Spies plan 25 secret bases

2011-11-05 18:24

A former National Intelligence Agency (NIA) operative, who is now a ­private security consultant, has ­lifted the veil on how the intelligence agency used a front company to ­create 25 secret bases across the country fitted with sophisticated monitoring equipment.

The revelations are contained in a lawsuit by PJG Integrated Security and Safety Consultants, which is ­suing Hedgeway Staffing and ­Admin Solutions, a front company for the NIA.

According to court papers, the front company has broken South ­African companies law and tax ­regulations and acted fraudulently.

An affidavit by Peter John Galloway, head of PJG, says his company was hired by Hedgeway to set up the secret “warehouses” on contract.

But he’s now demanding R6.7 million he says he’s owed for work done in Nelspruit, Durban, ­Polokwane and Joburg.

The court papers give insight into the workings of the intelligence agency in SA, and claim that payments – even transactions amounting to millions – are all done in cash.

The papers also say Hedgeway has no financial statements or articles of association and was ­simply used as a shell for handling contracts with external contractors.

Because all its transactions are ­made in cash, NIA even paid the substantial bank charges on these cash deposits for contractors.

 Galloway’s bank statements corroborate substantial cash payments.

The court papers state that Hedgeway’s auditor confirmed to Galloway’s attorney that the auditor had not prepared financial statements for the company.

Galloway argues that, as a result, NIA not only contravened the Companies Act, but also South ­Africa’s tax laws. The agency is also accused of fraud in using front companies that will only transact in cash.

The court documents say Hedgeway’s only director is “Reggie Bosie” – not his real name, but his true identity is revealed in the court papers – a senior official in the NIA.

Bosie had hired Galloway to set up new sites for the agency and he would decide on the technology the sites would be equipped with. He ­also equipped vehicles for the sites.

Galloway is claiming R6.7 million for the last four sites he established out of the series of 25. He has already won a default judgment for the debt in court after the agency ignored his demand for payment for months.

He was successful in having Hedgeway liquidated earlier this ­year, and a court sheriff tried to seize its assets at NIA’s headquarters in ­Pretoria – but he was sent ­packing by the intelligence agency’s officials.

Following the sheriff’s visit, Galloway’s legal team received a threatening lawyer’s letter from NIA which accused him of breaking the law and said if he pursued his claim he would be charged and his farm attached. He doesn’t own a farm.

He’s now preparing for the legal ­“interrogation” later this month of some top NIA ­officials in terms of the Companies Act. They could be interrogated in open court about the agency’s affairs and methods.

Spokesman Brian Dube said the NIA would prefer not to comment “given the legal issues at play”.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

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
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


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.


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.