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PHALA PHALA SCANDAL

As President Ramaphosa faces impeachment, tough political and constitutional decisions await

As President Ramaphosa faces impeachment, tough political and constitutional decisions await
South African President Cyril Ramaphosa. (Photo: EPA-EFE / Nic Bothma)

The President, who pledged to clean up after years of State Capture and chased social compacting, on Wednesday night faced impeachment over serious violations of the Constitution over his other passion, cattle. There are a few good options — for Ramaphosa or the ANC.

In response to the Section 89 panel recommendation, the Presidency said it recognised the “unprecedented and extraordinary moment for South Africa’s constitutional democracy”. 

SA politics in turmoil as panel says President Ramaphosa must face impeachment

Ramaphosa was considering the report and would make an announcement in “due course”, according to the statement that reiterated: 

“I have endeavoured, throughout my tenure as president, not only to abide by my oath, but to set an example of respect for the Constitution, for its institutions, for due process and the law. I categorically deny that I have violated this oath in any way, and I similarly deny that I am guilty of any of the allegations made against me.” 

It’s exactly what Ramaphosa had also told the three-strong Section 89 panel chaired by retired chief justice Sandile Ngcobo, according to the presidential statement leaked on Wednesday ahead of the report’s publication. 

In that tactically timed leak, part of an overall strategy of political spin, was Ramaphosa’s request for the panel to conclude “this matter ought not to be taken any further”. 

But ultimately facts matter — and the panel decided differently. 

Its 82-page report raised “enduring questions” over the source of the stolen money, why the theft at the President’s home was not reported properly, or to any other police officer than the head of the presidential protection detail, and why the SAPS requested their Namibian counterparts to handle the matter “with discretion”. 

And so in a carefully phrased 72 words, the panel recommended impeachment proceedings against the President for paid work outside his official duties, exposing himself to a conflict of interest and contravening the Prevention of Corrupt Activities Act. 

“There was a deliberate intention not to investigate the commission of the crimes committed at Phala Phala openly … 

“The request to the Namibian Police to “handle the matter with discretion” confirms this intention. 

“The president abused his position as head of state to have the matter investigated and seeking the assistance of the Namibian president to apprehend a suspect. 

“There was more foreign currency concealed in the sofa than the amount reflected in the acknowledgement of receipt. This raises the source of the additional currency…” 

In parallel to the Presidency statement reiterating Ramaphosa’s good governance credentials, the ANC called a special National Executive Committee (NEC) virtual meeting for Thursday evening from 7pm, according to the notice seen by Daily Maverick

Speculation on Wednesday, even, was that Ramaphosa would offer to resign, or insist the ANC continues to support him.

And this is where the options emerge as politically awful at worst, and awkward at best.

The Constitution, strictly speaking, does not deal with a presidential resignation. However, precedent exists from September 2008 when then president Thabo Mbeki resigned in line with the ANC NEC decision to recall him in the bruising political battle with party deputy president Jacob Zuma. 

After Mbeki’s resignation, Parliament met on 21 September to accept it, effective from the 25th when the National Assembly elected a new president, Kgalema Motlanthe. 

Should Ramaphosa decide to resign — and that’s not a given at this point — it could effectively put Deputy President David “DD” Mabuza in the running as president.

But resignation may just be a figment of imagination in the minds of those opposed to Ramaphosa, inside and outside the so-called radical economic transformation grouping. 

If Ramaphosa fights to stay on, it’s expected he’d muster sufficient support. Right now CR22 has put Ramaphosa in the lead to retain the ANC presidency for a second term. 

Ramaphosa has the support from if not of all his ANC, then large sections crucially when it matters. In Parliament, for example, presidential protection was extended by governing party MPs voting down the DA motion debate for a Phala Phala ad hoc committee that would have had a wider reach than the S89 impeachment motion.

Read more in Daily Maverick: “ANC MPs leveraging Parliament to take the sting out of Ramaphosa’s Phala Phala scandal 

The ANC parliamentary caucus had pushed a line of separating Ramaphosa the President from Ramaphosa the businessman with shares in a business.

Read more in Daily Maverick: “The Phala Phala forex theft — it’s not the President, it’s his business, says ANC

But the Section 89 independent assessment panel finding of serious presidential violations of the Constitution has shifted the ground. 

The ANC in Parliament faces a conundrum — vote for the panel report and recommendation and effectively move to the second phase of impeachment, the establishment of a committee that would, for example, hold public hearings. 

It’s still possible that no impeachment would happen. That impeachment committee would have to decide on that, and two thirds of the National Assembly would have to support such a finding, according to Section 89 of the Constitution. 

Or the ANC does what it usually does when under criticism, perceived or real — draw up the laager. That could mean actually voting against the Section 89 independent assessment panel to protect the President. 

The precedent also exists for that — some eight votes against opposition motions of no confidence in Zuma, including a crucial one in August 2017 that ANC heavyweights styled as an opposition coup d’état and regime change

The damage to Parliament’s status, reputation and standing would be dire. 

DA Chief Whip Siviwe Gwarube on Wednesday night said this was “a defining moment for our constitutional democracy and must not be taken lightly” and the focus must be firmly on Parliament. 

“While a vote on whether to institute impeachment proceedings against the president require a 50% majority, we do hope that the ANC in Parliament will put party interests aside and abide by the constitutional obligation we all have.” 

United Democratic Movement leader Bantu Holomisa, meanwhile, said there was no further need for Parliament to consider this matter — Ramaphosa should be recalled by the ANC. 

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“South Africa cannot afford another scenario where the nation and the world is focused on the misdeeds of our president. We cannot afford to have a president in office facing these serious indictments.”

The Section 89 motion initiator, African Transformation Movement (ATM) leader Vuyolwethu Zungula, welcomed the panel findings and recommendations. 

The EFF has also welcomed the Section 89 panel report. “The findings are tantamount to a betrayal of South Africa by a man who has been entrusted with upholding, defending and advancing this country’s laws,” it said in a statement, adding later: “The EFF reaffirms that Ramaphosa runs a sophisticated money laundering operation in which he uses his employees to avoid direct accountability.” 

The matter will draw to a head on Tuesday, 6 December when the report is scheduled in the House. Given the politics, it will be debated, and voted on. 

But it’s not the end. 

Ramaphosa’s Farmgate scandal – a timeline of what we know (and don’t know) so far

The police, Public Protector and the South African Reserve Bank (SARB) probes are ongoing. 

Speaking during Tuesday’s update of Hawks business, the elite unit’s boss, Lieutenant-General Godfrey Lebeya, said 68 statements had been taken in relation to the Phala Phala saga, which remains under investigation. 

The 2004 Prevention and Combating of Corrupt Activities Act in Clause 34(1)(b) simply says even a suspicion of theft, fraud, extortion or forgery must be reported to “any police official”. 

And that would include the head of the presidential protection team, according to Ramaphosa’s statement to the Section 89 panel: 

“I reported the housebreaking and theft to (Major) General (Wally) Rhoode as he is responsible for ensuring my safety and security in view of the position I occupy. I expected that he would do all that is necessary and take any other steps required in response to the information I had shared with him.” 

The Public Protector is on public record also as saying investigations are continuing under the 1998 Executive Ethics Act. 

Ramaphosa, who had told the Public Protector the dollars were paid by a Sudanese businessman for buffalo, as he also did to the Section 89 panel, would have insisted he had declared all his financial and business interests — and did not have an active role in, or income from, the farm operations. 

Or as he told the Section 89 panel according to the leaked statement: 

“Ntaba Nyoni, which operates as Phala Phala Wildlife, is a separate legal entity. I am the sole member of the close corporation, but I do not work for it and do not get any remuneration from Ntaba Nyoni…” 

Parliament’s register of members’ interest published on its website reflect these declarations between 2014 and 2017. Since becoming President in February 2018, and resigning from the national legislature, Ramaphosa declares to the Cabinet secretary. 

And while the SARB does not comment on any of its probes, like foreign exchange violations, Ramaphosa in his statement to the Section 89 panel also gave a hint of how he cooperated with that investigation. 

“The SARB asked me to get information from the very persons the ATM claims were its correct interlocutors — the manager of the farm and its relevant employees” 

And so Phala Phala General Manager Hendrik von Wielligh and lodge Manager Sylvester Ndlovu could ultimately be fingered as the responsible persons. 

The Phala Phala saga in all of its aspects is messy. It presents no easy options — not for Ramaphosa, not for the ANC.

Yet what happens next will define the constitutional democratic moment in South Africa — and shape party, state and the country. DM

Gallery

Comments - Please in order to comment.

  • Sydney Kaye says:

    Of course he could apply to review the panel’s finding.

    • Kanu Sukha says:

      Absolutely …. he could employ/deploy Dali Mpofu … at our expense … again !! How Dali would love this opportunity ! Imagine all the “peanuts” he (and his cronies) could make !

  • Stuart Hulley-Miller says:

    I am really amazed at the press sentiment in this, along with otherwise sensible commentators. Whether we like it or not, this is going to be done the African way and hoping that Cyril gets impeached is seriously dumb. Just think about it. If he goes, who takes over and what happens to our country. We need to consider reality, not high ideals which will drag us all down.

  • Johann Olivier says:

    DO the democratic right thing, CR!

  • Alley Cat says:

    Another let down. From Ramaphoria to Ramafedup. Despite our perhaps naïve hopes he has once again proven to be just another ANC cadre that is there simply to serve his own interests and those of the ANC.
    So where to now? Please not DD Mabuza? Is there ANYBODY in the ANC that is a genuine leader and true upholder of the freedom charter and our constitution? Sadly, I think not!

  • Hermann Funk says:

    Despite Zille, the DA appears to be the only alternative for 2024.

    • Paddy Ross says:

      Zille is Zille and I hope has the good sense not to put herself forward as a potential President. As usual, I urge the electorate to vote for the policies of a political party and ignore the personalities within that party.

  • Geoff Krige says:

    In accepting corruption as the order of the day, the ANC has severely damaged South Africa and there are no winners. Is South Africa better off with Ramaphosa as a compromised president, or with David Mabuza as an extremely compromised president? Clearly neither. What we need now is two things from the IEC: 1. For the next general election to be brought forward to as early a date as possible; and 2. For any person with any corruption charge against them or their family or close associates to be excluded from eligibility for the election lists of any party. A tall order yes, but the ANC has really not left us any other option.

    • Roelf Pretorius says:

      We are probably far better off with Ramaphosa being the President until 2024. Because I think we know that after 2024 we are highly likely to have a coalition as government, which means that at the very least the ANC will not be able to go on with their corruption unchallenged (their coalition partners will be able to veto them). Of course we may even have a government without the ANC entirely . . .

  • Anesh Govender says:

    Well at the very least he did not steal taxpayers money like every other leech in the system…

    List of potential wannabes make me shudder….

  • Inge Evenwel says:

    So he faces impeachment but the state capture mastermind dance the night away on his medical parole…..

  • James Francis says:

    Am I the only one who thinks this is a red herring and that the press and opposition are effectively doing Arthur Frazier and the RET faction’s dirty work? I’m not a fan of the President, but better the devil you know. None of the options replacing Ramaphosa are good, and the ANC still wields more than enough power to cause even worse damage to the country. Maybe that’s not the best principled position but it is more pragmatic. We will lament Ramaphosa’s departure or even his weakened position.

  • Willem Boshoff says:

    The only painful thing about this is seeing far worse criminals now suddenly outraged by corruption; licking their lips while Ramaphosa’s long-game is coming to a sudden stop. At least we can all agree that the ANC “good guys” are merely less corrupt that the others. Come 2024 concerned citizens better vote in numbers or we might end up with an ANC RET & EFF coalition in charge!

    • James Francis says:

      If the past twenty years of world politics have taught me anything, it’s that elections rarely cause the upset we need. I doubt 2024 will do much, other than empower more minority parties who then sell their votes to the highest bidder.

  • John Counihan says:

    Mabuza as president would be, in the words of B J Vorster, “too ghastly to contemplate”. Ramaphosa certainly is the lesser of the evils. And the ANC is riddled with evil! Isn’t it bizarre that the man who exposed Phala Phala, Arthur Fraser, is a de facto criminal. But then so is the treasonous, corrupt JZ, and he struts around free as a bird (vulture?), so bizarreness is part of the crazy theatre of life the ANC has created in our beloved country, isn’t it?

    • Cunningham Ngcukana says:

      Mabuza is a product of ANC processes as he did not elect himself. He did not appoint himself as Deputy President and to entertain garbage that Cyril is different from Zuma when his track record shows that he is no different from him. He was there during state capture. He failed the country during the JUly riots in 2021 with his pick and pay general. He has failed to defend the Zondo Commission from Mantashe and Mokonyane. He has failed with distinctions to defend the Constitutional Court on the Janus Walus judgement. He has no spine and Mdumiseni Ntuli remains a shining example of leadership within the ANC where it is a scarce commodity.

  • Lisbeth Scalabrini says:

    Money in an armchair still sounds like something out of a children’s fairytale. President Ramaphosa has not lived up to what we expected of him, but we still don’t really know what exactly has happened at Phala Phala. Maybe the panel does? Why has it not been made public? Whatever the President has done, it cannot level the crimes of Mabuza when he was premier of Mpumalanga or any of many other ANC big shots.

  • dwakerley147 says:

    A genuine moral dilemma.
    Follow the principle that no one is above the law and risk the return of the politicians (longest four letter word in the language) who bled the country dry for nine years
    Or
    Take the cynical view that all politicians are corrupt and defend the President as the best of a bad bunch hence conceding that politicians can do as they will, ss long as it’s not too egregious.
    A rock and a hard place!

    Note that JZ, the perpetrator of much greater crimes never faced impeachment. What then are the criteria for impeachment?
    As we now know from not one but two impeachment hearings in the US, impeachment is intended to address high crimes and misdemeanours. How high is the bar in SA?
    In the US both cases were settled by partisan political voting. The same is very likely to happen in SA too.

  • mike muller says:

    Is it so unusual in world politics for a head of state (or ministers in government) to have a working farm or ranch – think George Bush and the Western White House or Ronald Reagan’s little 300ha place near (not forgetting PW Botha’s die Anker which was a pretty neat real estate investment).

    Yes, the farm manager had better do a good, clean job and keep the books in order but it’s a retreat and hobby space rather than a business …

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