Hawks reveal Arms deal bombshell

The Hawks have taken the first step towards re-opening the multibillion-rand arms deal probe - which could expose those who took bribes to prosecution.

The head of the Directorate for Priority Crime Investigations, Anwar Dramat, wrote to the Standing Committee on Public Accounts (Scopa) on Wednesday informing it of the Hawks' intention to speak to European investigators to establish whether or not criminal charges should be brought against any South Africans.

The Hawks controversially dropped the probe into the arms deal in September last year, arguing that prospects of successful prosecutions were slim.

In a letter to Scopa chairman Themba Godi, Dramat says the Hawks are following up on last month's admission by Swedish defence group Saab that its former British partner, BAE Systems, paid R24-million in bribes to secure a South African contract for 26 JAS Gripen fighter jets. All told, BAE systems spent R1-billion on what it called "commissions" in the arms deal.

Dramat writes : "I have already instructed two officials ... to approach the relevant authorities in both Sweden (National Anti-Corruption Unit) and the UK (Serious Fraud Office). Subject to approval by these authorities, (we) will assess the available information with a view to determine whether there is information which points to crime/s in South Africa ... whether it could be converted into relevant evidence by means of formal mutual legal assistance processes. It is also important to determine from the mentioned authorities what their investigations have revealed and whether the information obtained by them can be shared with the (Hawks)."

He could not predict how long the investigation might take.

Godi confirmed receiving Dramat's letter, saying: "It's a brave and correct decision ... unless justice is being done and is seen as being done on this matter, it's going to continue to cast a cold shadow over the political landscape of the country."

DA spokesman on defence David Maynier welcomed the development, saying: "The Hawks have effectively re-opened the investigation into the arms deal."

Despite several attempts, the Presidency yesterday failed to comment on the development.

Investigations by the UK Serious Fraud Office into BAE's dealings revealed that the arms manufacturer's R1-billion in "commissions" in the South African deal dated back to 1992.

They claimed that among the beneficiaries was FTNSA Consulting, a company linked to former First National Bank chairman Basil Hersov.

Businessman Fana Hlongwane, a one-time adviser of former minister of defence Joe Modise, allegedly received handsome "commissions" amounting to millions from BAE. Hlongwane also worked as a consultant for the arms manufacturer.

News of the Hawks' move came as a court battle continued in the High Court in Pretoria over the financial dealings of prominent South Africans - including some connected to the arms deal - via Ansbacher Bank.

The Sunday Times can reveal that senior ANC national executive committee member and former spy boss Billy Masetlha met former FirstRand CEO Paul Harris in 2009 to try to broker an out-of-court settlement in a 10-year-old case involving FirstRand and the International Tax Law Institute (ITLI).

ITLI founder, international tax guru Barry Spitz, wants FirstRand to open Ansbacher's books on about 500 of its prestigious clients, including Hersov. If this happens, South Africa could find out how much and whether senior ANC leaders received payments related to the arms deal.

The meeting, facilitated by former Denel CEO John Lamola, was held at the Saxon Hotel in Johannesburg in May 2009, a few weeks after President Jacob Zuma was sworn into office.

Masetlha confirmed that he had held meetings with both parties in the dispute, but claimed he was acting as a "concerned citizen", not on the ANC's behalf. He said the case could have economic implications for the country.

"Both sides were interested in my intervention to say ... what should they do in order to avoid a fallout which might ... in our interest as a country ... create a hell of a lot of problems for all of us.

"I am not scared of the arms deal. That dirty linen is neither here nor there. I must say now, as a member of the ANC NEC, that I am not scared of anything on that thing because we are going to shock you in terms of how we are going to deal with it,"

said Masetlha, without elaborating. However, he did note that the party wanted to avoid having the matter reach court.

Spitz contradicted Masetlha, saying the ITLI had drafted the proposed settlement "with the approval of the ANC", and the ruling party had requested the settlement be kept confidential.

"This was requested by the ANC, which obviously has its reasons for wanting it," he said.

Spitz added that the information sought from FirstRand was of interest to a "vast number of other persons and agencies ... political, financial and corporate, both in South Africa and abroad".

The Sunday Times has seen the proposed settlement document, which Masetlha signed in his capacity as "political head of the ANC Policy Institute".

In it, Masetlha undertook to "personally ensure the destruction of all the confidential information held by the ITLI and/or its privy parties ... and will further, to the extent possible, ensure that no confidential information is retained in any location open to the public, but not under their control".

But Harris, in a letter to Lamola, rejected this proposal, saying: "This is a very complex case and any involvement of outside parties other than our lawyers is not the proper process."

FirstRand spokesman Sam Moss confirmed the meeting between Harris and Masetlha.

- Tmeslive

Alootin Continuously

Affairs Minister Sicelo Shiceka spent hundreds of thousands of rands of taxpayers money on luxury hotels, first class airtickets and on visiting a jailed girlfriend in Switzerland since taking up his Cabinet post in 2008, the Sunday Times newspaper reported.

"Minister Shiceka has abused taxpayers money to lead a lifestyle befitting a multimillionaire," reported the newspaper, which claimed to be in possession of "official documents" that showed Shiceka had started his spending spree immediately after being appointed to the Cabinet in September 2008.

The accusations include Shiceka, who has been on sick leave since the beginning of March, and his personal assistant flying first class to visit his girlfriend in prison in Switzerland.

The minister also allegedly spent R32 000 on hiring a chauffeur-driven limo to take him to the prison.

The newspaper said Shiceka and his staff spent R640 000 in one year to stay at Cape Town's five star hotel, the One&Only, of which R280 000 was spent "on him alone".

The minister spent another R55 793 for a one night stay at the luxurious hotel during President Jacob Zuma's first State of the Nation speech. He reportedly justified taking a sangoma with him by saying the man was his "father figure".

Invoices 'fabricated'
More than R160 000 was spent in eight months on flying 10 of Shiceka's family members -- including his estranged wife and current girlfriend -- around the country at taxpayers' expense.

The Sunday Times said Shiceka tried to have his department pay for a four night R357 120 hotel bill for himself, his mother and his bodyguard at the Lesotho Sun in Maseru.

Shiceka told the Sunday Times that he had never been in a limousine or stayed at the Lesotho Sun.

He claimed that all documentary proof presented to him, including invoices, emails and faxes had been doctored or fabricated.

"I have never been in a limousine. I have never stayed in the Lesotho Sun," Shiceka said.

He did however, admit to spending more than R55 000 for one night at the One&Only.

"What is wrong with that," he asked.

"Every other hotel was full."

He also justified putting up his "father figure" at the One&Only.

"The ministerial handbook allows it," he said.

Questions - Sisulu's VIP jet decision

The decision by defence minister Lindiwe Sisulu to lease two new aircraft for transporting VIPs, at a cost of R800 million, was cause for concern, the DA said.

"Why are we spending R800m on aircraft for VIPs when millions of people do not have housing, health and basic services," party spokesman David Maynier said.

"The ministerial handbook is clear: the use of defence force aircraft for these purposes should be the exception, not the rule," he said.

The tender was apparently awarded to AdoAir, a company owned by Nigerian businessman Adegboyega Olulade.

The tender document reportedly specified that the aircraft should be able to transport at least 17 people, have sleeping quarters for two passengers as well as onboard communication systems and two conference facilities.

"The use of the SA Air Force for the purpose of ferrying around VIPs needs close scrutiny," Maynier said.

The party would call on the chairman of the joint standing committee on defence, Jerome Maake, to schedule hearings on the matter.

- Timeslive

Zuma wives roll out in style

He has a presidential jet and vehicle convoys on standby, but the president wants seven more luxury cars permanently available – for his wives.

The Presidential Protection and Security Services are looking for a vehicle hire business that can provide a luxury vehicle available “at all times” in each of seven provinces, including in President Jacob Zuma’s home province of KwaZulu-Natal.

According to the tender document for the proposed contract, the vehicle must be a “luxury Class A1” sedan or 4x4. Examples of these were listed as a Mercedes-Benz S600; BMW 7 series; Audi A8 or A6; Mercedes-Benz ML; BMW X5 series; Audi Q7; Toyota Prado; Toyota Land Cruiser; or Nissan Pathfinder.

- IOL

Presidency queries costs after R20m spent on charter flights

President Jacob Zuma's office wants to clip the wings of his globe-trotting predecessor Thabo Mbeki, complaining that his travels to war-torn Sudan are expensive and "unsustainable".

Mbeki's travels cost taxpayers R20.5-million in the 18 months between April 2009 and October last year. This includes 11 chartered flights . The figure excludes Mbeki's trips so far this year.

Mbeki was appointed by the African Union in 2009 to head a High Level Implementation Panel which oversaw Sudan's general elections last year and the recent referendum to decide the future of southern Sudan.

Mbeki received international praise for his role in ensuring a peaceful referendum last month, but Zuma failed to acknowledge this role during his State of the Nation address last week. He only did so - following public criticism of the snub - in his reply to the parliamentary debate this week . The snub was interpreted as a sign of the continuing tensions between the two leaders.

It has now emerged that there is unease in the Presidency about Mbeki's AU missions in countries such as Sudan and the Ivory Coast.

In an internal Presidency memo, which has been seen by the Sunday Times, director-general Dr Cassius Lubisi complains about the costs of transporting Mbeki and suggests the AU should fund such missions.

"I will seek clarity on the responsibility of the AU in the funding of missions involving South African leaders. The current arrangement is not sustainable and will require some changes," Lubisi writes in a memo dated December 21 2010.

A Presidency official, who spoke on condition of anonymity, told the Sunday Times there were concerns about the escalating costs of Mbeki's trips which, the official said, rivalled those of Zuma's travels.

Indications are that the government will limit Mbeki's travel, with the Department of International Relations saying that the former president's mission in Sudan had been completed.

This was disputed by Mbeki sympathisers, who argued that there were still matters for him to settle, and pointed to a 2009 communiqué by the AU Peace and Security Council which wanted his mandate extended beyond the referendum.

Late last year, the AU assigned Mbeki to Ivory Coast following the political crisis caused by President Laurent Gbagbo's refusal to step down after he was said to have lost a disputed presidential election.

But Mbeki has been left out of the recently appointed AU panel to resolve the standoff. Zuma is a member of the panel, which is meeting in Mauritania and will head for Ivory Coast this week.

As a former head of state, Mbeki is flown by the SA Air Force, and other transport and accommodation costs are funded from the Presidency budget. Mbeki's office has to request permission from the Presidency before he undertakes trips.

Ministry of Defence officials told the Sunday Times that Mbeki regularly used chartered flights for his trips to Sudan because of the size of his entourage, which could included as many as 15 people - sometimes beyond the capabilities of the air force's airplanes, said spokesman Ndivhuwo Mabaya.

Although the Department of Defence has consistently refused to divulge Zuma's travel costs, it recently gave MP David Mayner a breakdown of the cost of Mbeki's trips.

In response to a parliamentary question submitted by the DA representative, the department revealed that Mbeki's flights cost R3.6-million in 2009 and close to R17-million last year.

Presidency spokesman Zizi Kodwa referred questions to the departments of International Relations and of Defence. He would not comment on director-general Lubisi's views, saying he was not aware of them.

International Relations spokesman Clayson Monyela said the bulk of Mbeki's work in Sudan had been completed as it related to the referendum.

"There may be a few outstanding matters like the ... issue of the oil and citizenship. At the time when the North and the South deliberate on these matters he may be called in," said Monyela.

The Minister of International Relations, Maite Nkoana-Mashabane, was in charge of the post-conflict resolution committee, he said.

Mbeki's spokesman, Mukoni Ratshitanga, would not be drawn on the matter, saying that he was not aware of the issue.

- Timeslive

Govt denies cover-up of Zuma's flight schedule

PARLIAMENT - Government on Tuesday side-stepped opposition objections to President Jacob Zuma’s flight details being kept secret, saying classified information was overseen by Parliament’s Joint Standing Committee on Defence.

Defence ministry spokesman Ndivhuwo Mabaya said Democratic Alliance MP David Maynier had preferred public grandstanding to approaching the relevant body to obtain the information for oversight purposes.

“It is in this Committee that any sensitive and classified information from the South African National Defence Force must be tabled.

“However the member of Parliament ignored this rule because his main interest is not receiving the information for oversight purposes, but for media grandstanding.”

Maynier on Monday objected to Defence Minister Lindiwe Sisulu’s decision to classify details of Zuma’s flights.

In written reply to a parliamentary question on Monday, Sisulu said Zuma undertook 27 international and 133 domestic flights from May 9 last year to date.

Maynier had asked Sisulu for details of each flight, including the dates, departure and arrival points, and the costs involved.

Sisulu declined to answer, saying the “information required is classified and may not be made public”.

She also advised him to put this request to the Joint Standing Committee on Defence and Military Veterans, instead.

In a statement later, Maynier said this information had been made public in the past.

Sisulu’s reply raised questions about why she was “now covering up details about flights” undertaken by Zuma.

“The fact is that the minister’s refusal to provide full information on flights undertaken by President Jacob Zuma is part of a trend of defence department resistance to being properly accountable to Parliament.

“The real question is what is the minister trying to cover up. Is she trying to cover up details of the routing of the aircraft, the names of the passengers or the exorbitant costs of operating the aircraft?” Maynier asked.

The question comes amid intense debate about the Protection of Information Bill, which critics say will give the state near unchecked power to classify information.

-Sapa

Cele: I can afford to carry R20000 & not report it's loss

"How much do I earn? I can afford to have that amount of money with me with the salary I earn."

This was national police commissioner General Bheki Cele's response when asked why he was carrying R20,000 in a bag which was stolen off an SAA business-class flight in May.

Responding to questions posed by DA MP Dianne Kohler Barnard this week, Police Minister Nathi Mthethwa confirmed in a written reply to Parliament that the stolen bag containing R20,000 belonged to Cele.

This comes after it was alleged that Cele had not reported the incident to the police.

On Wednesday, Cele said he had reported the incident to police at OR Tambo International Airport but had not had time to open a case docket. The matter was, therefore, not investigated.

Mthethwa had said an investigation had taken place, but he did not provide details.

Cele was returning from KwaZulu-Natal after having attended to official business when the money was stolen.

Mthethwa said the money was Cele's private money and was not intended for public use.

Asked by Kohler Barnard whether it was standard for the commissioner to carry such a large amount of cash on his person, Mthethwa said there were no further details.

Kohler Barnard has submitted follow-up questions to the ministry to flesh out the details of the case. She was not satisfied with the response as there were too many unanswered questions.

Kohler Barnard added: "I find it most peculiar and odd that we have a police commissioner who would choose to carry that amount of cash in a bag."

In June, a weekly newspaper reported that Cele's residence in Durban had been burgled. It was alleged that R1 million in cash had been stolen.

But the commissioner said the report was fabricated. "My house was never broken into, I don't know where that story came from," he said.

Cele said he earns more than R1m a year. "Do the calculations yourself. I can afford to draw that amount; not once, not twice, but as many times as I like," he said.- The Star