Corruption reports’ content known but remain ignored

The content of the three Precca reports are not new revelations to the Hawks, strengthening concerns that they are reluctant to investigate the Guptas.

In August 2015 telecoms provider Neotel submitted the Precca report to the Hawks after its involvement in a Transnet kickback scandal was revealed. Neotel paid two instalments worth R41-million, including value added tax, to the Gupta-affiliated company Homix, which offered to secure a lucrative Transnet IT contract worth more than R300million for Neotel.

After the revelations, in 2010 the Neotel board ordered an investigation, and the facts were widely publicised in the media.

The Hawks are not reliant on complaints from the public, but are empowered to initiate their own investigations.

More than a year later, in November 2016, another Precca report was submitted to the Hawks, this time by Regiments, a rival company of Trillian Capital Partners. It provides evidence that includes alleged fabricated invoices and service agreements. The attached documentation is alleged to point to a money-laundering scheme, in which R17.1million was washed through the Guptas’ newspaper The New Age.

The report was leaked shortly after it was submitted to the Hawks and was widely publicised in the media.

The third Precca report was submitted to the Hawks in July 2016 by the business rescue practitioners of Optimum Coal Holdings and Optimum Coal Proprietary, referred to extensively in the State of Capture report.

Alerted by information revealed in media reports by amaBhungane and Carte Blanche, this Precca report alleges how a latenight teleconference meeting by Eskom officials saved the Gupta’s plan to acquire Optimum. Eskom is alleged to have agreed to prepay the Gupta company Tegeta R586million for coal yet to be delivered. Eskom’s intervention filled Tegeta’s shortfall in the R2.15billion deal. Eskom’s prepayment to help out the Guptas was also widely published in the media and the public protector’s report. Gordhan of 72 suspicious transaction reports red-flagged by the Financial Intelligence Centre (FIC).

Mulaudzi said that “on the Financial Intelligence Centre matter we can confirm that we are investigating several matters which were brought to our attention”.

This contradicts a letter of January 17, signed by Hawks boss Major General Mthandazo Ntlemeza, which indicated the unit was not investigating the FIC transactions.

Though Madonsela made no findings in her state capture report, she brought the evidence gathered in her investigation to the attention of the Hawks.

The FIC has refused to provide further detail to the Hawks about the 72 re-flagged transactions, which would complicate a Hawks investigation.