Mr Enoch Godongwana
Chairman of the Board of Directors
Development Bank of Southern Africa
PO Box 1234
Halfway House
1685

Dear Mr Godongwana

DBSA APPROVAL OF POSEIDON WATER PROJECT GRANT/LOAN: CEO SANDILE SOKHELA SEEMS TO BE ECONOMICAL WITH THE TRUTH

1. I write to your good office regarding a grant/loan application submitted to the Development Bank of Southern Africa (DBSA) by Poseidon Pty Ltd (‘Poseidon’).

2. According to the information at my disposal, the DBSA had on 26 March 2020 approved funding for Poseidon to the tune of R50 million to conduct feasibility studies, for some kind of water project/s, in South Africa and other Southern African countries. Another R300 million is apparently still to be disbursed for the implementation of Poseidon’s project.

3. In terms of the DBSA’s March approval, Poseidon’s shareholding is as follows:

4. As I understand it, Harith General Partners invested in Crede Power and Infrastructure Investments (‘Crede’) via a capitalisation of R25 million over a four-year period to fund continued operational and other costs. Harith invested in Crede with an objective to capacitate an emerging fund manager that would complement the activities of Harith as a fund manager to the Pan African Infrastructure Development Funds (PAIDF I and II). To date Crede has drawn down R12 million of these funds.

5. My information shows that the DBSA Compliance Unit undertook Politically Exposed Persons (PEPs) checks on Poseidon’s shareholder and group companies and various directors were identified as PEPs by virtue of them being board members of various state-owned entities. Amongst others, the following is identified as a PEP:
• Mr Tshepo Mahloele who is a non-executive director in the Crede was identified as a PEP by virtu