Word: slushing
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Never before had a Cabinet officer from South Africa's ruling National Party been forced to resign in disgrace. Last week the spreading scandal over misuse of a secret multimillion-dollar slush fund within the now disbanded Department of Information claimed its first major victim: Cornelius P. ("Connie") Mulder, 53, powerful Minister of Plural Relations and Nationalist boss of South Africa's huge Transvaal province. Bowing to pressure from his party colleagues, Mulder reluctantly resigned from his euphemistically named Cabinet post, where he administered the apartheid laws that govern the lives of South Africa's 18.5 million blacks. Said Mulder...
While Afrikaners adjusted to the shock of Mulder's resignation, Prime Minister P.W. Botha struggled desperately to prevent the scandal from spreading. Botha publicly dismissed Supreme Court Justice Anton Mostert. The jurist had conducted a one-man probe of the operation of the slush fund during the time that Mulder served as Minister of the Interior and Information under former Prime Minister John Vorster. Mostert's report produced testimony from witnesses that the Information Department had illegally financed the start of a pro-government Johannesburg daily, the Citizen, and allegations of personal abuse of the fund amounting to millions...
...alleged misdeeds center on a secret multimillion-dollar slush fund operated by the Department of Information when Mulder was Minister of the Interior and Information under former Prime Minister John Vorster. According to Mostert's report, some of the funds, intended for a covert campaign to secure favorable coverage for South African policies in the foreign and domestic press, were diverted to dubious business ventures and the personal pleasures of departmental officials. The main schemers were identified as the brothers Eschel and Deneys Rhoodie, who until a few months ago served as Secretary and Deputy Secretary, respectively...
...Mostert's report does not touch on the alleged attempt to purchase the Washington Star. As described by the Daily Mail, the department in 1976 "loaned" $11.5 million from the slush fund to Michigan Publisher John P. McGoff, who is co-owner with Eschel Rhoodie and Mulder of a large farm in the Transvaal, to finance a $26.3 million offer for the paper. Joe Allbritton, the Texan who owned the newspaper from 1974 until he sold it to Time Inc. this year, denies that McGoff ever approached him. McGoff, whose Panax Corp. publishing company acknowledges bidding for the Star...
...credit rating, will vote on whether to require the legislature to set aside 5% of each year's tax revenues for a reserve against debt. Proponents call the reserve, which would amount to about $63 million this year, a rainy-day fund, while opponents regard it as a slush fund that could be used by spendthrift legislators to underwrite pork-barrel public works projects. The proposition's chances are rated as a tossup...