Fears of Guptas’ R1.8tn ‘last heist’
A SERIOUS push back is unfolding inside and outside the Public Investment Corporation (PIC), the custodian of pensions of public servants, to block alleged attempts by the Gupta family to hijack the crucial state-owned company.
It is believed that the Guptas are pushing to replace PIC chief executive officer Dan Matjila tomorrow with one of their associates, a board member recently appointed by Finance Minister Malusi Gigaba.
The PIC is the biggest investor in the economy – with R1.87 trillion under its wing – and manages funds on behalf of the Government Employees Pension Fund.
The Mercury’s sister newspaper, The Star, understands that deputy PIC chairman Xolani Mkhwanazi has written to Matjila, who is in the US on business, asking him to answer to allegations of corruption by one of many Gupta websites.
The allegations have been distributed to board members ahead of the urgent meeting tomorrow.
Matjila is accused of allegedly funding a project linked to an alleged lover.
The plan, sources claim, is that when Matjila goes, a Gupta appointee takes over and during this time the family can lay their hands on billions of rands in the PIC in what appears to be their latest capture of a state-owned entity – and possibly their last heist before President Jacob Zuma goes in 18 months.
This is not the first time the Guptas have tried to wrest control of the PIC.
Sources at the Treasury told Independent Media that the Guptas had been lobbying Gigaba to appoint disgraced former Eskom boss Brian Molefe as PIC chief executive.
This was after Molefe left the power utility amid a pension scandal.
The Guptas, still nursing a bloody nose after they were found to have used disgraced British public relations firm Bell Pottinger to fan racial divisions in South Africa, have also been nailed for state capture by former public protector Thuli Madonsela’s State of Capture report, which is the subject of a court battle between Zuma and the DA.
Zuma is taking the report on review but the DA wants him to implement the recommendations of the protector, which include appointing a judicial commission of inquiry headed by a judge appointed by Chief Justice Mogoeng Mogoeng.
Zuma believes he must appoint a judge of his choice and that this recommendation violates the separation of powers, and that the constitution mandates him to appoint judges.
The Guptas are allegedly using the same modus operandi they used to capture other state-owned entities such as Eskom, Transnet, SAA, the SABC and Prasa.
Matjila said he was aware of tomorrow’s meeting, which was initially termed “directors affairs committee meeting” and then swiftly changed to a special board meeting.
He said he knew about the corruption allegations against him, but was in the dark on the possible Gupta takeover at PIC, which he said would be detrimental to the PIC and civil servants.
“I’m not aware of such plans, but I have been asked to respond to these allegations. I have done so in writing. It will be another governance failure at an SOC. It will disrupt the functioning of the PIC. Civil servants’ hard-earned money will be under serious risk,” said Matjila.
Gigaba’s spokesperson, Mayihlome Tshwete, acknowledged the written questions but had not responded by the time of going to press.
However, it is believed that Gigaba is concerned about Matjila’s possible removal and would prefer to keep him until next year, at least. A Treasury source said Gigaba had blocked attempts to bring Molefe to the PIC.
PIC chairman Sfiso Buthelezi, who is also deputy finance minister, said last night that there was no truth to an attempt by the board to remove Matjila tomorrow.
Deon Botha, PIC head of corporate affairs, claimed not to have information about the meeting’s agenda.
“Special board meetings are called through the directive of the chairman of the PIC board. We are not privy to the form and content of the agenda of the planned special board meeting. We therefore suggest that questions relating to the upcoming special board meeting be directed to the chairman of the PIC board.”
Mkhwanazi could not be reached yesterday despite SMSes and an e-mail sent to him.
Molefe could not be reached for comment.
The Guptas’ lawyer, Gert van der Merwe, said they were targeted because they initiated litigation that involved the PIC.
“I’m involved, and I can’t say more than that, (we are) in litigation against Sekunjalo, which is the company that acquired shares in a media house – Independent Media. That agreement is governed by a confidentiality clause. I have to comply with that contractual obligation,” Van der Merwe said.
He said that the litigation had to do with roughly R800 million the PIC loaned Sekunjalo when it acquired the then Independent Newspapers in 2013.
“What I can tell you is that it (the litigation) is by all means not intended to dilute the position of the PIC.
“In fact, my view is that it will only strengthen the position of the PIC. For that reason, to refer to the PIC as being captured is, with respect, absolute nonsense,” Van der Merwe said.