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Bosasa’s corrupt business model is at the heart of part 3 of the State Capture report



“Corruption was central to Bosasa’s business model” and ANC bigshots, including former president Jacob Zuma, Gwede Mantashe, Nomvula Mokonyane and Thabang Makwetla, saw nothing wrong with enjoying the spoils of the corrupt relationship between the company and the state.

In the most recent episode of the Commission of Inquiry into the reports of the coup, Acting Chief Justice Raymond Zondo concludes that “Bosasa (and the Watson family) was a fairly well-organized network of well-placed, well-connected and powerful people whose loyalty was assured. with financial and other material incentives and bribes.”

He bases this on the testimony of the infamous Angelo Agrizzi and other witnesses, who showed that the company was using their access to senior ANCs to “promote and protect Bosasa’s private interests through irregular tenders and practices to get money from the state in very substantial amounts.”

The presidency has released the third part of the report of the Judicial Commission of Inquiry into coup allegations, Corruption and Fraud in the public sector on Tuesday evening, after it was presented by Commission Secretary, Itumeleng Mosala, to President-General of the Presidency, Phindile Baleni.

Examine the top brass

Zondo recommends that Zuma, Mantashe, Mokonyane and others be investigated for corruption related to the awarding of contracts to Bosasa by multiple government agencies, state-owned enterprises and other entities.

The report found that members of the national executive and other state officials influenced the award of tenders to benefit not only themselves but also “their families or entities in which they had a personal interest”.

The former president is said to have benefited in the form of sponsored lavish birthday parties and monthly payments of R300,000 to his Jacob G Zuma Foundation, which the report said amounted to a violation of his constitutional obligations as president.

Also read: Agrizzi Testifies on Dudu Myeni and Zuma’s Role in Bosasa Fracking Agreement

In exchange for the company’s generosity, Zuma is said to have interfered with the government’s plans to cancel Bosasa’s contracts.

Former minister Nomvula Mokonyane also faces scathing criticism from Zondo for accepting gratuities from Bosasa, advising law enforcement against her for corruption.

The report says, “There were clearly extensive efforts by Bosasa and her leaders, through various forms of inducement and gain, to influence Ms. Mokonyane in her position as a member of the national executive, deputy states and office holder in state organs.”

Also read: WATCH: Mokonyane’s personal assistant on stage at Zondo committee

Mokonyane apparently benefited in the form of monthly payments of R50,000 and paying for her 40th birthday party.

Former Secretary General of the ANC and current Minister of Mineral Resources and Energy Gwede Mantashe also benefitsbased on Bosasa’s corrupt business model, in the form of CCTV cameras in his homes in Boksburg and Cala in the Eastern Cape.

Similarly, Deputy Defense Minister Thabang Makwetla received a security system for his house, and after this gift was made public, he ended up paying a huge discounted R25,000 for the system of R90 000.

The report also recommends investigating him.

According to the report, ANC MP and Speaker Cedrick Frolick should also be investigated for corruption over his alleged acceptance of cash payments in exchange for setting up a meeting between the company and former ANC MP Vincent Smith.

Smith is said to have facilitated several contracts for Bosasa, in his former role as chairman of Parliament’s correctional services portfolio committee, in exchange for millions in cash and payment of his daughter’s tuition.

Also read: Ex-ANC MP Vincent Smith’s fraud and corruption case postponed until April

Smith, along with Agrizzi, are already facing criminal charges in connection with these alleged payments.

ANC Elections War Room

The report found that using Bosasa’s Krugersdorp offices as a ‘war room’ for the ANC’s 2014 election campaign provided an unacceptable advantage to the ruling party.

It recommends that the ANC officials behind this deal, as well as former Bosasa directors Papa Leshabane and Joe Gumede, be investigated further.

Also read: IEC to investigate ANC’s ‘Bosasa-funded election war chambers’ – DA

Zondo suggests that this deal may have been an attempt by Bosasa to win favor with the top of the ANC.

Zondo not ready yet

The Zondo Commission, as the investigation has become known, began its work on August 21, 2018 and has heard the testimony of more than 330 witnesses.

Since then, the committee has faced several delays in completing its work, including the challenges posed by the Covid-19 pandemic.

Gauteng Supreme Court in Pretoria recently awarded the Commission has two months – until the end of April 2022 – to complete its work.

Proportionately, the Supreme Court granted the president a four-month grace period after receiving the full report to submit an implementation plan to Parliament in response to the report.

  • This is a story under development and further details of the report will be published in due course.

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