Matshela Koko disciplinary hearing a farce, DA to lay charges

On Monday, 18 December 2017, the DA will lay charges against the newly reinstated Eskom CEO Matshela Koko. This follows the sham of a disciplinary hearing, clearing Koko of all charges relating to misconduct.
Earlier this year it came to light that Koko allegedly awarded lucrative Eskom contracts, worth R1 billion, to Impulse International, a company linked to his stepdaughter. He was also apparently involved in approving a R650 million loan from Eskom to Gupta-linked Tegeta, in order to ensure that the Guptas purchased Optimum.
Since Eskom and the Minister of Public Enterprises, Lynne Brown, are incapable of holding the seemingly captured and heavily implicated Koko to account, it is up to the Hawks to investigate the matter.
It is quite clear that this disciplinary hearing was never meant to investigate these serious allegations brought against Koko, but was rather a move to have him reinstated.
The hearing has been a complete and absolute farce from beginning to end. Koko was allegedly consulted on the appointment of the chairperson for his own disciplinary hearing.
There were also reports of key witnesses having failed to appear because of intimidation and manipulation, that there had been massive delays, and the initial evidence leader Sebetja Matsaung was replaced as he appeared ill-prepared and ineffectual.
The DA will continue to fight against the capture of Eskom. The executives and management at Eskom are not serious about rooting out corruption. If they were, Koko would not have been allowed back at the power utility.

DA requests urgent update from Denel regarding financial woes

The revelations this week that state-owned arms manufacturer, Denel, has run out of money is a damning indictment on its leadership and floundering executives.
The DA has written to Denel to request an urgent update on the true status of its financial affairs.
Denel must come clean and give an urgent response as the DA has received numerous requests for intervention. It is clear that the executives can no longer be trusted to solve this impending emergency. So much so that the DA has been asked to assess the situation.
It is clear that the Denel management is completely inept and unable to handle any emergency.
It has been reported that Denel is running so low on cash that it will not be able to pay their suppliers and their 4 000 employees December salaries. It is disheartening to imagine that during the festive season, Denel employees could potentially not receive their salaries after a long year of hard work and dedication.
Our state-owned enterprises (SOE) are in crisis and the fault must be placed squarely at the feet of the Minister of Public Enterprises, Lynne Brown. Under her watch our SOE’s have disintegrated due to corruption and gross mismanagement.
The DA expects a comprehensive and swift response from Denel. We need to get to the bottom of this financial mess to ensure that Denel employees and suppliers are paid.

Eskom: Kusile and Medupi project should be put on ice, as we cannot afford it now

This past week, a Meridian Economics Report on Eskom highlighted some possible answers to the financial distress the power utility is currently facing. The report suggested that Eskom postpones the build programme on a number of units at the Kusile and Medupi Power Stations.
These recommendations come after Eskom presented to its major shareholder, Government, that it is expected to run at a loss of R3.5 billion by the end of March next year. Worse, Eskom only has R1.2 billion left in its cash reserves until the end of November 2017, when it should have R20 billion.
Eskom has unsurprisingly rejected these proposals citing possible exposure to contractual penalties. Eskom’s excuses are frankly weak and nonsensical given the fact that it cannot afford these projects.
With a sluggish economy, falling sales and a surplus in electricity generation, it’s safe to say that Eskom is facing financial ruin. Slamming the brakes on the Kusile and Medupi projects could go a long way in cutting much-needed costs at Eskom.
These are vital strategies that need urgent, robust debate and dialogue to prevent Eskom from crying out for a bailout next year and prevent another tariff hike.
Eskom’s application for a 20% tariff hike from NERSA is simply unsustainable. Yet another tariff hike will not sort out the financial woes at Eskom. It will just burden ordinary South Africans even more.
The DA has already submitted a request to the Chairperson of the Portfolio Committee on Public Enterprises, Ms Lungi Mnganga-Gcabashe, for an urgent committee meeting with the Eskom Chairperson, CEO, CFO, COO and the Minister of Public Enterprises, Lynne Brown, to explain the current financial mess and present a credible plan on a turnaround strategy for the power utility.
Currently, Eskom is being treated like a leper by investors given the lack of credible governance, deeply entrenched corruption and gross financial mismanagement. Potential financers are understandably hesitant to back Eskom.
Minister Brown is expected to announce a new Eskom board soon, and with recent testimonies at the Eskom Inquiry implicating the Minister in State Capture, it will do little to quell the unease of investors and South Africa.
South Africans deserve a power utility that has credible leadership. We need a South African-orientated Eskom, not a Gupta-orientated Eskom, to turn things around.

SA cannot afford the financial collapse of Eskom

The DA will write to the Chairperson of the Portfolio Committee on Public Enterprises, Ms Lungi Mnganga-Gcabashe, to request that she urgently call the Minister of Public Enterprises, Lynne Brown, Eskom CEO, the COO, the interim CFO and Chairperson of the Eskom Board, to appear before Parliament and present an accurate picture of the financial situation at Eskom.
This comes after a report Eskom presented to Government, as the major shareholder, revealed that the power utility only has R1.2 billion left in its cash reserves until the end of November 2017, when it should have R20 billion.
The DA is gravely concerned about the current state of Eskom’s finances as it is quite clear that the rife corruption and mismanagement at the power utility has resulted in this dire deterioration of its finances.
South Africa simply cannot afford yet another state entity facing imminent collapse as a result of financial mismanagement.
With limited cash available, Eskom may have to approach National Treasury to finance a bailout.
The economic implications of Eskom collapsing will be severe, as it will have a negative impact on our already struggling economy, sovereign rating and threaten the job security of many South Africans. Government should have never allowed the situation to get to this point.
Eskom must be cleaned up to ensure financial stability and future funding commitments.
Silence is not an option. Eskom needs strong, bold and ethical leadership from the Minister and Eskom leadership to steer this vital entity away from a financial precipice and to ensure that it works for the people of South Africa.

Public Protector agrees to meet DA on a number of pressing issues

The Democratic Alliance (DA) is pleased that the Public Protector, Advocate Busisiwe Mkhwebane, has acceded to a request for a formal meeting to discuss a number of pressing matters linked to her office, and the performance of her constitutional mandate to investigate misconduct by government departments and entities and to protect the public’s interest. The meeting has been set down for Monday, 13 November 2017.
DA Leader, Mmusi Maimane, will be raising the followings matters, among others:

  • Why she has not yet released the report into the Vrede Dairy Farm, which has been sitting on her desk for almost six months.
  • Whether she has ever met with any members of the Gupta family, in any capacity whatsoever, and if so, what circumstances necessitated such a meeting;
  • The latest developments with regards to the new “preliminary investigation” into State Capture, which was announced on 15 June 2017. The investigation aims to determine the merits of several allegations of corruption and unlawful enrichment emanating from the infamous “Gupta Leaks”;
  • The progress on a number of ongoing investigations following complaints by the DA over the past 12 months. These include the following:

o   Investigation into Cooperative Governance and Traditional Affairs Minister, Des Van Rooyen, for allegedly misleading Parliament and the public regarding his visit to the Gupta’s family home in Saxonwold;
o   Investigation into former acting Eskom CEO, Mr Matshela Koko, for allegedly awarding a R1 billion contract to his step-daughter while at Eskom;
o   Investigation into the R30 million pension payout to former Eskom CEO Brain Molefe, allegedly authorised by Public Enterprises Minister, Lynne Brown;
o   Investigation into Public Enterprises Minister, Lynne Brown, for allegedly misleading Parliament when she failed to disclose if there had been any contracts of engagement between Eskom and Gupta-linked company Trillian Capital Partners;
o   Investigation into former Home Affairs Minister, Malusi Gigaba and the naturalisation of, and issuing of visas to, members of the Gupta family;
o   Investigation into Police Minister, Fikile Mbalula, and former Acting National Police Commissioner Kgomotso Phahlane for the misuse of state resources in providing VIP protection to Nkosazana Dlamini Zuma; and
o   Investigation into the alleged breach of the Ethics Code and the Power, Privileges and Immunities Act by Mineral Resources Minister, Mosebenzi Zwane, for willfully misleading Parliament by failing to disclose his personal interests pertaining to the Guptas;
o   Clarity regarding the allegation that she concealed submissions received from Black First Land First about her investigation into the apartheid-era bailout of Bankorp by the South African Reserve Bank (SARB); and
o   What her plan of action is regarding those who are actually pulling the strings when it comes to State Capture – including President Zuma, several of his cabinet ministers, and the Gupta family. To date, the real architects and technicians of State Capture have escaped unscathed, while board members, senior executives, and government officials have been used as scapegoats.
We look forward to engaging the Public Protector on the above matters and trust that she will make available all necessary information.
The role of the Public Protector is integral to the proper functioning of our democracy, and now more than ever, we desperately need a Public Protector who is wholly committed to fighting for the people of South Africa – by tackling State Capture and corruption in all its forms.
 

Eskom: DA to report Minister Brown to the Public Protector and the Ethics Committee

The DA will write to the Public Protector, Adv. Busisiwe Mkhwebane, to investigate Public Enterprises Minister, Lynne Brown, for any role she played in the awarding of lucrative oil contracts worth R1.2 million from Eskom to her lover and close business associate, despite their lack of expertise in the oil industry.
The DA will also refer Minister Brown to the Ethics Committee to appear before the committee and explain how the company with no experience in the oil industry was awarded contracts with Eskom. The DA trusts that the committee will ensure that Minister Brown is taken to task if there was any illegal and corrupt behaviour on her part.
Minister Brown seemingly allowed her relationship with her partner, Ingrid Tufvesson, and Michelle McMaster, the mother of Brown’s former personal assistant, Kim Davids, to influence the awarding of these contracts to supply oil to Eskom’s transformers at 10 power stations. Even more shocking is that the two contracts worth R1.2 million were awarded in a matter of just five months this year.
This is a serious on indictment on the Minister and raises serious questions about her fitness to hold office as she has seemingly allowed her close associates to conduct business in an unethical way. E Smart Solutions has no experience in the oil industry and was only registered to deal with academic projects.
There must be harsh consequences for selling off contracts with absolute impunity as this is ultimately to the detriment of our people who are suffering daily. The ordinary South Africans deserve a clean and accountable government, not one where politicians simply enrich themselves, and those closest to them, at the peoples’ expense.
The Minister’s reluctance to ensure that the Eskom board instituted disciplinary actions against Matshela Koko is clear indication that she was beholden to him.
Koko, who was suspended in August for allowing contracts of over R1-billion to be awarded to a company co-owned by his stepdaughter, reportedly told friends that “Brown would not dare fire him because he had dirt on her”.
Minister Brown seems to have a conflicting idea of what her mandate is and the blame for all the scandals that have rocked Eskom must be laid squarely at her door.
She has failed dismally in her role as minister. Her display of detachment from serious matters concerning the power utility proves difficult to find her credible as a Minister.
The DA will not step back and watch in horror as ordinary citizens bear the brunt of the ANC-government’s corruption. The DA will ensure that Minister Brown fully accounts for her questionable conduct.

DA Leader Maimane requests formal meeting with Public Protector

I have today written to the Public Protector, Advocate Busisiwe Mkhwebane, requesting a formal meeting in order to discuss a number of pressing matters linked to her office, and the performance of her constitutional mandate to investigate misconduct by government departments and entities and to protect the public’s interest.
The role of the Public Protector is integral to the proper functioning of our democracy, and now more than ever, we desperately need a Public Protector who is wholly committed to fighting for the people of South Africa – by tackling State Capture and corruption in all its forms. Therefore I will be raising the followings matters, among others:

  1. Whether she has ever met with any members of the Gupta family, in any capacity whatsoever, and if so, what circumstances necessitated such a meeting;
  2. The latest developments with regards to the new “preliminary investigation” into State Capture, which was announced on 15 June 2017. The investigation aims to determine the merits of several allegations of corruption and unlawful enrichment emanating from the infamous “Gupta Leaks”;
  3. The progress on a number of ongoing investigations following complaints by the DA over the past 12 months. These include the following:
  • Investigation into Cooperative Governance and Traditional Affairs Minister, Des Van Rooyen, for allegedly misleading Parliament and the public regarding his visit to the Gupta’s family home in Saxonwold;
  • Investigation into former acting Eskom CEO, Mr Matshela Koko, for allegedly awarding a R1 billion contract to his step-daughter while at Eskom;
  • Investigation into the R 30 million pension payout to former Eskom CEO Brain Molefe, allegedly authorised by Public Enterprises Minister, Lynne Brown;
  • Investigation into Public Enterprises Minister, Lynne Brown, for allegedly misleading Parliament when she failed to disclose if there had been any contracts of engagement between Eskom and Gupta-linked company Trillian Capital Partners;
  • Investigation into former Home Affairs Minister, Malusi Gigaba and the naturalisation of, and issuing of visas to, members of the Gupta family;
  • Investigation into Police Minister, Fikile Mbalula, and former Acting National Police Commissioner Kgomotso Phahlane for the misuse of state resources in provinding VIP protection to Nkosazana Dlamini Zuma; and
  • Investigation into the alleged breach of the Ethics Code and the Power, Privileges and Immunities Act by Mineral Resources Minister, Mosebenzi Zwane, for willfully misleading Parliament by failing to disclose his personal interests pertaining to the Guptas;
  1. Clarity regarding the allegation that she concealed submissions received from Black First Land First about her investigation into the apartheid-era bailout of Bankorp by the South African Reserve Bank (SARB); and
  2. What her plan of action is regarding those who are actually pulling the strings when it comes to State Capture – including President Zuma, several of his cabinet ministers, and the Gupta family. To date, the real architects and technicians of State Capture have escaped unscathed, while board members, senior executives, and government officials have been used as scapegoats.

We are optimistic that as a constitutional officer bearer, Adv Mkhwebane will accede to this request and be forthcoming with the information sought.
At a time such as this, when our country is under siege by thieves and captors, South Africans deserve to be assured that the constitutional bodies and institutions created to fight for them are indeed doing so, and not acting on political instruction.

Those involved in State Capture will be held to account, whether in private sector or government

The following statement was delivered today by Democratic Alliance (DA) Leader, Mmusi Maimane, at a press briefing in Parliament, Cape Town. Maimane was joined by Federal Executive Chairperson, James Selfe, and DA Chief Whip, John Steenhuisen
I want to begin by welcoming yesterday’s decision by ANC Member of Parliament, Dr Makhosi Khoza, to quit the ANC. For many, it is not an easy decision to leave the party of liberation in South Africa. She must congratulated for her bravery and integrity, and we hope the many like her within the ANC come to the same realisation she did: that the ANC is dead, and beyond the point of no return. Dr Khoza summed this up yesterday, when she said:
“If we were to prosecute all known corrupt cases including those implicated in the Gupta e-mails‚ almost 80–90% of the ANC leadership at all levels of government would have to replace their shiny tailored suites and pretty dresses with orange overalls”
It’s time for a new beginning for our nation, and that new beginning lies in a post-ANC South Africa.
Corruption is an oppressive system that operates to destroy work opportunities, and operates against ordinary South Africans at the expense of a few. Whether it is a councillor who accepts a bribe for an EPWP job, or a senior executive at a large corporate firm who unduly wins government contracts – South Africans suffer because of this. Our challenge is to dismantle corruption is all its forms.
Ever since the infamous “Gupta leaks” some months ago, our nation has been knocked with daily revelations and new information pertaining to the intricate web of corruption, extortion, and undue influence exercised by the President, numerous ministers in his cabinet, and the infamous Gupta family.
The emails, and the information uncovered subsequent to that, provides a surfeit of evidence showing that our country has been captured by the President and his ANC government to make themselves and their friends rich – while ordinary South Africans suffer in the plight of unemployment and poverty. It is this state capture and corruption the ANC continues to condone and protect.
However, over the past weeks, the extent of the rot of state capture and grand corruption in our nation has become chillingly apparent. The recent revelations that private sector companies, such as KPMG and McKinsey, allegedly aided Gupta-aligned companies to profit from government contracts drove home the uncomfortable reality that our country has truly been captured in its entirety – and our young democracy is under siege.
As the Democratic Alliance (DA), we maintain that anyone implicated in any form of corruption, collusion or State Capture – in either the public and private sector – must be held accountable and face the consequences of their actions. As such, we have begun tackling this issue head on, in order to ensure those who engage in corruption are brought to book for their actions.
Private Sector
International auditing firm, KPMG, has become embroiled in the state capture saga by allegedly providing technical international tax advice to Gupta-aligned companies and by helping facilitate funds being moved from South Africa to Dubai. The firm assisted with tax avoidance advice as well as the setting up of shell companies, which assisted Gupta-owned Linkway Trading in laundering R30-million in public funds to pay for the family’s 2013 Sun City wedding.
Since these revelations, the wheels of accountability have begun to turn at KPMG, with the forced resignation of at least 7 of its top executives– including the firm’s CEO and COO. Moreover, KPMG has signalled its intention to donate the profits earned to charity, and KPMG International has launched an internal investigation into this matter.
We welcome the fact that those who carried out corrupt work for Gupta-aligned companies are being held accountable for wrongdoing. However, there is still more to do. As such, we call on KPMG to take the following steps:

  • To offer a public explanation as to the details surrounding the KPMG report into the so-called “rogue unit” at SARS, which was used to undermine the South African Revenue Service (SARS). KPMG must clarify how the end product came about, why they failed their own internal quality controls, and whether anyone from SARS interfered in the process;
  • To open its books and make public all its dealings with those involved in state capture, including all Gupta-aligned companies and any government entities;
  • To ensure every individual implicated in any underhand work done for Gupta aligned interests be removed from the firm; and
  • To make public any bonuses or severage packages handed to senior executives following their removal or forced resignation.

I will also be writing to the Governor of the South African Reserve Bank (SARB), Lesetja Kganyago, requesting that he confirm whether senior management at KPMG, or anyone else employed by them, reported any suspicious transactions to the Financial Intelligence Centre (FIC), as they would be obliged to do in terms of Section 29(1)(b) of the FIC Act 38 of 2001.
In addition to KPMG, international consultancy firm, McKinsey, appears to have paved the way for Gupta-linked firm Trillian to make hundreds of millions of rands from Eskom as it sub-contracted 30% of its Eskom work to the Trillian under the guise of ‘supplier development”.
Earlier this week, the DA laid criminal charges of fraud, racketeering and collusion in terms of Section 21 of the Prevention and Combatting of Corrupt Activities Act (PACCA) against McKinsey. We believe there are other avenues that ought to be pursued in addition to these charges. Therefore, I will be writing to the Serious Fraud Office (SFO) in London – where McKinsey’s Headquarters are located – requesting an investigation into the dealings in terms of the UK’s Bribery Act.
The DA will not back down in our pursuit of full accountability in these matters. As was evident in the Bell Pottinger case, those in the private sector who are caught in dodgy dealings with the powerful and the corrupt will be brought to book and face full accountability.
Public Sector
While the private sector has been responsive to these allegations and initiated accountability, when it comes to government, those at the top have thus far gotten away with corruption, collusion and aiding State Capture. In particular, cabinet ministers – including Malusi Gigaba, Lynne Brown, Des Van Rooyen, Mosebenzi Zwane and Faith Muthambi among others – face a litany of  State Capture allegations. Yet to date, not one minister has been held to account.
Section 92 of the constitution is clear: Ministers are accountable collectively and individually to Parliament for the exercise of their powers and performance of their functions. Moreover, section 237 of the constitution provides that constitutional obligations must be performed diligently and without delay.
However, this has not occured and it appears Parliament is in the process of breaching its constitutional obligations again – as the Constitutional Court found it to have done in the infamous Nkandla matter.
I had previously written to the Speaker on 29 May 2017 requesting that a draft resolution be placed on the Order Paper to establish an ad hoc committee to investigate these matters, as this would be the most appropriate way to holistically pursue accountability. This ad hoc committee was never established. Instead, on 20 June 2017, House Chairperson, Mr Frolick tasked the Portfolio Committees of Mineral Resources, Public Enterprises, Transport and Home Affairs with the responsibility of “urgently” probing the allegations of state capture insofar as they concerned those Ministers or departments.
Despite the mandate to probe “urgently”, these committees have proceeded with their work at a snail’s pace. Only the Public Enterprises Committee has appointed an evidence leader and has begun to hold hearings, however their probe is focused solely on Eskom, and excludes other players such as Transnet and Denel. The remaining three committees have achieved nothing in this regard.
Therefore, we are of the view that both the appointment of the four separate committees, instead of a single ad hoc committee, as well as the obfuscation and delays that have characterised the work of these committees constitute a deliberate attempt to undermine the responsibility of the National Assembly to hold the Executive to account. Even if not deliberate, the mere lack of urgency by the committees frustrates the National Assembly’s constitutional mandate.
It is for this reason that I have today written to Ms Baleka Mbete, the Presiding Officer of the National Assembly, requesting that our draft resolution be placed on the Order Paper to establish an ad hoc committee into State Capture by no later than 31 October 2017. The Speaker has now been put on notice and must act without delay. Given this and the seriousness and importance of these matters, we must place on record that if the Speaker does not issue the instruction concerned, we reserve our right to approach a Court for appropriate relief.
Furthermore, we request that the Speaker sees to it that a Disciplinary Committee is established – in terms of Rule 216 of the National Assembly Rules – to consider whether any of the following Ministers have acted in breach of their constitutional duties:

  • Malusi Gigaba
  • Faith Muthambi
  • Des Van Rooyen
  • Lynne Brown
  • Mosebenzi Zwane

Conclusion
We maintain that everyone involved in State Capture – ministers, companies, and any other individuals – be summoned to Parliament to be interrogated and held accountable if found guilty. We need to urgently get to the bottom of State Capture and its corrosive effect on our nation and its people.
As the official opposition, we will continue fighting corruption and State Capture with every possible instrument, because without defeating it, we cannot address our stubborn unemployment rate and we will never achieve economic freedom and equality for all South Africans. Only when we have defeated corruption, can we defeat the social ills prevalent in South Africa.
Ultimately, South Africans have the power to vote out State Capture and corruption at the ballot box in 2019, and choose a new beginning for our country.

DA does not buy Minister Brown’s Trillian excuse

The DA notes Public Enterprises Minister, Lynne Brown’s claim that she did “not know” that Eskom was lying about its relationship with the Gupta-linked Trillian.
The Minister’s comments come after Eskom suddenly made a U-turn on Monday after it initially claimed that the R1.6 billion it had paid to Trillian and Mckinsey was above board.
The DA simply does not buy the Minister’s poor excuse. “I didn’t know” is not good enough and as the Minister of Public Enterprises, she should have known.
It is becoming increasingly clear that the Minister is failing at her job as shareholder representative. Under her watch, dodgy dealings at Eskom for the benefit of the Guptas, have become a common practice.
The DA finds the Minister’s sudden revelations rather suspicious considering that she had allegedly misled Parliament when she seemingly failed to reveal if there had been any existing contracts of engagement between Eskom and Trillian, in a written reply to a DA parliamentary question.
Minister Brown needs to stop digging deeper holes for herself and lay bare what she knows or come clean as to who lied to her.
All those involved in Eskom’s latest scandal must be held to account. These include the Minister, under whose watch this happened, and the suspended Eskom CFO, Anoj Singh, who not only facilitated Eskom’s procurement of these contracts but also allegedly orchestrated the power utility’s lies when this scandal came to light.
The DA has already laid charges against Anoj Singh regarding his work as a Gupta henchmen at Eskom, and we have also reported the Minister to the Public Protector.
The DA will ensure that this Trillian saga is duly investigated at the upcoming Eskom Inquiry.

Minister Brown can and must stop bonuses to ineffective Eskom executives

The Minister of Public Enterprises, Lynne Brown, has the power to stop the handover of millions of public money to Eskom executives who have utterly failed, and in some cases, are the cause of the dire financial situation at the power utility.
The DA publically calls on Minister Brown to reject the request to approve short term bonuses of R5.5 million for three former and current executives, which forms part of an R13 million payment for top executives: R2.1 million for former Eskom CEO, Brian Molefe, R1.5 million for suspended acting CEO, Matshela Koko, and R1.9 million for CFO, Anoj Singh.
The fact is that Eskom may not be able to pay salaries to its 49 000 employees come November. According to reports, its income decreased from R5.3 billion last year to R900 million in June, while the interest it accrued on its debt jumped to R38 billion from R31 billion.
Clearly, Eskom finances are in a shambles. The true state of Eskom’s financial situation is markedly different from the picture of excellence painted by Mr Ben Ngubane when he and the board appeared before the portfolio committee on public enterprises less than two months ago.
It is utterly unacceptable for executive bonuses to be paid while ordinary employees may not be paid.
Only good performance should be rewarded, yet Eskom is clearly intent on doing the opposite.
The DA will not allow public money to be squandered on ineffective executives while the livelihoods of ordinary employees are put at risk.