Tag Archive | corruption

Parliament set for tough questioning

Editorial…

…..Busy session to get some answers

….  In the absence of any move by the National Prosecuting Authority, particularly the somnambulant National Director of Public Prosecutions Shaun Abrahams whose department seems confused as to whether 100,000 leaked Gupta e-mails constitute prima facie evidence of fraud or not, it falls to a parliamentary committee in Cape Town once again to be the first official venue for any debate of consequence on the State/Gupta corruption scandals.

In one of the first meetings of the recently re-opened Parliament, the Public Enterprises Portfolio Committee is to receive a report back from legal experts on the setting up of the Eskom enquiry.

Party vs the Church

Oddly enough, it was in also Cape Town, at St George’s Cathedral, in early June, where the fight first began.    Later, the venue was room 249 in the National Assembly, where the Public Enterprises Portfolio Committee was addressed by Bishop of the South African Council of Churches (SACC). He had then just released a report on corruption by the SACC Unburdening Panel.

It fell to the Bishop the first shot and there was a sobering moment of silence in parliamentary room 249 when he finished talking. It felt like a small moment in South African history.  What came after that seemed like a little bit of a parliamentary let-down in the following weeks but it is important that what the Bishop had to say is further reported for the record.

Take that

Bishop Mpumlwana reminded all present, and particularly parliamentarians who claimed that the Church should not be “fiddling in politics”, that the same politicians had repeated the phrase, “So help me God” when taking office.

He said that the Church had no intention of ignoring the evil that was being perpetrated on the people of South Africa and asked all to note that the Constitution ended, “May God bless South Africa.”

He also said that systematic looting of resources had created a crisis for South Africans, particularly the poor. He called upon all parliamentarians to look to their consciences and assist with “the righteous cause of tracking down all those involved” in what was now an obvious state capture plan hatched during President Zuma’s watch in which the President himself, he said, was involved.

Cry, the beloved country

In a particularly moving address, he reminded all that SACC had come out in vocal support of the ANC during the apartheid years when President PW Botha was in power.   Now was the time to speak up again on the unbridled abuse of power by an ANC Cabinet and a President “who had lost his way on moral issues.”

The Church, he said, must intervene and as a result of the SACC “unburdening” process which had been conducted some months ago, he now knew that “mafia-style control” was being exercised by a political elite in Eskom, Transnet, Denel, and other government agencies.

Ignored

An attempt was in process to gain control over public funds destined particularly regarding rail, arms and nuclear projects, the last being a totally unnecessary burden placed upon the country, he said.    He concluded with an appeal to parliamentarians present to expose the crimes committed and “restore the dream that had built a rainbow nation admired the world over.”

It was gratifying to hear in following days that the Public Enterprises committee, under chairperson Zukiswa Rantho, had instituted an enquiry into Eskom’s accounts (and also Transnet and Denel it turned out) with legal opinion to be discussed in the in the next session of Parliament.

That time has now arrived and one hopes that a lot of explanations will emerge and a lot more untruths discovered in meetings with the Department of Public Enterprises (DPE) and its apparently confused but certainly compromised leader responsible, Minister, Lynne Brown.

Looking ahead

Parliament has now a busy schedule in August to catch up on lost time with delays incurred by staging a “secret ballot” on the no-confidence in President Zuma vote.

One issue will involve the passage of the contentious Mineral and Petroleum Resources Development Amendment Bill, scheduled for a meeting with the Select Committee again towards the end of August; the Expropriation Bill; and the implementation of all Twin Peaks regulations – including those for the Financial Intelligence Centre to operate in terms of the “money-laundering” changes.

This last-named body is quoted as having handed over some 7,000 cases of suspicious money movements to SAPS/Hawks and Themba Godi, chair of the Standing Committee on Public Accounts (SCOPA), has made the public comment that any parliamentary finance joint meetings must see such matters on oversight resolved in the short term, preferably immediately.

Energy up and down

Minister of Energy, Mmamaloko Kubayi, was to be informing her Portfolio Committee on the can of worms opened with her suspension of the board the Central Energy Fund stated by her as being in connection with the suspicious sale of South Africa’s oil reserves held by the Strategic Fuel Fund.

Past Minister of Energy, Tina Joemat-Pettersson, seems to have possibly lied earlier to Parliament over the sale of these assets and she, in her subsequent silence, appears to be joining what is now a whole roomful of past ministers and director generals involved in the tangled web of deceit and manipulation at the edge of business and commerce  – some of it linked to Gupta e-mails, some just motivated by plain criminal greed.

But all Energy Portfolio Committee meetings on any subject have now been abruptly halted in the light of matters involving the possible suspension of the DG of Energy Policy and Planning, Omhi Aphane, (a long-time and experienced government staffer) on on an issue regarding of nuclear consultancy fees, according to the media.   It would appear a whistle blower is at work in DoE.

Minister Kubayi is certainly causing waves and many hope that the responsibility for Eskom is to be handed over to this Minister from the DPE, back to where it was originally rooted with all other energy resources.

Untouched as usual

The issue of debt relief legislation under the aegis of Chair Joan Fubbs of the Trade and Industry Committee will be important as will meetings on energy involving electricity, IPPs, nuclear and clearing up the PetroSA mess.   But first, this committee should sort out what is to be done with a draft Copyright Bill amending and updating anchor legislation, laws that have not been touched since 1976.

What DTI have so far come up with has legal experts in complete confusion since there appears no understanding by DTI in their draft of the difference between paintings, works of art and the high-tec world of data authorship which underwrites commerce and industry and on which depends a massive IT industry both here and mostly abroad.   Fortunately, with a person like Joan Fubbs in charge, basic misunderstandings such as this will get sorted out.  However, that such unintended consequences might have occurred worries many.

The various Finance Committees will meet for joint sessions for a number of tax and money Bills and amendment proposals and Posts and Telecommunications will hear its Department’s comments on public hearings, all regarding the ICT White Paper Policy.

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Madonsela: state capture and corruption…

says, Zuma involved in state capture.. 

editorial.. To those who know, the silence after a bomb goes off is quite uncanny. Like the state capture bomb. Even birdsongthuli-madonsela-2 ceases and the world seems to halt for a few seconds.  Then as things start up again, people seem to gabble. Everybody is rushing about. Life starts up but the noise seems incredible, if you can hear at all that is.   Following this comes the sickening realization that there might be a second bomb.   One seems helpless.

So it was when the Public Protector’s Report on State Capture was released.   Most had the feeling that to see in writing upon the frontispiece the words “state capture” was quite surreal.   Up until then it was rumour; an “alleged” idea; something that was always “strongly denied”; certainly, shady but in any case, difficult to prove… but it certainly shouldn’t happen in our backyard anyway.

Truth must out

thuli-encaThen the bombshell report was released.  The world seemed to halt in silence whilst its 355 pages were digested. Then came the voices, mostly loud and some quite vociferous.  Some demanded more proof; some demanded immediate retribution. Many asked for the President to step down, following which was a festival of interviews on e-NCA.    Meanwhile, in Parliament the corridors went quiet.   Like a phoney war.

Rewind

Whether there is a second bomb in the form of the Hawks and the NPA again charging Minister Pravin Gordhan is purely conjecture at this stage.   It is part of a process that Parliament is not privy to.   Parliamentarians must just watch these parties go about their business, unfortunately at the expense of a jittery investment market.

What we do know is that all judicial and parliamentary processes are painfully slow and this iscropped-sa-parliament-2.jpg as it must be.   Witness the complaints if a Bill is rushed or “hammered” through Parliament.  It rarely works when carried out at speed and the process is exposed for its faults.

The law may be an ass at times and very laborious but it is there to fight corruption.  To eventually win a case against such a difficult-to-prove crime may take time but it is devastatingly successful when achieved.

However, the name Gupta is not responsible for everything.   Some of unpleasant exposures, especially in the energy field, are the result of massive incompetence rather than a temptation of financial gain.

Taking time

In ParlyReportSA, now with clients, we detail four painfully long processes which eventually will result in what may not be liked by some but have been correctly subjected to the slow but democratic procedure of Parliament – the MPRDA Bill; the investigation into the tina-joemattIkwhezi R14.5bn loss; the sale of South Africa’s strategic oil reserves; and how the mini-budget of Minister Pravin Gordhan has evaded the claws of state capture.

Our constitutional, and therefore our parliamentary system which is integrated into it, is subject to a clause which states that the president of the country is the person who is elected as the president of the ruling party’s National Executive.    This outcome only changes if that person is found guilty of breaking the law or his and her oath of office. For this outcome to be proven can take much time.

Patience a virtue

Gratifyingly also, amongst many outstanding court procedures underway, the arduous parliamentary and legislative process to ensure a recalcitrant President gets around to signing the FICA Bill, is underway.

His signature is needed in order that the countrzuma1y can meet international banking obligations and comply with money-laundering disclosure requirements. The fact that the President has not signed it, as was put before him by Parliament and has provided no reason for the apparent lack of inertia to do so, speaks volumes.  Probably a case for personal privacy will be tabled by his defence team, if he gets to need one.

Delaying tactics

Either the President in this instance will waste taxpayer’s money with a long drawn out case or be advised to withdraw, as has been his practice up until now, by acceding at the last minute and will have signed or be told to.

zwaneHe and his associates know that this Bill is a critical tool in the fight against illegal transfers of funds by “prominent persons”.  Minister Zwane’s fight with the banking sector is an unnecessary sideshow connected to this process. More becomes evident in the media , day by day, of this gentleman’s shady dealings.

Dark forces

Another fight calling for patience and now being unearthed is the level of corruption within intelligence services, Hawks and the NPA.  Hopefully, this is not as deep as the relationship that Robert Mugabe had with Nicolae Ceaușescu of Hungary, based on which he built his CIO and followed the advice gained from his training with Nangking Military Academy.

hawks logoHopefully also, with the NPA, Hawks and other major undercover government departments, only such matters as  graft involving as rhino trade and state capture bribes are the tools of trade involved and the aim remains simply self-enrichment.

Hope springs

The “goodies” in South Africa have much to undertake in order to beat the “baddies”, not helped by senior ANC officials not getting off the fence for fear of being demoted on the party list and losing their pensions.    All the same, there are so many good men and women speaking out at the moment from all spheres of political and business life,  the ANC in particular,  that “the force” would appear unstoppable.

Getting Parliament back into control and equal to the Cabinet will be a long process andparliament mandela statue calling for extreme patience, as manifested by our greatest President who demonstrated such incredible patience over many years in his long walk to freedom.

Previous articles on category subject

FIC Bill hold up goes to roots of corruption – ParlyReportSA

Parliament: National Assembly traffic jam – ParlyReportSA

Red tape worries with FIC Bill – ParlyReportSA

Anti-Corruption Unit overwhelmed – ParlyReportSA

 

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FIC Bill hold up goes to roots of corruption

Bill originally approved by Cabinet

.….. sent to clients 20 Aug…..Going to the heart of the issues facing National Treasury on money launderingzuma9 and financial crime, or in this specific case the Financial Intelligence Centre Amendment Bill (FIC Bill), is the failure of President Zuma to give assent to the Bill and to sign it into law.

The delay in adding his signature gives yet another signal that there is lack of interface in constitutional terms between the Presidency, the Cabinet, National Treasury and Parliament and all of this adds more uncertainty in the economic sphere.

fic-logo-2The main objective of the FIC Bill is to conform with international pressure placed upon South Africa to update its governance ability to monitor international financial crime. During the passage of the Bill, however, it became quite evident to interested parties that the Bill could expose a lot more about South Africa’s own internal money laundering, inflows and outflows, than simply making a contribution to the global money laundering problem.

This, of course, was the original point made by international agencies when calling upon countries to agree to such legislation.    Countries have to clean up their own affairs in the process.

Crime busting

Africa MoneyThe Bill intends enhancing South Africa’s anti-money laundering (AML) processes to combat more effectively the crime of financing of terrorism to be achieved by amending the anchor Financial Intelligence Centre Act “so as to define certain expressions”.

However, in exposing monies destined for terrorism, a lot more than just terrorism could become evident in the category to be classed as “prominent persons”, a fact which has been endlessly debated in Parliament and why the Bill has come to the fore in the media.

More entrants

The fact that some in the Cabinet may not like the preamble to the Bill is evident, particularly expressed byzwane Minister Zwane in his ridiculous call for a judicial investigation to investigate the motives for calling the banking sector to report to Treasury on individual groupings and persons and for an investigation into the banks themselves for closing the accounts of certain “prominent persons”.

The target of Minister Zwane’s diatribe, the major banks, are a grouping simply preparing for the FIC Bill to become law since they know it was tabled by the Minister of Finance, having been approved by the Cabinet in the first place and having made considerable input to the parliamentary process. Also they must realize that the Bill in turn will make considerable demands upon them in terms of time and money and will be a test of integrity for all.

Split in the ranks

ramaphosaThe delay, even if for a moment, is one of many factors giving rise to the belief that the Cabinet is “at war with itself”, a fact which Deputy President Cyril Ramaphosa admits. President Zuma attempted dismally at first to distance himself from Minister Zwane’s attack on the banks, then seemingly relented but suspiciously will not let the banks proceed with the FIC Bill by making it law to set up the paper trails.

Commentators say the President is effectively involved in a web of issues involving alleged “state capture” and perhaps therefore instructions to hold up the Bill maybe upon advice from elsewhere from parties involved in the bigger picture.

No stroke of the pen

However, the very act of signing or not will eventually show if it is the President is alone in this matter since a cabinet statement in 2015 stated that the Cabinet had approved for the Bill for tabling.Parliament awaits, holding its breath, for clarification from the Presidency.  President Zuma is now, of course, embroiled on issues over the Public Protector’s report on “stature capture” by the Gupta family and, like so many other important state issues, the FIC Bill has gone on to the back burner.

In the meanwhile others, including actors who would definitely be defined as “prominent persons” as defined by the new Bill, are now crowding the stage and expressing their views, so the FIC Bill must be touching a raw nerve somewhere.

The old argument

jimmy-manyiDespite the Bill being passed by State Law Advisors, now one Jimmy Manyi, previously a corporate public affairs head, a DG in the Department of Labour and previously a Cabinet spokesperson and recently President of the Progressive Professionals Forum – all in a short period of time – has lodged a constitutional challenge to the Bill, presumably on the basis of invasion of rights regarding pr1vacy. 

MPs have complained that the Bill in question has been debated at length over one year at portfolio committee level; hearings were conducted with public expression therefore being accounted for and finally the Bill was passed by a unanimous vote in the National Assembly.  Whether nefarious or not, one must assume that any delay by the President is for good financial reason and bearing in mind the call is in fact an international call to upgrade the SA money laundering watch, the stakes are high.

At this stage nothing is stated as fact and rumours abound.     An exasperated Minister of Finance Gordon Pravin stated in an interview run by E-NCA, “Well if I can’t get the Bill through then we must just try something else.” He added, “They had just better come and arrest me. What have I done?”, he asked.

The aim

pravingordhanIndeed, the parliamentary record shows quite clearly what Minister Pravin has done.    By introducing this Bill and having had it agreed to in the National Assembly, a paper trail  is to be established in conjunction with banks on any suspicious movement of money involving “prominent persons”.   Locked cupboards will be looked into therefore and it seems as if someone or a section in the Cabinet  has had second thoughts about the Bill.

Hopefully, the stall is only temporary and the Public Protector’s report is released

Aims of Bill

Treasury originally said in their briefing to Parliament that the four principal objects of the Bill were to align the country with international standards on AML and to counter terrorist bodies; to enhance customer due diligence within financial institutions; to provide for the implementation of the UN security council resolutions relating tomoney laundering the freezing of assets of persons suspected of financial crimes; and for the FIC to introduce a risk-based approach by financial entities to the current aspects international financial crime.

Treasury countered any argument that dis-investment would be encouraged by the Bill with the answer that a lack of compliance with international rules by South would be worse but now the silence on the FIC Bill seems to have taken a back seat in National Assembly questioning in the face of rows over state funding, “state capture” and individual financial investigative probes.

Prominent persons

yunus carrimMuch debate, took place at the time within the Standing Committee on Finance when the Bill was originally debated over the definition of “prominent persons both domestic and foreign”. These were the persons who were to be monitored as part of the Treasury’s appeal to banks “to know their clients better”. The meetings were chaired by the obdurate, diligent and politically respected Yunus Carrim (SACP) and finally recommended to the House.

Treasury’s Ismail Momoniat was at pains to state to Parliament at the time that “there was no implication or presumption that prominent persons being investigated were presumed to be involved in any financial crime.”

Getting to know you

Probably the provisions most likely to affect entities operating in South Africa are the clauses affecting due diligence. Those that are accountable in terms of the Act will be required to undertake ongoing customer due diligence overviews in order to establish the identity of “the beneficial owner” and a customer’s full identity and whereabouts.

This might be where the problem lies for Cabinet, not necessarily just about the “G people”, as referred to indavid maynier Parliament by David Maynier, Shadow Finance Minister (DA), but which might involve issues of party funding – the sources of which at the moment do not have to be declared to Parliament.

Objective views

As put by Roger Southall, Professor of Sociology, University of Johannesburg and quoted in précis form by Creamer Polity, “The ANC is appropriately anti-corruption in its official stance, and indeed has put in place important legislation and mechanisms to control malfeasance. Equally, however, it has proved reluctant to undertake enquiries which could prove embarrassing.” Parastatals still account for around 15% of GDP, Southhall notes.

Whilst Minister Lynne Brown said she was determined to overhaul all state entities, nobody its seems was ready for President Zuma to assume the chair of the new idea of a State Owned Enterprises Council, meaning that he is in charge of para-state strategy – the policy of which was announced many months ago in that government wants a greater slice of the R500m spend on goods and services to go to emergent suppliers.

President Zuma said in Parliament on that issue that the reason for the consolidation was to bring about cross-cutting coordination as a policy within state utilities.

Getting control

Southall continues in his article in similar vein, “The ANC continues to regard the parastatals as ‘sites of transformation’ with certain corporations distributing financial largesse to secure contracts and favour from government. However, their success in so doing is hard to prove given the secrecy of party funding. Secondly, ANC politicians at all levels of government have sought to influence the tender process in their favour.”

On the good side, the Department of Public Service and Administration has, for instance, a draft a Bill underway for Parliament that will require all government departments to put in place measures to prohibit employees and those in special consultancy positions from “directly or indirectly” doing business with government.

Furthermore, the Public Finance Management Act, signed by President Zuma, has proven to be a well-tuned tool to control misdirected state expenditure. The FIC Bill will be the anchor legislation needed to dig deeper into AML money movements.

Who blinks first

fic-bookWith the FIC Bill, the next move then must come from the Presidency, if he remains in  office, to give good reason to send the Bill back to the Parliament despite the agreement of the South African banking system to comply with Treasury requirements to report. This is a day-to-day developing issue.

Quite clearly, some banks have forestalled their problems by refusing to handle certain business banking accounts of “prominent persons”, perhaps pre-empting that the Bill would receive Presidential assent and thus earning the ire of Minister Zwane “in his personal capacity”.

Whether the FIC Bill might get further to the very roots of the party funding system is another matter but for the moment the focus was on “prominent persons” and the necessity to get the banks into action in terms of the law.

Meanwhile, the Portfolio Committee on Trade and Industry will continue to debate the “Twin Peaks” legislation which will again tighten up on banking and financial procedures on both regulatory and prudential aspects. But here again, there might be delays.

Previous articles on category subject
Red tape worries with FIC Bill – ParlyReportSA
Parliament, ConCourt and Business – ParlyReportSA
PIC comes under pressure to disclose – ParlyReportSA

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Home Affairs fails on most targets

Department getting just about nowhere…

sa passportDepressing figures and equally depressing facts emerged from the annual report of the department of home affairs (DHA) to Parliament this year in the light of, once again, a qualified audit report and some pretty sad performance figures against targets where only 100% achievement is recognised.

Mkuseli Aplieni, director general, DHA, was responsible for the reporting but he was supported by neither the minister, Naledi Pandor, nor the deputy minister, Fatima Chohan. The DHA claimed that its mandate was to maintain the national population register; to manage effectively all immigration and to “develop state and civil society partnerships in support of service delivery and security mandates.”

Aplieni said DHA had “reasonably and efficiently” facilitated large volumes of immigrants and visitors through ports of entry thus supporting large international events and the tourist industry; it had “largely” eradicated the backlog of temporary residence permits and there were some efficiency gains in deportations of illegal migrants and in the adjudication of asylum seekers.

100% achievement, nothing less

DHA had 50 target areas and had partially achieved these at between 41% and 99% of targets. A target achievement requires 100%.  DHA had however managed to refurbish 19 offices, and fill 60% of vacancies, and this was making gains on the strategy to bring DHA closer to the people, Aplieni said.
However, he told Maggie Mauyne, chair of the portfolio committee on home affairs, the DHA faced major challenges in managing a complex and dynamic immigration environment, as well as in aligning and strategically managing the planning and budgeting cycle with staff shortages.

Slow start to ID smart cards

He said the pilot project for providing smart card IDs was tested with 100 cards although it was noted that this would be a long-term project running over the next six to seven years. Smart card development would require three years to develop and then another six to seven years to issue the cards to 38 million ID book holders. This process could not be rushed, he said.

E-permitting and visa system specifications had been approved in quantity and finalised in the meanwhile, Aplieni said. In general however, 100% of ID duplicates for clients coming forward were resolved within 12 weeks but the challenges remained of duplicates and corruption surrounding IDs.

Residence permit backlog better

The backlog of temporary residence permits had been largely eradicated, he said, but there were still problems with the need for speed on permanent residence permits, although a special committee had been established to deal with them and the backlog.

In answer to questions on this subject, Aplieni said there were some basic problems with the temporary residence permit procedure in terms of legal procedure on a number of applications already received recently as well as the backlog that had built up.

The DHA, he said, had to focus on new temporary permits first but a committee had been set up to deal with the backlog and by November 2013 much of it should have been resolved. A committee of five people had been dedicated to dealing with this problem.

Can’t get to grip with computers

In terms of fighting against corruption, a draft concept paper was reported to be under consideration, specifically on the role of DHA in fighting corruption and strengthening the security of identity and immigration systems. DG Aplieni reported that the Auditor-General (AG) had not issued an unqualified audit report in this year and this was mainly because DHA partially because remained challenged with the IT systems.

Opposition members noted that the “burning issue” was the question of leadership in the department and even the internal auditing team was not doing its work properly. One ANC said that as the DHA was a security department, the issue of corruption was a matter of national security when it came to illegal or undesirable people likely to use the corruption that existed to secure their stay in the country. This was viewed as a serious threat to national integrity and security,let alone the problems noted by the AG.

Still leadership problems

DG Aplieni explained that there was in fact a structure of communication and meetings in the DHA. He accepted that there was some poor management arising from the fact that the Chief Operations Officer (COO) post was not filled and the DHA was seeking someone to appoint in that capacity. The COO would assist the DHA in monitoring and ensuring that the DHA was effectively and adequately operated and this would be a centre of communication in future leading to much better management of such issues.

He also explained that the President’s target for 50 000 foreign workers was onerous but the DHA was doing all that it could to reach that target.

Getting to grips with corruption

Again, concerns were also raised about corruption within the department and the subject was raised by MPs of home affairs employees who did not declare their private businesses. MPs complained that there was a “culture of corruption” within home affairs and asked DG Aplieni what measures were being put in place to discourage malpractice and detect bribes.

It was quite difficult for the DHA to detect staff who did not declare their businesses, he responded. The DHA had as much information as was declared by employees from a form setting out the declaration of their assets, but it was impossible to know of those who had not done this or who had done it properly. It was even more difficult for DHA to go to the Companies and Intellectual Property Registration Office to investigate businesses that might be owned by employees or their spouses.

Back to IT vacuum

On the high vacancy rate, Aplieni said that the DHA faced certain challenges with employing people who were experienced in the IT field. Given the complexity of the work at the department there were many other positions that needed qualified people for DHA to achieve their objectives and targets and many posts stood vacant..

On the question of corruption, DG Aplieni said that the DHA did have disciplinary measures in place although “it took the issue of discipline seriously”. An employee could not be dismissed without the matter proceeding along the right lines. If there was a challenge and the matter went to court, that court action had to be allowed to run its course. He said that the Labour Relations Act and unions protected workers against dismissals. Whilst the matter might be before a court, an employee in question would be working and, eventually would be paid.

Foreigners entering

An ANC member expressed her concern around the fact that South Africa was not aware of the exact status or numbers of illegal or temporary foreigners in the country. She wanted to know what the DHA was doing to ensure national security and to prevent Kenyan terrorist-style attacks.

The response from DG Aplieni was that higher standards at ports of entry, DHA said, were not yet finalised although a draft concept paper on strengthening security of systems had been begun and was in process.

MPs asked for comment from the DHA on the woman who had been involved in a terrorist attack, who was claimed to be a South African. Aplieni said that this particular person, Samantha Lewthwaite, who might have been involved in the terrorist attack in Nairobi, was able to enter and leave the country without being detected or tracked down. DG Aplieni explained that the Department of Home Affairs in fact had compelling evidence that she was not using a South African passport.

No fingerprinting at borders

On border management and the question of undesirables entering the country, DG Apleni reminded the committee that no fingerprints were taken at border entry posts, although DHA was now at last included on the national security committee with South African Police Services and defence department.

On deportations of those staying illegally in South Africa, human rights activists sought judicial remedy which was expensive or embassies did not collaborate. This problem had to be solved at ministerial level, he said.  DHA was at the moment engaged in exhausting all judicial remedies available on the problem.

Refer to articles in this category
http://parlyreportsa.co.za//cabinetpresidential/business-interests-bill-to-control-corruption-with-tenders/

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Business Interests Bill to control corruption

Bill exposes level of state corruption…..

Lindiwe MazibukoA Private Member’s Bill has been tabled in Parliament in an attempt to control state tendering corruption by Lindiwe Mazibuko, leader of the opposition, entitled the Business Interests of Government Employees Bill; a private members bill being an unusual procedure but perfectly acceptable in terms of the Constitution. The Bill gives as its background the seedy position in a number of government departments regarding government tendering processes.

The Bill, emanating from an MP and not the minister of a particular department as is usual, will have public parliamentary hearings in the course of public procedure but no departmental call for comment, although in this case the Bill is very much in the sphere of Lindiwe Sisulu, the public service and administration minister.

Going for the kernel

The Bill is hard hitting both in its language and its intentions and does not disguise the fact that it is specifically aimed at corruption and cronyism in the public service. In fact, it is so lacking in subtlety of wording one wonders if Lindiwe Mazibuko took it upon herself, in conjunction with the Speaker of the House (who has to be consulted before any private member’s Bill is accepted) to do something that the minister could not do without a palace revolution in her own department.

The minister, Lindiwe Sisulu, has been saying for some time that legislation might be one of the courses of action to be undertaken to fight corruption in public administration.

Lighting a fuse

The truth of the degree to which co-operation has been employed in the tabling of this Bill will no doubt come out in the portfolio committee debates during the passage of the Bill when the level of opposition can be measured, added to which there maybe, who knows, some submission from government departments in the hearings and from submissions, which have been called for since 13 June.

However, nobody will be able to disagree that something like this Bill is badly needed to stop the slippery slope of corruption that has become embedded in the South African public service. To stand against this Bill would be a difficult posture to adopt.

Govt employees only 5% interest

Basically the Bill demands a prohibition on any public servant or member of his or her family to hold more than a 5% interest in any entity that does business with the administration. Unfortunately, the Bill cannot be applied in retrogression as these are grounds found unacceptable constitutionally but public service employees around the country could be obliged to sign affidavits disclosing the extent that any members that they or their families have in an entity that conducts business with government, such affidavits having to be signed at prescribed intervals.

Similarly, those wishing to do business with government will have to sign a similar affidavit disclosing any interest that a government employee, a member of their family, may have in the entity tendering. Failure to comply will result in cancellation and a claim for damages and discipline against the family member concerned in public service.

Who is “family”?

The objects of the Bill state that the purpose is to stop the undermining of the quality service from government by public servants who are “inappropriately benefiting from government tenders”. In the definitions portion of Bill, which is no longer a draft as described in the media,  a “family” goes no further than siblings but all forms of marriages and unions are described.

Unusual listings

The background to Bill is most revealing and puts the facts up front for any debate on the Bill:-

*50% of Free State government contracts had been awarded to government employees or their immediate families, with 191 government employees benefiting from contracts worth R133m.

*In 2010, it is estimated that R624m of state money went to persons with direct links to public servants, to public servants families or persons with links to a spouse.

*R45m has been lost by the Easter Cape Health department due to irregular contracts with public servant family members.*A Special Investing Unit probe has revealed that close on 9,000 department of health officials are directors of a company and 1,000 of these openly to do business with the department, the report showing that R42.8 m had been paid to 235 employees.

*Over 3,314 employees of the department of education had engaged in business with the department in the past two financial years earning a combined R152m. Of these employees, 2,438 were teachers.

Only the brave…

The litany of horror continues and consequently, to object to the Bill would be to deny the facts. However, the implementation of such a Bill and to ensure its application at all levels will be the test and no doubt this is where the Bill may flounder.

The minister, it is proposed, may waive the 5% limit after considering an application by an employee. Consideration will also be given to the nature of the goods, adverse effects to the state if the tender or contract refused and possible adverse effects to the employee under certain conditions, but again such decisions must be taken by the minister.

Posted in Cabinet,Presidential, Facebook and Twitter, Finance, economic, LinkedIn, Public utilities, Security,police,defence, Trade & Industry0 Comments

Pravin Gordhan : best budget vote speech

Pravin Gordhan speaks on corruption……

pravin gordhan MTBSDuring his budget vote speech to Parliament, Pravin Gordhan, minister of finance, said,  “In the same way we built in South Africa a new sense of tax compliance and personal discipline, perhaps we should now rid ourselves of the evils of corruption”.

Indeed, the fact that we are now headed towards becoming the major nuclear nation on the continent and with the issue of shale gas exploration on the cards, let alone gas exploration off the Mozambique coast, all of this will undoubtedly lead us into a different league in the years ahead on the African continent. So what we look like to others is especially important.

Until now, like two competing top league football teams, South Africa and Nigeria seem to have vied for top dog position. Then Marikana came along and we seem to have lost all confidence in ourselves and certainly Standard and Poor and all the others have voiced theirGoodluck Jonathan displeasure at the way we do things.

Nigeria has more problems

But then nothing can compare with Nigeria’s problems of declaring a state of emergency in three regions and the containment of insurrection from Boko Haram as radicals try to establish Sharia law in one third of its land mass. Trouble is therefore purely relative to what one is trying to achieve. But somehow President Goodluck Jonathan seems to do better than President Zuma in the PR stakes.

In South Africa’s case, we could be said to be lacking in a pool of skills but Willie de Beer of SANEDI, a quiet but respected leader in the energy field, says that South Africa certainly has the skills to put its energy mix together properly if it seriously puts it mind to it. Minister Dipuo Peters referred this week to bringing in outside strategic help on nuclear issues.

Working together at last

In fact it was refreshing to see Minister Gigaba of public enterprises and Minister Peters on energy both on the podium working from the same hymn sheet.

Then one turns to gas exploration and the potential that many claim that this is.  Gas will be realised sooner perhaps for its possibilities. Also probably it is easier subject to tackle, especially if PetroSA can get rid of its opportunists and some form certainty reigns for investors as far the regulatory environment is concerned – something that hasn’t happened in Kenya, Uganda and Mozambique. A steady environment for gas development has the potential to make South Africa great.

So is it the skills we lack?   Or just the confidence to become a bigger and better nation and consequently the giant on the African continent?

Poor issue management

Probably lot of it is bad PR at the top as well, with Mac Maharaj having to operate the bilge pumps so regularly as heavy waves of unexplained statements and odd decisions from cabinet swamp the decks. The fact that the cabinet sits so long on problems and fails to make decisions probably has a lot to do with the indecisive look that seems to emerge from our top brass – Waterkloof issues and Gupta’s aside, but on serious policy issues, all points to a cabinet that is lacking in cohesion and lacking in depth at this moment.

koebergCertainly a statement from a minister on entry into the nuclear top league and a picture of the president in loinzuma wedding cloths holding a spear in a KwaZulu marriage function on the same front page probably failed to inspire confidence that day. And nobody seems to be taking corruption seriously in the cabinet either. And it is all so easy to blame everything on bad PR, however.  Usually in times such as this the right man for the moment emerges but it is difficult at the moment to image who this is could be.

Clever Trevor

Trevor Manuel used to have the uncanny habit of making the right kind of statement when South Africa needed it. Perhaps his successor Pravin Gordhan hit the right button when during the treasury budget vote speech this week, he said, “SARS managed to bring to the country a new sense of tax compliance and personal discipline and perhaps a new national campaign is needed to rid ourselves in the same way of the evils of corruption and bring a sense of discipline.”

We have been lucky with our ministers of finance in South Africa and perhaps we should take the lead of Pravin Gordhan when he says that we really can do these things if we put our heads down, put only properly qualified people into jobs and do what we have said we will do, on time and every time.

http://parlyreportsa.co.za//energy/new-energy-legislation-is-lined-up-for-next-two-years/
http://parlyreportsa.co.za//energy/downwards-spiral-in-electricity-distribution-can-be-reversed-say-energy-leaders/

Posted in Cabinet,Presidential, Energy, Finance, economic, Public utilities, Trade & Industry0 Comments

All not well in the trucking industry

Call that corruption exists

trucksIn answer to a call made by the portfolio committee on transport on the state of the trucking industry in South Africa, it became evident from responses by the department of transport (DoT); from the Road Freight Association (RFA) and examples given by an independent small operator, that large truckers dominated in an industry in an unfair manner that was rife with corruption.

Mawethu Vilana, deputy director-general DoT, said that going back to 2002/3, the department had begun an exercise to look at how to provide opportunities and also broaden the space for participation by smaller operators in the road freight sector. It became clear that smaller entrants lacked finance; that an “unscrupulous broking sector was part of the industry” and generally there was a lack of skills and know-how in the trucking industry generally due to poor provision of training facilities and an industry which was undercapitalised except but a few large operators.

DOT not playing proper role

Vilana admitted that when it came to black empowerment opportunities, the main player was the department of trade and industrydot logo (DTI) and not DoT, DTI having the BEE verification control system in their court, DoT playing virtually no part in either reform of the industry or the development of SMME’s.

On the subject of crime, little could be done about bribery and corruption, Vilana admitted under questioning by parliamentarians, unless legislation was beefed up with proper powers and a full, properly constituted investigation carried out into the industry.

Road users must pay

roadsHe also admitted that permit fees were high because of the principle of “user pays” which had been adopted by government “since road truckers caused great damage to the road system.”

Gavin Kelly, RFA said his association had 385 members, with 109 affiliates and 40 associates representing different levels of possible enforcement and ability to develop skills and training but complained of massive permit fees (the last being 412%); large levels of corruption amongst government officers and no value being added by the government’s road agency to the industry in general.

RFA also stated that there appeared to be no proper government road freight strategy and single government officials determined policy without ministerial approval.    Kelly said “no real consultation exists between the state road agency and the industry” and it was the RFA view that DoT “was just going through the motions.”

Trucking group says market closed

One medium sized operator, Tramarco, said that despite heavy investment in trucks and bearing in mind the “ever rising price of

tramarco site

tramarco site

fuel”, it was almost impossible to break into the transport business to obtain long-term “tangible” contracts from major mining groups and state utilities.   They appeared to feel “safer” using old contacts and larger companies and quite clearly favours were being granted, they said.

Their spokesman said that the entire industry was dominated by a number of large trucking groups and smaller entrants were effectively “locked out” of the industry because the industry was either not regulated properly.

AARTO somewhat dubious

They also said the licensing AARTO system was not working properly; there was a lack of legislative enforcement; too many corrupt officials had too much power and there appeared a lack of interest by large companies generally to uplift smaller operators, little interest in encouraging training and building the trucking job market.

Tramarco said that no favours or finance was called for by the medium and small sized companies but merely a fair chance to compete for tenders.   They called on government to provide leverage within its own government departments, state utilities and with industry to break up monopolistic habits and encourage more black empowerment opportunities.

“Large groups and utilities make lots of statements on freeing up the market but nothing happens”, Tramarco said.

MPs demand better skills development

MPs demanded of DoT that concrete steps be taken to assist small entrepreneurs and to provide proof of a record in the area of skills development. “It was clear that little had been done by the DoT in this area”, said one ANC member.

Opposition members said they were convinced that DoT “had no meaningful understanding of what the situation was on the ground.” One MP said the City of Cape Town had provided a solution by cutting the bigger contracts into smaller parts, supplying smaller quantities and increasing the number of entrants slowly. He called on DoT to start thinking of similar solutions on a national scale.

Roads to nowhere

Ruth BhenguChairperson Ruth Bhengu told DoT that the meeting had been called because an examples had been given to parliamentarians whereby “large companies gave small companies short-term contracts and rates that would not take them anywhere and businesses that were desperate could not only pay for their trucks but could not maintain them, the business going ‘broke’ as a result”.

There was also an immoral business broking sector emerging, she felt.

Vilana of DoT said there was nothing government could do to protect such entrepreneurs and that this was the nature of the industry which was high capital risk with a road system that was deteriorating.

The committee found this all very unsatisfactory and called for further meetings with DoT stating that these matters had to be resolved and that the challenges facing the trucking industry were to be investigated further. Also cross-parliamentary meetings with public enterprises and trade and industry committees were to be called. DoT was told it would be re-called for further reports.

Further archived references

http://parlyreportsa.co.za//public-utilities/aarto-amendment-bill-gives-back-up-to-road-law/

http://parlyreportsa.co.za//finance-economic/transport-laws-bill-on-e-tolling-amended/

Posted in Finance, economic, Mining, beneficiation, Public utilities, Security,police,defence, Transport0 Comments

AG suspects corruption in taxi recapitalisation

On corruption MPs ask for Hawks…

A number of  MPs, frustrated by hearing of corruption and by not knowing whom to believe, demanded that the SAP Priority Crimes unit and the Hawks be called in to investigate financial failures and mismanagement of the taxi recapitalisation programme.     The department of Transport (DoT) had been called before the portfolio committee to explain the qualifications contained in the AG’s annual report on the department’s financial performance.

The renewal without authority of the  e-NaTis vehicle registration contract, a further fact reported by the auditor general (AG) in the 2011/2 DOT departmental financials, also gave MPs considerable concern.

Indicative of the seriousness of the issue was the fact that the minister of transport, Ben Martins, himself previously a parliamentary chairperson, appeared before the portfolio committee of transport to give assurances that investigations would take place.

DoT denies claims

During the briefing, the deputy director general of transport, DoT, Mathabatha Mokonyama, maintained that the claims made by the auditor general were incorrect insofar as the scrapping payouts made by his department were concerned.

He maintained that despite the AG’s qualification that no supporting documents, or any form of accounting documents for any of the thousands of old taxis bought from their owners before scrapping could be accounted for, the claim by the AG was quite untrue despite the lack of documentation supplied.

He acknowledged that indeed R2.9bn, the amount under query, of the total of R7.7bn provided since the programme had started, had all been properly recorded but documents simply not provided with the reconciliations to the AG. The AG maintained that the only document that existed was a simple spread sheet of expenditure.

No backup documents ever came

The AG’s office, represented by deputy auditor general Kimi Makwetu, also stated that whatever the case no documents to support the disbursements had subsequently been supplied which were clearly asked for. As far her office was concerned, this meant unrecorded transactions had occurred and the department’s performance within DOT on this issue marked as “no information available”.

Minister of Transport Ben Martins promised his personal intervention in the matter and that investigations had already started within DOT.   During the course of the meeting it was noted that the consultants called were called in some years ago to manage the scrapping programme. The name was given as the Siyazi Consortium whom, it was stated, had been paid R640m to manage the scrapping programme.

Early ideals

In late 2006, the then minister of transport Jeff Radebe, now minister of justice, issued a statement saying, “I am therefore delighted to announce that for the first time in the history of the taxi recapitalisation programme, we will witness the real-time scrapping of old taxi vehicles.”

He said at the time, “ Our scrapping administration agency, Siyazi Consortium, is also far in advance in setting-up scrapping facilities in various provinces and has the target of ensuring that we recapitalise 85% of old taxi vehicles by 2010.”

e-NaTis also touched by fraud

Parliamentarians were also told by the AG at the meeting of the irregular extension of the e-NaTis vehicle registration programme, running currently at R1bn over its original contract value of R594m, without any formal tender process or regularity in terms of the public finance management act. Opposition MPs called for a police investigation.

The chief financial director, ministry of transport, confirmed during the meeting that neither the ministers of transport or finance were told of the extension by DOT officials but that national treasury had been informed.

Posted in Finance, economic, Fuel,oil,renewables, Trade & Industry, Transport0 Comments

Infrastructure Development Bill to cut red tape

Land expropriation tool….

BS000318Armed with a new tool, the Infrastructure Development Bill, government is hoping to speed up infrastructure projects by cutting red tape; shorten approval times; hit the corruption chain; force quicker decision making; and change the system by which expropriation of land takes place observing correct ground rules.

The new Bill with all of these objectives in mind has been tabled by economic development minister, Ebrahim Patel, and will grant statutory powers to a special Presidential Infrastructure Co-ordination Commission to address project management and regulatory delays challenges; coordinate the issuing of permits and licences; deal with resolution of land servitudes; bring the three tiers of government into better working relationships; improving co-ordination between public entities and improving cooperative governance in an overall sense.

Cracking down on corruption

The Bill was described by President Zuma in his state of the nation address.   He said, “We are cracking down on corruption, tender fraud and price fixing in the infrastructure programme. The state has collected a substantial dossier of information on improper conduct by large construction companies. This is now the subject of formal processes of the competition commission and other law enforcement authorities.”

Minister Patel’s statement, when tabling the Bill, said that “focused project management systems and clear performance dashboards” were being built up so that projects in hand could be monitored. Opportunities for the private sector were now being investigated and a conference would be held by government to bring about such a processes with business and industry.

Constitutional process

On the issue of expropriation of land, the Bill states it is being careful to follow constitutionally accepted procedures but Minister Patel said that bearing in mind expropriation can only occur for a public process, in order to speed matters up the process will be taken as a “given” and where such an action is involved, this will be handled on a “post development basis”, the state taking the risk of losses or losing cases.

The actual workings of the Bill envisage a statutory process led by a steering committee that can override and intervene in statutory matter affecting development, the principle being to cut down on time lag and legal obstacles.

No frills

The Bill is relatively telegraphic in its preamble and simply states the Bill is intended to “provide for the facilitation and co-ordination of infrastructure development which is of significant economic or social importance to the Republic; to ensure that infrastructure development in the Republic is given priority in planning, approval and implementation; and to ensure that development goals of the State are promoted through infrastructure development.

The Bill immediately gets down to the business of forming the Presidential Infrastructure Co-ordination Commission and the first issue to be dealt with under “objectives” is the question of the acquisition of land, making it relatively transparent where infrastructure development delays might have been occurring.

Top team

The makeup of the commission also leaves little doubt on the intent that the Commission has to exercise its powers, its body made up of the President, the Deputy President; ministers designated by the President; the premiers of the provinces and the
chairperson of SALGA.

The President, or in his or her absence the Deputy President, is the chairperson of the Commission and a decision by the majority of the members present at a meeting of the Commission is a decision of the Commission.

The Bill will enable the Commission to tie in various government department to binding decisions. One has to assume that by giving such powers to the commission over the department of public enterprises, all state utilities therefore be subject to common actions.

Posted in Cabinet,Presidential, Energy, Enviro,Water, Health, Land,Agriculture, Mining, beneficiation, Trade & Industry, Transport0 Comments

Public service corruption and misconduct could hit 1bn mark

Parliament gets commission sum up for 2012……

The parliamentary session for 2012 came to an end on a sour note regarding corruption with an update from the Public Service Commission (PSC) informing the public service and administration portfolio committee that, based on auditor general outcomes for all government departments, the total sum representing  “financial misconduct” in the public service for 2011/2012 could well hit the R1bn mark by the time PSC report was ready.

PSC commissioner, Prof. Richard Levin, told parliamentarians that, in the view of PSC, offending heads and senior public servants should be charged criminally for failing to declare conflicts of interest and that senior public servants in the supply chain should be prohibited from doing any form of business whatsoever.

Last year misconduct findings on the increase

In 2011/12, the period under review, some 838 senior civil servants were charged with financial misconduct, a considerable increase over the previous two years, he noted.    An extraordinary 20% of senior managers in the department of co-operative governance and traditional affairs had interests in firms doing business with government; with department of transport standing at 19% and the department of public works reflecting 17%.

Prof. Levin said that departments around the country had “consistently failed” to take action against clear cases of misconduct, primarily due, he said, to an inadequate capacity to chair disciplinary hearings, resulting in a considerable number of public servants remaining for long periods on costly precautionary suspension.

More disciplinary powers called for

In his report to the committee, Prof. Levin recommended that the PSC be given more powers to enable it to “vigorously follow up” in the case of severe misconduct; that lifestyle audits of key staff be conducted where appropriate and with urgency, as well as indebtedness reports conducted where obvious implications were concerned.

He called for the PSC to have greater investigative powers and that government public service policy on whistle-blowing and access to information “needed to be developed and implemented”.

Call for all to join the fight

Meanwhile, public services and administration deputy minister, Ayanda Dlodlo, said at an anti-corruption day summit in Pretoria that “the battle against corruption is not only the responsibility of government and should be supported by civil society and the private sector”.

She said the entire South African society had a role to play in the fight against corruption.

“The word corruption irritates me, and I hope it will irritate more people and mobilise them to fight against it. This word must disappear entirely from our vocabulary. Our country has lost an unquantifiable amount of money as a result of corruption; money that could have been used to uplift the poor people”, she said

Posted in Cabinet,Presidential, Finance, economic, Justice, constitutional, Public utilities, Trade & Industry0 Comments


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