Urgent inquiry into capture of SOEs by Guptas needed

18 March 2016

There is growing evidence to suggest that a number of state owned entities (SOEs) have been captured by the Guptas, with the family allegedly influencing not only ministerial appointments, but also appointments within SOEs themselves.

In light of the mounting allegations of influence and interference by the family I will request that the Portfolio Committee on Public Enterprises conducts a full parliamentary inquiry into the capture of SOEs by the Guptas.

The Mail & Guardian revealed today that former Chairperson of Eskom, Zola Tsotsi’s, forced resignation was allegedly orchestrated by the Guptas as a result of him “not playing the game.” This was after Tsotsi informed the Guptas that he could not grant them exclusivity over certain Eskom contracts.

The allegations by Tsotsi follow a number of similar accusations that have come to light:

- The claim by former Minister of Public Enterprises, Barbara Hogan, that she was placed under immense pressure to meet with Gupta-linked Indian airline Jet Airways, the airline responsible for landing the Gupta's wedding guests at Waterkloof air force base in Pretoria.

- Hogan was replaced by Malusi Gigaba, who is known to have attended the Gupta wedding in 2013.

- Hogan’s claim was in support of the allegations by former senior ANC MP, Vytjie Mentor, that she had been offered the position of Minister of Public Enterprises on the condition that she drop the SAA route to India and give it to Jet Airways instead.

- The allegations by former SAA Chairperson, Vuyisile Kona, that he was offered R500,000 by the Gupta family in 2012 to secure his co-operation with him.

- Eskom CEO, Brian Molefe, is also linked the Gupta family and has admitted to visiting them at Saxonwold. Gupta-owned Tegeta Exploration, recently secured lucrative contracts to supply coal to Eskom power stations.

These allegations necessitate an urgent investigation into the Guptas’ links to SOEs by the portfolio committee. The committee must:

- Immediately summon the Guptas to appear before it to answer to these allegations as per my letter to the Committee Chairperson in this regard. The Chairperson is yet to respond to this request, raising the question of who he is trying to protect.

- Call former Ministers of Public Enterprises, Barbara Hogan and Malusi Gigaba, to provide full details of their relationship with the Gupta family. Gigaba in particular must account for allegations of preferential treatment of the Guptas for state contracts during his tenure.

- Summon the CEOs and Chairpersons of the largest SOEs to appear before it to answer questions about their ties to the Guptas.

South Africa’s largest SOEs – including SAA, Eskom, SANRAL, PETROSA, SAPO and PRASA – made a combined loss of R15.5 billion for the 2014/2015 financial year and are currently holding R408.9 billion in government guarantees between them.

We cannot afford that a private family is enriching themselves from lucrative state contracts while these entities are costing the public billions. 

The ANC must take a stand against the Guptas and President Zuma to ensure that corruption on the highest level is eradicated in the interest of building an inclusive economy that benefits all South Africans – not just the connected few.

Issued by Natasha Mazzone, DA Shadow Minister of Public Enterprise, 18 March 2016