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11 Feb, 2026
UDM Johannesburg demands accountability over R1 million ‘ghost wall’ payment
Statement by Yongama Zigebe, Councillor in the City of Johannesburg for the United Democratic Movement and Chairperson of the S79 Committee on Gender, Youth and People with Disabilities The United Democratic Movement (UDM) in the City Johannesburg notes with serious concern the reports that a City of Johannesburg entity allegedly paid approximately R1 million for a wall that was never built at the Moffat View Old Age Home. According to media reports, the payment was authorised despite the work not being completed, with photographic evidence allegedly not reflecting the actual site. This matter, involving the Johannesburg Social Housing Company, strikes at the heart of governance, financial oversight and ethical leadership within the City’s entities. Whether the funds were later recovered or not, the fact that such a payment could be processed raises fundamental questions about internal controls, verification systems and consequence management. Johannesburg residents are battling deteriorating infrastructure, housing backlogs, unsafe buildings and declining service delivery. At a time when every rand must stretch to serve the poor and vulnerable, allegations of payments for work that never materialised are not just irregularities, they are betrayals of public trust. We note that internal investigations and forensic processes have reportedly been initiated. However, the UDM in the City Johannesburg insists that transparency must accompany these processes. The people of Johannesburg deserve clear answers: 1. Who authorised the payment and on what verification basis? 2. What due diligence was conducted before disbursement? 3. Were supply chain processes followed? 4. What disciplinary steps have been taken against implicated officials? 5. How will the City strengthen controls to prevent recurrence? The UDM in the City Johannesburg further calls on the City Council and the relevant oversight committees to exercise their constitutional responsibilities without fear or favour. If wrongdoing is established, there must be visible and swift consequences. Accountability cannot depend on media exposure. This incident once again underscores the urgent need to professionalise municipal administration, depoliticise appointments in city entities, and ensure that senior positions are filled on merit and integrity, not networks and patronage. Johannesburg cannot afford “ghost projects” while communities live without basic infrastructure. Every cent mismanaged is a cent stolen from residents who rely on the City for housing, safety and dignity. The UDM in the City Johannesburg will continue to monitor this matter closely and will push for full disclosure and corrective action. Clean governance is not optional. It is the minimum standard our people deserve.
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09 Feb, 2026
The slow collapse: banal corruption and state failure
Statement by Zandile Phiri, Acting Secretary General of the United Democratic Movement Recent reports of queue jumping and the exploitation of desperate citizens at offices of the Department of Home Affairs expose a form of corruption that is often ignored precisely because it appears small, routine, and ordinary. This is not grand corruption involving dramatic scandals or massive sums of money. It is banal corruption: the everyday abuse of a malfunctioning system, where inefficiency becomes profitable and desperation is quietly monetised. When access to identity documents, birth certificates, or civic registration depends on who can pay a small bribe or find a “fixer”, corruption has been normalised. This is not a new phenomenon, but one that has steadily worsened over time, nor is it confined to the Department of Home Affairs alone. If grand corruption is a robbery, banal corruption is termites in the walls. By the time the building collapses, everyone swears they did not notice the damage. Yet it is this slow, continuous erosion that weakens the state long before any spectacular collapse occurs. Banal corruption leaves a trail that South Africans know all too well. It is visible in roads that crumble months after being “rehabilitated”; in water and sanitation projects that consume millions yet never quite reach completion; in wastewater plants that repeatedly fail compliance without consequence. It is seen in clinics without medicine, ambulances without fuel, schools without textbooks, and housing projects that stall while contractors are paid. It is present in municipalities that cannot produce basic records, where audit findings are repeated year after year, and where failure carries no personal cost. At Home Affairs, banal corruption feeds on long queues, broken appointment systems, understaffed offices, weak supervision, and the absence of visible accountability. Informal queue-jumpers and fixers thrive not because the system is complex, but because dysfunction is tolerated and allowed to become a business model. The greatest victims of banal corruption are the poor and vulnerable. Those seeking documents for grants, school registration, employment, or healthcare are exploited precisely because they cannot afford to wait indefinitely or return repeatedly. What should be a basic constitutional right becomes a daily humiliation. Banal corruption can be defeated, but only if government confronts it deliberately and consistently. This requires fixing the conditions that allow it to exist by restoring functional systems, predictable turnaround times, and orderly queues that cannot be manipulated or sold. It requires visible management at frontline offices, clear service standards, and strict supervision of high-risk points of service delivery. Most importantly, it requires real and visible consequences. Officials who enable, ignore, or benefit from petty corruption must face swift disciplinary action. Quiet transfers and internal reshuffles are not accountability. Consequence management must be public, consistent, and unavoidable. Government must also draw a firm line between politics and administration. Political interference in queues, procurement, staffing, or service prioritisation is a major driver of banal corruption and must end. A professional, protected public service is essential if integrity is to be restored. Whistleblowers and ordinary citizens must be protected and empowered. Reporting corruption must be safe, simple, and worthwhile. Silence thrives where people believe nothing will change and retaliation is guaranteed. The UDM cautions that focusing only on headline corruption scandals while ignoring these everyday abuses is a serious error. Banal corruption is the seedbed of larger corruption. It normalises dishonesty, erodes discipline in the public service, and teaches citizens that the state only works for those who can pay. A state does not collapse overnight. It collapses quietly, one compromised queue, one incomplete project, one normalised injustice at a time. Confronting banal corruption is therefore not optional. It is essential to restoring trust, dignity, and the rule of law.
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08 Jan, 2026
Speech by the President of the United Democratic Movement Maj. Gen. (Ret.) Bantu Holomisa, MP KwaTshezi Great Place
Traditional Leaders present here today, Community elders, Women and youth of KwaTshezi, Leaders of civil society, Councillors, Fellow South Africans, I am honoured to be here at KwaTshezi Great Place, near Coffee Bay, to engage directly with the people of this area. Let me begin by expressing our sincere gratitude to the people of this great place. You are among those who made a conscious decision that South Africa should not become a one party state a chapter that belongs firmly in the past. That decision strengthened our democracy and reaffirmed the principle that leadership must always be accountable to the people. For that we thank you. History has shown us that when power is concentrated for too long accountability weakens. Even law enforcement agencies have not been spared. When one reflects on the issues raised through the Madlanga Commission and the corruption exposed by General Mkhwanazi it becomes clear that under a one-party state some individuals, including General Mkhwanazi, would not still be occupying positions of authority today by virtue of being whistleblowers. This reality reinforces the urgency of ethical leadership. Towards the end of 2025 at the Cabinet Lekgotla one of the key resolutions tabled dealt precisely with this crisis of accountability. President Cyril Ramaphosa openly expressed frustration and anger at the slow pace and lack of prosecutions in corruption related cases. He went as far as to state that ministers or directors general who fail to act or who serve as gatekeepers for criminals should pack and go. The doors are open for them to leave. That is what he said. Another key resolution was the implementation of the Zondo Commission findings. I therefore anticipate that 2026 will be one of the years in which the Government of National Unity places strong emphasis on strengthening the criminal justice system. This will help restore confidence in the country’s leadership and enable decisive action on the triple challenges facing the nation. There can be no rebuilding of the country without consequences for wrongdoing. During the same Lekgotla, high levels of crime, unemployment, and the challenge of illegal immigration were also discussed at length. The reports of the Auditor General over the past thirty years tell a painful story. Announcements without implementing, findings without consequence management, and a culture of impunity across the board. Unfortunately this pattern has also engulfed the Department of Defence. People are aware of the pending criminal cases against the former Minister of Defence. This is part of what we inherited as a Government of National Unity, and we are confronting it directly. Within the Department of Defence, the Hawks, the Auditor General of South Africa, the Special Investigating Unit, and the Military Police are now working together to restore integrity and clean the image of the department. I am proud to say that I have been part of coordinating this operation. The Auditor General has highlighted that there is improvement in addressing their queries. Acting on a whistle blower report, I took steps to halt an irregular tender at Armscor in 2025. The Armscor Board subsequently cancelled that deal. We are currently following up on calls by Members of Parliament to investigate a contract in which Armscor allegedly awarded a tender for troop armoured plate carriers. This work is not easy. We are dealing with a culture that developed over nearly thirty years where the misuse of state resources became normalised. The era of state capture embarrassed South Africa and severely damaged its institutions. By the end of the Government of National Unity term when, we hand over to the next government after 2029 election, we must be able to present a report that reflects a country in a far better state one that has decisively addressed the failures of the past three decades. We saw early warning signs as far back as the 1996 Sarafina Two scandal and later, the 1998 Arms Deal. Auditor General reports on the South African National Defence Force point to lack of accountability weak consequence management and alleged corruption dating back as early as 2006. We do not have the luxury of time. We must deal decisively with corruption namasela without fear or favour. The stolen money from departments, state owned entities, and parastatals has directly contributed to the collapse of infrastructure and the failure to improve services. It is the reason communities still lack proper roads, schools, clinics, fibre connectivity, police vehicles, and military equipment. Corruption is not an abstract crime. It is the reason people continue to suffer. We therefore congratulate the recently appointed National Director of Public Prosecutions, Advocate Mothibi, and wish him well in his role. As a former head of the Special Investigating Unit, he has first hand knowledge of how corruption has damaged South Africa. We urge him to prioritise the backlog of cases within the Defence Force that have placed significant pressure on the National Prosecuting Authority. In the same vein, I wish to commend the Special Investigating Unit for recovering over 1.6 billion lost within the Department of Defence, declared when they were briefing the portfolio committee on defence in a closed session. We look forward to working with the new head of the SIU and stand ready to cooperate fully with his team to restore integrity and accountability. That is why the unfulfilled promises to this area are so painful. The people of KwaTshezi were promised water from the Mthatha Dam to Coffee Bay. Trenches were dug and later filled in again. No water came. Neither have there been action taken against the fingered officials of the OR Tambo District who allegedly squandered the funds for this project. You were promised a proper road from the Viedgesville off ramp on the N2 to Coffee Bay. Former Minister Mbalula and SANRAL assured the community that a new road would be built, yet nothing materialised. Another route that has deteriorated severely is the turnoff from the Coffee Bay route that links it to Elliotdale. Its condition is now worse than it was in the past, to the point where sections are no longer usable. Today, these roads remain in a state of severe disrepair. These roads lead to tourism centres where international resorts such as Coffee Bay and Hole in the Wall resorts are housed. As residents of King Sabata Dalindyebo particularly here in Mqanduli we must now act collectively. There is a need for a formal approach led by traditional leaders, civil society, councillors, and community representatives to engage the national government directly. This approach must not be a talk shop. It must demand clear commitments on roads infrastructure and development timelines. It must also summon network providers Vodacom, MTN, and Telkom to account for when rural connectivity especially in Mqanduli will be improved. As we approach local government elections, we must also confront governance failures honestly. In line with what you have declared at the national level to get rid of one-party dominance, that must be reflected in the upcoming elections. Your vote can give way to concept of coalition governance to cascade to municipalities such as King Sabata Dalindyebo and OR Tambo District where long standing problems persist. Where systems fail communities, alternatives must be explored in the interests of the people. Finally, the process that began in 2024 of sharing power among political parties has made it clear that after the 2029 elections, it will no longer be a foregone conclusion which party provides the President of South Africa. We must therefore remain vigilant and begin serious discussions about the kind of leadership required to take South Africa forward beyond this term. The communities here must satisfy themselves that we will have leaders who would have passed the test of public scrutiny. The people of KwaTshezi are not asking for miracles. They are asking for honesty accountability and action. That is a fair demand and one we must meet. I thank you.
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23 Sep, 2020
Holomisa submission to the state capture commission: the real mastermind behind state capture
Deputy Chief Justice RMM Zondo Chairperson of the Judicial Commission of Inquiry into State Capture PO Box 31322 Braamfontein 2017 Per the acting Secretary of the Judicial Commission of Inquiry into State Capture Dear Sir SUBMISSION TO THE COMMISSION: THE REAL MASTERMIND BEHIND STATE CAPTURE 1. Corruption: a cancerous tumour 1.1. One of government’s major mistakes is delaying the implementation process to deal with corruption and addressing maladministration. It is evident that incompetence and corruption has collapsed and downgraded this country, thereby costing our economy billions of Rands. As a result of this undesirable culture, many municipalities have crumbled, because there are no effective structures to stop corruption, and to prevent maladministration and mismanagement of funds. 1.2. We acknowledge that measures have been taken, such as the formation of the Judicial Commission of Inquiry into State Capture (‘the Commission’) so that it may establish who has captured the state, but the process has been laborious and, in our view, not nearly far-reaching enough. 1.3. The former Public Protector, Professor Thuli Madonsela, had revealed that the Gupta family had effectively captured the state, however, as it turns out, the real architect of corruption is the ruling party itself, the African National Congress (ANC). 1.4. Accordingly, the Commission has been making the ruling party’s head honchos account for their alleged acts of corruption, but there is much more to this iceberg than what is presented to the public. Although the media and opposition parties, like the United Democratic Movement, have exposed some of the ANC and their leaders’ misdeeds, I believe most of it is kept diligently under wraps, because it might be the lurking iceberg that finally sinks the ANC Titanic. 1.5. The ANC and its leaders have misused state funds through companies like Bosasa, Chancellor House, Mohlaleng Media and Maverick State, to mention but a few. Looting from public resources has become a habitual act to fund the ANC by whatever means necessary, whether it be by paying its cadres’ exorbitant salaries or financing their election campaigns by any means necessary. 1.6. It is repulsive that this brazen looting takes place right under the noses of the authorities, whilst parliament’s oversight has not been effective either. The powers of the accounting officers have been usurped by the executive, consequently it has also affected the performance of state-owned enterprises. 1.7. The Commission’s terms of reference states that your work shall be guided by the Public Protector’s state capture report and we have noticed from the testimony that other accounts of corruption have been creeping out of the woodwork. It is therefore evident that there is a ‘big picture’ corruption that must be looked at. 1.8. Whilst much is made of Guptagate implicating former President Zuma and some other insatiable cadres, the fact that the corruption and looting at all spheres of government is to the benefit of the ANC itself, is negated. The Commission should therefore investigate the involvement of the ANC in acts of corruption, in totality. 1.9. This institutionalised corruption is not new, and it can be traced back through the previous decades. Even the Commission of inquiry into allegations of impropriety regarding Public Investment Corporation (‘PIC Commission’) quoted my testimony where I said that: “One of the most difficult tasks regarding dealing with the type of corruption that is alleged to have happened at the PIC is the sophisticated nature of the transactions. Corruption can come in two forms, legal and illegal corruption. Legal corruption occurs when the elite build a legal framework that protects corruption or manipulate existing legal framework without necessarily breaking the law.” 1.10. The PIC Commission concurred with my statement when they said in their report to the President that: “When going through the story of Harith, these words resonate. The layering of legal entities (state owned corporations, pension funds, banks, companies and trusts and partnerships etc.), when applied by financiers and corporate structure experts, can make finding the substance, and not form, of a transaction or series of transactions complex and quite perplexing. These layers also give the players in such a formation use ‘plausible deniability’ most effectively, as looking through all the conducts is challenging and time consuming.” 1.11. This designed incompetence permeates our law enforcement agencies, such as the police, the Directorate for Priority Crime Investigation (Hawks), the Special Investigating Unit (SIU) and the National Prosecuting Authority (NPA), which all have dismally failed to investigate and prosecute the reported culprits. One must be honest in one’s assessment of the competence of the state’s investigative and judicial resources. It is a given that the state lacks such competence in all respects, whilst the same is further exacerbated by means of prevalent corruption within the ranks of these institutions themselves. 1.12. The gate keepers of maladministration are the incompetent key administrative personnel who have been deliberately appointed (deployed) to accomplish the agenda of looting state resources on behalf of the ANC and, of course, to feed their own personal greed. It must be borne in mind that the ANC’s cadre deployment policy is just another form of corruption. It is called nepotism for a reason, because making appointments based on party affiliation, friendship and familial connections violate the statute books and is patently wrong. Cadre deployment deprives our civil service of talented individuals and we have thousands of young South Africans with degrees who cannot find jobs. 1.13. Epidemic levels of corruption handicaps service delivery which results in many violent protests. Not only that, prospective international investors shun South Africa because of the high levels of corruption and sadly our people are paying the price. Ultimately, corruption is destroying the gains of our freedom and patriotic South Africans have lost all hope and endlessly question the so-called measures put in place to address this untenable situation, whilst the ruling party itself perpetuates corruption in order to sustain itself. 1.14. Let us remind ourselves of what the late, former President Nelson Mandela admitted, already in 1998, about corruption in South Africa: “Unfortunately there are officials who betray their calling… this is part of the wider cancer of corruption that is undermining our efforts in all areas of society. We have learnt now that even those people with whom we fought the struggle against apartheid’s corruption can themselves become corrupted.” 1.15. The sad state of affairs is that the liberators of yesteryear have become the perpetuators of this immoral pillaging of state resources, whilst we are misdirected in our focus on the Gupta’s involvement in state capture. 1.16. The true architects of state capture are those who run government and its institutions in collusion with certain elements within the private sector. The private sector, which particularly benefits from government tenders, is represented by individuals who are shareholders in large corporations. These individuals appear to represent the private sector, but instead they use corporate fronts that merely return the loot to the ANC. These individuals also represent the corrupt interests of the ruling party in that they are either ANC stalwarts or that they are connected in one or other compromising manner to that party, politically or otherwise. 2. A Nelson Mandela Bay example: Mohlaleng Media, the ANC’s access to public funds 2.1. The purpose of this letter is to request the Commission to investigate the mechanisms used in government institutions to misuse state funds, especially at local government level. 2.2. I was recently briefed, on the matters which I raise below, by Mr Werner Wiehart, a persecuted forensic investigator formerly employed by the Nelson Mandela Bay (NMB) Metropolitan Municipality. He indicated to me that he had forwarded the information to numerous political parties and as well as the Commission (See Annexure A), but I took the liberty to meet with him last week and wish to report the matter to you formally. 2.3. The matter centres on how municipal funds have been looted by the ANC over, at least, the past fifteen years in NMB. Some information is already in the public domain including those that have been reported to the police, Hawks, NPA and the Public Protector. 2.4. The documentary evidence, which I have in my possession, convinced me that there is prima facie evidence that NMB municipal funds were looted for the ANC’s benefit, to fund its operations and to sustain itself. Questionable entities or companies (which are non-compliant with tax obligations and also lack related tax and billing clearances) and the registration of multiple enterprises simultaneously, are used as tools to achieve their dastardly goals. 2.5. Furthermore, I noted that law enforcement agencies remain actionless where corruption in the NMB municipality, more often than not, remains uninvestigated – in some cases, for more than three years. I cannot over-emphasise my concern if this is the alacrity with which this government is driving the fight against corruption, whilst little or nothing is achieved to start off with. 2.6. The widely publicised NMB Integrated Public Transport System (IPTS) scandal, in which National Treasury is implicated, is simply not being addressed, except for a single case in court. National Treasury, with particular reference the Chief Director, Mr Jan Hatting, had apparently been informed in writing during October 2012 of the large-scale looting, yet with such knowledge National Treasury continued to make payments thus feeding the large-scale looting scheme over a period of a further three years. So, nothing is happening, whilst the thieves are still trawling through personal protective equipment (PPE) tenders to rake in money to fund the ANC’s campaign for the 2021 municipal elections. 2.7. The evidence in my possession shows that, according to Mr Wiehart, there were three key players from Luthuli House involved, namely, Mr Pravin Gordhan (then Minister of Cooperative Governance and Traditional Affairs), Dr Crispian Olver (famous author of “How to Steal a City: The Battle for Nelson Mandela Bay: An Inside Account) and Mr Cheslyn Mostert (a well-known ANC operator), who presented themselves as those mandated to address the NMB municipality’s issues; a process which led to the appointment of Mr Danny Jordaan as executive mayor and Mr Johann Mettler as acting city manager. 2.8. The same process led to the suspension (with full pay) of some municipal officials and their subsequent resignations, as well as some limited dismissals. Amongst others, these suspensions and resignations were caused by the allegations that some of the employees benefited from the IPTS deal. 2.9. Prior to the aforementioned ‘Luthuli House intervention”, the opposition, the media and the people were voicing out their anger about the IPTS corruption and as a result our Mr Mongameli Bobani, an ordinary councillor at that point in time, asked the Public Protector in October 2014 to investigate the matter. The Public Protector’s Advocate Tom had apparently investigated, but the final report was never made public. The municipality had appointed legal firms which have cost the rate payer more than R100 million over three years. 2.10. The evidence shows that the hand of Dr Olver extends beyond ‘helping the municipality’, but that he also played a role in the mismanagement of funds which were channelled to the ANC through a company called Mohlaleng Media, which served exclusively as the propaganda machinery of the ruling party in NMB. In this email Dr Olver informs the acting city manager that: “Here are the two CVs from Cheslyn, together with the draft letter to be signed and sent back to him, and the rates for the resources has set out in the SLA. The start date in the letter needs to be changed to Monday Next Week.” 2.12. A “tender” for R7,5 million was awarded to Mohlaleng Media, however the municipality failed to comply with its obligations in terms of the Municipal Finance Management Act to conclude the prescribed SLA which had to be signed between the municipality and Mohlaleng Media prior to commencement of any services. In fact, on assessment of the information, it is evident that Mohlaleng Media’s bid is riddled with fraudulent information, whilst even the entire procurement process was rigged from inception in favour of Mohlaleng Media. 2.13. Mohlaleng Media operated from December 2014 to February 2016 before any so-called SLA was signed on a fraudulent basis and of course the ratepayer footed the bill. This so-called SLA is referred to as an addendum to a former SLA, which never existed, hence, fraud. The tender/contract period entailed three years, however the bid value of R7,5 million had already been exhausted within the first ten months of the contract period. 2.14. Documentary evidence reveals that Mohlaleng Media invoices merely claimed monthly “resource cost” which eventually reached the amount of more than R21 million versus the actual approved bid value of R7,5 million over three years. These invoices were specifically created in such a manner to conceal the true nature of the work/service performed by this ANC aligned communications machine. 3. Mohlaleng Media forensic investigations, the cover-up and harassment of an investigator 3.1. One of the things I noticed as I went through these files is the harassment of Mr Wiehart by the office of the then Democratic Alliance executive mayor, Mr Athol Trollip, and his chief of staff together with the then acting city manager, Mr Johann Mettler. The harassment resulted in the malicious suspension of one of the municipal auditors based on fabricated and trumped-up charges and who was eventually expelled in a collusive manner. 3.2. The quarrel stemmed from Mohlaleng Media, which was used to generate ANC campaign material for the 2016 local government elections. (see pictures on the right) 3.3. An internal investigation had been done regarding Mohlaleng Media during which the Chief Audit Executive and forensic investigator, Mr Wiehart, questioned Mr Mettler’s involvement, which clearly caused discomfort in some quarters given the backlash that followed. 3.4. After Mr Trollip became aware that Mr Mettler and Dr Olver were implicated in the internal investigation on Mohlaleng Media, he had the terms of reference that was prepared by the internal audit team changed and, in essence, had it watered down in order to intentionally and actively conceal ANC corruption using an external forensic inquiry. In fact, Mr Mettler drafted the terms of reference for the external audit, which was a clear conflict of interest. The new terms of reference did not require the investigation of Mr Mettler and Dr Olver’s involvement, which was obviously intentional and self-serving. 3.5. A certain Morrison and Vermeulen were appointed on 31 May 2017, with the new terms of reference, whilst Mr Wiehart was placed on compulsory special leave, during which he was persecuted on the basis of fabricated charges of misconduct. Morrison and Vermeulen apparently performed very poorly, and in fact showed little progress. Mr Morrison furnished a preliminary report on 6 November 2017. 3.6. Mr Morrison’s final report does not contain the factual findings that were communicated to him since May 2017, nor did he make any reference to evidence furnished to him by a whistle-blower whose disclosures are included in the documents that I have now studied. 3.7. Same resulted in the comprehensive Chief Audit Executive review queries in that Mr Morrison had simply not performed, but more concerning is the fact that he collusively acted with Mr Mettler in concealment of impropriety by Mr Mettler, Dr Olver and others. 3.8. From the evidence before me, Mr Morrison is in all probability a compromised individual who did not render the service that he was appointed and paid for. This is how entrenched corruption is in our society, that even external forensic consultants are prepared to engage in the very same cancerous agenda that society is attempting to eradicate. 3.9. According to Mr Wiehart, Mr Trollip had even gone so far as to hide documents at his residence for a period of twenty-six months after a forensic report was furnished to a Hawks investigator in March 2018. Mr Trollip may say that he was the one who mandated the investigation, yet he must be made to account for his collusive actions in protection of corrupt officials and politicians. 3.10. This entire narrative raises a concern, which is that “the system” used in NMB to loot funds through companies like Mohlaleng Media could be, and probably is, “the system” that is replicated in other municipalities (and even other spheres of government) in favour of the corrupt and looting ruling party. 4. The leaked CR17 campaign bank statements: the same names crop up 4.1. Mr Wiehart further took me into confidence and shared information with me that relates to Linkd Environmental Services of which Dr Olver is, at the moment, the sole director. This three-man operation in 2017 entered into an SLA with Ria Tenda Trust (which belongs to President Ramaphosa) to provide accounting and financial services (https://www.thepresidency.gov.za/download/file/fid/1649) This is rather odd, because Linkd Environmental Services is not a financial services or accounting firm at all. What had apparently piqued Mr Wiehart interest had been that, given what had transpired in NMB, that this might be a case of history repeating itself. 4.2. I was shown some of the various leaked bank statements, that are quite easily accessible on social media platforms and, even though they have been sealed by the court , they therefore can never enjoy protection from public scrutiny. 4.3. What can be seen from these bank statements is that a bank account was utilised to channel alleged CR17 campaign funding. I find it questionable that the principals segregated so-called day to day business operations, with alleged campaign donations, as one would expect that separate trust accounts be opened and be managed in a transparent manner. 4.4. What was however of much interest to me, given the context of this submission, was that these statements showed the involvement of the very same individuals involved in the NMB/Mohlaleng Media corruption. They are Maverick State (formerly known as Mohlaleng Media), Crispian Olver, Cheslyn Mostert, Grant Pascoe, Vukile Pokwana and some others. 4.5. I was also shocked by some of the names of the listed beneficiaries, where I saw that many members of the ANC received money, totalling millions of Rands, in their personal bank accounts. Although, I hold no brief for the ANC as an organisation, I am concerned about Crispian Olver and Cheslyn Mostert’s seeming endgame. Whilst on the one hand, their hands may loom large in the corruption that has been taking place in NMB and on the other hand, Dr Olver’s company is alleged to have distributed millions of Rands to ANC members. There seems to be a strange disconnect between those actions. 4.6. That said, my concern is that, from where exactly did the funding in Dr Olver’s company bank account originate. On review of the deposits, it is evident that these origins are not vested in well-known and/or credible corporate resources from the private sector. Considering how Mohlaleng Media was used to fund and sustain the ruling party’s ever-hungry hyenas in NMB, one cannot believe that there is any legitimacy behind the so-called donor funding from private individuals or corporations. 4.7. Who are the real ‘donors’ and from where does such funding truly originate? Looking closely at the methodology used by Bosasa, and what could possibly be used by Linkd Environmental Services, one is left with unanswered questions as to who the real architects of state capture are. This is the actual question that must be considered, and investigated, by the Commission. 4.8. The innocuous words ‘donor funds’ are constantly used, whilst the biggest and most important ‘donor’ is the state through the looting of public funds. These so-called donor funds emanate directly from state contracts and government tenders and not from happy and morally complacent ANC supporters. 5. Conclusion 5.1. To verify the authenticity of the information contained in this submission, the Commission should consider conducting a preliminary investigation by engaging Mr Werner Wiehart. All the documentation I have scrutinised is available on request. 5.2. Furthermore, to aid its work, the Commission would be well advised to request the Public Protector’s report on its 2014/15 investigation of the NMB municipality’s IPTS system, as well as all the NMB corruption cases that have been reported to the police, Hawks, SIU and the NPA. 6. Parting shot: the money must be recovered from the ANC 6.1. We, at the moment, spend a lot of time talking about corruption and plumbing its depths, which is of course right. But we must also emphasise the imperative that all the moneys that have been pilfered through tender rigging, as was done with the eye-opening Bosasa shenanigans, in favour of ANC linked companies, or ANC leaders and linked individuals or the party itself, must be recuperated. 6.2. Tracing exactly into whose pocket the money went might look like an insurmountable task, and it probably will be a massive operation. But not tackling this task, would be short-changing South Africans from the moneys that should have been spent to make manifest their constitutional rights. Simple as that. 8. I remain at your disposal. Yours sincerely Mr Bantu Holomisa, MP President of the United Democratic Movement Copied to: • President of the Republic, Mr Cyril Ramaphosa • Minister of Finance, Mr Tito Mboweni • Speaker of the National Assembly, Ms Thandi Modise, for the relevant portfolio committees’ attention • NMB acting Executive Mayor, Cllr Thsonono Buyeye • NMB acting City Manager, Mr Mandla George
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05 Aug, 2020
Is dissolution of executive, in favour of a caretaker, not the answer to corruption?
Media release by Mr Bantu Holomisa, MP and UDM President To put things in perspective the start of South Africa’s steady descent into the depths of dishonesty and exploitation was Sarafina II, what followed was the Arms Deal, Oilgate, Travelgate, as well as the Chancellor House/Hitachi deal. Then it was Transnet, Prasa, VBS, PIC, relationships with the Gupta family, to name but a few headliners and most recently, the alleged corruption involving the R500 billion Covid-19 relief fund, which took an already despicable practice to new moral lows. How can the people of this country believe Ace Magashule when he says his party is “outraged and deeply embarrassed” by acts of corruption allegedly committed by some of its members and leaders in Covid-19 procurement across the country? Tenderpreneurship, (ab)using ties with family and/or friends, is certainly not new. South Africa has reeled from one scandal to another and the African National Congress (ANC) National Executive Committee (NEC) saw nothing wrong, and has, for years, allowed the comrades in corruption to perfect their craft. Now, suddenly, the ANC NEC woke up to the idea that, even if its legal to benefit at a suffering people’s expense, which has been its primary defence in the past, it is unethical. If it had not been for the Covid-19 experience, things would have merrily continued… as it turns out, some corruption are worse than others. Cadre deployment, as well as factional infighting, have paralyzed the state completely. That said, after a quarter of a century’s worth of corruption, the truth of the matter is that the governing party is incapable of rooting out corruption. Not only because of a lack of political will, but mainly because its entire leadership is tainted, and it is impossible for the accused to preside over the investigation, trial and punishment. Maybe the time is ripe for South Africans to consider, and debate, something a little more drastic i.e. should they not demand that the executive arm of government be dissolved and be replaced by a caretaker administration until the 2024 National and Provincial Elections? Such a structure could be comprised of representatives from civil society and the judiciary; with no political component. Parliament must be kept in place to play its crucial oversight role. Part of its mandate should be to develop legislation to specifically, and definitively, deal with corruption and the recovery of taxpayers’ stolen monies, as well as drafting a white paper on what kind of local government system this country requires as our current system is failing the people. Resuscitating our economy should be at the top of such a caretaker government’s agenda, as well as a review of the Chapter 9 institutions and addressing our collapsing infrastructure and waste management (our country is dirty). Issued by: Mr Bantu Holomisa, MP UDM President
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01 Oct, 2019
Vehicle financing: Holomisa asks Wesbank CEO some pointed questions
AN OPEN LETTER TO THE CHIEF EXECUTIVE OFFICER OF WESBANK, CHRIS DE KOCK Mr Chris de Kock Wesbank Chief Executive Officer Enterprise Road Fairland 2170 Dear Mr De Kock ALLEGED CORRUPTION IN MOTOR VEHICLE SALES: THIRTY MORE PEOPLE CONFIRM SEEMING FRAUDULENT TRANSACTIONS INVOLVING WESBANK FINANCING 1. Introduction Our meeting of the 10th of May 2018 regarding Mr Mzukisi Ndara’s complaint and subsequent correspondence refers. You will recall that I addressed an open letter to you in May last year that contained serious allegations of impropriety and possible fraudulent misconduct occasioned by officials that were acting on behalf of FirstRand Bank, trading as Wesbank. The vehicle sale deal that was concluded with Mr Ndara, on the face of it, carried fraudulent misrepresentations that have led to untold financial harm and prejudice to him and his family for fifteen years; this year. The letter I wrote to you was also posted on my social media platforms provoking a flurry of activity largely condemning the conduct of the bank. 2. Context You consequently invited Mr Ndara and I to a meeting to discuss this matter further. We met at Wesbank’s headquarters at Fairlands in Johannesburg. Apart from you absolving the bank of all responsibility, and partly blaming the dealership, you were unable to debunk the authenticity of what Mr Ndara contended. Instead, pursuant to him narrating what had transpired, during and post the conclusion of his vehicle sale deal you said that “if it is true what you are saying, and its accurate, then I must sympathise with you because you will have been done a grave injustice”. In order to eliminate in your statement, the suspensive condition “if” Mr Ndara took the trouble to furnish your legal officer, Mr McLellan, with the documents that relate to his matter, his utterances when he saw them, was “it is the first time I am seeing these documents”. This is yet another statement that begs the question: Does FirstRand bank value its reputation as a corporate citizen in this country and if so, why doesn’t it redress what are clearly gross violations of Mr Ndara’s constitutional rights? Sir, I have had to answer this question myself. Shocking as this may be, scary as this may sound, the balance of probabilities points to Wesbank having used this approach as its modus operandi to seemingly swindle a significant number of South Africans from their hard-earned money. It came as a shock to the system, when Mr Ndara told me that Mr Prishen Ramsamay and Mrs Cheryl Moosa contacted him to say that they had been trying to locate him since the time I had posted the first letter to you. There are now at least thirty other people who have been party to vehicle sales transactions borne out of alleged fraudulent misrepresentations; destroying many people’s lives in the process. All these seemingly fraudulent transactions that were initiated at the BMW Melrose Arch Dealership in Sandton were predictably all financed by Wesbank. The shocking details of some of these transactions are contained here below. This group of ordinary South Africans whose demographics constitute a rainbow nation, have come together under the banner “Crusaders for Justice” Stop Bank Corruption. 3. Legislative framework In my first letter to you, whilst I am by no means a legal eagle, I ventured an opinion that asserts that, on the face of it, you do not require intimate insights of jurisprudence to understand that a bank cannot approve finance for a new car and the customer receives and pays for a used vehicle, in order to discern fraud. Surely it is not that difficult. My opinion aside, the first reason that points to Wesbank having possibly gone rogue is simply the nature of the transactions they have concluded with the members of Crusaders for Justice. Some of these transactions have violated so many provisions of the National Credit Act of 2007 and its forerunner, the Credit Agreements Act of 1980. The National Credit Act (Act No. 34 of 2005) Section 90 is entitled: “Unlawful provisions of Credit Agreement” and it reads as follows; 90. (1) A credit agreement must not contain an unlawful provision’ (2) A provision of a credit agreement is unlawful if – (a) its general purpose or effect is to – (i) defeat the purposes or policies of this Act; (ii) deceive the consumer; or (iii) subject the consumer to fraudulent conduct; (b) it directly or indirectly purports to – (i) waive or deprive a consumer of a right set out in this Act; (ii) avoid a credit provider’s obligation or duty in terms of this Act (iii) set aside or override the effect of any provision of this Act (iv) authorise the credit provider to; (aa) do anything that is unlawful in terms of this Act; or (bb) fail to do anything that is required in terms of this Act; (e) it purports to make the agreement subject to a supplementary agreement, or sign a document, prohibited by section 91 (a) (g) it purports to exempt the credit provider from liability, or limit such liability for- (i) any act, omission or representation by a person acting on behalf of the credit provider. In summary, all these provisions refer to a credit provider, and in everyday language a credit provider referred to above is a bank. Banks in terms of the law must not violate any of the provisions above. Hence, we can boldly say, FirstRand Bank has seemingly broken the law in many instances and on many occasions. The Bank is not above the law. 4. What has the bank done? Wesbank’s modus operandi is as follows; at least according to the lived experiences of the members of Crusaders for Justice; • Most people were induced into these unlawful deals or contracts; the National Credit Act also deals with inducement as being unlawful. • There are seemingly fraudulent misrepresentations in most, if not all these deals, with the following examples: ? The dealership processed a car for finance as if it is brand-new and this is approved by the bank, yet the vehicle is used. The consumer is invoiced for a brand-new car, whilst the dealership agents and the bank are aware that there appears to be misrepresentation; in fact, there is alleged fraud (as in Mr Ndara’s case). ? There is a member of Crusaders for Justice, who was a first-time buyer but, in his contract, the bank purports that he traded in a vehicle and yet that is not the case (as in the case of Devy De Klerk). ? The most common of these alleged unlawful practices, we have come to learn, is what is called loading or adding onto the price of a vehicle, what is normally known as “extras”. An extra in a vehicle, is a material enhancement the customer requests of his/her own volition over and above the cost of the vehicle i.e. an additional item, at an additional cost. Extras under normal circumstances would be things like cruise control, bull bars, metallic paint, sunroofs, air-conditioning, boot spoilers, etc. The buyer would then be advised of the price of each of these extras so that he/she can make an informed decision on whether it was desired. Some members of the Crusaders for Justice had all manner of extras added on to their contracts without them even knowing that they were so-called extras. These include Group Life Insurance at R25,900 (M Ndara) and a digital braking system at a cost of virtually R60,000 (Cheryl Moosa). In some cases, some of the contracts were padded with these fictitious extras to an additional total amount of R150,000 per vehicle. ? The National Credit Act also refers to consumers being induced into signing supplementary agreements, as if these were obligatory. And, unwittingly through trust and naivety, people sign only to find they are being defrauded and further prejudiced. There are some that are paying instalments of R30,000 for having concluded car deals, in some cases up to R50,000 (Mr Siva Pather). Sir, I have taken the trouble to write to you again. As previously, giving you the benefit of doubt to say, you may not be aware, maybe Mr Ndara’s matter was an isolated incident. However, with these latest revelations, nothing can be left to chance. This needs to be probed as it now comes across as a deliberate and planned scheme to rob people who least suspect that a reputable bank is capable of such. 5. Do the banks know? I have in my possession a High Court judgement handed down on the 16th of May 2013 by the KwaZulu-Natal High Court, in Durban, Case No 2142/2009 in the matter between: FIRSTRAND BANK LIMITED t/a WESBANK as plaintiff and DUAL DISCOUNT WHOLESALERS CC as defendant. In a nutshell, Wesbank in this case took to court a dealership in Durban that had misrepresented the price of a vehicle, as a result of which Wesbank paid more than the value of the car and ended up charging a consumer through instalments more than what the car was worth. Simple and straightforward. When the consumer discontinued payments the bank repossessed the vehicle and, in that process, discovered that in this contract there was fraudulent misrepresentation regarding the price of the vehicle, so they invoked what is called a “master agreement” that regulates transactions between dealerships and banks. These master agreements ironically protect the consumer against such conduct. Needless to say, Wesbank was successful in this action and the dealership carried liability. What defies logic is the principles that underpin this case have not been applied to all these complaints lodged by this group of people. And this is clearly a precedent that demonstrates what should obtain and what steps should have been taken against all dealerships by the bank. 6. Conclusion In our meeting you harped on the fact that you have a judgement against Mr Ndara on case number 3180/2013 underway at the Grahamstown High Court, wherein on the 3 March 2015 Judge Elna Revelas upheld the bank’s Special Plea of Prescription against Mr Ndara’s application against the Bank. Further to that, the Bank obtained a judgement on the 18th of August 2015, dismissing Mr Ndara’s Application for Leave to Appeal Judge Revelas’ decision. A new team of lawyers for Mr Ndara discovered in May 2018 that the judgement the Bank had obtained in August of 2015 was sought through underhanded means, it was erroneously sought and granted in the absence of Mr Ndara’s legal team and without even a Notice of Set Down served on them. Invariably it was set aside by Judge Buyiswa Majiki in August of 2018. The Bank’s appeal of the same judgement was dismissed with costs on the 12th of March this year. Sir, with due respect, is all this necessary? What do we make of the sacrosanct corporate governance associated with the banks in this country which you purport to subscribe to? It is now an open secret that Mr Ndara’s saga is a drop in the ocean, as clearly there are many, many others whose documentation is in our possession. I am now appealing to the shareholders of FirstRand Bank to assist you to do what is right for the benefit of us all. Redress for all these people who have been done wrong is the first step in my view that is non-negotiable. I also call upon the South African public, political and leadership of all self-respecting organisations to call out First Rand Bank for these unlawful acts against ordinary citizens. The all-round condemnation of anyone who was involved in the VBS scandal is commendable. Corruption is corruption by any other name, so let us join the call for Wesbank to be held accountable and answer openly and honestly to these accusations. After all, Wesbank operates on a license granted by government, and is regulated like all other companies in this country. Mr De Kock, I shall eagerly await your response to this matter before we take it further. We look forward to your response. Mr Bantu Holomisa, MP UDM President
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26 Sep, 2018
Public Protector to investigate allegations of corruption by Min Zweli Mkhize re PIC deals
The United Democratic Movement earlier this year wrote to President Cyril Ramaphosa wherein we revealed possible corruption that involved the Public Investment Corporation (PIC), Zonkizizwe Investments (which we understand to be solely owned by the ANC), some ANC heavy weights and Afric Oil. The alleged broker between the PIC and e.g. VBS Mutual Bank and the various municipalities was Minister Zweli Mkhize. We have been reliably informed that the Public Protector will be investigating the allegations with the affected individuals being subpoenaed to appear before the Public Protector on the 4th of October 2018. All those involved in syphoning money from the PIC are to explain themselves and their conduct; this includes the people who brokered any suspicious deals with the PIC. We call on the Public Protector to leave no stone unturned in teasing out who was involved and to what extent the allegations are true. Issued by: Mr Bantu Holomisa, MP UDM President
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14 Aug, 2018
Holomisa discusses The “Rainbow Nation” and the Political Culture of South Africa in new SA
• Programme Director • The faculty dean, Prof Van Wyk • Our hostess, Ms Busi Khaba • Staff members • Monash students • Ladies and gentlemen 1. Opening I want to thank our hostess, Ms Khaba, for reaching out to me and inviting me to have a chat with you today. I see many fresh faces in front of me and it is heartening to see young South Africans still interested in politics as a field of study. Well done to you and your teachers. I say this because millions of young South Africans are apathetic towards politics; not seeing the link between politics, government and their daily lives. This is a gospel you need to spread, especially amongst your peers. 2. The link between my world and your world It would not be wrong to say that in most fields of study, we have – on the one side – the academics and researchers and – on the other – the practitioners. I am of course a practitioner that started my political career, just before Madiba dragged an unwilling nation into what Archbishop Desmond Tutu called “the rainbow nation.” What a breath-taking image this is; that our diversity can be moulded into a thing as special as a rainbow. 3. The miracle of 1994 You might be too young to really appreciate the miracle of 1994 and what the rainbow nation meant. We very narrowly escaped a full-blown bloody civil war. The fear and anger that ruled the hearts of both the oppressor and the oppressed would have seen this country in flames. You have of course studied this, but I want you to internalise what Madiba must have felt, having been given the task to be president of the new South Africa. He must have asked himself: • How do we unite a nation with this deep gorge separating them? • How do we bring the ultra-left and ultra-right to the table e.g. those who incited fear of a black rule and those who thought him a sell-out to the whites? • How do we convince the millions of ordinary South Africans, who found themselves in the middle, that everything is, simply put, going to be okay? Can you imagine this responsibility? 4. The induction of the rainbow nation Madiba clearly thought there was merit in Desmond Tutu’s idea of a rainbow nation and it was immortalised in his inaugural speech: “We have triumphed in the effort to implant hope in the breasts of the millions of our people. We enter into a covenant that we shall build the society in which all South Africans, both black and white, will be able to walk tall, without any fear in their hearts, assured of their inalienable right to human dignity – a rainbow nation at peace with itself and the world.” 5. Politics in the new South Africa: trusting democracy Even though we entered a democratic era with the so-called rainbow nation, we had (and still have) much to learn about democracy. Saying that we should be on par with the “established democracies” is an error in thought. Some of these established democracies, makes the twenty-four years we have been on the road, look like chump change. We still have a long way to go before South Africa has two main parties vying for political supremacy. It is still early days and we have already seen the majority party losing support as time has gone by. We have seen old foes disappear and the arrival of new kids on the block. It makes for exciting material for you to study I am sure. There is an old joke about democracy, that, in retrospect, 10 million voters can be wrong. But that’s the way democracy of course works. What we need to question in terms of our own democratic system is that the gap between public representatives and the voters is too wide. Yes, our proportional system allows for the voice of the smaller parties to be heard, but the average South African would not be able to tell you which member of parliament (MP) serves their interests in a particular area. I doubt whether the MPs know either. The United Democratic Movement (UDM) has campaigned for quite some time that ours should be a mixed electoral system: A) a constituency-based system that allows for greater accountability and B) a proportional system that still gives space for minority voices to be heard. The UDM also argues that the president of the country should be elected directly by the people. Just think, if we used this method, how differently the terms of office of our former president could have played out. 6. Politics in the new South Africa: the slippery slope of corruption After Madiba handed over the baton to his successors, the country started sliding down the slippery slope of corruption. It is a sad fact that South Africa has indeed regressed from the ideals of 1994. In fact – to illustrate this point – in the mid to late nineties, one could not even whisper the word corruption in Luthuli House’s corridors. It was a big taboo and it could lead to one’s expulsion from the African National Congress so fast it could make your head spin. I speak from experience! Institutionalised corruption presents an interesting philosophical conundrum i.e.: are all individuals corrupt to varying degrees and we should expect no less? Or is there corruption because we tolerate or even laud it? Maybe it is a little of both? What we do know is that corruption invariably hurts the man and woman on the street; those who can least afford it. For example, we today have commissions of inquiry that have been tasked to get to the bottom of some of the worst singular acts of corruption in South Africa ever. The state capture inquiry being one of them, as well as the yet to be convened inquiry into the allegations of corruption at the Public Investment Corporation (PIC). The alleged looting of your parents’ retirement moneys, invested at the PIC, literally runs into billions of rands!! Simply put, the hyenas have stripped the nation of the “easy meat”, as shown by the Auditor General’s report, and have now turned their immoral jaws onto the PIC with bogus black economic empowerment (BEE) deals. What is clear from these transactions is that selected cadres, close to the ruling elite, have been using the BEE policy to concoct unsustainable schemes in the name of empowerment and job creation. A serious and responsible government would not have jeopardised people’s retirement monies in such a reckless fashion. Instead of creating a national fund to empower all South Africans, the PIC’s resources have been tapped to line the pockets of the “lucky few”. Of course, as we have seen with the Steinhoff scandal, corruption is not only the domain of political appointees, government officials and public representatives. One can however argue that corruption in government has, of late, been at an all-time worst. This brings the UDM’s argument full circle i.e. how different our country would have been managed if the people were directly represented in parliament. You will tell me in the question and answer session whether you think the UDM’s idea of direct representation has merit. 7. Politics in the new South Africa: the land debate Because the land debate is at the front of our minds, I want to share a few quick ideas with you. We must all agree that, as we ushered in the new South Africa, the issue of land was placed on the backburner. Political emancipation was item number one on the agenda. The land issue, as a tool to achieve economic emancipation, should have been addressed much sooner to avoid the emotional tug-and-pull we are now witnessing. On this score, the UDM has long argued that there should be an economic Codesa of some description, where we can all gather under one roof to discuss the macro economy with land at the apex of this debate. I dare say, that if the powers that be had listened to the UDM, South Africa would have had a smoother ride on the road to economic freedom. 8. Politics in the new South Africa: a government of national unity Lastly, I want to address the constitutional provision of a government of national unity. This is an idea that echoes from 1994, but it has again become relevant as we march on to the 2019 national and provincial elections. People think it’s a cliché, or a redundant argument, that “every vote counts”. You will tell me if you differ from this point of view. It is easy to see how each person’s vote gets lost in the millions of votes cast, but the 2019 elections could possibly be a watershed moment in South African politics. Political pundits have predicted that it is not likely that the coming elections will produce an outright victor. This is the first time in the history of the new South Africa that this is likely to happen and brings the importance of each of our votes to the fore. The so-called king-makers will therefore be the “small” political parties. This will be a test for democracy in our country; I am sure that you as students and lecturers will watch the run-up to the elections and the results like hawks. Enjoy the viewing pleasure. 9. Conclusion People sometimes say that they live in the most exciting part of a country’s history, but irrespective of which era we live in, this remains true. You certainly live in an exciting time in South Africa’s history and you have a responsibility to participate. It will be remis of me, as a politician, to not encourage you to vote for the UDM, but the more important point is that you should at least vote. If you have not already, go and register and encourage your peers to do the same… make a fun outing of it and go and register. Take to heart my message that if you don’t participate, other people will make decisions on your behalf. You will sit dry-mouthed on the side-lines and murmur your dissatisfaction to an indifferent government. I sincerely hope that you, young people, will dip your feet in politics for we certainly need young blood to be infused in government and South African politics. Thank You
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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
21 Feb, 2017
Socio-political impact on Governance, Risk and Compliance Address by Mr B Holomisa, MP (UDM President) at the ITWeb Governance, Risk and Compliance 2017
• Programme Director, • Colleagues, • Ladies and Gentlemen 1. Introduction When discussing Governance, Risk and Compliance (GRC) we must consider socio-political issues. It might be an obvious thing to state, but whether we like it or not social attitudes and political policy decisions, are the frames within which we must work to assure that our organisations (public or private) meet their objectives. GRC as a discipline takes a dry, unemotional look at how we manage our organisations or businesses. Socio-political issues, on the other hand, are fuzzy, fickle and sometimes unpredictable. The obvious example of how socio-political issues affect how we operate, is the recent election of Donald Trump as the President of the United States of America. For many countries and companies alike, Mr Trump’s triumph will send (or has already sent) them back to the drawing board. 2. What is a “socio-political approach”? Looking at GRC, with a socio-political approach, puts context at the centre stage and it assumes that politics matter. It must be understood that policy choices, that are not rooted in a deep understanding of how societies work will not produce the desired results. A socio-political approach focusses on histories, social relationships, identities, capacities, power-dynamics, how resources are distributed and contested and it delves deeper into formal structures to expose underlying interests, incentives and institutions that determine how politicians act, how governments perform and how policy choices play out. In this regard, the main issues to consider with a socio-political approach, is: • To understand the interests and incentives facing different political, social and economic groups; • How these influence politics, policies and efforts to promote development; • How formal institutions and informal social, political and cultural norms interact and shape human interaction, as well as political and economic competition; and • What are the values and ideas (including political ideologies, religion and cultural beliefs) that matter to political behaviour and public policy? A socio-political approach is however not the “magic bullet” for the current political and economic issues and their implication on companies in South Africa, but it helps to identify opportunities and obstacles to reform, and it also assists leaders to target their efforts in a way that make them more likely to succeed. 3. Socio-political state in South Africa- Let’s talk politics! Notwithstanding the possible impact that Mr Trump’s election has on South Africa, we have to consider our own space, our own challenges, and the impact of these issues. We can make a long list, but for the most part South Africa’s economy is “Problem Number One”. In response to this challenge, we have since 1994 had: 1) the Reconstruction and Development Programme (RDP), then 2) the Growth, Employment and Redistribution (GEAR), then 3) the Accelerated and Shared Growth Initiative for South Africa (AsgiSA) and thereafter 4) the New Growth Path (NGP). The latest, plan number five, is the National Development Plan (NDP) which is touted as South Africa’s socio-economic policy blueprint. However, the NDP does not enjoy the support of the ruling party’s main allies, Cosatu and the SACP, which causes tension between organised labour and the business sector. This tripartite conflict undermines governance and compromises investor confidence, which leads directly to a rise in unemployment and poverty. I make this sensitive point and talk a little politics at the risk of offending some of you, because of the following… We could agree that our economy needs our undivided attention. Because, in one way or another, all the socio-political ills we suffer in this country could be eliminated, or at least mitigated, by a flourishing economy. Simply put, the dignity of a person is linked to his/her ability to put food on the table, to have a roof over his/her heads or own a property, to buy clothes, to be healthy, to have an education and so the list goes on. But, how do we use the tools of Governance, Risk and Compliance to manage the business of government i.e. to reach our objective of a flourishing economy, if there is such continuous, fundamental dissent and lack of political will? The willy-nilly shifting the goal post, depending on who is in the pound seats, means we are not working towards the same objective. 4. GRC in Government With the advent of the King IV report, good governance, effecting and efficient risk mitigation and maximum compliance are at the centre stage of our accountability framework. Practitioners of governance, risk and compliance must also appreciate that South Africa has a rich ethical and legislative framework for accountability and good governance which should help to realise GRC imperatives. They must consider their fiduciary duties as essential in the success of their organisations, they must be caring, act in good faith, be transparent and show loyalty to the South African taxpayer, and therefore shareholder. The people at the helms of State Owned Enterprises and Companies must be persons of good standing, with independent minds and they should have the relevant expertise and skills to fulfil the tasks of these organisations. Board members and executives must be committed and should have unquestionable integrity and ethical values. They should respect and obey the rule of law and engage stakeholders comprehensively and transparently. GRC practitioners – both at a level of the organisational boards and the executives – must contribute to the development of relevant strategies and taking correct decisions; they must ensure accountability and introduce and maintain effective management teams. This approach is lacking in far too many of our State Owned Enterprises and that is why they are always in the media for wrong reasons. There is a failure to internalise the meaning and significance of Governance, Risk and Compliance. Turnover of boards, board chairpersons and officials is an area of concern, as well as inappropriate interference from government and then, of course, perennial corruption. We saw the ugly breakdown of governance at the South African Broadcast Cooperation (SABC) and the conduct of some which could border on criminality. An example of where GRC in government works, is the Competition Commission’s recent findings on alleged currency manipulation and collusion by many major banks operating in South Africa. The individuals who played these games, showed a shocking lack of patriotism and callousness; because this mess reverberates through South Africa – from top to bottom, left to right. It affects all of us. Not only could this directly affect the individuals on the street, as well as the futures of companies, but such shenanigans affect South Africa’s precarious standing with the ratings agencies. Therefore, in terms of compliance, the Competition Commission has done courageous work to expose this malfeasance and corruption in the private sector. So, this is a good thing and it begs the question, why does our government not take GRC more seriously? After all, it is the business of government to make sure that South Africa becomes a prime investment destination, where our people flourish in their personal lives and thrive in their jobs. One of the major stumbling blocks to the proper implementation of GRC in government is that, the very people who are supposed to walk-the-talk, are found (increasingly so) with their hands in the cookie jar. In far too many instances, the people and/or organisations that are supposed to preside over the effective management of government, shirk that responsibility and betray the people of this country; and in particular, the downtrodden masses. As voters, we have a responsibility to take stock of these tendencies, make different choices and exert pressure on government to do the right thing. We can all agree that GRC is a good tool to eradicate corruption. Each of our ministers, directors’ general, premiers and MECs, mayors and city managers; and in fact, each person in a position of power must become a GRC expert of sorts. We forever hear that there is a limited budget and the Minister of Finance harps on stopping wasteful expenditure, but if we can “save” money by properly implementing GRC in government, there will be enough resources to fund bread-and-butter projects. 5. Conclusion I have probably articulated some problems with GRC in South Africa, sketched ideals and not proffered a solution that will suit all. But, if we were to take the SABC example, the collapse of the institution is a result of a failure to do things the right way. The fundamental interest of society and the principles of inclusive development were sacrificed at the altar of divergent and divisive interests of some political and social elites. A socio-political approach towards GRC must espouse high ethical values and standards which must in turn, be the foundation for sound policy development. It requires adoption and implementation that are in line with the purpose of serving the people and ensuring that societal development needs are met. The success of governance in a risk mitigated environment and maximum compliance is at the core of the what needs to be urgently done in South Africa if the ideals of the National Development Plan are to be realised. Thank you
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
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29 Sep, 2015
March against corruption on 30 of September 2015
The march against corruption on the 30th of September 2015, is consistent with the UDM position well-articulated in our 2014 Manifesto. Indeed corruption undermines and destroys the liberties enshrined in the country’s constitution, for which many paid the supreme price. This country can never succeed in eradicating poverty, create employment and reduce inequality if corruption is allowed to be the order of the day. The gains of our freedom and rights of citizens are undermined. The recently reported corruption court case in the United States in which the ANC is alleged to have benefitted through its infamous Chancellor House, is but one in many. If the ANC is serious about clear and corrupt free governance, it must simply pay back the money it benefitted through corrupt activities. South Africans should not allow the ruling party’s extortions of money from companies doing business with its government. The VW scandal could negatively affect job creation in South Africa. In this regard, we shall be part of the masses of the people of this country who commit to fight against the looting from the poor by both those who control the public office and the private sector. As UDM, we have a clear record of fighting corruption and we shall not be stopped. I call on all members of UDM and citizens in general to join the march against corruption on the 30th of September 2015. End
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10 Sep, 2015
Ongoing scourge of corruption in SA
address Mr ML Filtane MP in the National Assembly Honourable Speaker and members Corruption, poverty eradication, job opportunity creation and closing the gap between the poor and the rich, are permanent enemies who cannot share the same bed. It undermines the people and it renders their freedom unstable and insecure, making it impossible to achievement the kind of society envisaged in the Constitution of the Republic. A quick account on the effects of corruption over the 20 last years of democracy can be summarised as follows: In 1994, the ruling party contested the elections under the slogan: “A better life for all”. This was not about a better life for some, who happened to be in government or well connected to politicians or to the ruling party or for those who use the system to line their pockets. It cannot be a better life for those as Brenda Fassie would say: “Kuyangokuthi ungubani, uphila nobani, udlisa kanjani, ungena kwindawo ezinjani.” It must be a better life to all, because that is what the struggle was all about. After all this is what many went to jail for, exile with some paying the supreme price, death, killed by apartheid agents or hanged. In 1999, we were told: “Together fighting for change”. It can only be presumed that this referred to the need to change the lives of the South Africans for better especially those of women, children, youth, rural and urban people across the length and breadth of the country. Whilst our education and health crumbles, corruption is on the rise. Whilst the fight for the so-called security upgrades in Nkandla is on the high, the rest of the rural communities will leave under the same and sometimes even worse conditions as they were before the dawn of democracy, yet corruption is on the rise. In 2004, the rallying cry was: “A peoples contract to create work and fight poverty”. The recent census report together with an announcement on made as back on 30 March 2011 by the former head of Asset Forfeiture Unit, Adv Willie Hofmeyr that about R30 billion per annum is lost to corruption on state tenders, speaks volumes. Interesting, today, the reports have not changed. We thought this was a people’s contract to fight poverty of the people who live in dire conditions, not through food parcels but through building economy that creates jobs especially for young people and women who are hardest hit by poverty and unemployment in the sea of corruption. In 2009, the sign post read: “Working together we can do more”. More what – Corruption, undermine the Rule of Law, the Constitution, dumping down of health, education and social security? Surely South Africans can’t be part of that togetherness. In 2014, the posts read: “Together we move South Africa Forward”. What is moving forward – is the looting of public resources by the ruling elite in a speedy faster than that of a Tsunami. Corruption has reach a point where the people of South Africa must now stand up and reclaim their freedom from the ruling elite. An element of a constituency based electoral system with Participatory Deliberate Model of Democracy, ensures direct accountability of public representatives to the people. It also creates a Democratic Citizenship. The time to reclaim our freedom is NOW. I thank you.
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06 May, 2015
Freedom Day Debate
ADDRESS BY Mr BH Holomisa MP in the National Assembly Hon Speaker and members The struggle for total freedom is a Nation’s struggle, fought from all corners of society. People; individually, collectively and through organised voluntary associations and other organs, fought for a free South Africa either by default or by design. The circumstances under which we celebrate the 21st Anniversary of our democracy, necessitate that we draw lessons from some of the fundamental ingredients that made the struggle against apartheid successful. The high levels of poverty, unemployment, inequality and corruption, demand that we go back to the collective and inclusive approach. Surely the exclusion of many, with requisite skills and knowledge in the name of the so-called deployment policy, does not help the nation to successfully confront these challenges. If this exclusionist approach is not attended to, the realisation of today’s theme is a dream because it will perpetuate the beneficiation of the few amongst those associated with the ruling elite. Acceleration of radical economic transformation requires amongst others very trusted and dedicated leadership which is not in the deep pockets of the upper class. The key challenge for the realisation of this theme, is the fact the ruling alliance is found wanting on the economic policy direction that the country should follow, 21 years into democracy. Instead of consolidating, it finds itself in crisis of a major disintegration with absolutely no hope of providing leadership on the very same theme. Clearly, the radical economic transformation agenda cannot be allowed to be a private property of this dis-integrated elite. Time for the people of this country to take charge of their freedom and drive their own development is long overdue. Let the nation unite and march to the powers that be against poverty, unemployment, corruption and nepotism. I thank you. End
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06 May, 2014
UDM Siyabulela Rally – address by UDM President, Mr Bantu Holomisa
• UDM Leaders from all across South Africa • UDM public representatives • Citizens of the Eastern Cape • The people of my hometown, Mthatha, and • My fellow South Africans 1.WELCOME AND THANK YOU TO ALL UDM ACTIVISTS Before we get into the politics and issues of Elections 2014, I want to welcome you all and quickly say something about teamwork. Many of you might not be familiar with the name Vince Lombardi. He was a legend in American football and had astounding success as a coach. He was an expert on teamwork. In honour of our election teams, I quote Mr Lombardi: “The achievements of an organisation are the results of the combined effort of each individual.” The United Democratic Movement (UDM) says: thank you, realeboga, dankie, and siyabulela to each individual who: • distributed flyers or hung posters, • represented the UDM on radio and television interviews, • spent weekends spreading the gospel of the UDM, and • dedicated the past months to this organisation we all love. 2. THE PAST, PRESENT AND FUTURE 2.1. THE PAST On 15 August 1985, PW Botha gave his infamous “Rubicon” speech. There was much hope pinned on him to announce big changes to the policies of apartheid. To say that he disappointed us, is a colossal understatement. Fortunately we were blessed with people who fought for our freedom. They were principled individuals who never faltered in their cause; who were willing to make an enormous sacrifice for our freedom at their personal expense. [You might want to use fewer examples – names are alphabetically listed according to surname] We think of, amongst others, Helen Joseph, Chris Hani, Albert Luthuli, Govan Mbeki, Raymond Mhlaba, Walter and Albertina Sisulu, Robert Sobukwe, Desmond Tutu and of course in 1990 the Father of our Freedom, Mr Nelson Mandela, walked out of Victor Verster prison a free man. The Eastern Cape takes a proud place in this history. In almost every town and remote rural areas you can find traces of the heroes and heroines who made the ultimate sacrifice in the fight for freedom. FW de Klerk followed Botha’s rule and during the early nineties we at last felt the winds of change. In 1994 we, at last, crossed the “Rubicon”. We recently celebrated 20 years of our new democracy. It is remarkable that we came so far in such a short time. We will never forget the oppression of the past. It serves as a reminder to never allow that history to be repeated. 2.2. THE PRESENT The tragedy of the last years of ANC rule is that this nation is sinking deeper into the quagmire of corruption, poor service delivery, maladministration and no regard for the rule of law. Our hard won liberties are systematically being destroyed with the socio-economic circumstances of our people making it impossible to protect the gains of our freedom. It is even worse that institutionalised corruption has reached the highest office in the country. We are led by a man who refuses to be held accountable and whose vocabulary extends to one phrase: I did not know. In addition, the executives (nationally and provincially) practice corruption as a sport – where one strives to best the other in a game where taxpayers’ money is misused. They are shameless. The ruling elite’s arrogance is a slap in the face of a nation. They cavort around, whilst many people go to bed hungry; our children receive a second-hand education and our townships, as well as villages, belong in a 3rd world country. In particular, the Eastern Cape is heavily under-budgeted. The infrastructure of the two homelands – and the townships in the province – was never brought on par with the developed one we inherited in 1994. A description of the current state of affairs; amongst others, includes: • The people in the province have become accustomed to mediocre schooling and results. • Dilapidated hospitals have become places of death. • Municipal administrations are rife with corruption and tenderpreneurship. • The industrial hubs in Butterworth, Ezibeleni, Dimbaza and Fort Jackson have perished or are following suit. • This province was the granary of Southern Africa, but agriculture was allowed to systematically wane and this threatens food security. • Roads are in disrepair, electrification and water supply are erratic and in some places non-existent. • Respect and power of traditional leaders are almost non-existent. The ANC of today has forgotten the values of the Freedom Charter. They have abandoned the original agenda, which is to improve the lives of all South Africans. 2.3. THE FUTURE The obvious question is: Are things so bad that we might as well throw in the towel? The UDM emphatically says NO! We believe that it is not too late to turn the situation around. 3. THE FUTURE – WHAT ARE THE UDM’s PLANS FOR THE EASTERN CAPE? Should I, as the UDM’s candidate for premiership in the Eastern Cape, be given the opportunity to govern, the following critical objectives shall be on the agenda for change: 3.1. Addressing the democracy dividend deficiency in the Eastern Cape so that it becomes a model province in terms of all development goals. 3.2. Turning the province into a key economic growth area so that it becomes the 4th fastest growing economy in South Africa by 2019. 3.3. Bringing essential services closer to the people and increasing the capacity the institutions that provide those services such as healthcare and education, as well as programmes that ensure food security and local employment. 3.4. Turning around the performance of provincial government – in particular the departments of health and education. 3.5. Providing effective governance by employing the right people, with the right skills, in the right places. Ensuring proper short and long-term planning, the appropriate use of resources as well as managing performance and monitoring. 3.6. A zero tolerance for corruption and not employing people for political reasons and/or their association to our party. 4. THE FUTURE – OUR PLANS FOR SOUTH AFRICA 4.1. We will promote good governance and the separation of the powers of government, legislatures and the judiciary. 4.2. A UDM government will do more and invest in our economy. We will: • implement checks and balances to ensure that taxpayers’ money is not wasted and take speedy action against corrupt government officials. • ensure that our people, especially in rural areas, have access to passable roads, electricity, irrigation and reticulation as well as a functioning railway network. • provide a conducive environment for our people, especially the youth, to become entrepreneurs and creators of wealth. 4.3. The UDM will ensure quality education and • go back to the basics i.e. teachers must teach and learners must learn. • translate the large education budget into quality education that produces school-leavers and graduates that are equipped with job related and life skills. 4.4. One of our main priorities is food security and rural development. The UDM will: • use agriculture as a tool to expand our economy, to create jobs and generate wealth. • prioritise the needs of farmers, emerging and commercial alike, by developing policies that enable them to compete against their international counterparts. 4.5. A UDM government will make quality health care a priority and bring services closer to communities, improve on emergency response; provide necessary supplies and equipment, as well as maintain hospitals and clinics. 4.6. Regarding safety and security, a UDM government will: • restore civil order and develop a doctrine for the police service to function in line with our constitution’s values. • enhance coordination between the ministries and departments of justice, the police and correctional services, as well as defence and national intelligence. • We will champion the environment and teach our people of climate change, water scarcity and energy, so that they – and future generations – become partners of a UDM government in protecting our natural heritage. 4.7. The UDM will bring about electoral reform by: • introducing a mix of a constituency and proportional representation system where politicians are accountable to the people. • changing electoral laws so that we elect our president directly – instead of a ruling party foisting a president on the people. 5. CONCLUSION An annual South African Social Attitudes Survey, done by the Human Sciences Research Council, showed that 66% of South Africans believe that the country is heading in the wrong direction. Why then do people want to again vote for the ANC? Open your eyes and punish the ANC for its cavalier attitude and callously risking our futures and the prosperity South Africa. It is time for us to cross another “Rubicon”. This Wednesday will give voters the opportunity to affect such a change. This is your country. Take charge and vote UDM! Thank you
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28 Apr, 2014
UDM Election Rally in Port Elizabeth Address by UDM President, Mr Bantu Holomisa
• UDM Leaders at all levels of Eastern Cape • UDM public representatives • My fellow South Africans WELCOME Ladies and gentlemen, the United Democratic Movement (UDM) says “thank you” for making the time and effort to attend this rally and listen to our message. To our election teams that have worked themselves to a standstill to make a success of this event – thank you for the hard work guys. CELEBRATING 20 YEARS OF FREEDOM – A VIEW OF THE PAST We yesterday celebrated 20 years of our new democracy. It is quite extraordinary that we have come so far as a nation in a relatively short time. We will never forget the tyranny and human rights abuses of the past, because it serves as a reminder of what should never happen again. Our deepest gratitude to the struggle icons, many of whom hailed from the Eastern Cape, for their selfless efforts and sacrifices. CORRUPTION DESTROYS THE GAINS OF OUR FREEDOM At the moment our nation is going nowhere slowly – corruption has become a hallmark of how government operates. Maladministration and ineptitude are at the order of the day. Abuse of state resources have become a way for the ruling elite to line their pocket at your expense. This is true of the ruling party’s government at national, provincial and local levels. We can no longer pussyfoot around these issues… it is a fact that corruption, maladministration and incompetence destroy the gains of our freedom. STATE OF THE EASTERN CAPE This province is heavily under budgeted given the two homelands and townships’ infrastructure that had to be integrated into in the developed infrastructure we inherited in 1994. This has not happened. The infrastructure of the former homelands and townships in the Eastern Cape are in total disrepair. When one enters the townships of Port Elizabeth you might think you have entered a 3rd world country. This is a travesty. Voters should open their eyes and punish the ANC for putting the future of this province and its people on the back burner. THE STATE OF THIS MUNICIPALITY The UDM salutes the struggle leaders who hail from this city. Their contribution to the liberation of our people is well documented and history teaches us that they lead from the front and put the needs of our people before their own. As citizens of this metro, you must take over the good work of your grandmothers and fathers, and your parents. You must take the ruling party’s comrades in corruption of Port Elizabeth to task. These so called public servants spend more time fighting each other, than fighting for the people. The youth of PE must take responsibility for the future of this city; apply your abundant energy to turn the situation around – apply your minds to how we should ensure economic emancipation, good education and health care as well as promoting the check and balances to eradicating corruption. Harness your verve and vitality to erase the damage the ruling party’s cronies have done. Go back to the foundation the forerunners of old left and expose corruption, breathe life into the local economy and leave your own legacy to those who come after you. WHAT ARE THE UDM’s PLANS? Should I, as the UDM’s candidate for the premiership, be given the opportunity to govern, the following critical objectives shall be on the agenda for change: 1. Address the democracy dividend deficiency in the Eastern Cape, so that it becomes a model province in terms of all development goals. 2. Turn the province into key economic growth area in the country, so that it becomes the 4th fastest growing economy in South Africa by 2019. 3. Improve the quality of life of the poorest by bringing essential public services closer to the people and to increase the capacity of all institutions that provide those services, such as healthcare, educational opportunities, food production and security and local employment opportunities. 4. Turn around the performance of provincial government, but in particular the departments of health and education. 5. Provide effective local governance by employing qualified people, with the right skills-sets, in the right places. Proper planning, the appropriate use of resources and performance management and monitoring are key issues. 6. The celebration of corruption, which has somehow developed in a competition to see who outsmarts whom, must be brought to an end. We will therefore implement policies that ensure that the best talented, properly trained and competent persons are appointed; in other words, political deployment will become a thing of the past. CONCLUSION It is true that history tells us where we come from, but it is time for us to focus on the future; it is time for us to clearly identify where we are going. It is time for change. May the 7th, can be the catalyst for that change, but this cannot happen if you don’t take action. The people of this beautiful city, especially our young people, must be the agents of that change and the UDM the vehicle. Vote UDM! Thank you
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16 Apr, 2014
Holomisa contributes to The Daily Dispatch – Great Election Debate
• Moderator/Programme Director • The leaders of other political parties • Members of the audience • My fellow South Africans INTRODUCTION Thank you to the Daily Dispatch for giving the United Democratic Movement (UDM) the opportunity to discuss our points of view regarding our plans to transform South Africa into a Winning Nation. CORRUPTION FROM TOP TO BOTTOM Although some progress has been made over the past five years, corruption sticks out like a sore thumb. It is undeniable that South Africa finds itself on the slippery slope of more regular incidents of serious corruption. We have become a jaded nation where we only notice the misappropriation of funds if there are billions of Rands involved. We are witnessing a government that more and more resembles the dreaded apartheid regime. Here we think of the dissolution of the Scorpions, the introduction of the Information Bill, undermining press freedom, attacking Chapter 9 institutions and abuse of State Owned Enterprises (such as the SABC). The other alarming reality is that we have a president that does not know how state moneys were used to build his private residence… also, what happened to the so-called “spy tapes”? We are talking about a government that does not have the word “accountability” in their vocabulary. AN UNHEALTHY DEMOCRACY IN ACTION Our democratic constitution seeks to guarantee our freedom, but this can only be achieved if the socio-economic environment allows the Bill of Rights to be manifested i.e. a return to the original agenda to better the lives of all South Africans. As a result of the high rate of unemployment and poverty, our people have taken to the streets to voice their dissatisfaction. Sadly, government does not even bother to listen to their desperate plight and instead dispatches the police to silence them. IS THE PICTURE SO BLEAK THAT WE MIGHT AS WELL THROW IN THE TOWEL? The main question that a voter should ask of him/herself is this: “Do I want to suffer another five years at the hand of a party that loots state resources and celebrates corruption?”. The UDM believes the answer should be “no” and that we can still salvage the situation. WHAT WILL THE UDM DO IF GIVEN THE MANDATED TO GOVERN The UDM fundamentally believes that job creation is the ultimate weapon to combat poverty, but that the economy must be managed properly to achieve this goal. Strong government intervention is required to ensure that we have, amongst others, functioning roads, electrification, water irrigation and reticulation, and an efficient rail network, which are required to ensure economic growth. There are more details on what the UDM offers the nation in our 2014 Election manifesto, which is available on www.udm.org.za, but I would like to raise some salient points: A UDM government commits, amongst others, to: Good governance: a) Restore respect for the rule of law. b) Put in place the necessary checks and balances to ensure that government money is not wasted. c) Instil respect for the separation of powers of government, legislatures and the judiciary. d) Introduce courts dedicated to handle cases of corruption; to swiftly eradicate corruption. The economy and job creation: e) Remove the red-tape that prevent small businesses from flourishing so that our citizens become wealth creators rather than employment seekers. f) Invest in the economy with a properly planned “map of infrastructure development” with emphasis on transparency and cooperation between government and the people. g) To defuse the tensions between the government, labour and the private sector in an effort to harmonise relationships in an open and transparent manner. h) Treat all provinces the same way, instead of the current tendency where budget allocations are biased towards provinces from where powerful individuals hail. Feeding SA – food security and rural development i) Use agriculture as a tool to expand our economy, create jobs and generate wealth, especially in rural areas. j) Prioritise the needs of our commercial and emerging farmers by developing policies that will enable them to fairly compete against their international counterparts. k) Restore the respect due to traditional leaders and create space for them to constructively interact with councillors and involve them in the decision-making processes, especially where development projects are concerned. Education: l) Involve all the relevant stakeholders in curriculum development. m) Translate the large education budget into quality education by developing and maintaining an education system that produces school-leavers and graduates that are equipped with job related and life skills. Health care: n) Bring health care infrastructure and services closer to the poor. o) Ensure that the budget allocation is spent on the services for which it is intended and no “savings” or rollovers will be tolerated. THE EASTERN CAPE IN PARTICULAR It is common knowledge that the Eastern Cape is heavily under budgeted given the two homelands and townships’ infrastructure that had to be integrated into in the developed infrastructure that was inherited in 1994. This has not happened. The UDM has identified the following key objectives for this province: a) Address the democracy dividend deficiency so that it becomes a model province in terms of all development goals. b) Make the Eastern Cape one of the key economic growth areas in the country, so that it becomes the 4th fastest growing economy in South Africa by 2019. c) Improve on the quality of life of the poorest in the province, by bringing essential public services closer to the people and increase the capacity of the institutions that provide those services e.g. healthcare, education, food security and local employment opportunities. d) In particular, turn around the performance of the departments of health and education. e) Provide effective local governance through appropriate personnel employment, proper planning and utilisation of resources as well as performance management. f) Restore the correct relationships between politicians and officials. g) This province is endowed with the most spectacular and under-utilised resource in the form of our environment. Our environment is a priceless asset; and yes, development is necessary, but not at the expense of our natural heritage. Our environment can be preserved and also be used as a tool to create jobs through tourism. CONCLUSION We cannot afford to sit with our arms folded whilst the majority of our people live in abject poverty – future generations will judge us harshly, because we let things slide on our watch. The UDM election campaign is inspired by hope, and the certainty, that this nation can overcome its challenges and deliver a better future for all South Africans. 7 May is around the corner! Make your vote count! Vote UDM Thank you
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15 Apr, 2014
Department of Labour Compensation Fund: corruption and wasteful expenditure
To: The Public Protector – Ms Thuli Madonsela Copy: The President of the Republic – Mr Jacob Zuma The Auditor General – Mr Thembekile Makwethu From: The UDM President – Mr Bantu Holomisa, MP subject: Department of Labour Compensation Fund: corruption and wasteful expenditure Dear Ms Madonsela The above mentioned matter has reference. R2,5 billion Compensation Fund investments misuse The UDM understands that the main purpose of this fund is to compensate for occupational injuries and diseases. Reserved funds normally are invested with the public investment cooperation for unforeseen mass occupational injuries that might occur in future and to cater for increases on injury on duty, monthly pensions for employees and dependents. Payment of advances to private companies – R546 million There are serious allegations which fingers the Compensation Commissioner who has paid some companies in advance to the tune of R546 million. He is alleged to have undertaken a very risky action by paying advances to these companies without any invoices to reconcile the payments. Debtor’s book has increased: R3,3 billion in 2010 to 8,9 billion in 2013 The Compensation Commissioner appointed a debt collector by the name of NICS since 2010 that has already been paid about R160m. In contrast, the debtors’ book has increased from to R3.3billion in 2010 when they took over from internal staff to R8.9 billion in 2013. This is evidence that NICS is not effective at all but is collecting on the efforts made by internal staff by charging 10% of collection. The contract was deliberately manipulated and changed by the Compensation Commissioner to deviate from the initial tender specification whereby NICS was supposed to collect on older debts beyond 180 days. NICS collects on simpler cases to make quick cash while internal staff is also pursuing the same cases. The Commissioner has flatly refused the legal advice by the Senior Council that the contract should have been terminated on grounds of poor performance. We therefore appeal to your good office, President’s office and the Auditor General to speedily attend to this seemingly looting spree taking place at the Compensation Fund. As you will be reading this document, especially Mr President, you will find that the Minister of Labour Ms Mildred Oliphant is being accused of conflict of interest with the Accenture IT Company, where her close relative is a director. As a result of this apparent corrupt relationship, Accenture was procured to a closed tender and the Minister did not declare her relationship to Accenture. Kindly advise. Mr Bantu Holomisa, MP UDM President
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13 Apr, 2014
Address: by Bantu Holomisa at a UDM Elections Rally Community Hall, Seeisoville, Kroonstad
Address: by Bantu Holomisa at a UDM Elections Rally Community Hall, Seeisoville, Kroonstad • Mr Mbhazima Shilowa • Leaders of the UDM in the Free State • My fellow South Africans WELCOME This is the third rally, which the United Democratic Movement (UDM) organised this weekend. We yesterday moved from the Western Cape to the Eastern Cape and today we are here in the Free State. The previous weekend we hosted rallies in Limpopo, the North West and in Mpumalanga. The reason I mention this, is to prove to the doubting thomases that the UDM does not only exist in the Eastern Cape – we indeed have a national footprint. To all of you, I say “thank you” for welcoming the UDM in your midst. It is heartening to see so many citizens who share the ideal of transforming South Africa into a Winning Nation. STATE THE NATION Although some progress has been made over the past five years, corruption has become a hallmark of how the incumbent government conducts its business. We can no longer beat around the bush… it is a fact that corruption destroys the gains of our freedom. Simple. Once voters recognise the direct link between 1) the looting of state resources and poor service delivery and 2) a government that sees nothing wrong with corruption, it makes their decision so much easier. We cannot allow the same hyenas to stay in power for another five years. These people seem to live in a parallel universe where the poor can be ignored or made fools of. What we witnessed, when Youth League bash in Thembisa on 22 February, it was quite astounding to see their Mini Cooper and big bike brigade in action. If one considers, for example, that a 2014 Harley Davidson VRod Muscle motorcycle costs nearly R220,00 and that an entry level Mini Cooper sell at around R300,00, it gives one some perspective of what the future holds should they become the next generation of leaders in the African National Congress (ANC). This lurid and garish display of their fat wallets was totally discordant with what the ANC states as its priorities. Instead it just rubs salt in the wounds of the poor and jobless masses. On a side note, one cannot help but wonder where do they get the money to maintain their lavish lifestyles. Therefore, when you have your ballot papers in in hand, ask yourself this: “Do I want to again place my trust in a party that have made a total mockery of their promise to better the lives of our people. THE AGRICULTURAL SECTOR The Free State holds great promise, with over 30,000 farms, which produce over 70% of the country’s grain. It is therefore quite clear that agriculture is of paramount importance in the Free State. We don’t call it the breadbasket of our country for mahala. A UDM government will: • prioritise the needs of our farmers by developing policies to subsidise farmers that will enable them to fairly compete against their international counterparts. • protect the South African market from the dumping of subsidised products. • promote agriculture as a tool to expand our economy, create jobs and generate wealth. • put in place the necessary infrastructure that will create jobs and encourage the growth of more employment-creating agricultural-related enterprises, to slow down migration to urban areas i.e. we will bring decent jobs and financial emancipation closer to the people. The UDM believes that more opportunities should be created for emerging farmers and that they should be equipped with the right knowledge, skills, tools and infrastructure to make a make a commercial success of their farming activities. Aside from the obvious need to provide education and training to emerging farmers, a UDM government would establish a sectoral bank where they can apply for financing. Another creative solution that a UDM government would implement is “One-Stop Agricultural Service Centres” where farmers can: • ask for advice, • access to veterinary services. • find the tools and knowledge that are necessary to run their farms as businesses and also to have a market to sell their produce. RURAL SAFETY The safety and security of those who live in rural areas is of great concern, In addition the Free State is quite vulnerable when it comes to cross-border stock theft. A UDM government will introduce special units specifically involved in rural safety through the deployment of reserve forces and other government security agencies to provide safety and enhance border control to curb stock-theft and smuggling. LAND REFORM The matter of land reform still is a thorny issue that has to be addressed sooner rather than later. A UDM government will streamline the Department of Rural Development and Land Reform to speed up the processes and restore land to their rightful owners, because the delays causes uncertainty and tension. THE MINING SECTOR The Free State has plentiful mineral deposits, with gold and diamonds being of particular importance. A UDM government shall make mining one of the major points of discussion at the Economic Indaba that the UDM has long advocated for. In our view, some of the matters to be discussed are the: • question of mines and mineral wealth. • allocation of mining rights to the ruling elite and the implication thereof. • dealing with the socio-economic conditions of workers and the communities that settle close to where the jobs are. • controversial issue of mineworkers’ access, or lack thereof, to a provident fund worth billions of rands. • the unions’ investment arms and the pay-out of dividends to workers who have contributed to the fund. • the appointment of an independent commission of inquiry to investigate how these workers’ monies had been invested, especially in cases where the workers were retrenched, had retired or passed away. THE UNDERLYING RACISM IN THE FREE STATE Racism at the Free State University is of great concern. Every now and again this cauldron boils over. There are far too many incidents where white students humiliated and physically attacked black students. I do however think that the incident that shocked the nation to its core, was what happened when the so-called ‘Reitz Four” debased the dignity of some of the university’s staff to the point where I feel uncomfortable to describe what the victims had to endure. The UDM is of the view that there must be harsher punishment for South Africans who make themselves guilty of hate crime in the hope that it will prevent future incidents. CONCLUSION South Africans must take charge of the future of our country. Each citizen has a number of basic human rights as described our Bill of Rights. What we should however remember is that those rights comes with concomitant responsibilities. On the 7th of May, the people will have an opportunity to bring change to South Africa and the only way this can be successful is that voters much punish the ANC for their failures. To the UDM teams who have worked tirelessly to make this event a success, thank you for your hard work. Seven (7) May is right around the corner and we have to work tirelessly to persuade our fellow South Africans that the UDM is a viable alternative. Good luck in your campaigning. Thank you
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12 Apr, 2014
Holomisa speaks at UDM Rally at Gompo Community Hall, Duncan Village, East London
• Leaders of the UDM in the Eastern Cape • UDM public representatives • My fellow South Africans WELCOME The 2014 elections campaign of the United Democratic Movement (UDM) is gaining momentum. Just this morning I addressed a full-hall in Khayelitsha. Tomorrow Mhbazima Shilowa and I will be in Kroonstad in the Free State. I want to take this opportunity to thank you for making the time to listen to what the UDM would do if it was given the opportunity to govern the Eastern Cape. STATE THE NATION Let’s however discuss the state of the nation first. Every five years, South Africans brave the long queues at voting stations to exercise their right to choose the political party which they think will best govern their province and this country. Although some progress has been made over the past five years, corruption sticks out like a sore thumb. It of course has many negative implications for our citizens, but it also results in the South Africa’s downgrading on international ratings indexes and this in turn negatively impacts on direct foreign investment. The main question that voters should ask themselves is this: “Do I want to suffer for another five years at the hand of a party that loots state resources and celebrate corruption?”. It is astounding that the African National Congress (ANC) had the audacity to “reroute” millions of taxpayers’ money into building a lodge for President Zuma; and they go into defence-mode and try to justify ridiculous things, such as the need to have a swimming pool, just in case one of the thatched roofs catches fire. Who are they kidding? President Zuma, is an ANC deployee; in other words the citizen of South Africa did not elect him to power. The next question that springs to mind is: “Why are they treating him differently?” – especially given how they unceremoniously got rid of President Mbeki, albeit for different reasons. Many South Africans are sickened by the flagrant arrogance of the president and his party. They hold the Public Protector in blatant contempt and, without any shame, hurl personal insults at Advocate Madonsela. Seven (7) May is around the corner, and voters should take a critical look at the way the ANC has left our people in the dirt and dust of an inequitable society. We will probably also be in agreement that the various provinces are not treated equally. If you doubt this statement, just compare the budget allocations and distribution of resources in the nine provinces. STATE OF THE EASTERN CAPE It is common knowledge that this province is heavily under budgeted given the two homelands and townships’ infrastructure that had to be integrated into in the developed infrastructure that was passed on in 1994. This has not happened. To mention but a few of the problems: the roads in the Eastern Cape are impassable; there is a shortage of water; no fencing of graze lands and mealie fields, etc. The infrastructure of the former homelands and in townships are in a shocking state of disrepair. When you travel the Transkei, the Ciskei and places like here in Duncan Village, Mdantsane and the townships of Port Elizabeth you might think you have entered a 3rd world country. It boggles the mind that the very organisation that purports to have the best interest of our people at heart, has failed them so spectacularly – it has almost leaves you with the perception that our people are worse off than when they were under the apartheid government. This is a travesty, and the voters should punish the ANC for putting the future of the poor masses on the back burner or they simply stick their heads in the ground and practice ostrich politics. Only the few have struck it lucky sit in the pound seats when it comes dishing out money. It is very ironic that the Comrades in Corruption in government have to hire consultants to do their jobs… and of course many of those consultants are linked in the chain of corruption in that spills over into the private sector. BUT WHAT WILL THE UDM DO DIFFERENTLY? A UDM government shall take the necessary steps to ensure that the following six, critical objectives should be met to turn this province around, they are to: 1. Address the democracy dividend deficiency in the Eastern Cape, so that it becomes a model province in terms of all development goals. 2. Make the Eastern Cape one of the key economic growth areas in the country, so that it becomes the 4th fastest growing economy in South Africa by 2019. 3. Improve the quality of life of the poorest in the province, by bringing essential public services closer to the people and; Also to increase the capacity of all institutions that provide those services, such as healthcare, educational opportunities, food production and security and local employment opportunities. 4. Turn around the performance of provincial government, but in particular the departments of health and education. 5. Provide effective local governance by employing qualified people, with the right skills-sets, in the right places. Proper planning, the appropriate use of resources and performance management and monitoring are key issues. 6. The celebration of corruption, which has somehow developed in a competition to see who outsmarts whom, must be brought to an end. We will therefore implement policies that ensure that the best talented, properly trained and competent persons are appointed; in other words, political deployment will become a thing of the past. Should you be interested, we will make the detailed information on how we will go about reaching these six goals. CONCLUSION We cannot afford to sit with our arms folded whilst the majority of our people live in abject poverty – future generations will judge us harshly, because we let things slide on our watch. The UDM members and supporters must hit the ground running. Go out there, paint the Eastern Cape in UDM yellow! Speak to the people and spread the gospel of the UDM. To all of the leaders, party members and people who form part of our campaign teams across the length and breadth of the Eastern Cape, thank you for your commitment thus far. We must now change gears because time is running out! 7 May is around the corner! Good luck in your campaigning. Thank you
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02 Apr, 2014
UDM outrage at R10m tender scam in Buffalo City and asks the Public Protector to investigate
The United Democratic Movement (UDM) is outraged at the blatant attempt by the Buffalo City Municipality to sweep under the carpet the R10 million housing scandal implicating a senior African National Congress (ANC) official. Also, it was widely reported that Koko Godlo, whose company was awarded the tender, was appointed by the ANC to head its elections campaign for 2014. The link to the ruling party is clear. It is no wonder that he was just given the R10 million tender without the proper processes being followed. The United Democratic Movement (UDM) has lodged a complaint with the Public Protector in the Eastern Cape and requested an investigation into the matter. The council’s official response to media enquiries shows disdain of public accountability and press freedom. This attitude of the ANC-led municipality confirms our firm view that the people of South Africa, and particularly those in Buffalo City, must use the forthcoming elections to reclaim their freedom. Almost every day the poor citizens of Buffalo City are presented with a range scandals of gross misuse of the people’s money (imali yabahlali) which undermine their freedom yet rates and taxes continue to rocket. The UDM calls on the Mayor to table the report at an urgent council meeting whilst also suspending the fat cats of Buffalo City. It was reported that city officials had salary increases and yet their capacity to deliver is far below average – if it even exists. Each of voter in Buffalo City has the right to say “no” to corruption and poor service delivery. Make your voices heard and say: “We will not stand for the looting of state resources”. There is hope for South Africa and the UDM can lead real change in your lives. Voters need to think about an alternative because the incumbent government has failed our people in the worst way. The UDM is that alternative.
