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Who is in the firing line after the Zondo report?

South Africa

DAYS OF ZONDO

The List: The people and businesses the State Capture Commission recommends for prosecution by the NPA

President Cyril Ramaphosa receives the first part of the report of the Judicial Commission of Inquiry into Allegations of State Capture from the Commission’s Chairperson, Acting Chief Justice Raymond Zondo on 4 January 2022 at the Union Buildings. (Photo: Alet Pretorius)

In the first volume of Judge Raymond Zondo’s report on State Capture, about 20 individuals are mentioned by name as warranting possible prosecution by law enforcement agencies. Those names include Dudu Myeni, Brian Molefe and Tom Moyane – but exclude former president Jacob Zuma, even though he comes in for harsh criticism.

The recommendations made by Judge Raymond Zondo based on the hearings of the Commission of Inquiry into State Capture are just that – recommendations. There is no automatic action that will follow from the publication of the first instalment of what will be a three-part Zondo Report.

In December 2021, meanwhile, National Prosecuting Authority (NPA) head Shamila Batohi warned that an underfunded and overburdened NPA would be unable to prosecute all cases emanating from the Zondo Commission, and would have to pick and choose for maximum impact. 

The first volume of the report advises the NPA to “consider” – and in some places, “seriously consider” – prosecutions against about 20 individuals and firms implicated in State Capture around South African Airways (SAA), the Guptas’ The New Age newspaper sponsorship, and the South African Revenue Service (SARS). 

Here follows a summary of Judge Zondo’s recommendations thus far:

1. SAA

People or companies the NPA should consider prosecuting for fraud or corruption:

  • Former SAA chair Dudu Myeni
  • “The individuals” responsible for securing millions of rands “for the personal benefit of Ms Myeni and the Jacob Zuma Foundation”.
  • JM Aviation directors and members of the board of SAA Technical (Saat)
  • Vuyo Ndzeku, former JM Aviation director
  • Yakhe Kwinana, former SAA board member
  • Lindelwa Mbanjwa, Kwinana’s lawyer
  • Nontsaka Memela, former Saat procurement head
  • Phetolo Ramosebudi, former Acsa group treasurer
  • Eric Wood, Regiments director
  • Niven Pillay, Regiments executive
  • Phumeza Nhantsi, former SAA CEO
  • Vivien Natasen, director of Neo Solutions
  • Swissport
  • Daluxolo Peter, businessman
  • Vuyisile Ndzeku, former JM Aviation director
  • Lester Peter, SAA former head of procurement
  • Officials at the North West Department of Transport
  • Mr Indheran Pillay, Regiments executive
  • Mr Tewedros Gebreselasie, Regiments executive
  • Moss Brickman, Nedbank head of credit and international derivatives
  • Mario Visnenza, Nedbank executive
  • Nedbank

 Professional bodies asked to sanction members:

  • The Legal Practice Council should investigate Nontsasa Memela and Lindelwa Mbanjwa with a view to potentially removing them from the legal roll.
  • The South African Institute of Chartered Accountants (Saica) should investigate whether Yakhe Kwinana is “fit and proper” to practise as a chartered accountant.

Attempts to recover funds:

  • Asset Forfeiture Unit (AFU) to recover funds paid to and by Regiments Capital
  • AFU to investigate recovering Nedbank’s profits under interest swap contracts with Regiments
  • AFU to recover any other amounts “that constitute the proceeds of unlawful activities”

Other important recommendations:

  • Parliament should consider extending the time limit on declaring delinquent directors. This currently stands at two years, but if extended could allow Dudu Myeni and Yakhe Kwinana to be declared delinquent even retrospectively.
  • The president should ensure that the State Security Agency does not have its services abused to serve certain agendas.
  • Auditor-General’s office needs more money to audit SOEs so that it can, ideally, undertake this work without involving private audit firms.

Key Quote:

“President Zuma fled the Commission because he knew there were questions that would be put to him that he would not have been able to answer.”

Read a full account of the SAA-related findings here: https://www.dailymaverick.co.za/article/2022-01-05-state-capture-inquiry-recommendations-npa-urged-to-probe-dudu-myeni-and-other-saa-top-brass-for-criminal-activity/ 

2. SARS

People the NPA should consider prosecuting:

  • Former SARS head Tom Moyane, with perjury relating to his “false evidence” to Parliament.
  • Individuals involved with the awarding of contracts to Bain & Co, with corruption.

Other important recommendations:

  • All Bain’s contracts with government should be re-examined.
  • The SARS act should be amended to make the SARS Commissioner appointment process more transparent.

Key Quote:

“The only feasible conclusion is that [SARS] was deliberately captured and President Zuma and Mr Moyane played critical roles in the capture of SARS and dismantling it.” 

3. The New Age

People the NPA should consider prosecuting:

  • Rajesh “Tony” Gupta, on the basis of evidence from former SAA CEO Vuyisile Kona that Gupta offered him a bribe initially of R100,000 and later R500,000, which Kona rejected.
  • Former Transnet CEO Brian Molefe for fraud “and/or contravention of the PFMA [Public Finance Management Act]”.
  • The 2015 Eskom board members should be investigated before determining potential charges against them.
  • Former Eskom CEO Collin Matjila – who insisted Eskom enter into a long-term contract with The New Age –  for fraud “and/or contravention of the PFMA”.

Key Quote:

“The evidence before the Commission paints a picture of a calculated strategy by the Guptas to appropriate public funds from state-owned enterprises.” 

4. Zondo’s general recommendations on public procurement:

  • The publication of a National Charter against corruption, which would include a Code of Conduct setting out ethical standards which must legally be adhered to in public procurement;
  • The creation of an anti-corruption agency dealing with public procurement. This would comprise a five-member council, an inspectorate, a litigation unit, a tribunal and a court, and would monitor public procurement activity for corruption;
  • The strengthening of protection for whistle-blowers and allowing them to financially benefit from disclosures;
  • The deferral of prosecution of corporations if they cooperate fully and pay a fine;
  • The creation of a professional body for procurement officers, from which individuals may be struck for misconduct;
  • The enhancement of transparency in public procurement;
  • The strengthening of protection for accounting officers or authorities acting in good faith;
  • The strengthening of the Prevention and Combatting of Corrupt Activities Act to help combat bribery;
  • The criminalising of making donations to political parties in exchange for a tender; and
  • The introduction of stronger and more specific legislation relating to public procurement, including greater centralisation and better training for public procurement officials. DM
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All Comments 14

  • South Africa should be very grateful to Judge Zondo for his courage in speaking out against the criminals associated with Zuma and his gang.

    Maybe the President will grow a pair and do something at last. Not everyone in the ANC and their allies can be dishonest………..surely?

    • Absolutely agree with you Peter. He has done a great job under difficult circumstances (between a political rock and political hard place) and has maintained his integrity throughout.
      Also commendations to his team who worked long hours to investigate and lead evidence.
      #Zondo for chief justice!

  • Not a single one of these recommendations will contribute to the prosperity of SA while the anc is in government. All institutions will simply become fiefdoms of the cadres deployed to run them.
    The AG has no teeth to prosecute delinquent public employees loyal to the anc, they just get moved/promoted when caught.

  • There seems to have been no mention of the Government of the PRC and its active involvement in – seemingly knowingly – paying bribes in connection with that huge contract for (useless) rolling stock, locomotives… As was reported in DM sometime in March or April 2021! (An article which – at the time – stunned and shocked me!).
    BUT – there are still volumes II and III coming… :-). Maybe…

  • Are there frameworks for the next reports’ sections? It will be very interesting to see what is said about the complicity of the state owned Chinese locomotive suppliers in the 60% price increase in locomotives and the ten billion China paid in facilitation fees to the Gupta companies in Hong Kong.

    That theft makes Transnet’s R40m to TNA look like pocket money.

    One imagines that our comrades in China will refund the corrupt price element plus interest plus a suitable fine to Transnet and use whatever means to get back those funds from their business partners.

  • Wow – another massive and expensive structure to do what is already supposed to be done by the SAPS and NPA.
    Here we are, trying to implement a cosy, advanced social system with all the right-sounding words and structures, cuddled up in cotton wool and guarantees of rights, when in fact we are dealing with ruthless, calculating criminals who actually resort to all means including assassination to get their way and preserve their lifestyles.
    Bring on public floggings for bribery and corruption, plus the triple back rule on theft – you steal something, you pay it back threefold.
    Spend the money on rooting out the inept and corrupt members of the SAPS and NPA – don’t waste it on yet another institution with a charter and a “to do” list that will actually never get done.

  • Since the NPA has either shown itself to be still deeply ‘captured’, fractured or riddled with a startling lack of actual ability ( we won’t get into the quiet suggestion by Glynnis Breytenbach on tactics of how to timeously ACTUALLY prosecute cases you can win). Perhaps the commission chair should as his final act also sign a few warrants and make the actual request for a red notice from Interpol for the Gupta brothers and associates now in the wind, that Adv. Cronje claimed she’d done months ago.

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