Tuesday, 23 October 2012

Gold Fields ANC MP's convicted criminals an Advocate and Black Economic Empowerment - enriching SA's ANC Elite

CODESA were not political negotiations, CODESA was the finalisation of a business agreement - Selling South Africa to the highest bidder.
South Africa was handed over to the ANC, because big corporates needed to get their hands on SA's mineral resources. The National Party was way to tough to deal with and had to be replaced by a corrupt movement that could be easilty
Today 18 years later the ANC is the richest political party in the world and its elite members rank among the richest people on earth, while the rest of South Africa is sinking.

Part 1

It may look like just another mineshaft, but this [on screen] is South Deep, one of the world's richest mines. In 2006 Goldfields paid $3-billion for it, but it could only be mined once they had a new order mining right. By 2010 Goldfields were awarded their South Deep licence - as precious and as rare a commodity in South Africa, as the mineral riches it unlocks.

Bongani Bingwa (Carte Blanche presenter): "At the same time Goldfields announced a R2.1-billion BEE deal. It was widely hailed, particularly because the company's 47 000 workforce stood to benefit. So, if it looked so good on paper, why have two investigative journalists refused to let this story go."

Lindo Xulu is a multiple award-winning financial journalist. When Goldfields won their coveted licence, he was working at Moneyweb with veteran mining journalist Barry Sergeant. The announcement of the Goldfields BEE deal in a circular to shareholders pricked their interest because a sizeable chunk of shares and money were being given away to a small elite group.

Barry Sergeant (Mining journalist): "And along comes this deal in 2010 and it's a pure, pure donation with no accountability and everyone involved benefits. And especially that tiny elite group at the top."

Connected to the deal are influential politicians, an advocate close to the president, an ex-convict and an MP meant to oversee the mining industry.

Lindo Xulu (Financial journalist): "Clearly, what you have here is... you've had an unholy alliance of capital, together with the political elite coming together and sharing the spoils."

South Deep will only produce gold at full capacity by 2015, but the deal gave the elites a little R26-million upfront share bonsella when the deal was announced.

Barry: "The underlying equity investors in South Deep...which go back to 1995, they will have to wait at least 20 years before getting out their first dividends. The BEE partners come along and within six months they start getting cash out of the deal. Isn't that amazing?"

And so they went in search of answers, but CEO Nick Holland refused to meet them face to face.

Barry: "Nick Holland has become desperate to keep this a local story. He can't afford to have this story go global, which is what Goldfields is... it's a global... it's a transnational gold digger."

Bongani: "But from Goldfields' point of view there was nothing wrong with the deal; it was above board and completely legal. Their shareholders had approved it, so what was Barry and Lindo's problem?"

Lindo: "It boils down to accountability, Bongani. If you were asked to be part of this deal, hey, you know, I am sure that you would think about it. But the accountability rests with the company themselves and the management, and Nick Holland ultimately."

Goldfields is the fourth largest mining company in the world by output and is listed on the JSE and in New York. Last year the CEO Nick Holland took home just over R32-million in shares and cash.

Man 1 (Miner): "We are working for Nick Holland; we are not working for ourselves."

For the past six weeks Goldfields has been under siege as rolling wildcat strikes have hit one mine and then the next. This week Nick Holland gave 23 000 striking Goldfields workers an ultimatum: return to work by Thursday, or be fired. At KDC West near Carletonville a few weeks ago, Goldfields threw their miners out of the hostel. After a night on this rocky outcrop [on screen], they baked in 33 degree heat to show their dissatisfaction with NUM and management.

Man 1: "Nick Holland is getting a big salary. But we are getting a very, very small salary... we can't even educate our children or take our children to school, take them to the hospitals."

So just two years after Goldfields' landmark deal, why is there such dissention on the Goldfields' mines?

Bongani: "When this deal was announced, for the recipients it must have seemed like an early Christmas. The lion's share was to go to the workers, another sizeable chunk was to go to two community trusts and another smallest portion of the deal was to go to the elites. It seems like the workers got the most of it, but when you look at it individually, the elites got much bigger pieces of the pie than the whole that went to 47 000 [workers]."

The elite beneficiaries were not only given a R300-million stake in the mine, over the next 20 years they will also take home a preferential dividend of over R100-million. They can't sell their shares for 30 years, but if they could sell them today, the shares they got could be worth much, much more.

Barry: "So those elite people sitting in that structure are going to have the most wonderful time in the next 10 years, and it will then endure for another 10 years after that."

But there is no preferential dividend for the miners; they must wait 15 years for their shares, locked up in the Thusano Trust.

Man 2 (Miner): "In 2025 we are going to sell our shares."

The workers we spoke to had no idea that R1.2-billion had been given to 47 000 workers.

Producer: "So nobody knows about the Thusano share trust?"

Miners: "No."

Man 2 (Miner): "They didn't give us all the details about the money, they just give the shares."

While the workers add value to the bottom line, the maximum, say, a rock driller with 20 years of service will get is just over R43 000 in shares. Compare that to 72 elites. Hypothetically, if they get an equal piece of the pie they would each receive just over R5-million, but Nick Holland won't be drawn on details of who is getting what.

Barry: "Nick Holland's approach seems to be something like: I am equal to the Queen of England and you can't speak to me unless I want to speak to you."

Bongani: "But it wasn't just the CEO's reluctance to answer their questions that made these two journalists doubtful that the deal was as noble as Goldfields claimed."

One of the consultants that was hired to put together the deal, wasn't exactly your pinstripe investment banker type.

[Carte Blanche 2011] Gayton McKenzie: "I was a gangster; I was a general of the Twenty Six Gang... it's the highest any gangster can rise. And I was an extremely ruthless guy."

Convicted bank robber Gayton McKenzie and his business partner Kenny Kunene, AKA the "sushi king", met in jail and were released in 2003.

[Carte Blanche 2011] Bongani: "What did you do?"

[Carte Blanche 2011] Kenny Kunene "Anything and everything that brought in money, but my speciality was more fraud."

Gayton testified at the Jali Commission on prison corruption, and it's here he met advocate Jerome Brauns. Seven years later Goldfields hired Gayton McKenzie and advocate Jerome Brauns to put together their South Deep BEE deal. The multibillion rand deal was celebrated here [on screen] at Gayton and Kenny's night club ZAR.

Barry: "It seems incredulous that a company of this stature would hire a convicted bank robber to farm out a BEE deal worth R2.1-billion and as his side-kick would have a convicted fraudster."

But what strategic value did Gayton bring to the deal? In their first response, Goldfields told us that Gayton was brought in to identify people for the BEE deal.

[On screen] Principally he assisted us in identifying potential participants to be considered for our successful and broad-based South Deep BEE transaction.

But this week Gayton told us he was brought in to assist with getting the mining right - the same thing he told us a year ago.

[Carte Blanche 2011] Gayton McKenzie: "In this country, I have no equal when it comes to applying for mining rights. No equal! I was paid R15-million to get a mining right for Goldfields!"

[Carte Blanche 2011] Bongani: "You alone?"

[Carte Blanche 2011] Gayton: "No, me and my business partner - there is no alone with me and Kenny."

Goldfields deny they ever hired Kenny Kunene. They also deny they paid Gayton to ensure they got the South Deep mining right. They say the only way to get a mining licence is to comply with legislation. But then, information has emerged that Goldfields may have had help from powerful people in politics.

Bongani: "During the investigation several documents came to light, including this one [on screen] with Gayton McKenzie's company's letterhead."

Gayton says the document was a proposal prepared for him by one of his consultants.

It mentions, for instance, Mendi Msimang, the former treasurer general of the ANC, and says he knew or understood what would be expected of him as a role player within the deal.

Another politician recommended in the proposal to benefit from the deal is Eric Lucas.
He sits on the parliamentary portfolio committee on mineral resources.

Lindo: "That is what we found really troubling - that you would have somebody who is there to sit as a regulator actively lobbying for one specific company."

The proposal says that Eric Lucas, an IFP member, was brought in because, quote: 'the inclusion of this entity was also dictated to by the thinking that it should not only be the family and friends of the governing party that benefit from BEE transactions.'

Bongani: "But how can a member of the parliamentary oversight committee lobby for a licence for a company in the same sector?"

Lindo: "(laughs) I believe Mr Lucas is probably best placed to answer that!"

So our journalist, Susan Comrie called him.

Susan Comrie (Journalist): "The document specifically says that you played a pivotal role in lobbying for the South Deep licence. What is your reaction to that?"

Eric Lucas: "No, that is not true!"

Gayton tells us that HE removed Eric Lucas from the proposal, he said: 'I removed his name with that of many other proposed names. His exclusion I felt most strongly about. I, however, learnt from some IFP members that Mr Lucas cunningly slipped the name of his daughter in the list reserved for members of the IFP, which turned out to be the truth.'

Nicole Lucas did confirm to Lindo that she was introduced to the deal by her father.

Lindo: "What typically happens, as in the case with Eric Lucas, is... where there is a direct conflict of interest, that direct conflict of interest is somehow subverted by bringing in family members."

Mendi Msimang was left out of the deal, but one of his relatives, Mandla Msimang, was included. Goldfields maintain that Gayton McKenzie's mandate was limited and that he had no power to bind Goldfields or make any decision on who should participate.

Part 2
To read the rest of the transcript and watch both videos, Part 1 and Part 2, click HERE
Link : http://beta.mnet.co.za/carteblanche/Article.aspx?Id=4622&ShowId=1


Gold Fields, an advocate and two convicted criminals

The ANC always finds some scapegoat to blame for their own incompetence, failures and mistakes, but after having watched and read all of the above, ask yourself if you still think the following is too far fetched:

ANC fears DA-Britain ‘plot’

Of course the DA and the liberal media would deny it, as can be seen in the following article by a journalist who actually starts off with the following: "I spent a large chunk of my ten-year career as a political journalist to convince pessimists that South Africa is not going to become a second Zimbabwe – for that our institutions and civil society are too strong and our international image too important to our leaders."

The ANC and the big DA-Britain conspiracy

If you can read Afrikaans, then you should read my latest article, in which I discussed the very situation:

Sal die (Boere) haan ooit weer koning kraai in sy hok?

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