Thursday, 15 October - DAILY NEWS SUMMARY
Pretoria News (www.pretorianews.co.za) Page 1 – CRUCIAL DAY FOR SA ECONOMY Page 6 – Eskom fuel suppliers contract questioned
The Star (www.iol.co.za)
Page 1 – Court clips Agrizzi’s wings Page 1 – 45 days to hear of girl’s death
Business Day (www.businesslive.co.za) Page 2 – Contraction in retail sales slows down Page 2 – Pushback over bid to give Irba more teeth
Citizen (www.citizen.co.za) Page 4 – Covid matric exam crisis Page 3 – Grooms head to CCMA
CRUCIAL DAY FOR SA ECONOMY
Ramaphosa to address Parliament on the government’s road to recovery plan
Pretoria News
15 Oct 2020
SIYABONGA MKHWANAZI
| African News Agency (ANA)PRESIDENT Cyril Ramaphosa.
ALL EYES will be on President Cyril Ramaphosa today when he tables the much-anticipated economic recovery plan in Parliament, with opposition parties warning it may not be
sustainable.
This comes a day after the government extended the State of Disaster by another month. It was due to end today.
The DA has been calling for the government to end the State of Disaster, saying the economy needed to be revitalised.
The Cabinet met yesterday to finalise the details of the plan. Its tabling has forced Minister of Finance Tito Mboweni to postpone the Medium-term Budget Policy Statement (MTBPS).
Mboweni was due to deliver the budget next Wednesday, but asked Speaker Thandi Modise to reschedule it for the end of the month.
The National Treasury said Mboweni asked for a postponement due to Cabinet decisions.
“The minister has made this request having taken into consideration the complex and unusual circumstances visited upon us by the Covid-19 pandemic, which included the tabling of a supplementary Budget in June.
“The Ministry of Finance and National Treasury have had to adjust the approach and consultation of the Budgetary process.
“The government is determined to maintain a prudent fiscal stance which is in the best interest of the country in the medium- and long-term. The 2020 MTPBS will reflect this position,” the Treasury said.
The DA, Cope and IFP said they want the government to fix the economy, but the plan did not promise results given the growing unemployment rate.
DA interim leader John Steenhuisen said it wants economic reforms to put the country back on its feet. He said this would not be done with the stalling inside the ANC.
“Overall, the plan is unlikely to move the needle on socio-economic well-being unless we see real rapid implementation of the big ticket structural reforms promised, particularly energy reform.
“Our future, and President Ramaphosa’s legacy, is at stake,” said Steenhuisen.
Cope spokesperson Dennis Bloem said Ramaphosa must push for more investments in the country.
“The first thing is to win the confidence of… local and international investors,” said Bloem.
People were losing hope in the country because of corruption. He said Ramaphosa must also clean up state-owned entities, particularly Eskom, as investors would not throw money into a country with an unstable power supply.
Dawie Roodt, chief economist at Efficient Group, said Ramaphosa must fix basic services in municipalities, in provinces and at national level to get the country going again. He said public servants must do what they are supposed to in municipalities and fix the infrastructure, roads and other services to get the economy back on track.
The Minister of Employment and Labour, Thulas Nxesi, told Parliament this week that Ramaphosa will also deal with the question of rising unemployment. Cosatu has called for a stimulus package of R1 trillion to take the country out of the current financial crisis.
The SA Federation of Trade Unions said the plan will show government moving further to the right instead of supporting workers, the poor and vulnerable.
Eskom fuel suppliers contract questioned
Companies engaged in unprocedural activities and favouritism
Pretoria News
15 Oct 2020
AISHAH CASSIEM and AYANDA MDLULI
THE COMPANIES awarded fuel oil contracts by Eskom last year had engaged with the power utility outside of normal procurement processes and apparently even threatened the state-owned company if it did not cancel the multibillion-rand contract of Econ oil, a black female-owned company.
Independent Media’s special investigation unit is in possession of an email which reveals details of unprocedural activities and favouritism of suppliers, which could be another reason why Eskom’s chief executive, Andre de Ruyter, had cancelled Econ’s contract just days into his job.
In last year’s December 5 email with the subject line “fuel oil allocation” from Eskom’s procurement and supply chain manager
Boiketlo Mashila wrote to Thembokhule Bhengu, a senior acting manager for generation centralised contracts and Ntombizodwa Mokoatle, a senior manager for commodity sourcing at
Eskom, saying: “I received a call from Ntombizodwa where she accused me of sabotaging the business and expressed disappointment in me and my team for not executing instructions, despite summering (sic) the same instructions as discussed with the chief procurement officer and asking for confirmation of alignment.”
Mashila had raised her concerns with the managers and said it was unprocedural to engage suppliers and promise them work outside a tendering process outcome, as both Sasol and the Fuel Firing Systems Refiners had been promised additional volumes after they had
complained.
“The process that you have been asking the team to embark on contradicts not only the referential Procurement Policy Framework Act, but our own procedures. No one has the mandate to change board resolutions except the board itself, and we cannot use quantities that were not issued by the market for allocation purposes.
“It is unlawful to withhold contracts from Econ Oil based on threats from Fuel Firing Systems Refiners and Sasol, and it is also unprocedural for commercial management to engage with suppliers and promise them work outside the procurement process.”
According to the Eskom invitation to tender Corp 4786, the buyer remains the only contact person, but the commercial management have chosen to discard this procedure, she said.
“Numerous meetings have been held with the approved fuel oil suppliers, with a view to changing what has been approved by the board. I am writing this email to advise you of my discomfort in executing instructions that are not in line with the procurement process. I now view the delay in awarding fuel oil contracts with suspicion, but for the purpose of progress kindly allocate the project to someone else,” she concluded.
Eskom, who refused to comment on the leaked email despite being given enough time to respond, had previously stated that De Ruyter had cancelled the tender with Econ Oil company due to evidence of irregularities, which included price inflation and other illegal activity. However, a forensic report conducted by Advocate Wim Trengove on behalf of Eskom to prove De Ruyter’s innocence for cancelling the contract did not give much evidence to back his reasons.
The Eskom board had approved the contract of the three suppliers (Econ, Sasol and Fuel Firing Systems Refiners) at a budget of R14 billion last year.
Fuel Firing Systems Refiners declined Eskom’s contract, and Econ and Sasol’s alleged collusion in their proposals resulted in only one tender’s (Econ) contract being cancelled.
De Ruyter in the investigation report claimed that one of his main reasons for cancelling Econ’s contract was due to the collusion, but Sasol told Independent Media that they don’t know anything about this and did not receive any communication from Eskom alleging Sasol had colluded with any party.
Sasol’s media relations manager Matebello Motloung said Sasol did not have any issues with Econ being contracted by Eskom and did not threaten the power utility over contracts with any other company.
“Sasol accepted the award from Eskom and was not aware of Econ Oil’s contract being cancelled or of the reasons for the cancellation,” he said.
Econ Oil said it would not be drawn on the matter currently, but Independent Media
understands that the company is in the process taking legal action against Eskom to have the Trengrove report set aside and the contract cancellation declared unlawful.
However, Fuel Firing Systems Refiners said that the cancellation of only one tender was unfair. Fuel Firing Systems Refiners managing director Andrew Canning explained the company had rejected the fuel oil contract to dodge improper tender processes and due to commercial concerns with the contract documentation that Eskom provided to them for signature at the time of the offer.
Canning said Fuel Firing Systems Refiners was not prepared to sign the documents as they stood even though their company has been a supplier to Eskom’s coalfired power stations since 2006.
“We could not sign the NEC3 Supply Contract as it also contained a lot of generic
information and was not specific for the award of one station to Fuel Firing Systems Refiners.
“We had previously been awarded several contracts during this time and the quantities supplied by Fuel Firing Systems Refiners varied with the different contract allocations offered by Eskom,” he said.
Despite the previous relationship between the two, Fuel Firing Systems Refiners said they would no longer be “used” by Eskom.
Eskom’s spokesperson Sikonathi Mantshantsha did not comment much on Econ and Sasol’s alleged collusion, but only responded to the documentation that Fuel Firing Systems Refiners referred to.
“Every agreement that is drafted between two parties will undergo a few versions until one that is acceptable to both is agreed upon and then signed,” he said.
“
No one has the mandate to change board resolutions Boiketlo Mashila ESKOM
Court clips Agrizzi’s wings
The Star Early Edition
15 Oct 2020
BALDWIN NDABA
| TIMOTHY BERNARD African
News Agency (ANA)FORMER Bosasa executive Angelo Agrizzi appeared in the Commercial
Crimes Court sitting in Palm Ridge yesterday.
SHOCKING details of how former Bosasa chief operations officer Angelo Agrizzi shipped millions out of South Africa into offshore accounts, including the purchase of a house and a luxury vehicle in Italy, was enough for the Palm Ridge Commercial Crimes Court to deny him bail.
Adding more to his woes, the court heard that Agrizzi was defaulting on his R13.5 million house in Helderfontein Estate and was owing a local bank R8.1m.
This was contained in an affidavit of investigating officer Lieutenant-Colonel Bernardus Lazarus submitted in court by the State in its bid to deny Agrizzi bail.
Lazarus was also the investigator in the R1.9 billion case against Agrizzi and four others for their role in the illegal acquiring of tenders at the Department of Correctional Services between 2004 and 2006.
The alleged fraud and corruption were uncovered by the Special Investigating Unit (SIU) following a presidential proclamation but no action was taken against Agrizzi and his accomplices.
He was granted bail of R20 000 after he told the Pretoria Special Commercial Crimes Court that he was the legal owner of the Helderfontein Estate home and had movable assets worth R2.65m.
Yesterday, however, tables turned against Agrizzi when the prosecution revealed that he and his wife Debbie did not have property registered in their names. According to the State, the Helderfontein property belonged to the Agrizzi Family Trust.
In his affidavit, Lazarus also said Agrizzi misrepresented his movable assets, saying during investigations they realised that Agrizzi had more than R8m movable assets which he did not disclose in his initial court application.
The court also heard that between December 2018 and January 3 last year, Agrizzi moved large amounts of money to offshore accounts.
The State also led evidence that Agrizzi continued to ship cash out of the country despite facing the initial criminal charge in February last year after his explosive testimony at the Zondo Commission. The court also heard that Agrizzi had been in possession of an Italian passport but failed to disclose this to police.
Lazarus said Agrizzi has more than R24m worth of assets in offshore accounts including a house and luxury vehicle in Italy.
The court also heard the last amount of R30m was deposited in an offshore account belonging to his wife in March this year.
All these factors prompted magistrate Phillip Venter to agree with the State that Agrizzi was a flight risk.
Investigators were adamant that Agrizzi intended to flee the country and live an expensive lifestyle beyond South Africa’s borders.
In passing judgment on the bail application, Venter asked Agrizzi: “Why hide? Why not disclose your role in the movement of cash on two occasions during your initial bail application in February 2019 and the recent application?”
According to Venter, Agrizzi must be held accountable and the State must be able to recover all the funds that were misappropriated at Bosasa while he was still employed there.
He reminded the people in the gallery that the government was still struggling to extradite the Guptas, saying he did not want to add his name among those who contributed to Agrizzi’s fleeing the country.
Agrizzi was ordered to appear in court again on December 3.
Earlier, advocate Mannie Witz made a failed attempt to secure Agrizzi’s freedom, arguing that the prosecution had failed to inform them prior to their application they would oppose bail.
He said Agrizzi was co-operating with the state capture inquiry conducted by Deputy Chief Justice Raymond Zondo.
Witz also said his client was cooperating with the SIU and SA Revenue Service on all matters, and had no intention of fleeing South Africa.
In reply to claims Agrizzi failed to disclose his Italian passport, Witz said his client had lost the passport, and that was later confirmed by the Italian consulate.
He also asked the court to consider Agrizzi’s medical condition, saying he needed permanent oxygen to help him breathe.
“My client fully co-operated with the investigation. Mr Agrizzi was hospitalised on October 1. That’s the reason he failed to appear with co-accused Vincent Smith. He’s on permanent oxygen. His health has now turned worse,” Witz said. But the State asked the magistrate to reject the application as Agrizzi did not disclose a number of assets offshore.
Why hide? Why not disclose your role in the movement of cash? Phillip Venter MAGISTRATE
45 days to hear of girl’s death
Parents still seeking answers from hospital
The Star Early Edition
15 Oct 2020
BOITUMELO METSING and CHULUMANCO MAHAMBA
THE FAMILY of a 15-year-old Eldorado Park teenager who was admitted to Helen Joseph Hospital in August, found out 45 days later that their daughter had died.
The family of Rene Andrews is seeking answers of how their daughter died.
The teenager, who had Down syndrome, was admitted on August 9 after being diagnosed as having water in her lungs.
Gauteng Health Department spokesperson Kwara Kekana confirmed that Rene was a patient at Helen Joseph Hospital and passed away on August 27.
The teenager’s parents Colin and Jasmine Andrews found out on October 10 that their child died about six weeks ago when they went to deliver a care package for her.
According to the statement issued by the Caitlin Douman Foundation on behalf of the family, due to Covid19 hospital regulations, Rene was not allowed visitors.
However, her parents called the hospital to be updated on her condition on a regular basis.
The parents were assured that their daughter was doing fine.
On the evening of October 9, the family arrived at the hospital to drop off a care package for Rene but we were told that there was nobody of her name in the hospital. The following day the parents and a family friend returned to the hospital near Auckland Park and were
informed after a long wait that their daughter had died on August 27. The cause of death was pneumonia.
Kekana said the department has lodged an investigation. “The Acting Health MEC Jacob Mamabolo has since directed the department to conduct an investigation into Rene’s case. He has
deployed a senior team of officials to meet with the family,” she said.
Family spokesperson and Caitlin Douman Foundation director Charis Pretorius said: “The family is still grappling with trying to make sense of it all. Jasmine is really not coping. She is struggling to come to terms with all of this. It is very, very difficult for her.”
Pretorius accompanied the family to identify Rene’s body on Monday. While describing the gruesome state the family found her body in, Pretorius told The Star that because she was in the mortuary for so long she had some discolouration on her face. “She had been in the mortuary for so long that there was major discolouration on her face. She had gone blue already. Her skin is actually peeling at the moment. We have been advised by the undertakers that there is no way that we can have a viewing at the funeral tomorrow (today) because of the unfortunate condition she is in,” Pretorius said.
She added that Rene’s older sister, who is in Grade 12, has not been able to attend school as she was struggling with what happened to her sister.
“They are really struggling. Colin, the father, is trying to keep it altogether but you can see that he is struggling too.”
“It’s really hard on them at the moment we are just hoping we will be able to provide them with the necessary counselling as of next week so that they too can start processing and work through what they are dealing with,” Pretorius added.
Mamabolo extended words of condolences to Rene’s family for their loss.
“It is never easy to lose a loved one, especially if that loved one is a young person who still had their future ahead of them. The investigation into the handling of Rene’s case should help us to improve patients’ experience of care,” he said.
The 15-year-old’s funeral will take place in Eldorado Park.
Meanwhile, the hospital has been in the headlines for all the wrong reasons this year.
In May, its support staff protested outside the facility asking to be tested for Covid-19, among other requests, after numerous nurses tested positive for the virus.
In July, it was reported that staff and patients had no water for a few days because of a fault with internal pipes. For about three days, patients were unable to bath or wash their hands.
Contraction in retail sales slows down
Business Day
15 Oct 2020
Lynley Donnelly [email protected]
123RF/GUI YONGNIANImproving: The retail sector is clawing its way back. / The decline in annual retail sales softened in August but still highlights the pressure
consumers are under, said PwC economist Christie Viljoen. Though retail sales came in at a better-than-expected 4.2% contraction from a year ago, it was very much a reflection of “job losses, much more so than the lockdown ”, he said.
The decline in annual retail sales softened in August as the sector clawed its way back from the huge shock experienced during the severest level of lockdown as SA’s economy opened up.
Nevertheless, economists warn that consumers still confront uncertainty about job losses and incomes, which could weigh on recovery in the sector.
Retail sales have shown an improvement since April’s almost 50% decline under the severest of the national lockdown, but with restrictions moved to level 2 midway through August, the outcome highlights the pressure consumers are under, said PwC economist Christie Viljoen.
Though annual retail sales came in at a better-than-expected contraction of 4.2% from a year ago, this was “very much a reflection of job losses, much more so than the lockdown”, he said. The median forecast of eight economists polled by Bloomberg predicted a 6.8% year- on-year decline.
On a month-on-month, seasonally adjusted basis, retail trade sales rose 4% between July and August, according to data released by Stats SA on Wednesday, while they recovered 16.7%
in the three months to end-August.
According to Stats SA, the biggest contributions to the annual decline came from “all other ” retailers; clothing and textiles retailers; and general dealers.
During August, the decline in sales in the “food, beverages and tobacco in specialised stores”, category slowed from 17.4% in July to a contraction of 5%. This was likely helped by the lifting of the ban on alcohol and cigarette sales, said Nedbank economists Nicky Weimar and Johannes Khosa.
The controversial ban, which was reintroduced in mid-July, ended when SA went into level 2
— but it has cost SA an estimated R10bn in lost taxes, and boosted illicit trade.
The economy lost 2.2-million jobs during the second quarter of 2020, with consumer confidence remaining weak — sitting at its lowest level since 1993 according to the most recent FNB/BER consumer confidence index.
To shield households from the shock of the pandemic and lockdowns, authorities have instituted various measures including cutting interest rates to record lows, and providing
income support packages such as the Temporary Employer/Employee Relief Scheme, via the Unemployment Insurance Fund and expanding social grants.
The favourable interest rate environment and subdued inflation should also continue to support the revival in consumer spending for the [remainder] of the year,” said Weimar and Khosa in a note. “However, worries about job security and still tough household financial conditions will weigh on consumer confidence and contain spending.”
The trading environment has improved from the levels experienced in the second quarter when large parts of the economy were shut down, said Investec economist Lara Hodes.
However, a return to robust levels of activity is unlikely given that highly constrained
consumers, many of whom are facing financial uncertainty, “are likely to remain cautious and mindful of their purchases”, Hodes said. “We anticipate a protracted recovery in household consumption expenditure and thus SA’s economy as a whole.”
Pushback over bid to give Irba more teeth
• Bill proposes empowering board to search and seize with a warrant
Business Day
15 Oct 2020
Linda Ensor [email protected]
Freddy MavundaMore powers: Former Independent Regulatory Board for Auditors CEO Bernard Agulhas was instrumental in formulating the new bill. /
Proposals to strengthen the powers of the regulator for the auditing profession, the Independent Regulatory Board for Auditors (Irba), came under attack in parliament on Wednesday, with some companies and industry organisations arguing against providing a civil body with such wide-ranging authority. /
Proposals to strengthen the powers of the regulator for the auditing profession came under attack in parliament on Wednesday, with some firms and industry organisations arguing against providing a civil body with such wide-ranging authority.
Among the provisions of the Auditing Profession Amendment Bill is to give the regulator, the Independent Regulatory Board for Auditors (Irba), powers to search and seize documents with a warrant if no consent has been obtained beforehand for this.
Irba has justified the need for this additional power on the grounds of the non-cooperation by audit firms during investigations into improper conduct by registered auditors.
The amendments take place in the context of what former Irba CEO Bernard Agulhas said is a “reputational crisis” facing the profession, which has faced a series of auditing scandals related to Steinhoff, VBS Mutual Bank, Tongaat Hulett, the SA Revenue Service’s “rogue unit”, and a string of state-owned organisations in which auditors failed to execute their professional duties.
Agulhas, who played a key role in formulating the proposed bill, said during public hearings held on Wednesday by parliament ’ s finance committee that criticisms have been levelled against Irba for the level of sanctions applied, insufficient enforcement powers and the time it takes to complete its investigations.
The bill attempts to address some of these issues.
One on side, Union federation Cosatu and the non-profit organisation OpenSecrets strongly supported strengthening Irba’s powers, with Cosatu calling for the bill to also include mandatory auditor rotation after five years.
However EY assurance leader Stephen Ntsoane called for a limit on the right to search and seize with a warrant. This should be restricted to only material contraventions of the act, he said, so the net was not cast too wide to include trivial contraventions.
The measure, if introduced at all, should also be a last resort after all reasonable steps to obtain information from the auditor have failed. The bill should also provide the right of appeal, Ntsoane said.
Deloitte SA regulatory leader Carla Budricks also supported an appeal process to the courts being built into the law. She does not believe that additional powers of search and seizure are necessary given Irba’s existing powers. If the additional powers are included in the bill, they must be made constitutional, she said.
The SA Institute of Chartered Accountants CEO Freeman Nomvalo also highlighted the need for an internal objections process against certain decisions by Irba and raised concerns over the proposed search and seizure power.
He noted that Irba already had substantial powers to obtain the information it required and had not justified why it needed additional ones.
The policy of assigning search and seizure powers to civil authorities remains questionable at best,” Nomvalo said. The powers given to Irba to search and seize should comply with Constitutional Court requirements, he said.
Both Nomvalo and Budricks argued against the proposed removal of the requirement that a registered auditor serve on the Irba board, saying that this knowledge and experience is necessary.
OpenSecrets researcher Michael Marchand appealed for harsher sanctions in the case of wrongdoing by auditors to act as a deterrent.
In terms of the bill, the finance minister can set the maximum fine, but OpenSecrets suggested the fine should possibly be based on a percentage of the audit firm’s profits.
Marchand was strongly opposed to maximum fines, which might not be adequate for the offence committed.
It was also mooted that Irba be obliged to make public the reports of its disciplinary processes.
Covid matric exam crisis
CAPE TOWN: YOUNG CLUB REVELLERS LEAD TO SPIKE IN INFECTIONS Western Cape premier calls on youth and business to play their part in staying safe.
The Citizen (Gauteng)
15 Oct 2020
Brian Sokutu [email protected]
Graphic: Costa Mokola | Source: Jones N et al, BMJ 2020. Study based on the hypothesis that people are showing no symptoms, AFP | *Masks in general use
Disregard for Covid-19 protocols, behind the recent infection cluster outbreak that has led to 63 new pandemic cases being reported in Cape Town, with more than half of those infected being pupils, could affect year-end matric exams, according to Western Cape doctors.
The outbreak, linked to a club in the Cape Town southern suburbs where the teenagers wore no masks and failed to observe social distancing, has been slammed by Western Cape premier Alan Winde, who has called on youth and business to play their part in staying safe.
An infection cluster outbreak occurs when a group of people converging in one area – usually indoors, with less ventilation – is simultaneously infected by the disease.
Winde, who maintained that lockdown regulations and safety protocols were breached, said a pattern had emerged around residents of a similar age.
Said Winde: “The people involved didn’t behave in a way that was needed to keep themselves and others safe, by either not wearing their masks properly, or at all, or by attending large gatherings where distancing and ventilation is difficult or even impossible.”
Shrugging off any perception of the province being hit by “a second wave” of the virus, he said the provincial government has instituted a probe into the club, with the SA Police Service and the Western Cape Liquor Authority being involved.
“We are extremely worried that this particular event is indicative of younger residents not adhering to the important behaviours we need to prevent a new spike of infections.
“It is one cluster that demonstrates the potential for a spread, which continues even while our hospitalisations and deaths stabilise,” said Winde.
Dr Karen van Kets, a general practitioner in the Cape Town southern suburbs and
spokesperson of the Western Cape School Covid-19 Advice Group, said the province has over the past two weeks seen a 10% increase in positive cases across the board, affecting youth aged between 15 and 19 years.
She warned that final matric exams could be affected.
“The fallout from this incident is huge,” said Van Kets.
“For now, exams are a big issue because if the department of education does not allow an infected pupil or someone who is in a quarantine access to the classroom, it means they won’t write exams and matriculate, unless exams are deferred to next May or June.
“Young people should live in a safe way. If you walk in the forest or along the beach, you are not putting anyone at risk.
“If you adhere to the protocols, then you are not in close contact with people in an unprotected environment.
“Wearing a mask, keeping your distance, sanitising and washing your hands are key in public.
“Despite the country being in alert Level 1, the protocols are still in force
“But some people, as seen in the club incident, have become lax with the rules.
“Not being in a well-ventilated area, not wearing a mask and being too close to each other spreads the disease quickly in a group.
“We think that in this environment, there were no masks, poor ventilation and they spoke over loud music for a very long time.
“Clearly, there was no adherence to rules inside the club.”
The advice group of 70 doctors from all parts of the Western Cape has told pupils, teachers and parents about the dangers of Covid-19 since the pandemic outbreak.
““We formed a group 70 doctors to help schools in Covid-related matters, now going for months.
“We also see university students, at times cross reference with each other,” said Van Kets.
–
Grooms head to CCMA
DIPPIN BLU RACING: 40 AXED WORKERS CITE UNFAIR LABOUR PRACTICES
The Citizen (Gauteng)
15 Oct 2020
Mkhuseli Sizani GroundUp
Picture: Mkhuseli SizaniSTRUGGLING.
Former Dippin Blu Racing grooms in Port Elizabeth meet outside the Fairview informal settlement where most of them live.
Ineligible for UIF due to claim they absconded from work.
The outcome of a Commission for Conciliation, Mediation and Arbitration (CCMA) hearing tomorrow may determine whether dozens of former Dippin Blu Racing horse grooms in Port Elizabeth can claim unemployment benefits.
On 17 September, more than 150 protesting workers and people from the surrounding community stormed the stables at Dippin Blue, releasing the horses. One horse died and 20 were injured.
One person was arrested and it appears at least two people were injured by gunshots.
The conflict stemmed from an incident in February when a worker injured a horse. The stable owner said the worker stabbed the horse in the neck.
The horse grooms disputed this, saying the worker mistakenly cut a horse’s ear during
grooming. The workers say they pleaded with the owner not to fire him “because that mistake could happen to all of us”. In the ensuing dispute, the worker and 39 others were instead fired.
The group took the matter to the CCMA in March. But then they dropped the complaint so they could apply for Unemployment Insurance Fund (UIF) payouts, which they couldn’t do if the case was pending at the CCMA.
In September, they discovered the department of labour’s system showed they had absconded from work, making them ineligible for UIF. The 17 September protest then broke out and the grooms reopened their CCMA complaint.
On Tuesday, Ziphozihle Josefu, provincial spokesperson for the department, said they had intervened after the protest.
“According to the CCMA, the arbitration was late and no condonation application was received. This means the UIF claims will not be approved at this stage. The department will await the outcome from the CCMA to verify whether or not to pay the claims,” he said.
Zukile Matshisi was arrested during the protest. He said he was shot before that.
“I was on my way to work. I saw the protesting workers running towards our informal settlement. The two security guard vehicles bumped me and I fell. The police shot me three times with rubber bullets. They arrested me even though I was not part of the protest,” he said.
Matshisi made his fi rst appearance on charges of public violence and malicious damage to property at the St Albans Magistrate’s Court on 21 September. He was released on bail and is due back in court on 26 October.
The owner of Dippin Blu, Hedley McGrath, at the time said he, too, was considering legal action against the group. McGrath and his partner, Yvette Bremner, have closed the stable.
Nkosibonile Magquthela said he was also shot during the protest. He was dismissed from Dippin Blu Racing in February and had found another job at a security company. He had just returned from nightshift when he heard a commotion outside his shack. He went to see what was happening and was shot, allegedly by a security guard. Police spokesperson Colonel Priscilla said a case of attempted murder was being investigated.
Magquthela said: “The doctors said the bullet can’t be removed as it will damage my leg.” He has not been able to work and fears he can no longer support his partner, their two children or help his five siblings. “We are victims in this industry. I had been working [at Dippin Blu] for eight years... We only received an increase to R1 080 a week after the Economic Freedom Fighters ordered our bosses to improve our salaries in 2019. Now I am a burden on my sister.”
Thabo Nomkhonwana, 61, worked at Dippin Blu for 10 years. The last time he and his son had food at home was in February. Since then, they have relied on neighbours and relatives.
Mzawupheli Naki, 53, said a horse trod on and broke his leg at the Fairview racecourse in 2018.
“My boss sent me from pillar to post, claiming he was waiting for the doctor’s final report.
“He only paid me my normal R750 weekly salary for three months. We are victims of unfair labour practice.”
Grant Paddock, owner of Paddock Racing Stable, said the industry has had “serious challenges” since the Covid-19 outbreak. “The stakes have dropped 60%,” he said. “In the past two years the workers have been getting 1% of the stakes.”
Alan Greef, of Alan Stables, said: “Anyone who is subjecting workers to poor conditions must be investigated and dealt with.” –
We are victims of unfair labour practice
