraal and chicken run, the swimming pool. Pay a reasonable percentage of the cost of the measures as determined with the assistance of National Treasury, also considering the DPW apportionment document”. The President in his response to the Speaker said with respect to this matter: “the Minister of Police as the designated Minister under the National Key Points Act, to report to Cabinet on a determination to whether the President is liable for any contribution in respect of the security upgrades having regard to the legislation, past practices, culture and findings contained in the respective reports”. What is interesting in both the report of the Ad-Hoc Committee and that of the President, is the omission of the critical role of the National Treasury. In my understanding, amongst other reasons that the report of the Public Protector would have seen a role for the National Treasury, was the internal expertise within that department in handling matters of this nature. Whilst I have not seen the report, I am unable to see how a determination on this matter could be arrived at, without forensic auditing as I believe that the same methodology could help to verify how much the then architect and contractors at Nkandla could be liable for. It is my humbly request that your good office cause the National Treasury to conduct a forensic audit in order to determine the actual amounts that constitute what is non-security upgrade in Nkandla. I do not see how best this can be done without such scientific process being followed. The President has, during the last question session in the National Assembly, emphasised the need for quantification of costs to be paid by him, if any. He protested, how can, he be expected to pay monies that are not determined and that he does not know. This clearly calls for this methodology to be considered for the finalisation of the matter. I look forward to your excellent guidance on this matter. Kind regards Mr Bantu Holomisa, MP President of the United Democratic Movement
Admin
30 Mar, 2015
UDEMWO calls for investigation on involuntary sterilisation of women by health workers
Dr Aaron Motsoaledi Minister of Health 4th Floor, Room 417 120 Plein Street Cape Town 8000 Dear Honourable Minister UDEMWO calls for investigation on involuntary sterilisation of women by health workers Recently there were allegations of doctors and nurses who perform gruesome practice of sterilisation to women without their consent. No one has the right to perform such a heinous procedure without the consent of the patient; the fact that the women are living with the virus does not mean they are less human. Adding insults to injuries most of these women are those living with HIV/AIDS. This is surprising and offending to us as women especially in this day and age of human rights. The United Democratic Movement Women’s Organisation (UDEMWO) is even more dismayed to learn that this horrible practice is taking place in both private and public hospitals in most provinces in the country. The rights of women have been once again violated and taken for granted by the health officials. It is important to remind officials that the duty of health workers is to help the community and not to make them feel less human. Living with HIV/ AIDS should not be seen as a death sentence to those infected and affected by it. So far 48 cases of involuntary sterilisation have been documented. This takes away the dignity of women. It permanently violates the right of women to have any babies when they are ready to do so let alone the risks it brings to women living with the virus. This is unacceptable and UDEMWO demands answers to this matter. We are calling upon you Dr Motsoaledi along with your department to investigate these serious allegations. Doctors and nurses who are found to be responsible for these demoralising actions must be severely punished for their inhumane and unethical behaviour. Yours sincerely in nation building, Thandi Nontenjwa UDEMWO SECRETARY GENERAL
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20 Aug, 2014
UDM Letter to President Zuma about political parties’ participation in national events: Women’s Day 2014
By Mr Bantu Holomisa, MP I refer to the Department of Arts and Culture, the Department of Women, and the KwaZulu-Natal Provincial Government’s hosting of the National Women’s Day celebrations at ABSA Stadium on 9 August 2014 at the eThekwini Metropolitan Municipality which was later changed to King Zwelithini Stadium. The United Democratic Movement (UDM), however with regret notes that the representatives of other political parties were treated as mere window dressing. The provisions of the policy in this regard, where representatives of other political parties participate in the programme, were undermined during this state function. A clear bias was shown with only the ruling party that was acknowledged and was allowed to address the gathering. We saw women in full ruling party’s women’s league regalia, it was like and ANC Women’s League rally. Since the adoption of the relevant policy, this was anomalous. This speaks to a matter that the UDM has raised time and again i.e. that there must be clear distinction between state and party. This situation makes us wonder why we should continue to honour and respect national events organised by government if the very regulatory framework governing such events are not respected by government. The UDM believes that unless this situation is corrected there will be no reason for it to be associated with abuse of public funds by the ruling party in the name of official state events. In conclusion, the UDM proposes that you conduct an urgent investigation into this matter, and pronounce on whether government policy has changed or there are other policies by the ministers. In the event the policy you pronounced remains in force, do indicate what actions are to be taken to rectify the situation before the next event. We await your kind response.
Admin
30 Jul, 2014
UDM proposed meeting between you and the leaders of political parties in parliament
Mr MC Ramaphosa Deputy President of the Republic of South Africa Leader of Government Business in Parliament Tuynhuys Private Bag X1000 Cape Town 8000 Dear Mr Deputy President PROPOSED MEETING BETWEEN YOU AND THE LEADERS OF POLITICAL PARTIES IN PARLIAMENT The above matter has reference. On behalf of the United Democratic Movement (UDM) I congratulate you on your appointment as the Deputy President of the Republic of South Africa, as well as the leader of government business in national parliament. We are pleased to have someone of your calibre, who is widely respected as a skilful and formidable negotiator, who in 1991 as head of the Codesa negotiation team of the African National Congress (ANC), gave substance to our aim to build the South Africa we all want. Your institutional memory will certainly contribute immensely to remind us of the kind of democracy we all want and strive for. Whilst we agree that over the past twenty years significant progress has been made, we note with concern the stagnation and/or lack of proper leadership on important matters, some of which I cite hereunder. Matters pertaining to our democracy and the role of political parties 1. Regular meetings of political leaders In the past, South Africa had a dispensation where multi-party democracy was fostered through communication between government and political parties at a national level. It made for a situation where transparency and confidence were promoted – in other words there had been greater mutual trust between the cogs of the wheel that moved our country forward. As a particular hallmark of the terms of office of former Presidents Mandela and Mbeki this was done through regular meetings between the presidency and political parties. We therefore strongly recommend that regular meetings should take place between the leaders of all political parties in parliament and the presidency to discuss matters of national importance. 2. Review of the legislation governing political party funding Delays in resolving this matter has resulted in court action by a civic movement inviting political parties to show cause as to why new legislation, that govern the funding of political parties, cannot be introduced. Whoever will represent parliament in court will have to obtain a mandate from all political parties and not just one. There will be a need for the political parties represented in parliament to coordinate their replies to the court papers to avoid confusion and to do everything possible to avoid the wasteful expenditure of public funds. Regarding this matter, one is reminded that some political parties, like the UDM, have a congress resolution. We are further reminded that your party took its own resolution regarding the matter at the ANC’s 52nd conference held in Polokwane in December 2007. Both parties have endorsed the need to have this legislation reviewed so as to make it impossible for big business or individuals to buy political clout and/or source government contracts. It should therefore be easy to resolve the matter to avoid legal action and save money. 3. The allocation of debate time in the house The so-called “proportional” allocation of debate time in the house is sometimes difficult to explain. For instance, a “one member party” is allocated three minutes, which is the same that is allocated to a “four member party”. At face value, this time allocation favours the majority and the official opposition. This requires proper regulation in order to ensure robust and healthy discussions that give a voice to the entire electorate. The UDM outright rejects the current argument of the ANC whips that opposition parties depend on the ANC for debate time and/or that they are using ANC time. It cannot be that political parties take instruction from the ruling party. There should be clear standing regulations and presiding officers should have a formula to guide this proportional allocation of time to ensure that all parties are given enough time to make quality contributions to debates. The UDM strongly argues for a minimum of five minutes for a “one member party” and more proportionally allocated time to those parties that have more members, in order to represent their constituencies effectively. Issues affecting the citizenry and the country 4. Blurring the line between party and state This is a matter of serious concern that finds more expression during electioneering where it is difficult to differentiate between state and party functions. These past elections have shown again how easy it is to use state resources to thinly veil election campaigns. You will agree that we need to give this key issue the urgent attention it deserves in order to stop the misuse of state resources. 5. Civil disobedience and violent protest We find this last matter on our list the source of greatest worry. In far too many instances, and increasingly so, public protests in South Africa are characterised by violent lawlessness and a crippling culture of anger which results in the destruction of private and public assets. We must straightaway address the frustration of our people where they feel there is no other way of communicating with government and arrest the few malicious criminals who exploit this situation and incite lawlessness. In conclusion, the UDM proposes that you convene an urgent meeting with all leaders of political parties in parliament to discuss, amongst others, the items we have raised above. Other parties may however have additional items that they would like to place on the agenda. Should this proposal find your favour, we ask that your office organise and facilitate such regular meetings, and that it consults with other parties to ascertain which other matters they may want to discuss We await your kind response. Yours sincerely Mr Bantu Holomisa, MP President of the United Democratic Movement
Admin
13 May, 2014
Elections 2014 – Thank you to UDM supporters and members for hard work
Dear All Thank you for your support and votes in the National and Provincial elections on May 7th. I would also like to extend my appreciation to all the United Democratic Movement (UDM) members and leaders. We have all had the opportunity to meet so many amazing, progressive people throughout this campaign period, I hope that each and every one of you stays in touch and stays involved. I can confirm that the UDM has been allocated two seats from the National List [10th] and two seats from the Regional List to National in Eastern Cape, making the total of four seats in the National Assembly. We also qualify for a seat of a permanent delegate to the National Council of Provinces (NCOP). In total the UDM will have five Public Representatives represented in Cape Town. Looking at the UDM candidates who will be sworn-in in the National Assembly we were challenged when it comes to gender balancing. In the last five years we have been coming under heavy criticism in the House because the UDM did not have a female representative. Mr Lennox Gaehler who is one of the candidates will voluntarily go to the NCOP and accommodate a woman candidate in the National Assembly (Ms Cynthia Majeke). Let’s continue to build the movement. I have faith in the Party and faith in the people of South Africa especially UDM members. Yours in Party building, Mr BJ Msomi UDM Secretary General
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22 Apr, 2014
Government not honouring contractual obligations at the expense of small businesses – Dimbaza
TO: His Excellency, Mr JG Zuma, President of the Republic South Africa Minister of Trade and Industry, Dr Rob Davies Chief Executive Officer: Coega Development Corporation, Mr Mninawe Silinga FROM: Bantu Holomisa, MP Government not honouring contractual obligations at the expense of small businesses – Dimbaza See below, correspondence from Mr B Willows, representative of SBM Iron and Steel Manufacturers (Pty) Limited from Dimbaza, near King William’s Town in the Eastern Cape. Mr Willows clearly outlines the history of the situation and the company’s frustrations with government’s non-payment since February 2012. This is yet another example where government’s administrative bungling results in the non-payment of its service providers. This unacceptable situation is proof enough that the promises recently made by the national chairperson of the ruling party, Ms Baleka Mbete, are hollow. Government touts small business development and entrepreneurship as a focus points to generate jobs, however actions speak louder than words. It is an undeniable fact that government is responsible for ruining many companies, because of its non-payment, thus forcing them to close their doors. Clearly the past, and current, election promises of the ruling party is nothing more than election rhetoric that never realises at grassroots level. We call on you and the relevant authorities to urgently attend to this matter. Kindly advise Bantu Holomisa, MP UDM President ——————————————————————————————– To: The Honourable Bantu Holomisa 17th April 2014 Dear Sir. My name is Barry Willows and I represent SBM Iron and Steel Manufacturers (Pty) Ltd herein after referred to as (SBM). In September 2011 we were in the process of concluding a deal to open a Steel Plant in the Coega Industrial Development Zone (CDZ). We had a site reserved right next to another applicant, called Agni Steel SA. In October 2011, we were approached by Economic Development Department (EDD) asking us to please consider moving our operation to Dimbaza, as Scaw Metals were closing down their foundry and retrenching 500+ staff. We agreed to look at it and after a rapid Due Diligence, and decided that it would be beneficial to construct a steel plant in Dimbaza, but would need to conduct a Detailed Feasibility Study (DFS) first. EDD agreed and they applied to the Employment Creation Fund for funding to conduct the DFS, and the structure was that EDD owned the Dimbaza DFS Project, and SBM were appointed as the Implementing Agency to conduct the study. In February 2012 the ECF approved the funding for the DFS. Memorandum of Agreements were drawn up between the DTI and EDD, and EDD and SBM respectively. These were signed by all parties in January 2012, and the transfer of funds was to occur within 30 day thereafter. Initial investigations by SBM showed the potential to open a steel mill and a Direct Reduced Iron (DRI) Plant, which combined has the possibility to create 700+ direct jobs. A support Letter was received from the ECDC offering SBM the use of any or all vacant factory space in Dimbaza. Besides the steel mill and DRI plant, the DFS is designed to convert all disused factories in Dimbaza into a steel hub or cluster whereby small businesses will be set up to fabricate products from the steel mill such as window and door frames, reinforced concrete, nuts, bolts, screws, nails, Eskom pylons, a galvanising plant etc. The aim is to create between 3000-5000 jobs and entrepreneurs in Dimbaza. To cut to the chase; let us fast forward to April 2014. Despite many promises of payment, continued correspondence, pleas, requests etc, absolutely nothing has happened. In fact, just last month March 2014, the DG of the DTI has requested a re-verification of all projects, whether approved or not to be conducted by Ernest and Young. So in effect the Dimbaza Project is right back to BEFORE we started. Whilst EDD and SBM felt this was unnecessary as this is only a feasibility study, SBM complied and a re-verification has been done on the Dimbaza Project, there has still been no further communication from the ECF and both EDD and SBM do not know what is happening. Agni Steel have since opened a R400 million billet plant at Coega, whilst SBM have still not received one cent to conduct the DFS to assess the viability of a Steel mill and cluster in Dimbaza. This has clearly frustrated job creation in the area, and we are concerned that this may continue as SBM and EDD receive information from the ECF that continuously fails to materialize. SBM has been promised the “Transfer of Funds” on so many occasions, but absolutely nothing ever comes of it. It continuously gets delayed for some reason or another. We have (and have had for over 14 months now), signed legal and binding agreements but still nothing ever materializes. All documentation is complete and with the ECF including tax clearance certificates etc, so there is absolutely no reason whatsoever for these hold-ups, but still they persist. We are appealing for your intervention as we know the Eastern Cape is very close to your heart, and we pray that we will be able to conclude the DFS as soon as possible so-as to possibly get a steel mill up and running and change the fortunes of the unemployed and destitute in Dimbaza. It would be greatly appreciated if you could intervene in the hope that you may be able to accelerate the process so that the Dimbaza Project can actually materialize and an employment initiative can be explored. Thank you and we look forward to implementing this exciting project soon. Kind Regards. B Willows SBM Iron & Steel Manufacturers (Pty) Ltd.
