Thursday, October 19, 2017

Highlights of Xi's Report to 19th CPC National Congress
2017/10/18 15:44:08

Xi Jinping delivered a report to the opening of the 19th National Congress of the Communist Party of China (CPC) on Wednesday. The following are the highlights of the report:


Socialism with Chinese characteristics has entered a new era.

The CPC has given shape to the Thought on Socialism with Chinese Characteristics for a New Era, a long-term guide to action that the Party must adhere to and develop.

The Thought builds on and further enriches Marxism-Leninism, Mao Zedong Thought, Deng Xiaoping Theory, the Theory of Three Represents, and the Scientific Outlook on Development. It represents the latest achievement in adapting Marxism to the Chinese context.


The CPC has drawn up a two-stage development plan for the period from 2020 to the middle of the 21st century to develop China into a "great modern socialist country."

In the first stage from 2020 to 2035, the CPC will build on the foundation created by the moderately prosperous society with a further 15 years of hard work to see that socialist modernization is basically realized.

In the second stage from 2035 to the middle of the 21st century, the CPC will, building on having basically achieved modernization, work hard for a further 15 years and develop China into a great modern socialist country that is prosperous, strong, democratic, culturally advanced, harmonious, and beautiful.

The principal contradiction facing Chinese society has evolved to be that between unbalanced and inadequate development and the people's ever-growing needs for a better life.

Now the needs to be met for the people to live a better life are increasingly broad. Not only have their material and cultural needs grown, their demands for democracy, rule of law, fairness and justice, security, and a better environment are increasing.


China's economy has been transitioning from a phase of rapid growth to a stage of high-quality development.

In developing a modernized economy, the country must focus on the real economy. China will support state capital in becoming stronger, doing better, and growing bigger, turn Chinese enterprises into world-class, globally competitive firms.

China will leverage the fundamental role of consumption in promoting economic growth and improve the framework of regulation underpinned by monetary policy and macro-prudential policy, and see that interest rates and exchange rates become more market-based.


China will not close its door to the world; it will only become more and more open.

China will implement the system of pre-establishment national treatment plus a negative list across the board.

China will significantly ease market access and protect the legitimate rights and interests of foreign investors.


The CPC will set up a central leading group for advancing law-based governance in all areas.

It will strengthen oversight to ensure compliance with the Constitution, advance constitutionality review, and safeguard the authority of the Constitution.


The CPC has incorporated Beautiful China into its two-stage development plan for building a great modern socialist country.

The modernization is one characterized by harmonious coexistence between man and nature.

China will establish regulatory agencies to manage state-owned natural resource assets and monitor natural ecosystems, and develop a nature reserves system composed mainly of national parks.


By the year 2020, military mechanization will be basically achieved, with IT application coming a long way and strategic capabilities seeing a big improvement. The modernization of the national defense and armed forces should be basically completed by 2035.

The people's armed forces will be transformed into world-class military by the mid-21st century.


No matter what stage of development it reaches, China will never seek hegemony or engage in expansion.


Having gained overwhelming momentum in its fight against corruption, the Party is determined to secure a sweeping victory over the greatest threat to the Party. 
What Western Observers Get Wrong in Assessing China
By Li Qiaoyi
Global Times
2017/10/18 23:28:39

Editor's Note: China's "four great new inventions" - high-speed trains, e-commerce, mobile payments and shared bikes - have drawn global attention. But there are widespread misconceptions about the world's second-largest economy. Yukon Huang (Huang), a senior fellow at the Carnegie Endowment for International Peace (CEIP) and a former World Bank country director for China, recently visited Beijing to discuss his book Cracking the China Conundrum: Why Conventional Economic Wisdom is Wrong. On Monday, just ahead of the start of the 19th National Congress of the Communist Party of China (CPC) on Wednesday, he spoke with Global Times reporter Li Qiaoyi (GT) in an exclusive interview.

GT: What is the importance of the 19th CPC National Congress in steering the growth of China's economy?

Huang: Western observers focus on the composition of the standing committee. I'm interested in policy changes, which will influence the lives of the people. China needs a transformative leadership to move the country forward, to have the system evolve in a way that's right for a new era. That means strengthening institutions and human capital while changing the structure of the economy.

China is no longer a low-income country. It's upper middle-income country, and the structure of the economy is different. Services now account for the majority of the economy, which in the past was almost all manufacturing. Policies for a services-driven economy are quite different from those needed for an industrialization-driven economy. The statement released after the Third Plenary Session of the 18th CPC Central Committee in November 2013 said the markets should be decisive in allocating resources, but the State should play a leading role in the economy.

Some people see this as a contradiction. I disagree. You can have both principles at work. The government has recognized this, and it needs to be done in a situation where the State has a leading role and determines priorities. This country needs to be clear what it means by these two points. Look at what's happening in e-commerce, Internet activity in China: the State is not much involved, but the private sector is very creative and dynamic, doing things that are even more advanced than in Europe and the US. The State has given them opportunities to flourish. This is what I call good collaboration between the State and the private sector. In areas where private entrepreneurs are not likely to go in because of risks or costs, it's quite appropriate for the State to give support.

GT: What is the biggest misconception about China's economy? 

Huang: There are many aspects of China's economy that observers in the West focus on. One of them is its growth model and people have been writing for years that China's growth is unbalanced. By that they mean consumption as a share of GDP is very low, 35 percent to 36 percent of GDP. They have said China needs to rebalance, to consume more and invest less, particularly if it wants to become a high-income economy. This view is almost universally accepted by Western and Chinese observers. They're both wrong.

Unbalanced growth is actually the consequence of a very dynamic growth process. Unbalanced growth in China only emerged around 2000, when the consumption share began to fall while the investment share increased. Unbalanced growth is a result of workers moving from rural areas to urban areas, from jobs in agriculture and into factories or urban services jobs. They are moving from labor-intensive jobs to ones that are capital-intensive. This automatically causes consumption as a share of GDP to decline. That doesn't mean consumption is stagnant. It is actually growing very rapidly. I call this the consumption paradox: the consumption share of GDP falls, but consumption per person or household actually increases rapidly. In China, the average Chinese citizen's consumption over the past 15 years has been increasing by about 10 percent a year, the highest in the world.

GT: China's debt is different, according to your book, which is as much a fiscal problem as a banking issue. What are effective ways to address the debt problem and why isn't a debt crisis plausible in China?

Huang: We do not have a valid analytic system to examine China's economy, because it's different. It's neither a market economy nor a State-driven economy. It's actually something in the middle, and it's unique. China's economy is different from those in the West, because not only does it have companies, firms, State companies and private companies, but local governments that have an involvement in the economy. People worry about debt expansion in China. In the West, when debt increases so dramatically, it's usually a sign of potential financial problems. But that increase in China may not be a problem.

China's debt level has surChina's debt level has surged, and it needs to be carefully managed. But I do not expect a crash. A lot of credit has been financing the increased value of land and property and 15 years ago, you did not know what the value of the property was, because you couldn't buy or sell it. If these property values are stable, the increase in credit is not an issue. It will only be an issue if these properties are overvalued and there's a bubble, a crash. Property prices in China are probably reasonably okay, which means there isn't a major debt problem. Do banks need to be better managed, regulated? Yes. You need to continue financial reform, but that doesn't' mean you will have a financial crisis. That's another area of misunderstanding.

GT: How do you evaluate efforts by the central government and local governments to curb housing prices in China?

Huang: Let's look at the situation 15 years ago. There was virtually no private property market. Everyone lived in an apartment that was provided by their employer or the government, but now most Chinese people live in homes that they own, and many people in urban areas own multiple homes. It's become a source of investment along with a place to live. Is this good or bad? First, it's normal for people to own property as an investment. In other countries, many people own multiple properties or even entire apartment buildings. What's missing in China is a rental market.

The second question is, should Chinese be allowed to buy property overseas? The answer is yes. Every prosperous country, household, or company invests everywhere to spread risks. The Chinese have lots of wealth and assets today, and it does not make sense for them to invest only in China.

GT: You argue in the book that few people know that prices in Chinese megacities are actually much lower than in India. How is that?

Huang: This is very strange, because the Indian people's income is only one-third of Chinese people's but property prices there are higher. This means something is wrong in the Indian economy. If we look at China in the past 20-30 years, we see rapid urbanization. Just 30 years ago China was 20 percent urban, now it is 57 percent. As these people move, they get better jobs, their incomes rise, they consume more and China grows fast. In India, during the same period, the urbanization rate didn't change.

That's a bad sign, because people in rural areas have lower productivity, and they're not moving cities to get more productive jobs. That's part of the reason why India's growth has not been as good as China's. Why are India's urban housing prices so high? Because so much land is set aside for other purposes. It's not the case in Beijing or Shanghai.

GT: Is it time to accelerate China's financial reforms?

Huang: Financial reforms have stages and phases. You have to figure out when you liberalize and allow people to move money in and out, how you will allow the exchange rate to become more flexible. China realizes that if it's done too quickly, it'll create problems. I think the sequence is very important. China wants to internationalize the yuan. But I am a bit critical of this reformist drive, because to have a fully internationalized yuan, the country essentially lets the exchange rate be fully flexible and funds move at will. But China's financial system isn't strong enough. The government's actually slowed down a little bit, and my own view is this is sensible.

GT: What are the relative positions of China and the US? Will China eventually overtake the US?

Huang: If you ask Americans, who's the world leading economic power? They say China. If you ask Chinese, they say the US. Who's right? In this case, the Chinese, because the US is the world's leading economic power, as defined by per capita GDP, the strength of institutions and the human capital education base. China is catching up fast, but it's still far behind. Why is this confusion a problem? Because it arises when the US and China talk about policies. US policymakers have the wrong ideas, which lead to wrong policies.

If China grows 6.5 percent per year, and the US grows at most 1.5 percent, within the next decade, China will have the largest economy. It's already the largest economy if you use purchasing power standards, but it would be the largest economy even by the market exchange rate. But it will be many, many decades before China's per capita GDP comes close to the US.

A country's strength doesn't lie strictly in such measures. It's the institutions, human capital - whether people are well-fed, well-educated, have a comfortable life. China realizes this when it talks about a prosperous society. The question is what China can do to strengthen its institutions and increase its human capital base. If you look at China's budget, at the local level and the central levels, it's much smaller than you would expect. China needs to reform its fiscal system to provide more funding for this purpose.
China’s Destiny on Track With Global Prosperity
Global Times
2017/10/18 23:53:39

Starting Saturday for three consecutive days, US Discovery Channel Asia began to air the documentary China: Time of Xi.

I caught the third episode titled All Aboard.

This episode focuses on how the Chinese dream aligns with the ideals held by the rest of the world. This new vision that China has brought to the world stage over the past five years is ushering in a new and exciting period for humanity.

During the past five years of Chinese President Xi Jinping's leadership, we have seen the destiny of China and of the world converging. The world has been eager to know the impact of China's rise on human civilization and the global economy and how this impact will affect the life and work of peoples all over the world.

Through many vivid stories, the documentary tells how China and the world are jointly developing, bringing the audience's interest in China's rise to the storyline.

The story in the third episode actually begins in Kenya. Many Western viewers can still remember the railway that British colonialists built a century ago. The railway was the "lifeblood" for the British Empire, but Kenyans believed it to be an "iron snake." While this iron snake enriched and strengthened the British Empire, it sucked the lifeblood out of Kenya as it became increasingly poor.

Today, the Kenyan people have a newly built high-speed train funded by Chinese companies. In parallel with the now dilapidated British-built line, this new route connects the coastal city of Mombasa with the capital city of Nairobi.

This new railway will certainly bring new vitality to Kenya and the region beyond. As shown in this episode of the documentary, the railway project is a good example of a perfect combination between infrastructure and technical training. Along its route it connects all key economic development zones and lays in its wake the foundation for the industrialization of a booming developing economy.

From Kenya to Italy, the episode takes the viewers to Venice, the starting point of the ancient Silk Road. The film calls Venice "Shanghai 500 years ago," outlining the dramatic developmental change that Shanghai and the rest of China have undergone over the recent centuries.

Venice, an ancient European town which prospered thanks to the Silk Road 500 years ago, is reviving its ports via China's Belt and Road initiative. In the story, you learn how Venice is building new ports with Chinese investment, and you can see the dynamism and extent of the Belt and Road initiative.

We then see a freight train that is running across the Eurasian continent bring two ordinary families from Spain and the Chinese city of Yiwu together. We witness how Spain's famous high-quality wines are brought into the Chinese market.

This story shows that it is the drive for common prosperity that unites us all. The freight trains from China to Europe not only carry dreams of peaceful development, but also aspirations for cooperation, which was rarely seen in the past 500 years.

The last part of the episode features Chinese acupuncture and the Chinese lute. They remind the audience of the energetic Chinese civilization. It implies that the notion of the community of shared destiny raised by Xi not only means that China and the world have begun to communicate and integrate with a new approach that completely differs from that of the West, but also embarks on a new process in which Chinese civilization makes great contributions to world civilization.

As famous British historian Arnold Joseph Toynbee once said, if the Communist Party of China can blaze a new path in its social and economic strategies, then it can prove its capacity to endow a gift on China and the world.

The author is a senior editor with the People's Daily and currently a senior fellow with the Chongyang Institute for Financial Studies at the Renmin University of China. Follow him on Twitter @dinggangchina
China Vows Global Contribution in New Era
Global Times
2017/10/19 0:03:40

The report delivered by Xi Jinping at the opening of the 19th National Congress of the Communist Party of China (CPC) declared that socialism with Chinese characteristics has entered a new era and the CPC has drawn up a two-stage development plan to develop China into a "great modern socialist country" by 2050. What does China in this new era look like to the outside world?

Xi's report offered clues. Apart from being a global leader in composite national strength, China will have world-class armed forces by 2050. Xi emphasized China will not close its door on the world. It will only become more and more open. China will never seek hegemony or engage in expansion. China adheres to peaceful development and is committed to building a community with a shared future for mankind.

This sends a strong message that China in the new era will be a major world power committed to peace and win-win cooperation. China won't take the old, traditional path of a rising power. It won't grow into an empire when it becomes a great modern socialist country. China will avoid confrontation and seek inclusiveness by releasing its influence through the Belt and Road initiative. This initiative for a new era will provide a platform where China and the world can share the benefits of development.

Traditional geopolitical theory suggests that China's rise to become a first-class power will inevitably occur at the cost of other major powers in decline. China is determined to disprove this view. Traditional geopolitics believe in a zero-sum game involving exclusive international political power. But China's history is one of integration. Sharing interests with the rest of the world is the true pursuit of China.

People in the West may not be able to understand a concept of a community with a shared future for mankind for now but the idea is easy enough to get across to Chinese society with its emphasis on the philosophy of harmony. Some new concepts in international politics have emerged, replacing long-existing ideas such as the zero-sum game. The current Sino-US relationship is a major power relationship of a type never seen before. The two countries guard against each other with a trust deficit and constant friction, but they also adapt to each other quickly. Cooperation expands too.

Despite overlapping interests, modern countries, especially major powers, have different core interests, but friction over different interests can be reconciled. With increasing international mechanisms and bilateral communication channels, China and other countries should be able to control their differences.

China has not been involved in a military conflict with other countries for about 30 years. With growing military strength, China is more capable of avoiding war. China will never resort to military coercion and it's increasingly hard for the outside world to challenge China militarily. China is developing into a great modern socialist country using the win-win principle and building its global authority.

China has already taken the path of low-consumption development alongside accelerating technological progress. In fact, the whole world is destined to realize modernization: This is not a zero-sum calculation.

China in the new era will be more powerful to drive forward the global economy and contribute more to addressing problems in Asia and throughout the world. China in the new era will contribute more to the world, safeguarding global peace and prosperity.
Xi’s Speech to CPC Congress Offers Crucial Insights Into China’s Direction, Global Role
By Hu Weijia
Global Times
2017/10/18 22:33:39

The speech by General Secretary of the Communist Party of China (CPC) Central Committee Xi Jinping delivered Wednesday at the opening session of 19th CPC National Congress aroused heated discussion at a time when the world is eager to know how changes in China will affect the global economy.

Nearly a decade after the global financial crisis, the world economy is still struggling to regain momentum because the role of the US, Japan and some other high-income countries as the growth engines of the world has been weakened. India's economic success in recent years has attracted a lot of attention but the nation still has a long way to go to become a driving force for the massive global economy. In this scenario, ensuring China can achieve a GDP growth rate of more than 6.5 percent is an issue of great importance to the global economy. Since 2013, China has contributed about 30 percent on average of annual global GDP growth, more than the total of the US, the eurozone and Japan. This has been a hard-won achievement for China when more importance was attached to its own economic transition. Now China has become a more active player on the international economic stage, with its Belt and Road initiative bringing new momentum to development in numerous developing countries and regions.

Xi's speech gave people a wealth of information. The world's second-largest economy will further open up and deepen financial reforms to guarantee sustainable growth. Despite increased uncertainty about global growth prospects, China's economy is set to grow about 6.8 percent year-on-year in the second half of the year. Xi said Wednesday that the CPC will lead the country to basically realize socialist modernization by 2035. With vigorous reform measures expected to be implemented following the Party Congress, China is on track to achieve a raft of economic goals, and this will be good news for not only the country but also the whole world.

The author is a reporter with the Global Times.
Xi Says China to Basically Realize Socialist Modernization by 2035
2017/10/18 13:27:03

Xi Jinping said Wednesday that the Communist Party of China (CPC) will lead the country to basically realize socialist modernization by 2035.

Xi made the remarks in a report to the 19th CPC National Congress in the Great Hall of the People in central Beijing.

This is the first stage of a two-stage development plan that the CPC drew up for the period from 2020 to the middle of the 21st century.

Xi called the plan the CPC's "strategic vision for developing socialism with Chinese characteristics in the new era."

The period between now and 2020 will be decisive in finishing the building of a moderately prosperous society in all respects, Xi said.

Building on this, China will see the basic realization of socialist modernization by 2035 after 15 years of hard work, he told more than 2,300 delegates. 

Wednesday, October 18, 2017

Ramaphosa’s Days in Zuma’s Government Are Numbered, Says His Confidant
Citizen reporter

FILE PICTURE: Deputy president Cyril Ramaphosa and president Jacob Zuma share a lighthearted moment during a youth day event in Tshwane, 16 June 2015. Picture: Refilwe Modise

The deputy president is apparently aware that he might also get the chop soon.

Veteran unionist and a close friend of Deputy President Cyril Ramaphosa, Dr James Motlatsi, said the deputy president was next in line to be removed from President Jacob Zuma’s government, according to information they received.

Motlatsi said in an interview with eNCA on Tuesday that Ramaphosa would be axed the same way as former finance minister Pravin Gordhan and his then deputy, Mcebisi Jonas.

“Let me say to you, unconfirmed reports are saying that [this will happen] very soon. I think, this item, Cyril even raised it in a meeting. We have been told by other people that the president himself, he is saying Cyril is a spy of Western capitalists, so we are waiting for that intelligence report to come out from him,” Motlatsi said.

However, Motlatsi said Ramaphosa must fight, as people elected him to that position.

“People must be able to know that he is fighting corruption, not talking about fighting corruption. He must be able to be pushed out fighting corruption,” he added.

Zuma shocked South Africans on Tuesday after announcing another Cabinet reshuffle that saw Blade Nzimande being axed as higher education and training minister.

These are the new appointments Zuma made to Cabinet:

Hlengiwe Mkhize is the Minister of Higher Education and Training
Ayanda Dlodlo is the Minister of Home Affairs
Mmamaloko Kubayi is the Minister of Communications
David Mahlobo is the Minister of Energy
Bongani Thomas Bongo is the Minister of State Security
Buti Manamela is the Deputy Minister of Higher Education and Training
ANCYL 'Utterly Disturbed' by Criticisms of Cabinet Reshuffle
2017-10-18 16:11
Jan Gerber
Mlondi Mkhize. (File, Gallo Images)

Cape Town – In the aftermath of the latest Cabinet reshuffle by "His Excellency President Jacob Zuma", the ANC Youth League has lashed out at ANC secretary general Gwede Mantashe and welcomed the removal of SACP secretary general Blade Nzimande.

Mantashe is believed to back Deputy President Cyril Ramaphosa to take over from Zuma.

"The African National Congress Youth League has noted the Cabinet reshuffle, as done by the His Excellency President Jacob Zuma," starts ANCYL spokesperson Mlondi Mkhize's statement issued on Wednesday.

Mkhize says the ANCYL "comprehends this reshuffle to be informed by the assessment of the work performed by various departments".

"Secondly, the ANCYL receives this reshuffle against the background that the ministry of higher education and training did not have a deputy in the ministry."

Nzimande has been replaced with Hlengiwe Mkhize, with Buti Manamela moved from deputy minister in the presidency to deputy minister of education. The latter post was left vacant after Mduduzi Manana resigned amid controversy after assaulting a woman.

"The ANCYL welcomes these effected changes with high hope that the new minister and deputy minister will help speed up the process of free education for the poor and the needy," said Mkhize.

He said the ANCYL called on those aggrieved by the reshuffle to "stop passing mischievous comments" and attempting to drive a wedge between "His Excellency" and the SACP.

"The ANC remains the only organisation that deploys its members, leadership and cadres to various institutions of government and therefore no one should think that the His Excellency has offended a component of the alliance. Dr Bonginkosi Nzimade [sic] is deployed by the ANC, no one else."

Youth League 'utterly disturbed'

"If His Excellency was fighting with leaders of the SACP, cdes [comrades] like Buti Manamela, Thulas Nxesi, Senzeni Zokwana, Jeff Radebe, Jeremy Cronin, and Ben Martins, amongst others, would have been recalled," said Mkhize.

He said first deputy general secretary of the SACP, Solly Mapaila, was not helping the alliance.

"It is perpetuating differences and making the vanguard party to be viewed and be treated like a cde Dr Blade entity and vanguard for him, not the working class," said Mkhize.

The SACP's reaction to the Cabinet reshuffle on Tuesday was that it had been engineered to get rid of Nzimande, and that it is taking the tripartite alliance to a breaking point.

Mantashe said on Tuesday that the ANC's top six were "informed" that Zuma would reshuffle the Cabinet.

Constitutionally, Zuma has the prerogative to reshuffle his Cabinet, but the ANC expects him to consult with its leadership and the alliance partners.

Mantashe's "apolitical utterances [sic]" had left the ANCYL "utterly disturbed", Mkhize said.

"The SG tacitly insinuates that the officials were not consulted. By so doing, the SG is directly casting aspersions on President Zuma as being non-consultative.

"It is a known fact that 2017 is a silly-season, we therefore request the SG, as the engine of the organisation, to own up to the decisions of the officials and not to allow himself to be caught in the succession race politics, thereby compromising the integrity of the very important office of the secretary general," Mkhize said.
Rand Stable After Losing Ground Following Cabinet Reshuffle
By Tiso Blackstar Group
October 18, 2017018

The rand was relatively calm on Wednesday morning‚ a day after President Jacob Zuma shook up his executive‚ in a surprise move that unsettled the markets.

The rand lost ground in the immediate aftermath of yet another Cabinet reshuffle‚ which revived concern about local political risks.

In March‚ Zuma fired Pravin Gordhan as finance minister under controversial circumstances. The move at the time knocked business and investor sentiment‚ leading to a downward revision in economic growth forecasts.

The latest Cabinet changes come just days before Finance Minister Malusi Gigaba is due to table the medium-term budget policy statement‚ which some were hoping could help restore business confidence.

The rand was little changed in early trade at R13.40/$‚ suggesting that markets had adopted a wait-and-see attitude as the political developments play out.

“The Cabinet reshuffle helped spur our long-expected rand correction. Some rand premium relative to other risk currencies still exists but we would be cautious against expecting ongoing losses‚” said Rand Merchant Bank currency strategist John Cairns.

At 9.30am‚ the rand was at R13.4028 to the dollar from R13.3927.

It was at R15.7687 to the euro from R15.7621 and at R17.6654 to the pound from R17.6569.

The euro was at $1.1766 from $1.1768.

by Andries Mahlangu -BusinessLIVE
Zuma Cabinet Reshuffle Makes Modest Ripples on JSE
Oct 18 2017 14:27
David van Rooyen

Johannesburg - President Jacob Zuma’s latest controversial Cabinet reshuffle on Tuesday continued to cause ripples on the JSE on Wednesday morning.

The losses were however modest compared to similar reshuffles in the past, suggesting that the market is taking a breather after the strong run over the past of couple of days which saw the major indices setting new all-time highs.

Zuma’s appointment of David Mahlobo, previous minister of state intelligence, as minister of energy raised concerns that he still wants to push through with the government’s nuclear programme, a move that the country cannot afford.

The news caused the rand to drop sharply on Tuesday and the currency dropped further on Wednesday, but the effect on share prices was more modest.

The rand traded at R13.45 to the dollar on Wednesday, almost 1% weaker than the previous day, but the softer currency did very little for the dual-listed shares which normally rally if the rand is weak.

Analysts say investors might also be moving to the sidelines in anticipation of next week’s medium-term budget. This will give an important indication of how government plans to finance its growing budget deficit, as this could have a big influence on future investment decisions.

All major indices were softer by mid-morning on Wednesday. The All-share index was 0.09% down at 57 883 points at mid-morning, while the Top 40 index traded 0.10% lower at 51 641 points. Both indices lost ground in early trade and then drifted sideways for the rest of the morning.

The Industrial index lost 0.11% in early trade, while the Financial index was 0.08% lower by mid-morning. The Resources index also lost ground and traded 0.11% softer.

Most of the big dual-listed shares on the JSE were moderately softer. Naspers [JSE:NPN] shed 0.52% to R3 249.44 and British American Tobacco [JSE:BTI] was 0.18% lower at R862.97.

Mediclinic [JSE:MEI] lost 1.82% to R112.36, after the group said in a trading statement that the revenue of its businesses in the Middle East dropped 4.% in the first half of the year due to lower volumes. However, it said actions taken are having a positive effect on the business and are laying the foundation for sustainable growth.

Remgro [JSE:REM], Mediclinic’s holding company, was also affected and the share lost 1.94% in morning trade to R223.00.

The exception was Richemont [JSE:CFR] which gained 1.22% to R122.56 after a strong trading report. The group said turnover will be 10% higher for the first half of the year, trading profit 45% up and earnings almost 80% higher than in the first half of the previous year.

Bidvest [JSE:BEI] lost 1.57% to R173.82, but Steinhoff [JSE:SHF] was unchanged at R60.00. Steinhoff’s African subsidiary, Steinhoff Retail Africa [JSE:SRR], continued its strong run and traded 0.80% higher on a new all-time high of R25.20.

Kumba [JSE:KIO] continued its strong run in the resources sector and gained 1.26% to a new 52-week high of R259.12, but most of the commodity giants traded lower. Anglo American [JSE:AGL] lost 0.76% to R258.00 and BHP [JSE:BIL] was 0.05% softer at R250.75. Glencore [JSE:GLN] gained 0.24% to R67.05.
Nzimande's Removal 'Long Overdue' - Limpopo ANCYL
2017-10-17 22:17
Jeanette Chabalala
News 24

Polokwane – The ANC Youth League (ANCYL) in Limpopo has welcomed the removal of former minister of higher education and training Blade Nzimande from Cabinet. 

In a statement on Tuesday, provincial secretary David "Che" Selane said Nzimande's removal was "long overdue".

"The ANCYL in Limpopo believes that Mr Nzimande's presence in Cabinet has not only contributed to the demise of the SACP as a vanguard of the alliance, but has concentrated more selfishly on himself than on his primary mandate (sic)."

News24 reported earlier that Hlengiwe Mkhize, former home affairs minister, had been shifted to the higher education portfolio to replace Nzimande.

The only new addition is the relatively unknown Bongani Thomas Bongo, who was appointed state security minister.

Selane said the ANCYL in Limpopo rejected comments made by the South African Communist Party's (SACP) first deputy general secretary, Solly Mapaila, that Nzimande's removal was an attack on the SACP by President Jacob Zuma.

"The SACP of Solly Mapaila remained silent like a corpse in a mortuary when fellow SACP leaders in Limpopo were treated with disdain under the leadership of a central committee member of the SACP and former provincial chairperson of the SACP, who is the provincial chairperson of the ANC in Limpopo, Cde Stan Mathabatha."
BEF Welcomes Cabinet Reshuffle, Has Full Confidence in New Ministers
2017-10-17 18:53
Amanda Khoza
2017-10-17 17:31

Johannesburg – The Black Empowerment Foundation (BEF) on Tuesday welcomed President Jacob Zuma's Cabinet reshuffle and said it had full confidence in the new ministers.

On Tuesday, Zuma reshuffled his Cabinet for the second time in seven months. While most of the reshuffling involved moving ministers between portfolios, Higher Education and Training Minister Blade Nzimande was axed from the Cabinet.

Nzimande was replaced by former Home Affairs Minister Hlengiwe Mkhize.

"We have confidence in the members who have over the past years demonstrated their commitment to ensure solid service delivery," said BEF spokesperson Zola Qoboshiyane.

"The comrades who have been assigned new responsibilities have always worked within the collective and have displayed impeccable integrity.

"We have no doubt that their deployment will strengthen the national Cabinet and ensure that the ANC, as the ruling party, meets its objectives of the transformation of society."

Nzimande was 'pulling in the wrong direction'

The foundation said the deployment of Mkhize and Buti Manamela as minister of higher education and deputy minister, respectively, would usher in a new era in the education sector.

"While as the BEF we have the utmost respect for Dr Blade Nzimande, we, however, believe that he was pulling in the wrong direction. He invested so much energy in discrediting the president of the Republic of South Africa, Jacob Zuma, instead of dealing with complex challenges facing students.

"The higher education sector remains untransformed, with an unacceptable mismatch between skills produced by institutions of higher learning with what is required by industry and what is needed to grow the economy of the country. The mismanagement of funds by SETAs (sector education and training authorities) happened under Nzimande's watch. The [less] said about him, the better," said Qoboshiyane.

READ: Nzimande's removal regrettable – Higher Education Transformation Network

The foundation also said it was pleased with the deployment of Mmamoloko Kubayi as minister of communications.

"We are confident that the new minister will ensure that the national broadcaster is at the forefront of the restoration of African human values and the promotion of social cohesion."

Qoboshiyane said under Ayanda Dlodlo, the former minister of communication, the Department of Home Affairs was in capable hands.

"We are confident that the new minister will also help transform our international migration policy to ensure, in particular, that we strengthen the solidarity among African people," Qoboshiyane said.  
South African Prof. Mkhize Shifted From Home Affairs to Higher Education Minister
17 October 2017 - 11:53

Former home affairs minister Hlengiwe Mkhize.

As Professor Hlengiwe Mkhize was named the Minister of Higher Education and Training on Tuesday by President Jacob Zuma‚ MPs issued a statement critical of her.

The Select Committee on Social Services expressed its concern that she‚ as the Minister of Home Affairs‚ "has not shared with the Committee the reasons for the suspension of the Director-General".

"While the Committee acknowledges that the Director-General has taken the matter for judicial review and that the matter is between an employer and employee‚ the Committee is of the view that the Minister could have taken the Committee and Parliament into its confidence about the suspension‚ especially as it relates to service delivery.

"This is because the Director-General‚ as the accounting officer according to the Public Finance Management Act‚ is critical to service delivery and governance of the department‚" it said.

Zuma announces cabinet reshuffle

In a shock move on Tuesday morning‚ President Jacob Zuma reshuffled his cabinet‚ swapping around six of his ministers.

Cathy Dlamini‚ the chairperson of the committee‚ said: "The rules of Parliament make provision for Committees to hold close meetings where they deem necessary. This matter could have been handled in this manner if the Minister was reluctant to share the information in an open setting due to the judicial review the Director-General has undertaken."

The committee added it "is hopeful that the Minister will urgently inform the Committee of the reasons for the Director-General’s suspension".

Mkhize was appointed to the home affairs post on March 31 this year.

Her director-general‚ Mkuseli Apleni‚ was expected to challenge his suspension by Mkhize in September‚ in the North Gauteng High Court in Pretoria on Tuesday.

President denies he supports suspension of Apleni

He has argued that Mkhize did not have the authority to suspend him and the grounds she provided were flimsy.

Apleni has argued that critical matters would go unresolved without him at work to manage the department.

Mkhize went on a public tirade in the days after the suspension‚ calling Apleni delusional and saying that his accusations were baseless.
Mantashe says that Zuma's axing of SACP leader Blade Nzimande has worsened what he has described as an alliance at its lowest.

FILE: ANC secretary-general Gwede Mantashe briefing the media. Picture: Kgothatso Mogale/EWN

Clement Manyathela
Eyewitness News

JOHANNESBURG - ANC secretary-general Gwede Mantashe says that President Jacob Zuma's Cabinet reshuffle, which saw Blade Nzimande being axed as Higher Education Minister, will impact negatively on the alliance between the ANC and the SACP.

The president announced his 11th Cabinet reshuffle on Tuesday, which included moving ministers who started new portfolios less than 8 months ago.

Mantashe says that Zuma's axing of SACP leader Blade Nzimande has worsened what he has described as an alliance at its lowest.

He says that the ANC and the SACP were just starting to pull towards each other.

"After about six months we had just had an allaince secretariat meeting to pull it together again and this reshuffling of the general secretary of the party is going to undo some of the work that was done in that meeting.

He says he hopes Nzimande will still be with the party as an MP.

Mantashe described Nzimande's axing as a pity, saying that he is highly regarded in the ANC.
Students at CPUT Welcome Blade Getting the Chop
17 October 2017 - 16:39
Times Live

Blade Nzimande. File photo.
Image: Avusa

Students at the Cape Peninsula University of Technology (CPUT) in Cape Town have waited "a long time" for the firing of Minister of Higher Education‚ Blade Nzimande.

Nominated student representative Sivuyise Nolusu said that they welcomed the decision by President Jacob Zuma to axe Nzimande in his latest cabinet reshuffle on Tuesday.

"We are very happy about Blade Nzimande being fired‚ because the way he was handling things at CPUT in particular was [poor]‚" Nolusu said. "We've been waiting a long time for it to happen. He gave a mandate to the university management to do whatever they wanted to calm the situation at the university‚ including arresting students."

Nolusu was referring to the violent clashes between students‚ private security and police that have plagued CPUT campuses for over a month and resulted in property destruction‚ arson attacks and the arrests of students. Students want management to deal with the issues of financial exclusion of students‚ in-sourcing of workers and the securitisation of campuses.

Last week‚ the university announced an indefinite suspension of activities in order to meet with students over a resolution.

University spokesperson Lauren Kansley said that university management decided to resume classes on Wednesday‚ after they met with students on Saturday for a "good" meeting that ended "positively".

"One of the outcomes was a commitment to the issue of financial exclusions – namely that no academically deserving student will be financially excluded‚" said Kansley.

But on Tuesday‚ workers and students from various campuses met in Woodstock to announce that they would prevent classes from going ahead.

They said that a meeting late on Monday between students‚ members of the SRC‚ the Economic Freedom Fighters (EFF) and the Pan-African Students Movement of Azania (PASMA) had resolved that nominated student representatives should request a sitting of a university assembly before classes could resume.

"We need a fully fledged university assembly‚ where we are going to raise our concerns‚ discuss our problems and resolve them‚" a nominated student representative said.

"We want it to be chaired by an independent mediator and to include all stakeholders‚ including [university] council‚ so that all decisions made there are binding. We would like the university to remain closed until the assembly sits."

CPUT student Tammeryn Links said that students couldn't write exams while armed private security remained on campuses

"Our environment is not conducive [to learning]. There is barbed wire around the campus and only one entrance in and out‚ so my question is what if something happens on campus?"

Kansley said that private security would remain on campus for "as long as they are required".
Cabinet Reshuffle: South African Media Speculates on the New Team Around President Zuma
17 OCT 2017 11:30 (SOUTH AFRICA)

 Photo: The newly installed Minister of Energy David Mahlobo and President Jacob Zuma at the ANC Policy Conference, 5 July 2017, Nasrec.

President Jacob Zuma’s Tuesday Cabinet reshuffle was greeted with almost unanimous concern from quarters unconnected to the ANC. While the axing of Higher Education Minister Blade Nzimande is widely seen as the underlying motive, particular unease also accompanies the move of State Security Minister David Mahlobo to the vexed Energy portfolio. And aside from the specifics of the new appointments, one fact is obvious: it serves nobody’s interests, except the President’s, to have such a rapid turnover of ministers in such key positions. By REBECCA DAVIS.

“It has just proven that Zuma is going to purge anyone who attacks him, or who is in his way to elect a successor,” United Democratic Movement leader Bantu Holomisa told Daily Maverick on Tuesday.

Holomisa was referring specifically to the axing of Higher Education Minister and South African Communist Party general secretary Blade Nzimande, with Nzimande having been an increasingly vocal critic of Zuma in recent months.

“It is clear that the relationship between Zuma and Blade [Nzimande] has broken completely,” Holomisa added.

His view was reiterated by numerous opposition party politicians following Tuesday’s Cabinet reshuffle. The DA’s Mmusi Maimane characterised the shuffle as “the latest move in Zuma’s war against anyone who opposes his project of State Capture”.

“We know that Blade [Nzimande] has been a thorn in the flesh [of Zuma], especially with the SACP,” the Inkatha Freedom Party’s Narend Singh told Daily Maverick, while Freedom Front Plus leader Pieter Groenewald described the shuffle as “revenge on the SACP”.

This line of thinking was voiced most forcefully by the SACP itself, with deputy general secretary Solly Mapaila terming Nzimande’s removal as “an attack on the SACP”.

Not everyone was shedding tears for Nzimande, however. Deputy leader of the Congress of the People (Cope) Willie Madisha told Daily Maverick that Nzimande’s ousting was “history repeating itself”.

Said Madisha: “What is being done to [Nzimande] now is exactly what he did to Thabo Mbeki 11 years ago, [Nzimande] was together with his friends, including Zuma, mobilising against Thabo Mbeki.”

Madisha has some skin in this game: he was booted out of the SACP in 2008 following a dispute between him and Nzimande over a R500,000 donation which Madisha claimed he handed to Nzimande, who denied ever seeing the money.

In the immediate aftermath of the shuffle, the emphasis of analysis was placed on the possible implications of Nzimande’s sacking for alliance politics, with little time for reflection on Nzimande’s term as Higher Education Minister.

The DA’s shadow education minister Belinda Bozzoli told Daily Maverick: “Blade has run out of steam and I would suspect is probably quite relieved.”

She suggested that his tenure as Higher Education Minister will probably be largely remembered for the #FeesMustFall unrest.

“He was warned by many people, including me, of the risks of not increasing government subsidies [for universities] over the years and brushed those aside,” Bozzoli said. “His is not a great legacy, but on the other hand he has overseen a relatively stable department, certainly not riddled with corruption. By the ANC’s low standards, he’s done a reasonable job.”

His replacement in the Higher Education portfolio is Hlengiwe Mkhize, who has been Home Affairs Minister for the last six months. With the government’s report on student fees yet to be released, Mkhize takes on an unenviable role at a difficult time.

“I don’t think Mkhize has got any oomph rather than just academic qualifications,” the UDM’s Holomisa said.

The IFP’s Narend Singh voiced the hope that Mkhize’s academic background – she holds higher degrees in Psychology – would at least stand her in good stead in her new position.

Bozzoli pointed out that Mkhize has been the chair of the board of the University of Zululand during an extremely troubled time for the university, which has seen the institution put into administration twice.

Overshadowing the movement of Mkhize, however, was the transfer of State Security Minister David Mahlobo to the Energy portfolio.

Reflecting on Mahlobo’s time at the State Security Agency, Right2Know’s Murray Hunter told Daily Maverick: “In three years, Mahlobo went from being a little-known Mpumalanga MEC to being one of Zuma’s most prominent allies. During that time, we saw a dangerous creep of state security into our politics and public life: serious allegations of a rogue SSA unit targeting rival politicians, the use of SSA slush funds to set up a bogus union, and the rise of paranoid accusations of ‘regime change’ against critics of the government.”

It is Mahlobo who is now being handed the reins to one of South Africa’s most important government departments.

“There is speculation of course that moving Mahlobo from where he was was occasioned by the fact that [Zuma] might want to send him to Russia now and again,” said Holomisa – a reference to the nuclear deal with Russia that President Zuma is said to be desperate to conclude before the end of his term in office.

Makoma Lekalakala, an activist from the anti-nuclear group Earthlife, told Daily Maverick that the shifting of Mahlobo to Energy may be read as a sign that “the project of nuclear expansion has got to happen, through thick and thin”. She said the group would be scrutinising matters around nuclear very closely.

Mahlobo’s replacement in the State Security portfolio is Bongani Bongo, a relatively low-profile ANC MP.

“What is of significance is that [Bongo] is from Mpumalanga,” suggested the FF+’s Groenewald. Mpumalanga is shaping up as a critical province in the ANC’s leadership race, because it will send the second greatest number of delegates to the December electoral congress.

Groenewald also points out that Bongo has been deployed by the ANC to sit on a number of ad hoc Parliamentary commitees – including those looking into the selection of the public protector and the funding of political parties – which Groenewald interprets as a sign that Bongo is happy to do Zuma’s bidding.

Zuma’s appointment of a new Communications Minister, in the form of Mmamoloko Kubayi, came on the same day as a court ruling set to curtail that minister’s powers in future. The case was brought by Media Monitoring Africa, which argued that the ability of the Communications Minister to have the final say in appointing senior executives at the SABC radically undermined the power of the SABC board. On Tuesday, the courts agreed.

“It’s a massive, massive gain,” Media Monitoring Africa’s William Bird told Daily Maverick. “Go back through all these [SABC] crises over the last decade and you’ll see ministerial interference has been one of the biggest challenges.”

Bird’s enthusiasm over the court ruling was tempered by the news of the new Communications Minister – the seventh one in seven years.

“It’s just extraordinary that the communications sector can be treated with such contempt that (ministers) can be changed in this manner,” Bird said. He charged that the rapid turnover of ministers is a “deliberate strategy to create overriding chaos – to make sure the SABC is in the state that it’s in, and push through other deals”.

Possibly the most surprising aspect of Tuesday’s reshuffle, however, was the fact that presidential contender Nkosazana Dlamini Zuma did not emerge with a ministerial post – as had been widely speculated would happen in order to strengthen her hand in her leadership bid.

“Nkosazana Dlamini Zuma is not stupid,” was Holomisa’s comment on the matter. “She has been at pains to try and be seen as herself, and not as a lackey of Zuma.”

Groenewald suggested that there was still time for Zuma to act to promote Dlamini Zuma. “It is not impossible that in November, Zuma can replace Cyril Ramaphosa as deputy president [with Dlamini Zuma],” he speculated.

From some of those within the ANC, a positive spin was put on the day’s events.

“The replacement of comrade Blade Nzimande is long overdue,” stated the Western Cape’s ANC Youth League. ”It has been clear for some time that he was distracted by the SACP’s debate on whether it should participate in the 2019 general election from driving the ANC’s agenda of free higher education.”

The ANC branch also commended President Zuma on the appointment of Buti Manamela as Deputy Minister of Higher Education, as “yet another indication that a younger crop of leaders are being given greater responsibility in the state”.

Its statement concluded with a call to Cabinet members to “not allow themselves to be used as cannon fodder in the run-up to the conference in December”.

With the new appointments seemingly motivated in large part by narrow political interests, that may be easier said than done. DM
SACP Red October Campaign 2017 Launching Statement as Delivered by General Secretary Cde Blade Nzimande
8 October 2017, Johannesburg City Hall

If left unchecked, violence in our communities, in the economy and society at large will plunge our nation into deeper crisis. The problem includes contact crimes, killings/murder and attempted murder, common assault and assault with grievous bodily harm, common robbery and sexual violations. Subtle forms of violence include emotional and verbal violence. All members of society, regardless of sex and age are exposed to the problem of violence. Violence is, according to authoritative statistics and police dockets, very high in metropolitan areas. Unreported instances or cases of violence make it very difficult to quantify the full extent of violence in our country.

Nevertheless, according to a report presented to Parliament in March by the South African Police Service (SAPS), covering nine months from April to December 2016, Gauteng could be described as the capital of South Africa`s contact crimes. The province accounted for more contact crimes compared to other provinces. The Western Cape was second to Gauteng. KZN was the third after Western Cape and Eastern Cape the fourth after Western Cape.

Gauteng Province was also leading in murder cases at 3, 057, followed, second to it, very closely by KZN at 3, 027. The Eastern Cape was the third after KZN in murder cases at 2, 831 while the Western Cape was the fourth after the Eastern Cape at 2, 481 cases of murder.

In politics, the province of KZN is the centre of criminal killings used to further political ends, the so-called political killings. The SACP has suffered major losses in this regard as the first, major target. The SACP called on the relevant authorities to act against the political killings, but our call appeared to have fallen on deaf ears until the violence expanded.

In the broader economy, there are industries where, violence comes across as a means of resolving conflicts, relating to consumers, or as part of organising and competition strategies. This is clearly visible in the taxi industry and is one of the serious problems in the mining industry as evidenced in, but not exclusively, the Rustenburg platinum belt.

As part of the problem of violence, sexual and gender-based violence is not only to be found in the household or residential areas. It is to be found also in industry. Females are the majority on the receiving end of sexual violations, gender-based violence and men who use their positions of authority at work to impose their sexual desires on women, either using subtle or crude forms of violence.

Very recently, Statistics South Africa released a report showing that sex crimes have increased. We must bring this problem to an end and create a society in which everybody regardless of sex, sexual orientation and age is safe!

Although there is little that has been achieved and the problem persists, the triple crisis of racialised, gendered and spatial inequality, unemployment and poverty has received more attention in social mobilisation than the prevailing problem of violence in our society. In addition, there is visible social mobilisation against corruption and state capture. We must intensify our mobilisation to radically reduce and address economic inequality, unemployment, poverty, corruption and corporate state capture. However, we must, at the same time deepen the struggle against violence and pay more attention to gender-based violence in all spheres of societal activity.

It was in this cintext, taking this call of duty into account, that at our 14th Party Congress in July we resolved that our annual Red October Campaign, the one we are launching today, must focus on building and strengthening social mobilisation towards eliminating gender-based violence in particular and violence in general. We therefore resolved to include insecurity as a result of crime and violence in our communities, industry and society at large as the fourth scourge facing our people and democracy in addition to the triple crisis of inequality, poverty and unemployment as well as corruption and state capture.

Violence against women, children, and the lesbian, gay, bisexual, trans- and/or intersex (LGBTI) community must be brought to an end. The extent of domestic violence, abuse of women, sexual harassment, including rape and other sexual assaults, and femicide require a focused campaign to uproot this scourge and re-instate the safety of women and LGBT is in our society. We must, in this regard, pay equal attention to ensuring the safety of children, both females and males, as well as people with Albinism.

Elimination of gender-based violence and child abuse require cross-cutting mobilisation of the nation as a whole. At our Congress we resolved to forge the broadest possible patriotic front to defend and deepen our democracy and a Popular Left Front of forces to defend, advance and deepen our revolution. We need to build, as part of the strategy, a front to eliminate gender-based violence. To this end the SACP convened a consultative meeting last month attended by representatives of progressive NGOs with a focus on achieving gender transformation.

The meeting was also attended by representatives from SAPS and the National Prosecuting Authority. The participants provided invaluable inputs, as well as educational guidance. On behalf of the Party I would like to take this opportunity to thank all the participants who attended the meeting. The SACP will deepen the engagements and the programme towards building a mass movement against gender-based violence, against child abuse and against abuse of LGBTIs.

We need to deepen social mobilisation to ensure effective prevention of violence by communities, the government and all relevant state authorities alike. This includes ensuring the provision of services and support to survivors or victims of gender based-violence by communities, progressive NGOs and the government, and the investigation, prosecution, sentencing and rehabilitation of perpetrators by the criminal justice system.

Given that patriarchy and its forms of exploitation have been given increased expression by capitalism, the elimination of violence in general and in particular violence against women, LGBTIs and children is integral to the interests of the working class who are the most affected.

As the SACP we will also be using our centenary celebrations of the Great October Socialist Revolution to strengthen working class women struggles against violence against women. Our struggle to build momentum towards, elements of, and capacity for socialism in the here and now is simultaneously the struggle for, and requires, the elimination of violence in general and abuse of women, LGBTIs and children.

Our immediate programme includes:

Education and awareness to combat the scourge.
Building effective street committees and Community Policing Forums that work to curb violence against women and crime in general.
Building an increasingly vanguard leadership and supportive role that enables the expertise and specialised activism of progressive organisations and NGOs dedicated on achieving transformation of gender relations to deepen their work and to work together with them in combating femicide (murder of women), child homicide and infanticide in our communities.
Equally fight sexual abuse and rape of boys and boy child learners and advance and deepen the overall struggle against patriarchy.
Intensifying our Know Your Neighbourhood and Act Campaign; streamline and strengthen a focus on violence and gender-based abuse in the campaign.
Work with the Police and the NPA to combat violence and gender-based abuse and ensure arrests, prosecution, adequate sentencing and rehabilitation of perpetrators. The fact that there are criminal elements that infiltrated the Police, as the Minister of Police recently revealed, does not mean that we must not work with the Police and recognise the good work that the Police do. We must defeat the criminal capture of the Police and decisively deal with criminals according to the law.
Let us go all out and participate in the governant initiated listening campaign and let us convene community meetings to engage and work with communities to combat crime in general and gender-based violence in particular. We do not need permission from another political organisation to convene a community meeting. All we should do is to inform others, including our allies, and further invite them to the meetings. We are an independent Party.
Deepen the struggle against economic exploitation including a strong focus on patriarchy, inequality, unemployment and poverty.
There is also this rising phenomenon called "blessing" by the so-called "blessers". This must end. We cannot leave it out in the struggle against patriarchy.

Our people, particularly the workers and poor are faced with too many serious problems.

We must defend, advance and deepen our revolution and rescue it from the trajectory of destruction it has been plunged into. We must wage the struggle on all fronts. The economic programme of this struggle must entail a deepening sense of urgency about the fundamental necessity to defeat crime, corruption and corporate state capture across all levels. This phenomenon of state capture must be characterised properly; it is in fact a counter-revolution, and we must treat it as such.

The SABC, SAA, Eskom, PretsoSA, the CEF (Central Energy Fund), Prasa, Transnet, the SA Post Office/Bank, Telkom, Denel etc.; regulatory and other national authorities such as SARS, Sentech, Usaasa etc.; development finance institutions require social mobilisation in order to work and serve the people. These public entities were forced into crisis by looting, governance decay and corporate state capture. The investigative and prosecutorial authorities that must act appear to have been lulled into passivity and turning a blind eye to the rot. Look at the Gupta leaks. Nobody has been held accountable, even if they do not deny what they are implicated in but seek to give it context. In a way the rot highlights the danger of leadership distance by the working class to state power.

At our Party Congress we resolved to play a more active role in contesting elections either within or without the umbrella of a reconfigured alliance. We have started developing a roadmap in this regard and we will be engaging with progressive and worker organisations. The roadmap will be presented to our annual Augmented Central Committee by the end of this year for consideration and adoption and will be implemented towards a Special Party Congress that will consider a report of the work and adopt the final way forward.

We are on record that the mode of functioning of our alliance as it stands is outdated and must be reconfigured. Intransigence in having the alliance reconfigured will certainly lead to it to be reconfigured through the ballot. There just no way the alliance will become successful if it is not reconfigured. This is, in summary, the way forward from our Party Congress.

We must build strategic discipline in our movement and the state. We must defeat the looters and parasites and build organic, technical and professional capacity of our state and transform it to become a capable democratic developmental state to serve the people wholeheartedly.

We need investment in the productive sector of the economy to create jobs and decent work. Capital is presently on a holiday, and over a trillion rand is held in liquid cash rather than invested in productive economic activity. This is made possible partly by the strategic discipline of the state that is has been and continues to be hollowed out and both must come to an end! Everybody, including capital, must be disciplined.
SACP Welcomes Court Judgment on Comrade Ahmed Timol
12 October 2017

The South African Communist Party welcomes the North Gauteng High Court judgment concluding that Ahmed Timol did not commit suicide but was murdered. This is an affirmation of the truth that the SACP has always believed. The judgement paves the way for justice to run its full course. Those who committed the murder must now face the music and be held accountable in accordance with the rule of law.

The SACP unwaveringly supports the Timol family and will deepen its campaign towards a wider programme to seek justice for all. Everyone who was killed by or disappeared at the behest of the apartheid regime must be accounted for. The forces behind the crime against humanity, apartheid, must be held accountable!



Alex Mohubetswane Mashilo
National Spokesperson & Head of Communications
Mobile: +27 76 316 9816
Skype: MashiloAM


Hlengiwe Nkonyane
Communications Officer: Media Liaison Services, Digital and Social Media Co-ordinator
Mobile: +27 79 384 6550


Office: +2711 339 3621/2
Twitter: SACP1921
Facebook Page: South African Communist Party
SACP Ustream TV Channel:
SACP Gauteng Condemns KPMG for Economic Sabotage
16 October 2017

The South African Communist Party (SACP) Gauteng today, 16 October 2017 held a successful picket outside audit firm KPMG's Johannesburg head office. This was to protest and condemn the multi-national company for the role it played in facilitating and supporting Corporate Capture of the State by the Gupta family.

KPMG provided corrupt audit and accounting services to the Gupta linked companies and to the SA Revenue Services (SARS) on the so-called Rogue Unit, a report they finally withdrew and apologised for. In their services to the Gupta linked companies and SARS, KPMG applied the most corrupt, unethical, immoral and bankrupt auditing practices.

The SACP believes that as a direct result of their activities to legitimise and provide cover to the corrupt activities of the Guptas, KPMG has undermined South Africa and plunged it into deep economic crisis. It is because of this immoral and corrupt relationship between KPMG and the Guptas that the country is now suffering the consequences of junk investment rating.

In a country that already has a high rate of unemployment, severe poverty, and inequalities amongst the highest in the world, the working class and the poor are left more vulnerable when the economy's rating is downgraded.

Corporate Capture of the State has undermined the proper functioning of our State Owned Enterprises (SOEs) and undermined the integrity and the oversight role of National Treasury and SARS as key institutions that are the custodians of our public purse. These institutions have always played a crucial role to guarantee good governance and compliance with the constitution and the laws of our country.

South Africa's economy is almost in recession, and growth forecasts indicate that the economy will not grow at the most appropriate levels to meet the needs of the working class and the poor. Whilst our tax base is very low due to low economic growth, our instruments such as bonds are not selling in the financial and credit markets. As a result SOEs that were corrupted by KPMG cannot raise money, leading to workers' pensions being threatened as they are now being looked at as alternative funds to finance the same SOEs.

The SACP believes that KPMG committed crimes against our economy and the people. They are responsible for further depressing the economic environment in our country.

The picket was in protest against the role of KPMG's activities including the following:

Firstly, KPMG supported a Gupta company at the centre of all dealings and transactions that constitute the core of Corporate Capture of the State. KPMG provided audit and financial services to the listing of the Gupta Company known as Oakbay Resources Limited. KPMG made sure that the share price was fixed and manipulated to ensure successful listing by this Gupta Company. It gave legitimacy to the share price that was certainly not worth the paper it was written on. This would have helped Oakbay Resources and Energy Limited to raise capital at the JSE.

Secondly, KPMG provided accounting and auditing services to the Gupta linked acquisition of Optimum Coal Mine from Glencore. KPMG supported the negotiations influencing the acquisition price to the benefit of the Guptas.

Thirdly, KPMG manipulated information to package a set of accusations and allegations to discredit former Minister of Finance, comrade Pravin Gordhan. KPMG falsely claimed that Gordhan should have known and actually knew, and was therefore responsible for the so-called Rogue Unit at SARS. This has been proven a fabrication and was withdrawn.

Fourthly, KPMG senior partners and managers attended the scandalous and controversial Gupta wedding at Sun City in Rustenburg. This was the wedding that saw our national sovereignty being undermined with wedding guests landing at the military airbase in Waterkloof. We believe the KPMG guests were invited as a reward in recognition of their role in facilitating the Corporate Capture of State institutions.

All these events and activities of KPMG triggered a series and chain of events that led our country being rated junk investment by the rating agencies. Rating agencies relied on issues such as governance, political stability, poor state of SOEs amongst many other factors, at the core of which is corporate capture facilitated by KPMG.

The SACP thanks and congratulates all institutions (public and private) for severing ties with KPMG. We must encourage patriots and those loyal to our county and democracy to drop KPMG with immediate effect. We must warn any institution and company that is still doing business with KPMG that they are accomplices and equal partners in waging economic genocide and sabotage against our economy. We will mobilise the working class to expose and protest any institution that is party to Corporate Capture of the State.

We call on KPMG to close shop and go back to their Imperialist masters. Their presence in our country is a source of grave pain and bad memory.

Issued by the SACP Gauteng province


Jacob Mamabolo - SACP Gauteng Provincial Secretary
Mobile: 082 884 1868
SACP Statement on the Removal of Cde Dr Blade Nzimande from the South African Cabinet
17 October 2017

The South African Communist Party has learnt about the factional removal from Cabinet of the Minister of Higher Education and Training Dr Blade Nzimande by President Jacob Zuma. We emphatically reject these manoeuvres that place the Alliance on the brink of disintegration. Our view is that this is not a reshuffle but the targeted removal of Cde Blade as a direct attack on the SACP. Ordinarily the aim of any cabinet reshuffle must be to strengthen the capacity of the state. But in this case that is not the intention, especially with the retention of so many deadwoods and compromised individuals in Cabinet.

The continued authoritarianism by Zuma, disregarding Alliance protocols and relations, has plunged the Alliance into unchartered waters. In fact this action, more than anything else, also compromises and further tarnishes the image of the ANC itself. Zuma`s removal of Dr Nzimande from the Cabinet without consultation with the Alliance is nothing but a response to the popular call, led by the SACP and COSATU, for the President to resign. Our call for Zuma to step down is based on the many problems of corruption, governance decay and state capture under his watch. In addition, the removal of Dr Nzimande from the Cabinet is part of Zuma`s manoeuvres to secure successful election of his ordained successor at the forthcoming ANC December national conference.

It is a well-known fact that the malady of corruption, governance decay and state capture has worsened exponentially under the incumbency of President Zuma and his friends, the Gupta family. If the President thinks that by removing Dr Nzimande from the Cabinet he will silence the SACP from the leading role it has played to expose and confront state capture, he is glaringly mistaken! Instead, the SACP is even more committed to continuing with its leading role in waging the struggle against state capture and corruption.

The SACP thanks Cde Blade for his dedication in serving our people and commitment to education transformation. Cde Blade has set very important parameters and standards in the transformation of higher education and training. As the SACP we are committed to continue the struggle for the transformation of higher education, working together with all the progressive forces in this terrain.


Alex Mohubetswane Mashilo
National Spokesperson & Head of Communications
Mobile: +27 76 316 9816
Skype: MashiloAM

Hlengiwe Nkonyane
Communications Officer: Media Liaison Services, Digital and Social Media Co-ordinator
Mobile: +27 79 384 6550

Office: +2711 339 3621/2
Twitter: SACP1921
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COSATU Statement on the Recent Cabinet Reshuffle
17 October 2017

The Congress of South African Trade Unions has noted the latest cabinet reshuffle by President Jacob Zuma. We can confirm that the federation did receive a courtesy call from President Jacob Zuma regarding his decision to reshuffle his cabinet this morning.

While, we acknowledge that the president of the republic has a prerogative to reshuffle his National Executive as per the Constitution of the republic, we find the frequency of these cabinet reshuffles unsettling because they do not help to create the much needed stability at a government level. What compounds the situation is that some of these government departments are also witnessing an exodus of senior technocrats.

All of this is happening while workers and the poor are continuing to be victims of a system that has condemned millions of our fellow citizens to lives of brute survival. Our economy is currently haemorrhaging jobs at an alarming rate and it does not help that we are also experiencing this kind of political uncertainty and policy incoherence from government.

COSATU expects cabinet reshuffles to be about strengthening the capacity of government in order to help government to better implement its developmental agenda and deliver on its promises. We are not convinced that this reshuffle is informed by that ,considering that some of the most ineffectual ministers like Minister Bathabile Dlamini, Minister Nomvula Mokonyane, and Minister Mosebenzi Zwane are still part of the National Executive.

These recent cabinet reshuffles have done very little to help take the National Democratic Revolution forward. We call on the African National Congress to reflect deeply about the state of the economy and the overall performance of its government. The majority of workers are facing a bleak future and the people South Africa need a clear sign that the government has a plan to rescue them from poverty and kick-start this economy.

As COSATU , we will continue to work with and support the newly elected ministers and deputy ministers with the hope that they will prioritise a people driven and people centred development. We wish them well in their new positions.

Issued by COSATU
Sizwe Pamla (National Spokesperson)
Tel: 011 339 4911
Fax: 011 339 5080
Cell: 060 975 6794
ANC Condemns Attacks Against Rohingya Minority in Myanmar
16 October 2017

The African National Congress condemns in the strongest terms the actions of the Myanmar military that have resulted in the displacement of some 509 000 Rohingya Muslims from the Northern Rakhine State to Bangladesh. This has led to a significant humanitarian and refugee crisis that includes an estimated 100 000 children. The ANC adds its voice to growing international condemnation of the violence directed against the Rohingya.

The Rohingya are a Muslim ethnic minority in predominantly Buddhist Myanmar and despite having lived in the country formerly known as Burma for centuries - they are not considered one of the country's official ethnic groups. This has effectively rendered them stateless.

The ANC condemns not only the violence being perpetrated against Rohingya men, women and children by the military - but also the decades long apartheid discrimination they have faced, dating back to British colonial rule.

The United Nations has described the Rohingya as 'the world's most persecuted minority'. They live in one of the poorest states in the country and are forced into a ghetto-like existence where they are routinely denied access to opportunities and services. Their freedom of movement is curtailed and they live in constant fear of attack.

The ANC calls on the Myanmar government to immediately put a halt to the refugee crisis by allowing the Rohingya people who have fled, to return to their places of birth.

The international community should put pressure on the Myanmar government to stop the indiscriminate attacks on the Rohingyan people, and continue to support the ongoing effort to alleviate the plight of the displaced.We further call on the Myanmar government to take the necessary steps to grant them nationality.

The ANC recalls the historical ties of solidarity and support that the ANC and all freedom loving people have extended to Aung San Suu Kyi over the many years of her exile and house arrest. We implore her to support the Rohingya's right to return to their country of origin and to ensure their safety and right to live and work with dignity.

The ANC urges all South African government departments, led by the South African Department of International Relations and Co-operation, and South African humanitarian organisations to contribute generously towards humanitarian relief efforts.

Issued by
Edna Molewa
Chairperson: ANC NEC SubCommittee on International Relations


Zizi Kodwa 082 330 4910
National Spokesperson

Khusela Sangoni 072 854 5707
National Communications Manager