Ramaphosa’s Phala Phala report classified as ‘Top-Secret’

Minister of Police Senzo Mchunu has said that the Independent Police Investigative Directorate (IPID) report on the controversial Phala Phala farm theft has been classified as “top secret.” 

This was revealed in response to a parliamentary Q&A session, where questions about the report were asked by the African Transformation Movement (ATM) leader, Vuyolwethu Zungula.

The Phala Phala saga began in June 2022 when criminal charges were laid against President Cyril Ramaphosa and members of his security detail.

Former director-general at the State Security Agency Arthur Fraser alleged that Ramaphosa and his team had covered up a February 2020 burglary at his game farm, where large sums of foreign currency—allegedly concealed in furniture—were stolen.

The money, reportedly around $580,000, was said to be a payment from Sudanese businessman Hazim Mustafa for 20 buffalo.

In his parliamentary Q&A, Zungula asked Mchunu when the IPID report would be released, given the repeated calls for transparency regarding the saga and its publication. 

Mchunu responded that the investigation had been completed and that IPID had referred its recommendation report to the South African Police Service (SAPS) on 3 October 2023. 

Mchunu added that IPID was satisfied with SAPS’s response, but the report was classified as “top secret” under Paragraph 3.4.4 of the Minimum Information Security Standards, meaning it cannot be disclosed unless formally declassified.

Zungula further questioned why the report had not been released despite nine formal requests from his office and 11 complaints. 

Mchunu replied that it is impermissible to make available a classified report for the purpose that ATM has requested it for. 

“In essence, there is no delay in making the report available, but it is not allowed to make it available,” said the police minister. 

Zungula then asked if Mchunu would ensure the immediate release of the ‘top-secret’ IPID report, arguing that there seemed to be a deliberate attempt to suppress it.

However, Mchunu dismissed this and said that while the IPID reports to the minister, the minister may not interfere with its operations. 

“To suggest that the minister should ensure that IPID releases an investigation report is similar to suggesting that the minister must interfere with IPID operations. 

“As indicated above, IPID has classified the report ‘top secret,’ and to suggest that the report is suppressed is disingenuous,” the police minister said. 

While this report remains classified, other investigations into the Phala Phala matter have been made public. 

In August 2023, the South African Reserve Bank (SARB) concluded that no exchange control laws had been violated in the alleged transaction between Phala Phala farm and Mustafa.

SARB’s investigation focused on whether the sale of buffalo to Mustafa constituted a breach of exchange control regulations. 

The central bank determined that there was no contravention because the transaction had never been “perfected.” 

In other words, since the buffalo were never delivered, the deal did not meet the necessary conditions to require a declaration under exchange control laws. 

“Thus, the SARB cannot conclude that there was any contravention of the Exchange Control Regulations… by Ntaba Nyoni Estates CC (the entity involved) or, for that matter, by the President,” the bank stated in its report.

Despite SARB’s findings, critics remain sceptical, arguing that the unresolved questions surrounding the source of the money and its storage in furniture continue to cast a shadow over the presidency. 

Transparency advocates and opposition parties have insisted that the public deserves to see the full findings of all investigations, particularly the IPID report, which deals directly with law enforcement’s handling of the case.