PART IV:

GLOBULAR TABLE OF CONTENTS

The Attempted Capture of the National Treasury ................................................. 1

EOH HOLDINGS (PTY) LTD AND THE CITY OF JOHANNESBURG ................. 175
ALEXKOR ............................................................................................................. 210
THE FREE STATE ASBESTOS PROJECT DEBACLE ....................................... 292
THE FREE STATE R1 BILLION HOUSING PROJECT DEBACLE ..................... 456
THE CAPTURE OF ESKOM ................................................................................. 548
 PART IV: VOL 1

TABLE OF CONTENTS

The Attempted Capture of the National Treasury ................................................. 1

EOH HOLDINGS (PTY) LTD AND THE CITY OF JOHANNESBURG ................. 175
ALEXKOR ............................................................................................................. 210
 Judicial Commission
of
Inquiry into Allegations

of

State Capture, Corruption and Fraud in the

Public Sector Including Organs of State

Report: Part IV
Vol. 1: The Attempted Capture of the
National Treasury

Chairperson: Justice R.M.M Zondo

Chief Justice of the Republic of South
Africa
 i

The Attempted Capture of the National Treasury

table of contents
INTRODUCTION ........................................................................................................ 1
MR FUZILE’S EVIDENCE ......................................................................................... 5

The Role of the National Treasury ................................................................................. 7

The Role of the Director-General of the National Treasury .......................................... 8

Attempts to move the Budget to the Presidency ........................................................ 12

Events that occurred during my tenure and the removal of Ministers ...................... 15

The Technical Task Team on Nuclear Procurement and the meeting Of 8 December
2015 ................................................................................................................................ 21

After the removal of Minister Nene .............................................................................. 27

Conclusion .................................................................................................................... 28

The Denel-VR Laser Deal .............................................................................................. 44

My resignation as DG.................................................................................................... 46

Conclusion .................................................................................................................... 47

MR JONAS’ MEETING WITH MR TONY GUPTA AND OTHERS AT THE GUPTA

RESIDENCE ON 23 OCTOBER 2015 ..................................................................... 47
MINISTER NHLANHLA NENE’S RESISTANCE TO WRONGDOING AND HIS
ULTIMATE DISMISSAL BY PRESIDENT ZUMA .................................................... 80

The Nuclear Deal ........................................................................................................... 81

SAA ................................................................................................................................ 87

The Khartoum route ...................................................................................................... 93

MR NENE’S MEETING WITH PRESIDENT ZUMA AND MS MYENI .............................. 94

PRESIDENT ZUMA’S MEETING WITH SELECTED CABINET MINISTERS ON

THE NUCLEAR DEAL ON 8 DECEMBER 2015 ..................................................... 95
THE CABINET MEETING OF THE 9TH DECEMBER 2015 ..................................... 98
THE IMPACT OF MR NENE’S DISMISSAL ON THE FINANCIAL MARKETS ..... 100

The true reasons for Mr Nene’s dismissal ................................................................. 101

APPOINTMENT OF MR DES VAN ROOYEN ....................................................... 113

 1

The Attempted Capture of the National Treasury

INTRODUCTION

1. This part of the Report deals with the attempted capture of the National Treasury. This

topic refers to various attempts that were made by President Zuma, Minister

Joemat-Pettersson and Ms Dudu Myeni, the Chairperson of the Board of South African

Airways from some time in 2012 to sometime in 2017, to get the National Treasury to

approve certain transactions that were not in the interests of the country or that were

not financially affordable for the country or that might not have been objectionable in

principle but were rendered objectionable by reason of certain terms and conditions to

which the National Treasury was urged to agree.

2. The National Treasury, under, initially, Minister Pravin Gordhan as Minister of Finance

from May 2009 to May 2014, under Minister Nhlanhla Nene as Minister of Finance from

May 2014 to 9 December 2015 and, once again, under Minister Gordhan as Minister of

Finance in his second term from 13 December 2015 to 31 March 2017 put up great

resistance to repeated attempts by President Zuma, Ms Dudu Myeni and others to get

them to engage in wrongdoing concerning various transactions.

3. The stance taken by Minister Gordhan and Minister Nene during their respective terms

of office as Ministers of Finance in terms of which they were not prepared to approve

wrong or unlawful projects or transactions did not endear them to President Zuma and

some of their Colleagues in the Cabinet. In fact they both testified that some of their

Colleagues in the Cabinet became hostile to them and the National Treasury.1 The

reason for that hostility by members of the Cabinet towards the National Treasury may

have been because they identified themselves with President Zuma’s wishes with

1 Exhibit K1, p 26, para 76.

 Judicial Commission
of
Inquiry into Allegations

of

State Capture, Corruption and Fraud in the

Public Sector Including Organs of State

Report: Part IV
Vol. 1: EOH Holdings (Pty) Ltd and the City
of Johannesburg

Chairperson: Justice R.M.M Zondo

Chief Justice of the Republic of South
Africa
 EOH HOLDINGS (PTY) LTD AND THE CITY OF JOHANNESBURG
TABLE OF CONTENTS

Introduction .......................................................................................................... 175

The Environment in which Wrongdoing was Facilitated at EOH ..................... 178
The Improper Relationship between EOH and Mr Geoff Makhubo and EOH
Contracts with the City of Johannesburg .......................................................... 181
The 2014 Network and Security Infrastructure Upgrade Contract between the
City of Johannesburg and TSS Managed Services ........................................... 184
The City of Johannesburg A647 SAP Upgrade Contract with EOH Mthombo 192
The Attempt by Mr Jehan Mackay to Manipulate his Relationship with Mr Zizi
Kodwa to Distort Public Procurement Practices. .............................................. 198
 175

EOH HOLDINGS (PTY) LTD AND THE CITY OF JOHANNESBURG

Introduction

242. EOH is a unique case. Alone among all the companies that have been mentioned in

the proceedings of the Commission, EOH proactively approached the Commission to

be given the opportunity to disclose publicly what wrongdoing had taken place

historically within its ranks. It sought also to explain what it has already done, and what

it proposes to do, to make reparation for such wrongdoing and to prevent similar

wrongdoing occurring within its ranks in the future.

243. EOH’s attitude towards the Commission is illustrative of the attitude that it has taken to

regulatory and law enforcement authorities more generally. Since the appointment of

Mr Stephen van Coller as CEO of EOH in September 2018, Mr van Coller and the Board

of EOH have presided over a process where ENS Forensics have been appointed to

conduct independent and unfettered investigations into EOH’s historical involvement in

irregular and corrupt procurements practices. EOH has committed itself to making the

results of these investigations public and to assisting regulatory and law enforcement

authorities with their investigations into matters that have been revealed by the ENS

Forensics investigations.

244. Primary credit for the attitude taken by EOH must be accorded to Mr van Coller. At the

time of his appointment in 2018, he was aware of adverse media reports relating to

EOH. His response to these reports was not to seek to negate them, but rather to

investigate to establish whether they were substantiated. When it became clear that

there was substance to several of these reports he put in place a wide range of

measures:
 Judicial Commission
of
Inquiry into Allegations

of

State Capture, Corruption and Fraud in the

Public Sector Including Organs of State

Report: Part IV
Vol. 1: Alexkor

Chairperson: Justice R.M.M Zondo

Chief Justice of the Republic of South Africa
 i

ALEXKOR
TABLE OF CONTENTS
Background .......................................................................................................... 211
The thesis of state capture at Alexkor – links to the Gupta enterprise ........... 215
The role of Regiments at Alexkor ....................................................................... 218
The irregular appointment of SSI as the PSJV’s sole marketing agent.................
........................................................................................................................ 226

The allegations regarding the valuation of the diamonds sold to SSI..................... 240

The proposed diversification of Alexkor into coal mining ............................... 246

Conclusion and recommendations .................................................................... 255
 210

ALEXKOR

283. The Commission investigated various allegations that certain Gupta linked individuals

or entities were irregularly or corruptly awarded certain contracts at Alexkor. This part

of the Report relates to such investigation as the Commission was able to make within

the time available to it.

284. Various allegations have been made of state capture at Alexkor Ltd (“Alexkor”) and its

associated companies. Only two witnesses testified before the Commission in relation

to Alexkor, namely: i) Mr Gavin Craythorne, a marine mining contractor and a founding

member and office bearer of the Equitable Access Campaign (“the EAC”), an

organisation that seeks to advance the interests of marine miners contracted to exploit

the marine diamond rights in the Richtersveld; and ii) Mr Albert Torres, a director of

Gobodo Forensic and Investigative Accounting (Pty) Ltd (“Gobodo”), which was

appointed by the Department of Public Enterprises in July 2019 to conduct an

investigation into the relationship of Alexkor and its marine mining contractors. In

addition, two investigators of the Commission, Mr Peter Bishop and Mr Jakob Dekker,

filed detailed affidavits elaborating on some of the evidence tendered by Mr Craythorne

and Mr Torres. Although their affidavits were admitted into evidence, neither Mr Bishop

nor Mr Dekker testified before the Commission.

285. During the course of its investigation into state capture at Alexkor, the Commission

issued several Rule 3.3 notices and requests for information to various implicated and

interested parties in relation to the evidence of Mr Craythorne, Mr Torres, Mr Bishop

and Mr Dekker. This resulted in the Commission receiving more than 20 statements,

requests for additional information, applications for specific directives and applications

to cross-examine witnesses, amounting in total to about 8000 pages of documentary

evidence. Unfortunately, the constraints of time and resources made it impracticable for