- The second part of the State Capture Report has been handed over and made available to the South African public
- The report pays particular attention to the capturing of state-owned enterprises Denel and Transnet by the Gupta family
- A number of executives who worked at Transnet and Denel have been recommended for possible prosecution for violating the Constitution by enabling state capture
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JOHANNESBURG - Acting Chief Justice Raymond Zondo's Commission handed over the second volume of the State Capture Commission of Inquiry to the office of the Presidency on Tuesday, 1 February. The report was publicised online shortly after the handover for the perusal of all South Africans.
The second part of the State Capture Report had even more damning findings against a number of public servants who worked within state-owned enterprises particularly at Transnet and Denel.
Higher-ups such as former Minister of Public Enterprises Malusi Gigaba, Transnet executives Brian Molefe, Anoj Singh and Siyabonga Gama were named to have been at the centre of state capture.
Briefly News has taken a look at some of the State Capture Report findings and how key government officials were implicated in corrupt practices.
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Malusi Gigaba abused his position in favour of the Gupta family
The report accuses Gigaba of breaking his oath of office and the Constitution by using his position as the Minister of Public Enterprises to further the Gupta family's agenda at state-owned weapons firm, Denel and Transnet.
According to TimesLIVE, the report finds that Denel was captured by the Gupta family through irregular contracts. Gigaba was also blasted for using his political influence to cover up the corruption that was taking place at both state-owned enterprises during his tenure.
Zondo stated the capture of Denel was facilitated by Gigaba as well as former President Jacob Zuma's son Duduzane Zuma with the VR Laser Services contract. Zondo has recommended that the National Prosecuting Authority too further investigate Gigab'as involvement as it has been implied he benefitted financially for steering enterprises in favour of the Guptas.
Former Denel executives suggested for prosecution
The State Capture Report lambasted Denel Executives for the way in which they iced out former Denel CEO Riaz Saloojee when he tried to resist the Gupta family's attempt to capture the arms company.
According to Fin24, Saloojee testified at the commission that Gupta associate Salim Essa, invited him to meetings to discuss Denel's business dealing. Saloojee stated that he only accepted the invitation after he was informed that the invitation came from higher-ups.
He was then taken to the Gupta compound where meet with Gigaba, the Gupta brothers Tony and Atul. At a second meeting, he says Duduzane was at the compound as well as a man who introduced himself as African National Congress suspended secretary-general Ace Magashule's son.
Zondo noted that when Salojee tried to resist the Gupta family influence at Denel, he was suspended and this suspension was supported by at least three Denel executives. Zondo says these executives acted in contravention of the Constitution as well as the Public Finance and Management Act and for this, he recommends them for criminal prosecution, according to TimesLIVE.
Former finance head at Transnet Anoj Singh lied about his closeness with the Gupta family
The report stated that Anoj Singh, former head of Finance Transnet benefitted financially from the Gupta family for the role he played in the capture of Transnet. Zondo stated that Singh did not give a fully truthful testimony because he attempted to underplay his involvement with the Gupta family despite witnesses stating otherwise.
Singh's driver had testified that he drove his boss to the Gupta family home in Saxonwold at least 10 times. The driver also alleged that after every visit to the compound, Singh would visit Knox Vaults to deposit the money he received from the Guptas.
Zondo also noted that since Singh was not truthful about his involvement with the Guptas, he was not a reliable witness, according to TimesLIVE. Singh has also been recommended for investigation for his involvement in advancing the interests of the Guptas at Transnet.
Brian Molefe and Siyabonga Gama furthered Gupta enterprises at Transnet
The State Capture Report stated that it is reasonable to assume that the Gupta family had prior knowledge about the appointment of Brian Molefe as Transnet because his appointment was published in the New Age newspaper because his appointment became official.
The New Age newspaper was owned by the Gupta family. Zondo stated that Molefe, like his other Transnet associates, had financial gains for furthering the interests of the Gupta family interests.
Zondo stated that even though Molefe denies ever being in the pockets of the Guptas there are witnesses that state that he was a recipient of cash bribes.
Like Molefe, Siyabonga Gama is said to have benefited extensively from aiding in the capture of Transnet by giving work to Gupta-linked firms Regiments and Trillian. Furthermore, the report notes that corruption was definitely involved because Gama was hired at Transnet while he was facing serious allegations.
Some of the State Capture Report suggestions in relation to Transnet
According to News24, more than 20 suggestions have been made in the State Capture Report to criminally investigate Molefe, Gama and Singh for how they lied to the Transnet board about certain locomotive contracts and for accepting cash bribes from the Gupta family.
It has also been noted that they failed to follow the National Treasury's laws in relation to the procurement processes. Making unapproved payments to Chinese-owned railway firms without guarantees.
The trio is also said to have conflated prices at Transnet and were involved in the mismanagement of Transnet's finances.
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Gigaba, Transnet execs and Molefe named by Zondo in State Capture Report
Briefly News previously reported that the much-anticipated second section of the State Capture Report has been submitted to President Cyril Ramaphosa. Acting Chief Justice Raymond Zondo named those who are guilty of facilitating state capture in the report and ordered law enforcement to move against them.
Those named by Zondo include Malusi Gigaba (the former public enterprises minister), Thamsanqa Jiyane (the previous chief of engineering at Transnet), Brian Molefe (ex-Eskom CEO and previously the CEO of Transnet), Siyabonga Gama (Transnet CEO), and two Transnet finance heads (Garry Pita and Anoj Singh).
These five people stand accused of facilitating the Gupta family's involvement in state capture and looting while former president Jacob Zuma was in office, TimesLIVE reports. In addition, Gigaba allegedly gained financial benefits from the Gupta's involvement in state capture while he was in office.
According to News24, Singh, Pita, Jiyane, and Molefe could face several charges, including racketeering, negligence, fraud, and corruption dating back to 2009.
Source: Briefly News