[Marxism] Elite with ANC links climb aboard gravy train
glparramatta at greenleft.org.au
Sun Aug 19 18:17:22 MDT 2007
18/08/2007 19:37 - (SA)
Elite with ANC links climb aboard 2010 gravy train
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
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
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
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
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
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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