Crime Intelligence puts gag on officers

Crime Intelligence puts gag on officers
CHANDRÉ PRINCE | 04 July, 2012 00:11

Richard Mdluli. File photo.
Image by: PEGGY NKOMO
Police officials have been sworn to secrecy following leaks of sensitive information, including that which led to the downfall of spy boss Lieutenant-General Richard Mdluli.

EmailPrintSeveral months after a barrage of allegations - including widespread corruption, looting of a secret police slush fund and the murder of a former lover's husband - brought Mdluli down, The Times has established that all members of the Crime Intelligence Unit have been made to sign confidentiality agreements in a massive clampdown on whistle-blowers.

Two weeks ago, police officials in Gauteng, including senior policemen and administrative staff, were handed a document prohibiting them from discussing with the media any information pertaining to police matters.

Failure to adhere to the confidentiality agreement could result in policemen being charged departmentally - even if only on suspicion. They could be subjected to polygraph tests and have their cellphone records scrutinised. Even worse, they could be fired.

The clampdown was enforced just two weeks after newly appointed national police commissioner Riah Phiyega took command.

Though it is not known who ordered the gagging, Crime Intelligence officers say it amounts to "scaring" and "bullying" tactics.

Major-General Chris Ngcobo has been appointed acting head of Crime Intelligence until the issues around Mdluli have been resolved.

National police spokesman Brigadier Lindela Mashigo said yesterday that there was "nothing sinister" about the confidentially agreements.

"It is standard practice, and especially in the crime intelligence environment, that confidentiality agreements are signed so as not to jeopardise sensitive operations."

But at least three long-serving Crime Intelligence policemen said even colleagues who were on leave were called back to their office to sign the agreements.

"It clearly shows that they want to victimise those who have legitimate concerns about some of the dealings within this unit. Crime Intelligence is in a mess and it's no secret.''

Mdluli, they say, would not have been exposed had it not been for the courage of some of their colleagues who leaked dossiers on his alleged criminal activities to the media.

"Apart from the millions he is alleged to have siphoned from the police slush fund, he is also implicated in a murder," said a senior police officer. "The police sat with this information and reported it to some of their superiors, but were instead victimised.

"As a police officer, you cannot sit like a stooge and allow senior officers to commit crimes. [Then you would be] as good as guilty just by association."

Mashigo failed to answer detailed questions about who ordered the gagging and why, and what measures would be taken against officers found to have leaked information.

Institute for Security Studies policing expert Johan Burger said he found it "quite strange" that the police were now going all out to protect information. Burger agreed it was necessary for the police to protect sensitive information pertaining to state security, but said this should not be an excuse for protecting officials implicated in crime.

"They are more intent on pursuing the person who leaked info about a criminal activity [than] asking why they have a criminal among them."

The police should be questioning why its members leaked information to journalists instead of following internal channels, said Burger.

"Because internal structures [to encourage whistle-blowing] don't work well, and because members don't trust some of their superiors . that's why we have leaks."

Burger pointed to leaks that led to the axing of former national police commissioner Bheki Cele for his role in the awarding of controversial police headquarters lease deals.

Earlier this year, acting national police commissioner Lieutenant-General Nhlanhla Mkhwanazi threatened to fire his entire internal audit team if they refused to disclose who had leaked a document on firearm competencies.

In March it was reported that the unit had compiled a scathing draft performance audit report that said that 27329 police officers on active duty had failed their firearm proficiency tests.

In April last year, The Times reported that Mdluli had allegedly launched a witch-hunt to stop two Crime Intelligence officers investigating his alleged role in the murder of Oupa Ramogibe, a former lover's husband. Mdluli has repeatedly denied the allegation.

The two seasoned policemen had been subjected to surveillance and unauthorised cellphone tapping since February 2009 and were threatened with demotions and transfers to units hundreds of kilometres from their homes.

The murder and other criminal charges against Mdluli were provisionally withdrawn earlier this year. An inquest into Ramogibe's death is under way.

Why's Crime Intelligence clamping down on whistleblowing? - DA

Why's Crime Intelligence clamping down on whistleblowing? - DA
Dianne Kohler Barnard
04 July 2012


Dianne Kohler Barnard says gagging orders hardly the best way of fighting corruption


Stop talking about corruption and start ending it

At the same time that Minister of Police Nathi Mthethwa was calling for the Independent Police Investigative Directorate (IPID) to investigate "systemic corruption" within the SAPS, Crime Intelligence officers were being made to sign confidentiality agreements to prevent them from whistleblowing (see Times report).

This is hardly the way to end corruption, and the timing of a gagging order preventing Crime Intelligence officers from whistleblowing is both suspicious and ironic.

The gagging order follows the recent suspension of Crime Intelligence head Richard Mdluli after serious charges of corruption and criminal activity were revealed based largely on leaked information from his former colleagues.

The proposed confidentiality agreements will effectively gag any Crime Intelligence officers who wish to come forward with evidence of corruption against colleagues, thus ensuring that corruption remains hidden and accountability is effectively avoided.

The DA welcomes the Minister's call to address corruption. Now he must show that he means what he says by taking concrete action to weed out corrupt members of the SAPS. The fact that the SAPS disciplinary hearing of Mdluli was postponed "indefinitely" this week does not bode well for the Minister's new-found commitment to fighting corruption within the SAPS ranks.

The Minister has called for proposals on how to deal with the scourge of corruption. The DA knows how to correct the ill-considered, self-serving and consequentially disastrous decisions taken by Jackie Selebi during his tenure, and that is to first and foremost re-instate the specialised Anti-Corruption Unit. Since 2007 the Minister has ignored repeated calls by the DA to re-open specialised units, and despite evidence of escalating corruption within the SAPS still resists the reopening of the Anti-Corruption Unit.

As a member of the Portfolio Committee on Police, I also encourage SAPS whistleblowers to contact me directly with evidence of corruption in the Police and Crime Intelligence services.

Statement issued by Dianne Kohler Barnard MP, DA Shadow Minister of Police, July 4 2012

Sisulu will co-operate with aviation probe

Former defence minister Lindiwe Sisulu would co-operate with the Auditor General and the Public Protector on a probe into the tender process to buy a new presidential jet, her office said on Tuesday. 03 July 2012 | Sapa JOHANNESBURG - Spokesman Ndivhuwo Mabaya said: "No information would be provided to the DA and there is no basis in law for the Ministry to do so". He was responding to the Democratic Alliance's challenge to Sisulu that she produce proof that the tender process was sound. Earlier DA MP David Maynier said: "Sisulu should produce documentary evidence that the Minister of Finance, Pravin Gordhan, approved the deviation from normal competitive bidding processes." Mabaya said: "It is our suspicion that the DA is demanding this information in order to parade it in the media but not for oversight and monitoring of the work of the department." He said the party was ignorant of the government's procurement processes, as ministers were not responsible for buying but were mandated to create "an enabling environment". This included submitting the project to Cabinet and consulting with the finance minister. Rather, accounting officers, director generals and chief financial officers were responsible for rolling out procurement processes. Mabaya appealed to the DA to let the Public Protector and Auditor General's investigations unfold. On Monday, Sisulu said she was "absolutely convinced" the department had followed correct procurement processes regarding the R2 billion Boeing 777-200 Long Range business jet. She said the defence department had taken advice from National Treasury as well as the accountant-general on the potential purchase, which had been making headlines since the weekend. On Monday Mabaya said she had called for the deal to be suspended to allow her successor at defence, Nosiviwe Mapisa-Nqakula, to redefine the department's priorities. Maynier also took issue with this step, calling it an attempt to distance herself from the matter. "This sounds too much like a useful pretext to extricate herself from a dubious deal to purchase a new jet for President (Jacob) Zuma," he said. Die Burger newspaper reported that Sisulu had planned to use a R3.5 billion refund the government had secured on the cancelled purchase of eight A400M Airbus military transport planes to buy the new jet. According to the daily, Sisulu wrote to Gordhan last month, asking to be exempted from the normal tender rules because buying a new plane for the president was a "matter of national security". Maynier said if Sisulu produced documents to prove that Gordhan approved the deviation from the normal bidding process, he would withdraw his request that the Public Protector investigate the matter. Both the DA and the Inkatha Freedom Party said it was unconscionable that the government would spend that much on a presidential jet when so many South Africans lived in poverty. "This money could be better spent in trying to alleviate the many burning issues our country faces, such as our socio-economic challenges," the IFP's defence spokesman Albert Mncwango said. The Citizen Comments by Sonny Lindiwe Sisulu does not possess the ability to co-operate. She would rather lead the pack and mislead her peers and the citizens of SA. Her redeployment bears witness to her hidden agendas. She remains a loose cannon.

Madonsela: Proof is in the probing

Madonsela: Proof is in the probing
2012-07-02 22:36


Thuli Madonsela has defended herself against claims that she is selectively tackling alleged corruption involving a friend, saying if she wanted to protect anyone, she would not have decided to investigate. (File, Beeld)

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Johannesburg - Public Protector Thuli Madonsela on Monday said she wanted to place on record that in terms of the law she was not compelled to undertake any investigation, but had discretional power to do so.

"Madonsela has noted with disappointment media comments attributed to member of parliament Bantu Holomisa and commission employees, regarding her investigation into the procurement of a building by the IEC for its headquarters," spokesperson Kgalalelo Masibi said.

According to reports on Sunday Madonsela was under fire from Independent Electoral Commission staff and the United Democratic Movement.

She had been accused of selectively tackling alleged corruption and maladministration involving her friend, electoral commission chairperson Pansy Tlakula, the City Press reported.

Concerned commission employees had written to Themba Godi, the chairperson of Parliament’s standing committee on public accounts, and the commission's deputy head Terry Tselane, asking them to investigate a multimillion-rand lease involving Tlakula's business partner.

City Press reported Holomisa had lodged complaints against the commission with Madonsela - but he was unhappy with her progress. His complaint relates to the commission’s R320m office lease, in which Parliament’s finance portfolio committee chairperson Thaba Mufamadi's company, Manaka Property Investment, has a stake.

In a statement Masibi said Madonsela wished to place on record that Holomisa had been given feedback by the public protector directly on previous one to one encounters.

A letter was written to him on Friday indicating the status of the investigation.

"Incidentally, Tlakula herself has also complained about the delay in finalising the investigation."

Madonsela added she was not compelled to accept Holomisa's request to investigate, but had decided so after assessing the matter.

"If she wished to protect anyone, she would not have decided to investigate."

The delay in finalising a provisional report was due to new information that needed to be followed up through interviews and all relevant parties had been duly notified.

"It is not true that Madonsela is friends with anyone in the IEC. Should anyone have evidence to the contrary, the Public Protector would like them to come forward with such."


- SAPA

Read more on: iec | thuli madonsela | bantu holomisa | pansy tlakula

Barclays chairman quits over Libor rate-fixing scandal Steve Slater and Sinead Cruise, Reuters Jul 2, 2012 – 9:22 AM ET Reuters Britain’s third-largest bank Barclays sacrificed its chairman Marcus Agius, centre, over an interest rate rigging scandal, but that has not taken the heat off chief executive Bob Diamond. Comments Email Twitter inShare 1 LONDON — Barclays Plc sacrificed its chairman Marcus Agius over an interest rate rigging scandal that has dealt “a devastating blow” to the bank’s reputation, apparently seeking to defuse calls for chief executive Bob Diamond to go. Agius – who said “the buck stops with me” – is the first major scalp from the scandal, which is likely to involve more banks and could also embarrass regulatory authorities. But Agius’s departure from Britain’s third-largest bank did not take the heat off Diamond, who was running Barclays’ investment banking arm when the interest rate manipulation took place. Related Barclays is getting hammered as Libor scandal explodes Barclays pays US$453-million to settle U.S., U.K. Libor probes “The buck in Barclays stops with Bob Diamond, and it is Bob Diamond who must accept responsibility,” said John Mann, a Labour politician who is part of a panel of lawmakers who will grill Diamond on Wednesday, and Agius on Thursday. “He (Diamond) must resign. He’s got to go. There is no role for people like him if banking is to be trusted again in this country and if British banking is to restore its tarnished reputation in the world, which of course is of great importance to our economy,” Mann said on Sky News. Barclays has admitted that some of its traders attempted to manipulate the London Interbank Offered Rate (Libor), which is used worldwide as a benchmark for prices on about US$350 trillion of derivatives and other financial products. Prime Minister David Cameron has called the scandal “extremely serious” and said management had “some big questions to answer”. Authorities also ordered a review into the working of Libor, a key lending rate between banks. The Barclays affair comes at a time when banks in Britain – already under fire for their role in the financial crisis – are facing a new wave of public outrage. A technology problem at RBS shut millions of customers out of their accounts last month, and evidence has emerged showing banks mis-sold financial products to small businesses. FAR AND WIDE Fined US$453 million by U.S. and British authorities, Barclays is the first bank to settle in an investigation which is looking at more than a dozen other banks, including Citigroup, HSBC, UBS and RBS. “Barclays has become the poster child for this because they have been the first to be assessed by the regulators,” Euan Stirling of Standard Life Investments, which holds some 2% in Barclays, said on BBC radio. “I think this is going to spread far and wide through the industry,” Stirling said. Smaller shareholders were more robust in their demands for Diamond to take responsibility. “I still think it is going to be hard for Bob Diamond to keep his job. I don’t think he has built up enough shareholder goodwill in the past to be able to ride this one out,” said a top-25 investor in the bank, who asked not to be named. Barclays shares were up 4% at 1159 GMT, outperforming a 2.2% rise by the European bank index. The exit of Agius was not seen as a big blow, analysts said, and a 17% crash in the past three trading days looked excessive in light of the hit the bank is likely to suffer. CONVERSATION WITH THE BOE Lawmakers this week are likely to quiz Agius and Diamond on what the Bank of England (BoE) and other regulators knew about the rate-rigging at a time that unsecured interbank lending had virtually dried up during the crisis. The hearings could prove embarrassing for the central bank, after sources told Reuters a conversation held in October 2008 cited in documents released by U.S. authorities last week was between Diamond and BoE Deputy Governor Paul Tucker. Some people at Barclays mistakenly believed they had been granted permission to submit artificially low rates for Libor after the conversation, the documents showed. “It is nonsense to suggest that the Bank of England was aware of any impropriety in the setting of LIBOR,” a BoE spokesman said. “If we had been aware of attempts to manipulate LIBOR we would have treated them very seriously.” Barclays has admitted it submitted artificially low estimates of its borrowing costs from late 2007 to May 2009 because it thought rivals were doing the same, and higher submissions would make it appear to be in trouble. Barclays employees expressed their concern that Libor rates were being set too low to the British Bankers’ Association – the UK banking lobby group that is also responsible for setting Libor – the Financial Services Authority, the BoE and the Federal Reserve Bank of New York between November 2007 and October 2008, a U.S. Department of Justice document said. However, the employees did not provide “full and accurate information” to the authorities, the document said. Barclays said it would launch an audit of its business practices, led by Michael Rake, its senior independent director, who will move up to deputy chairman. Rake is seen as a strong candidate to become Barclays’ next chairman – especially as he was not appointed to lead the search – although he is already chairman of BT Group and easyJet , and may have to give up one or both of those. The audit will undertake “a root and branch review of all of the past practices that have been revealed as flawed” and assess implications for its practices and culture. Diamond said its recommendations would be implemented in full. Agius said Barclays had been “well served by an excellent executive team”, first led by John Varley, and now by Diamond. Cambridge-educated Agius became chairman at the start of 2007 after more than 30 years as an investment banker and then chairman at Lazard. His wife Kate, a successful art dealer, comes from the Rothschild banking dynasty. Wealth-X, the Singapore-headquartered research house which tracks the wealth of the world’s richest people, estimates that Agius has a net worth of at least US$35 million. “Last week’s events – evidencing as they do unacceptable standards of behaviour within the bank – have dealt a devastating blow to Barclays reputation,” Agius said. “I am truly sorry that our customers, clients, employees and shareholders have been let down,” he said. Agius also relinquished his position as chairman of the BBA, a role that is drawn from the senior ranks from one of the banks. The BBA said its board would meet soon and make an announcement about a successor in due course. © Thomson Reuters 2012 Comments by Sonny Barclays, ABSA NOW! Why will bank CEO's worry if their clients FRY? Same principals as SHAREMAX? Who's next?

It's not hard to spot a con..

July 02, 2012 10:34:37 AM

It's not hard to spot a con...
July 2 2012 at 05:00am
By Ethel Hazelhurst


--------------------------------------------------------------------------------

How can you distinguish between a scam and a genuine investment opportunity? This was a question asked at a Reserve Bank briefing last week, to alert people to the dangers of pyramids and Ponzi schemes.

There are a few ways to answer the question. Most simply: an offer of 200 percent in annual returns is a good indicator that the scheme is a con. But investors – and not just the ignorant – are apparently unable to see this.

An alleged Ponzi scheme set by up Barry Tannenbaum and exposed in 2009 reportedly offered returns of this order. And those who fell for it included former Pick n Pay chief executive Sean Summers, former head of OK Bazaars Mervyn Serebro, ex-Bond Exchange of SA chief executive Tom Lawless and former JSE chairman Norman Lowenthal. No wonder a humble journalist asked for guidance.

Another questioner at the launch of the Reserve Bank’s campaign against pyramid schemes and Ponzi schemes tried to pin some of the blame on the banks.

“Isn’t the problem that the gap between what the banks offer and what these schemes offer is too big?” he asked. Well, the reason the gap is so big is that the banks give your money back to you, as agreed, while assorted illegal money schemes and other cons just swallow it up.



But the question implied that the banks were Scrooges and should be forced to provide higher returns. Perhaps the questioner thought the Reserve Bank could initiate legislation to force banks into cloud cuckoo land – along with those who think high returns on investment are a basic human right.



Part of the reason things go miserably wrong in an economy is that too many people cling to their ignorance. Perhaps they feel safe cocooned in a miasma of misinformation and disinformation. In 1964, psychiatrist Eric Berne published a book called Games People Play. Among the games he described was “if it weren’t for you”, in which people choose the role of victim because it is easier than accepting responsibility for their own actions.



The game has been actively played in Greece over the past 30 months, where angry citizens blamed their government because it was no longer able to provide the unrealistic benefits they had received in the past. Similar sentiments echo all round Europe, where people object to the retirement age being raised to ensure that there are enough working people to support the retired. In cloud cuckoo land there is an alternative.



Politicians are quick to take advantage of the situation.



In Germany, in 1933, Adolf Hitler promised voters prosperity in a thousand-year reich. Given the rest of his agenda, they should have spotted the problem. Instead, the voters perceived his policies as credible and put him in power. Twelve years later, German cities were reduced to rubble and the economy was in ruins.

In apartheid South Africa, the supporters of the National Party voted them into power election after election until the country ran out of net reserves. To their credit they faced reality when there was no foreign exchange to replace ageing Mirage jets for the border war. And they eventually voted “yes” to change.

Greece has yet to face the reality test. The anti-austerity Syriza party gained 26.9 percent of the vote in last month’s election. And the majority coalition is on shaky ground.

People love a spellbinder. Listening to hogwash gives them hope and relieves them of the responsibility to think.

Phiyega's ties to XON a concern - Dianne Kohler Barnard

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