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Daily Archives: May 17, 2017
Donald Trump’s plan to disenfranchise minority voters – The Hill (blog)
Posted: May 17, 2017 at 2:26 am
Just in time to distract from the 24-hour Russia-all-the-time news cycle is President Trumps newly announced Presidential Commission on Election Integrity, an entity headed by Vice President Mike PenceMike (Michael) Richard PenceDonald Trump's plan to disenfranchise minority voters Yates: Russia had 'real leverage' over Flynn Overnight Regulation: White House back in court to defend travel ban MORE that will supposedly focus on voter fraud and suppression.
This effort might seem like an inartful attempt to lend credibility to the presidents disproven claims of massive voter fraud in a 2016 presidential election that he won, but its purpose and impact will likely be more pernicious.
Given the GOPs irresponsible history of engaging in voter suppression, the commissions aim could be an attempt to minimize the potential for Democratic gains in the 2018 and 2020 elections by reducing the influence of young people and communities of color.
President Trump may have only recently learned about Historically Black Colleges and Universities, but I am a graduate of Prairie View A&M University, a historically black land-grant college founded on the grounds of a former slave plantation 49 miles northwest of Houston.
Prairie View was most recently in the national news when my fellow alumna the late Sandra Bland met her fatal end in a Waller County jail after being taken into custody for presumably failing to signal a lane change while driving her car just off the campus grounds.
However, the schools pivotal role in a 1979 Supreme Court decision that gave students the right to vote where they attend school is its important but less well-known claim to fame.
That Supreme Court decision should have been the final arbiter of the matter, but Prairie View students black kids attending a black university smack dab in the middle of a county and state where white conservatives are hell-bent on maintaining power have been under assault for their attempts to exercise their legitimate and constitutionally protected right to vote ever since.
My junior year at Prairie View was memorably punctuated in 1992 by the case of the Prairie View 19 fellow students cast their ballot in a local election only to be arrested, booked and indicted by Waller County officials who claimed that they voted fraudulently.
I remember feeling a mixture of anger and sadness when this occurred aggrieved that despite many decades since adoption of the 15th and 19th Amendments of the U.S. Constitution and passage of the Voting Rights Act, our rights as African-Americans were still called into question by white conservatives who wanted the benefit of counting our bodies in the countys census while limiting our ability to exert any modicum of political power.
Indignant and wanting justice, hundreds of us marched the seven miles from our campus to the Waller County Courthouse to protest the students mistreatment and demand their records be expunged. We got some measure of satisfaction when officials agreed to drop the charges. However, my satisfaction was relatively short lived.
In 2004, I was working in Washington, D.C., as a vice president at the Congressional Black Caucus Foundation when I learned the Waller County District Attorney Oliver Kitzman was challenging Prairie View students right to vote because he didnt consider them residents of the county a clear violation of the 1979 Supreme Court ruling and a continuation of the persistent pattern of voter intimidation and harassment to which PV students had been subjected.
I asked the chairman of the Congressional Black Caucus at the time, Rep. Elijah Cummings (D-Md.) to step in (full disclosure: he later became my spouse) and he, along with leaderslike Congresswoman Sheila Jackson Leeof Texas, got George W. Bushs Department of Justice to launch an investigation.
Hundreds of students marched to the county courthouse for their constitutional right to vote in 2004, just as we did in 1992. Two federal lawsuits were also launched one challenging the residency requirement and the other challenging the decision of Waller County officials to shorten the early-voting period on the campus. Feeling the heat from these efforts, the Waller County D.A. dropped his opposition.
In 2008, more than 1,000 students marched again when Waller County officials, this time citing budget concerns, reduced the number of early-voting locations from seven to one, placing the only voting location at the Waller County Courthouse seven miles away from campus a major voting obstacle for many students without cars.
George W. Bushs Justice Department stepped in again to demand the County add three polling places to better accommodate students.
In 2013, not long after a conservative-led Supreme Court gutted key provisions in the Voting Rights Act, Prairie Views student leaders were once again asking county officials to put a polling place on campus.
But this time, with Texass newly enacted Voter ID law in effect a law a federal judge recently ruled was enacted with the explicit intent to discriminate against African-Americans and Latinos they were operating in a climate even more hostile to minority and student voter participation.
Republicans argue that they have a duty to combat voter fraud, even though there is sparse evidence that it exists. However, there is plenty of evidence as Prairie View and other examples like it demonstrate that racially motivated voter suppression is one of the GOPs real goals and that Republicans consistently rely on it to artificially maintain power.
Since voting is the foundation of our democracy, principled Republicans and Democrats should work together to make sure that the constitutional guarantee of a right to vote is real and accessible to every American. We must combat voter discrimination by reinstating and improving the protections that were removed from the Voting Rights Act.
Although one can hold out hope, I have no illusions that Donald TrumpDonald TrumpNine protesters injured after Trump-Erdogan meeting: report Sanders: 'Trump doesn't fully understand' being president Trump disclosure of classified intel may have endangered spy: report MOREs commission, his Department of Justice, led by one Jefferson Beauregard Sessions a man who, like Trump, has been accused of racial discrimination or congressional Republicans would ever take action to protect the voting rights of students or people of color in this political climate.
For todays GOP members who have more power than any time in recent history and who make Bush-era Republicans seem quaint by comparison only operate by one standard: the principle of maximum political advantage. Under this calculation, democracy, the Constitution, integrity, voting rights and human rights are all damned.
Maya Rockeymoore is a political scientist, author, speaker, policy analyst, and social entrepreneur. She is President and CEO of Global Policy Solutions LLC, a social change strategy firm.
The views expressed by contributors are their own and are not the views of The Hill.
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What Donald Trump said about the spread of classified material during the campaign – PolitiFact
Posted: at 2:26 am
President Donald Trump on Tuesday claimed the authority to share facts pertaining to terrorism and airline safety with Russia, saying in a pair of tweets he has an absolute right as president to do so.
An explosive Washington Post story published May 15, 2017, accused President Donald Trump of sharing "code-word" classified information with the Russian ambassador to the United States and its foreign minister during an Oval Office meeting.
Trump has so far said he wanted to share facts about terrorism and airline flight safety.
Whatever the case, Trumps decision to potentially disclose classified information has ledmany to look at the presidents past opinions on the spreading of classified information -- particularly with regards to his 2016 Democratic rival Hillary Clinton.
Here are some of the attacks Trump used against Clinton regarding the spread of classified information. We begin with Trumps response to a State Department disclosure that 22 emails containing classified information were on Clintons private email server.
Jan. 29, 2016
"The new e-mail release is a disaster for Hillary Clinton. At a minimum, how can someone with such bad judgement be our next president?"
"What she did is a criminal act. If she's allowed to run I would be very, very surprised."
July 6, 2016
"Crooked Hillary Clinton and her team 'were extremely careless in their handling of very sensitive, highly classified information.'Not fit!"
July 11, 2016, campaign speech
"This is not just extreme carelessness with classified material, which is still totally disqualifying. This is calculated, deliberate, premeditated misconduct."
July 21, 2016, campaign speech
"The secretary of state was extremely careless and negligent in handling our classified secrets."
"Clintons home email server that she lied to the American people about was a profound national security risk ... Hillary Clinton has bad judgment and is unfit to serve as President."
"150 Clinton E-mails still contain classified information. More sensitive when she was Sec.of State. This is a very big deal."
"Lyin' Hillary Clinton told the FBI that she did not know the 'C'markings on documents stood for CLASSIFIED. How can this be happening?"
"WikiLeaks proves even the Clinton campaign knew Crooked mishandled classified info, but no one gets charged? RIGGED!"
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What Donald Trump said about the spread of classified material during the campaign - PolitiFact
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Puerto Rico’s bankruptcy hearing marks reset of asset scramble – Reuters
Posted: at 2:25 am
By Daniel Bases | NEW YORK
NEW YORK Puerto Rico is due to embark on a bankruptcy process on Wednesday that could take years to resolve, as investors scramble to get the highest recovery on their bonds.
The debt is still trading at elevated levels versus what the government has set aside for payment under its financial recovery plan, and creditors worry about whether they will be able to recoup at those prices.
GRAPHIC: Timeline of trade price for Puerto Rico debt
Whether they get that level of recovery is debatable, according to investors and analysts, as the U.S. territory seeks to restructure more than $70 billion in debt, from multiple agencies, and another near $45 billion in underfunded pension liabilities.
"The 25 percent may be what the Commonwealth identified as a available to cover debt service but it doesn't necessarily mean that will be the ultimate recovery," said Shaun Burgess, portfolio manager and lead trader for Puerto Rico strategy at Sarasota, Florida-based Cumberland Advisors.
Puerto Rico, with 3.5 million U.S. citizens, has spent the last ten years in recession with debt piling up to pay for basic services. The poverty rate is at 45 percent, unemployment is at 11 percent and the population is shrinking as islanders emigrate to the mainland United States in search of a better life.
Burgess, who owns insured Puerto Rican debt, did not want to speculate on the final recovery prices, or the potential losses for major mutual funds, but said negotiations could include lowering the coupon rates, reducing principal and extending maturity dates.
"There isn't enough information, especially as it relates to time frame and potential recoveries," he said.
Yet to be worked out is how an $800 million pot of money set aside in the government's certified 10-year fiscal recovery plan will be apportioned between competing claims including those of constitutionally backed general obligation debt (GO) and sales-tax backed bonds known as COFINA.
That pot of money represents less than a quarter of what is needed to service debt annually.
That question will ultimately be settled by U.S. District Judge Laura Taylor Swain of the Southern District of New York when the bankruptcy-like proceeding begins in a San Juan courtroom on Wednesday.
Swain, appointed by U.S. Chief Justice John Roberts on May 5th, is operating under the authority granted by the U.S. Congress, which passed a law last year known as PROMESA (Puerto Rico Oversight, Management, and Economic Stability Act).
PROMESA established a federal oversight board with the authority to negotiate the restructuring of the island's debt. It includes a provision known as Title III that establishes a legal pathway, previously unavailable, for Puerto Rico to settle its obligations through a bankruptcy-like process.
Normally, GO debt is the most senior in a municipality's capital structure and the first to be paid. COFINA creditors are fighting to ensure its revenue stream doesn't get diverted to pay other debt.
"Clearly we don't know what to expect, but it is going to be a lengthy and tortuous process. This is going to take longer than Detroit," said Mikhail Foux, municipal research director at Barclays Capital in New York. Detroit's case took 18 months.
"I would assume the final solution should also address the pensions because if you are bondholder why would you take a haircut knowing the pension liability question could just send you back to square one again," he said.
UNPRECEDENTED
Puerto Rico's bankruptcy dwarfs Detroit's, the previous record holder for municipal bankruptcy at $18 billion in debt and obligations that was ultimately reduced by $7 billion.
"The main take-away I have from the experience of Detroit or GM (General Motors) is that politics trumps contracts. I expect the final result to involve big haircuts, low coupons and long maturities for bondholders, and it probably doesn't matter if its GO's or COFINAS," said Robert Rauch, senior partner and portfolio manager at emerging market asset manager Gramercy.
Currently Puerto Rico's benchmark general obligation debt, an 8 percent coupon bond maturing in 2035, last traded at a bid price of 60, according to Thomson Reuters data. 74514LE86=MSRB
"Current prices reflect the fact that the muni market doesn't permit shorting. As long as the current core of bondholders is supporting the market it won't go down to a level that reflects realistic recoveries," said Rauch, whose firm is
COFINA bondholders were the first to sue the government after the freeze on creditor litigation under PROMESA expired at Midnight May 1st. They accuse Puerto Rico, Governor Ricardo Rossello and other officials of angling to repurpose the tax revenue earmarked to pay COFINA debt.
"If COFINA is pierced, many people would say it is one-off situation and not precedent setting. But it could have some effect on other municipal credits," Foux said.
Senior COFINA debt carrying a 5.25 percent coupon maturing in 2057 was bid at 57 with a yield of 9.39 percent on Tuesday. 74529JAR6=MSRB
The 6 percent 2042 subordinated COFINA bond has steadied, last bid at 23.71 with a yield rising to 25.5 percent 74529JHN8=MSRB. This bond has dropped by more than 50 percent since the board certified the government's fiscal plan in March.
"The fiscal plan only allows for a certain amount of money for debt servicing and it isnt enough. Why are market prices still implying higher recoveries? One factor to remember is there are competing claims between GO and COFINA. They cant both be right. Therefore, in aggregate prices to need to go lower," said David Hammer, head of municipal bond portfolio management at Pimco in New York.
(Reporting By Daniel Bases; editing by Diane Craft)
Puerto Rico on Wednesday willface investors for the first time in a bankruptcy court, as it kicks off the biggest and most divisive debt restructuring in U.S. public finance history.
WASHINGTON The Trump administration's top trade officials hope to keep the North American Free Trade Agreement as a trilateral deal in negotiations with Canada and Mexico to revamp the 23-year-old pact, senators said on Tuesday.
WASHINGTON/RIYADH When U.S. President Donald Trump meets Saudiprincesin Riyadh on Saturday, hecan expecta warmer welcome than the one given a year ago to his predecessor Barack Obama, who Riyadh considered soft on arch foe Iran and cool toward a bilateral relationship that is amainstay of the Middle East's security balance.
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Puerto Rico's bankruptcy hearing marks reset of asset scramble - Reuters
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Teen Retailer Rue21 Files for Chapter 11 Bankruptcy – Wall Street Journal (subscription)
Posted: at 2:25 am
Teen Retailer Rue21 Files for Chapter 11 Bankruptcy Wall Street Journal (subscription) Teen-apparel retailer Rue21 filed for bankruptcy late Monday, having already begun the process of closing many of its 1,179 stores to survive a rapidly changing retail landscape. Months of planning went into Rue21's strategy of tackling more than $1 ... |
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Teen Retailer Rue21 Files for Chapter 11 Bankruptcy - Wall Street Journal (subscription)
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Westinghouse inches closer to rejecting construction contracts in bankruptcy – Pittsburgh Post-Gazette
Posted: at 2:25 am
Westinghouse Electric Co. is getting closer to stepping away from the construction of new nuclear plants in Georgia and South Carolina the delayed and budget-busting projects that drove the Cranberry-based firm into bankruptcy in March.
The company has reached an agreement which has yet to be finalized for Southern Co. to take over the project management of Plant Vogle two AP1000 nuclear power plants that are being built in Georgia.
According to Reuters, Westinghouse is working on a similar service agreement with Scana Corp., the company that owns the V.C. Summer project where another pair of AP1000s are underway.
It was anticipated that by filing bankruptcy, Westinghouse, which is owned by Japanese giant Toshiba, would seek to break its contracts with Southern and Scana, which set a fixed price for the nuclear construction and put Westinghouse in the hot seat for overruns.
Southern's statement released on May 12 confirms that Westinghouse plans to ask the bankruptcy court to reject its contract with the utility owner. It also stresses that Southern will "take all actions necessary to hold Westinghouse and Toshiba accountable for their financial obligations." According to Reuters, Southern has agreed to limit Toshibas liability for the Vogtle project to $3.6 billion.
After filing for bankruptcy on March 29, Westinghouse and the two utility owners agreed to a month-long interim assessment period, during which work on the nuclear power plants would continue with the utilities paying Westinghouse and subcontractors for their costs. The assessment period also gives the utilities and state regulators time to decide if construction should move forward or be abandoned; whether the power plants might be converted to run on natural gas; and how continuing the work might affect rate payers.
Both of the interim agreements have been extended. Southern and Westinghouse now have until June 3 to hash out a plan, while Westinghouse's arrangement with Scana may last until June 26.
Because the AP1000 is Westinghouse's technology, the nuclear firm will continue to be involved in the construction projects in some capacity.
Westinghouse spokesperson Sarah Cassella said the company and Southern "have outlined a framework for services contract and will use the extension to reach a resolution."
Anya Litvak: alitvak@post-gazette.comor 412-263-1455.
First Published May 16, 2017 2:23 PM
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New Jersey Ski Resort Files for Bankruptcy – Wall Street Journal (subscription)
Posted: at 2:25 am
New Jersey Ski Resort Files for Bankruptcy Wall Street Journal (subscription) Mountain Creek Resort Inc., a New Jersey ski resort less than two hours from Manhattan, has filed for bankruptcy protection, citing years of above-average temperatures, scant snowfall and missteps by prior owners. Short on cash and beset by obligations ... |
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New Jersey Ski Resort Files for Bankruptcy - Wall Street Journal (subscription)
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Supreme Court Backs Bids to Collect Outdated Debt in Bankruptcy – Bloomberg
Posted: at 2:25 am
by and
May 15, 2017, 10:14 AM EDT May 15, 2017, 12:44 PM EDT
A divided U.S. Supreme Court ruled that debt collectors can use bankruptcy proceedings to try to collect liabilities that are so old the statute of limitations has expired.
Voting 5-3, the court said companies dont violate the U.S. Fair Debt Collection Practices Act when they file bankruptcy claims on that type of years-old debt. Justice Stephen Breyer joined the courts conservative wing in the majority.
Critics accused debt collectors of violating the law by filing tens of thousands of outdated claims with bankruptcy courts in the hope that some debtors wont object.
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The result of decision appears to give creditors a free pass to file stale claims without fearing FDCPA liability, Andrew Muller, a partner at Stinson Leonard Street LLP, said in an interview. The flip side is that trustees and debtors lawyers may be under increased pressure to more closely review claims to determine whether the claims are subject to a statute of limitations defense, Muller said.
The ruling is a victory for Encore Capital Group Inc.s Midland Funding in an Alabama case that started with an effort to collect a $1,900 credit-card debt. The debtor, Aleida Johnson, sued Midland after a bankruptcy judge threw out Midlands claim.
Midland argued that federal bankruptcy law lets creditors file claims in those proceedings even if the statute of limitations wouldnt allow a lawsuit.
Like the majority of Courts of Appeals that have considered the matter, we conclude that Midlands filing of a proof of claim that on its face indicates that the limitations period has run does not fall within the scope of any of the five relevant words of the Fair Debt Collection Practices Act, Breyer wrote.
Johnsons lawyers said that, by filing outdated requests, debt collectors are falsely suggesting those claims are valid and enforceable.
Justice Sonia Sotomayor filed a dissenting opinion in which Justices Ruth Bader Ginsburg and Elena Kagan join. Justice Neil Gorsuch, who joined the court after the case was argued in January, didnt participate in the ruling.
Professional debt collectors have built a business out of buying stale debt, filing claims in bankruptcy proceedings to collect it, and hoping that no one notices that the debt is too old to be enforced by the courts, Sotomayor wrote. This practice is both unfair and unconscionable, she added.
Debt collectors do not file these claims in good faith; they file them hoping and expecting that the bankruptcy system will fail., Sotomayor wrote.
Lower courts had been divided on the issue. The Obama administration backed Johnson in the case.
The case is Midland Funding v. Johnson, 16-348.
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Supreme Court Backs Bids to Collect Outdated Debt in Bankruptcy - Bloomberg
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Mountain Creek files for Chapter 11 bankruptcy; plan would allow debt restructuring – New Jersey Herald
Posted: at 2:25 am
Posted: May. 16, 2017 12:01 am
VERNON -- Less than two years after acquiring Mountain Creek, the resort's new ownership has filed for Chapter 11 bankruptcy reorganization.
The filing, which had been rumored to be in the works for some time, was submitted in federal court Monday morning and seeks a restructuring of the resort's debt including an estimated $26 million in contractually obligated sewer debt payments to the Vernon Township Municipal Utilities Authority.
The debt obligations to the township stem from a 2012 agreement under which the resort's former principal owner, Gene Mulvihill, had agreed to have the resort assume approximately 65 percent of the MUA's debt to the Sussex County Municipal Utilities Authority for the buildout of the township's sewer system.
Mountain Creek CEO Jeff Koffman, reached by phone Monday, declined to elaborate but said he was still optimistic about the prospects for growing the tourism and resort industry in the Vernon Valley area.
In a press release late Monday, a Mountain Creek spokesperson indicated the filing would not affect existing operations at the resort and would best enable it to attract outside investment for other planned ventures. According to its website, the resort's waterpark is scheduled to open the weekend of June 10-11 and seven days a week starting June 22.
"The four-season resort, which offers gourmet restaurants, lodging and a variety of outdoor sports and activities, will continue to operate fully during the bankruptcy process," according to the press release.
Koffman, in a prepared statement included with the press release, said "(Monday's) filing will allow us to deal with the legacy debt we inherited from the property's former owners and attract new investment into the resort.
"We remain committed to seeing Mountain Creek develop to its full potential with new hotels, new outdoor attractions and expanded residential homes," he said. "Our vision to create a world class, four-season resort here in New Jersey is still our main objective and this move will put us in the best position to achieve that."
With Vernon's sewer system currently facing a cumulative debt of more than $40 million, it is unclear how the debt restructuring might impact the township or how much of the sewer system debt might otherwise fall on the balance of ratepayers, most of whom dwell in condominiums and single-family homes, if the court approves the restructuring.
Mayor Harry Shortway said late Monday that he was aware of the bankruptcy filing but had not yet had a chance to review it. He suggested, however, that the pickle in which the township now finds itself was the direct result of the township being misled by professionals under prior administrations who over-projected the amount of sewerage capacity the township would need, with the result that existing ratepayers have largely now been left holding the bag.
He also suggested that the resort's former owners -- who had previously talked of building an indoor waterpark and up to 1,500 new condominiums -- never intended to fulfill their contractual obligations to assume the lion's share of debt for the sewer system expansion.
Regarding the resort's current owners, "it's a major problem for them and I hope they can come out of this reorganization stronger," Shortway said.
Shortway nonetheless noted that 90 percent of the township's tax base was residential and suggested the collective well-being of smaller tourism-oriented businesses was as vital to the township's long-term economic future as that of Mountain Creek.
"We want all our businesses to do well, but I also believe in the smaller mom-and-pop shops and don't believe we can put all your eggs in one basket," Shortway said.
As for the township, "We have to find a way to get through this and we will," Shortway said. "We'll likely be looking to hire a bankruptcy counsel and will take the steps necessary to protect the township and to ensure this doesn't all fall on the existing base of ratepayers."
Council President Jean Murphy said late Monday that she was aware of the filing but said she and the other council members had not yet been briefed on its details.
"Our attorney is reviewing it, and we'll be considering all the options the town may have," she said.
Councilman Pat Rizzuto, who attended Monday's debate between the two Republican candidates for state Senate in the 24th District, said he, too, was aware of the filing.
Among the 17 other creditors named in the bankruptcy filing is Crystal Creek Associates, a special-purpose financing entity affiliated with and domiciled at Crystal Springs Resort, to which Mountain Creek owes approximately $885,000.
Mountain Creek is being represented in the bankruptcy proceedings by the Roseland-based law firm of Lowenstein Sandler.
The same firm also was retained by Sussex County last year as part of a review of cost overruns and delays associated with the county-wide solar project that was approved in 2011. The investigation by former State Comptroller Matt Boxer, a partner at the law firm, is ongoing.
Eric Obernauer can also be contacted on Twitter: @EricObernNJH or by phone at 973-383-1213.
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Op-Ed: Collapse of ethics in public life how do we rebuild? – Daily Maverick
Posted: at 2:25 am
Many writers have remarked on the qualities possessed by Brian Molefe, that he had gained experience in the Treasury and other institutions or organisations that would have fitted him for a range of high-ranking jobs, nationally and internationally. He chose instead to put his skills at the service of the Guptas and in fact prostrated himself at their feet and that of Jacob Zuma and to do whatever they required, much of this being of doubtful legality.
In saying that Molefe has various qualities, this is not to accept all the evaluations of what Molefe achieved for there are questions around whether or not his time at Eskom was a success, as documented in Carol Patons 2016 analysis.
What is important to recognise is that the readiness of Brian Molefe to play fast and loose with legality is not at all exceptional in these times, for there are very many people who have traded their integrity in exchange for financial gain or some or other position acquired through serving powerful individuals. In some ways more shocking, there are many who were once very brave who have exchanged their sense of personal pride and dignity in order to hold one or other position. They have been prepared to defend Jacob Zuma over a range of issues where he was clearly misusing his office and taxpayers funds some deploying great ingenuity to make a case for what would later be found to be demonstrably false and in conflict with the Constitution.
In the political context in which we presently exist, speaking of integrity is not simply whether or not someone speaks the truth or can be trusted with funds, whether he or she will steal or falsify the books of a branch or region of an organisation in order to siphon off funds for private use. That is an element of what we identify as a lack of integrity. But what is specific to this period and by no means peculiar to South Africa is that the route to this dishonesty and acts that constitute a breach of trust happen within a context that embodies a patron-client relationship.
For patronage to emerge there must be individuals who hope to acquire the power (and need supporters) or do command the power to allocate positions or resources to others in exchange for their loyalty or support. That means that such potentially or already powerful individuals must be located or plan to be placed in a position to access resources. These may be resources of an organisation or foundations or non-governmental organisations (NGOs), the state, a State-owned Enterprise (SOE), a private company etc etc.
This is not a new phenomenon. It was also the case in exile when some individuals could secure better training or schooling or university opportunities than others, by virtue of their proximity to certain leaders. There were a range of other situations where some individuals or networks were placed in a way that enabled them to derive benefits that others did not receive or even do so at the expense of such individuals. The scale of these benefits was obviously of a much lower level than today, though it was perhaps a form of tutelage for what we now see.
It was also the case, inside the country during the 1980s when some individuals accessed funds locally or from overseas and through these funds were able to secure the loyalty of other individuals. These individuals were often encouraged to form organisations with a particular orientation and those who possessed funds were able to determine whether or not organisations rose or fell, whether they had funding for hiring venues or paying transportation or could supply the food needed for delegates at one or other meeting or to print T-shirts and influenced various other factors that determined whether or not an organisation survived on a sustainable basis.
The Thabo Mbeki presidency was characterised by patronage, though it generally did not converge with criminality or illegality to anything like the extent that is found today. It played itself out in appointments as well as the way some people were in the know of what the president wanted and others were not, those within the circle of influence being better prepared for or being part of decisions that were made.
At the time of the dismissal of Zuma as Deputy President in 2005, leading to an upsurge of support for Zuma (culminating in his election victory at the ANCs 2007 Polokwane conference), some individuals who had linked their future with Thabo Mbeki decided either to continue with that relationship and in most cases these people lost or resigned from positions of power. Alternatively, there were many who saw the writing on the wall for Mbeki and decided to throw their lot in with the rising Jacob Zuma. Many of these individuals had appeared to be very close to Mbeki but they recognised that they could no longer benefit from that relationship and chose their own more or less lucrative survival.
Some others, like the leadership of the SACP and Cosatu, also disagreed with features of the Mbeki period, notably the Growth Economic and Redistribution macroeconomic policy (GEAR), referred to as the 1996 class project and claimed to support the rise of Zuma on an ideological basis, as a way of remedying this conservative macroeconomic policy.
In contrast to Mbeki, SACP and Cosatu leaders depicted Zuma as a person who was sympathetic to the poor and less secretive than they depicted Mbeki as being.
Many of these individuals knew very well that the basis on which they were advancing the candidacy of Zuma was false; that Zuma had withdrawn from the SACP in 1990, when unlike in the period of exile being in the leadership of the Communist Party was no longer prestigious or advantageous. There was no consistent pro-working class or people-centred orientation attaching to Zuma. In fact, until shortly before his dismissal by Mbeki their political and socio-economic orientations had been more or less similar. One of Zumas biographers, Jeremy Gordin, refers to Zuma and Mbeki being so close in their thinking that they were more or less joined at the hip; they operated as a team and had for a long time. (Zuma: a biography, 2008, p 56).
The SACP knew this better than most. What they did was use their then considerable ideological and moral powers to project Zuma as being what they knew he was not; so eager were they to get rid of Mbeki. This is what is known as fraudulent misrepresentation in the law of contract, that you sell a product on the basis of qualities that you know it does not possess.
It may also have been that some of the SACP and Cosatu leaders understood the inauguration of a Zuma period as bringing benefits for themselves and indeed SACP and Cosatu leaders have become ministers and deputy ministers in this period.
In visiting Zuma on us, these leaders endorsed or were complicit in Zumas hyperpatriarchal and aggressive conduct in his rape trial and the militarism associated with his rule the singing of Umshini Wam, a song of war, as his trademark song, endorsing his ethnic chauvinism (100% Zulu) and numerous other features that ran counter to the very basis for forming the ANC (that is, eschewing tribalism) and in the case of the SACP, gender policies that had become an important part of its identity under Chris Hani.
The SACP leadership now calls for the resignation of Zuma and says it was wrong in supporting him in 2007. But it is not clear that it has articulated all the reasons why it was wrong not simply that he has turned out to be corrupt. Unless there is full awareness of the violent, hyperpatriarchal and dishonest character of this period we do not learn all the lessons.
Rebuilding the ethical qualities of South African public life will take time. It is both an intellectual question deciding what is and is not ethical and a psychological one, deciding whether or not one will act out what we understand to be correct. We have to recognise and choose whether or not to act ethically. Let us hope that like-minded people can drive a process whereby ethical conduct is revived as a desirable and necessary basis for conducting our social and political life. It may be that if the proposed national dialogues take off and involve people from all sections of our society, in a meaningful way, that they can play a role. DM
Photo of Raymond Suttner by Ivor Markman
Raymond Suttner is a scholar and political analyst. Currently he is a part-time Professor attached to Rhodes University and an Emeritus Professor at Unisa. He served lengthy periods in prison and house arrest for underground and public anti-apartheid activities. His prison memoir Inside Apartheids prison will be reissued with a new introduction covering his more recent life outside the ANC and will be published by Jacana Media late in May. He blogs at raymondsuttner.com and his twitter handle is @raymondsuttner
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Collapse of ethics in public life: how do we rebuild? – eNCA (satire)
Posted: at 2:25 am
File: Eskom CEO Brian Molefe resigned on Friday. Photo: Gallo / Alon Skuy
Many writers have remarked on the qualities possessed by Brian Molefe, that he had gained experience in the Treasury and other institutions or organisations that would have fitted him for a range of high ranking jobs, nationally and internationally. He chose instead to put his skills at the service of the Guptas and in fact prostrate himself at their feet and that of Jacob Zuma and do whatever they required, much of this being of doubtful legality.
In saying that Molefe has various qualities this is not to accept all the evaluations of what Molefe achieved for there are questions around whether or not his time at ESKOM was a success, as documented in Carol Patons 2016 analysis.
What is important to recognise is that the readiness of Brian Molefe to play fast and loose with legality is not at all exceptional in these times, for there are very many people who have traded their integrity in exchange for financial gain or some or other position acquired through serving powerful individuals. In some ways more shocking, there are many who were once very brave who have exchanged their sense of personal pride and dignity in order to hold one or other position. They have been prepared to defend Jacob Zuma over a range of issues where he was clearly misusing his office and taxpayers funds some deploying great ingenuity to make a case, for what would later be found to be demonstrably false and in conflict with the constitution.
In the political context in which we presently exist speaking of integrity is not simply whether or not someone speaks the truth or can be trusted with funds, whether he or she will steal or falsify the books of a branch or region of an organisation in order to siphon off funds for private use. That is an element of what we identify as a lack of integrity. But what is specific to this period and by no means peculiar to South Africa is that the route to this dishonesty and acts that constitute a breach of trust happen within a context that embodies a patron-client relationship.
For patronage to emerge there must be individuals who hope to acquire the power (and need supporters) or do command the power to allocate positions or resources to others in exchange for their loyalty or support. That means that such potentially or already powerful individuals must be located or plan to be placed in a position to access resources. These may be resources of an organisation or Foundations or Non Governmental Organisations (NGOs), the state, a State owned enterprise (SOE), a private company etc etc.
This is not a new phenomenon. It was also the case in exile when some individuals could secure better training or schooling or university opportunities than others, by virtue of their proximity to certain leaders. There were a range of other situations where some individuals or networks were placed in a way that enabled them to derive benefits that others did not receive or even do so at the expense of such individuals. The scale of these benefits was obviously of a much lower level than today though it was perhaps- a form of tutelage for what we now see.
It was also the case, inside the country during the 1980s when some individuals accessed funds locally or from overseas and through these funds were able to secure the loyalty of other individuals. These individuals were often encouraged to form organisations with a particular orientation and those who possessed funds were able to determine whether or not organisations rose or fell, whether they had funding for hiring venues or paying transportation or could supply the food needed for delegates at one or other meeting or to print T shirts and influenced various other factors that determined whether or not an organisation survived on a sustainable basis.
The Thabo Mbeki presidency was characterised by patronage, though it generally did not converge with criminality or illegality to anything like the extent that is found today. It played itself out in appointments as well as the way some people were in the know of what the president wanted and others were not, those within the circle of influence being better prepared for or being part of decisions that were made.
At the time of the dismissal of Zuma as Deputy State President in 2005, leading to an upsurge of support for Zuma (culminating in his election victory at the ANCs 2007 Polokwane conference), some individuals who had linked their future with Thabo Mbeki decided either to continue with that relationship and in most cases these people lost or resigned from positions of power. Alternatively, there were many who saw the writing on the wall for Mbeki and decided to throw their lot in with the rising Jacob Zuma. Many of these individuals had appeared to be very close to Mbeki but they recognised that they could no longer benefit from that relationship and chose their own more or less lucrative survival.
Some others, like the leadership of the SACP and COSATU also disagreed with features of the Mbeki period, notably the Growth Economic and Redistribution macroeconomic policy (GEAR), referred to as the 1996 class project and claimed to support the rise of Zuma on an ideological basis, as a way of remedying this conservative macroeconomic policy.
In contrast to Mbeki, SACP and COSATU leaders depicted Zuma as a person who was sympathetic to the poor and less secretive than they depicted Mbeki as being.
Many of these individuals knew very well that the basis on which they were advancing the candidacy of Zuma was false; that Zuma had withdrawn from the SACP in 1990, when -unlike in the period of exile- being in the leadership of the Communist Party was no longer prestigious or advantageous. There was no consistent pro-working class or people-centred orientation attaching to Zuma. In fact, until shortly before his dismissal by Mbeki their political and socio-economic orientations had been more or less similar. One of Zumas biographers Jeremy Gordin refers to Zuma and Mbeki being so close in their thinking that they were more or less joined at the hip; they operated as a team and had for a long time. (Zuma: a biography, 2008, p 56).
The SACP knew this better than most. What they did was use their then considerable ideological and moral powers to project Zuma as being what they knew he was not; so eager were they to get rid of Mbeki. This is what is known as fraudulent misrepresentation in the law of contract, that you sell a product on the basis of qualities that you know it does not possess.
It may also have been that some of the SACP and COSATU leaders understood the inauguration of a Zuma period as bringing benefits for themselves and indeed SACP and COSATU leaders have become ministers and deputy ministers in this period.
In visiting Zuma on us, these leaders endorsed or were complicit in Zumas hyper patriarchal and aggressive conduct in his rape trial and the militarism associated with his rule the singing of Umshini Wam, a song of war as his trademark song, endorsing his ethnic chauvinism (100% Zulu) and numerous other features that ran counter to the very basis for forming the ANC (that is, eschewing tribalism) and in the case of the SACP, gender policies that had become an important part of its identity under Chris Hani.
The SACP leadership now calls for the resignation of Zuma and says it was wrong in supporting him in 2007. But it is not clear that it has articulated all the reasons why it was wrong not simply that he has turned out to be corrupt. Unless there is full awareness of the violent, hyperpatriarchal and dishonest character of this period we do not learn all the lessons.
Rebuilding the ethical qualities of South African public life will take time. It is both an intellectual question, deciding what is and is not ethical and a psychological one, deciding whether or not one will act out what we understand to be correct. We have to recognise and choose whether or not to act ethically. Let us hope that likeminded people can drive a process whereby ethical conduct is revived as a desirable and necessary basis for conducting our social and political life. It may be that if the proposed national dialogues take off and involve people from all sections of our society, in a meaningful way, that they can play a role.
This column first appeared in Creamer Media's polity.org.za.
Raymond Suttner is a scholar and political analyst. Currently he is a Part-time Professor attached to Rhodes University and an Emeritus Professor at UNISA. He served lengthy periods in prison and house arrest for underground and public anti-apartheid activities. His prison memoir Inside Apartheids prison will be reissued with a new introduction covering his more recent life outside the ANC and will be published by Jacana Media late in May. He blogs at raymondsuttner.com and his twitter handle is @raymondsuttner.
15 May 2017
Eskom CEO Brian Molefe received a warm welcome from the staff on his first day of duty on Monday.
15 May 2017
Public Enterprises Minister Lynne Brown has been summoned to Luthuli House to explain Brian Molefe's return to Eskom.
14 May 2017
The governing party says the return of the Eskom CEO is reckless and makes a joke of the ANC.
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Collapse of ethics in public life: how do we rebuild? - eNCA (satire)
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