Admin
23 Sep, 2020
Holomisa submission to the state capture commission: the real mastermind behind state capture
Deputy Chief Justice RMM Zondo Chairperson of the Judicial Commission of Inquiry into State Capture PO Box 31322 Braamfontein 2017 Per the acting Secretary of the Judicial Commission of Inquiry into State Capture Dear Sir SUBMISSION TO THE COMMISSION: THE REAL MASTERMIND BEHIND STATE CAPTURE 1. Corruption: a cancerous tumour 1.1. One of government’s major mistakes is delaying the implementation process to deal with corruption and addressing maladministration. It is evident that incompetence and corruption has collapsed and downgraded this country, thereby costing our economy billions of Rands. As a result of this undesirable culture, many municipalities have crumbled, because there are no effective structures to stop corruption, and to prevent maladministration and mismanagement of funds. 1.2. We acknowledge that measures have been taken, such as the formation of the Judicial Commission of Inquiry into State Capture (‘the Commission’) so that it may establish who has captured the state, but the process has been laborious and, in our view, not nearly far-reaching enough. 1.3. The former Public Protector, Professor Thuli Madonsela, had revealed that the Gupta family had effectively captured the state, however, as it turns out, the real architect of corruption is the ruling party itself, the African National Congress (ANC). 1.4. Accordingly, the Commission has been making the ruling party’s head honchos account for their alleged acts of corruption, but there is much more to this iceberg than what is presented to the public. Although the media and opposition parties, like the United Democratic Movement, have exposed some of the ANC and their leaders’ misdeeds, I believe most of it is kept diligently under wraps, because it might be the lurking iceberg that finally sinks the ANC Titanic. 1.5. The ANC and its leaders have misused state funds through companies like Bosasa, Chancellor House, Mohlaleng Media and Maverick State, to mention but a few. Looting from public resources has become a habitual act to fund the ANC by whatever means necessary, whether it be by paying its cadres’ exorbitant salaries or financing their election campaigns by any means necessary. 1.6. It is repulsive that this brazen looting takes place right under the noses of the authorities, whilst parliament’s oversight has not been effective either. The powers of the accounting officers have been usurped by the executive, consequently it has also affected the performance of state-owned enterprises. 1.7. The Commission’s terms of reference states that your work shall be guided by the Public Protector’s state capture report and we have noticed from the testimony that other accounts of corruption have been creeping out of the woodwork. It is therefore evident that there is a ‘big picture’ corruption that must be looked at. 1.8. Whilst much is made of Guptagate implicating former President Zuma and some other insatiable cadres, the fact that the corruption and looting at all spheres of government is to the benefit of the ANC itself, is negated. The Commission should therefore investigate the involvement of the ANC in acts of corruption, in totality. 1.9. This institutionalised corruption is not new, and it can be traced back through the previous decades. Even the Commission of inquiry into allegations of impropriety regarding Public Investment Corporation (‘PIC Commission’) quoted my testimony where I said that: “One of the most difficult tasks regarding dealing with the type of corruption that is alleged to have happened at the PIC is the sophisticated nature of the transactions. Corruption can come in two forms, legal and illegal corruption. Legal corruption occurs when the elite build a legal framework that protects corruption or manipulate existing legal framework without necessarily breaking the law.” 1.10. The PIC Commission concurred with my statement when they said in their report to the President that: “When going through the story of Harith, these words resonate. The layering of legal entities (state owned corporations, pension funds, banks, companies and trusts and partnerships etc.), when applied by financiers and corporate structure experts, can make finding the substance, and not form, of a transaction or series of transactions complex and quite perplexing. These layers also give the players in such a formation use ‘plausible deniability’ most effectively, as looking through all the conducts is challenging and time consuming.” 1.11. This designed incompetence permeates our law enforcement agencies, such as the police, the Directorate for Priority Crime Investigation (Hawks), the Special Investigating Unit (SIU) and the National Prosecuting Authority (NPA), which all have dismally failed to investigate and prosecute the reported culprits. One must be honest in one’s assessment of the competence of the state’s investigative and judicial resources. It is a given that the state lacks such competence in all respects, whilst the same is further exacerbated by means of prevalent corruption within the ranks of these institutions themselves. 1.12. The gate keepers of maladministration are the incompetent key administrative personnel who have been deliberately appointed (deployed) to accomplish the agenda of looting state resources on behalf of the ANC and, of course, to feed their own personal greed. It must be borne in mind that the ANC’s cadre deployment policy is just another form of corruption. It is called nepotism for a reason, because making appointments based on party affiliation, friendship and familial connections violate the statute books and is patently wrong. Cadre deployment deprives our civil service of talented individuals and we have thousands of young South Africans with degrees who cannot find jobs. 1.13. Epidemic levels of corruption handicaps service delivery which results in many violent protests. Not only that, prospective international investors shun South Africa because of the high levels of corruption and sadly our people are paying the price. Ultimately, corruption is destroying the gains of our freedom and patriotic South Africans have lost all hope and endlessly question the so-called measures put in place to address this untenable situation, whilst the ruling party itself perpetuates corruption in order to sustain itself. 1.14. Let us remind ourselves of what the late, former President Nelson Mandela admitted, already in 1998, about corruption in South Africa: “Unfortunately there are officials who betray their calling… this is part of the wider cancer of corruption that is undermining our efforts in all areas of society. We have learnt now that even those people with whom we fought the struggle against apartheid’s corruption can themselves become corrupted.” 1.15. The sad state of affairs is that the liberators of yesteryear have become the perpetuators of this immoral pillaging of state resources, whilst we are misdirected in our focus on the Gupta’s involvement in state capture. 1.16. The true architects of state capture are those who run government and its institutions in collusion with certain elements within the private sector. The private sector, which particularly benefits from government tenders, is represented by individuals who are shareholders in large corporations. These individuals appear to represent the private sector, but instead they use corporate fronts that merely return the loot to the ANC. These individuals also represent the corrupt interests of the ruling party in that they are either ANC stalwarts or that they are connected in one or other compromising manner to that party, politically or otherwise. 2. A Nelson Mandela Bay example: Mohlaleng Media, the ANC’s access to public funds 2.1. The purpose of this letter is to request the Commission to investigate the mechanisms used in government institutions to misuse state funds, especially at local government level. 2.2. I was recently briefed, on the matters which I raise below, by Mr Werner Wiehart, a persecuted forensic investigator formerly employed by the Nelson Mandela Bay (NMB) Metropolitan Municipality. He indicated to me that he had forwarded the information to numerous political parties and as well as the Commission (See Annexure A), but I took the liberty to meet with him last week and wish to report the matter to you formally. 2.3. The matter centres on how municipal funds have been looted by the ANC over, at least, the past fifteen years in NMB. Some information is already in the public domain including those that have been reported to the police, Hawks, NPA and the Public Protector. 2.4. The documentary evidence, which I have in my possession, convinced me that there is prima facie evidence that NMB municipal funds were looted for the ANC’s benefit, to fund its operations and to sustain itself. Questionable entities or companies (which are non-compliant with tax obligations and also lack related tax and billing clearances) and the registration of multiple enterprises simultaneously, are used as tools to achieve their dastardly goals. 2.5. Furthermore, I noted that law enforcement agencies remain actionless where corruption in the NMB municipality, more often than not, remains uninvestigated – in some cases, for more than three years. I cannot over-emphasise my concern if this is the alacrity with which this government is driving the fight against corruption, whilst little or nothing is achieved to start off with. 2.6. The widely publicised NMB Integrated Public Transport System (IPTS) scandal, in which National Treasury is implicated, is simply not being addressed, except for a single case in court. National Treasury, with particular reference the Chief Director, Mr Jan Hatting, had apparently been informed in writing during October 2012 of the large-scale looting, yet with such knowledge National Treasury continued to make payments thus feeding the large-scale looting scheme over a period of a further three years. So, nothing is happening, whilst the thieves are still trawling through personal protective equipment (PPE) tenders to rake in money to fund the ANC’s campaign for the 2021 municipal elections. 2.7. The evidence in my possession shows that, according to Mr Wiehart, there were three key players from Luthuli House involved, namely, Mr Pravin Gordhan (then Minister of Cooperative Governance and Traditional Affairs), Dr Crispian Olver (famous author of “How to Steal a City: The Battle for Nelson Mandela Bay: An Inside Account) and Mr Cheslyn Mostert (a well-known ANC operator), who presented themselves as those mandated to address the NMB municipality’s issues; a process which led to the appointment of Mr Danny Jordaan as executive mayor and Mr Johann Mettler as acting city manager. 2.8. The same process led to the suspension (with full pay) of some municipal officials and their subsequent resignations, as well as some limited dismissals. Amongst others, these suspensions and resignations were caused by the allegations that some of the employees benefited from the IPTS deal. 2.9. Prior to the aforementioned ‘Luthuli House intervention”, the opposition, the media and the people were voicing out their anger about the IPTS corruption and as a result our Mr Mongameli Bobani, an ordinary councillor at that point in time, asked the Public Protector in October 2014 to investigate the matter. The Public Protector’s Advocate Tom had apparently investigated, but the final report was never made public. The municipality had appointed legal firms which have cost the rate payer more than R100 million over three years. 2.10. The evidence shows that the hand of Dr Olver extends beyond ‘helping the municipality’, but that he also played a role in the mismanagement of funds which were channelled to the ANC through a company called Mohlaleng Media, which served exclusively as the propaganda machinery of the ruling party in NMB. In this email Dr Olver informs the acting city manager that: “Here are the two CVs from Cheslyn, together with the draft letter to be signed and sent back to him, and the rates for the resources has set out in the SLA. The start date in the letter needs to be changed to Monday Next Week.” 2.12. A “tender” for R7,5 million was awarded to Mohlaleng Media, however the municipality failed to comply with its obligations in terms of the Municipal Finance Management Act to conclude the prescribed SLA which had to be signed between the municipality and Mohlaleng Media prior to commencement of any services. In fact, on assessment of the information, it is evident that Mohlaleng Media’s bid is riddled with fraudulent information, whilst even the entire procurement process was rigged from inception in favour of Mohlaleng Media. 2.13. Mohlaleng Media operated from December 2014 to February 2016 before any so-called SLA was signed on a fraudulent basis and of course the ratepayer footed the bill. This so-called SLA is referred to as an addendum to a former SLA, which never existed, hence, fraud. The tender/contract period entailed three years, however the bid value of R7,5 million had already been exhausted within the first ten months of the contract period. 2.14. Documentary evidence reveals that Mohlaleng Media invoices merely claimed monthly “resource cost” which eventually reached the amount of more than R21 million versus the actual approved bid value of R7,5 million over three years. These invoices were specifically created in such a manner to conceal the true nature of the work/service performed by this ANC aligned communications machine. 3. Mohlaleng Media forensic investigations, the cover-up and harassment of an investigator 3.1. One of the things I noticed as I went through these files is the harassment of Mr Wiehart by the office of the then Democratic Alliance executive mayor, Mr Athol Trollip, and his chief of staff together with the then acting city manager, Mr Johann Mettler. The harassment resulted in the malicious suspension of one of the municipal auditors based on fabricated and trumped-up charges and who was eventually expelled in a collusive manner. 3.2. The quarrel stemmed from Mohlaleng Media, which was used to generate ANC campaign material for the 2016 local government elections. (see pictures on the right) 3.3. An internal investigation had been done regarding Mohlaleng Media during which the Chief Audit Executive and forensic investigator, Mr Wiehart, questioned Mr Mettler’s involvement, which clearly caused discomfort in some quarters given the backlash that followed. 3.4. After Mr Trollip became aware that Mr Mettler and Dr Olver were implicated in the internal investigation on Mohlaleng Media, he had the terms of reference that was prepared by the internal audit team changed and, in essence, had it watered down in order to intentionally and actively conceal ANC corruption using an external forensic inquiry. In fact, Mr Mettler drafted the terms of reference for the external audit, which was a clear conflict of interest. The new terms of reference did not require the investigation of Mr Mettler and Dr Olver’s involvement, which was obviously intentional and self-serving. 3.5. A certain Morrison and Vermeulen were appointed on 31 May 2017, with the new terms of reference, whilst Mr Wiehart was placed on compulsory special leave, during which he was persecuted on the basis of fabricated charges of misconduct. Morrison and Vermeulen apparently performed very poorly, and in fact showed little progress. Mr Morrison furnished a preliminary report on 6 November 2017. 3.6. Mr Morrison’s final report does not contain the factual findings that were communicated to him since May 2017, nor did he make any reference to evidence furnished to him by a whistle-blower whose disclosures are included in the documents that I have now studied. 3.7. Same resulted in the comprehensive Chief Audit Executive review queries in that Mr Morrison had simply not performed, but more concerning is the fact that he collusively acted with Mr Mettler in concealment of impropriety by Mr Mettler, Dr Olver and others. 3.8. From the evidence before me, Mr Morrison is in all probability a compromised individual who did not render the service that he was appointed and paid for. This is how entrenched corruption is in our society, that even external forensic consultants are prepared to engage in the very same cancerous agenda that society is attempting to eradicate. 3.9. According to Mr Wiehart, Mr Trollip had even gone so far as to hide documents at his residence for a period of twenty-six months after a forensic report was furnished to a Hawks investigator in March 2018. Mr Trollip may say that he was the one who mandated the investigation, yet he must be made to account for his collusive actions in protection of corrupt officials and politicians. 3.10. This entire narrative raises a concern, which is that “the system” used in NMB to loot funds through companies like Mohlaleng Media could be, and probably is, “the system” that is replicated in other municipalities (and even other spheres of government) in favour of the corrupt and looting ruling party. 4. The leaked CR17 campaign bank statements: the same names crop up 4.1. Mr Wiehart further took me into confidence and shared information with me that relates to Linkd Environmental Services of which Dr Olver is, at the moment, the sole director. This three-man operation in 2017 entered into an SLA with Ria Tenda Trust (which belongs to President Ramaphosa) to provide accounting and financial services (https://www.thepresidency.gov.za/download/file/fid/1649) This is rather odd, because Linkd Environmental Services is not a financial services or accounting firm at all. What had apparently piqued Mr Wiehart interest had been that, given what had transpired in NMB, that this might be a case of history repeating itself. 4.2. I was shown some of the various leaked bank statements, that are quite easily accessible on social media platforms and, even though they have been sealed by the court , they therefore can never enjoy protection from public scrutiny. 4.3. What can be seen from these bank statements is that a bank account was utilised to channel alleged CR17 campaign funding. I find it questionable that the principals segregated so-called day to day business operations, with alleged campaign donations, as one would expect that separate trust accounts be opened and be managed in a transparent manner. 4.4. What was however of much interest to me, given the context of this submission, was that these statements showed the involvement of the very same individuals involved in the NMB/Mohlaleng Media corruption. They are Maverick State (formerly known as Mohlaleng Media), Crispian Olver, Cheslyn Mostert, Grant Pascoe, Vukile Pokwana and some others. 4.5. I was also shocked by some of the names of the listed beneficiaries, where I saw that many members of the ANC received money, totalling millions of Rands, in their personal bank accounts. Although, I hold no brief for the ANC as an organisation, I am concerned about Crispian Olver and Cheslyn Mostert’s seeming endgame. Whilst on the one hand, their hands may loom large in the corruption that has been taking place in NMB and on the other hand, Dr Olver’s company is alleged to have distributed millions of Rands to ANC members. There seems to be a strange disconnect between those actions. 4.6. That said, my concern is that, from where exactly did the funding in Dr Olver’s company bank account originate. On review of the deposits, it is evident that these origins are not vested in well-known and/or credible corporate resources from the private sector. Considering how Mohlaleng Media was used to fund and sustain the ruling party’s ever-hungry hyenas in NMB, one cannot believe that there is any legitimacy behind the so-called donor funding from private individuals or corporations. 4.7. Who are the real ‘donors’ and from where does such funding truly originate? Looking closely at the methodology used by Bosasa, and what could possibly be used by Linkd Environmental Services, one is left with unanswered questions as to who the real architects of state capture are. This is the actual question that must be considered, and investigated, by the Commission. 4.8. The innocuous words ‘donor funds’ are constantly used, whilst the biggest and most important ‘donor’ is the state through the looting of public funds. These so-called donor funds emanate directly from state contracts and government tenders and not from happy and morally complacent ANC supporters. 5. Conclusion 5.1. To verify the authenticity of the information contained in this submission, the Commission should consider conducting a preliminary investigation by engaging Mr Werner Wiehart. All the documentation I have scrutinised is available on request. 5.2. Furthermore, to aid its work, the Commission would be well advised to request the Public Protector’s report on its 2014/15 investigation of the NMB municipality’s IPTS system, as well as all the NMB corruption cases that have been reported to the police, Hawks, SIU and the NPA. 6. Parting shot: the money must be recovered from the ANC 6.1. We, at the moment, spend a lot of time talking about corruption and plumbing its depths, which is of course right. But we must also emphasise the imperative that all the moneys that have been pilfered through tender rigging, as was done with the eye-opening Bosasa shenanigans, in favour of ANC linked companies, or ANC leaders and linked individuals or the party itself, must be recuperated. 6.2. Tracing exactly into whose pocket the money went might look like an insurmountable task, and it probably will be a massive operation. But not tackling this task, would be short-changing South Africans from the moneys that should have been spent to make manifest their constitutional rights. Simple as that. 8. I remain at your disposal. Yours sincerely Mr Bantu Holomisa, MP President of the United Democratic Movement Copied to: • President of the Republic, Mr Cyril Ramaphosa • Minister of Finance, Mr Tito Mboweni • Speaker of the National Assembly, Ms Thandi Modise, for the relevant portfolio committees’ attention • NMB acting Executive Mayor, Cllr Thsonono Buyeye • NMB acting City Manager, Mr Mandla George
Admin
10 Sep, 2020
DHET: further allegations of Minister Nzimande’s political interference: appointment of SACP cronies
Dear President Ramaphosa DEPARTMENT OF HIGHER EDUCATION AND TRAINING: FURTHER ALLEGATIONS OF MINISTER NZIMANDE’S POLITICAL INTERFERENCE: APPOINTMENT OF PARTY CRONIES 1. I refer to my letters of 24 and 31 August 2020 regarding allegations of interference of the political head of the Department of Higher Education and Training (DHET), the Minister of Higher Education, Science and Technology, Dr Blade Nzimande, in departmental processes and administration, as well as the undermining of the senior departmental accounting officers. 2. Minister Nzimande’s alleged direct interference in procurement processes, such as what apparently happened with the National Student Financial Aid Scheme (NSFAS) laptop tender, clearly has disastrous consequences. This much vaunted project has flopped; everyone sits with egg on their faces and our students are left right where they started, without learning devices. NSFAS’s feeble attempt to mitigate the damage, effectively blaming a total of 150 bidders for “getting it wrong”, is almost laughable. 3. It has now come to my attention that Minister Nzimande was allegedly directly involved in twelve DHET appointments in the 2019/20 financial year that were not made in line with Public Service Regulations (PSR) and/or the Public Finance Management Act (PFMA) 1 of 1999. 4. The salaries of these twelve allegedly irregularly appointed individuals cost the taxpayer around R9,7 million a year, but once you consider the allegation that the majority of them are South African Communist Party comrades of the Minister, their appointments take another flavour and one can see why the regulations were seemingly so grossly flouted. 5. It is alleged that, in March 2020, five employees additional to the DHET establishment were appointed, but that there were no logic or justification for the creation of these posts in terms of Section 57(2) of the PSR. Apparently, the posts were not even advertised. I also understand that there was no appointment committee and no competency assessments were conducted as required by Section 67(1). Lastly, there were allegedly no vetting or checking of qualifications in terms of Section 57(3). These appointments are: 6. Another alleged appointment where the Minister had a hand in, is that of a 12-month contract of a Deputy Director-General Planning, Policy and Training, whilst this post already existed in the department establishment and it was vacant. The story with this appointment is the same as with the previous five; none of the PSR prescriptions were adhered to. 7. Two staff members were allegedly headhunted, whilst this is only allowed in terms of the DHET Recruitment and Selection Policy under certain circumstances as described in Section 2.1.6. For some reasons, apparently known only to the Minister, they were both headhunted after only one failed advertisement and the process was not conducted by a recruitment agency. Also, apparently, no verification of their qualifications has been done; they are: 8. The last four instances where the Minister apparently had a hand in are listed below, and as I understand it, there is no evidence on file, that indicates that their qualifications/studies and employment verifications were performed prior to their appointment as is required by Section 67(9a) of the PSR. 9. Much as the blustering rationalisations and irritable explanations come from the Minister, no amount of spin-doctoring can camouflage the dysfunction within the DHET, the Sector Education and Training Authorities (SETAs) and NSFAS. 10. Given the information that you have, I am interested to know what actions you have taken, or plan to take, to address these serious allegations against Minister Nzimande? Have you, at all, considered the United Democratic Movement’s call to suspend him? If not, why not? 11. Lastly, in the interest of setting the record straight, I also refer you to Minister Nzimande’s use of a ministerial briefing to strike at me and his use of a manipulative lie when he said I have an interest in doing business with his department. I wonder how he justifies conscientiously executing his oath of office if a lie is so easily told using a government platform. I wish to place on record that I am not the businessman he disparaged me to be, and that I have no interests, nor have I ever had, in any companies that do business with government and/or any of its entities. I have, in an effort to clear this up with the Honourable Minister, gone to the extent of offering to engage him on this topic on any live radio or television platform of his choice, but the response from his corner has, thus far, been mute. Yours sincerely Mr Bantu Holomisa, MP President of the United Democratic Movement
Admin
31 Aug, 2020
PSETA: Minister Nzimande’s alleged manipulation and political interference in the appointments of the board, chairperson and CEO
Dear Mr President PSETA: MINISTER NZIMANDE’S ALLEGED MANIPULATION AND POLITICAL INTERFERENCE IN THE APPOINTMENTS OF THE BOARD, CHAIRPERSON AND CEO 1. I refer to my letter to you, dated 24 August 2020, regarding the alleged direct interference of the political head of the Department of Higher Education and Training (DHET), the Minister of Higher Education, Science and Technology, Dr Blade Nzimande, in that department’s administration. Although I have not received a formal acknowledgement of receipt, the Presidency’s automated stock-email response, indicates that you are in receipt thereof. 2. I would like to bring to your attention further information I received pertaining to the Minister’s conduct, in what appears to be interference and manipulation of the administrative process leading to the appointment of the board and chairperson of the Public Service Sector Education and Training Authority (PSETA) as well as the chief executive officer (CEO). 3. Appointment of PSETA board 3.1. The fact that Minister Nzimande twice advertised, at the end of 2019 and the beginning of 2020, the call for appointments to the Sector Education and Training Authority (SETA) boards is a fact. His unexplained reasoning for doing so is, however, open to criticism for several reasons. 3.2. Regarding the 2019-round, I am told that the PSETA employed a selection process that considered merit, continuity, and the requirements of stakeholder representation. Its recommendations were forwarded to the DHET for approval. Yet, it is alleged that the Minister did not make appointments for reasons known only to him, but rather directed for the process to be re-opened. This came as a surprise to PSETA, as I suspect other SETAs, since they had already gone through their long-used process with which they are familiar. 3.3. It must be noted that PSETA apparently did not receive any new nominations during the second round of a request for nominations. This meant that recommendations made to the Minister in 2019 were relevant for appointment. It must be noted that a nomination of a certain Mr Thulani Tshefuta was apparently received during the initial nominations for board appointment but was rejected as he did not meet the requirements. The relevance of this specific allegation will become apparent later in this letter and the Minister must explain this phenomenon. 3.4. PSETA recommended a full roster of six names allocated to organised labour representatives, yet the Minister for some odd reason, appointed five, one of whom did not receive an appointment letter, thus leaving the two existing vacancies. The Minister, again without explaining himself, only made two of PSETA’s recommended reappointments. 3.5. There are two persons, namely Mr Lewis Nzimande (community organisations’ representative) and Ms Linda Dube (organised employers’ representative), who the Minister has seemingly unilaterally appointed. PSETA apparently has no records, such as curriculum vitae and the background check, ordinarily undertaken by Managed Integrity Evaluation (MIE), on file. These documents are crucial for audit purposes. 3.6. The directive by the Minister for re-advertisement without providing reasons and the subsequent appointment of board members who were not recommended nor nominated through PSETA processes is indicative of an abuse of power and manipulation of a regulated process by Minister Nzimande. 3.7. The critical question here is, was this entire exercise merely an attempt to satisfy compliance, whilst the Minister had his own agenda? 3.8. Furthermore, the Minister’s “double advertising” imposed time pressures, which resulted in the newly appointed board being unprepared and they allegedly fell prey to the CEO, Ms Bontle Lerumo, causing them to make decisions before they received a hand-over report and induction, and before they could familiarise themselves with the organisation and previous board resolutions. This is a dangerous set of circumstances, but when one considers the allegation that Ms Lerumo is a confederate of the Minister and Mr Mabuza Ngubane (the Director SETA Performance Management whom I referred to in my previous letter), matters take a shadier turn. 4. Appointment of PSETA chairperson 4.1. Regulation 14(2) of the “Standard Constitution of SETA regulations associated with the Skills Development Act 26 of 2011” was amended in 2017, ironically by Minister Nzimande himself, to allow for SETA board chairpersons to serve two terms of office. 4.2. The motivation had been to ensure continuity and organisational stability. I therefore suspect that all the SETAs were stunned when the Minister directed the advertising of the chairpersonships in late 2019. For reasons known only to the Minister this call was reopened in early 2020. 4.3. The Minister, in essence, unilaterally limited the former PSETA chairperson’s service to one term, this despite the spirit of the aforementioned amendment. I however found it extremely disturbing that the Minister, also for reasons known only to him, decided to appoint Mr Thulani Tshefuta (to whom I referred in Paragraph 3.3) as PSETA board chairperson. It is surprising that he emerged as the chairperson of the board when he did not meet the requirements for the board. 5. Appointment of PSETA CEO 5.1. As I understand it, the appointment of CEOs is in line with the SETAs’ five-year licencing period and that the SETAs’ executive committees and boards (assisted by corporate services) take responsibility for this process. Ms Lerumo’s contract ended on 31 March 2020 but, to ensure smooth transition, she must serve until 30 September. 5.2. This NQF Level 9 post was advertised in two Sunday newspapers and on PSETA’s website, but shortly thereafter the advert was recalled and re-placed (this time only on the website) with an erratum specifically lowering the level of academic qualifications. Why on earth was this done, if not to accommodate a certain applicant? 5.3. Shortlisting evidently took place and, Ms Lerumo, whom I hear does not possess an NQF Level 9 qualification, was amongst the top three performers recommended to the Minister possibly due to the new board’s inexperience and some irregular influence. 5.4. There is already an indication that the Minister refused the top candidate, because he did not know him/her. The initial list of recommended candidates is available, and should the appointment not be done according to this recommended list and Ms Lerumo is appointed, the Minister must be held accountable for flaunting the process in favour of his alleged collaborator. 5.5. It would also mean that the top candidate was discriminated against, because of the Minister’s personal preferences, and that the entire process is legally contestable in terms of our labour legislation. As a matter of fact, given the Minister’s reputation, there could be a wholesale legal action where these SETA CEO appointments are concerned. If the new PSETA board is confident that the process was fair and transparent, they should confidently supply you with all the relevant documentation. 6. Mr President, Minister Nzimande seems to be running DHET and the SETAs from his briefcase and in light of all the nauseating allegations against him that have risen of late, it is incumbent upon you and cabinet to intervene in the appointments of the SETA boards, chairpersons and CEO until the veracity of these allegations are established by your office. 7. This entire set of circumstances demonstrates Minister Nzimande’s seeming lack of duty of care as an executive authority in managing public resources and ensuring efficient public service. He appears to have demonstrated a high level of disregard for public service regulations, not acting in the interest of the public good and is not fit to be a minister and it is your responsibility to sort this out. Yours sincerely Mr Bantu Holomisa, MP President of the United Democratic Movement
Admin
21 Aug, 2020
UDM helps 72 tenants threatened with legal action by Eastern Cape Public Works
Honourable Premier Mabuyane IMMORAL EVICTIONS: MISTREATMENT OF ORDINARY SOUTH AFRICANS BY THE EASTERN CAPE DEPARTMENT OF PUBLIC WORKS WHICH ADMINISTERS PROPERTIES IN WHICH THEY RESIDE (MTHATHA) 1. I was recently approached by a anxious group of persons who have organised themselves under the banner of the Democratic Housing Tenants Association (DHTA) which consists of 72 tenants, all of whom reside in properties, in Mthatha, administered by the Eastern Cape Department of Public Works and Infrastructure (DPWI) and the Eastern Cape Development Corporation (ECDC). 2. I understand that many of the aforementioned tenants have occupied these properties for a minimum of ten years, and up to 35 years in some cases. It is alleged that, since 1994, these buildings have not been maintained by the DPWI/ECDC, aside from the repairs the tenants had done at their own expense. By all accounts this seems to be true. 3. Numerous meetings with the DPWI, as far back as 2001, have apparently taken place where discussions were held regarding the opportunity for the tenants to purchase the houses they have been occupying (and paying rent for) for so many years. Seemingly, despite various DPWI commitments, none of the problems were addressed. 4. I have been informed that discussions around the purchasing of these properties with your special advisor, Mr Zandisile Qupe, on 30 June 2019, who undertook to find speedy resolution to the matter, was for naught as these tenants out of the blue received notices of motion of eviction proceedings in early July 2020. Worse still is that this unnecessary and unconscionable legal action is happening at a time of so much insecurity and fear due to the Coronavirus pandemic. 5. DHTA requested a meeting with your Public Works MEC, Mr Babalo Madikizela, which took place on 25 June 2020. Apparently, although departmental officials had rightfully been present, for some inexplicable reason, the African National Congress (ANC) OR Tambo Regional Secretary and members of the ANC Youth League, were also in attendance and the objections to their presence were ignored. Apparently, no resolution had been found at the end of that meeting and Public Works MEC Madikizela had also instructed the departmental officials to engage with DHTA within two weeks of that meeting, which has to date not occurred. 6. This story is rife with allegations of years’ long mistreatment of South Africans at the hand of the Eastern Cape government, whilst this community did their utmost to find a mutually beneficial recourse in the matter. The fact that it now also seems to be laced with politics is totally unacceptable and should be investigated. 7. I therefore now propose that you immediately involve the national Department of Public Works in the matter to assure some degree of impartiality and lack of prejudice towards ordinary South Africans in a time where their lives are already adversely impacted by the Covid-19 pandemic. 8. I attach the letter I received from the complainants for your assistance and I look forward to your speedy response, as this is an urgent matter due to the threat of legal action. Yours sincerely Mr Bantu Holomisa, MP President of the United Democratic Movement Copied to: Minister of Public Works and Infrastructure, Ms P De Lille The Democratic Housing Tenants Association
Admin
20 Jul, 2020
Alleged looting of state resources, through the DBSA, by some of the same people who have been fingered in the Public Investment Corporation investigation
Mr CM Ramaphosa President of the Republic of South Africa Private Bag X1000 Pretoria 0001 Dear Mr President RE: Alleged looting of state resources, through the DBSA, by some of the same people who have been fingered in the Public Investment Corporation investigation 1. I wrote to you a little more than a month ago, on 17 June 2020, regarding my grave concerns over the apparent looting of state resources by some of the very same individuals who were found to have had an enhanced ability to secure easy access to Public Investment Corporation (PIC) funds, as well as some new characters, who have now seemingly set their sights on looting from the Development Bank of Southern Africa (DBSA). 2. In the 17 June-letter I also suggested that Treasury intervene and cause the DBSA to urgently stop the Crede Power and Infrastructure funding, via a vehicle called Poseidon, and that investigation be made into the allegations of impropriety. 3. Much water has flown under this bridge and, since then, the individuals who I had named in my letter, first tried to bully me via a lawyers’ letter and had ultimately run to the courts in an attempt to, what appears to me, intimidate and of course gag me. Their first volley failed as the court removed their application from the urgent court roll and they were ordered to pay the wasted costs occasioned by the set-down on the urgent court roll. 4. I had also made a Promotion of Access to Information Act (PAIA) application to the DBSA to obtain all the information pertaining to the Crede Power and Infrastructure/Poseidon water project but was unsuccessful because the DBSA relied on frivolous technicalities to refuse my request. I am of the view that this was a gambit to play for time. Speculating about the real reason why they acted in this manner, leads me to think someone was up to no good. 5. The DBSA’s chief executive officer and managing director, Mr Patrick Dlamini, had also decided to engage with me in letter-warfare, which I believed to be yet another effort to intimidate me. But, knowing what I know now, I suspect it might also have been a play for time to cook the books. 6. I was quite disturbed, last week, to learn that there had been alleged interference with the DBSA’s computer systems, where electronic documentation and records on the Crede Power and Infrastructure/Poseidon water project had been made to vanish at the time of my PAIA application, thus frustrating a good cause, whilst aiding and abetting those suspected of ill deeds. 7. Up to now, there have been far too many coincidences, that point to a massive cover-up. For instance, Crede Power and Infrastructure’s website being unavailable, just after my complaint to you and a threat from some lawyers, when I wanted to double-check my researched information. Then the DBSA spitefully refused my PAIA application and Mr Dlamini inadvertently confirmed, in writing, that the information at my disposal was accurate. Now we have an alleged sudden clean-up and wipe-out of critical information on the DBSA’s funding of the Crede Power and Infrastructure/Poseidon water project. 8. This brings another serious matter into focus and that is whether there are any other current funding deals at the DBSA, involving the same parties, of which we are unaware and whilst the grass is growing underneath your feet, evidence of such are also disappearing. 9. Given the information I have imparted to you in this writ, I wonder whether you and/or Minister of Finance Tito Mboweni can rely on any information provided to you by, who in my view are, potentially discredited DBSA executives. 10. I submit to you that there is a clear need for an independent forensic investigation to review the entire matter and in particular the alleged tampering with the DBSA’s computer records. Forensic investigators will be able to validate which files and what information have been tampered with and/or have been deleted. Computer experts will also be able to ensure that any restored information is legitimate. 11. The other matter that I had raised in my 17-June letter had been that PIC board member, Ms Irene Charnley, had allegedly received a USD 20 million loan from the DBSA and that she has yet to pay that back. It might behove you to also have investigation made of the DBSA’s loan practices and whether those loans are serviced, and who the culprits are that do not pay their instalments as per the agreement with the bank and why. 12. I remain at your disposal to discuss these matters and I reiterate my request that a forensic audit is urgently needed to get to the bottom of what seems to be the machinations of the greedy and the looting of state resources. Yours sincerely Mr Bantu Holomisa, MP President of the United Democratic Movement Copied to: Minister of Finance, Mr Tito Mboweni DBSA Chairperson, Mr Enoch Godongwana DBSA Chief Executive Officer and Managing Director, Mr Patrick K Dlamini
Admin
17 Jul, 2020
Complaints of alleged racism, nepotism and corruption at the NPA, Bantu Holomisa writes to Shamila Batohi
Advocate Shamila Batohi National Director of Public Prosecutions Private Bag X752 Pretoria 0001 Dear Advocate Batohi Being sent from pillar to post: serious staff frustrations within the National Prosecuting Authority of South Africa in the Eastern Cape, Kwazulu-Natal, and Western Cape offices in particular 1. I was recently approached by a group of concerned prosecutors who work mainly in the Eastern Cape, KwaZulu-Natal and Western Cape offices of the National Prosecuting Authority of South Africa (NPA), though I understand the frustrations they brought to my attention prevail in other provinces. They have petitioned my assistance in their plight to be heard as their frustrations are festering into resentment and anger. 2. I read with interest your comments during your “listening tour/staff engagement” at the start of this year and in particular the results of a staff survey where you listed, lack of promotion, no career growth, high staff vacancies, low staff morale, and budgetary constraints as some of the complaints that staff had registered. The complaints now on my desk echo this list to a great extent. 3. From my reading of the group of concerned prosecutors’ complaints, the aforementioned matters are particularly true for prosecutors who work in rural South Africa and who depend on greater resources to get about and do their jobs. 4. However, the group of concerned prosecutors have additional complaints to those already mentioned and have made allegations of nepotism and racism. The persistence of claims of racism in the NPA over the years is worrying and clearly the solution has not yet been found. 5. I have been made to understand that the NPA has appointed a person to investigate the allegations of racism and nepotism within the organisation, but that this investigator is either too busy to attend to new complaints and/or refuses to accept such. I am interested to know what this investigator’s scope of operation is and whether it is true that some complaints are not being accepted and/or attended to and if so, why. 6. Amongst the worst of the claims made by the group of concerned prosecutors are that there are several people in senior positions within the NPA’s provincial structures who have been tainted by allegations of corruption and, whilst complaints have been lodged against them, nothing has seemingly been done to address those complaints. 7. I also refer you to your memo dated 13 December 2019, but signed on 6 January 2020, wherein the group of concerned prosecutors’ appeals for intervention was shot down, as their union had not yet been recognised by the Public Sector Coordinating Bargaining Council to represent employees in the public service. Even though this might be technically and legally correct, I find it disconcerting that you would rely on a pure technicality to, for all intents and purposes, seemingly ignore what might be serious problems within your organisation. 8. I believe what frustrates this group of concerned prosecutors the most is their feeling that their emails and letters to you, as well as meetings with you, have been for naught. They feel that they have not been properly heard nor have any of their complaints been addressed, for whatever reason, and that they are now being victimised by NPA middle management for speaking out. 9. I have also noted that your office had, in the media in late January 2020, indicated that you would be looking into the concerned prosecutors’ complaints, but judging from their contact with me, you have not yet done so. 10. I would be grateful if you would take me into your confidence regarding your views on the matters I have raised above, the plans you have made and actions you have taken to address the complaints on your desk and the progress, if any, that you have made thus far. 11. I hope to hear from you soon. Yours sincerely Mr Bantu Holomisa, MP UDM President
Admin
13 Jul, 2020
DBSA’s strange treatment of the allegations of corruption regarding the Poseidon water project and its funding
Mr Patrick K Dlamini Chief Executive Officer and Managing Director Development Bank of Southern Africa PO Box 1234 Halfway House 1685 Dear Mr Dlamini Development Bank of Southern Africa’s strange treatment of the allegations of corruption regarding the Poseidon water project and its funding 1. I respond to your letter of 10 July 2020, which the Development Bank of Southern Africa (DBSA) Company Secretary, Ms Bathobile Sowazi, sent at 22:57 on a Friday. Looking back at other emails, after hours correspondence seems to be the norm at the DBSA and one can but speculate as to the reasons why. 2. In all your letters to me regarding the Poseidon water project you sound defensive and blustering regarding the DBSA’s handling of this funding deal. Why would you cover your wickets with such excessive vigour and choose to cast aspersions on my bona fides? 3. You stated that I have “…publicly disclosed confidential information and documents belonging to the DBSA’s clients…”, what I interpret this to mean is that the information at my disposal is true and accurate. You are, in fact, right to be worried that the DBSA’s credibility might be undermined, as it, and/or some of its leadership, are seemingly engaged in activities they do not want exposed. 4. It is interesting that you decided to pre-empt President Ramaphosa’s response to my request for an investigation of the Poseidon deal. Now that you have positioned yourself as the president of this country, will you please tell the nation how the following people, as per your below document, are involved in the Poseidon transaction and how they directly and/or indirectly benefit from this deal. 5. This list of politically exposed persons (PEPs) in Poseidon’s group structure is a veritable Who’s Who of directors of public owned entities. It raises questions about the comprehensiveness and effectiveness of the DBSA’s due diligence processes in terms of corporate governance as defined in the Companies Act, No. 71 of 2008 and its 2011 amendment, the Public Finance Management Act, No. 1 of 1999 and the fourth revision of the King Report on Corporate Governance. 6. Item number 4 of the above document (in the picture), refers to the Public Investment Corporation (PIC) directors who were identified as PEPs in this deal by virtue of being board members of a state-owned entity. Who exactly are these PIC board members your document refers to i.e. the board members at the time of the submission of the application or those at the time of its approval? Either way it would be helpful if you could explain their involvement in this private, for-profit matter and whether the DBSA condones this kind of association. 7. It is confounding that your very own document states that Dr Renosi Mokate is a PEP by virtue of her being a trustee of the Harith Holdings Employee Trust and the board chairperson of the Government Employees Pension Fund (GEPF), yet she made a bare denial of any connection to Poseidon in her submission to the court in her defamation case against me and the United Democratic Movement. So, the questions the public and/or a judge might ask you are: Who added her name to this document, and why? Also, from where did you obtain this information? 8. Ultimately you are to be thanked for confirming the veracity of the above information. We will however ask those individuals (including the GEPF chairperson) who ran to court, to explain why their names appear on a DBSA document pertaining to the Crede Power and Infrastructure Investments/Poseidon funding application. 9. Our letter to the President is clear in terms of what we want to be investigated. Part of that would be that you seemingly misled the DBSA’s board by allegedly recommending that this project be funded despite the above information being at your disposal. Worse still is that some of these PEPs have been fingered in the Commission of inquiry into allegations of impropriety regarding the Public Investment Corporation. Why are you promoting and protecting these people? 10. You have placed on record that “On or about June 2019 the DBSA received an application from Crede Power and Infrastructure Investments…”. Mr Jabu Moleketi left as DBSA Chairperson in December 2018. What these two facts mean is that the Crede Power and Infrastructure Investments/Poseidon funding application was submitted to the DBSA within six months of his having left the DBSA, which I understand is in contravention of the DBSA’s twelve month “cooling off” period for directors who have left the Bank. The public might ask you whether these facts were disclosed to the Board when it considered and approved the funding application? 11. Your artless attempt to threaten me with “the law” where it pertains to whistleblowing, begs the question: “Is it not nice and convenient that the DBSA decision-makers, in the Poseidon water project deal, can hide behind this country’s laws?” This might exactly be the reason why there was no other way of exposing the alleged corruption in the way that we have. 12. The DBSA’s refusal of my Promotion of Access to Information Act 2 of 2000 request, because of technicalities, is utter drivel. You and Ms Kim Sanderson (DBSA Deputy Information Officer) who wrote to me, know exactly to which deal I was referring and what information I had asked for. Such seemingly spiteful delaying tactics could be interpreted as the DBSA playing for time to “cook the books”. If I were in your boots, I would be preparing to explain this mess in court. 13. Your 10 July 2020 letter smacks of a panicked response to being confronted by facts that are not to your and your colleagues’ liking, least of all to the liking of the PEPs involved in Poseidon. 14. I walk away from all your correspondence, thus far, with a very repulsive taste in my mouth and the perturbing feeling that you are not acting in the best interest of the people of this country. Yours sincerely Mr Bantu Holomisa, MP UDM President Copied to: Minister of Finance, Mr Tito Mboweni DBSA Chairperson, Mr Enoch Godongwana DBSA Company Secretary, Ms Bathobile Sowazi DBSA Deputy Information Officer, Ms Kim Sanderson Mabuza Attorneys, Attorney Eric Mabuza
Admin
09 Jul, 2020
Call on the IEC to host a meeting for political parties to debate South Africa’s democratic ideals, electoral reform and the impact of Covid-19 on elections
Mr Glen Mashinini Chair of the Electoral Commission Private Bag X112 Centurion 0046 Dear Mr Mashinini Call on the IEC to host a meeting for political parties to debate South Africa’s democratic ideals, electoral reform and the impact of Covid-19 on elections 1. The United Democratic Movement (UDM) has had in-depth internal discussions around two critical matters that have already impacted on, and will still impact, the way that South Africa practices democracy and runs elections. One is of course the Constitutional Court’s judgment that the Electoral Act 73 of 1998 (‘the Electoral Act’) is unconstitutional in so far as it requires candidates to contest national and provincial elections only as members of political parties and, the other, the impact that Covid-19 is having, and will have, on future elections. 2. We have also noted the opinions of some political parties on electoral reform, as well as that of the Independent Electoral Commission (IEC), expressed in the media. 3. One such item is the notion of combining national, provincial and local government elections, especially given the impact of the Covid-19 pandemic on the IEC’s preparations for the 2021 Local Government Elections and what an election would look like – in a little more than a year from now – with the uncertainty around our continued journey with the Coronavirus. Combining our elections will require constitutional changes and the practicality of somehow altering the five-year election cycles to achieve synchronicity, and the impact it will have on democracy, must be carefully considered. 4. The UDM has long been of the view that changes to our electoral system is indeed needed and the opportunity has presented itself, no matter how it was precipitated, to have earnest debate around public representatives’ accountability to the electorate and whether South Africa’s purely proportional system is the right tool to ensure that. 5. But to our minds, the most important change necessary is the need to have voters directly elect their president of the country, as is the case in many established democracies across the globe. The UDM believes that South Africa’s president should be directly elected by her people, and be held accountable to them, instead of the around 3,000 delegates at a party congress choosing a party president to be foisted onto an entire nation. 6. It is necessary to have a structured debate around these issues and it is imperative that we, as political parties, must formally engage as primary stakeholders of the IEC and South Africa’s democratic processes. 7. Given the complexities of the matters on the table, we must start the debate now in order to (if there is consensus that changes to our electoral systems are necessary and will achieve greater democracy) amend the Constitution, the Electoral Act and the Municipal Electoral Act 27 of 2000 and the attending regulations. 8. The UDM therefore calls on the Electoral Commission to urgently host a formal debate, maybe in a virtual hybrid format, where political parties can officially table their policies on the matter of electoral reform so that we can chart the way forward. Time is of the essence. Yours sincerely Mr Bantu Holomisa, MP UDM President Copied to the leaders of all political parties and the people of South Africa
Admin
01 Jul, 2020
Capturing of the administration of NSFAS
Advocate Busisiwe Mkhwebane The Public Protector South Africa Private Bag X677 Pretoria 0001 Dear Advocate Mkhwebane COMPLAINT: CAPTURING OF THE ADMINISTRATION OF THE NATIONAL STUDENT FINANCIAL AID SCHEME – ALLEGED NEPOTISM AT THE HIGHEST LEVELS, STAFF VICTIMISATION AND PURGE, CORRUPTION AND MALADMINISTRATION As you might be aware, the National Student Financial Aid Scheme (NSFAS) was placed under administration by former Minister of Higher Education and Training Naledi Pandor after its failure to pay out bursaries had led to student protests. I have been approached by concerned NSFAS employees for assistance, and the seriousness of the allegations that are being made lead me to think that this process has been “captured”. There are allegations of nepotism, victimisation and purging of staff, racism, corruption, general maladministration, mismanagement by Dr Randall Carolissen (NSFAS Administrator) in particular, as well as a general collapse of corporate governance at NSFAS. Worst of all is the allegation that the Minister of Higher Education, Science and Technology, Dr Blade Nzimande (who is supposed to oversee this process and is the custodian of good governance) is aware of some of these issues and are seemingly ignoring them and worse still, is involved in nepotism with the appointment of those loyal to him to key NSFAS (and other) positions. I hereby lodge a complaint in terms of Section 6(1) (A) of the Public Protector Act, 1994 and request you to investigate these allegations. To assist you at this point in time, please find attached to this email: 1. Annexure A (98KB) – a document that details various allegations of poor performance, unscrupulous procurement, compromised internal auditing, failures of NSFAS’s IT system, maladministration, racism and compromised oversight. 2. Annexure B (85KB) – a list of key questions regarding allegations against Dr Carolissen in terms of his role in various matters, such as nepotism and maladministration (amongst others, how much of the cumulative irregular expenditure of R7.5 billion NSFAS declared in the 2018/19 financial year was spent under his watch?). 3. Annexure C – a list of staffers and former staffers who have allegedly been victimised, targeted and or purged by Dr Carolissen (not posted due to sensitivity of the information). 4. Annexure D1 and D2 – list of persons allegedly appointed by virtue of their links to Dr Carolissen and other key players. (not posted due to sensitivity of the information) 5. Annexures E and F – allegations around a list of key persons appointed at NSFAS, and other bodies, by virtue of their personal links to Minister Nzimande. (not posted due to sensitivity of the information) I have further and more detailed information in my possession, which I am more than willing to share should you decide to investigate, as it is of paramount importance (at this stage) to protect the identities of the whistle-blowers to avoid further victimisation. I am at your disposal and look forward to engaging with you. Yours faithfully Mr Bantu Holomisa, MP President of the United Democratic Movement
Admin
23 Jun, 2020
DBSA approval of Poseidon water project grant/loan: CEO Sandile Sokhela seems to be economical with the truth
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 virtue of him being a former board member of Telkom SA in 2008; his PEP status is inactive as of 2008. Mr Mahloele is the CEO of HGP and sits on Crede’s board. 6. As you are aware, I recently wrote to the President of the Republic (letter attached for your ease of reference) to register my concern over what seems to be another attempt to loot state resources, as had occurred at the Public Investment Corporation, but this time at your organisation, using Poseidon as a vehicle. I had sourced some of my information from their websites, but I have since discovered that both Crede Capital Partners and Crede Power and Infrastructure Investments’ websites (https://credecapital.co.za/ and http://credepower.co.za/ respectively) have been discontinued/are no longer visible. Would one be wrong in surmising that someone is trying to cover their tracks? 7. In particular, during my initial search, Crede Power and Infrastructure Investments’ website proudly shared that Mr Tshepo Mahloele was its director, but I was recently confronted with a letter from Crede/Poseidon’s lawyers (also attached) categorically stating that Mr Mahloele has never been its director. What is however extremely odd is that, Mr Mahloele himself, in his written submission on 15 April 2019, to the Judicial Commission of Inquiry into allegations of impropriety at the Public Investment Corporation (‘Mpati Commission’) declared in Paragraph 3.3 that: “In addition to the positions already referred to, I also serve on the boards of NOVO Energy, Anergi, Lanseria International Airport, Rainfin, 4 Africa Exchange, Crede Power & Infrastructure Investments and Dark Fibre Africa, amongst others.” One is forced to ask whether Mr Mahloele had then lied to the Mpati Commission, or whether Mr Sandile Sokhela, Crede’s Chief Executive Officer, is lying now (or has lied in his grant/loan application to the DBSA). Someone is definitely lying, and one is worried that public entities, such as the DBSA, are doing business with people of this ilk. 8. I have instructed my attorney, Mr Eric T Mabuza, of Mabuza Attorneys, to submit a Promotion of Access to Information Act (PAIA) application to the DBSA to obtain the attending documentation of Poseidon’s DBSA loan/funding application e.g. the application itself, information on the DBSA’s due diligence, relevant minutes of DBSA meetings, contracts, and any other pertinent information. I implore you to cooperate with our PAIA application, not only because it is to the DBSA’s advantage, but also because it is in the public’s interest that the truth comes to light. 9. Given that the DBSA board has already approved Poseidon’s grant/loan it might be advisable that you immediately suspend any disbursement/s to that company until the matter is satisfactorily addressed by the President and/or the courts. I am at your disposal and look forward to engaging with you. Yours sincerely Mr Bantu Holomisa, MP UDM President Copied to: President of the Republic of South Africa, Mr Cyril Ramaphosa Minister of Finance, Mr Tito Mboweni PIC Chairperson, Dr Reuel Khoza DBSA Company Secretary, Ms Bathobile Sowazi Mabuza Attorneys, Attorney ET Mabuza
Admin
17 Jun, 2020
DBSA: looting of state resources by some of the same people involved in the Public Investment Corporation saga
Dear Mr President DBSA: looting of state resources by some of the same people involved in the Public Investment Corporation saga 1. I write to you with grave concern over the apparent looting of state resources by some of the very same individuals that were found to have had enhanced ability to secure easy access to Public Investment Corporation (PIC) funds. We seem to have the same style of legal corruption, but this time it is at the Development Bank of Southern Africa (DBSA). A curious feature, however, is the emergence of the involvement of the Chairperson of the Government Employees Pension Fund (GEPF). Elitist people seem to behave like locusts that hop from one source of easy funding to the next; voraciously consuming every opportunity they can generate through whatever means. Once they have depleted one source, they effortlessly jump to the next one with the same agenda – enriching themselves at any cost and patting themselves on the back for being such clever operators. 2. I believe your appointment of the Judicial Commission of Inquiry into allegations of impropriety at the PIC, under the leadership of the Honourable Justice Lex Mpati, (‘the Mpati Commission’), was, amongst other concerns, exactly to look into this kind of behaviour that now seems to rear its ugly head at the DBSA. 3. I wish to refer you to an observation made by, and a salient finding of, the Mpati Commission regarding a company called Harith. The Mpati Commission, on page 419, of its report to President Ramaphosa, directly quotes part of my submission, i.e.: “One of the most difficult tasks regarding dealing with the type of corruption that is alleged to have happened at the PIC is the sophisticated nature of the transactions. Corruption can come in two forms, legal and illegal corruption. Legal corruption occurs when the elite build a legal framework that protects corruption or manipulate existing legal framework without necessarily breaking the law.’ The Mpati Commission continued saying that: “When going through the story of Harith, these words resonate.” In paragraph 62 on page 434 the Mpati Commission also stated that: “Harith’s conduct was driven by financial reward to its employees and management, and not by returns to the GEPF. In essence, the PIC initiative, created in keeping with government vision and PIC funding was ‘privatised’ such that those PIC employees and office bearers originally appointed to establish the various Funds and companies reaped rich rewards.” Clearly there is enough motivation to have, at the very least, immediately suspended Harith’s management of any and all of PIC/GEPF funds and launched further investigation. Has government taken any action to protect the PIC/GEPF from these self-enriching individuals? If not, why not? 4. To make matters worse, this recipe for plundering state resources is seemingly being replicated at the DBSA with the very same people involved. This time, at the face of it, with a new vehicle called Poseidon Pty Ltd, of which the shareholding is as follows: On a side note, according to Crede Capital Partners’ website, their team has managed two PIC projects i.e. “Univen” (R920 million) and the “Oceans Hotel Property Development” (R600 million). The Mpati Commission’s view that where Harith was concerned, “…the approach taken provided easy access to PIC funds, influence and including an enhanced ability to secure additional investment…”, it is therefore of interest to know that another company with close ties to Harith Group Chief Executive Officer, Tshepo Mahloele, had access to PIC contracts. 5. The DBSA has recently funded 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. 6. The Mpati Commission also said in its report on page 436, paragraph 67, that: “The Board of the PIC should examine whether the role played by either Mr [Jabu] Moleketi and Mr Mahloele breached their fiduciary duties or the fit and proper test required of a director in terms of the Companies Act.” With this knowledge in mind, please take note that Mr Moleketi (a former DBSA board chairperson) and Mr Mahloele (former head of the DBSA’s Private Sector Investment Arm) are both directors of Poseidon. Mr President, history is repeating; Mr Moleketi had fulfilled the highest leadership roles at both the PIC and Harith. Mr Mahloele, in turn, had been internally transferred (as the Mpati Commission described it) as head of the Pan African Infrastructure Development Fund (PAIDF) to Chief Executive Officer of Harith. The following persons are also Poseidon directors: 6.1. Dr Renosi Mokate (GEPF Board Chairperson), 6.2. Ms Lungile “Zee” Cele (independent non-executive director of Harith General Partners and a former board member of Eskom Holdings SOC Ltd), 6.3. Mr Roshan Morar (former PIC Deputy Chairperson, former Chairman of the South African National Roads Agency SOC Ltd, chairman of Ithala Development Finance Corporation (Ltd) and non-executive director of Harith General Partners) and 6.4. Ms Motseoa Alix-Mary Lugemwa (former Chairperson of the Gautrain Management Agency Board and non-executive director of PAIDF). This list reads like a dream-team of politically exposed persons (PEPs) who seemingly have access to public funds. It is especially worrying to find the name of Dr Renosi Mokate on this list; a scenario where a GEPF Chairperson has access to public funding using a private conduit, after having seen what happened at the PIC, is indefensible. She must be removed as GEPF Chairperson with immediate effect. It is also worth noting that Mr Roshan Morar is named and shamed in the Mpati Commission’s report regarding the Lancaster Steinhoff, Project Sierra case study. The Commission on page 41, paragraph 98, said that: “The chair of the IC [Investment Committee] was Mr Roshan Morar, a PIC non-executive director, who signed off on the IC resolution for this investment. At the same meeting, he was also appointed as a board member to L101 representing PIC’s interests which clearly indicates a conflict of interest.” 7. It would be advisable that Treasury quickly intervenes in the DBSA’s funding of Poseidon’s water project and that it immediately freezes the payment of the first tranche of R50 million, as well as the second tranche of R300 million implementation funding, until the Mpati Commission’s findings and recommendations are addressed. If the R50 million has already been disbursed, it must also be recouped in the meantime and it might be advisable to follow the paper trail to see if the money was spent for its intended purposes. 8. Another matter that I wish to address with you is that of Ms Irene Charnley and her inclusion on the PIC’s interim board. She allegedly received R1,7 billion (in today’s terms) from the PIC for her company, Smile Telecoms Limited. I wrote to Finance Minister Tito Mboweni about this matter on 3 June 2020 and have attached the letter for your ease of reference. Since writing that letter, I have heard that the PIC has written the R1,7 billion off as a bad investment. Moreover, it has come to my attention that Ms Charnley has also knocked on the DBSA’s door for funding. She received a USD 20 million loan, which she has failed to pay back. The Al Nahla Group, with whom she is partnered, is a Saudi Arabia-based company. The situation might mean the PIC and DBSA’s monies were channelled out of South Africa on purpose and someone else is smiling to the bank, because it definitely is not South African investors. We now know of two instances where Ms Charnley dipped into public funds, where the money seems to have evaporated into thin air. On what basis would a government serious about fighting corruption dispatch a person of this quality and competence to resuscitate a key public entity such as the PIC? The consequences for her actions should not have been to be rewarded, at the very least, she should be immediately removed as a member of the PIC’s interim board. Yours sincerely Mr Bantu Holomisa, MP President of the United Democratic Movement Copied to: Minister of Finance, Mr Tito Mboweni DBSA Chairperson, Mr Enoch Godongwana PIC Chairperson, Dr Reuel Khoza
Admin
04 Jun, 2020
Bantu Holomisa writes to Wesbank CEO Chris De Kock re Mr Mzukisi Ndara’s case
Dear Mr De Kock MZUKISI NDARA: NATIONAL DIRECTOR OF PUBLIC PROSECUTIONS CONFIRMS “MISREPRESENTATIONS AND CONTRAVENTION OF STATUTES” BY WESBANK The above subject matter bears reference. The first time I wrote to you was on 2 May 2018, just over two years ago, seeking justice in the form of restoration for Mr Mzukisi Ndara, and his family. Mr Ndara firmly believed that FirstRand bank was complicit in a fraudulent vehicle sale transaction in 2004 that caused him to suffer irreparable harm. Frankly, I also believed, hence I wrote to you in the manner that I did. The last of the four letters I have written to you hitherto, was written on 30 October 2019. I concluded the letter thus “I would simply urge you to take this matter seriously by engaging meaningfully and honestly to find solutions. It will not just go away instead it’s going to grow until it is entrenched in the psyche of South African society”. This will now sound prophetic given the latest developments. The National Director of Public Prosecutions (NDPP) Advocate Shamila Batohi, in a letter addressed to Mr Ndara dated 24 September 2019 (Annexure 1), places Wesbank squarely at the centre of the fifteen-year saga that has severely prejudiced an ordinary family. Mr Ndara unfortunately only received this correspondence on Friday 29 May as it was sent to his old email address. The NDPP in this letter writes: “3. Based on my analysis of the matter the fraudulent activities that are the subject of your representations, emanated out of an instalment sale agreement entered into between yourself and Wesbank. 4. Based on your statement filed with the police documentary evidential material as well as the circumstances of this matter, Wesbank and/or its employees committed a breach of contract in the form of misrepresentations and also acted in contravention of various statutes as alluded to in your reports. On the basis thereof, you are, as an aggrieved party entitled to approach courts for an appropriate relief.” These assertions by the top prosecutor in the country implicating the entity that you lead are now available for public consumption. I have been at pains over the last two years urging you to occupy moral high ground by resolving Mr Ndara’s matter. Time and time again I have been met with denials and apathy. Fundamentally in our first meeting with you in May 2018, you were adamant that the bank has done nothing wrong and in fact placed the blame squarely on Datnis Nissan dealership. The National Prosecuting Authority (NPA) correspondence points to Wesbank and its officials as the people responsible. The correspondence distils that the two contracting parties are Wesbank and Mr Ndara. No one else. In the same meeting, after Mr Ndara had taken us through the details of how the deal was concluded and what he had since discovered in hindsight, you were the voice of reason as you said to him “If it’s true what you are saying and it is accurate then I must sympathise with you because you will have been done a grave injustice”. Those words remained with me and I asked myself what you will do when Mr Ndara’s utterances prove to be true. That moment is now upon us. The NDPP, who has been exposed to the case docket, with police evidential material, various internal reports and Mr Ndara’s presentations, has now confirmed that there is documentary evidence that points to misrepresentations by Wesbank. It is now time to replace your intransigence with relevance, you need to be abreast of the mood and to confront the reality that your conduct as a corporate citizen has fallen short of what is expected. It is time to accord this ordinary citizen respect, by engaging him to find a solution by sitting around the table. I am aware that you contemplated settlement on this matter in a letter to the former Chairperson of the Standing Committee on Finance, Mr Yunus Carrim dated 17 April 2019. Paragraphs 3 and 4 of this letter (Annexure 2) read as follows: “However, your suggestion for me to meet personally with Mr Ndara in an attempt to reach some kind of confidential settlement is noted. The question of who is right or wrong in this matter is not the only issue at stake here. The other issue regards the actions that Mr Ndara, backed by the media could take to further express the anger and resentment directed at Banks based on alleged discrimination over the past number of years. On the advice of our legal team we have decided it would not be the prudent approach to personally meet with Mr Ndara in an attempt to reach a confidential settlement. As discussed, we have limited appetite to enrich the individual which does not take into account the time and effort that will be required to defend this matter in the courts and the in the private domain” Gleaning from these two paragraphs these are not the contentions of an innocent party. Gone are the vehement denials of big corporates that dismiss complains with contempt. For that matter whilst I write to you open letters that are transparent, also for public consumption, not once on the four occasions I have done so have you responded in kind. There is not a single letter where you have taken the public into your confidence regarding this matter and that of the Crusaders for Justice. There are over thirty people who have suffered similar fates to Mr Ndara whose lives are ruined because of the immorality of this bank. In all their cases, their tormentor is Wesbank. Surely we should now call time on this; it is time to do the right thing. I note, in fact, that you are amenable to a settle with Mr Ndara were it not for your legal team who needed more time to explore if there were any other seemingly unethical avenues to cause him greater harm. Notably there is again no outright denial. Paramount in your narrative in this letter is the point that “As discussed, we have limited appetite to enrich the individual”. This pregnant statement takes the cake. It says so many things all at once. In fact, I hear you loud and clear, Wesbank has turned Mr Ndara’s life upside down for over fifteen years, he has lost properties and lost all cars he had, owing to this transaction based on misrepresentations. As such, whilst you “have limited appetite to enrich the individual”, Wesbank has all the appetite to rid people of their hard-earned money and property. Wesbank has had the appetite to impoverish people as has been aptly demonstrated in this case. Will the real leaders of the First Rand Group please stand up. Your silence is deafening. Judge Buyiswa Majiki in an August 2018 judgement (Ndara and Another v Weir Investments (Pty) Ltd and Others (3180/2013) (2018) at the Grahamstown High Court set aside a 2015 judgement that was in favour of Wesbank on the basis that it was erroneously sought and granted. This has been Webank’s modus operandi, hence Mr Carrim exhorts you to settle this matter. Judge Elna Revelas presided over a hearing on 18 August 2015 with only the bank’s legal team present. There were no papers served on Mr Ndara and his attorneys. Significantly there was not even a Notice of Set-down. Strangely, Judge Revelas proceeded to dismiss Mr Ndara’s leave to appeal with costs. When the bank’s representatives appeared before Judge Majiki in 2018; they conceded that they did not follow any of the applicable High Court Rules. The bank appealed Judge Majiki’s judgement and it was dismissed with costs around March 2019. A month or so later you wrote this letter to Mr Carrim. Quo Vadis? Whilst I applaud the NDPP, unlike Advocates Naicker, Goosen, Mrwebi and Govender she was much more forthcoming on what has really transpired in this David and Goliath battle. Advocate Batohi was prepared to call out the culprits – Wesbank. However whilst she identified the unethical and immoral conduct on your part, she did not have the courage to act (as the law allows her) in the interests of good governance, for justice to be served. That is really disappointing. 2) Whenever any manager, agent or employee of any credit grantor does or omits to do any act which it would be an offence under this Act for the credit grantor to do or omit to do, such manager, agent or employee shall be liable to be convicted and sentenced in respect thereof as if he were the credit grantor. The above extract is taken directly from the Credit Agreements Act 1980, that was in place when Mr Ndara’s credit agreement was concluded. In my book, “shall be liable to be convicted and sentenced”, refers to a criminal prosecution if one were to have been found to have contravened this statute. Furthermore, Advocate Tenjwa Sellem, who oversaw a seven-month investigation at the NPA on this matter, took a decision to prosecute and took warning statements. On receiving a copy of NDPP’s letter his response was “If Mr Ndara on purchasing a vehicle through Wesbank, had provided a false representations concerning his salary advice and place of domicile, was he not going to face criminal charges of FRAUD, the answer is in the affirmative”. He went on to say, in the investigation, evidence points to the following issues that anchor this matter • Wesbank delivered to Mr Ndara a USED Nissan X-Trail 2.2 Diesel, Manual with 6700 kilometres travelled valued at R270000-00 Then they processed and invoiced him for a BRAND NEW Nissan X-Trail 2.5 Automatic valued at R298000-00. • Wesbank processed and approved the sale agreement, relying on a fraudulent Offer to Purchase (OTP) that Mr Ndara had never had sight of nor signed. The OTP provided for him to sign firstly to tender his Nissan Almera as a trade in, and secondly to sign making the Offer to Purchase the Nissan X-Trail described therein. Instead Mr Jaen Van Aardt – the Dealer Principal signed on the document accepting an offer that had not been made. Despite the invalidity of the document Wesbank processed and concluded the deal as if it was above board. • Furthermore Wesbank approved fictitious extras to the value of R33000-00 that do not exist. These were insurance products as opposed to physical material enhancement in the vehicle that would have been requested by Mr Ndara. So in all the vehicle that he would have paid R270000-00 for, he was invoiced for R333000-00. • The Dealer Principal induced Mr Ndara into this deal under the pretext that he was redressing a wrong committed by a salesperson at the dealership, hence Mr Ndara believed him. He offered to do a special deal that will see Mr Ndara benefit from the Wesbank Senior Manager Scheme that he already qualified for. Noting that Mr Ndara is ignorant of the Scheme’s formula, he loaded 15,25% interest rate instead of 9% that he qualified for. Mr Ndara as a result had R8857 monthly instalment for a USED Nissan X-Trail in 2004, sixteen years ago. Advocate Sellem ended by saying he stands by his decision to prosecute this matter. To conclude my letter, Sir, I shall quote from the Regional Director of Public Prosecutions, Advocate Goosen, who was the only prosecutor to write to Mr Ndara giving reasons why they decline to prosecute. Advocate TC Goosen on 11 December 2015 writes as follows: “ “It is a fact that the vehicle was described on the transaction details document as a new one. I am of the opinion that this aspect does not assist in making a decision in your favour. Everyone including yourself knew at all times relevant that the vehicle was a demo model and therefore not brand new. Consequently the action to tick the ‘new box’ surely could not have been made with an intention to defraud you. I also consider a possible argument that being a demo model, the vehicle was definitely a used vehicle, but also new in the sense that ti has never been sold before. Another possible argument can also be that the ticking of the ‘new box’ was a mistake and that the person who made the tick is as much to blame as those who had signed the document.” The car was indeed sold to you at a price consistent with that of a new car. Essentially because of all that he advances above, Advocate Goosen then concludes that whilst there are all these permutations above, Mr Ndara’s case would not stand scrutiny in a court of law as he will be a single witness. I shall leave these two contrasting versions for your benefit and the public at large. Once more with all the respect I invite you to meet with Mr Ndara and resolve what is patently a grave injustice. Not only to Mr Ndara, but to all South Africans who believe in natural justice and the rule of law. Sir, I believe you owe this to yourself, FirstRand Bank and to all those who inflicted pain on Mr Ndara and his family throughout these years. It is never too late to mend. Yours sincerely Mr Bantu Holomisa, MP UDM President
Admin
03 Jun, 2020
Composition of PIC interim board: beneficiaries should not be members
Honourable Minister Mboweni QUESTIONS AROUND THE COMPOSITION OF PUBLIC INVESTMENT CORPORATION’S BOARD: BENEFICIARIES SHOULD NOT BE ALLOWED TO SERVE 1. Some time has lapsed since the 995-page report of the Judicial Commission of Inquiry into allegations of impropriety at the Public Investment Corporation, as lead by the Honourable Justice Lex Mpati (‘the Mpati Commission’), was handed over to President Ramaphosa and was released to the public on 12 March 2020. 2. One of the consequences of the Coronavirus lockdown is that I had the opportunity and time to read the voluminous Mpati Commission’s report and apply my mind to the size of the task of implementing its recommendations, over and above the management of the Public Investment Corporation’s (PIC) day-to-day business. 3. From my personal experience of the way the Mpati Commission functioned and reading its report, I believe that the commission did a sterling job. We will hopefully see sweeping changes that will lead to the PIC being a responsible organisation, as well as rooting out corruption and poor administration. South Africans will hopefully see the police, the Directorate for Priority Crime Investigation (Hawks) and the National Prosecuting Authority continue investigating and bring culprits to book. 4. Regarding the implementation of the Mpati Commission’s recommendations at the PIC, the complexity of the job ahead and the fortitude required to complete it requires the most competent, qualified, and trustworthy individuals. The PIC’s board and administrators must have the best interests of the PIC, and by extension the South African Government Employees Pension Fund (GEPF), at heart. 5. This knowledge and given the poor track-record of past PIC boards brought me to my next exercise, which was to look at the composition of the PIC’s incumbent interim board which you appointed in consultation with cabinet almost a year ago. 6. To my surprise, in doing my quick study, I came across an individual who now sits on the PIC’s interim board, who is a past PIC beneficiary. 7. That person is Ms Irene Charnley; the company is her Smile Telecoms Limited, to which the PIC committed an investment of USD 100,000,000 in 2015. This is a little more than R1,7 billion when calculated at today’s Rand/Dollar exchange rate. The PIC Investment Details sheet where I obtained this information, is available at https://www.pic.gov.za/DocPresentations/95.-Smile-Telecoms-Holdings.pdf). 8. It is an interesting side-note that, at the time, the now disgraced former PIC CEO, Dr Daniel Matjila, said: “We are excited about our investment in Smile Telecoms as it provides us with an opportunity to accelerate and realise our mandate to invest in the rest of the African continent.” 9. Given this information I have provided thus far, I could not help but ask whether history was repeating; and it left me feeling quite uneasy. 10. This discovery piqued my interest and I also did a cursory internet search on Smile Telecoms Limited (‘Smile’) and found the following information, the context of which will become clear in my later questions to you: 10.1. “Capitalworks” is listed as Smile’s “partner” on its website but is named “CapitalWorks SSA” on the Investment Details sheet. Presumably, this name difference is due to there being different divisions of the same company. I then found an announcement that an entity called “Capitalworks Group”, in 2017, had launched “Africa Capitalworks”, an investment company, which aimed to raise USD 300 million to “…deploy permanent equity capital in mid-market companies in strategically selected sectors across Sub Sahara Africa (“SSA”) (excluding South Africa)”. This discovery in itself is not interesting, what however is, is that they had “… already secured early support and substantial investment, including from CDC, the UK’s development finance institution, and the Public Investment Corporation SOC Limited (PIC) on behalf of its client the South African Government Employees Pension Fund (GEPF).” 10.2. I also found a PIC document called “ISIBAYA DETAILED INVESTMENT SCHEDULE AS AT 31 MARCH 2017” which is available on, investigative journalism organisation, Amabhungane’s website at https://amabhungane.org/wp-content/uploads/2018/08/170331_PIC-Unlisted-assets.pdf. Under the column called “FRESG Performance” the following is written about Smile: • “Financially Underperforming – economic headwinds, devaluation of local currencies mainly Nigeria and stiff competition led to underperformance”, • “Owner Managed Companies – Corporate governance principles are compromised- Governance policy, Delegation of Authority, succession planning and risk management framework need to be in place” • “Establishment of Social and Ethics Committee to manage the Representatives of local people on the boards be increased to ensure legislation in countries that advocate local representation on the board.” 11. Given the above information the following questions arose in my mind: 11.1. Were you aware that Ms Charnley had been a PIC beneficiary when you appointed her as an interim board member? If so, do you consider this to be a healthy situation and what were your reasons for continuing with her appointment despite the knowledge? 11.2. What was the agreement in terms of the USD 100,000,000 investment the PIC made in Smile and has investment paid dividends, especially given the PIC’s 2017 conclusion that Smile was “financially underperforming”? What were the implications of this lack of performance? Did the PIC write off this investment and if so, would this not constitute mere looting? 11.3. The PIC concluded that Smile’s “Corporate governance principles are compromised” whilst the company was squarely under Ms Charnley’s management. Would you agree that this casts doubt on Ms Charnley’s suitability to function at board level? 11.4. Did CapitalWorks SSA/Capitalworks Group/Africa Capitalworks receive PIC/GEPF funding? If so, what are the details, and would you consider it compromising that a board member has yet another link to a PIC beneficiary? The United Democratic Movement would argue that there is enough evidence that warrants that Ms Charnley must vacate her seat on the PIC board immediately. One other matter I would like to raise with you is the appointment of Mr Abel Sithole as the new PIC CEO. It would serve us well to remember that the GEPF wrote off billions of rands in investment losses, as was reported in 2018, whilst he was that entity’s Principal Executive Officer. Some of those so-called investments were quite dodgy and this scenario means that Mr Sithole is a man who failed at his job. Surely there were other competent individuals available for your consideration. We do not want to conclude that his appointment is to merely clean-up the mess he was part of and covering tracks in the process. We look forward to your response. Yours sincerely Mr Bantu Holomisa, MP President of the United Democratic Movement
Admin
09 Apr, 2020
Holomisa writes to NCCC re COVID-19 lockdown review
Dear Chairperson of the National Coronavirus Command Council IMPORTANT MATTERS TO CONSIDER DURING THE COVID-19 LOCKDOWN REVIEW I wish to thank you for taking us, as political parties and stakeholders in South African society, for the confidence you showed in consulting us regarding the COVID-19 lockdown. We still endorse this critical move to find a lasting solution. We realise that this is a trial-and-error process and in line with your announcement that the decision for a lockdown will be reviewed, I ,yesterday, took it upon myself to do a snapshot survey asking South Africans the following on my social networks: “South African Review of Lockdown. We are past the halfway mark of the 21-day lockdown period and the government is busy reviewing the effectiveness of the lockdown in preventing the spread of Covid-19. Which regulations do you think should be reviewed and why? I intend compiling your suggestions and submit them to the President since he involved us as leaders of political parties right from the beginning in this coronavirus saga. I anticipate that he might consult us once more, if he intends to make changes. All the best.” Please note that, browsing through these comments, people, amongst others, are calling for government to carefully investigate the economic impact of the lockdown, given that the socio-economic conditions of South Africans are remarkably diverse and that no one solution can fit all. I submit these comments as is, but it should go a long way in finding a lasting solution; please see their comments and proposals on Twitter and Facebook. There are a number of well thought through ideas and comments from the people closest to this pandemic. Please also see the attached email from Ms Diane Redelinghuys for some additional suggestions. However, please note that the United Democratic Movement (UDM) is concerned that there are signs of maladministration regarding tenders during this time as evidenced in the City Press article: “Outrage over Gauteng’s 24-hour, R30m express tender” published on 5 April 2020. See also a Sunday Times article of 5 April 2020 “‘Sub-standard sanitisers, masks for soldiers’” and “Soldiers ‘forced’ to patrol streets during lockdown in ‘unsafe gear‘” regarding R10 million that had been spent on allegedly unsafe sanitisers and masks. There are also allegations of a R50 million tender allocated to a certain Kirinox non-profit organisation to provide services for the homeless and street children’s shelters (see the announcement by the Deputy Minister of Social Development on the left). We hear that this NPO has already submitted an invoice for R20 million. Regarding Minister Ndabeni Abrahams’ now infamous visit to Mr Mduduzi Manana’s house during lockdown, the jury is still out as to exactly what was being discussed in a situation where you have a minister and staff of the presidency present, and that the host had the temerity to say that the minister only came to fetch personal protective equipment, as a donation from his foundation. There are legitimate worries that this could be the tip of the iceberg and since Parliament and the provincial legislatures are shut down, there is no level of oversight and monitoring. In addition, people are concerned that there is no mechanism in place where any suspected maladministration and corruption can be reported. The UDM would therefore suggest that a small body be put in place, comprised of representatives of the Human Rights Commission, National Treasury, the Special Investigation Unit, the National Prosecuting Authority, the Auditor General, the Hawks and the police, to monitor government’s tendering processes during this time. This oversight and monitoring body, chaired by a judge, should be given the necessary powers to act, as ministers and deputy-ministers tend to give political directives to accounting officers. Given the history of this country, we cannot rely on the word of ministers and/or deputy-ministers in these matters. We hope that you and your colleagues will take our citizens’ and the UDM’s suggestions on board in the review of the COVID-19 lockdown. Yours sincerely Mr Bantu Holomisa, MP UDM President
Admin
10 Sep, 2019
Open Letter to President Ramaphosa: gender-based violence
Dear Mr President Recently, the country has been ravaged by news of gender based violence, women being abducted, raped and murdered. This is an everyday life for women in this country hence now we have the #AmInext movement, because honestly we are constantly stressing about who is going to be a victim of these atrocities ravaging our communities. The United Democratic Movement Women’s Organisation call on you Mr President, to speedily act on this, as women are under attack, the time for speeches and dialogues around these issues is over. We would like to see a government that implements change and not just talk about it. One of the things we would like to see is co-operation between the Departments or Ministries that fall under the cluster of peace and security. There seems to be no synergy and this is a contributing factor to the rise in violence in this country. If the SAPS manage to arrest the criminal; Justice will release him either on bail or on lack of evidence; if Justice sentence the criminal, Correctional Services will release him on parole. The UDEMWO call upon the government either amend the laws of this country as the law is currently favouring the criminals at the expense of the victims, or bring back the death penalty. Had it not been for Luyanda Botha, the late Uyinene Mrhwetyana’s murderer being released on parole from his previous convictions, the young girl would be still alive, pursuing her dreams. The question still remains, how did Luyanda end up working for a state owned enterprise with criminal records? Mr President, The Government continues to fail us! The Department of Women’s voice is not being heard, Minister Maite-Nkoana Mashabane is not vocal and not seen taking part in bringing about solution in the threatening situation, which is claiming lives of women especially in the past week. UDEMWO believes that when one tramples the other person’s rights, he must forfeit his rights. Enough with the lip service, Action must be taken NOW! Issued by Thandi Nontenja UDEMWO Secretary
Admin
08 Jul, 2019
Holomisa writes to PIC Commission re alleged R2.5m personal loan from VBS to Dr Dan Matjila, former PIC boss
Dear Advocate Lubbe SC DR DAN MATJILA’S EXPECTED TESTIMONY AT THE MPATI COMMISSION: FURTHER GERMANE INFORMATION RECEIVED FROM A WHISTLE-BLOWER I herewith acknowledge receipt of your email, dated 6 July 2019, wherein you informed me that – according to the rules of the commission of inquiry into allegations of impropriety regarding the Public Investment Corporation (‘the Commission’) – I may today be implicated in evidence to be submitted by Dr Dan Matjila, former Chief Executive Officer of the Public Investment Corporation (PIC). I wish to inform the Commission about information that has been provided to me by a whistle-blower regarding an alleged forensic review report (dated 15 April 2019) (‘the report”) as commissioned by the PIC board from Nexus Forensic Services regarding a VBS Mutual Bank investment transaction. 1. According to the alleged report, Dr Matjila, together with the PIC’s former chief risk officer Paul Magula and the head of legal Ernest Nesane received loans from VBS Mutual Bank. The allegations about the loans to the latter two gentlemen have been widely reported on in the media. 2. Dr Matjila has never declared a VBS Mutual Bank loan allegedly extended to him, to the value of R2 456 761.66, as required, which may constitute a conflict of interest and even possible criminal conduct. 3. The term of Dr Matjila’s loan is alleged to be a thirty (30) year period, which raises the questions whether a) the loan was extended at arm’s length and b) such a lengthy repayment period was the standard for VBS Mutual Bank? 4. In terms of the conditions of the loan, it is allegedly unclear whether the loan was intended to ever be repaid, or whether it is/was in fact being repaid. The only way to establish the veracity of this allegation is to scrutinise the dates of disbursement and repayment. 5. If there is any truth in these allegations, it raises serious concerns about Advocate Terry Motau SC’s report called: “The Great Bank Heist”. Why did Advocate Motau’s report omit Dr Matjila’s alleged loan, especially given his position as PIC CEO? 6. Why did Advocate Motua’s report exclusively focus on Messrs Magula and Nesane? Common sense would dictate that Advocate Motau would have declared Dr Matjila’s alleged loan even if no wrongdoing was apparent. 7. The alleged report apparently states that Dr Matjila holds ten directorships, but according to the whistle-blower, around two have not been disclosed as required. 8. As we all know, Advocate Terry Motau’s report revealed that a cash sum of R5 million was apparently “stolen” from VBS Mutual Bank, allegedly to bribe Dr Matjila to obtain his cooperation in facilitating the funding of VBS Mutual Banks’ requirements by the PIC. Famously, the money was reportedly carried by helicopter from Makhado to Lanseria Airport. If the alleged report is anything to go by, one could argue that Dr Matjila had personally benefitted from nearly R7.5 million of VBS Mutual Bank money. 9. Nexus Forensic Services’ alleged report apparently recommended that the PIC board should pursue criminal investigation. If that is true, the question is what has the board done about this recommendation and if nothing, why? Lastly and with respect, given the information the whistle-blower has imparted to me, I wanted to establish whether the Commission is aware of this alleged report and if not, could the Commission make enquiry into obtaining the said report to assist in its investigation. Yours sincerely Mr Bantu Holomisa, MP UDM President
Admin
01 Apr, 2019
UDM’s concern over the it service providers employed by the IEC
Mr VG Mashinini Chairperson of the Electoral Commission Private Bag X112 Centurion 0046 Dear Mr Mashinini UDM’s CONCERN OVER THE IT SERVICE PROVIDERS EMPLOYED BY THE IEC The United Democratic Movement (UDM) is extremely concerned over the information technology (IT) service providers, and systems, the Independent Electoral Commission (IEC) employs to run the 2019 National and Provincial Elections. We have, in the past, said much about the selection of these IT companies, their vetting and the security of the entire system, especially where it pertains to the capturing of results. As we stand at the door of these eminent elections, those grave concerns resurface. We would like to establish the following: 1. Has only one IT company been appointed through a tendering process? If so, can the IEC share this information (including its name) and confirm that it has been vetted and cleared? 2. If not, how many IT companies have been appointed through a tendering process; can the IEC share this information (including their names) and tell us whether they have been vetted and cleared? 3. At which stages and levels, of the process of the capturing of results, are each of these companies involved? Sir, it is of paramount importance that the political parties, as stakeholders in these elections, be provided with this information. Yours sincerely Mr Bantu Holomisa, MP UDM President Copied to: Political parties contesting the 2019 National and Provincial Elections Mr Sy Mamabolo, IEC Chief Electoral Officer
Admin
21 Mar, 2019
UDM lodges complaint with IEC re alleged ANC attack on members campaigning in Mbizana
Mr VG Mashinini Chairperson of the Electoral Commission P/Bag X112 Centurion 0046 Dear Sir LODGING OF COMPLAINT: ALLEGED ATTACK ON UDM MEMBERS BY PERSONS DRESSED IN ANC REGALIA Earlier this week, United Democratic Movement (UDM) members were campaigning in Ward 7, Khaleni Administrative Area, in the Mbizana Local Municipality (Eastern Cape). Four of our members were allegedly assaulted by persons wearing African National Congress regalia. One of our members was admitted to hospital with injuries sustained in the attack. One of the alleged assailants is known to our members and a case has been opened with the police. We understand that two suspects have been arrested for common assault in the meantime. It is ironic that political parties have just yesterday signed the Independent Electoral Commission’s (IEC) Code of Conduct, and the Code has, allegedly, already been infringed upon by the aforementioned party. The UDM condemns political intolerance and violence in the strongest terms and we call on the IEC to play its role in taking action in terms of its powers to enforce the Code of Conduct. We will not accept another scenario where we, as in the past, lodged complaints with the IEC and, in our opinion, nothing was done. We look forward to your response. Yours sincerely Mr Bantu Holomisa, MP UDM President Mr Sy Mamabolo, IEC Chief Electoral Officer
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26 Feb, 2019
Bantu Holomisa writes to the President re backdated salary payments of KwaZulu-Natal indunas
Mr CM Ramaphosa President of the Republic of South Africa PO Box 15 Cape Town 8000 Dear Mr President Yesterday, upon my visit to Isizwe Sakwampukunyoni at Mtubatuba, KwaZulu-Natal, under Nkosi Mzokhulayo Mkhwanazi, I met with over thirty indunas at the Mgeba Traditional Council offices. They alleged that all indunas of this province have not received their back-pay from 2013 up to 2017. It is alleged that former President Jacob Zuma had approved such payments on 18 April 2013. According to them, the indunas of the entire Kwa-Zulu Natal feel that they are being treated differently from traditional leaders in other provinces. We appeal to your good offices, and those of the other relevant authorities, to investigate the veracity of these claims and, should there be merit to these allegations, we request that you act upon such finding/s. For any additional information required, please call Prince Ntuthuko Mkhwanazi at and Prince Musawenkosi Qhina Mkhwanazi. Yours sincerely Mr Bantu Holomisa, MP President of the United Democratic Movement
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09 Jan, 2018
State Capture Inquiry should look into R350m Hlano deal to ascertain ANC & Zonkizizwe involvement
Deputy Chief Justice Raymond Zondo Private Bag X1 Constitution Hill Braamfontein 2017 Dear Sir STATE CAPTURE INQUIRY: INVESTIGATION NEEDED INTO AFRICAN NATIONAL CONGRESS AND ZONKIZIZWE INVESTMENTS’ INVOLVEMENT IN GAUTENG ROU HOUSING LOAN PORTFOLIO DEAL BETWEEN HLANO FINANCIAL SERVICES AND THE GAUTENG DEPARTMENT OF HUMAN SETTLEMENTS To provide context, we refer you to a 2016 agreement between Hlano Financial Services, Nimble Collection Services and the Department of Human Settlements regarding the resolution of Hlano Financial Services’ ROU housing loan portfolio – see attached. We in particular refer you to a November 2015 collection mandate between Hlano Financial Services, and Nimble Collection Services and NMI Housing Solutions in respect of the Gauteng ROU housing loan portfolio. We point you to a “bulk settlement” of R350 million, specified on page 6 of the document, which government was requested to consider and approve as the aggregate outstanding balance of R443 million in respect of 5,159 properties located in the Gauteng region over which Hlano held mortgage bonds. On a Zonkizizwe invoice, dated 16 August 2018, (attached) African National Congress (ANC) Treasurer General Paul Mashatile, was invoiced for “consultancy services” rendered in terms of “collection of Hlano Financial Services; Gauteng Housing Loan Portfolio at 3% of R350,000,000.00”. It is clear that something untoward is going on here. The origins of Zonkizizwe Investments are common knowledge and like with former ANC Treasurer General Dr Zweli Mkhize’s involvement in the Afric Oil/Public Investment Corporation loan mess, it seems as if the incumbent ANC Treasurer General is also involved in odd transactions involving the ANC, Zonkizizwe Investments and government. I further draw your attention to a letter dated 22 March 2017, regarding a further 2016/2017 budget adjustment request, from the national department of human settlements to its Gauteng counterpart which lists an approved amount of R200 million for “Hlano Financial Services”. What is the connection between this R200 million-item to the aforementioned R350 million? What was the money used for and, if it relates to the same deal, where did the balance of R150 million go? Perhaps Zonkizizwe’s management and Mr Mashatile should be made to explain if they had any involvement in this? Given the above information, it is clear that there might be some elements of state capture in this deal and the United Democratic Movement humbly requests that the Judicial Commission of Inquiry into Allegations of State Capture also investigates this matter. Lastly Sir, even if claims were to be made that any or all pertinent documents were lost in last year’s fatal fire that destroyed Gauteng Health, Human Settlements and Co-operative Government and Traditional Affairs’ office building, it would be easy enough to have a look at the bank statements to see how much money were paid into whose bank accounts. Yours sincerely Mr Bantu Holomisa, MP UDM President
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06 Sep, 2018
Status of the UDM as part of the co-governance agreement; setting the record straight
Rev Kenneth Meshoe, MP President, African Christian Democratic Party Mr Mosiuoa Lekota, MP President, Congress of the People Mr Mmusi Maimane, MP Leader, Democratic Alliance Dr Pieter Groenewald, MP Leader, Freedom Front Plus Dear Colleagues STATUS OF THE UDM AS PART OF THE CO-GOVERNANCE AGREEMENT; SETTING THE RECORD STRAIGHT Straight off the bat I wish to inform you that I take exception to the four signatories’ giving me a deadline to respond to your letter dated 1 September 2018 as if I am a schoolboy to be ordered about. This is not the collegial manner of communication I would expect amongst peers. For your information, I was contacted by both the City Press and the Business Day on the 1st of September, that asked for comment on your letter, which I only received yesterday afternoon. A question also arose in my mind as to why the United Democratic Movement (UDM) was not invited to the 31 August meeting of the African Christian Democratic Party (ACDP), the Congress of the People (Cope), the Democratic Alliance (DA) and the Freedom Front Plus (FF+). Your letter clearly states that the meeting was “…to consider a number of issues relating to coalition led governments across South Africa.” I would be obliged if you could furnish the UDM with the other agenda items and explain why we were not invited. That said, it seems as if the signatories suffer from collective amnesia given the history that led us to this point in the Nelson Mandela Bay Metropolitan Municipality (NMB Metro). The United Democratic Movement (UDM) herewith sets the record straight. 1. The three-person commission The co-governance agreement clearly stipulates what should happen in the case of discord between the coalition partners. I therefore remind you that the three-person commission – the coalition partners had tasked to make inquiry when the first differences within the coalition arose – had fingered both Mr Athol Trollip and Mr Mongameli Bobani. This inquiry also found that Mr Trollip had undermined the coalition and disobeyed the coalition partners’ collective instructions and by implication his own national leader. Despite these facts, the DA refused to act against Mr Trollip and yet expected the UDM to do so. This is an obvious double-standard. 2. The PricewaterhouseCoopers saga It was the DA which used the so-called draft report, that PricewaterhouseCoopers (PwC) had compiled, to discredit and defame Mr Bobani who at the time served as the NMB Metro’s Deputy Mayor. The DA refused to deal with Mr Trollip after he came up with wild accusations about Mr Bobani. At that time, the UDM stated that we would not take Mr Trollip’s word on these allegations and that the matter should be investigated and tabled at council. We were satisfied that council would apply its mind, once it received a report, and determine whether Mr Bobani was guilty of any wrongdoing. PwC’s interim report never reached council nor were the coalition partners privy to it. Instead the DA’s leaders Mr Mmusi Maimane, Mr James Selfe as well as Mr Trollip ran around the country blackening Mr Bobani and the UDM’s name. After we read in the media that such a report existed, the coalition partners had to demand a copy from the DA. There was no mention of Mr Bobani. The final PwC report was last year given to Mr Trollip, yet it remains in his hands. The coalition partners, council and even the media asked for its release and he has not done so. However, Herald eventually got hold of the report and reported that there were no findings that implicated Mr Bobani in any wrongdoing. We understand that this DA project cost the taxpayer millions of rands, which it used for their own nefarious purposes. What kind of political party uses public funds to attack its coalition partner? We have written to Mr Maimane in the past to demand that the DA and he must apologise to the UDM and Mr Bobani. He has not responded. 3. Regarding the DA’s “side deal” with the Patriotic Alliance It was the very same DA that brought some questionable characters through the back door and arranged that the Patriotic Alliance (PA) move for a motion of no-confidence against Mr Bobani. We wondered at this PA/DA “side-marriage” that was clearly outside the coalition. It seemed like an old apartheid style move to play brother off against brother. Our other coalition partners did nothing, and you clapped hands as you got rid of Mr Bobani. You chased us away and today have the temerity to ask about the status of the UDM as part of the coalition in the NMB Metro. You should be ashamed of yourselves. Now that you are out in the cold, you suddenly notice the UDM and try to blame us; yet you know very well that the DA is the sole reason for your fall. The UDM says stew in your own juice. The onus is on you to convince the UDM to remain in what has turned out to be nothing else but a coalition of thugs and liars. Lastly, he past two years paints a clear picture of the road that has led us to this juncture and I am surprised that the ACDP, Cope and the FF+ still tolerates the DA. Maybe you are still on a fool’s quest? The UDM calls on the coalition partners to be honest with themselves and acknowledge that the DA has treated all of us like we are second class citizens and junior partners in the coalition. Yours sincerely Mr Bantu Holomisa, MP President of the United Democratic Movement CC: Mr Julius Malema, Commander in Chief of the Economic Freedom Fighters
