The South African Reserve Bank proposes a methodology to determine systematically important banks in South African: invitation to comment on the discussion paper.
A new video clip has provided a rare glimpse of elusive and infamous Bosasa boss Gavin Watson in action, berating his staff for mistakes that nearly led to the company losing an R800m tender.
Watson, who has run Bosasa since 1999, does not lead a public life. He shot to infamy in January as a result of damning testimony of grand corruption by former Bosasa chief operations officer Angelo Agrizzi before the Zondo commission of inquiry into state capture.
In the video, he can be heard talking about how he and politically connected fixer for Bosasa Sesinyi Seopela “work in the night, trying to get tenders over the weekend” and speaks of tender “networks” the company ran.
During Agrizzi’s testimony, Watson was painted as the key figure in a nearly two-decade-long scheme that involved paying numerous bribes to government officials and political leaders in exchange for lucrative government contracts.
Data from National Treasury shows that between 2004 and 2019, Bosasa netted an estimated R12bn from numerous state departments, a conservative calculation that is likely to increase.
Seopela, who is known as “Commander” in Bosasa circles, emerged as a key figure with strong political connections who was able to open doors to political leaders for the company.
Seopela has previously been approached to comment on these claims and his role at Bosasa, but did not respond.
The video, shot during a staff “imbizo” in March 2017 at Silverstar Casino in Krugersdorp, captures Watson belittling staff.
Tears and sarcasm
He takes his “tender office” to task for mistakes in documents that nearly cost the company a lucrative contract.
At one point he tells Gina Peters, a 17-year veteran of the Bosasa trenches, not to cry.
Watson, in a sarcastic manner, berates Bosasa accounts department staff member Jacques van Zyl.
“Jacques complains that he couldn’t do the tenders, because there are so many tenders,” Watson says.
Van Zyl also featured in testimony before the state capture commission, when a video was shown of him taking a box, believed to be filled with cash, from a middleman.
News24 also previously reported that Van Zyl was instructed to deposit R276 667 cash into the business account of ANC MP Vincent Smith’s company, Euro Blitz 48, on July 14, 2015.
READ: Bosasa paid top ANC MP
“Accuracy, accuracy, accuracy! Question mark, accurate!” Watson continues in the video.
“We then have to send people around to go and fix up your documents. If we didn’t have that network, we would have lost the tender. The tender’s R800m,” he says.
Watson then asks Bosasa chairperson Joe Gumede, seated in the crowd, if the “tender office” is accurate in its work.
“Definitely not, that’s why people shouldn’t be complaining,” Gumede retorts.
Watson then marches across the room, looking for Seopela, whom he calls “Commander”.
“Where’s Commander? The two of us (Watson and Seopela) work nights, trying to get tenders over the weekend,” he says.
Seopela is a shadowy figure shrouded in mystery. He is not on social media and no pictures of him had been published by any news agency until earlier this week when News24 revealed a picture of Seopela with a Bosasa delegation meeting former ANC treasurer general Zweli Mkhize, taken at Luthuli House in 2014.
ALSO READ: The ANC accepted Bosasa millions for years
“Do we have to run around?” Watson asks. Seopela responds: “Yes, chief.”
The video clip is short, only two minutes, but according to Bosasa insiders, it is indicative of how Watson would conduct himself when dealing with staff.
“This is how people are treated in what is supposed to be an open forum to encourage people, an ‘imbizo’,” one Bosasa insider told News24.
“[Watson] would interject, purposefully embarrass individuals he targeted.”
The insider, who did not wish to be named, referred to Peters, who Watson told not to cry in the video.
“Gina has been an employee of Bosasa for 17 years. She has worked nights to ensure that the professionalism of the company is maintained. On weekends she is at Watson’s beck and call, having to attend to personal chores. And this is how a Christian deals with people. It’s a disgrace,” the insider said.
News24 approached Bosasa spokesperson Papa Leshabane to verify if the video was indeed indicative of the manner in which Watson spoke to staff, and to clarify details around the R800m tender mentioned.
At the time of writing, Leshabane had not responded. This article will be updated if a response is given.
On Monday, Bosasa announced the company had been placed under voluntary liquidation following a decision by its bank, FNB, to close Bosasa’s accounts at the end of February.
The process to appoint liquidators is now under way with the Master of the High Court in Johannesburg.
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An official at Sasol Secunda has accused the petrochemical giant of intentionally polluting the Vaal River.
The employee made submissions at the South African Human Rights Commission’s (SAHRC) inquiry into the contamination of the river, held at Constitutional Hill in Johannesburg.
“Sasol excretes a type zero waste which is not allowed to be landfilled at all. And if it (Sasol) wishes to do so, it will have to treat it (the waste) to be type one, to reduce harm,” he said.
Some residents in the Vaal claimed that the foul smell in the area made them sick and wanted their concerns to be attended to urgently.
The situation prompted the SAHRC to establish an inquiry to determine whether the spillage amounted to an infringement of basic human rights, and what may have caused the pollution in the first place.
READ: SANDF pulls out all the stops to tackle Vaal River contamination
The Emfuleni municipality, which is the most affected, has since been placed under administration and the mayor, Jacob Khawe, tendered his resignation in December.
Among some of the chemicals the whistleblower said Sasol continues to spill, is vanadium.
A quick Google search reveals that a person’s exposure to vanadium may affect the central nervous system, with symptoms including headaches, abdominal cramps, diarrhoea and a green colour to the tongue.
Another chemical the Sasol official testified that his company unlawfully discharges is potassium carbonate, which can cause severe irritation of the gastro-intestinal tract and result in nausea, vomiting and burns.
READ MORE: Vaal River pollution: ‘There have been challenges to compliance’, Sasol says
“Those chemicals should never be allowed into a stream, and I have been advised that some of the chemicals can cause birth defects,” the whistleblower said.
He also explained to the inquiry that he had been subjected to intimidation after he spoke out about the matter to his superiors.
“The intimidation is worsening despite the fact that I have followed proper procedures to report the irregularities to relevant authorities, I am just surprised that I am not shot in the head yet,” he continued.
These revelations come despite Sasol having appeared before the same inquiry in November and denied its involvement in the pollution of the river from its Secunda plant.
ALSO READ: Municipalities to blame for ‘contamination of Vaal River system’ – Parliament
The petrochemical giant at the time only conceded that it had struggled to interpret some compliance requirements about regulations on the discharge of waste.
Sasol also revealed that three of its incinerators were closed last year due to non-compliance.
The SAHRC’s inquiry sat for the last time on Wednesday and its chairperson Buang Jones said “all written and verbal submissions will be considered, evaluated” and added so that a final report would be compiled in three months.
Earlier on Wednesday, the water and sanitation’s Gauteng head Sibusiso Mthembu said that the South African National Defence Force’s (SANDF) intervention at the severely polluted river has received a R240m cash injection.
R900m is still needed for the intervention, a mission which is set to be completed in March 2020, to be fruitful.
The SANDF deployed soldiers, among them specialist engineers, to find solutions to the contamination of the river.
As he closed the hearing, Jones said that his team would still be taking written submission until February 28.
Police Minister Bheki Cele has revealed why he could not back Independent Police Investigative Directorate (IPID) head Robert McBride for another term in the job in a lengthy submission to Parliament’s Portfolio Committee on Police.
In a letter seen by News24, Cele wrote that a misconduct complaint against McBride to the Public Protector Busisiwe Mkhwebane had been referred for investigation.
“This means that the complaint, at very least, makes out a prima facie case against Mr McBride,” alleged Cele.
He was writing to the committee after McBride argued that the committee, and not Cele, had the authority to decide not to renew his five-year contract when it ends on February 28.
Comment from McBride was not immediately available, but Cele’s submission included a lengthy list of untested allegations regarding leave pay, procurement, using the services of a private investigator and abuse of authority.
The full details of the letter and the allegations it contains could be made public when the Portfolio Committee on Police meets for an update on the issue on February 22.
Renewing term would be ‘irrational’
IPID’s job is to investigate complaints against the police ranging from shooting incidents, officers refusing to help, to allegations of large-scale impropriety by high-ranking officers.
Cele wrote: “The allegations against Mr McBride are serious and cast significant doubt on his fitness and propriety to hold office as executive director.”
He said previous court judgments had shown the importance of determining whether officials such as the National Director of Public Prosecutions are “fit and proper” to hold office.
Cele said not only was there a complaint to the Public Protector, but there was also a report by an IPID investigator, Cedrick Nkabinde, with claims against McBride and a “whistleblower” report.
He said that although McBride “may in time” refute the allegations against him, he will have these claims hanging over him and IPID until then.
“It would, I submit, be irrational to renew Mr McBride’s term in light of these allegations which reveal prima facie evidence of misconduct.”
The letter also recommends checking whether McBride has valid security clearance given his job.
Matter set down for February 22
Cele recommends a fresh interview process for new IPID head.
“IPID’s independence and effectiveness – and the public perception of IPID’s independence and effectiveness – would be better served by appointing a new executive director.”
The submission, signed on February 18, is in line with a timeline set following a court application by McBride to challenge Cele’s authority to decide whether to extend the contract or not.
In a draft order the parties agreed that the decision Cele had taken not to renew McBride’s term was a preliminary decision that must still be confirmed or rejected by the committee.
“It is recorded that the second respondent (the portfolio committee) intends to take a decision regarding the renewal of [McBride’s] appointment on or before 28 February,” reads the order.
The matter was postponed to the urgent court roll of the Gauteng High Court in Pretoria and is set down for February 26.
Also read: Cele must answer police committee about McBride’s job
The portfolio committee was ordered to report, via affidavit, on its progress by February 22.
McBride’s career has been riddled with legal complications ranging from an allegation of drunk driving that he was acquitted of, to “doctoring” a report on the illegal return of a group of Zimbabweans wanted by that country’s police. He was also spared from a death sentence following a bomb that detonated at a bar in Durban in 1986 when he was in the military wing of the ANC.
South Africa faces an impending food security crisis if there isn’t urgent action to correct unsustainable practices, says an environmental organisation.
According to the World Wide Fund for Nature (WWF), South Africa will have to produce 50% more food by 2050 to feed an estimated population of 73 million people.
“We need to understand that our current approach to food production is by no means benign. Both globally and in South Africa, agriculture is the largest land use and has the heaviest impact on land transformation and biodiversity loss. Soil degradation, for example, results in a net loss of arable land every year,” Agri-Food Systems: Facts and Futures report author Tatjana von Bormann told News24.
READ: Here are the SA cities facing the biggest threat from climate change
Farming in SA needs comprehensive reform in order to meet the needs of a growing population, says the 56-page report.
‘Resilient and secure food system’
The report reads: “Until a few years ago, WWF focused on the impacts of agricultural production, which are by far the most significant environmental impacts.
“However, focusing on farms only will not bring about the necessary structural transformation that is needed for a resilient and secure food system.
“If we want to achieve this shift within a complex adaptive system, we need to follow a socio-ecological approach, where the social, economic and political dimensions (the actors) are embedded within the ecological component (nature).
“This approach hinges on understanding all the possible interconnections and feedback loops so that, in intending to fix one thing, we do not create another unintended consequence.”
(WWF)
The report argues that, while SA has kept undernourishment below 5% since 1990, there are still significant challenges, with half the population still living below the poverty line.
“Paramount among these [challenges] are diet-related health problems, such as the growing prevalence of obesity and non-communicable diseases (NCDs), and the persistence of hunger, nutrient deficiencies and stunting,” says the report adding that women, children and the poor are most vulnerable.
Food insecurity is a global problem, despite commitments to ensure food security and poverty alleviation.
Malnutrition
According to the UN World Food Programme (WFP), 45% of deaths of children under five can be attributed to malnutrition as an underlying cause, and two billion people worldwide suffer from vitamin or mineral deficiencies.
The WWF report cited a number of challenges to food security in SA: smallholder farmers without support; market dominance squeezing out smaller players; and the cost of healthy food as key hurdles to food security.
In addition, the impact of climate change, population increase, and food demand was likely to place serious demands on the food system.
“There will be a doubling of demand for certain products – meat and dairy included – by 2050. How will we meet this? It can’t just be about more production. We need a complete transformation to a system so that it nurtures human health and the environment,” said Von Bormann.
The WFP said that its Fill the Nutrient Gap tool was being used to engage with stakeholders on nutrition strategies in terms of market access and offers, dietary practices, nutrient intake gap of key target groups and affordability of a nutritious diet.
The organisation’s 2018 Global Nutrition Report puts stunting (chronic malnutrition) at 27.4% for South African children under five (2015 statistics).
That report also found 5.6% of children under five in SA were wasting.
The WWF said that progress in food security was not limited to the actions of any single role player.
“Progress must be cross-sectoral and made on all levels more or less simultaneously. WWF advocates that the necessary transformative change will be driven by inclusive regenerative farming, optimal water use, responsible sourcing, reducing food waste and dietary shift,” said Von Bormann.
Climate change
South African policy highlights the risk of the impact of climate change on food security.
“Climate change has the potential to reduce food production and the availability of potable water, with consequences for migration patterns and levels of conflict,” says the National Development Plan Executive Summary.
It adds that the effect of climate change will have a disproportionate impact on “the poor, especially women and children”.
The NDP has the goal of creating a food surplus, with one-third of supply produced by small-scale farmers.
Download the WWF report here.
A spokesperson for the Department of Agriculture, Fisheries and Forestry was not immediately available to comment on the report on Tuesday.
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The global financial crisis (GFC) saw real interest rates fall to all-time lows as central banks aimed to stimulate economic activity. The effectiveness of such low real rates depends, to a large extent, on the neutral real interest rate — popularly referred to as r-star. Monetary policy is considered expansionary when real interest rates are below r-star, and vice versa. However, the challenge arises from the fact that r-star is unobservable. This paper estimates r-star in the spirit of the popular Laubach-Williams (LW) methodology, but adapts their approach to capture the dynamics of a small open economy. This is achieved by incorporating additional drivers of the neutral rate, such as domestic net savings and investment, South Africa’s country risk premium, and the potential growth rate of our trading partners. In addition, foreign linkages like the exchange rate and international commodity prices are included to capture the impact of developments in the rest of the world on South African growth and inflation. The results suggest that South Africa’s r-star has fallen less than in advanced economies — from an average of 4.4 per cent from 2000 to 2006 to 1.9 per cent in 2017Q4.
Jason Rohde’s mother begs for lenient sentence for son, Zimbabwe’s opposition official as been convicted on false declaration charges, and seven British Labour Party MPs resigned days before the parliamentary Brexit vote.
Here are some of our top picks for the day:
Bosasa confirms its liquidation after banks pull out
African Global Operations, known as Bosasa, has confirmed in a statement that the company is under voluntary liquidation after their bank communicated a decision to close down the company’s banking facilities.
Be lenient to my ‘good, kind, loyal’ son – Jason Rohde’s mother asks court
The mother of convicted wife killer Jason Rohde has asked the Western Cape High Court to think about his three daughters and pass a lenient sentence.
Sanco calls for civic action to stop ‘devastating’ Eskom tariff hike
The civic organisation released a statement on Monday in which it rejected Eskom’s request for a 15% tariff hike. The energy regulator has held public hearings about the tariff hike between January and February in various provinces around the country.
Hungry lion on the loose, organisers forced to move Beaufort West marathon
Residents Beaufort West have been warned about a hungry lion roaming the area, after it escaped from the Karoo National Park.
Caster upset at IAAF’s press release
South African athlete Caster Semenya has expressed her disappointment at a press release issued by the world athletics governing body.
DA goes to the cops after yet another billboard vandalised
The DA is turning to the police for help after after yet another one of its billboards, bearing the words “ANC killed the lights”, was vandalised in the Johannesburg CBD.
Hollywood star with new show on local TV is obsessed with everything SA
Hollywood star Jerry O’Connell is starring in a hilarious new comedic crime-drama that takes the whole procedural TV format and has a lot of fun with it.
Are the Hawks targeting Ramaphosa with MTN case?
President Cyril Ramaphosa’s hardcore anti-corruption stance will soon be tested as a case involving alleged bribery during his reign as MTN chairperson heads to court, writes Adriaan Basson.
Zimbabwe opposition official Tendai Biti convicted of false declaration
A Zimbabwean court has convicted prominent opposition politician Tendai Biti for announcing that his party’s leader won disputed elections held in July.
WATCH: 7 MPs leave UK’s Labour Party days before crucial Brexit vote
Seven MPs from Britain’s opposition Labour Party have resigned in protest at the party leadership, just days before crucial parliamentary votes on Brexit.
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ANC president Cyril Ramaphosa has taken it upon himself to help bring about unity and stability in the embattled North West province.
ANC acting spokesperson Dakota Lekgoete confirmed that Ramaphosa would be part of a rapid response team (RTT), established two weeks ago, which includes national executive committee (NEC) members Nkosazana Dlamini-Zuma, Sdumo Dlamini and Jessie Duarte.
“He is the chief custodian of the constitution of the ANC and conference resolutions, the resolution of unity and renewal programme of the ANC,” Lekgoete told News24.
He said the North West ANC was one of the party’s problem areas and that Ramaphosa would be able to use his experience as a skilled negotiator and mediator to assist to bring about stability.
‘It was like Kaizer Chiefs and Orlando Pirates in there’
The ANC’s NEC has been holding a special meeting and election workshop over the past two days. The meeting was held to discuss its candidate lists for the National Assembly and provincial legislatures but it also focused on developments in the platinum-rich province.
“It was like Kaizer Chiefs and Orlando Pirates in there,” said one NEC member, who spoke to News24 on condition of anonymity.
“He (Ramaphosa) stood up on his own in the meeting, volunteering to form part of the team negotiating to resolve the tension”, continued the source.
The party insider said it was the best approach to deal with the protracted battle between ANC North West chairperson Supra Mahumapelo, his provincial executive committee (PEC) and the NEC.
READ: ANC NEC to decide the fate of the North West’s executive committee, task team
The party’s highest decision-making structure in between conferences also instructed warring groups in the North West to work together.
Mahumapelo was stripped of his powers by the NEC in August last year. A provincial task team (PTT) was appointed to run the organisation in the province in the interim.
However, he approached the Gauteng High Court to challenge both NEC decisions to remove him and to form a PTT. The court ruled in his favour.
Later, he went back to the court after an order for him to return to work within two days was disregarded. The court granted an enforcement order in terms of which he had to be reinstated urgently.
The ANC announced last week that it was appealing both judgments.
An NEC member told News24 that there was some confusion when the secretary general’s office delivered a report on the issue on Sunday. Some members argued that the embattled chairperson should be allowed back while others insisted that with an appeal under way, the order for Mahumapelo to return to his office should be suspended.
PEC and PTT instructed to work together
Lekgoete said the provincial task team and the PEC must work together towards finding solutions.
Their roles in the province would be collapsed and the ANC would establish a provincial elections team which will take over getting the province ready for the elections
“We are not asking, we are instructing them. We have an NEC decision that both will be engaged by the rapid respond team and while the political solutions engagement continues the provincial election team will take over the process of preparing for the elections,” said Lekgoete.
The NEC has also asked all its party members in the North West to reach out to communities and campaign ahead of the looming polls.
Lekgoete said the peace talks would develop some sort of structure for a new PTT once a solution has been found.
The secretary general’s office was also asked to include the appeals process in its report and to present it again on Monday.
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ANC spokesperson Pule Mabe has been cleared of sexual harassment charges by the party’s grievance panel, City Press reported. He was accused by his former personal assistant of three instances of sexual harassment, but the panel was reportedly not impressed with her evidence.
News24 reported last year that Mabe had requested to be placed on leave pending the outcome of the internal investigation into the woman’s allegations. The woman apparently said Mabe treated her badly after she complained about his alleged advances, and that her salary was cut because of it. Mabe, in turn, said the complaint against him was motivated by the salary cut.
The woman has also laid charges against Mabe with the police. Eyewitness News (EWN) reported last year that the Hawks had taken notice of the case, although it had not been given to them at that stage.
The Sunday Times reported that Mabe said the woman’s “poor performance” had led him to start making inquiries about her qualifications. He reportedly discovered that she had allegedly lied about this on her CV and her salary was therefore cut.
The woman reportedly claimed that on one of the occasions when she was allegedly sexually harassed, Mabe entered her bed while she was asleep and got under the blankets, putting his legs on top of hers. Mabe denied this.
According to City Press, the panel, chaired by ANC national executive committee (NEC) members Thoko Didiza and Sdumo Dlamini, found that Mabe’s version had been corroborated by witnesses. The matter is reportedly expected to be challenged at the NEC’s meeting on Sunday, as the woman’s supporters feel the panel’s handling of the matter was unfair.
The panel has apparently recommended that the woman should be moved to a different department at Luthuli House, and that the ANC should adopt a sexual harassment policy. The panel also wants both parties to go for counselling, and has warned against the use of staff or managers’ rooms as meeting venues, as allegedly occurred with Mabe and the woman.
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