State capture inquiry begins

[Gordon_R]

https://www.news24.com/SouthAfrica/...d-by-molefes-about-face-on-coal-deal-20190227

Former Glencore chief executive Clinton Ephron has told the Zondo commission into state capture that he was devastated when former Eskom CEO Brian Molefe told him Eskom would not be updating the company’s contract with the power supplier.

Ephron took to the stand on Wednesday and was widely expected to delve into the extra-ordinary levels of pressure placed on Glencore, allegedly to force it to place Optimum coal mine under business rescue so that it could be snapped up by the Gupta family.

Before Glencore purchased the mine, Optimum’s owners had had lengthy deals with Eskom to supply coal to Hendrina power station, which is within spitting distance of the mine in Pullens Hope, Mpumalanga.

By early 2015, Glencore was deep into negotiations with Eskom to add a fourth addendum to the original Coal Supply Agreement, which would relax conditions for Glencore-owned Optimum through clauses in the contract that allowed the supplier to declare financial hardship.

Ephron dealt with the Optimum/Hendrina CSA in great detail throughout Wednesday morning, as he was guided by evidence leader Advocate Vincent Maleka. But the negotiations fell apart shortly after Molefe was seconded from Transnet in April 2015.

"There was no contact with Mr Molefe between the time of late April 2015, when [the proposed fourth addendum] was taken to the board and the 18th of May 2015,” Ephron told the commission.

“[Molefe] said to me that Eskom would not be amending the terms of the CSA and that it would continue to enforce its rights in terms of the contract.

"No amendments would be considered until the end of the contract, which at that time was December 2018. And that was the end of the discussion,” he said.

Eskom, Molefe in particular, continued to place Glencore under extreme pressure by enforcing a R2bn historical fine, which eventually forced Glencore to put the mine under business rescue.

 

[TysonRoux]

Another dirty corrupt ANC cadre that roams free enjoying the spoils of his looting.

Zwane flew to Zurich to facilitate Optimum mine sale to Guptas, inquiry hears

Former Mineral Resources Minister Mosebenzi Zwane has denied that he flew to Switzerland to pressure Glencore to sell its Optimum coal mine to the Gupta family.

The state capture commission has heard that former Mineral Resources Minister Mosebenzi Zwane flew to Switzerland to do the bidding for the Gupta family to take over the Optimum coal mine.

 

[Sideshow Bob]

eish - I didn't realize TM was capable of so much waffling..

https://www.news24.com/SouthAfrica/...-to-testify-at-state-capture-inquiry-20190228

Zondo: when did the NEC of the governing party became aware of what is understood as state capture?
A difficult question, Manuel says.

 

[Gordon_R]

Not sure whether to laugh or cry: https://www.news24.com/SouthAfrica/...trevor-manuel-tells-zondo-commission-20190228

ANC veteran and former finance minister Trevor Manuel has expressed frustration at the governing party's failure to use its own stalwarts and former leaders to better service the country.

Manuel, who testified earlier at the state capture commission of inquiry, said there were many former leaders, including two former presidents, who were never consulted about how to successfully run South Africa over the past decade.

Can anyone on this forum imagine 'showerhead' accepting advice (other than from the Guptas)?

 

[Gordon_R]

https://www.dailymaverick.co.za/art...t-appointments-manuel-tells-zondo-commission/

Former Finance Minister Trevor Manuel, giving evidence before the Zondo Commission of Inquiry into State Capture on Thursday has said he believed former President Jacob Zuma had abdicated his authority to the Gupta family to make Cabinet appointments.

 

[schumi]

Nyanda drops bombshells over meeting with Guptas

Johannesburg - Former cabinet minister Siphiwe Nyanda on Thursday told the Commission of Inquiry into State Capture that he once met with the Gupta brothers while they were with Duduzane Zuma, the son of former president Jacob Zuma.

Nyanda said the Guptas came to his office to introduce themselves and their tech company, Sahara Computers.

He said that the brothers indicated a desire to see him again but not in his office. They then sent representatives to request another meeting.

More at : https://www.iol.co.za/news/politics/nyanda-drops-bombshells-over-meeting-with-guptas-19567309

 

[schumi]

Fikile Mbalula: 'The truth (about my promotion) shall set us free'

ANC head of elections Fikile Mbalula has lauded the testimony given by former finance minister Trevor Manuel before the Zondo commission of inquiry.

This comes after Manuel told the commission that an emotional Mbalula had told an ANC meeting how he took exception to being told by a Gupta brother that he would be minister of sport and recreation.

More at : https://www.timeslive.co.za/politic...e-truth-about-my-promotion-shall-set-us-free/

 

[Gordon_R]

Interesting perspective from Ferial Haffajee, on Glencore and the Guptas at the Zondo Inquiry: https://www.fin24.com/Opinion/feria...ys-were-no-match-for-the-gupta-mafia-20190302

It was quite something to see Glencore as the victims before the inquiry into state capture rather than the captors. This tells you something: South Africa’s state capture story very quickly got so sophisticated and so entrenched in the public sector that even world-class players like Glencore didn’t know how to get around it.

 

[¯\_(ツ)_/¯]

Interesting perspective from Ferial Haffajee, on Glencore and the Guptas at the Zondo Inquiry: https://www.fin24.com/Opinion/feria...ys-were-no-match-for-the-gupta-mafia-20190302

Imagine what it’s like, then, for other less swashbuckling companies trying to do business where there is a state intersection, either in the form of regulation or where you are trying to get in on a contract with a state-owned enterprise.

State capture has made doing business in South Africa as risky as it is in cowboy capitalist economies, and that is not a good thing for a country with low growth and devastatingly high unemployment.

This! Hammer -> Nail -> Head

 

[TysonRoux]

Lets hope the new NPA head does South Africa proud and helps send this dirty ANC cadre to jail.

NPA DELAYS FILING IN ZUMA’S STAY OF PROSECUTION APPLICATION

The National Prosecuting Authority (NPA) says it will file its answering papers in former President Jacob Zuma’s stay of prosecution application by next Monday.

It emerged last week that the NPA requested an extension for the date to file because it was unable to meet the court-imposed deadline.

Zuma is applying to have his fraud and corruption case, which is linked to the arms deal, permanently halted.

The NPA’s Natasha Kara says prosecutors, through the State attorney’s office, wrote to Zuma and arms firm Thales asking for a filing deadline extension.

She says prosecutors needed the extension because of the voluminous nature of the papers filed by the parties and will now file their papers next Monday.

Kara says the applicants will file their replying papers and heads of argument in April, while the State will file theirs in May.

The matter is set down to be argued from 20 to 23 May.

 

[Gordon_R]

Lets hope the new NPA head does South Africa proud and helps send this dirty ANC cadre to jail.

NPA DELAYS FILING IN ZUMA’S STAY OF PROSECUTION APPLICATION

The National Prosecuting Authority (NPA) says it will file its answering papers in former President Jacob Zuma’s stay of prosecution application by next Monday.

It emerged last week that the NPA requested an extension for the date to file because it was unable to meet the court-imposed deadline.

Zuma is applying to have his fraud and corruption case, which is linked to the arms deal, permanently halted.

The NPA’s Natasha Kara says prosecutors, through the State attorney’s office, wrote to Zuma and arms firm Thales asking for a filing deadline extension.

She says prosecutors needed the extension because of the voluminous nature of the papers filed by the parties and will now file their papers next Monday.

Kara says the applicants will file their replying papers and heads of argument in April, while the State will file theirs in May.

The matter is set down to be argued from 20 to 23 May.

I posted a similar link on Saturday in the other thread, which is more specifically about Zuma: https://mybroadband.co.za/forum/threads/jacob-zuma-will-face-criminal-charges-–-report.940245/

 

[schumi]

#StateCaptureInquiry: Peter Pedlar's contract as acting secretary extended

Johannesburg - Deputy Chief Justice Raymond Zondo said on Friday that Peter Pedlar will continue as acting secretary of the Commission of Inquiry into allegations of State capture until the end of March.

"The acting appointment of Mr Peter Pedlar as acting secretary of the Commission has been extended by the chairperson until 31 March 2019 as the investigation relating to the secretary has not yet been completed," Zondo announced.

Pedlar, a corporate governance expert, was appointed as acting secretary of the Commission from January 22 to 28 February, pending the outcome of the investigation against permanent secretary, Dr Khotso De Wee.

De Wee requested to take a special leave following allegations of taking bribes were levelled against him. Zondo chairs the commission that is probing allegations of graft at State-owned entities.

Former Bosasa chief operations officer, Angelo Agrizzi, who testified at the commission last month,said he was told that De Wee was one of senior officials of the justice and constitutional development department who were paid bribes by Bosasa Operations in order to secure a 2013 tender for the installation of security systems at various courts around the country.

More at: https://www.iol.co.za/news/politics...ontract-as-acting-secretary-extended-19576930

 

[schumi]

#StateCaptureInquiry: Eskom flouted its own rules in R25bn Huarong deal, says Pillay

Johannesburg - Eskom treasurer Andre Frank Pillay on Friday told the Zondo Commission of Inquiry into state capture how Eskom flouted its own procedures when it signed a R25 billion unsolicited capital funding proposal with a Chinese consortium.

In 2015, Eskom entered into a dubious agreement with China-based Huarong Asset Management, which had approached the cash-strapped power utility with a proposal to grant it $1.5 billion (around R25 billion) for Eskom to build or refurbish power stations.

Pillay said that the unsolicited proposal to fund capital projects was pursued by Eskom even though its terms were erroneous.

He said that Eskom's rules and procedures were flouted and that Eskom had pushed through with the deal even after realising that Huarong was not going to be able to deliver on its promises.

Huarong had partnered with a South African-based electrical engineering contractor, Tribus Energy owned by Rajeev Thomas, to establish a BEE-compliant consortium, Huarong Energy Africa, which would implement this proposal to Eskom.

At the time, Eskom - which raises capital from domestic bonds, international markets, commercial paper loans, multi-lateral institutions like, and export credit agencies - was looking for a funding offer that did not rely on government guarantees to resolve financing challenges.

Pillay said Eskom executive, led by former chief financial officer Anoj Singh, travelled to China where to meet a Huarong delegation for discussions.

At this meeting, Pillay said a gentleman called Rex Madida introduced himself as political deployee of the African National Congress and was part of the Tribus group.

More at: https://www.iol.co.za/news/politics...es-in-r25bn-huarong-deal-says-pillay-19579113

 

[schumi]

Eskom’s Shweni admits to misleading Reserve Bank

The deceit led to a shady R25 billion deal authorised to Huarong and a ‘shoe company’ without management or a trading record.
Faced with a barrage of questions during cross-examination by Deputy Chief Justice Raymond Zondo and senior counsel Thandi Norman, Eskom executive Sincedile Shweni yesterday conceded to misleading the SA Reserve Bank when he applied to the bank in July 2017 for an exchange control approval.

In granting the approval in the following month, little did the central bank officials know that Eskom, which sought permission to enter into an asset financing agreement, was getting entangled with a dodgy South African-based Huarong Energy Africa (HEA) and a British Virgin Islands-registered shell company Ideva.

Ideva was used by Huarong as a vehicle to receive the R25 billion long-term loan the power utility required to fund a project to improve its infrastructure.

Exposed as a “shoe company” without a proper management structure and trading record, with audited financial statements reflecting zero revenue, Norman told the Commission of Inquiry into State Capture that she found it “puzzling” for Eskom to enter into such a huge transaction.

More at: https://citizen.co.za/news/south-af...oms-shweni-admits-to-misleading-reserve-bank/

 

[Gordon_R]

Another version of the Eskom 'loan' story: https://www.dailymaverick.co.za/art...-tried-to-sneak-through-a-bespoke-1-5bn-deal/

Senior Eskom managers could smell a rat all over a multibillion-rand funding proposal that had the blessing of their then-bosses — executives who pushed for sign-off, at every turn, despite a string of red flags.

Neatly packaged as an “innovate” funding instrument, Huarong Energy Africa’s unsolicited bid was attractive as it promised to help Eskom raise $1.5-billion in funding for power plant refurbishments without the burden of government guarantees.

But right from the onset, there was an abundance of concerns that were either ignored or side-stepped through nifty executive interventions by, among others, former chief financial officer Anoj Singh, former board member Zethembe Khoza and former acting CEO Sean Maritz.

 

[Gordon_R]

https://www.fin24.com/Economy/eskom...llion-rand-gupta-contract-zondo-told-20190311

Eskom appears to have mislead National Treasury about the quality of coal from a Gupta-owned coal mine in order to secure a R2.9bn contract, the state capture commission has heard.

The inquiry was on Monday continuing with evidence from Gert Opperman, a coal supply unit manager at the power utility.

But Eskom – when writing to Treasury for leave to increase its contract with Brakfontein in terms of securing additional coal at a cost of R2.9bn (a 77.4% increase over the initial contract) wrote that the coal from the extension had in fact passed quality tests.

Opperman, who said he was not involved in talks or negotiations around the contract, said in his understanding the coal had not passed required quality tests.

 

[3WA]

https://www.businesslive.co.za/bd/n...n-gordhan-eff-behind-moyanes-bid-to-grill-me/

Pravin Gordhan doesn't want to be cross-examined by Tom Moyane and Dali Mpofu.

WTF, Pravin? If they're going to abide by the rules of the commission and tell their story then why can't they cross-examine?

 

[TheChamp]

https://www.businesslive.co.za/bd/n...n-gordhan-eff-behind-moyanes-bid-to-grill-me/

Pravin Gordhan doesn't want to be cross-examined by Tom Moyane and Dali Mpofu.

WTF, Pravin? If they're going to abide by the rules of the commission and tell their story then why can't they cross-examine?

Not too convincing.

 

[schumi]

Koko blamed for Eskom's acceptance of coal from Gupta-owned mine

JOHANNESBURG - Eskom official Gert Opperman has told the state capture commission that the utility’s former executive Matshela Koko instructed him to accept coal from the Gupta-owned Brakfontein Mine even though it failed quality tests.
Opperman returned to the stand at the inquiry in Parktown on Monday.
He said in 2015, Eskom sent Tegeta a letter, raising concerns about Brakfontein’s coal supply to one of the utility’s power station Majuba.
This was after the coal was tested several times and was found to be sub-standard.

More at: https://ewn.co.za/2019/03/11/koko-blamed-for-eskom-s-acceptance-of-coal-from-gupta-owned-mine

 

[schumi]

Matshela Koko: ‘I am a victim’

Former Eskom chief executive Matshela Koko took to radio on Monday to once again deny allegations he used his position to aid the controversial Gupta family in capturing the embattled power utility.

During an interview on Radio 702 with Eusebius McKaiser, Koko said he would never be caught for committing any impropriety during his time at the helm of Eskom. Koko added that he was “a victim”, saying his former colleagues had turned on him in an effort to deflect allegations made against them.

Allegations of corruption at Eskom have been the subject of a parliamentary inquiry, a treasury investigation and are currently being examined before the Zondo commission of inquiry into state capture. Over the last two weeks, Koko has been implicated in alleged corruption by a number of Zondo commission witnesses, including Eskom board chairperson Jabu Mabuza.

“Those who got involved in impropriety and thieving ended up in Parliament and said Mr Koko stole … they did so to cover themselves up,” Koko said.
“They knew what they were doing. So no I don’t trust the people that I worked with.”

Koko also said he had attempted to enforce controls to prevent impropriety, saying he identified irregularities at the Medupi and Kusile power stations which he noted were Eskom’s primary loss makers.

“I dealt with it. I moved the people around. I was suspended for that. I was suspended for dealing with corruption,” he said.

The interview dealt extensively with allegations levelled by Mabuza at the Zondo commission, where he revealed details of the nearly a dozen emails sent to a third party who was using the email address [email protected]. The address is widely deemed to have been used by Gupta lieutenant Salim Essa.

More at: https://mg.co.za/article/2019-03-11-matshela-koko-i-am-a-victim (Warning a link on the side contains a picture of a child breastfeeding)