State capture

An entirely new type of corruption

Judith February

This report explores the phenomenon of state capture – the harnessing of the state apparatus
of South Africa to serve private interests. It looks specifically at the role of the Gupta family
and their relationship with prominent politicians, including the country’s former president
Jacob Zuma. It is an account of a toxic mix of politically infused business, abuse of state
resources and intimidation – all of which damaged state institutions and underlined the need
for transparency in government.

SOUTHERN AFRICA REPORT 25  |  SEPTEMBER 2019

 Key findings
The media has done a sterling job over the That this happens in the open and allegations
past decade in doggedly uncovering instances are tested and broadcast live is crucial.
of state capture. T
 he Zondo Commission has shown that no-one
The country’s state-owned enterprises is above the law. Even Zuma was called to testify.
(SOEs) are in a parlous state, and it is not Transparency matters and the rot is now in the
apparent how they might be turned around. open.
Politicians linked to state capture remain
South Africans remain shocked at the depth of
in office.
corruption during the Zuma years.
State capture extends beyond the state into a
Future prosecutions will be key if South
compromised private sector.
Africans are going to regain trust in democratic
The uncovering of corruption at the Zondo institutions which have been hollowed out for
Commission has been good for democracy. the purpose of state capture.

Recommendations
Further links need to be found and research Commission so that its credibility is not
carried out on the connections between the damaged.
private sector and corruption.
Parliament may also be called to act and it
Prosecutions arising out of the Zondo should similarly do so speedily. This has not
Commission are essential to restore the always been the case in the past when there
public’s faith in the justice system. have been ethical breaches.
Those democratic institutions which were Civil society organisations will also need to
captured by vested interests need to be follow up on the recommendations made by
repurposed for their original constitutional intent. Deputy Chief Justice Ray Zondo.
This will require a speedy conclusion to the The media too will be required to continue to
Zondo Commission process. shine a light on corruption in the state and
The president will need to act quickly on private sector to ensure that both are held
the findings/recommendations of the Zondo to account.

2 STATE CAPTURE: AN ENTIRELY NEW TYPE OF CORRUPTION

Introduction One story that has come to define the idea of undue
influence in South African politics concerns the Gupta
South Africa is awash with investigations and public
family. A trio of brothers – Ajay, Atul and Rajesh –
information relating to corruption and a general failure
immigrated to South Africa from India in the 1990s,
of accountability. The ‘new dawn’ which President Cyril
seeking business opportunities as the transition to
Ramaphosa has indicated he wishes to usher in has
democracy unfolded.2 Their first venture was evidently in
seen him move swiftly to deal with a number of things.
He has, for example, attempted to tackle the alleged information technology, establishing Sahara Computers
corruption within the South African Revenue Service in 1994 – it exists today and bills itself as ‘one of the
(SARS) and to put the country’s state-owned enterprises largest independent information technology distributors
(SOEs) such as Eskom and South African Airways (SAA) in Southern Africa’.3 They subsequently branched out
on a more sound footing. Yet these problems form part into various other industries – mining, media, leisure and
of an enduring pathology in South Africa – something engineering – their stakes were vested in the holding
that has been termed state capture. It will not be easy company Oakbay Investments.4
for Ramaphosa to stem the rot which has set in after
the ‘nine wasted years’ under President Jacob Zuma. It will not be easy for Ramaphosa
Repurposing institutions which have been captured to stem the rot which has set in
requires careful work and commitment across society, not
after Zuma
only within the state, though that is where the clean-up
has to start.
The Gupta story is a complex one, involving several
Daniel Kaufmann and Joel Hellman, writing for the distinct but inter-related strands of activity. This
International Monetary Fund, describe state capture corresponds to the multifaceted nature of the state
as, ‘the efforts of firms to shape the laws, policies and capture phenomenon. As such, it is best related
regulations of the state to their own advantage by thematically, rather than chronologically; it is important to
providing illicit private gains to public officials’. They go bear in mind that the accounts of political and economic
on to say that, ‘because such firms use their influence chicanery were taking place in tandem with each other.
to block any policy reforms that might eliminate these
advantages, state capture has become not merely Making political connections
a symptom but also a fundamental cause of poor It appears that the Guptas met Zuma, then deputy
governance. In this view, the captured economy is president, in 2002, although the relationship took on a
trapped in a vicious circle in which the policy and more overtly corrupt tone once he became president.
institutional reforms necessary to improve governance One point of connection was in the career of Zuma’s
are undermined by collusion between powerful firms and
son, Duduzane. In 2008, shortly after Zuma assumed
state officials who reap substantial private gains from the
the presidency of the ANC, Duduzane was appointed
continuation of weak governance.’1
a director of Mabengela Investments, a Gupta-owned
Anne Lugon-Moulin further says that, ‘state capture company. Over the following years, he was appointed
can be further refined by distinguishing between types director of a number of others.5 The relationship between
of institutions subject to capture (legislative, executive, the president’s son and the Guptas would feature
judiciary, regulatory agencies and public works ministries) prominently in concerns about the influence that the
and the types of actors actively seeking to capture (large family might be exerting on Zuma as well as various
private firms, political leaders, high ranking officials, aspects of governance.
interest groups).’ This all sounds very familiar.
In 2010, the Gupta brothers were part of the business
But how has state capture manifested itself in South delegation accompanying Zuma on a state visit to India.
Africa and where did this story start? It is always helpful Other delegates complained that they appeared to
to look back before looking forward, though state capture exercise an inordinate amount of influence over Zuma’s
takes many forms and South Africa is no exception. itinerary. One businessman was quoted in the media as

SOUTHERN AFRICA REPORT 25  |  SEPTEMBER 2019 3

 saying: ‘It was clear that the family wanted to use Zuma It should also be noted that Gupta-linked largesse was
to establish connections for themselves. We expected also passed on to parties other than the ANC. In 2009,
to meet potential investors, but it soon became clear all then DA leader Helen Zille received a cheque for some
the deals were done already; we could just pick up the R200 000 at the Gupta residence. She maintained that
crumbs that fell from the main table.’6 this was a personal cheque (from a personal bank
account), and that the donor in question was not a
It was around this time that the Guptas began to make
Gupta. The donor – not named in the media – said to a
headlines and in short order established a reputation as
reporter: ‘From the beginning there was no confusion. I
businesspeople who were prospering as much from their
political connections as from their business acumen. In was representing the Gupta group of companies.
early 2011, Cosatu raised concerns about the influence Surely, she could not have been under the impression
that the Guptas appeared to have on government. Its that I took her to the Gupta house for cake, tea and
president, Sdumo Dlamini, remarked: “We are worried good food.’14
about the Guptas. We are not accusing anyone of
corruption, but the perception that is being created is not Concerns about the links between
good for our country.’7
the Guptas and the government
Indeed, speculation about their activities became a abounded
prominent subject of media speculation. Reports that
cabinet ministers had been visiting the Guptas’ home – in
the suburb of Saxonwold, Johannesburg – moved While the Guptas had been surrounded by controversy,
government spokesman Mzwanele Manyi to protest events at the end of 2015 would take this to a new
against questions on the matter, saying that it was any level of brazenness. On the evening of Wednesday,
person’s constitutional right to associate with 9 December 2015, Zuma announced that he was
whomsoever he or she chose to.8 ANC Secretary- removing Minister of Finance Nhlanhla Nene from his
General, Gwede Matashe, accused the Guptas’ position ‘ahead of his deployment to another strategic
detractors of racism, saying that the concerns were due position’.15 He was to be replaced with a little-known
to their Indian origins.9 backbencher, Des van Rooyen. Zuma offered as grounds
for this move Nene’s pending nomination to head the
Nevertheless, these concerns about the links between the
African Regional Centre of the New Development Bank
Guptas and the government abounded. The apparent links
(an institution established by the Brazil-Russia-India-
took on a particularly brazen quality in April 2013, when a
China- South Africa group: BRICS).16 However, such a
party of guests arriving for a Gupta family wedding were
nomination has never been forthcoming.
permitted to land at Waterkloof Airforce Base.10 Although
attempts were made to explain this by arguing that one of Zuma offered no more than hints at his motivation. In a
the guests was an Indian government official invited by the speech to a business audience a few days after the
MEC for agriculture in the Free State, Mosebenzi Zwane,11 announcement, he implied vaguely that he had acted out
this did little to calm the public outcry. of political and ideological necessity.17 He returned –
again, nonspecifically – to this theme, telling an audience
An official report into the matter held a number of
of the ANC Youth League that if South Africa understood
officials responsible, among them Bruce Koloane, then
what was happening in the country, they would
chief of state protocol. (He was, however, subsequently
appreciate his ‘correct’ decision.18
named South Africa’s ambassador to the Netherlands,
an odd choice – and certainly no chastisement – for Concern about the fallout from this move – not least the
someone who had been responsible for such a prospect of South Africa suffering a ratings downgrade
breach.)12 The report further commented: ‘The activities – mobilised people within the ANC and without to appeal
of some of the persons involved were driven by the to Zuma to reverse it. On the evening of 13 December,
undesirable practice of the exercise of undue influence, former finance minister Pravin Gordhan was re-appointed
and abuse of higher office.’13 to the post.

4 STATE CAPTURE: AN ENTIRELY NEW TYPE OF CORRUPTION

In the absence of any firm explanation for his actions, with links to the Guptas’ businesses – named in the
speculation grew as to what Zuma was trying to achieve media as Mohamed Bobat and Ian Whitley – were
by removing Nene. Theories quickly centred on what such assigned to work at the Treasury. In fact, they had
a change might mean for the posture that the National reportedly visited the Treasury before Van Rooyen was
Treasury had long adopted in demanding fiscal prudence, formally appointed and informed the management that
an ever more important demand after South Africa’s they would be able to sign authorisations on behalf of
economic growth trajectory had fallen, along with global the minister, but would otherwise not be making any
economic turbulence, over the preceding decade. One of changes.22 (When Van Rooyen was removed as
the key suspicions was that removing Nene and replacing finance minister and shifted to the cooperative
him with a ‘lightweight’ in the person of Van Rooyen governance and traditional affairs portfolio, they
would enable Zuma and his cronies to ‘capture’ the departed with him.)
Treasury. Critics pointed to two key pieces of evidence.
A related controversy broke out a few months later, in
One part of this narrative was a dispute between the March 2016, when former ANC MP Vytjie Mentor said
National Treasury and South Africa’s national carrier, SAA that she had been offered the public enterprises portfolio
(whose chairperson, Dudu Myeni, was believed to be in cabinet in 2010 (following the removal of Barbara
close to Zuma). Treasury had days before refused to allow Hogan) by members of the Gupta family at a meeting at
a change to a leasing agreement for aircraft that would their Saxonwold residence. In return, she was expected
possibly have entailed a greater financial burden for the to drop the SAA flight route to India and allow the Guptas
already stressed airline than the original. Treasury to operate it.23
commented: ‘In fact, the information indicated that the
proposed transaction structure would actually leave SAA
in a materially worse off financial position where it is
The scale of proposed expenditure
unable to meet its commitments as they fall due.’19 on nuclear would dwarf the arms deal
Another was the proposed construction of a fleet of
nuclear reactors to provide South Africa with energy, a A more explosive claim was made shortly thereafter. In
project supported by Zuma. Treasury was reportedly what appeared to be a smoking gun pointing towards
extremely concerned about the affordability. Its estimates the Gupta link in the removal of Nene, Deputy Finance
put the cost at between R700 billion and R1.4 trillion, an Minister Mcebisi Jonas released a statement claiming
enormous investment relative to the size of the economy, that the Guptas had offered him the position of minister
and substantially above the estimates put forward by the of finance:24
Department of Energy (in the region of R600 billion). The ‘Members of the Gupta family offered me the
scale of expenditure would dwarf the arms deal. Amid position of Minister of Finance to replace then
low growth and the threat of a ratings downgrade, Minister Nene. I rejected this out of hand. The
controlling spending was vitally important. The nuclear basis of my rejection of their offer is that it makes a
build would likely be massively destabilising. It was mockery of our hard earned democracy, the trust of
resistance to it, asserted some commentators, that our people and no one apart from the President of
caused Zuma to turn on Nene.20 the Republic appoints ministers.’
Thus, the suspicion arose from the first that Nene’s Jonas’ account was that he had been invited to a
removal was designed to benefit particular interests meeting in October 2015 by Duduzane Zuma.
(former finance and planning minister Trevor Manuel Although he had misgivings about doing so, he
alluded in an open letter to an ‘outside hand’ privy to agreed, and they met at the Hyatt Regency hotel in
information that the cabinet was evidently not).21 Whether
Rosebank, Johannesburg. Duduzane Zuma said that
this included the Guptas was not immediately clear.
the hotel was too crowded and that he wished to
But suspicions arose when, shortly after Van Rooyen conduct the discussion in a more private place and
was sworn in as finance minister, two of his advisers with another party.

SOUTHERN AFRICA REPORT 25  |  SEPTEMBER 2019 5

 The destination proved to be the Guptas’ residence in Saxonwold. There
he met Ajay Gupta (whom he had never met before), who proceeded to say
that the Guptas had made a number of politically connected persons very
wealthy, and that their businesses had ‘made a lot of money from the state’.
He continued that the National Treasury was a hurdle to their ambitions. Thus,
they would ensure that Jonas become the finance minister, in exchange
for which he would remove a number of senior officials at Treasury. Ajay
Gupta also allegedly offered him R600 000 in cash, plus R600 million to be
deposited into an account of his choice. Jonas turned this offer down and
asked to be taken to the airport. He informed Nene of these events, and later
also Gordhan and Zweli Mkhize of the ANC.25 (Ajay Gupta denied under oath
that he had ever met Jonas.)26

Concern and condemnation grew rapidly. In April 2016, South Africa’s major
banking groups and some other financial service providers announced
decisions to cut ties with the Guptas’ companies in the wake of the
allegations against them. The government took the extraordinary step of
appointing an interministerial committee – chaired by Zwane – to look at the
matter.27 Ultimately, it recommended that a judicial commission of inquiry into
the matter be appointed.28

The results of the local government election in

August 2016 could only underline the damage the
links with the Guptas may have done to the ANC
Notably, Gordhan obtained legal advice that it would be unlawful of him,
as finance minister, to intervene in the matter. He subsequently sought a
declaratory order from the Pretoria High Court to this effect.29 In his court
documents, Gordhan included a report on 72 ‘suspicious’ transactions
involving the Gupta family and their businesses.30

Stung by the allegations, the ANC launched a probe into state capture,
encouraging people with information to come forward and pass it on to the
party. However, only one submission was made. This was from the former
head of the Government Communication and Information System (GCIS),
Themba Maseko. He alleged (this was recorded in detail in the public
protector’s report) that he was approached by members of the Gupta family
who demanded that he channel government advertising into their newspaper,
The New Age. He also noted a call from Zuma in which he was asked to
‘help’ them. He said that his termination as head of GCIS was a consequence
of having failed to do so.31

By all accounts, the ANC found itself deeply divided over the revelations
and over the implications for the public’s perceptions of Zuma’s suitability as
ONLY ONE SUBMISSION WAS president. The results of the local government election in August 2016 – which
MADE TO THE ANC PROBE INTO saw the ANC lose control of Johannesburg, Tshwane and Nelson Mandela
STATE CAPTURE Bay – could only underline the damage the links with the Guptas may have
done to the party.

6 STATE CAPTURE: AN ENTIRELY NEW TYPE OF CORRUPTION

A new way of doing business Since Optimum did not produce enough to meet both
contracts, it appeared that Eskom was allowing it to
Allegations of the Guptas’ influence on politics were
divert part of the coal meant for Hendrina (at a vastly
intimately linked to suspicions that they were using
lower price) to Arnot. (Although on this point, Eskom
their political influence to draw extensive advantages in
countered that Hendrina had reduced its burn rate and
their business dealings. A rather limited earner was the
therefore needed less coal.)34
sponsorships received from SOEs for breakfast briefings
organised by The New Age.32 There was also some It subsequently emerged that Eskom had prepaid Tegeta
evidence of disproportionate government advertising over R659 million for the coal it ordered, and that Eskom
spend being directed to the Gupta-owned publication.33 had itself had concerns that the coal from Optimum did
not meet its standards.35 The public protector’s report
On a far larger scale were concerns about the Guptas’
on the matter (described below) also argued that this
interests in mining and the implications for the public
prepayment actually appears to have been made to
finances and potentially also the integrity of public policy.
enable Tegeta to purchase all shares in OCH, for which it
Perhaps the most well known instance involved Tegeta was some R600 million short.36
Exploration and Resources, a mining firm under
Oakbay Investments. In mid-2016, details came to light
On a far larger scale were concerns
about a deal concluded with state power utility Eskom
which by all outward appearances defied commercial
about the Guptas’ interests in mining
sense. Tegeta had recently purchased Optimum Coal
Holdings (OCH), a loss-making coal-producing entity The Guptas’ other mining interests also evoked concern.
in business rescue. In March 2016, it was projected to Some commentators had suggested that the Guptas’
lose around R100 million a month going forward. The business interests – specifically, their ownership of
purchase itself had become shrouded in controversy, the Shiva uranium mine – could play a role in driving a
as it was alleged Zwane (who had earlier attempted decision to go ahead with the highly controversial nuclear
to provide cover for the Waterkloof wedding debacle power build, which could cost in excess of R1 trillion.37
and had then been appointed minister of mineral
resources), had travelled to Switzerland in December Decline sets in
2015? to assist the Guptas in buying Optimum from its The controversies generated by the Guptas’ conduct
former owner, Glencore. became increasingly unpalatable to the country and
Optimum’s fortunes were, however, rapidly turned around the business community. Their sense of impunity and
with a contract to the value of some R564 million (or arrogance had made them the target of much media
just shy of R700 million with transport costs added) comment, very little of it favourable. They came to be
to supply coal to Eskom’s Arnot power station over a closely identified with the pathologies of the Zuma
period of six months. This was an exceptionally generous administration.
arrangement. A report in City Press pointed out that at A critical blow was struck by a number of banks and
R470 a ton (R580 with transport costs), the purchase auditing firms in early 2016 when they would no longer
from Tegeta for the Arnot station would be one of the deal with the Guptas’ businesses.38 Astoundingly, a
most expensive that Eskom had. According to figures group of cabinet ministers attempted to intercede on
provided in Parliament, the average price Eskom paid the Guptas’ behalf. In response to this, the Guptas
for coal was some R230.90. Two other suppliers were and Duduzane Zuma announced their resignation
contracted for smaller amounts, but a spokesperson from directors’ positions at Oakbay.39 In August, they
for one of them indicated that they were being paid announced an intention to sell their South African
significantly less than Tegeta. assets.40

Furthermore, part of Optimum’s woes was an unprofitable The Guptas’ reputation was further damaged by
agreement to supply coal to Hendrina power station. revelations that they had engaged the British public

SOUTHERN AFRICA REPORT 25  |  SEPTEMBER 2019 7

 relations firm Bell Pottinger to defend their image. This The first was whether the president had allowed the
the firm had done by recklessly stirring racial tensions, Guptas or his son Duduzane to influence the removal of
dabbling in ‘fake news’ and portraying the family Nene as finance minister, and the appointment of Van
as suffering abuse at the hands of ‘white monopoly Rooyen as his replacement. The report noted Jonas’
capital’. Their work, incidently, aligned well with the claims that he had been offered the position some six
agenda of then incumbent president Zuma.41 In one weeks before Nene was relieved of his position. It also
instance, Bell Pottinger employees noted that their recorded evidence of contact between Van Rooyen
material had been used by ANC Youth League leader and the Guptas in the period prior to his appointment.
Collen Maine. Wrote one: ‘Am about 10 minutes in and It further pointed to contact between an adviser
see he has used one of our statistics … and defended appointed to the National Treasury in December 2016
the family … which is good.’42 and someone in Saxonwold, Johannesburg, the home
As the tide turned against Zuma – notably in 2016 and suburb of the Guptas – this ‘coincidence is a source of
2017 – he and his allies invoked the spectre of ‘white great concern’.43
monopoly capital’ and promoted its supposed remedy,
‘radical economic transformation’, with growing stridency. In March 2016, Madonsela
Enter the Public Protector announced she would be undertaking
Against this background came the intervention of
an investigation into state capture
Public Protector Thuli Madonsela. In March 2016, she
announced that after having received a number of The second was whether Zuma allowed the Guptas or
complaints, she would be undertaking an investigation his son to be involved in the removal and appointment
into state capture. of members of the cabinet. The report noted that
nothing appeared to have been done to verify Mentor’s
Three complaints were made to the public protector – the
allegation that she had been offered a cabinet position
first by one Father S Mayebe, on behalf of the Dominican
by the Guptas. If this was correct, it would have violated
Order, the second by Mmusi Maimane, leader of the
the Constitution and the Executive Ethics Code, the
Democratic Alliance (DA), and the third by a member of
latter stipulating in Section 2.3(c) that no member of
the public (whose name was withheld in the report).
the executive may act in a manner inconsistent with
The investigation revolved around two key allegations. their position. She added that a failure to verify Jonas’
These were the claims made – and detailed above – by allegations could amount to a breach of Section 34 of
Mcebisi Jonas and Vytjie Mentor. the Prevention and Combatting of Corrupt Activities Act,
The complainants asked the public protector to No 12 of 2004, which demands that those in positions
investigate whether the Guptas had indeed influenced of authority who come to know or reasonably suspect
cabinet appointments; whether the Guptas had known of corrupt activities report them to the police.
Van Rooyen’s appointment to the Finance Ministry before The third was whether Zuma allowed the Guptas or
it was announced; whether advisers linked to the Gupta his son to be involved in appointing people to serve on
family had been irregularly appointed to the National boards of directors of SOEs. Here the report said that it
Treasury; whether the Guptas had received any undue appeared that violations similar to those noted above may
business benefits in their dealing with the state or state- have occurred in relation to the removal of Maseko from
owned enterprises; what role Zuma had played in these the GCIS. It also expressed concern about the ‘cozy’
events; and whether it was appropriate that government relationship between former Eskom CEO Brian Molefe
should intervene in the relationships between banks and and the Guptas.
their clients.
The fourth was whether Zuma had ‘turned a blind eye’
From these, the public protector formulated a set of to alleged instances of corruption involving the Guptas
themes for investigation. and his son – these having purportedly sought to grant

8 STATE CAPTURE: AN ENTIRELY NEW TYPE OF CORRUPTION

appointments in exchange for reciprocal benefits. The Switzerland, as well as the Tegeta contract. It stated:
report said that it did not appear that Jonas’ allegations ‘It appears that the conduct of the Eskom board was
– of being offered an enormous sum of money in solely to the benefit of Tegeta in awarding contracts to
exchange for his support for the Guptas’ businesses – them and in doing so funded the purchase of OCH and
were investigated. is thus in severe violation of the PFMA [Public Finance
Management Act].’46
The fifth was whether Zuma and some members of
the cabinet improperly interfered in the relationships The tenth was whether anyone, or any organ of state,
between banks and the Guptas’ businesses, and in so had acted unlawfully, improperly or corruptly providing
doing, gave preferential treatment to these firms. The financing facilities to companies or people linked to the
report termed this step ‘unprecedented’ and said that it Gupta family. The report referred to the prepayment
needed to be seen in the context of a possible conflict of R659 558 079 from Eskom. It said, among other
of interest, since Zuma was a friend of the Guptas, and things, that this payment may not have been in line with
the father of their business partner. the PFMA, that Eskom’s board had failed to exercise
a proper duty of care, and that the manner in which
The sixth was whether Zuma made himself vulnerable
Tegeta had represented the prepayment to the public
to conflicts between his official role and his private
could amount to fraud.47
interests, as well as whether he used this position
to enrich himself or businesses owned by the The eleventh was whether anyone or any organ of state
Guptas or his son. The report briefly remarked that acted unlawfully, improperly or corruptly in relation to the
the allegations made by Jonas and Maseko were exchange of gifts with companies owned by the Guptas.
‘relevant’ here, as was ‘action taken and/or not taken The report simply stated that this would be dealt with ‘in
in relation thereto’.44 the next phase of the investigation’.48

The seventh was whether anyone had been adversely

affected by Zuma’s conduct. The report remarked that The public protector’s report was met
Jonas could suffer severe reputational damage unless with resistance
his claims were proven true – this having been denied
by the president. The report continues: ‘Consequently
Finally, the twelfth was whether anyone or any entity had
the people of South Africa, who Deputy Minister Jonas
been prejudiced by the conduct of an SOE. It argued
took into his confidence in revealing this, would lose
that Eskom had caused damage to Glencore, since
faith in open, democratic and accountable government if
its conduct seemed calculated to benefit Tegeta. For
President Zuma’s denials are proven to be false.’45
example, it refused to conclude a new agreement with
The eighth was whether any state official had acted Glencore to supply coal to the Hendrina power station.
unlawfully, improperly or corruptly in the appointment The report commented that ‘this was not in line with
and removal of ministers or members of boards of previous discussions held by Glencore with Eskom;
SOEs. The report was critical of the manner in which furthermore, it is unclear as to why approval was needed
the board of Eskom had been constituted, arguing from the Acting Chief Executive before the agreement
that it was contrary to the spirit of the King IV Code on was signed, as the necessary approvals appear to
Corporate Governance. Issues that arose were not dealt already have been obtained. It appears that the conduct
with adequately, and the minister of public enterprises of Eskom was solely for the purposes of forcing OCM
(as the government stakeholder) failed to take action to [Optimum Coal Mine]/OCH into business rescue and
deal with them. financial distress.’49

The ninth was whether anyone, or any organ of state, While the report caused a major stir, its impact was
had acted unlawfully, improperly or corruptly in relation arguably less a function of the evidence it presented,
to the award of state contracts to any Gupta-linked much of which was known or at least suspected,
companies. The report highlighted Zwane’s trip to than that it bore the imprimatur of the Office of

SOUTHERN AFRICA REPORT 25  |  SEPTEMBER 2019 9

 the Public Protector. The evidence had, in some mere facade right from the outset that was aimed at
sense, been validated, even if not legally so. Its providing a veil of legitimacy to what was evidently a
seminal recommendation was that a commission be scheme designed to defraud and steal monies from the
established, headed by a judge appointed ‘solely’ by department ... The entire project, including the land it
the chief justice.50 was located on, were instrumentalities of the evident
The report was met with resistance – Zuma theft, fraud and money laundering.’59
condemned it as ‘funny’ and ‘unfair’ and attempted The Directorate for Priority Crime Investigation – known
to have it set aside.51 He said that no one could force colloquially as the Hawks, a corruption-busting unit
him to appoint a commission, 52.. The appointment within the police – also raided the offices of the provincial
of Molefe (who featured prominently in the public premier.60 (Magashule had, incidentally, been elected
protector’s report) as an ANC MP in February 2017 secretary-general of the ANC.)
fuelled speculation that he was destined for a cabinet
post – possibly finance – which would further the
state capture project.53 On the other hand, voices in
While controversy swirled around the
the ANC spoke up for the need to establish the truth report, another Gupta-linked scandal
about the state capture phenomenon.54 Less than two was getting ready to explode
months later, Molefe left Parliament and returned to
Eskom as CEO.55
Shortly thereafter, a number of people associated with the
And so it carried on … project were arrested on a list of charges including theft
and fraud.61 A warrant of arrest was also issued against
While controversy swirled around the public protector’s
Ajay Gupta, although not in relation to Estina, but rather
report, another Gupta-linked scandal was getting ready
for other instances of corruption, including the alleged
to explode in the Free State. The case was actually a
attempt to bribe Jonas (Duduzane Zuma was charged
rather old one, about which the Treasury had already
with the same offence). Ajay was described in the media
expressed concern in 2013. It involved the operation
as a ‘fugitive from the law’.62 Shortly thereafter, it was
of an agricultural development project contracted to
announced that warrants (these apparently related to
Estina, a company with links to the Gupta family, but
Estina) had been issued for Atul and Rajesh Gupta.63
with no expertise in agriculture. It appeared that the
contract regulating the scheme had been drawn up by The Guptas had, however, evidently decamped to Dubai.
the legal adviser to controversial Free State Premier Ace It is unclear exactly when this occurred, but it is known
Magashule and favoured the interests of Estina.56 that they held assets and property there.

The funds paid – amounting to over R220 million – were Over to the Commission ….
for the most part promptly paid over to the accounts of
With the public protector having made some very
other Gupta firms, many of them offshore. Some of the
damaging findings (along with the other controversies),
money was used to fund a lavish wedding in Sun City in
with fallout from the scandals already evident, with public
2013.57 Very little found its way to the emerging farmers
opinion having turned strongly against the Guptas and
that the programme was meant to benefit. That the
what they were perceived to represent, and with Zuma
prominent audit firm KPMG had allowed the wedding to
on the back foot after his loss in the ANC presidential
be written off as a business expense demonstrated the
elections to Ramaphosa, in January 2018 the formation
extent of the fraud as well as the spread of the dishonesty
of a commission of enquiry to probe allegations of
associated with state capture.58
state capture was announced. This body – the Judicial
In January 2018, the Asset Forfeiture Unit (AFU) of the Commission of Inquiry into Allegations of State Capture,
National Prosecuting Authority (NPA) seized control Corruption and Fraud in the Public Sector including
of the farm. Knorx Molelle, head of operations at the Organs of State – headed by Deputy Chief Justice Ray
AFU, wrote: ‘I submit that the entire project was a Zondo, began its work in August of that year.64

10 STATE CAPTURE: AN ENTIRELY NEW TYPE OF CORRUPTION

Its request for an extension of 24 months to complete its work was an
indication of the scale of the task before it. The work of the commission
was also unfortunately side-tracked by news of a dodgy tender being
awarded for the security of the commission’s own staff and potential
witnesses – perhaps emblematic of the issues it would need to examine.
The Zondo Commission would serve as a valuable fact-finding mission
to uncover the depth of the rot in our institutions and in identifying the
individuals that were responsible.

In its initial months, the focus was on the malign influence wielded by the
Guptas, and Zuma’s conduct. For the most part, the testimony before the
commission can hardly be described as surprising, even if hearing details
articulated helped to bring home the full implications of what had been afoot.
For example, former director-general of the Treasury, Lungisa Fuzile, said that
confidential documents on the ‘strategic thinking of cabinet’ were passed on
to the Guptas’ business associates by Van Rooyen’s advisers within minutes
of having received them.65

One surprise – and notable casualty – was former finance minister Nene.
He told the commission that he had in fact visited the Gupta residence on
a number of occasions. He denied having done anything untoward, and
no suggestion was made that he had done so. He tendered his resignation
on the basis that his admission would detract from the important work that
needed to be done to re-establish trust in government.66 Given the intrusion
of the Guptas’ influence on his career, there was a sad irony here.

The report’s seminal recommendation was that

a commission be established, headed by a judge
appointed ‘solely’ by the chief justice

As the commission’s hearings continue to wear on, it has become

apparent that state capture was not limited to the Guptas. In early 2019,
the testimony of Angelo Agrizzi, former COO of facilities management
company Bosasa, shook the country with its account of bribery and
influence peddling among civil servants, NPA officials and politicians. This
included payments of R50 000 monthly to former minister of environmental
affairs Nomvula Mokonyane.67 Agrizzi’s testimony was made all the more
salacious by his use of racial invective in recordings in which he discussed
his misdeeds.68

For much of the public, arguably the centrepiece of the hearings was whether
Zuma’s role in state capture would be exposed. He was certainly identified as
having received illicit payments and having intervened improperly in various FOR MUCH OF THE PUBLIC, THE
matters to advance the state capture agenda. His legal representatives have CENTREPIECE OF THE HEARINGS WAS
accused the commission of bias, and appeared to be attempting to delay his WHETHER ZUMA’S ROLE IN STATE
appearance. He eventually committed to appearing before the commission in CAPTURE WOULD BE EXPOSED
mid-July.69

SOUTHERN AFRICA REPORT 25  |  SEPTEMBER 2019 11

 As for the Guptas, Ajay indicated that he was willing ‘We must ask some tough questions about the
to testify, but only via video-link from Dubai. This was corporate sector and society in general. This goes
unacceptable to the commission, not least because for accountability and transparency in both the
he was regarded by the Hawks as a fugitive.70 He did, public and private sector or the lack thereof. Is a
however, submit an affidavit in which he denied the CEO sufficiently accountable to the board and the
accusations.71 board to the shareholders? … We often talk about
state capture in SA, but there are also captured
The commission remains in operation. In March,
boards.’74
a book was published by journalist Pieter-Louis
Myburgh. Entitled Gangster State: Unravelling Ace Ramaphosa has declared an intention to root out
Magashule’s Web of Capture, it detailed a large, corruption and has said that he wishes to see
complicated (and sometimes violent) system of prosecutions and imprisonment arising from the Zondo
corruption and patronage operated largely in the Free Commission.75 However, his political enemies have been
State, with Magashule at its centre. And while the conspiring against him and given the slim majority with
Guptas have figured in some of Magashule’s alleged which he ascended to power, he needs to be careful of
misdeeds – as discussed above – state capture was the political implications of his actions. In some ways
evidently not something limited to them. he is ‘boxed in’ by his political rivals and will have to
show mettle to secure his position and rid the country of
Looking ahead some of the most egregious forms of corruption, as he
The media has done a sterling job over the past promised. People implicated in state capture continue to
occupy high-profile positions in his party and maintaining
decade in doggedly uncovering instances of state
its unity may prove an important priority for him. It will be
capture. The information regarding criminality and
like walking a proverbial tightrope.
malfeasance are well known and in the public domain.
Yet, the question that ordinary South Africans are now
asking is, ‘where to now?’ Ramaphosa wishes to see prosecutions
At this writing, the Guptas remain abroad. They and imprisonment arising from the
have yet to be held accountable, although a recent Zondo Commission
agreement between South Africa and the United Arab
Emirates on mutual legal cooperation may in principle Ideally, the inevitable next step would also be for
pave the way for some action, possibly for extradition. prosecutions to take place where there has been
However, the warrants against those implicated in the criminality. The NPA came to be known more for its
Estina case have been withdrawn.72 reluctance to prosecute politically connected people
As always in South Africa, things are complicated. than as a bulwark for the rule of law. The departure of
the widely-criticised Shaun Abrahams from the
A whistleblower in the Estina matter was found
leadership of the NPA and his later replacement, the
murdered, perhaps an indication of the deadly stakes in
well-regarded Shamila Batohi, at least opened the
these matters.73
way for a more aggressive move on those implicated
Charges against Ajay Gupta and Duduzane Zuma have in state capture. In April 2019, Batohi appointed
been withdrawn. senior prosecutors to work on these matters.76 The
NPA inherited by Batohi has its work cut out for it. It
Jacob Zuma, although out of office, has yet to account
will need appropriate resources and expertise to deal
for his conduct. The country’s SOEs are in a parlous
with the several instances of corruption in both the
state, and it is not apparent how they might be turned
public and private sectors. In order to do this
around. Politicians linked to state capture remain in office.
successfully the institution itself will need to be
Gordhan has rightly noted that state capture extends repurposed and drawn out of its dysfunction. This will
beyond the state into a compromised private sector: take time despite the impatience of a public which

12 STATE CAPTURE: AN ENTIRELY NEW TYPE OF CORRUPTION

wants to see prosecutions and imprisonment for maladministration and blatant theft that characterised
those who have captured the state and been involved Zuma’s presidency. What happens thereafter will be a
in acts of corruption. matter for the prosecuting authority. One can only hope
How we respond to the challenges posed by state that the NPA’s actions will gather momentum so that
capture is crucial to restoring integrity to our public actual prosecutions regarding state capture can
institutions. The public protector’s report and the public proceed without fear or favour – reaching into the heart
information we have, as garnered by a free and active of politics and business, if necessary – as are required
media, will stand as evidence of the abuse of power, by the Constitution and the law.

SOUTHERN AFRICA REPORT 25  |  SEPTEMBER 2019 13

 Notes 22 2016 top story: Van Rooyen’s two Gupta ‘advisors’ who almost hijacked
SA Treasury, Biznews, 22 December 2016, www.biznews.com/
1 Hellman J and D Kaufmann, Confronting the challenges of state capture leadership/2016/12/22/named-van-rooyens-two-gupta-advisors-who-
in transition economies, Finance and Development, Vol 38, No 3, almost-hijacked-sa-treasury/.
September 2001, www.imf.org/external/pubs/ft/fandd/2001/09/hellman.htm 23 Facebook comments describe Guptas’ alleged attempts to buy ministers,
2 ‘The beginners’ guide to the Guptas’, Mail and Guardian, 7 May 2013, Mail and Guardian, 15 March 2016, https://mg.co.za/article/2016-03-15-
https://mg.co.za/article/2013-05-07-the-beginners-guide-to-the-guptas facebook-comments-describe-guptas-alleged-attempts-to-buy-ministers.

3 www.sahara.co.za/about.php. 24 Government of South Africa, Ministry of Finance, Statement by deputy

minister of finance, Mr Mcebisi Jonas (MP), 16 March 2016, https://
4 http://oakbayinvestments.co.za/about.html.
cdn.mg.co.za/content/documents/2016/03/16/statementbydeputy
5 Comne S, The rise (and fall?) of Duduzane Zuma, City Press, 10 April 2016, ministerjonas.pdf.
http://city-press.news24.com/News/the-rise-and-fall-of-duduzane-zuma-
25 Public Protector. 14 October 2016. State of capture: Report on an
20160409-2.
investigation into alleged improper and unethical conduct by the
6 Roussouw M, Unease over Zuma’s Gupta ties, Mail and Guardian, President and other state functionaries relating to alleged improper
23 July 2010, https://mg.co.za/article/2010-07-23-unease-over- relationships and involvement of the Gupta family in the removal and
zumas-gupta-ties. appointment of Ministers and Directors of State-Owned Enterprises
7 Letsoalo M, Cosatu raises red flag on Guptas, Mail and Guardian, resulting in improper and possibly corrupt award of state contracts and
25 February 2011, https://mg.co.za/article/2011-02-25-cosatu-raises-red- benefits to the Gupta family’s businesses. Report No 6 of 2016/17,
flag-on-guptas. pp. 92-95.
8 Govt tells reporters to stop fishing for Gupta stories, Mail and Guardian, 26 I never met with Mcebisi Jonas, swears Ajay Gupta, EWN, 10 February
5 March 2011, https://mg.co.za/article/2011-03-05-govt-tells-reporters- 2017, http://ewn.co.za/2017/02/10/ajuy-gupta-denies-ever-meeting-
to-stop-fishing-for-gupta-stories. jonas-under-oath.
9 Mantashe defends Gupta family, Mail and Guardian, 8 March 2011, 27 Cabinet to probe banks’ decisions on Guptas’ accounts, ENCA, 21 April 2016,
https://mg.co.za/article/2011-03-08-mantashe-defends-gupta-family. www.enca.com/south-africa/cabinet-probe-banks-about-gupta-accounts.
10 Guptas use Waterkloof airforce base as private landing strip, ENCA, 28 Cabinet wants judicial inquiry into banks’ actions against Guptas, ENCA,
30 April 2013, www.enca.com/south-africa/guptas-use-waterkloof- 2 September 2016, www.enca.com/south-africa/cabinet-to-ask-zuma-to-
airforce-base-private-landing-strip. set-up-judicial-inquiry-on-gupta-linked-companies.
11 Gupta past haunts new mines minister, amaBhungane, 24 September 2015, 29 Hunter Q, Oakbay and the banks – how it unfolded, Sunday Times,
http://amabhungane.co.za/article/2015-09-24-gupta-past-haunts-new- 17 October 2016, www.timeslive.co.za/sundaytimes/stnews/2016/10/17/
mines-minister. Oakbay-and-the-banks-how-it-unfolded.
12 Manda S, Outcry over SA’s new ambassador, IOL, 18 August 2014, 30 Myburgh P-L, Here it is: the full list of 72 ‘dodgy’ Gupta transactions,
www.iol.co.za/news/politics/outcry-over-sas-new-ambassador-1736961. News24, 15 October 2016, www.news24.com/SouthAfrica/News/here-it-
13 Government of the Republic of South Africa, Landing of a chartered is-the-full-list-of-72-dodgy-gupta-transactions-20161015.
commercial aircraft at Airforce base Waterkloof. JCPS Cluster Report, 31 Nhlabathi H, Punished for snubbing the Guptas, City Press, 9 October 2016
17 May 2013, p. 26. www.news24.com/SouthAfrica/News/punished-for-snubbing-the-guptas-
14 Zille sent Atul Gupta thank you note for donation, Mail and Guardian, 20161008.
30 January 2013, https://mg.co.za/article/2013-01-30-zille-sent-atul- 32 R25m for breakfast, City Press, 20 January 2013. www.news24.com/
gupta-thank-you-note-for-donation. Archives/City-Press/R25m-for-breakfast-20150429.
15 Zuma removes Nene as finance minister, Fin24, 9 December 2015, http://www. 33 Gupta-owned newspaper in line of fire of new Nielsen report,
fin24.com/Economy/zuma-removes-nene-as-finance-minister-20151209. amaBhungane, 16 February 2017, http://amabhungane.co.za/article/2017-
16 Singh K, Zuma breaks silence on why he axed Nene, News24, 02-16-gupta-owned-newspaper-in-line-of-fire-of-new-nielsen-report.
11 December 2016, www.news24.com/SouthAfrica/News/zuma-breaks- 34 Comrie S, How Eskom bailed out the Guptas, City Press, 12 June 2016,
silence-on-why-he-axed-nene-20151211. http://city-press.news24.com/News/how-eskom-bailed-out-the-guptas-
17 Zuma’s ‘Rubicon’: Full speech exposes SA’s President is way out of his depth, 20160612.
Biznews, 11 December 2015. www.biznews.com/leadership/2015/12/11/full- 35 Public Protector. 14 October 2016. State of capture: Report on an
speech-zuma-addresses-business-community-after-sacking-nene/. investigation into alleged improper and unethical conduct by the President
18 One year later, Zuma comments on Nene axing, EWN, 22 December 2016, and other state functionaries relating to alleged improper relationships and
http://ewn.co.za/2016/12/22/zuma-blames-sa-for-not-defending-axing-nene. involvement of the Gupta family in the removal and appointment of Ministers
and Directors of State-Owned Enterprises resulting in improper and
19 Slabbert A, Treasury rejects Myeni’s Airbus appeal, Moneyweb, 4 December
possibly corrupt award of state contracts and benefits to the Gupta family’s
2015, www.moneyweb.co.za/uncategorized/treasury-rejects-myenis-new-
businesses. Report No 6 of 2016/17, pp. 21, 131.
airbus-deal/; See also SAA: Nene joins Myeni’s pile of victims, Mail and
Guardian, 11 December 2015, https://mg.co.za/article/2015-12-11-00- 36 Ibid, p. 20.
saa-nene-joins-myenis-pile-of-victims. 37 Winkler H, How the state capture controversy has influenced South Africa’s
20 Le Cordeur M, Nene axed: cabinet denies knowledge of secret nuclear nuclear build, The Conversation, 26 May 2016, https://theconversation.
dealings, Mail and Guardian, 14 December 2015, https://mg.co.za/ com/how-the-state-capture-controversy-has-influenced-south-africas-
article/2015-12-14-nene-axed-cabinet-denies-knowledge-of-secret- nuclear-build-58879.
nuclear-dealings; Brummer S, Nuclear price tag set Nene against Jacob 38 Wild F and R Bonorchis, Banks, auditors drop Gupta-linked firms, IOL,
Zuma, amaBhungane, 18 December 2015, http://amabhungane.co.za/ 7 April 2016, www.iol.co.za/business-report/companies/bankers-auditors-
article/2015-12-17-nuclear-price-tag-set-nene-against-jacob-zuma. drop-gupta-linked-firms-2006167.
21 Manuel T, SA’s trust has been broken, City Press, 20 December 2015, 39 Le Cordeur, M, Guptas and Dudzane Zuma resign from Oakbay, Fin24,
www.fin24.com/BizNews/must-read-trevor-manuel-blasts-zumas-finmin- 8 April 2016, www.fin24.com/Economy/breaking-guptas-resign-from-
blunder-asks-tough-questions-20151222. oakbay-20160408.

14 STATE CAPTURE: AN ENTIRELY NEW TYPE OF CORRUPTION

40 Gupta family to sell off businesses in South Africa, BusinessTech, 27 August 61 Chabalala J, Seven Vrede dairy farm project accused released on bail,
2016. https://businesstech.co.za/news/business/134697/gupta-family-to- News24, 15 February 2019 www.news24.com/SouthAfrica/News/seven-
sell-off-businesses-in-south-africa/. vrede-dairy-farm-project-accused-released-on-bail-20180215.
41 Reddy M, #GuptaLeaks: UK PR firm tried to push ‘white monopoly capital’ 62 Nicolson G, Fugitive Ajay Gupta sought for other corruption, not Estina,
agenda, Mail and Guardian, 1 June 2017. https://mg.co.za/article/2017- News24, 23 February 2018, www.dailymaverick.co.za/article/2018-02-23-
06-01-guptaleaks-uk-firm-pushed-white-monopoly-capital-agenda-to- fugitive-ajay-gupta-sought-for-other-corruption-not-estina/.
save-zumas-reputation. 63 Hunter Q, Sources confirm arrest warrants for Atul and Rajesh Gupta,
42 Ibid. Sowetan Sunday World, 5 March 2018, www.sowetanlive.co.za/news/
43 Public Protector. 14 October 2016. State of capture: Report on an south-africa/2018-03-05-sources-confirm-arrest-warrants-for-atul-and-
investigation into alleged improper and unethical conduct by the President rajesh-gupta/.
and other state functionaries relating to alleged improper relationships and 64 Du Toit P, The State Capture Enquiry: what you need to know, News24,
involvement of the Gupta family in the removal and appointment of Ministers 20 August 2018, www.news24.com/Analysis/the-state-capture-inquiry-
and Directors of State-Owned Enterprises resulting in improper and what-you-need-to-know-20180819.
possibly corrupt award of state contracts and benefits to the Gupta family’s
65 THIS FOOTNOTE IS NOT SUPERSCRIPTED AND I CANNOT BUDGE IT.
businesses. Report No 6 of 2016/17, p. 15.
Umraw A, Confidential cabinet paper reached Gupta man ‘three minutes
44 Ibid, p. 18. after hitting Des van Rooyen’s desk’, TimesLive, 22 November 2018,
45 Ibid, p. 19. www.timeslive.co.za/politics/2018-11-22-confidential-cabinet-paper-
reached-gupta-man-three-minutes-after-hitting-des-van-rooyens-desk/.
46 Ibid, p. 315.
66 Pather R, K Rupiah and F Rabkin, Nene out: Tito Mboweni appointed new
47 Ibid, p. 21.
finance minister, Mail and Guardian Online, 9 October 2018. https://mg.co.
48 Ibid, p. 23. za/article/2018-10-09-ramaphosa-nene-resignation.
49 Ibid, pp. 23-24. 67 Bhengu C, Here is what happened the last time Angelo Agrizzi took the
50 Ibid, pp. 24-25. stand at state capture inquiry, TimesLive, 28 March 2019, www.timeslive.
51 Thakali T, Zuma wants state capture report set aside, IOL, 4 December co.za/politics/2019-03-28-here-is-what-happened-the-last-time-angelo-
2016, www.iol.co.za/news/politics/zuma-wants-state-capture-report-set- agrizzi-took-the-stand-at-state-capture-inquiry/.
aside-7093832. 68 ‘Listen: that K****r needs a good hiding’ – Angelo, Channel 24, undated.
52 De Wet P, Zuma: Nobody can force me to launch a state capture https://video.channel24.co.za/show/83548.
commission, Mail and Guardian, 23 November 2016. https://mg.co.za/ 69 Nicolson G, Save the date: Zuma confirms court appearance,
article/2016-11-23-zuma-nobody-can-force-me-to-launch-a-state- Daily Maverick, 25 June 2019, www.dailymaverick.co.za/article/2019-06-
capture-commission. 25-save-the-date-zuma-confirms-july-appearance/.
53 Pillay V, If rumours Molefe will be the next finance minister are true, what’s in 70 Maughan K, Ajay Gupta only willing to testify in state capture inquiry from
it for Zuma?, The Huffington Post, 17 February 2017, www.huffingtonpost. Dubai, TimesLive, 2 September 2018, www.timeslive.co.za/sunday-times/
co.za/2017/02/17/if-plans-to-make-molefe-finance-minister-are-true- news/2018-09-01-ajay-gupta-only-willing-to-testify-in-state-capture-
whats-in-it/. inquiry-from-dubai/.
54 Le Cordeur M, Brown wants state capture inquiry to go ahead, Fin24, 71 Maughan K, Ajay Gupta slams Mcebisi Jonas in state capture affidavit,
8 March 2017, . www.fin24.com/Economy/Eskom/brown-wants-state- TimesLive, 20 September 2018, www.timeslive.co.za/news/south-
capture-inquiry-to-go-ahead-20170308. africa/2018-09-20-ajay-gupta-slams-mcebisi-jonas-in-state-capture-
55 Only Eskom welcomes Brian Molefe’s comeback, News24, 12 May 2017. affidavit/.
www.fin24.com/Economy/Eskom/live-molefes-return-is-a-classic-zuma- 72 Bateman B, Report: NPA provisionally withdraws charges in Estina farm
gupta-move-save-sa-20170512 saga, EWN, 28 November 2019, https://ewn.co.za/2018/11/28/report-
56 Sole S, T Timse and S Brümmer, Free State dairy project damned in npa-provisionally-withdraw-charges-in-estina-farm-saga.
treasury investigation, Mail and Guardian Online, 7 February 2014. https:// 73 Grobler R, Vrede dairy farm project whistleblower found murdered, News24,
mg.co.za/article/2014-02-06-free-state-dairy-project-damned-in-treasury- 23 October 2018, www.news24.com/SouthAfrica/News/vrede-dairy-farm-
investigation. project-whistleblower-found-murdered-20181023.
57 Mashego A, Inside the Gupta heist, City Press, 21 January 2018. 74 Smith C, Gordhan: SA has work cut out to get back Gupta money,
www.news24.com/SouthAfrica/News/inside-the-gupta-heist-20180121-2. quash corruption, News24, 28 June 2019, www.fin24.com/Economy/
58 Quintal G, Ex-KPMG partner admits only to ‘neglect’ in Gupta audit, gordhan-sa-has-work-cut-out-to-get-back-gupta-money-quash-
BusinessLive, 7 August 2013, www.businesslive.co.za/bd/companies/ corruption-20190628-2.
financial-services/2018-08-07-ex-kpmg-partner-admits-only-to-neglect-in- 75 Umraw A, “There must be jail time,” says Cyril Ramaphosa of Zondo
gupta-audit/. commission, Sowetan Live, 5 April 2019, www.sowetanlive.co.za/news/
59 NPA freezes R220m, land linked to Gupta farm, News24, 20 January 2018, south-africa/2019-04-05-there-must-be-jail-time-says-cyril-ramaphosa-of-
www.news24.com/SouthAfrica/News/breaking-npa-freezes-r220m-land- zondo-commission/.
linked-to-gupta-farm-20180120. 76 Dlulane B, Shamila Batohi names top prosecutors to fast-track state
60 Bateman B, Hawks raid FS premier’s office over Gupta-linked Vrede dairy capture cases, EWN, 7 April 2019. https://ewn.co.za/2019/04/07/
farm, EWN, 26 January 2018. https://ewn.co.za/2018/01/26/hawks-raid- shamila-batohi-names-top-prosecutors-to-fast-track-state-capture-
fs-premier-s-office-over-gupta-linked-vrede-dairy. cases.
 About the author
Judith February, research consultant for the ISS, is a governance specialist, columnist and lawyer.
She was director of the HSRC’s governance unit from 2012 to 2014 and, before that, headed Idasa’s
Political Information and Monitoring Service for nine years. She is a regular media analyst of South
African politics and author of Turning and Turning: Exploring the complexities of SA’s democracy.

About ISS Southern Africa Reports

Southern Africa Reports provide the results of in-depth research on the latest human security
challenges in the region. Some reports analyse broad conflict trends and threats to peace and
security in specific Southern African countries. Others focus on challenges in the region such as
electoral reform, corruption or intra-state conflict.

About the ISS

The Institute for Security Studies (ISS) partners to build knowledge and skills that secure Africa’s
future. The ISS is an African non-profit organisation with offices in South Africa, Kenya, Ethiopia and
Senegal. Using its networks and influence, the ISS provides timely and credible policy research,
practical training and technical assistance to governments and civil society.

Acknowledgements

This report is funded by the Embassy of Finland in Pretoria. The ISS is grateful for support from the
members of the ISS Partnership Forum: the Hanns Seidel Foundation, the European Union and
the governments of Canada, Denmark, Finland, Ireland, the Netherlands, Norway, Sweden and
the USA.

© 2019, Institute for Security Studies

Copyright in the volume as a whole is vested in the Institute for Security Studies and the authors, and no part
ISSN 2617-8206 Print
may be reproduced in whole or in part without the express permission, in writing, of both the author and the ISSN 2617-8214 Digital
publishers.
The opinions expressed do not necessarily reflect those of the ISS, its trustees, members of the Advisory
Council or donors. Authors contribute to ISS publications in their personal capacity.
Photo credit: Ashraf Hendricks/GroundUp
9 772617 821002