Monthly Archives: May 2011


Still massive social grant fraud

The SA Social Security Agency (SASSA) has lost R238m to social grant fraud since 2005, Social Development Minister Bathabile Dlamini said on Monday.

The agency was defrauded of R12m in 2005, when it was established. In 2006, the figure more than doubled, the minister said in written reply to a parliamentary question by the Democratic Alliance.

She said 17 908 fraud cases were brought to court by December 2010 and 15 004 people have so far been convicted of social grant fraud.

Dlamini said by the end of last year, the government had recovered more than R85m, and was hoping to get back all money lost due to fraud.

She said every person convicted for defrauding Sassa was made to sign an acknowledgement of debt to repay the money, with interest of 15%.

The state is still owed R214m and is collecting the money on a monthly basis. The interest collected is paid over to the national treasury.

The agency distributes social grants to the aged, disabled and children and the abuse is putting a severe strain on the social security system, depriving legitimate claimants access to social assistance.

Credit to: News 24 and Sapa

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New Joburg mayor insists on accountability

Newly appointed City of Johannesburg mayor Parks Tau, who is still to be officially elected in the council sittings this week, says the management and staff of the city of Johannesburg must be held accountable for the job they do.

Tau was addressing the media on Tuesday during the announcement by the ANC Gauteng of the 11 mayors who are going to lead various municipalities that were won by the party.

“We need to improve the performance of the management and staff as the organisation,” he said.

“By that I mean, we need to make sure that we improve accountability of the management, of staff and to ensure that everybody is held accountable for the work they are employed to do,” Tau told media.

“The people of Johannesburg, clearly during the election campaign articulated to us quite clearly that they need value for their money. All employees of the city must work hard to make sure that we improve service delivery.”

Tau says going forward the city of Johannesburg approach was about consolidating the programme of transformation.

He also said that the city needs to look at the sustainable practices in relation to water, electricity and waste management.

“The city needs to improve repairs and maintenance of the infrastructure,” he said.

Other mayors who were appointed are Ekurhuleni Metropolitan Municipality – Cde Mondli Gungubele; City of Tshwane – Cde Kgosientsho Ramokgopa; West Rand District Municipality – Cde Mpho Nawa; Sedibeng District Municipality – Cde Simon Mofokeng; Emfuleni Local Municipality – Cde Greta Hlongwane; Mogale City Local Municipality – Cde Calvin Seerane; Merafong City Local Municipality – Cde Maphefo Letsie; Randfontein Local Municipality – Cde Sylvia Thebenare; Lesedi Local Municipality – Cde Lerato Maloka and Westonaria Local Municipality – Cde Nonkoliso Tundzi.

All the 11 ANC’s Mayoral Candidates are going to be elected in Council sittings this week of their various municipalities.

Credit to: Business Day

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ANC to make radical municipal changes

The ANC, in a desperate bid to arrest the decline in its support, plans to make radical changes in the municipalities.

In the coming weeks, the ruling party will introduce measures that will make mayors, municipal managers and other senior officials more accountable, as members of parliament and of provincial legislatures are.

The decision comes in the wake of last week’s local government elections in which the ANC’s support declined from about 66% in the 2006 elections, to about 62%.

Its rival, the DA, has enjoyed an increase in its support, from about 16% in 2006 to about 24% last week.

The municipal reforms are part of the ruling party’s municipal turnaround strategy. Party spokesman Jackson Mthembu said they would be implemented “as soon as possible”, in an effort to deliver services “faster and more efficiently”.

The move, said Mthembu, would help the ANC arrest the gradual erosion of its support by opposition parties.

The municipal turnaround strategy was conceived in 2009 by Co-operative Governance Minister Sicelo Shiceka in an attempt to revive failing municipalities.

“Our showing in the recent polls has spurred us into action. But we had already started working on the turnaround strategy.

“Even before the elections, we had started showing concerns about the performance of some councils. We didn’t bury our heads in the sand when our people were not satisfied with services. When people vote you into office, you owe it to them to deliver faster and more efficiently.

“We want to implement [the measures] as soon as possible so that people will realise that their vote is not misplaced,” Mthembu said.

The mechanisms being considered include:
•    Introducing municipal bodies to which mayors and their executives, including the mayoral committee, will have to account;
•    Forcing municipalities to be monitored and evaluated, as are all national and provincial government departments, by Minister in the Presidency Collins Chabane;
•    Monitoring councillors at a political level, by making them accountable to party branches, which, will in turn account to subregions. Subregions will account to regions, and the regions their province and;
•    Asking the national Treasury to reallocate unspent municipal budgets.

The ANC, Mthembu said, could not return money to the Treasury while people lacked services.

“Mayors have both legislative and executive powers – and these need to be separated.

“Some sections of a council must look into the main work of the mayor and the executive.

The council must be able to sit on its own without the mayor and the executive,” Mthembu said.

He said the ANC’s national executive committee will this weekend discuss the outcome of the elections, and evaluate the party’s performance and the way forward.

“We plan to implement these [reforms] as soon as possible. You will need a legal framework to implement some of them,” he said.

Independent political analyst Daniel Silk said that all councillors, particularly those from the ANC, will be under “tremendous pressure” to deliver.

“South Africans will be more vigilant and more aggressive in demanding services. The ANC will have to be more responsive to the needs of the people.

“The defining feature of the next five years will be that South Africans will become more vocal in their criticism of the ANC, even those who voted for it.

“ANC councillors are in for a rough, tough time – otherwise they will see an increased erosion of their support.”

Silk said the monitoring and evaluation of performance at municipal level would mean nothing if the administration failed to appoint skilled and talented people.

“It’s all about finding the right skills. Chabane has been there but we haven’t seen much from him.”

ANC president Jacob Zuma, whose authority will be tested next year when his party holds its elective conference, has promised to act against public officials who fail to deliver.

His tenure will largely depend on the ANC halting the slide in its support, and winning back support in the tripartite alliance, especially that of unions federation Cosatu.

Mayors are to be named this week and Zuma will have to explain to the party’s Women’s League why women have been overlooked for top posts in metro councils.

Credit to: Times Live

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Bumpy road ahead for Zuma as ANC loses support

Jacob Zuma’s leadership of the African National Congress (ANC) was in the spotlight yesterday as his party lost support in major centres while the Democratic Alliance’s (DA) support surged.

By 10pm last night, the DA was enjoying 24,1% support countrywide, up from 15% in the previous municipal poll. Its performance in several black townships across the country suggests it is being accepted by black voters.

The DA’s support base is now about one in four South Africans, which — given that only 9,2% of South Africans are white — will go a long way in backing its claim it is being accepted by black voters.

The DA’s growth, largely at the expense of the ANC, may make Zuma’s chances of re-election as the president of the ANC difficult. The party will hold leadership elections next year.

These elections indicate that SA may be moving towards a two- party dominant system.

The National Freedom Party (NFP), launched three months ago, made inroads in Inkatha Freedom Party (IFP) strongholds in KwaZulu-Natal. By last night, the NFP had gained two municipalities from the IFP, from which it broke away.

The Congress of the People (COPE) had captured 2,2% of the vote . But the African Christian Democratic Party had won only 20 seats based on the votes counted. Independent councillors won 83 seats across SA.

The ANC seemed to be suffering from a punishment vote, with its traditional black supporters voting against it.

The party’s policy head, Jeff Radebe, conceded last night that the DA was the growth party in these elections. He said the ANC needed to “go back to the drawing board to see what is happening”.

“One of the issues is that some people changed the candidates chosen by the communities,” Radebe said.

He said, however, that the DA’s growth should not be exaggerated because the ANC had retained its metros. “There have been challenges and the ANC will attend to those challenges.”

The DA increased the number of councils it controls with a clear majority, from six before the elections to 17.

The Cape metro vote was still outstanding at 10pm last night.

The number of municipalities the DA would govern is expected to increase as the party is expected to form coalitions in areas where there was no outright winner, and in hung municipalities.

It has made inroads in ANC- controlled townships. While the votes it received were insufficient to change control, they were an indication of a significant shift. The party got votes in Soweto’s middle-class Pimville and Protea South areas.

In an upset, the DA also won ward 32 in Johannesburg from the ANC. Ward 32 includes Buccleuch and part of Alexandra — an ANC stronghold, and once home to Arts and Culture Minister Paul Mashatile and Deputy President Kgalema Motlanthe .

In the Eastern Cape, the DA increased its number of councillors in the Nelson Mandela Bay metro, where the ANC scraped through with 51% of the vote.

The ANC has 61 seats out of 120 in the metro. That means that if only one ANC councillor is absent from a council meeting, the party will not be able to pass bylaws without opposition support.

In Port Elizabeth’s Walmer township, the DA also registered an increased number of votes.

In the Transkei, the DA won wards in Mthatha, Port St Johns and Lusikisiki. Most significantly, it won a ward in Nguza Hill (Flagstaff), the rural town controversially put on the map by Co- operative Governance Minister Sicelo Shiceka when he diverted its only tarred road to the house he is building for his mother.

In East London the DA took two wards from the ANC — including Gompo Town (Duncan Village) and Southernwood, both of which have few white voters.

Political analyst Mcebisi Ndletyana said the DA was seen as a white-dominated party, and its performance at the polls this week could possibly “shake that monkey out of its bag”.

The official opposition increased its grip on the Western Cape by winning 13 municipalities outright. By using its record in the handful of municipalities and single metro it controlled before the poll, the DA succeeded in making service delivery — and not race — the central theme of its election campaign.

A key result for the DA was its retention of control of the Midvaal council in Gauteng, with an increased majority — after the ANC threw everything into winning the municipality back.

It was expected the DA’s majority in Cape Town would be reduced, but DA insiders were confident the party would win the metro outright. The alliance between the DA and the Independent Democrats (ID) also appeared to have worked, with the DA retaining its areas and ID strongholds. Clearly the DA and ID marriage, with Patricia de Lille as the mayoral candidate, attracted large parts of the coloured vote.

Many of these voters would have been mindful of the declaration by then labour director-general Jimmy Manyi (now chief government spokesman) that there was an overconcentration of coloureds in the Western Cape and the subsequent accusation by ANC heavyweight Trevor Manuel that Manyi was a racist in the mould of Hendrik Verwoerd.

The DA also wrested several municipalities in the province from the ANC: Breede River, Saldanha Bay, Knysna and George — which would not have been possible without support from all races. James Selfe, chairman of the DA’s federal executive, said a significant number of wards had been won from the ANC across SA, and this could not have been achieved without black support, which had more than trebled since the previous election.

Facing defeat in the Cape Town ANC mayoral race, ANC candidate Tony Ehrenreich last night said he believed the ANC’s score would grow as counting continued on the Cape Flats, but conceded the party had failed to win coloured voters away from the DA.

“I don’t think we were going to be able to turn around traditional support to other parties so quickly,” he said, adding that people were still voting according to “apartheid faultlines” in the province.

“Coloured areas voted for the DA.

“So that should tell you that the people feel scared and more secure with people who had traditionally given coloureds a better deal.”

He conceded government spokesman Jimmy Manyi’s controversial comments that there was “an oversupply of coloureds” in the Western Cape, may have harmed the ANC’s chances.

Ehrenreich said he did not regret refusing to run a campaign that targeted specific race groups.

“I’m not going to be pandering to that type of racial division.”

Credit to: Business Day and Sapa

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Voting results almost completed

The Independent Electoral Commission had completed results for 95.1% of the country’s voting districts by 07:30 on Friday.

Counting in the North West and Northern Cape was finished.

The North West went to the ANC with 1.8 million votes (74.99%), followed by the Democratic Alliance, with 395 648 votes (16.14%).

The Northern Cape also saw the ANC win the race, obtaining 677 438 votes (63.57%), again followed by the DA with 237 315 votes (22.27%).

Nationally the ANC continued to dominate the leader board after South Africa’s fourth post-democracy local election.

By 07:00, the ANC’s share of the total national vote stood at 20.5 million (63.51%), with the Democratic Alliance at seven million (22.26%).

Seat calculations were 76.26% complete, with 212 seats of a total 278 allocated.

The province with the largest number of seats to be calculated was KwaZulu-Natal, with 25 municipalities left.

In Limpopo 15 seats still had to be allocated, followed by the Eastern Cape and the Free State with 10 each, Gauteng with three and Mpumalanga with two.

Credit to: News 24 and Sapa

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eThekwini among those fingered in report

It is hard to believe that just 20 years ago the municipality of Durban was regarded as one of the most creditworthy local authorities in the world.

Today the eThekwini metropolitan municipality, encompassing Durban and seven formerly independent local councils with 3 million people, is one of many municipalities fingered in a research report by Ratings Afrika for its deteriorating municipal governance.

The intensive survey, carried out over the past five years, aims to highlight the state of financial governance at municipalities. The information will allow banks to assess the business merit of lending to municipalities that need to supplement their budgets.

Ratings Afrika found a worrying picture in eThekwini, with debt climbing and cash flow under pressure. Similar circumstances exist at many other metros and municipalities in the country as they struggle to extend basic services to all.

A lack of revenue is particularly pronounced in eThekwini, though. Net income as a percentage of total income declined from 25,41% in 2007 to 10,44% in 2010.

With income from water and electricity services under pressure since 2007, the metro did what many of its peers have done — it increased property valuations.

Even increasing this source of income was not enough for the municipality to avoid taking on further debt. Interest- bearing debt as a percentage of operating revenue has climbed from 46,3% to 54,2% while long-term liabilities have risen by R3bn from R5.1bn in 2008 to the present R8.2bn.

Provinces receive a budget from national government, but municipalities and metros mainly have to raise their own funds through rates. This has proved to be ineffective and they are turning to debt to run services.

Ratings Afrika CEO Charl Kocks says municipalities such as eThekwini cannot keep on borrowing to run basic services.

He is especially concerned about liquidity: “It is the lifeblood of any municipality.” At eThekwini, cash from operations as a percentage of income has declined from 34,5% in 2008 to only 13,47%.

The ratings index has a maximum score of 100 and assess 50 municipalities. They take into account the financial position of the municipality as well as its operating performance, debt position and liquidity management. Particular focus is placed on liquidity, which forms 40% of the weighting, followed by debt governance at 28%.

The average score of all municipalities was 62 points in 2007. It has fallen to 48 in 2010.
The lowest-scoring municipality was Madibeng (Brits) with 16 points, followed by Westonaria and Richards Bay with 21 each. Though scoring a full 100 points is technically possible, the best- performing council in 2010 was Saldanha Bay with 87.

Kocks says it is scary that the number of municipalities scoring 35 and less is increasing. In 2007 only three fell into this category but the number has increased to 15. “We are hitting the wall right now,” he says.

The number of municipalities with scores above 80 has declined from nine in 2007 to five now.

As with eThekwini, a marked deterioration is occurring in the bigger metros. Of particular concern is Johannesburg, which experienced a significant decline between 2007 and 2010 and only a moderate improvement over the past year.

The problems in Johannesburg relate to the integration of IT billing systems, negatively affecting revenue. Kocks says there is a real possibility that revenue and debtor figures are at least 10% in error. “But the biggest deterioration is with reputational risk and this could lead to more people not paying or defaulting because the figures cannot be trusted.”

Johannesburg’s performance declined quite rapidly but in 2009 it was one of four municipalities out of 283 receiving a clean audit opinion from the auditor-general.
Research Afrika’s research shows that little has improved since last year. The auditor-general was unable to give an opinion on 81 municipalities because of inadequate data.

Altogether 38 municipalities did not submit reports and 47 received qualified reports.
Kocks says it is not necessarily a political problem. Saldanha Bay is an ANC-controlled municipality while the controversial DA-led Midvaal performed only on average. Other municipalities doing well include Stellenbosch (80) and Lephalale (Ellisras) with 81. Tlokwe (Potchefstroom) was also a good performer at 82.

Sources within municipalities have disputed the figures used by Ratings Afrika in its research. They have questioned the validity of conclusions reached. But Kocks says this criticism should really get one worried. “We used only official data from treasury and all the municipalities had the opportunity to comment.”

Institute of Municipal Finance Officers president Chris Nagooroo says some of the findings could be unduly negative, though he has not read the report. He admits cash flow is a serious problem at most municipalities.

Many municipalities have improved their performance. “But much more needs to be done and we are definitely not where we want to be.”

Credit to: Financial Mail

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All you need to know about the elections

More than 23 million registered voters will have the opportunity on Wednesday to elect their municipal councillors in South Africa’s fourth democratic municipal elections.

Unlike in previous municipal elections, every voter in South Africa will be able to vote for one of 4 277 ward councillors to represent them in their municipality.

The ward councillors can be either a member of a political party, or an independent.

A further 458 councillors will be appointed though a proportional representation vote in each municipality. This excludes district council councillors.

In terms of this vote, if a party receives 70% support, it will be allowed to appoint 70% of the proportional representation councillors in a municipality.

Half the councillors in a municipality are ward councillors directly elected. The other half are proportional representation councillors appointed in terms of candidate lists prepared by political parties.

Voters living in one of South Africa’s eight metropolitan councils will receive a yellow ballot paper to vote for a party, and a white ballot paper to vote for a ward councillor of their choice.

In South Africa’s 226 non-metropolitan local councils, voters will also receive a third green ballot paper.

This is to vote for a party, which will through its candidate list appoint a percentage of councillors who will represent them in 44 district councils that will be responsible for providing bulk services to their municipalities.

Voting will take place at 20 868 voting stations throughout the country.

Unlike in the previous national election in 2009, people can only vote at the station where they registered.

An average of 1 200 voters is registered at each voting station. In densely populated urban areas however as many as 8 500 people are registered at a single station.

A total of 121 political parties and a record number of 748 independent candidates will take part in this election. The high number of independent candidates is largely due to discontent with candidates proposed by the ANC.

For the first time ever, only two wards in South Africa will be unopposed. The ANC candidates will have no opponents in Komga and Queenstown.

In Cape Town, which is currently controlled by the DA, a record number of 32 parties will take part in the polls.

A total of 53 596 candidates have been proposed by various political parties to contest this election.

Voting will start at 07:00 and booths will close at 19:00. Ballots will be counted at the voting stations. The results will then be communicated to the Independent Electoral Commission’s centre in Pretoria.

The first results in the elections are expected before midnight on Wednesday evening. Final results should be out by not later than Friday morning.

Because of changes to the Electoral Act, an Electoral Court will for the first time have the right to declare an election null and void as a result of objections and order a new election in an area before May 31.

The average turnout for municipal elections since 1994 has always been below 50%. In national elections by contrast more than 80% is not unusual.

Analysts say more than 50% turnout would be exceptional and could result in changes in the country’s political landscape.

After this election, Buffalo City or East London and Mangaung, in which Bloemfontein falls, will become metropolitan councils, bringing the total number of metropolitan councils in South Africa up to eight.

This will cause the number of district councils to drop to 44.

The number of non-metropolitan councils will be reduced to 226, from the previous 237.

The ANC in 2006 received 64.8% of the vote, the DA 16%, the IFP 7.6% and a number of smaller parties the rest.

Credit to: Sapa and News24

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Major overhaul of local government structures underway

New legislation is being prepared to link the powers of municipalities to their ability to deliver services, Co-operative Governance Deputy Minister Yunus Carrim said yesterday.

Speaking at a Helen Suzman Foundation roundtable discussion on local government, Carrim gave the clearest signal yet that a major overhaul of local government structures is on the way.

The changes would include increased funding to local councils, which would be linked to their capacity to deliver.

An African National Congress summit on local government last year heard that some district and local municipalities were unable to provide services to their communities, supporting the government’s contention that they were not financially viable.

District municipalities in poor areas are often unable to raise sufficient revenue to provide services and many are increasingly dependent on national government grants to fund their operations.

Admitting that he was in “full election mode” with the local government poll less than two days away, Carrim confined himself to replying to questions. The first was, “Does local government have the capacity to meet its objects as outlined by the constitution?”

He replied: “The financial capacity of municipalities is hindered both by the lack of adequate funds and financial management skills.

“But there is also a more fundamental issue: we opted for a local government model in which essentially all municipalities exercise the same powers and functions, irrespective of their capacity. There has to be a better correlation between a specific municipality’s capacity and the powers and functions it exercises.”

Carrim also took aim at provincial and national government for not monitoring and supporting local government as required in the constitution.

He said this failure had further impaired the capacity of municipalities to deliver.

Legislation was being prepared — the Monitoring, Support and Intervention Bill — that would stress the crucial role of provincial and national government in assisting municipalities to be more effective, without eroding their powers, he said.

In response to a question about funding issues for local government, he said: “The very premise of the current financial model is wrong. It’s based on the presumption that municipalities can raise 95% of their own revenue.

“But this was the case before 1994, when municipalities had much smaller boundaries, mostly excluded the African majority, and had a limited service delivery role,” Carrim said.

“It cannot apply to the new municipalities, with their larger boundaries, significantly bigger numbers of residents and expanded developmental role.”

Carrim said despite its huge responsibilities, local government was currently allocated only 8,7% of the national revenue.

“There needs to be an expeditious and significant overhaul of the current intergovernmental fiscal system, including the formula for the ‘equitable share’ — the allocation of money from the national budget to each sphere of government,” he said.

He acknowledged that many municipalities were unable to spend the money they had — “the answer is not to constrict national allocations to local government, but to allocate adequate funding and assist with capacity-building so that the funds can be effectively and productively spent”.

Democratic Alliance local government spokesman James Lorimer said on the face of it, a differentiated model raised the question of who would decide where and when a municipality had the capacity for more powers. “Would it be central government that decides? If it is, then this further erodes the powers and functions of local government and would probably need a constitutional amendment.”

Lorimer said the envisaged changes should be published for comment so that debate on the issue could begin.

The constitution should not be changed because political parties were failing to run their councils properly, he warned.

Credit to: Business Day

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ANC embarrased about Free State open toilets

The African National Congress (ANC) plans to crack the whip on its Free State leaders who did not inform the party that the Moqhaka municipality — which includes Kroonstad — had built open toilets, secretary-general Gwede Mantashe said on Friday.

Mantashe said the local government elections had served to remind the party of the need to resuscitate the debate on whether all the three spheres of government should be retained as they are. Many smaller municipalities were burdened with a broad range of duties but were unable to raise revenue, he said.

Last week, the ANC was embarrassed by news of unenclosed toilets built by a municipality it controls. The revelations emerged at a time when the party was taking the Democratic Alliance to task for its open toilets in Cape Town.

Mantashe said the ANC was let down by those running the party in the Fezile Dabi region.

A disciplinary inquiry would be held, he said. Blaming Free State local government MEC Mamiki Qabathe for the toilet saga, he said she should have known about the toilets.

Amid further revelations that a company owned by Moqhaka mayor Mantebu Mokgosi was involved in the erection of the toilets, Mantashe said: “That is even worse. That is scandalous…. If you ask me, you should never do business with the company you are in.”

Officials and politicians had to be banned from doing business with the bodies they were part of. But he did not think a law was necessary to enforce this.

“Political ethics cannot be legislated. It is a function of consciousness. If you loot, there is something wrong with your consciousness … something is rotten with your consciousness,” he said.

Mantashe echoed Congress of South African Trade Unions general secretary Zwelinzima Vavi’s call last week for the debate on the levels of government to be reopened. Vavi said provincial governments were blocking the fast delivery of services, and should be done away with in order to embolden municipalities.

The ANC has been re-evaluating the three tiers of government. A conference in December recommended that a presidential review investigate ways of structuring the administration. Possible options included abolishing or reducing the number of provinces to allow for the strengthening of municipalities. But abolishing provincial government was not popular with the ANC’s rank and file as provincial governments and legislatures provided jobs, and were used by regional power brokers to dole out patronage.

Another option is the abolition of district municipalities. The duties of smaller municipalities should be reduced, leaving district municipalities to fulfil the rest of the mandate, said Mantashe. However, he said the state of municipalities was not all gloomy, as many were doing sterling work. “We are underselling what we have done in the last 17 years.”

The debate on the structure of government should be raised during the party’s policy conference, to be held in June next year, he said.

Credit to: The Business Day

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Zuma and Zille battle it out on Twitter

On Monday DA leader Helen Zille boasted about the advantage she has over ANC president Jacob Zuma when it comes to their Twitter followers.

President Jacob Zuma has joined the world of social media and already has thousands of followers on his Twitter account, @SAPresident, but supporters are allegedly unhappy because Zuma does not respond to the tweets from his followers.

Zuma currently has 16329 followers on Twitter.

In a tweet on Sunday, Zuma called on all his followers to join him at the FNB stadium for the final ANC election rally. Almost 100 000 people attended the rally.

DA leader Helen Zille, @helenzille, who has been tweeting regularly since February 10 last year, has 32661 followers on Twitter and claims that she personally responds to tweets.

Social media such as Twitter and Facebook have played key political roles in other countries, especially the US. President Barak Obama used Facebook to win his presidency.

ANC spokesman Jackson Mthembu said the use of social media formed part of the ANC’s election strategy.

Credit to: Times Live

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