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@Eskom_SA @StateCaptureCom #StateCaptureInquiry Maleka says there has been no response as yet to the notices issued to the eight above. He mentions charges against Koko, disciplinary action against Daniels and charges against Kalima.
@Eskom_SA @StateCaptureCom #StateCaptureInquiry Maleka refers to a Rule 34 (4) notice from #Eskom @Eskom_SA to @McKinsey in relation to certain documents. He then mentions a Special Investigations Unit (SIU) investigation set out in a certain bundle.
@Eskom_SA @StateCaptureCom @McKinsey #StateCaptureInquiry Maleka says the legal team has raised concerns over the status of contracts with Tegeta and related entities. He predicts Mabuza will address this issue when he presents evidence this morning.
@Eskom_SA @StateCaptureCom @McKinsey MT: #StateCaptureInquiry Maleka hands up a folder containing notices of people implicated in Mabuza's statement. There are eight:
Anoj Singh
Sean Maritz
Edwin Mabelane
Charles Kalima
Krish Govender
Susanne Daniels
Abram Masango
Matshela Koko
@Eskom_SA @StateCaptureCom @McKinsey #StateCaptureInquiry Mabuza takes the oath. Maleka invites Mabuza to speak on the successes and failures of his career. He says Mabuza has a blank canvas and is invited to fill it in with broad strokes.
@Eskom_SA @StateCaptureCom @McKinsey #StateCaptureInquiry Mabuza speaks about his upbringing in Mpumalanga, matriculating, starting law studies he later dropped out of, working as a taxi driver, then working for SAB, before becoming CEO of Tsogo Sun around 1995 or 1996. He describes a range of other positions.
@Eskom_SA @StateCaptureCom @McKinsey #StateCaptureInquiry Mabuza speaks of his current position as Telkom chair, which will come to an end in May 2020, and Maleka says there is no information they have that Telkom was subject to state capture attempts. "Not that I know of," says Mabuza. He asks Mabuza why is that?
@Eskom_SA @StateCaptureCom @McKinsey Mabuza says, "So, why? I think the people, the board members were committed, were diligent, were dedicated, wanted nothing but to serve [...] follow the law and allow the executive the space and the authority to do what they need to do [...] the board deals with shareholders."
@Eskom_SA @StateCaptureCom @McKinsey #StateCaptureInquiry Maleka raises @CompComSA investigations into Telkom, asks Mabuza what was the outcome? "There were various accusations that Tekom wholesale [...] was prioritising its own," says Mabuza. He adds there were various anti-competitive conduct claims, fines paid.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA #StateCaptureInquiry Maleka notes a fine Telkom had to pay for over R1 billion, which Mabuza confirms. They move on to #Eskom. Mabuza describes how he was appointed as the chair of @Eskom_SA's "clean up" board.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA #StateCaptureInquiry Mabuza says then Minister of Public Enterprises Lynne Brown called him to say a decision had been taken to appoint him as #Eskom @Eskoma_SA board chair. He then got a congratulatory call from Deputy President Cyril Ramaphosa, he says.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA #StateCaptureInquiry Maleka asks Mabuza when he received the call from Brown. Mabuza replies the 19th January 2018, and Maleka asks when he as chair and the new board were announced, Mabuza replies 22nd January 2018. Note: Media articles on the change appear from 20 January 2018.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA #StateCaptureInquiry Mabuza says he distanced himself from his company Sphere Holdings "as soon as" he was appointed #Eskom @Eskom_SA board chair. He says he was, when appointed, involved with the company which held one third of #Eskom's boilers.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA #StateCaptureInquiry Maleka refers to a director's declaration of interest for Mabuza, which has a July 2018 date. He asks Mabuza when Mabuza understands the declaration was finalised. Mabuza says it was finalised on 26 January 2018 but was periodically updated.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA #StateCaptureInquiry Mabuza says he bought 6% of Sphere Holdings for R26 million which he paid for from his "after tax money" and responds to Maleka's question on a "blind trust" and when it was finalised. "Do you control it or not?" asks Maleka. "I don't know," says Mabuza.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA #StateCaptureInquiry Mabuza returns to his interests declaration. He raises, for the sake of completion, his wife is related to Themba Langa, who is in mining, Mabuza had a role in raising Langa, and the Mabuzas and Langas have a joint venture in mining.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA #StateCaptureInquiry Maleka has raised certain questions on Tegeta, who they are, what contracts it may or may not currently hold #Eskom @Eskom_SA and notes a witness from the utility (other than Mabuza) will testify on this. Proceedings adjourn for tea.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA #StateCaptureInquiry Proceedings resume. Maleka refers to documents provided to @SrtateCaptureCom by #Eskom @Eskom_SA's counsel, including a @TreasuryRSA report regarding its concerns on the allegations of coal contracts to, among others, Tegeta.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA #StateCaptureInquiry Maleka refers to the report and asks Mabuza to deal with what he and his board found when they got to #Eskom. Maleka asks Mabuza when he became aware of the @TreasuryRSA report.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA #StateCaptureInquiry Mabuza clarifies his point on meetings about coal and says he does not get involved in meetings on procurement, but in terms of #Eskom @Eskom_SA coal strategy, yes, he attends those because he chair the board making decisions on that.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA #StateCaptureInquiry Mabuza says he became aware of the @TreasuryRSA report on Tegeta around November 2018. Maleka has said it is a concern that the remedial action in the report appears not to have been implemented as yet.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA #StateCaptureInquiry "Not to my recollection," says Mabuza in reply to a question from Zondo on if and when the report was tabled to the #Eskom @Eskom_SA. However, Maleka refers to an annexure. A woman walks to Mabuza with a page in her hand, then pages through a file with him.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA #StateCaptureInquiry Zondo says if anyone is going to assist Mabuza it should be a person arranged by the evidence leader, he says it could be innocuous but it may not look good. Maleka says he just wants an explanation on why @TreasuryRSA's report wasn't tabled.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA #StateCaptureInquiry Mabuza says that it is urgent that the report and its remedial action be considered by #Eskom @Eskom_SA's "clean up" board. Maleka says this report of 2017 it ought to have been on the radar screen of the "clean up" board.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA #StateCaptureInquiry "There was a board that was in office it is that board that would have received this report, "says Mabuza. Maleka refers to money issues, including #Eskom @Eskom_SA's prepayment to Tegeta.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA #StateCaptureInquiry Mabuza: Broadly the issues around this Tegeta contract are around four main buckets: the price, prepayment of R600 million, compliance of the contracts and the tenure of the contracts being extended outside procedure.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA #StateCaptureInquiry Mabuza: Some action we have started taking since my statement was filed, some will continue, some land in the area of criminal charges being laid but there are others were are working on that are of a civil nature.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA [PARAPHRASED] #StateCaptureInquiry Mabuza: The action does involve people holding political office, people on the board, does support staff of the board, it relates to Chief Executives to Chief Financial Officers.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA [JUST IN] #StateCaptureInquiry Mabuza says of #Eskom @Eskom_SA action in relation to Tegeta contracts, "We have laid criminal charges, we have handed over to both the Hawks and the SIU [...] we will start pursuing those civil claims."
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA #StateCaptureInquiry These are being dealt with either in our internal disciplinary processes, or they are being pursued on a criminal level or in civil proceedings, says Mabuza on matters relating to Tegeta contracts National Treasury flagged as irregular.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA We got access to information that speaks to, that comes out of the various disciplinary hearings, that I can join dots where the guarantee expires and where a prepayment kicks in (and we can surmise as to why) but we remain curious, says Mabuza of the #Eskom guarantee to Tegeta.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA "I don't know what that was in that board's head to do it. I would not [...] Eskom has definitely suffered from reputation at least," says Mabuza of #Eskom securing a guarantee for Tegeta, adding @Eskom_SA paid about R600,000 quarterly to service the guarantee (it was not used).
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA [SUMMARISED] Mabuza: What the former board did I call curious. We have authority but we don't have authority to do everything including things that are illegal. Hopefully in the work of the Commission we'll reach a landing where office bearers especially in SOEs appreciate that.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA #StateCaptureInquiry Maleka asks Mabuza to speak about why he says he and his board arrived at the most challenging moment in #Eskom's history. "The funders had actually drawn a line in the ground. That has had many implications for Eskom," says Mabuza.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA #StateCaptureInquiry Mabuza: #Eskom was once in the top five utilities in the word. You've got to see it in that context. Indeed, it was the main theatre where corruption, state capture was taking place. Morale was low, people were not proud to be associated with the organisation
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA Mabuza says, "It's called corruption. The name is corruption but the game is procurement." Eskom had a guarantee of about R350 billion by the time he arrived and about R100 billion on unused guarantees. "But the guarantee is quite specific. The guarantee is for capital projects."
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA #StateCaptureInquiry Mabuza describes the impact of one SOE defaulting on a guarantee and its knock-on and "fatal" effect on the sovereign. He says Afrikaners have a good word for describing what happens, how bad it is, but he cannot use it here.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA #StateCaptureInquiry Mabuza says, "A breach of any of the covenants with Eskom [...] all debts come up for cross default." He submits defaulting on a guarantee is fatal not only for the economy but the country. Mabuza adds #Eskom has not defaulted on a guarantee.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA #StateCaptureInquiry "We needed a cash injection of R20 billion to take us through to August, September," says Mabuza of the liquidity crunch he and the current #Eskom @Eskom_SA board faced on arrival.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA #StateCaptureInquiry Mabuza speaks about matters relating to securing #Eskom @Eskom_SA as a going concern and an intention to go to the bonds market in March 2018 to raise funds.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA #StateCaptureInquiry Maleka asks Mabuza about Mark Lamberti and George Sebulela leaving #Eskom @Eskom_SA's board months after they arrived with Mabuza to "clean up" the utility. Proceedings adjourn for lunch.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA [JUST IN] #StateCaptureInquiry Hawks spokesperson Brigadier Hangwane Mulaudzi says, "There are different legs of investigations at Eskom and, yes, Tegeta is one of them. We can't mention others because that compromises our ongoing probes."
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA #StateCaptureInquiry Mulaudzi of the Hawks continues, saying, "The board has been very cooperative and has assisted a lot thus far." He tells #eNCA403 the Eskom, Tegeta cases go back to 2017.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA [JUST IN] #StateCaptureInquiry Viwe Mlenzana, Acting Chief Officer of Enforcement at Sars, tells #eNCA403 that @sarstax is keeping a "keen eye" on the @StateCaptureCom.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA @sarstax #StateCaptureInquiry Mlenzana will not speak specifically on the action by authorities at the #Bosasa offices in Gauteng but says there are various @sarstax operations around South Africa underway today in relation to suspected non-compliance to tax laws.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA @sarstax #StateCaptureInquiry You can listen to Mlezana's interview with #eNCA403 below. "There are a lot of issues that have come out of the commission that are of concern to us [...] where there has perhaps been alleged non-compliance with tax laws," says Mlezana…
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA @sarstax #StateCaptureInquiry The @NPA_Prosecutes has sent #eNCA403 a statement on the work on Tegeta contracts with @Eskom_SA which raises the issue of "resource problem" which is reportedly being addressed in that "they are looking at what can be done with existing resources."
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA @sarstax @NPA_Prosecutes #StateCaptureInquiry The @NPA_Prosecutes statement continues, "The NPA confirms that it has been working with the SIU in the corruption probe into Eskom, since August 2018 (soon after the SIU Proclamation on the investigation, around June 2018)."
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA @sarstax @NPA_Prosecutes #StateCaptureInquiry "The NPA, the SIU and the Hawks are in the process of prioritising these matters, and the NPA will be looking at providing dedicated prosecutors to deal with specific cases," reads @NPA_Prosecutes statement sent in reply to #eNCA403's query on Tegeta & Eskom.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA @sarstax @NPA_Prosecutes [BREAKING] #StateCaptureInquiry @StateCaptureCom
A statement on behalf of Chairperson Deputy Chief Justice Raymond Zondo responds to @City_Press questions about the initial awarding of an inquiry security contract to a subsidiary of #Bosasa.
@Eskom_SA @StateCaptureCom @McKinsey @CompComSA @TreasuryRSA @sarstax @NPA_Prosecutes @City_Press #StateCaptureInquiry The statement issued on Zondo's behalf notes that the security contract with the #Bosasa subsidiary was halted and a forensic investigation was initiated following questions to the @StateCaptureCom from @City_Press.
[JUST IN] #StateCaptureInquiry Proper procurement procedures flouted in the awarding of a security contract related to the @StateCaptureCom to a subsidiary of #Bosasa, says Zondo in a statement out now.
@StateCaptureCom #StateCaptureInquiry The statement reads, "The Commission and the [Justice] Department are agreed that procurement procedures were not followed in regard to GTS" and the Justice Minister will "in due course inform the public in greater detail of the outcome of the investigation."
@StateCaptureCom #StateCaptureInquiry "GTS is, as of now, no longer providing any services to the Commission and was asked to remove its equipment from the premises of the Commission. GTS is now taking steps to remove its equipment from the premises of the Commission," the statement concludes.
@StateCaptureCom #StateCaptureInquiry The recent announcement by the @StateCaptureCom that awarding a now terminated security tender to a #Bosasa subsidiary GTS was irregular is likely to be a blow for suspended Secretary Dr Khotso de Wee. His stand-in's time is due to conclude 28 February.
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