Mulder and the mental hospitals
Richard West
The ex-South African cabinet minister Connie Mulder was mixed up in another scandal besides the Information Department's misuse of public funds—the so-called Nuldergate' affair which this week led to the resignation of President Vorster. From documents that have reached the Spectator It now seems clear that Mr Mulder had an Important financial interest in certain South African companies which run a notorious group of private enterprise mental homes for the blacks.
It is four years now since the Johannesburg Sunday Times and the London Observer alleged that thousands of mentally-handicapped Africans were living In sub-standard conditions, without medical supervision, in institutions run for profit by Smith Mitchell and Co, a Johannesburg firm of chartered accountants. The headline O n Fleur de Villiers's article in the Sunday Tunes read 'Millions out of Madness'. A retired Commissioner for Mental Health described the homes as 'human warehouses, rendering only custodial care.' Because the laws did not allow the provision of mental homes for blacks in areas designated for whites, Smith Mitchell hired derelict buildings, like mining out-houses, and g.ot the patients themselves to do renovations. At the time Professor Robbertze, head of Clinical Psychology at the University of Pretoria, spoke of the system's inherent dangers: too many patients in too.little Space with only a minimum of psychiatric skill. The government paid Smith Mitchell money towards their thirteen hospitals (nine of them for non-whites) at an annual rate per patient of £35.50 for whites, £18 for Coloureds and £7.50 for Africans. Since this was clearly inadequate to support life, let alone medical care, the patients were put to. work on contract to companies making wire coat-hangers, carrier bags and miners' leg guards.
As a result of outside criticism, the South African government invited a team of inspectors from the American Psychiatric Association, whose report, published last week, was far from vindicating the Smith Mitchell mental homes. The four investigators, led by a negro Alan Stone, said that large numbers of mentally ill black Africans were 'dying needlessly': that medical and Psychiatric care for the Africans was grossly inferior' to that given to whites, and ,that the numbers of professional staff were totally inadequate'. The investigators also found that 'apartheid has a destructive impact on blacks, their families, their social institutions and their mental health.' The South African government promptly described the report as biased and stressing only the negative aspects of South African mental homes. However, the outside press gave publicity to the report and emphasised the commercial aspect of Smith Mitchell institutions. 'Scandal of the money-making mental homes' was the headline in last week's Observer.
The scandal is likely to magnify when it is known that among those making money from Mitchell mental homes is none other than Connie Mulder, through his connection with David Tabatznik, Smith Mitchell's present chairman. On 9 March 1963, Mulder became, with Tabatznik, one of the five directors of Randfontein Non-White Sanatorium (PTY) in the Transvaal mining town which was Mulder's home and until recently his constituency. (His resignation over the information scandal caused a byelection this week, the result of which will be known after this article appears in print.) The following year Mulder also became one of the three directors (with Tabatznik) of Randwest Sanatorium (PTY). On becoming a cabinet minister in 1968, Connie Mulder resigned these directorships but retained shares in other Smith Mitchell companies, notably: Kroy Holdings — 1,200 shares since 29 November 1968 Interim Investments — 15 shares since 19 February 1969. (The other shareholders are Tabatznik and Thomas Smith, his former fellow directors on Randwest Sanatorium (PTY) and Randfontein Non-White Sanatorium (PTY) Sansaf — 700 shares and the major shareholder. Tabatznik and Smith are the directors.
Nomad Investments — 2000-shares and the major shareholder with J. H. Pretorius. Shares allotted on 29 November 1971. Beddax Investments. He was given the largest shareholding in 1972. Distant Holdings. Largest shareholding. As in Beddax the two directors are Tabatznik and Smith.
Conquad Holdings. Mulder's children have all the shares in this company, also directed by Smith and Tabatznik.
During his ten years as Minister of Information — and as Minister of the Interior from 1972— Mr Mulder on many occasions took action to guard the Smith Mitchell mental homes from their various critics, of whom the most persistent have been the Church of Scientology. This Church, which takes a particular interest in reforming mental health treatment, provided the information on which the Johannesburg Sunday Times based its article 'Millions out of Madness'. Ten days later, vice squad detectives raided the Church of Scientology's Johannesburg offices on a warrant signed by Mulder. The detectives seized the Church's magazine Freedom which also carried an exposé of Smith Mitchell.
Again in 1975, Smith Mitchell and Mulder put pressure on the Observer (through the South African embassy) to drop a second article on the mental homes under threat of libel. This incident may also explain why Mulder imposed a ban on the issue of entry permits for all Observer journalists. Later that year the South African Publication Control Board of Censors (run by Mulder), banned Freedom. A Bill was passed through Parliament stopping all stories and photos on mental institutions. In 1976, when liberal newspapers in the United States were carrying exposé stories about the Smith Mitchell mental homes, Mulder's appointee as press attaché in Washington personally tried to refute these stories. In April that year the Transvaaler carried an editorial defending Smith Mitchell and attacking the Church of Scientology. The Transvaaler is owned by Perscor of which Mulder was a director. At the same time the Information Department sent out information packs defending Smith Mitchell to all South African information offices overseas. In 1977 the Director of Information in London wrote to the Guardian denying their story '8,000 held in S.A. Hospitals' and claiming that allegations made by the Scientologists were 'groundless and damaging'. In South Africa the Citizen newspaper which, as is now known, was paid for by the Department of Information, wrongly alleged that the International Red Cross had vindicated South African mental homes.
The news of Mulder's involvement in yet another South African scapdal is not likely to cause much joy within the ranks of the National Party. However, it should strengthen the cause of the Prime Minister P. W.
Botha, by indicating that Mulder had used his post as Minister of Information to look after the interests of his business associates.
It is ironic that South Africa's boasted public relations man has once again brought dishonour to his country.
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