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South Africa’s state capture

defendants remain defiant

SOUTH AFRICA REACTION in South Africa to the Gupta Files, the era of State Capture, referring to around
or Eskom’s legal summons to a list of 12 for- 2012-2015, when Eskom was run by a number
mer executives and directors in a ZAR3.8bn of figures with ANC connections, with ANC
($211mn) civil suit, has been defiant, with MPs becoming closely involved with the tightly
many on the list denying any involvement in regulated company.
corruption. Then-president Jacob Zuma is also accused of
One prominent figure, current ANC MP and being especially close to Eskom and its manage-
former mining minister Mosebenzi Zwane, has ment, all of whom were deeply involved in ANC
spoken out to say he will not respond to ques- political battles.
tions about his involvement, and that he will not Eskom now has ZAR480bn ($27bn) of debt,
resign from Parliament. which is preventing it keeping the lights on and
He is the only name on the list that is a current providing power to industry, and is holding back
MP and he is now the chair of the parliamentary economic growth.
committee on transport. Zwane’s name is mentioned in Eskom’s
Zwane is alleged to have taken kickbacks in 73-page summons, where he is alleged to have
return for facilitating companies connected diverted funds from the Free State government
with the Gupta to buy Optimum coal mine from to Gupta entities. He has also been accused of
Glencore in 2015. money laundering, involving the transfer of
According to leaked emails, he flew to Swit- government funds via a network of brass plate
zerland by private jet to speak to Glencore boss companies to Chwayita Mabude, who would
Ivan Glasenberg. Other outlandish accusations later become an Eskom board member.
include a trip for his church choir to India, Crucially, Zwane used his role as mining
described as a farmer training trip for Free State minster to apply pressure to Glencore to sell
agriculturists. Optimum to Gupta interests. Optimum is a
Zwane is listed as number five on Eskom’s list, major supplier of coal to Eskom. In particular,
which also includes the Gupta brothers – Tony, he threatened in 2015 to close down operations
Atul and Ajay – and their fixer Salim Essa, as well at six Glencore mines in South Africa.
as Eskom figures. When South African President Cyril Rama-
Other defendants in the damages claim are phosa took office from Zuma in 2018, he over-
former Eskom chief executive Brian Molefe, for- hauled Eskom’s management and board, as well
mer chief financial officer Anoj Singh, former as putting in a stronger regime of oversight.
group executive for generation Matshela Koko As well as rooting out corruption and cutting
and former company secretary Suzanne Daniels. the influence of Zuma-influenced ANC figures,
Eskom also seeks damages against for- Ramaphosa has spearheaded Eskom’s plans to
mer board chairperson Ben Ngubane, former split up the company into generation, trans-
board members Chwayita Mabude and Mark mission and distribution entities. This aims to
Pamensky. cut debt, improve operational efficiency and to
The issues are described in South Africa as reduce corruption.™

P8 www. NEWSBASE .com Week 32 13•August•2020