A year since their last court appearance, the accused in the so-called “Amigos” R144 million provincial government racketeering, corruption and fraud trial are no closer to standing trial.
When they appeared briefly in the Durban High Court on Tuesday, their case was adjourned for another year – to February 8, 2016 – because the main accused, Cape Town billionaire Gaston Savoi, had launched another “interlocutory application”, this time for a permanent stay of prosecution.
Savoi, who also represents his company, Intaka Holdings, and his colleague, Fernando Praderi, were again absent from court – with the blessing of the State.
Their advocate, Jimmy Howse, placed on record that this was the arrangement with all adjournments and warrants of arrest that were issued but stayed.
Before Acting Judge Eric Nzimande were the former head of the provincial Treasury, Sipho Shabalala, his wife, Beatrice, former heads of health Busisiwe Nyembezi and Ronald Green-Thompson, former health officials Victor Ntshangase and Alson Buthelezi, and advocate Sandile Kuboni.
The reason for the case’s adjournment in February last year was that Savoi was waiting for the outcome of his Constitutional Court challenge to sections of the Prevention of Organised Crime Act. He argued that these were vague and open to “personal and political manipulation” – and used as an example the withdrawal of charges against his former co-accused, ANC politicians Mike Mabuyakhulu and Peggy Nkonyeni.
The Constitutional Court handed down judgment in March last year, dismissing his attacks and finding unanimously that the definition of a “pattern of racketeering activity” was clear.
On the issue he raised about the act allowing “hearsay evidence”, the court said this did not render the trial automatically unfair and the trial court was best placed to deal with this issue.
Savoi has now launched another application in the Pietermaritzburg High Court for a permanent stay of prosecution.
Legal sources said there had been several “skirmishes” around this, particularly about provision of documents from the State. While all the papers had now been filed – and it was hoped it would be argued in March – the dispute had not been finally resolved and it would not be heard until later in the year.
“Of course, depending on the outcome, one or other party may wish to take it to a higher court on appeal, which will push any trial date further in the future,” a source said. Next year’s date remains a provisional one.
Savoi is accused of paying sweeteners to officials – including an alleged R1m to the ANC – to score contracts for the supply of water purification and oxygen plants to the departments of health and local government.
Initially there were 23 accused facing 54 counts. But the new indictment now lists only 17 charges.
In documents in support of an asset forfeiture application, the State put up transcripts of text messages in which some of the accused referred to each other as “Amigo”.
Source: Iol
Showing posts with label Gaston Savoi. Show all posts
Showing posts with label Gaston Savoi. Show all posts
Wednesday, January 21, 2015
Sunday, September 2, 2012
NPA won't divulge report on decision to drop Nkonyeni charges - DA KZN
ACTING KZN Prosecutions Director Moipone Noko has officially refused to release the report on why the National Prosecuting Authority (NPA) dropped fraud and corruption charges against two high-profile KZN politicians.
Advocate Noko wrote to the DA late Wednesday stating that the reasons for not charging KZN Speaker Peggy Nkonyeni and provincial Finance MEC Mike Mabuyakhulu are "confidential" and cannot be released. The DA will today officially submit a Promotion of Access to Information Act (PAIA) request to the NPA to get this information. We believe that the NPA must make the record of decision public as it is in the public's interest to know whether the criminal justice system is free from political bias.
This is important given the massive network of politicians and officials in multiple provinces who are linked to dealings with controversial businessman Gaston Savoi. The DA has previously won a Supreme Court of Appeal case against the NPA for the release of the report on why corruption charges against President Zuma were dropped.
We believe that the precedent set by this decision should also apply to the KZN NPA's report on the so-called "Amigo's" case.
Source: Politicsweb
Advocate Noko wrote to the DA late Wednesday stating that the reasons for not charging KZN Speaker Peggy Nkonyeni and provincial Finance MEC Mike Mabuyakhulu are "confidential" and cannot be released. The DA will today officially submit a Promotion of Access to Information Act (PAIA) request to the NPA to get this information. We believe that the NPA must make the record of decision public as it is in the public's interest to know whether the criminal justice system is free from political bias.
This is important given the massive network of politicians and officials in multiple provinces who are linked to dealings with controversial businessman Gaston Savoi. The DA has previously won a Supreme Court of Appeal case against the NPA for the release of the report on why corruption charges against President Zuma were dropped.
We believe that the precedent set by this decision should also apply to the KZN NPA's report on the so-called "Amigo's" case.
Source: Politicsweb
Friday, August 17, 2012
Charges against officials withdrawn
Charges of fraud and corruption against six people, including two high-ranking ANC KwaZulu-Natal officials, have been withdrawn, the National Prosecuting Authority (NPA) said on Friday. “The acting Director of Public Prosecutions advocate Moipone Noko has withdrawn charges against six accused in the Intaka case,” provincial NPA spokeswoman Natasha Ramkisson said.
Charges were dropped against KwaZulu-Natal legislature speaker Peggy Nkonyeni, economic development MEC Mike Mabuyakhulu, Lindelihle Mkhwanazi, Nozibele Phindela, Jabulani Thusi and Ian Blose.
“Upon a thorough and interrogative assessment, available evidence including consultations with some key witnesses, the acting DPP in consultation with the prosecution team felt there are no prospects of a successful prosecution, therefore these charges can not be sustained against them during trial,” Ramkisson said.
The six were linked to the sale of water purification plants to the KwaZulu-Natal health department, allegedly at inflated prices. Initially, 25 people were implicated in the in the so-called “amigos” corruption case which will be heard on October 1 in the Durban High Court. The “amigos case” is a corruption matter involving Uruguayan businessman Gaston Savoi.
Savoi's company Intaka allegedly paid bribes to ensure that a contract to supply water purifiers and oxygen generators to hospitals, at hugely inflated prices, went its way.
He would go on trial with former provincial treasury boss Sipho Shabalala, who allegedly received a R1 million donation for the ANC.
Noko was appointed in July after KwaZulu-Natal's acting head of prosecutions Simphiwe Mlotshwa was ousted, reportedly for refusing to withdraw the charges against the two politicians.
Source: IoL
Charges were dropped against KwaZulu-Natal legislature speaker Peggy Nkonyeni, economic development MEC Mike Mabuyakhulu, Lindelihle Mkhwanazi, Nozibele Phindela, Jabulani Thusi and Ian Blose.
“Upon a thorough and interrogative assessment, available evidence including consultations with some key witnesses, the acting DPP in consultation with the prosecution team felt there are no prospects of a successful prosecution, therefore these charges can not be sustained against them during trial,” Ramkisson said.
The six were linked to the sale of water purification plants to the KwaZulu-Natal health department, allegedly at inflated prices. Initially, 25 people were implicated in the in the so-called “amigos” corruption case which will be heard on October 1 in the Durban High Court. The “amigos case” is a corruption matter involving Uruguayan businessman Gaston Savoi.
Savoi's company Intaka allegedly paid bribes to ensure that a contract to supply water purifiers and oxygen generators to hospitals, at hugely inflated prices, went its way.
He would go on trial with former provincial treasury boss Sipho Shabalala, who allegedly received a R1 million donation for the ANC.
Noko was appointed in July after KwaZulu-Natal's acting head of prosecutions Simphiwe Mlotshwa was ousted, reportedly for refusing to withdraw the charges against the two politicians.
Source: IoL
Wednesday, March 28, 2012
Gabon Government Taps Into South Africa Solution To Solve Water Crisis
For most South Africans accessing safe, drinking water is as simple as opening a tap in their home. However in Gabon, residents in rural areas and the poorer suburbs of big cities have to walk several hundred metres to obtain water from more privileged neighbourhoods. Water pollution has exacerbated the situation.
To remedy the situation, the Government of Gabon has engaged with Intaka Tech through Intaka Tech’s Gabonese intermediary, to supply water treatment plants to serve the potable water needs of rural areas. (Drinking water or potable water is water pure enough to be consumed or used with low risk of immediate or long term harm.) These plants will provide an immediate and viable solution, due to their superior corrosion resistance and short installation and commissioning times. The units are easy to operate and maintain.
Intaka Tech CEO, Rodrigo Savoi says: "We are proud to be bringing clean water to rural areas in need and contributing to the future infrastructure of Gabon."
Intaka Tech will be supplying three water treatment plants to treat river water that will be installed and operational as of May 2012. Of the units sold, two have a production capacity of 25,000 litres an hour per unit which approximates to 1100,000 litres per day in total, while the third has a production capacity 6 000 litres an hour, equating to almost 130,000 litres per day.
The units will be shipped to Libreville and transported by rail and road to the central region of Gabon. Although Intaka Tech will supply these units, abstraction and onward distribution will be managed solely by the client.
Chairman of Intaka Tech, Dr Gastón Savoi says, "This is the beginning of a programme with the Government of Gabon that once again highlights the need to provide access to safe water in most African countries, particularly in their rural areas."
Source: Intaka
To remedy the situation, the Government of Gabon has engaged with Intaka Tech through Intaka Tech’s Gabonese intermediary, to supply water treatment plants to serve the potable water needs of rural areas. (Drinking water or potable water is water pure enough to be consumed or used with low risk of immediate or long term harm.) These plants will provide an immediate and viable solution, due to their superior corrosion resistance and short installation and commissioning times. The units are easy to operate and maintain.
Intaka Tech CEO, Rodrigo Savoi says: "We are proud to be bringing clean water to rural areas in need and contributing to the future infrastructure of Gabon."
Intaka Tech will be supplying three water treatment plants to treat river water that will be installed and operational as of May 2012. Of the units sold, two have a production capacity of 25,000 litres an hour per unit which approximates to 1100,000 litres per day in total, while the third has a production capacity 6 000 litres an hour, equating to almost 130,000 litres per day.
The units will be shipped to Libreville and transported by rail and road to the central region of Gabon. Although Intaka Tech will supply these units, abstraction and onward distribution will be managed solely by the client.
Chairman of Intaka Tech, Dr Gastón Savoi says, "This is the beginning of a programme with the Government of Gabon that once again highlights the need to provide access to safe water in most African countries, particularly in their rural areas."
Source: Intaka
Wednesday, March 14, 2012
Intaka Tech Gets Gold In Geneva
At the 14th annual Century International Quality ERA Convention in Geneva on 11 March 2012, Proudly South African company Intaka Tech received a Gold Business Initiative Directions (B.I.D) award. The company was selected to win the prestigious award by a jury comprising of leaders of previously awarded companies from around the world together with a panel of international experts in the field of business communication.
At the 14th annual Century International Quality ERA Convention in Geneva on 11 March 2012, Proudly South African company Intaka Tech received a Gold Business Initiative Directions (B.I.D) award. The company was selected to win the prestigious award by a jury comprising of leaders of previously awarded companies from around the world together with a panel of international experts in the field of business communication.
Intaka Tech, which manufactures mobile water purification plants and gas generation units, won the award for its leadership and business management excellence along with its expertise in technology, innovation and expansion.
Uruguayan businessman and entrepreneur Dr Gastón Savoi established Intaka Tech in South Africa in 2004. The company has contributed to the production of fresh water for millions of Africans that have been denied access to this resource due to inaccessible or contaminated sources. It has also created mobile gas generating units to tackle the lack of readily available medical air and oxygen in outlying rural hospitals and clinics. Today, over 200 Intaka Tech water purification plants and gas generating systems are in operation in various hospitals and rural communities in South America and Southern Africa.
The founder and chairman of the company shares, “We pride ourselves on our ability to deliver the highest quality products and services to our clients. All of our products are manufactured against a formal, documented management framework that complies with the internationally recognised ISO9001:2008 standard as well as all other relevant industry regulations and criteria. We recognise the importance of monitoring our quality management systems as it is through continual review that we can identify improvements to be made to our products and services.”
The company has been certified by the South African Bureau of Standards (SABS) since 2008 and by the International Organisation for Standardisation for Quality Management. In addition, all of Intaka Tech’s Gas Generation Systems (GGS) have been certified by TUV Rheinland – a global provider of technical, safety and certification services.
Intaka Tech CEO, Rodrigo Savoi and Knowledge Katti, MD of Intaka Technology Namibia, were among the hundreds of distinguished business representatives, members of the media and diplomatic corps who attended the Convention from all over the world. Savoi says, “Winning this award has set a positive tone for the year. We are incredibly proud to have won and are equally proud to offer these lifesaving products to those in need.”
Source: Intaka
At the 14th annual Century International Quality ERA Convention in Geneva on 11 March 2012, Proudly South African company Intaka Tech received a Gold Business Initiative Directions (B.I.D) award. The company was selected to win the prestigious award by a jury comprising of leaders of previously awarded companies from around the world together with a panel of international experts in the field of business communication.
Intaka Tech, which manufactures mobile water purification plants and gas generation units, won the award for its leadership and business management excellence along with its expertise in technology, innovation and expansion.
Uruguayan businessman and entrepreneur Dr Gastón Savoi established Intaka Tech in South Africa in 2004. The company has contributed to the production of fresh water for millions of Africans that have been denied access to this resource due to inaccessible or contaminated sources. It has also created mobile gas generating units to tackle the lack of readily available medical air and oxygen in outlying rural hospitals and clinics. Today, over 200 Intaka Tech water purification plants and gas generating systems are in operation in various hospitals and rural communities in South America and Southern Africa.
The founder and chairman of the company shares, “We pride ourselves on our ability to deliver the highest quality products and services to our clients. All of our products are manufactured against a formal, documented management framework that complies with the internationally recognised ISO9001:2008 standard as well as all other relevant industry regulations and criteria. We recognise the importance of monitoring our quality management systems as it is through continual review that we can identify improvements to be made to our products and services.”
The company has been certified by the South African Bureau of Standards (SABS) since 2008 and by the International Organisation for Standardisation for Quality Management. In addition, all of Intaka Tech’s Gas Generation Systems (GGS) have been certified by TUV Rheinland – a global provider of technical, safety and certification services.
Intaka Tech CEO, Rodrigo Savoi and Knowledge Katti, MD of Intaka Technology Namibia, were among the hundreds of distinguished business representatives, members of the media and diplomatic corps who attended the Convention from all over the world. Savoi says, “Winning this award has set a positive tone for the year. We are incredibly proud to have won and are equally proud to offer these lifesaving products to those in need.”
Source: Intaka
Sunday, August 7, 2011
‘Outrageous’ handshake for Ithala boss
Sipho Shabalala, the man police say facilitated a R1 million “donation” for the ANC from a businessman who got a huge state tender, has been given an almost R2 million golden handshake to leave his government job.
The Sunday Independent this week saw documents which show that Shabalala, who headed state-funded development entity Ithala, was given the severance package on the eve of his court appearance on money laundering, corruption and racketeering charges.
Opposition political parties in the provincial legislature have expressed outrage at Ithala’s payment to Shabalala of R1 900 041, in cash, on July 31.
According to a 10-page document titled Settlement Agreement and Mutual Release, the payment represents R696 572 in respect of his salary that would have been paid during the unexpired period of employment. Then there is payment of R374 650 for leave that would have accrued, plus an R870 715 ex gratia payment.
Shabalala is key among the 25 accused in the Intaka case, along with the Speaker of Parliament Peggy Nkonyeni, Economic Development MEC Mike Mabuyakhulu and Gaston Savoi, owner of Intaka, a company that won a R42 million tender from the government and in the same month paid a R1m “donation” to the ANC in KZN, via Shabalala.
Shabalala’s contract with Ithala was due to end on October 31.
Last August he was suspended when he was charged, almost a year after our sister paper, the Sunday Tribune, exposed how he solicited the R1m from Savoi and allegedly had it paid into the trust account of Durban lawyer Sandile Khuboni, also charged.
IFP MPL and the party’s KZN shadow minister of finance, Roman Liptak, said: “The real test for those politicians who have shielded Shabalala for so long and smoothed his way from one plush government job to the next is whether he will be allowed to walk into another top management position within our civil service.”
The DA’s Johann Krog said the move was aimed at buying Shabalala’s silence. He said Shabalala had been rapped over the knuckles by co-accused Mabuyakhulu for a questionable R280m school project, which merited more serious sanction.
“The DA has consistently called on Scopa and the finance committee for disciplinary action on advice of all the law-enforcing agencies. The province could have saved his salary of more than R100 000 a month for the past year, and the R2m payout,” he said.
Krog insisted that had Ithala waited for his contract to expire in October, the cost to taxpayers to end the relationship would have been much less than a “shocking” R2 million.
ACDP MPL Jo-Anne Downs said: “It’s outrageous. If they wanted to get rid of him they could have instituted internal disciplinary action, but no, they had to pay him to leave,” said Downs.
Shabalala was this week furious that details of his package were leaked to the media.
He said, “I will not be surprised to learn that the intention of those who leaked this agreement to you is to vilify me in the court of public opinion as a greedy fat cat who ‘blackmailed’ the government to give me one final ride on the proverbial gravy train before setting off to enjoy his ‘ill-gotten gains’.”
He said he had signed a two-year contract with the Ithala board in October 2009 (this was after he had hastily been moved from Treasury to Ithala in January 2009). He said there was an understanding that he would have to apply for a full-term contract when the Ithala leadership position was eventually advertised, which happened two weeks ago and for which he was asked not to apply.
“Then came the suspension by the Ithala board in August 2010 with (MEC) Mabuyakhulu an- nouncing an intention to set up a task team that would monitor the developments relating to the criminal investigations and advise the board on the impact, if any, this had on his employment relationship with Ithala,” he said.
Shabalala said he hadn’t heard anything from Ithala or Mabuyakhulu about this matter until just a few weeks before we reported that Mabuyakhulu himself was set to join Shabalala as an accused in the Intaka matter.
He said the message from Ithala, at that time, was that the company wanted to summarily terminate his employment contract, pay him out for the remainder of his contract and obtain an assurance from him that he would not apply for the job of Ithala boss.
The Sunday Independent can reveal that Ithala agreed terms with Shabalala that they “fully and forever release each other from, and agree not to sue concerning any and all claims relating or arising from Shabalala’s employment relationship with Ithala and the termination of that relationship”.
Shabalala said he told them to “go fly a kite”.
“Then came the ‘sweetened’ offer of the agreement that has now been leaked to you. My initial decision was still that I would see out the rest of my contract and retain my right to apply for a job for which I received an excellent performance review at the time of my last employment assessment.”
Asked why he had acceded and accepted the board’s offer, Shabalala said his back was against the wall and he gave an array of reasons for this. He said following the attachment and freezing of all his assets it became impossible to successfully run his businesses.
By last week, he said, the bank had frozen his personal account with his Ithala salary in and was preparing to foreclose on his entire business portfolio to recover monies owed by his RJ’s restaurant in Hillcrest that went under at the beginning of this year.
He said his children were being threatened with expulsion from school because of unpaid fees.
Shabalala said the Ithala offer that he had so disdainfully spurned happened to be exactly what his bank was demanding to hold off from auctioning all of his assets, including his home.
“I decided to accept the revised offer,” he said.
Ithala board chairman Mandla Gantsho said an amicable agreement had been reached with Shabalala. - Nathi Olifant
Source: IoL
The Sunday Independent this week saw documents which show that Shabalala, who headed state-funded development entity Ithala, was given the severance package on the eve of his court appearance on money laundering, corruption and racketeering charges.
Opposition political parties in the provincial legislature have expressed outrage at Ithala’s payment to Shabalala of R1 900 041, in cash, on July 31.
According to a 10-page document titled Settlement Agreement and Mutual Release, the payment represents R696 572 in respect of his salary that would have been paid during the unexpired period of employment. Then there is payment of R374 650 for leave that would have accrued, plus an R870 715 ex gratia payment.
Shabalala is key among the 25 accused in the Intaka case, along with the Speaker of Parliament Peggy Nkonyeni, Economic Development MEC Mike Mabuyakhulu and Gaston Savoi, owner of Intaka, a company that won a R42 million tender from the government and in the same month paid a R1m “donation” to the ANC in KZN, via Shabalala.
Shabalala’s contract with Ithala was due to end on October 31.
Last August he was suspended when he was charged, almost a year after our sister paper, the Sunday Tribune, exposed how he solicited the R1m from Savoi and allegedly had it paid into the trust account of Durban lawyer Sandile Khuboni, also charged.
IFP MPL and the party’s KZN shadow minister of finance, Roman Liptak, said: “The real test for those politicians who have shielded Shabalala for so long and smoothed his way from one plush government job to the next is whether he will be allowed to walk into another top management position within our civil service.”
The DA’s Johann Krog said the move was aimed at buying Shabalala’s silence. He said Shabalala had been rapped over the knuckles by co-accused Mabuyakhulu for a questionable R280m school project, which merited more serious sanction.
“The DA has consistently called on Scopa and the finance committee for disciplinary action on advice of all the law-enforcing agencies. The province could have saved his salary of more than R100 000 a month for the past year, and the R2m payout,” he said.
Krog insisted that had Ithala waited for his contract to expire in October, the cost to taxpayers to end the relationship would have been much less than a “shocking” R2 million.
ACDP MPL Jo-Anne Downs said: “It’s outrageous. If they wanted to get rid of him they could have instituted internal disciplinary action, but no, they had to pay him to leave,” said Downs.
Shabalala was this week furious that details of his package were leaked to the media.
He said, “I will not be surprised to learn that the intention of those who leaked this agreement to you is to vilify me in the court of public opinion as a greedy fat cat who ‘blackmailed’ the government to give me one final ride on the proverbial gravy train before setting off to enjoy his ‘ill-gotten gains’.”
He said he had signed a two-year contract with the Ithala board in October 2009 (this was after he had hastily been moved from Treasury to Ithala in January 2009). He said there was an understanding that he would have to apply for a full-term contract when the Ithala leadership position was eventually advertised, which happened two weeks ago and for which he was asked not to apply.
“Then came the suspension by the Ithala board in August 2010 with (MEC) Mabuyakhulu an- nouncing an intention to set up a task team that would monitor the developments relating to the criminal investigations and advise the board on the impact, if any, this had on his employment relationship with Ithala,” he said.
Shabalala said he hadn’t heard anything from Ithala or Mabuyakhulu about this matter until just a few weeks before we reported that Mabuyakhulu himself was set to join Shabalala as an accused in the Intaka matter.
He said the message from Ithala, at that time, was that the company wanted to summarily terminate his employment contract, pay him out for the remainder of his contract and obtain an assurance from him that he would not apply for the job of Ithala boss.
The Sunday Independent can reveal that Ithala agreed terms with Shabalala that they “fully and forever release each other from, and agree not to sue concerning any and all claims relating or arising from Shabalala’s employment relationship with Ithala and the termination of that relationship”.
Shabalala said he told them to “go fly a kite”.
“Then came the ‘sweetened’ offer of the agreement that has now been leaked to you. My initial decision was still that I would see out the rest of my contract and retain my right to apply for a job for which I received an excellent performance review at the time of my last employment assessment.”
Asked why he had acceded and accepted the board’s offer, Shabalala said his back was against the wall and he gave an array of reasons for this. He said following the attachment and freezing of all his assets it became impossible to successfully run his businesses.
By last week, he said, the bank had frozen his personal account with his Ithala salary in and was preparing to foreclose on his entire business portfolio to recover monies owed by his RJ’s restaurant in Hillcrest that went under at the beginning of this year.
He said his children were being threatened with expulsion from school because of unpaid fees.
Shabalala said the Ithala offer that he had so disdainfully spurned happened to be exactly what his bank was demanding to hold off from auctioning all of his assets, including his home.
“I decided to accept the revised offer,” he said.
Ithala board chairman Mandla Gantsho said an amicable agreement had been reached with Shabalala. - Nathi Olifant
Source: IoL
Friday, January 21, 2011
Dr Gaston Savoi - Executive Profile
Uruguayan business man and entrepreneur Dr Gaston Savoi speaks candidly about his decision to immigrate to South Africa, his commitment to investing in the country and despite the legal battle he now faces, optimism about the future.
When an astute businessman sees opportunity in a boisterous and emerging economy, he is likely to explore his options for investment. When a man persuades his family, colleagues and friends to invest their lives and livelihoods in a country, it is no longer a cool, calculated risk but a matter of the heart. Dr Gaston Savoi has lived in France, Brazil and Argentina, due to his father being transferred to these countries for business and finally settled in Uruguay. Dr Savoi speaks fluent English, Portuguese, French, Italian and Spanish and considers himself a "proudly world citizen". What then drew him to South Africa?
The roots of his life-changing decision lie in what he sees as a bond between South America and South Africa that may be separated by the Atlantic, but on all other counts, are "blood brothers".
"There is a connection on a deep level" he says. "Africa loves colours, loves music. Africa speaks loudly. The people are friendly. They open the doors of their homes to you. We in South America are very similar to South Africa. We have a lot of influence from Africa in culture and in our genetic heritage. I believe this gives us a close understanding."
His gestures are open and expansive when he speaks. It is only part of his charisma. The rest is down to what, in old fashioned terms, might be called a "dapper" style; a combination of sartorial elegance, urbane manner and a deep voice that takes English and turns it into a rich, allegorical narrative. He grins under a slightly rakish moustache and there it is; the portrait of a man whose handshake and characteristic embrace signals the beginning of both a friendship and a business partnership.
This is the same Savoi who, back in 1973 at the age of 21 years old, boldly brokered a financial deal for a small company with great ideas but no capital. To this day, 37 years later, he remains close friends with the founders.
Dr Savoi obtained his degree in Sao Pablo, Brazil, married Gilda Brant de Carvalho and in the years to follow, would take the first steps in developing pharmaceutical factories that manufactured raw materials for human and veterinary use, making key breakthrough in research and development, and becoming a world player in the field. These ventures formed the initial basis to his growing wealth.
As a couple, he and Gilda also founded the first Arabian horse insemination laboratory in Uruguay. Life for the couple was about balance - the practical, the aesthetic and the emotional, which included starting a family. Their three sons, Philippe, Rodrigo and Guillermo and daughter Carolina ultimately joined the family business and by the mid 90s, South Africa was firmly on their radar as a frequent holiday destination. The bush, Cape Town and its people had begun to work its magic.
"When an aeroplane arrives in South Africa, you see this sun coming up and reflecting the clouds. Before you put a foot on the continent you are starting to fall in love with it," he says. The process, which he says begins as an "infatuation", turns to something deeper. Beyond the bush, animal life and the lure big-sky country, Dr Savoi was acutely aware that South Africa offered something much more.
"It's a country with a history and a fantastic infrastructure," he adds. "South Africa for me is a First World country but with everything that you can get from the wild. You are able to go anywhere in two hours," gesturing with his arms opened wide to reinforce the point. "A few kilometres and I am in the middle of the bush, the mountains, game reserves, rivers and deserts. There is no other country I know of that has the versatility and diversity in one place."
"I have an open mind to different cultures, to appreciate different roots, and made the decision to live here and not just be in transit."
At the same time, Dr Savoi was seeing the beginning of what he describes as "cracks" in the banking system in South America and a growing instability there. "What we are experiencing now as a result of what is happening in Europe and North America, South America felt in 2000." Dr Savoi felt that he was in what he calls a "poll" position and ahead was an open track that led, quite obviously, to an emerging economy with intriguing potential.
But no business decision is made in this family without consultation.
"You always need to think in terms of family," he says. The Savoi family is extremely close with major business and life decisions taken around a table not a boardroom. Dr Savoi felt that they were all turning a significant corner and that they needed to be pro-active about their futures. They had already experienced the inexorable pull of South Africa through their world traveller's eyes but he says, "sometimes, destiny shows the way to a move and chooses the moment. I considered the age of my daughter and my three sons. They would look to get married some day and that maybe it was the time for us to take what was not an easy decision but neither was it a tough one. After all, I was not going to mine gold in the Yukon! They saw the scenario through the same eyes and I proceeded to motivate the move to invest in South Africa."
Gaston Savoi did not come empty handed.
With 37 years working in the health industry in manufacturing pharmaceutical API's (Active Pharmaceutical Ingredients) Savoi's companies also manufactured water purification systems and mobile gas generating units. He saw the opportunity to set up a company in South Africa, attracting foreign investment and contribute to the national production of a vital product that had the potential to change the lives of millions of South Africans denied access to fresh water because of inaccessible or contaminated sources. There was another product that the Group had developed in South America that would save lives. One of the big problems faced by countries with an outlying rural population that relied on smaller hospitals and clinics for health care, was the ready availability of medical air and oxygen. Transporting cylinders to outlying areas in South America on poor roads and at the vagaries of frequent strikes left the rural population vulnerable. Units that generate medical oxygen and medical air on site meant avoiding the risks related to non-delivery of a vital resource. The system also has a positive impact on the environment (as shown in an European study) as CO2 is reduced by reducing the transportation of cylinders.
But these plans lay in the future.
First came the Savoi family's move here, one that puzzled many well heeled South Africans whose children were members of the white diaspora to the UK, Australia and the US. For here was a man with wealth and the privilege of choice, deciding to commit everything to a country with what had, at best an "uncertain future".
Savoi simply didn"t see the new South Africa this way.
"I took a decision and my immediate family supported the decision.
That has as a lot to do with his role within the family. "To be a father is naturally a result of biological process, but to be friend to your sons, and vice versa, that is something that needs to be cultivated. To keep the respect between the generations is not easy unless there are no fences and no walls. It is the same relationship that I have with my father. I am not embarrassed to say that it is about real love."
Although the plans were to bring his immediate family to a new continent and a new life, it was not without some pain. "You need to remember that it did not include my extended family - father, my mother, my mother in law, my father in law here, and my sister - therefore it was a tough decision - but less tough if you combine it with taking what you feel deep down, is the right decision. I am sure that I took it."
This growing set of ties to South Africa – including an application for permanent residence for his whole family - underpinned Savoi's first significant commitment in putting down roots. In 2001, the Group bought a 50% share (R150 million rand investment) in Shamwari Holdings through foreign investment, later to be known as the Mantis Collection of Boutique Hotels and Game Reserves, the world renowned hospitality group that included Shamwari Game Reserve established by Adrian Gardiner. The partnership with Gardiner also had financial implications. With no track record in South Africa, the Group had no credit line with local banks, making foreign investment crucial going forward. Although the family had farming in their blood, Savoi had no personal experience in the hospitality industry and running a game reserve. He saw the move as a chance to hand over his core business to his children and take up a personal challenge, moving not to a new career per se, but more of an active "retirement". "To have gypsy spirit, does not mean that you are gypsy. To say that you"re a world citizen that does not mean that you don"t have roots." In true Savoi style, the initial connection with Shamwari was indirect. On a flight to SA, he struck up a conversation with fellow passenger Peter Fleck (former rugby player Robbie Fleck's father).
In the conversation that ensued, one that ranged from family to business and Savoi's growing feelings for South Africa, was the subject of a game lodge. Peter became the catalyst to a series of meetings both in South Africa and South America, with amongst others Dr Ian Player. "I always think that it's very important when you intend to take a step like that, to know where people are coming from and how they do business. It's a matter of logic – and culture. But also the differences are important. I always say “what happens to the red if everybody likes the blue”?
A gentleman's agreement then led to a due diligence report, a formal partnership and a mounting excitement about potential new markets, resulting from one of his son's astute comment that South American tourism to SA, was largely neglected. There was much to be done to foster stronger ties.
Business ties established, and a future vision mapped out, the Group went on to further develop the historic Steenberg Estate in Constantia and the 54 000 hectare Sanbona Wildlife Reserve at the foot of the Warmwaterberg Mountains in the Little Karoo. The reserve's white lion project, was given world coverage through Animal planet and it's one which Savoi is justifiably proud of to this day.
The SA lifestyle proved an irresistible force. "We live a supposed 650 thousand hours," says Savoi, "that is our life. I am clear that some of these hours need to be enjoyed during our journey here."
It was a journey on many levels and not simply a destination.
Although the Group successfully sold their shares back to Adrian Gardiner in 2005, Dr Savoi continued to pursue the core business that he had established in South America; water purification, oxygen and health products.
"We brought our technology and our intellectual property through foreign investment to the country - and to the continent. With this, came the will and the effort to build a fantastic first world nutritional plant," says Dr Savoi. "Over the years with Mantis, I had the honour and the opportunity to meet many important players in the South African government and was guided by them on of how to deal with government as a supplier. We understood absolutely that we needed to go through a process. It is something we understand because we have had a similar scenario for decades in Brazil. We not only understand the system but respect what is a natural empowerment, because we believe in our culture there can not be no more colonialism. We are not an orange to be squeezed, to take the juice from the orange and take the seeds. If you want to come to enjoy a country and its benefits for today, tomorrow and the future you must have respect for the local owners of the country. I take my authority from South Africa but it stops in front of you," deferring to the laws and customs of the country.
"I am not a citizen. I can"t vote. Therefore, I must respect you, I must be diplomatic. I must respect the country's policy of Black Economic Empowerment. We needed to have South African partners who could add real value to the process but to get government work required networking."
There is no doubt that the government tender process, now under such intense scrutiny, is a complicated one. The right partners, the processes to follow, the legitmacy of commissions paid for work secured, is integral to Dr Savoi's current challenges. What happens now, and in the years it may take to untangle what Dr Savoi calls a "spagetti putanesca", must take his course. He contuines to appear in court at hearings with dignity, having endured what appeared to be a highly irregular decision to keep him jailed for several days in Kimberley, and despite having posted substantial bail.
"It is a "live and learn" scenario he believes. "What if I could have imagined that all our trust and effort would be challenged because we followed the created rules of the country." He lets the notion hang. "One thing I am deeply sure of is that we have not done anything wrong. I did not only bring my family here remember, but motivated other families and foreign investors to come here too. These families and investors came trusting me because some of them have been working for me for 10, 20 years. They came here to transfer skills and add value to the country, then married here and have South African babies. I myself have six Proudly South African grandchildren.
"If you ask me today where I think I failed, I say this; I am not a perfect man but I am a perfectionsit. I think that I failed as you fail when you are in love. When you are in love all that strong sentiment creates a weakness somewhere. There are two issues at play here; the first one is that I definitely underestimated the strong power of a monopoly, in the country."
Dr Savoi saw that there were major opportunities and alternatives to a single supplier of services and a commodity. "I did not ever see our company as a substitute monopoly. It's simply not in our culture, in our South American history. We are born as a nationalist people. I saw the opportunity then to produce our equipment here instead of importing it from South America. We empowered many people in this country and directly employed 150. Sadly, we have recently had to retrench 60% of our staff.
"Suddenly," says Dr Savoi, "we appear to have crossed a road that is not allowed to be crossed, but nobody warned us."
Dr Savoi's second caveat has to do with not knowing enough about a local network to do business.
"I am sure that if you were to invest in Brazil, because you love the country, its people, its spirit, the friendship, the music - you love everything - and you decide that by using your skills, you could reduce poverty … but that you have to have a "national power" base to do so, you would take advice. "The advice would be to find strategic partners, and offer strategic shares in your company. You would ask what key people to be introduced to and someone – because you do not know yourself – would choose the right people you should know. You would be reliant on this strategic advice. And obviously one conducts business strictly in accordance with the law and on advice of the professional advisers of the company:- lawyers and auditors."
By all accounts, this is the pattern that Dr Savoi followed on advice from those "in the know" and which is now the subject of his pending court case. "I am a businessman but it seems to me that I have become part of a witch hunt."
The docket that started the ball rolling happened to be from one of Dr Savoi's direct competitors. "How is it, "he asks, "that you can be part of a national tender for business when you are the sole supplier of the goods and services?"
Despite the fight Dr Savoi still has to face over the coming months he remains optimistic about his future here.
"We intend to stay here, to contribute to what we can. We have other projects in the pipeline besides water purification plants and gas generation units. We have our work to carry out bringing skills and intellectual property to help factories reduce the relience on importations. The goal is self dependence."
"I have immense respect for South Africans and what they have achieved but sometimes I feel that perhaps people cannot see what they have, what they have built. One day, the whole world will understand what we (South Africa) have. Perhaps you cannot see what you have until you lose it. You need to take stock. I did. And what I understood, what I saw - and still do - is a deep synergy with my vision of things and what can be achieved in this country."
Please direct all questions in writing to Lynn Giles - lynng@draftfcb.co.za. Dr Savoi is currently not available for comment or interviews.
For further information regarding the current court case, please forward your requests in writing to Rachelle Bricout of Edward Nathan Sonnenbergs - rachelle@create-a-stir.co.za
Source: Intaka
When an astute businessman sees opportunity in a boisterous and emerging economy, he is likely to explore his options for investment. When a man persuades his family, colleagues and friends to invest their lives and livelihoods in a country, it is no longer a cool, calculated risk but a matter of the heart. Dr Gaston Savoi has lived in France, Brazil and Argentina, due to his father being transferred to these countries for business and finally settled in Uruguay. Dr Savoi speaks fluent English, Portuguese, French, Italian and Spanish and considers himself a "proudly world citizen". What then drew him to South Africa?
The roots of his life-changing decision lie in what he sees as a bond between South America and South Africa that may be separated by the Atlantic, but on all other counts, are "blood brothers".
"There is a connection on a deep level" he says. "Africa loves colours, loves music. Africa speaks loudly. The people are friendly. They open the doors of their homes to you. We in South America are very similar to South Africa. We have a lot of influence from Africa in culture and in our genetic heritage. I believe this gives us a close understanding."
His gestures are open and expansive when he speaks. It is only part of his charisma. The rest is down to what, in old fashioned terms, might be called a "dapper" style; a combination of sartorial elegance, urbane manner and a deep voice that takes English and turns it into a rich, allegorical narrative. He grins under a slightly rakish moustache and there it is; the portrait of a man whose handshake and characteristic embrace signals the beginning of both a friendship and a business partnership.
This is the same Savoi who, back in 1973 at the age of 21 years old, boldly brokered a financial deal for a small company with great ideas but no capital. To this day, 37 years later, he remains close friends with the founders.
Dr Savoi obtained his degree in Sao Pablo, Brazil, married Gilda Brant de Carvalho and in the years to follow, would take the first steps in developing pharmaceutical factories that manufactured raw materials for human and veterinary use, making key breakthrough in research and development, and becoming a world player in the field. These ventures formed the initial basis to his growing wealth.
As a couple, he and Gilda also founded the first Arabian horse insemination laboratory in Uruguay. Life for the couple was about balance - the practical, the aesthetic and the emotional, which included starting a family. Their three sons, Philippe, Rodrigo and Guillermo and daughter Carolina ultimately joined the family business and by the mid 90s, South Africa was firmly on their radar as a frequent holiday destination. The bush, Cape Town and its people had begun to work its magic.
"When an aeroplane arrives in South Africa, you see this sun coming up and reflecting the clouds. Before you put a foot on the continent you are starting to fall in love with it," he says. The process, which he says begins as an "infatuation", turns to something deeper. Beyond the bush, animal life and the lure big-sky country, Dr Savoi was acutely aware that South Africa offered something much more.
"It's a country with a history and a fantastic infrastructure," he adds. "South Africa for me is a First World country but with everything that you can get from the wild. You are able to go anywhere in two hours," gesturing with his arms opened wide to reinforce the point. "A few kilometres and I am in the middle of the bush, the mountains, game reserves, rivers and deserts. There is no other country I know of that has the versatility and diversity in one place."
"I have an open mind to different cultures, to appreciate different roots, and made the decision to live here and not just be in transit."
At the same time, Dr Savoi was seeing the beginning of what he describes as "cracks" in the banking system in South America and a growing instability there. "What we are experiencing now as a result of what is happening in Europe and North America, South America felt in 2000." Dr Savoi felt that he was in what he calls a "poll" position and ahead was an open track that led, quite obviously, to an emerging economy with intriguing potential.
But no business decision is made in this family without consultation.
"You always need to think in terms of family," he says. The Savoi family is extremely close with major business and life decisions taken around a table not a boardroom. Dr Savoi felt that they were all turning a significant corner and that they needed to be pro-active about their futures. They had already experienced the inexorable pull of South Africa through their world traveller's eyes but he says, "sometimes, destiny shows the way to a move and chooses the moment. I considered the age of my daughter and my three sons. They would look to get married some day and that maybe it was the time for us to take what was not an easy decision but neither was it a tough one. After all, I was not going to mine gold in the Yukon! They saw the scenario through the same eyes and I proceeded to motivate the move to invest in South Africa."
Gaston Savoi did not come empty handed.
With 37 years working in the health industry in manufacturing pharmaceutical API's (Active Pharmaceutical Ingredients) Savoi's companies also manufactured water purification systems and mobile gas generating units. He saw the opportunity to set up a company in South Africa, attracting foreign investment and contribute to the national production of a vital product that had the potential to change the lives of millions of South Africans denied access to fresh water because of inaccessible or contaminated sources. There was another product that the Group had developed in South America that would save lives. One of the big problems faced by countries with an outlying rural population that relied on smaller hospitals and clinics for health care, was the ready availability of medical air and oxygen. Transporting cylinders to outlying areas in South America on poor roads and at the vagaries of frequent strikes left the rural population vulnerable. Units that generate medical oxygen and medical air on site meant avoiding the risks related to non-delivery of a vital resource. The system also has a positive impact on the environment (as shown in an European study) as CO2 is reduced by reducing the transportation of cylinders.
But these plans lay in the future.
First came the Savoi family's move here, one that puzzled many well heeled South Africans whose children were members of the white diaspora to the UK, Australia and the US. For here was a man with wealth and the privilege of choice, deciding to commit everything to a country with what had, at best an "uncertain future".
Savoi simply didn"t see the new South Africa this way.
"I took a decision and my immediate family supported the decision.
That has as a lot to do with his role within the family. "To be a father is naturally a result of biological process, but to be friend to your sons, and vice versa, that is something that needs to be cultivated. To keep the respect between the generations is not easy unless there are no fences and no walls. It is the same relationship that I have with my father. I am not embarrassed to say that it is about real love."
Although the plans were to bring his immediate family to a new continent and a new life, it was not without some pain. "You need to remember that it did not include my extended family - father, my mother, my mother in law, my father in law here, and my sister - therefore it was a tough decision - but less tough if you combine it with taking what you feel deep down, is the right decision. I am sure that I took it."
This growing set of ties to South Africa – including an application for permanent residence for his whole family - underpinned Savoi's first significant commitment in putting down roots. In 2001, the Group bought a 50% share (R150 million rand investment) in Shamwari Holdings through foreign investment, later to be known as the Mantis Collection of Boutique Hotels and Game Reserves, the world renowned hospitality group that included Shamwari Game Reserve established by Adrian Gardiner. The partnership with Gardiner also had financial implications. With no track record in South Africa, the Group had no credit line with local banks, making foreign investment crucial going forward. Although the family had farming in their blood, Savoi had no personal experience in the hospitality industry and running a game reserve. He saw the move as a chance to hand over his core business to his children and take up a personal challenge, moving not to a new career per se, but more of an active "retirement". "To have gypsy spirit, does not mean that you are gypsy. To say that you"re a world citizen that does not mean that you don"t have roots." In true Savoi style, the initial connection with Shamwari was indirect. On a flight to SA, he struck up a conversation with fellow passenger Peter Fleck (former rugby player Robbie Fleck's father).
In the conversation that ensued, one that ranged from family to business and Savoi's growing feelings for South Africa, was the subject of a game lodge. Peter became the catalyst to a series of meetings both in South Africa and South America, with amongst others Dr Ian Player. "I always think that it's very important when you intend to take a step like that, to know where people are coming from and how they do business. It's a matter of logic – and culture. But also the differences are important. I always say “what happens to the red if everybody likes the blue”?
A gentleman's agreement then led to a due diligence report, a formal partnership and a mounting excitement about potential new markets, resulting from one of his son's astute comment that South American tourism to SA, was largely neglected. There was much to be done to foster stronger ties.
Business ties established, and a future vision mapped out, the Group went on to further develop the historic Steenberg Estate in Constantia and the 54 000 hectare Sanbona Wildlife Reserve at the foot of the Warmwaterberg Mountains in the Little Karoo. The reserve's white lion project, was given world coverage through Animal planet and it's one which Savoi is justifiably proud of to this day.
The SA lifestyle proved an irresistible force. "We live a supposed 650 thousand hours," says Savoi, "that is our life. I am clear that some of these hours need to be enjoyed during our journey here."
It was a journey on many levels and not simply a destination.
Although the Group successfully sold their shares back to Adrian Gardiner in 2005, Dr Savoi continued to pursue the core business that he had established in South America; water purification, oxygen and health products.
"We brought our technology and our intellectual property through foreign investment to the country - and to the continent. With this, came the will and the effort to build a fantastic first world nutritional plant," says Dr Savoi. "Over the years with Mantis, I had the honour and the opportunity to meet many important players in the South African government and was guided by them on of how to deal with government as a supplier. We understood absolutely that we needed to go through a process. It is something we understand because we have had a similar scenario for decades in Brazil. We not only understand the system but respect what is a natural empowerment, because we believe in our culture there can not be no more colonialism. We are not an orange to be squeezed, to take the juice from the orange and take the seeds. If you want to come to enjoy a country and its benefits for today, tomorrow and the future you must have respect for the local owners of the country. I take my authority from South Africa but it stops in front of you," deferring to the laws and customs of the country.
"I am not a citizen. I can"t vote. Therefore, I must respect you, I must be diplomatic. I must respect the country's policy of Black Economic Empowerment. We needed to have South African partners who could add real value to the process but to get government work required networking."
There is no doubt that the government tender process, now under such intense scrutiny, is a complicated one. The right partners, the processes to follow, the legitmacy of commissions paid for work secured, is integral to Dr Savoi's current challenges. What happens now, and in the years it may take to untangle what Dr Savoi calls a "spagetti putanesca", must take his course. He contuines to appear in court at hearings with dignity, having endured what appeared to be a highly irregular decision to keep him jailed for several days in Kimberley, and despite having posted substantial bail.
"It is a "live and learn" scenario he believes. "What if I could have imagined that all our trust and effort would be challenged because we followed the created rules of the country." He lets the notion hang. "One thing I am deeply sure of is that we have not done anything wrong. I did not only bring my family here remember, but motivated other families and foreign investors to come here too. These families and investors came trusting me because some of them have been working for me for 10, 20 years. They came here to transfer skills and add value to the country, then married here and have South African babies. I myself have six Proudly South African grandchildren.
"If you ask me today where I think I failed, I say this; I am not a perfect man but I am a perfectionsit. I think that I failed as you fail when you are in love. When you are in love all that strong sentiment creates a weakness somewhere. There are two issues at play here; the first one is that I definitely underestimated the strong power of a monopoly, in the country."
Dr Savoi saw that there were major opportunities and alternatives to a single supplier of services and a commodity. "I did not ever see our company as a substitute monopoly. It's simply not in our culture, in our South American history. We are born as a nationalist people. I saw the opportunity then to produce our equipment here instead of importing it from South America. We empowered many people in this country and directly employed 150. Sadly, we have recently had to retrench 60% of our staff.
"Suddenly," says Dr Savoi, "we appear to have crossed a road that is not allowed to be crossed, but nobody warned us."
Dr Savoi's second caveat has to do with not knowing enough about a local network to do business.
"I am sure that if you were to invest in Brazil, because you love the country, its people, its spirit, the friendship, the music - you love everything - and you decide that by using your skills, you could reduce poverty … but that you have to have a "national power" base to do so, you would take advice. "The advice would be to find strategic partners, and offer strategic shares in your company. You would ask what key people to be introduced to and someone – because you do not know yourself – would choose the right people you should know. You would be reliant on this strategic advice. And obviously one conducts business strictly in accordance with the law and on advice of the professional advisers of the company:- lawyers and auditors."
By all accounts, this is the pattern that Dr Savoi followed on advice from those "in the know" and which is now the subject of his pending court case. "I am a businessman but it seems to me that I have become part of a witch hunt."
The docket that started the ball rolling happened to be from one of Dr Savoi's direct competitors. "How is it, "he asks, "that you can be part of a national tender for business when you are the sole supplier of the goods and services?"
Despite the fight Dr Savoi still has to face over the coming months he remains optimistic about his future here.
"We intend to stay here, to contribute to what we can. We have other projects in the pipeline besides water purification plants and gas generation units. We have our work to carry out bringing skills and intellectual property to help factories reduce the relience on importations. The goal is self dependence."
"I have immense respect for South Africans and what they have achieved but sometimes I feel that perhaps people cannot see what they have, what they have built. One day, the whole world will understand what we (South Africa) have. Perhaps you cannot see what you have until you lose it. You need to take stock. I did. And what I understood, what I saw - and still do - is a deep synergy with my vision of things and what can be achieved in this country."
Please direct all questions in writing to Lynn Giles - lynng@draftfcb.co.za. Dr Savoi is currently not available for comment or interviews.
For further information regarding the current court case, please forward your requests in writing to Rachelle Bricout of Edward Nathan Sonnenbergs - rachelle@create-a-stir.co.za
Source: Intaka
Monday, September 6, 2010
Mkhize denies involvment in R200m tender fraud
KwaZulu-Natal Premier Dr Zweli Mkhize on Sunday denied any involvement in the alleged R200-million tender fraud which led to the arrest of senior government officials. "The premier takes serious exception to the Sunday Times suggestion that he played a key role in the scandal," said Mkhize's spokesperson Ndabe Sibiya. The newspaper reported that Mkhize and ANC Northern Cape chairperson John Block "played key roles in multimillion-rand deals" awarded to Cape Town firm Intaka.
Former head of department in the department of health, Dr Busi Nyembezi, former procurement officer Mdu Ntshangase and provincial legislature's current chief financial officer Sipho Buthelezi were recently arrested in connection with the fraud. Businessman, Uruguayan national Gaston Savoi, Fernando Praderi (also an Uruguayan national), Ansano Romani, Donald Miller and Ronald Geddes, were also arrested. They allegedly defrauded the KwaZulu-Natal health department by inflating prices of water purification equipment supplied to hospitals.
The alleged crime happened while Mkhize was the province's finance minister. Sibiya said an impression had been created that Mkhize was a corrupt leader who influenced the multimillion-rand deals. "We also hold a view that this borders along defaming Dr Mkhize," said Sibiya.
The ANC in the province has also admitted that it had received a R1-million donation from Savoi. It also promised to return the money if it is found that the money was obtained through the corruption.
Source: Mail & Guardian
Former head of department in the department of health, Dr Busi Nyembezi, former procurement officer Mdu Ntshangase and provincial legislature's current chief financial officer Sipho Buthelezi were recently arrested in connection with the fraud. Businessman, Uruguayan national Gaston Savoi, Fernando Praderi (also an Uruguayan national), Ansano Romani, Donald Miller and Ronald Geddes, were also arrested. They allegedly defrauded the KwaZulu-Natal health department by inflating prices of water purification equipment supplied to hospitals.
The alleged crime happened while Mkhize was the province's finance minister. Sibiya said an impression had been created that Mkhize was a corrupt leader who influenced the multimillion-rand deals. "We also hold a view that this borders along defaming Dr Mkhize," said Sibiya.
The ANC in the province has also admitted that it had received a R1-million donation from Savoi. It also promised to return the money if it is found that the money was obtained through the corruption.
Source: Mail & Guardian
Thursday, August 26, 2010
Three 'amigos' nabbed in fraud raid
They were "amigos" - a name they used affectionately in SMS correspondence with one another. Now the three friends - Ithala boss and former KwaZulu-Natal Treasury head Sipho Shabalala, former provincial health boss Busi Nyembezi and Cape Town-based billionaire Gaston Savoi - will stand trial accused of ripping off the government.
They, and others accused of being part of the R200-million racket, were subjected to early morning raids on Wednesday by the Asset Forfeiture Unit in which assets valued at R128-million, including their plush homes, smart cars and a R30-million Learjet, were "preserved" pending the outcome of criminal proceedings against them.
Savoi, Nyembezi and several others were also arrested and appeared in court on Wednesday. Shabalala's arrest is imminent - as is that of his wife, Ntombi, and Durban advocate Sandile Kuboni, according to an affidavit filed in the Pietermaritzburg High Court by top police government fraud investigator Lieutenant-Colonel Piet du Plooy, who along with forensic auditor Trevor White of PricewaterhouseCoopers has been probing their alleged crimes.
They will be charged with fraud, corruption and money-laundering next month, once White's forensic report is finalised. At the heart of the allegation against Shabalala is that he took a R1-million kickback from Uruguayan businessman Savoi in return for KZN government contracts. The money was allegedly laundered through the trust account of Kuboni, who was an attorney in a Durban law firm at the time.
Du Plooy said Savoi's explanation in a statement he gave to police that Shabalala had requested the money as a "donation to the ANC" was not true and that it was always a corrupt payment destined from the outset for Shabalala. While Kuboni had declined to make a statement so far, his trust account records did not reflect any payment to the political party, he said. "If it was meant to be a donation, then it would not have been necessary to disguise it? It is not a crime to make donations," Du Plooy said.
Shabalala stands to lose his Pietermaritzburg home, his farm and the R12-million Royal Hotel in Pietermaritzburg which he owns with his wife through Blue Serenity Investments. In total, it is alleged that in KZN and in the Northern Cape, the corrupt award of contracts to Savoi's Intaka Holdings cost the government as much as R200-million. Du Plooy says there are three separate criminal cases, which relate to the award of tenders to Intaka for the supply of oxygen and water purification plants at six times the price they should have been. Referring specifically to KZN's departments of health and local government, he says not only were legitimate procurement processes "fraudulently circumvented" but Intaka grossly inflated its prices.
The close relationship between Savoi and the two government employees was evident from the number of personal and after-hours exchanges of SMSes. According to White's report, filed with the court, Shabalala sent an SMS to Savoi saying: "Amigo, hearing went very well. Expecting results early next week." In another personal email from Savoi to Nyembezi, her refers to her as "Dear Amiga Busi".
Du Plooy says it was clear that while not a respondent in the asset forfeiture, nor named as one of those to be arrested, the MEC of health at the time, Peggy Nkonyeni, was also close to Savoi and also sent him personal SMSes. Du Plooy says Shabalala was the one who "initiated and directed" the fraudulent procurement process, waiving the requirement for tender or testing the market by obtaining competitive quotations, by deeming the acquisitions to be urgent. He said Shabalala was communicating with Intaka alone and not with other potential suppliers. He further chaired a committee which awarded the tender to Intaka, failing to recuse himself when there was apparent conflict of interest because his wife was involved in business with Savoi.
Also involved in the "collusion", Du Plooy says, are Intaka second-in-charge Fernando Praderi, Ronald Geddes of Westpro Fluid Handling Systems, and Donald Miller of Imvusa Stainless, who allegedly provided "cover quotes" to legitimise Intaka's inflated prices, and Ansano Romani, who allegedly assisted Geddes with the quotation. Within the government, he alleges that Department of Health supply chain manager Mduduzi Ntshangase and financial officer Alson Sipho Buthelezi, who is the deputy director-general in the KZN provincial Treasury, were also involved.
Sourcce: IoL
They, and others accused of being part of the R200-million racket, were subjected to early morning raids on Wednesday by the Asset Forfeiture Unit in which assets valued at R128-million, including their plush homes, smart cars and a R30-million Learjet, were "preserved" pending the outcome of criminal proceedings against them.
Savoi, Nyembezi and several others were also arrested and appeared in court on Wednesday. Shabalala's arrest is imminent - as is that of his wife, Ntombi, and Durban advocate Sandile Kuboni, according to an affidavit filed in the Pietermaritzburg High Court by top police government fraud investigator Lieutenant-Colonel Piet du Plooy, who along with forensic auditor Trevor White of PricewaterhouseCoopers has been probing their alleged crimes.
They will be charged with fraud, corruption and money-laundering next month, once White's forensic report is finalised. At the heart of the allegation against Shabalala is that he took a R1-million kickback from Uruguayan businessman Savoi in return for KZN government contracts. The money was allegedly laundered through the trust account of Kuboni, who was an attorney in a Durban law firm at the time.
Du Plooy said Savoi's explanation in a statement he gave to police that Shabalala had requested the money as a "donation to the ANC" was not true and that it was always a corrupt payment destined from the outset for Shabalala. While Kuboni had declined to make a statement so far, his trust account records did not reflect any payment to the political party, he said. "If it was meant to be a donation, then it would not have been necessary to disguise it? It is not a crime to make donations," Du Plooy said.
Shabalala stands to lose his Pietermaritzburg home, his farm and the R12-million Royal Hotel in Pietermaritzburg which he owns with his wife through Blue Serenity Investments. In total, it is alleged that in KZN and in the Northern Cape, the corrupt award of contracts to Savoi's Intaka Holdings cost the government as much as R200-million. Du Plooy says there are three separate criminal cases, which relate to the award of tenders to Intaka for the supply of oxygen and water purification plants at six times the price they should have been. Referring specifically to KZN's departments of health and local government, he says not only were legitimate procurement processes "fraudulently circumvented" but Intaka grossly inflated its prices.
The close relationship between Savoi and the two government employees was evident from the number of personal and after-hours exchanges of SMSes. According to White's report, filed with the court, Shabalala sent an SMS to Savoi saying: "Amigo, hearing went very well. Expecting results early next week." In another personal email from Savoi to Nyembezi, her refers to her as "Dear Amiga Busi".
Du Plooy says it was clear that while not a respondent in the asset forfeiture, nor named as one of those to be arrested, the MEC of health at the time, Peggy Nkonyeni, was also close to Savoi and also sent him personal SMSes. Du Plooy says Shabalala was the one who "initiated and directed" the fraudulent procurement process, waiving the requirement for tender or testing the market by obtaining competitive quotations, by deeming the acquisitions to be urgent. He said Shabalala was communicating with Intaka alone and not with other potential suppliers. He further chaired a committee which awarded the tender to Intaka, failing to recuse himself when there was apparent conflict of interest because his wife was involved in business with Savoi.
Also involved in the "collusion", Du Plooy says, are Intaka second-in-charge Fernando Praderi, Ronald Geddes of Westpro Fluid Handling Systems, and Donald Miller of Imvusa Stainless, who allegedly provided "cover quotes" to legitimise Intaka's inflated prices, and Ansano Romani, who allegedly assisted Geddes with the quotation. Within the government, he alleges that Department of Health supply chain manager Mduduzi Ntshangase and financial officer Alson Sipho Buthelezi, who is the deputy director-general in the KZN provincial Treasury, were also involved.
Sourcce: IoL
Saturday, December 12, 2009
Majali in the wars again
Beleaguered businessman Sandi Majali is desperately trying to avoid facing trial for corruption and money laundering.
The charges flow from Majali's entanglement with a web of business and political interests in KwaZulu-Natal, the machinations of which have already resulted in the launch of three criminal investigations.
Case One
This is the case involving Majali, who shot to public prominence over his role in the Oilgate saga that saw him "donate" R11-million of PetroSA money to the ANC.
Now Majali is accused of laundering bribe payments made by businessman Jabulani Mabaso to a senior KwaZulu-Natal official, Pamela Zulu, for her to secure Mabaso a huge contract to supply school stationery. In May 2005 Mabaso's company, Indiza Infrastructure Solutions, and another company won a tender from the KwaZulu-Natal education department. Zulu, then with the provincial treasury, sat on the evaluation committee that recommended Indiza. A two-year tender award was confirmed in December 2005. Over an 18-month period Indiza charged the department, where Zulu was chief financial officer, approximately R449-million. A charge sheet against Zulu and Mabaso claims invoices were inflated to the tune of R197-million.
The National Prosecuting Authority (NPA) alleges a bribe was paid by Mabaso to Zulu via a number of Majali's companies.
According to the NPA:
* On April 21 2006 Mabaso deposited R2,5-million in the trust account of Majali's attorney. About R170 000 was transferred four days later to a Honda dealership.
* On May 12 2006 a further R200 000 was deposited into Zulu's account from another Majali company, Imvume Paymaster Services.
* At about that time Majali allegedly entered into an agreement with Zulu for Imvume Paymaster Services to buy shares she supposedly held in another Majali-related company, New Era Capital. She was to receive R4-million, with an initial down payment of R200 000.
In various court papers Majali maintains this represented bona fide repayment for consulting Zulu had done on proposed New Era projects. He explains the payment from Mabaso as an investment in one of his projects and produces a letter of invitation to Mabaso dated February 20 2006 to back this up. The NPA maintains this was all a sham to disguise the bribe payments. In court papers the prosecutor alleges that the letter to Mabaso was not found during raids on Majali and Mabaso and is a fabrication. The NPA also claims that New Era Capital was dormant and had no value.
For the better part of a year Majali has fought desperately to avoid arrest, launching a slew of high court actions and petitioning both Hawks boss Anwa Dramat and then-acting National Director of Public Prosecutions Mokotedi Mpshe to throw out the case. Both declined. Last week he won a reprieve from the South Gauteng High Court. The court suspended the decision to prosecute him pending the outcome of another Majali court challenge involving the same matter. Majali launched an application to review the decision to prosecute him in the North Gauteng High Court. The outcome, expected only next year, is dependent on the court accepting Majali's argument that the Promotion of Administrative Justice Act is unconstitutional.
The Act enables judicial review of government decision-making but specifically excludes decisions to prosecute.
Mabaso and Shabalala
Majali's alliance with Mabaso and Zulu ties him into another scandal involving provincial head of treasury Sipho Shabalala and a Uruguayan businessman, Gaston Savoi, that has prompted two ongoing criminal investigations. In an affidavit provided to Majali Mabaso raises the issue of his relationship with Shabalala. Querying why his relationship with Majali is singled out for investigation, Mabaso notes: "Indiza was involved in a number of other business … transactions during April 2006 … For example, Indiza agreed to advance a loan to Blue Serenity investments in the sum of R12-million." The directors of Blue Serenity were Sipho Shabalala and his wife Beatrice. Shabalala signed the loan agreement with Mabaso and Mabaso also became a 30% shareholder in an initial joint venture.
Majali also notes that during the same tender process in which Indiza was implicated another similar contract was awarded to EduSolutions, a company that has attracted negative media scrutiny in the past. He points out that Zulu is accused of inflating one score for Indiza - awarding the company four points when the maximum possible was two - and that she made the same "error" in regard to EduSolutions without attracting a criminal investigation.
The M&G understands Zulu is a friend of Shabalala, while Mrs Zulu's ex-husband works in the office of the chief executive of African Access, EduSolutions's parent company.
Case Two
But Shabalala has not entirely escaped scrutiny; his relationship with the mysterious Gaston Savoi is under criminal investigation, though he has yet to be charged or interviewed.
The investigation relates to a R1-million donation to the ANC allegedly solicited by Shabalala from Savoi, which is suspected of being a kickback for the award of a R44-million contract by the provincial cabinet for the supply of 20 water treatment plants. Savoi's company, Intaka, supplies water purification and medical equipment, including medical gas generators and portable scanners.
He was introduced to the KwaZulu-Natal government with what appeared to have been high-level political backing. According to a leaked affidavit by the investigating officer it was then-trade and industry minister Alec Erwin who first expressed interest in Intaka's products. The affidavit says it was decided that Rafiq Bagus, a protégé of Erwin's, "would facilitate the process of contacting the relevant persons in the KZN provincial government and Trade and Investment KZN". The investigating officer alleges Shabalala was also involved in negotiations. Meanwhile, as early as April 2004, Savoi formed a company, Skyros Medical Supplies, with Shabalala's wife, Beatrice.
He was clearly covering all bases. In a separate affidavit Savoi states that he was advised that Intaka should become BEE compliant: "To this end a company, Intaka KwaZulu-Natal, was registered. As a result of disagreement between various possible shareholders and Intaka's inability to procure further substantial orders for water purification plants, this company remained dormant." Intaka KZN's initial directors included Bagus and ANC provincial secretary Sipho Gcabashe.
According to the investigating officer's affidavit, Savoi alleges that Shabalala raised the possibility of a party-political donation fairly early on. It is alleged that after the award of the tender Savoi raised the matter again. Shabalala allegedly indicated he would be sent an invoice against which he should make payment of the donation.
An invoice for R1 053 000 was received from law firm Kuboni & Shezi purporting to request payment for legal work done. Savoi paid the amount and the provincial ANC has subsequently confirmed receipt of the donation, which, it claimed, was made in "good spirits" and not linked to any tender. Shabalala has thus far, through his lawyer, declined to respond to media questions about the incident.
Case Three
Savoi was also a witness in the aborted case against former KwaZulu-Natal health minister Peggy Nkonyeni, who allegedly received a gratuity for the purchase of a mobile ultrasound scanner through Savoi's company. Charges were provisionally withdrawn against Nkonyeni and two others in August, when it is understood another key witness suffered a stress-related breakdown and was unable to testify.
Source: Mail & Guardian
The charges flow from Majali's entanglement with a web of business and political interests in KwaZulu-Natal, the machinations of which have already resulted in the launch of three criminal investigations.
Case One
This is the case involving Majali, who shot to public prominence over his role in the Oilgate saga that saw him "donate" R11-million of PetroSA money to the ANC.
Now Majali is accused of laundering bribe payments made by businessman Jabulani Mabaso to a senior KwaZulu-Natal official, Pamela Zulu, for her to secure Mabaso a huge contract to supply school stationery. In May 2005 Mabaso's company, Indiza Infrastructure Solutions, and another company won a tender from the KwaZulu-Natal education department. Zulu, then with the provincial treasury, sat on the evaluation committee that recommended Indiza. A two-year tender award was confirmed in December 2005. Over an 18-month period Indiza charged the department, where Zulu was chief financial officer, approximately R449-million. A charge sheet against Zulu and Mabaso claims invoices were inflated to the tune of R197-million.
The National Prosecuting Authority (NPA) alleges a bribe was paid by Mabaso to Zulu via a number of Majali's companies.
According to the NPA:
* On April 21 2006 Mabaso deposited R2,5-million in the trust account of Majali's attorney. About R170 000 was transferred four days later to a Honda dealership.
* On May 12 2006 a further R200 000 was deposited into Zulu's account from another Majali company, Imvume Paymaster Services.
* At about that time Majali allegedly entered into an agreement with Zulu for Imvume Paymaster Services to buy shares she supposedly held in another Majali-related company, New Era Capital. She was to receive R4-million, with an initial down payment of R200 000.
In various court papers Majali maintains this represented bona fide repayment for consulting Zulu had done on proposed New Era projects. He explains the payment from Mabaso as an investment in one of his projects and produces a letter of invitation to Mabaso dated February 20 2006 to back this up. The NPA maintains this was all a sham to disguise the bribe payments. In court papers the prosecutor alleges that the letter to Mabaso was not found during raids on Majali and Mabaso and is a fabrication. The NPA also claims that New Era Capital was dormant and had no value.
For the better part of a year Majali has fought desperately to avoid arrest, launching a slew of high court actions and petitioning both Hawks boss Anwa Dramat and then-acting National Director of Public Prosecutions Mokotedi Mpshe to throw out the case. Both declined. Last week he won a reprieve from the South Gauteng High Court. The court suspended the decision to prosecute him pending the outcome of another Majali court challenge involving the same matter. Majali launched an application to review the decision to prosecute him in the North Gauteng High Court. The outcome, expected only next year, is dependent on the court accepting Majali's argument that the Promotion of Administrative Justice Act is unconstitutional.
The Act enables judicial review of government decision-making but specifically excludes decisions to prosecute.
Mabaso and Shabalala
Majali's alliance with Mabaso and Zulu ties him into another scandal involving provincial head of treasury Sipho Shabalala and a Uruguayan businessman, Gaston Savoi, that has prompted two ongoing criminal investigations. In an affidavit provided to Majali Mabaso raises the issue of his relationship with Shabalala. Querying why his relationship with Majali is singled out for investigation, Mabaso notes: "Indiza was involved in a number of other business … transactions during April 2006 … For example, Indiza agreed to advance a loan to Blue Serenity investments in the sum of R12-million." The directors of Blue Serenity were Sipho Shabalala and his wife Beatrice. Shabalala signed the loan agreement with Mabaso and Mabaso also became a 30% shareholder in an initial joint venture.
Majali also notes that during the same tender process in which Indiza was implicated another similar contract was awarded to EduSolutions, a company that has attracted negative media scrutiny in the past. He points out that Zulu is accused of inflating one score for Indiza - awarding the company four points when the maximum possible was two - and that she made the same "error" in regard to EduSolutions without attracting a criminal investigation.
The M&G understands Zulu is a friend of Shabalala, while Mrs Zulu's ex-husband works in the office of the chief executive of African Access, EduSolutions's parent company.
Case Two
But Shabalala has not entirely escaped scrutiny; his relationship with the mysterious Gaston Savoi is under criminal investigation, though he has yet to be charged or interviewed.
The investigation relates to a R1-million donation to the ANC allegedly solicited by Shabalala from Savoi, which is suspected of being a kickback for the award of a R44-million contract by the provincial cabinet for the supply of 20 water treatment plants. Savoi's company, Intaka, supplies water purification and medical equipment, including medical gas generators and portable scanners.
He was introduced to the KwaZulu-Natal government with what appeared to have been high-level political backing. According to a leaked affidavit by the investigating officer it was then-trade and industry minister Alec Erwin who first expressed interest in Intaka's products. The affidavit says it was decided that Rafiq Bagus, a protégé of Erwin's, "would facilitate the process of contacting the relevant persons in the KZN provincial government and Trade and Investment KZN". The investigating officer alleges Shabalala was also involved in negotiations. Meanwhile, as early as April 2004, Savoi formed a company, Skyros Medical Supplies, with Shabalala's wife, Beatrice.
He was clearly covering all bases. In a separate affidavit Savoi states that he was advised that Intaka should become BEE compliant: "To this end a company, Intaka KwaZulu-Natal, was registered. As a result of disagreement between various possible shareholders and Intaka's inability to procure further substantial orders for water purification plants, this company remained dormant." Intaka KZN's initial directors included Bagus and ANC provincial secretary Sipho Gcabashe.
According to the investigating officer's affidavit, Savoi alleges that Shabalala raised the possibility of a party-political donation fairly early on. It is alleged that after the award of the tender Savoi raised the matter again. Shabalala allegedly indicated he would be sent an invoice against which he should make payment of the donation.
An invoice for R1 053 000 was received from law firm Kuboni & Shezi purporting to request payment for legal work done. Savoi paid the amount and the provincial ANC has subsequently confirmed receipt of the donation, which, it claimed, was made in "good spirits" and not linked to any tender. Shabalala has thus far, through his lawyer, declined to respond to media questions about the incident.
Case Three
Savoi was also a witness in the aborted case against former KwaZulu-Natal health minister Peggy Nkonyeni, who allegedly received a gratuity for the purchase of a mobile ultrasound scanner through Savoi's company. Charges were provisionally withdrawn against Nkonyeni and two others in August, when it is understood another key witness suffered a stress-related breakdown and was unable to testify.
Source: Mail & Guardian
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