JOHANNESBURG – UDM leader Bantu Holomisa has filed papers in the Constitutional Court, seeking to ensure a secret ballot during Parliament’s vote of no confidence.
Speaker of Parliament Baleka Mbete had previously turned down the UDM’s request.
Cape Town – South African Social Security Agency (Sassa) CEO Thokozani Magwaza has trashed claims by Minister of Social Development Bathabile Dlamini that she was unaware of problems with the handover of the social grants payment system to Sassa until October last year.
In an affidavit to the Constitutional Court filed on Friday, Magwaza denies several of the assertions made by Dlamini in her own affidavit to the court the previous week.
Dlamini was responding to an order by the court to show why she should not be personally joined in the application brought by the Black Sash and others over the failed takeover of the social grant payment system from Cash Paymaster Services (CPS), and why she should not pay the legal costs from her own pocket.
In her affidavit she expressed her “personal contrition and regret” for the anxiety caused to social grant recipients following Sassa’s failure to take over the social grant payment system as planned on March 31, in line with previous court orders.
But she mostly blamed Sassa officials for the failure, insisting that she had not wilfully intended to put the payment system at risk, or to disregard any court order.
She said that although Sassa officials had known by April 2016 that Sassa would not be able to take over the payment system, she had not been informed until “after October 2016”.
She said Sassa officials had not provided her with legal advice that they had received from four advocates, “and I was therefore not aware of the extent of the difficulties that Sassa was in, in the face of the looming 31 March 2017 deadline”.
Magwaza, a former acting director-general of the Department of Social Development who took over as Sassa CEO on November 1, 2016, applied to the court for permission to offer his own version of events and has now filed his affidavit.
He says that the process of taking over the payment system by Sassa was “derailed” by the minister, who chose to appoint “work streams” which reported directly to her.
He attaches a July 2015 letter from Dlamini to then-CEO of Sassa Virginia Petersen, in which Dlamini announces the leaders of the work streams – Andile Nyonyha, Tim Sukazi, Tankiso Parkies, Sizwe Shezi and Patrick Monyeki. The panel, to be appointed for three years, was to report directly to her, Dlamini told Petersen.
Magwaza says that from before his appointment until today the work streams “take instructions from and report to the minister directly”.
“I need to make the point that since July 2015 the minister understood the issues, was in control of the process and knew or ought to have known of all developments in this important process and matter,” he says.
It was Sassa officials
He denies that the minister “engaged with Sassa” over possible options as she claimed.
“I wish to clarify that there is no record of the minister engaging with Sassa to consider available options and solutions to ensure that social grants were paid subsequent to the termination of the contract with CPS.”
It was Sassa officials, and officials of the National Treasury and the Department of Social Development, who explored alternative options, Magwaza says.
But Dlamini “was determined that an internal solution will not be found” and she was against the use of local banks and the SA Post Office, in spite of indications by the National Treasury and the SA Reserve Bank that this would work.
Instead she was “adamant” that CPS should continue to pay the grants after its contract with Sassa expired on March 31.
“To date I have difficulty understanding why the minister was adamant that CPS be used,” Magwaza says.
He says he has approached Zane Dangor, former director-general in the Department of Social Development, and “prevailed upon him” to file an affidavit countering Dlamini’s claims. Dangor has undertaken to file documents by Monday evening, Magwaza says.
Cape Town – University of Witwatersrand vice-chancellor and principal Prof Adam Habib as been reappointed for a second term.
His contract has been renewed for five more years, starting 2018, the university said on Saturday.
Dr Randall Carolissen, chairperson of the council of the university, said in the past few years, Habib had enhanced the university’s research and innovation standing.
“Professor Habib is a dynamic leader with immense experience in managing higher education institutions within South Africa’s complex political and socio-economic context,” he said in a statement issued on Saturday.
He said the university had recorded tremendous achievements in the last few years, despite the challenges faced in recent months.
“Despite the student protests pertaining to funding issues, the University made incredible strides,” he said.
The university said that under Habib’s leadership, Wits’ global reputation had been enhanced and the quality of teaching and support offered to students had improved.
“These are just some of the examples that reflect the significant contribution that Professor Habib and his team have made to Wits in recent years,” Carolissen said.
“In addition to subsidy from the state, he has ensured that Wits continues to secure additional resources from donors for teaching and research. Student funding is a priority and Professor Habib and his team are working to maximise income through creating an endowment for student funding from the possible development and/or sale of land owned by the University.”
The university was stronger than it had been in 2013, he said.
Given Habib’s performance, they had agreed to review his contract for a second term.
“These achievements are not the sole consequence of the vice-chancellor but that of the entire university community. However, under his leadership, he has created the conditions to enable these accomplishments,” Carolissen.
Johannesburg: Military expert Helmoed Heitman said it was worrying that Minister of State Security David Mahlobo had not seen the intelligence report which was instrumental in President Zuma firing finance minister Pravin Gordhan.
Heitman said, “If the minister in charge of intelligence services has not seen a report which resulted in destructive actions, then either he’s not doing his job or the report did not come from intelligence services.
If it didn’t come from intelligent services, where did it come from .”
PRETORIA – Mamelodi Sundowns’ 2017 Nedbank Cup hopes were ended abruptly with a 1-0 last 16 defeat to Golden Arrows at the Lucas Moripe Stadium on Saturday afternoon.
It proved to be a tight game with little to separate the two sides, apart from Nduduzo Sibiya’s fine finish midway through the second half which earned Clinton Larsen and his men the victory against a Masandawana side which never really fired on all cylinders on the day.
Sundowns’ best opportunity arrived after only seven minutes when Thapelo Morena’s first touch in the Arrows box brilliantly took him in on goal, but his second touch resulted in a wild shot being blazed over the bar when a low strike into the far post would have done the job.
Arrows were guilty of a similarly bad miss on the half hour mark when following a superb cross from Nkosinathi Mthiyane, midfielder Sibusiso Sibeko badly miscued his volley from six yards out.
Other than that Abafana bes’Thende keeper Nkosingiphile Gumede did well to ensure Khama Billiat was unable to squeeze a shot in at the near post, while Sundowns goalie Kennedy Mweene was not overly tested by Lionel Mutizwa’s low drive in first half added time.
The Brazilians were the ones creating scoring opportunities after the restart, but Tebogo Langerman fired straight at Gumede, who also made a good block to keep out Percy Tau, while Hlompho Kekana dragged his finish wide of the far post when a goal looked on.
But it was at the other end of the field that the deadlock was finally broken, on 65 minutes, Sibiya underlying his great promise after he cleverly went past his man, ran in on goal and then beat Mweene with a cool and composed effort in at the far post.
Billiat had late chances to force the game to extra time, but headed wide at the back post and had another effort blocked as Arrows defended valiantly to book their spot in the next round.
Cape Town – Thousands of protesters demanding the resignation of President Jacob Zuma took to the streets in pickets, marches and human chains across South Africa on Friday.
With their home-made posters and T-shirts and waving the South African flag, people shouted, “Zuma must go”, and “Zuma must fall” as motorists hooted in support.
Many were protesting for the first time ever in civil action sparked by Zuma’s Cabinet reshuffle, which saw the finance minister Pravin Gordhan and his deputy Mcebisi Jonas fired. The rand fell against the US dollar and S&P and Fitch downgraded the country’s credit ratings to “junk status”.
Defence Minister Nosiviwe Mapisa-Nqakula put the number of marchers at around 60 000 countrywide. Bloemfontein, Durban, Mbombela, Port Elizabeth, Johannesburg, Pretoria, and Cape Town were the main centres of marches.
She said data was still coming in, but at least one person had been arrested. She praised the protesters and the police for the mostly peaceful gatherings. She commended marchers for picking up litter afterwards.
The ANC said there had been no internal discussions about Zuma heeding the call to step down.
About 500 protesters made their way to the home of the Gupta brothers in leafy Saxonwold, Johannesburg, late on Friday.
Netwerk24 photographer Felix Dlangamandla was on the scene when pro-Zuma Black First Land First representatives shouted at anti-Zuma protesters and police fired stun grenades to separate the two camps.
In Johannesburg, four people were hit by rubber bullets. Another person suffered serious injuries during an attack, allegedly by ANC supporters, at Beyers Naude Square, near ANC headquarters Luthuli House.
Outside Luthuli House, camouflaged members of the party’s former military wing, Umkhonto we Sizwe, claimed to be protecting the building from anti-Zuma marchers.
In Pietermaritzburg, anti-Zuma picketers and about 200 ANC Youth League supporters clashed at City Hall. Police threw stun grenades at ANCYL members who were destroying a gazebo erected by the DA and throwing eggs at the demonstrators. One ANCYL member was arrested.
About 12 000 people marched in the centre of Cape Town. Smaller pickets took place along routes around the city, such as along the Table View beachfront and Newlands.
Some stone throwing and tyre burning were reported along Robert Sobukwe Drive and Valhalla Drive, although it was not immediately clear if it was protest-related.
President Jacob Zuma lay low for the day, but his deputy Cyril Ramaphosa said people had the right to march.
“We live in a democracy, so people have the right to express themselves. Freedom of speech, freedom of action, as long as this happens peacefully,” Ramaphosa told News24.
“We live in a free country,” he said. Following Zuma’s Cabinet reshuffle, he said he found it difficult to accept claims that Gordhan could be involved in a plot to destabilise the country. This was apparently contained in an “intelligence report” Zuma relied on to justify sacking him.
DA leader Mmusi Maimane told a gathering at Mary Fitzgerald Square in Johannesburg that Zuma, and not the country, was “junk”.
“We cannot wait for the ANC to self-correct. We need to forge a new path, and decide our own destiny,” he said.
In Polokwane, police used rubber bullets and teargas to disperse disgruntled Seshego residents who had blocked roads and forced shops to close as they joined the nationwide protests.
Meanwhile in Port Elizabeth, thousands of Nelson Mandela Bay residents gathered at the Vuyisile Mini Square outside the Port Elizabeth City Hall on Friday in solidarity with protesters around the country who took to the streets to call for Zuma to step down.
A festive atmosphere prevailed as many protesters danced to songs played over the PA system as they waited for the formal activities to begin.
The crowds were addressed by various speakers, facilitated by SaveSA co-organiser Mkhuseli Jack.
Among those who spoke was 17-year-old matriculant, Luthandolwethu Maboniswa, who became emotional as she called for Zuma to do the honourable thing and resign.
“This is a man who no longer knows between right and wrong, a man who does not care about the people.
“We can no longer stand by and let out country go to the dogs. We will not be silenced, we will not be intimidated and we will not allow corruption to rule over our beautiful land,” Maboniswa said through tears, to thunderous applause from the crowds.
Former Zuma allies such as Zwelinzima Vavi, Mosiuoa Lekota, and Save SA leader Sipho Pityana were at the various events.
JOHANNESBURG – Fitch ratings agency has downgraded South Africa‘s foreign and local currency ratings to sub investment grade, or junk status.
The agency says the country’s long-term ratings downgrade follows recent political events, including the Cabinet reshuffle, which Fitch believes will weaken standards of governance and public finances.
“In Fitch’s view, the cabinet reshuffle, which involved the replacement of the finance minister, Pravin Gordhan, and the deputy finance minister, Mcebisi Jonas, is likely to result in a change in the direction of economic policy.
“The reshuffle partly reflected efforts by the out-going finance minister to improve the governance of state-owned enterprises (SOEs). The reshuffle is likely to undermine, if not reverse, progress in SOE governance, raising the risk that SOE debt could migrate onto the government’s balance sheet,” the agency said in a statement.
Fitch said differences over South Africa’s nuclear programme may have contributed to Zuma’s cabinet reshuffle.
“Under the new cabinet, including a new energy minister, the programme is likely to move relatively quickly. The state-owned electricity company, Eskom, has already issued a request for information for nuclear suppliers and is expected to issue a request for proposals for nuclear power stations later this year.
“The treasury under its previous leadership had said that Eskom could not absorb the nuclear programme with its current approved guarantees, so the treasury will likely have to substantially increase guarantees to Eskom.”
Fitch said this would increase contingent liabilities, which are already sizeable.
“The new finance minister has stated that he does not intend to change fiscal policy and remains committed to expenditure ceilings that have been a pillar of fiscal consolidation.
However, Fitch believes that following the government reshuffle, fiscal consolidation will be less of a priority given the president’s focus on “radical socioeconomic transformation”.
This means that renewed shortfalls in revenues, for example as a result of lower than expected GDP growth, are less likely to be compensated by expenditure and revenue measures. This could put upward pressure on general government debt, which at an estimated 53% of GDP at end-March 2017 was already slightly above the ‘BB’ category median of 51%.”
Fitch said it believed that political energy would be absorbed by efforts to maintain party unity and fight calls for the president to step down.
It says if the country’s investment climate improves and there’s growth, the next review could be positive.
Fitch is the second rating agency to downgrade the country to junk status after Standard and Poor.
JOHANNESBURG – The SAPS conducted a search at the business premises of forensic investigator Paul O’Sullivan on Friday as part of an ongoing investigation.
Police spokesman Major General Sally de Beer said O’Sullivan has already appeared in court on this matter and the case was remanded to 19 May.
“The search was conducted in terms of a lawful search warrant which was produced to O’Sullivan’s attorney on the scene and involved on-scene extractions from certain electronic devices by forensic experts,” said De Beer.
De Beer said O’Sullivan was not present because he was not in the country. She said that the investigating officer was not informed of him leaving the country, which was a contravention of one of his bail conditions.
This would form part of the investigation and will be placed on record in court, she said.
“The SAPS must emphasise that no individual is above the law and that the police will continue to investigate without fear or favour. No person was taken into custody,” De Beer said.
O’Sullivan is currently under investigation and before the courts in connection with four other cases relating to various charges of fraud, extortion, kidnapping and one in terms of the Immigration Act, she said.
“Three of these cases have been set down for trial and one has been remanded with a trial date yet to be set. In three of these cases, members of the public are complainants.
Ministers holding a press briefing on nationwide protests said South Africans exercised their rights to march peacefully and thanked them for doing so. Police were also commended for protecting citizens.
Mapisa-Nqakula says it is not the first time where ordinary citizens generate intelligence reports. Give ministers space to investigate this.
Mapisa-Nqakula says it is not the first time where ordinary citizens generate intelligence reports. Give ministers space to investigate this.
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Police fired stun grenades to break up a hostile shouting match between pro- and anti-Zuma demonstrators outside the Saxonworld home of the Gupta brothers who own Oakbay Investments and have been accused of manipulating Cabinet appointments.
According to Netwerk24 photographer Felix Dlangamandla about 20 pro-Zuma Black First Land First (BLF) and about 500 anti-Zuma supporters almost came to blows outside the Johannesburg estate.
BLF supporters were shouting ”one settler, one bullet”, and accused the anti-Zuma protesters of benefiting in the past through land that was taken away from them.
As the altercation became more heated, police asked them to leave the leafy suburb, and then set off stun grenades to clear the area.
The house was guarded by private security, and police had come out from Norwood and Rosebank to assist the Public Order police.
The Gupta brothers Ajay and Atul have allegedly been having a behind the scenes say in who President Jacob Zuma appoints as Cabinet ministers, according to claims that have not been tested in court.
The South African Reserve Bank (SARB) has noted the decision by ratings agency Standard & Poor’s (S&P) to lower the ratings of seven of South Africa’s commercial banks to sub-investment grade.
The downgrading of banks is directly related to last week’s decision by S&P to cut South Africa’s foreign currency denominated debt to sub-investment grade. The sovereign rating acts as a ceiling and the rating of banks cannot be above that of a sovereign.
The SARB would like to reiterate that South African banks are adequately capitalised to deal with the effects of a cut to a sub-investment grade. South African banks were last year subjected to a common scenario stress test, including a macroeconomic scenario that entailed excessive financial market volatility and risk aversion. The results of the stress test showed South African banks to be adequately capitalised to withstand significantly adverse scenarios. The resilience of the banks stems from the high capital buffers that prevail in the South African banking system.
Overall, the South African financial system remains healthy, robust and resilient despitesome headwinds caused by elevated levels of domestic economic, financial and political events, as well as global financial market volatility.