New twist in Gold Fields 'bribery' saga

Now, in a move a Mail & Guardian report says ups the ante in a high-stakes contest of truth versus reputation, the key witness behind a New York law firm's finding that mining house Gold Fields 'bribed' ANC chairperson Baleka Mbete has claimed that the lawyers had misquoted him. The witness, President Jacob Zuma's one-time lawyer, Jerome Brauns, has given an account of the interactions that preceded Gold Fields increasing Mbete's stake in a contentious 2010 empowerment deal by R25m. This account, which followed the ANC lashing out in Mbete's defence, exonerates both the mining company and the party chairperson. However, the report says the law firm's investigation builds a compelling case that anti-bribery laws were breached by relying on the 'unequivocal' version it says it got from Brauns in two detailed interviews. In a slide presentation to the Gold Fields board last month, the law firm Paul, Weiss, Rifkind, Wharton & Garrison (Paul Weiss) quoted Brauns in detail on points he now denies, bolstering that version by referring to documents and circumstances. The M&G reported earlier that the Gold Fields board buried the Paul Weiss findings by deciding not to have the presentation reduced to a written report and by not heeding the advice to 'self-report' the matter to the authorities. Gold Fields denied a cover-up, saying its board acted 'deliberately ... and in full compliance with the law'. Full Mail & Guardian Online report

Agang SA leader Mamphela Ramphele, who chaired the Gold Fields board before entering politics, says she is expecting to be called to testify on the matter. According to a Saturday Star report, she said she could not comment on allegations swirling around the deal, as the US authorities had begun an investigation into it, and 'there is no doubt that I will be asked at some stage'. The report notes Gold Fields announced last week it was being investigated by the US Securities and Exchange Commission (SEC) over the deal. Full Saturday Star report

In the latest development, it has come to light that convicted gangster turned businessman Gayton McKenzie plans to sue Gold Fields and Ramphele because, he says, their BEE deal destroyed his business and ruined his 'good name'. A City Press report claims McKenzie has lifted the lid on his involvement in the deal. He has challenged both Ramphele and the company's CEO, Nick Holland, to come clean about their roles in the setting up of an empowerment consortium valued at R2.1bn. McKenzie and his mining consultancy were hired in 2010 by Gold Fields to find and identify empowerment partners for a 9% stake in its South Deep mine. McKenzie - a convicted former bank robber - reportedly told the paper 'Gold Fields hired me to put the BEE deal together and I did so to their complete satisfaction. Holland and I became friends, and he was very happy with what I did'. He lashed out at Ramphele, challenging her to reveal her true role in the BEE deal. He said he had personally spoken to her at the time and she was satisfied with his work. 'Now suddenly it's all rotten and they were under pressure to do this or to do that. Why didn't they say anything to me at the time? Why did we have parties to celebrate the deal?' Full City Press report

In an editorial, the Mail & Guardian says the 'sorry saga' of Gold Fields' 2010 empowerment deal has brought into focus the distortion and corruption of the noble ideal of broad-based BEE by greedy politicians and cynical, self-seeking elements of big business. The paper says Mbete must explain why she accepted the gratification and has yet to give the investigators, or the South African public, an alternative version of what happened. Full Mail & Guardian editorial