THE SMART NEWS SOURCE | Feb 10 2010 06:11 | LAST UPDATED Feb 10 2010 06:11 |
|
Twenty-seven members (42%) of President Jacob Zuma’s new executive -- including himself -- are registered on the database of the companies and intellectual property registration office (Cipro) as having private business interests. But a number of them, notably business mogul and now Minister of Human Settlements Tokyo Sexwale, have already undertaken to resign from all directorships while serving in government. After Zuma’s appointment of his Cabinet and deputy ministers last Sunday the Mail & Guardian inspected Cipro’s database and found that 27 ministers and deputies are registered as active directors or members of 184 companies and close corporations. Tokyo Sexwale The appointment of Sexwale has invigorated the debate about conflicts of interest between ministers’ business and official duties.
He was ranked South Africa’s 20th richest individual worth at least R1,3-billion in the Sunday Times’s 2008 Rich List, although his net worth has decreased significantly since the financial crisis bit. Sexwale stepped down as executive chair of the Mvelaphanda Group on Tuesday this week.“I cannot work in the private sector. I am fully focused on my responsibilities as minister ... I will be departing as chairman of Mvelaphanda and will not be on any boards,” Sexwale said. His spokesperson, Chris Vick, confirmed on Thursday that Sexwale was committed to stepping down from the boards of all 43 entities of which he is a listed director. This included non-Mvelaphanda interests such as Fernwood property development and the family companies of former president Nelson Mandela, Magnifique and Harmonieux Investment and Holdings. “Mr Sexwale’s position in relation to his equity investments will be clarified in a comprehensive statement by the end of the week,” said Vick. It has been speculated that his shares will be transferred to a blind trust over which he has no control. The question remains whether Sexwale will continue to benefit from the trust’s investments, which could include Mvelaphanda’s shareholding in construction giant Group Five. Group Five has extensive contracts with government departments, including Sexwale’s new housing portfolio. Enoch Godongwana Deputy Public Enterprises Minister Enoch Godongwana is listed as a director of 24 companies, including the state-owned defence industrial group Denel, Real People Assurance Company, Chintsa River Development and the Pan African insurance group. Godongwana, a former Eastern Cape finance minister, told the M&G he was resigning from all directorships. “In a month’s time you won’t find my name on any board,” he said. A few of his companies are dormant and one company is unknown to him. Joe Phaahla Twenty-one companies listed on Cipro have the new Deputy Rural Development and Land Reform Minister Joe Phaahla listed as director. They are mainly mining companies belonging to the Siyaya mining group. Others include insurance firm Glenrand MIB, a Northern Cape mining entity called Namaqua Wollastonite, Vutomi Pharmaceutical Distributors and African Pride Capital. Phaahla, previously director general for the 2010 Fifa World Cup, did not respond to the M&G’s questions about his businesses and potential conflicts of interest. Hlengiwe Mkhize New Deputy Correctional Services Minister Hlengiwe Mkhize is a director of 15 private companies, most prominently the Centurion-based defence company, Aerosud, which has benefited substantially from arms deal offsets. Mkhize said she has resigned from the boards of Aerosud Aviation and Aerosud Holdings, but will remain a shareholder in the company “and accordingly declare my interests”. Her other interests include Gosa Technologies, Origami Consulting and Sishayela Phezulu Investment Holdings. Mkhize, a former truth commissioner, said three of the registered entities were shelf companies and the rest “were owned by BEE participants who invited me to cooperate and no formal agreements materialised”. Sicelo Shiceka Minister of Cooperative Governance and Traditional Affairs Sicelo Shiceka is listed as a director of 11 entities, but is unsure of their status. His interests include a number of shelf companies and Kara Agri-Business Consultants, the Fourways Gardens Laundry and Uzusakhe Fishing and Oil. “No conflict of interest has been identified as I am not an executive director in the companies, neither am I involved in their operations if any are operational. I understand they are largely dormant,” Shiceka said. He said he has started establishing the entities’ status and will resign if conflicts of interest are identified. “I was never actively or operationally involved with these companies.” Shiceka said he will resign from dormant companies and stay as a “passive partner” in firms that do not conflict with his official duties. Pecan trees, security and construction Deputy Social Development Minister Bathabile Dlamini has undertaken to resign from the nine entities she has interests in “to give full attention to her current post”. Zou Kota, who is Sexwale’s deputy, said the eight companies she is linked to “don’t bring in a cent” and “have nothing to do with human settlement”. She has, however, resigned from the board of empowerment giant Sekunjalo Investments because of time constraints. Deputy Minister of International Relations and Cooperation Ebrahim Ebrahim said he is a “silent partner” in four of the seven companies listed under his name and that the construction industry, in which they operate, poses no conflict. Communications Minister Siphiwe Nyanda is on Cipro’s records as director of seven companies. But Nyanda said he has resigned from four, including arms firm Ngwane Defence; one was de-registered; and GNS Risk Advisory Services posed no conflict. Nyanda’s position as Public Investment Corporation director could cause a conflict. The PIC has a 13% stake in Telkom, which will be influenced by his department’s policy decisions in the telecommunications sector. Minister of Agriculture, Forestry and Fisheries Tina Joemat-Pettersson owns a 50% stake in Fire Ring Trading 7, which trades in financial and healthcare shares, while her deputy, Pieter Mulder, has financial interests in two pecan nut farms. Mulder said it was “very unlikely” that his business interests would lead to a conflict of interest. Minister of Energy Dipuo Peters is de-registering her company, Lelate Consulting and Investments, while Public Service and Administration Minister Richard Baloyi has interests in three entities, but has decided to withdraw from them. “[I] aim to walk the talk.” Presidency spokesperson Thabo Masebe refused to be drawn on the nature and activity of Zuma’s only registered entity, National Pride Trading 259, and Dakawa Properties, of which Deputy President Kgalema Motlanthe is a director. “They are not involved in any other business than serving the people of the country. Their every minute and every hour is spent on government business,” he said. TOPICS IN THIS ARTICLE
Comments
Mo Mo on May 15, 2009, 11:00 am
you know, in the countries to which south africa wishes to compare itself, if you know that you are going to be named to a cabinet position, you put your assets in a blind trust before the nomination even happens.
but that said, in many of these same countries, the parliament assesses your suitability to hold the office before you even start the job. neither of those things are true in the case of south africa. hm.
Tokunbo Olowokandi on May 15, 2009, 11:50 am
Maybe the people in high places don't quite understand what "conflict of interest" realy means. Merely resigning as a director is no good - they must shed their shareholding. Shareholdres are the ones who really benefit from business.
Jay Jay
Jay Jay le Roux on May 15, 2009, 1:05 pm
The President has to insist that none of ministers have private interests. They are in a responsible position as public servents and should not have accepted this role if they were preoccupied with accumalating wealth.
Thank you Mr Sexwale - you are obviously a man of substance!
Concerned Citizen on May 15, 2009, 1:15 pm
A blind trust fund is a good idea, and I am surprised you dont have it in SA already.
In the UK, we have a lot of MPs fiddling their expenses, but we also have an audit, and when discovered they are ordered to pay it back, and so far seem to be doing so. Compare what happened with yout "Travelgate" expenses. Corruption and Greed is always going to present but their seems to be a difference in enforcement and moral obligations when caught in SA who seem to be of the impression that they just deny everything and then wait for the authorities to give up trying to get them to pay it back.
Alisdair Budd on May 15, 2009, 1:51 pm
People!, please let us have historical information on these issues, i.e. did former president appoint clean people without any business interests in South Africa? Otherwize, president Zuma must applaud and appreciate the media for keeping him popular. It assisted the ANC in winning this year's elections. I mean writing about him all time, sometimes, unncessarily.
Rat@ Nka ZN on May 15, 2009, 2:18 pm
This is a clear picture of things to happen. A recipe of disaster. Government kick backs has to be muzzled as soon as now. My advice to this coming administration is to put in place tough laws that will protect tax payers from all evils that is waiting to happen. In fact everybody got to be on the look out, because deploying this business men and women in government affairs simply does not mean that their ties with business world is done. They will all lie low and wait for a cut from the national cake. We all know that most of them have been cashing in on tenders and bribes. That has to stop completely or else we are all going down. It is time to wake up and do the right thing. Trust but verify at all times.
Kranfy Mabotja on May 15, 2009, 5:12 pm
"How on earth is there going to be an even distribution of wealth and resources throughout our country!"
Mo Mo, Affirmative Action and Black Economic Empowerment were never designed to create even distribution.
Calvin C on May 15, 2009, 5:34 pm
Why are you resigning? I dont see any problem as long as you're not involved in the adjudication of tenders. I believe you all know that politics have no future...ask Niehaus. We dont wanna see our former leaders eating in the bins.
Siphiwo Siphiwo, service delivery now on May 15, 2009, 8:10 pm
Look on the bright side, the people running the country will do their best to make more money. They will at least attempt to keep the economy stable/growing and hopefully prevent us from becomming another corrupt banana republic.
10 out of 10 for our 'people's president' Zuma for his contribution to Black Elite Enrichment.
Dapper Dan on May 16, 2009, 7:34 am
What other countries do and what past corrupt regimes in South Africa did about potentially compromised politicians is totally immaterial to this situation. The whole of Africa needs to set its own standards for integrity which help us get over a really poor legacy of bribery, corruption and self-seekind politicians, it can't just afford to commit itself to some 'minimal' standards. We have set the stage with our consitution, our new legislation etc to be a leader, not just a follower. Our politicians need to be squeaky clean, not just run-of-the-mill! We also have huge inequalities in wealth and power which cannot be resolved by politicians who are able to be manipulated easily.
Andrew Lawrence on May 16, 2009, 8:10 am
Can someone please tell me how the previous head of SANDF, Nyanda got away with having interests in an Arms brokerage firm Ngwane? There's a major conflict of interest right there. "Ooooh we need lots of weapons.. Let's buy it from MY company at THIS price." It was during his tenure that the controversial arms deal was signed. He was among those most vocal in calling for the Scorpions’ demise. Now we know why... And does the man even know what ADSL is? Yes, lots of little piggies at the trough!
Maylani Bezuidenhout on May 16, 2009, 1:40 pm
Note that some of these people don't even seem to know much about the companies to which their names are attached. This all makes a thorough mockery of the concept of work. A huge percentage of South safricans do not have even the most basic employment. Another point is that the 'crony money' is unproductive money. It contributes nothing to the production factor in the economy. Compare this with a panel-beater's wages, or the wages of a brick-layer. That money is hard-earned through productivity, and it both remunerates the worker and contributes to the production factor. These cozy BEE directorships dished out to cronies in government are nothing but economic top-hamper. We'll only see real growth again when this dross is all shaken out (if it ever is).
Citizen Mntu on May 16, 2009, 2:05 pm
Your People are blinded by emotions that you fail to see the naked truth. Only in South Africa is this an issue. Is there any fradulence in having personal interests in businesses if you work for Government? i challenge you to research it first prior to stirring the pot with your weak unfounded accusations. the problem only arrises when one does not "declare" their business interest. it seems to me that with very little knowledge we are quick to pull the the trigger without a firm understanding of politics, business & the law. no wonder we all can't be leaders. take a look at former USA President George Bush & his administration, did they step down from their respetive seats in business? i think not. i'm not in any way shape or form promoting that only a certain bunch prosper while others don't however this is the crab in the barrel concept.one comes up & rest pull it back down. these men & women have to go through ceratin procedures & protocal prior to anything else,there are systems in place to detect,remedy & deal with this sort of thing.have faith in our systems or rather then YOU create job opportunities & expand our economy.all these years prior you've been quiet & yet now all of a sudden it's wrong. what are you saying? Are you saying Blacks are incompetent to run the country???????????Mayibuye
Mayibuye iAfrika on May 18, 2009, 12:19 am
click here to log in
M&G Online Comment Guidelines In Brief
Advertising Links
|
2,3-million titles to choose from.
iPod nano 16GB - Black, Was R2,499.00 Now R2,299.00! Save R200!
46 000 DVDs and Blu-Ray on sale now!
100s of new releases now in stock. Get the new Sade & Bon Jovi albums.
Widest toy range and unbeatable prices!
AdvertisementsAdvertising links |
||||||||||||||||||||||||||||||||||







I am also apalled at the fact that these government officials own and run up to TWENTY companies, there seems to be a flaw in our economic system! How on earth is there going to be an even distribution of wealth and resources throughout our country!
I'm just not comfortable with the fact that a vast majority of South Africans live in absolute poverty, while an affluent minority continue to hoard everything to themselves! It's rediculous...