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
12 Apr, 2019
Bantu Holomisa speaks at a Unisa panel discussion on the 2019 general elections
• Our hosts today • Dr Somadoda Fikeni, our moderator • Those who represent the various departments that sponsored this panel discussion • My colleagues from other political parties • Academics and students • Ladies and gentlemen Thank you for affording me the opportunity to have a chat with you today. 1. The UDM’s road of success The United Democratic Movement (UDM) has since its inception batted on the wicket of the ethics of good governance. In fact, the UDM in part owes its beginning to that principled stance. My testimony at the Truth and Reconciliation Commission, about corruption in the former Transkei, got me unceremoniously kicked out of the African National Congress, because I refused to recant. Soon after that, the UDM was born and we have not stopped fighting for what is good and right in this world: • We opposed the immoral floor-crossing legislation that was eventually scrapped. • We succeeded in having the Independent Electoral Commission’s former Chief Electoral Officer, Pansy Tlakula, resign because of an irregular lease agreement she organised. • We were part of the legal action taken to preserve and protect the former Public Protector Thuli Madonsela’s report on state capture. • The UDM was the catalyst that saw coalitions form after the 2016 elections. • We did our part in forcing the former president to vacate his office, specifically taking the matter of the secret ballot to the Constitutional Court and organising one of the biggest marches to the Union Buildings. • The UDM were there with our colleagues from other opposition parties when we asked the Constitutional Court to order parliament to consider the former president’s conduct and whether he is impeachable. • We have asked President Ramaphosa to intervene in the malfunctioning and corruption-ridden SETAs. Nothing has yet been done about it, but we won’t give up. • Various communities will attest to the fact that the UDM has intervened on their behalf to have government, at municipal, provincial and national levels, attend to their service delivery complaints. • Most recently, the UDM exposed alleged corruption at the Public Investment Corporation amounting to billions of rands. This directly led to the establishment of the Mpati Commission of Inquiry at which I am sure you saw me testify. Once again at our post guarding against corruption. These are the actions of a party that is opposed to pervasive corruption, maladministration and malfeasance in government. 2. Fighting government corruption It is a sad reality that South Africans have become jaded when they talk about government corruption. There is too much of it and it’s demoralising our nation. They only sit up and listen when “things get serious”, as we see with the current commissions of inquiry. Things are indeed very serious with billions of Rands at play. For the UDM, integrity, commitment and hard work are required from everyone in government, as well as those in the private sector. No quarter shall be given to those who fail. Rewarding party loyalty is an evil, that should become a thing of the past. The best quality must be ensured in all appointments, so that merit, responsibility and integrity is guaranteed, and excellence is rewarded. Specifically, the UDM believes that special courts must be established to investigate and prosecute the corrupt in the public and private sector. Also, each province must have an independent anti-corruption task team to determine the depth of corruption and to immediately act. 3. Safety and security For the UDM, the long-term solution to crime and violence lies in our people committing to a concerted effort to reform our society, so that we do not simply address the symptoms, but also the root causes. Although there are a number of initiatives that the UDM would introduce to bring about safety and security, I wish to highlight two specific strategies for the purpose of today’s discussion. a) As far as we are concerned, the recruitment processes of the police, defence and intelligence services must be revamped. The aim of such a programme will be to allow communities to participate in keeping their environments safe and secure. Individuals who are interested in a career in law enforcement will be trained and assigned to serve their communities. This will allow for the monitoring of crime, the gathering of intelligence and combating lawlessness, whilst also creating much needed jobs. b) The coordination between the ministries of justice, police services, correctional services, defence and national intelligence must be stepped up. The UDM proposes that a crime prevention ministry be established to coordinate the work of these departments. Specific objectives and deadlines must be set for the departments to achieve their goals. 4. Free education • The UDM supports fee-free tertiary education for students from poor and working-class families. Such an expanded programme can be justified economically as free education is a strategic economic driver, because it is an investment by the state in the creation of a larger tax base in the long run. However, once implemented under a UDM government, students’ progress shall be monitored and managed as an investment. • We also think that the National Student Financial Aid Scheme (NFSAS) is a big flop. It is hamstrung by chronic maladministration, corruption and a jobs-for-pals leadership scheme. In addition, the way in which NSFAS is structured produces graduates who end up mired in debt. Because of our under-performing job market, they will remain indebted with no hope of repaying their loans. Of course, the biggest challenge at the other end of this education process is making sure that our graduates have jobs. 5. Job creation The UDM has always said that a massive initiative focussing on job creation through infrastructure maintenance and development is one of the routes to go. This planned sustainable development project must be driven through the department of public works, in collaboration with all other departments. Furthermore, the UDM’s response to the challenge of unemployment includes: • Identifying markets for small firms, through promoting domestic and foreign connections to adequately address both the supply and demand side of the economy. • Developing capacity in the areas of improved business and entrepreneurial skills. • Identifying loan and capital sources, as well as facilitating loans and investments in community businesses. • Investing in sector-based planning and implementation, including the creation of sector-specific banks to provide financial assistance to historically disadvantaged groups and individuals. 6. Xenophobia Xenophobia in South Africa is not a new thing and, as a matter of fact, it is getting worse by the day. There are multiple causes of xenophobia, but at the risk of over-simplifying the matter, the UDM is of the view that the root cause lies in the unregulated and unfair competition for the poor’s meagre resources. The dearth of jobs is, for instance, part of this dynamic and complex situation. On the one hand, undocumented immigrants are exploited, because they are desperate enough to work for low wages. And, on the other, there are no job opportunities for South Africans that pay a decent wage. To add to the complexity of the matter we have the issue of undocumented foreigners illegally occupying dwellings. The owners of such buildings, should be brought to book as they exploit undocumented immigrants and, by default, also deprive South Africans of safe havens. Like it or not, much of the blame is to be laid at government’s feet as the impact of its inadequate control over the arrival of illegal immigrants, and lack of resettlement mechanisms, are not addressed. A UDM government will handle illegal immigration in a humane and holistic manner, in line with our continental and international obligations. We also make a call on undocumented immigrants to come forward and be registered. Finally, we recognise that legal immigrants contribute immensely to our society and our economy. We are home to, for instance, some of the best educators and academics who impart knowledge and do important research and development. The UDM believes that xenophobia has no place in our society, but we must also be cognisant of our responsibilities to our own people. It is entirely possible for both these ambitions to work harmoniously. 7. An Economic Indaba with land at the apex of its work As we worked on establishing a new South Africa, land was placed on the backburner. Political emancipation was our primary goal at that time. Land, as a tool to achieve economic emancipation and make reparation, should have been addressed straight after liberation. Matters would look very different if the land issue had been addressed timeously. We certainly would have avoided the destructive tug-and-pull we now witness. When the National Assembly took a resolution on the expropriation of land without compensation, the UDM voted in favour of this resolution after it was amended. The UDM certainly did not vote for free-for-all land grabs and evictions. In this regard, the UDM has long promoted the view that the matter can only be effectively resolved at our proposed Economic Indaba, where all stakeholders can congregate to discuss South Africa’s macro economy, with land at the apex of the debate. There are a number of pertinent questions that should be answered before we make any rash decisions. Those are, amongst others, the following: • Who exactly (individuals, companies and/or government) will be affected and how? • How does food security and economic stability impact implementation i.e. does it prevent expropriation in specific circumstances, and what those would be? • How will government handle rapid urbanisation and an ever-increasing need to make land available in cities and the concomitant denuding of rural communities and local economies? • How will traditional leaders and rural communities be affected? • How will entities such as the Ingonyama Trust be impacted? 8. Closing With these few words I leave you and invite you to ask me any questions you wish me to answer. Thank you
