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Zuma leading the ‘parasitic bourgeoisie’

More than R10bn channeled to Gupta-linked companies.

Betrayal of the Promise: How South Africa is being stolen is the latest report on state capture and does not mince words in its description of the rot that has engulfed the government. The report describes Gupta- and Zuma-led networks as a virus-like, parasitic, criminal enterprise and goes into some detail when illustrating the extent to which State and State-owned enterprise coffers have been looted over a period of many years.

The 63-page report was penned by a totally unaffiliated and seemingly apolitical team of researchers, from several universities around the country.

They describe how the looting of the state – which has seen more than R10 billion channeled to Gupta-linked companies – was systematically coordinated.

It’s nothing less than a ‘silent coup’ the report observes. Maybe ‘cash blitzkrieg’ would be more apt.

The most interesting part of the report is the researchers’ graphic depiction of how the alleged looting network actually worked:

 

This network of patronage consists of 12 companies and 15 individuals who are connected to the Guptas and Zuma. This network is structured in three tiers.

  1. At the top there are the ‘controllers’ or patrons, such as Zuma and the Guptas who “sit at the apex and are usually the strongmen directly responsible for predation and exploitation as they control resources.”
  2. The second tier consists of ‘elites’ such as Ace Magashule (premier of the Free State), Faith Muthambi (former minister of communication), Malusi Gigaba (current minister of finance and former minister of public enterprises), Brian Molefe (CEO of Eskom and former CEO of Transnet), Mosebenzi Zwane (minister of mineral resources and Anoj Singh (Eskom CFO and former Transnet CEO). These individuals are responsible for establishing and maintaining patronage networks, which facilitate the distribution of benefits.
  3. The third tier are ‘entrepreneurs’ or ‘brokers’, such as Iqbal Sharma (former chairperson of Transnet’s tender committee), Eric Wood (CEO of Trillion), Salim Essa (CEO of VR Laser) and Ashok Narayan (CEO of Homix). They are the middlemen and are tasked with transferring funds to Gupta-linked entities.

The researchers went even further and provided an example of how the network plundered Transnet:

 

The collusion started earlier than people imagined – in this case when Zuma replaced Barbara Hogan with Malusi Gigaba as the minister of public enterprises – in 2010.

Shortly after his appointment, Gigaba appointed Gupta-linked Iqbal Sharma as the chairman of the Transnet tender committee. This committee supervised all tenders worth more than R2.5 billion and, almost immediately, Gupta-linked entities started to see the cash flowing.

One transaction related to the R51 billion tender for the purchase of 1 064 locomotives from four companies, including China South Rail which won a tender worth R14.6 billion. The Guptas have close links with China South Rail and the report claims that large sums of money were paid to Hong Kong-based Gupta entities.

Other links include benefits for VR Laser Property to supply components and Trillian Asset Management to provide financial and corporate-structuring consulting services.

Additional links include Neotel, which apparently benefitted from brokering work performed by Homix, a low-key Gupta entity. International IT company SAPS was also “strongly encouraged” to partner with another Gupta company: Global Softech Solutions.

The Guptas also benefitted in other ways as is depicted in the graphic above.

State capture under the auspices of radical economic transformation

Another core theme of the report is that this looting has and continues to be performed under the smokescreen of radical economic transformation (RET). This has resulted in the creation of a Zuma-centred black power elite, or “parasitic bourgeoisie” as Wits vice chancellor Adam Habib described them during the launch event.

The report states that “RET has been turned into an ideological football kicked around by factional political players within the ANC itself and the alliance in general, who use the term to mean very different things. “Crucially, RET is used to give ideological legitimacy to what is essentially a political project to manage the symbiotic relationship between the constitutional and shadow state.”

The report also offers three solutions to this network of patronage, which most people outside of the Zuma/Gupta network will support.

  1. The Gupta-Zuma network needs to be broken and dismantled. This will require political action within and outside the tripartite alliance to dislodge Zuma, coupled with legal action to criminalise and bring the perpetrators of State capture to justice.
  2. Secondly, a new national economic consensus is required to which all parties subscribe. There has never really been a broadly shared and fully supported economic policy framework. RET is already a factional political football. One can speculate that a positive outcome of this political crisis would be the adoption, for the first time ever, of a new economic consensus – that can both unite the different factions of the alliance by giving real substance to RET, while enjoying broad stakeholder support in the business community, labour sector and civil society.
  3. Thirdly, all stakeholders, in particular the political actors who will replace the Zuma-centred power elite at some point in the future, must commit to realising the vision of a new economic consensus within the framework of the Constitution and relevant legislation.

 

As one State capture report after the other appears, it is becoming clearer that we do not only need a judicial enquiry into State capture, but also a full criminal investigation. If Zuma remains in power this will most certainly not happen, but let’s hope that this weekend may change this scenario.

I believe the end is nigh.

COMMENTS   21

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Despite the overwhelming evidence of criminality within the ANC, I don’t foresee the status quo changing in a material sense for the foreseeable future.

As many opponents as Zuma has, those have the ability to remove him will not as they too will be dragged down once the extent of corruption/criminality is uncovered.

So Ryk, what you are basically saying is the we in South Africa are Fcuked. Plain and simply Fcuked.

Not yet…I hope.
A lot will depend on what happens this weekend. A turning point will be if Zuma is recalled.
This may be dependent on Cyril to actually stand up and (aggressively) take on Zuma in the NEC.

Another aspect to keep in mind is that we have now seen three credible state capture reports and a media that have reported freely and fearlessly to expose the Zupta network. The judiciary also remains uncaptured. This means that a few institutions are holding up as the last defence, and I think they will prevail.

So I agree that we are close to rock bottom, but if there is a positive outcome this weekend… we may just see a bounce.

Read the whole report… although it is not bedtime reading, it is pretty good.

I agree, everyone should keep on the pressure for Zuma and the people backing him to go.

Ryk, nothing personal, but if the view is that this weekend’s events will save us then we remain doomed. I would luv it if it were true that come Monday we see CLUELESS is out, but gee, how many times have we been lead up the garden path.

With the benefit of hindsight and looking at where we are today we have to acknowledge that there has been too little done by our opposition parties, civic societies and the media. Here we have a group of academics who have voluntarily come together and co-ordinated their efforts to take real action that fits their ‘sphere of influence / impact’, and while I have not read their report as yet the info about it is exciting.

I have commented in this vein on the MoneyWeb article ‘Academics join the dots in state capture’. I’m not saying that there have not been efforts by the opposition, civic societies or the media – but they have been disjointed and largely ineffective. CLUELESS and his cabal after all are still there and the damage they are doing continues to grow. To be truly effective there must be a more co-ordinated effort and we cannot, I believe, rely on a weekend NEC meeting or the forthcoming ‘vote of no confidence’ (we can certainly hope but whatever happens is more likely to happen as a result of actions outside of these areas). What has been tried thus far hasn’t worked – so what needs to be done differently? It cannot be more of the same and I think these academics have shown the way.

All supporters of the ANC are striving to become part of the “parasitic bourgeoisie”. Those who vote for the ANC are knowingly and voluntarily supporting a criminal enterprise.

For us to expect the ANC to reject Zuma and cleanse itself of corruption is like believing that ANC supporters will start thinking like DA, IFP, Cope, UDM and FF+ supporters. It won’t happen.

The ANC supporters with a conscience and actual skills other than to loot and plunder, will leave the ANC and vote for the opposition. The aspiring criminals without any skills, will remain as ANC supporters.

Zille recently announced a state of emergency in the WC, which according to my understanding is a battle plan to take matters (e.g. procurement) quicker through the bureaucratic processes. This calls similarly for a hastened process to investigate and prosecute. If the current lack of priority action is anything to go by and well knowingly that procedures are designed to be delayed, normal channels are not to be trusted with this important matter.

Wow! Amazing! Shocking! These big shots all working for their own benefit. A true mafia. They should be criminally prosecuted – all of them.

Baby Brian, Clueless & Clan and now lately Smiley mr Finance minister. I must say no shock of the first 2, a bit disappointed to see Smiley as part of the clan. I started to like his energy and promise to do the right thing.

Good on you AP. Smiley is smiley because he knows things that we do not. He’s the Cheshire Cat in this tale of woe and has a devastatingly dangerous and destructive history in govt.

Smiley has been part of the capture clan for a long time now. Just that he kept a low profile, so wasn’t so well noticed. That worked until be was appointed MoF.

SPAP…
Good points, and maybe I am over optimistic that the ANC will kick Zuma out. I do however sense that there is significant pushback against the Zupta faction and a realisation that the longer they remain in power, the more aggressive and destructive the looting will become.

I think you are also a bit harsh on the role “the media” played to uncover this corruption. Some institutions such as amaBhungane (a not for profit investigative unit) and the investigative teams within Media24 and Times Media have done phenomenal work to unravel the misconduct and many of their revelations were used in this report. In fact, I think there are individual journalists who should receive the same accolades as Thuli Madonsela.

Ryk – we live in hope that the push back, this time, truly is what the voices claim it to be. Yes, there has been some really good work done by the media, especially amaBhungane. But has it been directed enough? To answer this question there are 2 that must precede it, and these I think are –
(i) What if CLUELESS is still there come Monday?
(ii) What if he is still there following the upcoming (umpteenth) ‘vote of no confidence’?

Clearly whatever has been done / tried by all players has not been adequate. This includes the press. An unrelated thought comes to mind in this regard (although the reaction maybe teach us something). This has to do with the story that after the Saudi Arabia leg of Trump’s travels he sent Priebus and Bannon back to Washington to set up a ‘War Room’ to deal with all the flack re the ongoing investigations, etc, etc.

We are AT WAR in SA against CLUELESS & CLAN! Where is our War Room, where is our co-joined and co-ordinated effort with specific strategies and tasks identified and assigned? Surely this has to happen as all good work that is uncoordinated and overlapping or has gaps has not and does not work. Maybe the Facilitator (Initiator) of the Academics who got the ball rolling and saw the exercise through is the person to co-opt here. I don’t have the answers, but my goodness whatever we have been doing certainly has not borne any real results.

Ten billion is more than the Gutas can spend in their combined lifetime. This is stolen from all SA citizens, taxpayers and state grant beneficiaries alike. Continuing to steal this is not of much further great benefit to the Guptas, but is having a seriously negative effect on all of us.

What does it take from you and me to stop this?

Nothing much will be done this weekend. The ANC NEC is filled with people feeding in the trough of Zuma’s gluttony right behind him . These are people who have no integrity or plain common honesty to say the least. Again there are many and unfortunately they do not make up the majority , who are decent , honest and humble people made in the qualities and values of Madiba, ORT and WS. The secret ballot in parliament may bring out some real surprises hopefully.

Surely Clueless is a key problem, but not the only problem. If the Clan is not removed as well, only 50% of the problem is solved. Let’s just hope that Clueless is replaced with a strong leader that has the will to do the clean-up. A number of heads must role. This new leader must stand-up against greed and may also be pulled into the promise of millions to his/her account (just hope Clueless’ replacement is not the ‘her’ as she does not have what it takes to fix the problem). It is risky, this problem may only be uprooted when the ANC splinter up and is replaced by a new party with integrity to lead. My key concern is that the real objective to replace Clueless would be to safe the ANC from dismantling in order to project the highly lucrative criminal network inside the ANC. The reason may not have anything to do with doing what is right and cleaning-up the party. Even Cyril is a great defender of Radical Economic Transformation/Inclusive Growth. Not saying he is corrupt as well, but it remains a concern.

Did anyone see the NPA or the Hawks?
Where are they to protect South Africa when we need them?

Don’t we have enough evidence to take the ANC government to Court?

As I red trough a series of a reuters investigation “comrade-capital” how Russia is does business in Puttin era – its all remarkable similar to what we in SA is facing with the Zuma/ANC/Gupta stand. What is even more scary its that Puttin is still in charge today, and going to be for a long time. SA currently in the same boat, same situation, ….same outcome.
http://www.reuters.com/investigates/section/comrade-capitalism/

Monday came and NOTHING HAS CHANGED! Now its come to the point where we have to say SCREW civil disobedience, Big business and tax payers time for a tax revolt. Its actually very clear that despite evidence and now the exhaustion of every legal way to stop this bullshit, that a tax revolt is needed. Tax payers are committing financial crime by funding this criminal enterprise. What is happening now is exactly what happens when you have KARASITES in power, pure evil, racist rats.

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