The President urges all parties to act as guided by the Constitution and respect the processes that are unfolding in respect of the Report.
PRETORIA, South Africa, November 11, 2016 – The Presidency is concerned about continuing public statements by the former Public Protector Adv Thuli Madonsela on matters relating to President Jacob Zuma and the report entitled State of Capture.
Adv Madonsela has discharged her duties as the Public Protector and has no further role to play in the process regarding the said Report. Her unwarranted public attacks on the President, as happened in Stellenbosch on Thursday, are unbecoming and are not helpful. It would be prudent therefore, for the former Public Protector to step back and allow legal and constitutional processes to unfold unhindered.
The Presidency remains concerned as well by the leaking by Adv Madonsela to television channel ENCA, of her discussion with the President to the ENCA television channel. This conduct has serious implications with regards to ethics, confidentiality and the protection of information gathered during investigations by the Office of the Public Protector. It is also not clear why Adv Madonsela decided to leak only the audio recordings of the discussion with the President despite the fact that she had interviewed several witnesses.
The President urges all parties to act as guided by the Constitution and respect the processes that are unfolding in respect of the Report.
The African National Congress has today finally lost their way, the National Assembly and the Constitution of the Republic of South Africa doesn’t’ matter to them. The ANC has decided to counter all of that as the No Confidence vote where happening today. 214 voted against it, 126 voted for it, 58 didn’t vote and one abstained.
This Vote of No Confidence came from the Democratic Alliance Member of Parliament Hon. John Steenhuisen, which we’re filed in on the 7th November 2016, so that today the National Assembly could vote in session on the 10th November 2016. Something at as suspected got silenced by the ANC.
So, today the ANC for the Second time has bailed out their President Jacob Zuma. Last time was after the revelation of the “Spy-tapes” and the 700 counts of Corruption on the current Executive of the Nation. Therefore the conducted result today wasn’t shocking; it was more the new-normal.
The ANC has forgotten its heritage, roots and why it exists. In June 25-26 in 1955 Kliptown, Johannesburg, the ANC made the Freedom Charter which stated:
“We, the People of South Africa, declare for all our country and the world to know; that South Africa belongs to all who live in it, black and white, and that no government can justly claim authority unless it based on the will of all people; that our people have been robbed of their birthright to land, liberty and peace by a form of government founded on injustice and inequality; that our country will never be prosperous or free until all of people live in brotherhood , enjoying equal rights and opportunities; that only a democratic state, based on the will of all people, can secure to all birthright without distinction of colour, race, sex or belief; And therefore we, the People of South Africa, black and white together – equals, countrymen and brothers – adopt this Freedom Charter. And we pledge ourselves to strive together sparing neither strength nor courage, until the democratic change here set out have been won”.
“All shall be Equal before the Law No one shall be imprisoned; deported or restricted without a fair trial; No one shall be condemned by the order of any Government official; The courts shall be representative of all the people; Imprisonment shall be only for serious crimes against the people, and shall aim at re-education, not vengeance; The police force and army shall be open to all on all equal basis and shall be helpers and protectors of the people; All laws which discriminate on grounds of race, colour or belief shall be replaced”.
This is the key aspects of the 1955 Freedom Charter, that is key document for the ANC, which is the liberation movement, spurred political party that been running the government since the end of Apartheid in April 1994 when Nelson Mandela became the first post-Apartheid President voted by the people and for the people with majority, not for the white minority.
So today, we’re the clock turned back and the majority, the people didn’t matter and again the Freedom Charter been stepped on by the current ANC leadership and the current President Zuma. The ANC doesn’t care about the value of their history or heritage as the one thing matters that are that Zuma stays in power and the ANC elite eats. President Zuma uses the ANC party as a tool to gain coins and riches… to get the wealth without caring about the laws and legislation that it effects. The People are paying the taxes and the ANC elites are eating of the plate delivered by them without care or consideration of the implication.
The ANC are now a skeleton of the historical party that regain the democratic state and prosperous nation that South Africa could be. It’s now a fallen relic of the past, it is still a viable party, but the heritage and the legacy of what it has done now has tarnished and is not the current party. The ANC isn’t the ANC of the past, by all means the same people are not there and that wouldn’t be possible. The ANC Veterans, ANC Stalwarts and the ones deceased will always be remembered for their work.
ANC’s Zuma are corrupted and only their power, not for the people or for the greater good. The Freedom Charter of 1955 is only pieces of paper towards the ones leading the party today. So with this knowledge at hand, the dreams of ANC and the ones while being prosecuted, detained, arrested and killed for their belief in just society on good governance values. Instead the ANC became cronies who let them eat together with investors instead of building the nation.
Each step of the way, they have now under the Second Term of President Zuma forgotten their history, their will to change and instead bought into the enigma of ruling party without consequence for their actions. They are showing now to the world that the proud liberation party is now a front for corruption, embezzlement and disregard for its own laws and constitution. This to save the face of the Third President since 1994; even President Thabo Mbeki entered and eaten, therefore left the gates open for Zuma and his fellow comrades to eat.
“As more evidence is revealed it has become clear that despite Mbeki and the ANC claims of no corruption in the arms deal, evidence has revealed corruption right through to the top of the ANC. Feinstein argues that in the end the Presidency was responsible for ending any investigation and pressuring the auditor-general to change the report critiquing the deal. The presidency was also involved in smothering all investigations by the national director of public prosecutions because of the ANC’s possible acceptance of bribes to fund its election campaign” (Chad Ellis Klippenstein – ‘LEADERSHIP AND THE ANC: THE THABO MBEKI ERA IN SOUTH AFRICA’ June 2009).
Just like the Presidency under Zuma undermined the Hlaudi Motsoeneng report ‘State of Capture’ No.6. of October 2016. That we’re telling of the evidence put forward and collected while being the Public Protector in South Africa under the Zuma Administration. Hence, therefore the Zuma suspended the release of the report. To silence the critics and evidence of the connection between the government of South Africa and one family who has invested heavy in different parts of industry; these being all from energy industry to the other businesses their currently involved in the great nation.
So the Republic is now is a shallow shell of what they old-ANC wanted, the ANC Veterans and ANC Stalwarts maybe wants it to be; what the ANC ones wanted to be, but is not now. They are a ruling regime who has forgotten the past; they have forgotten their values and gotten greedy. They are not in the spirit as they fought for liberation or governance for the People of South Africa. African National Congress, could been a nobleman and a proud party, but what they are under Zuma is disgraceful to the legacy and history of South Africa. Also the party itself; President Zuma has forgotten where he came and now eats of plates that isn’t his and expect to get away because he is who he is.
Zuma, the one that eats of the other people’s plates without any consideration of their hunger or needs; that’s what is left behind… that is what is the ANC elite and ANC Government of our day. Not the ones who created it or the ones who wrote the Freedom Charter in 1955. Over a 100 years and counting, the party of ANC!
Zuma, the ANC and the National Assembly has forgotten their role, their place and their status as representatives of the people, they have forgotten why they are Members of Parliament; most of all the President has forgotten his place and role in society. Peace.
Following failed attempts by Optimum to renegotiate and extend the coal supply agreement for the Hendrina Power Station at prices higher than the R150 per ton contractual agreement, Optimum later proposed a “compromise deal”. In terms of the proposed deal, the coal supply agreement to the Hendrina power station would be renegotiated at R300 per ton until 2018, and thereafter be extended to 2023 at R570 per ton.
In a letter dated 30 June 2015, Optimum said: “The base price for the first period and second period shall be escalated on each anniversary of the base date in accordance with a price adjustment factor which is to be calculated in accordance with an escalation table to be agreed between Eskom and Optimum.”
In another letter dated 17 September 2015, when Optimum was under business rescue, they proposed a price increase of R630 per ton and a coal supply agreement extension until 2023.
In that letter, the business rescue practitioners proposed a coal price increase of R443 per ton with effect from 1 October 2015 to 31 December 2018. Thereafter the price would increase to R630 per ton until 2023.
Eskom was not involved in the sale agreement between Glencore and Tegeta. All Eskom was interested in was to ensure that the new owners were aware that the coal prices, volumes and quality would not be renegotiated or compromised, and that the penalties imposed on Optimum would not be waivered. Nothing has changed since then even though Optimum Coal Mine is under new management.
Mr Ajay Gupta apparently stated that tell us “where the funds are and inform the departments to provide the funds to you and if they refuse, we will deal with them. If you have a problem with any department, we will summon ministers here” (State of Capture, P: 98).
If you ever thought that the President Jacob Zuma would not have to carry hot water for somebody, than you are wrong. The man with as many alleged Counts of Corruption as there days over two years. That President suspended the last Report made by the Public Protector Hlaudi ‘Thuli’ Madonsela on the 14th October had to have some information that we’re damaging to the Executive, the African National Congress and his connects. The Connects that are family friends of the President, hired his family members and are making sure the Zuma family owns parts of the businesses of the Gupta families as well.
What is in the Report is staggering and damaging, but the connection between the Presidential Family and the Business Family of Gupta has been known. The scandals have already been in the wind, what this does is to amplify the suspicious and the proof of the alleged connection. More and more evidence proves that the Gupta could and understood themselves as King-Makers.
So the Finance Minister mystery of 2015 has more flesh on the bone and the reports from the Media, shows the reality we’re proof, but now there are through investigation some truth behind the questionable sackings made in the name of the Guptas!
Also the transactions, selling and agreement between Eskom, Optimum and Tegeta; as well as the banking operations, loans and pre-payment of the coal that been handled in suspicious ways between Eskom and the Gupta owned enterprises together with the selling of prime estate for the balances of profit to the Gupta family and Tegeta.
Here is the some takes from the report!
Finance Minister Woes:
“It is worrying that the the Gupta family was aware or may have been aware that Minister Nene was removed 6 weeks after Deputy Minister Jonas advised him that he had been allegedly offered a job by the Gupta family in exchange for extending favours to their family business” (…) “Equally worrying is that Minister Van Rooyen who replaced Minister Nene can be placed at the Saxonwold area on at least seven occasions including on the day before he was announced as Minister. This looks anomalous given that at the time he was a Member of Parliament based in Cape Town” (…) “Another worrying coincidence is that Minister Nene was removed after Mr Jonas advised him that he was going to be removed” (State of Capture, P:14-15).
“It appears that the Board at Eskom was improperly appointed and not in line with the spirit of the King III report on good Corporate Governance” (State of Capture, P:19).
On Eskom contracts:
“In light of the extensive financial analysis conducted, it appears that the sole purpose of awarding contracts to Tegeta to supply Arnot Power Station, was made solely for the purposes of funding Tegeta and enabling Tegeta to purchase all shares in OCH. The only entity which appears to have benefited from Eskom’s decisions with regards to OCM/OCH was Tegeta which appears to have been enabled to purchase all shares held in OCH. The favourable payment terms given to Tegeta (7 days) need to be examined further. OCM clearly had 30 day payment terms with Tegeta for the supply of coal to Arnot Power Station, and Eskom appears to have been aware of this. It also appears that Tegeta did not meet all its obligations to OCM as OCM was owed R 148,027,783.91 by Tegeta as at 31 July 2016 and an amount of R 289,842,376.00 as at 31 August 2016” (…) “The prepayment to Tegeta in the amount R659 558 079.00 (six hundred and fifty nine million five hundred and fifty eight thousand seventy nine rand) inclusive of VAT, may not be in line with the PFMA. This is evidenced in the BRP’s section 34 report in which it is stated that the prepayment was not used to fund OCM, it is further emphasised in the financial analysis which shows the prepayment was used entirely for the purposes of funding the purchase of all shares in OCH. On 11 April 2016, Tegeta informed the BRP’s and Glencore, who in turn informed the Loan Consortium that they were R600 million short, on the very same day, Eskom held an urgent Board Tender Committee meeting at 21:00 in the evening to approve the prepayment which was R659 558 079.00 (six hundred and fifty nine million five hundred and fifty eight thousand seventy nine rand and 38 cents) inclusive of VAT” (…) “Tegeta’s conduct and misrepresentations made to the public with regards to the prepayment and the actual reason for the prepayment could amount to fraud. Furthermore, the shareholders of Tegeta (Oakbay, Mabengela, Fidelity, Accurate and Elgasolve) pledged their shares to Eskom in respect of the prepayment and thus knew of the nature of the transaction” (…) “It appears that the conduct of Eskom was solely to the benefit of Tegeta, in that they forced the sale of OCH to Tegeta by stating that OCM could be sold alone. Thereafter, it appears, they have allowed Tegeta to proceed with the sale of a portion of OCH in the form of the Optimum Coal Terminal. This may constitute a contravention of section 50(2) of the PFMA in that they acted solely for the benefit of one company” (State of Capture, P: 20-21, 24).
“Optimum has for a consecutive period from 1 March 2012 to 31 May 2015 (the “Supply Period”), failed to supply and deliver to Eskom coal which meets the quality parameter contemplated by clause 3.4 of the First Addendum. The coal supplied and delivered to Eskom, amongst others, failed to comply with the sizing specifications, in that 20% to 45% of the coal supplied and delivered to Eskom by Optimum on a monthly basis, during the Supply Period, was smaller than 0.81mm. Despite this failure by Optimum, Eskom has, without prejudice to its rights in terms of clause 3.6 of the First Addendum, paid Optimum for such coal, without applying any adjustment or reduction to the payment, for Optimum’s failure to comply with the quality parameters, even though Eskom was entitled to adjust or reduce the payment accordingly.” (…) “Eskom has done a calculation of the reduction to the purchase price that Eskom was entitled to impose on the payment to Optimum for the coal supplied and delivered during the Supply Period, which failed to comply with the quality parameters in clause 3.4 of the First Addendum. The reduction Eskom is entitled to impose on the purchase price to Optimum for the Supply Period amounts to R2,176,530,611.99 (two billion one hundred seventy six million five hundred and thirty thousand six hundred and eleven rand and ninety nine cents).” (State of Capture, P: 148-149).
“We have come to learn from the Episodes, Interview and Articles that the Pre-Payment was approved by a committee of Eskom representatives at a meeting held at 21h00 on 11 April 2016. This meeting was held on the same day on which the request for the bridging finance was made to, and rejected by, the Consortium of Banks” (…) “We confirm that the Pre-Payment was not made to OCM and that OCM provides a 30-day payment term to Tegeta for the delivery of coal, on behalf of Tegeta, to the Arnot Power Station” (…) “Whilst we have delegated authority to make payments in the ordinary course of OCM’s trade and business to the management of the OCM, in terms of section 140(1)(b) of the Companies Act, the transfer of R90 000 000 does not fall within the scope of such delegation of authority and accordingly required our authorisation” (…) “However, for your benefit, we have prepared a reconciliation of the net amount (which includes the R 90 000 000 referred to aforesaid) that we believe is payable by Tegeta to OCM” (…) “In the circumstances, we are instructed to advise you that the amount of R 43 492 349 is to be transferred forthwith into the bank of account of OCM, failing which our clients may need to seek legal redress for the transfer of such amount” (State of Capture, P: 186-188).
“Oakbay/Tegeta, reiterated that they did not think they could settle the full amount. They wished to borrow a portion of the funds from the Loan Consortium. It was implied by Mr Ajay Gupta, during said meeting with the Loan Consortium, that they would find that Oakbay/Tegeta is the only party who would be capable of purchasing this entity as well as obtaining the necessary approvals from (Approvals from Department of Mineral Resource and Eskom). The Loan Consortium still maintained that they require settlement to the full amount of the loan” (…) “On 10 December 2015 the BRP’s returned to the Loan Consortium and stated that Oakbay/Tegeta had agreed to pay R2.15 billion and Glencore would pay the remaining amount for the loan” (…) “On 11th April 2016, a meeting was held between the Loan Consortium and the BRP’s. At the meeting the BRP’s informed the Loan Consortium that Tegeta informed them on the same day that they were short R600 million. The BRP’s stated that they were informed that offshore funds were no longer coming in for Tegeta and thus they were short R600 million. It was requested that the Loan Consortium either defer or loan the balance of R600 million. They also offered to cede their receivables from Arnot power station for a period of 3 months and 15 days. The Loan Consortium rejected all these offers and wanting their loan paid in full” (…) “On 14th April 2016, the Loan Consortium received the full amount of the loan which was owed to them (This means that both Tegeta and Glencore satisfied their full monetary obligations in terms of this agreement)” (State of Capture P: 264).
“An agreement was signed with Tegeta for the sale of all shares held by OCH. One of the requirements for the sale to go through was that Eskom would provide a release of the guarantee held against OCH” (…) “Tegeta asked for a concession of R600 million in terms of the purchase price of all shares in OCH. The BRP’s approached the Loan Consortium and they declined to accept a reduced amount for the loan” (…) “Mr Howa’s statements created the impression that Tegeta’s accounts were closed. However, account holder information confirms that at the time of the Tegeta deal, Tegeta held accounts with Nedbank and First National Bank. The accounts were active and were used for transaction purposes” (…) “On 04 March 2016 the Bank of Baroda issued an untitled letter to FirstRand Bank limited setting out that Tegeta was its client and that it would affect payment of R2.15 billion on certain conditions including obtaining by 30 March 2016” (…) “However, financial analysis confirms that the Bank of Baroda did not grant a loan to the value of R2.15 billion to Tegeta to purchase OCH. Tegeta raised the funds to pay the Loan Consortium from various sources. All funds were deposited via at least thirty-two (32) Electronic Funds Transfers (“EFTs”) between 09 December 2015 and 14 April 2016 into the Bank of Baroda. The Bank of Baroda then effected payment on behalf of Tegeta on 14 April 2016 into the Escrow Account held by Werksmans Incorporated” (State of Capture, P: 265, 272, 273).
Critical Connection between Gupta’s and the Companies:
“As mentioned above, there appears to be a clear line of communication between Mr Molefe, the Gupta family, and directors of Tegeta (Ms Ragavan and Mr Howa). These communications were made during a critical period and cannot be ignored” (State of Capture, P: 315).
“Further evidence of the apparent prejudice caused by Eskom, is that once the sale agreement was signed in December 2015, Tegeta appears to have easily managed to secure lucrative contracts to supply coal to Arnot Power Station with coal from OCM. This essentially increased the financial stability of OCM and decreased Tegeta’s obligations of PCF to OCM” (…) “Tegeta has entered into the sale of Optimum Coal Terminal and, according to Mr Ajay Gupta, stands to make a profit of approximately $150 million. It is unclear as to why Eskom has now allowed Tegeta to sell an asset which it previously deemed vital to subsidise OCM. Eskom had made its point clear in that OCM, Koornfontein and Optimum Coal Terminal needed to be kept together and cannot be sold separately” (State of Capture, P: 341).
Mr. Jonas meets Ajay Gupta:
“Mr Ajay Gupta informed Mr Jonas that they were going to make him Minister of Finance. Mr Jonas reported that he was shocked and irritated by the statement” (…) “Mr Ajay Gupta continued to speak. He disclosed names of “Comrades” they were working with and providing protection to. He mentioned that collectively as a family, they “made a lot of money from the State” and they wanted to increase the amount from R6 billion to R8 billion and that a bulk of their funds were held in Dubai” (…) “As Mr Jonas was walking towards the door, Mr A. Gupta made a further offer of R600 million to be deposited in an account of his choice. He asked if Mr Jonas had a bag which he could use to receive and carry R600,000 in cash immediately, which he declined” (…) “Immediately after the meeting, he informed former Minister of Finance Mr Nhlanhla Nene. I later also informed current Minister of Finance Mr Pravin Gordan and Mr Zweli Mkhize of the ANC about the offer” (State of Capture, P: 93-95).
“Having had regard to the wider allegations including the allegations that members of the Gupta family are involved in the appointment of Cabinet members, I reviewed the telephone records of Mr Van Rooyen to establish his whereabouts on 8 December 2015, the day Mr Nene was informed by President Zuma that he will be removed as Minister of Finance” (State of Capture, P: 104).
If this wasn’t interesting, the findings of the Public Protector of South Africa, than I don’t know, this shows what kind of game the Gupta Family has done together with the President Zuma, that he can be corrupted is for sure and that he doesn’t plan to respect his place and his position. Zuma has sold away and used the rich investors to gain riches and ownership into businesses that deals with Government Corporations that even steadily create wealth for the ones that deliver services back it. Like Eskom needs Coal to their Power Plants and that has been sold from companies that are even connected with Gupta, that are complied with the internal connection in Eskom and the reasoning for selling it and also opening up questionable transactions. That has been showed. So the Oakbay, Optimum, Tegeta are parts of the ownership of Gupta family and even some has ownership by the Zuma family. So the connections between that and the ability to appoint Eskom board, show the problems of the Executive taking too much power.
Also the questionable hiring and firing the Finance Minister in December 2015; that is clearer, but still the Executive and President Zuma have questions to ask as he has failed to deliver any sort of explanation, even to the Public Protector as they just got shuffled away like bad fish. Just let this entire report sink in! Peace.
South Africa Public Protector – ‘State of Capture’ Report No. 6 of 2016/17