Spies plan 25 secret bases

2011-11-06 17:00

Johannesburg - 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 R6.7m he says he’s owed for work done in Nelspruit, Durban, Polokwane and Johannesburg.

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.

'Reggie Bosie'

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 R6.7m 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.

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

  • Marius - 2011-11-06 17:54

    `wow! Our own Doomsday Bunkers! How do I get a ticket in? Oh wait, it is only for ANC elite?

      Servaas - 2011-11-06 19:17

      "According to court papers, the front company has broken South African companies law and tax regulations and acted fraudulently." Why oh why everywhere where the CURRENT goverment has a hand in is crime and corruption the order of the day.. Zuma & Co: You lot are a disgrace@!

  • Hartmut - 2011-11-06 18:17

    There is a place around the corner where I live. And everybody knows about it, and even what they are doing.

      En - 2011-11-06 19:07

      That's called a drug den. Please dont confuse with the above mentioned article.

  • Hunter - 2011-11-06 18:22

    25 not so secret bases

      En - 2011-11-06 19:36

      Where are these bases? Hmm? Thought so :-)

  • Yar - 2011-11-06 19:05

    Is this for spying on citizens. Welcome back Joe Stalin.

  • Wouter - 2011-11-06 19:13

    If Francis Gary Powers had been flying for the NIA instead the CIA, he would've never been shot down over the USSR. Because his plane would've been repo'd for unpaid shipping fees before he could go on his mission. There's honestly no PC way of saying this - The NIA's retarded.

  • Oneant - 2011-11-06 19:32

    who are they afraid of? zee germans?

  • Paul - 2011-11-06 20:24

    PJG did you not have a contract in Iraq killing civilians. You were chased because rape allegations and now you are claiming R6.7m which is what you lost out on your Haliburton contract. And is former security policeman Col. Carl Edwards not one of you directors who is also Helen Zille's security advisor. Carl remember Port Elizabeth has a couple of scores to settle with you, and those we will do in the loxion.

      Paul - 2011-11-06 20:36

      Yes Carl you know me Anton Lubowski's friend the only one who witnessed the assasination by your Irish thug.

      Rodney - 2011-11-06 20:37

      and your point is? what exactly has this got do with his claim for payment for work done? it's obvious the work has been done, because the court has alreay found in his favour. who cares if one of the directors is zilles security advisor, she needs to get advise from somewhere, may as well be from a professional rather than the morons who work for the ANC. Don't you feel silly threatening him on this forum? whats the bet he has never visited this website and even if he did, i doubt very much he would be concerned about you. cyber threats are kinda funny though.

      Paul - 2011-11-06 21:03

      @Rodney did you not read the first comment it had to do with PJG and their lack of ethics. Remove your blinkers red neck.

      Rodney - 2011-11-06 21:09

      i still fail to see the connection between your allegations that they were chased out of iraq on rape charges, the haliburton contract or carl edwards and the fact PJG are in court suing for outstanding money owed on completion of contract. are you trying to impress the rest of us with "insider" knowlege? it looks like a random rant over nothing, bit like your cyber threat, empty words, if you were going to "settle scores", instead of telling everyone about it, you would have done so already.v as i said, pointless but a little funny.

      Paul - 2011-11-06 21:18

      Well then you are the only one with a sense of humour. The article portrays PJG as the innocent bystander and as usual reflects the stereotype one sided mentality.

      Oneant - 2011-11-07 07:08

      @Paul : why don't the people you are clearly advocating for not get their house in order first before you start complaining about stereotypes huh?

      Foc - 2011-11-07 10:31

      Paul I sense a little bit of jealousy here ... did you miss out on getting some of the business?? I sense sour grapes ...

  • Cheryl - 2011-11-07 10:53

    spy on the ANC criminals that run this country or aspire to...

  • Lesoga - 2011-11-07 12:15

    Is not this supposed to be a secret. Do not these people sign confidentiality clause.

  • Justin - 2011-11-07 14:17

    "All your base are belong to us"

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