NEW STATE OF CAPTURE

The Public Protector South Africa, Advocate Busisiwe Mkhwebane, has decided to conduct a preliminary investigation for the purpose of determining the merits of the several allegations published in the media, which allegations points to the following conduct of:-

1. Improper or dishonest act, or omission or offences referred to in Part 1 to 4, or section 17, 20 or 21 (in so far as it relates to the aforementioned offences) of Chapter 2 of the Prevention and Combating of Corrupt Activities Act, 2004, with respect to public funds at Eskom, PRASA and Transnet;

2. Improper or unlawful enrichment, or receipt of any improper advantage, or promise of such enrichment or advantage, by certain public officials at Eskom, PRASA and Transnet;

NEW STATE OF CAPTURE ALLEGATIONS

As you may be aware, the Public Protector published a report titled "State of Capture Report" into alleged improper and unethical conduct by the President and other state functionaries relating to the alleged improper relationships and involvement of the Gupta family in the removal and appointment of Ministers and Directors of the State-Owned Enterprises resulting in improper and possibly corrupt award of state contacts and benefits to the family's businesses'.

The above report has been taken on judicial review by the President, Minister Zwane and Minister Van Rooyen.

The President's review application has been set down for 5th and 6th October 2017.

In view of the new allegations published in different media, so called "Gupta e-mails leaks", I have received a complaint most of the issues forms part of the State of Capture Report and except below allegations:

a) That Guptas received high-level confidential information from the then Minister of communications, Faith Muthambi;

b) That at least two immigration officials (Gideon Christians and Ms Munyadziwa) were specially positioned in India by them Minister of Home affairs, to assist the Gupta associate Mr Ashu Chawla to the benefit of Gupta-owned businesses, liaising through Mr Major Kobese (a music producer and director) in the foreign office of the Department of Home Affairs.

ESKOM HOLDINGS SOC LTD

a) Investigation into re-appointment of Mr Brian Molefe as Eskom CEO;

b) Allegations that Mr Matshela Koko channelled contracts to a company partly owned by his step daughter;

c) Allegations that Matshela Koko leaked a legal opinion to the Guptas;

d) The role of Minister Lynne Brown in the re-appointment of Mr Brian Molefe;

e) Allegations of Minister Lynne Brown's failure to exercise the required executive oversight over Eskom, its board and management;

f) Allegations by former Minister of Mineral Resources, Ngoako Ramatlhodi, that former Eskom CEO, Mr Brian Molefe and former Eskom Board chairperson, Ben Ngubane pressurised him to help the Guptas take over Glencore's coal mine in 2016.

PRASA

The Public Protector published a report titled "Derailed" into allegations of maladministration relating to financial mismanagement, tender irregularities and appointment irregularities against the Passenger Rail Agency of South Africa (PRASA).

Although this report has been taken on judicial review by the former PRASA CEO, Mr Tshepo Lucky Montana, the allegations regarding former PRASA Board Chairperson, Sifiso Buthelezi's alleged failure to disclose and manage a conflict of interest arising from his interest in Makana, a subsidiary of Cadiz, a company allegedly providing advisory services to PRASA on the Rolling Stock Programme were deferred to the PRASA 2 investigation which is in progress.

TRANSNET

a) Allegations regarding kickback agreement totaling R5.3 billion, regarding the procurement of locomotive at Transnet;

b) The role of then Minister of Public enterprises Malusi Gigaba in the appointment of Iqbal Shama and Mr Molefe to Transnet board of directors, chair of the board acquisition and disposal committee, and senior management respectively;

c) Role players in the procurement process for freight locomotives in July 2012;

c) Allegations of Minister Lynne Brown's failure to exercise the required executive oversight over Transnet, its board and management;

Although the Public Protector is empowered to initiate her own initiative investigation in terms of Section 6(5) of the Public Protector Act, (23 of 1994), she may not be able to due to capacity constraints of less than 200 investigators nationwide.

Issued by Cleopatra Mosana, Spokesperson for the Public Protector, 14 June 2017