#StateCaptureReport Round-Up: Treasury was a 'stumbling block' to Guptas' business ambitions

2016-11-02 18:30

Former Finance Minister Nhlanhla Nene thought the Gupta family’s alleged offer to Mcebisi Jonas to take over his job was a 'just a bluff', according to details revealed in the former Public Protector Thuli Madonsela’s report on state capture.

Download the full report here.

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Last Updated at 19:09
02 Nov 22:07

02 Nov 21:08

If you want to know how Atul Gupta is feeling about the “State of Capture” report released by the office of the Public Protector on Wednesday, his retweets of some of Twitter's most boisterous political commentators are the closest you will get.

Gupta, who has not responded to media queries by News24 or Fin24, was on twitter on Wednesday after former public protector Thuli Madonsela's report into allegations his family had captured key politicians and civil servants to ensure government tenders went their way.

02 Nov 20:56

Ratings agencies will most likely see the Public Protector’s report on state capture as a sign of institutional strength in South Africa, economists say. 

Gina Schoeman, South Africa economist at the global bank Citi, told Fin24 that the release of the report, although damning, would satisfy ratings agencies who want to see that the country’s Chapter 9 institutions are sound. 

“Although financial markets may take a while to digest former Public Protector Thuli Madonsela’s 355-page report, financial markets will in all likelihood price in a greater probability of an earlier exit of President Jacob Zuma.” 

02 Nov 20:54

5 damning diagrams from #StateCaptureReport

02 Nov 20:41

02 Nov 19:43

Tegeta offered three options: Roll over the debt, Tegeta would put in R1 billion in cash or they would pay cash if given a discount.

Direct quotes from the report below.

02 Nov 19:20

02 Nov 19:14

Flight records included in the report show Zwane was on board a flight from Johannesburg to Dubai on November 29, and arrived in Zurich, Switzerland, the next day.

But Zwane was not on board a flight scheduled for him from Zurich to Dubai on December 2, nor on another flight from Dubai to Delhi, India, booked for December 3.

Zwane also missed what would have been his return flight from Delhi to Dubai on December 5. A flight booked for him from Dubai to Johannesburg for December 7 also went unused.

These missed flights cost the South African taxpayer just over R96 000, which, if they could not be "fully explained", would amount to fruitless and wasteful expenditure, reads the report.

02 Nov 19:12

A series of unused flights during a "mysterious" trip abroad by Finance Minister Mosebenzi Zwane, during which he allegedly escorted a member of the Gupta family to a meeting with an international mining company, may have cost taxpayers nearly R100 000 in possibly fruitless or wasteful expenditure. 

Below is a breakdown of the flights from the public protector's report.

02 Nov 18:54

Cabinet’s attempt to intervene in the matter of local banks closing Gupta-owned company accounts may indicate a conflict of interest for President Jacob Zuma.

This is according observations made in former Public Protector Thuli Madonsela’s report on state capture

02 Nov 18:48

The ANC Women's League responds to the Public Protector's report.

02 Nov 18:46

A word cloud of the words used in the State of Capture report created by Allan Davids.

02 Nov 18:43

The Treasury was a "stumbling block" to the Guptas' business ambitions and the family asked Deputy Finance Minister Mcebisi Jonas to sack its director general, according to the former Public Protector’s "state capture" report.

He would have had to do this if he had accepted the Guptas' offer of becoming finance minister. He turned them down.

02 Nov 18:24

Madonsela reminded Zuma that he was an employee of the State.

02 Nov 18:22

More from the transcript of Madonsela's interview with Zuma and his lawyer Michael Hully.

02 Nov 18:20

Thuli Madonsela asks Zuma's lawyer why the president can't answer questions without legal advice.

Excerpt from the transcript below.

02 Nov 18:14

Get a transcript below of former Public Protector Thuli Madonsela's full interview with President Jacob Zuma regarding the state capture report.

02 Nov 18:11

Madonsela says in the state capture report that allegations that the SABC entered into contracts with the Gupta-owned The New Age newspaper will be probed in the next phase of the investigation. 

"Following allegations, I have decided to investigate any contract(s) awarded to the New Age newspaper and/or TNA Media by the SABC. The investigation into SABC will however form part of the next phase of the investigation," Madonsela said. 

02 Nov 17:56

Former Finance Minister Nhlanhla Nene thought that the Gupta family’s alleged offer to Mcebisi Jonas to take over his job was a “just a bluff”, according to details revealed in the former Public Protector Thuli Madonsela’s report on state capture.

President Jacob Zuma sacked Nene on December 9 2012 in a move that sent the rand crashing and markets tumbling.

Zuma replaced Nene with Des van Rooyen. But days later, Zuma dropped van Rooyen and instead hired Pravin Gordhan as Finance Minister.

02 Nov 17:54

02 Nov 17:48
What size bag do you have available, Mister Jonas?

02 Nov 17:43

The New Age Board Chairman Atul Gupta, President Jacob Zuma and First Lady MaNtuli Zuma at the Bidvest Wanderers Stadium for a T20 match between South Africa and India in March 2012. (Photo: GCIS)

02 Nov 17:36

Former ANC MP Vytjie Mentor who has said the Guptas offered her a ministerial position, posted on Facebook that she has received a copy of the report.

02 Nov 17:30

Deputy Public Protector Kevin Malunga spoke to News24 about the report.

02 Nov 17:29

The key questions the Public Protector asked during the investigation into state capture were:

- Whether President Jacob Zuma improperly allowed members of the Gupta family and his son to be involved in the process of removal and appointment of the minister of finance in December 2015;

 - Whether Zuma improperly allowed members of the Gupta family and his son to engage or be involved in the process of removal and appointing of various members of Cabinet; 

- Whether Zuma improperly allowed members of the Gupta family and his son to be involved in the process of appointing members of the Board of Directors of state owned enterprises.

02 Nov 17:23

02 Nov 17:22

Thuli Madonsela said Glencore appears to have been severely prejudiced by Eskom’s actions in refusing to sign a new agreement with them for the supply of coal to Hendrina Power Station.

“It appears that the conduct of Eskom was solely for the purposes of forcing OCM/OCH into business rescue and financial distress,” she said.

The graphic below from the report shows how payments to Glencore were structured.

02 Nov 17:19

Madonsela has nailed Eskom over the Gupta coal tender in her report.

Almost a billion rand worth of prepayment by Eskom to Gupta-owned Tegeta Resources & Energy for a coal tender that was allegedly used to buy Optimum Coal Mine (OCM) from Glencore may be corrupt, illegal and amount to fruitless and wasteful expenditure.

The table below is from the report and shows payments to Tegeta.

02 Nov 17:15

Former Public Protector Thuli Madonsela’s State of Capture report expresses concerns about the Gupta family’s involvement in the removal of Finance Minister Nhlanhla Nene.

In her much-awaited report, she said President Jacob Zuma was required to select and appoint ministers lawfully and in compliance with the executive ethics code.

02 Nov 17:05

Note that Eskom CEO Brian Molefe gets more mentions in the report than former Minister of Finance Des van Rooyen.

02 Nov 17:03
Ajay Gupta calls Eskom CEO Brian Molefe his "very good friend".

02 Nov 16:54

Economists shared their views on the potential impact of the Public Protector's report on state capture on SA's economy, ratings agencies and the rand.

02 Nov 16:49

02 Nov 16:47

Eskom CEO Brian Molefe and Ajay Gupta, the eldest of three Gupta brothers, made 58 telephone calls to one another between August 2015 and March 2016, according to the report.

02 Nov 16:44

02 Nov 16:44

02 Nov 16:44

02 Nov 16:43

02 Nov 16:43

02 Nov 16:41

Fana Hlongwane, the business man who was at the centre of the arms deal scandal, also acted as a middle man between the Gupta's and politicians and that he had access to one off Madonsela's documents, the report indicates.

02 Nov 16:35

Des van Rooyen made several calls to Saxonwold.

02 Nov 16:27

02 Nov 16:26

Rand currently at R13.38.

02 Nov 16:24

Here is the list of people who have been implicated by the evidence:

02 Nov 16:19

02 Nov 16:17

02 Nov 16:15

02 Nov 16:15

02 Nov 16:14

02 Nov 16:14

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