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31 May, 2018
@PresidencyZA, UDM writes to #PresidentRamaphosa abt #corruption in #PIC: Mr President plz walk the talk! Scandal bigger than #Guptas?
Mr CM Ramaphosa President of the Republic of South Africa Union Buildings Private Bag X 1000 Pretoria 0001 and Deputy Chief Justice RMM Zondo Chairperson of the Commission of Inquiry into State Capture Private Bag X1 Constitution Hill Braamfontein 2017 Dear Mr President and Deputy Chief Justice THE PUBLIC INVESTMENT CORPORATION, THE GOVERNMENT EMPLOYEE PENSION FUND AND SUSPECTED CORRUPTION; A SCANDAL BIGGER THAN THE GUPTA-FAMILY’S STATE CAPTURE? 1. I refer to the below information which is a summary of the alleged corruption involving, in main, the Chief Executive Officer of the Public Investment Corporation (PIC) Dr Daniel Matjila. 2. The allegations contained therein describes serious corruption, dodging of due diligence, misrepresentation, money laundering and purging of staff (possibly for a cover-up) in deals of the PIC, which could only be the tip of the proverbial iceberg. 3. The extent of the rot could in fact be worth billions of rands, which makes it potentially bigger than the Gupta Scandal. Through PIC, Dr Matjila appears to have tentacles across various sectors of society – from unions, political parties and possibly parts of the fourth estate. He seems to have built a platform that has so far protected him from scrutiny and they have been protecting him against accusations of serious corruption. 4. There are many other nauseating examples of corruption which the media (like amaBhungane Centre for Investigative Journalism) have uncovered and have put in the public domain. Yet we have not seen the authorities do anything about the allegations of corruption and irregular deals, especially those within the past nine years. 5. It is therefore the United Democratic Movement’s urgent request that this matter forms part of the inquiry into state capture, because of the potential scope of the corruption. The commission’s terms of reference could be widened to include these allegations, especially considering that this could only be the tip of the iceberg and that more corruption will be exposed in its investigations 6. Because of the sophistication with which this alleged wheeling and dealing in the PIC was done, we suggest that a team of specialist professionals (including but not limited to forensic auditors, as well as finance and investment experts), should speedily investigate this matter, before proof of these misdeeds are ferreted away. 7. Mr President, you have categorically stated that you will root out corruption in government, which includes State Owned enterprises; but in this instance it will also directly affect hundreds of thousands of families for whom this is a life or death situation. Yours in stamping out corruption Mr Bantu Holomisa, MP UDM President Re: Investigation of CEO, Dr Daniel Matjila, with regards to irregularities at PIC Background Public Investment Corporation (PIC) is one of the largest asset manager managing South African government public funds. Its biggest client is the Government Employee Pension Fund (GEPF), which constitute approximately 90% of its fund under management. GEPF is a defined benefit fund, which means it is guaranteed by the employer. Employer, with regards to GEPF, is the South African Government. Any shortfall in member benefits or liabilities are therefore guaranteed by the government. It is for this reason that any maladministration from the asset/investment management is detriment to both the members of the fund and the fiscus. There have been several irregularities that have been raised in the media which are of concern and could impairment the ability of GEPF to meet its obligations over the long-term, such eventuality could trigger support from the fiscus. The following deals need further investigations by an independent party: Steinhoff Steinhoff on the unlisted side where PIC gave R 9.3 billion to an entity led by Jayendra Naidoo called Lancaster01. The shareholding of Lancaster01 is as follows is as follows: GEPF 50%, J Naidoo, 25% and community trust 25%. (Why such a narrow-based BEE structure with one person getting 25% of the deal? Does the community trust a front?). The transaction was done in two phases: • Phase 1 PIC gave Lancaster R 9.3 billion secured by both shares and collar structure if share price decline for capital preservation. • Phase 2 was the restructuring of the transaction wherein PIC was to partially forego its security to another lender Citibank. Citibank funded Lancaster02 Investment in STAR worth over R 6 billion. • Compromising of the security package in favour of J Naidoo in phase 2 resulted in impairment amount worth billions of rands. (could be up to R 5 billion possible loss for doing a favour to J Naidoo and Citibank) Ayo Technologies Ltd • Ayo Technologies Ltd, a start-up company, listed on the Johannesburg Stock Exchange and due diligence was waived. Funds were disbursed without a condition precedent – put option being in place. Put option is an insurance instrument that would protect PIC if the share price declines. • PIC was the only material participant in the private placement despite media reports of oversubscription. • Lack of market participation could be indicative of the poor underlying investment value. The share price has remained below listing price and have experience very limited liquidity. • PIC invested R 4.3 billion, current market value is R 3.3 billion. Already lost R 1 billion on market to market basis. Sagarmantha Technologies • The CEO lobbied the investment committee members even by using letters from unions and convenient press release from a political party. Has the CEO allowed governance processes within PIC to breakdown to such a level that he felt better outsourcing the function of PIC Investment Committee to the political and union formations? Why did he deem it fit to have the letters from unions be sent to investment committees if he believes in the internal process that they will do the right thing? What was his intention to have these letters given to members of investment committee? • Despite the lobbying, the deal was declined due to critical media scrutiny. • Sagarmatha technology proposal lacked investment rationale and largely mirrored the same methodology used to get R 4.3 billion for AYO technology and backed by the same sponsor –Iqbal Surve. • GEPF was expected to invest a minimum of R 3 billion. S&S Oil Refinery • S&S Oil Refinery in Mozambique. PIC funds are tied in an asset that is currently not producing much of what have been projected? And the sponsor-Momade Rassul is alleged to be an underworld figure. Rassul is based Nacala in Northern Province of Mozambique was arrested on 29 June 2017 facing an assortment of serious charges including money laundering, illicit enrichment, tax fraud, foreign currency manipulation, smuggling and misappropriation. • Total investment at risk of full write down is R 1 billion. Erin Energy Media reported on a dodgy deal concluded with an American – Nigerian businessman – Kase Lawal. The ownership of the underlying oil asset by Erin Energy was disputed at the point of PIC investment, but the PIC proceeded. Erin Energy failed to get full ownership of the asset. Considering the PIC’s $270-million equity investment and the fact that Erin had drawn $65.6-million against the $100-million PIC-backed loan but held $9.1-million in cash security, the PIC could lose roughly R 4 billion. The girlfriend story • PIC utilisation of CSI budget to fund the project introduced by the girlfriend of the CEO. • CEO asked an Investee company to financially assist the girlfriend. Note that the CEO has not disputed this. It borders on money laundering and serous conflict of interest, this is subject to Police investigations. Other issues for further investigations: Corporate finance Advisory on deals seem to be for selected few. • Sao Capital has been an advisor on many deals. Why does the company have such a great strike rate within PIC? How many deals have they done through PIC? • Kurhisani has been an advisor in many deals – MOGS, Distell, etc. Why does the company have such a great strike rate within PIC? How many deals have they done through PIC? Recent purging of staff Head of risk is fired. Head of IT, IT security and Company secretary are under suspension. Over the last few years the PIC has victimised a lot of black professionals. Independent investigations of the staff issues will show the extent of the rot.
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17 Mar, 2016
UDM reacts on Gupta’s offering Deputy Minister Jonas a position of Finance Minister
Media statement by UDM President Bantu Holomisa MP United Democratic Movement (UDM) welcomes the shocking confirmations made the Deputy Minister of Finance Mr. Mcebisi Jonas this afternoon. His bold decision demonstrate his commitment to his oath of office and confirms that at least within the ruling party there are some who puts South Africa and its citizens first. This behaviour by the Gupta family can only be best described as treason. Unfortunately, they have not captured the government of South Africa without the knowledge of President Zuma. In fact, they surely have his approval and probably a mandate too. It will be interesting to know, whether he himself was not frog marched to the union building; as well as whether many other ministers and senior government officials were not appointed by the Guptas since 2009. On Sunday, the 13th of March 2016, the President is on record, in an ANC Alliance Eastern Cape meeting, defending the Guptas saying they helped his son, who is their business partner, to get work experience and a job when he could not get one South Africa because he is a Zuma. This behaviour by the President makes it very impossible to believe anything but that the Gupta family are in total control of the South African government and some state institutions. We have been consistent in saying that President Zuma is no longer a liability to the ANC but is also a threat to the country and its wellbeing. We have also written to the Speaker of the National Assembly suggesting that the relationship between the family of the President and that of the Guptas, is threatening the security and the economy of the country. The confirmations by Deputy Minister vindicates us. We suggested to the Speaker, that the Parliamentary Joint Standing Committee on Intelligence should investigate this relationship and its impact on the security and economy of the country. The African National Congress and South Africans must remember that the Gupta family never contested elections in South Africa and therefore were never voted and never took an oath of office, yet they exercise powers only reserved by the Constitution of the Republic to the person in the highest office of the country. There is a symbiotic relationship between the events that resulted to the country losing billions of rands in December 2015, which were characterized by the sacking of Minister Nene, appointment of Minister Van Royen and the now confirmed offer by Guptas, surely they have a mandate. We advise the ANC to do itself a favour and cleanse itself of this monumental embarrassment and probably regain some of the credibility they have lost since the coming of President Zuma into the public office. However, if they fail and continue to do what they have been doing since 2009, defending one scandal after another of a one man, then the electorate must heavily punish them on the ballot box. End
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08 Mar, 2016
Bantu Holomisa writes to SABC about ANC hijacking of Imvuselelo
Honourable Minister F Muthambi, The Chairperson of the SABC Board, The Provincial Manager of Umhlobo Wenene ANC HIJACKING OF THE SABC – UMHLOBO WENENE IMVUSELELO PROGRAMME The above matter has reference. I am an ardent follower of the Imvuselelo Programme broadcasted by SABC by Umhlobo Wenene Radio Station. Every Sunday evening, I invest time to listen to this spiritually building programme since the time of the late Reverend Lufafa from the then Radio Transkei. When it was integrated into the programmes of Umhlobo Wenene, I continued following it. In the past the programme was purely religious in every aspect. Today, the African National Congress (ANC) Government has hijacked the programme with Members of the Executive Council and Mayors using public money. It has been captured by an unethical ruling party and turned it to be its campaigning platform. After the elections of 2014 it raised eyebrows when this programme went to Bhisho to wash the premier’s feet, even though it was known that he was under investigation, because an amount of R200 000 from monies earmarked for former President Mandela’s funeral ended up in his personal account. Every time the programme airs, you find these Executive Members at centre stage of the church and are given a podium to campaign for their political party. I attended one of these services in Mthatha and it was most repulsive to see the ANC Women’s League Members wearing their uniforms. I was told that when this programme was recently broadcasted from Sterkspruit and Mancam Village in Mqanduli that one would not be amiss to think that it was an ANC gathering. ANC flags and other campaign material were paraded during what is supposed to be a religious gathering for all citizens irrespective of their political affiliation. If you were to listen to the recording of the service in Mancam, the MEC of Social Development made no bones of praising her party and bringing service delivery to the people. She went on praising the role of ANC stalwarts. You tell me if that is not political campaigning. Writing this letter, I also consulted some party leaders who informed me that the same abuse is true of a religious programme on Radio Lesedi called Mafulong a Matala. I fail to understand why the SABC, as the public broadcaster, would allow itself to be used for political gain by a ruling party. If public funds are used for the benefit of the public, the SABC should extend participation to all political parties represented in the area where the programme is held to air views on a specific issue affecting all citizens. It would be important that the SABC goes back to basics and run this programme using its own budget. Programmes like Imvuselelo should not be funded through provincial and/or local fiscus as such will come with conditions that will undermine the independence of the SABC. After all this money they are using is to bring services to the poor, such as roads, water and electricity and not to brainwash them with ANC propaganda. If the SABC charges the Guptas for the breakfast show on SABC TV2 from monies they receive from SEOs, such as Eskom, Transnet, etc. they certainly could afford this expense. SABC should refuse to be used as a mobilising vehicle of the ruling party using the platforms created to develop citizens spiritually. It is a public broadcaster and should be above party politics, at best it should create a separate programme for all political parties to use the public space equally. Should the SABC not stop this blatant bias in Imvuselelo, we shall be forced to instruct our members to attend these services in full party regalia, carrying party material, and insist that they on, the spot, be given a platform – as they do for the ANC – to address any topic they choose. I am sure other political parties would also welcome this opportunity, especially since talk-shows have been suspended by the SABC. Whilst you are pondering our demands in the meantime, could you please forward the schedule of these programmes so that we can tell our members to attend these services. I will always support Imvuselelo in the form that it was originally intended. I however outright reject the fact that the ANC has hijacked religious programmes for their own nefarious objectives. Our message is clear; the ANC must be stopped from hijacking SABC religious programmes. I hope this will be attended to urgently Mr Bantu Holomisa, MP UDM President Copied to: Secretary of the South African Council of Churches Party Political Leaders
Admin
18 Feb, 2016
Bantu Holomisa writes to the Speaker of the NA re Gupta Family
• Mining Minister’s Gupta Trip • Name: Van Rooyen’s two Gupta ‘advisers’ who almost hijacked SA Treasury • Duarte denies abuse of office • Why the Gupta family’s alleged deal with Denel is dubious • Denel and Gupta venture ‘illegal’ • Gupta-Zuma Firm gets 10th of Richards Bay Coal Export Rights • Nuclear energy: Gupta’ power play (Shive Uranium) Dear Honourable Speaker THE THREAT PRESENTED BY THE GUPTA FAMILY TO THE SECURITY OF THE COUNTRY’S RESOURCES. The widely reported proximity between our head of state and the Gupta Family has reached unprecedented proportions and therefore demands an immediate intervention by an appropriate national legislative body. The reported transactions, some of which are attached, exposes that critical and strategic industries are targeted for influence and capture by this family and its associates, chiefly amongst others being the son of the President. Further disturbing reports are that, the cabinet seem to have been co-opted to an extent that they are obliged to be paraded during breakfast shows of SABC 2, organised by the New Age of the same family. These breakfast shows are directly funded by State Owned Enterprises (SOEs) yet our public broadcaster (SABC) gets zero and all the millions go to the Gupta family. The capture and control of the cabinet by this family has since gone beyond the breakfast shows, today the nation knows that, recently, the Minister of Mineral Resources accompanied this family to Switzerland to help snatch yet another coal mining deal. Already, some of the members of the cabinet are publicly undermined and embarrassed; as witnessed in the recent illegal joint venture with a State Owned Enterprise, Denel without the knowledge of the minister and compliance with the relevant regulatory framework, (PFMA) of our country. We are now told that the same family is snatching another coal exports rights through Richards Bay Coal Terminal. Once again, a direct family member of the President is part of this, we read. During the turmoil in our National Treasury caused by an abrupt and most devastating decision to unceremoniously remove a performing minister; the one-week minister came carrying as his hand bag, two so-called advisers, with highly questionable academic qualification, and not only allegedly linked to the same family, but one being a son in law of the Deputy Secretary General of the ruling party. These disturbing reports are a source of discomfort and threat to the already devastated economy of the country. They further undermine, the confidence of both local and outside investors. There is no reasonable and mindful business person who would be encouraged to invest his or her wealth in a country whose economy is run by a family. In this regard, the United Democratic Movement, request the Office of the Speaker to direct the Joint Standing Committee on Intelligence to conduct hearings based on amongst others, these serious reports and allegations which are already undermining our economy and the country’s security. Kindly find attached reference articles listed above. Kindly advise Mr. Bantu Holomisa, MP President of the United Democratic Movement
