June 21, 2013.
From Creamer Media in Johannesburg, I’m Motshabi Hoaeane.
Making headlines:
A report by the Financial Service Board reveals that Cosatu general secretary Zwelinzima Vavi covered up corruption.
The proposed Broad Based Black Economic Empowerment Amendment Bill seeks to tackle fronting.
And, Guinea's opposition leader suspends talks with government.
A South African newspaper reported on Friday that Cosatu general secretary Zwelinzima Vavi allegedly covered up a report on apparent corruption involving Cosatu’s investment company to protect his ally.
The report by the Financial Service Board (or FSB) apparently found cases of corruption, fraud and money laundering involving the Congress of South African Trade Unions' investment company Kopana ke Matla and Westside Financial Services.
The newspaper said two sources with insight into the report had confirmed that Kopana ke Matla conducted financial advisory services without approval in terms of the Financial Advisory and Intermediary Services Act.
One Cosatu leader said the report recommended the matter be reported to the Hawks for criminal investigation but Vavi did nothing about it. According to the newspaper, Vavi and Kopana ke Matla CEO Matjilla were close allies and Vavi covered up the report to keep him safe.
Trade and Industry Minister Rob Davies said on Thursday that the level of black economic empowerment in the economy remains extremely modest, compelling government to change the law. Briefing journalists ahead of a parliamentary debate on the Broad Based Black Economic Empowerment (or BBBEE) Amendment Bill, Davies said the proposed law aimed to plug gaps in the current legislation.
The new bill provides for stiff fines for companies and their owners who lie about empowerment credentials. The amendment bill provides a statutory definition of fronting and seeks to establish a dedicated institution to deal with the practice.
There were a few cases where companies were convicted of fraud because of fronting. However, prosecuting companies under the common law offence of fraud was problematic and protracted as it competed with various other cases in the "criminal domain".
Davies said some of fronting is embedded in contracts where people are given discounted voting rights on boards, or positions on boards which are public relations orientated rather than contributing to the natural direction of the company. If convicted in court, the company could face a fine of 10% of its turnover, or the person responsible for misrepresenting the BEE status could go to jail for up to 10 years.
Guinea's main opposition leader on has pulled out of UN-mediated election talks with the government, accusing police and youths of attacking him and his supporters. The negotiations aimed to secure opposition participation in long-delayed elections that were meant to seal the mineral-rich nation's transition to civilian rule following a coup in 2008.
UFDG party head, Cellou Dalein Diallo, said he and his supporters were attacked by stone-throwing youths and police near his home in the capital Conakry on Wednesday. The opposition said 17 people were injured in the clashes.
The UFDG said it would suspend its participation in the dialogue. However, the government said the violence had been provoked by youths from Diallo's own neighbourhood. Other members of the opposition coalition said they would meet to decide whether to follow Diallo's lead and withdraw from the negotiations.
Also making headlines:
The Department of Environmental Affairs says a draft monitoring and evaluation system is expected to be finalised by the end of the year.
Free Market Foundation executive director Leon Louw says a lack of individual property rights is holding back South Africa’s economic growth.
And, Somali Islamists threaten more carnage after a deadly attack on a UN base in Mogadishu.
That's a roundup of news making headlines today.