Rift over Mandela companies deepens

JOHANNESBURG (AP) — A granddaughter of Nelson Mandela has harshly criticized a longtime associate of the former president and anti-apartheid leader, in an escalation of a dispute over funds linked to one of the world's most revered figures.

Tukwini Mandela accused lawyer George Bizos of insulting her mother, slandering the Mandela family name and spreading "blatant lies and innuendo" in a bitter rift over control of two companies linked to 94-year-old Mandela. The main purpose of the companies is to channel funds from the sale of handprint artwork by Mandela for the benefit of his family.

"Please have the decency to behave as an elder if you care for my grandfather and his name, which catapulted you into undeserved stardom," Tukwini Mandela wrote in an open letter that was emailed to The Associated Press on Tuesday. She urged Bizos, a stalwart of the struggle for equal rights in South Africa, to act in a manner "befitting of your status" in society.

The disagreement comes as Nelson Mandela, who last appeared in public in 2010, receives medical care at his Johannesburg home after several hospital visits in recent months. He is seen globally as a symbol of reconciliation and sacrifice after spending 27 years in prison during racist white rule and then leading South Africa's transition to democratic, all-race elections in 1994.

The dispute over the funds troubles many South Africans for whom corruption, high crime rates and economic inequality have tainted the new South Africa. Mandela was South Africa's first black president and was awarded the Nobel Peace Prize.

Makaziwe Mandela, Tukwini's mother, and Makaziwe's sister Zenani have launched a court case against Bizos and two other associates of Nelson Mandela, alleging they should not remain directors of Harmonieux Investment Holdings and Magnifique Investment Holdings because they were not properly appointed. The case also alleges that the trio has neglected its duties at the helm of the companies.

Earlier this week, The Star newspaper quoted 84-year-old Bizos, who defended Mandela during the apartheid years, as saying Makaziwe Mandela's goal was to take some company money, estimated to be $1.3 million, without providing details of how it would be used.

"This woman wanted to take over the money, not for any specific purpose, and distribute it to members of the family," he said. "That is contrary to the provisions of the trust. Therefore we refused to give her the money."

The AP telephoned Bizos' office and home to seek a response to Tukwini Mandela's letter, but was told that he was away on legal work. Bizos does not carry a cellular telephone. Norton Rose, a Johannesburg law firm representing Bizos in the dispute with Mandela's daughters, declined to comment on the letter, saying in a statement that Bizos' position will be outlined in papers likely to be filed in court in mid-May.

In an interview last week with South Africa's Talk Radio 702, Norton Rose director Michael Hart said Nelson Mandela gave "explicit instructions" for Bizos and two associates, lawyer Bally Chuene and Tokyo Sexwale, a businessman and politician, to oversee the disputed companies. They have done so "without any charge or remuneration," he said.

In the letter, Tukwini Mandela said her mother is a "highly educated and accomplished businesswoman in her own right," and that Bizos' reported comments showed a lack of respect for Nelson Mandela and his advocacy on behalf of women.

"I doubt you would ever refer to the women in your life as 'this woman,'" Tukwini Mandela wrote.

"You and your peddlers of falsehood have spent the whole of last week casting aspersions on my family, spreading blatant lies and innuendo, hoping that a trial through the media will deter us from defending our name and legacy," she wrote.

Tukwini Mandela is the marketing director of House of Mandela, a winemaking company. Two other granddaughters of Mandela are starring in a U.S. television reality show titled "Being Mandela."

Bizos, who was born in Greece, defended Mandela during the Rivonia trial in 1960s that led to the African National Congress leader's conviction on sabotage charges and a sentence of life imprisonment.

Bizos works at the Legal Resources Center, a human rights group in South Africa. He has recently cross-examined the national police commissioner and other witnesses before a panel investigating the shooting deaths of 34 striking miners by police last year.

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Cloudy outlook makes Canadian companies shy of investment

By Louise Egan

OTTAWA (Reuters) - Canadian businesses see a challenging year ahead after surviving the weakest two quarters of growth since the 2008-09 recession, and they expect only modest sales growth, cautious investment, and tame inflation, a Bank of Canada poll showed on Monday.

The results of the survey of senior managers, taken from mid-February to mid-March, support market expectations that the central bank is under no pressure to raise interest rates.

Business investment intentions, which the Bank of Canada says are key to economic expansion, weakened at the start of this year. Companies still plan to increase investments, but economic uncertainty is making those plans less ambitious.

The balance of opinion on investment - the difference between the percentage expecting higher investment and the percentage expecting lower investment - remained positive at 12, but it was down from 20 in the fourth quarter and lower than in most other quarters since the recession ended.

"Many firms indicated that uncertainty is having some influence on their investment plans, leading them to postpone some projects; favor investment with a shorter payoff period, smaller capital outlays or less risk; or shift their investment spending toward new or different segments of demand," the bank said in a release.

A Statistics Canada survey earlier this year showed Canadian businesses hardly expect to boost their capital spending at all this year, anticipating investment in construction and machinery and equipment would rise 0.8 percent, the lowest rate since 2009.

Companies said their sales performance over the past year was the worst in three years. But the outlook for sales growth was brighter than in the fourth quarter of 2012, mainly due to new strategies to boost sales. The balance of opinion on future sales rose to 24 from 16.

Businesses almost unanimously saw inflation remaining within the central bank's target range of 1-3 percent over the next two years. But only a third saw the rate rising to the upper end of the range of 2 to 3 percent, down from 42 percent who forecast that level in the fourth quarter. Sixty-one percent expected inflation of 1 to 2 percent versus 54 percent previously.

The percentage of companies reporting labor shortages declined for the second survey in a row, although there was no change in the overall perception of pressures on production capacity or in hiring intentions.

The survey portrays an economy that is slogging along but not really gaining traction.

"Overall, not a dire result, but not particularly robust, given that in the sales question, we are comparing future growth to a tepid prior 12-month pace," said Avery Shenfeld, chief economist at CIBC World Markets.

The results change little for the Bank of Canada, which has kept its benchmark lending rate at an ultra-low 1.0 percent since September 2010.

Central bank chief Mark Carney has been signaling for the past year that he intends to hike rates.

But the weakening economy has forced him to gradually soften his hawkish tone and in March the bank said rates would stay on hold for "a period of time" before any tightening. There is no expectation of a move at the bank's next announcement date, April 17.

Forecasters in a Reuters poll predicted a rate increase in the first quarter of 2014, although traders are still pricing in a slight chance of a cut later this year, according to yields on overnight index swaps.

(Editing by Peter Galloway)

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