Global South African News Wrap 21 December 2012

How Zuma persuaded ANC to drop the N word South Africa's Zuma pledges ANC renewal to dispel doubts Don't bet against Zuma: ABZ left out of the NEC One love: Zuma picks Motlanthe to lead ANC's political school Cope whizz kids boost ANC media Zuma savours victory, but still has mountain to climb Cyril Ramaphosa the key to urban voters It's not all doom and gloom The saviour returns Motlanthe to head political education Zuma calls for unity after leadership battle Anti-Zuma camp hit by purge Schizophrenia grips ANC at Mangaung conference ANC gets serious about curbing corrupt members Minerals: 'We want fair share' ANC executive now almost 100% Zuma Miners breathe sigh of relief with nationalisation debate off table Motlanthe to lead ANCs political school ANC Youth Leagues future in balance Dlamini-Zuma tops the list as ANC chooses national executive Zuma victory bad for Mugabe Ramaphosa's election may boost plan Zille scathing on Zuma's re-election Achmat to consult veterans league over ANC support ANC slaps down Vavi over election slates Ramaphosa move makes sense if he is delegated wide powers Man of action Ramaphosa good for Zuma ANC must cement unity with action Ramaphosas rise could bring conflicts of interest Boost for business in Ramaphosa comeback ANC members must learn economics Manuel JZ needs rivals close Motlanthe must retain his position: delegates Party's pinnacle of power Blueprints for 'death plot' Unionist-turned-tycoon is now SA's second most powerful man Out in the cold

21 December 2012 Business Day Page 1 Carol Paton and Mariam Isa How Zuma persuaded ANC to drop the N word THE African National Congress (ANC) has ditched the concept of "strategic nationalisation" in favour of "strategic state ownership" after an 11th-hour intervention by President Jacob Zuma. He told the drafters of the partys economic policy resolution at its conference in Mangaung to remove the word "nationalisation" a bold effort to restore policy certainty for investors and turn around South Africas flagging credit ratings. An attempt by the ANC Youth League to have the word reinstated when the resolution was presented to conference delegates on Thursday, failed. "The state will increase state ownership in strategic sectors where deemed appropriate, on the balance of evidence ," the resolution read. The state would further increase its participation in the mining sector through equity, using the state-owned mining company as its vehicle. The resolution implied that there will be higher taxes for the mining industry, but did not specify what form these might take. It said the state should "capture an equitable share of mineral resource rents and deploy them in the interests of long-term economic growth, development and transformation". Enoch Godongwana, chairman of the ANCs economic transformation committee, told a media briefing this could take the form a resource rent tax, a "windfall tax" on super profits or another, unspecified, measure. "There will be a tax, what form it will take has not been decided." The resolution further raised the prospect of export taxes on designated "strategic minerals" deemed important for industrialisation or as key inputs into downstream products. Among those in line for designation are iron ore, coal, base metals and gas. The party said it wanted to assure investors that "nationalisation was off the table". "The national conference has refused to be drawn into the (use of) the word nationalisation," said Public Enterprises Minister Malusi Gigaba. "This means that the issue of nationalisation, that we have discussed over the past few months, is off the table. "We are providing final clarity. There shouldnt be any expectation from here that we will come out and say we are going to nationalise."

Mr Zuma called the drafters of the resolution who included Thaba Mufamadi, chairman of Parliaments standing committee on finance, Mr Godongwana and Mr Gigaba to an early morning meeting on Thursday. Participants close to the process said the president told them they should take out "that word". Provincial chairpersons and secretaries were hurriedly briefed before the presentation to the plenary on Thursday and asked to support the resolution. But global rating agencies are likely to continue sitting on the fence for a while in terms of their assessment of South Africa. Standard & Poors (S&P) MD for Southern Africa Konrad Reuss said on Thursday the agency would wait to see what follow-through action the government took before revisiting its sovereign rating of South Africa, which it downgraded in October. "From our perspective the jury is out we have to see what it is that is going to be implemented as far as policy action is concerned ." Anything that would support growth in the economy, deal with social and labour market issues, and support fiscal consolidation, would be constructive for South Africas rating, Mr Reuss said. S&P has put a negative outlook on its BBB credit rating for South Africa, citing the recent wave of strikes, which it said might increase "uncertainties" related to the countrys economic policy framework. The Black Business Council (BBC) said it was "relieved" that the ANC had "once and for all buried the threat" of the wholesale nationalisation of mines and banks. "The BBC believes the ANC should better manage the perceptions around its economic policy choices and reaffirm the private sector as the appropriate agent for accelerated economic growth and employment creation." The council believed the role of the state should be to create conducive conditions for good and socially responsible business. MD of Pan African Investment and Research Iraj Abedian, said the ANCs economic policy resolution was " more of the same". "The ANC has always engaged in rigorous, left-sounding debate, or more recently, populist oriented, but when all is said and done there are fairly pragmatic and realistic policy choices ." The ANC further resolved that there would be no ban on labour brokers. The South African Chamber of Commerce and Industry welcomed the resolution. " One must take it as an appreciation by the ANC that labour broking has a role to play in job creation," CE Neren Rau said. "On the issue of nationalisation, its good that this has been clarified. It will be positively received by the international community."

20 December 2012

Reuters South Africa's Zuma pledges ANC renewal to dispel doubts (Reuters) - South African President Jacob Zuma, fresh from a landslide re-election as head of the ruling ANC, on Thursday promised to crack down on corruption and feuding that has shaken confidence in the party's leadership of Africa's top economy. In a speech to close a week-long ANC elective conference, Zuma called on the 100year-old African National Congress to "root out" faction-fighting and the use of money to buy members or influence within the party. "The primary task of the ANC going forward is to work for unity," said Zuma, whose re-election this week ended months of feverish speculation over a challenge from Deputy President Kgalema Motlanthe. "It is clear that the ANC is renewing itself already," a smiling Zuma told the packed audience. By winning a fresh term to lead the ANC at the conference in the central city of Bloemfontein, Zuma has virtually guaranteed himself another term as president of South Africa through 2019, given the party's dominance of domestic politics. Yet there are fears - both inside and outside the party - that Zuma has steered Nelson Mandela's former liberation movement away from its idealistic beginnings and into a morass of graft, cronyism and a corrosive culture of self-enrichment. The party that took power at the end of apartheid in 1994 is seeing some decline its once-unassailable popularity, hit by charges that corruption has siphoned off billions of dollars meant to improve the lives of the country's poor black majority. The ANC has admitted that members running local governments are often not up to the task, and pledged to set up an integrity committee to hold them accountable. "This will be our primary weapon in our fight against corruption," said ANC official David Makhura, who sits on the party's organisational renewal committee. Some ANC insiders say Zuma - who has faced corruption charges but has never been convicted - is the wrong person to lead the renewal drive. "Zuma is more a part of the problem then the solution. If we don't change leaders, the ANC will be heading for deep troubles," said a senior party member from Gauteng province, who asked not to be named. The ANC dominates local politics due to its still-admired role in bringing down apartheid while the main opposition Democratic Alliance is seen as the party of the white minority. SHORING UP IMAGE To restore the party and government's battered image, the conference chose 60year-old anti-apartheid hero and millionaire businessman Cyril Ramaphosa as

Zuma's deputy in the ANC, hoping for a boost from his political credentials and reputation for integrity. But there are questions whether Ramaphosa - now South Africa's second-richest black executive - can strike a chord with the poor and unemployed masses as he did when he led striking mineworkers against their white bosses in the 1980s. Ramaphosa will replace Motlanthe, whose challenge to Zuma for the ANC top job was crushed at the conference. Zuma named Motlanthe to head up a political education programme for ANC members, in what could be seen as a political banishment. The president appeared to settle another old score when he said the ANC would not tolerate indiscipline, a clear reference to former party Youth League leader Julius Malema, who became Zuma's nosiest critic after expulsion from the ANC this year. "We will be able to deal with the comrades who disrupt ANC meetings," Zuma said to cheers and applause from the floor. "There must be consequences for such ANC members," he said. Zuma said the ruling party would tackle the poverty, inequality and unemployment that still afflict South Africa with decisive policies focusing on industrialisation and Black Economic Empowerment, which seeks to put more of the economy in the hands of the black majority. Nearly two decades after Mandela led the ANC to bring down apartheid, critics say the party has not done enough to fix worsening inequality and an unemployment rate stuck at around 25 percent. Zuma said the health of 94-year-old Mandela, who has spent nearly two weeks in hospital, had improved. In a sign of the social and labour challenges facing the ANC, police fired rubber bullets on Thursday to disperse protesting gold workers, the latest flare-up of violent labour unrest that has shaken South Africa this year. And as the ANC conference members streamed home, there were those around the country hoping that the pledges for renewal and action would lead to concrete change. Sabelo Baza, 25, who lives in the township of Botshabelo, down the highway from the venue of ANC meeting, has given up on the party he once supported. "I have heard promises and promises about jobs. I am unemployed and I don't trust the ANC anymore," he said.

20 December 2012 Mail and Guardian Verashni Pillay

ANC Youth League's fate up in the air The future of the youth league hangs in the balance, with Zuma announcing in his closing speech at the party's elective conference in Mangaung on Thursday that "the matter of the league" would be discussed by the incoming NEC in the new year. The ANC president also lashed out at his detractors aligned to Malema, as well as those who supported him within the party. This follows reports that there were calls by some provinces to dissolve the league following the defiance it showed to Zuma in the run-up to the conference and its attempt to have him unseated. Zuma, who pulled off a convincing victory over the pro-change lobby that tried to replace him with his then deputy, Kgalema Motlanthe, never mentioned Malema by name but referenced the firebrand's actions at several moments. The amount of time devoted to the issue during his closing address was indicative of the level of concern about the violent rhetoric that had come out of the party in recent years thanks to Malema and his ousted spokesperson Floyd Shivambu. There was a common call to restore discipline and unity among most of the delegates the Mail & Guardian spoke to. And Zuma responded to the call decisively in his speech. "Through cadre development and decisive action against indiscipline we will be able to root out all the tendencies that we have identified over the years," he said. "These include factionalism, sowing of disunity and confusion in the movement, the use of money to buy members and to buy positions or influence in the organisation, the hurling of insults or, even worse, the attacks of members on the ANC." "We will be able to deal with the comrades who disrupt ANC meetings. And those who want the ANC to now be run on technicalities and through the court." After months, and even years, of retiscence, Zuma has finally reacted to Malema's repeated provocations. Known for his strategic dealings with his opponents, he chose his moment well, using the party's biggest platform to make his point. His remarks also referenced a faction in the Free State who had taken the party to court and was attempting to get the outcomes of the conference declared invalid. In a stern warning to his now neutered enemies, Zuma warned against "working with those who have been expelled from the organisation" and "assisting them to undermine the organisation", saying they should know the implications. And with the opponents he was referencing effectively out in the cold, the implications were very clear.

20 December 2012 Mail and Guardian Charles Molele, Matuma Letsoalo, Mmanaledi Mataboge Don't bet against Zuma: ABZ left out of the NEC

ANC president Jacob Zuma's allies dominated the party's newly elected national executive committee (NEC) on Thursday. All former NEC members who campaigned and supported the project to replace him with his former deputy Kgalema Motlanthe have been dumped. Winnie Madikizela-Mandela was re-elected from the prominent 2007 NEC that publicly criticised Zuma and supported the call for leadership change. She received the majority of the Polokwane conference votes, but was this year the second last successful NEC member. Thenjiwe Mtintso, a South African Ambassador to Italy who once served the ANC as deputy secretary general was also re-elected, despite being nominated by Motlanthe's supporters. Former treasurer general Mathews Phosa, Human Settlements Minister Tokyo Sexwale, Sport Minister Fikile Mbalula, ANC Youth League NEC member Andile Lungisa and former youth league leader Saki Mofokeng were the biggest losers after pushing to the end to lead the ANC. Former ANC Youth League president and Minister of Public Enterprises Malusi Gigaba's political star keeps rising. He was the second-most favourite member of the new NEC. Congress of South African Trade Unions president Sdumo Dlamini becomes the first trade union movement leader to sit on the ANC NEC since 1994. While some in Cosatu believe it's a necessary step towards the federation's mission to populate the ANC's ranks, Dlamini's election into the top ANC structure will be contentious because of the possibility of compromising the federation's independence. Other key union leaders who made it to the NEC are National Union of Mineworkers president Senzeni Zokwana and health union Nehawu general secretary Fikile Majola. Thulas Nxesi, a former general secretary of teacher union Sadtu, was also elected. The new brooms in the NEC include former presidential spokesperson Zizi Kodwa, the ANC Youth League's suspended treasurer general Pule Mabe, North West ANC treasurer Philly Mapulane, chairperson of the Umkhonto we Sizwe Military Veterans Association Kebby Maphatsoe, former Western Cape provincial chairperson Mcebisi Skwatsha, Intelligence Minister Siyabonga Cwele, Cosatu president Sdumo Dlamini, Labour Minister Mildred Oliphant and Rosemary Zoleka. Despite allegations of corruption and a guilty verdict by the Gauteng ANC, Humphrey Mmemezi made it to the new NEC. Former police commissioner Bheki Cele, who was fired for his role in the multimillion-rand police offices lease debacle, was also elected. Surprise losers included Young Communist League general secretary Buti Manamela and former ANC Youth League secretary general Vuyiswa Tulelo. Former president Thabo Mbeki's allies making a comeback to the ANC's highest decision-making body are former Reserve Bank Governor Tito Mboweni and former minister of agriculture Thoko Didiza.

20 December 2012 Mail and Guardian Verashni Pillay

One love: Zuma picks Motlanthe to lead ANC's political school Former ANC deputy president Kgalema Motlanthe, whom businessman Cyril Ramaphosa replaced as deputy president during the party's electoral conference in Mangaung, has been appointed to head the party's mooted school of political education. "Leading the ANC political education needs to be a senior member of the ANC who is schooled in the traditions of the movement," newly re-elected ANC president Jacob Zuma announced in his closing address on Thursday, before the eruption of prolonged and enthusiastic cheers from the audience. Motlanthe opted to run against Zuma for the position of president after a battle by his supporters within the party to get him elected, which was damaging to his chances of remaining in the ANC's top six leadership. His acceptance of the nomination at the last minute, while withdrawing from running for his then incumbent position as deputy president, set him up to be ousted from the position. He then declined nomination to the party's national executive committee (NEC) its top decision-making body. The lack of unity in the party emerged from the conference as a key concern for the ANC's leaders after the bruising leadership battle, and Motlanthe's move made delegates nervous about losing a strong leader and causing further disunity. Zuma's move to appoint Motlanthe, which he said he did in consultation with Motlanthe and Ramaphosa, sent out a strong message of unity, despite the fact that pro-change leaders have been thoroughly removed from top leadership structures in the party. Tokyo Sexwale, Mathews Phosa, Fikile Mbalula, Paul Mashatile and Thandi Modise, who all openly opposed Zuma for a second term, were not successful in their nominations for any of the top six positions and were all excluded from the new NEC list voted for by delegates. Zuma's inclusion of Motlanthe in this token role potentially protects him from the accusation of a purge. The ANC has discussed the need for improved political education for some time, partly as a solution to damaging public statements by some in the party. Zuma noted that the time for talking about the school was over and it was time to implement the idea.

21 December 2012 Mail and Guardian Verashni Pillay, Mmanaledi Mataboge Cope whizz kids boost ANC media The ANC drew on the expertise of former Congress of the People (Cope) communications strategists to give the party a fresher face for the Mangaung conference.

The Mail & Guardian identified at least five former Cope communication officers in the party's renewed and social media-savvy communication team for the ANC's 53rd national conference. But Senzi Ngubane, the ANC's online development officer, who co-ordinates the 13member social media team, said she didn't know anything about them. Social media darling Shaka Sisulu, one of the leaders of the team, attributed the remarkable turnaround in the party's communications to a grassroots movement. He said the people in question had left the ANC and returned as part of a normal process. "It's an organisation that reconciles even with its oppressors. So when people left and then came back to the ANC, they would most likely have more to prove. They were not given preference over anyone in any way and don't have any leadership positions." But sources said Cope's former communication officer, Lunga Kepe, led the production of video content and a former Cope member, Onkgopotse JJ Tabane, had been instrumental in strengthening the ANC's commentary published in various media before the conference. A senior former Cope member was asked to bring in "people he knows can do the job and people he trusts". Three sources said that it was the beginning of the renewal of the ANC's publicity and media strategy. They said the ruling party approached former Cope communicators because it wanted the sort of product the breakaway party initially used to make a name for itself. "The ANC request was more to say we are helpless," said an insider. Just a year ago, the ANC's social media strategy was almost nonexistent. The party had a gratuitous social media presence in the 2009 elections with blogs that were never updated. In the 2011 municipal elections, the party made token nods to the social media, albeit laughably late. President Jacob Zuma launched his official Twitter profile slightly more than a month before the elections. On the same day, at the behest of the social media-savvy Sisulu, several ANC leaders in Gauteng got together to talk social media. But it was too little too late. Virtual beating Meanwhile, they took a virtual beating from the opposition: Cope was impressive with its use of various platforms when the party was still the flavour of the year, using Twitter and Facebook to form its network while its branches were still being built up. The Democratic Alliance has had a remarkably good social media strategy since 2009, inspired in no small part by the viral wave that carried Barack Obama to the presidency in the United States. In the hype that followed Cope's split from the ANC in late 2008, the nascent party, with little structure or organisation, relied heavily on social media to get its message across. The party would later be torn apart by internal disputes, but the campaigning on Facebook in particular attracted much attention. Fast-forward to Mangaung 2012 and the ANC now has a robust social media presence that has come from seemingly nowhere. The social media team were particularly impressive: young men and women, stylishly dressed and wandering around the media centre with cellphones in hand.

"It's a temporary team for the conference, but we're planning on growing it after this," said Ngubane. "Most of them are volunteers, while some of them have been drawn from provincial offices." The once neglected @MyANC_ Twitter account swelled to 34 000 followers after there was a sharp uptake from the start of the conference on Sunday. A YouTube account created for the 2009 elections was dusted off and video uploads started happening in earnest, featuring interviews with the president and updates from the conference. And the party's Facebook page, which has 14470 fans, finally received regular updates. But a former Cope communicator said the ruling party was "too distant to be able to achieve" a fully modern communications plan. "They're now able to do this because it's an event. With Cope, it was an everyday thing."

21 December 2012 Mail and Guardian Rapule Tabane

Zuma savours victory, but still has mountain to climb ANC president Jacob Zuma goes home to Nkandla for Christmas buoyed on a wave of success, but also with the knowledge that those who voted for him in huge numbers at Mangaung this week expect him to deliver in his second term. Although he has increased ANC membership, boosted access to HIV/Aids treatment and taken a tougher stance on Zimbabwean President Robert Mugabe in his first term, the core problems of poverty, unemployment and inequality have deepened. Trade union federation Cosatu first came up with a Brazilian-style Lula moment slogan to motivate Zumas election for a second term and to give him the opportunity to exercise his authority to decrease poverty and create jobs and a functional social welfare system that looks after the needs of the poor. Zuma has demonstrated an incredible skill at defeating his opponents: five years ago in Polokwane it was Thabo Mbeki and now, at Mangaung, it was Kgalema Motlanthe both of whom were regarded as better than him. Although surveys show that he is less popular with broader South African society, that is clearly not what most ANC members think. South Africans will have to live with him as president of the country for another five years. Speculation continues that the ANC will suffer at the polls in 2014 if he is still in office, but the party is convinced that members including dejected Motlanthe supporters will rally around him.

Creating a legacy Zuma will once again have to defy the doomsayers who predict that the party could experience its worst ever showing at the polls in 2014. Unencumbered now by being made to pay for any bold or controversial decisions, Zumas worry is about creating a legacy something he did not achieve in his first term. He has been mired in controversy over the R240-million splurge on his home in Nkandla in KwaZulu-Natal. The Mangaung conference reinforced the need for stricter conduct from party members as it grapples with internal anarchy and corruption. The ANC now has an integrity committee, but we will have to wait to see whether it has the courage to probe Zuma over allegations of financial impropriety and corruption. The presidents legacy will depend on the tasks the ANC sets itself for the next few years. Zumas acceptance will be enhanced by the elevation of Cyril Ramaphosa as his deputy but it will be the latter who will have to sell the government to local and international business. ANC secretary general Gwede Mantashe has already said that Ramaphosa will be a de facto prime minister. Zuma will still be in charge of the big picture, but Ramaphosa will be expected to act in much the same way as Mbeki did when he was deputy to former president Nelson Mandela after 1994. But for now Zuma savours his victory, showing like a cat that with his mshini wam [machine gun], he always manages to land on his feet.

21 December 2012 Mail and Guardian Nic Dawes Cyril Ramaphosa the key to urban voters When Kgalema Motlanthe decided not to run for deputy president and instead to contend only for the top job, he knew that he would lose and lose badly. One of his objectives here, according to people who lobbied to support him, was to confront the ANC with the enormity of its Jacob Zuma problem. When campaigners for change speak of "a principled stance", this is what they mean. Angry and frustrated at all the scandal surrounding the president and worried about its effect on the party but unable to say so himself, Motlanthe found another way to deliver the message. Without him in place there can be no pretence that the party is unified around its president. Yes, the Zuma slate won a 75% majority, but it left outside the big, hot Mangaung tent much of Gauteng, where so much leadership capital and actual capital is concentrated, as well as important parts of the Western Cape, Northern Cape, Eastern Cape and Limpopo. A TNS poll ahead of Mangaung confirmed what some in the ANC were saying. Zuma's approval rating in urban areas declined from 55% to 49% in the year of

Nkandla, the "spy tapes" and the textbook debacle. Motlanthe's shot up from 49% to 67%, although he did very little but allow supporters to declare him an alternative. Luthuli House's own research, say three senior officials briefed on it, suggests that an ANC going into the 2014 national elections with Zuma as its main face will see a significant ebbing of support, some of it to a growing stay-at-home fraction of the electorate and some to an energised opposition, particularly in Gauteng and the Eastern and Northern Cape. The warnings in the poll data are backed by other evidence that Zuma, in rescuing KwaZulu-Natal for the ANC, has moved dangerously far away from urban and middle class voters and other parts of South Africa. He told traditional leaders that "clever blacks" were losing touch with their roots, appearing to confirm suspicions that he is willing to move a party founded by an educated, anti-tribalist African elite towards ethnic, regional and traditionalist politics. Even some of his most important lieutenants seem to see the problem and to identify Ramaphosa as the solution. During the past weekend's intense lobbying, KwaZulu-Natal provincial secretary Sihle Zikalala told Business Day that Ramaphosa "will help the ANC connect and relate better with the business sector, intellectuals and younger voters, especially those born after ... 1990". You couldn't ask for a clearer statement of the thinking behind the Zuma slate: the president for the countryside, his deputy for everyone else. Frontally attacked For his part, Ramaphosa did an even more convincing impression of a man who doesn't want the job than Motlanthe did. He made no public case for himself and, even when frontally attacked over his efforts to secure police intervention at Marikana, barely defended himself. According to people who worked on a deal between the two, Ramaphosa said he didn't want to go head to head with his National Union of Mineworkers successor. He refused to confirm his candidacy until late on Sunday afternoon, when it was clear that Motlanthe would go for broke. By mid-week, talk of their mutual respect had some anti-Zuma delegates muttering about a secret deal to secure Motlanthe's return. More sober talk among senior figures was about maximising any Ramaphosa dividend; there is real uncertainty about the 18 months leading up to the national elections. The process is fraught with risk for Ramaphosa. First, there is the question of his business interests: Shanduka has been in expansion mode and is exposed to considerable debt. "Some felt he was reluctant because he wanted to consolidate his empire before handing its management to a blind trust. Second, there is what one party elder described as "the difference between what Cyril stands for and what Zuma stands for". In other words, can two men who are complementary in that they attract different voters actually live with each other in government and Luthuli House? Can the constitutionalist businessperson avoid contamination by association with a scandal-prone, authoritarian traditionalist? Gwede Mantashe has made public what lobbyists were saying privately in the run-up to the vote: Ramaphosa in government would function much as Thabo Mbeki did under Nelson Mandela, as a "de facto prime minister" driving the primary executive functions of the government and using the national development plan (with which

Ramaphosa was intimately involved) as the primary policy framework. It might suit Ramaphosa better to do so only after 2014. But that choice could be very tricky. If Motlanthe steps down, as those around him feel he will, Ramaphosa will have to step up or take the risk of allowing someone else, possibly the ambitious Baleka Mbete, to hold his place for him. Meanwhile, Zuma will continue being Zuma as the other elections, the ones we all get to vote in, bear down. The ANC has never before had to consider seriously the electoral effect of its internal party choices. Winkling Ramaphosa out of the boardroom was smart, but the game has only just begun.

20 December 2012 Financial Mail Page 9 Editorial It's not all doom and gloom After the violent strikes of recent months, wilting business confidence and the rising criticism about SAs political leadership, it is easy to forget the good news about this year. The third quarter of last year was a period of heightened volatility and fear in financial markets. US sovereign debt was downgraded by ratings agency Standard & Poor's. Politicians in the US were unable to agree on policy. There were fears that the world's largest economy would slip into another downturn. Many commentators said the euro region was heading towards a breakup. The idea of a sudden and risky exit by Greece became almost commonplace. None of the worst-case scenarios has happened. Those dogs did not bark. The US has maintained steady growth. Much of the EU is in or near recession, but there have been no new shocks. The EU and the IMF recently struck another agreement on Greece's debt. Assurances and actions by European Central Bank president Mario Draghi helped stabilise Europe's markets, and bond yields in the more stressed economies have fallen. Markets performed much better this year than in 2011. Equities have risen in both developed and emerging markets. In 2011 the JSE all share index ended slightly lower. By mid-December 2012 it had risen by more than 20% in rand and by 11% in US dollars. The rand has weakened and looks vulnerable but it hasn't collapsed. Net foreign purchases of SA bonds have remained positive and are up on last year. The country's growth rate has faltered but is still well into positive territory. In SA, there are opportunities for new beginnings and favourable shifts in the political and economic landscape next year, though that does require some optimism. President Jacob Zuma's re-election as ANC president at Mangaung this week has confirmed his abilities as a canny political player, though his skills have not necessarily benefited the country so far. The quick and perhaps logical response to Zuma's victory is that we can expect more of the same. That implies continuing weak growth, high unemployment, slow implementation of investment programmes and rising social tensions. Optimists can hope that Zuma, like US president Barack

Obama, will feel sufficiently strengthened to move on from political infighting and entrenchment of his position, to making the country and the economy work. In his report to the Mangaung conference, Zuma continued to place the economy and social transformation near the centre of this agenda. He emphasised the National Development Plan (NDP), and said the critical task for the conference was to take the plan forward by creating a stronger sense of unity and purpose around the direction of economic change. "We will work with business, labour, the community and other sectors to make these plans succeed," he said. Zuma also referred to the NDP in the context of a developmental state. As national planning commission chairman Trevor Manuel has argued, SA needs a "capable state". Achieving that through a large and expanding developmental state will be difficult. But Manuel remains in government, near the centre. Another NDP champion, the commission's deputy president, Cyril Ramaphosa, has been elected ANC deputy president. The NDP is a long-term programme. Its chances of implementation appear to have improved. As this year showed, the worst-case scenarios, whether in the form of dramatic change or incremental slippage, don't always happen and should not be assumed for next year. Continued gradual improvement in the world economy and in SA's main export markets, particularly Europe and China, should help. Government can become more unified and purposeful. The darkening domestic mood could brighten next year, as happened after the huge capital outflows of the late 1980s and the emerging markets crisis of 1997-1998. Business leaders are right to be cautious, but they must play their part in uplifting the economy - and confidence.

20 December 2012 Financial Mail Page 6 Barney Mthombothi The saviour returns The saviour has returned. Two decades after stepping in to help the ANC out of a little difficulty, Cyril Ramaphosa is back, older and wiser, much more likely than before to claim the prize that was rudely denied him last time around. The party needs him more than he needs them. By agreeing to understudy a flawed incumbent, Ramaphosa hopes that, instead of soiling his own reputation, he could take a big step toward the prize he came within a whisker of claiming two decades ago. To this day it's a source of fascination for political connoisseurs as to what could have been had Ramaphosa, and not Thabo Mbeki, succeeded Nelson Mandela as president. FW de Klerk's 1990 decision to unban the ANC caught the organisation totally unprepared. Its officials arrived home in dribs and drabs. As Tom Sebina told me at an eerily deserted ANC HQ in Lusaka: "Some of our chaps left as if they were going

to the toilet. They went to check out the scene and never came back." The ANC had little understanding of the political dynamics on the ground. Its president, Oliver Tambo, was ailing, later to die. Alfred Nzo, its lethargic secretary- general, was effectively in charge. De Klerk's reforms had earned him huge international affection. That put the ANC under some pressure to reciprocate by urging the lifting of sanctions against SA and abandoning the armed struggle. De Klerk was winning the propaganda war. The ANC needed a shot in the arm. Enter Ramaphosa. He had built the National Union of Mineworkers from scratch into the biggest and most influential union in the country. He replaced Nzo at the ANC's Durban conference in 1991, the first in the country since the unbanning of the organisation. As jubilant supporters carried Ramaphosa shoulder-high around the hall, Mbeki tentatively put out his hand to congratulate him. Ramaphosa ignored it. He later claimed not to have seen it. But that was to set the tone for their frosty relationship. Mbeki probably saw Ramaphosa as a Johnny-come-lately about to usurp his crown after he, Mbeki, had spent years in the trenches of exile. Ramaphosa organised the party, became its linchpin in Codesa talks and capped it all by chairing the task team that crafted the constitution. He thought he had done well enough to deserve a promotion. So did Mandela, who wanted him to be his deputy. But they were both outfoxed by Mbeki. His political ambitions frustrated, Ramaphosa took a detour into business where he consoled himself by making a fistful of cash. Now Ramaphosa is in a stronger position than any deputy before him. Jacob Zuma needs him more than he needs Zuma. In his second rescue mission for the party, he will make Zuma more palatable. Three different scenarios could unfold. Zuma could finish his second term with Ramaphosa as an able, loyal deputy. Or Zuma, like Mbeki before him, could be recalled, with Ramaphosa taking over prematurely. Or, as is being mooted in certain circles, Ramaphosa could be put forward as the presidential candidate, with Zuma remaining party leader. Whichever scenario pans out, Ramaphosa wins. He's in pole position to claim the presidency. He's no longer the firebrand unionist of yore, but a wealthy businessman. Along the way he's picked up what leftists in the party will regard as unwanted baggage or bad habits. That will play itself out in the perennial fights over economic policy. But his return should settle nerves within the business community. For Ramaphosa, it's a case of better late than never. This is the last issue of 2012. We shall be back on January 11 2013. Wishing you all a peaceful festive season. Enjoy the break.

21 December 2012 Cape Times/ The Star Page 4 Sapa

Motlanthe to head political education ANC president Jacob Zuma vowed yesterday to root out factionalism and to deal with dissidents and members challenging the ruling party in court. Through political education and cadre development as well as decisive action against ill-discipline, we will be able to root out all the tendencies that we have identified over the years, he said in his closing address to the ANCs 53rd national elective conference in Mangaung in the Free State. These include factionalism, the sowing of disunity and confusion within the movement, the use of money to buy members, positions or influence in the organisation, the hurling of insults or even worse, the attacks on members of the ANC. Zuma announced that Deputy President Kgalema Motlanthe would head up a political education programme for the party. We must move away from saying how important political education is, to actually implementing the decisions... We will be able to deal with the comrades who disrupt ANC meetings and those who want the ANC to be now run on technicalities and through the courts. He said he discussed the political education programme with the newly elected deputy president, Cyril Ramaphosa, and Motlanthe, the former deputy president of the party. He said the ANC would be building cadres who respect actions taken by the movement to enforce discipline against others, who know the implications of working with members who have been expelled from the organisation, assisting them to undermine the organisation. There must be consequences for such ANC members, said Zuma. He said the process of collectively understanding the democratic principles and internal democracy that prevailed within the movement was not monitored. Zuma said unity within the ANC would not happen automatically and its members would have to work hard for it. Turning to the leagues of the ANC, Zuma said they should implement the work and resolutions of the Mangaung conference, the final version of which was yet to be released. He congratulated the newly elected leadership and thanked the outgoing leaders. He also wished Nelson Mandela well, saying he was in good care as he spent a 13th day in hospital. Zuma broke into song as he ended his closing address.

It's a long walk, Mandela said to his followers. We will meet on freedom day, he sang.

20 December 2012 Cape Times/ The Star Page 1 Mogomotsi Magome Zuma calls for unity after leadership battle While ANC president Jacob Zuma yesterday called for unity following the leadership battle which caused deep divisions within the ANC, some in the party called on him to use his second term to accelerate service delivery and fix the ANC. Addressing delegates shortly after his second term as party president was confirmed, Zuma said it was important for delegates to move beyond the election and unite the party. He said it would not be good for the party if members who had backed deputy president Kgalema Motlanthe were sidelined owing to their preference ahead of the Mangaung conference. His sentiments were received with wild cheers from the delegates and reiterated by most leaders. According to Zuma, contests for leadership positions in the ANC were part of the democratic processes of the party. You have to be careful about how you treat one another. You cant find a situation where, after the elections of officials and the additional members, members who were exercising their democratic right must feel that they are outside the organisation. No one must feel so. We begin here to address the fundamental principles of the ANC, the unity of the African National Congress. Im saying this because from now we must realise that the national conference has spoken and all of us are part of that decision, said Zuma. He said the new leadership of the ANC must preside over a united ANC. National Union of Metalworkers of SA general secretary Irvin Jim said Zuma must ensure that the ANC implemented radical economic policies to transform the countrys economy and improve the lives of the majority. Zuma has taken full responsibility to forge unity in the party, and that is great, because things change in an organisation. But as we go into commissions, we must make sure that as workers we influence the policy direction of the ANC.

President Zuma must ensure that in his second term at the helm of the party we must pursue economic policies that will change the lives of the majority and benefit them economically. It cannot be right that the country has so many minerals yet people are still poor and our minerals are being taken abroad without any benefit for the majority. Peace Ntuli, a Zuma backer from the Northern Cape, said Zumas victory meant he needed to vigorously implement ANC policies, improve service delivery, and fire underperforming ministers and civil servants. The issue of talking and talking must come to an end. There must be a very clear message to anybody who does not perform, including those ministers. They must be fired. We should also look at section 139, whereby national government cant intervene in a province. You know, a minister cant tell an MEC what to do. If you look at the issue of Limpopo textbooks, the minister couldnt do anything because she does not have powers. We need to change that so that we can hold the minister accountable, said Ntuli.

21 December 2012 Cape Times Page 1 Staff reporters and Sapa Anti-Zuma camp hit by purge

Bloemfontein - The so-called Forces of Change which had resisted ANC president Jacob Zumas re-election were voted out of the partys national executive committee on Thursday. None of those who contested the top six leadership posts without success earlier this week made it on to the ANCs 80-member NEC. Human Settlements Minister Tokyo Sexwale, who lost his bid for deputy president of the party, was number 10 on the NEC list at the last ANC elective conference in Polokwane in 2007. This time, he did not make it. Neither did former treasurer-general Mathews Phosa, who also contested the deputy presidency, nor former deputy secretary-general Thandi Modise. Gauteng chairman Paul Mashatile and Sport Minister Fikile Mbalula, who was number 15 on the NEC in 2007, were also excluded. The five had automatically been put on the nomination list after they lost in the top six officials election at the Mangaung conference.

Deputy President Kgalema Motlanthe, who failed in his challenge for the party presidency, did not make himself available for election on the NEC. ANC chief whip Mathole Motshekga failed to make it, but his wife Angie was elected. History seemed to be repeating itself. In 2007, when former president Thabo Mbeki lost the party presidency to Zuma, many of his allies did not make it on to the NEC list either.

The most popular NEC member of 2002s Stellenbosch elective conference, Trevor Manuel, did not make himself available for election this year. Nelson Mandelas ex-wife, Winnie Madikizela-Mandela, topped the NEC list in 2007. This year, she was second-last on the list and the announcement of her name failed to draw any cheers. Those who received the loudest cheers by delegates this year included sacked police commissioner Bheki Cele and former Gauteng housing MEC Humphrey Mmemezi, who was fired for misusing a state-issued credit card. The new NEC included several cabinet ministers and AU Commission chair Nkosazana Dlamini Zuma, as well as ANC spokesman Jackson Mthembu.

Cabinet ministers on the list are Public Enterprises Minister Malusi Gigaba, Public Service Minister Lindiwe Sisulu, Minister in the Presidency Collins Chabane, Justice Minister Jeff Radebe, Home Affairs Minister Naledi Pandor, Science and Technology Minister Derek Hanekom, Finance Minister Pravin Gordon, Police Minister Nathi Mthethwa, Higher Education Minister Blade Nzimande, Intelligence Minister Siyabonga Cwele and National Assembly Speaker Max Sisulu. Former Reserve Bank governor Tito Mboweni, and former arts and culture minister Pallo Jordan were also elected. Closing the conference on Thursday night, Zuma announced that Motlanthe will lead the partys political education programme. We thank the former deputy president for availing himself for this critical task, he said to cheers from delegates. The ANC must root out factionalism, Zuma said. We will be rooting out all the tendencies factionalism, sowing disunity and the use of money to buy members or positions, or even worse, the attack on members of the ANC. He warned the party would deal with members who disrupted ANC meetings. He said the conference had robust and constructive debates on policies. The priority now was to draw up a clear plan on how to implement them. The plan was expected to be ready early next year.

l The conference rejected the idea of nationalisation, opting instead for strategic intervention in the economy where necessary. The national conference has refused to be drawn into the word nationalisation which means nationalisation as discussed over the past few months is off the table, ANC economic transformation committee head, Malusi Gigaba, said on Thursday. But the government would decide on strategic ownership in the economy when deemed necessary. There might come a moment when a particular sector might need to be nationalised for particular purposes as happened in the UK and US during the global economic crisis Weve not limited ourselves. National conference was eager that we provide final clarity on this. There shouldnt be any expectation the ANC will move from here and start deciding who and where were going to nationalise, he said.

21 December 2012 The Times Page 17 Mondli Makhanya Schizophrenia grips ANC at Mangaung conference RENEWAL, unity and integrity were the buzz words at the ANC's conference in Mangaung this week. They were words of aspiration as South Africa's governing party examined the state of its affairs and its performance in governance and plotted its future. It was because of the centrality of these words in the workings of the week that the Mangaung conference was thick with irony and contradiction. Setting itself the task of cleaning itself up and modernising, the ANC committed to devising a 10-year programme of renewal. According to ANC thinker and Gauteng ANC secretary David Makhura, this decade of the cadre would involve "political, ideological, academic and ethical training" of ANC members. ANC members would be trained in line with a "cadre policy" on the party's core values. "Integrity will be the primary criteria for membership of the ANC. An ANC member will have to be beyond question and beyond reproach, " said Makhura, just a day after the party had re-elected Jacob Zuma as its leader. The party would establish an "integrity commission" to police the conduct of its members. It would investigate allegations of impropriety, corruption and unethical behaviour by ANC members, particularly those who hold leadership positions and public office. It would also have the power to recommend the suspension of a member who was under a cloud, and the prosecution of such members by the party's disciplinary committee.

But, in some instances, Makhura added, the party would expect members who face allegations to use their own discretion and step aside while they are being investigated. "Conscientious members of the ANC would decide on their own when they face damaging allegations," said Makhura, without any hint of irony. In his opening address on Sunday, Zuma had also punted the need to root out "alien tendencies" if the ANC was to be successful in renewing itself. He urged delegates to deliberate on "how we should fight corruption and promote ethics and integrity within the ANC as well, instead of leaving action against corruption to the government alone". Another alien tendency that needed to be fought, Zuma said, was the practice of ANC members using public office to benefit and enrich themselves. For this comment, Zuma received cheers from an adoring audience. Unity was the other recurrent theme in a most divisive conference. The theme of the conference was "Unity in action towards socioeconomic freedom". On the public platforms, the leaders repeated the unity mantra over and over , seemingly in denial about the wars that were being waged under their noses. Delegates sang songs disparaging leaders who helped engineer Thabo Mbeki's ousting in 2007 and put Zuma in office. Deputy President Kgalema Motlanthe was a goat whose departure was "very good news", was just one of the songs they sang about the only leader they revered during the Polokwane conference and in the aftermath. The likes of Fikile Mbalula, Tokyo Sexwale, Mathews Phosa, Paul Mashatile and Thandi Modise - who had been on the Motlanthe slate - were suddenly enemies rather than electoral foes. During the two days of electoral contest, the mood among delegates was decidedly tense. And, in the wake of the Zuma camp's victory, there was unbridled triumphalism on the one side and inconsolable dejection on the other. Motlanthe supporters rallied too, trashing Zuma on his relationship with the Guptas. What will now follow are repercussions reminiscent of the post-Polokwane fallout as the lives of the losers are made unbearable. A new round of purges will follow, leading the ANC to bleed talent and remain in permanent turmoil. Having vanquished the foe, new rifts will develop among the victors. The first spur will be contestation for places on the 2014 electoral lists, a process that begins during the course of next year. Battle lines will be drawn and the public will be treated to another round of governing party wars. Thereafter, it will be gloves off for the race for the 2017 ANC conference, with different leaders vying to succeed Zuma and claim other positions on the top rungs. Cyril Ramaphosa's return to big politics may have put him in pole position to succeed Zuma but, as he knows, loyalties in politics are fickle.

Just as happened to Motlanthe, some of those who cheered him on this week will be among those who will be sharpening their knives in no time. All the ANC crown princes know that the 2019 election will be the last one in which the party will be guaranteed victory and its leader assured of the presidency of the republic. Others know that it might be the last guaranteed ticket to cabinet positions and premierships, so the fights might be more vicious than the ones we have seen in the past. Renewal, integrity and unity will remain mirages under these circumstances. The decade of the cadre may just be the decade of accelerated decline.

21 December 2012 The Times Page 4 Caiphus Kgosana and Thabo Mokone ANC gets serious about curbing corrupt members THE ANC has released a detailed plan to clamp down on corrupt, ill-disciplined and unruly members. The crackdown will be extended to its "deployees" in the government. An integrity committee - to be established within the next three months - will have powers to impose wide-ranging sanctions on misbehaving members, including forcing those in trouble with the law to "step aside" while they try to clear their name. The commission will be able to remove members from high-ranking positions in the government and state institutions if they are found guilty of financial impropriety and other irregularities. The setting up of the integrity committee was one of the resolutions adopted by the ANC elective conference yesterday. Gauteng ANC secretary David Makhura, one of the drafters of the proposals on organisational renewal, said the integrity committee would be the ruling party's weapon against corruption. "That committee will be able to recommend the removal of such a leader of the ANC," he said. "Our principal weapon to deal with corruption is the integrity committee. Issues may be brought to the integrity committee about the conduct of a leader of the ANC or an official representative of the ANC who is doing unethical things. The committee will operate on the basis of trying to ensure that each one of us abides by the code of conduct of the ANC, core values of the ANC, as well as the laws of the land."

Gauteng, the only ANC province with an integrity committee, used it successfully to get rid of housing MEC Humphrey Mmemezi after he abused his government-issue credit card. But Mmemezi, aligned with the successful campaign to re-electPresident Jacob Zuma, is likely to make a spectacular comeback after his election yesterday to the party's national executive committee. ANC delegates also agreed on a constitutional amendment that allows the party to discipline directly "deployees" found guilty of corruption, money-laundering, racketeering or any other act of financial impropriety in the positions they hold. Andries Nel, a member of the commission on constitutional amendments, said the option of asking members in trouble with the law to "step aside" would not apply to those already facing criminal charges, such as ANC Northern Cape chairman John Block.

21 December 2012 The Times Page 2 TJ Strydom, Olebogeng Molatlhwa and Thando Mgaga Minerals: 'We want fair share' NATIONALISATION as a blunt instrument of economic transformation is off the table, but targeted intervention in certain sectors remain on the agenda. This announcement came as the ANC's elective conference in Mangaung drew to a close yesterday. Public Enterprises Minister Malusi Gigaba said "the issue of nationalisation as [it has] been discussed over the last few months is off the table". Instead, the state "will increase state ownership in strategic sectors where [it is] deemed appropriate on a balance of evidence". The commission also confirmed that the National Development Plan - a comprehensive economic blueprint for the country - will be the overarching long-term vision of the ANC. This follows months of uncertainty among investors and two ratings agencies downgrading South Africa's government debt, potentially making it more expensive to raise funds for its multibillion-rand infrastructure plans. The ANC Youth League had been pushing hard for the nationalisation of the mines. The ANC, however, said yesterday that the government wanted an "equitable share" of the revenue of mining companies. Enoch Godongwana, head of the party's economic transformation committee, confirmed that it would take the form of a tax, but details will only be finalised later. A

resource rent tax, similar to the system used in Australia, is one of the options being considered. "A particular sector might need to be nationalised for particular purposes. It happened in the UK and in the US during the global financial crisis," Gigaba said. The financial crisis has cost South Africa 1million jobs over the past years and specifically 200000 in manufacturing.

21 December 2012 The Times Page 1 Sibongakonke Shoba and Dominic Mahlangu ANC executive now almost 100% Zuma

PRESIDENT Jacob Zuma has consolidated his grip on the ANC - his backers now dominate all its most powerful structures and the national party conference in Mangaung adopted almost all his key policy proposals on the opening day. As well as being determined to win a second term as party president, Zuma went to Mangaung with the intention of getting party branches to reject the nationalisation calls made by former ANC Youth League leader Julius Malema. Zuma also wanted the conference to endorse Trevor Manuel's National Development Plan, which he intends to put at the centre of government programmes for the next seven years. Zuma got his way on both counts at the conference yesterday. Public Enterprises Minister Malusi Gigaba told journalists that wholesale nationalisation, as proposed by the youth league, was now "off the table". Zuma repeated his call for party unity last night, saying: "We must all do everything that is humanly possible to lead the organisation in promoting unity. As Madiba taught us, unity is the rock upon which the ANC was founded. "Unity will not [just] happen, we need to work hard for it." Zuma's hand will also be strengthened by the election of a national executive committee that is dominated by those loyal to him. During his first term as party president, Zuma's leadership faced resistance from some in the NEC. Malema and Arts and Culture Minister Paul Mashatile were among the NEC members who openly opposed some of his programmes. But Zuma allies made a clean sweep in the NEC elections yesterday, kicking out several leaders who were part of the unsuccessful bid to oust Zuma. Tokyo Sexwale, Mathews Phosa, Fikile Mbalula and Mashatile were purged.

Those elected to the NEC include disgraced former Gauteng housing MEC Humphrey Mmemezi and former national police commissioner Bheki Cele. Former agriculture minister Thoko Didiza and former Reserve Bank governor Tito Mboweni are also on the executive. Finance Minister Pravin Gordhan's election to the NEC will strengthen his position in the government. The election earlier this week of Cyril Ramaphosa as the party's deputy president is likely to give impetus to the implementation of the National Development Plan. Ramaphosa, one of the plan's architects, is likely to take over as national deputy president from Kgalema Motlanthe. It is expected that he will be an important driver of the plan, which sets out the country's developmental objectives for the next 20 years. At the start of the conference on Sunday, Zuma made a passionate plea to delegates to endorse the National Development Plan, which alliance partner Cosatu has criticised for promoting "conservative" economic policies. ANC economic transformation committee chairman Enoch Godongwana told journalists yesterday that the conference had adopted the plan as the pillar of its policies.

20 December 2012 Business Day Page 2 Natasha Marrian Motlanthe to lead ANCs political school FORMER African National Congress (ANC) deputy president Kgalema Motlanthe is to head up the partys political school, President Jacob Zuma said on Thursday. Mr Motlanthe, who challenged Mr Zuma for the party presidency and lost to the incumbent, declined nomination to serve on the ANCs national executive committee, amid concern that the ruling party lost skilled leaders after elective gatherings. The ANC again emphasised unity at the close of the 53rd national conference in Mangaung on Thursday, with Mr Zuma telling delegates that the party had to take its task to unite seriously, unlike after the divisive Polokwane elective conference in 2007. The primary task of the ANC going forward is to work for unity at all levels of the organisation, he said. We must all do everything that is humanly possible to lead the organisation in promoting unity. Mr Zuma said the party had to root out ill-discipline, factionalism and public spats through political education, which the party would no longer merely speak about, but also implement.

We have to fast-track the implementation of a coherent cadre policy, the president said, and institutionalise political education. We must move away from saying how important political education is, to actually implementing the decisions. Through political education and cadre development as well as decisive action against illdiscipline, we will be able to root out all the tendencies that we have identified over the years. Mr Motlanthe would head up political education, he said, following discussions between himself, newly elected deputy president Cyril Ramaphosa and Mr Motlanthe. In an interview with Business Day earlier this month, Mr Motlanthe said he was happy to take direction from those he led, even if this took him full circle. He also expressed a desire to teach those at the beginning of their political careers, in the Congress of South African Students (Cosas). He was quick to respond when asked if he had ever contemplated professional life after the ANC, saying political education was close to his heart and he believed he could make a wonderful contribution. Mr Motlanthe said at the time that he was privileged to be asked to lead the ANC by some of its branches. Briefly the president of South Africa when Thabo Mbeki was recalled, Mr Motlanthe scoffed at suggestions of harbouring presidential ambitions at the ANCs previous national electoral conference in Polokwane, where he joked that he would prefer to help coach Bafana Bafana. At the time, he was quoted as saying his trademark goatee had steadily turned grey during his time in the ANC. Call for discipline In his closing address, Mr Zuma also reminded delegates that all ANC members had a right to be nominated for any position in the party and to accept or decline that nomination. Therefore, no member or leader of the ANC should be ostracised for exercising their democratic rights as members. Mr Motlanthe had declined nomination both for his own position as deputy ANC president and for the ANCs national executive committee. Mr Zuma also said the conference had tasked the incoming NEC to develop guidelines for and constitute an integrity committee within the next three months. The NEC must also develop a code of conduct to be circulated to all branches in the first quarter of 2013. Mr Zuma added that the conference had in its wisdom taken a decision that the incoming NEC must discuss the matter of the ANC Youth League. We appreciate that decision and the spirit in which it was taken. Economy

On the economy, Mr Zuma said the ANC would in the next five years take decisive and resolute action to overcome the triple challenges of poverty, inequality and unemployment. The ANC government will therefore transform the structure of the economy through industrialisation, broad-based black economic empowerment, addressing the basic needs of our people, including women and youth, as well as strengthening and expanding the role of the state, he said. More importantly, the ANC has at this conference welcomed and embraced National Development Plan as a critical basis for united action by all South Africans to build a truly united, non-racial, non-sexist, democratic and prosperous society. Therefore, Mr Zuma said, the ANCs first strategic task is now the comprehensive and democratic implementation of the National Development Plan. It is a strategic task to ensure that by 2030 we attain full employment for our people, consequently eradicate poverty and significantly reduce inequality.

21 December 2012 Business Day Page 1 Allan Seccombe Miners breathe sigh of relief with nationalisation debate off table THE mining industry is relieved the African National Congress (ANC) has firmly rejected nationalisation of mines, talk of which had caused policy uncertainty, cast a pall over their shares and dominated their interactions with international investors. But there will be intense negotiations between the sector and the Treasury on a new tax regime for mining companies, which argue that they are the most heavily taxed in South Africa. The Chamber of Mines said on Thursday in a statement that the finalisation of the ANCs stance on nationalisation removed a key point of uncertainty for investors. "The chamber welcomes the ANC resolution that wholesale nationalisation is not a reasonable or sustainable option and that it has now firmly ruled out nationalisation of the mining industry. "We are hopeful that this will create some certainty amongst investors and once again encourage investment in the countrys mining sector." Cadiz Corporate Solutions analyst Peter Major said there had been heightened fears of what could have come from the ANC against the backdrop of unprecedented strikes this year that cut billions of rand in revenue for platinum and gold companies. The outcome of the policy debate was good. "Its come out a whole lot better than any of us thought it would," Mr Major said. " It has defused the Malema-type guys in the party ." The ANC has for years been dithering on calls for nationalisation from the partys youth league and its since-expelled president, Julius Malema. But there remains

uncertainty in the market about the quantum of taxes that may be imposed on the mining sector. The JSE index, housing the top 20 resources shares, closed 0.2% down on Thursday. "The real issue is that there is still no certainty on what will happen, so investors will remain cautious until there is some clarity," said Des Kilalea, a mining analyst with Royal Bank of Canada in Europe. "Merely taking nationalisation off the table is not sufficient. There has to be a detailed and firm policy if investment dollars are to be attracted." The mining sector paid R25.8bn in direct corporate taxes and R5.5bn in royalties last year. It is further obliged to spend money on social and labour plans necessary to secure mining rights. Chamber of Mines CEO Bheki Sibiya said last week that higher taxes could force the closure of marginal shafts and the potential loss of tens of thousands of jobs. A senior figure in the ANC said the appointment of businessman Cyril Ramaphosa as deputy president of the party augured well for the mining sector. "One of the functions of the position taken here (at Mangaung) was to manage the expectations of people frustrated by what they perceive as an insignificant contribution made by the mining industry. "Its important to manage those expectations and its even more important that this matter be resolved as soon as possible to thwart those who want wholesale nationalisation." The source said the nationalisation debate had engendered uncertainty that was higher than that emanating from discussions about the level of taxation. "Assets are not under threat of being taken anymore. "It now means profits will be less, but the extent of that is up for discussion," the source said. "There was a price to pay to deal with nationalisation and that is higher taxes that will be imposed in a responsible manner."

21 December 2012 Business Day Allan Seccombe Miners breathe sigh of relief with nationalisation debate off table THE mining industry is relieved the African National Congress (ANC) has firmly rejected nationalisation of mines, talk of which had caused policy uncertainty, cast a pall over their shares and dominated their interactions with international investors. But there will be intense negotiations between the sector and the Treasury on a new tax regime for mining companies, which argue that they are the most heavily taxed in South Africa.

The Chamber of Mines said on Thursday in a statement that the finalisation of the ANCs stance on nationalisation removed a key point of uncertainty for investors. "The chamber welcomes the ANC resolution that wholesale nationalisation is not a reasonable or sustainable option and that it has now firmly ruled out nationalisation of the mining industry. "We are hopeful that this will create some certainty amongst investors and once again encourage investment in the countrys mining sector." Cadiz Corporate Solutions analyst Peter Major said there had been heightened fears of what could have come from the ANC against the backdrop of unprecedented strikes this year that cut billions of rand in revenue for platinum and gold companies. The outcome of the policy debate was good. "Its come out a whole lot better than any of us thought it would," Mr Major said. " It has defused the Malema-type guys in the party ." The ANC has for years been dithering on calls for nationalisation from the partys youth league and its since-expelled president, Julius Malema. But there remains uncertainty in the market about the quantum of taxes that may be imposed on the mining sector. The JSE index, housing the top 20 resources shares, closed 0.2% down on Thursday. "The real issue is that there is still no certainty on what will happen, so investors will remain cautious until there is some clarity," said Des Kilalea, a mining analyst with Royal Bank of Canada in Europe. "Merely taking nationalisation off the table is not sufficient. There has to be a detailed and firm policy if investment dollars are to be attracted." The mining sector paid R25.8bn in direct corporate taxes and R5.5bn in royalties last year. It is further obliged to spend money on social and labour plans necessary to secure mining rights. Chamber of Mines CEO Bheki Sibiya said last week that higher taxes could force the closure of marginal shafts and the potential loss of tens of thousands of jobs. A senior figure in the ANC said the appointment of businessman Cyril Ramaphosa as deputy president of the party augured well for the mining sector. "One of the functions of the position taken here (at Mangaung) was to manage the expectations of people frustrated by what they perceive as an insignificant contribution made by the mining industry. "Its important to manage those expectations and its even more important that this matter be resolved as soon as possible to thwart those who want wholesale nationalisation." The source said the nationalisation debate had engendered uncertainty that was higher than that emanating from discussions about the level of taxation. "Assets are not under threat of being taken anymore.

"It now means profits will be less, but the extent of that is up for discussion," the source said. "There was a price to pay to deal with nationalisation and that is higher taxes that will be imposed in a responsible manner."

21 December Business Day Setumo Stone ANC Youth Leagues future in balance THE future of the African National Congress (ANC) Youth League came under scrutiny this week at the partys national conference, threatening to erode the little progress made between the league and the ANC since Julius Malema was booted out. Speaking at a media briefing on Thursday, former ANC national executive committee member Febe Potgieter-Gqubule said delegates gave the incoming executive committee the mandate to urgently intervene and assess the state of the youth league. This follows a strong push from President Jacob Zumas supporters for the ANC to disband the youth league executive and order an early conference to elect new leaders. However, attempts by the ANC to intervene in the running of the youth league are likely to spark another controversy on the interpretation of the leagues autonomous status. Some in the league this week dared the ANC to go ahead and intervene. Ms Potgieter-Gqubule said the league is an organ of the ANC and it cannot define itself outside the mother body. The league had supported Deputy President Kgalema Motlanthe to replace Mr Zuma at the elections this week in Mangaung. But he lost to Mr Zuma by a wide margin. The term of office of the youth league leadership ends in 2014. But the expulsion of its former president, Mr Malema, as well as the suspension of its secretary-general Sindiso Magaqa, had left it in limbo. In an interview earlier this week, Mpumalanga premier and ANC provincial chairman David Mabuza, a close ally of Mr Zuma, said the league had been participating in efforts ahead of the conference to seek unity within the ANC, including a consensus on the partys national leadership candidates. Mr Mabuza said there was "room to build the youth league with the current contingent and allow them to go to a proper conference". ANC secretary-general Gwede Mantashe who had been the subject of the leagues vociferous attacks against the ANC during the Malema era also took a conciliatory note, saying the league was not in trouble. "All the league needs is to be helped to play its rightful role. "It is very militant, but sometimes it loses focus and it is the responsibility of the incoming national executive committee to help the youth league," Mr Mantashe said this week.

On Sunday, Mr Malema wrote a letter to the conference for permission to return as youth league president. Mr Mantashe said the letter was received after the programme for the conference had been adopted. Mr Malema was expelled from the ANC for comparing the leadership style of Mr Zuma to that of former president Thabo Mbeki, and for remarks on bringing about regime change in Botswana.

21 December Business Day Dlamini-Zuma tops the list as ANC chooses national executive

FORMER home affairs minister Nkosazana Dlamini-Zuma, now chairwoman of the African Union Commission, was the first member of the African National Congresss new national executive committee (NEC) announced at its national elective conference in Mangaung on Thursday, the last day of the conference. She had received the most votes in the election that took place on Wednesday. The 80-member NEC is the ruling party's highest decision-making body between conferences and general councils. Also high up on the list were Minister of Public Enterprises Malusi Gigaba, in second place, and Public Service and Administration Minister Lindiwe Sisulu in third, along with Minister in the Presidency Collins Chabane, Justice Minister Jeff Radebe, Home Affairs Minister Naledi Pandor and Science and Technology Minister Derek Hanekom. Senior ANC figures who supported the change campaign in Mangaung were nowhere to be seen on the list of the partys top brass. Among those not elected were Sport and Recreation Minister Fikile Mbalula, ANC Gauteng chairman Paul Mashatile, Human Settlements Minister Tokyo Sexwale, former ANC deputy secretary-general Thandi Modise and former ANC treasurer-general Mathews Phosa. Thoko Didiza, former minister of public works, joined the NEC too, and delegates cheered when the name of former Gauteng local government MEC Humphrey Mmemezi was read out. He resigned after it was revealed that he bought a painting at McDonalds using a government credit card. Former national police chief Bheki Cele, who was fired by President Jacob Zuma, also made the cut. The party has also selected top financial minds in a bid to boost its financial prowess, a move likely to bring confidence to the party's top leadership structure in the eyes of investors. The economic boost to the NEC came in the form of Finance Minister Pravin Gordhan, Minister of Rural Development and Land Reform Gugile Nkwinti and former Reserve Bank governor Tito Mboweni. Police Minister Nathi Mthethwa, Speaker of Parliament Max Sisulu and former Cabinet minister Z Pallo Jordan got the nod.

From the ANCs alliance partners, South African Communist Party (SACP) general secretary Blade Nzimande and Congress of South African Trade Unions (Cosatu) president Sdumo Dlamini were elected as well. Other trade unionists also featured prominently, including National Education, Health and Allied Workers' Union general secretary Fikile Majola, National Union of Mineworkers president and SACP chairman Senzeni Zokwane and Free State Cosatu secretary Sam Mashinini. Joining the other NEC members on stage were ANC spokesman Jackson Mthembu, Health Minister Aaron Motsoaledi and ANC economic policy chief Enoch Godongwana. In a nod to the younger generation in the ANC, former ANC Youth League treasurer Pule Mabe and former presidential spokesman Zizi Kodwa were elected too. Winnie Madikizela-Mandela, who received the most votes in the NEC election at Polokwane in 2007, squeezed into the second-last spot this time. Former ANC deputy president Kgalema Motlanthe had withdrawn from nomination to the NEC after losing the race for the party presidency to Mr Zuma earlier this week. Others who had not made themselves available for election to the NEC were Planning Minister Trevor Manuel, Cosatu general secretary Zwelinzima Vavi and former Free State provincial leader Ace Magashule, whose provincial executive committee was disbanded after the Constitutional Court last week declared the Free State elective conference invalid.

21 December Business Day Ray Ndlovu Zuma victory bad for Mugabe PRESIDENT Jacob Zumas re-election to lead the African National Congress (ANC) in Mangaung this week for a second term is likely to slam the brakes on President Robert Mugabes bid to hold early elections, according to political analysts in Zimbabwe. Mr Mugabe wants elections in March, but Mr Zuma, the Southern African Development Community (Sadc)-appointed mediator, is widely seen as an obstacle to Mr Mugabes plans. Mr Mugabes Zanu (PF) passed a resolution at its party conference held at the beginning of this month to go ahead with early elections next year, despite key political reforms not yet being completed. Insiders in Zanu (PF) say that Mr Mugabe is now privately conceding that the elections he desperately wants held early may not be possible until next June because of the slow pace of implementing the reforms.

Political analyst Charles Mangongera said on Thursday Mr Zumas victory meant there would be a continuation of the same trajectory of dealing with Mr Mugabe. "A leadership change in the ANC would not necessarily have resulted in a change of attitude towards Harare by Sadc, but would have certainly slowed down things a bit. Mr Zuma and his facilitation team will stick to their guns in calling for strict adherence to the road map on elections. This will put a damper on Zanu (PF)s threat to call an election without a new constitution." Political analyst Tanonoka Joseph Whande said Zanu (PF) was "in the same league of losers as the former ANC Youth League leader Julius Malema", who had launched a public push to block Mr Zumas re-election. "Zanu (PF) may not have been publicly campaigning against Mr Zuma, but they stood to benefit immensely from a leadership change in the ANC," he said. Zanu (PF) chairman Simon Khaya Moyo, however, downplayed the effect of Mr Zumas win. He said that his party remained the firm favourite to win the next elections. "Our party has always stood firm in advancing the views of the people and we believe that agreeing to anything from external sources, other than the views of the people, is a betrayal of the revolution. Zanu (PF) remains the sole political choice for the majority of people of Zimbabwe", Mr Moyo said. The opposition Movement for Democratic Change (MDC) welcomed the ANC leadership outcome. "The election of Mr Zuma will ensure continuity in the mediation process in Zimbabwe," said MDC spokesman Douglas Mwonzora.

19 December 2012 Business Report Page 1 Donwald Pressly Ramaphosa's election may boost plan The election of Cyril Ramaphosa, the deputy chairman of the National Planning Commission, to the ANCs second most powerful position has given the National Development Plan (NDP) much-needed impetus, but cabinet ministers played down any contradictions it may have with the New Growth Path (NGP), which already has the backing of ANC structures. Ramaphosa notched up 3 018 votes in the race for deputy to President Jacob Zuma, who got 2 983 votes against Kgalema Motlanthe, signalling that the more conservative and pro-business NDP will receive a solid thumbs-up by the 4 000 delegates to the Mangaung ANC conference. Before the conference started, Ramaphosa himself noted that the plan needed to get the conference nod, although the blueprint, driven by National Planning Minister Trevor Manuel, had already been given the green light by Parliament and the cabinet.

In his opening speech, Zuma referred to the plan as representing a confluence of ideas that extended beyond ANC supporters alone, and he did not wish to entertain debate about alternative plans. During a Progressive Business Forum breakfast yesterday, Economic Development Minister Ebrahim Patel said he did not view the NDP and the NGP, driven by his department, as being contradictory. Some minor details might clash during the implementation process, he said, but these were not significant. Deputy Finance Minister Nhlanhla Nene expressed similar sentiments on Monday at the conference. The NDP is essentially a development blueprint. It warns that urgent steps are needed to grow the economy, drastically raise employment levels, massively improve education standards, upgrade infrastructure, curb corruption and improve health services. The NGP, first launched in 2010, has seven priority areas, including job creation, infrastructure development, agriculture, mining, manufacturing, the green economy and tourism. It places emphasis on the state creating the platform for economic development. Pressed on whether the conference would end critical policy uncertainty in the economic arena, Patel said: I believe that business will get that certainty. However, he said that in a democracy, public policy was open to public debate. It is not an issue for smoke-filled rooms it is a societal matter of course it is sometimes noisy and on occasion it is messy. Confronted by the charge that the NGP which sees a significant role for the government and its state-owned entities in creating jobs was not consistent with the NDP, Patel said: The NGP and the NDP fit well together [and this is] not by accident. . The starting points are the same, he argued. Both documents sought fast economic expansion and job-rich growth. Asked by First National Bank chief economist Sizwe Nxedlana why there appeared to be a disconnect between policies on paper and accountability on the ground such as the non-delivery of school textbooks Patel said he agreed that there was often a lot of talk about policies, but little action. Business Unity SA (Busa) welcomed the results of the vote for the ANCs new top six leadership. It particularly drew attention to the need for the implementation of the NDP. Busa chief executive Nomaxabiso Majokweni said the new top six were coming on board at a time when the country is faced with serious and critical challenges.

They included declining confidence among investors, high and escalating levels of corruption, socio-economic challenges such as increasing levels of inequality, joblessness and poverty. Patel dismissed concerns that foreign direct investment, for example, was dropping. One could not look at an unusually good year, such as when the US-based Walmart bought Massmart, and then compare this with a year when there was reduced foreign investment. Meanwhile, Bloomberg reported that Ramaphosas election as ANC deputy president had spurred a call by Cosatu for him to step down as chairman of MTN and Bidvest. Ramaphosa also sits on the boards of SABMiller, Standard Bank and Lonmin. Ramaphosa declined to comment, saying he would do so later.

18 December 2012 News 24 Sapa Zille scathing on Zuma's re-election The ANC's national conference election results will hasten the "disintegration" and collapse of the ruling party, Democratic Alliance leader Helen Zille said on Tuesday. "Many ANC members and many more ANC voters are feeling alienated by today's decision in Mangaung." Zille said it was a sad day for South Africa because Jacob Zuma's re-election as African National Congress president sent out a message that this was a movement that put "powerful people" above the law. "This is particularly clear globally, where it is just inconceivable that a president who has avoided, for three years, facing trial on over 700 counts of corruption, could be re-elected a party president." She was referring to Zuma's previous legal battle against corruption allegations, resulting from the fraud conviction of his former financial advisor Schabir Shaik. In April 2009, the National Prosecuting Authority dropped the charges against Zuma, just months before he was elected into the country's top post. The DA recently called on Zuma to take a leave of absence until allegations against him were dealt with. Zille said Zuma's re-election also sent a message that "it is acceptable to use positions in government for personal enrichment, and not for public service". She was referring to a multi-million rand upgrade at Zuma's Nkandla home.

Zille said Tuesday's results showed that the abuse of public funds was acceptable in the ANC, and that there were no consequences. She said Zuma's lack of leadership on any major policy questions would continue "as will the corruption and abuse of public resources that has so far characterised his time in office". Zille said the unemployed and poor South Africans particularly felt let down by the results. "... as it is they who bear the real brunt of a president and government that cannot offer any implementable solutions for economic growth and job creation. "We invite all South Africans who are disappointed by the ANC's decision today to join this movement [the DA] - this new majority that is working for, and delivering, meaningful social change and job creation in South Africa." 19 December 2012 Cape Times/ The Star Zara Nicholson Achmat to consult veterans league over ANC support

ACTIVIST Zackie Achmat yesterday described the Mangaung vote as a victory for the corrupt, but before he acts on his vow to withdraw support for the ANC if Jacob Zuma was returned for a second term, he is first consulting the ANC Veterans League. Minutes after the voting results were announced at the Mangaung conference yesterday, the Cape Town activist told reporters: This marks the end of the ANC as a party of progress, freedom and social justice. He described the vote as a display of fake dominance, and a victory for the corrupt business and public service faction. Last month, Achmat who joined the ANC 32 years ago, said he would no longer support the party if Zuma was re-elected as ANC president. At the time, he threw his weight behind Deputy President Kgalema Motlanthe, saying: The ANC today is no longer the party I joined in prison during 1980 when I was recruited by Johnny Issel. From the time of former president Mbeki, corruption has been rewarded, whether it be the arms deal or Oilgate, and under President Zuma it has reached significant proportions. Achmat has always openly criticised the party and said he withdrew his membership under Mbeki in 2004, and would now withdraw his support for the ANC. However, the ANC Veterans League sent Achmat an open letter asking him not to withdraw his support. Achmat said: Even though my instinct is to stick to my principles, I will consult the veterans and explain why I want to leave rather than ask permission. The way I think, I dont think I can support the ANC.

The letter, signed by the leagues president, Sandi Sejake, said: It is not even worth thinking of leaving the ANC after the years of sacrifice just because agents of destruction have an upper hand in the ANC at present. The ANC is our proverbial Jerusalem and we are the only ones who must build its walls so that future generations can see where they come from and occupy the heights from which they are able to clearly map their destiny. That is not through tenders, bribes, corruption, theft, plundering, destruction of education for the youth, maculating the health system, and subtle promotion of tribalism and racism. The answer is through rebuilding the young people to provide a healthy leadership to the ANC and in the ANC. Sejake told Achmat that he was one of the few people in the ANC who still fought for substantive implementation of the Freedom Charter. Achmat said he would make a formal announcement about his support after consulting the league. 19 December 2012 Business Day Staff ANC slaps down Vavi over election slates

A NEW war of words erupted last night between the African National Congress (ANC) and Congress of South African Trade Unions (Cosatu) chief Zwelinzima Vavi, with the ANC slapping down Mr Vavis earlier criticisms of the partys Mangaung conference. The standoff exposed the frailties in the ruling alliance, and made a mockery of pleas by President Jacob Zuma and ANC secretary-general Gwede Mantashe for the alliance partners to settle their differences away from the public glare of the media. Last night, ANC spokesman Jackson Mthembu said Mr Vavi had ignored ANC leaders warnings that "Cosatus public posture at times causes problems for the ANC", noting: "Now, because Zwelinzima Vavi was not in the conference when the organisational report was delivered, he repeats the same mistake. If he doubts the positive impact of this conference, he must monitor the international financial markets." Earlier, Mr Vavi had said: "Unfortunately there has not been a great show of unity. In the past two days thats not what the conference has demonstrated in terms of the leadership fighting. "The slate thing is not going to help us . We are quite worried about the slate." He hoped a winner-takes-all mentality was not adopted. This would mean people on the wrong slate would be sidelined and their talents ignored.

"That will be a tragedy. The winner-takes-all mentality is a recipe for disaster in terms of unity. There has to be greater levels of unity in the ANC and greater levels of unity between the ANC and the alliance formation. And you can only achieve that if that discussion on organisational renewal is taken seriously by everybody." Mr Vavi had been nominated by some structures in the ANC for a position on the national executive committee (NEC), but declined the nomination, saying: "The ANC members were trying to get the NEC strengthened by getting people like me and others to come in. But Im sorry that Ive disappointed them yet again." Elections for the NEC began last night. A string of high-profile ANC members, including Deputy President Kgalema Motlanthe, declined nomination. Others who said no included presidential spokesman Mac Maharaj, Minister in the Presidency Trevor Manuel, Northern Cape ANC chairman John Block, and struggle stalwart Jay Naidoo. National Union of Metalworkers of SA general secretary Irvin Jim and National Union of Mineworkers general secretary Frans Baleni also refused, as did Free State ANC chairman Ace Magashule. Among those on the list for possible election to the NEC were: former Gauteng housing MEC Humphrey Mmemezi; former ANC Youth League spokeswoman Magdalene Moonsamy; Human Settlements Minister Tokyo Sexwale; Health Minister Aaron Motsoaledi, ANC spokesman Jackson Mthembu, Police Minister Nathi Mthethwa, Mining Minister Susan Shabangu, former head of the Presidency Frank Chikane, and former Reserve Bank governor Tito Mboweni. Former Western Cape premier Ebrahim Rasool, former chief whip Tony Yengeni, Economic Development minister Ebrahim Patel, Rural Development Minister Gugile Nkwinti, former national police commissioner Bheki Cele and Gauteng Premier Nomvula Mokonyane were also nominated. 19 December 2012 Business Day Page 7 Allister Sparks Ramaphosa move makes sense if he is delegated wide powers SELDOM has so much been written by so many indicating so little as is pouring out of the African National Congresss (ANCs) national conference in Mangaung. As the conference gets under its messy way, with war talk between factions, credential disputes, insult hurling, the threat of legal interdiction and at least one assassination attempt, it is clear that there is really only one issue of political consequence to mark what is supposed to be a landmark event in the ANCs 100year history: why is Cyril Ramaphosa making a comeback 18 years after he should have been tapped as president Nelson Mandelas successor?

Everything else taking place at Mangaung has been a foregone conclusion for months. It has long been obvious that the interlocking patronage system that President Jacob Zuma has established within the ANC would ensure his automatic re-election, and that his disillusioned deputy, Kgalema Motlanthe, would challenge him for the presidency, knowing he would lose but regarding it as "a matter of principle" that the dysfunctional Zuma should not go unchallenged. It has been evident, too, that whatever policy decisions are taken in Mangaung will matter little, for the government has a mountain of resolutions taken at Polokwane five years ago that have not been implemented. Another dozen or so taken now will simply swell the backlog. Implementation is the ANCs critical problem. The government is paralysed by ideological gridlock. The fault line cuts through its economic ministries, with Finance Minister Pravin Gordhan and Planning Minister Trevor Manuel on one side and Economic Development Minister Ebrahim Patel and Trade and Industry Minister Rob Davies on the other. To favour one side is to alienate the other. So nothing gets done. This is where Ramaphosa comes into the picture, with his last-minute acceptance of nomination for the partys deputy presidency. I have a high regard for Ramaphosa. He and the National Partys Roelf Meyer were the heroes of the Convention for a Democratic SA, establishing a bond that piloted this country through a series of major transitional crises into our democratic era. It was Ramaphosa who was the fulcrum figure around whom the Constitutional Assembly crafted our new constitution. He is a master strategist and a shrewd negotiator. He founded the National Union of Mineworkers and went on to be secretary-general of the ANC at the first elective conference after it was unbanned. Mandela announced publicly that Ramaphosa was his personal choice to be his deputy and successor, but that he was outvoted by his leadership colleagues. As compensation, the admiring Mandela offered him the job of foreign minister, which would have placed him number three after then deputy president Thabo Mbeki. But Ramaphosa, who didnt get on with Mbeki, declined and went off in a huff to make a fortune in business. Had he not done so, he would have succeeded Mbeki in 2007 and been president by now. But he never showed any regret for his decision, which has made him the second-richest black person in SA after billionaire mining magnate Patrice Motsepe. So why does he want to come back to politics now? Why does he want to give up the chairmanship of Shanduka and McDonalds and a dozen other directorships, the whole glamorous world of international business, to become deputy to a man he was ranked ahead of before and who is now widely regarded as the most inept leader the ANC has ever had?

What is in it for him? Aye, that is the question! I cannot believe anyone with Ramaphosas talents, energy and ambition is prepared to be a wallflower in Zumas suite of presidential offices the way poor Motlanthe has been with visible frustration and unhappiness. Not for the next seven years, anyway, at which point Zuma will complete his second term and Ramaphosa will inherit the presidential nomination for the 2019 election. Ramaphosas belated acceptance of the nomination for the deputy presidency tells me the shrewd negotiator has been driving a bargain with Zuma. It was KwaZulu-Natal that nominated him, which suggests Zuma was behind the initiative. The fact that Zuma wanted him in the job, hopefully to give him success and a better legacy in his second and last term, would have put Ramaphosa in a strong negotiating position. Had he withdrawn at the last minute, Zuma would have been in an awkward spot, having to accept one of the other nominees, Tokyo Sexwale or Mathews Phosa, both of whom are in the anti-Zuma camp. So what is the bargain? That Ramaphosa can be the national candidate in 2014? I doubt that. Zuma wants that second term to repair his legacy, and he wants Ramaphosa to achieve that for him. So my guess is that he will delegate considerable authority to his new deputy, while he himself adopts a more detached head-of-state role. Of course Zuma, as president, would still have final executive authority. There was some speculation earlier about Ramaphosa becoming prime minister under Zuma, but the constitution makes no provision for that. The president can only delegate authority to his deputy and his Cabinet ministers. How he intends doing that has, I suspect, been the subject of negotiations between the two men. Of course, all of this is pure speculation on my part. But I cannot see why else Ramaphosa should have made such a leap backwards in his career history, or why Zuma would have wanted him to do so. It is therefore a matter of conjecture, of fitting pieces of a political jigsaw puzzle together. If I am right, and Ramaphosa does become an active deputy president as Mbeki was, it will be a matter of considerable importance to the country. For Ramaphosa was deputy chairman of the National Planning Commission that was appointed in May 2009, and whose widely acclaimed report setting out a long-term strategic and development programme for the country was presented to the government last June. It struck me as significant that Zuma devoted so much of his opening address on Sunday to that National Development Plan and that he sounded positive about it.

He said the plan was still the work of the commission, but now was the time for the ANC to consider whether to adopt it. Is this the overall game plan to break the gridlock, for Ramaphosa to become deputy president and drive the National Development Plan to give Zuma a successful second term and thus a burnished legacy? Maybe. But, if so, why has Trevor Manuel announced that he is quitting his long membership of the ANCs powerful national executive committee in tones that carried a whiff of disillusionment and led to speculation that he is on his way out of politics altogether? He was chairman of the National Planning Commission. Why would he want to leave the commission in his moment of triumph? But then again, perhaps he is destined to become the projects CEO. Given the ANCs habit of not allowing its candidates for leadership to campaign and explain their policies to the country at large for the people to judge, we simply dont know. All we can do is speculate.

19 December 2012 Business Day Page 7 Peter Bruce Man of action Ramaphosa good for Zuma SO JACOB Zuma gets a second term as party leader and, probably, as state president. And I am a few thousand rand out of pocket for rashly assuming, and betting earlier this year, that the African National Congress (ANC) had more sense. To be fair to Zuma, he has looked like a different person at this conference, commanding where once you would have expected him to ramble and giggle, and strong where you once would have expected him to be evasive.

But one swallow doesnt make a summer and one conference doesnt make a leader. Human nature would tell us that, at Zumas age, people dont change and that after the conference we can expect more drift and confusion. His personal problems have not gone away and the problems confronting the economy he runs get more difficult and complex by the day. The bright news is that he now has, in Cyril Ramaphosa, a man of proven principle and action as his deputy. I suppose it means Ramaphosa will become deputy president of SA as well. He will have no choice, really, because he will know he cannot survive the stark conflicts between holding high political office and running a large company in the private sector. He knows how to make things happen, even if you are not prepared to let the R18m bull bid go, and he will provide Zuma with the sort of credibility cover only the likes of Trevor Manuel still have to offer. I guess we will have to sit back and see how things develop. I was amused to read that Economic Development Minister Ebrahim Patel had said something positive

about the National Development Plan (NDP) that Manuel and Ramaphosa nursed into life over two years. I can only assume he felt that with Manuel out of the way (or in the process of leaving), the NDP might in time be bent to look a lot more like the New Growth Path, but I suspect Ramaphosa is going to be both a champion and a guardian of the NDP. I am among a privileged few to have heard and felt the wrath of Ramaphosa when he is truly angry. Some of you may remember me, as editor of the Financial Mail, endorsing Bantu Holomisa in the 1999 election, not long after Ramaphosa became a director of the Financial Mails publishing company. I can report that it wasnt pleasant taking those calls from him. Of course, as much as Ramaphosa can save Zuma, so can Zuma defile Ramaphosa if he is unable to wean himself off what appears to be a staple diet of financial dependency on friends of one kind or another, or business "associates" who see in the president an easy mark. Ramaphosa is putting a very carefully nurtured reputation on the line. Lets hope he still has it in 2019. IT WOULD be wrong, though, much as one welcomes Ramaphosas arrival in his new position, not to acknowledge the wonderful lesson in personal and political integrity delivered to the ANC by Kgalema Motlanthe. By deciding to contest only the presidency, he would have known he was fighting a lost cause and he may well now be relieved of his position as deputy president of the country. I hope the ANC leadership is not so stupid. The thuggery of Thabo Mbekis removal can surely not be repeated. Motlanthe gave the party the most precious gift he could yesterday he gave it his political life and asked for nothing in return.

19 December 2012 Business Day Page 7 Editorial ANC must cement unity with action THE African National Congress (ANC) prides itself in being a "big-tent" organisation that represents the key characteristics and aspirations of the broadest possible section of society. Consequently, its gauge for the selection of leaders is that they should represent a balanced slate something akin to a full spectrum of interest groups. The result of elections yesterday moves the organisation forward in an important way but it comes at a cost. Most significantly, but also unsurprisingly, President Jacob Zuma maintains his position as head of the party. The only real consequence of this vote is its emphatic nature; the president won with 75% of delegates supporting his candidature. This compares to the roughly two-thirds of the delegate body who voted for him at the ANCs previous conference, at Polokwane. Clearly, although many in society are critical of Mr Zumas leadership and his ethics, his deference to the wishes of the party has resonated with party delegates. Society will have its own judgment of the president, but in terms of the partys criteria, it has become obvious Mr Zuma has a notable blind spot: the urban middle class. He simply does not appeal to this grouping. His traditionalism runs counter to increasing

aspirations of the urban middle class, and the Democratic Alliance has made startling inroads into this group. The ANC is clearly hoping the election of trade unionist-turned-businessman Cyril Ramaphosa will help fill this gap. He brings with him the hopes of another constituency business. The appeals of business leaders before the conference underlined a sense that business has had since the start of the Zuma administration: that their concerns were not only ignored but also fundamentally misunderstood. Mr Ramaphosa is certainly not a representative of business in general; he has recently become a businessman, but he spent most of his life as a union organiser. But business will certainly feel less of a pariah grouping with Mr Ramaphosa, technically one of their own, formally present on the highest rungs of the organisation. Whether he ends up being an effective member of the executive, or ends up simply a placeholder, remains to be seen, but he undoubtedly brings a huge reputation and status to the executive. Perhaps more pertinent, Mr Ramaphosas presence underlines the importance of the National Development Plan, particularly since he is Planning Minister Trevor Manuels deputy on the National Planning Commission. The plan constitutes the most detailed attempt to grapple with the problems in SAs society. Mr Manuels decision to stand aside from election to the national executive committee means the baton has been handed to Mr Ramaphosa, and that may well be formalised in the near future. The plan received a ringing endorsement from Mr Zuma at the conference, which suggests Mr Ramaphosa intends to build it into policy more directly. The election does, however, come with costs. Since it was fought on a slate basis, and since Mr Zumas slate has won so comprehensively, his control over the party is now emphasised. This is particularly noticeable since his old friend from KwaZuluNatal, Zweli Mkhize, will now take over the partys finances, and his former chief operating officer, Jessie Duarte, becomes deputy secretary-general. Whether that concentration of power is a good thing remains to be seen. Perhaps one of the larger problems for the party, illustrated by at least the election of the top six posts, is the lack of a generational mix. As Business Day columnist and Eyewitness News reporter Stephen Grootes points out, none of the top six is younger than 55, despite the rallying call of Zuma opponents. For the ANC Youth League, the result is a setback, and for its charismatic former leader, Julius Malema, the result is particularly dire. Overall, however, the party will feel its apex is stronger and more united. That strengthened position now needs to be translated into action or else it will mean little.

19 December 2012 Business Day Page 2 Carol Paton and Paul Vecchiatto Ramaphosas rise could bring conflicts of interest

NOW that Cyril Ramaphosa is both the second-most powerful politician and secondwealthiest black man in South Africa it can be expected that soon he will face a situation where these two roles come into conflict. However, as an African National Congress (ANC) official who is not a public representative or a member of the executive within the government, there are no mechanisms through which these conflicts could be managed. ANC officials are not required to declare their business interests to the party, either publicly or privately. But should Mr Ramaphosa be asked to serve in the government, he would have to abide by both Parliaments disclosure requirements and the executive code of ethics. The past year has seen a dramatic escalation of Mr Ramaphosas wealth. From last year to this year his worth rose 39% to R3.1bn. This is according to the Sunday Times Rich List, which measures wealth on the basis of an individuals holdings in listed companies. A glance at the holdings of Shanduka, in which the Ramaphosa Family Trust owns 30%, reveals a large and diverse range of interests across almost every sector. In the financial sector, these include holdings of 1.2% in Standard Bank, where Mr Ramaphosa is also a director, 7.8% in Alexander Forbes and 1.5% in the Liberty Group. Shanduka also owns 0.54% of industrial holding company Bidvest, with varied interests including vehicle dealerships. In the telecoms sector, Shanduka has interests in both South Africa and Nigeria, the fastest growing mobile communications market in the world. The interests include 0.45% of MTN SA and about 5% of MTN Nigeria. It also has a 32.7% interest in a cellphone tower building operation in Nigeria Helios Towers and 12.5% in Seacom, which constructs undersea cables. The MTN Nigeria deal, concluded last month, had the markets buzzing partly out of envy, but also over concerns about several conflicts of interest. MTN Nigeria is the most profitable part of MTN on the continent. The highlighted conflicts of interest include that Mr Ramaphosa is chairman of MTN Group, the majority owner of the Nigerian operation. But the company has said Mr Ramaphosa excluded himself from all the discussions relating to Shandukas purchase of shares in MTN Nigeria. Shanduka has interests in mining, including 50% of Incwala Resources. Further, it is an empowerment partner to platinum miner Lonmin, in which it holds 5%, owns a stake in Pan African Resources and has a coal mining subsidiary Shanduka Coal. Its other interests are in MacSteel Services Centres and it owns a 42% stake in paper and packaging company Mondi Shanduka. In the energy sector, it has investments in a Mozambican gas-power plant and in both wind and solar energy generation in South Africa. Most well known to the public is Mr Ramaphosas 70% holding in McDonalds SA and 70% in one of three bottling plants for Coca-Cola.

With such a vast network of investments, it is inevitable that Mr Ramaphosa will find himself running into conflicts of interest. After Mr Ramaphosa was elected, Congress of South African Trade Unions general secretary Zwelinzima Vavi on Tuesday tweeted that the federation had strict disclosure rules. "If an elected leader has business interests, he must place them in a trust and not be active while in business. "Family members must also not do business with the institution you lead."

19 December 2012 Business Day Page 1 Sam Mkokeli and Natasha Marrian Boost for business in Ramaphosa comeback PRESIDENT Jacob Zuma retained the African National Congress (ANC) presidency in a landslide victory on Tuesday that confirmed his popularity in the ruling party. The results of the ANCs leadership elections were widely welcomed on Tuesday, with the business sector and the financial markets rejoicing at the election of businessman Cyril Ramaphosa as Mr Zumas deputy. The rand extended gains to a more than two-month high, firming to R8.52/$ after the announcement of the election results. Analysts and business leaders said the choice of the billionaire businessman and former mining union leader as deputy president would make the ANC a more business-friendly party. Mr Ramaphosa received the most votes among the partys top six leadership positions, with 3,018 delegates supporting him. Other businessmen vying for positions did not do as well Mathews Phosa received 470 votes, while Tokyo Sexwale got 463. Mr Zuma got 2,983 votes, while his only challenger, Deputy President Kgalema Motlanthe, had 991 after 3,977 delegates voted overnight at the ANCs national conference in Mangaung. While Mr Zuma struck a conciliatory tone in a speech shortly after the announcement of the results, Mr Motlanthe turned down nomination to serve as an additional member of the partys national executive committee, suggesting that he no longer has the appetite to serve in the ANCs top structures. Candidates who do not win positions in the ANCs "top six" are automatically nominated for additional membership of the national executive committee. ANC secretary-general Gwede Mantashe retained his position, trumping Sports and Recreation Minister Fikile Mbalula with 3,058 votes to 901.

Deputy secretary-general Jessie Duarte was elected unopposed. Chairwoman Baleka Mbete was re-elected, obtaining 3,010 votes. She was challenged by former ANC deputy secretary-general Thandi Modise, who received only 939 votes. KwaZulu-Natal Premier Zweli Mkhize comfortably trounced Gauteng ANC chairman Paul Mashatile for the position of treasurer-general, with 2,988 votes to Mr Mashatiles 961. Mr Zuma appealed for unity following the contested leadership election, asking delegates to treat each other with respect, irrespective of who they voted for. "We agreed for members to have preferences. That is their democratic right.... Dont just pay lip service to that, you must put it into practice," he said. "We agreed that contestation is part of our democratic culture. Once elections take place and ANC branches have spoken ... the decision is the decision of all of us," Mr Zuma said. "We begin here to advance the fundamental principle of the ANC, the unity of the ANC. You elected comrades to lead this organisation it must be a united organisation." Mr Motlanthe also addressed the conference on Tuesday, just before it was announced that he had turned down nomination to serve as a leader of the party. He called on delegates to respect the ANCs standing as an "epitome of democracy". "We must continue to sharpen our ability to hear the cries of our people, attending to the economic challenges, unemployment, poverty and inequality," he said. "Our leaders were elected by the entire membership of the ANC, and so we continue, we should keep that in mind." He reminded the delegates that they worked "under the watch and guidance of a capable leadership we have just elected". Black Business Council spokesman Sandile Zungu said on Tuesday it was "very happy" with Mr Zumas re-election, as it would ensure continuity in the governments direction. He also welcomed Mr Ramaphosas election, saying he understood the nuances of leadership and the needs of a thriving business sector. Mr Ramaphosa, who is also the deputy chairman of the Planning Commission, is expected to become South Africas deputy president after the national elections in 2014. Mr Motlanthe is likely to remain deputy president until the elections.

19 December 2012 Business Day Page 1 Sam Mkokeli ANC members must learn economics Manuel

THE African National Congresss (ANCs) national conference must look for ways to implement aspects of the National Development Plan immediately, says Planning Minister Trevor Manuel. It appears that the plan will be a big focus of the party over the next five years. It was a central theme of President Jacob Zumas speech when he opened the partys Mangaung conference on Sunday. Mr Manuel last week turned down nominations to serve on the ANCs national executive committee, after being a member of the partys most senior leadership structure for two decades. He presented the National Development Plan a broad strategy to reduce unemployment, poverty and inequality and drive economic growth to delegates on Tuesday evening. Mr Manuel said his presentation received an "overwhelming response" from the conference delegates. He was concerned that, because of time constraints, the conference may not have enough time to discuss policy before it ends on Thursday. Another concern was that the delegates approach to economic policy discussions tended to focus on "big ticket" issues, instead of basic ideas about job creation. Mr Manuel said economic policy discussions in the ANC tended to be "sucked" into the wrong direction, because of a wrong orientation. "We beat each other up over the wrong things," he said. He added that a lack of understanding of economic fundamentals sidetracked important debates. The party needed a broader approach, and conference delegates with appropriate skills, who could examine all the important factors when discussing policies. "Its like maskandi music. If you only listen to the bass, theres no music. You need the guitar, the voices in there," Mr Manuel said. "If you want economic policy, you cant just listen to the bass thats all that macroeconomic policy is you cant do without it, but you need the fine sounds that come from a maskandi guitar and your voices to produce the sound." Mr Manuel said the ANC needed to encourage its members to learn the basic fundamentals of economics to improve the economic debate. The party often discussed economic policy without considering the world outside its politics which included international ratings agencies and fund managers. Further, the ANC did not consider factors like a low savings ratio which hampered ambitious development plans. Mr Manuel said conference delegates should not wait for the government to implement the development plan, but look for ways to drive its application in their branches and communities. Welcoming the election of the top six leadership of the ANC on Tuesday, Business Unity SA (Busa) said the new leaders came on board at a time when the country was faced with critical challenges. These included declining confidence of the investment community, reflected by recent sovereign rating downgrades of South Africa.

Busa was also concerned about escalating levels of corruption and socioeconomic challenges such as increasing levels of inequality, joblessness and poverty. "The time is now to get down to work, rebuild and reclaim lost ground as a matter of urgency," the organisation said. "South Africa faces complex challenges and the mix of the new top six gives us confidence for the implementation of the National Development Plan, as well as the leadership needed in forging the much-needed country beneficial working relationships between all key social partners." Meanwhile, there is speculation that Mr Manuel will quit the Cabinet next year. While not giving anything away, he said: "A ministerial post is not meant to be for this length of time." He has been tipped as a contender for a top position at one of the multilateral finance institutions such as the World Bank, or the Brics bank which is planned to be launched in South Africa next year. Mr Manuel said he had not yet applied his mind about where he would go should he leave the government.

19 December 2012 The Times Page 15 S'Thembiso Msomi JZ needs rivals close MINUTES after Deputy President Kgalema Motlanthe lost dismally to President Jacob Zuma in the ANC leadership race yesterday, a seasoned party activist had this to say to me: "Maybe Mkhuluwa [a term ANC members use to show their respect for a man they regard as an older brother] should have waited for 2017. I call him 'Hola 7' because he seems to make history only in the years that end with [a] seven." He pointed out that Motlanthe was imprisoned on Robben Island for his underground ANC activities in 1977. He came out of prison in 1987. In 1997, at the ANC's Mafikeng national conference, Motlanthe was elected secretary-general. Exactly 10 years later, in 2007, delegates to the party's Polokwane national conference elected him deputy president. "So I think he would have stood a greater chance of winning the ANC presidency in 2017 than now. All he needed to do was wait," said the activist, who has spent the past few months campaigning vigorously for Zuma. Obviously, Motlanthe's defeat at the hands of his boss in the government cannot be explained away by the deputy president's decision to contest in a year that does not end with a seven - his allegedly lucky number.

But does this crushing defeat mean an end to Motlanthe's political career? Is he about to lose his job as the country's deputy president? To the first question I would say not necessarily. It depends on what Motlanthe does between now and the next ANC national conference in 2017. Lest we forget, Gwede Mantashe, the current ANC secretary-general, left the 2002 ANC national conference in Stellenbosch a humiliated man after failing to make it onto the list of additional national executive members. Five years later, he was elected secretary-general and yesterday he was returned to office with 3058 votes - more than Zuma and his new ANC deputy, Cyril Ramaphosa, garnered. So it is not a given that Motlanthe stands no chance at the next conference, especially as Zuma will not be running for office in 2017. But it is the second question that seems to be exercising the minds of most people: Will Motlanthe still be the country's deputy president when Zuma delivers his next state of the nation speech? As a man who seemed reluctant to take up the post when Zuma became the country's president in 2009, it would not be a complete surprise if he decided to resign. But if his long-term ambition is still to become ANC president, resignation could backfire on him - the party's rank-and-file viewing him as a grumpy leader who could not stomach the decision of the majority. His continued stay in the government is also dependent on what Zuma plans to do. After such a resounding victory, it is tempting for a politician to start purging those who opposed him during the run up to an election. So it is highly probable that Zuma will remove Motlanthe, Arts and Culture Minister Paul Mashatile, Human Settlements Minister Tokyo Sexwale and Sports Minister Fikile Mbalula - all of whom were opposed to his second-term bid - from his cabinet. But if his remarks soon after his re-election yesterday are anything to go by, Zuma is unlikely to do so. Speaking to delegates - who continued to sing anti-Motlanthe songs long after the election had been concluded - Zuma seemed keen not to repeat the Polokwane mistake, when the triumphalism of his supporters caused a split in the ANC. With the next general elections less than 24 months away, and the ANC still nursing the wounds left by the 2008 breakaway by some of its members, who went on to form COPE, Zuma is aware that his party cannot afford another split. He needs Mashatile, who is also ANC chairman in Gauteng, to fight off the DA's bid to take over the province in 2014.

And, despite their differences, Zuma would be the first to acknowledge Mbalula's amazing ability to rally the young behind the ANC during elections. In 2009, Sexwale's private jet came in handy as Zuma flew around the country campaigning. Well, now he has the presidential plane and wealthy Ramaphosa as his deputy. Zuma's call for unity and reconciliation suggested that he was not about to do something that would cause further divisions in the already strife-torn political party. But, then again, in September 2008 Zuma sounded very conciliatory towards President Thabo Mbeki a mere five days before engineering the latter's spectacular recalling from office. However, it has never been Zuma's style to completely kick out his political rivals. You really have to test his patience in the same way as expelled ANC Youth League boss Julius Malema to have Zuma remove you for political reasons. He seems to enjoy keeping his rivals close enough for him to watch them squirm. As Motlanthe prepares for his holiday break in the Seychelles after the Mangaung conference, he will be aware that life is about to become very uncomfortable for him and ministers Mashatile, Sexwale and Mbalula. They now serve in the cabinet of a government completely at Zuma's mercy.

19 December 2012 The Times Page 5 Olebogeng Molatlhwa Motlanthe must retain his position: delegates

DEPUTY president Kgalema Motlanthe's position in the government hangs in the balance as party members debate whether to elect him back onto the ANC's national executive committee. Minutes after the ANC elective conference yesterday announced that Motlanthe had lost to incumbent President Jacob Zuma for the top post, delegates expressed mixed feelings about Motlanthe's future. Delegates interviewed by The Times from Eastern Cape, North West, KwaZuluNatal, Limpopo and Gauteng said Motlanthe should be allowed to continue with his job as country's deputy president. The delegates cautioned against the immediate removal of Motlanthe in favour of newly elected ANC deputy president Cyril Ramaphosa.

They argued that the move would be viewed as a sign of triumphalism and would further divide the party. Gauteng delegate Thulani Mphithekezi said those calling for Motlanthe's head should remember the resolutions taken at the party's 2002 conference in Stellenbosch in the Western Cape. "The resolution at Stellenbosch was that the president of the ANC should then be [elected] the state president. That [resolution] does not have implications for the deputy president," he said. KwaZulu-Natal delegate and Ilembe District Municipality mayor Sibusiso Mdabe said Motlanthe "has a role to play in the government". He blamed Motlanthe's defeat on the forces of change group, that led his election campaign, saying they were unable to sell "whatever position they had to delegates". "We don't want divisions. [Cyril Ramaphosa] will eventually become deputy president of the country [in 2014], so comrades must exercise patience," said Mpho Madubje of the Waterberg region in Limpopo. "What we want is unity." "It would be unbecoming [to remove Motlanthe from his position] because this outcome does not stop his term," Mandla Mapongwana of the Eastern Cape. The ANC is yet to pronounce on Motlanthe's fate.

19 December 2012 The Times Page 5 Karl Gernetzky and Setumo Stone Party's pinnacle of power THE ANC yesterday elected its new leaders in Mangaung. JACOB ZUMA Jacob Zuma, 70, starts his second term as ANC president after 53 years of active politics in the organisation. Zuma was first elected to the ANC national executive committee in 1977 and became deputy secretary-general in 1991, at the time in charge of underground structures and intelligence. In December 1994 - and in 1996 - he was elected as national and KwaZulu-Natal chairman of the ANC. He became ANC deputy president in 1997, but was dismissed in 2005 by then president Thabo Mbeki as the country's deputy president amid mounting public

scrutiny following allegations of corruption. In 2007, at the Polokwane conference, Zuma unseated Mbeki. Zuma was found not guilty in a court case stemming from rape allegations. Charges of corruption were later dropped. CYRIL RAMAPHOSA Cyril Ramaphosa, 60, takes the position of deputy president with a degree of uncertainty over what role he will play after years away from the political spotlight and how he will continue managing his business interests. An ANC national executive committee member since 1991, he served as secretarygeneral from 1991 to 1997, and was involved in negotiating the transition from apartheid. After unsuccessfully contesting the party leadership in 1997 against Thabo Mbeki, Ramaphosa founded a multibillion-rand business empire. After years of avoiding the limelight, he had given no public indication he would accept a high position at Mangaung, despite enjoying the majority of nominations from ANC leagues and provinces. GWEDE MANTASHE Gwede Mantashe, 67, begins his second term as secretary-general amid a continued battle for unity in the ANC, fighting the effects of factionalism and ill-discipline since the contentious 2007 Polokwane elective conference. Mantashe held leadership positions in labour movements, including the NUM, for three decades. After a failed attempt to be elected to the ANC's national executive committee in 2002, Mantashe defeated Mosiuoa Lekota to gain the position of secretary-general at the ANC's 2007 conference, following a strong push from Cosatu to unseat Mbeki. BALEKA MBETE Baleka Mbete, 63, has served in the ANC for three and a half decades, including in parliament and among the party's women. She has been a member of the national executive since 1994. Mbete was speaker of the National Assembly from 2004 to 2008. She had been the deputy speaker for eight years. At the Polokwane conference in 2007, Mbete pipped ANC intellectual Joel Netshitenzhe - who had been nominated by those supporting Mbeki - to the post to become national chairperson. In September 2008 - following the decision by the national executive committee to recall Mbeki - Mbete was catapulted to the country's second-highest office, serving as deputy to then interim president Kgalema Motlanthe. ZWELI MKHIZE

Zweli Mkhize, 56, KwaZulu-Natal premier and ANC provincial chairman, beat his counterpart in Gauteng, Paul Mashatile, to the position of treasurer-general. His rise to the top six came under the growing membership of the ANC in KwaZuluNatal - the party's biggest province in terms of membership. It is understood that some people in KwaZulu-Natal wanted Mkhize to focus on national politics so that new faces could take charge of government in the province. JESSIE DUARTE Jessie Duarte, 59, was unopposed for the position of deputy secretary-general. The former ANC spokeswoman is widely seen in media circles as abrasive. Questions have been raised whether Duarte is likely to have a cordial working relationship with Mantashe, who is seen as equally aggressive. In 2010, Duarte resigned as chief operations officer in Zuma's office amid allegations of a territorial battle with some of the senior staff in the Presidency.

19 December 2012 The Times Page 4 Graeme Hosken and Thando Mgaga Blueprints for 'death plot' HUNDREDS of documents on encrypted laptops of an alleged South African rightwing extremist group are the key to a mass assassination plot against the ANC's top executive, including President Jacob Zuma. In three simultaneous raids carried out on farms and smallholdings in Gauteng, Northern Cape and Limpopo yesterday, Hawks officers seized laptops and files said to contain detailed plans and photographs outlining the alleged assassination plot in Mangaung. The killings were allegedly to have happened on Monday, the second day of the ANC's elective conference. The documents are said to describe the planned robbery of gun shops, military bases and police stations. They detail how the suspects would allegedly use mortars, sniper rifles, machine guns and armoured vehicles in the assault, said to have targeted Zuma, the ANCs newly elected executive and conference delegates. Yesterday's raids came after similar raids over the weekend in which police arrested Mark Trollip, 48; John Martin Keevy, 47; Johan Hendrik Prinsloo, 49, and Hein Boonzaaier, 51. The four appeared under heavy police guard in the Bloemfontein Magistrate's Court yesterday on charges of high treason and terrorism. As they appeared, police yesterday followed up on information on suspected weapons caches thought to contain hand grenades and mortars, but no caches were found.

Prinsloo and Boonzaaier are listed as executive members of the Federale Vryheidsparty, registered as a political party with the Independent Electoral Commission earlier this year. The investigation, according to police sources, is looking at the suspects' alleged links to other extremist groups. A police source said "huge" information was gained from raids in Prieska, Modimolle and Springs, where the laptops were seized. The source said officers discovered a suspected paramilitary training camp in Modimolle - where camouflage uniforms, military insignia and pellet guns used to train recruits were seized. The plans, he said, showed how many people were needed for the attack, where weapons would be obtained and how police and soldiers responding to the assault would be fought off. "Information shows the suspects - who are businessmen and farmers - have support from several quarters. Investigations are looking at who is supporting them and what kind of support they had." Prosecutor Shaun Abrahams alleged the four, who were remanded in custody, and other right-wing extremists had worked on their "deadly" plan since January. The case was postponed to January 8.

19 December 2012 The Times Page 1 Staff Unionist-turned-tycoon is now SA's second most powerful man CYRIL Ramaphosa has, in a whirlwind of 24 hours, gone from being one of Africa's richest men to one of South Africa's most politically powerful citizens after being elected yesterday as deputy president of the ANC. CYRIL Ramaphosa has, in a whirlwind of 24 hours, gone from being one of Africa's richest men to one of South Africa's most politically powerful citizens after being elected yesterday as deputy president of the ANC. Last month, Forbes magazine estimated Rama-phosa's wealth at $675-million and put him at number 21 of 40 of the continent's wealthiest individuals. Forbes ascribed his wealth to his Shanduka company's investments in mining company Assore, trading company Bidvest, Standard Bank, and a joint venture with Coca-Cola called Coca-Cola Shanduka Beverages, among others. Ramaphosa, once at the helm of the National Union of Mineworkers, has of late been in the media spotlight, but not always for positive reasons. In February, he, as chairman of the ANC's disciplinary committee of appeals, upheld a 2011 ruling against the ANC Youth League leader Julius Malema. In April, he

earned the scorn of many when it became known that he made a bid for a buffalo that was later sold for R18-million. Five months later, he admitted he had erred in bidding, saying he had been "blindsighted". In October, it emerged through a series of e-mails that he, as a shareholder in Lonmin, had urged the government, ANC and police to intervene and stop an illegal strike at the miner's Marikana operations. This happened shortlybefore police opened fire on the strikers, killing 34 of them.

19 December 2012 The Times Page 1 Moipone Malefane, George Matlala and Thabo Mokone Out in the cold

DIVISIONS threatened to tear the ANC apart yesterday as supporters of newly reelected party president Jacob Zuma demanded that he fire Kgalema Motlanthe as South Africa's deputy president. Motlanthe - who has for 15 years served in key positions in the ANC - again surprised the Mangaung conference yesterday by turning down nomination to the party's national executive committee. The day before he chose to contest only the party presidency, though the odds were heavily against him. Last night, in an unscheduled speech to conference delegates, Motlanthe said: "I wish you strength and wisdom in uniting the ANC and its leagues, the alliance and, most important, all South Africans." His spokesman, Thabo Masebe, said reports that Motlanthe was leaving government immediately should be treated as rumours. "I'm not aware of this, he hasn't said anything to me. Treat them [tweets] as rumours. For now he remains the deputy president of the republic." ANC spokesman Jackson Mthembu said the party had not been aware of Motlanthe's plan to decline nomination to the NEC. "It was between him and the electoral commission." The reasons for Motlanthe turning his back on the ANC leadership - of which he has been both deputy president and secretary-general - were not clear last night. But a source said on Monday that Motlanthe was not prepared to serve on ANC structures in which the party's constitution was being "misinterpreted". His decision is likely to harden the stance of Zuma's supporters.

"These people wanted to collapse the ANC; they went around saying [that] under Zuma the economy has collapsed," a Zuma lobbyist said. Other leaders who might be axed include Human Settlements Minister Tokyo Sexwale, North West Premier Thandi Modise, Arts and Culture Minister Paul Mashatile and Sports Minister Fikile Mbalula. Less than an hour after his re-election as ANC president was announced, Zuma appealed for unity. "Once the ANC has spoken we have to look at how we treat one another . It's in the manner in which we interact [and] conduct ourselves [that] we begin to address one of the fundamental principles of the ANC, the unity of the ANC." Those who accepted nomination to the NEC included Frank Chikane, former director-general in President Thabo Mbeki's office, and Winnie Madikizela-Mandela. Members of the ANC-led alliance who accepted nomination include Cosatu president Sdumo Dlamini and Communist Party leaders Zokwana Senzeni, Thulas Nxexi, Blade Nzimande and Buti Manamela. The losers in the top six battle - including Sexwale, Mathews Phosa, Modise and Mbalula - are automatically considered nominees for the NEC unless they decline. - Additional reporting by BDlive and Sapa