Stephan Hofstatter
4 December 2008
Johannesburg — VIOLENT protests have erupted in Motlhotlo village in Limpopo against two Section 21 companies set up by Anglo Platinum to relocate 6000 villagers from the company's Potgietersrus Platinum mine.
The nonprofit companies were established to represent the community in all projects and subcontracts paid for by Angloplat's R627m relocation fund, including a joint venture with Group Five to build the new village.
The relocations, which took place amid violent protests last year, were the subject of a South African Human Rights Commission (SAHRC) report released last month. The report found human rights violations had occurred during the move, especially with grave relocations and water supply, but fell short of blaming Angloplat.
About 80 diehard families have refused to move from an area Angloplat wants to use for dumping waste rock.
This could delay full implementation of the mine's R5,8bn expansion project, expected to double production.
The diehards, who objected to relocation contracts signed on behalf of the community by the Section 21s, appear to be gaining support with the Motlhotlo protesters.
Both groups accuse the Section 21 boards, mostly headmen, of mismanaging the relocation fund and abusing their authority to secure jobs, contracts and business opportunities for themselves and their families and friends.
The Group Five contract alone, which ended in September, was worth R453m. Anger at how this money was spent is boiling over.
Last weekend the Motlhotlo protesters vandalised 13 homes belonging to Section 21 members and fire-bombed one, police said. On Monday 46 protesters appeared in Mokopane Magistrate's Court charged with public violence and malicious damage to property. They will remain in custody until their case is heard on Monday .
Earlier that morning the same court dismissed -- for insufficient evidence -- a case against 47 protesters arrested on May 29 for public violence and malicious damage to property after the vehicle of an undertaker trying to relocate graves was stoned.
The decision was greeted with jubilation by more than 100 supporters outside the court, community leader Susan Lele said. She was among those charged. "We are very, very excited that justice has been served."
She said the protesters had tried to prevent graves from being moved after the Section 21s refused to supply them with proof that the right families would be compensated.
She echoed calls made this year for an audit of how the companies had spent the relocation funds. "We need to see financial statements. They must put their cards on the table."
The SAHRC report's only direct criticism of Angloplat was for delegating responsibility for local consultation to community structures lacking transparency and accountability.
But Angloplat has defended the Section 21s as independent legal entities best equipped to assert the community's rights. "To the best of our knowledge they are the legitimate representatives," said spokeswoman Mary-Jane Morifi.
Most Section 21 directors are members of a relocation steering committee, elected at a community meeting in 1998 presided over by the traditional authority. Many are headmen.
The Section 21s have no mechanism for removing non-performing directors because only members have voting rights to elect or dismiss directors. Theoretically anyone in the community can become a Section 21 member, but their articles of association stipulate a written application must first be accepted by the directors.
Directors are allowed to do business with the Section 21s if they declare their interests. They also decide what they get paid as stipends.
All costs are paid by Angloplat's relocation fund.
The Motlhotlo Development Committee (MDC), a rival body that claims majority support, says board elections have not been held since the Section 21s were formed in 2003, despite regular requests.
This week the MDC, whose elections were supervised by the Independent Electoral Commission, repeated calls for the boards to be dissolved and for a full audit.
"Where are the financial documents, where are the tender documents? They must come clean," says MDC chairman David Moselakgomo.
The Section 21 chairmen and traditional leaders dismissed the call as opportunism by self- interested splinter groups.
"We work well with the mine," says acting Chief Johannes Langa, on behalf of Mapela Tribal Authority. "Some say the relocation is bad but most say it is good."
David Moloto, who chairs one of the Section 21 boards, dismisses allegations of nepotism. "They are lying to the world. I am serving the community, not just myself and my family."
Moloto, the Section 21s' lawyer Bhadrish Daya and Angloplat declined to provide Business Day with financial statements detailing how relocation funds were spent.
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