Ministers, journalist linked to slush fund looting

Over the course of two days’ testimony at the Zondo Commission of Inquiry into State Capture, Hawks investigator Kobus Roelofse has lifted the lid on a cauldron of corruption at the State Security Agency (SSA). Those implicated thus far as benefiting from the financial abuse of Crime Intelligence have included current Police Minister Bheki Cele, former Police Minister Nathi Mthethwa and high-profile journalist Ranjeni Munusamy, says a Daily Maverick report. Roelofse told the commission this week that there had been attempts to prevent him from testifying. Given the damning nature of his testimony, it soon became clear why this might have been the case, notes the DM. Roelofse has laid bare what he described as the ‘looting of the SSA fund’ by former spy boss Richard Mdluli in collaboration with CFO Solly Lazarus. This plundering of Crime Intelligence (CI) resources, Roelofse said, was enabled by the practice of classifying documents to prevent the exposure of fraudulent transactions. Much of his account has relied on information supplied by former CI official Dhanajaya Naidoo, who has admitted complicity in some of the fraud, but since turned state witness.

Roelofse testified that in late 2010, CI went through a restructuring process ‘which would have an effect on appointments within CI and positions’. It would also increase the power of Lazarus to determine where and how funds were allocated. The person who signed off on the restructuring was Cele, at that point National Police Commissioner. According to the DM report, Roelofse said Lazarus had used a close confidante of Cele to get close to the Police Commissioner in order to propose his restructuring plans. ‘General Cele agreed to the restructuring proposals made by General Lazarus in respect of CI,’ Roelofse said. ‘Colonel Naidoo also alleges that General Cele was paid in cash to secure the support.’ Mthethwa – now Arts & Culture Minister – allegedly benefited from the misuse of SSA funds in a different manner. Roelofse claimed Mthethwa received a R195 000 security upgrade to his private residence in KZN in 2010, while Mthethwa was serving as Minister of Police. The upgrade was paid for from the CI slush fund and approved by Mdluli after a risk assessment, Roelofse testified. He was unable to say whether Mthethwa was aware of the source of the funds for the security upgrade.

Mdluli himself was one of the major beneficiaries of the slush fund. His own private home in Boksburg received a security upgrade valued at R190 735. The commission heard that overseas trips for Mdluli’s family members were also paid for, including a visit to his daughter while she was studying in China. CI funds also subsidised a business-class flight to Singapore in 2009 for Mdluli’s then-girlfriend. In addition, says the DM, Roelofse testified that Mdluli made use of a safe house – supposed to be reserved for the accommodation of state witnesses – in which to live rent-free despite having his own private home. The slush fund was also allegedly used to buy Mdluli five luxury cars, totalling R3.5m while he already had the use of an official vehicle. Between 2009 and 2012, vehicles to the value of R69m were bought by CI from one company, Atlantis Motors in Centurion. It was the Atlantis Motors business account, Roelofse alleged, that was used to pay R143 621.78 to Wesbank vehicle finance to settle the account of a vehicle registered in the name of Ranjeni Munusamy in 2008. He said that the CI fund was subsequently used to repay the amount in question to Atlantis. Munusamy was not working as a journalist at the time of the alleged payment, notes the report.

The National Editors' Forum (Sanef) said it has noted Roelofse's testimony regarding Munusamy. Munusamy, who was working as a communications consultant at the time and one of her clients included the Friends of Jacob Zuma Trust, reportedly told News24 she will defend herself against the allegations. ‘Sanef has noted Munusamy's denial of the allegation and welcomes her decision to co-operate with the Zondo Commission. It also welcomed Tiso Blackstar's decision to place Munusamy on special leave so that she could deal with the allegations against her, which it said, ‘has the ability to further undermine the integrity and standing of the journalism profession’. ‘We will closely follow Munusamy's co-operation with the Zondo Commission and will await the outcome of Tiso Blackstar's internal investigation,’ Sanef added.