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For those who were tortured by my somnolently incoherent post last night, here is the follow up. Hopefully a little clearer.
- The flip-flops around the Minister of Finance leave Jacob Zuma looking weak and vulnerable. There are grounds to begin questioning whether he will see out his full term.
- The appointment of Pravin Gordhan is a victory on a number of different fronts and should be celebrated.
- We can expect the process of fiscal consolidation to continue on track.
- It really is the season to be jolly.
Gordhan’s shock reappointment as Finance Minister – positive
Jacob Zuma fired the increasingly widely respected Minister of Finance, Nhlanhla Nene, on Wednesday December the 9th. He gave no reasons but there had already been wide speculation that:
- Nene decisively blocked a nonsense SAA deal to lease some Airbus planes upon which Zuma associate SAA board chair Dudu Myeni had set her sights;
- That Nene was pushing important investigations into corruption or mismanagement at SABC that were getting uncomfortably close to Zuma’s close personal friend Hlaudi Motsoeneng and
- Most importantly Nene was blocking the (approximately) ZAR1-trillion nuclear deal that was the pet project of Jacob Zuma and his close business associates the Guptas – who had appeared to prepare for the deal by investing heavily through Oakbay investments in several uranium mines
Almost immediately the ZAR tanked, the bond yields spiked and everyone with a voice screamed blue murder at the irrationality of the axing.
Zuma then, perhaps more mysteriously, appointed the relatively unknown and unqualified David Van Rooyen to the post, despite there being many highly qualified candidates available (South Africa has made a point of putting its highest quality ministers into the National Treasury position.) The widespread assumption was that Nene was being replaced by someone who would be more compliant to the President’s wishes, and more importantly, to the wishes of those who are in business with the President.
Then, even more shockingly, late last night (13/12/2015) Jacob Zuma did an about turn, dropped Van Rooyen and reappointed Minister of Co-Operative Governance, Pravin Gordhan, as Finance Minister (a post he – Gordhan – held prior to Nene’s appointment 18 Months ago.)
Jacob Zuma has had his wings closely clipped – which is a good thing
The decision to axe Nene bordered on the criminal but most analysts thought that Zuma could get away with anything he wanted within the ANC – even as the ANC lost support amongst the electorate. Well it appears they were wrong. A powerful enough group of leaders have got together, sat Zuma down and forced him to make a humiliating climb down. The financial market response might have helped and the bleating of the opposition and the press would have given some support, but the ANC prides itself of being impervious to the shallow swings of public opinion (which is no bad thing). This was an internal leadership revolt against Zuma, the Holy Grail that many had been hoping for as the country went from the healthy constitutional democracy of 2007 to this damaged (in many of its most important institutions) country, almost overwhelmed by rent-seeking and corruption.
We out here in the public realm don’t know anything for sure, except Zuma was given a ‘warm klap’ (warm slap – colloquial Afrikaans) and we can hope that this might begin the unravelling of his negative influence on the country and its politics. The admonishment and humiliating climb-down must have been caused by ANC heavyweights who have finally found their voice and power enough to put Zuma in his place.
Pravin Gordhan will be a better Minister of Finance – even than he was before
Gordhan has all the credentials and had a close to faultless term as head of the National Treasury. (If memory serves, like all heads of the NT his slips concerned the public wage sector bill and desperate attempts to avoid public sector strikes.) His only weak point is he tends to run an unhappy office … it was widely speculated that the staff at the National Treasury were unhappy with his dictatorial style of leadership. This we can live with.
Of interest is that since Gordhan had left the Treasury a witch hunt has been conducted in Gordhan’s previous posting, the South African Revenue Service, SARS. The witch hunt has been against an alleged “rogue spy unit”. The fact is the special investigation units, established by Trevor Manuel and Pravin Gordhan were an essential part of investigating complicated tax avoidance and fraud cases, especially those involving heads of large criminal networks and powerful politicians. It is a small step to see who might have been the obvious targets of the special investigative units. And an even smaller step to see why and who has stimulated the witch hunts and slander against the loyal SARS investigators involved in these units – calling them rogues and criminals, and ensuring their dismissal or buyout.
Thus this is going to be a Finance Minister that nobody is going to push around – especially not Jacob Zuma and his cronies – against whom Gordhan has good reason to feel ill-disposed. It’s a win-win.
My only faint worry is I am not sure of Gordhan’s attitude to the nuclear programme. I am sure he will not do anything to threaten the process of fiscal consolidation, but as an old style ANC securocrat he might have an over-attachment to nuclear power (an affliction of those who grew up in the ANC in the 70’s mostly because of the USSR’s warm embrace of that technology).
… but it’s difficult to know who to back
Thank you Mail and Guardian for publishing the story we all wanted even though you have probably broken the whole cannon of ethics in journalism.
The story to which I refer, titled “Ramaphosa starts fight for top job”, was published in the print edition of the aforesaid newspaper on November 13, it was written by Mmanaledi Mataboge & Matuma Letsoalo and leads with that treasured line: “ANC deputy president Cyril Ramaphosa has declared his intention to stand for the ruling party’s presidency in 2017, sources say.”
Yes, we all know that sources say “Space pumpkins stole my baby”, “Jesus was an astronaut” and “Jacob Zuma has no relationship whatsoever with SAA chairperson Dudu Myeni”, but in the M&G case referred to above I am prepared not only to forgive them because they took one on the chin for the team but I honour, respect and encourage them through the difficult times that lie ahead for them and other similarly esteemed organs.
So … Cyril Ramaphosa is the presidential candidate for a slate including Gwede Mantashe, is (probably) backed by Gauteng and Eastern Cape provincial ANC’s, is also backed by Limpopo but unreliably and incoherently. They (this camp) will fight on every terrain where votes are up for grabs in 2017 – which includes KwaZulu-Natal that they narrowly lost to the opposition at the provincial conference last weekend. They will obviously try to win Western Cape, Northern Cape and seem confident that the ‘premier league’ provinces (Free State, Mpumalanga and North West under the the charming patrons, Ace Magashule, David Mabuza, Supra Mahumapelo) should yield votes in their favour too.
The other camp, let’s call it the Nkosazana Dlamini-Zuma Camp, is backed by the ‘premier league’, the ANC Women’s League, the ANC Youth League, the winning faction in Kwazulu-Natal (and that is big cheese in ANC internal national votes) and all the premier league provinces. So they are ahead, in case you missed that.
If that’s all plain sailing for you up till now, here comes the confusing bit: the SACP is under vigorous attack by most of the elements supporting the Dlamini-Zuma camp and we must assume the SACP is backing the Ramaphosa/Mantashe ticket.
I would prefer things to be neater. I haven’t argued this point in these pages in enough detail – or with enough vitriol – but in my private pantheon of villains of South African post liberation politics the SACP has pride of place. In about 2005, facing a probable ousting from the ruling alliance by Mbeki, the SACP pulled off a tactically brilliant but deeply unprincipled counter stroke by riding the debauched, corrupt, amoral, untrustworthy, deceitful, disreputable, tribal, traditionalist, sexist, shameful and scandal-ridden – but still saleable to the populist masses – Jacob Zuma back to power in December 2007 – later ensuring Mbeki’s early removal from the presidency. (Can I say that on my blog? No, you’re fine. That’s all true. I took the illegal stuff out; it halved the length of the story – Ed).
The SACP was lavishly rewarded in the Judas coin of cabinet posts and general status and influence and continued to act as Jacob Zuma’s strength and shield through the myriad scandals that were to follow.
It is my belief that the impact this party’s control of industrial policy has had on our national economy has been little short of ruinous, and its top leadership has shown arrogance, contempt and self-aggrandisement on a scale I would never, ever, have predicted from the party I idealised throughout the 1980’s.
So what happened? Why did groups I assume are close to … or proxies for … Jacob Zuma begin attacking the SACP. (Lets leave the #FeesMustFall for the moment as a stroke of luck for those pushing this line … and get back to it when we are being more conspiratorial.)
Slight rumours of criticism of Jacob Zuma’s various excesses and the SACP’s culpability in its stance in relation to the president filtered into the public domain from discussions internal to the SACP in the lead up to its 3rd Special National Congress in July 2015. Perhaps that self criticism was a lot harsher and the party realised that sticking with Zuma, his policies, his patrimonial and clientelist style, his absence of a plan would lead the country, the ANC and the SACP towards catastrophe?
I do think the SACP has been a restraining hand on the worst excesses of corruption and patronage … so it is not inconceivable that in contrition (and lack of other choices) they have joined the good guys.
I have discussed in detail in the past why Ramaphosa will always be treated with caution by the exiles, Robben Islanders, and the those who worked primarily in the underground military and security apparatuses of the banned ANC. I will get back to this question as I think the conclusion I drew might be changing.
Three last small points
I think both candidates would be more than adequate to fill the positions they are competing for. A significant portion of Dlamini-Zuma’s support is coming from groups that are characterised by the words I used to describe Jacob Zuma six paragraphs above this one. If there is a large centrist group of progressive Africanists, waiting to show their hand for Dlamini-Zuma, let them do so soon. And they should learn from the SACP that unprincipled alliances can end up doing you much harm.
The ‘woman for president’ argument is basically rubbish. Interestingly it was Thabo Mbeki in his struggle against the rise of Zuma that brought up this facile and distracting little trick. At least Mbeki had made the right noises about the role of women throughout his presidency so that when he suggested Phumzile Mlambo-Ngcuka (then deputy president), alternatively Nkosazana Dlamini Zuma, it could not as easily be dismissed as a dishonest ploy.
The argument being advanced in 2015 that Nkosazana Dlamini-Zuma should be president because it is time for a woman president, is being advanced by the most backward, traditionalist, dare I say misogynistic, elements of the ANC. Dismiss the argument out of hand – even if the appointment of a women president, perhaps of the highly experienced Nkosazana Dlamini-Zuma, might be something of which we could all be justifiably proud. The argument has been advanced purely for factional reasons – which doesn’t necessarily mean it won’t get support from those who believe it would be inherently a good thing.
Finally this is all being played out in the public realm (which basically means it is being cobbled together out of hints and rumours by analysts and journalists) extremely early.
Remember this is a contest that will only be formally resolved in 2017 (probably in December of that year) at the ANC elective National Conference and only lead to a change in the country’s government and president in 2019. I assume it is a sign of desperate desire for change (for the better) and fear of change (for the worse) that has caused these issues to assume such a central public focus so early.
Here are some bits and pieces I highlighted for investors over the last few weeks. Thanks as always to BNP Paribas Cadiz Securities for allowing me to republish these snippets here … it is also a touch more information that most people require, but I post it here for the record, if nothing else.
I write these under considerable time pressure – deadline 06h30 0n Monday mornings. They can sometimes be a bit scrappy, but mostly (although with exceptions) still relevant a few weeks later. Where I say ‘yesterday’ or ‘today’ (or whatever) I mean: relative to the date in the highlighted headline above each section. The newest is on the top – stretching all the way back to the ancient history of Nkosazana Dlamini-Zuma at the US-Africa summit in Washington.
Lesotho, South Africa … and the Guptas
Lesotho Prime Minister, Thomas Thabane, was assisted by South African special forces soldiers to flee to South Africa in the face of a military backed ‘coup’ on early Saturday morning. The ‘coup’ (or ‘coup attempt’ – both terms are used extensively in the coverage) was allegedly orchestrated by Deputy Prime Minister Mothetjoa Metsing.
The key features of the event were the co-ordinated encircling of police barracks by the military, the disarming of the police and the seizing of the national broadcaster in the country’s capital Maseru on Saturday. (Sunday Times, Voice of America, City Press, Sunday Independent – 31/08/2014).
The Sunday Times story suggests the ‘coup’ was sparked by Friday’s firing of army chief Lieutenant-General Kennedy Kamoli by Lesotho’s King Letsie. The City Press reports that South African troops are on standby for further interventions.
Lesotho army spokesman Major Ntele Ntoi has denied there was a coup and says the army’s actions were purely to disarm police “who had been preparing to provide weapons to political parties” – Sunday Times.
Thabane, in a phone interview with Voice of America, said he was not going back until his safety was secured, that there was a situation of “total indiscipline” in the army and that soldiers were “running around the streets, threatening people” and “quite openly stating that they want my neck” – see here for VOA coverage.
This is almost too bizarre to type out, but here goes: a significant portion of the coverage of the event refers to the recent controversy surrounding the issuing by Thabane of diplomatic passports to the Gupta brothers (who we know better as key Zuma and ANC backers and funders, see Mail and Guardian coverage “The Grim Tales of the Brothers Gupta” for background).
At the time of the appointment Thobane said “(t)hese people (the Guptas) are good friends of the ANC and we have good relations with the ANC … I was introduced to them by ANC president [Jacob Zuma] and other ANC officials… I then appointed them to help scout for investment in my country. They have influence in a number of countries that can help Lesotho” – see here for that story.
In highly interpenetrated and interdependent systems of patronage and corruption, unsuccessful attempts to defend one part of the system can unravel the whole system and cause destabilisation throughout the linked networks.
Jacob Zuma’s Russian rest
Jacob Zuma visited Russia this week for six days. He had a light schedule and was, unusually, only accompanied by State Security Minister David Mahlabo and Deputy Minister of International Relations and Cooperation Nomaindia Mfeketo. There has been widespread but largely fruitless speculation about what the President was doing in Russia. (See City Press’s “Jacob Zuma’s mysterious mission to Russia” and former leader of the opposition DA Tony Leon in the Sunday Times in an opinion piece titled “How much more abuse can the constitution take from Zuma?” … unfortunately can’t find a link to that.)
The crisis faced by Russian President Putin is, by all accounts serious and urgent – and it might seem unlikely that he would have made time for a casual tête-à-tête with Jacob Zuma. Thus we can assume that Putin was in part motivated by wanting to demonstrate he still has friends in an increasingly chilly world. Also there is the sourcinig of agricultural products to fill the gaps left by European and US sanctions against Russia over Ukraine – a job South Africa could be well placed to do.
However Jacob Zuma appeared less to be representing South Africa and more on a personal visit – with several reports, including from government, that he would use the opportunity to rest.
It is difficult to escape the perception of two embattled leaders involved in a perhaps complicated exchange and attempting to secure their present and future:
- there is the upcoming ZAR850bn nuclear build programme that probably depends on Jacob Zuma staying at the helm in South Africa – Russia reportedly hopes to be central to that programme.
- Jacob Zuma’s key spy chiefs all reportedly resigned when he (Zuma) refused to allow them to investigate the Gupta brothers as a serious threat to national security (see back story on that here).
- Jacob Zuma faces unprecedented blowback at home, including the possibility of a public discussion around the original fraud, corruption and racketeering charges against him (see here) now that the famous Spy Tapes are to be handed to the Democratic Alliance in the official opposition’s attempts to have the National Prosecuting Authority’s decision not to charge Zuma reviewed.
- Also in yesterday’s Sunday Times was an important ‘leaked’ story that South Africa had sent a large group of intelligence officers to be trained in Russia and that “the Russians have recruited at least four of our people, which means we are sitting with double agents” – according to an unnamed source “with inside knowledge of the programme” – Sunday Times 31/08/2014.
It is not inconceivable or unreasonable to consider the possibility that Jacob Zuma is asking for intelligence and security coverage and offering in return nuclear contracts and public expressions of support. It’s not a perfect theory, but some kind of explanation is required.
Ruling alliance divides itself neatly on defending or attacking the public protector – is Jacob Zuma becoming a cost the ANC cannot bear much longer?
Zwelinzima Vavi, Cosatu general secretary, broke ranks with the ANC on Saturday arguing that the Public Protector’s recommendations on resolving the Nkandla dispute (in which over ZAR200 million of public money was spent irregularly on Jacob Zuma’s private house) should be implemented immediately … “all of them, without exception.” Vavi went on to say that criticism of Madonsela were “absolutely disgusting, to say the least”– Vavi in the Sunday Times 31/08/2014.
While the main structures of the ANC and its government attempt to close ranks around Jacob Zuma as the multiple scandals unfold and the threats against him grow, the hegemony is crumbling and the edges.
The ANC still has a comfortable electoral majority although as I have pointed out on many occasions, at least part of the electoral declines the ruling party experienced in May, especially in the sophisticated metropolitan areas of the economic heartland of Gauteng, have to do with perception of corruption and mismanagement at the top. It is difficult not to concur with the implicit meaning of the headline of Barney Mthombothi’s column in the Sunday Times yesterday which reads: “ANC courts its own destruction”.
We must consider that the cost of defending Zuma’s multiple infractions is starting to tell on the ANC (as it is telling on the party’s alliance with Cosatu).
I would reason that the ANC’s brand value is being seriously impacted by Jacob Zuma’s presidency and that, almost as a natural law, such a threat to value will call into being an attempt to defend the value by those who have the most to lose (other leaders and members of the ANC)
It’s the future, so I am guessing, but I think it is an even chance that Jacob Zuma will be moved into retirement within the next two years and that the official reasons will be related to his health.
(This added as I post these comments here: the above several paragraphs might be wishful thinking. If you want to see a well reasoned opinion that takes the opposite view, see the interesting Daily Maverick column by Ranjeni Munusami arguing that Zuma will see out his second term. I suspect that I just can’t live in a world where the thugs get away with it for ever (this paragraph was edited after posting – Ed)
Ebola spreads to Senegal – World Health Organisation warns of ‘rapid hike’ in infections
The Ebola (haemorrhagic fever) epidemic ‘sweeping’ West Africa has killed approximately 1500 people and the first cases have been confirmed in Senegal, having up until now being confined in Sierra Leone, Liberia, Guinea and Nigeria.
Ebola was first identified in the north of the Democratic Republic of the Congo in 1976 and outbreaks have been common in Central and Western Africa since that time. The disease is isolated and confined to countries with weak public health systems and high levels of poverty. In all the news coverage, the headlines tend to be more alarming than the content of the stories. There are various experimental drugs in trial (including one made jointly by GlaxoSmithKline and the US government which has achieved high levels of success) – Sunday Independent – 31/08/2014.
Pay Back the Money … or we’ll huff and we’ll puff
Julius Malema and his cohorts in the National Assembly didn’t quite blow the House down on Thursday last week during President’s Question Time.
They disrupted parliament by demanding that Jacob Zuma pay back a portion of the costs of upgrades to his Nkandla home, as specified by the Public Protector Thuli Madonsela. Their chanted refusal to accept the stock brushoff from Zuma and the poor management of the showdown by Baleka Mbete, Parliamentary Speaker (and ANC National Chairperson), is the leading edge of yet another storm that concerns Jacob Zuma’s integrity – and the ability of the constitutional mechanisms to hold him to account. (Here for a useful and interesting take on festivities.)
But political theatre becomes something more serious as the Public Protector and the ANC and its allies go head-to-head on the issue
Several Sunday papers reported yesterday ( 24/08/2014) that the Public Protector Thuli Madonsela has sent a letter to Jacob Zuma criticising several aspects of his response to her Secure in Comfort report and specifically arguing that he (Zuma) did not have the constitutional right to set aside or review her findings or to allow Police Minister Thathi Nhleko to do so (in essence Zuma has asked Nhleko to determine what his – Zuma’s – financial obligations are with regard to the Nkandla security upgrades).
According to constitutional law expert Pierre de Vos Madonsela is well within her rights. “This is not legally controversial,” he says, quoted in today’s Business Day (25/08/2014). “The president is either receiving appallingly bad legal advice or he is wilfully abusing his power and thwarting the law to protect himself in order to unlawfully benefit financially from the state.”
Both the ANC and the SACP came out late yesterday afternoon strongly critical of Madonsela, arguing that she had overreached herself, especially as a parliamentary committee was currently dealing with the matter.
The clash in parliament on Thursday made a significant media impact and it seemed for a moment that the damage being done the ANC by the party endlessly having to defend its wayward leader could conceivably lead to some profound political realignment.
But that feeling was brief.
The EFF has 25 MPs in the National Assembly, to the ANC’s 249 and the DA’s 89. The chances are, the ANC in parliament will work out a set of rules that essentially disciplines the EFF (already MPs may be suspended for not more than 30 days and have their salary docked for the same period).
Jacob Zuma is a master at diverting crises like this into long (perhaps endless) processes that have a degree (or at least a semblance) of legitimacy and constitutionality. And there is a parliamentary process dealing with Nkandla underway and whether this process is an attempt to ‘set aside or review’ the Public Protector’s findings could be the subject of years’ of constitutional debate, such that many of the players will be long gone by the time it is resolved.
There is considerable stability in a system so tightly bound within itself through links of patronage and shared loyalties – although I suspect that when such a system eventually unwinds, it unwinds quickly and perhaps catastrophically.
Jacob Zuma is off for a week in Russia – to work and to rest – and the game will go on. “The visit will further strengthen the excellent bilateral relations with a view to consolidating and opening new avenues towards job creation, skills development, exchange and transfer of technology and trade and investment,” said the Department of International Relations yesterday.
There may be some future moment when the ANC could face electoral losses because of public perceptions about corruption of its leaders, but that day is still far enough ahead to not impact (in any meaningful way) upon behaviour in the present.
(So … that isn’t a direct contradiction on what Nic thought on September 1, but it is more than a little close. I strongly suspect it might be a biorhythm, or hormonal thing – Ed)
Julius Malema … how did he ‘Pay Back the Money’?
Julius Malema appears in court today to face questions about where he got the money to pay his R18 million tax bill. According to Rapport newspaper (24/08/2014) the South African Revenue Service (Sars), would ask for a two-month extension of Malema’s provisional sequestration to determine where he got the money to repay his tax debt each month. The newspaper reports that “impeccable sources” allege that “cigarette smuggler Andriano Mazzotti was helping to pay his tax debt” – as re-reported at the Independent Online 25/08/2014 – see here. (I don’t know the Afrikaans language Rapport newspaper well – it is part of Naspers’s Media24 stable – treat the claim with maximum caution). (Not because of Naspers of Media24 – for so are they all, all honourable men … the caution is purely because the claim is faintly outrageous, which doesn’t mean it’s not true – Ed)
While Julius Malema’s insistence that Jacob Zuma account to parliament is welcome, we should be careful to not lose our sense of discernment. Julius Malema himself has faced a long list of accusations similar to those he is making against the ANC and Jacob Zuma.
Land and wage reform – unintended consequences
Two interesting articles in the Sunday papers hint at some of the negative unintended consequences of attempts to protect the interests of the marginalised and vulnerable workers on South African farms.
Firstly, the Sunday Times (24/08/2014) has a colour piece titled “Good intentions pave the road to rural hell” in which the 1997 Extension of Security of Tenure Act is assessed as having “led to as many as a million farmworkers being evicted countrywide”.
Secondly, the Sunday Independent (24/08/2014) records an interesting discussion about the impact of ‘minimum wage’ determinations on employment. The article shares different views on the matter, but concludes that in SA agriculture “the impact was devastating: Employment fell from 819 048 jobs in 2002, just before the law came into effect, to 623 750 jobs in 2003 and continued to decline to 555 549 jobs in 2007 – a net loss of almost a third in five years.”
The ANC has signalled an urgent desire to ‘get serious’ about land reform. As we have mentioned previously ‘the land question’ seems to suggest to the ANC an answer to a host of social needs: employment, housing, food security, and black economic empowerment, to name only the most obvious. Racially unequal land ownership patterns (it is generally quoted that SA had 87% of land in white hands at the 1994 transition and that less than 8% has been redistributed since – see here) are also a driver of political dissatisfaction, perhaps helping feed the growth of the EFF and other ‘radical’ forces emerging in the society.
For now government is preparing a host of new legislation and regulation all the while signalling to commercial agriculture that it wants to be met half-way. There will probably be unintended consequences of government’s land reform and rural development programme (including negative impacts) but the lessons from the banking sector (for example with regard to the formulation of the National Credit Act) is that it is always a better idea for the private sector to go out and engage with government and attempt to shape legislation than it is to wait and deal with the future when it is a fait accompli.
Mining, oil and gas sectors: legislative and regulatory drift and a scary audit
Mineral Resources Minister Ngoako Ramatlhodi didn’t calm nerves last week during his address to the third annual Mining Lekgotla. The minister is overseeing two significant regulatory processes causing anxiety in these sectors, namely a major audit of mining companies’ compliance with the 10 year targets of the Mining Charter and the signing into law of a bill amending the Mineral and Petroleum Development Act of 2002 (which the private sector thought it had essentially cautiously agreed to in exchange for it – the private sector – being consulted in detail about the regulations that would arise from the legislation).
With regard to the audit, Minister Ramathlodi said: “(w)hile the review process on the implementation of the Mining Charter is still under way, initial results suggest that whatever compliance we may have achieved, much more work still needs to be done” – Business Day -14/08/2014
With regard to the legislation the Minister said he had not been informed by the Presidency whether or when the bill would be signed into law. “There are legal teams that look at any legislation coming before the president and they advise him. When they do so we’ll act on that advice” – Business Day ibid. Download Minister Ramatlhodi’s full address at the DMR website here.
Firstly, the audit obliges the mining companies to meet various ‘transformation’ obligations and targets by 2014 e.g., 26% of the company must be owned, through “full shareholder rights”, by HDSA (Historically Disadvantaged South Africans) by the end of this year – as a precondition for the retention of the mining right. Go to www.dmr.gov.za to see the “Mining Charter” and the “Scorecard for the Broad-Based Socio-economic Empowerment Charter for the South African Mining Industry” to get a full view.
2014 is the year in which several definite obligations must be met by the mining companies and there is a degree of nervousness by investors and management as to how strict the audit will be, how much leeway the ministry will give and how severe the consequences of failure will be.
Purely the administrative aspects of the reporting process are enough to be a serious burden for smaller mining companies, according to Nic Dinham, Head of Resources at BNP Paribas Cadiz Securities
The apparent prevarication in signing the Mineral and Petroleum Resources Development Act Amendment Bill, after months of careful negotiations between the department and the mining companies, has caused the industry to worry that deals struck and compromises made might be up for renegotiation. There was a general expectation that the constitutionality of the amendments would need to be tested and examined (especially government’s 20% proposed free-carry interest in all new exploration and production rights in the oil and gas sector). It appears to me that the delays are adding to a more generalised sense of uncertainty about the growing regulatory burden and costs associated with continuing to mine in South Africa.
Amcu set to go on the offensive at Num’s last toeholds in the Platinum sector – non-cyclical risk factors in the SA labour environment escalate
Nic Dinham (BNP Paribas Cadiz Securities Head of Resources referred to in a previous section) said yesterday that in the platinum operations where Amcu is not (yet) the major union (at several mines, but including those operations at Aquarius Platinum and Northam Platinum) there were significant indications that Amcu was close to recognition thresholds (specific to each company) and that it was reasonable to expect increased labour unrest at the particular operations and companies where Num was clinging to a majority.
“During the recent result presentations, several companies reported that operations previously dominated by Num are showing signs of losing ground to Amcu, especially in the Rustenburg areas”, said Dinham.
“This is the case at Aquarius Platinum as well as at Northam where Amcu membership has risen to 30% and 15% respectively, just short of both companies’ recognition levels. Clearly, this could be the harbinger of more labour storms to come. At the same time, only small numbers of workers in the existing Amcu fortresses switched to NUM after the end of the strike. So, despite all the rational arguments about the financial impact of the strike on labour, Amcu appear to have won the propaganda war with the mining industry” – Nic Dinham, 20/08/2014.
There are a number of important implications, not least of which is the confirmation (and deepening) of the implicit defection of mineworkers in the Platinum sector from a key ANC aligned union (Num) and the continued disintegration of previously powerful trade union federation and ANC ally, Cosatu.
In some ways this frees the ANC (and government) to decide on economic policy without having to kowtow to Cosatu, but it will also raise anxieties in the ruling party about the narrowing of its base – and a diminishment of its hegemony and moral authority.
None of that is necessarily a bad thing. It is my opinion that our legislative and regulatory environment has tended to suffer from a lack of clarity and focus as a result of the ANC attempting to keep a number of different legacy constituencies (and sectional interests) happy and on-board.
However, it is also worth noting that my general expectation of a deteriorating labour environment is strengthened by concerns about labour unrest driven by further contestation between Amcu and Num. This, together with a coming trial of strength in all (or most) Cosatu unions that will accompany the impending Numsa split out of Cosatu will be a strong, non-cyclical, driver of labour unrest for the next 18 months. Jeff Schultz (BNP Paribas Cadiz Economist) and I recently suggested that these strands driving labour unrest, along with what we expect will be a major confrontation that will accompany the lead-up to the expiry of the current 3-year public sector wage agreement in March 2015, will keep labour risks at elevated levels in the South African investment environment for at least another 18 months.
Cyril Ramaphosa – a hard week down at the Commission
Deputy President Cyril Ramaphosa last week faced an avalanche of criticism and heckling at the Farlam Commission (which is investigating the killing of 44 people at Marikana on and before August 16 2012 in the context of the protracted strike at Lonmin mines in the Rustenburg area at that time).
Cyril Ramaphosa was called to the commission to explain his actions in the lead-up to the Marikana killings. Ramaphosa was on the Lonmin board at the time and in an email to Lonmin managers he said: “(t)he terrible events that have unfolded cannot be described as a labour dispute. They are plainly dastardly criminal and must be characterised as such. In line with this characterisation there needs to be concomitant action to address this situation.” In another email he urged then police minister Nathi Mthethwa to “take appropriate steps”. In both these cases I have added the emphasis.
At the Farlam Commission hecklers shouted “Blood on your hands” (City Press 11/08/2014) during Ramaphosa’s cross-examination. Hecklers wore T-shirts with several different slogans criticising Ramaphosa’s wealth, for example one showed a buffalo in reference to the fact that Ramaphosa bid – unsuccessfully as it turned out – R19.5 million for a buffalo cow and her calf at a wildlife auction a month after the Marikana killings in 2012.
There is a high level of speculation as to whether Cyril Ramaphosa will succeed Jacob Zuma as president (when the current presidential term expires in 2019 or at some earlier date due to Jacob Zuma’s purported ill health.) There appears to me to be a widespread assumption in the financial markets that Cyril Ramaphosa, as an experienced businessman and an experienced negotiator and conciliator who was central to easing the transition at Codesa 1 and 2 in the early 90s, would be more sensitive to the needs of the private sector, more compliant with global capital markets and, generally, run a cleaner and more efficient ship.
Implicit in that list of attributes is the person who Ramaphosa would be cleaner than, more conciliatory than, more understanding of private sector needs than, is Jacob Zuma. It is impossible to know either that Ramaphosa really has such attributes relative to Zuma or that it is really or primarily those attributes that make Ramaphosa a more attractive choice than Zuma for the financial markets … or, in fact, whether the ‘financial markets’ really makes these kinds of distinctions.
It is my impression that Jacob Zuma’s rise to power and performance as president has been accompanied (and in several cases directly caused) increased political risks associated with investing in the country. Almost any successor would probably be welcomed by the markets. However we would be cautious about seeing Ramaphosa as the knight in shining armour. He is badly damaged by his link to the Marikana killings (unfair as that may be) and he has not yet established a significant constituency within the ANC. The fact that he is a rich man can play both ways; it gives him resources to build his case but it makes him vulnerable to accusations of conspicuous consumption and being out of touch with common people. It is also inescapably true that his wealth has been accumulated more as a result of ‘empowerment deals’, the accumulation of large slices of equity, rather than the involvement in any of the underlying activities (mining, banking, health care etc).
More than anything we must keep front of mind that much ANC policy and politics is determined in the forums of the party – long in advance of such policies and politics becoming law and regulation. The particular character of leaders makes a difference, but in the South African case, not as big a difference as it might elsewhere.
The noise around land reform is (partly) bluster designed to get commercial agriculture to act voluntarily
Urging Commercial farmers to take voluntary steps ‘advancing the transformation project in the agriculture sector’, ANC Secretary General Gwede Mantashe said “change that is imposed is more painful” – Business Day 14/08/2014. Mantashe told attendees at a conference on land reform and food production that land reform was necessary if South Africa was to deal with the “ugly past of racial land dispossession of black people” and that farmers must never allow themselves “to be victims of change” – Business Day ibid.
We previously described in some detail some of the legislative initiatives around land reform and one of the points we made about assessing the risks associated with the land reform initiative is reinforced by Gwede Mantashe’s choice of words.
The ANC feels keenly its failure to successfully complete a significant process of land reform and redress – and is, in part, being punished for that failure by the (still slight) electoral traction achieved by the ostensibly more radical Economic Freedom Fighters on their debut in the general election on May 7 2014.
However, the ANC feels, at least as keenly, the threats to investment that would result if property rights were ever threatened by an unruly and uncertain ‘land reform’ process à la Zimbabwe.
Commercial farming does not have the handy (from the ANC’s point of view) equivalent to the mining sector’s mineral rights to attach to a number of ‘transformation’ objectives. The ANC would be extremely cautious about bluntly attaching a ‘licence to farm’ (or in fact a ‘licence to operate any business’) directly to ‘transformation objectives’. There is a line beyond which such rights and obligations could constitute a nationalisation in fact and might be both unconstitutional and, certainly, a serious barrier to future investment.
Thus the ANC, in the form of its secretary general, is snapping at the heels of domestic commercial agriculture, attempting to herd it towards the ‘transformation’ objective, putting the argument that this is the national good, but hinting that a bite on the ankle could be the laggard’s reward. It is an open question as to whether farmers would respond to such incentives with greater compliance or with resistance, both covert and overt. However, for now, we think the ANC’s (and therefore government’s) land reform bark is worse than its bite.
Bits and pieces
- Jacob Zuma put out a report last week which he and his spokespeople claim is a satisfactory response to the Public Protector Thuli Madonsela’s, “Secure in Comfort” report into the upgrades to the President’s private Nkandla residence in which she finds several faults with the President’s actions and inactions. The delay, over many months, of a response from Jacob Zuma to Thuli Madonsela was ostensibly as a result of him (Zuma) awaiting a report from the Special Investigating Unit. However, on Friday a spokesperson for the Public Protector said Zuma’s report was not a response, adequate or otherwise, to Secure in Comfort. ““That means a document that comments on the public protector’s report or indicates action taken or to be taken to implement remedial action in compliance with section 3(5) of the Executive Members Ethics Act must still be submitted to Parliament by the president” – my emphasis added.
- Jacob Zuma’s team is preparing to hang expense overruns and incorrect categorisation of some items as ‘security related’ on Jacob Zuma’s architect, Minenhle Makhanya. The Mail and Guardian reports that the “Special Investigating Unit has lodged a R155-million claim against Makhanya” – 15/08/2014.
- And in other news Bruce Koloane, the former chief of state protocol who was shouldered with the blame for the landing of a large private wedding party at a secure military base by the close Zuma allies and business partners the Gupta brothers and family last year, was nominated by Jacob Zuma as Ambassador to The Hague. In August last year, Koloane pleaded guilty to all charges relating to his involvement in authorising the controversial landing of the jet.
- It’s not (just) idle mischief putting these bullets together. If the President’s own actions around his accumulation of personal assets and special favours to his friends can impact on the formal judicial, disciplinary and constitutional oversight functions, if his party can go to extreme lengths to protect him from the consequences of his actions in accumulating personal wealth and influence, it is unlikely that private companies will be trustful of, or willingly and enthusiastically compliant with, the ‘transformation’ agenda emerging from the state, government and party he leads. Ultimately the private sector needs to believe that the value of its various social obligations ends up benefiting those who need the assistance the most. This is the price the private sector seems prepared to pay for stability and growth. Any sense that the public purse is hijacked or that equity transfers and affirmative action obligations have become a kind of asset that can be hoarded and dispensed as patronage by the politically powerful will cause the ‘transformation’ objective – and much else – to fail.
‘Cabinet leaning to break-up Eskom’ – Business Day 05/08/2014 … I would be extremely surprised
Business Day reported that the idea of breaking up Eskom and privatising some of its power stations “is starting to gain traction in government circles, as a team of cabinet ministers and government officials seeks ways to alleviate the company’s financial crisis and restructure its business” – Business Day 05/08/2014.
The governing ANC’s alliance partner, the Congress of South African Trade Unions (Cosatu) vowed the next day to fight any such privatisation “to the bitter end” arguing that electricity price inflation, driven by the ‘commercialisation’ of the utility in the first place, was “one of the key constraints” on economic growth and an important reason South Africa “is not creating decent jobs the country so desperately needs” (catch the full August 6 Cosatu statement here.)
On the same day Lynne Brown, the Minister of Public Enterprises, said “I want to indicate that there is a portfolio of options for the interministerial task team to consider. To my knowledge Cabinet has not discussed the matter of privatisation and there is no need to unnecessarily raise temperatures around this matter” – City Press Online, 06/08/2014. The ‘task team’ to which she refers was described (in the same story) as “representing energy, public enterprises and the treasury” and further, that the findings of the team had not yet been made public.
This is, supposedly, a defining issue for the ruling faction of the ANC and its allies in Cosatu and the SACP. Much of the motivation for backing Jacob Zuma (and ousting Thabo Mbeki) was – apparently – that Mbeki’s policies were a species of Thatcherism (especially the plan to privatise the major state utilities). The alliance backing Jacob Zuma defined its historical mission as the combating of this “1996 class project”, a catch-all phrase for neoliberalism, fiscal rectitude and the ‘Washington Consensus’.
It might well be true that the breaking up and privatisation of Eskom is an urgent necessity – or even a precondition for recovery from our dire economic state – but it is a political nonstarter, requiring the complete breakup of the alliance of groups that hold power, and is therefore vanishingly unlikely to happen, even symbolically.
National Prosecuting Authority in free fall and intelligence services are extensively deployed on behalf of senior politicians and criminals – and the storm is beginning to batter against the South African Revenue Service – this is as serious and urgent as it is confusing and complicated
There is an on-going meltdown at the heart of the criminal justice system which is increasing risks in doing business with, or in, the areas administered by the South African state.
Here are only a few of the most recent visible features of the (complex and confusing) disintegration:
- Jacob Zuma has asked the National Director of Public Prosecutions Mxolisi Nxasana to give reasons why he should not be suspended. The apparent motivation is that Nxasana has problems associated with his security clearance (owing to his brushes with the law, including a murder charge, when he was a younger man). However, almost all the coverage and analysis suggests that the ‘real reason’ is Nxasana has pursued investigations of key Zuma allies in the NPA and Crime Intelligence Division of the South African Police Service and his (Nxasana’s) actions threaten to lead, eventually, to fraud and corruption charges being reinstated against Jacob Zuma.
- Award winning journalist Mzilikazi wa Africa published his memoir last week which includes a detailed account of how Jacob Zuma and his allies vigorously undermined the credibility of the first National Director of Public Persecutions Bulelani Ngcuka by spreading the false information that he (Ngcuka) was an apartheid spy.(See an interesting examination of this thread from Business Day 07/08/2014 here.) In here is the source code of much of the chaos in the prosecuting authority and intelligence service: Bulelani Ngcuka led the original investigation into the allegations of fraud, corruption, money laundering and racketeering against the then Deputy President Zuma, concluding that there was “prima facie” evidence that Zuma was guilty, but not enough to win in court – a statement to which Zuma, not unreasonably, strongly objected.
- “Sex, SARS and rogue spies” announced the front page headline in City Press yesterday (10/08/2014). The accompanying stories allege that senior SARS official, Johan van Loggenberg, has been the subject of a ‘honey trap’ operation by the State Security Agency “Special Operations Unit”. The story is Byzantine, but the important bit is the detailed allegation that the secret spy unit operating against van Loggenberg has also been used to discredit and smear a ‘anti-Zuma’ camp in the NPA and in Crime Intelligence. Bizarrely, the Special Operations Unit supposedly includes drug dealer Glen Agliotti. (Read some of this story here and here … if you have the time or the patience.)
This level of political and criminal infiltration into key state institutions and functions, especially of the security services, the prosecuting authority and the South African Revenue Service raises real questions about judicial, regulatory and legislative certainty in the operating and investment environment. Uncertainty about the application of law, the integrity of the criminal justice system and the functioning of the revenue service must all be considered by anyone wanting to invest in South Africa or in assets regulated by South African institutions of state and law. Frankly, given the deep connections between the instability in these key sectors of the South Africa state and the rise to power of Jacob Zuma I am pessimistic that we have the capacity to fix this problem while the current administration is still in power.
The National Prosecuting Authority has appointed highly respected retired Constitutional Court judge Zak Yacoob to head an inquiry, or ‘fact finding mission’ into its dysfunctional state. Unfortunately Yacoob almost immediately (on Thursday last week while speaking at a workshop at the University of the Witwatersrand) happened to mention that he would have “set aside” the judgement that found Jacob Zuma not guilty of rape in 2006, because he would have put less emphasis on the alleged victim’s sexual history – see here. An outraged African National Congress said it learned of Yacoob’s comments “with shock and dismay” saying they “opened old wounds” and were “an attack on principles of our jurisprudence and the judiciary.” Yacoob attempted to clarify his comments here but either way he is no longer likely to be the instrument that cleans up the National Prosecuting Authority.
Cyril Ramaphosa at the Marikana Commission today as succession debate begins
Deputy President Cyril Ramaphosa will have to explain today at the Marikana Commission what he meant when emailed other senior Lonmin managers just before the August 12 2012 killing of 34 striking mineworkers at Marikana and said: “(t)he terrible events that have unfolded cannot be described as a labour dispute. They are plainly dastardly criminal and must be characterised as such. In line with this characterisation there needs to be concomitant action to address this situation.” In another email he urged then police minister Nathi Mthethwa to “take appropriate steps”.
It is unlikely that the Commission will find anything untoward in Rampahosa’s messages. He was, after all, doing nothing other than responding to the growing violence of the strikers and Lonmin’s increasing anxiety about the strike. We are of the view that there is some political harm done Ramaphosa by his identification with mine management and government – and the police killing of the 34 mineworkers. There is a considerable degree of unease within the broad structures of the ANC and the electorate about the Marikana killings. The ANC is obliged to stand with its Deputy President on this matter, but it can’t be comfortable. This will play against Ramaphosa (although perhaps not decisively) in the coming succession contest in the ANC.
Chairwoman of the African Union, fresh from pride of place at the US-Africa summit in Washington announced yesterday that she was undecided as to whether to stand for a second term in the AU (her current term expires in
2014 2016) This is inevitably raising questions about whether she will compete with Ramaphosa to succeed Jacob Zuma as president of the country.
She is in the running – and is clean and capable. She is perhaps more of an insider in the ANC’s power elite than Cyril Ramaphosa and her winning this race might mean (unwelcome) continuities with the current administration. It’s too early to call it one way or another, but the ANC Women’s League has indicated that it could back Dlamini-Zuma (or Baleka Mbete) while the Gauteng ANC has indicated it could back Ramaphosa. Officially succession would only take place after elections in 2019, but there are constant rumours that Jacob Zuma might want to retire early (or be forced to do so due to failing health). An early retirement of Jacob Zuma would probably be a significant positive for perceptions about South African political risk, but the specific circumstances of such a move would determine whether it would, in fact, be positive, negative or natural.
Herewith some comments on the latest political news. Apologies that I have posted so seldom here of late. I see a New Year’s resolution coming on. I see a New Year’s resolution exiting stage left.
Numsa, Cosatu and the SACP … and Jacob Zuma
During this past week the National Union of Metalworkers of South Africa (Numsa) shifted closer to exiting the ruling alliance (and possibly Cosatu). The matter will be decided at a special Numsa congress from 13-16 December.
Meanwhile several distinct forces entered the fray.
Gwede Mantashe, the powerful ANC secretary general, argued that if pursuing Zwelinzima Vavi split Cosatu, then that strategy should be reconsidered. His general approach was supported by the President of the National Union of Mineworkers Senzeni Zokwana calling for sober heads and for the two main factions in Cosatu to ‘swallow their pride and solve their ideological and political differences’ (Business Day 3/12/13)
In complete contrast to this attempt to mend fences, Blade Nzimande, wearing his South African Communist Party secretary general’s cap on Sunday attacked the Numsa leadership, using strong and unbending language saying a “clique” within the union is manipulating rank and file members for personal gain and should account for their personal wealth … that Numsa general secretary Irvin Jim and deputy general secretary Karl Cloete should submit themselves to independent lifestyle audits and that Mr Jim should explain his role in chairing the Eastern Cape tender board and should come clean on the work of the union’s investment arm.” (News24 02/12/13)
The Numsa leadership meanwhile continued with its formulation of a detailed criticism of the ANC performance in government – only parts of which have been announced – but will form part of the discussion about whether to stay in Cosatu and in the alliance at the special congress in mid-December.
The Eastern Cape provincial executive committee of Cosatu (PEC) has strongly criticised the Cosatu president Sdumo Dlamini for failing to arrange the special Cosatu conference designed to address all the issues bedevilling the federation, including the suspension of Vavi and the relationship with the ANC. The Eastern Cape PEC was also strongly critical of the Communist Party’s attack on the Numsa leadership.
This is not only the untidy squabble it appears.
Jacob Zuma came to power backed by the SACP, by Cosatu, by the ANCYL, by disparate regional power-blocks and business groups who saw an opportunity to get the benefits of being at the high table, and by democrats within the ANC who believed Mbeki had become authoritarian and/or unresponsive to the changing requirements of the situation (with his failure to grapple with the HIV/AIDs question his most obvious failing.)
This alliance of interests and groups has long since fragmented (with the trajectories of Malema and Vavi the most visible signs of this), but the SACP remains up close and personal with Zuma, his family, his business friends and the security agencies he keeps firmly under his wing. That it is the SACP who has said: ‘let’s chase these Numsa fellows out’ is not a surprise, as the SACP is one of the main beneficiaries of the rise of Jacob Zuma … an attack on Zuma is an attack on the SACP.
(My implicit assumption, which might be wrong, is that the SACP probably has some socialist explanation or justification for what it is doing in bed with Zuma. However I must confess I cannot imagine a version of politics in which the struggle for socialism is best served by allying oneself with a corrupt, regional elite – with ethnic overtones – that makes free use of the state security apparatuses to secure its dominance. If you lie down with dogs you should expect to get fleas.)
Thus, the SACP appears to be pushing for radical intrusive surgery on Cosatu and Numsa. They hope to cut out the cancer and, supposedly, slowly repair the healthy body left-behind.
The most obvious dangers are inherent in the metaphor: namely that the cure could kill the patient. But the bigger danger is that what the SACP, and the faction within the ANC that backs the radical surgery option have, perhaps wilfully, mistaken ‘democratic criticism’ (albeit of a damning sort) for cancer. This was precisely the warning that Mantashe and Zokwana were giving when they were brutally cut short by Blade Nzimande wielding a meat-cleaver.
So Nzimande and the communists have an agenda tied much more closely to the narrow version of the Nkandla Crew (that nexus of commercial interests, regional Kwazulu-Natal politics, state-security agencies and crime intelligence that are all pushed up tight against their principal, Jacob Zuma). More closely, that is, than, for example, Gwede Mantashe
Where this is leading is uncertain. It seems likely that Numsa will split from (or be driven out of) the alliance and perhaps from Cosatu. Numsa might more explicitly move towards establishing a ‘labour’ or ‘workers’ party, perhaps in alliance with existing left-wing parties and trade unions. Numsa itself may split in this process, so that a vestige of its former self is left behind in Cosatu.
Numsa freed from the constraints of belonging to the alliance and Cosatu has strong growth potential, particularly in the mining sector and can be expected to flourish there. It is not inconceivable that a defected Numsa will continue to lobby Cosatu unions and will grow as structures and regions of Cosatu unions also defect.
It is always possible for the ANC aligned leadership to stop this process, but that would entail having to give free rein to Jim and Numsa’s brutal criticism of ANC corruption and economic policy. The Nkandla Crew have obviously decided this is no longer an option – especially in the lead-up to an election where their principal is already under attack for public resources being lavished on his Nkandla home. Time will tell if they are strong enough to hold the smaller fort they have built against the growing number of enemies they are createing.
Meanwhile we must remember that Numsa is the most radical and best organised union in Cosatu – and many businesses would find them significantly less playable than the unions to which they are accustomed.
The next step will be the Numsa special conference. I expect Numsa to resolve to insist that Cosatu holds a special congress before elections next year. It is not impossible that that Cosatu special conference does take place and that the pro-Vavi faction secures his return – although there are almost endless practical difficulties in making this happen. However, any return of Vavi and and outbreak of peace in Cosatu will be temporary – unless there are radical changes in the ANC as well.
Draft of the Public Protectors report on the Nkandla build was leaked by the Mail & Guardian
The leaked report states that Jacob Zuma derived “substantial” personal benefit from the Nkandla upgrade that went way beyond ‘security features’ and that he would be liable to pay back this money to the public purse. The features Madonsela identified as unrelated to security spending was a swimming pool, visitors centre, amphitheatre, cattle kraal, marquee area, extensive paving and new houses for relocated relatives. Public Works allowed Zuma’s architect ‘uncontrolled creep’ to broaden the project until another 4 firms that Zuma had privately engaged were effectively carrying out the Public Works’ security upgrade but without having tendered for the job – and reporting back into Zuma and his architect (Mail & Guardian 30/11/13)
Mandonsela has come out strongly against the Mail & Guardian for having published the draft report. She says the confidential circulation of draft reports from her office is designed to allow interested parties to argue points and correct substantial errors. The Mail & Guardian argues that the public interest outweighed the internal processes of the Public Protector – given that the security cluster of government had regularly threatened to stop the report being published.
The more important question is how Jacob Zuma comes out of this. It is now impossible to avoid the fact that significant state resources were used on the President’s private residence and more and more details will surface as we head towards the elections in 2014. Leaks are appearing from the major party’s polling processes that suggest that the ANC is vulnerable around the Nkandla upgrade. If the ANC were to suffer electorally from the appetites of its president, and if it knew that its suffering was linked to those appetites, then we must assume that Jacob Zuma would be vulnerable. But vulnerable to impeachment or vulnerable to having his wings-clipped? It’s a big difference, but both should be items on our long-range screens.
Zwelinzima Vavi’s suspension from Cosatu and the ANC/SACP/Num decision not to attend the Marikana commemoration, both on Friday last week, are, to my mind, indicative of a significant retreat of ANC hegemony.
‘Hegemony’, as I imbibed the concept from probably slightly fevered readings of Antonio Gramsci’s sublime Prison Notebooks while I was a student activist (and from endless discussions in those semi-mythological ‘smoke filled rooms’) has proved, for me personally, a useful and adaptable tool for conceiving of the ebb and flow of political power.
The concept comes from the Greek word ἡγεμονία (look at me … I can cut-and-paste from Wikipedia) which means both ‘rule’ and ‘leadership’ but especially implied and indirect power or rule.
Hegemony (in my own lexicon) is used to describe the myriad ways in which the dominant group extends its direct power (let’s say, for argument’s sake, that direct power is that exercised through party discipline, or through the state, especially apparatuses of implicit or actual coercion). The extension of the reach of the dominant group beyond the immediate terrain that it obviously controls and into the middle ground or the rest of society (usually conceived of as civil society) is what I think of as hegemony. It is direct power extended as influence and leadership and as a result of occupying the high ground and by in some way representing the national as opposed to sectional interests and, ultimately, effective through persuasion rather than control – forgive all the awkward italicising.
The ANC that won to power in South Africa during the end of the 80’s and early 90’s was, to my mind, the exemplary example of the exercise of hegemony. The only power available to the ANC during this period was so called ‘soft power‘ that derived from its occupation of the moral high-ground and came about as a result of its (the ANC’s) careful building of broad fronts and tighter, more disciplined formations, like the ANC/SACP/Cosatu alliance itself.
This is the context in which I assess both Vavi’s suspension from Cosatu and the fact that the Marikana commemoration appears to have been a ‘no-go area’ for the Ruling Alliance. Obviously both news items can be understood as important for other reasons, but this is the prism through which I have chosen to view them.
(Note: ‘retreating power or hegemony” is not the same as having ‘lost power or hegemony’. I am not saying in raising the points below that the ANC has lost its ability to ‘influence’ and ‘lead’ … rather I am saying that there are signs that it is significantly weakened in this regard. Not explored in this article is the consequences – which I believe are extremely serious and threatening – of any such potential loss of ANC hegemony. I have previously discussed this in an article entitled Beware the thing that might pick up power lying in the street and I have made similar points in Zuma’s brittle grip tightens.)
Cosatu suspends Vavi – and the Ruling Alliance shudders
Zwelinzima Vavi, suspended after a special meeting of Cosatu’s central executive committee on Wednesday last week, has indicated that he will challenge the decision in court. During his press conference on Friday announcing this, Vavi released a document containing what purports to be a series of intelligence reports claiming that he (Vavi) is part of a US ‘soft-power’ plot to undermine Cosatu and the ANC.
Vavi’s strategy, and that of his supporters, appears to be to mobilise ordinary workers, notably in the National Union of Metalworkers of South Africa (Numsa), the Food and Allied Workers Union (Fawu), the South African Municipal Workers’ Union (Samwu) as well as in those branches, regions and local areas of otherwise anti-Vavi unions where Vavi remains popular with the rank and file – including, for example, the Kokstad region of the SA Democratic Teachers’ Union (Sadtu). The ‘fight back’ strategy will culminate in a special Numsa congress to be held in December.
Vavi’s refusal to accept his suspension and his publically announcing that he will contest in court the Cosatu CEC decision suspending him is more serious than it first appears – and may well lead to his expulsion. (To get a sense of why this may be the case, here is what Gwede Mantashe, ANC secretary general, said of Vavi’s decision to challenge his suspension: “This is unprecedented. It is the worst case of organisational ill-discipline. If the ANC takes me through a disciplinary process, the worst thing I can ever do is to go out and attack the ANC. That is unheard of” – Sunday Times.)
The so-called ‘intelligence document’ that Vavi released on Friday (available as a pdf at the Mail and Guardian website here) appears to be a clumsy attempt to discredit Vavi by linking him (and various other Zuma opponents) to comical ‘imperialist plots’ to spread coups and chaos in Africa. The contents of the document are not worthy of consideration. However, if it is true, as Vavi claims, that his opponents in Cosatu and the ANC distributed the document, it is legitimate to consider the possibility that it was produced in a ‘dirty tricks’ department somewhere within the state security apparatus and/or somewhere close to the leadership of the ruling party.
The outstanding question is whether Vavi’s suspension or expulsion could lead to a defection of Numsa and other unions or parts of unions from Cosatu. The labour environment could be catastrophically impacted upon by this kind of collapse of Cosatu – especially if Numsa, already the largest, best organised and, perhaps, most militant Cosatu union, decides to contest with other Cosatu unions (especially Num) for membership.
The difficulty in making an assessment of whether Numsa could split from Cosatu is rooted in the fact that there is no template for the consequences of the factional driven axing of such a senior, respected and popular alliance leader such as is Vavi.
Up until now it was always a good bet that while ‘left’ and other ‘militant’ factions of the Alliance might fight against various positions and policies with which they disagree, the benefits of being within the Alliance always outweighed the loss of access to the policy-making/leadership-election processes that would go along with being outside the Alliance. However, Vavi represents, more than any other single individual, the ‘left’ critique of ANC/government corruption (particularly allegations around Jacob Zuma’s Nkandla residence) and of government economic policy (particularly the National Development Plan) and it is distinctly possible that ‘left’ factions of Cosatu could conclude that the space for them to operate within the alliance would be closed down if Vavi is forced out.
Marikana – ANC and Num refuse to participate in commemorations
The African National Congress, the SACP and the National Union of Mineworkers boycotted the first anniversary commemoration of the Marikana killings, saying the event was “hijacked” (Num), that Amcu was “a vigilante grouping” (SACP, quoted in Business Day 16.08.13) and that the “commemoration is organised by an illegitimate team called ‘Marikana support group’” (ANC, quoted in Business Day 16.08.13).
Thousands gathered on Friday at the hillside in Marikana where 34 mineworkers were shot a year earlier. During the commemoration, Lonmin CEO Ben Magara “apologised for last year’s deaths, the first and only company or government official to do so” – Business Day 19.08.13. Ben Magara said at the commemoration: “I heard about your request to employ a relative of each of the deceased. I heard about the request for R12,500. I am here today to say: let us sit down and talk”. Joseph Mathunjwa, president of Amcu said this apology “was overwhelming” … he is the only person who came and gave an apology and he was not (at the time of the massacre) even part of the management … not even government has done that …his gestures show that he is a man who is willing to engage” – Business Day 19.08.13.
During the commemoration Dali Mpofu, legal representative of injured and arrested miners at the Farlam Commission, acted as the master of ceremonies, Julius Malema was among the speakers and Agang SA leader, Dr Mamphela Ramphele, “deposed” PAC leader Letlapa Mphahlele, NFP leader Zanele kaMagwaza-Msibi, IFP president Mangosuthu Buthelezi, Cope leader Mosiuoa Lekota, African People’s Convention leader Themba Godi, EFF leaders Kenny Kunene and Floyd Shivambu and UDM leader Bantu Holomisa also attended (City Press).
The complete retreat of the ANC and its allies (the SACP and Cosatu) in Marikana represents a highly significant loss of political terrain. The commemoration gathering was widely accepted and legitimate, Lonmin was represented as was a broad cross-section of the Nkaneng community as well as church, political and worker organisations. The fact that this was a ‘no-go area’ for the ANC and its allies is, in my opinion, the most significant evidence of loss of ANC hegemony since the 1994 election. The political loss for the ANC is reproduced throughout the platinum sector and tracks the relative gain of Amcu and the losses of Num. The opposition political parties are hovering around the platinum sector hoping to pick up the votes the ANC loses … but it is not yet evident which parties, if any, will benefit from the ANC’s apparent loss of support and legitimacy amongst platinum mineworkers. However, the existence of ‘no-go areas’ in national election campaigns is a recipe for violence.
In high anxiety at my failure to publish here for several weeks (what with 12 days visiting fund managers in the UK and Europe and new commitments to the Daily Maverick – see here and here for the first two of those) I have decided to again post a modified version of my usually bespoke ‘SA Political news commentary’ … to show willing; to demonstrate that I am not entirely unembarrassed that my last post, which was also a news commentary, was on March 18.
Perhaps I am edging towards closing down this blog … but I am not quite done yet, and for those who have stuck with me this long, I thank you.
So here, written to a deadline of 06h30 yesterday, slightly modified for my hanging-by-a-thread website:
SA Political News update 23/04/2013
Cosatu and the ruling alliance: corruption claims and counterclaims
According to the Mail & Guardian (April 19-25), the battle for control of Cosatu is becoming ever more vicious. The article states that behind the noise is an apparent attempt by the ANC to close down a powerful left faction in Cosatu that has been critical of both corruption and the alleged adoption of ‘pro-business’ policies by the ANC and government. The main issues over which the battle is playing out are:
- Allegations made (according to the M&G) by “an informal caucus … of senior leaders from Nehawu, the NUM, Popcru, Sadtu, Cepawu [they mean CEPPWAWU, I think – ed], the SACP and the ANC” that Zwelinzima Vavi, the popular Cosatu Secretary General, has engaged in corrupt activity and is disloyal to the ANC-led alliance, including by failing to adequately support Jacob Zuma for re-election at Mangaung.
- A flood of accusations made through the Cosatu linked NGO Corruption Watch that many of the leaders of unions involved in attacking Vavi are themselves corrupt – Mail & Guardian in a story that works more by insinuation rather than actual content – see here for the story that was later denied by Corruption watch here).
- The proposal made by Fawu (Food and Allied Workers Union) for a special Cosatu congress to resolve this issue, opposed by the group named in the first bullet, but supported by Numsa, Samwu and several smaller unions.
- Support for and against the National Development Plan.
Business might be tempted to fold its arms and sit back and delight that the old ‘thorn in the side’ Cosatu is being riven by tension. However, it is worth recalling that some industrial relations consultants also delighted in the emergence of Amcu in the platinum sector as a counter to Num for similar reasons – and look how that played out. The serious political conflict in Cosatu could as easily result in higher levels of labour unrest, with higher levels of unpredictability, in a wide variety of industries than in a generally more compliant labour movement. Several multi-year wage agreements are coming up for review before the end of this year (including in the automobile, chemical, gold mining, coal mining, retail motor industry and tyre sectors – which historically have been trendsetters – Business Times). Add to this my uncertainty as to whether the tight three-year public sector wage agreement set last year will hold under strain caused by a combination of:
- the (welcome) reforming zeal of Public Service and Administration Minister Lindiwe Sisulu,
- government’s apparent attempt to roll back the power of the South African Democratic Teachers Union, and
- the generally difficult economic circumstances for union members,
- the successes of the wildcat strikes, particularly in the platinum sector last year, perhaps having established a new baseline for increase expectation throughout the economy
and it is not inconceivable that we could have another year of potentially devastating labour unrest.
If the government’s (and the ANC’s) intention was to have a showdown with organised labour over economic growth and stability that would be one thing. But I suspect that the evident intervention in Cosatu is based on the sectarian interests at the ruling faction of the alliance rather than in any real desire to pursue the national good. If that faction faction successfully expels Vavi they might precipitate a split in Cosatu and the long awaited formation of a new ‘left’ political formation … and just by the act of pushing, through what appears to be a dirty tricks campaign, for this outcome the ruling faction risks rapidly escalating labour unrest.
The DA and the ANC try on their best dresses (or maybe not) for Election 2014
The DA has launched a campaign attempting to burnish its anti-apartheid credentials, including publishing a pamphlet with a picture of Nelson Mandela embracing deceased party stalwart Helen Suzman under the caption: “We played our part in opposing apartheid”.
At the same time, the Mail & Guardian has published excerpts of what it calls ‘draft DA election material’ which explicitly compares the ANC to the National Party. The M&G’s quotes from the draft document include the arguments that under Zuma’s ANC there is a “rise of Zulu nationalism and racist rhetoric” and “as was the case with apartheid, the ANC is using the police to suppress criticism of its government”.
In the City Press and Sunday Independent, the ANC secretary general Gwede Mantashe has separate opinion pieces that argue that the DA’s attempt to appropriate Nelson Mandela is “an abuse of the human and humble character of this icon”. He adds that the DA “remains a brazen advocate for white domination and privilege, and for elaborate schemes for its retention in the guise of liberal policies”.
The general election next year is likely to be messy and disruptive – sustaining the apparently endless flow of unsettling news coming out of South Africa. From this far out it appears possible that the ANC will be arguing that the electoral issues are essentially identical to what they were in 1994 (white domination and the legacy of apartheid) and that the DA will be arguing that that is just an excuse for delivery failure – it would be difficult to conjure up a more divisive and unhelpful framing of the issues 20 years after the first democratic election.
The unravelling of the Mandela legacy
The weeklies have a flood of stories that pick away at the fabric of the Mandela story. A reality TV show “Being Mandela” is reviewed in the Sunday Times under the heading “Opening up the canned Mandelas – comic kugels help deflate the myth”. The show “unveils the vacuous, pampered lives of two of Nelson Mandela’s grand-daughters, Zaziwe Dlamini-Manaway and Swati Dlamini” – Sunday Times.
The Sunday Independent leads with a review of “struggle stalwart” Amina Cachalia’s new book “When Hope and History Rhyme” in which, among many other matters, she reveals aspects of her own alleged romantic relationship with Nelson Mandela post his marriage to Graça Machel.
All of this comes as a bitter fight among Mandela’s children (with, among others, Nelson Mandela nominees George Bizos and Tokyo Sexwale) for control of various trusts that Nelson Mandela set up on his children’s behalf comes to a head in the Johannesburg High Court – The Sunday Tribune.
There may be some inherent advantages to the exposing of myths and legends as … myths and legends – but there really appears to be no upside to this depressing deflation. None of these stories changes the reality of the 94 year old South African former president’s contribution to the South African democracy and state-craft in general, but the incessant exposure does add to the gathering gloom around the South African story.
Bits and pieces
- The Youth Employment Accord has finally been signed after three years of squabbling in the National Economic Development and Labour council (Nedlac). Not unexpectedly, it does not include a youth wage subsidy in the form of a tax-break for companies employing first time youth workers. Frankly, at first glance, the accord, as reported in the Sunday Independent, Sunday Times and City Press appears vague enough to leave some confusion as to how it might result in its proposed creation of 5 million jobs for youth by 2020. No real surprises there.
- The weeklies were full of scholarly – and not so scholarly – debate about the resignation of Judicial Services Council member Izak Smuts. The debate boils down to whether there is a tension between the quality of judicial appointments and the need to make the judiciary more demographically representative. This is an intrinsically South African debate that cuts across every sector of society and will likely be with us for many years to come – for better or for worse.
- ANC MP, Ben Turok, explains in the Sunday Times the terms of reference and limitation of the nine member “inquisitorial” panel appointed by parliament to investigate the “ethical conduct and conflicts of interest, potential or otherwise” of Communications Minister Dina Pule with regard to the various allegations that she has allowed her romantic partner to make significant capital out of her ministerial post. That parliament is investigating this matter can only be a good – albeit long overdue – thing.
 In order in which it appears in the quote, and supposedly constituting an anti-Vavi, pro-NDP, pro Zuma faction: the National Education Health and Allied Workers’ Union, the National Union of Mineworkers, the Police and Prison Civil Rights Union, the Chemical Energy Paper Printing Wood and Allied Workers Union, the South African Communist Party and the African National Congress
 And this group, supposedly constituting the pro-Vavi, anti-NDP faction, anti Zuma faction: National Union of Metal Workers of South Africa and the South African Municipal Workers Union (plus a host of smaller unions including the Food and Allied Workers union).
(Note for both footnotes 1 and 2 – it is undoubtedly more complicated than this, but we need to start somewhere to attempt to make sense of the chaos.)
 Wikipedia (accessed 22/04/2013) explains the use of this term in South African slang as follows: “Amongst South African Jews, the word “kugel” was used by the elder generation as a term for a young Jewish woman who forsook traditional Jewish dress values in favour of those of the ostentatiously wealthy, becoming overly materialistic and over groomed, the kugel being a plain pudding garnished as a delicacy. The women thus described made light of the term and it has since become an amusing rather than derogatory slang term in South African English, referring to a materialistic young woman.”
Early on Monday mornings I send my clients a review of the previous week’s political news which might be of relevance to financial markets.
This morning I thought the issues were of more general interest.
It is difficult not to see the main items in this review as connected:
- The ANC yesterday disbanded its Youth League’s executive and the executive of its Limpopo provincial structure – both epicentres of the unsuccessful campaign against Zuma in the lead up to Mangaung;
- An investigation into Cosatu secretary general Zwelinzima Vavi’s affairs and political loyalties deepens and widens – although, just because it is a stitch-up doesn’t mean there is no fire within the smoke;
- Zuma’s approval rating among city dwellers drops to an all-time low and disapproval ratings rises to an all-time high.
Main body text:
ANC disbands its Youth League executive soon after axing its Limpopo Provincial Executive Committee
Yesterday, it was reported that at its 4 day legotla , the ANC National Executive Committee disbanded, as expected, the Provincial Executive Committee of the party in Limpopo. More surprisingly the NEC of the ANC then went on to axe the NEC of the ANC Youth League – which most observers had thought abased itself adequately to Jacob Zuma after failing to unseat him at the Mangaung national conference. (Note I am reliant on news reports for this … the ANC NEC is due to hold a press conference at 12h00 today where it will give a fuller report.)
The Limpopo ANC and the ANC Youth League were the launching pads of the challenge against Jacob Zuma that had been led by Julius Malema. Disguising itself behind the ‘nationalisation of mines’ call and funding itself through tender abuse in Limpopo the challenge peaked in mid-to-late 2011, just before Julius Malema was suspended. While the leaders of the ANC Youth League were clearly surprised by their axing yesterday, they can probably count themselves lucky that they are not being taken down the same path as their erstwhile leader Julius Malema, which might well end in prison for corruption charges.
While the Limpopo ANC, and to a lesser degree the ANC Youth League NEC, were riddled with corruption, it would be a very generous interpretation of what happened yesterday to see it as a “clean-up” of the ruling party. The more appropriate prism would be to understand this as an attempt to get rid of centres of resistance to the leadership of Jacob Zuma and the faction he represents. In a less jaundiced view, it is also an attempt to establish a basic degree of coherence in the party before the national elections which will be held midyear 2014.
Cosatu – 3 commissions to investigate Vavi
Zwelinzima Vavi is facing 3 simultaneous commissions into aspects of the criticism that members of Cosatu’s national executive committee made against him two weeks ago – including that he has been involved in corrupt activity and that he is disloyal to the ANC. This comes against the backdrop of ANC secretary general, Gwede Mantashe, attacking Cosatu for failing to defend the ANC against “a neoliberal agenda” and he has warned that anarchy is taking root in Cosatu: “my conclusion is that Cosatu is on a dangerous downward slope” – (Mail & Guardian March 15). (This added after publication – Carol Paton, in her excellent article in Business Day about this matter a few hours ago said: “One of the most distasteful dimensions of Cosatu’s internal fight has been the partial role played by several journalists, who have published information from parties to the conflict designed to smear Vavi. For example, allegations have appeared in the press to the effect that Vavi sold Cosatu’s former headquarters for R10m less than the market price. But such a direct allegation has not been made in a Cosatu meeting.
The answer is best provided by a quote from “a senior Cosatu leader” in the same article: “All this is a smoke screen. The main cause of divisions in Cosatu is ANC and SACP politics. The two organisations are trying hard to capture Cosatu, but Vavi is the obstacle. He is the only one prepared to defend the interest of workers. Dealing with him will ensure that they capture the federation.”
Not unlike the decision by the ANC NEC to close down internal opposition in Limpopo and in the Youth League, at least part of what is happening in Cosatu is an attempt to close down criticism of Zuma (especially after Vavi called for an investigation into the R230 million state spending on Zuma’s home in Nkandla) and criticism of the ANC more generally. This is the Nkandla faction crushing the last vestiges of the attempts to unseat Zuma at Mangaung – as well as an attempt to establish coherency in the ruling alliance in the lead-up to national elections next year.
(The allegations against Vavi – aside from ‘collusion with opposition’ parties – includes that he sold Cosatu’s old head-office for R10 million less than its market value and that he awarded a tender to a company at which his stepdaughter was employed. Just because there are other agendas at play, says nothing of the veracity or otherwise of these charges. Vavi himself has welcomed the commissions, stating that he believes they will clear him of all charges – although, interestingly, he attempted, unsuccessfully, to have ANC stalwart Pallo Jordan and Minister of Economic Development, Ebrahim Patel as commission leaders.)
(This added after publication: Carol Paton writing in Business Day argued a few hours ago as follows: “One of the most distasteful dimensions of Cosatu’s internal fight has been the partial role played by several journalists, who have published information from parties to the conflict designed to smear Vavi. For example, allegations have appeared in the press to the effect that Vavi sold Cosatu’s former headquarters for R10m less than the market price. But such a direct allegation has not been made in a Cosatu meeting.” I wish I had put that in earlier.)
Zuma approval rating among city dwellers drops to all time low
The Sunday Times reports that President Jacob Zuma’s approval rating among urban dwellers is lower than ever and his disapproval ratings are at their highest – and, in general, views are firming up on this matter.
Zuma’s approval ratings amongst city dwellers over time (TNS Research)
TNS conducted home interviews with “1290 blacks, 385 whites, 240 coloureds and 115 Indians and Asians.” 54% of black people were still happy with Zuma’s performance, but only 13% of whites. The president still has 64% of the vote from “younger Zulu-speaking adults, of whom 64% – down from 71% in August last year – were happy with his work” (Sunday Times).
An important indicator comes near the end of the story: “Zuma’s biggest drop in approval was recorded in Soweto, where the figure of 42% was the lowest since he assumed office. The Port Elizabeth figure of 22% was also an all-time low.”
National general elections must be held some time between April and July in 2014. For the first time “born frees” (young people born after 1994) will be eligible to vote. This first wave of born frees will consist of approximately 6 million people, “using the 76% turnout of the 2009 elections, these new voters could make up more than 20% of the vote by 2014 … for context, the Democratic Alliance won 17% of the vote in 2009. From 2014 onward, the born-frees will come in waves of just over 5-million each national election until they make up nearly half of the voting population by 2029” – (Osiame Molefe in the online news source Daily Maverick).
There is growing excitement that, perhaps, this category of voter, and urban African voters more generally, might be open to political choices unthinkable only a few years ago. Much of the growing expectation in the Democratic Alliance and the energy behind Agang comes from this source. Could younger and urban voters (especially Africans) vote for a party other than the ANC in 2014?
Jacob Zuma has established a rigid hold on the ANC, but the TNS and other market research could indicate that it is precisely this victory that makes the ANC a less appetising choice for younger and urban voters. If Jacob Zuma leads the ANC in an election in which the ruling party gets much less than 60 % of the vote, his hard but brittle hold on the party could shatter.
ANC strategists are seriously worried about both the Eastern Cape (especially, but by no means exclusively, the Nelson Mandela Bay metropolitan area) and the Northern Cape. The idea of whole of the Cape (Western Cape is already in Democratic Alliance hands) in opposition hands and a party the equivalent to the Movement for Democratic Change in Zimbabwe giving the ANC a run for its money in urban areas throughout the country is a nightmare scenario.
Analysts have consistently been surprised at how well the ANC has performed in national elections (62.65% in April 1994, 66.35% in June 1999, 69.69% in April 2004 and 65.90% in April 2009) so treat any wild predictions with a degree of scepticism. However, the TNS survey of Jacob Zuma’s ratings is an indicator that shifts are in progress .
Bits and pieces
- Business Times quotes a succinct put-down by Finance Minister Pravin Gordhan of the ratings agencies: “[You must] understand that we in South Africa did not create this crisis …when … the financial sector began to create … derivatives, based on sub-prime mortgages … [they] had an AAA rating given to them by the same agencies.” Last week S&P affirmed South Africa’s foreign currency sovereign credit rating at BBB and kept the outlook negative, arguing that external imbalances and underlying social problems remain.
- All the major weeklies expressed deep levels of concern about what they see as out-of-control police violence in the country – most obviously evinced in the killing of Mozambican taxi driver Emidio Macia in Daveyton, but also brought into public focus by police commissioner Riah Phiyega’s spoon-fed testimony to the Markikana commission on Thursday last week. Police minister Nathi Mthethwa is one of Zuma’s closest allies and his department is, truly, in a parlous and dangerous state.
 A word in South African English borrowed from Sesotho, usually meaning a consultation or community meeting with government and the community or within a political party
 Categories and language routinely used in South Africa where the racial categorisation of the past is correctly understood to have a significant influence in the present and is routinely used in the media and academic analysis.
Various commentators, politicians and analysts have attempted to characterise Mangaung, to define the moment’s essential nature. Below are two takes I found interesting with some words from me on why I found them thus. After that I include a more general summary of what happened with the voting results for the Top Six and the National Executive Committee.
M&G: will the scandal prone authoritarian traditionalist and the constitutionalist businessman lick the platter clean together?
Nic Dawes – editor of the doughty Mail & Guardian suggested (on December 21 2012) that Zuma has moved the ANC “dangerously away” from the urban and middle classes and is starting to overtly exhibit rural, patriarchal and authoritarian values inimical to the middle classes. He suggests that Cyril Ramaphosa’s election at Mangaung is (ultimately) an attempt to woo urban and middle class voters back to the ANC – with Zuma having secured traditional and rural support. But, asks Dawes, “can the constitutionalist businessperson avoid contamination by association with a scandal prone, authoritarian traditionalist?”
Good question … except that I am starting to realise that Zuma would never have appointed Ramaphosa if he posed a potential threat in any way at any stage no matter how far they (the Zuma camp) are looking into the future. Ramaphosa is in the house … the Nkandla house … it’s too late for decontamination.
Dawes also makes the useful formulation that Motlanthe’s challenge was a principled attempt to “confront the ANC with the enormity of its Jacob Zuma problem”. I think Dawes is right – or at least that the Motlanthe strategists he spoke to had this conception of what they were up to. However the whole Motlanthe endeavour feels much more like the foolish (but strangely attractive) arrogance of Don Quixote tilting at windmills, or, more tragically, this stupid and noble rush onto heavily defended enemy positions:
Half a league, half a league,
Half a league onward,
All in the valley of Death
Rode the six hundred.
Read the brilliant, awful, manipulative (in my admittedly limited estimation) Tennyson poem and its glorification of cruel and stupid military and administrative incompetence here – ok, glorification of those acting as a result of such incompetence . (You will see from voting patterns at the end of this post that it was closer to 1000 than 600, but aside from that I thought the Tennyson metaphor held up rather well?)
The nationalists, anti-nonracial, populist versus the … who?
If I was on one of those TV or radio programmes that specialise in asking stupid questions right at the end, and I was asked: which South African political analyst do you rate highest? Then “Steven Friedman” is the answer that would most likely trip off my tongue.
With that disclaimer, I am forced to take issue with an aspect of his characterisation of what happened at Mangaung (published in the Business Day – 27/12/12 – here for that link).
Friedman characterises the Anyone But Zuma or Forces For Change (that is the defeated faction at Mangaung) as “the nationalist group, which wants a bigger black share of business … and whose members use radical-sounding language to pursue that goal.” No quibble from me there.
But then Friedman goes on to characterise the group that opposed ‘the nationalists’, that is the group that was victorious at Mangaung, as “a loose alliance stretching from the left to centrist business people who believe the nationalists threaten the ANC’s commitment to nonracialism and are corrupting the movement because they are too close to the wealthy.”
The implicit injunction, one I believe we should resist, is: choose a better devil.
Break it down (and I paraphrase what I imagine the argument would have to entail – and I am taking this much further than is implicit in Friedman’s article, but his argument leads inevitably to this point):
We support both Jacob Zuma (the patriarchal and authoritarian traditionalist with rigid and ruthless control of the security establishment and the ANC – and we support him despite his family and friends having become fabulously wealthy since his winning to high office) and Cyril Ramaphosa (the billionaire ex-unionist who has effectively used the black economic empowerment imperative to accumulate his wealth and will occupy his office with zero power and purely at the beck and call of the Nkandla Crew).
… because …
… they are a whole lot better than the nationalist, anti-nonracial Julius Malema, Tokyo Sexwale, Mathews Phosa, Fikile Mbalula and ANC Youth League?
I think not.
Extract from my summary as of last week
- The leadership and policy results of the African National Congress National Conference was a strongly status quo outcome and a victory for the incumbents (the Zuma camp) and their political and economic policies
- The leadership challenge to Zuma (with Kgalema Motlanthe the unwilling champion of that challenge) was routed, as was the policy platform most closely associated with the challengers (the nationalisation of mines). The extent of the victory is clearly and accurately revealed in the leadership election results detailed in Addendum 1.
- Cyril Ramaphosa’s election as deputy president has been heralded in much of the financial and popular press as a market-friendly outcome and, in some versions, a salvation of the ANC. It should be pointed out, however, that whatever qualities Ramaphosa possesses (and in my experience he possesses many excellent qualities) these will be exercised as the deputy to an extremely confident and powerful (in party and state terms) president, a president at whose behest Ramaphosa will serve and as a result of whose political influence Ramaphosa was elected. To further dampen any untoward enthusiasm it should be pointed out that Ramaphosa has no base in any constituency within the ANC or within the ruling alliance.
- Because the National Conference of the ANC is not the kind of forum in which decisive interventions or radical new directions can be formulated (it takes place over 5 days, has a long and complex agenda, entails many rounds of voting by 4000-plus branch delegates who are often unskilled in policy matters and who are generally organised into large voting blocks by contending factions for leadership) there were no such interventions and (no unexpectedly) new policy directions.
- However, the full policy platform of the incumbents, which does entail significant new state intervention in the economy (described and assessed by me in interminable detail elsewhere) was accepted in full (but in a very broad, vague, poorly attended and poorly discussed commission process at the conference.) The ANC is yet to publish the full policy resolution of the conference and I expect it to be a carefully phrased call for more state intervention, but in a language unlikely to alarm financial markets. The details here are important but I will have to postpone further analysis until the ANC decides it has crafted the resolution carefully enough.
The less expected
- Mangaung did only confirm policy and political trends that were already extant – and widely known. However the extent of the dominance of the Zuma camp and the weakness of the challengers took some commentators by surprise – see Addendum 1 for the details of the election results.
- The total failure of the political factions aligned to the ANC Youth League to make any impact on the conference policy-making process did come as a surprise to me – I would have thought there would be a rear-guard action around the ‘nationalisation of mines’ call, but none appeared (to me, anyway).
- It would have been politic for the Zuma camp to allow some of those who challenged for the top six positions (and their allies) to be represented on the 80 person National Executive Committee. It seems that either the desire to demonstrate total dominance won the day, or the Zuma strategists lost control of the popular mobilisation against the challengers. Either way it leaves a huge internal constituency of the ANC (roughly 25%) without representation at any leadership level within the party – an obviously destabilising outcome. However the Zuma camp is likely to invite some of the excluded individuals back into leadership positions, on terms satisfactory to the victors.
(Post Scrip reminder: outstanding is the ANC National Conference resolution on policy. The resolution that emerged out of the June Policy Conference took several months to formulate and be published. I do not expect the Mangaung Resolution to take things much further than the resolution from the policy conference. Much of the detail will be dealt with in the New Year and largely in Cabinet and government departments, rather than in party structures.)
… the results below are culled from various news sources and people who attended the conference (I found the full NEC results at Politicsweb).
A – Voting and results for the top six
(Interesting things to note: Zuma got the least votes of all contested positions and Gwede Mantashe the most – an observation I borrowed from Steven Friedman’s previously discussed Business Day article.)
- President – Jacob re-elected with 2983 votes to Kgalema Motlanthe’s 991 votes.
- Deputy President – Cyril Ramaphosa elected with 3018 votes to Mathews Phosa’s 470 and Tokyo Sexwale’s 463.
- Secretary General – Gwede Mantashe re-elected with 3058 votes to Fikile Mbalula’s 901.
- Deputy Secretary General – Jessie Duarte elected unopposed.
- Chairperson – Baleka Mbete re-elected with 3010 votes to Thandi Modise’s 939.
- Treasurer General – Zweli Mkhize elected with 2988 votes to Paul M Mashatile’s 961.
B – Voting and results for the National Executive Committee
(Note that no challenger to the Zuma camp in the top six election was elected to the National Executive Committee. Note, as well, that the only prominent member of the anti-Zuma camp, Winnie Mandela, just scraped onto the list, having topped the poll for the NEC election at Polokwane in 2007.)
|1||Dlamini-Zuma, Nkosazana Clarice||F||2921|
|11||Sisulu, Max Vuyisile||M||2442|
|12||Dlamini, Bathabile Olive||F||2423|
|13||Jordan, Zweledinga Pallo||M||2407|
|16||Ndebele, Joel Sibusiso||M||2379|
|24||Cwele, Siyabonga C||M||2245|
|25||Mokonyane, Nomvula Paula||F||2240|
|27||Dlamini, Sidumo Mbongeni||M||2213|
|29||Bhengu, Nozabelo Ruth||F||2195|
|32||Masetlha, Billy Lesedi||M||2161|
|33||Ramatlhodi, Ngoako Abel||M||2156|
|42||Oliphant, Mildred N||F||2019|
|43||van der Merwe, Sue||F||1992|
|44||Capa-Langa, Zoleka Rosemary||F||1984|
|45||Mthembi-Mahanyele, Sankie Dolly||F||1930|
|48||Xasa, Fikile D||M||1881|
|49||Majola, Fikile (Slovo)||M||1872|
|54||Cele, Bhekokwakhe Hamilton (Bheki)||M||1736|
|58||Mmemezi, Humphrey M Z||M||1679|
|59||Dlulane, Beauty N||F||1674|
|65||Yengeni. Tony Sithembiso||M||1570|
|70||Ntwanambi Nosipho, Dorothy||F||1450|
|71||Semenya, Machwene Rosinah||F||1449|
|73||Moloi- Moropa, Joyce C||F||1396|
|75||Ntombela, Sefora Hixsonia (Sisi)||F||1348|
|79||Mandela, Nomzamo Winfred (Winnie)||F||841|
First off, let me admit, that I have no choice but to believe that the answer to the question in the title is: yes.
It’s an article of faith.
Who can live in a world where the bullies and thugs, the greedy and manipulative, the powerful and the arrogant have won so decisively that it is pointless to hope – and perhaps work – for an alternative?
Who would dare raise children in such a world?
Or bother to get up in the morning?
In a post titled “A church so broad belief is optional” I two years ago argued that the ANC’s huge electoral support and attempt to straddle every social divide had an upside (as well as several downsides).
Here’s a (slightly edited) quote from that post:
Our society has a number of real and urgent fault-lines along which clashing currents are difficult to manage:
- White versus black (versus Indian versus Coloured)
- poor versus rich;
- the employed versus the unemployed;
- Zulu versus Xhosa versus Pedi versus Ndebele versus Sotho versus Tswana versus Venda;
- Western versus African;
- Urban, modern and fast versus rural, traditional and conservative.
The fact of the matter is that these divisions are not adequately represented in the formal political processes of parliament and government. There is no one party on one side of any of these divisions and mostly no one party on the other.
We are a society in which the formal institutions of democracy are new and tentative – and the divisions are threatening and profound. As many groups and interests as possible need to find expression in the national political debate – and the formal institutions do not yet adequately represent them.
As a second prize, an overwhelmingly dominant ruling party that attempts to play the role of a parliament of all the people, that attempts to speak with the cacophony of the thousand arguing tongues, is not all bad.
It’s just loud, noisy, confusing and unsettling.
This argument came to mind as I picked through the weekly English language press (Mail & Guardian, City Press, Sunday Independent and the Sunday Times) this morning.
I do an exhaustive/exhausting reading of the English language weeklies every Sunday afternoon/night to produce a summary analysis for my main clients by Monday morning. It is an extremely painful task and I am always tempted to quote that famous Punch magazine cartoon from November 9 1895 by George du Maurier to describe what I really think of these newspapers. A bishop is dining, in a formal setting, with a junior curate:
Bishop: “I’m afraid you’ve got a bad egg, Mr Jones”;
Curate: “Oh, no, my Lord, I assure you that parts of it are excellent!”
But I never actually say that, because there are always a few articles, features and editorials in all four of these newspapers that are truly excellent: well researched, well written and insightful; and it would be untrue and unjust – and a little arrogant – for me to suggest they all stink by virtue of being surrounded, as they are, by rotten, ill-informed and sensationalist rubbish.
So back to the title question.*
The Sunday Times has Motlanthe rejecting Zuma’s deal of the deputy presidency in exchange for him (Motlanthe) not standing in the presidential race.
It’s a particularly poorly structured story (trying to get away with suggesting a whole range of things without actually saying any of them) although it is full of tantalising tidbits.
So lets take the hints (from all four of the mentioned newspapers) as real possibilities:
- Motlanthe stands against Zuma;
- Unraveling patronage networks, especially in eThikwine, open(s?) the possibility of driving a wedge in Zuma’s Kwazulu-Natal support base;
- To strengthen his ticket against Motlanthe, Zuma offers Cyril Ramaphosa the deputy presidency;
- Gauteng suggests Joel Netshitenzhe as part of the Motlanthe challenge – essentially to stand against Gwede Mantashe (who’s a cornerstone of the SACP support for Zuma);
- Winnie Madikizela-Mandela comes out more explicitly anti-Zuma (especially of his handling of Julius Malema) and supportive of the putative Motlanthe challenge.
So what do we have there?
A Zuma, Ramaphosa, SACP ticket versus a Motlanthe, Netshitenzhe, Winnie, Malema ticket?
Oh Lord, give me strength.
Can’t we have a Joel Neshitenzhe, Cyril Ramaphosa ticket supported by Motlanthe and opposed by the ANC Youth League, Winnie Mandela and an unholy alliance of the Kwazulu-Natal and Mpumalanga patronage networks? (I have written previously about Joel on this website here, here and here.)
That desire is the moral and intellectual equivalent of arm-chair sports selecting. It would be nice … as would a leadership consisting of a young and vigorous Nelson Mandela, Oliver Tambo, Walter Sisulu …
So quickly, before I go back to picking my way through the odorous wreckage of the four weeklies spread out on my table and floor (the soul-crushing banality of etv’s Sunday afternoon offering in the background and the Cape Town winter sun finally beckoning outside):
What happens at Mangaung will not decisively determine the character of the ANC.
Polokwane was billed as a major rescue attempt – saving the ANC from the dead hand of Mbeki and rolling back the power of the narrow BEE elite which was allied to the most predatory forms of global monopoly capitalism.
Polokwane was going to reinstill the movement with idealism, energy and enthusiasm and channel it into ‘a pro-poor strategy’.
Well, we know how that played out.
Mangaung, like Polokwane, was a result of a complex interplay of forces and contests that go deep into South Africa’s past.
I cannot honestly argue that Jacob Zuma is a better or worse candidate for the ANC or the South African presidency than Kgalema Motlanthe – although I accept that some people can and do (with a lot of enthusiasm).
However, politics is a matter of contingency. It really is the art of the possible … in this sense it is full of difficult compromises.
Any individual who finds him or her self in an ANC branch or region or leadership position, will be faced with choices that, when aggregated, will shape the future of the ANC and, quite possibly, the country. (The same is, of course, true for any South African, inside or outside the ANC.)
Those choices might be circumscribed – by history, by existing power structures and alliances, by the momentum invested by those who control the patronage networks and by wherever it is that the individual finds him or her self.
But if you are not going to throw up your hands in despair and retreat to your bed forever, if you are unable to cut and run, then you have an obligation to make some kind of decision and choice.
I do believe that what the ANC becomes matters – although what it becomes is not going to be determined at Mangaung or as a result of it being led by Kgalema Motlanthe or by Jacob Zuma.
* (Note added a few hours later. On reflection, I might have empasised that the cartoon is even more apt for the ANC than it is for the English language SA weeklies … it was meant to be suggested, almost by my omission … but on reflection, I think I will spell it out … which I have now done.)
This is a screenshot from the front page of the ANC’s website accessed early this morning:
It’s those latest press statements I am interested in.
That’s the last five major releases from the Ruling Party, every one of which is exclusively concerned with the vicious battle taking place within the organisation.
April 4 – Comrade Julius Malema’s immediate suspension pending Disciplinary Proceedings
This statement records the National Disciplinary Committee’s decision to suspend Malema immediately after he said “….It is under President Zuma that we have seen the youth of the ANC being traumatised, being expelled from their own home. It is under President Zuma we have seen a critical voice being suppressed We have seen under President Zuma, democracy being replaced with dictatorship.”
The statement further spells out in detail Malema’s exclusion from any and all structure related to the ANC and forbids him to make statements pertaining to the organisation.
April 5 – ANC statement on The Star newspaper article
This is a slightly confusing (partly because I don’t have access to the report it is criticising) attack on The Star for publishing an article alleging tension among members of the ANC top six over appropriate action to take against Malema and the Youth League. It concerns who met who, when and with what intention – and the statement is a disavowal of the allegation that Thandi Modise and Mathews Phosa were at odds with Gwede Mantashe over severity of action to take against the ANC Youth League.
April 12 – NDCA statement on appeal hearing
This one is purely an announcement by Cyril Ramaphosa in his capacity as head of the National Disciplinary Committee of Appeal that the application to postpone the appeal hearing of Julius Malema, Sindiso Magaqa and Floyd Shivambu had been turned down.
April 15 – ANC statement on the decision of the ANCYL NEC
This one is a strongly worded attack on the NEC of the ANCYL which that morning had decided to ignore the suspension of Julius Malema. “We would like to advise the ANCYL NEC that regrettably their decision to undermine and defy the decision of the NDC effectively defines the organisation outside of the ANC Constitutional parameters.”
April 16 – The ANC statement on Floyd Shivambu Article
Which brings us to yesterday: “The African National Congress is appalled at the crude, uncouth, disrespectful and insulting attack on Comrade Cyril Ramaphosa by Floyd Shivambu in the weekend newspapers” said Jackson Mthembu.
This is the moment that a parent attempting to make sense of a group of angry children crying well he started it! … well he threw my dolly over the wall! … screams: ENOUGH – GO TO YOUR ROOM – ALL OF YOU – RIGHT NOW!
I suppose many citizens have been begging the ANC to clean its shop .. and in particular to close down the threatening thuggery in the ANCYL.
But I can’t help worrying that the only reason the leadership has acted is factional, and concerned with the power struggle leading up to Mangaung … and if its motivations are suspect, how it actually deals with the problem might leave things worse off than they were previously.
I, for one, will be watching with interest whether the ANC Youth League will attempt some form of mass mobilisation to put pressure on the processes of regional conferences mandating delegates towards Mangaung … and perhaps earlier at the June policy conference.
I am unsure of the League’s capacity. I suspect they are all wind and bluster … and that the central leadership of the mother body will keep them divided by offering inducements to elements less strongly tied to Malema and his cronies.
But they (the leaders of ANCYL) are clearly going to give it a whirl – which will make the next few months more interesting than they were going to be already.
There is a part of me that is delighted this ANC leadership is getting its comeuppance – through harvesting what it sowed in the lead-up to Polokwane.
But there is another part that is sickened by the spectacle of the crazed old dog madly chasing its tail and occasionally yelping in pain as it manages to get in a nip and tear out tufts of fur and bits of skin from its bleeding body.
Tokyo comes out to defend Julius Malema in the disciplinary hearing?
To be followed by Winnie Madikizela-Mandela and Tony Yengeni?
It is an almost too perfect reversal of Julius Malema’s own metaphor after his victory at the Eastern Cape provincial conference of the ANC Youth League in August 2010:
“We will never surrender to Blade. He has never been a member and has no understanding of … the youth league … Their people have been receiving serious lashings in the youth league conferences. As we said before, we will beat the dog (SACP) until the owner (Nzimande) comes out” … (a copy of The Herald editorial I took that from here.)
The boot, at the moment, seems to be on the other foot (or ” the stick is in the other hand” might have been better – ed.)
The “dog” that is now being beaten at the disciplinary hearing is Julius Malema himself and the owners that are revealing themselves are Tokyo Sexwale, Winnie Madikizela-Mandela, Tony Yengeni and friends.
And who is doing the beating? Why, the South African Communist Party and Blade Nzimande (as well as Jacob Zuma, Gwede Mantashe and many – but by no means all – in the incumbent leadership of the ANC).
Last weekend, almost while the disciplinary hearing was sitting, SACP Secretary General Blade Nzimande said to the SACP provincial congress in Esikhawini, near Richard’s Bay, in northern KwaZulu-Natal, that young people should be discouraged from participating in the ANC Youth League’s Economic Freedom in Our Lifetime marches and protests on the 27th and 28th of this month:
“Do not allow yourselves to be used by people with agendas that are not in your interest … We are not going to be supporting any march whose intention is malicious and to undermine the authority of the ANC and the government.”
Breaking ideological stereotypes and confusing the foreigners
Spare a thought for those of us whose job it is to explain to foreign investors why the communists are leading the fight against a youth movement calling for the nationalisation of mines, the expropriation of land without compensation and “Economic Freedom in Our Lifetime!”
I could, of course, have just sent them a few extracts from Fiona Forde’s An Inconvenient Youth – Julius Malema and the ‘New’ ANC (Picador Africa 2011).
Here she is, sitting outside a hotel in Caracas Venezuela chatting with a sulking Julius Malema on his way back to South Africa (from a conference of the World Federation of Democratic Youth taking place in downtown Caracas in April 2010) to face his previous disciplinary hearing. She has been getting a lesson from Julius on the importance of matching the leather of his watch strap with his belt and his shoes.
Venezuela has never seen so many designer labels as it has these past 48 hours since the arrival of the South African young ones. They descended on the city with their expensive suitcases and travel bags, top-of-the-range baseball caps, flashy T-shirts, snazzy shoes and sneakers, sleek manbags and a string of other expensive accessories hanging out of them – and a bodyguard in tow – all dressed up for a socialist youth conference.
I have been wondering how they must appear in the eyes of the other youth who have flown in from all over the world, and who are also staying at the Avila. The three-star hotel is swarming with casually-dressed, young delegates and among them, to my mind at least, the South Africans seem to stand out a mile.
When we understand that these delegates are the very same people who have formulated the “Economic Freedom In Our Lifetime” slogan, the implacable opposition of the South African Communist Party to the campaign becomes obvious.
The campaign is a classic attempt by a parasitic elite to manipulate those who are really poor and dispossessed so that these disenfranchised citizens become the battering ram and the lever through which that elite can capture even more resources and assets than it has already – through tender abuse and diversion of state resources into their own pockets.
So the dog is being beaten.
But we would be unwise not to think deeply and carefully about the nature and intentions of the owners that rush out to defend their animal.
I’ve been itching to get in my two cents worth about Jimmy Manyi’s various comments concerning ethnic minorities (here for his original statement on YouTube, here for Trevor Manuel’s robust criticism, here for the ANCYL’s counter-attack on Manuel and defence of Manyi, here for ANC Secretary General Gwede Mantashe’s implicit criticism of Manuel … “we won’t get in the mud with him”. Here‘s Cosatu joining the attack on Manyi and here‘s the SACP criticising Manyi but warning not to become part of the agenda of Afriforum and Solidarity – probably implying that Manuel has become part of that agenda.)
So much for curating the spat … now I want to say something about it.
I’ve written about Jimmy Manyi and the various endeavours by both the Black Management Forum and the ANC Youth League to gouge economic advantage out of transformation – catch that here and here for how that agenda was expressed as support for Eskom’s Jacob Maroga.
Jimmy Manyi’s comments about Coloured people must be understood in the context of the interests of the constituency he represents.
Jimmy Manyi is the quintessential spokesman of those who have got rich (or hope to get rich) through Black Economic Empowerment – including racially weighted tendering procedures – and Employment Equity regulations.
Those who define themselves as the beneficiaries of these processes are encouraged to express themselves in ever more racially chauvinistic and exclusive terms.
These Black Management Forum and the ANC Youth League leaders increasingly draw a distinction between themselves and any other ethnic group that also might have suffered under Apartheid i.e. they need to argue that they suffered the most, that everyone else was a relative beneficiary of the oppression of Africans.
The moral high ground of “non-racialism” was built and defended at great cost and effort by the ANC and its allies during the struggle against Apartheid. Apartheid planners and architects did everything they could to emphasise differences and spread fear and hatred betwixt and between as many ethnic identities as possible. This is one of the most important keys to understanding how and why that system worked and survived as long as it did.
Which is precisely why the ANC always understood its main ideological task as combating these attempts.
This is the reason Trever Manuel quotes that famous and moving last paragraph of Mandela’s speech from the dock in 1964:
During my lifetime I have dedicated myself to this struggle of the African people. I have fought against white domination, and I have fought against black domination. I have cherished the ideal of a democratic and free society in which all persons live together in harmony and with equal opportunities. It is an ideal which I hope to live for and to achieve. But if needs be, it is an ideal for which I am prepared to die.
The Jimmy Manyi’s and Julius Malema’s are a post 1994 phenomenon not contemplated by the great men and women who sacrificed so much in the struggle against Aparthied.
They are parasites of transformation, emphasising and nurturing an exclusive African racial identity because it benefits their imperative to extract a rent out of the economy.
I love that scene in the Bucket List where the poor but proud Morgan Freeman character quietly points out to the rich and arrogant Jack Nicholson that the coffee he brews in a silver pot and savours from Dresden china is made from beans shat out by a lemur in South America – well that’s how I remember it, anyway.
You shouldn’t sneer at Kenny, Julius, Noleen, Hlelo, Ntando, Gayton and their 4000 best friends at the opening of the ZAR in cape town on Saturday night – after the Met, of course Darling.
Previously, under Apartheid, many of them were disadvantaged. Looking at them now, a more miraculous transformation seems impossible to imagine.
The nouveau riche always feels it has something to prove; always embarrasses itself in the eyes of its better educated children. But South Africa’s new elite seems … almost Russian … in its consumption of the tasteless and conspicuous.
Picture the model dressed in a black S&M bikini. She is lying, anxious under the blazing lights and sweating under the make-up. Kenny Kunene’s peculiarly round head is leaning over her, his moist lips pouting in an “oh” reaching down to her belly and the rice and raw fish that is lying there, slimy as the evening drags on …
And the morally disadvantaged new elite roars its satisfied approval at this witty, sexy exercise of power – take back the night, we didn’t struggle to be poor …
Thank heavens for the increasingly twinkly and cantankerous – in equal measures – Gwede Mantashe (and, it must be said, his ‘desperately-clinging-to-the-high-ground’ organisation).
This is what they had to say:
The ANC distances itself from owning a nightclub
31 January 2011
The African National Congress (ANC) distances itself from sentiments allegedly attributed to the ANC Youth League President, Cde Julius Malema that, “Helen Zille is trying to close all the clubs in Cape Town, but this one belongs to the ANC”, as contained in today’s (31 January 2011), media reports.
The ANC would like to state it categorically clear that it has no interest in running a nightclub or in endorsing its owners. The ANC is not into nightclubs or partying, but it is a revolutionary movement.
We furthermore reiterate our condemnation to the act of serving sushi on a woman`s body, as this act is anti-ANC and anti-revolutionary. This act is defamatory, insensitive and undermining of woman`s integrity.
We therefore appeal to all those involved in this act to immediately disengage from it.
ANC Secretary General
African National Congress
You go Gwede Mantashe, may your voice ever be raised above the grunting and bellowing around you.
I occasionally publish slides that I have used for clients as part of my attempt to examine political and investment risks to them.
Below are 3 from a presentation I delivered soon after the ANC NGC.
See if you can identify all the people concerned – a sort of politics general knowledge test ( you know the ones: if you score 10 you are probably a CIA/MI5 agent; if you score 9, then get a life and stop obsessing about politics …. if you score 2 you are living in a special care facility etc.)
As an aid here is a link to Stalking horses at the NGC – the blog I posted at the time. To help refresh your memory ‘the NOM’ was meant to describe the group that had coalesced around the ANC Youth League’s call for the nationalisation of mines.