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Thread: Nkandla, sweet Nkandla...

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    Silver Member Darkangelyaya's Avatar
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    Nkandla, sweet Nkandla...

    I received the following per email:

    'Nkandla appears to be only be the tip of a very large iceberg…

    Nkandla Freeway Corruption Potentially Exposed...

    Much has been said, fought and argued over the funding of the R250m Nkandla Compound, and rightly so. But what's received little attention is the funding of the freeway set to run through Nkandla following the development of the president's luxury compound. This freeway is set to cost R1.5bn, so this is no small chunk of change, so Mybroadband's amateur, volunteer, investigative journalists gave it a crack and uncovered what appears to be a case of corruption on an arms deal scale. Here's what we uncovered:

    Claim #1

    Public Works claim that the freeway is being constructed by a private company called Korong Capital Partners who will, following the road development's end, donate the entire road to the government at no cost to them. Now that sounds incredible. So incredible that it sounds almost too good to be true. That's because it is.

    Debunking

    Korong Capital Partners appears to have been a dormant shell company since 1999, and who's only director is Moeti Mpuru, who claims to have secured the funding of R1.5bn for this project. The problem with this scenario is that Korong Capital Partners have no history of this sort of work. In fact, they have no history of any work whatsoever. So they certainly couldn't have secured revenue of around R37bn to place them in a position to fund this internally. This would have made them the most successful company in history (to put this into perspective, this would equate to more than double Vodacom's 2011/2012 revenue, and Korong would have achieved this in about a year of operations). They couldn't have raised this finance in the capital markets either because no financial institution would originate and secure a bond for a company with zero balance sheet strength and zero cash flow. So the only other option is that there was an angel investor involved, and this is the next claim:

    Claim #2

    An angel investor is funding the entire project at no cost to government whatsoever.

    Debunking

    Who was this angel investor? Well the claim is that the cash originated from the USA, through an attorney who is set to make $100,000.00 for simply arranging the transfer of the cash. Apparently Mpuru, after being turned down for a R1m loan to fund a small portion of the project, managed in just a few months to secure R1.5bn in funding for a project that will see absolutely no return on investment. It is a straight R1.5bn loss to whoever funds this project. And why is the donor not being made public? What has he got to hide? And who in their right mind would philanthropically fund a minor freeway in SA through the president's home town? It makes no financial sense, nor logical sense.

    So on to brass facts: Korong Capital Partners has its registered offices at the following address:

    UNIT 2 CHIANTI ESTATE
    39 LEEUWKOP ROAD
    SUNNINGHILL
    2196

    So this company that apparently has R1.5bn spare to flush down the toilet, or will be managing R1.5bn worth of angel investor cash, is situated at unit 2, Chianti Estate in Sunninghill, a residential complex that does not have business rights for its units. This is a tiny, 60sqm residential complex - not an office park, or the premises you'd expect for a company with R1.5bn to spend and manage. Yet Public Works feel happy for this company to complete this project on their behalf. Ever wondered why?

    So who owns Unit #2 at Chianti Estates? None other than MBANJWA NQOBILE ZINHLE (Zinhle Mbanjwa). Who is Zinhle Mbanjwa? He is the manager of the Housing Development Agency of South Africa. This is the governmental department that oversees investments in housing related infrastructure on behalf of the Human Settlements Department. They also manage inter-departmental projects. Why is Korong Capital Partners' premises at the HDA manager's personal premises? The answer to that is simple - he owned the shelf CC from the outset. This means that the CC used to move the money around to pay for the Zuma freeway is in fact located at the HDA manager's house and directed by the man who supposedly secured the funding. This makes no sense in terms of the government's official statements that this is a private entity funding the project through angel investment. What this actually means is that the HDA more than likely used the CC owned by their manager to move Human Settlements money to Korong Capital Partners to fund the Zuma Freeway. If this was angel investment, the investor would ensure that he had board representation to ensure he had oversight over the use of his funds.

    What does this mean? Well it means that Zuma's compound is only the tip of a very large iceberg. The real corruption is worth in the region of about R1.5bn, as it indicates that the HDA facilitated government cash (which is what they do) to be moved to Korong Capital Partners to fund the Zuma Freeway, and the government knowingly lied to the public about how the project was being funded. It indicates that behind the scenes, HDA, Public Works and Human Settlements arranged a secretive transaction to spoof legitimate business operations, when in fact they were simply trying to hide their money-trail of corruption, knowing that using public money would cause outrage among South African citizens.

    None of this makes any sense in terms of the official story by the government. It makes perfect sense when you add a corruption element to the mix though. Public Works and Human Settlements found cash to fund this project. In order to hide this from the public, they engaged with the manager of the Housing Development Agency, who are the middle-man for inter-governmental transactions. Together with a lawyer in the US, they siphoned cash out of the country to make it appear as if the cash was from an angel investor, and would not be subject to disclosure to the public. They then moved the money to a CC owned by the HDA manager called Korong Capital Partners who are now officially funding the Zuma Freeway.

    On the surface it seems like an extraordinarily unlikely investment - that some unknown source of billions of dollars donated all of the funding capital to a private company that coincidentally happens to be owned by the HDA manager, to build a freeway through Jacob Zuma's Nkandla hometown, with no oversight of the spending, no recourse whatsoever to the cash, no return on investment, while remaining completely anonymous, and then with the intention to hand the entire road over to Public Works upon completion. And that is because this is ridiculous. It reminds me of the SANIP arrangement with SAAB and BAE, where Fana Hlongwane received the bribe payments for the arms deal.

    What has happened however is that government appears to have attempted to pull the wool over the eyes of its citizens, in anticipation of backlash for R1.5bn funding of the Zuma Freeway, by hiding cash in an entity they thought would be safe from public scrutiny. As it turns out, this wasn't quite as private as they expected. The crucial oversight was using a private CC owned by the HDA manager and forgetting to remove his personal address from the company information records, which are public.

    So government has a lot to answer for here and we the public should demand answers. Not only does this appear to be corrupt to its very core, but the spending at Nkandla is outrageous too. See here for more details relating to how exorbitant the Nkandla spend is:

    http://mybroadband.co.za/vb/showthre...projects/page2

    Public Works is currently involved in hundreds of projects around the country, with their mandate being to spend on infrastructure and social development. With this in mind, their average allocation for each project will be somewhere between 0.1% and 0.2% of budget (this is a very high estimate in my opinion - they're probably spending less across more projects). Zuma's non-revenue-generating, unnecessary development that has nothing to do with infrastructure nor social development equates to a 0.32% allocation of the national public works budget. This means that they've spent up to 224% more on Zuma's compound than on their average spend on actual deliverable projects that meet their mandate.

    If we include the freeway project, which I'm quite sure is just a dodgy vehicle to protect Zuma from recourse, the figure jumps to 2172% more than their average national infrastructure spend. So instead of money going to the Gauteng Freeway Improvement Project, to mitigate the impact on the country, Public Works chose instead to over-spend on Zuma's home by up to 2000-odd percent. What is clear is that Public Works consider Zuma's house to be at least 224% more important than investment in infrastructure, which is their actual mandate.

    So if you want to do something about this and make your voice heard in opposition to potential corruption, fraud, misuse of public funds and lies, then send this out to media outlets, the public protector, your friends and family etc. It's high time this sort of presidentially-supported corruption is put to bed, once and for all...
    '

    Interesting.
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  2. Thanks given for this post:

    KristiKat (21-Mar-14)

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    Site Caretaker Dave A's Avatar
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    There are two things that bug me with this one -

    1. We've had a spate of well written emails in circulation of late that have very little foundation in truth and in time are revealed as nothing more than malicious assassination pieces, and

    2. Damn it - it's possible, isn't it.

    Interesting times indeed.
    The trouble with opportunity is it normally comes dressed up as work.

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    Silver Member Darkangelyaya's Avatar
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    Indeed, Dave.
    ~Anything or anyone who does not bring you alive, is too small for you~ Carina
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    Diamond Member Blurock's Avatar
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    What has happened however is that government appears to have attempted to pull the wool over the eyes of its citizens, in anticipation of backlash for R1.5bn funding of the Zuma Freeway, by hiding cash in an entity they thought would be safe from public scrutiny. As it turns out, this wasn't quite as private as they expected. The crucial oversight was using a private CC owned by the HDA manager and forgetting to remove his personal address from the company information records, which are public.
    This is exactly the reason why the ANC wants the Information Bill passed - to hide their own corruption!
    Excellence is not a skill; its an attitude...

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    Gold Member Chrisjan B's Avatar
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    Site Caretaker Dave A's Avatar
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    An email allegedly from Chris Thompson:

    When I was CEO of GoldFields I got a call from Mandela saying that we
    should build a school at Nkandla for Zuma. He was V President at the
    time. GFL had a Foundation, which I headed, and we did in fact build
    schools all over the country but only where there was demonstrated
    and real need. Nkandla already had a school so I told Madiba we
    would look into it and see if there was a real need. The conclusion
    was that it was marginal but could be said to have need for new and
    bigger school.

    So when he called me again to repeat the ask a couple months later, I
    aid would go down to Nkandla myself and meet Zuma. I flew down by
    chopper and Zuma flew in with an entourage with 3 military choppers
    and put on a big lunch etc for us. He then took us to see the
    existing school and meet with the architects who has designed the
    proposed new school. it was pretty grand. In the course of discussion
    I asked what the cost would be and the Dutchman architect standing
    next to me who absolutely stank of booze grinned and said "R12to
    R14million". I turned to our Foundation chief said that was about 3
    times what we usually spend and asked what should the cost be for the
    design we were looking at. The answer -"about R5 or 6 million". So I
    looked at the Dutchman and asked "Where does the rest of the money
    go?" He looked accross the table at Zuma where he was seated and
    Zuma just looked at me with this big smile.


    So I flew back to Jhbg and called Mandela. "Yes we will build a
    school in Nkandla but there are two conditions, 1) it will be a
    school GFL designs and not Zuma's design, and it will be built by our
    own contractors reporting to
    us ( it ended up costing about R4mm) and 2) we are listing GFL on the
    NYSE in two months and we want you to come and ring the bell for
    GoldFields at the launch.


    He agreed.


    The reason I asked for him was because AngloGold the month before had
    brought a real live lion (drugged of course) on to the NYSE stage as
    a very successful publicity stunt, and as long time rivals we wanted
    to upstage them. I cannot conclusively say we did, but the effect of
    Mandela on the floor was electric. Trading almost came to halt for 10
    minutes and he was mobbed. We got huge press around it and the stock
    went up nicely.


    All in all a good result all round. But i will never forget the smirk
    on Zuma's face. This latest revelation about the highway and his
    house scam are all consistent with what we saw that day.


    best,


    Chris

    Just who Chris is supposed to have sent the email to is beyond me, but I did a little research and Nelson Mandela did indeed attend the opening of Gold Fields' listing on the NYSE, and I found this speech of JZ at the Opening of Mnyakanya Secondary School where he thanks as follows:

    I must therefore, once again, thank Gold Fields, the Telkom Foundation and the MTN Foundation for the investment in education they have made here
    So much of the anecdotal evidence seems to stack up.
    The trouble with opportunity is it normally comes dressed up as work.

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    Silver Member Darkangelyaya's Avatar
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    ~Anything or anyone who does not bring you alive, is too small for you~ Carina
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    Quote Originally Posted by Blurock View Post
    This is exactly the reason why the ANC wants the Information Bill passed - to hide their own corruption!
    I couldn't agree more! We not in a state of war, there's also no state of emergency, so I too conclude that the sole intention of this Bill is to muzzle the media and to hide corruption under the auspices of 'Top Secret, For your eyes only!"
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