The public works department will spend about R750 000 to rent a house for Gauteng police commissioner Mzwandile Petros, The Star reported on Tuesday.
"Last month, the department hired Siyakula Logistics to provide a house at a cost of R31 042 a month, or R745 008 for the two-year contract," the newspaper wrote.
The award was listed in the Tender Bulletin on Friday and the cost was confirmed by department officials.
The state provided Petros with housing because he did not apply for the position, but was transferred from his previous position as Western Cape provincial commissioner.
He was appointed in Gauteng September of last year.
The Star reported that the housing tender, issued in March, called for a three-bedroom, two-bathroom house in or around Rosebank, Melrose, Oaklands, Dunkeld, Killarney, Morningside, Houghton, Illovo or Saxonwold.
It also called for the house to have electronic access control and a "solid perimeter wall with a minimum height of two metres" with an electric fence on top.
The acquisition of the house followed a report by the Gauteng department of infrastructure development, in which revealed it had 780 state-owned houses in the province.
One of these houses, in Bryanston, which was previously occupied by Mzwandile Kibi, deputy director-general of the department of infrastructure development, "appears to have all the features to accommodate Petros," The Star wrote.
The provincial government owned 826 state houses across six regions, but only 46 tenants had signed lease agreements.
In February, infrastructure development MEC Bheki Nkosi promised to act against those who were illegally occupying government houses.
"He issued a March deadline, but apparently has yet to act on his promise."
Prime example of corruption...why do the department have to hire a shipping logistics company to provide a house? I wonder how much of the rent is going into the back pocket mr Siyakula?!
anc -stop your wasteful ways. This is not a senior position. Any state house will do. This is why the anc is losing the vote . You are rip off artists with zero good intentions of doing a job. Your housing department should never have a mandate to go private ,especially when it is not a seniot job. WHY IS HE GETTING A HOUSE ANYWAY . BUY HIS OWN. I HOPE HE GETS TAXED ON THE FULL AMOUNT WHICH ADDS R372000 to his ridiculous package.
What makes this prick so special, he is a PUBLIC SERVANT and should be treated as such. Again we see the excess of the ANC and the waste of taxpayers money that should be used for uplifting the poor and service the country. They have hundreds of houses that would surfice. Why the additional security? if he did his job correctly then he would be a target, but for now he is the puppet and has no enemies!
Not really amased by this. Government issues mansions for government officials while poverty sits at the bottom of their list. Why he need the electric fencing etc. most probably comes down to the fact that he knows the the comunity and tax payers are being hard done to accomodate him. Pathetic! And everyone else in the country is expected to buy or rent their house with monthly income.
When is this going to end? When the money dries up.
This is the free housing everyone voted for.......
Keep voting ANC people...you will keep voting for your children to be uneducated, for your health system to continue in the downward spiral it's already in and you'll keep living in shacks and having lower class income through blue collar jobs!!!
Exactly why does this house have to be in so-called elite areas? Is Millionaires row in Soweto not good enough?
Did you know that commercial banks create money out of nothing, and lend it to you at compound interest, and moreover insist that you pledge real assets for such loans? Let me repeat - banks create money out of nothing. So why not have our own municipal bank which creates money out of nothing and which will enable lower property rates, low interest home loans and low interest student loans for the benefit of all our citizens?
The myth, which private bankers maintain, is that they accept deposits and then lend these deposits on to borrowers, earning the difference between the higher and lower rates of interest. This is not the case. Banks lend on those deposits, which can be withdrawn by new borrowers either by cheque or electronically. In terms of the latest Basel III agreement, banks are only required to have share capital and reserves of 12%. The other 88% of loans and advances represent money created out of nothing. This is known as the fractional reserve system.
How we will benefit: (i) The City of Cape Town currently has outstanding borrowings and bonds of R5,5 billion. A municipal bank would enable the redemption of these loans and the funding of all infrastructure programmes at zero interest. As a result of the municipality not having to pay interest and the bank’s profits, ratepayers will enjoy a permanent reduction of at least 15% in annual property rates, and future increases will be lower than the official rate of inflation.
(ii) A ratepayer who deposits for example R60 000 for a fixed period of 5 years, will receive a competitive interest rate of say 6% per annum and be entitled to a home loan of R500 000 at a fixed rate of 2% p.a. Remember that the municipal bank will create this money out of nothing. It will pay R3 600 p.a. on the fixed deposit and receive R10 000 p.a. on the home loan. Currently, Capetonians who have home loans spend 52% of their income on interest and repayment of capital per year. A drop in the home loan rate from 9% to 2% p.a. would result in a substantial boost to take-home pay and a rise in overall levels of prosperity.
(iii) In order to assist all our young people in obtaining the best education possible, student loans for tertiary education will be available at a nominal rate of 2% p.a. Applicants will have to be South African citizens permanently resident in the city for at least 5 years, with those born in the city receiving preference.
A municipal bank will not only help to eradicate poverty, it will make Cape Town one of the most prosperous cities in the world. Are there any precedents? One may look no further than the state bank of North Dakota in the USA, which was founded in 1919. North Dakota is the wealthiest state in the USA, having full employment and is one of only two states reflecting a budget surplus.
Visit http://www.banknd.nd.gov/ STEPHEN GOODSON is qualified in all aspects of banking and currently serves on the board of the South African Reserve Bank, where he has been a director for the past 8 years.
The largest tea estate in the southern hemisphere, Magwa Tea outside Lusikisiki in the Eastern Cape, faces ruin after being looted and abandoned by its workers earlier this year.
The 1803 hectare farm had a turnover of R65 million a season and provided jobs and career training for 1200 permanent and 2300 seasonal workers.
In February, the farm was shut down when workers, the highest paid in the tea industry, went on the rampage after management refused their demand for a 104% increase.
By May, tea plants usually kept pruned to waist height, for ease of picking were shoulder high and useless.
The plants stretch as far as the eye can see on both sides of the dirt road that winds across the hills from Lusikisiki to Mbotjie on the Wild Coast, in Transkei.
“The crop for the year has been lost,” says Pierre Leppan, a director at the Eastern Cape Development Corporation (ECDC) which has managed the farm for the past seven years.
“The names of six managers are on a hit list and the ECDC is unable to guarantee their safety. They are having to run the farm on their cellphones.”
The farm had started thriving in recent years, after decades of plundering, corruption and mismanagement.
A Magwa manager, who declined to be named for fear of his job and his safety, says the trouble started last year, soon after a Farm Workers’ Union (Fawu) official was redeployed to Cape Town and replaced by two others.
The original union official had understood Magwa, its history, and what was and was not viable, but his successors had not.
“The workers and the management had a harmonious relationship until then,” the manager says.
“The two new officials were confrontational from the start. They misunderstood how Magwa worked. They thought, for example, that the management were the owners of the farm.”
The manager said the officials postponed a Magwa workers’ council election to allow seasonal workers to “boot out” most of the permanent workers.
Last year, the new council demanded a 104% wage increase, even though Fawu had negotiated a 7% nationwide increase for agricultural workers.
Magwa management told the council it was not authorised to approve the increase, but that the decision was up to the ECDC board and the department of agriculture.
Incensed, the workers cornered managers in their office and assaulted them.
A violent strike, which was later declared illegal, went on for three months.
“Throughout the strike, the managers had shots fired at them,” the manager says. “Vehicles were stolen and vandalised. Houses were looted and burned.”
The strike ended when the department of agriculture offered the Magwa employees a financial package to return to work.
Production was soon back on line, but the mood at Magwa remained tense.
“Workers were not following management’s instructions, which led to the suspension of programmes around the farm,” says the manager.
Magwa security manager Daan Schoeman recalls the tension when he returned to work in July.
“When I went back in July, I could feel that something wasn’t lekker [right],” he says.
In March, workers went on the rampage again. “They destroyed everything in sight. They stole what they could. Fridges, freezers, ovens and vehicles — everything,” says Schoeman.
The police were called and rubber bullets and tear-gas were fired.
He received a desperate call for help from a manager.
“He said ’Help Daan, they’re killing me’, but I couldn’t do anything. It was impossible to get in.
“They chopped him up with pangas, but he made it out [alive]. One of the security guards, though, was shot dead.
“It was terrible; that day, I started becoming an old man,” he says.
Permanent workers, who lived in houses on the 13 settlements on the farm and refused to take part in the strike, were chased off their properties.
Police spokesman Captain Mduduzi Godlwana confirmed that one person was arrested for murdering the security guard and another 48 for public violence. They are to appear in court soon, he says.
Fawu official Tonga Mbaliese blames the management for the strike.
He says the initial dispute was about the imposition of a 253kg a day tea plucking quota, up from between 180kg and 200kg.
“The target was set unilaterally without employees agreeing with it. The workers are not the cause of the problems on Magwa. The problems are caused by the style of management,” Mbaliese says.
“There is no transparency at Magwa. Management can’t cry foul and blame everyone when they are the ones who are not working.”
Surrounding communities, politicians and tribal leaders have all laid claim to the land in past decades.
The plantation is in the Pondoland magisterial district of Lusikisiki, which falls under the Qawukeni Tribal Authority.
In the 19th century, the land was used to graze cattle, according to University of the Western Cape land and agrarian studies programme lecturer Thembela Kepe.
In the 1960s, Johan Mills, the then secretary to the Chief Minister of Transkei, suggested to Paramount Chief Botha Sigcawu that Pondoland needed a commercial venture to provide a local alternative to migrant labour to the sugar cane fields of Natal.
“When people rejected the notion of tea being good for the Mpondos, Sigcawu is said to have intimidated the residents, claiming that the land belonged to his father anyway and implying he could force them to move,” Kepe writes.
The residents retaliated by burning down Sigcawu’s supporters’ houses. Several deaths were reported, including that of Sigcawu’s brother, Chief Vukuyibambe Sigcawu.
Even after the plantation was established, it was beset by problems. Its assets were regularly plundered through corruption that continued into the 1990s.
Another problem was a demand by Fawu that workers receive higher wages at agricultural schemes.
It was thought that state-run enterprises should set a good example in labour practices. As a result, Magwa workers became some of the highest paid tea estate workers in southern Africa.
The high wages and poor profitability plunged the farm into financial trouble.
A plan to lay off workers sparked violence in mid-2003 when 15 offices and a boardroom were burnt down.
In 2004, the ECDC, which was brought in as a custodian of the land, appointed a team of specialist tea farm managers to make the farm viable.
It seemed an impossible task.
Magwa was producing just 1.2 million kilogrammes of “made” tea a season. Exports were at a minimum and the cost of production was “extremely high” at R25 a kilogramme.
However, by 2007, Magwa was achieving its highest-ever production figures, with 2.7 million tonnes of “made” tea a season.
“The department of agriculture would give us R15 million a year, and we were giving them R65m back,” says the senior employee. “The tea was sold in advance on contract, making in roads into huge markets such as China, Pakistan and the [United Kingdom].”
This success was despite the infrequent and late arrival of government funds and a monthly wage bill of R3.5m.
Before operations at Magwa shut down, workers were earning five times more than those in Malawi, the farm’s general manager says.
They were also earning bonuses and being taken out of the fields and mentored.
“We were taking from the bottom and building up skills so that they could take over the running of the farm one day,” says the manager.
“Tea industry skills are in enormous demand around the world, so many of the Magwa workers were poached, but this was fine. We would train more. We became something of a university for the tea industry.”
Now Magwa’s future remains uncertain.
Eastern Cape Rural Development spokesman Ayabulela Ngoqo says a new Magwa board will be appointed on June 30, and will be tasked with finding a solution to the problems.
“The board will be given the prerogative to deal with all administrative matters affecting operations,” he says.
The history of the tea estate follows a pattern now becoming apparent: when the new government came to power in 1994, they moved to rid many old “homeland” structures of personnel from the old regime. Affirmative action candidates and political comrades replaced what was an efficient band of people, whatever their political affiliations. Thus the rot set in. The plantation was already in trouble in 1997 and was liquidated. The state pumped in R10,6 million to get it back on its feet, and in 1998, the workers became co-owners of the estate in a land reform initiative, funded by South Africa’s taxpayers.
In May 2003, a South African agricultural magazine alerted readers to the fact that the Eastern Province MEC for Agriculture Max Mamase was budgeting R20 million for a “turnaround strategy” to salvage what once was a successful tea project.(7) Democratic Alliance agriculture spokesman Athol Trollip declared that the corporation was ailing and “doomed to financial failure”. In July 2003, another press report declared that workers on the estate hadn’t been paid for six months and “years of gross mismanagement” had led to the torching of the Magwa Estate’s offices by thousands of workers.(8) Fifteen offices, a boardroom, computers and financial records succumbed to the flames. “The fate of an entire rural economy is balanced on a knife edge”, said the article. “Workers children have been pulled out of school to plant vegetables as their parents can no longer make ends meet.” The 2 500 ha estate has the potential to produce more than 3,5 million kilograms of good quality tea per year. Last season, output was budgeted at 2,3 million kilograms, but only 955 000 kilograms were produced. To remain viable, the operation needed to produce at least 2,4 million kilograms of tea. It is the only tea estate in South Africa that is not irrigated. In October 2003, the DA’s Athol Trollip issued a press statement declaring that certain creditors had foreclosed on Magwa. One of the creditors had already begun attaching tractors computers and office furniture. The debt dated back to 1998! Trollip said he and DA MP Stuart Farrow had brought the plight of “this magnificent tea estate” to the attention of MEC Max Mamase and the Minister of Agriculture and Land Affairs in September 2002. R20 million was appropriated in April 2003 to effect a turnaround to save the estate. Seven months had passed and no management company had been appointed. “Magwa lies idle as workers are not paid and the estate is now faced with liquidation, a classic case of ‘too little, too late”.(9) If nothing is done, “Magwa will follow the path of other failed parastatals” said Trollip. It later transpired that R15 million was owed to the Land Bank and others, and these debts would have almost swallowed up the R20 million “turnaround” money. Further, Magwa workers had taken management to the Labour Court over disputes arising out of non-payment of salaries.