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[Marxism] the ANC & Zuma: my reply to Patrick Bond's third reply.
Hi again, Patrick. Firstly, let me repeat the offer which I made following your
first reply to my article 'Arrow in the Wind' in the 21stCenturySocialism
webmagazine. You requested that we record your 'rebuttal' on our website. I
responded: "you are most welcome to post on the forum of the
21stcenturysocialism.com website. Alternatively- and much better in terms of
useful discussion of the issues- if you would like to write a more thorough
response (say, 800 to 1500 words) we will publish it in full and feature it
prominently on our main page." You have full right to reply.
Meanwhile. You suggest that I have quoted you imprecisely. Where I have quoted
you, I have given your exact words and put quote marks around them. When I
said: "it is simply not true, as you seem to imply, that Argentina now has no
relationship with international capitalist finance", this was because you
seemed to object to my remarks that:
"...even were one to assume that the correct socialist strategy for a
medium-developed Third World country is the immediate nationalisation of all
economic activity (a most questionable assumption in present global
conditions), South Africa would still need a relationship with the
transnational companies, including the banks, in order to be able to trade and
to attract technology."
and:
"...unless you do nationalise the means of production & take state control of
foreign trade, and furthermore, unless you have large and technologically
advanced foreign partners with whom you can trade with and source investments
from on a non-capitalist basis, then it is simply not possible for you to have
no relationship with the Citibanks and Merrill Lynches."
You replied with:
"...the cases of Malaysia in September 1998 (exchange controls) and Argentina
in 2002 (default), as examples of strong, feasible action against international
financiers, taken to protect the local economy. Were those rulers (by no means
leftists) naive in the extreme, or did their tactics work? Even Joe Stiglitz
confirms they worked well."
and:
"Huh? Argentina 2002? Read some about their experience defaulting and
recovering without recourse to new foreign loans (aside from trade finance), at
www.cepr.net"
Given that these rejoinders appeared to be directed at my remarks to the effect
that, except in conditions which do not currently apply, it is not possible for
a medium-developed Third World country to have no relationship with
transnational capital, including the banks, it was hard to avoid the conclusion
that you believe that this view is incorrect, and that Argentina's 2002 default
& subsequent recovery provides proof that it is wrong.
The CEPR materials showed that, following its defaults, Argentina successfully
re-negotiated its relationship with international capitalist finance. Other
information showed that Citibank continued to operate in Argentina, and
expanded its retail division.
But for you, this appears to be irrelevant, because following the 2002 default:
"...the Kirshner regime lost the initiative and turned elite-reformist".
Forgive me, but what exactly are you saying here? That the Kirchner regime was
making non-reformist reforms when it defaulted, but was elite-reformist when it
re-negotiated? Are you making the claim that Argentina (or for that matter,
Malaysia), enjoyed brief moments of having no relationship with international
capitalist finance? If not, what are you trying to say that would have
relevance to my argument?
I don't have time at the moment to take up your remarks about the "venality" of
the new ANC leadership - I'll respond on this issue soon.
Best wishes & a happy new year,
Noah
In response to:
Date: Sun, 30 Dec 2007 09:31:02 +0200
From: Patrick Bond <pbond@xxxxxxxxxxx>
Subject: Re: [Marxism] Zuma's election & the ANC- my reply to Patrick
Bond's second reply.
To: Activists and scholars in Marxist tradition
<marxism@xxxxxxxxxxxxxxxxxxx>
Message-ID: <47774936.1000408@xxxxxxxxxxx>
Content-Type: text/plain; charset=windows-1252; format=flowed
noah tucker wrote:
> Argentina's success following its actions in 2002 (& 2003) is very
encouraging, and you are absolutely right to suggest that other
countries can learn much from this
> experience. However, it is simply not true, as you seem to imply,
that Argentina now has no relationship with international capitalist
finance.
For someone devoted to the left info world, comrade Noah, you are going
to have to become much better at quoting people precisely, if only so
that you don't waste your valuable time tracking down and rebutting
things that are not at issue. There is nothing in my writing to endorse
Argentine int'l financial relations 'now' or in 2007 or at any time
since the 2002 default and recovery.
What I *actually* said in my initial reply was this: "The arguments in
the books - which I'm happy to email you or anyone who wants them
(pbond@xxxxxxxxxxx) - endorse the cases of Malaysia in September 1998
(exchange controls) and Argentina in 2002 (default), as examples of
strong, feasible action against international financiers, taken to
protect the local economy." And then again in the next exchange I
wrote:
"Argentina 2002? Read some about their experience defaulting and
recovering without recourse to new foreign loans (aside from trade
finance), at www.cepr.net ".
I didn't say anything about post-2002 developments in Argentina, for
the
simple reason that the Kirshner regime lost the initiative and turned
elite-reformist. There are plenty of sources on this, such as
www.jubileesouth.org (anything by Beverly Keene).
noah tucker wrote:
> ...
> But either way, the ANC is a mass movement which includes the trade
unions, the communist party, and many thousands of activists among the
poor & the working class. The mass base of the movement has changed the
leadership because of the previous leadership's submission to
neo-liberalism. As Zuma himself has emphasized, the ANC has a
collective
leadership.
> You think that the best that can be hoped for following Polokwane
is:
"a bit of a wild time in which people will make some advances because
of
their renewed confidence". > Renewed confidence is very a good thing,
and so would be 'some advances'. My view is that more is possible- but
by no means guaranteed.
With a few noble exceptions, the new 'collective leadership' of the ANC
is a sorry lot, incorporating a variety of scam artists (several
parliamentarians convicted of travel fund fraud, including the new ANC
chairperson who got her driver's license through bribery and
corruption), ex-cons (Winnie Madikizela-Mandela who was #1 vote
recipient for the ANC's national executive), neoliberals (the former
minister of privatisation, Jeff Radebe, was #2), and AIDS genocidaires
(the current health minister, an Mbekite, is still on the national
executive, as is Mbeki himself). The whole top layer of this party is
corruption-ridden, thanks to its 'Chancellor House' fundraising
adventures and a massive arms deal with bribery now under investigation
by French, British and German firms, probably reaching Mbeki and
certainly Zuma. This is the crowd you give renewed credibility to on
your website and several listserves. It's absolutely pathetic, as you
can read for yourself below.
Setting aside this crew's venality, in a larger political sense, it
would be good if you distinguished between a reformist reform - which
some neoliberal nationalists will concede under pressure - and a
non-reformist reform, which is what the independent left is fighting
for
here. In the ANC's Reconstruction and Development Programme of 1994
(for
which I served as one of four final editors), we thought we had lots of
non-reformist reforms; naturally these were the components of the
programme that were ignored by all the ministers, especially the two
leading SACP ministers (Slovo in housing and Maharaj in transport).
We also witnessed a huge upsurge in confidence in mid-1994 with wildcat
strikes, land invasions, building occuptions and the like, which
Mandela
quickly deflated. If you stay at it, what you will learn more about,
from both SA and Zimbabwe, is that these nationalist parties -
especially ones fundamentally committed to neoliberalism because of
their class basis - quite readily turn to 'talk left' rhetoric so they
can 'walk right' on nearly all major policies. Fanon's Wretched of the
Earth (Chapter Three) sets out the basic formula. You can find it on
the
web easily enough, and I hope you give it some thought next time you
report on matters South African, comrade.
***
www.mg.co.za
Dangerous, covert liaisons
Sam Sole
21 December 2007 11:59
What a country. Both our president-in-waiting and our police chief
separately face the prospect of corruption and racketeering charges;
our
previous national director of public prosecutions was accused of once
being an apartheid-era spy and all but hounded out of office for
pursuing the first investigation; our current national director was
suspended by the president for pursuing the second; our intelligence
service boss is put on trial for playing politics and accuses his
political masters of doing the same; our dominant party raises
R907-million in funding over five years, but won?t say where from and
will not disclose the details of its R1,75-billion worth of
investments.
South Africa?s recent history is hardly comprehensible without
deconstructing the impact of covert networks of influence that find
expression in the overlap of state intelligence, political funding and
organised crime.
Consider the following description: ?I observed a shadow area, a zone
of
contact between legality and illegality, between the licit and the
criminal, between clean money and dirty money, between honest people
and
out-and-out crooks. It is a no man?s land dominated by a demi-monde of
intermediaries of every kind, of corrupters and corrupted enjoying
complete impunity for laundering money in investments which are clean,
safe and profitable.?
Sound familiar? The words are those of French MP Francois d?Aubert,
chairman of an Anti-Mafia Commission that investigated the pollution of
the French and Italian political systems by an alliance of Italian
intelligence, the Mafia and a secret political society.
The comment is quoted by Stephen Ellis, the former editor of the
influential Africa Confidential, in his seminal study Africa and
International Corruption: The Strange Case of South Africa and
Seychelles.
Ellis argues that the Cold War ?encouraged the development of relations
between crime, politics and intelligence activity?, largely because
?secret services and politicians who purported to be acting for the
greater good of the West were prepared to tolerate or even promote
politicians of dubious morality and do deals even with professional
criminals, particularly in the Third World but also in the
industrialised world?. In South Africa, the struggle to maintain
apartheid ? and to bring it down ? produced a similar dynamic.
The apartheid security services set up hundreds of front companies as
part of a ?total strategy? of counter-revolution, pursuing sanctions
busting, buying international influence and raising covert funding via
trade in commodities such as ivory and rhino horn, among other illegal
activities.
The liberation movement, evidence suggests, engaged in smuggling,
car-theft and money laundering. It promoted individuals who are
comfortable operating outside the law, some of whom were little more
than gangsters.
The networks created on both sides during that struggle, and the
liaisons they forged with the criminal underworld, have survived into
the democratic era ? and underpin much of the turmoil we have seen
since
1994.
And now the exigencies of the National Democratic Revolution provide a
similar justification for the same sorts of dangerous liaisons.
South Africa?s situation is not unique. As Ellis points out: ?Political
parties in modern advanced democracies, it seems, are permanently in
search of funds in excess of what they can obtain from domestic party
members or sympathisers. The competition for political power is such
that they may be prepared to seek such funds from unorthodox or illicit
arrangements with business, or with their own secret services, or a
combination of the two.?
To some extent this dynamic is simply more overt in South Africa.
That?s
because our long history of covert activity, both by the apartheid
state
and by the liberation movements, has embedded such networks strongly in
political and business culture ? and because the demise of apartheid
and
the rise of conflict within the ANC have both generated greater than
usual visibility of such networks and processes.
Let?s take the arms deal.
Internationally, numerous examples suggest that the defence trade is
used almost routinely as a vehicle for covert party funding and the
creation of unaccountable funds that can be used by political barons
and
intelligence agencies.
The recent revelation that BAE Systems paid more than $2-billion to
prince Bandar bin Sultan as part of a British-Saudi arms deal is less
about corruption than the creation of a giant slush fund.
In a tiny insight as to the kind of things that money was used for, we
know from Bandar?s biographer that, on the instructions of prime
minister Margaret Thatcher, he paid $10-million to an Italian political
party to try to influence the outcome of the Italian elections.
The South African deal was little different. Significantly, it was
managed by a combination of apartheid-era sanctions busters ? Tony
Geogiades, Llew Swan and the John Bredenkamp organisation, to name
three
? and ANC notables, including Thabo Mbeki, Joe Modise and Mendi
Msimang.
The spoils that were to flow also emerged as a site of contestation
between competing tendencies in the ANC ? Mbeki?s alliance of
technocrats and African nationalists facing off against the grouping of
communists, militarists and ethnic entrepreneurs that coalesced around
the figurehead of Jacob Zuma.
It is worth remembering that Zuma is fundamentally a political project
of the Shaik family and his very political survival was partly built on
Schabir Shaik?s corrupt relationship with the French arms company
bidding for part of the arms deal.
On the other hand, it is also worth asking whether the political
protection Jackie Selebi has enjoyed does not derive from his
involvement in and knowledge of the funding of the Mbeki faction of the
party.
The danger to our democracy is clear. As Ellis notes: ?The networks
thus
established may become independent of their political instigators,
creating power blocs with enduring interests which survive changes of
regime in, for example, Rome, Paris or Pretoria.?
It is conflict within the ANC that has fortuitously exposed many of
these networks. We dare not let them regain either respectability or
anonymity
***
Chancellor House should concern us all
Hennie van Vuuren: COMMENT
18 December 2007 11:59
Understanding the role of the ANC treasurer general, and the books that
he will hand to his successor, sheds light on the course of the ruling
party. The manner in which the ANC treasury operates sadly has come to
represent the worst feature of modern democracy: the secret embrace
between money and politics, where two is company and the electorate
makes an unwelcome crowd.
A decade ago Mendi Msimang inherited a political party that was nearly
broke and about to lose its rainmaker, Nelson Mandela. Msimang?s was an
unenviable inheritance. Makhenkesi Stofile, Msimang?s predecessor, by
his own admission did not have the financial skills for the job.
Moreover, the position itself was undergoing transformation. Until the
early 1990s the ANC received most of its income from the Nordic
countries, Sweden in particular. As the ANC prepared to govern, suitors
lined up to fund the party. Some wished to support the ANC in its final
push for liberation. Others, of course, saw money buying them access.
While these might be the ways of neoliberal democracy, they can be
regulated to an extent through disclosure, ceilings on expenditures and
donations, and prosecution for those who break the law. Where this
doesn?t happen the impact is profound. The Bush government?s torrid
affair with corporate America is one example; South Africa, where
private funding of political parties remains unregulated, is shaping up
to be another.
With the backing of sections of the ANC leadership, Msimang has
shrouded
the party?s finances in secrecy. According to a report in Financial
Mail
earlier this year, Msimang ?put a few slides up on a screen ? but no
audited statements were presented? to delegates at the ANC?s 2002
conference in Stellenbosch.
Of course many opposition parties, including the DA, self-righteously
denounce corruption while embracing the same secretive methods. But the
ANC is the ruling party and its donors have the most to gain from
leverage. What is it that Msimang does not want the world to see?
There is little doubt that the big businesses that kept white politics
afloat under apartheid are doing the same today, with new players who
wish to ?support democracy? in the Brett Kebble mould.
The most fundamental shift in ANC funding directed by Msimang in the
past few years has seen party interests seemingly conflate with state
power.
Stofile?s comments, as reported in a 1997 interview with The Star,
provide a useful reference point: ?There were a number of options,? he
said. ?One was the National Party option, which formed companies and
gave them contracts that produced a steady basis of income. We didn?t
think that would be a good thing to do. We then considered joint
ventures and also thought that they would not be viable and would be
the
source of conflict.?
Only 10 years later it appears that Msimang is steering the ANC towards
the so-called National Party option.
Recent reports in the Mail & Guardian suggest that the activities of
ANC
front company Chancellor House should concern every South African, not
least ANC members.
First uncovered in research undertaken by the M&G and the ISS
Corruption
and Governance Programme last year, Chancellor House was reported to
benefit from a joint venture giving it access to untapped manganese
fields worth R7billion.
Next came the announcement, early this year, of a Russian fertiliser
deal valued at R14billion. The M&G?s most recent expos? links it to the
massive Medupi power station tender, from which Chancelllor House could
receive as much as R3billion in turnover.
When these contracts were awarded, the links between Chancellor House
and Luthuli House were public knowledge. How could senior bureaucrats
and politicians not have been aware of a very real conflict of
interest?
Allegations of bribery in the arms deal are one thing, but the
criminalisation of sections of the state would be something altogether
more dangerous.
It is unclear whether the profits accrued by Chancellor House will
ultimately benefit the ANC or sectional interests within the party.
Such
funds, if not clearly accounted for, are open to abuse in internal
battles or to provide patronage.
All this underlines the importance of regulation of party funding. It
also speaks to the responsibilities of the new treasurer general to be
elected at Polokwane. Can both nominated candidates -- Phumzile
Mlambo-Ngcuka and Mathews Phosa -- handle the difficult mix of managing
money and retaining integrity?
Delegates might wish to consider the words of the late ANC treasurer
general, Thomas Nkobi, who warned in 1991: ?We [the ANC] have the
national responsibility and duty to create and sustain alternative,
reliable sources of funds and the only sources that will be reliable
are
those sources that come from our people.?
If not the people, then who -- and at what cost?
Hennie van Vuuren heads the Institute for Security Studies corruption
and governance programme in Cape Town
***
Scorpions reveal new Zuma evidence
Mail & Guardian Online Reporter and Sapa | Johannesburg, South Africa
15 December 2007 12:50
New allegations against African National Congress (ANC) deputy
president
Jacob Zuma have been included in an affidavit before the Constitutional
Court, South African Broadcasting Corporation news reported on Friday.
Johan du Plooy, a senior special investigator for the National
Directorate of Public Prosecutions (known as the Scorpions), said
investigations had uncovered substantial new evidence against Zuma, who
is due this weekend in Polokwane for the ANC's 52nd national congress.
Jacob Zuma told the public broadcaster: "Allegations don't mean the man
is guilty until the court says the person is guilty. Whether people are
worried about it or not is a different matter. If I'm taken to court
and
the judge says 'Zuma, we find you guilty' as I walk out of court I will
say to the ANC 'I'm stepping down'".
The affidavit is in response to an application to the Constitutional
Court by Zuma and French arms company Thint to appeal the Supreme Court
of Appeal's ruling that warrants for search-and-seizure raids obtained
by the Scorpions were valid.
Raids
Zuma and his lawyer Michael Hulley's premises were raided by the
Scorpions on August 18 2005. The raids were carried two months after
Judge Hilary Squires convicted Zuma's former confidante and financial
adviser Schabir Shaik on two counts of corruption and one count of
fraud
in the Durban High Court.
The corruption charges related to Shaik's attempt to solicit a R500
000-a-year bribe from French arms manufacturing giant Thales
International (formerly Thomson CSF) for Zuma.
Mauritian documents
The state is also seeking documents from Mauritius, including the 2000
diary of Alain Thetard, the former chief executive of Thales
International's local subsidiary Thint, which reportedly details a
meeting in March 2000 between him, Zuma and Shaik.
In papers filed with the court in November, Hulley said said the
search-and-seizure warrants gave permission for documents related to
the
investigations into Zuma to be seized, but that the problem was the
warrants never "remotely described" the investigation.
Such a vagueness in the warrants "thus allowed on the face of it, a
general ransacking of the premises targeted".
Hulley went on to point out that the "judicial process" was equally
divided over the raids.
"The court of first instance [the Durban High Court] and the two judges
in the SCA found for the applicants herein; three judges of the SCA
found for the respondents.
"The outcome in the SCA has simply demonstrated that the issues are
contentious and of principle. It is thus clear also that there are
reasonable prospects of success on appeal."
Affidavit details payments
The Shaik trial uncovered 229 payments to Zuma.
The affidavit said the number of payments now stands at 354. This means
the full amount received by Zuma was R4-million, compared to the
R1,2-million uncovered in the Shaik trial.
The Shaik trial heard of four instances in which Shaik benefited from
his relationship with Zuma. The new evidence suggested an additional 28
instances, bringing the number to 32 instances.
The affidavit further claims that Zuma fraudulently failed to declare
this income to the South African Revenue Service. The affidavit also
alleged that Zuma received funds from other sources.
***
Sunday Times, 30 December
Zuma?s Men Target Mbeki
Paddy Harper, Brendan Boyle and Moipone Malefane, Sunday Times, 30
December 2007
Furious backlash over corruption charges
NEC member hints Mbeki might be removed from office
President Thabo Mbeki faces a bruising showdown with members of the ANC
National Executive Committee (NEC) over the decision to charge newly
elected party president Jacob Zuma.
Zuma will go on trial in August for allegedly receiving bribes
totalling
R4-million from convicted fraudster Schabir Shaik and French arms
dealer
Thint in return for abusing his party and government positions to
further their interests.
Zuma faces 18 charges, including corruption, fraud, racketeering, tax
evasion and money laundering.
As the full extent of the alleged web of corruption involving Shaik,
Thint and Zuma became clearer through the indictment issued in the
Pietermaritzburg High Court on Friday, Zuma?s backers have, for the
first time, directly accused Mbeki of involvement in a ?political
vendetta? against the newly elected ANC president.
Zuma?s supporters are expected to vent their anger on Mbeki as they
also
consolidate their grip on the ANC at the first NEC meeting on January 7
when they elect the powerful National Working Committee.
A week later, the party leadership, top government representatives and
officials gather for their annual lekgotla, where Zuma?s team is
expected to set the tone for the remainder of Mbeki?s term by laying
down a set of demands for immediate policy shifts.
There could also be skirmishes over Mbeki?s peremptory appointment of a
new SABC board, the left-wing opposition to inflation targeting and the
controversial cross-border municipal boundaries such as Khutsong. Any
fledgling efforts at compromise have been crushed by anger at charges
against Zuma, which many see as deliberately timed to weaken him at the
forthcoming lekgotla and NEC meeting.
A senior member of the party?s NEC said: ?Mbeki might have provoked
something he may not be able to control at the NEC meeting.?
Hinting at the possible removal of Mbeki from office, he added that
?we?ve all along said the two centres of power won?t work?.
Former National Intelligence Agency Director-General Billy Masetlha,
who
is now an NEC member, told a gathering of Umkhonto weSizwe veterans in
Soweto on Thursday that ?if they [the government] defy us [the ANC], we
will punish them?. He was speaking on the ANC?s recommendation that the
Scorpions be incorporated into the South African Police Service (SAPS).
ANC Youth League President Fikile Mbalula, who was one of the
kingmakers
in Zuma?s election campaign, said: ?The decision to charge Jacob Zuma
is
not a decision of the judiciary; it is a decision of the state, and the
state is led by Thabo Mbeki.?
He questioned why, in the case of SAPS Commissioner Jackie Selebi,
Mbeki
had refused to comment, saying he was ?not a prosecutor?, while in
Zuma?s case he had gone to ANC structures and told them Zuma was guilty
of corruption.
?Jacob Zuma, as president of the ANC, could not have been charged
without the full backing of Thabo Mbeki.?
Mbalula added that the timing of Zuma?s initial court appearance ?
August 14 ? was aimed at disqualifying him when ANC structures
nominated
their choice for president of the Republic in June.
?This is a blatant and desperate attempt to block Zuma?s ascendancy to
the highest office of the land,? Mbalula said.
?The State President has even said that Zuma will not become president
of South Africa ? Mbeki is part of this. He is not immune from this
case.? Mbalula was making a veiled reference to Mbeki?s role as chair
of
Parliament?s sub-committee that approved the arms deal when he was
still
the country?s deputy president.
Zuma has previously told the Pietermaritzburg High Court that Mbeki is
the only one who can shed light on the issue.
Mbalula said the decision to summons Zuma during the Christmas period
was aimed at weakening the ANC at its first NEC meeting on January 7 to
offset Zuma?s victory at the Polokwane conference.
Echoing Mbalula?s allusion to Mbeki?s involvement in the arms deal,
Cosatu spokesman Patrick Craven yesterday demanded a full judicial
investigation into the arms deal.
?The timing of the indictment has all the hallmarks of vengeance,
deep-seated anger and frustration by the NPA [National Prosecuting
Authority] ? It indicates a level of personal anger against Zuma,? said
Craven.
Businessman Tokyo Sexwale, who is now also in the party?s NEC, entered
the fray yesterday, saying: ?The timing of charges with a court date
already decided, is extremely disturbing and adds fuel to the
speculative fires that organs of the state may be manipulated for
political purposes.?
Yesterday Zuma met with his attorney, Michael Hulley, for a briefing on
the case which will go straight to the Pietermaritzburg High Court,
from
whose roll it was struck in September 2006 by Judge Qed?usizi Msimang.
Zuma?s legal strategy will be to apply for a mistrial when the case
sits
on August 14. When the case was thrown out, his counsel, Kemp J Kemp
SC,
had already prepared a motivation for the mistrial application.
Gwede Mantashe, the ANC?s secretary-general, said yesterday the
?sequence of events?, including the announcement by the NPA that it
would charge Zuma two days after he was elected ANC president, needed
to
be ?looked into carefully?.
A Markinor socio-political trends survey released this week found a
representative sample of South Africans split over their support for
Zuma with 35% saying they believe that Zuma is guilty of charges
relating to the arms debacle and a further 34% saying that corruption
charges against him were an attempt by his political enemies to
discredit him.
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