Tuesday, July 31, 2012
Sexwale dissolves ‘dysfunctional’ Estate Agency Affairs Board
Sexwale dissolves ‘dysfunctional’ Estate Agency Affairs Board
Human Settlements Minister Tokyo Sexwale asks Special Investigating Unit to probe regulatory body of an industry that makes up 15% of South Africa’s gross domestic product
STAFF REPORTER
Published: 2012/07/31 10:16:59 AM
THE embattled Estate Agency Affairs Board (EAAB) has been placed under administration, Human Settlements Minister Tokyo Sexwale said on Tuesday.
"I am compelled in the interests of bringing certainty and order to place [the board] under administration," Mr Sexwale said in Johannesburg.
In May, the regulatory body for the real estate industry was moved from the Department of Trade and Industry to the Department of Human Settlements, which now constitutes its executive authority.
Mr Sexwale’s move to address the EAAB is seen as positive for the real estate industry, which contributes about 15% of South Africa’s gross domestic product and is seen as important to the economy.
He also called for the Special Investigating Unit to probe the EAAB.
"I’ve also decided the Special Investigating Unit must step in. They must bring in a very strong broom to clean up this mess."
The EAAB has had difficulty ensuring estate agents operating in South Africa’s property market comply with the legislation governing their profession.
The body has come under the spotlight for its poor service levels and because of numerous complaints from the property industry, including reports of estate agents operating without the mandatory fidelity fund certificates, the board not investigating complaints and failing to guide the sector.
This comes at a time when the industry has needed guidance from the board, as there have been many legislative changes in the industry, including in education, financial intelligence, compliance and company law as well as the new Property Charter, and the transformation code for the property sector.
This month alone, the board’s recently appointed chairwoman, Ina Wilken, resigned after succeeding Thami Bolani, and former acting CEO Bryan Chaplog was removed by the board. The EAAB said Ms Wilken’s departure was part of a rotation of the office of the acting CEO. Mr Chaplog, who was acting CEO for a few months, resumed the position of chief financial officer and was replaced by Clive Ashpol, the executive manager for education and training.
Mr Sexwale dissolved the board, saying it was dysfunctional.
"To date when a board is supposed to be having 15 members, they are left with three."
Mr Sexwale will hold a summit with estate agents in September.
With Thabang Mokopanele and Sapa
‘Our education system is a wreck’
Monday, July 30, 2012
‘Bank robber behind BEE deal’
‘Bank robber behind BEE deal’
Jul 23 2012 6:10AM
‘Bank robber behind BEE deal’
DEAL MAKER? Gayton McKenzie. Picture: GALLO IMAGES
36 22
PrintMailShareRate this Article
|
Barry Sergeant
For nearly two years, Nick Holland, the CEO of Gold Fields, has resolutely refused to be interviewed on a multibillion–rand “black economic empowerment” (BEE) deal that went down at Gold Fields during the 2010 World Cup.
The 2010 Gold Fields annual report would show that the BEE deal cost Gold Fields, on its numbers, R2.1bn ($298m).
The deal was seen by specialist analysts and sophisticated investors as exceptional, in that shares and assets involved in the BEE deal appeared to be simply donated by Gold Fields. There have been few mining BEE deals in South Africa where the BEE party is simply gifted, and none when the gift is worth billions of rands.
By far the main outcome of the 2010 Gold Fields BEE deal was the award of new order mining rights for South Deep, the gold mine situated west of Johannesburg. In Gold Fields’s first big BEE deal, signed in 2004, Mvelaphanda Resources agreed to pay, and did indeed pay, R4.1bn for 15% of Gold Fields’s domestic assets. In the South Deep BEE deal, billions of rands worth of Gold Fields assets and shares were simply given away.
TIGHT-LIPPED: Gold Fields CEO Nick Holland. Picture: GALLO IMAGES
Gold Fields ranks as a global Tier I gold producer, and one of the world’s top five gold producers by output. During 2011, Gold Fields paid its top executives R135.7m in aggregate; of this, R32.7m was paid to Holland. When Holland took over the CEO’s office at Gold Fields on May 1, 2008, Gold Fields was trading around $15 a share on the New York Stock Exchange.
Today it trades around $12 a share; as such it is not clear why Holland and his fellow executives are being paid such extreme amounts of remuneration. Compared to other Tier I global gold stocks such as Barrick, Goldcorp and AngloGold Ashanti, Gold Fields has underperformed, raising further questions over the quantum of bounty paid to Gold Fields’s top brass.
While Holland has refused to be interviewed over the 2010 BEE deal, which hinged mainly around South Deep, he permitted two of his internal spinmeisters, Sven Lunsche and Willie Jacobsz, to speak to the press.
The two conceded that the 2010 Gold Fields BEE deal had, in effect, been marketed by Gayton McKenzie, a convicted bank robber. According to Lunsche and Jacobsz, “advocate Jerome Brauns and Gayton McKenzie were requested by the Gold Fields executive to prepare proposals for a consortium of groups of individuals that could be included” in the BEE deal. Lunsche and Jacobsz also referred to “Gayton McKenzie (Pty) Ltd”, apparently ignorant of the fact that a convict may not own a company.
Lunsche and Jacobsz also conceded that Kenny Kunene, a convicted fraudster, was “an associate” of McKenzie, and that Kunene “amongst others, accompanied” Brauns and/or McKenzie to certain meetings. It was quickly added that “Kunene was never employed by Gold Fields in any capacity”.
Another unusual aspect of the South Deep BEE deal was that it overtly involved certain politicians, such as Baleka Mbete, who has served as speaker of the national assembly and also as deputy president of South Africa, and certain other prominent names, such as Ashwin Willemse, who once played rugby for South Africa.
When Lunsche and Jacobsz were asked about certain other names thought to be secretly embedded in the South Deep BEE deal, they replied, elliptically, that “there is no regulation or other requirement that these names be disclosed to anyone but our shareholders and the individuals were happy with this disclosure. Further disclosure would require their consent.
“However, the Gold Fields board was fully appraised of who these individuals are, were satisfied that they met the requirements for participation as determined by the board, and approved their participation.
“Furthermore, Gold Fields’s shareholders had every opportunity to inspect the names prior to the special general meeting” that was called to approve the South Deep BEE deal.
One sophisticated investor asked of the South Deep BEE deal: “Why the secrecy? Why should all the benefits not go to the poor of SA, the people for whom the ANC have struggled?”
Lunsche and Jacobsz conceded that the South Deep BEE deal was celebrated at a dinner held at Johannesburg’s ZAR Club, which had prominently featured McKenzie and particularly Kunene in various adventures.
In one article, the New York Times reported that “Kunene, a former gangster turned businessman, gave what he called ‘the mother of all parties’.
“As the revellers got tipsy on his liquor, he says he treated the most important among them – including Zizi Kodwa, President Jacob Zuma’s stylish spokesperson, and Julius Malema, the rabble-rousing leader of the governing party’s youth wing – to $1300 bottles of Dom Pérignon. Like the American rappers he emulates, Kunene him self swigged a bottle of Armand de Brignac champagne that goes for more than $1500 at his posh nightclub, ZAR, perched on the roof of a five-star hotel.”
Another highly unusual feature of the South Deep BEE deal was that it started generating cash for the BEE structure at a very early stage. According to Gold Fields’s 2010 financial statements, 0.6 million Gold Fields shares were issued by Gold Fields “to broad-based BEE partners on December 23, 2010”.
The shares were immediately sold and generated R73m in net cash, released as a dividend into the BEE structure. Within months of striking the South Deep BEE deal, certain BEE shareholders were in the cash.
“Normal” shareholders in South Deep would have waited more than 20 years to receive their first dividend.
Mine building at the South Deep site started in 1995. According to Gold Fields, the mine is now set to reach full production during 2015, two decades after the mine build commenced.
However, the upfront dividend deal for certain BEE shareholders does not stand alone.
The “normal” dividend component of the South Deep BEE deal is a cumulative preferential dividend of R20m a year for the first 10 years, R13.3m a year for the next five years, and R6.7m for the next five years, paid from the profits of South Deep.
Lunsche and Jacobsz have also refused to elaborate on the role of Gerald “Brinkley” Holden, who appears to be some kind of a foreign consultant who jets into South Africa from time to time. Holden was “not directly” involved in the South Deep BEE transaction, according to Lunsche and Jacobsz, and “is not a beneficiary of the transaction”.
This correspondent has confirmed with at least one CEO of a listed South African mining company that he was approached by Holden, with the promise that Holden would “solve” any permitting problems.
A London-based mining analyst recalls that “the whole (South Deep BEE) thing is very strange”. Gold Fields reported a significant BEE deal but at the quarterly results presentation back in 2010, it was hardly mentioned; “if you have any interest in the deal”, we were told (by Nick Holland), “please join our financial director in the room next door after the presentation”. Even among professional audiences, Holland has been loath to discuss the South Deep BEE deal.
The London-based analyst noted that while the South Deep BEE deal “was billed as 2% dilution only, but that is clearly not the whole story.
“In a document sent out later, the company admitted that the South Deep stake is probably being sold at a 60% discount”. In other words, Gold Fields’s calculation that the deal had cost Gold Fields R2.1bn was likely understated by at least R1bn.
The London-based analyst was highly critical of the South Deep BEE deal: “The BEE parties in this equation carry zero risk – all the other shareholders in Gold Fields carry the risk. Whichever way you look at it, Gold Fields gives away a chunk of the company and pays people on an annual basis to have these stakes. Gold Fields gets nothing.”
One sophisticated, long–term, shareholder in Gold Fields slammed the South Deep BEE deal, arguing that there was “no respect for the value of capital. There are huge implicit donations; shares are being gifted – Gold Fields receives no capital.”
McKenzie and Kunene first rose to prominence in the gold mining sector at Johannesburg- and London-listed Central Rand Gold (CRG).
Between 2006 and the end of 2011, CRG raised $230m in cash from investors; its latest annual financial statements reflected cash of just $5m. CRG has been a disaster, with a wake behind it of shattered promises.
CRG’s 2007 annual report shows that McKenzie was granted 250000 stock options, far more than any other employee (excluding directors); next highest were grants of 50000 options.
The options were awarded at a penny a share, when CRG was trading up around £1.40 a share. The stock has since lost 99% of its value, and currently trades at less than a penny a share.
The award of options indicated that CRG, which set out promising that it would be producing 1 million ounces of gold a year, regarded a one-time bank robber as by far its most valuable manager.
Kunene was awarded a more modest 30000 options, and later, another 20000, suggesting that as in the case of Gold Fields, he played second fiddle to McKenzie. In astonishing, possibly record-breaking, time, On September 17, 2008, CRG was awarded a package of coveted “new order” mining rights.
CRG’s audited financial statements show that in the past six years, nearly $100m has been spent on non-mining expenditure: tens of millions of dollars went on pay and bonuses for directors; further tens of millions of dollars went on other expenses, mainly “accommodation” and “travel”, and yet further tens of millions of dollars on unnamed consultants.
The New Age
Comments by Sonny
No wonder the SA Prisons are almost empty.
Between the ANC and BEE aal the Bank Robbers & other Thugs have been recruited into the mining sector.
Now we only need Malema to Nationalise all the MINES.
Selebi case like a crime novel
EENDRAGT MAAKT MAGT
Sunday, July 29, 2012
World Record Gold For Cameron
Cameron van der Burgh © Action Images
Van der Burgh bags gold medal
--------------------------------------------------------------------------------
29 July 2012, 21:18
Cameron van der Burgh smashed the world record to become the first South African men's swimming Olympic champion in winning the 100m breaststroke gold medal on Sunday.
Click here to visit our Olympics site.
Van der Burgh burnt off a crack field, including two-time defending Olympic champion Kosuke Kitajima, to shatter the world record in 58.46sec.
Van der Burgh improved the previous record of 58.58 set by Australian Brenton Rickard on July 27, 2009 at the world championships in Rome.
Australian Christian Sprenger took silver and American Brendan Hansen claimed bronze.
The South African couldn't wipe the smile off his face as he sprawled out on the lane rope taking in what was the swim of his career.
"It's a feeling I can't describe right now, it has been a lot of work in the making. Everything has paid off tonight," he said.
"If there is such a thing as the perfect race, I think I swam it at the right time tonight.
"I don't really care about the world record, once you have become an Olympic champion that can never be taken away from you.
"I can tell my kids when they are watching one day that I did that."
Van der Burgh paid tribute to Norwegian world champion swimmer Alexander Dale Oen, who died of heart failure last April while at a training camp in Flagstaff, Arizona, ahead of the London Olympics.
"I just have to pay tribute to Alexander Oen tonight, I know he has been with me this year, I think he helped me finish the race in such a strong manner," van der Burgh said.
"Alexander pushed me in training, it made me realise I had to go faster to win the gold medal, that is what we trained for and that is what we have achieved."
Kitajima finished fifth, failing in his bid to become the first male swimmer to win the same event at three successive Games.
"I wanted to defend the title, but it was really tough and I enjoyed trying to do it," Kitajima said.
"It was a really tough race and I needed the world record to win, I didn't have the ability to be honest. I will do my best in the 200m."
Veteran American Hansen, 30, a world champion in the event five years ago, was thrilled to snare the bronze medal.
"That was as fast as I can go, I was pleased with the outcome. I couldn't go any faster," the Texan said.
© Sapa
Auditors intimidated, instructed to cover up corruption: report
Murders rock ANC
FSB probe linked to double killing
FSB probe linked to double killing
( Jana Mrais ) 29 July 2012
The Financial Services Board has been investigating the activities of Herman Pretorius, who allegedly shot his former business partner, Julian Williams, before killing himself on Thursday.
" 'His death is a huge loss. This is a complete loss; a tragedy'Investors are nervously waiting to hear what has happened to their money.
In a letter to clients on Friday
from an Abante Group e-mail address, the company confirmed the death of Pretorius. "We are currently assisting the police with investigation and will provide the necessary feedback to our investors as soon as possible," read the unsigned letter, typed on a white page with no letterhead.
The sender, Tharine Swart, could not be reached for comment and did not respond to messages. Calls to the Abante switchboard were cut of
by the operator.
"We are eager to get some news on our investments," one Western Cape-based broker, who has invested his own and clients' money with Pretorius, said on Friday. "Many people around here have invested a lot of money with him and Polus Capital. I certainly hope our investments will be okay."
Pretorius allegedly shot Williams at the Basileus Capital head office in Cape Town on Thursday afternoon, ending a meeting that lasted about 90 minutes.
He fired two shots at Williams in the boardroom before shooting himself in the head.
Pretorius and Williams previously worked together at Abante Capital, which has reportedly been renamed Polus Capital, until Williams left to start a private equity firm Basileus Capital in 2008 with former Western Cape ANC chairman James Ngculu. Pretorius and some of his clients were also shareholders in Wesizwe Platinum, of which Williams was a founder.
Dawn Mokhobo, chairman of Wesizwe, described the deaths as a "tragedy". Williams, whom she had known for four years, was a "talented, very intelligent" person who could "simplify very complex business issues, particularly on the financial side.
"In board meetings, he would always be fiddling around with his cellphone or computer, which I initially thought was very disrespectful. I soon learnt that he didn't miss a word and, when he opened his mouth, he said things that were very substantial," Mokhobo said. "His death is a huge loss."
While she did not know Pretorius that well, he was an active shareholder in Wesizwe and also represented a group of wealthy investors in the company, Mokhobo said. "He was always a gentleman, and he struck me as a real good person. This is a complete loss; a tragedy."
It is understood there was a dispute between Pretorius and Williams about the non-payment of dividends by Avalloy, a Pelindaba-based manufacturer of superalloys .
According to the Avalloy website, Basileus held a 55% stake in the business through SA Superalloys, in which Pretorius allegedly sold preference shares to clients with the promise of lucrative dividend payouts.
A broker, who spoke on condition of anonymity, said SA Superalloys investors were not paid a promised dividend in March.
The FSB has no evidence that there is a link between Abante Capital, which is not registered with the entity, and Polus Capital, said German Anderson, deputy registrar: financial services providers.
Saturday, July 28, 2012
Mine rights fraud case is 'advanced'
28 July, 2012 22:11
JANA MARAIS
Mine rights fraud case is 'advanced'
Hawks will not disclose timeline in the Sishen investigation. The police investigation into allegations of fraud against politically connected Imperial Crown Trading (ICT), which was controversially awarded a prospecting right over Kumba's Sishen mine, is at an "advanced and sensitive stage", the National Prosecuting
Authority (NPA) said.
IRON FILINGS: Piles of iron ore ready for export at Kumba's mine in Sishen, near Kathu in the Northern Cape. Kumba's black empowerment partnership strategy is paying dividends - both financially and socially Pictures: KEVIN SUTHERLAND Articles
Kumba’s Kolomela mine boosts output forecast
High prices may halt Kumba's African plans
Kumba first half diluted earnings R23,03 vs R28,13 The investigation, which followed charges by Kumba's Sishen Iron Ore (SIOC) in August 2010, was assigned to top prosecutor Glynnis Breytenbach, who withdrew from the case in November last year after a complaint was laid against her by ICT's lawyers.
Business Times understands Breytenbach has been replaced by Paul Louw, another senior advocate with the NPA.
The Hawks will not tie themselves to a timeline on the investigation, spokesman McIntosh Polela said.
"As you know, it's a very complex case. Once the investigation is complete, there will be a decision to prosecute."
ICT, whose directors include deputy president Kgalema Motlanthe's partner Gugu Mtshali and Jagdish Parekh, a business partner of president Jacob Zuma's son Duduzane, is accused of using forged title deeds in its application and lying about the date documents that formed part of its application were submitted to the Kimberley office of the Department of Mineral Resources.
Breytenbach was suspended from the NPA in April on charges relating to the ICT complaint, which her legal team argues is a smokescreen for the real reason: her refusal to drop an investigation into suspended intelligence boss Richard Mdluli.
ICT's allegations of misconduct and an improper relationship between Breytenbach and Kumba's lawyers on the ICT matter were discarded in a Northern Cape High Court ruling by Judge Hennie Lacock in May.
The NPA this week refused to disclose the identity of the prosecutor assigned to the case.
"We are not in a position to disclose names of prosecutors allocated cases which are under investigation by the police," NPA spokesman Mthunzi Mhaga said.
Ronnie Mendelow, ICT's lawyer, said his client will lay criminal charges against SIOC.
The appeal lodged by ICT and the Department of Mineral Resources against a North Gauteng High Court ruling setting aside the awarding of prospecting rights to ICT is unlikely to be heard by the Supreme Court of Appeals before next year. Judge Raymond Zondo ruled in December that SIOC already holds a 100% mining right at Sishen.
Friday, July 27, 2012
Bombshell: Leaked UN Treaty Does Ban Guns
Subscribe to:
Posts (Atom)