Defend SA's mining industry against profiteering investors
The Congress of South African Trade Unions is extremely concerned at allegations reported in the media today that a senior South African advocate solicited a bribe in return for disclosing information to foreign investors to assist them in a claim against the South African Government (see here).
A group of Italian investors are challenging the legality of the Mineral and Petroleum Resources Development Act (MPRDA), and the empowerment clauses of the Mining Charter, in the World Bank International Centre for Settlement of Investment Disputes in Washington.
They claim that these laws place their previously owned mineral rights under "state custodianship" and therefore amount to "expropriation by stealth', without compensation. They also claim that the clause in the Mining Charter, which requires that 26% of their investments must be divested to "historically disadvantaged South Africans", is not fair and equitable.
A British lawyer representing the Italians has alleged that Seth Nthai, a South African advocate representing the Government, spoke to a representative of the investors about the Government's case, their defences, technical strategies, a possible settlement of the case and a possible ‘reward' for himself in the event of such a settlement.
The allegations against Seth Nthai must be fully investigated and if they are found to be true, strong action must be taken against him. It would be outrageous if South African lawyers are selling information to international business interests at the expense of our independence as a nation and our democratic right to legislate in the public interest and transform the ownership of a key national industry.
COSATU fully supports the MPRDA and the Mining Charter, as essential steps in making this important sector of our economy more broadly owned and more accountable to the people of South Africa, and condemns the investors' bid to use an international tribunal to try to overturn democratic laws passed by the parliament of South Africa.
The episode strengthens the case for the nationalisation of the mining industry and placing it under democratic control and management so that it is no longer a source of profit for capitalist investors but a national asset run for the benefit of the country, the mine workers, mining communities and the environment.
Statement issued by Patrick Craven, Congress of South African Trade Unions, January 28 2010
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