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Anger At The Corporate Slippery Slope




It was an eventful rainy Thursday afternoon. Workers left their desks to watch the action through their office windows. It was one of the many marches against state capture. On this day, civil society organizations were picketing outside the office of global consultancy McKinsey, right opposite the FORBES AFRICA headquarters in Sandton, South Africa.

McKinsey is one of the many companies, in the country, implicated in alleged corrupt dealings between state-owned power utility Eskom and consultancy firm Trillian. McKinsey and Trillian stood to earn more than $490 million from Eskom.

It has been a year of drama in corporate South Africa. As strange as it may sound, a lot of South Africa’s protests, like this, have one family as the common cause.

Weak-kneed politicians allegedly allowed members of the Indian-born Gupta family to wield undue influence. This influence has gone from meddling with the state’s top jobs to conniving with private and public companies to act in their favor.

Another company in hot water is Bell Pottinger, a British public-relations firm connected to the Guptas by a $130,000-a-month contract. It was stripped of its membership in the Public Relations and Communications Association (PRCA) in the UK, after it was found that the PR agency deliberately fanned racial tensions, with creations like ‘white monopoly capital’, in South Africa, in favor of Zuma, while it worked for the Gupta-owned Oakbay Capital.

“We took this decision because we were not satisfied by the explanations given. We have never passed down such a damning indictment,” says Nicholas Dunn-McAfee, Head of Public Affairs, Policy and Research at PRCA.

READ MORE: South African Billionaire’s Fortune Plunges More Than $2 Billion In A Day Amid Accounting Scandal

It gets worse.

For years KPMG South Africa has said it stands for integrity. Instead, the tax, advisory and auditing firm now stands alleged of giving advice so that money can be taken to Dubai to avoid tax payments. They also turned a blind eye to several conflicts of interest while auditing 36 Gupta-linked companies and compiled the so-called South African Revenue Services (SARS) rogue spy unit report which was used as part of the smear campaign against former Finance Minister, Pravin Gordhan.

There are consequences.

For KPMG, for example, pressure has been piling. The firm withdrew all its findings in the ‘rogue unit’ report; senior executives, including CEO Trevor Hoole, resigned; and it has been dumped by major clients, among them, Sasfin Bank, Sygnia Asset Management, the energy investment company Hulisani, and the University of the Witwatersrand.

Like the protesters in Sandton, Magda Wierzycka, Chief Executive Officer at Sygnia Group, an asset management company, says all involved should be held accountable, stripped of their licenses, fined and even jailed.

“There are no excuses. They did what they did for money. They were not ignorant of what they were doing,” she says.

Opposition political parties, rights groups and private citizens are playing their part to make sure unethical companies are punished. The problem is corporate misgovernance affects the whole country.

Alastair Macduff, the Chairman and Chief Executive Officer of the Turnaround Management Association Southern Africa. (Photo supplied)

South Africa was downgraded to junk status and went into a recession. At the time of writing this article, $1 was equivalent to R14.16 at its worst, it went to about R17 to the dollar. It means business confidence is at an all-time low.

“Businesses are feeling the impact of low investor confidence, weakening exchange rates and high fiscal uncertainty,” says Alastair Macduff, Chairman and Chief Executive Officer of the Turnaround Management Association Southern Africa.

“Restoring investor, business and consumer confidence will require a concerted effort to address these pressing issues – and address them in the best interests of the country as a whole,” he says.

Wierzycka agrees.

“In a funny way, what has happened to KPMG and McKinsey is actually very positive… Positive in terms of waking corporate South Africa to what is happening and to the fact that they can no longer sit on the fence and stay silent,” she says.

According to Wierzycka, South Africa’s corporate sector is suffering from a moral crisis.

“The dilemma is, do you change providers based on the fact of they are implicated in state capture even when it’s inconvenient to do so?”

People protests against corruption outside the McKinsey office in Sandton, Johannesburg. (Photo by Motlabana Monnakgotla)

Wierzycka has lived it. She offered Bianca Goodson, former Trillian CEO turned whistle-blower, a job. This after Goodson’s new employer, Sage, accepted her resignation after she told them she was blowing the whistle on her previous employer. Goodson provided documented evidence that the Gupta-linked firm swindled hundreds of millions from state-owned enterprises Transnet and Eskom. Wierzycka called Goodson, and all whistle-blowers, heroes.

“When I heard what Sage did, I was actually breathless. The true heroes of the story of South Africa are the belittled whistle-blowers… Bianca took tremendous risks in disclosing the information she disclosed on Trillian, McKinsey, Eskom and a number of others. It seemed a completely natural thing to reach out to her, if anything else, to reassure her that she is not alone in this fight. When I did, I met a lady who is incredibly competent. So let’s be clear, I gave her a job, not because she is a Trillian whistle-blower but because I encountered a woman of tremendous bravery with a strong moral compass and qualifications that are arms long,” says Wierzycka.

Magda Wierzycka, Chief Executive Officer at Sygnia Group. (Photo supplied)

Goodson has a five-year-old daughter and, according to Wierzycka, she was petrified.

“My biggest concern was her personal safety. If she had died in a random hijacking, no one would think because no one knew her name. So, what I thought was that the most important thing that needed to happen was to get her name out there in the headlines.”

Wierzycka’s good fight doesn’t end there.

Earlier this year, Sygnia started a new money market unit trust and the firm said it will donate 100% of the management fees, earned on the fund, to non-political organizations fighting corruption. Sygnia also fired KPMG when news on state capture allegations broke.

At the end of the day, I think it’s up to each company to make a choice. In the instance of KPMG, their board of directors make up their own minds as to whether what they’re seeing is what they expect to be seeing from their service provider and how serious they view what the company has done. In the instance of McKinsey, do you honestly want to do business with a company that has robbed South African taxpayers while we have a tiny taxpayer base supporting such vast percentages of the South African population which is living in inequality… Are you happy, morally, to do business with a business like that? That’s a question each board of directors has to ask,” says Wierzycka.

Another problem with some corporate companies is that they use denial as a first response when they are embroiled in a crisis. It creates a bigger mess.

KPMG South Africa, as an example, hired Nhlamu Dlomu, previously Head for People and Change, to clean up the mess as their new CEO. She couldn’t answer many questions posed to her, probably because she wasn’t prepared to be the CEO of one of the four top audit companies in the country that was facing its greatest crisis.

Women CEOs in times of corporate crisis may be a global trend.

A PwC report found that 38% of female CEOs are forced out of the office; compared to 27% of male CEOs. Another study, by Utah State University researchers, found boards are more likely to promote women and minorities to top leadership roles when an organization is in crisis.

“To me, that was a typical response of an international company that thinks  putting a fairly attractive female in front of clients is going to solve the problem… I think that the reason they are losing the battle in the court of public opinion is because they’re arrogant,” says Wierzycka.

READ MORE: Give Us Water Not Statues

Before firing KPMG, Wierzycka says she advised the audit firm to withdraw the entire ‘rogue unit’ report and they refused.

“I said, ‘let’s talk about the money then, because we know that this is blood money, whether it’s stolen from taxpayers or the farming community in the Eastern Cape. R63 million ($4.43 million) will go a long way towards fighting corruption. So donate all this money to organizations which are fighting corruption in South African courts. At least try to redeem yourself in the eyes of the South African public.’ I was told no…,” recalls Wierzycka.

KPMG only withdrew sections of the report, under questioning in parliament, admitting that it was wrong about the SARS report and that their conclusions and recommendations were incorrect.

Clearly, it will take more than marches in Sandton to bring about change.

Sylvester Chauke, Founder DNA Brand Architects (Photo supplied)

How To Weather A Corporate Storm

Sylvester Chauke loves to communicate. We meet him in his well-decorated office in Fourways, Johannesburg. As we enter, we are welcomed by multiple awards on the walls behind and in front of his desk. It is like we have entered a trophy factory.

“I don’t know how many awards I have. Not all of them are here but this is all inspiration and it is kudos to the hard work we do,” he says.

This is a world away from where it all started.

At 12 years old he went for a TV commercial audition. He loved it. Since then, he knew he wanted to work in the media industry.

There was research and soul searching. It ushered in a marketing and advertising communications degree, from the University of Johannesburg, and an internship. He never looked back.

Five years ago, he founded DNA Brand Architects; a marketing and brand consultancy company that advises people on how to avoid or deal with corporate crisis. He employs 34 people and counts Vodacom, Edgars, Bonang Matheba, Steers and Wimpy among his clients.

“It is all about taking all these fields of communication, whether it’s broadcasting, advertising, and brand communication, into one space,” says the 36-year-old.

According to Chauke, it is very obvious that there is a corporate communication crisis in South Africa. He says in most businesses, communication is just seen as PR. They send press releases and hope for the best. They don’t plan for a crisis.

“Most businesses don’t think that they have to think and plan for it, they just become overly confident, to some extent quite arrogant, to think that they are such great brands that can sort of overcome anything. We are seeing it right now with the likes of Bell Pottinger, KPMG and McKinsey. It is indicative of that communication is a ‘by the way’ thing,” says Chauke.

It is dangerous. When companies say the wrong thing, they risk losing their clients, or worse, the company. According to Chauke, planning for a crisis isn’t rocket science.

“Most of the time you can anticipate issues. For example, when your financial results come out and they are not good, you should plan what you are going to be saying to the stakeholders about the performance. It is the same if you are going to be retrenching 2,000 people, you need to be prepared.”

Chauke says every business needs a crisis management plan, reviewed annually, for crises they can’t anticipate.

“The biggest challenge that we have is people think because you are a CEO, and you speak to a crowd of 1,000 in a conference, you can handle media. That is so not true. You need an experienced spokesperson to handle that.”

He says Africans should inspire the world.

“I think that if the way that we do business is given a chance and doesn’t get distracted by all the corruption, scandals and corporate blunders, the way we do business would inspire others because we push regardless,” he says.

Maybe this is just the kind of inspiration corporate South Africa needs.


What does it mean to be HIV-undetectable or to have a suppressed viral load?



With medication and technology, science is increasingly improving the lives of people living with HIV and reducing new infections.

On August 8, 2018, a day before Women’s Day in South Africa, 23-year-old Saidy Brown observed six years of being on antiretroviral (ARV) treatment. 

We meet Brown in her hotel room in Benoni in the East Rand in the South African Province of Gauteng.

She sits still, reflecting on her life after a long and busy day. She has just returned from a group meeting with other young HIV activists.

Her t-shirt is unapologetic and as loud as her activism. “HIV POSITIVE #TEST & TREAT,” it reads. In the dim light of her room, she recollects her dark journey to becoming an HIV activist.

Brown was diagnosed with HIV at birth. However, she only found out she had it at the age of 14.

Brown grew up in a small town called Itsoseng in the North West Province of South Africa. In June 2009, while attending a youth day event, Brown and some of her friends decided to get tested for free.

The eager teen received some pre-counselling from one of the nurses.

“I remember getting into that room and the lady asked me two questions, ‘what would you do if you find out that you are HIV negative’?”

“I would continue living,” Brown said.

“What will you do if you find out you are HIV positive?”

“I would go out there and educate people living with HIV,” she said to the nurse.

Brown tested positive. Her whole life changed in the space of five minutes.

“After she told me, the first thing I said was ‘how? I didn’t do anything, I am only 14’.”

While her friends were discussing their results, Brown broke the news to them. They were all surprised.

Saidy Brown’s t-shirt is unapologetic and as loud as her activism. “HIV POSITIVE #TEST & TREAT,” it reads. Picture: Karen Mwendera

“I then told them ‘no, I’m kidding, I am negative’.”

Brown was ashamed and could not confide in anyone.

“I really wanted to go home and cry. Like, I didn’t even know where I got it from,” Brown says.

She was afraid of what her family, friends and community would think of her. For months, she kept it to herself. But the secret about her health was too overwhelming.

Later that year, Brown joined a drama club. They rehearsed for a play to be staged on  World AIDS Day, on December 1. She played the daughter of a woman who was HIV positive.

Little did her peers know that Brown was actually telling her real life story. A few days later, conversations with Brown’s drama teacher got her to divulge her secret.

She later gathered up the courage to confide in her aunt. Her aunt then revealed that Brown’s late parents had indeed been HIV positive.

“I was angry at my aunt for not having tested me earlier on, I was angry at my parents for having died before me knowing, I was angry at God, I was just angry at everyone,” she says.

She turned to writing to cope.  The first piece she wrote was titled An Open Letter To HIV.

“I will always remember this line because I paused there and I cried so much. There is a line where I said, ‘because of you I feel less pretty’.”

This marked the beginning of her activism. She shared the letter on social media and it reached thousands.

For 14 years, Brown had lived a healthy life with the disease without any treatment. Brown disclosed her status to close friends and received huge support.

It was only when she turned 18 that her health began to deteriorate. Hesitant to start treatment, Brown thought about the rumors she heard about the side-effects of ARV.

When she went for blood tests, she was told her CD4 count had dropped. According to experts, when the CD4 count drops below 200, a person is diagnosed with Acquired Immunodeficiency Syndrome (AIDS).

READ MORE |The Fight for Rights: Five Gains and Five Losses for Women in 2018

“I think that was when reality started kicking in that ‘you need to be on treatment’,” she says.

In 2012, she finally started ARV treatment. Since then, Brown has been living a healthy life

She uses her experience to encourage others living with HIV and to break the stigma. In June 2017, she recited An Open Letter To HIV at the eighth South African AIDS Conference addressing HIV/AIDS and gender-based violence.

She held governments and societies accountable.

The same year, she received the Red Ribbon Foundation Youth for Change HIV/AIDS Activist Award.

In 2018, she was recognized as one of the Mail & Guardian 200 Young South Africans, for her work as an activist.

Brown considers herself an “HIVictor” and reaches thousands on her social media platform spreading awareness about the disease.

“There is life after an HIV diagnosis,” Brown shared with her followers on Twitter.


Today, Brown is HIV-undetectable.

She has been virally suppressed for two years now.

According to a report by UNAIDS in 2018, being undetectable means that the virus is un-transmittable.

This means that people who are HIV positive with an undetectable viral load cannot transmit HIV sexually.

This was proven in 2017.

Dr Sindisiwe van Zyl is a clinician and general practitioner with a special interest in HIV and women’s health.

She also uses her social media to spread awareness on the disease.

Dr Sindisiwe van Zyl. Picture: Supplied

“The aim of ARV treatment is to achieve an undetectable or suppressed viral load. What is the viral load? It is the number of HIV copies in the blood. HIV uses CD4 cells to make copies of itself. If one is taking ARV treatment, the efficacy of the treatment is proven by an undetectable viral load. You’re still living with HIV, but you’re taking the treatment so well that the virus cannot make copies of itself,” she tells FORBES AFRICA.

“The viral load blood test tells us when undetectable levels have been reached and it takes 12 to 24 weeks to achieve this,” Van Zyl says.

Three significant studies were done between 2007 and 2016 on sexual transmission of HIV among thousands of couples.

According to UNAIDS: “In those studies, there was not a single case of sexual transmission of HIV from a virally-suppressed person living with HIV to their HIV-negative partner.”

“For many people living with HIV, the news that they can no longer transmit HIV sexually is life-changing. In addition to being able to choose to have sex without a condom, many people living with HIV who are virally suppressed feel liberated from the stigma associated with living with the virus,” UNAIDS says.

However, the stigma still does exist.

A 28-year-old millennial, who requested not be named, tells FORBES AFRICA that she had never heard of what it means to ‘undetectable’.

When asked if she would be willing to have sexual relations with someone who was HIV positive but their viral load was undetectable, she says she is unsure.

“I would but I would be worried because mistakes happen. What if medical practitioners thought it was undetectable but they made a mistake and now my life is at risk,” she asks.

She is not alone in thinking this way.

From a quick social media search, it is evident many users are not well-informed about what an undetectable viral load means.

Some social media users who disclosed to be living with HIV said that even their own doctors had not informed them about what it meant to be ‘HIV undetectable’.

Through hashtags such as #UequalsU and #UndetectableEqualsUntransmittable, awareness around being ‘HIV undetectable’ has spread globally, giving freedom to many HIV positive people to share their status.

“[These are] the hashtags of the century, in my opinion! What does #UequalsU mean? If the viral load is undetectable, then one cannot transmit HIV!” Van Zyl says.

It is such activism that has contributed to the strides in HIV research.

A doctor from the Wits Donald Gordon Medical Centre in Johannesburg agrees.

“I think that’s what makes the HIV space unique. Those activists are crucial… When patients talk, they talk as if they don’t have a voice, but with the activists, they have a voice and they are taken seriously and I think that has also been one of the big drivers,” Dr June Fabian, a nephrologist and clinical researcher at the medical center, tells FORBES AFRICA.

Transplanting to save a life

Two years ago, doctors from the transplant unit at the Wits Donald Gordon Medical Centre performed what is believed to be the world’s first HIV positive liver transplant.

Currently, the center is the only transplant program doing transplants from one living person to another in southern Africa. 

The liver of a mother living with HIV was transplanted into her critically-ill HIV negative child.

After the transplant, the child was monitored and the doctors were not able to find HIV within the child’s system.

The child had been on a waiting list for more than 180 days and was frequently admitted for life-threatening complications of end-stage liver disease.

Professor Jean Botha led the procedure.

He was approached by the child’s mother to consider using her as her baby’s donor.

“We have had a case where we proposed the idea but the mom said, ‘I cannot live thinking that I’ll give HIV to my child’, and she said ‘no’, and the baby died,” Fabian, who was a part of the team, says.

It was a very complex situation.

They reviewed the implications of the transplant, consulted with other experts and then spoke to the ethics committee at the University of the Witwatersrand (Wits).

“They came back and said, ‘if you are weighing up this child dying versus giving the child HIV then do it because, obviously, you want to prevent the child from dying’,” Fabian explains.

With the go-ahead, the team proceeded with the operations and assumed that the child would have the virus after the procedure.

But their assumptions were wrong.

“After the transplantation, we saw a seroconversion event. What that means is that the child became HIV positive,” Professor Caroline Tiemessen from the Wits School of Pathology and Centre for HIV and STIs, National Institute for Communicable Diseases, said in a report.

Soon after, they observed that the virus was no longer detectable. They then monitored the child’s antibodies and tested the viral load, however, she said it has remained undetectable since.

They have since not been able to trace the virus within the cells of the child.

“The liver is an immune organ so it’s the liver’s job to kill bugs… so I think in a way we might have struck it lucky with the liver. I don’t know if we can say what happened here is going to happen with a heart, a kidney or a lung,” Fabian says.

Despite not being able to detect the virus, the child was placed under ARV treatment.

Fabian says the only way to know for sure that there is no HIV in the child is if they completely stop treatment.

However, it would be a risk.

In 2017, a similar case was announced where a nine-year-old South African who had been diagnosed with HIV at a month old, received treatment, and then maintained remission after suppressing the virus for almost nine years without the treatment since 2008.

It has been more than a year since the liver transplant took place and both the mother and child are recovering well.

According to Fabian, they plan to continue doing more tests.

HIV Positive: The New Living Donor Pool?

At a time when South Africa is experiencing a shortage of organ donors, this may be a solution to the problem if people living with HIV may be able to donate organs.

In the early 2000s, Fabian’s work dealt with organ transplants and HIV before ARVs were created.

“We started seeing the disease untreated, and there was a lot of kidney disease so that was what sparked my interest and I started a study in the clinic with patients with HIV and kidney disease,” she says.

However, HIV patients back then were excluded from transplantation.

“We were basically throwing away organs from HIV-positive donors because we weren’t using them,” she says.

Dr June Fabian. Picture: Supplied

With a shortage of organ donors, Fabian says they lost 25 children on the waiting list.

According to an article by, there are around 4,300 people waiting for organ donations in South Africa in need of new livers, kidneys, lungs or hearts.

“The inclusion of HIV-infected people as living donors created the new living donor pool,” say experts from the Wits Donald Gordon Medical Centre.

This means that people like Brown who have been living with an undetectable viral load could be eligible as donors after tests have been done.

As for whether or not HIV-positive patients could potentially become blood donors, more work needs to be done in that field.

At the moment, Fabian does not think it is possible.

 “I don’t know if you would put someone on life-long antiretroviral for a blood transfusion. I don’t think the benefit outweighs the risk when you can source blood from non-infected donors and the person isn’t going to die if they don’t get the transfusion,”  Fabian says.

The evolution of ARVs

The first ARV treatment trial happened in the 1990s and in 2004, South Africa first rolled out its ARV program to people living with HIV.

ARV treatment has gone from taking several tablets a day to one pill daily.

 Now, patients, particularly in South Africa, can receive free treatment.

According to a report on HIV and AIDS financing by the South African Health Review, South Africa has the largest number of persons living with HIV and on ARV-treatment in the world, with this figure scaling up by approximately 400,000 persons per annum.

UNAIDS estimates there are 20% of people on ARV therapy globally.

HIV-related deaths have been decreasing as the number of people receiving ARVs is growing.

In 2008, the death rate was about 220,000 to 260,000 in South Africa.

In 2016, estimates between 96,000 to 140,000 of AIDS-related deaths in the country were reported.

“I think what is underappreciated is how much people’s lives have changed with ARVs and with access to ARVs and how much the science and the funding with ARVs has driven it from being a very complicated regimen to one tablet a day,” Fabian says.

And now, access to obtaining ARVs has become easier and they are getting smaller.

“The tablet is getting smaller and smaller, which is great for storage, great for carrying, makes it cheaper, it’s also easier to swallow,” says Professor Francois Venter, the Deputy Executive Director at the Wits Reproductive Health and HIV Institute.

Last year, South Africa saw the introduction of an ATM which uses electronic and robotic technology to dispense medication.

This allows patients to collect medication without having to queue at hospitals.

On the continent, clinical trials of injectable ARV drugs are currently underway.

This is part of a large-scale trial that will be conducted in six other countries –Kenya, Malawi, Botswana, Zimbabwe, Uganda and Swaziland.

According to a news report in The East African, the aim of the study is to introduce an injection once every two months.

“They are starting to work on a new implant. It is very early days but it is very, very exciting. So instead of taking your ARVs you just get an implant every year,” Venter says.

“ARVs are looking more and more like hormonal contraception … It is like having several choices.”

He predicts that they will become available in the next five to 10 years.

 Other new developments include the HIV vaccine trial (please read more on pages 44-47).

 As HIV research grows rapidly, Fabian says that other chronic disease studies can gain from its developments.

“If you look at how we manage TB [tuberculosis], there is very little progress that has been anywhere as rapid as HIV, in terms of making treatment accessible and simple for people,” Fabian says.

Venter agrees: “The funny thing is people with HIV are now living longer than the general population in certain spaces.”

A study in the United States found this to be true.

In 2014, an estimated 45% of those HIV-infected were older than 50, amounting to 428,724 people, while 27% were older than 55 and 6% were 65 and older, according to the Centers for Disease Control and Prevention.

However, more work still needs to be done in this regard.

Venter says that technology has significantly aided HIV research.

“There are new ways to measure HIV which are getting more available and the price is coming down,” he says.

“There are also new ways for testing for HIV which are very exciting.”

“Because the cost of antiretrovirals has gone down so dramatically, HIV is actually relatively cheap to treat, compared to diabetes,” he says.

“It also keeps people away from the medical system which is very expensive,” he adds.

Despite the great strides taken to improve HIV treatment, a cure is still nowhere to be found.

“I think we are getting closer [to a cure] with vaccines,” Fabian says, hopeful.

Venter, on the other hand, believes we are still far from discovering a cure.

“I am not particularly hopeful because I think the scientific challenges of it are so hard that I am not sure it is going to be possible, but I hope I am wrong,” Venter says.

He says that there have been large amounts of money diverted to looking for a cure and that we are learning more about the immune system.

Professor Francois Venter. Picture:Supplied

“Even if we may not find a cure, we are going to learn a lot about vaccines and the complexity of the human body,” he says.

For now, the importance of spreading awareness is still essential. Activists like Brown and Van Zyl can attest to that.

The world has gone from a deadly epidemic, to undetectable victories and vaccines in three decades.

We are witnesses to history in the making. Where will you be when a cure is found?

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Software Pirates Use Apple Tech To Put Hacked Apps On iPhones




Software pirates have hijacked technology designed by Apple Inc to distribute hacked versions of Spotify, Angry Birds, Pokemon Go, Minecraft and other popular apps on iPhones.

Illicit software distributors such as TutuApp, Panda Helper, AppValley and TweakBox have found ways to use digital certificates to get access to a program Apple introduced to let corporations distribute business apps to their employees without going through Apple’s tightly controlled App Store.

Using so-called enterprise developer certificates, these pirate operations are providing modified versions of popular apps to consumers, enabling them to stream music without ads and to circumvent fees and rules in games, depriving Apple and legitimate app makers of revenue.

By doing so, the pirate app distributors are violating the rules of Apple’s developer programs, which only allow apps to be distributed to the general public through the App Store. Downloading modified versions violates the terms of service of almost all major apps.

TutuApp, Panda Helper, AppValley and TweakBox did not respond to multiple requests for comment.

Apple has no way of tracking the real-time distribution of these certificates, or the spread of improperly modified apps on its phones, but it can cancel the certificates if it finds misuse.

“Developers that abuse our enterprise certificates are in violation of the Apple Developer Enterprise Program Agreement and will have their certificates terminated, and if appropriate, they will be removed from our Developer Program completely,” an Apple spokesperson told Reuters. “We are continuously evaluating the cases of misuse and are prepared to take immediate action.”

After Reuters initially contacted Apple for comment last week, some of the pirates were banned from the system, but within days they were using different certificates and were operational again.

“There’s nothing stopping these companies from doing this again from another team, another developer account,” said Amine Hambaba, head of security at software firm Shape Security.

Apple confirmed a media report on Wednesday that it would require two-factor authentication – using a code sent to a phone as well as a password – to log into all developer accounts by the end of this month, which could help prevent certificate misuse.

Major app makers Spotify Technology SA, Rovio Entertainment Oyj and Niantic Inc have begun to fight back.

Spotify declined to comment on the matter of modified apps, but the streaming music provider did say earlier this month that its new terms of service would crack down on users who are “creating or distributing tools designed to block advertisements” on its service.

Rovio, the maker of Angry Birds mobile games, said it actively works with partners to address infringement “for the benefit of both our player community and Rovio as a business.”

Niantic, which makes Pokemon Go, said players who use pirated apps that enable cheating on its game are regularly banned for violating its terms of service. Microsoft Corp, which owns the creative building game Minecraft, declined to comment.


It is unclear how much revenue the pirate distributors are siphoning away from Apple and legitimate app makers.

TutuApp offers a free version of Minecraft, which costs $6.99 in Apple’s App Store. AppValley offers a version of Spotify’s free streaming music service with the advertisements stripped away.

The distributors make money by charging $13 or more per year for subscriptions to what they calls “VIP” versions of their services, which they say are more stable than the free versions. It is impossible to know how many users buy such subscriptions, but the pirate distributors combined have more than 600,000 followers on Twitter.

Electronic Arts’ new game challenges Fortnite

Security researchers have long warned about the misuse of enterprise developer certificates, which act as digital keys that tell an iPhone a piece of software downloaded from the internet can be trusted and opened. They are the centerpiece of Apple’s program for corporate apps and enable consumers to install apps onto iPhones without Apple’s knowledge.

Apple last month briefly banned Facebook Inc and Alphabet Inc from using enterprise certificates after they used them to distribute data-gathering apps to consumers.

The distributors of pirated apps seen by Reuters are using certificates obtained in the name of legitimate businesses, although it is unclear how. Several pirates have impersonated a subsidiary of China Mobile Ltd. China Mobile did not respond to requests for comment.

Tech news website TechCrunch earlier this week reported that certificate abuse also enabled the distribution of apps for pornography and gambling, both of which are banned from the App Store.

Since the App Store debuted in 2008, Apple has sought to portray the iPhone as safer than rival Android devices because Apple reviews and approves all apps distributed to the devices.

Early on, hackers “jailbroke” iPhones by modifying their software to evade Apple’s controls, but that process voided the iPhone’s warranty and scared off many casual users. The misuse of the enterprise certificates seen by Reuters does not rely on jailbreaking and can be used on unmodified iPhones. -Reuters

-Stephen Nellis and Paresh Dave

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Earth’s Earliest Mobile Organisms Lived 2.1 Billion Years Ago




Scientists have discovered in 2.1-billion-year-old black shale from a quarry in Gabon the earliest evidence of a revolutionary development in the history of life on Earth, the ability of organisms to move from one place to another on their own.

The researchers on Monday described exquisitely preserved fossils of small tubular structures created when unknown organisms moved through soft mud in search of food in a calm and shallow marine ecosystem. The fossils dated back to a time when Earth was oxygen-rich and boasted conditions conducive to simple cellular life evolving more complexity, they said.

Life emerged in Earth’s seas as single-celled bacterial organisms perhaps 4 billion years ago, but the earliest life forms lacked the ability to move independently, called motility. The Gabon fossils are roughly 1.5 billion years older than the previous earliest evidence of motility and appearance of animal life.

The Gabonese shale deposits have been a treasure trove, also containing fossils of the oldest-known multicellular organisms.

“What matters here is their astonishing complexity and diversity in shape and size, and likely in terms of metabolic, developmental and behavioral patterns, including the just-discovered earliest evidence of motility, at least for certain among them,” said paleobiogeochemist and sedimentologist Abderrazak El Albani of the University of Poitiers in France.

The identity of these pioneering mobile organisms remains mysterious. The fossils did not include the organisms themselves.

The tubular structures, up to 6.7 inches (170 mm long), originally were made of organic matter, perhaps mucus strands left by organisms moving through mud.

The researchers said the structures may have been created by a multicellular organism or an aggregation of single-celled organisms akin to the slug-like organism formed when certain amoebas cluster together in lean times to move collectively to find a more hospitable environment.

“Life during the so-called Paleoproterozoic Era, 2.5 to 1.6 billion years ago, was not only bacterial, but more complex organisms had emerged at some point, likely only during some phases and under certain environmental circumstances,” El Albani said.

In comparison, the first vertebrates appeared about 525 million years ago, dinosaurs about 230 million years ago and Homo sapiens about 300,000 years ago.

The evolutionary experimentation with motility may have encountered a setback relatively soon after the Gabon organisms lived because of a dramatic drop in atmospheric oxygen 2.08 billion years ago.

The research was published in the Proceedings of the National Academy of Sciences. -Reuters

-Will Dunham

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