PLEASE NOTE:

MyNews24 is a user-generated section of News24.com. The stories here come from users.

 
Gert Coetzer
 
Comments: 6
Article views: 581
 
 
 

Nkandla side tracked

02 June 2014, 13:37
Much has been said, fought and argued over the funding of the R250m Nkandla
Compound, and rightly so.  But what's received little attention is the
funding of the freeway set to run through Nkandla following the development
of the president's luxury compound.  This freeway is set to cost R1.5bn, so
this is no small chunk of change, so my broadband' s amateur, volunteer,
investigative journalists gave it a crack and uncovered what appears to be a
case of corruption on an arms deal scale.



Here's what we uncovered:



Claim #1



Public Works claim that the freeway is being constructed by a private
company called Korong Capital Partners who will, following the road
development's end, donate the entire road to the government at no cost to
them.  Now that sounds incredible.



So incredible that it sounds almost too good to be true.



That's because it is.



Debunking Korong Capital Partners appears to have been a dormant shell
company since 1999, and who's only director is Moeti Mpuru, who claims to
have secured the funding of R1.5bn for this project.  The problem with this
scenario is that Korong Capital Partners have no history of this sort of
work.  In fact, they have no history of any work whatsoever.

So they certainly couldn't have secured revenue of around R37bn to place
them in a position to fund this internally.  This would have made them the
most successful company in history (to put this into perspective, this would
equate to more than double Vodacom's 2011/2012 revenue, and Korong would
have achieved this in about a year of operations).  They couldn't have
raised this finance in the capital markets either because no financial
institution would originate and secure a bond for a company with zero
balance sheet strength and zero cash flow.  So the only other option is that
there was an angel investor involved, and this is the next claim:



Claim #2



An angel investor is funding the entire project at no cost to government
whatsoever.



Debunking Who was this angel investor?  Well the claim is that the cash
originated from the USA, through an attorney who is set to make $100,000.00
for simply arranging the transfer of the cash.  Apparently Mpuru, after
being turned down for a R1m loan to fund a small portion of the project,
managed in just a few months to secure R1.5bn in funding for a project that
will see absolutely no return on investment.  It is a straight R1.5bn loss
to whoever funds this project.



And why is the donor not being made public?  What has he got to hide?



And who in their right mind would philanthropically fund a minor freeway in
SA through the president's home town?  It makes no financial sense, nor
logical sense.



So on to brass facts: Korong Capital Partners has its registered offices at
the following address:



UNIT 2

CHIANTI ESTATE

39 LEEUWKOP ROAD

SUNNINGHILL

2196



So this company that apparently has R1.5bn spare to flush down the toilet,
or will be managing R1.5bn worth of angel investor cash, is situated at unit
2, Chianti Estate in Sunninghill, a residential complex that does not have
business rights for its units.  This is a tiny, 60sqm residential complex -
not an office park, or the premises you'd expect for a company with R1.5bn
to spend and manage.  Yet Public Works feel happy for this company to
complete this project on their behalf.  Ever wondered why?



So who owns Unit #2 at Chianti Estates?  None other than MBANJWA NQOBILE
ZINHLE (Zinhle Mbanjwa).  Who is Zinhle Mbanjwa?  He is the manager of the
Housing Development Agency of South Africa.  This is the governmental
department that oversees investments in housing related infrastructure on
behalf of the Human Settlements Department.



They also manage inter-departmental projects.  Why is Korong Capital
Partners' premises at the HDA manager's personal premises?  The answer to
that is simple - he owned the shelf CC from the outset.  This means that the
CC used to move the money around to pay for the Zuma freeway is in fact
located at the HDA manager's house and directed by the man who supposedly
secured the funding.  This makes no sense in terms of the government's
official statements that this is a private entity funding the project
through angel investment.  What this actually means is that the HDA more
than likely used the CC owned by their manager to move Human Settlements
money to Korong Capital Partners to fund the Zuma Freeway.  If this was an
angel investment, the investor would ensure that he had board representation
to ensure he had oversight over the use of his funds.



What does this mean?  Well it means that Zuma's compound is only the tip of
a very large iceberg.  The real corruption is worth in the region of about
R1.5bn, as it indicates that the HDA facilitated government cash (which is
what they do) to be moved to Korong Capital Partners to fund the Zuma
Freeway, and the government knowingly lied to the public about how the
project was being funded.  It indicates that behind the scenes, HDA, Public
Works and Human Settlements arranged a secretive transaction to spoof
legitimate business operations, when in fact they were simply trying to hide
their money-trail of corruption, knowing that using public money would cause
outrage among South African citizens.



None of this makes any sense in terms of the official story by the
government.  It makes perfect sense when you add a corruption element to the
mix though.  Public Works and Human Settlements found cash to fund this
project.  In order to hide this from the public, they engaged with the
manager of the Housing Development Agency, who are the middle-man for
inter-governmental transactions.



Together with a lawyer in the US, they siphoned cash out of the country to
make it appear as if the cash was from an angel investor, and would not be
subject to disclosure to the public.  They then moved the money to a CC
owned by the HDA manager called Korong Capital Partners who are now
officially funding the Zuma Freeway.



On the surface it seems like an extraordinarily unlikely investment - that
some unknown source of billions of dollars donated all of the funding
capital to a private company that coincidentally happens to be owned by the
HDA manager, to build a freeway through Jacob Zuma's Nkandla hometown, with
no oversight of the spending, no recourse whatsoever to the cash, no return
on investment, while remaining completely anonymous, and then with the
intention to hand the entire road over to Public Works upon completion.  And
that is because this is ridiculous.  It reminds me of the SANIP arrangement
with SAAB and BAE, where Fana Hlongwane received the bribe payments for the
arms deal.



What has happened however is that government appears to have attempted to
pull the wool over the eyes of its citizens, in anticipation of a backlash
for R1.5bn funding of the Zuma Freeway, by hiding cash in anentity they
thought would be safe from public scrutiny.  As it turns out, this wasn't
quite as private as they expected.



The crucial oversight was using a private CC owned by the HDA manager and
forgetting to remove his personal address from the company information
records, which are public.



So government has a lot to answer for here and we the public should demand
answers.  Not only does this appear to be corrupt to its very core, but the
spending at Nkandla is outrageous too.



See here for more details relating to how exorbitant the Nkandla spend is:



http://mybroadband.co.za/vb/showthre...projects/page2



http://mybroadband.co.za/vb/showthread.php/484540-Zuma-s-Nkandla-costs-224-

more-than-infrastructure-projects/page2



Public Works is currently involved in hundreds of projects around the
country, with their mandate being to spend on infrastructure and social
development.  With this in mind, their average allocation for each project
will be somewhere between 0.1% and 0.2% of budget (this is a very high
estimate in my opinion - they're probably spending less across more
projects).  Zuma's non-revenue-generating, unnecessary development that has
nothing to do with infrastructure nor social development equates to a 0.32%
allocation of the national public works budget.



This means that they've spent up to 224% more on Zuma's compound than on
their average spend on actual deliverable projects that meet their mandate.



If we include the freeway project, which I'm quite sure is just a dodgy
vehicle to protect Zuma from recourse, the figure jumps to 2172% more than
their average national infrastructure spend.  So instead of money going to
the Gauteng Freeway Improvement Project, to mitigate the impact on the
country, Public Works chose instead to over-spend on Zuma's home by up to
2000-odd percent.  What is clear is that Public Works consider Zuma's house
to be at least 224% more important than investment in infrastructure, which
is their actual mandate.

So if you want to do something about this and make your voice heard in
opposition to potential corruption, fraud, misuse of public funds and lies,
then send this out to media outlets, the public protector, your friends and
family etc.  It's high time this sort of presidentially-supported corruption
is put to bed, once and for all...

Disclaimer: All articles and letters published on MyNews24 have been independently written by members of News24's community. The views of users published on News24 are therefore their own and do not necessarily represent the views of News24. News24 editors also reserve the right to edit or delete any and all comments received.
 

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
6 comments
Add your comment
Comment 0 characters remaining

Read more from our Users

Submitted by
SetjaDiphoko
Time to come together

Don’t trust white people, if they seem close to you it is because they want to use you Read more...

1 comments 59 views
Submitted by
Aurangzeb Thabethe
Concerning EFF. What are we to do...

I don’t even mean to write an indictment of lazy thinking and sectarian rancour that often characterise the attack on African National congress. Read more...

14 comments 684 views
Submitted by
Rools
Why did God stop writing?

God, the author, of the best selling book ever, the Bible, just disappeared after writing this masterpiece. It is nearly 2,000 years since God had written this masterpiece. Read more...

94 comments 848 views
Submitted by
MikeHampton
Knysna's Crime Climbed Quickly in...

There were 6575 crimes in Knysna in 2014, the highest in 10 years, up 4.6% since last year and 26.5% higher than it was 5 years ago. Read more...

2 comments 228 views
Submitted by
MarkH
Lindy - a tribute to your courage...

Like many of us in SA today, struggling to make ends meet, to make an honest living and to reduce costs, my fiancé eventually cancelled her medical aid cover. Read more...

23 comments 1277 views
Submitted by
Lesego Setou
Blame it on Joshua

There are three subjects I find very interesting, its Life, Love and Leadership. Read more...

10 comments 514 views

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

Pre-order your iPhone 6 at kalahari.com

Hurry and pre-order your own iPhone 6 now at SA’s favourite online store!

Bargain box – 60% off

Reduced prices, very limited stock. While stocks last. Hurry and shop now!

Mind blow low prices on electronics

Get either the Prestigio multiphone or Proline tablet 7” tablet for only R699. Offers valid while stocks last. Shop now!

30% off Barbie toys

Save 30% on all Barbie toys and accessories. Offer valid while stocks last. Shop now!

Baby extravanganza month at kalahari.com

Celebrate baby month with a wide range of awesome baby products. Offers valid while stocks last. Shop now.

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

 

services

E-mail Alerts The latest headlines in your inbox

RSS feeds News delivered really simply.

Mobile News24 on your mobile or PDA

E-mail Newsletters You choose what you want

News24 on your iPhone Get News24 headlines on your iPhone.

SMS Alerts Get breaking news stories via SMS.

Blogs Your opinion on you, me and everyone.

Calais Website keywords automated by OpenCalais.

 
Interactive Advertising Bureau
 
© 2014 24.com. All rights reserved.
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.