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
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
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
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
05 Apr, 2019
Mpati Commission should look at GEPF and PIC investment in Sibanye-Stillwater
The United Democratic Movement (UDM) wishes the Mpati Commission to take a deep look into the investment linkages between the Government Employees Pension Fund, the Public Investment Corporation and Sibanye-Stillwater. Sibanye had acquired the Stillwater Mining Company and is located and managed in two regions i.e. Southern Africa region and the United States region. We understand that the Government Employees Pension Fund (GEPF) and the Public Investment Corporation (PIC) has invested in Sibanye-Stillwater. The questions the UDM wishes the Commission of inquiry into allegations of impropriety regarding the Public Investment Corporation to ask, are, amongst others: • How much of the GEPF and the PIC’s monies are invested in this deal? • How much of that money lies outside our borders? • How was the deal structured and what does this mean for government workers’ pensions? • Why is Sibanye-Stillwater hellbent on retrenching South Africans thus jeopardising the future of hundreds-of-thousands of mineworkers, especially considering the impact that retrenchments have on these families where those salaries are their only source of income. To get to the bottom of the matter, the Mpati Commission should summon the aforementioned parties to testify before it, as well as the Association of Mineworkers and Construction Union which have made allegations of wrongdoing in the company. Issued by: Mr Bantu Holomisa, MP UDM President
Admin
06 Feb, 2019
R116m of the PIC’s money to allegedly be spent on UWC student accommodation without due diligence
Dear Honourable Minister Mboweni REQUEST FOR THE URGENT INTERVENTION ON THE POSSIBLE IRREGULAR FUNDING OF IKHAYA STUDENT ACCOMMODATION (PTY) LTD BY THE PUBLIC INVESTMENT CORPORATION The above has reference, and I attach hereto relevant documents for your ease of reference. The referenced documents suggest, amongst others, that: 1. Based on an email dated 4 February 2019 from the Public Investment Corporation’s (PIC) Roy Rajdhar to some George Blackenberg, it appears, that the PIC is on the verge of transacting an amount exceeding R116 million, purportedly for the construction of student accommodation for the University of the Western Cape (UWC). 2. Disturbingly, there does not seem to be an existing approval and due diligence. Neither is there an approval by UWC council. According to the letter dated 30 May 2018, and signed by the UWC Head of Legal Service, such a project would be subject to the approval of the Executive Management, the Council and reported to the Minister of Higher Education. Without confirmation of these provisions, it is surprising that the PIC is on the verge of funding this project. 3. Furthermore, the two registration numbers which are (2007/025898/07 and 2013/144938/07- found in the referenced documents) have been listed under the Ikhaya Student Registration Company and appear to be inconsistent with the company details. 4. According to the attached document, titled “STRICTLY PRIVATE AND CONFIDENTIAL – Indicative Term Sheet Issued by the PIC to the Ikhaya Student Accommodation Proprietary”, signed by the PIC’s Roy Rajdhar (Executive Head: Development Investment) and Rodger Lionel Hendrick, (Chief Executive Office of Ikhaya Student Accommodation), may shed light for your ease of reference. 5. With regard to Rodger Hendricks, it is alleged that he has been sequestrated by a court of law in a separate case dealing with student accommodation services within the Cape Peninsula University of Technology (CPUT). It would be apt to establish, at this time, his alleged historical conduct for the purposes of this investigation in order to provide a character assessment. 6. According to our quick search with the Companies and Intellectual Properties Commission (CIPC), this company include Dennis Henry George, Michelle Xaviera Gabler and Carl Liebenberg as active directors. Find attached the results from CIPC. The inconsistence on the registration numbers referred to above may be clarified by these directors. Accordingly, I request your good office to: • Stop any envisaged financial transaction as per the email dated 4 February 2019; and • Subject the entire transaction to the current PIC enquiry. I will be pleased to be advised on the steps taken by your office at all material times. Sincerely yours, Mr. Bantu Holomisa, MP President United Democratic Movement
Admin
04 Dec, 2018
GEPF’s R7,4 billion write-offs are shocking
The United Democratic Movement noted with disbelief, the Government Employees Pension Fund’s (GEPF) write-offs amounting to R7,4 billion for the 2017/2018 financial year. These write-offs are of direct consequence of some of the Public Investment Corporation’s (PIC) most controversial deals such as investments in Steinhoff/Lancaster 101, as well as with companies controlled by Iqbal Surve. All of which happened under the management of former PIC boss, Dr Dan Matjila. Something is rotten in the state of Denmark. Why were these PIC investments given the green light? Why was the GEPF board allowed to make these write-offs? Why was there a delay in appointing the PIC commission of inquiry? Has anything been swept under the carpet? Minister of Finance Tito Mboweni and his deputy, Mondli Gungubele has much to explain. The Mpati Commission of Inquiry must get to the bottom of this mess; sooner rather than later. It should, in particular, look at these transactions that led to the write-offs. The PIC board and Dan Matjila should not get away with this immoral and egregious abuse of people’s retirement money. Merely resigning from a position cannot be the end of the road, if corruption is proved, the guilty must go to jail. The state pensioners, whose moneys are invested at the PIC, have a right to be very worried about how the GEPF and PIC boards are handling their funds, because the powers that be has cast them to the wolves. In the meantime, the disciplinary action taken against any PIC staff members should be immediately suspended pending the outcome of the work to be done by the Mpati Commission. For further comment: Mr Bantu Holomisa, MP UDM President
Admin
17 Oct, 2018
UDM welcomes announcement of PIC commission of inquiry
The United Democratic Movement welcomes the president’s announcement of the appointment of Justice Lex Mpati as the head of the commission of inquiry into the allegations of corruption at the Public Investment Corporation (PIC). The inquiry should clean-up the mess at the PIC and get to the bottom of the rot we have seen exposed in the media for quite some time. The pension funds of past and present government employees should be protected from the ruthless sharks that are eating away at their financial futures. We reiterate our call that PIC chief executive officer, Dr Dan Matjila, who played a pivotal role in, for example the Mozambican oil deal, the VBS Mutual Bank scandal, the Ayo Technologies and Sagarmatha Technologies mess, should be suspended with immediate effect, which is in line with international norms and standards. Issued by: Mr Bantu Holomisa, MP UDM President
Admin
10 Oct, 2018
The PIC commission should start now that Nene has been fired
We welcome President Ramaphosa’s decision to show Nhlanhla Nene the door. We have consistently been calling on the President to act with speed in instituting a commission of inquiry regarding the Public Investment Corporation (PIC). The Gupta scandal makes the exploitation of the PIC look like a Sunday picnic and the President should take immediate action so that the rot may be exposed. We now know why Nene was dragging his feet when it came time for him to institute the PIC commission of inquiry. He was protecting certain individuals at the PIC, given the involvement of his son. The United Democratic Movement (UDM) has consistently called upon President Ramaphosa to make certain that the cancerous tumour of corruption, that envelopes the PIC, should be cut out. The UDM had, a couple of weeks ago, handed over our files on the whole PIC saga to Advocate Budlender SC which included the details of the Mozambican oil deal scandal. It showed the role of the PIC CEO and certain Fidelis Madavo in this mess. The President’s focus should now be on publishing the terms of reference for the commission of inquiry and the appointment the commissioners. The terms of reference for the PIC commission of inquiry should include all the questionable deals that went through the system whilst Nene was board chairperson. It would also be important to scrutinise any other suspicious deals that were approved by previous board chairpersons.
Admin
05 Oct, 2018
PIC looting scandal
The deeper we dig, the greater the corruption exposed. The United Democratic Movement (UDM) has been saying all along that there is something seriously wrong at the Public Investment Corporation (PIC) and that it is endangering the pensions of government employees. Our sources indicate as much, and the scratch-work done by the media; in particular the amaBhungane Centre for Investigative Journalism, reads like a corruption horror story. As the drama unfolds, a pattern emerges where some of the family members some Deputy Ministers of Finance, de facto chairs the PIC board, have had their fingers in the PIC cookie jar. It would therefore make sense to think that Minister Nene has been covering for PIC CEO Dan Matjila, the board and himself. Only yesterday did he confirm that he had tea and coffee, almost six times, with the Gupta family. This proximity of Minister Nene and his son to the Guptas is no different from the connection of former president Jacob Zuma and ANC Secretary General Ace Magashule. Even the Gwede Mantashe toilet scandal in Amathole comes to mind. There is a clear conflict of interest here and, under normal circumstances Minister Nene would be handing over his resignation this morning. Nene and Matjila should be removed from their positions and the current board be dissolved, to make way for an interim board until this matter has been investigated. Very early on, the UDM approached President Ramaphosa regarding various dodgy PIC deals and he promised to act. Yet, the Ramaphosa has been stalling in appointing the PIC commission of inquiry and publishing its terms of reference. He made this announcement and the months’ delays are casting aspersions on his integrity. There is enough prima facie evidence that should convince the president to get the PIC inquiry up and running with immediate effect with the participation of the Directorate for Priority Crime Investigation, the Financial Intelligence Services, as well as Interpol. Also, each of the past PIC Chairmen of the Board should be investigated. For further comment: Mr Bantu Holomisa, MP UDM President
Admin
29 Sep, 2018
To give PIC CEO Dan Matjila a golden handshake is preposterous
We are all aware that there will be a commission of inquiry which shall investigate the mess at the Public Investment Corporation (PIC). Despite the announcement, we have for several months waited with bated breath to hear who will serve on the commission and what the terms of reference will be. We, in today’s Mail and Guardian, read that PIC chief executive officer Dr Daniel Matjila has approached the President with a view to exit through the back door with a golden handshake. This is preposterous and is tantamount to the police giving the get-away car’s key to a bank robber. The United Democratic Movement (UDM) rejects this notion outright. Matjila should be suspended immediately and be made to explain himself to a commission of inquiry. Most importantly, he, and the current board, should face the music and pay the price should they be guilty of wrong-doing. There seems to be scurrying about in the corridors of power to say a quick farewell to Matjila before he spills the beans. It’s not only several prominent families and powerful individuals who might have their hands caught in the cookie jar, but possibly a few political parties. We have certainly heard Zonkizizwe Investments being mentioned, which we all know is an ANC enterprise. Bizarrely, we have even heard how Matjila’s alleged girlfriend benefited from PIC cash. It leaves a bitter taste in the mouth when you chew on the fact that Finance Minister Nene, who once served as PIC board chairperson, now must drive the process of putting a commission together. This might shed some light on why it’s taking so long to get the commission off the ground. I will be interviewed today by Advocate Budlender SC and his team of forensic auditors to give guidance on how the UDM would see this matter pan out. The commission should establish which methods and schemes were used to syphon money from the PIC and make recommendations on how to prevent this kind of crime in future. This is exactly why Matjila should not be allowed the easy way out; he certainly has much explaining to do.
Admin
26 Sep, 2018
Public Protector to investigate allegations of corruption by Min Zweli Mkhize re PIC deals
The United Democratic Movement earlier this year wrote to President Cyril Ramaphosa wherein we revealed possible corruption that involved the Public Investment Corporation (PIC), Zonkizizwe Investments (which we understand to be solely owned by the ANC), some ANC heavy weights and Afric Oil. The alleged broker between the PIC and e.g. VBS Mutual Bank and the various municipalities was Minister Zweli Mkhize. We have been reliably informed that the Public Protector will be investigating the allegations with the affected individuals being subpoenaed to appear before the Public Protector on the 4th of October 2018. All those involved in syphoning money from the PIC are to explain themselves and their conduct; this includes the people who brokered any suspicious deals with the PIC. We call on the Public Protector to leave no stone unturned in teasing out who was involved and to what extent the allegations are true. Issued by: Mr Bantu Holomisa, MP UDM President
Admin
16 Sep, 2018
Harassment of PIC whistle blowers
In reference to an article published on Fin24 (https://www.fin24.com/Economy/pic-moves-to-discipline-another-executive-20180914?isapp=true) the United Democratic Movement (UDM) condemns what can only be called permitted harassment of whistle blowers at the Public Investment Corporation (PIC). One is suspicious at government i.e. Minister Nene and President Ramaphosa’s handling of the matter of instituting the commission of inquiry into the PIC. To make matters worse the terms of reference has not yet been published, nor have the commissioners been appointed. Something is very wrong here; it does seem as if government is pulling all the stops to delay the process. Only they will know the reason. The UDM has persisted in calling for Dr Dan Matjila, PIC’s chief executive officer, to be suspended because of the possible influence he might bear at the PIC until the commission kicks off its work. The UDM calls on government to institute a total moratorium on disciplinary processes at the PIC until the commission’s work is done and its findings are made public. Government is playing a game that could have dire consequences for the Government Employees Pension Fund. Issued by: Mr Bantu Holomisa, MP UDM President
Admin
04 Sep, 2018
The Public Investment Corporation: concerns regarding time being taken to institute commission of inquiry and the PIC board appointing forensic auditors
Dear Mr President This matter has reference. The United Democratic Movement is very concerned that there is no movement in terms of the appointment of the Public Investment Corporation (PIC) commission of inquiry. Sir, in this matter, we want to remind you that Minister Nene had initially, in his court papers, said that he saw nothing untoward at the PIC. This raised some eyebrows at the time. His lack of action now raises the question as to why Minister Nene is dragging his feet in instituting the inquiry and appointing the commissioners. Our main concern is that Minister Nene, who once was a PIC Chairperson, is acting like a person who may himself, or maybe a family member, have been captured. Regarding Minister Nene’s instruction on a forensic audit at the PIC, the minister has not stated which aspects or transactions such an investigative team will audit. In fact, Sir, the entire matter is shrouded in secrecy. Mr President, we herewith ask that you take this matter away from Minister Nene and appoint the commission yourself. We also ask that you appoint the forensic auditing team i.e. not by the PIC board whose members may be compromised themselves. Kindly advise. Yours sincerely Mr Bantu Holomisa, MP President of the United Democratic Movement
Admin
17 Aug, 2018
PIC commission to start it’s work in “due course”
The United Democratic Movement (UDM) has noted that President Ramaphosa has announced the appointment of a commission of inquiry to probe the Public Investment Corporation (PIC) and the dark cloud of corruption allegations hanging over the institution. It is however frustrating that the names of the chair of the commission and the supporting team, as well as the detailed terms of reference will be announced “in due course”. What does National Treasury mean with “in due course”? They have been saying this for the last three weeks or so; it would appear that this could be months from now, which is enough time for the guilty to send the proof of the misdeeds to the shredder; if it has not happened already. The UDM outright rejects the idea that the PIC board – which includes CEO Dr Dan Matjila who is also under the cloud of suspicion – should be given the task of appointing the forensic company. The board appointing the audit firm is tantamount to a thief appointing his own judge and jury. National Treasury or the commission itself should appoint such a forensic company. To make matters worse, the board has neglected its fiduciary duty by outsourcing the decision to suspend the CEO to the forensic auditors. The UDM reiterates our call that Dr Matjila must be immediately suspended until the commission concludes its work.
Admin
14 Aug, 2018
Holomisa discusses The “Rainbow Nation” and the Political Culture of South Africa in new SA
• Programme Director • The faculty dean, Prof Van Wyk • Our hostess, Ms Busi Khaba • Staff members • Monash students • Ladies and gentlemen 1. Opening I want to thank our hostess, Ms Khaba, for reaching out to me and inviting me to have a chat with you today. I see many fresh faces in front of me and it is heartening to see young South Africans still interested in politics as a field of study. Well done to you and your teachers. I say this because millions of young South Africans are apathetic towards politics; not seeing the link between politics, government and their daily lives. This is a gospel you need to spread, especially amongst your peers. 2. The link between my world and your world It would not be wrong to say that in most fields of study, we have – on the one side – the academics and researchers and – on the other – the practitioners. I am of course a practitioner that started my political career, just before Madiba dragged an unwilling nation into what Archbishop Desmond Tutu called “the rainbow nation.” What a breath-taking image this is; that our diversity can be moulded into a thing as special as a rainbow. 3. The miracle of 1994 You might be too young to really appreciate the miracle of 1994 and what the rainbow nation meant. We very narrowly escaped a full-blown bloody civil war. The fear and anger that ruled the hearts of both the oppressor and the oppressed would have seen this country in flames. You have of course studied this, but I want you to internalise what Madiba must have felt, having been given the task to be president of the new South Africa. He must have asked himself: • How do we unite a nation with this deep gorge separating them? • How do we bring the ultra-left and ultra-right to the table e.g. those who incited fear of a black rule and those who thought him a sell-out to the whites? • How do we convince the millions of ordinary South Africans, who found themselves in the middle, that everything is, simply put, going to be okay? Can you imagine this responsibility? 4. The induction of the rainbow nation Madiba clearly thought there was merit in Desmond Tutu’s idea of a rainbow nation and it was immortalised in his inaugural speech: “We have triumphed in the effort to implant hope in the breasts of the millions of our people. We enter into a covenant that we shall build the society in which all South Africans, both black and white, will be able to walk tall, without any fear in their hearts, assured of their inalienable right to human dignity – a rainbow nation at peace with itself and the world.” 5. Politics in the new South Africa: trusting democracy Even though we entered a democratic era with the so-called rainbow nation, we had (and still have) much to learn about democracy. Saying that we should be on par with the “established democracies” is an error in thought. Some of these established democracies, makes the twenty-four years we have been on the road, look like chump change. We still have a long way to go before South Africa has two main parties vying for political supremacy. It is still early days and we have already seen the majority party losing support as time has gone by. We have seen old foes disappear and the arrival of new kids on the block. It makes for exciting material for you to study I am sure. There is an old joke about democracy, that, in retrospect, 10 million voters can be wrong. But that’s the way democracy of course works. What we need to question in terms of our own democratic system is that the gap between public representatives and the voters is too wide. Yes, our proportional system allows for the voice of the smaller parties to be heard, but the average South African would not be able to tell you which member of parliament (MP) serves their interests in a particular area. I doubt whether the MPs know either. The United Democratic Movement (UDM) has campaigned for quite some time that ours should be a mixed electoral system: A) a constituency-based system that allows for greater accountability and B) a proportional system that still gives space for minority voices to be heard. The UDM also argues that the president of the country should be elected directly by the people. Just think, if we used this method, how differently the terms of office of our former president could have played out. 6. Politics in the new South Africa: the slippery slope of corruption After Madiba handed over the baton to his successors, the country started sliding down the slippery slope of corruption. It is a sad fact that South Africa has indeed regressed from the ideals of 1994. In fact – to illustrate this point – in the mid to late nineties, one could not even whisper the word corruption in Luthuli House’s corridors. It was a big taboo and it could lead to one’s expulsion from the African National Congress so fast it could make your head spin. I speak from experience! Institutionalised corruption presents an interesting philosophical conundrum i.e.: are all individuals corrupt to varying degrees and we should expect no less? Or is there corruption because we tolerate or even laud it? Maybe it is a little of both? What we do know is that corruption invariably hurts the man and woman on the street; those who can least afford it. For example, we today have commissions of inquiry that have been tasked to get to the bottom of some of the worst singular acts of corruption in South Africa ever. The state capture inquiry being one of them, as well as the yet to be convened inquiry into the allegations of corruption at the Public Investment Corporation (PIC). The alleged looting of your parents’ retirement moneys, invested at the PIC, literally runs into billions of rands!! Simply put, the hyenas have stripped the nation of the “easy meat”, as shown by the Auditor General’s report, and have now turned their immoral jaws onto the PIC with bogus black economic empowerment (BEE) deals. What is clear from these transactions is that selected cadres, close to the ruling elite, have been using the BEE policy to concoct unsustainable schemes in the name of empowerment and job creation. A serious and responsible government would not have jeopardised people’s retirement monies in such a reckless fashion. Instead of creating a national fund to empower all South Africans, the PIC’s resources have been tapped to line the pockets of the “lucky few”. Of course, as we have seen with the Steinhoff scandal, corruption is not only the domain of political appointees, government officials and public representatives. One can however argue that corruption in government has, of late, been at an all-time worst. This brings the UDM’s argument full circle i.e. how different our country would have been managed if the people were directly represented in parliament. You will tell me in the question and answer session whether you think the UDM’s idea of direct representation has merit. 7. Politics in the new South Africa: the land debate Because the land debate is at the front of our minds, I want to share a few quick ideas with you. We must all agree that, as we ushered in the new South Africa, the issue of land was placed on the backburner. Political emancipation was item number one on the agenda. The land issue, as a tool to achieve economic emancipation, should have been addressed much sooner to avoid the emotional tug-and-pull we are now witnessing. On this score, the UDM has long argued that there should be an economic Codesa of some description, where we can all gather under one roof to discuss the macro economy with land at the apex of this debate. I dare say, that if the powers that be had listened to the UDM, South Africa would have had a smoother ride on the road to economic freedom. 8. Politics in the new South Africa: a government of national unity Lastly, I want to address the constitutional provision of a government of national unity. This is an idea that echoes from 1994, but it has again become relevant as we march on to the 2019 national and provincial elections. People think it’s a cliché, or a redundant argument, that “every vote counts”. You will tell me if you differ from this point of view. It is easy to see how each person’s vote gets lost in the millions of votes cast, but the 2019 elections could possibly be a watershed moment in South African politics. Political pundits have predicted that it is not likely that the coming elections will produce an outright victor. This is the first time in the history of the new South Africa that this is likely to happen and brings the importance of each of our votes to the fore. The so-called king-makers will therefore be the “small” political parties. This will be a test for democracy in our country; I am sure that you as students and lecturers will watch the run-up to the elections and the results like hawks. Enjoy the viewing pleasure. 9. Conclusion People sometimes say that they live in the most exciting part of a country’s history, but irrespective of which era we live in, this remains true. You certainly live in an exciting time in South Africa’s history and you have a responsibility to participate. It will be remis of me, as a politician, to not encourage you to vote for the UDM, but the more important point is that you should at least vote. If you have not already, go and register and encourage your peers to do the same… make a fun outing of it and go and register. Take to heart my message that if you don’t participate, other people will make decisions on your behalf. You will sit dry-mouthed on the side-lines and murmur your dissatisfaction to an indifferent government. I sincerely hope that you, young people, will dip your feet in politics for we certainly need young blood to be infused in government and South African politics. Thank You
Admin
25 Jul, 2018
UDM notes minister’s decision re PIC independent inquiry
Media release by Mr Bantu Holomisa, MP and UDM President The United Democratic Movement notes finance minister Nhlanhla Nene’s instruction to the Public Investment Corporation (PIC) board to commission a forensic investigation into allegations of corruption and to institute an independent inquiry into the PIC’s affairs. The mere fact that the minister has so decided shows that there must be prima facie evidence of wrong doing. We however completely disagree on the minister’s approach of giving the responsibility for instituting the inquiry by the very same people who may be tainted. Who will draft the terms of reference for the inquiry? The minister cannot rely on the very same board and the Chief Executive Office, Dr Dan Matjila, to be player and referee. In addition, we are also surprised that the CEO has in fact not been suspended. This smacks of favouritism and protection of a person that might be on the wrong side of the law once the commission gets to work. The UDM will consult with its lawyers on what the next step will be on our side, given that we have taken the minister to court.
Admin
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.
Admin
29 Dec, 2017
#PIC #GEPF: employees lost R12bn of pension money with Steinhoff corruption! Any political party that (may) have benefitted through #Steinhoff should: #PayBackTheirMoney
Of course, the call to “pay back the money” was a legitimate demand for the return of taxpayer money illegitimately used to fund Nkandla, the “Gupta industry” and other sinister personal gains. Right now, there are other monies that should be paid back; that should be returned from whence it came. The Steinhoff debacle shows that corruption and unethical behaviour place people in the path of clear and present danger. The Public Investment Corporation (PIC) who invests and manages funds on behalf of the Government Employees Pension Fund (GEPF) announced on 13 December, a week after the Steinhoff collapse that: “It is important to note that notwithstanding the collapse in the Steinhoff share, the GEPF portfolio remains financially healthy, because of its diversified nature. It is also important to note that GEPF members’ benefits will not be changed by these developments, given that the GEPF is a defined benefit pension fund.” GEPF’s Steinhoff loss was 0.6% of its portfolio on 6 December. This means that for every R100 of GEPF value sixty cents were lost. Even if this could be described as a manageable setback, the reality remains that the Steinhoff debacle cost the PIC R12 billion! This is a dangerous situation, where civil servants’ pensions are adversely affected no matter who downplays the scenario. The Steinhoff powers that be should provide guarantees that this R12 billion will not disappear into nothing and that the money shall be paid back to government employees. On another note, perhaps the Steinhoff saga is also a turning point in private political party funding looking at the African National Congress and the Democratic Alliance’s refusal to lay bare their books. If perhaps they, or any other political party, benefitted in any way from Steinhoff they should also be held to account. Given that the PIC has invested in Steinhoff, each and every political leader, should own up and confirm or deny that their parties (and/or functionaries) have accepted money from any source associated with Steinhoff profits. Any and all Steinhoff related money, and every cent, must be returned, with interest, to the coffers of the providers of compromised money, to set off that R12 billion loss in government pensions. Why should workers lose money to greed and corruption? Issued by: Mr Bantu Holomisa, MP and UDM President
Admin
26 Sep, 2017
UDM rejects Government’s attempts to tap into PIC funds to bail out failing SOEs
The allegations that the Ministry of Finance is trying to access Public Investment Corporation (PIC) funds to bail out failing State Owned Enterprises (SOEs) confirm the United Democratic Movement’s (UDM’s) long-held suspicion that the mafia styled ruling elite would, once cash-strapped, extend its grubby hands to workers’ pensions entrusted to them for safekeeping. The true intention of these transactions is not to bail out struggling SOEs, but rather to ensure that there is enough state resources to plunder for those “whose turn it is to eat”! We therefore reject any attempts by government to use PIC funds to fund failing SOEs. Bearing the aforementioned in mind, the UDM believes that steps should be taken to develop a mechanism to protect workers’ assets against abuse and misuse by government. Such a mechanism should, among others, also ensure that workers, as a key stakeholder, have a voice in how and where their assets are invested and accessed. In addition, steps should be taken to restructure the PIC board to ensure that other stakeholders are accommodated and that it is not under the full control of government. We call for the implementation of more checks and balances, with minimal bureaucracy, such as risk mitigation systems and a watertight Code of Ethics. We demand a comprehensive investigation of all transactions since 2009, as we believe that under Mr Zuma, the PIC may have been used as a source of funding for suspicious deals that have nothing to do with growing an inclusive and distributive economy. Statement issued by: Mr Nqabayomzi Kwankwa, MP UDM Deputy President and Chief Whip
Admin
20 Jan, 2016
Public Protector must investigate Public Investment Corporation (PIC)
Dear Advocate Madonsela REQUEST FOR AN URGENT INVESTIGATION: Public Investment Corporation (PIC). I take this opportunity to welcome and wish you and your office, a very successful year in the service of the nation, in 2016. In this regard, I wish to table the following matter with you, so that you may investigate it appropriately for the benefit of the South African public. I have anonymously received serious allegations with regard to the possible corruption in the Public Investment Corporation (PIC) fund. It looks like the institutionalised corruption, which has resulted to South Africa being downgraded by various global grading bodies, has extended its vicious arm to the pensions of government employees, Judges, Members of Parliament and others who are paid from the public purse. It is alleged that, during the second week of December 2015, an amount of R40m was transferred from the PIC account to a company whose name is attached herein. This company is known for handling the PIC and government transactions. It is further alleged that this R40m was meant to fund salaries of the ANC staff members and its Birthday Anniversary Celebrations held on the 8th of January 2016. Another allegation is that, in January 2016, an amount of R2m was transferred from the PIC account to a company whose name is also attached, for the benefit of the ruling party. You are further requested to investigate another allegation that the PIC is about to fund a company whose name is attached herein, with an amount of R1.5bn, in order for this company to purchase a 25% stake from another person who holds this stake with TOTAL Oil Company. I request you to investigate whether due diligence of this transaction was conducted and whether it is in accordance with the relevant laws governing the PIC. Given the specific allegations above, it is clear that there is a need for a thorough and comprehensive investigation of how the PIC is managing all the monies entrusted with them. A judicial commission of enquiry may be relevant in order to ensure that these monies are not vulnerable to the whims of the political elite. I look forward to your excellent investigative work on this matter. Kind regards Bantu Holomisa President of the United Democratic Movement
