Academics detail extent of capture

ANC veterans and SACP members were shocked after hearing that South Africa lost more than R40 billion smuggled out to Dubai to benefit the Guptas and their associated companies.

The billions were allegedly taken from the budgets of various state-owned entities (SOEs) such as Eskom, SAA and Transnet, and left the shores of the country over the past five years without being detected.

These details were revealed by a group of academics and members of the SA Council of Churches to SACP members during the party’s 14th national congress at the Birchwood conference centre in Benoni yesterday.

The SACP has been calling for President Jacob Zuma to step down following then-public protector Thuli Madonsela’s “State of Capture” report.

Yesterday, Prof Ivor Chipkin of Wits University told SACP delegates that the partnership between certain government officials and the Guptas “began as a political project that started in good faith”.

He said that in 2009, after Zuma had taken over, the parties had initially planned to deal with the challenges of black people not participating in the economy.

The parties agreed to produce black industrialists, but the troubles began in 2010 and 2011, when they allegedly became entangled in public procurement projects that did not meet the requirements of the law.

According to Chipkin, the constitution and laws became a threat to the Guptas in their quest for government contracts, and as a result there were “growing assaults and political attacks on the Treasury”.

“There were also increasing moves to illegally reshuffle the cabinet.”

He said all that was aimed at influencing the awarding of the R51 billion tender for the purchasing of locomotives for Transnet.

He said a similar modus operandi was executed at Eskom.

The power utility paid Glencore mine R325m annually for the purchase of low-quality coal.

But the amount increased to R7bn annually when the Guptas took over the same mine, Chipkin said.

The academics said that some cabinet decisions were taken either at Saxonwold, the Guptas homestead, or at a kitchen cabinet.

Decision

Their decision would then be referred to the cabinet to “rubber stamp”.

Sikhulekile Duma, from Stellenbosch University, corroborated Chipkin’s claims, saying the nuclear deal had been decided by the “kitchen cabinet” and was referred to Zuma’s cabinet for rubber stamping.

Even the Western Cape High Court found that Parliament had not been consulted about the Nuclear Deal, Duma said.

Duma shocked delegates when he told them South Africa was spending R212bn on its SOEs, and Eskom controlled 74bn of the total.

“Eskom officials do not need Treasury approval and they do business with whoever they want,” Duma said.