Wednesday, July 18, 2018

There’s no such thing as free land and there is no such place as Republic of KZN

When the South African president Cyril Ramaphosa assured the Zulu leader King Goodwill Zwelithini last week that the national government had no intention of grabbing land held by or interfering with the Ingonyama Trust, he tugged the tail of a sleeping dragon.

It is a dragon that might well return to devour him.

Not one to neither take a sideways step and bypass the slumbering serpent nor take a lesson from St George the Martyr, Mr Ramaphosa sheathed his sword. Instead, he should have ripped out his blade; challenged the beast and moved in for the kill.

It was an opportunity that he will come to rue someday soon as discussions about land ownership and repatriation heats up before a decision in late August. That there needs to be some form of land reform is not in question. Ever since the Native Lands Act of 1913 and through various bits of legislation including the Group Areas Act of 1950, the vast majority of South Africans were deprived of and excluded from owing land.

Land reform may lead to a redistribution of wealth and a level playing field in a country where the overwhelming rate of poverty is high.

The Ingonyama Trust holds large parcels of land for Zulus in the KZN region. King Goodwill controls the Trust.

On its website the Ingonyama Trust states it “was established in 1994 by the erstwhile KwaZulu Government in terms of the KwaZulu Ingonyama Trust Act, (Act No 3KZ of 1994) to hold all the land that was hitherto owned or belonged to the KwaZulu Government. The mandate of the Trust was to hold land for the benefit, material welfare and social well-being of the members of the tribes and communities living on the land.”

When the democratic government came into existence initially in terms of the Interim Constitution of 1993 the original enabling Act creating Ingonyama Trust was reviewed comprehensively such that the final product was a new Act albeit called the Amendment Act. This Amendment Act had to meet all the constitutional requirements both in terms of the Interim Constitution and the final Constitution of 1996.

Under the current law, King Goodwill is the sole trustee. And in the fall out over repatriation of land, a panel led by the former president Kgalema Motlanthe recommended that the Ingonyama Trust Act be repealed and that the Ingonyama Trust be dissolved. The panel found that the trust’s current practices were inconsistent with the government’s land policy and it did not secure land tenure for residents.

This is a view shared by the Economic Freedom Front who broke ranks with the ANC to call for the dissolution of the trust.

When Mr Ramaphosa met with King Goodwill it was a great opportunity to spell this out very clearly to the Zulu king no matter the spear rattling and chants of bloodletting by aggrieved Zulus. But the president clearly did not want to upset the Zulu leader.

There is no democratic republic of KZN. The Ingonyama Trust debacle is an anachronism that has to be fixed before there is any meaningful way forward as the government leans heavily towards land reform without compensation. The focus seems to be mainly on farm land while metropolitan land has escaped attention. This does not matter as unhoused poor and squatter camp residents eye off the leafy suburbs with desire.

But when it comes to deceiving the millions of impoverished South Africans living in squatter camps and locations dotted across the country there seems to be little enthusiasm to set the record straight. Poor South Africans who live in appalling conditions have this crazy notion that sometime soon they will get free housing.

 Some even believe they may benefit from property that will be removed from previously advantaged people. Well to put it bluntly, there are some who believe whites will be kicked out of their homes and the homes will be made freely available to the poor or needy.

Of course this will never happen. Land reform without payment is theft whichever way you look at it.
 South Africa is a signatory to many international treaties for a start and even if the government wished to reclaim land without compensation by tweaking Constitutional guarantees, the international reverberations will be nothing short of cataclysmic. The economy will suffer, the rand will crash. South Africa will again be an international pariah just like it was during the apartheid era.

This sad state of affairs already has given cold comfort to individuals and groups who have staked out parcels of land in Mitchells Plain and other areas of Cape Town believing they have an entitlement to free property. It will never happen.

It has also given rise to splinter groups feasting on appalling racism to secure special privileges and land claims for coloureds in Cape Town. One particular group has been lobbying to have black people returned to the Eastern Cape from where they came.

So why does the national government not intervene and boldly advise that no one ever gets a free house and land package anywhere on this earth. Houses and land are bought. You must work and work and work and save and save until you have the deposit. Then you have to go to your bank and lend the rest. Only then can you buy your house – and probably pay it off for nearly the rest of your life.

If there is anything that can be learned from this land reform exercise then surely it is the need for a great improvement in basic education and a proper work ethic that enables people to strive towards attainable goals. The government must focus on job creation programs that will empower the people and set them on the road to self-sufficiency and home ownership.

Meanwhile, parliament is continuing to hold land reform hearing up until the end of this month. The Constitutional Review Committee has undertaken a nationwide tour of public hearings on the possible review of Section 25 of the Constitution to make it possible for the state to expropriate land without compensation.

All this has scared off a group of about 15,000 Boer farmers who have considered plans of moving to Russia which remains relatively underpopulated for its size. The Russians are believed to have offered a welcoming hand to thousands of white South African farmers into its borders to boost its agricultural industry.

According to a Russian news channel Rossiya 1 TV, the plan is for the first 30 families to first establish themselves before more follow. Each family is said to be willing to bring at least R1.4 million ($100,000) with them to lease land in Russia and kick-start their farming efforts.

The views expressed on this blog are entirely my own. Feel free to use this material with suitable accreditation. Research material is included.

Dr Hilton Kolbe is a writer and journalist.


 #southafrica #landreform @JusticeMalala



#LandExpropriationWithoutCompensation

 #DA #ANC #TimesLive



Saturday, July 7, 2018

Independent Newspapers look like losing its independence


Comment




The sombre confirmation by South Africa’s Finance Minister Nhlanhla Nene that he has quietly started calling in the nearly R1.3 billion invested in the national media giant Independent Newspapers should trigger alarm bells ringing from national newsrooms right up to the floor of parliament and way beyond into the marketplace of popular discussion.

It is pretty serious stuff. Political ramifications abound, freedom of the press can be compromised and free speech could be at risk. What if this is a sinister ploy by the ruling ANC government to bring down the country’s most influential and biggest newspaper group for their own selfish ends to dilute criticism as South Africa heads towards a potentially critical election in 2019. What better way of silencing a critical press than by ripping out its heart?

After months of speculation about the future direction and viability of Independent Media, this latest episode of unfolding drama has potentially serious ramifications for press freedom in the evolution of the Rainbow Nation. It could well spell disaster for Dr Iqbal Surve, the charismatic leader who barely five years ago wrested control of arguably South Africa’s most profitable and respectable newspaper group out of Irish hands.

In confirming the deal, Surve was quoted as saying: “I am delighted that I have the opportunity to bring these newspapers, this national asset, back to South Africa. I am bringing Independent back home.” But, sadly, the age of the media baron is long dead and buried. And any resemblance that Surve may have had of being another Lord Beaverbrook, William Randall Hearst or even, God forbid, Rupert Murdoch, in the making has the odds now heavily stacked against him.

In a reply to a question on notice by Democratic Alliance MP Alf Lees, Mr Nene confirmed the Public Investment Corporation (PIC), the country's biggest asset management firm that controls the pension savings of government employees through the Government Employees Pension Fund (GEPF) had invested nearly R1.3 billion in the Independent Media Group.

The PIC’s exposure to Independent Media is as follows:

· R166 333 000 – direct equity (25 per cent)

· R579 683 083 – debt loan

· R183 000 000 – debt loan

· R346 096 192 – debt converted to bridge finance

According to reports, the PIC acquired a 25 per cent stake in Independent Media, while Sekunjalo’s majority share had been largely funded by the PIC.

In the unfortunate situation where Independent Media falters or is unable to meet its debt to the PIC, thousands of government workers will be baying for blood if they should lose their pension money. This will translate into yet another disaster for the African National Congress government that is already under siege with claims of rampant corruption, graft, theft and nepotism. It spells more bad news for the ANC as an election looms. Already there have been demands made of the national broadcaster SABC to consider allocating increased coverage to the ANC come election time.
In 2013 the Irish publishing group Independent News & Media (INM) agreed to sell its South African business, the country’s largest English-language newspaper group, for R2 billion to a consortium led by Dr SurvĂ©.

From his bunker in Dublin, owner Tony O’Reilly could see the writing on the wall. Digitalization coupled with the complex transformation in post-apartheid South Africa – as much in the national news rooms as in society in general – was a recipe for disaster. There were no rivers of gold in the advertising columns.

Here was a struggling newspaper group that had fallen from its pinnacle of grace and glory. It was a newspaper group that was hindered on all sides by sharply falling advertising revenue, a drop in readership and a drop in sales.

Factor in the effect of new technology and the need to transform the newsrooms into a modern and competitive working model was costly. Even more damaging was the ever rising cost of newsprint, a staffing conundrum that saw an exodus of senior staff to more lucrative employment opportunities and a general turnaround in the fortunes of newspapers around the globe.

But along came Surve and his cronies in the form of Sekunjalo Media Consortium as a majority shareholder backed up with the deep pockets of the Public Investment Corporation (PIC).

On its website, Independent Media is described one of South Africa’s leading multi-platform content companies. Its stable of fine, quality publications include 20 of the country’s most prominent newspapers with The Star in Johannesburg, Cape Times and Cape Argus in Cape Town and The Mercury in Durban firmly entrenched in millions of households throughout South Africans. African Independent is the only title which serves the African continent and I'solezwe lesiXhosa provides daily news to the 3.5 million literate Xhosas in the Eastern Cape. Business Report is South Africa's largest business newspaper with 1.2 million readers.

Independent Online, popularly known as IOL, is Independent’s current digital offering, and brings millions of readers breaking news as events happen in the country and around the world. With a growing daily unique online audience it is one of the largest news and information websites in South Africa.

So it begs the question why would the PIC as an administrator of pension money that belongs to working class government employees place so much trust in Independent and gamble on the success of a struggling media group.

But there is no need to search far. The PIC is not averse to losing money. The funds that invest money with the Public Investment Corporation lost more than R100 billion when former President Jacob Zuma fired Finance Minister Nene on 9 December 2015. According to Daniel Matjila, CEO of the PIC, the Government Employees Pension Fund lost R95 billion, the UIF lost R7 billion, the Compensation Fund lost R3 billion, while other funds saw R1.2 billion slide away.

 Dr Kolbe is a writer and media commentator.

@southafricanpress

@TimesLive @IndependentNewspapers

@southafrica @capetimes

@capeargus @IOLnews


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