Watch: The Age of Accountability — How McKinsey was made to pay back the money

14 June 2021 - AmaBhungane reporters

AmaBhungane investigative reporter Susan Comrie joined the Daily Maverick’s Rebecca Davis and investigative reporter Pauli van Wyk of Scorpio for a behind-the-scenes look into the Transnet-McKinsey saga. The Daily Maverick, which hosted a live webinar on June 11, focussed on issues surrounding state capture and the need to pursue accountability from implicated companies.

Davis, who moderated the discussion, posed these questions: “Are we in an age of accountability? Is it hopelessly naive to say that accountability is upon us?” 

Susan Comrie responded by offering a “list” of companies she believes have yet to make full disclosures: “If you want accountability there is a list of companies that need to start paying back the money and start disclosing exactly what happened.”

*SAP the software company: they had promised us in 2018 that they were going to review all their public sector contracts; they would report back within six months and that they would disclose all of the business development partners that they had been paying on those contracts. They’re no longer honouring that commitment — that was in 2018. They should have disclosed that in October. They are still getting billions of rands from government: They need to pay back the money.

*The next company is Liebherr, a German-Swiss crane company. They need to pay back.

*Neotel as well. That was one of the first investigations of the first letterbox companies that amaBhungane exposed, which was a Neotel deal with Transnet. They need to pay back money.

*PWC on Eskom they definitely need to pay back the money. They’ve (PWC) been asked to pay it back, but as far as I know they haven’t agreed to pay it back.

*T-Systems: That’s possibly one of the the bigger ones and one of the companies that has just sailed under the radar they need to pay back the money.

*Dentons, as reported this week by your colleague Jessica Bezuidenhout. They need to pay back the money. 

*Bain, they need to pay back the money.

*The biggest one though is CRRC, which was the merger between China North and China South Rail. These are the the companies that got massively inflated locomotive contracts in order to allow — I think it was around R9-billion in kickbacks — to flow to companies controlled by Salim Essa in Hong Kong.

“In terms of accountability, it’s a great first step that McKinsey has paid back the money, but there’s a long way to go. There are a lot of companies that are that are on my list that need to pay back the money.

“We need real accountability. We need real disclosure. We need real transparency and we need the money back,” Comrie said.

Listen: Cherese Thakur discusses the “momentous” Constitutional Court ruling on SA’s Rica surveillance law, with Bruce Whitfield

10 February 2021 - amaBhungane Reporters

In an interview with The Money Show’s Bruce Whitfield, Cherese Thakur explained the meaning of amaBhungane’s February 4, Constitutional Court victory, saying: “The ruling is momentous in that it says this needs to change when the amendments to Rica to bring it in line with the Constitution are eventually passed, which needs to happen within three years.”

In it’s judgement, the Constitutional Court, confirmed a landmark 2019 high court ruling, which found five provisions of South Africa’s surveillance law, the Regulation of Interception of Communications and Provision of Communication-Related Information Act (Rica) to be unconstitutional.

*Read the Constitutional Court judgement.

The highest court in the land also declared bulk surveillance in South Africa to be unlawful.

AmaBhungane launched a high court challenge in 2017 after it emerged that phone calls between its managing partner Sam Sole and a prosecutor involved in the investigation of former president Jacob Zuma had been intercepted.

Also read: Advocacy comment: AmaB’s Rica victory — big brother can no longer watch us with impunity

Watch: AmaBhungane’s counsel Steven Budlender in action in the #CR17 matter

30 November 2020 - amaBhungane Reporters

Counsel for amaBhungane, Steven Budlender SC, delivered a rousing closing argument on Thursday (26 November) capping off an eight-hour hearing at the Constitutional Court in the matter of the Public Protector and Others v President of RSA and Others.

AmaBhungane is arguing for transparency regarding future donations to internal political party campaigns. We have argued that in order to exercise fully the right to vote, the public can’t be left in the dark as to who funded internal political campaigns.

Read:

*Advocacy release: CR17 – court kicks transparency question into touch

*Advocacy release: In CR17 case, amaB asks the court to uphold transparency

In his argument, Budlender set out why disclosure of internal political campaign financing is essential — and indeed required by the Executive Members’ Ethics Act — due to the conflicts of interest that arise following such donations.

Budlender also took the President to task for seeking a cost order against amaBhungane, a non-profit organisation litigating in the public interest, only to abandon the claim at the hearing — a strategy that could have a chilling effect on public interest litigation.

Watch: amaBhungane’s AIJC masterclass

04 November 2020 - amaBhungane Reporter

Watch amaBhungane team members take us through their investigative processes during this year’s African Investigative Journalism Conference (AIJC) — an annual conference organised by Wits University’s department of journalism.

AmaBhungane investigators Dewald van Rensburg, Stefaans Brümmer, Susan Comrie and Micah Reddy offer a rare glimpse behind the scenes into the process of investigating corruption at both state and private sector levels.

AmaB’s advocacy coordinator Cherese Thakur gives a run through of how to use PAIA and the Companies Act to get records and court documents from a South Africa perspective.

Susan Comrie takes us through her investigations of the private sector, noting: “There’s a common misconception that we, at amaB, only focus on the State. But that is technically not true. we focus on the intersection between the state and the private sector: it is really about where public money moves into private hands and the kinds of abuse that happens.” Susan shows us her go-to tools to help dig deeper.

Dewald van Rensburg gives us a case study using his work on Iqbal Survé illustrating how to do an investigation with only publicly available information and tools.

Micah Reddy gives “a lightning tour” on how amaBhungane combined tender documents, forensic reports and on-the-ground reporting to uncover EFF-linked corruption and “bust their alibi”.

AmaBhungane investigator and managing partner Stefaans Brümmer gives a lesson on following the money, using his investigation that exposed how Transnet locomotive suppliers pledged R9-billion in kickbacks to the Guptas in the context of state capture.

Brümmer explains, “State capture is the process by which private interests get their hands on the levers of state power.”

Listen: Dewald van Rensburg on VBS and the NPA’s deal with ex-finance boss

08 October 2020 - amaBhungane Reporter

AmaBhungane’s Dewald van Rensburg spoke to EWN’s Bruce Whitfield, about the VBS Mutual Bank saga that took a twist in court this week.

The National Prosecuting Authority reached a plea agreement with disgraced former VBS chief financial officer Philip Truter.

In return for giving evidence for the state against his co-accused in the R2-billion alleged fraud case, Truter received a lighter prison sentence ten years, of which three will be suspended for five tears. He will also be held in a single cell “for safety reasons”.

Listen to the full interview here.

Truter’s co-accused include former VBS chairman and “mastermind” Tshifhiwa Matodzi, chief executive Andile Ramavhunga and treasurer Phophi Mukhodobwane.

Alongside them will be the Public Investment Corporation’s two former representatives to the VBS board, Paul Magula and Ernest Nesane. The last accused is Phalaphala Avhashoni Ramikosi, the former chief financial officer of the South African Police Service and also a former board member of VBS.

They face a collective 47 charges.

Read Update: VBS finance boss Truter strikes deal with NPA

Listen: Gemma Ritchie on the John Maytham Show

08 October 2020 - amaBhungane Reporter

Gemma Ritchie spoke to Cape Talk’s John Maytham about her investigation into a Prasa administrator who was paid R3-million just a day before a court ruled his appointment to be invalid.

Gemma also discussed the increased destruction caused to rail infrastructure during the country’s Covid-19 lockdown.

Listen to the full interview here.

Read: Prasa pays R3m to Mbaks’s administrator — just before court culls him

Watch: Croatian investigative show on Danko Končar and his links to SA

08 October 2020 - amaBhungane Reporter

In February 2020, journalists from Croatian investigative television programme, Provjereno interviewed Dewald van Rensburg on his 2019 story, The great Samancor ‘heist’, that revealed allegations of theft and corruption totaling over $500-million involving Croatian billionaire Danko Končar.

The allegations are contained in court proceedings pitting workers against Samancor Chrome, one of South Africa’s major privately owned mining and minerals processing companies, and Končar, its previous owner and chair.

Končar has had a storied career, owning and managing major mining and metals companies from Russia to Germany, South Africa and Finland. He has been dubbed the “king of chrome” in his native Croatia and is reportedly the richest Croatian in the world.

Van Rensburg’s interview forms part of Provjereno’s televised investigation into Končar’s international dealings. He explained how a profit shifting scheme and other dodgy deals orchestrated by Končar were allegedly used to siphon hundreds of millions of dollars offshore out of Samancor Chrome.

Watch Provjereno’s video.

Listen: Sam Sole talks about Eskom and the SIU’s claim to recover #StateCapture money

07 August 2020 - amaBhungane Reporter

Eskom and the Special Investigating Unit filed a R3.8-billion claim, alleging that former Eskom bosses conspired with the Guptas over a six-year period to exploit state-owned entities for the latter’s benefit.

Read: Update: Here are the papers in Eskom’s multi-billion state capture summons

Cape Talk’s Lester Kiewit spoke to amaBhungane’s Sam Sole about the case and why it is that criminal charges have yet to be bought against those named in the docket.

*Read how amaBhungane’s work is contributing to the recovery of billions in state capture loot.

Listen: Stefaans Brümmer unpacks his ‘Locorruption’ investigation

01 June 2020 - amaBhungane Reporter

On Monday it will be three years exactly since amaBhungane and its partners published the first #GuptaLeaks investigation. It showed that China South Rail (CSR) had promised kickbacks totaling R5.3-billion to the Guptas and their associates via letterbox companies in the United Arab Emirates and Hong Kong.

Today, June 1, 2020, amaBhungane published an investigation that reveals an additional seven kickback agreements, most of them made public for the first time.

*Retrace Brümmer’s steps and access a spreadsheet, with a comprehensive analyse of money flows, as well as all the kickback agreements via our evidence docket.

Brümmer took EWN’s Bongani Bingwa through his mammoth investigation, which included analysing bank data, matching payments that left Transnet as rands with US dollars inflows in Hong Kong and UAE bank accounts, while also adjusting for exchange rates on the day each payment was made.

On Transnet contracts worth R41.9-billion, companies in the CRRC stable pledged R9-billion in kickbacks to the Guptas. By the time our banking data ends in October 2016, the Guptas had already received at least R3.69-billion.

In his piece, Locorruption reloaded: We reveal Gupta kickback contracts worth R9bn, Brümmer writes:

“The kickbacks were paid by two locomotive manufacturers now merged to form CRRC Corporation, the Beijing-based conglomerate that boasts of being the world’s largest supplier of rail equipment. But the money came from ordinary South Africans via Transnet, a state-owned company. It followed a simple formula: whatever Transnet paid the CRRC companies, they paid the Guptas a cut of, usually 21%.

Listen to the interview:

Listen: Media law podcast on surveillance with Sam Sole

06 May 2020 - amaBhungane Reporter

Law firm Webber Wentzel’s Dario Milo speaks to Sam Sole and Professor Jane Duncan in the third episode of his legal podcast series on media law in South Africa.

The subject of the episode is surveillance and the impact of legislation on South Africa’s media freedom.

Get the podcast here.

AmaBhungane was involved in a landmark court case, challenging the constitutionality of South Africa’s surveillance law known as Rica – the Regulation of Interception of Communications and Provision of Communication Related Information Act.

After it heard legal arguments in February, the Constitutional court must decide whether to uphold the high court’s September 2019 ruling that found in amaBhungane’s favour and declared several provisions of Rica to be unconstitutional.

Explore more on our surveillance coverage: 

Analysis: Inside amaBhungane’s landmark ruling on surveillance
Advocacy: Surveillance — silent killer of journalism and democracy
Watch: #RICAchallenge highlights with Karabo Rajuili
Watch: Murray Hunter highlights the key issues around Rica

 

Watch: Reporting techniques for investigative journalists

25 March 2020 - amaBhungane Reporter

On February 28, 2020, The Namibian Media Trust (NMT) hosted a joint investigative journalism training session with amaBhungane and the IJ Hub, a non-profit spun off by amaBhungane which serves investigative journalists across Southern Africa.

AmaBhungane’s Susan Comrie traveled to Windhoek, Namibia to co-host the day’s training session, which focussed on reporting techniques for investigative journalists.

NMT said: “We sat down with investigative journalism trainers namely, Mathias Haufiku, Susan Comrie and Tileni Mongudhi after an interactive training session to find out about their experiences. While this genre of journalism supremely reflects the watchdog role of media in our society, they echoed challenges and opportunities facing the profession.”

Watch the video on the training session.

Susan Comrie on her top investigative tools with GIJN

18 March 2020 - amaBhungane Reporter

AmaBhungane investigative journalist Susan Comrie takes the Global Investigative Journalism Network (GIJN) through her top investigative tools.

Read the full article: My Favorite Tools with South African Investigative Journalist Susan Comrie

Comrie says many of her investigations began simply by poring over public records. “A lot of the time it’s a case of being able to take the data and then understand the narrative that flows from that data and come up with a hypothesis that one can then test,” she said.

Also check out our iVestigate page where you can find a number of useful digital investigative tools.

Watch: Carte Blanche interviews Sam Sole

16 March 2020 - amaBhungane Reporter

AmaBhungane launched its challenge to Rica in 2017 after learning that state security operatives had listened in on the phone communication of Sam Sole, one of our managing partners.

This followed a wider pattern of evidence that state spies routinely snoop on journalists, among many others. The information we secured about Sam’s spying served as scaffolding for a long overdue challenge to the reckless spying that Rica had enabled.

Watch RICA: Privacy Under Attack?

Also read:

Watch: Murray Hunter highlights the key issues around Rica

26 February 2020 - amaBhungane Reporter

The Constitutional Court must decide whether to uphold the high court’s September 2019 ruling that found in amaBhungane’s favour and declared several provisions of Rica – the Regulation of Interception of Communications and Provision of Communication Related Information Act – to be unconstitutional.

AmaBhungane launched its challenge to Rica in 2017 after learning that state security operatives had listened in on the phone communication of Sam Sole, one of our managing partners.

This followed a wider pattern of evidence that state spies routinely snoop on journalists, among many others. The information we secured about Sam’s spying served as scaffolding for a long overdue challenge to the reckless spying that Rica had enabled.

On Tuesday, 25 March, the Constitutional Court heard arguments from all parties, including counter-argument from the two entities whose spying powers were curbed by the high court’s ruling: the police and the State Security Agency (SSA).

Also read:

Listen: Cape Talk’s Kieno Kammies speaks to Susan Comrie about her Deloitte investigation

15 January 2020 - amaBhungane Reporter

AmaBhungane’s Susan Comrie explains how she pieced together information from interviews, tipoffs and 1 000 court documents in her investigation of two consulting contracts Eskom awarded to multinational firm Deloitte in 2016.

“We started looking at Deloitte in 2018, when we were investigating Nkonki Inc. the auditing firm which was covertly acquired by (Gupta-man) Salim Essa, and it was in that context that we came across the two Eskom consulting contracts,” Comrie said.

But with little evidence to go on, the investigation into the awarding of contracts to Deloitte had to be put aside — until October last year.

In an affidavit filed at the high court in Johannesburg, Eskom’s former chairman Jabu Mabuza provided more details how Deloitte secured the R207-million contracts despite its prices being considerably higher than other bidders. 

Deloitte has not filed its response to Mabuza’s affidavit, but during an interview with amaBhungane, Deloitte Consulting managing director for Africa Thiru Pillay accused Eskom of trying to bully Deloitte into a settlement.

As we reported in our original story, Pillay said that over months of discussions Deloitte had refused to concede that it was “complicit with irregular procurement” or that there was “any undertone of corruption” in its dealings with Eskom.

*Listen to the interview below.

Watch: Karabo Rajuili on the FM and amaBhungane’s court application for access to Zuma’s tax records

28 November 2019 - amaBhungane Reporter

Advocacy coordinator Karabo Rajuili unpacks amaBhungane’s latest legal challenge with Sakina Kamwendo on SABC2’s Morning Live show.

AmaBhungane and the Financial Mail launched an application earlier this week to access former president Jacob Zuma’s tax records and to challenge the constitutionality of tax secrecy provisions.

The application follows a process that began in February when the FM applied to the South African Revenue Service’s (Sars) under the Promotion of Access to Information Act (PAIA) for Zuma’s returns in the years 2010 to 2018, when he was head of state.

The FM’s initial request and a subsequent appeal were denied by Sars on grounds including secrecy provisions in PAIA and the Tax Administration Act (TAA).

Rajuili says: “The tax status of presidents and other holders of high office is of manifest public interest. The public may rightly ask, if the president does not pay his taxes or fails to disclose all income, why should they? The political capture and governance failures at Sars were to a large degree facilitated by the lack of public transparency at this important institution.”

 

“A vital part of rebuilding the integrity of Sars and improving tax morality is ensuring that investigative journalists and whistle-blowers have the right to access information and report on it, including how the tax authority handles the affairs of senior government officials,” she says.

Read
Advocacy release: amaB and FM launch application to access Zuma’s tax records

Listen: Sam Sole explains amaBhungane’s reasons for joining the #CR17 legal dispute

08 November 2019 - amaBhungane Reporter

Sam Sole speaks to SAFM’s Stephen Grootes about amaBhungane’s application to join the legal fray between Cyril Ramaphosa and Public Protector Busisiwe Mkhwebane over the president’s failure to declare very large donations received by the CR17 ANC election campaign.

*Read amaBhungane’s statement here.

*Listen to the interview below:

Listen: Stefaans Brümmer breaks down part 2 of an investigative series ‘Tender comrades’

01 October 2019 - amaBhungane Reporter

Stefaans Brümmer explained amaBhungane’s latest investigation, which directly links a businessman who was awarded a huge City of Tshwane fuel tender to the EFF, to Radio 702’s Clement Manyatela.

Brümmer said: “In a nutshell there’s a contractor: his name is Hendrick Kganyago, his company is BBT and he has the tender to supply fuel to the City of Tshwane. Now this is a huge amount of fuel, its a very large tender. Cities run trucks, ambulances, cop cars etc.”

Hendrick Kganyago was the incumbent fuel supplier until mid-last year when that three-year tender came to an end.

“Immediately after the City — now under DA rule and kind of propped up by the EFF — puts out the contract to tender again and immediately after they do that, Hendrick Kganyago starts paying three companies linked to the EFF leaders, including Julius Malema.

Six months later, Kganyago’s company was re-awarded the tender, which was split between three companies.

“He gets at least a third of his big contract back and he keeps paying these three EFF-linked companies. By the time he got the tender it was about R10-million he had paid, and by the end of last month he had paid about R15-million.

“Basically it’s a system of looking after the party or at least after its leaders while it presumably bats for you in prospective tenders you have from the municipalities. But it is very directly linked to the fuel tender, the bank references … in two cases he even put ‘fuel payment’ next to bank payments,” Brümmer said.

Listen: Stefaans Brümmer talks EFF, Afrirent, tractors and kickbacks

20 September 2019 - amaBhungane

Radio 702’s Arabile Gumede discussed amaBhungane’s investigation of payments a fleet rental firm made to an EFF-linked company, with Stefaans Brümmer.

Click here to listen to the interview.

Brümmer explained that this is a story amaBhungane first started investigating over a year ago and wrote a kind of preliminary article last November, “We saw that there were these payments made by Afrirent to a little company called Mahuna Investments, and this was just before Afrirent won a R1.2-billion fleet tender from the City of Johannesburg.

Brümmer said: “We stumbled across these two payments to Mahuna Investments by Afrirent. Mahuna was on our radar because we knew it was linked to the EFF, and we were interested in the rumours making the rounds that the EFF — after it gained access to power in both Tshwane and Johannesburg after the 2016 elections — started playing gate-keepers; extracting rents from contracting and procurement budgets of these cities where it now played a significant role.”

There was “a round of denials” after amaBhungane’s story last year. But said Brümmer, “What we’ve now done is we’ve amassed quite a bit of extra information and we are now really in a position to say the evidence is that these were kick-backs.

“We have no EFF version on what we’ve published now: We’ve got their blunt denials from the response in our article last year. Afrirent has maintained its version, which is that these payments it made to Mahuna were not kickbacks in relation to the City of Johannesburg tender, but Mahuna having delivered services to Afrirent on a completely different contract linked to a contract it has in Limpopo.

“We looked at the same period of the services allegedly delivered by Mahuna, and what we found was that there was about R520 000 of services provided by Afrirent to the department of rural development and land reform in Limpopo to deliver tractors and farming implements to communities.”

Afrirent subcontracted Mahuna “to provide training and logistics for the delivery and implementation”.

“It just defeats all reason to say that when it (Afrirent) earns R520 000, it is going to pay Mahuna it’s subcontractor R500 000. Ie. almost the total amount, for a very minor logistics and translation component of the contract. It just doesn’t make any business sense — the alibi doesn’t stand,” Brümmer said.

Listen: Karabo Rajuili talks to Kaya FM about amaB’s RICA court challenge win

18 September 2019 - amaBhungane

Following amaBhungane’s court victory on Monday 16 September, our advocacy coordinator Karabo Rajuili discussed the Johannesburg High Court judgement with Kaya FM‘s David O’Sullivan.

In April 2017 amaBhungane launched a legal challenge against the Defence Ministry, the State Security Agency and others over the constitutionality of certain sections of the Regulation of Interception of Communications Act (Rica).

On Monday, High Court Judge Roland Sutherland ruled in amaBhungane’s favour. The Right2Know Campaign and Privacy International were admitted as friends of the court.

Rajuili told O’Sullivan: “The court ruled that parliament must amend Rica … there are temporary provisions for those sections of Rica, found by the court to be constitutionally invalid. These will be enforced until parliament (reforms) the legislation.”

Listen to the interview:

“However, there is one aspect of the judgement that I think has very far-reaching ramifications. In the judgement we have six difference orders, and the sixth one is related to bulk interception. In our application we argued this type of surveillance falls outside of any type of oversight framework,” Rajuili said.

“The court in this matter ruled that it is simply unlawful: in this instance it isn’t a matter of the State fixing or remedying it, it has been declared unlawful. So it has to stop.”

In his judgment on the issue of bulk interceptions, Sutherland said, “… in my view, no lawful authority has been demonstrated to trespass onto the privacy rights or the freedom of expression rights of anyone, including South Africans, whose communications criss-cross the world by means of bulk interception. A declaratory order to that effect is appropriate. The applicant seeks an order in these terms, which I endorse:

‘The bulk surveillance activities and foreign signals interception undertaken by the National Communications Centre are unlawful and invalid.’

“Whether or not bulk interception per se could be constitutionally compliant in our law, were there to be a law that allows it, it is unnecessary to decide,” Sutherland ruled.