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In the DA’s quest for Mpshe’s decision to be set aside, there were two interlocutory applications (which contributed to the lengthy delays). Together, these applications took 54 months to deal with, four years roughly.
The first interlocutory application was a challenge by the NDPP and Zuma to the locus standi (standing) of the DA to bring the application to set aside Mpshe’s decision.
When the matter returned to the High Court after this was dealt with, Zuma and the NDPP did not want to include the review record for the DA to have access to the parts of the spy tapes that Mpshe based his decision on.
This led to another interlocutory application, this time by the DA, to compel the inclusion of the spy tapes records.
Finally, in April 2016, the court heard the DA’s application for Mpshe’s decision to be set aside.
“Whatever the motive of the litigation was, the effect was to delay the prosecution,” Trengove tells the court.
The City of Tshwane picked up the tab for its embattled municipal manager Moeketsi Mosola’s legal fees when he wanted to interdict the release of a report showing irregularities in the awarding of the GladAfrica tender, News24 can reveal.
That the municipality has covered Mosola’s fees in the case against it has been something of an open secret for some time. But News24 can for the first time reveal that this was confirmed in writing in internal municipal communication.
There is fierce disagreement among senior municipal officials over the legality of the assistance provided to Mosola. There is even fiercer disagreement over the ethics of the issue, given that it was Mosola who took the City to court of his own volition.
The case is central to the fight over whether Mosola should keep his job. His detractors have tried to have him suspended because of his role in signing off the Glad Africa project management tender, which was found by the Auditor-General to be irregular.
Law firm Bowmans was appointed to probe the Glad Africa tender last year, and found there were irregularities in the procurement process.
But before that report could be tabled in the Tshwane council, Mosola obtained an interdict in the Labour Court stopping its release, in October 2018.
Also read: Tshwane ANC rejects mayor Mokgalapa’s ‘corrupt golden handshake’ in GladAfrica scandal
At issue was whether former mayor Solly Msimanga, the City and the Speaker of the Council had taken the correct technical and procedural steps in their efforts to have Mosola suspended over his role in approving the Glad Africa tender.
Only the city council can suspend the City Manager, and so the tabling of the Bowman’s report in Council was important for those who wanted to remove him.
Correspondence seen by News24 illustrates how a legal advisor in Msimanga’s office questioned whether it was proper for the municipality to pay Mosola’s legal fees last year, and again in February this year. Mosola has been using the services of private Johannesburg-based law firm, Leslie Cohen & Associates.
The correspondence shows that the advisor wrote to Marna Kock, Tshwane’s Group Head for Legal Services and Lorette Tredoux, Governance and Support Officer, in October 2018, asking whether Mosola was receiving legal assistance from the municipality.
Kock responded saying that, as Chief Legal Counsel at the municipality, she had decided to grant Mosola legal assistance in terms of Section 109a of the Municipal Systems Act. That section says that a municipality may provide assistance to an employee if action has been taken against them over something that occurred during the course of their duties. Legal assistance can also be provided to an employee if they are summoned to an inquest or inquiry stemming from the performance of their duties.
But the advisor disagreed with Kock, and said that the legal assistance to Mosola fell outside the scope of that section, and was “irregular and unlawful”.
“No legal proceedings have been instituted against (Mosola) nor has he been summoned to attend any inquests or inquiry. In fact, (Mosola) is acting in his personal capacity for private purposes against the City … all expenses paid in this regard will constitute irregular expenditure,” the advisor warned.
Also read: We tried to pull out of Tshwane contract in November – GladAfrica
In February, he further warned that there was a raft of statutory, regulatory provisions and labour agreements, which he explained in detail to Kock, showing that the City Manager did not qualify for legal assistance.
He wrote: “Disciplinary matters do not fall under the proceedings as envisaged by Section 109a. It would in fact lead to an absurdity if every employee against whom disciplinary investigations and procedures are instituted is entitled to City legal aid/assistance/representation.”
Kock replied that any concerns over the exercise of her duties should be taken up with Mosola and Tredoux and that she reserved her rights, in the event that the email exchange was used in any future disciplinary action against her.
News24 was reliably informed that the municipality had a budget of R66 million for legal fees for the 2018/19 financial year, as of June 2018. At the time of writing, the municipality had spent about R61 million of this budget.
It is not clear how much of this pertains to Mosola’s own legal costs. As is the case with most municipalities, Tshwane is involved in several other legal disputes, including one over the controversial Peu Smart Meter systems – a dispute which began in the previous administration but was only resolved in court late last year.
There has been no final judgment in Labour Court case, and News24 was reliably informed that the parties are in talks to possibly reach an out-of-court settlement. The municipality did not respond to a formal request for an update on the case.
In response to an SMS asking whether settlement talks were underway, Tshwane Mayor Stevens Mokgalapa said: “Receiving legal opinion and legal advice”.
The Tshwane municipality had not responded by the time of publication. This article will be updated to reflect its response once it has been received.
The DA remains bullish as the official opposition party ahead of a new term in Parliament, despite returning with fewer MPs than before.
Speaking after his 84-member caucus’s first meeting on Tuesday morning, DA leader Mmusi Maimane said: “The DA’s work in this sixth Parliament will be guided by the following two principles: One, holding government accountable for the exercise of their powers, and, two, putting forward fresh ideas and credible alternatives to government plans and policies. This is how we intend to ensure Parliament comes alive and works for the people, and not for politicians and their connected cronies.”
He announced that John Steenhuisen will continue in the role of DA chief whip in the National Assembly.
All other leadership positions will be contested through a caucus election. These are deputy chief whip in the National Assembly, leader in the National Council of Provinces; caucus chairperson and deputy caucus chairperson.
Maimane also said the DA would put up candidates for the positions of speaker, deputy speaker and president, which the National Assembly will elect on Wednesday after the swearing in of members of the National Assembly. He said their candidates will be selected on Wednesday morning.
“I have no doubt that with such a talented mix of skill, expertise and experience, this diverse caucus is well-equipped to serve the people of South Africa for the next five years,” Maimane said.
The caucus has identified the following as priorities in the coming months:
Tabling the Jobs Bill
In the coming weeks the DA will table their Jobs Bill, their legislative blueprint to create an enabling environment for accelerated job creation in South Africa. This bill focuses on two key areas critical to job creation, namely foreign investment and SMMEs.
Establishing Standing Committee on the Presidency
Currently Parliament does not have a committee overseeing the presidency. Therefore, the DA will be pursuing the establishment of a Standing Committee on the Presidency – a dedicated committee which has oversight power over all the affairs of the presidency.
‘Shadow Cabinet Meetings’
The DA calls its spokespersons “shadow ministers”. Maimane said he will appoint his “Shadow Cabinet” to put “forward fresh ideas and credible alternatives to government plans and policies”. Chaired by Steenhuisen, they will meet every fortnight to discuss the upcoming legislative agenda, to deliberate on new policies, debates, and motions, and to table any other matters.
Establish an opposition caucus
Maimane said he will establish a working group of opposition parties. “We want to align ourselves with people who share our values, who identify in the centre of politics and an economy that delivers for most South Africans.” He didn’t elaborate on which opposition parties fit this bill.
Regular Engagement with Leader of Government Business
The president must appoint a Leader of Government Business (LOGB) in Parliament – responsible for maintaining a cordial, working relationship between Parliament and the Executive. This responsibility typically falls on the deputy president’s shoulders.
Maimane said the LOGB is obligated to meet with opposition party leaders on a regular basis – something which has not routinely happened in the recent past.
He said he will write to President Cyril Ramaphosa, to request, in writing, his commitment to ensuring that the LOGB is a present and engaged player so that constructive dialogue between all parties becomes a standard practice of the sixth Parliament.
Steenhuisen said Thandi Modise, who is the ANC’s candidate to become speaker on Wednesday is a strong candidate and he is very relieved given some of the other names that were mooted.
“The big concern for me in all of this is Nomvula Mokonyane,” he said.
The ANC on Monday announced that Mokonyane will be the chair of chairs. The position is also called house chairperson for committees. The position was held by Cedric Frolick in the fifth Parliament.
He said he fears ANC Secretary-General Ace Magashule’s faction was deployed to Parliament and would form roadblocks to Ramaphosa’s proposed reforms.
“I don’t think anybody should underestimate what an obstruction Parliament can be to any reforming agenda that the president may want to drive.
“If I was the president, seeing Nomvula Mokonyane being placed there, at essentially one of the most key positions that determine how committees process business, when committees process business and how that business is dealt with and disposed of within the house, it should be a big, big worry for him, because it could be used against him.”
Steenhuisen said he was looking forward to the engagement with the ANC’s new chief whip, Pemmy Majodina.
“She’s certainly a very colourful character and very interesting and I’ll obviously have to bring my own blue fan to Parliament to counter it,” Steenhuisen said, the fan-comment referring to an instance where Majodina was pictured with a small pink fan to match her flamboyant pink clothes.
He said the ANC’s choice was “very out of left field”.
“A very odd choice for chief whip. I thought they missed a trick with her. I thought Dorris Dlakude, who has been deputy to the last two chief whips, would have made an excellent chief whip. But nonetheless, I was wrong about Mr Mthembu [previous chief whip Jackson Mthembu]. Hopefully, I’ll be wrong about the new chief whip as well.”
South Africa’s leading home appliance repair and maintenance brand is poised for spectacular growth thanks to the success of two pro-business processes introduced by local lawmakers. The firm used both the Department of Trade and Industry’s ‘business rescue’ legislation and the SARS Section 12J tax incentive scheme to shake off recent trading difficulties and emerge revitalised, ready to create jobs and contribute meaningfully to the broader economy.
Wesley Rabie, CEO of MasterCare |
MasterCare, established in 1974, ran into trouble three years after its 2009 acquisition of EarlyBird Services from Ellerines Holdings. The firm faced a perfect storm of post-acquisition challenges including overstated revenue estimates, old and underutilised infrastructure and unprofitable stores. As cash flow dried up management was left with one of two choices – either close doors and go into liquidation or enter into a business rescue arrangement to see whether the business could be saved. Management opted for the latter and Neill Hobbs of Hobbs Sinclair was appointed as the business rescue practitioner in 2012.
“Hobbs and his team looked at every aspect of the business and realised its vital role in the domestic home appliance repair industry,” says Wesley Rabie, current CEO of MasterCare. “They optimised the business model and created a ‘leaner and meaner’ operating infrastructure to deliver sustainable growth.” He credited Hobbs Sinclair with creating the space necessary for the management team to focus on the business plan rather than obsessing over day-to-day operational issues. The only missing ingredients at this point were a clear strategy and capital – enter Anuva Investments, a section 12J-compliant Venture Capital Company (VCC) which acquired a majority share in MasterCare in 2015.
The combination of business ‘smarts’ and ‘fresh’ capital put MasterCare on a totally different business trajectory. “Capital is one thing,” says Rabie. “But we benefited from the business acumen of Neill Hobbs as well as inputs from the ‘captains of industry’ behind the Section 12J venture capital company.” He adds that the five-year minimum investment term for such investment creates a strong incentive for investors to get involved.
“As the business rescue process unfolds you reach a point where a clear direction and an injection of fresh capital becomes an imperative for business success,” says Larry Worthington-Fitnum, co-founder and director at Anuva Investments Ltd. “What separates our fund from other VCCs in this sector is that our investors go out of their way to leverage their networks and experience to the benefit of the acquired business.”
The business rescue process and subsequent Section 12J investment saved 80 jobs at MasterCare and prevented countless job losses in the broader repair industry. “We currently support more than 140 small service agent businesses across the country as well as a handful of spares suppliers – often as the agent’s largest client,” says Rabie. If MasterCare had gone into liquidation instead of business rescue he estimates that a third of the smaller agencies would have struggled to stay in business, with many additional job losses.
The new business has emerged ‘lean and mean’ and ready to achieve real jobs, turnover and profit growth. “We have streamlined our operating infrastructure and refocussed the business on sustainable growth opportunities with the result our headcount has increased by 8% in the past year,” says Rabie. MasterCare is better-positioned than ever with great technical staff, an industry-leading CRM system and ‘fit for purpose’ products and services. He jokingly refers to the group as a “45 year old start-up” made up of motivated staff who carry out their roles with respect for one another, for their customers and for their brand partners.
The influence of the tech-savvy directors at Anuva Investments is already showing. There are plans afoot to venture into repair and servicing of higher level technology products as well as to leverage technology to improve service delivery to customers. “Our company culture is that of a start-up under a revitalised brand – and our focus is on disrupting our sector, exceptional customer service and delivering an innovative product offering that offers real value,” says Rabie.
The MasterCare experience shows that liquidation should only be considered as a last resort. “Business rescue gave us the opportunity to take a company that had been around for almost half a century, recognise the value in the business model and turn the company around,” concludes Rabie. “The marriage of business rescue and section 12J venture capital has kept us alive, returning this business to profitability while saving existing jobs and creating new work opportunities.”
Composite Business Cycle Indicators
A Cape Town Labour Court judge has died after he was bitten by a black mamba while on holiday in Zambia.
Judge Anton Steenkamp, 57, was doing what he loved, touring Africa with his wife, Catherine, when he was bitten by the snake on Monday, the family said.
“We are devastated. No words. What an incredible man. His wife, Catherine, is still on her own in Zambia. They were touring Africa. We as a family were very, very proud of him,” relative Ruby Steenkamp told News24.
His close friends have described him as a man of integrity, one who was kind and generous to people he came across.
Close friend Charles Leonard, the arts editor at The Conversation Africa, said Steenkamp was his comrade from the 1980s, when they were students. Leonard described Steenkamp as an “exceptional” person.
He said while Steenkamp was kind, generous, loyal and committed to bettering more than just society, he also had an exceptional brain, and was one of the finest on the bench.
“He was a progressive person, truly committed to a non-racial society. I’m totally devastated. We used to chat almost every day on the phone,” he said.
Although Steenkamp was based in Cape Town, he would not miss meeting up with Leonard when he was on duty at the Johannesburg Labour Court.
“He and his wife Catherine were doing what he loved so much – touring through his beloved Africa,” he said.
Steenkamp’s friend, well-known journalist and author, Anneliese Burgess said she was “bewildered” by the news of his death.
“We are absolutely devastated. None of us can begin to comprehend what has happened. He was such a brilliant man, and such a mensch,” Burgess said.
Burgess recalled that the last time she saw Steenkamp was at her book launch in Cape Town in 2018. She was “so touched” that he had made an effort to be at the launch.
“‘Stenie’ as he was known to all of us old Stellenbosch lefties was simply one of the best people I knew, and I am completely devastated at the news of his passing,” she said.
Author, columnist and documentary filmmaker Max du Preez said Steenkamp was a student activist, and when he finished studying towards his LLB degree, he went and worked for anti-apartheid Afrikaans national weekly newspaper, Vrye Weekblad because he strongly believed in the fight against apartheid and for democracy.
“When we closed our doors he went back into the legal profession and he became one of the youngest judges ever. When I think of him, if someone asks ‘what does integrity mean?’ i say go and look at Anthon Steenkamp,” he said.
Du Preez said Steenkamp also had a fun side of him and was adventurous and always travelled.
Sikhakhane concludes: “I want to end where I started – we started with McCarthy and the investigation. I end with their conduct as well… And by the way, these spy tapes, I can safely say, spy tapes are the tip of the iceberg…because it’s not all of the conversations, it’s just some of the conversations.”
Sikhakhane: “And so the pattern, you have to make the inference, that the pattern of discussing and aligning this prosecution with political purposes had been there, the script that McCarthy was asking about, ‘Has it changed?’, started earlier than the recordings we have.”
Sikhakhane: “And I invite this court, to agree with me, that of the two legal philosophies – one which is mob justice, we will do what we like with the person we suspect, and the other, even if we think you’ve done the most egregious crime in this modern, caring society built on the values of the Constitution, we will deal with you constitutionally, no matter how much people hate you. Those are our submissions.”
“The NPA Act was violated,” says Sikhakhane, and he contends that “the policy of the NPA was violated” in pursuit of an accused.
Sikhakhane makes way for Advocate Thabani Masuku, also part of Zuma’s legal team.