Charges of fraud and corruption against six people, including two high-ranking ANC KwaZulu-Natal officials, have been withdrawn, the National Prosecuting Authority (NPA) said on Friday. “The acting Director of Public Prosecutions advocate Moipone Noko has withdrawn charges against six accused in the Intaka case,” provincial NPA spokeswoman Natasha Ramkisson said.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
Showing posts with label Sipho Shabalala. Show all posts
Showing posts with label Sipho Shabalala. Show all posts
Friday, August 17, 2012
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
Sunday, September 5, 2010
ANC chiefs caught up in R200m tender trap
Two senior ANC bosses have been drawn into a R200-million tender scandal in which the Hawks arrested eight people and raided their houses last week. KwaZulu-Natal premier Dr Zweli Mkhize and ANC Northern Cape chairman John Block played key roles in multimillion-rand deals awarded to Cape Town firm Intaka. Block is Northern Cape finance, economic development and tourism MEC. Mkhize is provincial ANC leader in KwaZulu-Natal.
The Hawks raided Block's house and offices in Kimberley in August last year, allegedly seizing incriminating documents. Block's spokesman, Derek Martin, this week confirmed the raid. Court papers seen by the Sunday Times implicate Block, who served as acting Northern Cape premier twice this year, and Ithala bank CEO Sipho Shabalala in the massive corruption case that spans at least five South African provinces, Angola, Namibia, Democratic Republic of Congo, Nigeria and Pakistan.
Last Wednesday, the Asset Forfeiture Unit and police priority-crimes directorate the Hawks seized R200-million in assets in simultaneous dawn raids in Durban, Pietermaritzburg and Cape Town. They arrested five businessmen in Cape Town, including Uruguayan tycoon Gaston Savoi, and three senior government officials in KwaZulu-Natal. Savoi's Ferrari, Maserati, Lear Jet and properties were attached.
Shabalala was suspended pending the outcome of the investigation. The suspects are accused of colluding to award massive tenders without proper tender processes, inflating prices of goods and services rendered by up to seven times and creating shell firms for kickbacks for officials, court papers show. The alleged fraud centres on water-purification and oxygen plants supplied by Gastoi firm Intaka for KwaZulu-Natal and Northern Cape health and local government departments. Block is Gastoi's partner in Intaka's Northern Cape branch.
Mkhize, as KwaZulu-Natal economic affairs MEC, wrote in July 2005 to then local government and traditional affairs MEC Mike Mabuyakhulu, asking him for R43.2-million from the poverty alleviation fund to buy water-purification plants from Intaka. Intaka allegedly sold a plant valued at R420000 for R4.9-million to the provincial health department. Mkhize wrote: "It is my view that it would be more than justified to fund the purchase of this equipment from the poverty alleviation fund, which is intended inter alia to fund exactly this type of social and economic related infrastructure." Yesterday, Mkhize spokesman Ndabezinhle Sibiya said: "It is incorrect to suggest that Mkhize 'put pressure' to push the deal. Mkhize expected that the processes would be expedited. No instruction for illegal or criminal acts was given. "Dr Mkhize therefore denies in the strongest terms suggestions that he was involved in the facilitation of a fraudulent deal, and categorically denies any wrongdoing on his part."
KwaZulu-Natal's health department spent R44-million on water-purification plants and the Northern Cape government R112-million on water-purification and oxygen plants Intaka supplied. Investigators believe up to R16-million was paid in bribes in KwaZulu-Natal and R13-million in the Northern Cape. Shabalala and Block were not arrested or charged , but properties and luxury vehicles owned by Shabalala were attached. Investigators said more arrests, including Shabalala's, were imminent. It is not clear if Block faces arrest or if Mkhize will be questioned.
Justice minister Jeff Radebe said last week "more arrests would follow" in the Northern Cape. Hawks investigator Petrus du Plooy said in an affidavit "Intaka was involved in similar and related criminal activities in the Northern Cape", involving its health department. Intaka sold the department 11 plants for R47-million "at similarly excessive unit prices. Intaka was entitled only to charge R7.975-million."
Letters and agreements between Intaka, Savoi and Northern Cape and KwaZulu-Natal health officials were seized, and also invoices for "several payments made by Intaka to and on behalf of several officials and/or their related business entities". In an affidavit, lead Hawks investigator Clarence Jones said: "These commissions (are) just another way of giving kickbacks, paying bribes to the officials."
Source: Times Live
The Hawks raided Block's house and offices in Kimberley in August last year, allegedly seizing incriminating documents. Block's spokesman, Derek Martin, this week confirmed the raid. Court papers seen by the Sunday Times implicate Block, who served as acting Northern Cape premier twice this year, and Ithala bank CEO Sipho Shabalala in the massive corruption case that spans at least five South African provinces, Angola, Namibia, Democratic Republic of Congo, Nigeria and Pakistan.
Last Wednesday, the Asset Forfeiture Unit and police priority-crimes directorate the Hawks seized R200-million in assets in simultaneous dawn raids in Durban, Pietermaritzburg and Cape Town. They arrested five businessmen in Cape Town, including Uruguayan tycoon Gaston Savoi, and three senior government officials in KwaZulu-Natal. Savoi's Ferrari, Maserati, Lear Jet and properties were attached.
Shabalala was suspended pending the outcome of the investigation. The suspects are accused of colluding to award massive tenders without proper tender processes, inflating prices of goods and services rendered by up to seven times and creating shell firms for kickbacks for officials, court papers show. The alleged fraud centres on water-purification and oxygen plants supplied by Gastoi firm Intaka for KwaZulu-Natal and Northern Cape health and local government departments. Block is Gastoi's partner in Intaka's Northern Cape branch.
Mkhize, as KwaZulu-Natal economic affairs MEC, wrote in July 2005 to then local government and traditional affairs MEC Mike Mabuyakhulu, asking him for R43.2-million from the poverty alleviation fund to buy water-purification plants from Intaka. Intaka allegedly sold a plant valued at R420000 for R4.9-million to the provincial health department. Mkhize wrote: "It is my view that it would be more than justified to fund the purchase of this equipment from the poverty alleviation fund, which is intended inter alia to fund exactly this type of social and economic related infrastructure." Yesterday, Mkhize spokesman Ndabezinhle Sibiya said: "It is incorrect to suggest that Mkhize 'put pressure' to push the deal. Mkhize expected that the processes would be expedited. No instruction for illegal or criminal acts was given. "Dr Mkhize therefore denies in the strongest terms suggestions that he was involved in the facilitation of a fraudulent deal, and categorically denies any wrongdoing on his part."
KwaZulu-Natal's health department spent R44-million on water-purification plants and the Northern Cape government R112-million on water-purification and oxygen plants Intaka supplied. Investigators believe up to R16-million was paid in bribes in KwaZulu-Natal and R13-million in the Northern Cape. Shabalala and Block were not arrested or charged , but properties and luxury vehicles owned by Shabalala were attached. Investigators said more arrests, including Shabalala's, were imminent. It is not clear if Block faces arrest or if Mkhize will be questioned.
Justice minister Jeff Radebe said last week "more arrests would follow" in the Northern Cape. Hawks investigator Petrus du Plooy said in an affidavit "Intaka was involved in similar and related criminal activities in the Northern Cape", involving its health department. Intaka sold the department 11 plants for R47-million "at similarly excessive unit prices. Intaka was entitled only to charge R7.975-million."
Letters and agreements between Intaka, Savoi and Northern Cape and KwaZulu-Natal health officials were seized, and also invoices for "several payments made by Intaka to and on behalf of several officials and/or their related business entities". In an affidavit, lead Hawks investigator Clarence Jones said: "These commissions (are) just another way of giving kickbacks, paying bribes to the officials."
Source: Times Live
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
Subscribe to:
Posts (Atom)