Amazon Set to Face Antitrust Charges in European Union

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LONDON — European Union officials are preparing to bring antitrust charges against Amazon for abusing its dominance in internet commerce to box out smaller rivals, according to people with knowledge of the case.

Nearly two years in the making, the case is one of the most aggressive attempts by a government to crimp the power of the e-commerce giant, which has largely sidestepped regulation throughout its 26-year history.

The European Union regulators, who already have a reputation as the world’s most aggressive watchdogs of the technology industry, have determined that Amazon is stifling competition by unfairly using data collected from third-party merchants to boost its own product offerings, said the people, who spoke on the condition of anonymity because the deliberations were private.

The case against Amazon is part of a broader attempt in the United States and Europe to probe the business practices of the world’s largest technology companies, as authorities on both sides of the Atlantic see what they believe is a worrying concentration of power in the digital economy.

Margarethe Vestager, the European Commissioner who leads antitrust enforcement and digital policy, is also examining practices by Apple and Facebook. In Washington, the Justice Department, Federal Trade Commission and Congress are targeting Amazon, Apple, Facebook and Google.

William Kovacic, a law professor at George Washington University, said the tech industry was facing a “striking critical mass” of attention from governments around the world, including Australia, Brazil and India. He said that regulators in Brussels and Washington may deploy so-called interim measures against the companies, a rarely used tool that could force Amazon and other large tech platforms to halt certain practices while a case is litigated.

“This is a groundswell,” Mr. Kovacic said.

An announcement by European regulators about Amazon could come this summer, although the timing is still in flux, one of the people said. The Wall Street Journal first reported the expected charges.

The European Commission’s antitrust office, which started investigating Amazon in 2018, is planning to release what is known as a statement of objections against the company outlining its conclusions about how it has violated antitrust laws. It is just one step in what could be a yearslong process before final decisions are made about whether to impose a fine or other penalties on the company. A settlement could also be reached.

Amazon declined to comment, as did the European Commission.

The case stems from Amazon’s treatment of third-party merchants who rely on its website to reach customers. Investigators have focused on Amazon’s dual role as both the owner of its online store and a seller of goods that compete with other sellers, creating a conflict of interest.

Authorities in Europe have concluded that Amazon abuses its position to give its own products preferential treatment. European officials have spent the past year interviewing merchants and others who depend on Amazon to better understand how it collects data to use to its advantage, including agreements that require them to share certain data with Amazon as a condition of selling goods on the platform.

Many merchants have complained that if they have a product that is selling well on Amazon, the company will then introduce its own product at a lower price, or give it more prominent placement on the website.

Bill Baer, the former head of antitrust enforcement in the U.S. Justice Department, said a challenge for regulators will be proving harm to consumers and rivals.

“It is not their success that justifies government intervention,” said Mr. Baer, now a visiting fellow at the Brookings Institution. “It is when that success is used in a way that unfairly limits competition.”

This month, Ms. Vestager signaled more action against American tech giants, including giving her office added antitrust powers to address structural competition problems within an industry rather than just individual cases against a single company.

The European Commission, the executive body for the European Union, is also debating a new digital services law that would include new regulations for large tech platforms like Amazon, Facebook and Apple that play a “gatekeeper role.” Other proposals under consideration include allowing regulators to step in even before a large tech platform has established dominance in a new market.

It is not the first time the European Commission has targeted Amazon. In 2017, officials ordered Luxembourg to recover roughly 250 million euros from Amazon in unpaid taxes. That same year, the company settled an antitrust case concerning its contracts with book publishers for e-books.

But otherwise, Amazon, whose chief executive, Jeff Bezos, is the world’s wealthiest person, has largely avoided tough regulation from authorities in the United States and elsewhere. This is despite criticism that it has crushed traditional industries like book selling and treated workers in its warehouses poorly.

Yet as Amazon’s dominance has grown, and as it has become a gatekeeper for thousands of merchants selling goods online, critics have warned that it is abusing its power and that regulators must act before it is too late.

In Washington, Amazon is being investigated by the Federal Trade Commission as part of broader inquiries by the agency and Justice Department into the tech sector. A case against Google could be brought as early as this summer, people familiar with the matter have said.

Amazon and other tech companies are also the subject of a congressional inquiry into their market power. So far, Amazon has resisted lawmakers’ attempts to bring Mr. Bezos to Capitol Hill to testify publicly.

While European authorities have acted the most aggressively against the tech giants, many have questioned whether their approach is working. In three separate cases in recent years, the European Commission fined Google a total of 8.24 billion euros, the equivalent of about $9.3 billion today. But critics argue that did little to dislodge the internet giant’s dominant market position.

“The challenge is: Are you going to do something that makes a difference and that genuinely alters behavior?” said Mr. Kovacic of George Washington.

David McCabe contributed reporting from Washington.

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Editorial: We can’t breathe toxic air – The Mail & Guardian

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Our political class has been vocal in its condemnation of the murder of George Floyd. It has been quick to align itself to the #BlackLivesMatter movement. His death is a clear wrong, and happening far away enough it requires no action of them here. An easy win.

In the two week of Floyd protests, excessive plumes of black smoke poured out of the smokestacks of the Engen refinery in the South Durban Basin. This sparked a wave of respiratory illness and other health problems, according to the residents of Wentworth. That refinery, along with its peers, has been polluting people’s lungs for decades. Engen denies this.

South African industries have consistently denied a link between their activities and children with asthma or animals dying in polluted rivers. It can hardly be a coincidence that people who live near sources of pollution get sick and die.

Everyone is affected by pollution, but it is the poorest — black people — who paid and still pay the price. These are people who were forced to live next to steel mills by the apartheid regime, or who cannot find anywhere else where they can afford a family home.

This treatment of black lives as inconsequential is woven into this country’s fabric. The colonial system expanded by killing the original owners of the land. Without land to eke out a living, people had no choice but to work in the mines and factories, living in areas designated according to colour.

Since 1994, we have had excellent legislation to control pollution, but business has continued as usual. Although the new environment minister recently said pollution control measures will be enforced.

In South Durban, those with money live on the top of the hills facing the ocean, where the fresh air is, above Wentworth, Austerville, the Bluff and Treasure Beach, the areas most affected by the recent emissions. Government has done little. This is despite the area being a hive of strong environmental action and protest. An activist from the area won the Goldman Prize, considered the most prestigious environmental prize in the world, for their opposition to industries such as Engen.

That refinery has dragged protestors to court to take away their right to protest for the right to breathe clean air. It is hard to imagine this happening if these were white, wealthy lives. And it is not a unique situation. Poor people sucking in pollution is the norm in South Africa. Companies cutting corners and saving money is the norm because pollution doesn’t show up on their balance sheet. Black people dying as a result is the norm.

If black lives really mattered to our leaders, we would take pollution seriously.



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Revolutionaries turn to healthcare – The Mail & Guardian

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Few countries in the world were well-prepared for the coronavirus. Even some of the best-funded, most well-equipped health systems have struggled to cope. In hard-hit Italy and Spain, annual government expenditure on healthcare per capita is more than $1 800, more than twice the global average. In the UK, it’s more than $3 000.

Sudan is less prepared than most. Its government spends less than $100 per capita every year on healthcare. It has 10 times fewer doctors per person and eight times fewer nurses than Italy and Spain. In the whole country, there are fewer than 200 intensive care beds, for a population of 42-million people.

But Sudan has one factor that doesn’t appear on World Health Organisation databases and that most countries don’t have — neighbourhood resistance committees. There are hundreds of these committees around the country, typically comprising 40 or so volunteers ranging in age from 17 to 70, although most are in their twenties. They came to prominence early last year during the country’s revolution, when they organised local protest marches against the brutal 30-year rule of dictator Omar al-Bashir.

Throughout the six-month uprising, they braved tear gas, beatings and live bullets fired by security forces that killed dozens of committee members. In the capital, Khartoum, together with hundreds of thousands of other protesters, they staged a sit-in outside military headquarters, which precipitated Bashir’s removal in a military coup.

Bashir was replaced by a transitional government comprising military and civilian arms, which has embarked on an ambitious project to return the country to democracy.

The coronavirus pandemic came at a bad time for Sudan’s fragile transition. The health effects are a test of the competence of the civilian-run ministry of health, but the virus’s economic ramifications are perhaps an even greater threat. With inflation already running at more than 80% and the value of the Sudanese pound plummeting against the dollar, curfews have brought a halt to an economy that was in dire need of a boost.

Rising bread and fuel prices were the spark for the uprising against Bashir, and many Sudanese citizens are worried that if the economic misery intensifies, the risk of a coup by military members of the government or by one of the country’s many armed groups will increase.

Sudanese protesters, some clad in masks as a precaution due to the Covid-19 coronavirus pandemic, gather to mark the first anniversary of a raid on an anti-government sit-in, in the Riyadh district in the east of the capital Khartoum on June 3, 2020. – Scores of protesters were killed when armed men in military fatigues stormed the sprawling encampment outside Khartoum’s army headquarters on June 3 last year. (Ashraf Shazly / AFP)

The neighbourhood resistance committees see themselves as the guardians of the revolution and, to help the democratic process to stay on track, they have mucked in to combat the pandemic. Hashim, an IT engineer who spends his spare time volunteering for a resistance committee in Khartoum, told me that, before the virus hit, they were still holding marches to put pressure on politicians.

“We’ve also been painting revolutionary artwork and writing music,” he said, “and we’re exposing corruption and trying to solve problems with transport and food shortages. We take on any role that advances the revolution’s objectives of freedom, peace and justice.”

Another young resister is Hadara (it’s still not considered safe for them to give me their full names). He and his peers have been making hand sanitisers, using alcohol that is sometimes used for making illegal liquor in a country in which Sharia law is still in place.

“The health infrastructure is hugely depleted,” Hadara tells me. “If Covid-19 explodes in Sudan, I’m afraid the health sector won’t be able to cope. We try to help them because we want the revolutionary government to succeed.”

The hand sanitisers are distributed to street vendors, street children and to Khartoum’s tea ladies, a few of whom can still be found sitting under trees in the dust serving hot drinks to physically distancing customers. The committees have also helped to sterilise markets, mosques and bus stands; to monitor the queues outside bakeries to make sure people stand sufficiently far apart; and to educate their neighbours — in face-to-face sessions, on social media and through street graffiti — about how to protect themselves from infection.

The committees get their information on the coronavirus from government briefings and from the Sudanese doctors’ committee, which was also active during the revolution and whose members were the subject of particularly violent persecution Bashir’s security forces.

Sudanese volunteers, wearing protective face masks, stand next to a graffiti of the Covid-19 virus in the capital Khartoum on April 8, 2020, as they clean a street during an awareness-raising campaign. – Sudan, which has so far recorded two death out of fourteen confirmed Covid-19 cases, had declared a state of emergency and a near-total closure of its borders on March 16, to tackle the coronavirus pandemic. (Photo by Ashraf Shalzy / AFP)

Dr Salma, a cardiologist, reports that resistance committees were already helping to renovate hospitals before the coronavirus struck. “Now they are fixing ventilators and hospital beds, too,” she says. “Everyone works on their own speciality, but together we complement each other.”

The committees are also helping to mitigate the economic effects of the disease. They distribute bread, sugar and cooking gas to people who are confined to their homes. They deliver food to street children. And they are helping to identify the poorest families in each neighbourhood — the ones whose survival depends on earning a daily income — so that they can receive help from the government.

Mohamed Kamal, whose family have been in quarantine for two weeks in their home in Omdurman after his father contracted the virus, says support from the resistance committees, some of whose members have been given permission to move around during curfews, has been invaluable. “They’ve been delivering groceries to us,” he says. “Our relatives and friends can’t get to us because of the curfew, so help from within the neighbourhood has been really important.”

Although their work is making a difference, some resistance committee members are keen to get back to more traditional revolutionary activities. “Our task,” says Hashim, “is to keep up the pressure on the government, expose corruption and make sure each minister and state governor is doing the right things to help our revolution to succeed. It shouldn’t be up to resistance committees to deliver coronavirus services. But because the government hasn’t been able to carry out its duties at the local level, we have no choice but to get involved.”

Mark Weston is a consultant and writer based in Khartoum. He is the author of the West Africa travel memoir The Ringtone and the Drum. This piece was first broadcast as a radio feature on BBC Radio 4’s From Our Own Correspondent



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Student drops out as tech access issues hinder his learning – The Mail & Guardian

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Senzo Mkhize was in the middle of writing a test when he lost network coverage. He attempted to log back on to the online platform to finish his test, but it would not allow him to.

He got 15 out 100 for that test.

“The network coverage here is so poor that sometimes I have to go up the mountain just to have a better signal,” he told the Mail & Guardian.

But this is not Mkhize’s only struggle. He did not have money for data for online learning. His mother, the only breadwinner in the household, did not make money during the lockdown because she is self-employed.

On days when Mkhize did have data he would log on to the online learning system only to establish that there was a test that was going to be written the next day or that an assignment was due.

All of this left the fourth-year B.Ed student at the University of Zululand discouraged, and it  forced him to take a difficult decision.

Mkhize deregistered from his course last month. “It was not an easy decision to make but conditions were dictating otherwise,” he says.

Mkhize was not writing tests or submitting assignments and he figured that it would be better to continue with his studies next year. “To tell you the truth, I was really struggling,” says Mkhize, from Empangeni. He says although his family was not happy with this decision, they supported it because they saw what he was going through.

In April, UniZulu announced that it had negotiated zero-rated data with MTN, Telkom and Cell C in so its students could access teaching and learning on its online platform without incurring data costs.

But Mkhize uses Vodacom, so he missed out. In any case, this would not have addressed his problem with the network coverage. He says it took him time to arrive at his decision because he had hoped for an announcement to allow students who were battling to study at home to return to campus.

Higher Education, Science and Innovation Minister Blade Nzimande made that announcement last month; on Monday he published directions for the phased-in return of students to campuses.

As of June 1, under level three, higher education institutions are allowed to have 33% of their students return to campus. These students comprise mainly final-year students, those who need laboratories, and all students needing clinical training.

The return to campus came a little too late for students like Mkhize. Although he was a final-year student, he says he was so far behind with his studies that he did not see the possibility of passing.

None of the universities have yet said when the level-three category of students will be back on campus.

However, in the gazette, Nzimande said the institutions need to consider a number of factors, because they allow for the phased-in return of staff and students to campus and residences.

Only staff and students who have received communication from their institution that can return to campus and residences. They will be issued with permits by the institutions.

The directions say that all first-year students in undergraduate programmes will return to campus in level two while the rest of the student population will be back in level one.



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Classes under coronavirus are ‘weird’ – The Mail & Guardian

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This week the first group of learners, grades 7 and 12, returned to their classrooms after schools were closed on March  18. The Mail & Guardian asked two grade 12 learners to write about their experiences of returning to school during the Covid-19 pandemic. 

One is from the renowned Mbilwi Secondary School in Sibasa in Venda, Limpopo. The school produced the likes of University of Johannesburg vice-chancellor Professor Tshilidzi Marwala and is known for producing remarkable matric results. 

The other learner is from Lindley, a small town in Free State, and attends Phukalla Secondary School in Ntha township. 

Fulufhedzani Mutengwe

Mbilwi Secondary School in Limpopo 

Returning to school after almost two months of being at home has been a bit weird, because we are not used to this life. We are not used to a life where we have to put on our face masks on a daily basis at school, not being able to touch or hug our class friends. 

Our principal, deputy principal and a doctor addressed us on how we will have to carry ourselves now at school. We have been provided with masks and face shields. 

When we enter the main gate at school we have to queue to get screened and sanitise our hands before going inside. 

Things have changed a lot. We are now forced to bring our own water bottles and lunch boxes because the spaza shops are not opened. The good thing is that there are only 20 of us in a class so we are able to practise social distancing. 

During break we were not allowed to mingle with one another and we were not allowed to go outside. Everyone remains in class and we eat our food on our desks.

Teachers will no longer come to our desk and assist us one on one, there will be no more group discussions. This is so we can practise social distancing.

But when we are outside the schoolyard going home, things change. People start hugging each other, removing face masks, they do not keep social distance and they get on public transport that is full. 

All of this is against the school rules. It looks like we will only practice the rules inside the schoolyard only. 

Mpho Ntsoahae

Phukalla Secondary School in Ntha, Free State 

Have you ever been caught between a rock and a hard place? That is how I felt when the minister of basic education [Angie Motshekga] announced the reopening of schools on June 8.

I was in two minds about going back to school, especially now because there are many cases of the virus. But I also had to think about my future. I thought to myself, “What will happen if the virus is here in two years time? Does that mean I will never go back to school?” 

I decided to go. 

It was so strange to arrive at school after two months of being at home. The school principal told us that we had to be at the school at 7.15am. When we got there we had to wait to get our temperatures checked and get our hands sanitised before we were allowed inside the yard. We are not used to that. 

Things are so different from what we know. We cannot sit together as friends. We eat in class during our lunch break and we are only allowed to go outside for a few minutes. 

You know, back then you would go to someone’s desk and ask them something that you did not understand, but now we cannot do that anymore. 

We have to remain at our desks to keep a social distance. 

I am worried. I’m not free at school. I am wondering if someone has the coronavirus in my class or if I also have it. We have not been tested for it. It is scary. 

The minister also announced that we will be writing a fully fledged exam. I am very worried about how I will perform because I aim to obtain 80% and above in all my subjects so that I will be able to get a bursary.

When we were at home I tried catching up on my school work. I made myself a study timetable for all my subjects. I was studying two subjects daily and spent about two hours per subject. 

It was a struggle doing all of that without a teacher. I feel that as grade 12 learners we are being put under a lot of pressure. 

I will not lie and say I am not nervous about my results, but I just have to remain optimistic. And no matter the challenges we are facing I will never be discouraged. 



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Northern Cape worried about rise in cases – The Mail & Guardian

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After President Cyril Ramaphosa’s announcement of the risk-adjusted strategy of moving South Africa to level three of lockdown, the explosion of Covid-19 cases was expected.

But the exponential growth is being particularly felt in provinces that had to contend with a only handful of cases for the past two months. The Northern Cape — South Africa’s largest province by geographical area, but smallest by population — saw its caseload more than double in the
first week of level three, from 43 cases to 102.

As of Wednesday night, the number of cases in the province stood at 125, with one death.
Speaking to the Mail & Guardian, Premier Zamani Saul resigned himself to the fact that the province’s case numbers would increase. Through no fault of his citizens, he added, but from the partial opening of interprovincial movement.

“It’s quite clear: the more the lockdown regulations are relaxed, the more we will see a spike in the level of transmission here,” he said. Saul is particularly worried about municipalities bordering neighbouring provinces — small towns like Colesberg and Petrusville in the Pixley Ka Seme
district municipality border the Free State and the Eastern Cape.

The Eastern Cape is a Covid-19 hotspot, with 7 154 cases as of Wednesday. To the west of the province, the Namakwa district — with towns like Springbok and Calvinia, which branch off from the N7 highway running from Cape Town in the Western Cape — is also under constant scrutiny from the Northern Cape.

“I don’t know what’s the solution. We have roadblocks [to screen people for symptoms], and it is quite clear that those roadblocks aren’t very effective … We’re worried about the people coming from Cape Town. Our patient-zero case, in the Francis Baard municipality, was people who went to a churchservice in Bloemfontein. And [together] with the Eastern Cape, they account for a number of cases in our province,” the premier said.

Saul suggested that provinces and districts with high rates of transmission should remain at higher levels of lockdown to protect their neighbours.

The Western Cape is of particular concern. With 36 021 cases as of Wednesday, it is the epicentre of the outbreak in South Africa, accounting for as much as 65% of Covid-19 cases nationally.

There is regular movement of road freight, public transport and migrant workers on the N7 highway along the west coast, the N1 inland, and the N12, which passes towns like Victoria West and De Aar, through to Kimberley. Saul said these routes brought the virus to his province. “Areas of high levels of transmission, based on a case-by-case study, must have higher levels of lockdown. The Northern Cape can easily go to level two. We are in a much better place than any other province in the country,” he said.

The province, with a population of 1.2-million people — about 2.2% of South Africa’s total population — has now had to prepare for an increase in Covid-19 cases.

“We are preparing for the worst, but hoping for the best. We have field hospitals with 2 000 beds dedicated to Covid-19 around the province, including extra ICU [intensive care unit] beds.

“And while the number of cases doesn’t place much of a burden on our public health system currently, we are preparing for the wave. It’s like we’re preparing for war here, but we hope it won’t reach that level,” Saul said.

Major industries like mining have been put on high alert, not only because of workers’ health and safety, but also because of their economic effects on
the rest of South Africa.

The province accounts for 85% of the country’s iron-ore mining and, as been the site of increased exploration for copper, cobalt, and manganesedeposits in the past five years or so.
In recent weeks there have been reports of cases in and around mining towns like Kathu in the Gamagara municipality, about 300km northwest of Kimberley.

“When mines were operating at half capacity, we had no cases of any outbreaks. Even with the increased capacity of mines, our mines have such stricter health protocols, even maybe stricter than some of our public-health facilities. That really is assisting us to help keep our numbers down,” said Saul.

Premier Zamani Saul thinks that provinces and districts with higher rates of transmission should remain at higher levels of lockdown.(Gallo Images / Sunday Times / Masi Losi)

But the province has shown some successes in mitigating the spread of the virus, despite the increase in numbers over the past two weeks. De Aar in the Emthanjeni municipality, Hantam municipality, and Sutherland’s Karoo Hoogland municipality have seen single-digit cases for several weeks.

This has been ascribed to a 500-member team of contact tracers that have crisscrossed the 372 889km2 province when new cases have been identified.

“As soon as there’s a positive case, we release those tracers to pick up each and every individual that has been in contact with a positive case. That has been working. People have been going into self-isolation, and if they are unable to, we quarantine them,” the premier said.



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Allegations of corruption at City Power – The Mail & Guardian

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An executive at the City of Johannesburg’s power utility, City Power, is under investigation for allegedly using his teenage son’s company as a front to score kickbacks from companies contracted to the City.

In following the money, the Mail & Guardian has traced millions from City Power projects that were channelled into a network of companies and individuals, who allegedly have links to Percy Mphahlele, the utility’s general manager in charge of capital contracts related to the building of substations, service connections, bulk supply, electrification (including of informal settlements), street lights, cabling, metering connections and protection.

Some of the money ended up in the bank account of Hlelele Power Projects, whose sole director is Mphahlele’s 19-year-old son, Prince Mphahlele. Prince is also a business partner of 37-year-old Moloshi Seanego, who owns Anego Africa Power, a company allegedly sub-contracted by some of City Power’s contractors. 

The M&G has tracked at least R300 000 that was paid to Hlelele Power Projects in a space of a month between April and May. 

The payments have raised suspicions about conflict of interest and who the ultimate beneficiary is. The concept of ultimate beneficial ownership is used by law-enforcement agencies in money-laundering investigations and refers to a juristic individual who, despite not appearing on company documents, effectively controls and benefits from that company. 

The R300 000 payments are part of about some R6.8-million paid to Anego Africa Power by three City Power contractors, Nolewu Construction, Mohlawe Technology, and Machite Engineering. There is no evidence of wrongdoing on the part of these companies and the payments could have been for work done, which they claim to be the case.

According to company records, Anego was registered last July, about the same time that Hlelele was registered. Curiously, the records also show that Seanego and Prince are co-directors in Mokgalaka Power Technology, which shares the same business address as a former Anego Africa director, 21-year-old Phomelelo Maja.

Both Seanego and Prince also seem to have used the same Orange Grove address — barring what appears to be a typo — as their residential addresses in company records or when applying for finance. 

City Power, the City of Johannesburg’s power company, operates with at least a R2.9-billion budget a year and has been dogged by allegations of corruption for years. The City has also said its energy infrastructure is old, needs constant maintenance and has to be upgraded to ensuring people keep getting electricity. Last week the company’s board informed staff that chief executive Lerato Setshedi had agreed to take special leave after allegations of impropriety by a whistleblower.

The three companies that made payments to Anego Africa are part of a panel of companies that were awarded millions worth of contracts. 

According to a whistleblower’s report to the City’s anti-corruption unit connections, which is backed up by the money flows, these companies are a means to get money back to Mphahlele sitting as the general manager of City Power.

“These companies are given most of the subcontracting work on City Power projects and the person responsible for allocating is none other than Mphahlele. It is believed Anego made several deposits into Hlelele Power Projects [owned by Mphahlele’s son] as kickbacks for the work done, or as a vehicle to launder money,” said the whistleblower.

The M&G understands the whistleblower has handed over the information, including contacts, company records, and bank statements to the City of Johannesburg’s Group Forensic and Investigation Service (GFIS), as well the Hawks. 

Sifting through dozens of pages of Anego’s business account bank statements, the M&G found that money flow was erratic. There were also about 40 cash withdrawals made from the account, amounting to more than R234 000.

For a company that is meant to be a subcontractor on electrical contracting projects, the account is used for anything from purchases at grocery stores to petrol, home-building supplies and paying for Nando’s takeaways and meals at popular eateries in the Waterfall precinct.

The statements, which cover the period between March and May, show e-wallet transactions to dozens of cellphone numbers, amounting to more than R37 000.

The business account also shows that more than R140 000 has been used for shopping at Pick n Pay, Checkers, Builders Warehouse in Rivonia, Clicks and Doppio Zero, among others. 

Anego’s statements also show the company received a little under R1.8-million from Machite Engineering, R3.2-million from Mohlawe Technology, and about R1.6-million from Nolewu Construction during this period. 

These companies were each awarded in 2019 work worth R19.5-million to install and maintain streetlights around Johannesburg

Koketso Maphothoma, a director of Mohlawe, said his company paid Anego for subcontracting work it did on the streetlight contract. 

“We have multiple subcontracts on our projects, and for this one we used five companies, including Anego,” Maphothoma said. “When people come looking for subcontracting work, we never know who they are other than what’s on the paperwork. In any case, we could never have known who Anego pays or what they do with their money … Once we pay them, we really have no say.” 

Machite’s Virginia Teffo said only that Anego was a subcontractor before requesting emailed questions. She did not respond to the emailed questions. Nolewu Constructions’ Brandon Louw could not be reached on the cellphone numbers listed for him. 

City Power spokesperson Isaac Mangena said the utility’s board was informed by GFIS, headed by former Gauteng Hawks commander General Shadrack Sibiya, about the allegations. 

“City Power takes any allegations of corruption in a very serious light. Should there be substance in the allegations, appropriate action will be taken against the implicated individuals in line with City Power internal policies and procedures, he said. “In the event that any action against certain employees is necessary, the media will accordingly be appraised of any such steps. 

It is understood the investigation by GFIS is looking at these payments, as well as further monies paid to Hlelele Power by Anego. 

More than a week ago the M&G sent questions to Mphahlele at City Power, as per his request, but he never responded, not even to follow-up WhatsApp messages. The M&G asked Mphahlele if he was using his son’s company, Hlelele, as a front to receive kickbacks; whether he was running the affairs of the company; and what the relationship was between all the companies. The M&G has been unable to reach his son, Prince, as there are no listed contact details in his company records. 

Enter Seanego’s relative, Joe 

Attempts to reach Seanego of Anego Africa were unsuccessful as well; he did not respond to questions sent via text message and WhatsApp. But a relative of his, Joe Seanego — who owns a similarly named company, Anego Power Consulting and Projects, and previously worked at City Power — met the M&G. 

Joe, who is the chairman of football club Baberwa FC, denied any knowledge of Anego Africa or the payments to Mphahlele’s son’s company. But the M&G was able to link at least one payment of R10 000 from Anego Africa’s records to a staff member at Baberwa FC.

This week Joe confirmed that he has known Mphahlele, as well as his son, since childhood, but he denied any knowledge of payments made by Anego Africa Power.

“I don’t want to comment, because most of those allegations are not true and most of these things are internal fights [against Mphahlele]. I will clear my name with the Hawks. My name is just being used in these fights. My company which is consulting, is not getting any money from anyone,” said Joe.

He said people were trying to discredit him because of his involvement in football as the chairman of third-tier league club Baberwa FC. “This is not a good story at all because it is going to damage my team. I have to look after the players and this is not good. This boy [Prince] is still at school and this story is going to damage the boy,” said Joe. 

Joe’s denials are contradicted by company records, which show that the two Anegos share the same business address on Stirrup Road, Midrand Johannesburg.



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‘I worry about my son returning to school and my other son at home’ – The Mail & Guardian

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Until now it has been flu, fever, stomach bugs and minor bruises that we have had to deal with when it comes to the health of our boys.

I am also raising a son living with autism so that also makes things adventurous in our household.

Enter Covid-19. This is new to us all. Scary. You cannot help but being anxious when you think about how deadly the virus can be.

But I have learnt that knowledge is the best defence in tackling everything.

My husband has been the researcher throughout this period, reassuring us as a family. And when sharing knowledge, we make sure the boys understand what we’re explaining to them.

When the announcement came that schools would be reopening I was surprised. I had thought, for some reason, that was something that wouldn’t happen anytime soon; that schools should be the last institutions to open.

This is partly because schooling for many families, like mine, is not as easy as a child waking up and going to school.

For example, my son Lwandle, who is in grade 7 uses public transport to get to school and back. I thought about the risk involved in this exercise, especially knowing that children will be children and they might not adhere to the physical distancing rules.

Children at his school can maintain distancing in the classroom and adhere to other regulations. But as a parent I couldn’t help wonder how I could be certain that he would be protected when he is out there and not at home.

My anxiety has not been about Lwandle alone. My biggest concern is about his brother, who has had lung infections in the past. Lwandle will come back to us as a family from school where he could have been exposed to the virus.

On Monday morning I woke up and I must say it was not the usual school day that we know in our household.

While preparing him for school I had to drum this message into his head over and over again: “Lwandle, please make sure you do not touch your face when you have the mask on, remember to wash your hands and your hand sanitiser is on the side of your bag.”

I did this even though in the days leading up to the reopening of schools we planned and prepared him as much as we could.

But I still think to myself that all of this is too much for a 12-year-old, even though he is positive and looks forward to seeing his friends.

The whole of Monday I kept reminding myself that I have prepared him the best way I could and that I must trust him.

I think everyone has been focusing on adults in terms of jobs, loss of income and everything else that has changed our lives because of Covid-19. But our children’s lives have also changed a lot — from being with friends daily to having to stay at home. Now they have returned to “a new school”.

But as a family, in consultation with the school, we have decided that we will not be sending Lwandle to school daily. He will be doing most of his school work at home. We have also decided that he will no longer use public transport and that his dad will take him to school.

These are the compromises we have had to take as a family to ensure our safety and his.

Life must at some point get back to normal and we can only pray for the best.

This week, Bongekile Macupe invited Chulayo Thapelo Mthembu to write her regular Education Matters column



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‘Superforecasters’ Are Making Eerily Accurate Predictions About COVID-19

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When Dr. Anthony Fauci said in late May that there’s a “good chance” a COVID-19 vaccine will be ready by the end of this year, Steve Roth badly wanted to believe him. Roth, a 74-year-old New Yorker who endured fever, pneumonia and anxiety while fighting the virus, wants life to go back to normal as much as anyone. And he respects Fauci, the longtime head of the National Institute of Allergy and Infectious Diseases (NIAID), ”an awful lot,” he says. But he just doesn’t think Fauci’s timeline is realistic. Instead, he’s putting his proverbial money on mid 2021.

“Like everybody else, I’d like to see a vaccine today,” says Roth. “But what’s the real world?”

Roth is a semi-retired market researcher, not a biostatistician or epidemiologist, and hardly seems to be the kind of person you’d go to for insight into vaccine production. But in his spare time, Roth moonlights as a “superforecaster”— a member of a team of ordinary people who make surprisingly accurate predictions for the forecasting firm Good Judgement, Inc. In recent months, businesses, governments and other institutions have worked with superforecasters like Roth to help them understand how the COVID-19 outbreak might unfold.

That a group of semi-professional forecasters would somehow have accurate insight into anything as complex and important as the coronavirus pandemic sounds like the stuff of science fiction, or even ancient history—like the seers of old who told fortunes to kings and nobles. But the team behind Good Judgement, Inc. and the organization it spun off from (the research initiative Good Judgement Project) say they have established a rigorous system for identifying talented forecasters and sharpening their abilities. The company’s superforecasters undergo years of testing before they’re brought onto the team—in the early days, through tournaments sponsored by the Intelligence Advanced Research Projects Activity, and now on the open-to-the-public forecasting site Good Judgement Open. Under the current model, the best forecasters on Good Judgement Open are invited to an online community of superforecasters, where they can share ideas and contribute their predictions to a system that aggregates their forecasts. Good Judgement’s clients pay for answers to questions that are important to decision-makers; the superforecasters collect a share of the revenue. (Other prediction services, including Metaculus, use similar models, although like Good Judgement Open, Metaculus’ community is open to anyone; Metaculus also weighs all users’ input, giving more weight to better forecasters.)

Open Judgement’s superforecaster team has a track record of success, having made accurate predictions about world events like the approval of the United Kingdom’s Brexit vote in 2020, Saudi Arabia’s decision to partially take its national gas company public in 2019, and the status of Russia’s food embargo against some European countries also in 2019. Lately, they’ve taken their talents to the epidemiology world—in early February, Good Judgement’s team predicted there would be between 100,000 and 200,000 COVID-19 cases reported by March 20; the world hit the 200,000 mark one day earlier.

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Unlike history’s prophets, forecasters like Roth do not claim to possess supernatural abilities. Instead, they say their accuracy is a result of using specific techniques to structure their thinking and constantly trying to improve their skills. Superforecasters also tend to share certain personality traits, including humility, reflectiveness and comfort with numbers. These characteristics might mean that they’re better at putting their ego aside, and are willing to change their minds when challenged with new data or ideas.

It’s unlikely that superforecasters like Roth could ever fully replace subject-matter experts. Michael Jackson, an associate scientific investigator at Kaiser Permanente Washington Health Research Institute, cautions that superforecasters are a “black box,” meaning their less-than-scientific methods make it impossible to vet their work in the same way that a scientist’s output would undergo peer review. And Philip Tetlock, a professor at the University of Pennsylvania and a co-founder of Good Judgement, acknowledges that there are times in which expertise is crucial (for example, he notes that some public health experts warned about the possibility of a coronavirus pandemic early in the outbreak.)

However, Tetlock argues that superforecasters have skills that experts may not: for example, they may also be more flexible than traditional scientists, because they’re not bound to a particular discipline or approach. Their predictions incorporate research and hard data, but also news reports and gut feelings. That way of working may increase their overall accuracy, says Tetlock. “Talented amateurs who pay attention to both the science and the news seem to be better at putting accurate probabilities on key outcomes in this phase of the crisis,” he says. “The experts were really good at warning us about the fundamental danger, but they may be less adept at adapting nimbly to the dynamics about this phase of the crisis.”

Superforecasters aren’t just smart, Tetlock says; they also tend to be actively open-minded and curious. They’re in “perpetual beta” mode, as he puts it in his book on the topic, Superforecasting: The Art and Science of Prediction— always striving to update their beliefs and improve themselves. Bryan Hartman, a 36-year-old computer science teacher in Illinois and superforecaster of six years, says that kind of flexibility can improve their predictions.

“[Superforecasters] provide a lot of counter information, which is called ‘red-teaming,’” says Bryan Hartman. “It’s not in a way to press anyone’s buttons. It’s always to make everyone see the whole picture … it’s very collaborative, and very few people take anything personally. We’re just trying to see if we can get it right.”

Superforecasters are particularly good at predicting how people’s choices will affect future outcomes, says Good Judgement Inc. vice president Marc Koehler. That kind of insight that could be particularly helpful during an event like the COVID-19 pandemic, given that people’s adherence to measures like social distancing and mask-wearing can have dramatic effects down the road.

“If you’re wondering how a virus rips through a herd, an epidemiologist is going to give you the best answers about whether it mutates and stuff like that,” says Koehler. “But when the herd turns into human beings who make decisions to comply or not comply with different guidelines, and when governments set policies about stay home or not at home, or keep schools open or not, when all of those different factors get involved, that’s where a group of human forecasters really excels.”

Jackson agrees that it’s possible superforecasters could better predict or accommodate for events like mass protests compared to typical viral modeling approaches. “The challenge is that what’s going to happen in the future isn’t just based on the properties of the virus itself,” he says. “It’s very much driven by human behaviors, and we’ve seen that those can change abruptly and unpredictably even in just the short course of this pandemic so far.”

Furthermore, superforecasters can assist experts in sounding the alarm early in a major crisis—which, in the case of COVID-19, can save lives. Shannon Gifford, a 61-year-old who has been forecasting for more than eight years and is the deputy chief projects officer for the Denver, Colorado mayor’s office, says her colleagues were taken aback when she nudged them as early as January to consider how COVID-19 could affect the city.

“I remember saying in large meetings, ‘Well, whatever’s happening in a couple months could be very different if this virus crashes the economy,’” says Gifford. “And people [were] looking at me blankly, like, ‘You’ve got to be kidding. What are you talking about?’

Gifford says that she wasn’t surprised that people in Denver and elsewhere underestimated the threat of COVID-19, calling it “human nature.”

“Part of it was we simply had no idea, at that point, how much spread had already taken place,” she says. “Because we had so little testing. And I think a lot of people were lulled into inaction believing we didn’t have much of a problem here, when we almost certainly did.”

Officials calling the shots, like mayors and governors, might be skeptical of the entire forecasting enterprise. But even if they ignore the superforecasters’ predictions, they could learn something from their methods. A willingness to change your mind when presented with new information, contend with your biases, challenge one another’s ideas, and break down problems into specific questions are all desirable qualities in people who make big, important decisions. “It’s the combination of thinking about what will happen, and why it will happen, that can be very useful to making decisions,” says Roth.

Correction, June 11

The original version of this story misstated the name of the head of the National Institute of Allergy and Infectious Diseases (NIAID). He is Dr. Anthony Fauci, not Dr. Anthony Facui.

Write to Tara Law at tara.law@time.com.



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GOP-led committee backs renaming bases that honor Confederates, setting up clash with Trump

The Senate Armed Services Committee has approved a proposal to strip Confederate names from military bases and other Defense Department facilities within the next three years, setting up a possible clash with President Donald Trump on the issue.

While a number of Republicans, including committee Chairman Jim Inhofe, R-Okla, expressed some concerns about the way the changes would be implemented, the proposal passed by voice vote Wednesday with only a handful of dissenters.

Sen. Elizabeth Warren, D-Mass., offered the proposal as an amendment to the massive National Defense Authorization Act, which authorizes funds and sets policies for the military every year; the broader bill was approved by the committee in a 25-2 vote. If the language survives the floor vote and is also included in the House version of the package, the president would have to veto the entire bill in order to prevent the names from changing.

Trump said Wednesday that he would “not even consider” renaming Army bases that honor Confederate leaders, despite a nationwide reckoning over racial discrimination in the aftermath of the killing of George Floyd. The Army has 10 military posts named after Confederate military officers, including Fort Bragg in North Carolina, Fort Benning in Georgia and Fort Hood in Texas.

The president tweeted Thursday that Republican senators hopefully wouldn’t “fall for” supporting Warren’s proposal, first reported by Roll Call.

The proposal would set up a commission to make recommendations on the name changes to bases and other military assets, which would be completed within three years, getting input from states and local governments where the bases are located. And there are exceptions, including headstones at Arlington National Cemetery and any assets named for Confederates who later served in wars as part of the U.S. Army after the Civil War.

Sen. Josh Hawley, R-Mo., told reporters he voted against the amendment. Sen. Tom Cotton, R-Ark., also voted no. A source familiar with his decision said Cotton wanted an exception for memorials clearly dedicated to Confederate war dead, and no exception was made.

House Speaker Nancy Pelosi, D-Calif., said at her weekly news conference Thursday that the base names, as well as Confederate statues in the Capitol, “have to go.”

House Minority Leader Kevin McCarthy, R-Calif., said at his own news conference later Thursday that he is “not opposed” to renaming bases, but said he wanted to wait to see how the defense authorization bill shaped up.

The entrance to Fort Bragg in Fayetteville, N.C., in 2014.Chris Keane / Reuters file

Secretary of the Army Ryan McCarthy had said in a statement Wednesday that he was “open to having a bipartisan conversation regarding the renaming of Army bases,” adding that “no decision has been made at this time.”

The Pentagon had also said that the secretary of Defense and the secretary of the Army were “open to a bipartisan discussion on the topic.”



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