It is now formed a commission to look into the ‘State Capture’ Report, which entails the allegations of fraud, corruption and of crimes done against the Republic of South Africa. This has been done by the President Jacob Zuma, his family and associates combined with business operations run by the investor family of Gupta’s. The stories and allegations has been running in the recent years, and more and more of the allegations has been verified. The close connected businesses and operations of the state, the tenders and state reserves used to boost businesses run by the family. All of this is now further investigated after dozens of trials and other legal remedies.
The Commission, which was signed in and enacted on the 23rd January 2018 is to be headed by Justice Raymond Mnyamezeli Mlungisi Zondo. This Commission is finally coming after the final verdict in December 2017:
“The Commission shall inquire into, make findings, report on and make recommendations concerning the following, guided by the Public Protector’s state of capture report, the Constitution, relevant legislation, policies, and guidelines, as well as the order of the North Gauteng High Court of 14 December 2017 under case number 91139/2016” (STAATSKOERANT, 25 JANUARIE 2018).
I never anticipated that this would happen, because Zuma and his associates have tried to stall the inquires and all sort of serious investigations, they have used all sort tricks to silence and stop finding problematic relations between Oakbay and other businesses owned by Gupta family in South Africa. They have tried to stall the previous Public Protector and the Report itself. Just like the Eskom report from Dentons was archived for years before it was published. Clearly, the transparency and the lack of oversight, by the control of the Zuma administration has been evident in the cases concerning Gupta and their pay-offs, kickbacks and hiring of family members of the President.
This investigation of the Commission will look into the mysterious firing and the hiring of Finance Ministers, the period of three Finance Ministers within short time and if the Gupta associates had anything in connection with this sort of weird acts from the Zuma Presidency. It will also look into the tenders of State Owned Enterprises (SOE) and if they have been given on basis of best offerings and after lawful practice, or if they have been given on basis of envelopes between the Zuma and Gupta’s. It will also look into the possible control of the New Age Newspaper and their advertisements, if this has swayed opinions or if the government sponsored has changed dynamics. If the appointments of certain individuals to National Treasury, the same fellow who was shortly appointed to Finance Minister Des Van Rooyen. All of these acts and if the Gupta’s had a say in the changes in policy and businesses. If the family could connect and pay-off government officials, to change the cabinet and also the tenders benefiting their new industry and operations.
So the basis of the Public Protectors report ‘State of Capture’ will now be further investigated and the prosecution of it can happen at a later stage. The mere heresay, will now be discussed, the people involved will be interviewed and also possibly indicted if the Justice Zondo sees it fit. The evidence will be collected and the cases will be built by the Commission, which will report within 180 days, the truth is that the allegations will now be put in print. The allegations and the corrupt behavior that has been will be investigated further. Not only unleashed in the papers and the receipts as well. The Gupta Family businesses and their holding companies, will be questioned, as well as the communications between them and the Zuma administration. How many of the Zuma family hired by Gupta’s and how many who has traveled on Gupta’s tab. That will be unfolded. Just like it has, but in system and with vigor, hopefully, since this kind of activity has tarnished the Zuma Presidency, together with abysmal village project at Nkandla.
Zuma will be in deep water, he is already trying to walk on it like Jesus. But he isn’t Jesus, he is just a man, he will drown if he tries. There is enough proof of a conspiracy and enough smaller evidence of fraud and corruption between the state and the Gupta’s. It’s not just Mmusi Maimane and Julius Malema, who is crazy crying out loud in public, its real.
The Commission will prove it, if they start digging and use the allegations and build on the proofs from the Public Protector. The signs of the conspiracy and the possibly pay-off to the Zuma family is there. The use of the state and misuse of it for personal gain, is all there. Peace.
The State of Capture Report is really haunting the Presidency of Jacob Zuma and the African National Congress (ANC). The South African President and his government has been under fire for years for their close connection with the Gupta investors and their corporations who has gotten favorable deals with state companies. Which in the end has delivered bad service to the public as well as costing more than it should.
Today there was a judgment in the High Court in Gauteng Division in Pretoria. This judgment is really showing that the President is not above the law. I will take out key aspects of the ruling. So there will no question, but only the words that came from the court. It is really evident that the President is trying to run away from charges, but is still not able to do so. Even with his position as President.
The ruling did one key thing against the will of Zuma, which was to say this: “For these reasons, none of the grounds of review has any merit, and the President is not entitled to the relief that he seeks. The remedial action taken by the Public Protector is lawful, appropriate, reasonable and rational. In the premises the President’s application cannot succeed and must be dismissed with costs” (High Court of Gauteng, 13.12.2017).
The former Public Protector Thuli Madonsela clearly won today in court and the president lost. Not only cash, but is proven that he didn’t use his power to continue the investigation made by the Public Protector. Zuma should have followed recommendations and followed the procedure to continue to investigate and look into the troubles with the State Companies and the Gupta’s. Which was shown through good collection by Madonsela. The State of Capture report is damning and proving the open corruption between a President and an Investor Family. How the investors are getting good deals on Public Funds, while using private companies to skim the money from the state. Where also the Gupta used their influence and monies to also change Ministers and others.
The continued investigation and inquiry in the State of Capture, would reveal more skeletons in the closet. Zuma might be afraid of the communications between his family and the Gupta’s.
The Judges in the Case even said this about the application made by the President:
“Taking all the circumstances sketched and the considerations made we are of the view that the President was ill adviced and reckless in launching the challenge against the remedial action of the Public Protector. He is aware that since allegations of “State of Capture” initially surfaced and more so, after the Public Protector’s report the matter remains in the public domain and requires decisive action and resolution. His Court challenge has resulted in further delaying the resolution of the “State of Capture” allegations” (High Court of Gauteng, 13.12.2017).
It also stated: “It is declared that the remedial action in the Public Protector’s Report, No 6 of 2016/17 dated 14 October 2016 and entitled “State of Capture” (the Report), is binding” (High Court of Gauteng, 13.12.2017).
So the President has to start an inquiry and investigate the allegations in the report of the Public Protector need more investigation and the recommendations of DPP was justified. Even if the President wanted to stall it and didn’t deem it fit. Since, this would be looking directly into his business and his actions in government. This being energy deals, changing finance ministers or all sort of activity done with the coordination of the Gupta family and businesses. These sort of public display and disregard of checking the facts. Also could show that the President would be worried what a sort of inquiry would look into and might find. While having more legal powers to check out the findings and also get affidavits, that could in more information and more evidence into the case that the DPP made. This is needed and now the President is ordered to do so by the Court. The judges have justified the need to follow up the “State of Capture”, the whole scandal and the grand corruption that was inside that documentation.
This is a ghost following Zuma and it will not leave him. Just like Nkandla upgrade has hunted him too. The “State of Capture” have haunted him and will be in his shadow as long as he is walking. Especially, know that he is ordered to make an inquiry and also get someone to investigate it. To follow the recommended remedial actions that the DPP wanted to see. It was all justified within the provisions of the law and the President didn’t comply, because the case is implicating him. Peace.
The state of Capture Report of 2016 revealed a lot, but as the days go by the familiar state of connection between the Zuma Administration, the ANC and their bedfellows Gupta’s, are so close that the use of the word ‘Grand Corruption’ is to weak. It isn’t just cases anymore, the whole system seems partly corrupted and controlled from business and into departments that issues government contracts. This all gives profits and good contracts to mates and business-partners instead of getting the best deal for the money on the tax-payers money.
Therefore, that the KPMG scandal shows the possible troubles with the coal-deals done with the state, between Gupta Companies and their trading. As the Executives and Chairmen of the board resigning today. Proves the influence and the problematic relationship between the state and the Oakbay Resources. If it wasn’t so, the audits and the reports from South African Revenue Service (SARS) and their ‘Rouge Unit’ look into the wealth created by KPMG wouldn’t be as hectic as it is now.
Every single piece of the transactions and revelation in the Gupta involvement within the Coal Industry, has clearly showed the massive undertaking and the steps done by the ANC to accept the corrupt acts of the corporation. It is not like anything else can be said after years of new drip-drops of knowledge. To look away and say it is nothing. That is to be ignorant and directly close you eyes as the money are bent and shifted in darkness, while the traders hope the public doesn’t get a whiff of the transactions and agreements. Now that they have, the reports and the trying to silence it proves it.
Just like the government tried to stop the ‘State of Capture’, the way they never wanted the people to know what was in the Denton’s report, they don’t want SARS or Pravin Gordhan to deliver the news. They want it in silence, because they know the firepower in the report of the Rogue Unit! If not, the KPMG would have had so many people resigned over the tax issues considering the trades of Oakbay, as said in their own report:
“KPMG South Africa provided limited transaction support services to the Guptas in connection with their interest in acquiring the Optimum Coal Mine (OCM) from Glencore. These services included approaching Glencore to express interest in acquiring OCM, and subsequently assisting with early negotiations with the Business Rescue Practitioners appointed by Glencore. The firm also built a financial model reflecting assumptions to assist in the development of a purchase price offer” (KPMG, 15.09.2017).
And you know the KPMG know of their guilt, when they do this: “Given the failure to appropriately apply our own risk management and quality controls, that part of the report which refers to conclusions,
recommendations and legal opinions should no longer be relied upon. KPMG South Africa has contacted SARS and offered to repay the R23 million fee received for the extensive work performed, or to make a donation for the same amount to charity” (KPMG, 15.09.2017).
So the KPMG has acted wrong and not paid their taxes, secondly not acting righteous with their audting, as the Eskom, Oakbay and Glencore deal was in dire need of justification and of trustworthy values, as the core delivery of coal and the profits being raised for the private on the state reserves, this as the Gupta family and the ANC accepting the massive breaches, as the audit was initially rubber-stamping the agreement and giving it valid grounds.
Clearly, the KPMG scandal isn’t just another corrupt agreement, it is another peel of the onion. The more we peel, the more the system is crying. The more people is implicated and the deeper dig. Shows the systematic and procedures done to secure the transaction in favor of Zuma and the Gupta’s. Not for the greater good of South Africa. That is really disrespecting the Republic and it’s government. 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.