[Marxism] Elite with ANC links climb aboard gravy train

glparramatta glparramatta at greenleft.org.au
Sun Aug 19 18:17:22 MDT 2007


www.citypress.co.za

18/08/2007 19:37 - (SA)
Elite with ANC links climb aboard 2010 gravy train

Jackie Mapiloko,

SOUTH Africa’s black elite with close links to the ANC will benefit from 
the R10.5 billion government money that will be used for the 
construction of stadiums for 2010.

The individuals – most of whom are already multi-empowered – will 
benefit from infrastructure projects through their links with major 
construction companies which won bids to build and renovate the 10 
stadiums for the Soccer World Cup.

Government has made the funds available through the National Treasury 
and local councils to build five new stadiums and renovate ­another five.

ANC presidential contender Tokyo Sexwale, Deputy President Phumzile 
Mlambo-Ngcuka’s daughter Akhona Ngcuka, her father and the country’s 
former top prosecutor Bulelani Ngcuka, South African Airways boss Khaya 
Ngqula, chamber of mines chief Mzolisi Diliza, prominent Eastern Cape 
politician Mkhuseli Jack and former Eastern Cape politician Enoch 
Godongwana are among those standing to benefit from the massive 
projects. The Ngcukas are well represented with another, Phelelani 
Mthandeni Ngcuka, also in line to benefit as a director of one of the 
winning companies.

From the list, it is clear some of the winners are friends with, or 
business partners of, influential ANC leaders although they might not 
have partnered with them for these projects.

City Press found that some of the winners are linked to former Justice 
Minister Penuell Maduna and ANC Youth League leader Fikile Mbalula 
through directorships in different companies while others were 
­appointed by ministers to head some structures including sector BEE 
charters.

Multibillion-rand tenders were awarded to Grinaker/Interbeton, Group 5, 
Wilson Bayly Holmes-­Ovcon (WBHO), Murray and Roberts and Basil Read to 
construct five stadiums in Durban, Cape Town, Port Elizabeth, Nelspruit 
and Polokwane.

Sexwale will also score with the construction of the R1.83 billion King 
Senzangakhona Stadium in Durban.

eThekwini Municipality awarded the contract for the stadium to a 
consortium led by giants Group Five and WBHO-Pandev. Sexwale’s 
Mvelaphanda Group and iLima Group bought a 21.6% stake in Group Five two 
years ago. Akhona Ngcuka and Phelelani Ngcuka are listed as directors of 
iLima.

Bulelani Ngcuka started empowerment company Amabhubesi Investment which 
bought into listed construction company Basil Read.

Basil Read, in which Ngcuka is chairperson, won the bid to build the 46 
000-seater Mbombela Stadium in Nelspruit, Mpumalanga, for R920 million. 
Ngqula owns 5% of Basil Read.

Another beneficiary close to Mlambo-Ngcuka is Nonhlanhla Mjoli-Mncube, 
her economic adviser. She is part of Akani Investment Holdings, an 
empowerment partner of WBHO.

The WBHO-Paul joint venture won the bid to build the 45 000-seater Peter 
Mokaba stadium in Polokwane at a cost of R716 million.

Paul Mahlaka, an ANC benefactor in Limpopo, donated R200 000 to the ANC 
in the province in March. In Port Elizabeth, former Eastern Cape finance 
MEC Enoch Godongwana and prominent ANC activist Mkhuseli Jack and 
businessman Thembeleni Nodaba lead Ibhayi Construction, which owns a 
third of the Grinaker-LTA consortium. It is building the 50 000-seater 
Nelson Mandela Bay Stadium for R1.15 billion. Godongwana was fired as 
MEC in 2004 and Jack is Sexwale’s close ally. He received 367 718 of the 
Absa Batho Bonke shares from Sexwale.

Political analyst Aubrey Matshiqi says the re-empowerment of the same 
group is something to be expected from societies in transition.

He says big business in these societies enters into an accommodation 
with the new elite and offers them patronage in the hope that they will 
provide companies with insights ­into future economic opportunities by 
the new political leadership.

In Tshwane, several high-profile people including Diliza, Sexwale 
associate David Moshapalo, construction industry BEE charter chairperson 
Teddy Daka, former public works director-general Thami Sokutu, former 
Denel chief executive Victor Moche and Presidential Advisory Council 
member Yvonne Muthien were given a stake in international engineering 
company Africon in April. Africon is one of six consulting firms hired 
to upgrade Loftus Versfeld Stadium at a cost of R99-million. Diliza is 
also a beneficiary in the Gautrain project and received 35 000 shares 
from Sexwale.

Moshapalo, a business associate of Mbalula, is a non-executive member of 
Mvela Group. He also received 100 000 Batho Bonke shares.

While he was still a DG, Sokutu’s department awarded a R13.4 million 
repair and maintenance tender to Africon – which he later joined and 
through which he will benefit from the 2010 construction.









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