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Law Practice News South Africa

'State capture' judicial inquiry will focus on Denel, Transnet, SAA and SABC

The judicial commission of inquiry that will be established to probe allegations of state capture will look into claims against state-owned enterprises (SOEs), namely Denel, Transnet, South African Airways (SAA) and the SABC, former public protector Thuli Madonsela said on Thursday, 3 November 2016.
'State capture' judicial inquiry will focus on Denel, Transnet, SAA and SABC
© Encho Enevski – 123RF.com

A major part of her state capture report dealt with allegations of Eskom's relations with the Gupta family and its companies - these allegations will be probed in depth by the commission.

The allegations against these SOEs were touched upon in Madonsela's report but not investigated.

For instance, there were claims of the Guptas attempting to exert pressure on former public enterprises minister Barbara Hogan and former public enterprises committee chairperson Vytjie Mentor, to cancel SAA's route to India.

Madonsela has ruled that the judicial commission should investigate SAA's contract with the Gupta-owned newspaper, New Age.

The report alleged that Transnet had awarded contracts to a close Gupta associate, Salim Essa. The parastatal allegedly ceded a major advisory contract from Regiments Capital to Essa's Trillian Capital Partners.

Essa was once a business partner of Malcolm Mabaso - the son of Transnet chairwoman Linda Mabaso - who is also an adviser to Mineral Resources Minister Mosebenzi Zwane.

Essa was also a business partner of Iqbal Sharma, chairperson of Transnet's tender committee.

Regarding Denel, the state capture report questioned the formation of joint venture company Denel Asia with Gupta-linked VR Laser Asia.

One of the members of the Denel board, Johannes Motseki, is a Gupta business partner and former treasurer of the Umkhonto weSizwe Military Veterans Association.

Madonsela's report also referred to allegations against the SABC. Those related to the contracts it awarded to New Age.

Source: BDpro

Source: I-Net Bridge

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