Daily News Bulletin – No 245 September 02, 2010 | South Africa

The contents, wording and terminology of all items are those of the credited sources and do not reflect departmental or governmental policy. Stories may be edited for clarity and length.

THE PRESIDENCY & INTERNATIONAL RELATIONS

President Zuma under fire over Oilgate scandal (www.iol.co.za, 20100901) – President Jacob Zuma was again accused by the opposition on Wednesday of covering up the involvement of senior ANC officials in a scandal that saw companies pay bribes to the regime of Saddam Hussein to secure contracts under the United Nations Food-for-Oil Programme. President Zuma said in reply to a parliamentary question that he would not extend the lifespan of the Donen Commission, which probed the role of South African companies in the so-called Oilgate scandal, nor would he release its findings. He said local companies which allegedly paid illicit surcharges to the Iraqi regime could not be prosecuted under South African law, and therefore the final recommendations of the commission “will be academic because no individual or companies will be held criminally liable”. “I have been advised that in terms of our domestic law these nationals cannot be prosecuted.” The Donen Commission’s report was handed to then president Thabo Mbeki four years ago and detailed the alleged knowledge senior officials had of shady oil deals with Iraq. The Sunday Times reported last year that the commission had fingered Deputy President Kgalema Motlanthe and Human Settlements Minister Tokyo Sexwale. It said the commission found that Mr Motlanthe, who was ANC Secretary General at the time, was privy to “material information” relating to businessman Sandi Majali’s deals with the former Iraqi regime. The newspaper reported that the commission also cast doubt on a submission by Mr Sexwale that he did not know that Imvume Management, of which he was co-director, had paid money to the Iraqi government. President Zuma said that instead of extending the probe, he would ask the justice minister and the South African Law Reform Commission to review the Donen Commission’s report, along with the international Independent Inquiry Committee that probed the abuse of the programme, and consider changing the law. He said that before he considered releasing the findings of the commission, “the adverse findings made against certain subjects” should be presented to them first to allow them to comment. In 2005, the Independent Inquiry Committee found that Iraq received $1.8 billion in illicit surcharges and kickbacks and that the UN had failed to properly oversee the programme. More than 200 companies were involved in these illicit payments, severely undermining the aims of the programme, which allowed Iraq to sell oil in order to buy food and medicines for its citizens. The Donen Commission was then tasked with probing the truth of UN allegations against Imvume and a number of companies including Glaxo Wellcome SA, Montega Trading and Omni Oil. The probe was also referred to Public Protector Lawrence Mushwana after it was alleged that PetroSA, through Imvume Management, funnelled R11 million of public money to the ANC before the 2004 election. (Back to INDEX)

South Africans stranded in Mozambique after food riots (www.iol.co.za, 20100902) – Hundreds of South Africans got caught up in riots that gripped Mozambique on Wednesday, forcing them to extend their stay in the country and leaving a number of hotels in Maputo scrambling to accommodate those left stranded. Several people were killed when police opened fire on rioters protesting over rising food, water and electricity prices in Maputo and nearby Matola. The rioters brought much of the capital to a standstill. Most people couldn’t get to work, and passengers were stranded in Joburg and elsewhere because Maputo’s airport was shut. Local television station Soico Televisao put the death toll at 10 or more, with at least 11 injuries, though the state news agency, AIM, put the death toll at “at least three”. Euginia dos Santos, of the Hotel Cardoso, said last night: “There’s no way people can get to the airport because roads are blocked. It’s definitely too risky to get to the airport today (Wednesday).” Faced with a fully booked hotel, Dos Santos said some of the guests who could not make their way to the airport because of the unrest had agreed to be moved to twin rooms, to make room for other guests who had already booked rooms they had checked out of yesterday morning. Dos Santos said some rooms remained empty as more guests were stuck at the airport with no way of getting to the hotel. A South African businessman was turned away by police officers as he tried to make his way to Maputo’s airport yesterday, forcing him to miss “an important conference in Joburg”.”Police officers told us to turn back because people were throwing stones at passing cars and burning tyres. I think every businessman has been inconvenienced,” said Julio Dias, of Roodepoort. He said he understood the anger behind the grievances as “there are no unions in Mozambique and there is no formal way for workers to engage the government”. South Africa’s high commission was closed after the violent incidents. South African High Commissioner to Mozambique Dikgang Moopeloa said South Africans planning to visit Mozambique should avoid the N4 between Maputo and Matola. Flights into Maputo by both SAA and the local airline LAN were cancelled on Wednesday.

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AFRICAN UNION (AU) & REGIONAL (SADC)

Development of African agricultural projects attracting investors (www.businessday.co.za, 20100902) – There has been a large positive shift in global investment perceptions towards agriculture in Africa, driven by the global race for resources and food. In addition, many African countries have reformed their economies and have now opened the doors to foreign investment in agriculture. For instance, London-based Silk Investment’s Patrick Lundi says they are investing in agri- processing businesses in seven Africa countries. “Africa is by far the most exciting destination for the people that we talk to, and among those are pension funds in Europe and the US.” These were perhaps the key factors that emerged from a two-day summit about investing in agriculture in Africa this week, held in Durban under the auspices of the African Investor magazine and the Department of Agriculture, Environmental Affairs and Rural Development in KwaZulu-Natal. While these findings are certainly good news for African countries, the elephant in the room — that only a few delegates would speak about in the broadest terms — was the investment risks associated with land tenure and ownership. KwaZulu-Natal’s MEC for Agriculture, Environmental Affairs and Rural development, Lydia Johnson, touched on the issue in reply to a question from the audience. “Land ownership is an emotive issue,” she said, without elaborating. According to KwaZulu-Natal Premier Zweli Mkhize, commercial farmers need to establish “win-win” linkages with their surrounding communities as such an approach would in turn help broaden the security blanket around the farm. Mr Mkhize said the province had the potential to expand agricultural production by 366%. T he agriculture sector contributes 4,5% of the province’s gross domestic product. It was clear from the summit that the question of land ownership is dealt with in many different ways across Africa, and that actual ownership is not even necessary for successful farming to take place. For example, Euan Kay, executive director of AIM-listed Agriterra, said their company had a successful business model that was started in Mozambique more than 20 years ago, using the surplus maize production of about 60000 tons a year. “We do not need to own large tracts of land. We sort out the small farmers with seeds and agronomy assistance … we buy the maize, clean it and mill it,” he said. The financing of agricultural projects in Africa has also become easier with the greater transparency being adopted in many African countries. Lodewyk Meyer, partner of Johannesburg-based law firm Bowman Gilfillan, said financial institutions had changed their outlook on the ability of underlying producers to repay loans, and increasingly banks were using the underlying commodity as collateral. But there was no silver bullet when dealing with the different laws and regulations across Africa. “It is fairly complex, but not undo-able,” he said. (Back to INDEX)

Media briefed about anticipated SADC regional economic integration (www.apanews.net, 20100902) – Lesotho’s Minister of Finance and Development Planning, Dr Timothy Thahane on Wednesday briefed members of the media about the anticipated SADC regional economic integration, and its implications to Lesotho. The Minister said the SADC regional economic integration means the member countries will move to the same level, such as common policies, but before getting there, the countries need to follow some steps that include forming a Free Trade Area, customs union ; common monetary area and common market. Dr Thahane disclosed that SADC has opened an opportunity for producers to sell their products at member countries without paying duties. “In Lesotho, there is a need to work with the Ministry of Trade to establish a bureau of standards so that Basotho produce goods of international standards. In addition, they have to agree on certificates of origin to distinguish Lesotho products from other countries,” he said. Dr Thahane said SADC heads of state and government agreed to form a community, which will consist of common institutions, policies and standards. At the recent SADC summit held in Namibia’s capital, Windhoek, the heads of state and government agreed to consolidate free trade area stage, which was launched in 2008 in South Africa, as a priority. It is anticipated that the regional bloc will have a common monetary area by 2015 and a common market by 2018. (Back to INDEX)

Mozambique riots kill six (www.sowetan.co.za, 20100902) – Two children were shot dead and at least four more people were killed in clashes between police and rioters across Mozambique’s capital Maputo yesterday in protests over rising prices. The protests appeared to have been touched off when the government boosted prices on bread by 30 percent. Police used teargas to disperse crowds and fired live ammunition after running out of rubber bullets, while protesters blocked roads and burned tyres, police said. The violence was the worst in the impoverished southern African country since 2008. Police spokesperson Arnaldo Chefo said that two children have been killed in the suburb of Mafalala. Police officially said three people were killed while hospital and police sources said the death toll was at least six. The protests appeared to have been touched off when the government boosted prices on bread by 30 percent yesterday. The increase came as wheat prices have shot up around the world. Residents say they have been hit hard by rising costs for basic necessities including bread, with soaring costs for fuel and other essentials adding to their troubles. Mozambique is also heavily dependent on imports from South Africa, which have become more expensive in recent months as the rand has strengthened. “I can hardly feed myself. I will join the protest because I’m outraged by this high cost of living,” said Nelfa Temoteo, who lives in the capital’s densely populated Malhazine suburb. Maputo police called for calm as the riots spread throughout the city of 1,2million people. “There is looting and vandalism. Shops, including banks in the Central Business District, are closed,” Chefo said. In 2008, at least six people were killed in Mozambique in protests over high fuel prices and living costs. The government agreed to cut the price of diesel fuel for minibus taxis.

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POLITICS & ELECTIONS

Pres Zuma’s team to blame for ‘ugly’ strike (www.sowetan.co.za, 20100902) – The public sector strike had turned ugly “because President Jacob Zuma was surrounded” by people who failed to advise him correctly, the SACP in KwaZulu-Natal said yesterday. “The strike has gone ugly because the president is sitting with wrong people. He is surrounded by people who don’t advise him correctly and that makes his office vulnerable,” said SACP provincial secretary Themba Mthembu. He was speaking at the SA Democratic Teachers’ Union general council in Durban. Mthembu said if Zuma had good advisers they could have advised him that the strike would be nasty because workers’ pockets had been hit hard by the recession. “Zuma should have been advised that there was a need to handle wage negotiations professionally.”

He described Public Service and Administration Minister Richard Baloyi as a bad negotiator who had caused militancy among striking workers. He called for the speedy resolution of the wage dispute. “Sadly, for now, it seems that the cowboys are in charge.”

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ECONOMICS; FINANCE; TRADE & INDUSTRY; MINING; ENERGY; PUBLIC ENTERPRISES

JSE says 18% of top-100 in black hands (www.businessday.co.za, 20100902) – Black South African investors own 18% of the available share capital in the top 100 companies listed on the JSE, according to the findings of a study released by the JSE on Wednesday. Analysts said the study suggests that although transformation is taking place among SA’s companies, it is happening at a much slower rate than expected, considering the fact that empowerment requirements have been in place for a decade. The study comes amid widespread criticism that some companies, such as those in the mining sector, are still not meeting black economic empowerment targets. “There has been much debate about black ownership on the JSE,” said its CEO, Russell Loubser. “Various and quite divergent numbers have been mentioned. “With the JSE’s unparalleled access to share data, we wanted to enrich the debate through presenting the facts in an impartial manner,” he said. The analysis, which took five months to complete, was carried out by independent research house Trevor Chandler & Associates using actual shareholder data obtained from the share registers of listed companies. The requirements of the government’s codes of good practice were used to determine the empowerment ownership levels in companies. Mr Chandler said the top 100 companies were also asked to provide their input, including providing their empowerment statistics. Companies were asked for audited or verified information and their annual reports were looked at, said Mr Chandler. The study also found that 8% of share capital in the JSE’s top 100 companies was directly owned by black people not taking into account the requirements of the codes of good practice.

Excluding foreign ownership, an estimated 36% of share capital is held by black shareholders. The current total market capitalisation for all companies listed on the JSE is R5,7-trillion, while for the top 100 companies it is R5,2-trillion. Steven Hawes, the research and advisory manager at rating agency Empowerdex, said the agency carried out similar research in February among all companies listed on the JSE. According to the Empowerdex study, 7% of share capital was directly owned by black people. In 2008, a study carried out by Empowerdex estimated that between 13% and 15% of share capital was owned by black people. However, mandated investments were excluded. “We feel that some progress is being made in respect of empowerment. It will be unfair to say that transformation is slow having regard to the fact that the codes of good practice are only three years old,” Mr Hawes said. Lisa Tait, executive vice-chairwoman at Transcend Corporate Advisors, said the research was extremely useful. One of the reasons there were no facilitated data was that there was a lack of knowledge on the part of some verification agencies and stakeholders who did not fully understand the issues, she said. “This would exclude the top three verification agencies, Empowerdex, Nera and EmpowerLogic.” Mr Loubser said the JSE does not have accurate figures on retail investors as race segmentation was not a requirement when opening a brokerage account. (Back to INDEX)

Department discloses mining right applications (www.businessday.co.za, 20100902) – The Department of Mineral Resources met Wednesday’s deadline to publish thousands of prospecting and mining right applications on its website as Mineral Resources Minister Susan Shabangu dismissed suggestions of irregularities in the granting of prospecting rights. Making public 26191 prospecting and mining applications is the first visible step in a series of measures Ms Shabangu outlined last month to head off perceptions of maladministration in her department. These views were fuelled by the awarding of two prospecting rights to small companies for parts of existing mines owned by big mining companies. Ms Shabangu has imposed a six-month moratorium on accepting new applications for prospecting rights as the department audits its data base of rights granted since May 2004, when the Mineral and Petroleum Resources Development Act was promulgated. She has promised to bring urgent amendments to the act to address areas of ambiguity. The department published 39498 pages showing who submitted applications and their status. State-owned mining company the African Exploration, Mining and Finance Corporation is shown to have submitted a large number of prospecting applications. While the documents are welcomed, there are shortfalls, such as not indicating the mineral applied for and application and acceptance dates, said law firm Bell Dewar. “If the minister is serious about shining a spotlight on any possible unusual activities in the application process, the next step would obviously be to make all of the information at the Mineral and Petroleum Titles Registration Office available,” Bell Dewar said. The department will, in the “next month or so”, release its review of the Mining Charter, which governs the obligations mining companies must satisfy to get new-order mining and prospecting rights, Ms Shabangu said at the Africa Down Under Conference in Perth yesterday. Peter Leon of law firm Webber Wentzel said a lot of information in the review was already in the public domain after industry, the government and labour signed a mining sector strategy document in June. Ms Shabangu said “unfounded allegations” had been made regarding the awarding of prospecting rights to Imperial Crown Trading over a portion of the Sishen Iron Ore mine and Keysha Investments 220 for base metal rights over part of Lonmin ’s Marikana platinum mine. “I have carefully examined these allegations and found no evidence of maladministration or irregularity in the manner in which these two prospecting rights were granted,” she said. This flies in the face of court documents filed by Kumba, which owns the majority of the Sishen mine. Kumba alleges irregularities in Imperial’s application, saying Imperial had used parts of Kumba’s mining rights application to draw up its own application. (Back to INDEX)

Arts are an untapped source of jobs for SA youth (www.businessday.co.za, 20100902) – Almost 50% of those employed in SA’s arts and culture sector are younger than 35 and the sector has the potential to help solve SA’s massive youth unemployment problem, says independent creative industry specialist Avril Joffe. Globally the “creative economy”, the commercial exploitation of products with their origin in individual creativity, skill and talent, is becoming increasingly important as a new generator of jobs, wealth and culture. The 2008 United Nations Conference on Trade and Development estimated cultural and creative trade represented 3,4% of total world trade and put the sector’s growth rate at 8,7%. “It’s one of the fastest-growing sectors in developed countries. We believe we always follow them,” says Ms Joffe, who has in the past advised the government on the creative economy. But in SA, little public money is spent on developing arts and culture — the Department of Arts and Culture had R3,4bn to spend in 2009-10. This is a pity, as 47% of the jobs in the creative economy are taken by people under 35, something to take note of in a country plagued by massive youth unemployment. It is estimated 2,8-million of SA’s youth are not employed or in education or training facilities. “SA’s arts sector is youthful, energetic and vibrant, and is easily accessed without large amounts of start-up capital. We should be offering (the sector) a lot more, it could generate income and jobs ,” Ms Joffe says. “It has grown on its own, without support. That is its evidence.” Much more needs to be done, on almost every level, starting with school education and ending with smart incentives for both consumption and corporate spending on the arts, says the Johannesburg director for the Visual Arts Network of SA, Joseph Gaylard. Less than 2% of SA’s matric pupils last year took visual art as a subject, and 70% of those who did were in schools in Gauteng, KwaZulu-Natal and the Western Cape, he says. In 2006 there were 1600 undergraduate degree students studying in the visual arts, with a 22% completion rate — higher than the general completion rate for the humanities. Even in Gauteng only 163, or 6,5%, of the 2500 public schools offer any of the arts, Ms Joffe says. “We’re not even offering exposure to the arts to children. They don’t even know if they’d like it,” she says. Exposing children to arts education is a deeply gratifying experience, says Anelle Liebenberg, principal of a school arts centre in Kimberley. As part of the Northern Cape’s Education Department, the centre teaches art as a matric subject to children from about 12 schools in the region, from formerly Model C to disadvantaged schools. The creative economy, says Ms Joffe, does not need a lot of government support. It just needs the government to pay attention, for example by demanding, and paying for, local content on state-funded TV and radio. “It stimulates the industrys.” This chain includes people working in museums, libraries, the media, the printing and publishing sectors and industries like advertising and architecture. (Back to INDEX)

Sita warns it will cut off services over R800m debt (www.businessday.co.za, 20100902) – Government departments owe about R800m to the troubled State Information Technology Agency (Sita) and if they do not pay up, they could see essential services withdrawn, which will result in their systems collapsing. Public Service and Administration Minister Richard Baloyi has the “political will” to take such a drastic step but only if negotiations with departments fail, Sita acting CEO Nontobeko Ntsinde said in Parliament yesterday. Among the major debtor departments are defence and police. For its part, Sita will have to deal with the problems of its service delivery, which in many cases led to the departments’ refusal to pay. But if this does not work, it will withdraw its services, initially the less important ones and later those that underpin the whole information technology (IT) system. Ms Ntsinde said the “Achilles heel” of the organisation is its lack of sound contract management. In many cases, particularly in the provinces, there are no contracts and service level agreements, which means Sita has no recourse when departments refuse to pay. Sita was set up in 1999 as a centralised supplier and procurement agency for the government’s IT requirements, as a means of achieving economies of scale. But departments turned away from it because of the poor quality and high cost of its services, as well as corruption and inefficiencies. It also suffered from an ineffective board, weak corporate governance, a poor performance management culture, flawed procurement processes, high staff turnover and many top-level vacancies. A number of forensic investigations have been instituted to probe fraud and corruption and in the past month four senior staff members have been suspended pending the outcome of disciplinary proceedings, which began this week. Ms Ntsinde said further suspensions and even criminal prosecutions are likely. The integrity of the supplier database will have to be established, tariffs reviewed and talks concluded with equipment manufacturers to get better prices. Chairwoman Zodwa Manase said progress has already been made. The agency received an unqualified report from the auditor-general for the 2009-10 financial year and even made a small profit. In March the Cabinet approved a three-year turnaround strategy to pull Sita out of its crisis and appointed a board of directors.

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JUSTICE & CONSTITUTIONAL DEVELOPMENT; POLICE; DEFENCE; NATIONAL SECURITY; CORRECTIONAL SERVICES

New pension policy ‘could lead to fraud’ (www.businessday.co.za, 20100902) -

Deputy Defence and Military Veterans Minister Thabang Makwetla on Wednesday briefed Parliament’s defence committee on the findings of a ministerial task team on military veterans. A broadening of the definition of what constitutes a military veteran has led to dire warnings of potential fraud and skyrocketing costs. This follows the creation — at a cost of R20m — of the Department of Military Veterans after President Jacob Zuma ’s government restructuring added the title of military veterans to the Defence Ministry. Deputy Defence and Military Veterans Minister Thabang Makwetla on Wednesday briefed Parliament’s defence committee on the findings of a ministerial task team on military veterans. Mr Makwetla said the new definition was “any South African citizen who has retired from active service rendered to any of the military organisations, statutory and non statutory, which were involved on all sides of SA ’s liberation war from 1960-61; all those who served in SA’s defence force before 1961; and those who became members of the new South African National Defence Force after 1994, who want to contribute to the establishment of a more peaceful, just and free SA based on the principles of the constitution and the bill of rights”. Mr Makwetla told MPs that those who passed a means test and who qualified as bona fide military veterans would be entitled to pensions if they were destitute, housing if they could not house themselves, free healthcare at military hospitals, honour and burials, education, placement in employment, free transport, compensation for loss of life and limb, business opportunities and counselling. Mr Makwetla said this was what was considered necessary, and it was not based on what could be afforded. Funding for military veterans was urgently needed, he said. Struggle veteran and African National Congress MP Andrew Mlangeni told Mr Makwetla that when drawing up a database of military veterans, “be very, very careful because you will find people claiming to be military veterans when they are not”. He said this had been the situation when the Special Pensions Act was passed into law, and many people who were not part of the struggle had applied for the pensions, some of them succeeding. Democratic Alliance MP David Maynier said after the meeting that the military veterans policy-making process seemed to be deeply flawed: policy recommendations have been made without considering the cost implications. “The recommendations concerning benefits made by the ministerial task team on military veterans amount to little more than a wish list. The fact is that we cannot have a policy-making process taking place which seems to assume that there is no budget line. “The Treasury should therefore be brought in to run the numbers and focus policy makers’ minds. There is a limited budget.” Mr Makwetla said that new legislation providing for military veterans would soon be brought to Parliament. This would provide for the new standalone department and was needed as the existing Military Veterans Affairs Act limited the scope of beneficiaries and referred only to a development programme of benefits.

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TRANSPORT; COMMUNICATION & MEDIA ISSUES; SCIENCE & TECHNOLOGY

Rules to give Protector more teeth up for comment (www.sowetan.co.za, 20100902) – A set of rules giving the Public Protector more teeth in dealing with government departments is to be made public soon for comment, the protector’s office said on Wednesday. It said the rules, to be published in the Government Gazette, were aimed at speeding up the resolution of complaints and “ensuring compliance by organs of state guilty of failing the public”. The rules sought to standardise matters such as timelines, subpoenas, search and seizures, alternative dispute resolution mechanisms and contempt orders. Protector Thuli Madonsela said once the rules were in force, state organs would be fully aware of how they were expected to co-operate with investigations and comply with recommendations. “They would also be aware of sanctions for failure to co-operate.”Failure by the state to co-operate and comply impacts on our ability to deliver,” she said. “This may also dent our credibility in the eyes of the public.”

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ENVIRONMENT & WATER AFFAIRS; AGRICULTURE, FISHING & FORESTRY; LAND AFFAIRS

Call to save Africa’s rhinos (www.citizen.co.za, 20100902) – September is Rhino Month, and the Worldwide Fund for Nature (WWF) on Wednesday launched a campaign aimed at raising funds and support for those who place their lives on the line in the fight against rhino poaching. “We’re asking people to take action during the month of September to help us protect our remaining rhino populations and also support our rhino warriors – the men and women at the frontline who risk their lives daily against sophisticated, ruthless and heavily-armed international criminal gangs who run the illegal rhino horn trade,” said Dr Joseph Okori, head of WWF’s African Rhino Programme. The month will culminate in “Make a Noise for Rhinos Day” on September 22, during which WWF asks everyone to dust off their vuvuzelas and make a noise. “People can show their support by going to www.wwf.org.za where they can offer donations for rhino conservation, learn more about issues pertaining to saving rhinos and also share this information with others,” said Okori. Dr Richard Emslie, scientific officer of the IUCN African Rhino Specialist Group warned that if poaching incidents continued unabated, rhino breeding successes of the last decade would be in serious jeopardy. “Losses for 2010, if poaching continues as it is, would equate to 1,4% of the total population. Incidents for 2010 so far are 2,3 times higher than those for 2009,” said Emslie. Director of Traffic in East and Southern Africa, Tom Milliken, said there had been a definite resurgence in the rhino horn trade. He added that the resurgence of the trade was linked to the availability of cellular phones for rapid communication, Internet marketing of wildlife and the growing Asian footprint in Africa.

“There’s been a rapid escalation in trade. Poachers are well organised, well-financed, adaptive and take advantage of governmental shortfalls. All of these have serious implications for the rhino,” said Milliken, adding that the number of horns moving onto the market was escalating, with poached horns able to move from the site of the kill to the global market in as little as 48 hours. “The number of recovered horns is dropping, indicating more horns are penetrating the end-use market – it’s starting to get out of control with demand driving the trade,” he said. Speaking about successes in the war against poaching, SANParks CEO Dr David Mabunda said 70 arrests had been made since January. However, out of a total of 450 dockets opened, only 76 cases had made it to the courts. “It’s only a matter of time before we get the big fish – this is not to say we have not got some already,” said Mabunda. (Back to INDEX)

New ‘green tax’ on passenger vehicles implemented (www.citizen.co.za, 20100902) – New passenger vehicles emitting more than 120g of carbon dioxide (CO2) per kilometre are subject to a new “green tax” as of Wednesday. The new emissions tax on passenger vehicles came into effect yesterday and will see car prices increase according to emissions. For every gram of CO2 over the 120g cut-off passenger vehicle prices are set to increase by R85,50 inclusive of VAT, an increase averaging 2,5% according to the National Association of Automobile Manufacturers of South Africa (Naamsa). However, Naamsa has warned the increase will have a detrimental effect on new vehicle sales potentially reducing new sales by up to 5% or more. Carbon taxation is being implemented in an attempt to improve air quality and forms part of government’s plan to bring in additional environmental taxes which include traffic congestion taxes and waste water discharge levies while getting consumers to change their behaviour. According to National Treasury the new tax is based on the “polluter pays” principle. Clarity still needs to be achieved as to whether or not manufacturers or dealers will absorb parts of the new tax with Toyota South Africa already indicating they wish to absorb some of the cost for buyers who wish to buy environmentally friendly vehicles. Those wanting to purchase 4x4s and luxury vehicles which emit between 300g/km and 450g/km will see increases of between R13 500 and R24 750. (Back to INDEX)

Processed food imports dent jobs (www.businessday.co.za, 20100902) – The agricultural sector is losing jobs because processed products are being imported, instead of being produced and manufactured locally, Lindie Stroebel of the Agricultural Business Chamber said last week. In a report released last week, Ms Stroebel, an economic intelligence manager at the chamber, said that historically SA was a net exporter of primary agricultural products, but since 2006 it has become a net importer of processed products. The lack of employment opportunities in the agribusiness industry is directly linked to deficiencies in local value-adding and manufacturing. Although Statistics SA figures indicate that the formal sector lost 129000 jobs and the informal sector gained 115000 jobs in the second quarter, Ms Stroebel said the recession is only now starting to take its toll on primary agriculture’s employment figures. Lower commodity prices also place pressure on farmers , while less favourable and often costly labour regulations are contributing to lower employment on farms. According to Stats SA, the primary agriculture sector lost 32000 jobs in the second quarter. Almost 100000 jobs have already been lost in primary agriculture in the past year, bringing total employment in the sector down to 618000. “This is a 13% loss for primary agriculture’s employment, compared to the total economy’s loss of 5%,” she said. Economist Mike Schussler said in July that the social grant system acts as a disincentive to work, saying the situation is not sustainable because 12,8-million people are working, while 13,8-million people receive welfare payments. Over the past 10 years, the South African population has grown by almost 13%, while the labour force has expanded by only 4,3%, “which shows that population growth has completely outstripped the rate of employment”, Ms Stroebel said. The Agricultural Business Chamber, in its agribusiness confidence index, listed a lack of skills and professional workers as one of the main factors inhibiting the sector’s competitiveness. (Back to INDEX)

India’s largest iron producer in joint venture with Cosatu company (www.businessday.co.za, 20100902) – India’s largest iron producer and exporter, National Minerals Development Corporation , announced a deal with the investment arm of the Congress of South African Trade Unions (Cosatu), Kopano Ke Matla Investment Company, on Wednesday. National Minerals and Kopano will form a joint venture that will seek exploratory and mining rights for various minerals, focusing on coal, iron ore and manganese. Kopano was established in 1996 by the Kopano Ke Matla Trust, whose sole beneficiary is Cosatu. National Minerals chairman and MD Rana Som said the deal is “special” as it will work to bring profits to the community and to “better their lives rather than giving profits to individuals”. He said National minerals and Kopano had formulated the deal over the past two-and-a-half years. Part of the parties’ “shared vision” is to increase industrial capacity in SA, to create a new quality of life for poor communities and to create skills training programmes. The joint venture will provide hostels and educational benefits for workers. The value of the deal could not yet be ascertained, Mr Som said. He said National Minerals’s 6000-odd employees have been involved in scientific mining using “carefully revised technologies”, which he plans to use in SA. Mr Som said these involve “safer” mining methods than those used in SA. Mining companies have been criticised this year because of a number of fatal accidents.

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SPORTS

SA defeat Spain at the Women’s World Cup (www.citizen.co.za, 20100901) – Sulette Damons of North West scored a stunning goal to take South Africa to an upset 2-1 victory over Spain in an emotion-charged Women’s World Cup Pool B match in Rosario, Argentina on Tuesday night. South Africa, ranked 12th in the world, took the game to world number eight Spain from the outset and midway through the first half hockey legend Pietie Coetzee scored her 192nd goal in 196 Test matches when her penalty corner slammed into the backboard low to goalkeeper Maria Lopez’s right. Completely against the run of play and with six minutes before the change-over, the Spaniards hit back with a slick variation netted by captain Nuria Camon from their only penalty corner of the half. The highly rated Spanish strikers were clearly rattled by South Africa’s solid defence but the girls in green and gold were denied by inspired keeper Lopez until Damons deflected her wonder goal off captain Marsha Marescia’s pass nine minutes from time. It was South Africa’s first World Cup win in eight years, having last won in 2002 in Perth against Ukraine in a consolation classification match. “I’m confident we will be winning again here and not in another eight to 10 years,” South African coach Giles Bonnet said. Spanish coach Pablo Usoz again regretted Spain’s inability to score from penalty corners. n Also on Tuesday, England upset China 1-0 and hosts Argentina edged South Korea 1-0. Hannah MacLeod’s goal in the second minute, pushing in a rebound of Crista Cullen’s penalty corner flick, was all England’s women needed to take maximum points from their first two matches in Pool B competition. China starved England of possession in the second half by controlling the midfield and had more than 15 shots on goal, but England’s hero goalkeeper Beth Storry made 10 saves, three in a single flurry, to keep China scoreless. “Beth made some great saves with China throwing everything but the kitchen sink at us, coach Danny Kerry said.” China coach Kim Sang Ryul agreed England defended well in the second half. South Korea held Argentina scoreless in the first half despite four penalty corners for the hosts. Luciana Aymar created Argentina’s only goal by beating two defenders, shooting into the pads of Moon Youngh Hui and Carla Rebecchi batting the rebound into goal. (Back to INDEX)

Vuvuzelas banned by Uefa (www.timeslive.co.za, 20100901) - Uefa has banned fans from bringing vuvuzelas into stadiums for European Championship and Champions League matches. Uefa says the plastic trumpets “are not appropriate in Europe” because they drown out fans’ traditional songs and emotional responses to action on the field. Uefa says all 53 European football nations have been told to enforce the ban at national team and club competition matches. Vuvuzelas provided the World Cup soundtrack in South Africa, where every match was accompanied by a low-pitch drone likened to a swarm of buzzing bees. Fifa refused to ban vuvuzelas despite repeated calls from players and broadcasters, defending them as part of South African football culture.

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FEATURES; OPINIONS; ANALYSIS

Working poor vs State Moguls by Zwelinzima Vavi (The writer is Cosatu general secretary, www.sowetan.co.za, 20100902) – The public service strike has been hotly debated and unfairly reported on in the media. From opinion pieces to current affairs shows, the dominant view has been that unions in South Africa are too powerful and are holding the country’s “progress” at ransom. Suggestions have been made that South Africa needs a Thatcherite leadership that adheres to a neo-liberal ideology and musters enough clout to crack the whip on the backs of the trade unionmovement. Some critics have argued that unions are protecting a “labour aristocracy”, that is those that are fortunate enough to have a job and to belong to a union. The government did not waste time joining the tune, arguing that acceding to workers’ demands would require the state to compromise the service delivery needs of poor communities. Almost every news segment runs stories of how those in need of medical attention are turned away, how pupils are left in limbo on the eve of the matric exams and how bodies have been piling up in state mortuaries, causing unnecessary pain and suffering to the bereaved. These attacks are waged in a manner that creates the impression that public servants exist in a socialvacuum. The reality that many workers (due to the failure of the state to drive a sound job creation strategy and implement a comprehensive social security programme) have to care for extended families, is seldom mentioned by the media and government. Cosatu has indicated at every opportunity that the consequences of the strike are regrettable and urged government to meet the workers’ demands and thus contribute to the speedy resolution of the dispute. With all the attempts to trivialise workers’ demands for an 8,6percent wage increase and R1000 housing allowance, important questions have been left unattended. Very few entertained the reasons behind government’s 16-year reluctance to sign a minimum service level agreement so as to allow workers falling outside the scope of essential services to embark on strike action. The government has been absolved of the blame for failing the poor and opportunistically using essential services as an instrument to suppress workers’ rights. There are many untold stories of the difficulties faced by public servants at the hands of a system governed by profit. The public should be made aware that the conditions of work for many public servants are intertwined with the wellbeing of the people they serve. The conditions under which education takes place in many townships and rural schools, replicates as a working environment for many teachers. Similarly, the dream of providing quality healthcare for all will never be realised as long as nurses have to undertake their tasks within the context of staff shortages, lack of medicines and infrastructure in many of our public hospitals. In all honesty, many public servants are reeling under the pressures of capitalism. A teacher who earns about R9,000 a month simply cannot afford a decent house. We should not be surprised when many public servants drown in debt and struggle to keep their families afloat. This is a gross crime committed by the government against public servants and society at large. With the increasing cost of living and the lack of cushioning mechanisms such as state-subsidised housing for public servants, we can safely say that many of our teachers and nurses today constitute what has been called the working poor. The public sector strike has clearly unmasked the real and ugly face of income inequalities and poverty in South Africa. The fact that a top chief executive earns 1,728 times more than an average worker is proof of these gross inequalities. Four years ago, the lowest-paid worker in the public sector earned R35,000 a year, while a director general took home in excess of R800,000 a year. This reality is worsening as wealth becomes concentrated in the hands of a few, who have tasted the real fruits of democracy. These facts ought to be remembered by those who comfortably launch scathing attacks on working class struggles from their library armchairs. Hopefully the resilience and overall discipline that has been demonstrated by the majority of the workers during the strike will be re-channelled towards mass campaigns in the National Health Insurance and a new, job-creating and equitable growth path.

Outcomes-based education is dead…. Long live OBE By Jane Hofmeyr – Dr Hofmeyr is CE of the Independent Schools Association of Southern Africa. (www,businessday.co.za, 20100902) -The media was awash with various opinions on the recent curriculum changes announced by Basic Education Minister Angie Motshekga. While most of the hype declared that outcomes-based education (OBE) is dead and the country will get a totally new curriculum, this was disputed by other analysts, resulting in mixed messages and public confusion.

To understand what is happening, we need to remind ourselves of the origins of OBE and why it became the basis of our education and training system. In the early 1990s there was a conjunction of forces:

A political imperative to break with the authoritarian, teacher-dominated, rote- learning curriculum of apartheid education;
A drive by trade unions, supported by business, to link the separate worlds of training and education so that adult learners transferring from one to the other would have the knowledge, skills and qualifications they had mastered at work recognised; and
The sound educational philosophy of shifting the focus away from what teachers were required to teach, to what the child is required to understand and be able to do after the teaching has taken place, or, in other words, the learning outcomes.

The result of these forces was the creation in 1995 of the National Qualifications Framework as a ladder of qualifications linking the training and education systems to enable the outcomes, or standards of competence, achieved in all learning programmes to be registered at the appropriate level and, in 1998, the country’s first OBE school curriculum, the original Curriculum 2005.

Curriculum 2005 died in its radical form of “transformational” outcomes when then minister Kader Asmal insisted it be reviewed in 2001. It was found to be problematic in its approach and implementation: it concentrated too much on skills and the processes of learning without sufficient specification of content and knowledge. Because there was ideological resistance to a thorough revision, this imbalance was not sufficiently redressed and the content remained underspecified.

The Revised National Curriculum Statements of 2003 are a huge improvement, producing a relevant and challenging curriculum focused on exposing learners to higher-order thinking skills essential for national development and global competitiveness.

What then are the problems with the 2003 revision? The problems lie in the level of disciplinary and pedagogical understanding it requires, and its implementation and assessment. There is a mismatch between its demands and the capacity of the teaching corps. This has led to a proliferation of policy documents trying to make it more understandable to the average, poorly trained teacher with limited subject knowledge. OBE terminology was also found to be too sophisticated for most teachers, with a demoralising effect.

To compound matters, the 2003 revision was implemented without enough targeted, discipline-specific training to improve teachers’ subject knowledge, or enough resources for teachers and learners. It also overemphasises assessment and associated administration and overloaded teachers with tasks not related to their teaching.

What changes can we expect? For years “the OBE curriculum” was the scapegoat for all the problems in the education system, resulting in mounting public pressure to get rid of it. The government has decided the term “OBE” will be scrapped in the revision of the Revised National Curriculum Statements . The African National Congress, however, has clarified that “outcomes-based education as a broad framework for education and training remains our approach and the core values of (OBE), such as encouraging critical engagement with knowledge instead of rote learning”.

The key change is that the curriculum will no longer be framed in terms of learning outcomes and assessment standards. To make it more accessible to teachers, it will be repackaged: every subject in each grade will have a single, comprehensive, concise Curriculum and Assessment Policy Statement that will provide details on what teachers ought to teach and assess. Outcomes will be absorbed into more accessible aims, and content will be specified in subject topics and the assessments to be covered each term. The terminology will thus be familiar aims, topics and subjects and the assessment load has already been reduced.

An expert ministerial committee is working on the development of textbooks and learning and teaching support materials, including learner workbooks. Teachers will receive subject-specific training. The public will be consulted on all the policy changes, which will be regularly communicated to schools. To bring about improvements in pupil achievement, Motshekga also announced a comprehensive programme, Action Plan 2014: Towards the Realisation of Schooling 2025.

This is all very positive news. A danger, however, is that quality and effectiveness may be sacrificed in the haste to deliver. How will this affect our schools? Although OBE changed the paradigm of the national curriculum, independent schools have been less affected by curriculum changes than public schools. Central to the independence of private schools is the freedom to choose the content, pace, sequencing, methods and assessment of their curricula, provided they meet the national outcome standards. Good teachers in public and independent schools have always taught with both the knowledge and skills they wanted their pupils to learn uppermost in their minds. They should be able to use the curriculum as a base for designing learning opportunities.

The greater specification in the Curriculum and Assessment Policy Statement may mean prescription of content, pace, sequencing and assessment, and carries the danger that strict adherence will be required of independent schools and public schools. Schools will be monitored more closely in the future and our schools may be vulnerable to misplaced intrusion by officials. Annual national assessment tests are planned for Grades 3, 6 and 9 and it is not clear yet whether these will be written in independent schools. They will test core mathematical and language skills, not subject knowledge, but even they pose a serious threat to independent schools, such as Waldorf, that offer an alternative educational approach that does not believe in formally testing children until Grade 4.

So is this a new curriculum and is OBE dead? To use a local expression: “Ja, nee.” No, it is not a radically new curriculum, because in its new form there is both change and continuity. OBE may be dead politically, but as a learner-centred paradigm, which makes learner outcomes a vital consideration and underpins our whole education and training system, it is still alive. The Curriculum and Assessment Policy Statement will put more emphasis on teaching the basic knowledge and skills, but we will never go back to the authoritarian, teacher-dominated, content- based curriculum I endured at school.

An improved, user-friendly curriculum, however, will not solve all our quality problems. In the end, it depends on the competence, commitment and professionalism of teachers. This will involve improving their subject knowledge, skills and competence in English as the main medium of instruction, and a new system of accountability. This is not the last curriculum change there will be. As in all countries, curricula need continuing research, monitoring and refining as new issues arise, knowledge expands and needs change. Ideally this task should be in the hands of a dedicated National Institute for Curriculum Development staffed with professionals. In the modern world, no country can afford the curriculum stagnation we endured for decades under apartheid.

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EDITORIAL COMMENT : 2010/ 08 / 23

Editorial comments are selected in terms of relevance to current affairs, contrasting viewpoints and information value. Some items may be edited for length.

Editorial comments from the following papers have been considered today: BUSINESS DAY, THE STAR, PRETORIA NEWS, THE TIMES, BEELD, SOWETAN, THE CITIZEN.

Only a genuinely independent board will save the SABC (www.timeslive.co.za, 20100902)- Reports this week suggesting that tensions within the ANC-led alliance are playing themselves out in the SABC’s top management and board are deeply depressing. For years now the public broadcaster has lurched from one crisis to another while its managers dithered, bickered and litigated. Programming has suffered, repeated accusations of political bias have been levelled at the news department, expenditure has shot through the roof – and taxpayers have had to pick up the bill. Last year alone, the bailouts amounted to about R1-billion. The damaging power struggle between former chief executive Dali Mpofu and the board is now in danger of being eclipsed by a ferocious battle between members of a newly constituted board on the one hand and the board’s chairman, Ben Ngubane, and the broadcaster’s chief executive, Solly Mokoetle, on the other. At issue seems to be the appointment, by Ngubane and without board approval, of Phil Molefe as head of news. The headlong rush by ANC alliance officials to enter the fray, defending their preferred SABC heavyweight, lays bare a fundamental truth about the board – it is, in large part, a hodge-podge of individuals representing competing interests in the alliance. A lasting solution to the SABC malaise will be found only when the board’s independence is guaranteed and when its members are drawn from the ranks of South Africans who are widely respected for their ability and unimpeachable integrity, not just for their party-political connections. Such a board should have the power to ensure effective corporate governance at the broadcaster, and to appoint executive managers on merit. We have to convince the government to release the corporation from the dead hand of politics.

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