Guptas ‘chump change’

United Democratic Movement leader Bantu Holomisa continues to allege that BEE investment firm Lebashe Investment Group and prominent businesspeople might be involved in corruption at the Public Investment Corporation (PIC).

Judge Vivian Tlhapi yesterday granted an order against Holomisa in the High Court in Pretoria after an urgent application by the Lebashe Investment Group, former deputy finance minister Phillip Moleketi, Harith General Partners, Harith Fund Managers and businesspeople Warren Wheatley and Tshepo Mahloele. The interdict will remain in place pending the institution of a damages claim for defamation, but will lapse if this is not done within a month.

The judge handed down the order without giving reasons for her ruling, but said she would provide her reasons “soon”.

Holomisa told journalists he intended to appeal the ruling.

The applicants turned to court after Holomisa sent a letter to President Cyril Ramaphosa in which he claimed several companies and individuals were involved in the looting of the PIC and urged him to widen the terms of reference of the Zondo commission of inquiry into state capture to include an investigation into the PIC.

In the letter, Holomisa alleged “possible” corruption at the PIC “could potentially make the Gupta family’s alleged capture of state look like chump change” and claimed the “iceberg of corruption” aimed at “fleecing the PIC of billions of rands” was “rising day by day”.

He named a list of companies and individuals he said had links with the PIC, adding it made for “uncomfortable reading” when one considered the possibility of “a very opaque scheme that will put at risk the Government Employees Pension Fund”.

The PIC, one of the largest investment managers in Africa, is wholly owned by the government and invests funds on behalf of public sector entities.

Wheatley, a director of the Lebashe Investment Group, alleged in court papers the majority of Holomisa’s allegations were plainly false, “manifestly absurd and sensationalist” and clearly defamatory.

He accused Holomisa and the UDM of “recklessly abusing their power” and said it appeared the UDM leader believed himself entitled to degrade and insult them further and ride roughshod over their rights.

Holomisa defended the contents of his letter and said the facts cried out for an in-depth forensic investigation.

“The picture that emerges is a complex structure of entities established by employees of the Public Investment Corporation who, after resigning, subsequently join the firm entities and derive immense financial benefits from those entities.

“... investment decisions taken by PIC employees appear to be intended to benefit the very same employees once they have left the PIC,” he said.