Deep flaws in police unti exposed at Marikana inquiry

The article as it appeared in Friday's Mail and Guardian.

Public order policing came under the spotlight this week at the Marikana commission of inquiry as the cross-examination of Lieutenant Colonel Salmon Vermaak continued.

The North West air wing chief listed inadequate training and poor information management as some of the main failures of the public order police (POP) unit, whose mandate is to provide crowd control.

The cross-examination on Wednesday, led by advocate Anthony Gotz on behalf of the Association of Mineworkers and Construction Union (Amcu), referred to a letter written by Vermaak to the provincial police commissioner in December 2012, four months after the Marikana massacre at the Lonmin mine. The police killed 34 striking mineworkers and injured more than 70 people on August 16 that year.

In the letter, Vermaak raised his concerns about the inadequate training of the unit's members, their incomplete knowledge of legislation and standing orders, inexperienced commanders in charge of operations, the lack of essential equipment, the inadequate use of available equipment and the insufficient gathering of information and intelligence.

Vermaak also said there had been a decrease in the unit's personnel after restructuring, and that the decentralisation of the department had made it difficult to handle major situations.

During cross-examination, Vermaak produced the unit's procedural manual for information management, which was added as a new exhibit. According to him, the lack of information management was one of the main failures of the public order police at Marikana.

"In the past, it was stipulated what was expected from the information manager to keep the operational commander up to date, so that he can make the necessary decisions on that," Vermaak told the commission.

He was concerned about the lack of information available at Marikana in August 2012. "I did not know of anyone in POP information [management] making an input during that operation."

Dramatic rise in killings

Gotz drew Vermaak's attention to the addition of paramilitary police units, such as the tactical response units (TRTs), which often resorted to "heavy-handed methods" when policing public events. He referred to the dramatic increase in the number of people killed by police during 2011 compared with previous years.

Vermaak said that things could have turned out differently on the day of the massacre. "I believe that if myself or Brigadier [Adriaan] Calitz [had been] in charge of that operation, we would only have used public order policing and not TRT and other units."

He said that the mandatory psychological testing of the public order policing members has fallen away.

The commission, which started in October 2012, was appointed by the president to investigate the tragic events at Marikana.

Phase two of the commission, which began last week, will deal with the underlying causes that led to the incident.

The commission, which is led by retired judge Ian Farlam, was meant to be concluded by the end of this month but, according to the commission's secretary, Phuti Setati, the inquiry is waiting to hear from Farlam whether this will be possible.

Migrant workers 'alienated'

The second public seminar held on Wednesday by the Marikana commission of inquiry explored migrant labour in the mining sector.

A series of seminars are being held to probe the underlying causes of the August 2012 Marikana massacre.

Industrial sociologist Gavin Hartford, the director of the Esop Shop, examined why strikes occur in the mining industry in his presentation Migrant Labour Post-Apartheid: What Transformation, What Solutions?

Hartford pointed to the change in migrant labourers' post-apartheid living conditions, with collective bargaining ensuring that they received some form of allowance to enable them to buy or rent houses.

This development saw vast numbers of labourers leave the mine hostels to set up homes. The result, however, was that labourers then had two households to maintain – one at the mine and one in the area from which they originated. This had a major impact on the socioeconomic landscape.

"Their conditions have changed significantly … and this is the key driver of their demands," the sociologist said.

Added to this, he said, is the trade unions' failure to address these demands effectively: collective bargaining is now done by union members who are paid a lot more than the labourers they represent.

"A-level [lower-earning] employees have little or no representation in the unions at all levels," Hartford said. This has led to the collapse of constituency-based representation.

This, and the failure of line managers to address labour issues, has led to the "massive alienation" of migrant labourers, who then "start to take industrial action unilaterally to address issues of employment".

The presentation of Professor Francis Wilson, from the University of Cape Town's school of economics, addressed the consequences of migrant labour. It was titled End to Migrancy: What Consequences, What Response?

He said that, although mining cities such as Johannesburg had become "locations of capital accumulation", the labour-sending areas, mostly former homelands such as those in the Eastern Cape, became ­poverty-stricken as their ­agricultural productivity dropped.

The short-term solution, according to Wilson, would be for labourers to send more remittances home. This could result in a drop in poverty levels from 67% to 48%.

He said that people in the labour-sending areas could make more use of social security benefits, such as grants, to lift them out of hunger poverty.

A long-term solution would be for migrant labourers and their families to relocate permanently to urban areas; another would be to invest in infrastructure, agriculture and industry in poverty-stricken areas.

The next seminar will be held on April 16. It will focus on the phenomenon of violence during strikes.

Published in the Mail & Guardian on 11 April 2014.

Human beings died that day

Death. Death. Death. Lots of death. The past two weeks have revolved around death. First in the form of the play, “A human being died that night” and this week in the form of the Marikana Commission.

I don’t even know how to write this coherently. At the moment, Lt Col Vermaak is being cross examined by Advocate Anthony Gotz (representing Amcu), who is repeatedly asking Vermaak why he did not stop the operations on the ground in Marikana when he saw from his helicopter that there were bodies on the ground, who were either seriously injured and/or dead.

Vermaak’s response was that he sent the information through to his superiors and that it was in their hands to make a call.

Gotz then asked him if he is not prepared to share in the responsibility of the deaths of the people. To which Vermaak responded that he is not, because he had done his duty by informing the relevant people.

Vermaak also said that if he was in charge he would have stopped the operation after seeing the bodies on the ground.

In the play, “A human being died that night” Eugene de Kock AKA Prime Evil is interviewed in his jail cell by Pumla Gobodo-Madikizela… As the play progresses, de Kock is humanised. And the audience is drawn in as Pumla’s resolve not to have any form of emotional connection with the man is gradually dissolved. You are drawn into her mixed emotions – disgust, confusion and dare I say sympathy?

All of this leaves me baffled at human’s capacity for violence and brutality. But it also makes me question humanity. It makes me question myself. What would I have done in those situations? What am I capable of?

Even the Oscar Pistorius trial makes me ask these questions. What kind of atrocities am I capable of inflicting on other human being? How would this sane, law-abiding, educated citizen react under those circumstances and in those contexts?

I am not in any way trying to excuse in any way what these people have done. I am just wondering whether or not the rest of us would be capable of the same.

Yesterday afternoon I attended one of the seminars organised by the Marikana Commission in order to uncover the underlying issues that led to the Marikana massacre. The topic was migrant labour. At the end of the presentations, the floor had an opportunity to engage with one another and the speakers. Many miners and family members of the deceased were there.

One widow stood up and as she addressed the audience got increasingly emotional. She comes from Nelspruit, is being put up in a hotel along with other family members of the deceased during the duration of the commission. She sleeps on a bed and gets to choose what food to eat every day. At home, she would usually sleep on the floor. Her children are sleeping on the floor at home and are going hungry. “The money you pay for the hotel is a lot of money, you should rather give that money to us,” she said through a translator.

“I want assistance. I am starving. I am sick. I am suffering from stress. My husband was always at work but I didn’t get anything [from Lonmin]. Was I also supposed to die? I’m just as good as dead.”

The distraught, inconsolable woman eventually had to be carried out of the room as she broke down.  It was heart breaking.

Digging dung… Reflections on amaBhungane

Photo: www.fifdirect.org.uk

Being an investigative journalist feels a bit like being a detective (not that I’ve ever been a detective, but I’m sure this is what it would feel like).
So for this post I’m being pretty lazy (yes, detectives are lazy too) and am adapting the exit report I wrote for amaBhungane after my three month long investigative journalism internship.
For those who are wondering, let me first tell you more about what amaBhungane is before I waffle on about my internship experience. amaBhungane AKA the M&G Centre for Investigative Journalism, is a “non-profit company founded to develop investigative journalism in the public interest”.
amaBhungane means “dung beetles” in isiZulu and they have possibly the best slogan in the world… “Digging dung, fertilizing democracy.”
To read more about amaB (as it is fondly known) and about why investigative journalism and the non-profit model is important, click here (see, I’m being lazy again).
The amaB offices are based at the Mail & Guardian offices in Johannesburg (although some of the amaB team members are also based in Cape Town and Durban), and the stories written are published in the newspaper, which comes out every Friday and is distributed across southern Africa.

Now, back to my experience…

The amaB internship was an incredible, and unfortunately went by way too quickly. When I got the phone call in October last year offering me the internship, I couldn’t believe it. I had applied for it knowing that I didn’t fully meet all the requirements that were set out in the advert (namely that I wasn’t working in mainstream media and had virtually no investigative journalism experience).
As such I arrived at amaB full of hope, excitement and ready to really make the most of the opportunity, but also not entirely confident. It was fairly daunting knowing I was coming to a very politically orientated publication – when I have had almost no experience in this field.
Despite knowing about my background, the amaB team treated me with confidence from the beginning and that in turn bolstered my own confidence.

Stories and what I learnt (The dodgy pastor)

I had a few stories published while working for amaB, and you can scroll down on my blog to read them.
The first story that I did was about a pastor who was appointed municipal manager at Camdeboo Municipality in the Eastern Cape, despite numerous charges of fraud and corruption hanging over his head. Although relatively speaking a small story, it was a very good initiation for me.
 One of the biggest things that I learnt from that story and which is something that I have to continue to work on, is how to process a large amount of information/documentation, but not get bogged down by the details and essentially learn how to take the main points out of them and put those across in a story.
Drew Forrest (amaB associate partner and intern supervisor) was really great at helping me with this and frequently brought me back down to earth when I got too wrapped up in small, complicated details.

amaB is awesome

Something that’s really awesome about amaB, is that even if you’re working alone on a story, you actually aren’t. The team meets three mornings a week (via skype) and discusses what everyone is working on. I found that very stimulating. Being able to share ideas, get advice, be asked questions, ask questions, have other people review the documents/evidence/information was fantastic. It not only helped me to further my stories, focus them, to know what to do, think about new aspects, but it was also obviously good for me to know that someone else was “checking up on me” to make sure I wasn’t screwing up. It was also useful to talk about the other journalists’ stories during the skype meetings, just in terms of broadening my horizons and hearing how they were approaching their stories etc.
Writing such long, complicated investigative pieces was also a massive learning curve. It was a challenge to work out what the lede (intro) is and how to write it in a catchy, “sexy” way (Drew is great with this), how to order the story, how to make things flow, and basically just how to put massive amounts of info down in the most sensible, “simple” and reader-friendly way possible.
I would sit with Drew while he edited my stories. He is a magician when it comes to writing things in the most concise manner, swopping paragraphs around to change the order and the flow and using certain words to make the jumps between topics more seamless. I learnt so much about writing and about editing just from these few intense editing sessions.
Apart from that I also learnt about more tricks and tools of the trade used by investigative journalists and better ways of protecting sources and keeping sensitive information secret.

Stories and what I learnt (Blvoor Mine)

I worked with one of the permanent investigative reporters, Sally Evans, and the other two interns, Tileni Mongudhi (from Namibia) and Justice Kavahematui (from Botswana) on a story about Blyvoor Mine in Carletonville.
It was good to work with one of the permanent investigative reporters, because it gave me an insight into how she does things, how she operates and approaches a story, what kind of things she asks her sources, etc.
We had to do this story fairly quickly and it was a massive pull-together team effort between the four of us. I landed up interviewing some of the main “protagonists” of the story, and had to keep my cool through various rants and personal abuses thrown at me.
Myself and the other two interns, as well as a photographer, also visited the Blyvooruitzicht town to speak to people on the ground and popped in at the mine, where I nearly got arrested. Never a dull moment!

Stories and what I learnt (Hydro power)

While working at amaB, I had the incredible opportunity to travel to the Northern Cape for a few days to do some more research on a story I was writing about the proposed hydroelectric schemes for the Orange River - the most contentious being the ones planned at Augrabies Falls and Orange Falls.
The trip to the Northern Cape is a story in itself, which I will endeavour to write up sometime soon. But what was really valuable for me, was that when I got back to work, Drew was on leave. As such, I had to deal with the newsroom myself in sorting out what photos needed to be used, dealing with the sub-editors and finalising the pages. It was very interesting for me to be part of the production process.

“Aha” moment

Graphic: krystle-rose.blogspot.com

To end off, I want to describe a feeling I had very early into the internship. It was probably about the second or third week when I had an “aha” moment - finally realising that this is why I am doing journalism. When I went to university my lecturers laughed at me for saying I was studying journalism in order to save the world. And at my previous publication I was mindlessly churning out fluffy pieces… This internship made me realise that I want to be a dung beetle, doing investigative journalism. I love digging. I love the challenge of it. I love the satisfaction one gets when you finally get information, or get hold of a source, or figure out a piece of the puzzle. I love going beyond just the everyday surface level stories. But most of all I love that feeling of uncovering wrong-doing and injustice, in the hope that by exposing it something will then be done about it and a contribution will be made towards democracy.

Orange scheme turns locals purple

‘Dis onse valle daai [Those are our falls]”. This is the resounding ­sentiment among the people of Onseepkans, the closest South African town to the proposed hydroelectric scheme at Orange Falls.

This small community next to the Orange River is about 50km from Pofadder. Surrounding the dirt road to Onseepkans is shrubby, semiarid vegetation: quiver trees and rocky outcrops punctuate the landscape. In the distance, the many hills signal Namibia. Barring a power line that runs along the road, there is almost no sign of human development.

In Onseepkans, the vegetation is replaced by stubborn yellow dust and many former homes stand empty, roofless and windowless.

The community feels so strongly about the hydro development that their councillor, the mayor of Khai-Ma municipality, Aurelia Josop, cut short a presentation by ­consultants Aurecon in February.

According to Khai-Ma communications officer Alfriedo Green, the municipality was informed about the proposed development the day before the public participation meeting.

Onseepkans.
Photo: Gabi Falanga

'We want our falls unviolated'

Alphonsus Biba was born in Onseepkans, and now runs his building company in Pofadder, which is where he attended a public participation meeting.

“It felt like they [Aurecon] wanted to bully us,” Biba said, referring to Aurecon’s dismissal of questions and the impression given that the developments were a done deal.

Biba reminisces about time spent at Orange Falls, and the barbel they would catch below the falls. It was also the place where he first saw the “river bird”, or fish eagle, catch a fish.

“The community is unhappy. It isn’t going to see any of the benefits. Those are our falls, we want [them] just as [they are], unviolated, with just the baboons, fish and birds that live there.”

Similarly, Jerome Jaar, an Onseepkans resident, talks about the different descriptive names the locals have for the spots surrounding the waterfall: Abram se gat (Abram’s hole), Sandmond (sand mouth) and Witklip (white rock), to name a few.

“Our people can’t go all the way to Augrabies [Falls], so we take our children to Orange Falls,” said Jaar.

He believes it is unfair that the power generated by the project will not be used in the town. “Onseepkans is always sucking on the hind tit.”

River rafting guide, Alex Morkel, from Onseepkans is concerned that a hydropower development at Orange Falls would discourage tourists from visiting the area and that he may lose his job as a result. Here he is next to the Orange River where it forms the border with Namibia.
Photo: Gabi Falanga

No benefit for local South Africans

Orange Falls Hydro Electric, a special purpose vehicle created by the developers, considers this to be a Namibian project, and so local South Africans will not benefit.

But the border between Namibia and South Africa is contested, the Namibian Constitution considering it to be in the middle of the river, whereas South Africa regards it as being at the 100-year flood line on the northern side.

The sentiments of the residents of Pofadder and Onseepkans are informed to a large extent by their experience of the solar power plants being built between the two towns.

“People promise moonshine and roses, but we’ve seen no benefits,” said Jaar.

Edward Vries, Khai-Ma ­municipality’s acting municipal manager, echoes this: “With solar power, there were all kinds of promises, including trusts to ­benefit the community, but nothing has materialised.”

Vries and Green spoke about Khai-Ma’s plans to promote ecotourism in the area. “We want to see more local people taking ownership of ecotourism projects,” Vries said.

One person who already benefits from ecotourism is river guide Alex Morkel, who is employed by rafting company Gravity Adventures. He believes development at Orange Falls would be unfair.

“I will lose my job and no work will be provided for our people. Many overseas people come here to see the falls. I also want my children to see the place.”

Attempts to contact members of the Karasburg community in Namibia were unsuccessful.

In the area surrounding the Augrabies Falls National Park, the perception is that South African National Parks will ensure that no development takes place in the park.

Temporary accommodation in Pofadder for solar plant labourers. Broken promises and the rise in social problems that came with the solar plants has left a bad taste in the mouths of Pofadder residents. This is one of the reasons why the community is hesitant towards potential hydroelectricity developments.
Photo: Gabi Falanga

Mixed feelings

One source, who asked to remain anonymous, expressed concern that the mere fact that a development in the national park was being entertained was highly problematic, and said that, should the development be approved, it would set a precedent which could be detrimental to other national parks in the country.

The source cited concern about project partner Hydro Tasmania’s (previously known as the Hydro-Electric Commission of Tasmania) controversial action in the 1970s, when Australia’s Lake Peddar was dammed as part of a hydroelectric generation scheme. The government revoked the lake’s national park status in order for the project to go ahead.

In Riemvasmaak to the north of the Augrabies Falls, however, feelings are mixed. The majority of the Augrabies project would be on Riemvasmaak land, and the community would hold shares in a trust.

Tourism information officer Clarissa Damara said the community welcomed the possibility of job creation as long as the environment was left undisturbed. Community leader Abraham Katimba said they had been left confused by developers.

Story written for amaBhungane and published in Mail & Guardian on 14 March 2014. 

Augrabies on hydropower hit list

Written by Gabi Falanga and Tileni Mongudhi

The four locations ear marked for hydroelectric power stations.
Graphic: Mail & Guardian's John McCann

Plans to build a series of hydroelectric plants along the Orange River – including one at the Augrabies Falls – have provoked a storm of protest among local communities and environmentalists.

South African National Parks (SANParks) has voiced its opposition to elements of the project, suggesting that the proposed R1-billion Augrabies scheme would disrupt the local ecology and have a detrimental impact on tourism.

The 60m falls, the world’s fifth highest, are among South Africa’s most spectacular natural features.

Also targeted for hydroelectric schemes are the Orange Falls (also known as the Ritchie Falls) near the towns of Pofadder and Onseepkans, as well as the Neusberg plant near Kakamas, which is already under construction, and the Boegoeberg Dam in Groblershoop.

Environmentalists have objected, claiming that the cumulative impact of the projects poses a threat to the Orange River and the 11% of the lower river environment that remains pristine.

Environmental impact assessments (EIAs) are yet to be done for the Augrabies and Orange Falls schemes.

Augrabies Falls.
Photo: Gabi Falanga

Resistance from locals

The planned plants, to be built by private South African company Hydro SA in partnership with state-owned Australian firm Hydro Tasmania, have hit resistance from local residents, some of whom depend on ecotourism for survival.

Various sources at Onseepkans told amaBhungane that angry residents and the mayor of Khai-Ma Local Municipality, Aurelia Josop, prevented consultancy Aurecon from finishing its presentation at a public participation meeting last month.

Khai-Ma’s communications officer, Alfriedo Green, confirmed that the municipality did not support the development. He cited the lack of benefits for Onseepkans residents, the damage that would be caused to an unspoiled environment and the municipality’s contested border between Namibia and South Africa as the main objections.

In Pofadder, residents allegedly told the presentation team “that they must go away. Nobody wants the falls damaged.”

Orange Falls Hydro Electric Power, Hydro SA’s specially created subsidiary for the Orange Falls project, plans to construct a run-of-river hydropower station with a capacity of 30 megawatts about 11km from Onseepkans.

It would use flow-focusing structures and two low weirs to direct water to the hydropower plant, diverting water away from the falls and releasing it in the lower southern channel of the Orange River, 250m downstream.

At Augrabies, subsidiary RVM1 Hydro Electric Power plans to construct a 40MW hydropower station north of the falls. Water would be extracted about 1.5km upstream and be returned to a branch of the river 7.5km downstream.

The powerhouse and tailrace would be located on land belonging to the Riemvasmaak Community Trust in the Augrabies Park, and a 2.5m-long weir across the Orange River and 4.6km-long underground culvert would be located on SANParks land.

Alfriedo Green.
Photo: Gabi Falanga

Organisations fighting the project

Among the organisations fighting the Orange Falls project is the African Paddling Association. Emphasising the falls’ unspoilt ecology, Marie-Louise Kellett, from the association’s environmental working group, said they are not accessible by road, only by foot or raft. Kellett also runs a rafting company, Gravity Adventures, on the river.

SANParks’s Gabrielle Venter particularly objects to the elements of the project in the Augrabies Park.

A SANParks report sent to Aurecon and the water affairs department points out that the planned culvert would pass through the area of the park “which provides the highest form of protection”.

“The zone also serves to protect sensitive environments from development impacts and tourism pressure. The conservation objective is to maintain the zone in as near to a natural state as possible with no impact on biodiversity patterns or processes,” the report says.

Venter also complained about the visual impact the hydroelectric scheme is likely to have, both on the park and in terms of the reduced water flow over the falls. She said that the diverted water would undermine the integrity of the ecosystem.

'Pristine wilderness ... will be irrevocably damaged'

Kellett expressed concern about the cumulative effect of the hydroelectric plants. “The whole river needs to be considered as a system,” she said. “This pristine wilderness and associated sense of place will be irrevocably damaged.”

She said a report of the Orange-Senqu River Commission, an international body representing the four countries of the Orange River Basin, pointed to the potential danger to threatened fish species in the lower river.

Kellett cited the management plan for the lower Orange River, commissioned by the water affairs department in 2008, which says that the Orange Falls and the Orange Gorge have been recommended for formal environmental protection.

Commenting on the potential knock-on effect on ecotourism –particularly rafting operations – in the area, Luise Niemoller Coertzen of Pofadder Tourism said: “Tourism development is the only hope for long-term job creation in our remote areas and will be seriously affected in a negative way.

“The fact that the falls can only be reached by hiking or canoeing makes it a very sought-after destination for local, international and celebrity visitors,” Coertzen said.

The Peace Parks Foundation, one of the registered interested parties, argued that the projects had potential implications in downstream areas such as at the Richtersveld Transfrontier Park.

Schemes to be 'consistent with environmental values'
In response, Hydro SA director Niel Theron said that all water used in the Orange Falls project would be returned to the Orange River and that at Augrabies “the amount of water [extracted] is very little in terms of the flow regime”.

Theron added that at Augrabies the powerhouse, piping and power lines would be underground and that the structure in the river would be barely visible.

“We have dedicated much effort to ensuring that … both proposed schemes are consistent with the environmental values of each site, including visual amenity and sense of place,” he said.

The EIAs will be “focused on identifying options for each scheme that are sympathetic to the environment and its surrounds and minimise the impact … on the environment.

“This is a sensitive project; we’re very aware of that. A lot of people misunderstand exactly what we do. These projects don’t exist elsewhere in South Africa,” Theron said.

“We have put a pause on the process so that we may engage more with the public to ensure that they get the message and understand it, and are then able to comment on an informed basis,” he added.

Luise Niemoller Coertzen.
Photo: Gabi Falanga

Mixed messages?

Asked about the potential benefits to local residents, Theron said: “The [Neusberg] project is currently in construction and is providing job opportunities for members of the surrounding communities.  We have arranged for the surrounding communities to take 15% ownership in the project through a community trust funded by the IDC [Industrial Development Corporation].  When the project … starts to yield income from the power it generates and sells to Eskom, the community trust will receive funds.”

Neusberg is the first run-of-river small hydro scheme to be delivered under South Africa’s renewable energy independent power producer procurement programme and will deliver 10MW of base-load power to the local energy market.

Hydro Tasmania spokesperson Samantha Meyer said that the EIAs “and any associated approvals for these projects will be conducted in accordance with the laws of South Africa and Namibia, as is appropriate for each project”.

Although parts of the Orange Falls project would be built on the South African side of the river, Hydro SA regards this as a Namibian project and hopes to sell power generated to that country’s power utility, Nampower.

Theron told amaBhungane that his company is “in ongoing talks” with Nampower. But Nampower’s chief executive, Paulinus Shilamba, said the utility has neither made a commitment to Hydro SA nor entered into negotiations with it.

Shilamba added that Hydro SA had approached Nampower a year ago, but the company could not provide the information required to start power purchasing negotiations.

He recalled that two follow-up meetings, at a technical level, had since taken place but that nothing had been decided.

The South African departments of water affairs and energy had not responded to amaBhungane’s questions at the time of going to print.

Story written for amaBhungane and published in the Mail & Guardian on 14 March 2014. 

Wrangling leaves miners in limbo

Written by Gabi Falanga, Tileni Mongudhi and Justice Kavahematui

George Baulos Masinga.
Photo: M&G photographer, Madelene Cronje

Flies buzz around the small room as a pot of offal boils on a small gas cooker on the floor. In the corner of the makeshift kitchen stands an engine in a black pool of oil. The two doorways leading off from the kitchen are closed with shower curtains, and a narrow bed with an indented mattress is just visible through the one.

This is the scene in one of the rooms at Hostel Three at Blyvooruitzicht. A mineworker, who asks not to be named and cannot speak English, lives here.

His son, who is visiting from Cape Town, explains his father’s situation: “Last week the other miners called my father and told him to come back [from the Transkei]. He came back, and there’s still no work.”

The miners, who have been without work since August last year, when the mine went into provisional liquidation, hoped that operations would start again this week.

“We’re in the dark; the only information we hear is from the [Carletonville] Herald or rumours,” said a former mine electrician.

The understanding among mine unions was that Goldrich Holdings would make a payment towards the purchase of the mine on January 13. This, it was hoped, would have meant renewed production.

Bickering

But Goldrich and the mine’s joint provisional liquidators were this week involved in a legal wrangle, with the liquidators claiming they had not been paid. Goldrich has refuted this and accused the ­liquidators and the mine of “unlawfully evicting” them. On Thursday Goldrich won an urgent application at the Johannesburg high court, allowing it back on to the mine.

“The mine closure is affecting more than 1 600 people,” said George Kgoroyaboco, branch secretary of the National Union of Mineworkers.

Another concern is the pending sale of the houses and infrastructure in the Blyvooruitzicht village to a private company, leading to workers being charged rent and utility fees while they have no income.

“This could result in them becoming destitute,” Kgoroyaboco said.

“Many will be without income from the UIF [the Unemployment Insurance Fund] by the end of April,” said the branch chairperson of the Association of Mineworkers and Construction Union, Solomon Makhunga.

A miner in her early 40s said she is her family’s only breadwinner. She receives R1 500 a month from the UIF, but is struggling to care for her wheelchair-bound husband and ­ailing mother.

Deeper in the village, Mozambican George Baulos Masinga sits on a dusty pavement sewing a pair of jeans with an old machine. He has become a tailor to make ends meet, but said he doesn’t make nearly as much as he did at the mine.

Kgoroyaboco said zama zamas (illegal miners) have been killed by mine security, and that there have been other deaths in turf wars between different zama zama factions “who kill one another when they meet on mine property”.

The police confirmed that illegal miners and mine security officials have been killed, but declined to give the number of deaths.

Written for amaBhungane and published in Mail&Guardian on 24 January 2014.

Aurora rerun at West Rand mine?

Written by Sally Evans and Gabi Falanga

Blyvoor Mine.
Photo: M&G photographer, Madelene Cronje

Members of the controversial Bhana family – of liquidated airline Velvet Sky and Aurora mining notoriety – appear to have seized yet another questionable financial opportunity, this time involving an insolvent gold mining company on the West Rand.

Once again, however, it seems that the father-and-son team of Solly and Fazel Bhana have tried to keep their involvement under wraps.

More than 1 600 miners have been hoping for the best since December last year, when the provisional liquidators of Blyvooruitzicht Gold Mine (Blyvoor) in Carletonville signed a sale agreement with a then unknown company, Goldrich Holdings (Goldrich), to buy the mine. The understanding was that Goldrich would kick-start the mine's operations this month.

The miners' fate, however, also rests with Thulani Ngubane, a director alongside Khulubuse Zuma and Zondwa Mandela of Aurora Empowerment Systems, which was liquidated in 2011 following its botched takeover of two Pamodzi Gold mines.

But, although Goldrich has paid about R5-million towards the sale, Blyvoor's joint provisional liquidators cancelled their contract with it earlier this month when the company allegedly failed to meet further payment obligations, an allegation Goldrich strenuously denies.

Goldrich was barred from Blyvoor's premises last Friday. The company subsequently brought an urgent court application against the provisional liquidators and the mine for ­"unlawfully evicting" them.

On Thursday, the South Gauteng High Court ruled in Goldrich's favour and the company is now allowed back on the mine, according to Goldrich's lawyer, David Swartz.

Denials

Swartz, of Phillip Silver and Associates – the same firm that represented the Bhanas in the Aurora matter – denied the liquidators's allegations that Goldrich had not made certain payments.

Swartz claimed that his client had already paid R4.8-million, the second of about 12 payments.

Bonginkosi Mthethwa, a KwaZulu-Natal businessperson, is currently the only person listed as a Goldrich director. The company was ­registered in February last year.

Yet Mthethwa is not acting alone in the deal. Aurora's Ngubane told amaBhungane that he was on Goldrich's board. It was in this capacity that he signed sale and interim agreements in December and January on behalf of Goldrich with the liquidators.

Ngubane also noted that Mthethwa was a "personal friend" and that his involvement with Goldrich went back 20 years. He said that he would become a director of the company "at a later stage".

Fazel Bhana, who with Solly was specifically named as a key driver in the collapse of the two Pamodzi gold mines under Aurora's management (see sidebar), appears to have also played a major role in negotiating Goldrich's deal with Blyvoor's provisional liquidators.

Main negotiators

An anonymous source, whose information was corroborated by amaBhungane, said that the "main negotiator in the transaction" was Fazel Bhana. The source also noted that both Fazel and Solly Bhana were "at the mine daily, flanked by Mr Thulani Ngubane".

Solly Bhana's involvement at Blyvoor could not be confirmed.

Fazel seems to have tried to keep a low profile during negotiations over Blyvoor.

In particular, he has spelt his name "Fazil" with an "i" and, according to one of the joint provisional liquidators, Bhana junior only ever used his first name during their interaction. The only time he mentioned his surname was when he was told to sign it on a registry at a meeting with the mineral resources department.

Ngubane, however, defended Fazel's role. He said that the company was using him because, as a "lawyer by profession … he has the right expertise" and that he was "indispensable and irreplaceable".

Liquidators were appointed to take over Blyvoor in August last year after a declining gold price and rising overheads forced it into provisional liquidation.

According to newspaper reports, two mining companies, DRDGold and Village Main Reef, both abdicated responsibility for the mine.

The workers were left jobless and the mine became a magnet for illegal miners or "zama zamas".

It appears that this is not the first time the Bhanas have been party to a possible deal to buy Blyvoor.

Deal cancelled

In 2009, a deal between DRDGold and Aurora – in which Aurora would pay R376-million for a 60% stake – was cancelled.

According to a 2010 MiningMx news report, DRDGold chief executive Niel Pretorius said the deal was thwarted as a result of suspicion about the role of Aurora's "advisers", although Pretorius did not specifically name the Bhanas.

Goldrich took occupation of Blyvoor on December 6, about 10 days after the company swooped in and mysteriously secured power to the mine's main asset, Shaft No 5, from Eskom, which was days away from shutting off the shaft's electricity supply. Blyvoor is about R90-million in arrears with Eskom.

According to joint provisional liquidator Leigh Roering, Goldrich "saved the day" when it managed to keep Eskom from turning off the power. Roering said the power utility had threatened liquidators with a November 29 deadline.

"We have no idea how it did it. The main thing is to save the Shaft No 5 for employment purposes. It managed to secure power to the shaft, and that is how it got involved," he said.

Joint provisional liquidators signed an interim and sale agreement with the company.

Ngubane denied that there was anything "sinister" about Eskom staying its hand.

Total cost

Roering noted that Goldrich referred to "foreign funds that were going to be brought in" to help to pay off the instalments agreed upon between the parties. The total cost for the mine would have been about R70-million.

Ngubane said that funding for Goldrich was "from a private family trust in Holland".

"Goldrich is not a listed company. I don't have to open up my chest. And the private equity firm from Holland will remain private as well," he said.

Referring to the insolvency of Blyvoor mine following ownership issues between DRDGold and Village Main Reef, Ngubane said: "At Goldrich, we have a heart. We want to save 450 jobs."

But it was the company's alleged inability to fulfil its financial obligations that led to its eviction from the premises.

In claims that are reminiscent of the Aurora debacle, Roering said: "There was always a reason for why they couldn't pay.

"They were waiting for funding, apparently from Dubai. But it never came."

Ngubane denied the nonpayment, allegations and blamed the liquidators, "who have revoked our agreement and that is why we are taking them to court".

Fazel Bhana and Swartz had not responded to questions by the time of going to print. ­
– Additional reporting by Tileni Mongudi and Justice Kavahematui.

Pamodzi mine controversy drags on

Pamodzi mine controversy drags on Aurora Empowerment Systems, whose board members included President Jacob Zuma's nephew Khulubuse Zuma, Nelson Mandela's grandson Zondwa Mandela and businessman Thulani Ngubane, was seen as the saviour of liquidated mining company Pamodzi Gold when it took over two of its mines in 2009.

Aurora was appointed as the preferred bidder by the joint provisional liquidators of Pamodzi, one of whom was controversial liquidator Enver Motala. Then a new company, packed with a "who's who" of political heavyweights allegedly presented a "beautiful" bid to the liquidators to buy Pamodzi's gold assets for close to R400-million.

But cracks soon began to show when it became clear that the father-and-son team of Solly and Fazel Bhana, who were brought on by Aurora's board as "consultants and advisers", were "calling the shots". During a 2012 inquiry into the collapse of Pamodzi Gold, questions were raised about allegations that tens of millions of rands made from gold sales were surreptitiously being diverted into private accounts, mostly belonging to members of the Bhana family, whereas thousands of mineworkers went unpaid.

At the time, Aurora's management denied that money was being used for non mining purposes or that it was involved in asset-stripping, but allegations persisted regarding shady deals at the mine. Some of the allegations related to "mystery" trucks that were said by sources to be removing equipment from the shafts.

Aurora removed as bidder

Following the removal of Aurora as the preferred bidder to run the two mines in late 2011, after which the company was itself put into liquidation, liquidators sought to have Fazel and Solly Bhana, along with Zuma, Mandela and Ngubane, held personally liable for the R2-billion debt owed to Pamodzi.

In a 2012 court application, one of Pamodzi's joint provisional liquidators, Johan Engelbrecht, claimed that the men had "managed the affairs of Aurora recklessly with the intent to defraud" Pamodzi's liquidators and creditors.

Engelbrecht also noted that Pamodzi had "proved claims in the insolvent estate of Aurora" to the value of R122-million in gold sales and R1.8-billion incurred through the destruction of the mines' assets.

The Bhanas tried to distance themselves from the management of Aurora during the Pamodzi inquiry.

But in his testimony, Zuma said that the controversial pair were involved in Aurora "prior to negotiations which ensued for the purchase of Pamodzi".

Engelbrecht noted in his court affidavit that Zuma "confirmed that, in his experience, the Bhanas were the main contributors to the decision-making of the running of the company".

The matter brought against the Bhanas and former Arurora directors by the Pamodzi liquidators has been set down for August this year.
– amaBhungane reporters

Written for amaBhungane and published in Mail & Guardian on 24 January 2014.