We now have all the pieces of the State Capture puzzle with the release of the third report compiled from the evidence given at the Zondo Commission. Part three focuses entirely on the corrupt dealings of Bosasa and some of the central figures that benefited from the company’s bribes.
The report found that Bosasa was awarded around R2.37 billion in government contracts between 2000 and 2016 and that Jacob Zuma was the most senior government official that Bosasa tried to influence.
Part three carries acting chief justice Raymond Zondo’s most significant findings against Zuma to date while it also states that there are prima facie corruption cases against ANC chairperson Gwede Mantashe and former minister Nomvula Mokonyane.
“The evidence reveals that there was widespread corruption in the awarding of contracts and tenders to Bosasa, and its associated business entities or organisations, by government departments, SOEs, agencies and entities.
“Members of the national executive, public officials and functionaries of various organs of state influenced the awarding of tenders to benefit themselves, their families or entities in which they held a personal interest,” the report found.
Some of the key highlights from part three include:
- Mineral resources minister Gwede Mantashe benefited from Bosasa’s “corrupt modus operandi”.
- Nomvula Mokonyane should be investigated for corruption
- Jacob Zuma must be investigated for corruption after Bosasa gave money for his parties and foundation.
- Corruption was central to Bosasa’s business model as Zondo says ministers, public officials enriched themselves.
- There was substantial corroboration for the “main pillars” of former Bosasa COO Angelo Agrizzi’s evidence.
- Bosasa directors Leshabane and Gumede must be prosecuted for the “corrupt” ANC “war room” deal.
Agrizzi gave evidence that Bosasa paid the Jacob Zuma Foundation R300,000 a month via former SAA board chairperson Dudu Myeni and that the money was splashed on lavish birthday parties for the former president.
“Even if the evidence of the R300,000 payments were to be ignored, there is clear and convincing, non-hearsay evidence, confirmed by Ms Myeni, that Mr Zuma received the benefit of lavish spending by Bosasa on his birthday functions,” the report read.
Agrizzi was one of the most explosive witnesses at the commission and during his testimony, time and again, he would be forthright and openly incriminate himself in the corrupt practices he took part in along with former Bosasa CEO, the late Gavin Watson.
Agrizzi said there was not a single government contract that Bosasa obtained without paying a bribe for and that the company would shell out between R3 million and R6 million a month in bribes.
His testimony was aided by the sheer amount of evidence he had in the form of video recordings and a detailed account of the bribery all neatly recorded in his “little black book”. While his testimony was not without fault and Zondo is careful not to paint Agrizzi as an unimpeachable witness in part three of the report.
Zondo noted that at times Agrizzi’s testimony was contradicting and while it has not been mentioned in the report, in some of the video evidence, Agrizzi can be heard using the k-word in reference to two black men.
Critics have said that Agrizzi’s testimony may have been racially motivated and because of the falling out he had with his ex-boss Watson, but Zondo found that on the central pillars of Agrizzi’s evidence he was credible.
As for Dudu Myeni, the monthly R300,000 bribes were always paid in cash and never via EFT while Watson handed her a Louis Vuitton bag stuffed with cash at one point.
Agrizzi said Bosasa targeted Myeni because she had influence and was powerful. When the Hawks began investigating Bosasa for corruption, Watson attended meetings at Zuma’s homestead, Nkandla, where Zuma told Watson he would “make a call or two” according to evidence given at the commission.
In September 2015, Watson and Agrizzi met with Myeni at the Sheraton Hotel in Pretoria where she informed them that she was arranging for the National Prosecuting Authority to drop the case against Bosasa and pulled out a police docket.
Agrizzi took photographs of the docket on the hotel floor, which made Myeni nervous, testified Agrizzi.
Time will tell now if the NPA will use all the evidence and recommendations gathered by the trilogy of State Capture reports to investigate and prosecute those responsible for the mass scale corruption that nearly brought South Africa to its knees.
New Investigating Directorate head, Andrea Johnson, is going to have her hands full.
In the markets, risk aversion is this morning’s tactic as Russia pushed forward with its attacks on Ukrainian cities. “The dollar is stronger; equity markets are weaker; commodities are on the front foot, while the oil price broke above $110,” comments forex trading house TreasuryONE.
The rand opened at R15.40/$ and will battle to get below the R15.25/$ mark.
“Today movements will once again be headline-driven and guided by moves in the major currencies. The Russian Ruble hit a new all-time weakest level of 117.00 against the dollar yesterday,” says TreasuryONE.
Gold surged to $1,949 before closing at $1,943, up 1.8% on the day. Palladium ended 3.6% stronger at $2,580 while Platinum was up at $1,053. Gold and Platinum are relatively unchanged this morning, while Palladium has gained a further 2.0% as supply concerns from the world’s largest producer, Russia, drive the price higher.
Here’s a roundup of the world’s top and most interesting headlines:
SA Business
Alternative petrol price model proposed for South Africa – BusinessTech
Ukraine conflict dashes hopes for SA bounce-back to pre-pandemic levels in 2022, Parly hears – Fin24
Government wants to start tracking people leaving South Africa – Cape Business News
Global Business
Tackling inflation is ‘top priority’, says Biden in State of the Union address – The Guardian
Boeing Halts Moscow Operations, Restricts Data Access in Russia – Bloomberg
Cargo ship carrying Porsches, Lamborghinis, and Bentleys sinks in the Atlantic – The Verge
Markets
Gold Down, Dollar Strengthens as Russia’s Invasion of Ukraine Intensifies – Investing.com
Asian Stocks Down, Oil jumps as Investors Concerned Tightening Russia Sanctions – Investing.com
Oil tops $110, equities sink on rising Ukraine war fears – AFP
Tech
Read Tim Cook’s email to employees on Ukraine – The Verge
Apple halts all product sales in Russia and removes RT and Sputnik from app store – The Independent
In unprecedented move, Facebook demotes Russian state media across its platforms, worldwide – Business Insider SA
Caption: Deputy Chief Justice Raymond Zondo. Image: GCIS
