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"contents": "<span style=\"font-weight: 400;\">Finance Minister Enoch Godongwana made it clear that the government had been informed by US Treasury Secretary Janet Yellen in February already that Washington suspected that South Africa had loaded weapons and ammunition on to the Russian cargo ship Lady R in December last year.</span>\r\n\r\n<b>Read more in Daily Maverick:</b> <a href=\"https://www.dailymaverick.co.za/lady-r/\"><span style=\"font-weight: 400;\">Lady R in South Africa</span></a>\r\n\r\n<span style=\"font-weight: 400;\">Godongwana said the government had begun to respond to the allegations at that time and had decided to appoint a retired judge to investigate the US allegations about the Lady R, at the same time as it decided to send </span><a href=\"https://www.dailymaverick.co.za/article/2023-04-27-ramaphosa-delegation-in-the-us-to-persuade-washington-not-to-drop-sas-trade-benefits/\"><span style=\"font-weight: 400;\">national security adviser Sydney Mufamadi to the US to defuse the rising tensions</span></a><span style=\"font-weight: 400;\"> between the two countries. </span>\r\n\r\n<span style=\"font-weight: 400;\">The Finance Minister was speaking during a briefing given by Mufamadi to describe his mission, which he said had accomplished its task of reaching an understanding with the US about SA’s position on the Russia-Ukraine conflict and other issues, in a series of meetings between senior Biden administration officials, members of Congress and other stakeholders in the relationship between the two countries. </span>\r\n\r\n<b>Read more in Daily Maverick:</b> <a href=\"https://www.dailymaverick.co.za/article/2023-05-09-what-was-sydney-mufamadis-us-mission-minister-pandor-provides-the-answers/\"><span style=\"font-weight: 400;\">What was Sydney Mufamadi’s US mission? Minister Pandor provides the answers</span></a>\r\n\r\n<span style=\"font-weight: 400;\">The tension exploded this week when US ambassador to South Africa Reuben Brigety went public for the first time with the US allegations that South Africa had loaded weapons and ammunition on the Lady R in a </span><a href=\"https://www.dailymaverick.co.za/article/2022-12-08-sanctioned-russian-ship-uploaded-mystery-cargo-in-simons-town/\"><span style=\"font-weight: 400;\">clandestine operation</span></a><span style=\"font-weight: 400;\"> at Simon’s Town last December. </span>\r\n\r\n<span style=\"font-weight: 400;\">He said that this, and other incidents such as South Africa’s participation in a </span><a href=\"https://www.dailymaverick.co.za/article/2023-02-24-us-congress-mulls-resolution-to-oppose-sas-naval-exercise-with-russia-and-china/\"><span style=\"font-weight: 400;\">joint naval exercise with Russian and China</span></a><span style=\"font-weight: 400;\"> off the KwaZulu-Natal coast in February, had contradicted Pretoria’s professed non-aligned stance on the Russia-Ukraine war. </span>\r\n\r\n<b>Read more in Daily Maverick:</b> <a href=\"https://www.dailymaverick.co.za/article/2023-02-24-still-on-the-fence-sa-abstains-from-un-resolution-condemning-russian-aggression-against-ukraine/\"><span style=\"font-weight: 400;\">Still on the fence — SA abstains from UN resolution condemning Russian aggression against Ukraine</span></a>\r\n\r\n<span style=\"font-weight: 400;\">“We are confident that weapons were loaded on to that vessel and I would bet my life on the accuracy of that assertion,” Brigety told journalists in Pretoria on Thursday.</span>\r\n\r\n<span style=\"font-weight: 400;\">In a </span><a href=\"https://www.thepresidency.gov.za/press-statements/presidency-responds-claims-weapons-supply-russia-made-us-ambassador\"><span style=\"font-weight: 400;\">statement</span></a><span style=\"font-weight: 400;\"> on Thursday evening, the Presidency noted “with concern” Brigety’s claims that South Africa supplied weapons to Russia last December. The Presidency said that while no evidence has been provided to support Brigety’s claims, the government has undertaken to set up an independent inquiry, to be led by a retired judge, to investigate the scandal. </span>\r\n\r\n<span style=\"font-weight: 400;\">The Department of International Relations and Cooperation (Dirco) on Friday </span><a href=\"https://www.dailymaverick.co.za/article/2023-05-12-sa-set-to-demarche-us-ambassador-on-bombshell-russian-ammunition-accusations/\"><span style=\"font-weight: 400;\">démarched Brigety</span></a><span style=\"font-weight: 400;\"> following his accusations. Dirco Minister Naledi Pandor summoned Brigety to be dressed down for his statements and, following the meeting, her spokesperson, </span><a href=\"https://www.dirco.gov.za/blog/2023/05/12/the-south-african-government-demarches-the-us-ambassador/\"><span style=\"font-weight: 400;\">Clayson Monyela, said Brigety</span></a><span style=\"font-weight: 400;\"> had “admitted that he crossed the line and apologised unreservedly” for his remarks. </span>\r\n<blockquote class=\"twitter-tweet\">\r\n<p dir=\"ltr\" lang=\"en\">The meeting between USA Ambassador to South Africa <a href=\"https://twitter.com/ReubenBrigety?ref_src=twsrc%5Etfw\">@ReubenBrigety</a> and <a href=\"https://twitter.com/DIRCO_ZA?ref_src=twsrc%5Etfw\">@DIRCO_ZA</a>\r\ntook place this afternoon. We conveyed our displeasure with his conduct and he admitted that he crossed the line and apologised unreservedly. The relations between the USA & South Africa are cordial,… <a href=\"https://t.co/5pBxTgyI82\">pic.twitter.com/5pBxTgyI82</a></p>\r\n— Clayson Monyela (@ClaysonMonyela) <a href=\"https://twitter.com/ClaysonMonyela/status/1657097215150546952?ref_src=twsrc%5Etfw\">May 12, 2023</a></blockquote>\r\n<script async src=\"https://platform.twitter.com/widgets.js\" charset=\"utf-8\"></script>\r\n\r\n<span style=\"font-weight: 400;\">Monyela added that the National Conventional Arms Control Committee had issued no approvals for the sale of arms to Russia related to the period and incident in question. </span>\r\n\r\n<span style=\"font-weight: 400;\">In his own tweet about the meeting, Brigety did not apologise, merely saying that in his meeting with Pandor, he had been able to “correct any misimpressions left by [his] public remarks”. Brigety did not retract his allegations. But both Mufamadi and Monyela had insisted that Brigety had not only apologised for being undiplomatic but also for his allegations.</span>\r\n<blockquote class=\"twitter-tweet\">\r\n<p dir=\"ltr\" lang=\"en\">I was grateful for the opportunity to speak with Foreign Minister Pandor this evening and correct any misimpressions left by my public remarks. In our conversation, I re-affirmed the strong partnership between our two countries & the important agenda our Presidents have given us.</p>\r\n— Ambassador Reuben Brigety (@USAmbRSA) <a href=\"https://twitter.com/USAmbRSA/status/1657128120640520193?ref_src=twsrc%5Etfw\">May 12, 2023</a></blockquote>\r\n<script async src=\"https://platform.twitter.com/widgets.js\" charset=\"utf-8\"></script>\r\n\r\n<span style=\"font-weight: 400;\">However, it was clear from Mufamadi’s briefing on Saturday that although he said he had been able to put relations between the US and SA on a better footing, the Lady R episode remains a threat to relations. </span>\r\n\r\n<span style=\"font-weight: 400;\">Dirco director-general Zane Dangor, who was part of Mufamadi’s delegation to the US, said the delegations had heard from US officials the same allegations that Brigety had made: that ammunition had been loaded or unloaded to or from the Lady R.</span>\r\n\r\n<span style=\"font-weight: 400;\">“But there was no concrete evidence presented to us from any of the people that we met. The intelligence services said they may be able to share this with us once the inquiry gets going,” he said. </span>\r\n\r\n<span style=\"font-weight: 400;\">Dangor denied a New York Times report which he said had quoted a US Senator as saying Mufamadi’s delegation had, in fact, been presented with concrete evidence of arms being loaded on to the ship. </span>\r\n\r\n<span style=\"font-weight: 400;\">Some members of the US Congress are dismayed that the US State Department did not back up Brigety’s allegations. Pandor and Secretary of State Antony Blinken spoke on the phone on Friday, following which Blinken’s office issued a bland statement that they had underscored the importance of the strategic US-SA partnership.</span>\r\n<blockquote class=\"twitter-tweet\">\r\n<p dir=\"ltr\" lang=\"en\">Spoke today with Minister Pandor about the vital U.S.-South Africa relationship. We discussed further strengthening our partnership to advance shared global priorities. <a href=\"https://t.co/qdby4xx2E9\">https://t.co/qdby4xx2E9</a></p>\r\n— Secretary Antony Blinken (@SecBlinken) <a href=\"https://twitter.com/SecBlinken/status/1657138063116574721?ref_src=twsrc%5Etfw\">May 12, 2023</a></blockquote>\r\n<script async src=\"https://platform.twitter.com/widgets.js\" charset=\"utf-8\"></script>\r\n\r\n<span style=\"font-weight: 400;\">During the briefing, Godongwana was asked what risk the tension between the US and South Africa posed to the South African economy. </span>\r\n\r\n<span style=\"font-weight: 400;\">“We have done a calculation of some of the risk … What would happen, assuming that there’s what is called secondary sanctions,” he replied. </span>\r\n\r\n<span style=\"font-weight: 400;\">“The risk in terms of quantum go beyond Agoa [African Growth and Opportunity Act]. There is a massive flow between ourselves and the USA … It would have a massive impact on our financial flows if that were to happen.”</span>\r\n\r\n<span style=\"font-weight: 400;\">Godongwana said Brigety’s remarks and the repercussions from them were unfortunate, because he had spoken as if the issue had just arisen and had not been dealt with. </span>\r\n\r\n<span style=\"font-weight: 400;\">“All of us heard about this in February when Secretary Yellen was here and gave me a detailed picture of the strong American views about this matter which was articulated by the ambassador.</span><span style=\"font-weight: 400;\"> </span>\r\n\r\n<span style=\"font-weight: 400;\">“Since then, we have taken a few steps, including the decision to appoint a judge which was taken at the same time as the decision to appoint an envoy. Which means action was taken a long time ago once this matter was brought to the attention of the South African officials. What happened last week was as if this thing was coming afresh,” said Godongwana. </span>\r\n\r\n<span style=\"font-weight: 400;\">“The markets reacted as if secondary sanctions [were] coming, in light of that announcement,” he said, referring to the </span><a href=\"https://www.dailymaverick.co.za/article/2023-05-11-south-africas-rand-weakens-past-19-per-dollar-for-first-time-since-covid-rout/\"><span style=\"font-weight: 400;\">rand plummeting to three-year lows against the US dollar</span></a><span style=\"font-weight: 400;\"> following Brigety’s accusations. </span>\r\n\r\n<b>Read more in Daily Maverick:</b> <a href=\"https://www.dailymaverick.co.za/article/2023-05-11-rand-on-ropes-as-power-crisis-us-rate-hikes-deliver-double-blows/\"><span style=\"font-weight: 400;\">Rand on the ropes as power crisis, US rate hikes deliver double blow</span></a>\r\n\r\n<span style=\"font-weight: 400;\">“We’ve done our calculations and the flows are massive. They go beyond Agoa – which is but one fraction of the total flows between us and the US. So, we take that issue seriously.”</span>\r\n\r\n<span style=\"font-weight: 400;\">On Saturday, Mufamadi presented the problems between the two countries as largely a matter of poor communication, and said that both sides had agreed that differences were bound to arise between them on bilateral and multilateral issues because of their different national interests. </span>\r\n\r\n<span style=\"font-weight: 400;\">He said they had agreed to handle such differences in the future in a way that ensured “the greater good was not sacrificed”.</span>\r\n\r\n<span style=\"font-weight: 400;\">Mufamadi noted, though, that the two governments were already working together on important issues relating to the war in Europe. For instance, he had frequent phone conversations with his counterpart, US national security adviser Jake Sullivan. He said one of their conversations had led to President Cyril Ramaphosa calling Russian President Vladimir Putin and setting in motion the agreement for Russia to lift its blockade of Ukrainian grain leaving the country’s Black Sea ports. </span>\r\n\r\n<span style=\"font-weight: 400;\">One of the most immediate purposes of Mufamadi’s mission was to try to prevent SA losing some or all of its benefits under Agoa, which gives duty-free access to the lucrative US market to eligible African countries without requiring them to reciprocate. </span>\r\n\r\n<b>Read more in Daily Maverick:</b><span style=\"font-weight: 400;\"> </span><a href=\"https://www.dailymaverick.co.za/article/2023-04-27-ramaphosa-delegation-in-the-us-to-persuade-washington-not-to-drop-sas-trade-benefits/\"><span style=\"font-weight: 400;\">Ramaphosa delegation in the US to persuade Washington not to drop SA’s trade benefits</span></a>\r\n\r\n<span style=\"font-weight: 400;\">Mufamadi suggested – without being too explicit – that SA and the US had reached an understanding that the relationship between the two countries - including Agoa - “is so important that we should not allow ourselves to walk away from it at the slightest provocation”. </span>\r\n\r\n<span style=\"font-weight: 400;\">They had also decided that the relationship could not depend “on where we put our cross” at the UN, he said, referring to US annoyance that </span><a href=\"https://www.dailymaverick.co.za/article/2023-02-24-still-on-the-fence-sa-abstains-from-un-resolution-condemning-russian-aggression-against-ukraine/\"><span style=\"font-weight: 400;\">SA had consistently abstained from all resolutions</span></a><span style=\"font-weight: 400;\"> in the UN General Assembly condemning Russia for its aggression against Ukraine.</span>\r\n\r\n<span style=\"font-weight: 400;\">Mufamadi said the delegation had persuaded an – unnamed – congressman in the House of Representatives to withdraw his resolution critical of South Africa’s behaviour on Russia. </span>\r\n<h4><b>Ramaphosa and Putin agree to strengthen ties</b></h4>\r\n<span style=\"font-weight: 400;\">Meanwhile, Brigety’s wrap on the knuckles came as President Ramaphosa and Russian President Vladimir Putin agreed to deepen “mutually beneficial ties”, the Kremlin said in a </span><a href=\"http://en.kremlin.ru/events/president/news/71120\"><span style=\"font-weight: 400;\">statement</span></a><span style=\"font-weight: 400;\"> on Friday, following a call between the two leaders. </span>\r\n\r\n<span style=\"font-weight: 400;\">The Kremlin said the phone call was at the “initiative” of South Africa. The two presidents underscored the importance of continuing “close bilateral coordination” between Russia and South Africa as they prepare for a series of events this year, </span><a href=\"https://www.dailymaverick.co.za/article/2023-03-30-putins-scheduled-visit-to-south-africa-could-herald-another-bashir-debacle/\"><span style=\"font-weight: 400;\">including the BRICS summit in August</span></a><span style=\"font-weight: 400;\">, read the statement. </span>\r\n\r\n<span style=\"font-weight: 400;\">On Saturday evening, Monyela said President Ramaphosa would also have a call with Ukrainian President Volodymyr Zelensky. </span><b>DM</b>",
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"summary": "The impact on the South African economy of any secondary sanctions which the US might impose on this country because of its stance on Russia’s war against Ukraine – including the alleged supply of arms to Russia – would be ‘massive’, says Finance Minister Enoch Godongwana.\r\n",
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