(Thusi Rapoo: “White people come here with master plans. When they recognise the impossibility of these plans they leave. They must have been looting, and now they have realised that revenue stream is not coming through because of pressure from the communities”.) 17 Aug 2014 Sunday Times LUCKY BIYASE Anger over RBH’s R1.5bn incentive Royal Bafokeng Nation king under fire for living high life Where is development when people still live in mud houses ROYAL Bafokeng Holdings (RBH) is tight-lipped on an alleged R1.5-billion golden handshake given to its former CEO, Niall Carroll, and his executive team. However, talk that Carroll, a former investment banker at Deutsche Bank, walked away with such an immense sum of cash has sparked fury among members of the Bafokeng. The Bafokeng are widely seen as “Africa’s richest tribe” for the billions it has made through owning some of the richest platinum assets in the world and cash it has invested in the community. But the anger over Carroll’s alleged payout points to cracks in the happy picture painted for the rest of the world. In an interview, RBH CEO Albertina Kekana refused to reveal the size of the payout, saying the entity was “private” and had no obligation to reveal the incentives paid to Carroll’s team. RBH is the Bafokeng’s investment entity, which was established to ensure the growth of its assets and income through diversification to avoid reliance on platinum income stream. Kekana said that the tribe initially started with only R300million. But largely thanks to Carroll’s leadership it now had assets of about R39-billion, including large stakes in big mines such as Impala Platinum and Northam. But this payment was let slip by Royal Bafokeng Nation (RBN) chief Leruo Molotlegi at a heated meeting of the traditional council, the tribe’s supreme decision-making body. Molotlegi allegedly said the council should not challenge it because it was based on a contract the nation had with Carroll. Molotlegi allegedly acknowledged to the council that this was a result of poor oversight while the nation was facing dwindling platinum revenues However, Carroll’s resignation and the alleged subsequent payment have prompted disillusioned members of the tribe to question why RBN is now preparing to retrench workers when it had paid over so much money. Kekana denied that the nation was facing a cash crunch, saying it embarked on “operational restructuring” because of “cyclical and structural challenges” in the platinum sector. But community members are angry that outsiders who were meant to improve the tribe’s financial position left with so much of their money. Thusi Rapoo, secretary of a small splinter group called the Bafokeng Land Buyers Association, said: “White people come here with master plans. When they recognise the impossibility of these plans they leave. “They must have been looting, and now they have realised that revenue stream is not coming through because of pressure from the communities”. Rapoo’s organisation is fighting RBN in court, seeking to have part of the land now falling under the Bafokeng placed in its name. And he is furious that the nation’s money is being used to fight his group in court. Royal Bafokeng has used a Canadian law firm, Fasken Martineau, in the land dispute case in the Mmabatho High Court. Said Rapoo: “Common sense should tell you that this company is coming from Canada where disputes of this nature are common. They must have been referred by a peer to our case to make money.” He wants RBN’s accounts to be frozen and placed under administration. Philemon Kunabe, who lives in Tsitsing village on Bafokeng land, said it was a shame that one person could walk away with such a huge amount of money in an area where there was such poverty and underdevelopment. Kunabe said the chief had refused to discuss payout used the community’s money for himself rather than the wider group— and government had done nothing to stop him. Though the area has been mined for 30 years, he said there was little sign that the community has really benefited. “All we read about is that the Bafokeng is the most rich and developed nation,” said Kunabe. “Where is development when you still have people living in mud houses and even corrugated iron structures? “If indeed all was good and there was harmony in the Bafokeng why do we have a pending court case?” Kunabe said the chief often arrived in a helicopter, then went back to sleep in Sandton, leaving behind scraps. “Animal Farm is very much alive here,” Kunabe said. He said the people were not allowed to embark on protest marches to raise their concerns. “We have complained to the government, and approached the public protector, but no one is looking into our plight. The law applies selectively in this country. While everybody is focusing on Marikana, I foresee a big revolution here. The recent five-month strike is just the tip of an iceberg.” One local businessman, who didn’t want to be named, said: “You must remember that when the contract was entered into, there was nothing in the Bafokeng coffers. By the time Niall resigned, it had grown to about R30-billion and the agreed percentage of the contract became too big as well, which raised the ire of the people.” Part of the problem, he said, was that the chief had not consulted everybody before doing the deal with Carroll. “Had he consulted widely, there wouldn’t be all this noise. Yes, the issue was discussed at the supreme council, and the emotions were high. “I am a businessman. If we cut a deal with a person and set ourselves certain performance standards, I will certainly honour the contract. “But now with the Niall Carroll issue nobody knows the targets and the mechanisms used to reach such a deal,” he said. He put the possibility of retrenchment down to “poor management”. “If you have a balanced portfolio, that will never happen. This is just a matter of poor management. Yes, the strike has had an impact on local business because mines employees bring us business,” he said. Another community member said the Bafokeng did have a good story to tell. “For example, we have schools, healthcare facilities and social amenities that were built through our coffers. The government never did anything, and I am talking about very good schools here built by the Bafokeng,” he said. But he claimed that mining companies were using the tribe to claim points for black empowerment. “They use us to get BEE points and compliance with the mining legislation. “We don’t have local procurement enforcement. They will make a profit for about R2-billion and leave behind R100 000 for an HIV/Aids project for example. “The chief needs to wake up to that reality.” RBN is a traditional community often likened to an oil-rich Middle East kingdom. It has about 300 000 people and controls about 1 400km² of mineral rich land in the western limb of the Bushveld Igneous Complex, which has estimated 71% of the world’s known platinum reserves. All the big mining companies, such as Angloplat, Implats, Aquarius, Lanxess and Xstrata have operations there. Comment on this: write to [email protected] or SMS us at 33971 timeslive.co.za
Posted on: Sun, 17 Aug 2014 06:30:45 +0000
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