A judicial commission which has spent almost four years probing graft in South Africa concluded that the state had been \u201ccaptured\u201d during former president Jacob Zuma\u2019s tenure and made damning findings against the ruling party and top officials.<\/p>\n
The panel, headed by acting chief justice Raymond Zondo, submitted the first of a three-part report to president Cyril Ramaphosa on Tuesday, with the others to be handed over by the end of next month. Hundreds of witnesses testified how government coffers were systemically looted over the course of Zuma\u2019s almost nine-year rule.<\/p>\n
\u201cThis commission has concluded that state capture has been established,\u201d Zondo said in the report.<\/p>\n
He found that the state procurement processes were abused, pliable officials were appointed to oversee the improper allocation of government contracts and the ruling African National Congress benefited from the proceeds of corruption.<\/p>\n
The probe also determined that governance collapsed at state entities, while a number of private companies initiated or participated in corrupt arrangements, and there was an absence of any internal safeguards to prevent them from doing so.<\/p>\n
Zuma\u2019s name was repeatedly mentioned in the report, although no direct recommendations were made that he be investigated further or prosecuted. He has repeatedly denied wronging.<\/p>\n
The initial 874-page document, published on the presidency\u2019s website, covers the panel\u2019s investigations into allegations of wrongdoing at state-owned airline South African Airways and its affiliates, the South African Revenue Service and The New Age, a newspaper owned by the Gupta family, who were close associates of Zuma\u2019s and were in business with one of his sons.<\/p>\n
These are some of its other key findings:<\/p>\n
South African Airways<\/strong><\/p>\n The panel called for law enforcement agencies to consider prosecuting several of the carrier\u2019s former board members, including close Zuma ally Dudu Myeni, its former chairwoman, Phumeza Nhantsi , an ex-chief financial officer, and Yakhe Kwinana, a former director.<\/p>\n All three denied wrongdoing when they testified before Zondo.<\/p>\n Investigations into the airline and its technical services unit showed \u201cthat fraud and corruption took hold in these entities,\u201d the judge said.<\/p>\n The panel heard evidence of how a competent board was forced to resign during Zuma\u2019s tenure, paving the way for the appointment of incompetent one that led the national carrier to financial and operational ruin.<\/p>\n Two finance minister explained to the commission Myeni was retained as chairwoman because of Zuma\u2019s personal preferences, which was \u201cthe antithesis of accountability,\u201d Zondo said.<\/p>\n SAA spent months in business rescue, a form of bankruptcy protection, and the government is in the proceeds of selling a majority stake in the airline to private investors.<\/p>\n South African Revenue Service<\/strong><\/p>\n Evidence related to the tax agency demonstrated how the private sector colluded with the executive, including Zuma, to capture what was a highly regarded institution and render it ineffective, Zondo said.<\/p>\n He found that SARS was systemically and deliberately weakened through restructuring, strategic appointments, dismissals of key staff, and a pervasive culture of fear and bullying.<\/p>\n Evidence was presented that Zuma undertook to name Tom Moyane as the agency\u2019s commissioner before his formal appointment. Bain & Co also met with Zuma and Moyane before it was signed up as a consultant and it was clear it would be given a contract even before a tender process had begun, Zondo said.<\/p>\n \u201cThe purpose of these early \u2018appointments\u2019 was to ensure that the necessary pre-planning could be done to redirect the resources of the organization and assume control of the organization,\u201d the judge said.<\/p>\n Zondo recommended that all Bain\u2019s contracts with state departments and organs of state be re-examined for compliance with statutory and constitutional provisions.<\/p>\n He also called on law enforcement agencies to investigate whether there were grounds for prosecutors to lay charges in connection with the award of the Bain contracts. Bain\u2019s media representatives didn\u2019t immediately respond to an emailed request for comment.<\/p>\n Zondo recommended that Moyane be charged with perjury for giving false evidence to parliament, while legislation should be amended to allow for an open, transparent and competitive process for appointing the SARS commissioner.<\/p>\n Moyane, who gave evidence before the commission under subpoena on May 26, 2021, has consistently denied wrongdoing.<\/p>\n The New Age<\/strong><\/p>\n State capture also took hold through the Gupta-owned TNA Media Ltd, which produced The New Age newspaper and held a series of breakfast briefings in partnership with the state broadcaster, securing lucrative sponsorship deals with government entities, Zondo found.<\/p>\n He concluded that Collin Matjila, a former acting chief executive officer at Eskom Holdings was a \u201ckey facilitator\u201d of deals signed by the state power utility, and agreed to the largest contracts TNA had ever entered into, even though he wasn\u2019t authorized to do so.<\/p>\n The judge said law enforcement should conduct further investigations to determine whether Matjila should be prosecuted for fraud. Matjila has denied wrongdoing.<\/p>\n Zondo also found that part of the government\u2019s R600 million ($37 million) annual advertising budget was redirected to benefit TNA, resulting in \u201cunjustified public spending\u201d that took place from 2011 to 2017 through Eskom, SAA and logistics company Transnet SOC Ltd.<\/p>\n \u201cGovernment departments and state-owned enterprises used scarce public resources to secure advertising in or sponsorships with TNA that defied logic and legal requirements,\u201d Zondo said.<\/p>\n \u201cIt shows the extent of the Guptas\u2019 influence in the public sector in South Africa as well as the Guptas\u2019 strategy to replace officials that were not compliant with their looting scheme.\u201d<\/p>\n
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