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Here are the people who should be very worried


Here are the people who should be very worried

Judge Zondo delves into the murky shadows that are the state capture case files

Kyle Cowan and Graeme Hosken

Deputy Chief Justice Raymond Zondo will not have to start from scratch when his commission of inquiry into state capture begins.
Civil rights organisations OUTA and Corruption Watch have been carefully monitoring state capture reports, building up their own case files and opening several cases with the police.
The National Prosecuting Authority has also started to move on state capture, with the Asset Forfeiture Unit circling around global consultancy McKinsey and boutique finance firm Trillian, in what is seen to be the first of many steps to recover an estimated R50-billion allegedly looted from state coffers.
Below is a summary of the investigations conducted by OUTA and Corruption Watch, listing the alleged state capture culprits and what charges they could or should face:
The state capture ‘architects’Jacob Zuma, president of South Africa
Suggested charges: Treason, racketeering, corruption
How he fits in: Zuma’s friendship with the Gupta family opened many doors for them, giving them access to government officials, senior executives of SOEs and cabinet ministers. Ultimately, state coffers were looted to a spectacular extent.Atul, Ajay and Rajesh ‘Tony’ Gupta
Suggested charges: Fraud, racketeering, theft, money-laundering, tax evasion, treason, corruption and extortion
How they fit in: At the centre of state capture, the trio is reported to have benefitted from a trove of business schemes registered across South Africa, Dubai, India, Hong Kong and the US in the names of relatives, friends and associates. The family struck deals with government entities allegedly by influencing powerful state officials to guarantee that business would be directed to them and their various companies. These included coal supply deals with Eskom worth billions, at least a R5-billion alleged kickback from Transnet locomotive supplier China South Rail and at least R210-million through the Free State provincial government for the Estina Dairy Farm.To date the estimated cost to the tax payer of the Guptas’ looting is R50-billion, with NPA expecting this number to double.Duduzane Zuma
Suggested charges: Fraud, racketeering, theft, treason, corruption, extortion
How he fits in: President Jacob Zuma’s son and the Gupta brothers’ business partner. He is alleged to have used and abused his relationship with his father to the benefit of the embattled brothers.Salim ‘Aladdin’ Essa
Suggested charges: Fraud, racketeering, theft, money-laundering, tax evasion, treason, corruption and extortion
How he fits in: Central figure in Gupta business empire, said to have helped facilitate key deals with the assistance of senior SOE executives that cost the taxpayer upwards of R50-billion.The Politically Motivated
The trove of leaked e-mails exposed politicians in cahoots with the Guptas, who allegedly used their positions of power to either place preferred Gupta allies on parastatal boards or to bring about changes to government policy which would benefit state capture.Lynne Brown, minister of public enterprises
While evidence directly linking Brown to state capture is scant, her actions in appointing Gupta-linked individuals to SOE boards has raised questions about her involvement. Under her leadership as Public Enterprises minister, large-scale looting took place at Eskom, Transnet and Denel. Her failure to safeguard these institutions from corruption was key in allowing the looting to continue and, according to civil society organisations, requires investigation.Malusi Gigaba, minister of public enterprises, home affairs, finance
Little to no evidence can be found to link Gigaba directly to state capture, but similar to Brown, questions have been raised about appointments to SOE boards that happened under his watch.The looting of SOEs goes back to as early as 2008 when Gigaba was Public Enterprises minister. He succeeded Brown. The allegations of his links to the Guptas followed him when he became Home Affairs minister,  with the Gupta family being granted early naturalisation under his stewardship.Faith Muthambi, minister of communications
Suggested charge: Treason
How she fits in: Muthambi is accused of sharing highly classified cabinet documents with the Guptas.Mosebenzi Zwane, minister of mineral resources and former MEC of agriculture in the Free State
Suggested charge: Treason
Zwane is reported to have jetted around the world in the Guptas’ private plane to convince mining giant Glencore to relinquish their rights over Optimum Coal Mine to the family. This secured their first, and highly lucrative, coal supply deal worth at least R12-billion over 10 years with Eskom. The deal has come under intense scrutiny. Under his stewardship as Mineral Resources minister, the Guptas gained a significant foothold in South Africa’s mining industry.According to affidavits contained in an Asset Forfeiture Unit preservation order application, Zwane was a key figure in ensuring the Vrede Dairy Farm project was awarded to a Gupta-linked company Estina. The Gupta family, the papers show, siphoned R210-million from the project.Ace Magashule, former Free State premier and current ANC secretary general
The Estina dairy farm project is said to have been nothing but a ploy to loot provincial coffers and was approved while Magashule was premier. Of the R210-million, that was looted, R30-million was used to pay for the Gupta family wedding at Sun City, while R19-million was spent by the family on a fleet of luxury cars. Magsahule’s sons, Gift and Thato, are also said to have relationships with Duduzane Zuma and the Gupta brothers.Public Servants
Several public servants could be slapped with further sanctions by the Public Service Commission for failing in their duties to safeguard the institutions of the country.Richard Seleke, director general: public enterprises
Suggested charges: Treason, corruption
How he fits in: The public enterprises director general is said to have played an integral role in the looting of SOEs. The leaked #GuptaEmails seem to suggest that Seleke was in touch with the Guptas through an anonymous email address – something he denies.Brian Molefe, former Eskom and Transnet CEO
Suggested charges: Fraud and financial misconduct
How he fits in: As Transnet and Eskom CEO Molefe allegedly helped the Guptas secure lucrative deals with both parastatals. His links to the family were also exposed in the State of Capture report. He maintains his innocence.Anoj Singh, former Eskom and Transnet CFO
Suggested charges: Corruption and financial misconduct
How he fits in: As chief financial officer of both Transnet and Eskom, he allegedly helped the Guptas score multi-billion rand contracts with the parastatals.Dr Ben Ngubane, former Eskom board chairman
Suggested charges: Fraud and financial misconduct
How he fits in: As chairperson of the Eskom board he allegedly became aware of illicit activities involving the coffers of the power utility and, in some cases, approved or was involved in approving deals that benefitted the Gupta family.Private companies in the spotlight
McKinsey and Trillian: The global consultancy opened the door for the Gupta-linked Trillian, at the time majority-owned by Salim Essa, to be paid R595-million, without a contract, by Eskom. As part of Eskom’s turnaround programme, the consultancy was paid R1-billion through an invalid contract.
In December the AFU obtained a preservation order against McKinsey and Trillian for assets worth R1.59-billion, the total amount paid to both companies after the contract between McKinsey and Eskom was also declared unlawful.
Global auditing firm KPMG: The Companies and Intellectual Properties Commission (CIPC) has laid criminal charges against the firm for its role in auditing Gupta companies without raising any red flags, when it should have.SAP: The multinational software company SAP is facing probes in Germany. Heads have already rolled over Gupta-linked deals worth more than R100-million. The company is co-operating with the US Department of Justice in its criminal investigation.
The banks: UK banks Standard and Chartered and HSBC are under investigation by the Financial Regulatory Authority and the Serious Fraud Office in the UK for allegedly facilitating money laundering by the Gupta family and their associates.
• This article was compiled through announcements by civil rights organisations OUTA and Corruption Watch over action taken against state capture.

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State capture: So much looting, so many charges

By Graeme Hosken and Kyle Cowan
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