Royal Bafokeng, the rich tribe of paupers

They may be perceived as Africa’s richest tribe, but poverty-stricken members of the royal Bafokeng nation, find it hard to see the wealth from their platinum-loaded land, trickling down to the masses – claiming to be side-lined by their king and those close to him in key decision-making.

With a net asset value of about R39 billion, gained from royalties paid by several mining companies operating in their land and from mining joint ventures with global platinum giants, most members of the Bafokeng nation have remained destitute.

This, despite the Royal Bafokeng Holdings (RBH) owning companies, which include the Royal Bafokeng Resources Proprietary Limited (RBR), Royal Bafokeng Platinum Management Services Proprietary Limited (RBPMS), Bafokeng Rasimone Management Services Proprietary Limited (BRMS), Royal Bafokeng Resources Properties (RBRP) and the Maseve Investments 11 Proprietary Limited (MI).

According to North A Economic Forum (Banaef) president Rony Mekgwe, so poor are the relations between the king – Kgosi Leruo Molotlegi and his subjects – that the traditional protocol of consulting the community on key business and development-related issues, has taken a back seat.

For Mekgwe, the last straw was when RBH CEO Albertinah Kekana took a decision five years ago to reduce the Bafokeng community shareholding in Impala Platinum Holdings Limited (Implats) through the sale of 5% shares to the Public Investment Corporation (PIC) – leaving the Bafokeng with only 6.3%.

Earlier, RBH sold its entire 28.68% interest in the JSE-listed Merafe ferrochrome company.

The sale of Bafokeng community shares in Implats, has boosted the fortunes of the PIC – making it a major shareholder in the global platinum company, said to be enjoying closer relations with Molotlegi.

While Kekana described the move as “a prudent approach” to portfolio management and in line with its ongoing diversification strategy, Mekgwe said he was still reeling from “the shock and pain” of what he described as “a breach of traditional protocol”.

Explained Lesego Lebuso, group manager for stakeholder relations at RBH: “In line with the mandate that we have been entrusted with together with our sole shareholder, the Royal Bafokeng Nation Development Trust, we are firmly focused on optimising and protecting the Royal Bafokeng Nation’s financial capital to grow the investment portfolio in real terms, provide a sustainable dividend yield and manage portfolio risks against permanent loss of capital.

“The disposal of our stake in Implats followed due process in line with governance protocols that are in place. The shares were sold in the market as part of the rebalancing of our portfolio.”

Without elaborating, she denied claims that the shares were sold to the PIC.

“We remain an investor in platinum through our shareholding in Royal Bafokeng Platinum,” added Lebuso.

Some have found it ironic that Kekana – a former chief operating officer with the PIC during the reign of Brian Molefe – has been behind the sale of the Bafokeng community shares to the state-owned corporation, in her new role as RBH CEO. 

She could not respond to charges by Mekgwe on non-consultation with members of the Bafokeng community, before the shares were sold.

Said Mekgwe: “We were not consulted when the shares were sold to the PIC.

“When we transferred the royalties to shares, we were hoping that our local businesses would be empowered. We were hoping that something positive was going to happen to us, as the royal Bafokeng nation.

“But we were shocked to learn that those shares were sold without us being consulted.

“In terms of the royal protocol, what would normally happen if such a decision is to be taken, we would first discuss it as makgotla (a gathering of clans of a village or area to discuss important issues).

“We would then go to the general meeting – representing all the 72 makgotla in Phokeng.

“This matter was also never discussed at the general meeting, where key decisions are normally being taken.”

Mekgwe said the drastic change in protocol has rendered the royal Bafokeng nation “hopeless”, with “top-down decisions” being unilaterally taken.

“We are under a control of a few individuals at Phokeng, without us having a say.

“Even if we tried to reason with them on the issue as big as a sale of our shares, nobody would bother to hear us,” said Mekgwe.

Asked about the nation’s remaining shares at Implats, Mekgwe said: “I am now not even sure whether we are still shareholders at Impala, because decisions are being made without us.

“If we own shares at Impala, that should show that the royal Bafokeng nation is a shareholder in the company – not showing on a few individuals, but on most people residing in our platinum-rich villages.

“There is no change at all. Remember, if you are a shareholder, you have a say in that entity.

“But, as the royal Bafokeng community, we currently have no say at Impala and we had no say in the past. 

“If we had a say in that entity, our people should not be suffering in the manner they are struggling to make ends meet.

“Where have you seen shareholders being treated like this?”

He said Implats management “has been arrogant to us because they are enjoying full protection from royalty – from the king himself who is protecting them”.

“There is no way that they cannot be arrogant in the light of enjoying all the protection they need.

“Impala and the royal Bafokeng nation had a lease agreement, which expired in 2019.

“We were supposed to have been consulted in a general meeting before it was renewed.

“Again, the lease renewal was done without us.

“As usual, it was some few people making decisions,” said Mekgwe.

Undeterred about being undermined, Mekgwe said the nation would not throw in the towel in its resolve to change the status quo.

He said: “We have been engaging Impala’s top management on where the company is failing in adhering to the principles of the Mining Charter and we have also tried to meet our king, who has not bothered to hear our side of the story.

“We will continue to raise pertinent issues. We have already approached Impala shareholders like the PIC.

“We are also conscientising the community about their rights as shareholders and what is due to them.

“According to Impala, the company spent R1.4 billion in procuring services of the local SMME (small micro and medium enterprises) sector during 2020 and 202,1 because it just does not show.

“In awarding contracts, their manner of operating has been that of ensuring that there is a white component owning 70% of the contract – leaving local black-owned companies with a tiny shareholding in a joint venture. 

“We are being reduced to nothing in what should be a land and shares that we should be truly owning.”

– brians@citizen.co.za