Business Report''s story on S. Africa''s exclusion of Durban CEO

Section:

8:26p ET Sunday, March 3, 2002

Dear Friend of GATA and Gold:

Here's another report about South Africa's
expulsion of Durban Roodeport Deep CEO
Mark Wellesley-Wood, from www.News24.com.
With all the political polemicism here, I
suppose that one has to read between the
lines, but in any case this seems likely
to discourage foreign investment in South
Africa and to make things harder for that
country's friends around the world. Let's
hope that the problem can be resolved
soon.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

Mining Boss Deported

By Jimmy Seepe
www.news24.com
March 3, 2002

http://www.news24.com/News24/South_Africa/Gauteng/0,1113,2-7-
829_1152105,00.html

Johannesburg -- The CEO and chairperson of
the gold mining conglomerate, Durban
Roodepoort Deep, was served with deportation
orders and ordered out of the country by the
department of home affairs last week.

The deportation of the CEO comes as the
department of home affairs flexed its muscles
against senior executives who are suspected
of being in possession of irregular work
permits and visas or fraudulent identity
documents.

The Durban Roodepoort Deep CEO Mark
Wellesley-Wood, a British national, has
served in the mining company for the past two
years. The department accused him of
disrespect for the country's laws by not
applying for a valid work permit and wanting
preferential treatment and exemption.

His deportation by the department has been
described as a clear message to company
executives, especially those from Europe,
that they would not be treated any
differently from African immigrants who come
into South Africa.

Leaked confidential information which has
come into the possession of City Press shows
that Wellesley-Wood stood to earn about R22
million a year in salary and other benefits.
This salary package is a far cry from what
mineworkers would normally earn.

A union spokesperson, who had not been privy
to the information, said it was in the nature
of capitalists to try to maximise their
profits and earnings. "Employers are the same
everywhere. Their aim is to live on the sweat
of workers and they have only one brief -- to
maximise profits and earnings."

A fuming home affairs director-general, Billy
Masetlha, told City Press he had ordered
Wellesley-Wood out of the country for showing
disrespect for the rules and procedures of
immigration laws. "I am not going to allow
that.... He has abused his authority and
tried to work in this country without proper
authorisation. I am not going to allow that
and I will not apply different rules and
regulations for certain individuals.

"He has lied to us on two occasions and left
the country a couple of times and returned
back on a visitor's visa.

"This is the type of business executive that
(certain sections of) South Africa loves.
This is an executive who expects to be
treated with kid gloves," said a livid
Masetlha.

Masetlha said some of these individuals try
to use their political connections in an
effort to stay in the country, hoping
pressure will be exerted on the department of
home affairs to stop its campaign.

Wellesley-Wood left South Africa on Thursday
evening. He told City Press upon his arrival
in London he felt there was an orchestrated
campaign against him. "My (immigration)
papers are in order. There is nothing I have
done that is improper and warrants this.
There is a political campaign by someone to
try to prevent me from doing work in South
Africa," claimed Wellesley-Wood.

He said he had turned the Durban Roodepoort
Deep mine around when it was on the brink of
collapse. "There are certain issues which are
due to come out in court and are likely to
embarrass certain people," he said.

Wellesley-Wood's colleagues tried
unsuccessfully to intervene on his behalf.
Documents in City Press possession confirm
people within the company had tried to ensure
that Wellesley-Wood bypasses regulations
requiring any immigrant to fulfil certain
requirements.

Durban Roodepoort Deep officials had
allegedly suggested that Wellesley-Wood
should be provided a temporary work permit
and residence permit to ensure his continued
stay and employment. They argued he was not
fully employed but was acting as an adviser.
A letter written by Vic Hoops (a company
executive) to Wellesley-Wood said: "With
reference to the enclosed letter which
confirms that you do not need a work permit,
I have clarified the reference to the
temporary residence permit. ... You will need
to indicate to the immigration officials on
your next arrival from the United Kingdom
that you will be visiting South Africa
regularly and that they should issue a 12-
month temporary residence permit, not the
normal three-month permit."

Another letter written last October to the
chief migration officer at the Johannesburg
International Airport said: "Wellesley-Wood
is holder of a passport of the United Kingdom
and is completely exempted from the
requirements of visas. He is therefore
entitled to obtain a business permit at any
South African port of entry. ... The purpose
of entry is to attend business meetings and
to hold business discussions."

But the department said these were not
ordinary visits as he was employed full-time
in the country.

National Union of Mineworkers executive
member Gwede Mantasha said the department was
correct in ordering Wellesley-Wood out of the
country, as he does not respect the country's
laws. "Any disregard of the country's laws by
anyone, including employers, is unacceptable.
The department of home affairs, as an
enforcement agency in the country, is correct
to take the steps it had launched to ensure
compliance. We will not mitigate (for an
exemption) on his behalf as we believe no one
is above the law."

Was Wellesley-Wood earning this much? A
breakdown of the CEO's alleged remuneration:

Salary: US$400,000 R4,560,000)

Offshore split -- 70% offshore and 30%
onshore

Signing fee -- $200,000 (R2,280,000)

Annual bonus excluding salary -- minimum
$250,000 (R2,850,000; maximum $500,000
(R5,700,000)

Housing -- $125,000 (R1,425,000)

Once-off relocation allowance -- $100 000

Share option package -- $1 million

Pension (lump-sum payment) -- $300,000
(R3,420,000)

Car allowance -- one executive car and a
private 4x4

Golden parachute cover -- three times value
of salary.