#StateCaptureReport: The wheelings and dealings

2016-11-06 06:05
Mcebisi Jonas (Netwerk24)

Mcebisi Jonas (Netwerk24)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories


Met with Duduzane Zuma in Rosebank, Johannesburg, as requested by Fana Hlongwane and ended up at the Gupta house in Saxonwold. He was offered the job of finance minister by Ajay Gupta, but declined, saying only the president could make such decisions. Gupta then revealed that, at the time, his family had made R6 billion from the state and wanted that figure to grow to R8 billion, adding that National Treasury was a stumbling block for their ambitions. They needed Jonas to remove the current director-general and other members of the executive. Gupta then asked Jonas if he had a bag he could use to put in R600 000 he wanted to give him and that a further R600 million would be deposited into Jonas’ account of choice. Jonas left and immediately informed then finance minister Nhlanhla Nene, current Finance Minister Pravin Gordhan and ANC treasurer-general Zweli Mkhize.


Gordhan told Advocate Thuli Madonsela that before he was reinstated – following Nenegate – Jonas had told him something was bothering him, but did not reveal details. After his appointment, Jonas then shared with him how the Guptas had offered him the position of minister of finance. President Jacob Zuma appointed Gordhan as finance minister on December 13 last year, mainly to stabilise the markets. He accepted the offer and the appointment was finalised on December 14. National Treasury staff then told him that Des van Rooyen had arrived with advisers demanding information on the SAA Airbus swap deal.


The former Government Communications and Information System (GCIS) CEO received numerous meeting requests from the Guptas late in 2010. He agreed to the meeting eventually and on the way there, he received a call from the president’s PA saying: “Ubaba ufuna ukukhuluma nawe” (loosely translated, the president wants to talk to you). Zuma then got on the line and said: “Kuna labafana bakwaGupta badinga uncedo lwakho. Ngicela ubancede” (loosely translated, the Gupta brothers need your help, please help them). Maseko met with Ajay Gupta and another brother who told him they were setting up The New Age newspaper and wanted government advertising channelled to the paper. Maseko told them that the GCIS did not have the advertising budget because it was within various departments. Gupta apparently said: “Tell us where the funds are and inform the departments to provide the funds to you and if they refuse, we will deal with them. If you have a problem with any department, we will summon ministers here.”


Former public enterprises minister Barbara Hogan
said during her tenure (2009 to 2010), Zuma and ANC secretary-general Gwede Mantashe took interest in the appointment of board members at various state-owned enterprises. She said Zuma made it difficult for her to do her job. During a state visit to India in June 2010, she noticed that the Gupta family members had taken over control of the proceedings and appeared to be directing the programme. She approached then SAA board chair Cheryl Carolus about the strange events. Soon thereafter, Zuma dismissed her.


Public Enterprises Minister Lynne Brown appointed the board at Eskom in September last year, which included CEO Brian Molefe. Some board members had direct and indirect business or personal relations with the president’s son, Duduzane Zuma, the Gupta family and their related associates.


Mineral Resources Minister Mosebenzi Zwane is alleged to have used his position as a minister to assist Gupta-owned company Tegeta to secure the sale of the Optimum Coal mine owned by Switzerland-based company, Glencore. His visit to Glencore conveniently coincided with the visit of a Gupta delegation to the company’s headquarters.

Zwane’s flight schedule was adjusted to include an additional flight, resulting in additional travel expenses incurred at R96 630. The report states that if there is no explanation for why additional costs were incurred, this could point to fruitless and wasteful expenditure.


He was appointed finance minister on December 9 last year – after the abrupt removal of Nene.

He reported for duty at National Treasury with an adviser who had been in contact with someone at Saxonwold the day before. He and his advisers demanded information on the SAA Airbus swap, among other deals.

Four days later he was reshuffled to the cooperative governance and traditional affairs department. He can be placed in Saxonwold on at least seven occasions, including on the day before he was appointed as minister of finance.

Read more on:    pravin gordhan  |  brian molefe  |  des van rooyen  |  state capture

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
1 comment
Add your comment
Comment 0 characters remaining

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.