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ANC heavyweights fingered in EOH corruption storm

Details of the payments were made in a submission to commission of inquiry by law firm ENSafrica on Wednesday.
Zizi Kodwa was paid R225 000 by fomer EOH public sector head Jehan Mackay, according to ENSafrica investigators. Image: Supplied

Former EOH executive Jehan Mackay has taken centre stage in corruption allegations involving payments to senior ANC figures, including the party’s former national spokesman, Zizi Kodwa.

Suspicious payments were made by Mackay, from his personal bank account, to Kodwa (who now serves as deputy minister of state security) and to Siyabulela Sintwa, a former personal assistant to ex-President Jacob Zuma at the ANC’s Luthuli House headquarters, evidence introduced at the judicial commission of inquiry into state capture shows.

EOH subsidiary Tactical Software Solutions (TSS) – founded by Mackay and his father Danny and sold to EOH in 2011 for R130.5-million – allegedly paid off corrupt politicians by making payments to Mackay’s personal bank account at FNB, from which he then transferred money to various ANC bigwigs, supposedly for favours for winning government contracts.

Details of the payments were made in a submission to commission of inquiry by law firm ENSafrica on Wednesday. ENSafrica was commissioned by EOH to investigate malfeasance in its public sector IT contracts after TechCentral reported in February 2019 about Microsoft’s decision to terminate its licence agreements with EOH over a dodgy software-supply agreement involving the South African department of defence. That deal is the subject of an ongoing investigation by the US Securities and Exchange Commission.

Steven Powell, MD of ENS Forensics, a subsidiary of ENSafrica, gave an oral deposition to the commission on Wednesday, along with an affidavit. This followed the testimony given earlier in the week by EOH CEO Stephen van Coller. Van Coller has been waging a war against corruption and poor governance at the IT group.

Suspicious payments

EOH, under Van Coller, has fired employees implicated in suspected wrongdoing and has submitted reports on alleged corruption to the Hawks for investigation and prosecution. The company has also disclosed suspected irregularities to national treasury and has promised to pay back money to the government where work wasn’t delivered or where the government was overcharged.

Powell’s submission to the state capture commission on Wednesday dealt in detail with specific requests from the commission about certain transactions and companies. Even this small snapshot of the goings-on at EOH has provided an eye-watering account of malfeasance at the listed IT services group, which was led at the time by co-founder Asher Bohbot.

ENSafrica’s evidence shows suspicious payments from Mackay’s personal bank account took place between 26 May 2015 and 29 June 2017 and included various payments to a “Kodwa” (R225 000 in total) and a “Sintwa” (R191 600). Powell testified to the commission that “Kodwa” refers to Zizi Kodwa, and “Sintwa” to Zuma’s former personal assistant at Luthuli House, Siyabulela Sintwa. In fact, Sintwa’s full name is referenced in one of Mackay’s payment references.

Source: ENSafrica

A R500 000 payment was also made to a “Mr Nkbinde”, described on the bank transfer reference as a “loan”. This is believed to be Reggie Nkabinde, a former treasurer of the ANC Youth League, Powell said.

The commission asked EOH and ENSafrica to furnish details of contracts and transactions between a company called Molelwane Consulting, where current Johannesburg mayor Geoff Makhubo is a former member, and EOH, its subsidiary TSS Managed Services (TSSMS), a company called Zylec Investments, and former EOH public sector business development executive Patrick Makhubedu, who worked closely with Mackay in the public sector business at EOH.

Makhubedu resigned from EOH on 11 March 2019, the same day ENSafrica requested an interview with him for purposes of its forensic investigation and is now a focus of investigation, Powell said.

The commission asked for a schedule of payments to Molelwane and Makhubo (a close affiliate of Makhubedu’s) by EOH, Zylec, TSSMS and Makhubedu.

Makhubedu and Makhubo are linked to a number of entities that transacted with one another, including Molelwane.

An individual named Reno Nielle Barry was integral in a number of these financial transactions, said Powell. Barry features prominently in one of the companies that appeared to have been used extensively for “concealed and illicit payments”. He is former group financial manager at TSS. Barry provided accounting services to various of these linked entities, including Zylec (where Makhubedu is the key principal), Molelwane, and entities called Mfundi Mobile Networks, Prime Molecular and Grass Farms.

“E-mail evidence that we were able to analyse indicates that Barry made a number of payments, including to Molelwane, at the instruction of Makhubedu. The e-mails … also suggest that Barry assisted Makhubedu, Makhubo and Makhubo’s wife in their personal tax matters,” Powell said. Mfundi Mobile, where Barry is a director, paid more than R34-million for “purported work on public sector projects where we could find no evidence that any work was done”. EOH has reported this apparent corruption to the Hawks for further investigation.  — (c) 2020 NewsCentral Media

Duncan McLeod is Editor of TechCentral. 

This article was first published on TechCentral, here.

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THE SWAMP HERE IN SOUTH AFRICA IS DEEP AND TOO MANY A.N.C. (helping the poor) people are GUILTY !!!!!!!!!!!!!!!

But it took the white corporate folks to start the corruption so that they could get the tenders. The whole country is rotten including many white corporations. Why are we always blaming the black politicians. Who enticed them when they came to power?

Lets not forget Steinhof and many thousands like them.

What are you on about? Black or White or Brown or Yellow, individual or corporate (white or black, BBBEE1 or BBBEE8). Who gives a rat’s posterior. If you’ve done corruption you must go to jail. End of. And what is the relevance of who started it? Its like saying because the white guy broke the law first then it must be fine and dandy for the black guy to follow suit. Absolute rubbish!

sounds like a rabid socialist apologist. Get real.
Corruption is the dna of the ANC.

@Anonymous: Are you saying that black politicians are blameless? That the only reason they are corrupt is due to them being approached by ‘white corporate folks’? Politicians are elected by the people and have a responsibility to the citizens. Anyone approaching them with a bribe should immediately be reported (even in a ‘sting’ operation – like motorists are trapped speeding) and charged with the crime. Please don’t go trying to find excuses for corrupt criminals. A criminal is a criminal regardless of race, creed or gender. I had a far more sarcastic response but it appears the moderators did not like it. As a citizen I have a right to criticise politicians and anyone who tries to defend their wrongdoing.

Liars, thieves, rapists, murderers — Oh ja and nogal corrupt as well. Magnificent traits of politicians in Africa !!!

Admittedly, the ANC did better as a terrorist movement back in the day *lol*

Now they are doing just that: “terrorizing” SA’s fiscus to leap over the cliff…

Oh my goodness, what a surprise…

You can’t be surprised for real. I take it you are joking. These are the same guys who come out here and complain lyrically about ‘white monopoly capital’ and it turns out they are not only in bed with ‘white monopoly capital’ that same ‘white monopoly capital’ is their sugar daddy and giving monthly bribery stipends. They are a parasitic class that is like a leech, they eat and devour everything in their reach, but create nothing and live conspicous lives that are meant to show off how ‘rich’ they are. Not only that, they even get promostions, look at how well Kodwa has done? Deputy Minister of State Security!!!??? Really??? Is any wonder that people like Bushiri can just wonder off and walk to Malawi without anyone raising or betting an eyebrow?

My guess is that Pistov is actually p%ssed-off – that the cream of the political leadership crop in South Africa is so deeply mired in sewage. When are the non-crooked ANC heavyweights going to start leaving the party to start a party of their own? Unless of course there are no non-crooked ANC members – all tainted by association.

I saw this video on Youtube of Mandela debating De Klerk in the early 1990’s. Mandela said that “the ANC will put an end to all the corruption in government”. Additionally, Mandela stated that the NP’s “gravy train will end soon as well as all the money wasted through the duplications of apartheid”. (This is now the holier than thou Mandela.) I think the rest is history for all to see.

Oh how the wheels of fortune have turned for those waiting in line for the Train – The Gravy Train that is.
Here is Mandela’s debate for those who wish to see how this wheel has turned for him – guess he is squirming at this stage.

https://www.youtube.com/watch?v=RJCgFP-y00U

The funny thing is that the ANC is actually now broke because the lucrative (read LARGE) corrupt projects have run dry and there are no more funds available.

I am curious to see how the next ANC Elective Conference is going to be funded when it come time to pay/bribe for votes takes place………hehehehehe

Probably – in fact most certainly funded by one of the cigarette barons??? I mean the bulk of the average voters/ supporters have been unemployed or partially employed and or on grants – so not a hell of a lot of membership money floating around.

@ Gil

Expect more money transport heists.

Was he not referring to the homelands which did cost a fortune?

Those ‘homelands’ are now no doubt costing even more. A myriad of kingdoms, chieftainships, etc etc with multiple committees, departments, etc manned by incompetents all living the high life doing nothing but securing the vote for the ruling party. Not to mention State Capture – or do we simply ignore that because nothing has been proved? The theft, wasteful expenditure and corruption of the Nats was small change compared to what the liberation leaders are liberating from the national coffers of taxpayer money.

Not very useful harping about the past, but let’s compare the “homelands” plus four provinces to nine provinces when it comes to “duplication”, compare size of parliament, size of cabinet, changing city councillors and mayors from people with day jobs being paid allowances only, to more like fulltime rather juicily paid jobs. And so on. Just a little comparison for fun for which I do not have the numbers but am curious to see it.

Maybe he was, but the question remains: “What happened to the surplus and the supposed savings?” Our debt to GDP ratio is now close to 95%, the biggest ever in history and our economy has shrunk back to the size it was at the end of apartheid.

jnrb does not refer to the previous regime being ‘right’. He merely points out that the promises made by the then leader of the ANC were all shattered to bits by the reality that has unfolded since then. Surely you agree that it a complete mess, extremely atrocious and very sad. It’s as if the ANC politicians were (are) hell-bent on destroying the lives of voters and the economy of the country they were (are) supposed to SERVE.

Jnrb

Well well well. Shop, let’s talk it!
There is nothing wrong in a leader laying a vision for an organisation and setting a directive by him being exemplary in achieving the stated vision. Under Mandela’s leadership, yes not perfect, on a corruption front alone, he lead the country to a much better state than he got it from. To attest to that, your previous comment comes in useful: “ our economy has shrunk back to the size it was at the end of apartheid.”

Mandela is the least problematic (yes,not perfect) BREACH between his then predecessors and now successors. The only reason the past government’s corruption is not today’s daily script is because they have been dispossessed of their rule and power, not because they suddenly got touched by an angel and corrected their wrongful conduct. Oh you hypocrite, that stone Sir, be it far from you to even cast your eyes upon it, you are not worthy for that kind of oratory.

Wholesale crony capitalism at its best. Businesses in South Africa cannot succeed without close relationships between the entrepreneurs and government officials. Businesses rely on government contracts and a raft of compliance certifications from the regulatory state.
Since the ANCs main purpose is to remain in power, rooting out corruption is impossible, as this means pursuing senior party officials, which in turn weakens the party.
BEE and AA is marketed at morally correct and that it is only right that previously dis-advantaged groups are deserving of favoritism. Unfortunately it is damaging to the economy as it distorts incentives and leads to the corrosion of free enterprise. Connections lead to advancement, rather than entrepreneurial achievement.

Exactly … it does not matter if you have the best solution and the best support and even if one has committed to the spirit of BEE and gained a Level 1 BEE Certificate, there is no chance that you will get any government business unless you are paying off senior politicians through their various channels.

That is the beginning and the end of government business!!

As guilty as ANC cadres are in this sick mess, we should not forget the erstwhile darlings of the private sector who were in there up to their necks. Little comment from Asher and pals on all this. This stuff comes from the top. The people I feel sorry for are the erstwhile owners of good businesses which sold to EOH for shares.

Indeed, it takes two to tango to the corruption dance. Shareholders lose on the one hand while taxpayers on the other. Government has written the framework and conducts the orchestra and reaps the ill-gotten gains.

No surprise. The higher up in the ANC the more corrupt they are.

We can never see growth with the ANC in place.

The ANC is not a political party, it is a business with one intent – to make money for themselves at any and all costs.

100%, compeletely correct. We should stop calling the ANC a political organisation. Its is not. It is in fact a criminal conspiracy intent on looting the country and it’s people. I do not understand why the DoJ in the US has not classified it as such up to now. Hey Lana, help us out here please?

All you capitalists take note: if you really want to make the Big Bucks: open a church or become a freedom fighter. The rest is just peanuts.

What is in a name, Van Coller? Get them, youngblood.

Question to Mr Kieswetter (assuming you might happen to read this – failing which maybe some brave journalist might ask it). Of all the names mentioned in the above article of people alleged to have been involved in malfeasance, what is the likelihood of any of them having their last five tax returns audited with the highly probable outcome of discovering undeclared income / assets? Or would that be considered a wasteful exercise? That question of course applies to the whole Zondo Commission transcript. Tax and penalties on undeclared income should yield a fair compensation for the reduction of tax paid by the honest masses due to reduction in earnings during lockdown?? No?? NPA might also be interested in those finding I suspect, but their workload is no doubt growing unrelentingly.

The answer to your question is simple. His organisation is way too busy nitpicking the exact value of my (cheap ) company car for this year’s assessment (which may make a R20 difference to my final assessment outcome), to investigate the billions of rand of undeclared illicit incomes of mighty politicians.

I understand he is a card carrying member of the ANC
maybe i am wrong.

My question exactly. This should be an easy win for SARS. The question should be asked of the minister of finance in parliament on how many and to what value assessments have been raised by virtue of the evidence in the Zondo commission, how many of those taxpayers entered into a compromise under section 200 of the Tax Administration Act and how much tax was written off as a result (or what was the settlement value) and how much of the tax debt was written off under sections 197 to 199 of the Tax Administration Act and what was the value of the debt written off and the reasons for the write off, if any. The debt should be recoverable from salaries of ANC MP’s. This is a request for statistics without identifying specific taxpayers and SARS can therefore not hide behind the secrecy provision of the Tax Administration Act.

Fingered? Where? Did they giggle while being fingered?

That sounds gross. Hope they washed their hands with plutonium afterwards!

and like with the competition commission issues and other corrupt hired help actions, in the end shareholders of these companies pay the price. Hopefully there are mechanisms to forfeit pensions of the hired help and bankrupt them for repayment of past bonuses and salaries plus of course disqualify them from acting as directors or trustees anywhere for life.

Sure, like Dudu’s directorships, and Brian’s paid back pension, (hasn’t paid back one cent)ha ha ha. Our thinking of the law, court orders, and justice, and the reality, are far far apart…

Now we know how the Mackay’s were able to afford a R150 000 000 Clifton property

Gangsta State under ANC, worse than the mafia

When it comes to CEOs in SA, there’s no tier for Stephen van Coller – Awesome work !!

At this point, I don’t really think it makes a difference anymore whether we fight corruption or not. Also, there will always be another to take his place that tries to take the money and run, lol.

Should the scoff be haw haw or hawk hawk?

“If we elect the same corrupt politicians every time, that’s a very clear message that we don’t want a change” – Sukant Ratnakar (whoever that might be). Spot on. Any bets on the outcome of the next general election?

he was opening bat for India in the 60’s

Funny how the ANC hasn’t passed a law yet that condones corruption if you are a card-carrying member of the ANC!

I have always wondered what was meant by ”radical” economic transformation – now I do!

End of comments.

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