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Organs of state poured more than R49bn into criminal enterprises

And the final pot of gold always ended up with the Guptas.
Billions in taxpayer money was awarded through tainted contracts, ‘laundered’ in SA, and moved offshore. Image: Waldo Swiegers, Bloomberg

Paul Holden, co-founder and director of Shadow World Investigations, appeared at the Zondo Commission of Inquiry into allegations of state capture on Monday (May 24) to give evidence on Gupta contracts with state-related entities.

Shadow World Investigations focuses on cases of grand corruption, corporate malfeasance and militarism (co-founder Andrew Feinstein was an ANC MP until his resignation in 2001 when the party refused to properly investigate the arms deal).

Holden gave a stupefying account of billions of rand paid from state-owned entities and other governmental organisations into a complex local laundromat.

From here the “laundered” funds were transferred into further complex offshore arrangements in Hong Kong, China and Dubai. Ultimately, the funds ended up in Gupta-related enterprises.

By tracking thousands of money flows emanating from tainted contracts through many different accounts and bank statements, Holden has garnered evidence to demonstrate that organs of state dropped some R49.1 billion into criminal enterprises.

Some of these funds were recycled and used to purchase SA assets such as Optimum Holdings, and to support the liquidity of the enterprise’s “legitimate” businesses.

Holden also showed how Nkonki Inc was bought with illegitimate funds.

Laundered money

Holden has provided annexures containing relevant schedules as well as annexures showing flows of funds, bank statements and bank transactions.

Every single transaction has been cross-referenced. He has identified all the key elements in more than 200 tables.

Contracts have been deemed to be tainted where, for example, they were entered into without any competitive bidding, contained material irregularities, and were concluded with entities which he referred to as “first level laundries”. This is a company that does not conduct any business activities, or does not conduct any legitimate business.

Tainted contracts

1. Innova and Tsebo

Contracts were awarded to Innova Management Services and Tsebo Business Intelligence by the Free State Department of Agriculture and Rural Development in 2012.

Tsebo was to develop a master and business development plan for the Free State Department of Agriculture and Rural Development, and Innova was combined with the contract. Holden said Innova was not a functioning business.

These entities purported to provide engineering services. Innova management solutions was owned by Chwayita Mabude, but managed by Salim Essa and Ashok Narayan. Mabude was involved in a number of contract approvals for the Guptas; a former Eskom board member, she has previously appeared before the commission on Eskom-related evidence.

The relevant MEC of the Free State Department of Agriculture and Rural Development at the time was Mosebenzi Zwane.

The money paid to Innova and Tsebo was paid to Aerohaven Trading. Aerohaven Trading then returned all the money received to Innova by bank transfer. In November 2013 Innova converted the total amount of R9.8 million into dollars and paid it over to Gateway Enterprises (the Gupta enterprise in Dubai). 

2. Homix

The Free State Department of Economic Development and Tourism paid Innova R6.9 million, and Innova paid 91.5 % of this to Homix.

Zondo asked if Innova and Homix were controlled by the same people. Evidence leader Matthew Chaskalson SC replied that the commission has seen no evidence that Mabude controlled Innova, and that the commission has seen evidence that Essa controlled Homix, and had represented Innova in dealings with the Free State.

3. Regiments

The Regiments Group earned R1.3 billion from Transnet, the Transnet Defined Benefit Pension Fund, SA Airways, SA Express, the Free State Provident Fund, Safcol and Denel.

4. Trillian

The Trillian Group earned R935.3 million from contracts with Eskom, Transnet, the Transnet Defined Benefit Fund, and SA Express.

Read: Regiments and Trillian: Whistleblower joins the dots (Dec 2020)

5. McKinsey

McKinsey was paid more than R1.8 billion (R1 802 400 000) in regard to contracts with Trillian and Regiments. Eskom paid R1 108 200 000, Transnet paid R688 000 000, and SAA paid R6 200 000.

Read: McKinsey worked with Trillian after learning of Gupta links (Nov 2017)

6. Neotel

Transnet paid R5 582 million to Neotel (the payments were first made to a front company called Chivita, then Homix, Forsure Consultants and finally Medjoul).

7. SAP and PwC Nkonki

Holden also discussed the contracts awarded to SAP Africa and the PwC Nkonki consortium.

8. Cutting Edge/Sahara

Cutting Edge submitted an unsolicited proposal (which is irregular) to Eskom on April 29, 2016 to provide data management and cleaning services to the utility. Eskom paid Cutting Edge R72 million 17 days later on May 16, 2016. Another R24.4 million was paid to Cutting Edge. Holden told the commission that Sahara Holdings had bought 51% of the shareholding in Cutting Edge in 2014.

Holden also calculated that more than R1.2 billion was paid to first-level laundering entities drawn from state funds.

And so Holden continued – payment after payment, contract after contract, table after table.

The final pot of gold always ended up with the Guptas.

The Tsebo Group, which is a workplace management solutions provider wishes to point out that it, as well as its subsidiaries, directors, and executives, are in no way associated with Tsebo Business Intelligence Services.

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COMMENTS   31

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And nothing will come off it. They will all walk away scot-free. The state capture crimes is on par of the so called apartheid crimes, if not worse.

Actually, worse. The whole idea of apartheid was to prevent this kind of thing happening.

For real!?? Apartheid was an anti corruption measure???

With this damning evidence, you would think that the NPA would be all over this evidence launching criminal proceedings, but no.

The ANC’s sole purpose (and legecy) is corruption.

Winston Churchill once said: “The best argument against a democracy is a five-minute conversation with the average voter”. The only reason why these corrupt clowns rule over us is because their supporters can outbreed anyone else. The ANC hasn’t got the best policies or the best record of implementations. It only has the most votes. Apparently, that is all that matters while everything else around us implodes and goes to pieces.

Agree 100%. You have highlited the fatal flaw in the sham that is democracy. Simply a mechanism to reward rabbits.

…and during this time Dep.President Ramaphosa was both ignorant and honest in all of this

What is more damning apart from being Dep. President is that he was the chairman of the National Planning Commission.
The DA wants all the Minutes, E-mails and WhatsApp messages between the members and Cyril Ramaphosa.
Off course the ANC refused. The DA went to court to force the ANC to hand over this information. If the court agrees with the DA that it is in public interest to hand over this information I think Cyril Ramaphosa is in deep trouble.

Why are we still paying tax in this country?

The million dollar question.

The headline is wrong. It should read “ANC criminal enterprise pours R49 billion into Gupta criminal enterprise”.

If you vote ANC you are an accessory.

When you lay it all out do succinctly … our Prez will be so surprised!

Wonder why uncle Eddie Kieswetter are so silent on this, tax morality only an issue when joe public dont pay..
Cam we ask for a reimbursement for taxes paid but stolen ?

Democracy is a total failure in SA.

The average voter in this country is so misinformed it’s scary.

The alternative is a one party state a la Zambia and Zimbabwe.
Then we have streets named after these eminent thugs ?

We are essentially a one party state already, and they’re renaming things every other week.

If and when the ANC is ever voted out of power, that’s when I’ll know that democracy has actually taken root here at the southern end of Africa.

This is like plugging the hole in the Titanic with candy floss – its gone, its never coming back and the crooks stand and smile as they hand out t-shirts and cokes to their brain-dead herd of voters. They will never be held accountable, that’s why they white-anted SARS, the police and the NPA. The new man at the top is no better, just more genial and urbane than the last tribalist. A-loota continua. Oh BTW, we all knew this was going to happen.

Much bigger than State Capture is the “capture of democracy” in Southern Africa, by the liberation parties.

Decades later, people are still “voting” for Frelimo in Mozambique, ZANU-PF in Zimbabwe, MPLA in Angola, Swapo in Namibia and ANC in SA.

The people have been denied voter education by these liberation parties.

Political analysts predict that the country is so destroyed ( literally ) that even a change in political governance can’t save it!

I think its just a tribe. Like it has been for centuries. Politicians just took the power from the “kings and queens”.

It will take centuries to change but it will never happen as like before war, famine and pestilence will reduce the numbers to something a “king or queen” can manage. Like before.

This reveals the real reason for the inequality that the ANC keeps bleating about. The countries resources were given to the new colonisers in exchange for a few trinkets. The ANC supported the Gupta front man as their leader and that includes Cyril who was deputy at the time. How many motions of no confidence did the ANC vote against again? Was it 8 or 9?

Interpol could round up the Guptas in almost any jurisdictional country and deport them to SA to face the courts.

But Interpol will only act if/when requested by a member country. If the ANC was serious about catching the Guptas, this would have been done.

There is no political will from the ANC to deal with the Guptas. Not now. Not ever.

Looks like our new heroes are Paul Holden and Andrew Feinstein from Shadow World Investigations. Well done lads, but now what? When is this damning evidence ever going to be brought before a court of law and used against the perpetrators? How much longer will it take for justice to prevail and those involved brought to book?

Here’s the evidence Interpol, now go get the Guptas bring them back so we can get this show on the road and start convicting people already!

ANC = African National Criminals

All ANC voters are complicit in the theft of state resources.
All businesses are complicit in feeding this government their taxes to perpetuate the looting.
All Taxpayers are delinquently assisting in the feeding frenzy at the trough !!!

I’m sure the organs of state were hoping for more. Criminals are at the top of the list – in terms of importance – and some have even advanced to the role of President.

The question to put out there is: Do South Africa need a government? The present one on balance sheet is a liability and not an asset. I argue for its disbanding. It’s out of the people so surely the people can discontinue it. It has no inherent right to life.

The question nobody seems to be asking is… Why the guptas?

And what were they doing in exchange for all this largess?

Because for billions of cash there has to be billions of payback in return. When we discover what this was, we will have the story of the century

So the money ends up in the hands of SA’s favourite highlighted family.
Nobody along the chain, therefore, benefits at all?

I firmly think that everyone in any positions of authority in the government, city councils and all SOE’s need to go through a lie detector test run by a totally independent company selected by qualified vote.

It would be interesting, final and those who refuse will be automatically fired.

End of comments.

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