Willing buyer, willing seller principle to go

Government is to drop the “willing-buyer, willing seller” principle with regard to land reform and restitution, President Jacob Zuma confirmed on Thursday.

Willing buyer, willing seller principle to go

President Jacob Zuma with wife Sizakele Khumalo Zuma at the opening of parliament in Cape Town. (Nielen de Klerk, News24)

“We must shorten the time it takes to finalise a claim. In this regard, government will now pursue the ‘just and equitable’ principle for compensation, as set out in the Constitution,” he announced in his State of the Nation address on Thursday.

Telling MPs that the land question in South Africa was a “highly emotive matter”, Zuma said the willing-buyer, willing seller principle previously applied had forced the state to pay more for land.

“The land question is a highly emotive matter. We need to resolve it amicably within the framework of the Constitution and the law.”

Zuma said he had been urged to accelerate land redistribution.

“From 1994, we have been addressing the land reform problem through restitution, redistribution, and tenure reform. As stated before, we will not be able to meet our redistribution targets.”

Government’s mid-term review last year had revealed a number of shortcomings in its land reform implementation programme.

Zuma said there were proposed amendments to the Restitution of Land Rights Act “in order to provide for the re-opening of the lodgement of restitution claims, by people who missed the deadline of December 31, 1998”.

Also being looked at were “exceptions to the June 1913 cut-off date, to accommodate claims by the descendants of the Khoi and San, as well as heritage sites and historical landmarks”.

Zuma said commercial farmers also needed to be offered better incentives to mentor smallholder farmers.

“Another challenge we have faced is the preference for money instead of land by some claimants, which also does not help us to change land ownership patterns.”

Willing buyer, willing seller principle to go


UK gives £19million aid to South Africa – its president spends £17.5million on his palace

It is a nation racked by poverty, where 13 million people survive on less than £1 a day, and two million have no access to a toilet.

Yet as his people struggle in squalor, South African president Jacob Zuma has sparked outrage by spending £17.5 million to upgrade his rural family home.

Lavish works – which include the construction of 31 new houses, an underground bunker accessed by lifts and a helipad – will cost almost as much as the £19 million British taxpayers send to South Africa in annual aid.

UK gives £19million aid to South Africa - its president spends £17.5million on his palace

Not quite right…South African president Jacob Zuma continues to have a lavish lifestyle despite many parts of his country struggling for survival

The costly upgrade to Zuma’s once-humble home in the village of Nkandla includes Astroturf sports fields and tennis courts, a gymnasium and state-of-the art security systems, including fingerprint-controlled access pads.
And nearby roads have benefited from a further £40 million of improvements.

When African journalists revealed the astronomical cost of the work, Zuma’s ministers turned on the whistle-blowers, saying that revealing the details of ‘top secret’ documents was illegal.

Originally the cost of the project, which began two years ago, was put at £500,000 – but it has since skyrocketed. South African taxpayers are footing most of the bill, although Zuma, a polygamist with four wives and at least 20 children, is said to be contributing £700,000 of his own money – a stretch on his annual £185,000 salary.

However, he also receives a controversial £1.2million in ‘spousal support’ for his wives – despite recently calling on fellow politicians to tighten their belts – and pays only a peppercorn rent of £560 on the tribally owned plot in the Zululand hills where his mansion sits.

Zuma has named his residence a ‘national key point’ – a status invented by the previous paranoid apartheid government – which means it is entitled to security measures ‘in the interests of the nation’.

Last week he was grilled in parliament about what he and his family were costing the nation, and struggled to answer, protesting that he was unaware of the scale of the work.

‘All the buildings and every room we use in that residence were built by ourselves as family and not by the government,’ he protested. He did not know the amount spent on bunkers, claiming: ‘I don’t know the figures; that’s not my job.’

Under pressure, Zuma has been forced to agree to two investigations: one to probe the spiralling costs at Nkandla, the other to see if there was a breach of parliamentary spending rules.

‘Nkandlagate’ – as the state-owned media have been banned from calling it – is just the latest scandal to engulf the 70-year-old African National Congress leader. In 2004 he faced trial with his financial adviser Schabir Shaik over racketeering and corruption claims for accepting tens of thousands of pounds in bribes from European arms firms.

Shaik was imprisoned for 15 years, but Zuma’s case was ‘discontinued’ after complicated legal wrangling – even though a judge said there was ‘overwhelming’ evidence of a corrupt relationship between the two men.The following year, a 31-year-old HIV-positive woman accused him of rape. Although he was acquitted, Zuma’s ludicrous claim that he took a shower after sex to prevent contracting HIV made him a laughing stock.

His personal life also came under scrutiny following the 2000 suicide of his first wife, who left a note describing ‘24 years of hell’ with him, and again after the illegitimate birth of another child in 2009. He accused the media of invading his privacy when revealing the scandal.

Meanwhile, South Africa is in an increasingly parlous state, having had its credit rating downgraded following industrial unrest. Workers at the Marikana platinum mine were mown down and killed by armed police last month when they dared to demand better pay. A truck-drivers’ strike later led to more deaths, and last week thousands of farmworkers downed tools in protest at their £4.85 day-rate.

Yet Zuma – who glories in his nickname ‘100 per cent Zulu boy’ – still has substantial support among the people, bolstered by his freedom-fighter credentials, having spent ten years imprisoned on Robben Island alongside Nelson Mandela.

Britain is committed to spending an average of £19 million a year in aid on South Africa until 2015, mainly aimed at reducing HIV. But the Department for International Development is examining how it spends the UK’s aid budget, and recently announced plans to slash the controversial £280 million a year it sends to India.

By BARBARA JONES – 24 November 2012

UK gives £19million aid to South Africa – its president spends £17.5million on his palace

ANC wil plaasgrond verder belas

Boere gaan ook op “onbenutte” grond belas word en buitelanders mag voortaan nie meer eiendom in Suid-Afrika besit nie.

Dít is van die finale resolusies oor landelike ontwikkeling en grondhervorming wat die ANC in Desember op sy nasionale kon­­fer­ensie in Mangaung aanvaar en pas bekend gemaak het.

Die resolusies bevestig opnuut die beleid van gewillige koper/verkoper moet vervang word deur ’n stelsel wat billik en regverdig is.

’n Grondoudit van staatsgrond wat al jare sloer, moet spoedig afgehandel word.

Daarna sal buitelanders grond in Suid-Afrika net op lang termyn kan huur.

Dr. Theo de Jager, Agri SA se vise-president, sê hulle is bekommerd oor die belasting van “oortollige” grond.

“Watter boer gebruik elke stukkie van sy plaas? Grond word geroteer vir aanplanting of weiding. Die regering kan nie vir ons definieer wat oortollige grond is nie.”

Oor buitelanders wat nie grond kan besit nie, sê De Jager ’n 2006-studie het gewys net 1% van plaasgrond behoort aan buitelanders.

Samuel Seeff, voorsitter van Seeff Eiendomme, sê dit is ’n mite dat buitelanders die duurste en beste eiendom in Suid-Afrika koop en besit.

“Net tussen 3% en 6% van alle residensiële eiendom in Suid-Afrika behoort aan buitelanders. Hulle dra by tot infrastruktuurontwikkeling en die meeste buitelanders koop eiendomme kontant, wat tot beleggingsvloei na Suid-Afrika bydra.”

Dawie Roodt van die Efficient-groep sê dit sal Suid-Afrika se beeld verder knou.

ANC wil dié grond belas

Belasting vir gegradueerdes – ANC

Die ANC het verlede jaar by sy verkiesingskonferensie in Mangaung ‘n resolusie aanvaar om ‘n belasting op gegradueerdes in te stel, het die Sowetan Donderdag berig.

Belasting vir gegradueerdes - ANC

Themba Masondo, sekretaris-generaal van die South African Students’ Congress (Sasco), wat deel was van die onderwyskommissie, het die ooreenkoms oor die belasting bevestig.

Afgevaardigdes in die onderwys- en gesondheidskommissie het besluit dat oorweging “gegee moet word aan ‘n belasting vir alle gegradueerdes van hoër onderwysinstellings”.

Inligting oor die veelbesproke belasting is vaag, en geen verduideliking is gegee oor wanneer dit geïmplenteer gaan word of die persentasie wat gehef sal word nie.

Themba Masondo, sekretaris-generaal van die South African Students’ Congress (Sasco), wat deel was van die onderwyskommissie, het die ooreenkoms oor die belasting bevestig. Hy het aan die koerant gesê Sasco is gekant daarteen.

“As ‘n organisasie het ons ‘n aantal kwessies geopper oor die belasting. Hulle is nie so duidelik oor hoe dit gaan werk nie.”

Masondo is egter ten gunste van ‘n algemene heffing, waar mense uit hoë inkomstegroepe meer betaal.

Luidens die ANC se resolusies is die doel van die belasting om die koffers van die Nasionale Studente Finansiële Hulpskema (NSFAS) aan te vul. Dié hulpskema sal na verwagting ‘n groot rol speel in die regering se planne om gratis opvoeding aan alle voorgraadse studente te bied.

Gratis opvoeding sal waarskynlik volgende jaar ingestel word.

Belasting kom dalk vir gegradueerdes

Hy is slagoffer van komplot, sê ‘diamantdief’

’n Beweerde bedrieër wat daarvan beskuldig word dat hy ’n kolossale Suid-Afrikaanse diamant ter waarde van R56 miljoen gesteel en in die VSA verkoop het, vertel nou dat hy deur ’n vriend en adviseur van pres. Jacob Zuma in ’n lokval gelei is.

Dennis van Kerrebroeck (33), wat Kanadese en Belgiese burgerskap het, word steeds in Johannesburg aangehou nadat hy glo ’n geel diamant van 143 karaat vasgelê en dit toe in New York se bekende Fifth Avenue verkwansel het.

Die gesogte edelsteen is nou die middelpunt van ’n strafsaak in Suid-Afrika én ’n regstryd in ’n Amerikaanse hof terwyl aanklaers in Suid-Afrika die diamant in die land probeer terugkry as ’n bewysstuk.

Die strafsaak hervat binnekort in die Johannesburgse handelshof. Van Kerrebroeck beweer hy was die slagoffer van ’n sameswering en dat die skuld op hom geplaas is om belastingbedrog te pleeg.

Hy sê Sandile (Gwabs) Zungu (45), een van die land se rykste en mees invloedryke sakelui, sit agter alles.

Zungu, oudhoof van Denel en direkteur van byna 100 maatskappye, is glo ’n sleutelfiguur in Zuma se binnekring.

Zungu sê Van Kerrebroeck is “’n vyand van die staat” wat hom “astronomiese bedrae geld” laat verloor het.

“Ons diamant is weg,” sê ­Zungu. “Tot vandag nog het ons nie ’n sent daarvoor gesien nie.”

Die diamant is in November 2008 deur die Jasper-mynmaatskappy, waar Zungu destyds ’n direkteur was, naby Hopetown in die Noord-Kaap ontgin.

Van Kerrebroeck wou eers self die diamant koop, maar kon nie en het gereël dat dit aan ’n Amerikaanse maatskappy verkoop word waarvan hy die alleen-eienaar was.

Hy het intussen glo vals dokumente aan die verkopers gegee en die diamant via Switserland na die VSA gesmokkel.

Die staat sê Van Kerrebroeck het die diamant onder die neuse van doeanepersoneel by die JF Kennedy-lughawe verwyder nadat hulle daarop beslag gelê het.

Hy het dit toe vir slegs R8 miljoen aan Taly Diamonds verkoop wat dit in ’n aantal kleiner stene gesny het. Die grootste daarvan is 68 karaat.

Die Amerikaanse owerhede het intussen daarop beslag gelê.

Van Kerrebroeck is vroeg verlede jaar in Sandton gearresteer en van diefstal en bedrog aangekla.

Hy het in sy borgtogaansoek skuld ontken en amptenare van Jasper van bedrog en geldwassery beskuldig.

Hy sê in sy verklaring David Griffiths, Jasper se hoof, moet aangekla word.

Beeld het korrespondensie gesien waarin Van Kerrebroeck beweer Griffiths se mede-direkteur by Jasper, Zungu, “sit agter alles”.

Africa Confidential en ander publikasies beskryf Zungu as ’n geldinsamelaar vir Zuma se regsaksies. Hy is ’n familievriend van die president.

“Die man is ’n skurk en ek is baie bly hy sit in die tronk,” sê Zungu. “Ek hoop hy bly daar vir ’n baie lang ruk.”

Deur Jacques Pauw

Hy is slagoffer van komplot, sê ‘diamantdief’

Telkom sponsoring New Age breakfast

Telkom is sponsoring Thursday’s New Age Business Breakfast with Police Minister Nathi Mthethwa.

Telkom Mangaung mess waiting: analyst

However, neither the newspaper nor Telkom on Wednesday would say how much the sponsorship was costing the utility.

TNA spokesperson Gary Naidoo said he did not know how much Telkom was spending.

Telkom spokesperson Pynee Chetty said: “Details of Telkom’s product advertising agreements and sponsorship between Telkom and its media stakeholders are confidential.”

Earlier this month, City Press reported that some the biggest state-owned companies were paying millions of rands to bankroll the business breakfasts hosted by the Gupta family.

These included Transnet, Telkom and Eskom.

It was previously reported that Telkom sponsored 12 business breakfasts to the tune of R12m in the 2012/13 financial year, according to the newspaper.

Following the report Democratic Alliance leader Helen Zille pulled out of a TNA breakfast, saying she did not know it was sponsored using public funds.

This saw Zille and the newspaper come to loggerheads.

The newspaper responded by uploading a video of Zille thanking Telkom for sponsoring a previous TNA breakfast she attended.

Zille on Wednesday said TNA heavyweights tried to dissuade the DA from asking parliamentary questions on the paper’s funding.

The newspaper denied the claim.

Zille said she had written to President Jacob Zuma asking for a commission of inquiry to be appointed to probe the funding of the newspaper.


Telkom sponsoring New Age breakfast

ANC sidelining non-blacks

Grassroots members of the African National Congress (ANC) believe the party is sidelining non-black supporters, according to a potentially politically explosive study published on Wednesday.

ANC sidelining non-blacks

Research by the Ahmed Kathrada Foundation showed ANC members who are not black feel left out because of their race.

“Generally speaking branch members have deep seated concerns with non-racialism in the ANC and in society more broadly,” said the report posted on the foundation’s website.

One respondent told the researchers that “in the ANC racism is still very strong and it can be proven any day anywhere”.

Another said “the ANC is more racist than any political party at the moment”.

The ANC “preaches about being non-racist… but is doing the opposite”, added another party member.

The impression that the party promotes the interests of blacks first has seen its support base eaten away in sections of the population, the report concluded.

“Indeed the perception [whether real or imagined] that the ANC is advancing only the interests of Africans has led to loss of electoral support in ‘minority areas’.”

The study was conducted in the country’s largest city and its economic hub, Johannesburg.

Respondents were sampled from four main groups – blacks, whites, Indians and coloureds.

Branch members in the predominately coloured Eldorado Park neighbourhood and those in the highbrow and mainly white suburb of Sandton “are frustrated with the party and feel much anger about the way they are treated”, the report said.

“This has made the role of being an ANC branch member in these areas very challenging, and often thankless.”

The results of the study showed that the party which prides itself as an example of democracy in Africa, has fewer members of the minority races occupying leadership positions at branch level.

“Many branch members are disillusioned about the manner in which members are awarded senior positions,” said the study, with many believing these are “only open to Africans”.

“This raises significant questions about democracy in the party,” it added.

ANC officials could not immediately be reached for comment.

While acknowledging that race relations have significantly improved since the ANC took to office nearly two decades ago, the study noted that members also feared broader societal trends.

“Branch members feel not enough change has taken place and that racial tensions are impeding social cohesion and concomitant growth and progress in the country.”


ANC accused of sidelining non-black members

Nkandla’s main contractor liquidated

THE main contractor, Bonelena Construction, upgrading President Jacob Zuma’s Nkandla residence is being liquidated for owing R175 000 — despite earning a fortune from government contracts.

Nkandla's main contractor liquidated

Jacob Zuma’s homestead – Nkandla

Bonelena Construction, Enterprise and Projects secured two major deals worth R100 million in connection with the R240 million presidential security upgrade alone.

NKANDLAGATE: How R 248 Million (of YOUR Tax monies) was spent!

It is now being liquidated for failing to pay for the vans and trucks it rented from the Durban branch of Reebib Rentals. Reebib is part of the Avis Group.

The liquidator is Pietermaritzburg-based Berrange Incorporated.

Bonelena is owned by Pietermaritzburg resident Thandeka Nene.

The Witness has also learnt that the Independent Development Corporation (IDC), Bonelena’s largest funder, is also seeking its slice in the liquidation order as they no longer see the company as a profitable entity. Attempts to further question the IDC on this point proved unsuccessful.

A search revealed that Nene has secured contracts from the KZN Department of Education, Department of Transport and Department of Public Works from 2007 to build schools, roads and new facilities at hospitals.

Yesterday, The Witness revealed that a man claiming to be a relative of the president, Vincent Zuma, was also seeking money owed to him by Bonelena.

Zuma said he was awarded a R16 million sub-contract by Bonelena in June 2011 to complete the roads within the Nkandla security complex.

He claimed he only ever received R138 000 and never received his site establishment fee of R2 million, forcing him to leave the site in less than six months due to rising debt.

Zuma said yesterday he first met Nene in Inanda, Durban, where he did work for her at a primary school two years ago.

“Even on this contract I battled to get my money out of her.

“They only ever paid me in small amounts over a period of months,” said Zuma.

The Witness can confirm that in June a company called Incledon DPI, a subsidiary of DPI Plastics, which is a supplier of PVC piping, was awarded a sale in execution by the Pietermaritzburg high court against Bonelena.

Items that were to be auctioned included office furniture, computers, copy machines, and kitchen appliances. It is unclear if the auction took place however according to the firm representing Incledon, GDLK Attorneys, the file has been closed.

Nene has claimed through the press in recent weeks that her company’s financial problems stem from the fact that the department has yet to pay them.

Questions sent to Bonelena for Nene’s attention via email and sms yesterday asking for further clarity on just how much they had been paid for their work on Prestige Project A, clarification on whether the company is being liquidating, if they would seek legal action against DPW and whether they had completed their work at the Nkandla security complex were not responded too.

To seek clarity on liquidation consulting independent attorney, Yolanda Gielink said if a company cannot pay its debt, it may be liquidated of its own accord or by way of application by the creditors.

The process of an application for liquidation of a company appears to expedite the process of debt recovery,” said Getlink.

She said it is not uncommon for business person to keep their personal assets separate from the juristic entities their businesses operate under.

“This practice however does not however safeguard the personal assets 100%, as acquisition and dispossession of assets, if investigated, may still be attached if found to have been made in anticipation of liquidation,” said Getlink.

Public Works said it would not comment on whether Bonelena had been paid for work completed because the presidential compound was protected as a “National Key Point”.

Siboniso Soni, who identified himself as Nene’s spokesperson, failed to respond to several requests for comment.

By Jonathan Erasmus – 30 Nov 2012

Nkandla contractor liquidated owing R175 000

Joburg City Council R1bn ‘present’ to Zuma benefactor

Evidence suggests that a hotly contested smart electricity meter tender, to the value of R1.25-billion, was fixed to benefit Vivian Reddy’s firm.

Joburg City Council R1bn present to Zuma benefactor

Vivian Reddy is a vocal supporter of Jacob Zuma. Reddy’s company has partnered with Itron, which will supply smart meters for Jo’burg from the United States. (Gallo)

A R1.25-billion contract to supply “smart” electricity meters to the City of Johannesburg was manipulated to favour Vivian Reddy, one of President Jacob Zuma‘s key benefactors, information obtained by the Mail & Guardian suggests.

Reddy reportedly paid R450 000 for a table at the ANC‘s anniversary gala dinner in Durban last week, when Zuma made the controversial remark that “wise” businessmen who supported the ANC could expect that “everything you touch will multiply”.

The city and its utility City Power, which procured the meters, have denied any irregularities in awarding the tender. But key discrepancies uncovered by the M&G suggest otherwise. They include:

  • Detailed allegations that an initial technical evaluation scoresheet was amended to improve the result for Reddy’s company, Edison Power;
  • The revised scoring pushed another bidder, Hefcom, below the cut-off 70% technical score. When price was factored in, Hefcom – whose bid was half the cost of Edison’s – would have scored better than Edison;
  • A letter informing Edison it had won the bid is dated before City Power supply chain management even received the bid recommendation or the chair of the adjudication committee had signed off on the decision;
  • Edison’s share of the contract was pushed up from an initial recommendation of a R600-million share of an R800-million contract to an exclusive contract for R1.25-billion; and
  • A man central to the award, City Power chief executive Sicelo Xulu, is alleged to be “friends with Zuma” though he denies this.

There is no evidence suggesting foul play on the part of Reddy or Edison.

The three-year contract to deliver hundreds of thousands of so-called smart meters was awarded in August 2012. The meters will allow the municipality to track and control electricity usage remotely at each metering point in real time. The project is also intended to cut down on fraud and tampering.

There are about 1.5-million metering points in the greater Johannesburg area, the majority of which have to be read manually.

Edison has no prior experience in smart metering, several industry sources said, but the company teamed up with established United States metering company Itron, which separately won the much smaller R50-million contract for the centralised data management “back end” of the system.

Edison was one of the businesses that paid to be at the ANC’s Mangaung conference in December and Reddy has long been a vocal supporter of Zuma.

Reddy stepped in to fund part of Zuma’s Nkandla homestead in 2003, when the president’s former associate Schabir Shaik ran into difficulties. He featured prominently in the report by auditors KPMG on Zuma’s benefactors that was prepared for Zuma’s abandoned corruption trial.

Edison executive director Bazil Govender, responding on behalf of Edison and Reddy, hit out at suggestions that the firm had been favoured.

“We are fully aware of the company [that has] complained to the M&G, because they tried to pressurise us into partnering with them after the award of the contract,” he said. “They threatened to go to the press, to make an issue of this award. We rejected this approach because we believe it was highly unethical. We are lodging a formal complaint to City Power to fully investigate this serious breach of ethics.”

He shrugged off Edison’s relative inexperience with smart metering, saying that the company was working with an experienced partner in Itron: “We believe we offered the best solution to City Power.”

But the M&G has seen tender documents and spoken to several sources familiar with the bid process that together raise serious questions about how Edison was singled out.

Score ‘tampering’?

Of central concern are claims that the bid evaluation committee improperly adjusted the bid scores.

According to sources close to the process, the evaluation committee convened on at least two occasions to “re-score” the tender, a process that was overseen by Nkanyiso Msomi, a senior City Power official who also chaired the live technical demon­stration sessions.

The M&G has seen evidence that suggests that initially three bidders were scored above the 70% technical threshold: Edison, followed by Hefcom and, in third place, Mandla Technologies.

City Power claims that only Edison and Mandla broke the 70% bar. It says initial scores based only on the bid documents were adjusted following the live presentations. The utility suggests this would explain any score changes.

However, a source sympathetic to Hefcom said the company was given feedback that they were in the running right until the very end.

And information obtained by the M&G suggests the areas in which Hefcom scores were revised down were unlikely to have been influenced by the presentation.

They include the categories:

  • Training and system handover, which was not dealt with in the live presentation at all;
  • Ability to synchronise data with other systems. Elsewhere in the final bid evaluation report this is actually listed as one of Hefcom’s strengths – unsurprisingly, because the company designed its meters based on its work with City Power systems over the past four years; and
  • Energy balancing, a technical function that Hefcom meters have performed in City Power systems for several years

City Power spokesperson Solomon Masolo ruled out any foul play. He said: “All the tenders were afforded an equal opportunity to present and give a live demonstration and any moderation of the initial score is fully supported by what was presented in the live technical demonstration and presentations.”

Pricing anomalies

Hefcom was the cheapest of the three, with a cost per meter of between R4 500 and R5 400. Edison’s price per meter works out at R9 716.

Hefcom uses South African technology and all components are manufactured locally, unlike Itron, the US company that will supply the Edison meters. The US company is not related to a South African company with the same name.

There is also some confusion about Edison’s price offering. It consisted of two options – the pricier of which worked out at more than R20 000 a meter. City Power says the main difference in the offers “relates to other add-on benefits, including maintenance and spare parts”, adding: “The tender was evaluated only on the main [lower] offer.”

However, another source close to the process claims Edison’s cheaper offer was tied to Itron winning the parallel but separate “back end” data management tender – something evaluators would usually not be allowed to assume for the purpose of price comparison.

Not splitting the risk

After Edison-Itron and Mandla advanced to the second stage – at which companies were evaluated on price and their broad-based black economic empowerment credentials. Mandla outscored Edison because of Edison’s higher bid price.

However, the bid evaluation committee recommended that the R800-million contract be split between Edison and Mandla (R600-million and R200-million respectively) and submitted its report to Xulu, the chair of the tender adjudication committee that makes the final decision.

Industry sources say splitting such strategic contracts is common policy in order to “spread the risk” of relying on just one supplier.

Contrary to this wisdom, the committee opted instead to award the entire contract to Edison and Xulu allegedly asked the bid evaluation committee to “correct” the report.

Masolo said the adjudication committee chose a single bidder to “properly manage a single system instead of a variety of proprietary systems that did not talk to each other”.

But a number of bidders dismissed this argument, saying all meters under consideration had to comply with an industry standard so they could talk to a common data management system, regardless of their manufacturer.

More ‘tweaking’

According to an insider, Xulu’s instruction to correct the evaluation committee report was interpreted by some committee members as an order to flip the scores between Edison and Mandla, based on Edison’s lower price option, to justify the awarding of the contract to Edison alone. The earlier report was allegedly redrafted to reflect Xulu’s instruction. Meanwhile, Xulu is alleged to have taken the R800-million contract award to the City of Johannesburg for approval and returned with an instruction to increase the contract to R1.25-billion.

City Power said the “indicative budget” was adjusted up to R1.25-billion “based on up to 250 000 smart meters that will have to be supplied”.

A municipal insider alleged that Xulu met executive mayor Parks Tau to discuss the contract.

Fred Mokoko, a spokesperson for Tau, declined to confirm or deny whether Tau had discussed the matter with Xulu as alleged. Mokoko said the mayor was legally prohibited from participating in the awarding of tenders: “The mayor has noted the allegations, which he has referred to city manager Trevor Fowler for investigation [and] which will shed more light on what happened.”

City Power said: “Xulu did not consult anybody on the adjudication of the award.”

Jumping the gun?

The M&G has seen a letter of award to Edison, dated August 20 and signed by Xulu, indicating a contract amount of R1.25-billion.

But the adjudication committee’s report reflects that it only received the final evaluation committee report on August 21.

City Power says the date of the award letter was an “administrative error”, but within the body of the letter the August 20 contract start date is repeated – presumably another error. The utility says that on August1 the adjudication committee met to consider the matter. The committee resolved to award the contract, subject to the committee being provided with further clarification of information provided.

It is not clear on what report the committee based this decision because records show the official evaluation report was received on August 21.

City Power says the August 20 draft letter of award was prepared as part of the presentation to the adjudication committee, which met and formally awarded the contract on September 5.

Xulu only signed the committee report, which included an instruction that the evaluation committee’s report was “to be corrected”, on September 10.

That instruction appears to ­support the claim that some retrospective tinkering was done to the ­evaluation committee’s work.

City Power said Xulu’s instruction was a “request for clarification of information [and] did not relate to the scoring presented in the report”.

It is understood that the M&G’s preliminary enquiries about the tender led Xulu to appoint auditing firm Ernst & Young to review the tender award process.

The connected Mr Xulu

Sicelo Xulu played a central role in the process of awarding a new tender for smart meters. He approved the bid specifications, chaired the adjudication committee and issued the letter of award to Vivian Reddy’s Edison Power Consortium.

Given Xulu’s role, rumours about his closeness to President Jacob Zuma and the ANC raise concerns about perceptions of bias in favour of one of the president and the party’s most visible benefactors.

City Power managing director Sicelo Xulu denies that he is friends with Zuma

City Power managing director Sicelo Xulu denies that he is friends with Zuma. (Jeremy Glyn)

Xulu, who studied at Mangosuthu Technikon, is from the Nkanini area near Eshowe in northern KwaZulu-Natal and owns a home at the Eshowe Hills Golf Estate valued at R2.5-million.

Local ward councillor MM Cebekhulu from the Inkatha Freedom Party told the Mail & Guardian that Xulu was friends with Zuma and had invited him for lunch. He said the last known lunch at which Zuma was present was held before the 2011 local government elections.

Xulu responded: “It would be incorrect and presumptuous for me to claim that I am a personal friend of the president. I personally have not had the honour of hosting him.”

Cebekhulu said that during the 2011 elections Xulu bought ANC campaign T-shirts and had them distributed in the ward. He called Xulu an “activist”.

Xulu said that he had donated shirts to the ANC ward candidate, but had not distributed them, nor campaigned actively.

“I have never and will never allow my personal political views to cloud or compromise my professional career and/or my legal accountability as the accounting officer of City Power,” said Xulu.

A source who attended Edison’s year-end function – the James Bond movie premiere at Eastgate Mall in Johannesburg on the evening of November 21 – overheard Xulu’s predecessor, Silas Zimu, boasting that he and Xulu had received “personal invitations” from Zuma to visit him at his Nkandla homestead. But both dismissed the claim.

The presidency had not responded to questions by the requested deadline. – Jonathan Erasmus, Sam Sole & Lionel Faull

How smart is smart?

In a Johannesburg of the not-too-distant future, most middle- to high-income households will know exactly how much electricity they use each month and be billed accordingly.

Unlike the current pre- and post-paid meters, smart meters provide a real-time reading to consumers.

They also “talk to” a computerised data management centre, or “back end”, which is monitored by City Power and which, in turn, is linked to the city’s integrated billing system.

Smart meters can be switched between a prepaid or a postpaid option, depending on consumer payment preferences.

The “back end” can also interrogate consumption data, in order to make informed adjustments about electricity supply needs.

Smart meters cannot be bypassed or tampered with – a perennial problem in Johannesburg – because the built-in alarm system will alert City Power’s data management centre immediately. – Lionel Faull

The M&G Centre for Investigative Journalism (amaBhungane) produced this story. All views are theirs. See http://www.amabhungane.co.za for their stories, activities and funding sources.

18 JAN 2013 00:00 – LIONEL FAULL, SAM SOLE

Jo’burg’s R1bn ‘present’ to Zuma benefactor

Meet South Africa’s power elite

These are the people in the Zuma regime who have the power and the patronage. They are the most important people in South Africa because of their access to the right networks, ability to influence outcomes, their wealth or their ability to help others create massive wealth.

Meet South Africa's power elite

Meet South Africa’s power elite

If you want to know who South Africa’s power elite are, you should have been at the ANC gala fund-raising dinner held in Durban on Friday 11 January 2013, to celebrate the ruling party’s 101st anniversary. Predictably, ANC benefactor and local mining billionaire, Patrice Motsepe, was there and reportedly paid R500,000 to sit at the same table as president Jacob Zuma, Mineral Resources Minister Susan Shabangu, and other ANC leaders.

Another big-time ANC benefactor who was present was Robert Gumede, founder of the controversial IT group Gijima, which was embroiled in a tender fracas with Home Affairs. Gumede also has interests in the energy sector in South Africa, Zambia, Swaziland, Zimbabwe and Kenya. Through the Guma Group, he also has interests in mining resources; property; water sanitation and dams; hydro, nuclear, coal and turbine power; infrastructure; and construction.

Vivian Reddy also didn’t miss the opportunity to join SA’s power elite in the ANC celebrations. Late last year the Durban-based mogul was quick to admit that he had helped Zuma finance the president’s Nkandla homestead in Kwazulu-Natal. Reddy is the founder of the Edison Power Group, a commercial and industrial electrical company that was responsible for all the electrical installations at King Shaka International, a contract valued at some R500 million.

Other members of SA’s ruling power elite and big business, who rub shoulders with ANC luminaries and cabinet members, included Nafcoc president Joe Hlongwane (who is also a pastor at the Assemblies of God church); FirstRand’s Sizwe Nxasana; Chamber of Mines’ Bheki Sibiya; Siyabonga Gama of Transnet; former Reserve Bank governor Tito Mboweni; Sasol executive Maurice Radebe; as well as CEO of the 2010 FIFA World Cup Organising Committee and National Lotteries board member, Danny Jordaan.

At the dinner, Zuma controversially told ANC business benefactors that their fortunes would multiply if they threw their lot in with the ruling party. “Support is fine, we love it. But if you just go beyond that and become a member, you’ll realise everything of yours will go very well. If you are a businessman business will thrive. Everything you touch will multiply,” City Press quoted Zuma. The self-made billionaires and millionaires present confirmed this.

And so did Reddy’s some “R1 billion gift” from the city of Johannesburg, as Mail & Guardian put it. The investigative weekly revealed on Friday 18 January 2013 that a highly contested electricity smart card tender valued at R1,25 billion was reportedly awarded to Reddy’s company, the Eddison Power group, and that Reddy paid R450,000.00 to be at the ANC’s celebratory dinner.

But if you weren’t at the ANC’s celebratory extravaganza – which netted donations to the value of some R21 million, thanks largely to the efforts of the party’s new treasurer-general Zweli Mkhize – how does one know who are part of SA’s power elite?

Columnist and political analyst Aubrey Matshiqi told Daily Maverick that it was relatively simple to work out who the power elite were on the national platform: just follow the money. “Understanding who is in charge of this country means understanding the nexus between money and politics, and which interests are hegemonic in South Africa,” said Matshiqi.

The ANC is the obvious hegemony, with its political majority in government. But who are the power players? “Well, you have to look at which companies are dominant in the South African economy, and which companies the ANC cannot ignore when it comes to its interests,” said Matshiqi. “I think one has to look at it in those terms. And you have to look at which logic these companies support in the decisions they take – they can be powerful, but at the end of the day whose logic do these companies support?” he added.

Or, as Martin Plaut and Paul Holden state in Who Rules South Africa: “The most powerful political (but not necessarily economic) players are those BEE moguls and senior security advisers who have coalesced around the presidency of Jacob Zuma. Many have relationships with the President that go back a long way, while others have been elevated through Zuma’s control of the ANC deployment committee after 1998, which allowed him to place friends and allies in key positions in early 2012.” To this one must also add those drawn into the elite through their familial ties or royal lineage.

Royal bloodlines aside, another strong theme evident when Daily Maverick drew up the ‘power elite’ list (contained at the bottom of this story) was that of the military. Suffice to say that if you played a significant role in MK intelligence during the Apartheid years, were an MK general, or leader of the armed resistance, there’s a good chance you’d be in the golden circle.

Once the power elite have been identified, the next big leading question is: what will they do next? “I have a feeling that once an elite is through the door, and has got control of the networks, its next logical imperative is to shut the door and to change the rules,” said independent political analyst Nic Borain, who added that the process of elite formation could be stormy. “Up close this appears like an awful process – the ‘from-a-distance’ view may judge it more kindly, because the descendants and networks of the incumbent elite will want to launder their image and reintegrate into society, so as to gain wider acceptance,” he said. Certainly the run-up to Mangaung with its bloody battles and party fractures offered evidence of this thesis.

Borain believes that there will be calm after the storm. “Essentially this is the flood, the hurricane as the distortions of the past unwind, and the flood pours through and throws everything into disarray. As we head towards a new equilibrium, the interests of the incumbent elite, however ignoble its origins were, will be to re-establish order and to re-establish the rule of law,” he explained.

“It is a process of class building, and in general it is the deep, hidden structural features of a society that ultimately determine the big outcomes and longer-term rhythms, and not the choices and failures of individual politicians. Eventually we will have a new equilibrium, and the ones who got through the door first, the incumbent elite, will want to close the door behind itself, change the rules and get on with the job of re-establishing themselves as upstanding members of society,” Borain added.

What’s useful in the South African context is for people to wipe pluralistic idealism from their eyes and to start understanding local politics in more Laswellian terms. (US political scientist and communications theorist, Harold Laswell, defined politics as “the art of deciding who gets what, when and how”.)

In these terms, politics is the massive struggle for the allocation of resources, which includes vote-rigging, lobbying, buying friends and entrenching networks, and whatever else it takes to ensconce the power elite. Speaking to people watching this process from the outside in, there’s often an expression of impotence, of not being able to impact this massive struggle for patronage.

Perhaps what’s crucial, then, is the role that is played in monitoring how elites assume and maintain power (while of course trying to balance or fragment that power). Political scientist and author of Dilemmas of Democratic Consolidation, Jay Ulfelder, is rightly worried that SA is slipping into authoritarian rule, as the elites secure their position.

“From my observation of democracies around the world, I’m worried that the risk of a slide into authoritarian rule in South Africa over the next several years is rising and substantial,” Ulfelder writes in Foreign Policy magazine.

Ulfelder states that his pessimistic view “emerges from an unconventional understanding of what makes democracies survive or fail”, and writes that in his view “the risk of regime failure appears to increase over the first 15-20 years of a democracy’s life span and then more or less holds steady after that.” In other words, what South Africa is seeing now is the struggle by the elites to entrench their power.

Organisations that can break a democracy are major political powers and the military, Ulfelder asserts. In South Africa, the opposition is limited because of the ruling party’s majority, so the power nexus is vested with the state security complex. “Depending on which organisation is doing the usurping, the resulting actions can take the form of a military coup, an opposition-led rebellion, or what some scholars call a ‘consolidation of incumbent advantage,’ where the winners of the most recent election try to cement their dominance by incrementally fixing future rounds of play in their own favour – rigging electoral procedures, harassing opponents, and circumscribing civil liberties,” he states. The latter is the state of play in South Africa: the nexus of power in the ANC is consolidating its incumbent advantage and trying to fend off any and all invasions to the gates of power.

Ulfelder believes SA’s “prolonged post-Apartheid honeymoon” is ending and the pressure on the ANC’s elite is increasing dramatically as people demand a better life, as was promised to them. “In the 18 years since Apartheid ended, the ANC has had no reason to tilt the electoral field to its own advantage, because it hasn’t faced electoral threats serious enough to warrant the costs.” However, this is changing, as evidenced by Marikana, the wave of strikes, service delivery protests, the workers’ rebellion at farms, police torture and brutality of dissidents and the numerous onslaughts against SA’s constitution. More evidence of it is to be found in the ANC’s unity drive and the party’s determination to expel or discipline any dissenters.

But the ANC could still face its biggest stressors and this could take the form of “a split within the party or the emergence of a radical flank,” said Ulfelder. Prior to Mangaung, SA saw the potential for this in Mahikeng, Potchefstroom and Marikana. The flavour of this radical flank was saturated by militancy, courtesy of a radically socialist youth, until it was quashed within the ANC. But an angry and embittered working class is still clenching its fists to the sky in the mining and farming sectors.

How will the elite respond to possible warring factions or to those that threaten its power? The battlefield of Wesselton in February 2011 and Marikana in August 2012 could be an answer. The ANC’s clampdown on the media, the steamrolling of the POIB through parliament and the Tribal Courts Bill could be an answer. The death of Andries Tatane.

“These reactions suggest a willingness to play the kind of hardball that could lead South Africa into a competitive authoritarian regime, as challenges to the ANC grow more frequent and intense. The motive to steamroll potential rivals in this manner presumably stems, at least in part, from the personal fortunes some party insiders have accumulated in the post-Apartheid era,” writes Ulfelder. He adds: “Put those pieces together, and the picture that emerges is one of an increasingly oligarchical regime that seems likely to respond to emerging threats to its power by trying to squash them.”

SA’s power elite have risen to power. Now all they need to do is close the door behind them and change the rules of the game, to ensure they remain in power. DM

Want to know who’s got the power? Here is Daily Maverick’s, working and far-from-complete, list of South Africa’s power elite as of Friday 18 January 2013. Daily Maverick is indebted to Adriaan Basson (@AdriaanBasson) Assistant editor at City Press and author of Zuma Exposed for the generous use of his research to help compile this list. Thanks also go to Amabhugane for their continued investigations into Zuma Inc.

Jacob Zuma – President of South Africa. Re-elected as president of the ANC December 2012.

  • Sole director of Michigan Investments.
  • Chair of the Masibambisane Rural Development Initiative, which kicked off with a R1.2 million grant in 2008 from the IDC. Masibambisane RDI is said to be on the verge of bankruptcy and is steeped in controversy after being part of a bid to develop a R2-billion town nearby Zuma’s Nkandla homestead. Mail & Guardian revealed that the department of agriculture, forestry and fisheries allocated “a staggering R800 million to support Masibambisane”.
  • Patron of the Jacob Zuma Foundation. In 2010 mining magnate and ANC benefactor, Patrice Motsepe, announced he would give R10 million to the trust over five years. The trust was, until recently, run by Dudu Myeni – said to be a member of Zuma’s ‘inner circle’ who was appointed the new head of ailing SAA a few days back. Myeni was the focus of a Special Investigating Unit (SIU) investigation into alleged maladministration, abuse of state resources, noncompliance at Mhlathuze Water Board between 2004 and 2008.
  • Founder and patron of the Jacob Zuma RDP Education Trust. Mail & Guardian reported that Edusolutions, the company embroiled in the SA’s shameful text book saga had funded Zuma’s education trust, and that its CEO has accompanied the president on a trip to the US.

The Zuma Family Dynasty

  • Nompumelelo Ntuli-Zuma (Zuma’s wife). A wide array of business interests and NGOs that include Wamuhle Construction; Vuna Imbewu; Intsika Yembokodo Development Projects; Unumpumelelo Trading and Projects; Bhekisisa Abantu and Heavenly Promise 85. Ntuli-Zuma founded the Mantuli Zuma J Foundation and the Mantuli Foundation. In April 2012 Sunday World reported that MaNtuli’s NGO, Intsika Yembokodo Development Projects, collapsed amidst allegations that the first wife had squandered funds on items that had nothing to do with the running of the organisation. Other directors of the NGO included Noluthando Vavi (Cosatu Secretary General, Zwelinzima Vavi’s wife). In 2010 it was revealed that MaNtuli’s “luxury lifestyle” had been bankrolled for years by former NIA operative and Durban businessman Erwin Ullbricht as well as multimillionaire Abdul Rahim Malek.
  • Tobeka Madiba-Zuma (Zuma’s wife). Business interests include Cherry Moss Trade and Invest 176; Lavender Sky Investments 25; Vautrade; and Glenlyn Investments. Her foundation is the Tobeka Madiba Zuma Foundation. Madiba-Zuma purchased a mansion in Durban last year for R8,8-million which was registered in the name of the Madiba Family Trust.
  • Bongi Ngema-Zuma (Zuma’s wife). Controls the Sinqumo Trust which was used in 2011 to purchase a house worth R5,2 million in Waterkloof, Pretoria. Mail & Guardian reported that the Guptas bankrolled Ngema-Zuma’s bond of R3,8 million. Ngema-Zuma founded the Bongi Ngema-Zuma Foundation to share knowledge and “awareness about diabetes, education and other interventions that demonstrably change for the better the lives of the affected people.”
  • Nonkululeko Mhlongo (Zuma’s girlfriend). Interests include Bambanani Micro Business Network; Imvusa Trading 582; Bucebo General Trading; and Owabantu Logistics and Construction. Mhlongo joined the following companies after Zuma was elected president in May 2009 – Black Target Investments; Dobson Investments; Leading Role Trading and Projects; Mthunzy Holdings.
  • Sonono Khoza (Zuma’s girlfriend). The daughter of Orlando Pirates boss, Irvin Khoza, who was also the chairman of the soccer World Cup local organising committee. Sonono Khoza is a mother to one of Zuma’s children. Khoza’s business interests include Amahle Management Services and Tes Projects Management. Khoza joined the following companies after Zuma was elected president in May 2009 – Flysawise; Imifula Development Corporation; Iningi Investments 190; Mayisane Investments; and Fire Raiders. Khoza set The Zodwa Khoza Foundation at the beginning of 2011, which states that it will focus on “the pursuit of excellence in research, treatment, training and prevention of HIV and related infections in Southern Africa”.
  • Duduzane Zuma (Zuma’s son). When his father became leader of the ANC, Duduzane joined Mabengela Investments; Westdawn Investments and Gemini Moon Trading 254. Subsequent to Zuma becoming president of SA, Duduzane’s business interests extended to include Karibu Hospitality; Afripalm Horizons; CRCC Afripalm Construction; Dunrose Investments 180; and Islandsite Investments 255. Zuma Jnr is on the board of JIC Mining services along with Rajesh Gupta, while this company is owned by Oakbay Investments, which is a Gupta company. He was also linked to Imperial Crown Trading 289 (through his business partner Jagdish Parekh), which was controversially involved in the Sishen mineral rights scandal, which literally made the directors billionaires overnight. Zuma is on the board of other Gupta-owned companies including Sahara Holdings and Shiva Uranium.
  • Edward Zuma (Zuma’s son). Business interests include Silvex 556; Isthebe Construction and Engineering; and a range of companies that the president’s son joined after Jacob Zuma took office. These include Southeast Network Construction SA; SA Guilding Star Trading; Nippon Import Export SA; Isthebe Petroleum; Isthebe Oil and Gas; Isthebe Foods; Dumaka Alternative Technology; Ocean Crest Trading 51; Khumusi Trading Enterprise; Izichwe Investment Holdings; and Masikhuza. In November 2012 it was revealed that Zuma Jnr had defaulted on two loans totalling close on R5 million from the Ithala Development Finance Corporation. Earlier in September 2012 it was reported that Edward Zuma was being sued by a wedding planner for not paying the R1,5 million still owed on his 2011 wedding to Pumelele at the Tala Game Reserve in KwaZulu-Natal. The total cost of the wedding was R2,5 million.
  • Mxolisi (Saady) Zuma (Zuma’s son). Business interests before father’s ascendency vested in Myriad Brokers. After Zuma became president Saady joined Unogwaja Investments; Quandolor Investments; Tekiwing Inkunzi Investment; Corpclo 2790; and National Pride Trading 259.
  • Gugulethu Zuma (Zuma’s daughter). Joined Born Free Investments 660 after her father became ANC president at Polokwane. Joined Nyenyedzi Productions and Vukani Africa Events and Training after her father became SA’s president. Zuma was cast in Isidingo during 2009, but subsequently left to star in It’s For Life on Mzansi Magic on DStv in 2011. Jacob Zuma’s other daughter Nokuthula Zuma also starred in the sitcom, which was produced by the sister’s company, Nyenyedzi Productions. The presidential twitter account came under some fire last year when it was used to promote the show.
  • Duduzile Zuma (Zuma’s daughter). Used to sit on the board of the Gupta family-owned tech company, Sahara Computers, but no longer occupies this position. Her business interests include Alkara 350; Attractive Move Invest and DUZI Investment Holdings . The latter investment holdings company claims to have investments in the financial sector in Zambia; in housing projects in Angola and infrastructure development in the DRC. Zuma founded the Dudu Zuma Foundation together with African Star Communications. A PR and events company, African Star handles PR for the Dudu Zuma Foundation and is Dudu Zuma’s publicist. Duduzile is married to Lonwabo Sambudla who is linked to The Billion Group, and actively lobbied for a R1-billion department of public service tender to go to the company. Sambudla admitted he had received commissions from The Billion Group.
  • Thutukile Zuma (Zuma’s daughter). Involved with Born Free Investments 660.
  • Nokuthula Zuma (Zuma’s daughter). Interests with Born Free Investments 660, as well as the following after her father became president: Nyenyedzi Productions; Aspigon 98; and Spectacular Real Promotions.
  • Khulubuse Zuma (Zuma’s cousin). Since Jacob Zuma’s ascension to power his business interests have exploded and include Impinda Transport; Daartingo Trading 191, Royal HTM Group; Cyndara 92; Elatirex; Izichwe Investment Holdings; Labat Africa; Meziblox; Relibex; Sanchopath and Sanchophase. Chairman of Aurora Empowerment Systems with Jacob Zuma’s lawyer, Michael Hulley, and Nelson Mandela’s grandson, Zondwa Mandela. Aurora was controversially involved in the collapse of Pamodzi mines in Grootvlei on the East Rand and Orkney in North West, where assets were stripped while workers starved. Mail & Guardian reported that Aurora is now in talks with a Chinese mining company for a rescue bid of Pamdozi, through an SA-based Taiwanese man called Jen-Chih “Robert” Huang, who was once convicted of murder. Khulubuse also has oil interests in the DRC, and is the owner of the Impinda Group. Noted for his extravagance, this Zuma once owned 19 cars including a gull-wing Mercedes-Benz SLS 63 AMG, valued at R2.5 million.

Cyril Ramaphosa – Deputy president of the ANC. Business magnate with interests in mining, telecoms, energy and the financial sector. Former Secretary General of the African National Congress.

Gwede Mantashe – ANC Secretary General. Former General Secretary of NUM and former chair of the SACP. Mantashe was the first trade unionist to be appointed to the directorship of a JSE listed company (Samancor) in 1975, a position he still holds today. Mantashe’s former deputy general secretary at NUM, Archie Palane, is head of corporate affairs and transformation at Samancor.

Patrice Motsepe – Mining mogul. ANC benefactor. Benefactor of the Jacob Zuma Foundation. Benefactor of the Masibambisane Rural Development Initiative.

Malusi Gigaba – Public Enterprises Minister. Former President of the African National Congress Youth League. Member of the ANC NEC. Member of the ANC National Working Committee.

Jeff Radebe – Minister of Justice and Constitutional Development. ANC policy head.

Bridgette Radebe – Executive Chairperson of Mmakau Mining, which has interests in gold, coal, platinum, chrome and uranium. President of the South African Mining Development Association. Vice Chairman of the Minerals and Mining Development Board advising the Minister of Minerals and Energy. Founder and Board of Trustee member of the New Africa Mining Fund. Director of SAPPI. SA’s first black female mining mogul. One of Africa’s richest women. Sister of Patrice Motsepe. Married to Jeff Radebe.

Robert Gumede –Diversified business leader. ANC benefactor. Founder of IT company Gijima and the Guma Group of companies which operates through Africa, as well as Canada, Australia, Europe, and the Middle East. The Guma Group has interests in the energy sector in South Africa, Zambia, Swaziland, Zimbabwe and Kenya. The business also has interests in mining resources; property; water sanitation and dams; hydro, nuclear, coal and turbine power; infrastructure; and construction.

The Gupta family – Zuma family benefactor. Owners of The New Age. Business interests in mining, resources, aviation and technology. In his book, Zuma Exposed, Adriaan Basson writes that six months after Zuma was first elected ANC president at Polokwane in 2007, the president’s family was in bed with the Guptas. “The twins, Duduzile and Duduzane Zuma, had been co-opted into the Guptas’ network of businesses. Duduzile was appointed as a director of Sahara Computers, the family’s main business, in June 2008. A month later, Duduzane became a director of Mabengela Investments (PTY) Ltd alongside Rajesh ‘Tony’ Gupta, the youngest of the three Gupta brothers, and in September Duduzane was appointed as a non-executive director, alongside Rajesh Gupta, of mining labour broking firm JIC Mining Services.” Speaking to people with knowledge of how the Zumas role, Basson was told: “The Guptas are the new Shaiks”.

Lindiwe Sisulu – Minister of Public Service and Administration. Former defence minister. Daughter of ANC leaders Walter and Albertina Sisulu. Sister to Max Sisulu. Former MK intelligence.

Zweli Mkhize –Elected ANC treasurer-general in Mangaung. Keeper of the ANC’s funding secrets. Premier of Kwazulu-Natal. Chancellor of the University of Kwazulu-Natal.

Siyabonga Cwele – Minister of State Security. POIB champion. Cwele was married to Sheryl Cwele, who was sentenced to 12 years’ imprisonment after facing one count of dealing in dangerous dependence-creating drugs or conspiring to do so, and two counts of incitement to dealing in dangerous dependence-creating drugs.

Nathi Mthethwa – Minister of Police. Was on the board of directors of the 2010 FIFA World Cup Local Organising Committee.

King Goodwill Zwelithini – Zulu royalty, eighth Monarch of the Zulus.

Vivian Reddy – Founder of Edison Power Group. Unashamed Zuma benefactor. Self-proclaimed as the “great success story and shining example of the resilience and trailblazing new generation of Black South Africans”, Reddy says he “started Edison Power with R500 and a bakkie and today Edison Power Group is the largest electrical company in South Africa, employing 2,000 people with a multi-billion rand turnover. Born in Durban and from very humble beginnings, he has virtually single-handedly created a business empire with diverse interests in energy, casinos, healthcare, financial services and property development. Reddy also very modestly proclaims that his “stature and profile easily dwells among that of the top icons in South Africa and he commands the respect of both the financial and political hierarchy in this country and most parts of Africa.”

Sandile Zungu – Chairperson of private equity, investment and resources company, Zico. Former chairperson of Denel, Barnard Jacobs Mellet Holdings and Spectrum Shipping. Bankrolled Zuma’s successful bid for presidency.

Don Mkhwanazi – A close friend of Zuma. A Zuma financial backer. Founder of Friends of Jacob Zuma Trust, of which Zuma was the beneficiary. Mkhwanazi’s wife owns Ikhono Communications, which has won numerous government tenders. Mkhwanazi, a BEE dealmaker, is the strategic advisor to Ikhono.

Siphiwe Nyanda – Zuma’s personal representative in Parliament. Former Minister of Communications. Former chief of the SADF. Former MK chief of staff.

Barnabas Lekganyane – Zion Christian Church leader.

Nkosazana Dlamini-Zuma – First female leader of the African Union. Former Minister of Foreign Affairs, Home Affairs & Health. Former wife of Jacob Zuma.

Sibusiso (S’bu) Ndebele – Minister of Correctional Services. ANC NEC member. Former ANC provincial chair.

Collins Chabane – Minister in the Presidency – Department of Performance Monitoring and Evaluation.

Blade Nzimande – SACP general secretary and cheerleader-in-chief for all things Zuma.

Tina Joemat-Pettersson – Minister of Agriculture.

Naledi Pandor – South African Minister of Home Affairs.

Ace Magashule – Free State Premier. Longest serving ANC provincial chairperson.

Michael Hulley – Zuma’s personal lawyer. The presidential legal adviser. Protector of the Zuma “spy tapes”. Overseer of bid committees.

Brian Molefe – CEO of Transnet. Former Public Investment Corporation boss.

This list is just a beginning of a longest journey, and Daily Maverick will be adding to it and updating it in the weeks, and months, to come.

Correction: The earlier version of this story stated that Duduzile Zuma founded the Dudu Zuma Foundation as well as African Star Communications. In fact, Duduzile Zuma founded the Dudu Zuma Foundation together with African Star Communications.

By Mandy de Waal

South Africa’s power elite

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