Cadiz chairman calls Investec CEO a thief and a QwaQwa k *r
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noseweek
Michiel Heyns on books Harold’s call to unathletes A Jew in Berlin
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Cadiz chairman calls A I creates robot racism
Investec CEO a thief Dirty tricks to discredit
key Zuma witness
and a QwaQwa k****r
Could a black man face jail for using the k-word?
224 JUNE 2018
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The spyzana’s side
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BER 20
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Wate
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i Khoza
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4 Letters
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31 Smalls Robot racism
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NOSEWEEK June 2018 3
Letters
The SARS ‘naughty list’ the debate that follows is redundant, there, look at the people more carefully.
amounting to little more than rationali- Rudd van Deventer
I RUN A SMALL ACCOUNTING PRACTICE. REST sation of the chosen line. This leads to Johannesburg.
assured that this level of tax evasion is the mudslinging, childish interjections, We are watching closely. – Ed.
nothing new. and generally unruly behaviour that
The worst is that SARS on most now characterise our parliamentary n IN JERSEY THEY STILL PRACTISE
levels has individual staff members sessions: few members feel any need to THE “Clameur de Haro”. Beat that,
with whom a taxpayer, and particu- listen; some go to sleep. Nedbank! If someone pisses you off,
larly certain attorneys, can arrange the These habits are learned in school you go to the Royal Square (your pic)
writing-off of tax debt for a fixed fee of debating societies, where the competi- and kneel down facing the statue of the
10% of the debt. (Even VAT and PAYE tiveness encouraged by teachers leads Duke of Normandy, Our Liege; then
can get written off.) to petty point-scoring rather than say “Haro, Haro, Haro, A l’aide, a l’aide
It is therefore okay to owe SARS a lot rational discussion. Perhaps fruitful Mon Prince. On me fait tort. (Hear me!
of money. If you don’t owe them a lot, debate is possible in some of our parlia- Hear me! Hear me! Come to my aid, my
you’ll find yourself in a world of trouble mentary sub-committees, but it will Prince, for someone does me wrong.)”
because then the 10% is not worthwhile remain absent from the main chamber Then the offender must either desist
for these crooks. while caucus voting persists. or face immediate arrest and prison.
CG Cloete If our politicians were sincere in their Would be cool here.
Cloete Accounting and Tax Services Inc desire to serve the people they would Renee Paul Gosselin
Parys, Free State not punish the likes of Dr Makhosi Johannesburg
Khoza for voting according to their
Gwen Ngwenya: bitter truth consciences; instead they would insist n I HAVE LEARNED THAT, SUBSEQUENT TO
that voting according to conscience the appearance of “How Nedbank lied”
PITY THAT NOSEWEEK, TO WHICH I becomes a constitutional duty. (nose223) the bank rushed copies to
subscribe, claims to care about issues John Brodrick their lawyers in Jersey who, pretending
of probity but the profile in nose223 of Bedfordview outrage, then asked the Jersey court
Gwen Ngwenya (now head of research for a contempt of court order against
for the DA) fails to mention the incident Africa’s Unesco City of Literature 83-year-old Dorothy Brakspear – who
of IRR’s sugar tax research sponsored they assumed was the source of the
by Coca-Cola. Different strokes for YOUR REPORT ON HOW ISSUES OF RACE AND story, since the Bankers Book evidence
different folks? exclusion are threatening Durban’s status was supposed to be kept confidential.
Sean Muller as Africa’s only Unesco City of Literature The Jersey court is yet to rule on
Via Twitter – as bureaucrats throw the book at the the matter. Fortunately, back in South
committee over race quotas – brings to Africa, the Constitution guarantees
mind these words inscribed on Kwame (in S16[b]) our “freedom to receive and
n THAT WAS SWEETHEART JOURNALISM AT
Nkrumah’s memorial in Accra, Ghana: impart Information and Ideas”.
its worst. Bad pun! Also no mention of
“Get thee the political power and all Nedbank and its lawyers’ ongoing
Afriforum funding of IRR.
things shall be added unto thee.” outrageous conduct in the Brakspear
Shuaib Manjra
Alain Leger matter brought to mind some quotes
UCT, Cape Town from Auschwitz survivor Elie Wiesel.
An interesting point we failed to notice; (via Facebook)
St Martin de France, Pontoise, Paris First, on speaking out: “We must
so we are human after all. Thanks for always take sides. Neutrality helps the
reminding us. – Ed.
A Steinhoff puzzle oppressor, never the victim. Silence
encourages the tormentor, never the
n I HAVE BEEN CONSISTENTLY IMPRESSED BY FOOD FOR THOUGHT: WHY WOULD PSG tormented. There may be times when
the articles written by Gwen Ngwenya have sold all their Steinhoff shares we are powerless to prevent injustice,
when she was COO of the IRR. She is (apparently seven million) only a few but there must never be a time when
indeed a brilliant rising star and I am months prior to “meltdown”? we fail to protest.” Then, on indiffer-
convinced she will go very far in her Why would Steinhoff “strip” solid ence: “The opposite of love is not hate,
chosen career. South African assets and insulate/ring- it is indifference. The opposite of faith
Larry Palk fence same in STAR (Steinhoff Africa is not heresy, it’s indifference. And the
Betty’s Bay Retail) – even closer to “meltdown”? opposite of life is not death, but indiffer-
Genius? Coincidence? Just asking. ence between life and death.”
n MS GWEN NGWENYA’S LAMENT THAT Luvuyo Mncanca Wiesel concludes his argument with
Parliament is not “a place for really a wrenching memory: “Bomb the Rail
By email
Line leading to the Concentration
in-depth engagement on policy” strikes
a chord. To change this we must outlaw
Nedbank’s lies Camp …Just once. (We believed that
the idiotic practice of caucus voting. WHY WOULD NEDBANK TAKE SUCH A Auschwitz and Treblinka were closely
When party caucuses decide in advance huge risk by lying for small change guarded secrets; that the leaders of the
how they will (or must) vote, then (nose223)? There is a bigger story free world did not know what was going
4
on behind those black gates and barbed Zip, Bmobil, Gamezz, Jamba, Get the of it. All of it can be bought over the
wire; that they had no knowledge of Result, Buzzy Life, Wasp, Andro Games. counter or on the internet by anyone.
the war against the Jews that Hitler’s Upon enquiry at Vodacom, Brooklyn Paul Kirk
armies and their accomplices waged as Mall, they accessed an SMS number, Durban
part of the war against the Allies. 31050, with a message to “delete That might be so, but this lot is said
“If they knew, we thought, surely those all”. This instruction via SMS appar- to have come as a hand-me-down
leaders would have moved heaven and ently ensures that data reflected as from US government sources. And
earth to intervene, would have spoken “content services” are cancelled. I was while the accused say it was intended
out with great outrage and conviction. also advised to file a formal complaint for use by SARS customs officials at
They would have bombed the railways via email to complaint@waspa.co.za border posts, was it in fact used there?
leading to Birkenau… just once?” and info@waspa.co.za for a refund of
Was it used legally to intercept
The moral of my story: If you are the amounts illegally debited to my
private conversations; ie, did the users
a South African and you support our account, which I did on 21 February.
rights guaranteed by the Constitution, I have traversed the debits in
have the necessary warrants? Was
such as to Freedom of Speech and respect of the relevant cell number this the same equipment that was
Lawful Action that are threatened by and compiled a detailed list of all those used to “bug” the NPA offices? What
certain Banks and Lawyers, then you amounts illegally recovered from my equipment was used to record the now
cannot, at the same time be a client account, which I forwarded to those notorious “spy tapes”? – Ed.
of those Banks or those Lawyers. You Waspa addresses, together with my
can’t say you did not know. request for a refund in the amount of n NOSEWEEK, YOU HAVE BEEN WELL
“We must always take sides.” Choose, R12,768.52. Both emails were returned and truly suckered. What a load of
are you for Nedbank and its lawyers “undeliverable”. Subsequent to the last bollocks.
or are you for the Constitution, Mrs date listed, I established that a further Michael MacCarthy
Brakspear – and Noseweek? R144.99 was debited to my March Rooi Els
Atholl Canterbury account, despite the SMS instruction to We were not “suckered” by anyone.
Durban delete all content services. Noseweek chanced upon copies of
Kindly forward the contact details of the 2015 disciplinary hearing charge
Over-rated Joburg advocates any Vodacom directors that you have, sheets in a bundle of documents
so that I can refute the fraudulent “discovered” (handed over) by SARS
THESE LAWYERS ARE THE CLASS OF PEOPLE charges debited to my account. I have in another, unrelated criminal trial
I hope never to have to deal with or every intention of proceeding against we are investigating.
employ; they are totally disgusting. I them to recover my losses and thus be Whether the charges contained
comment as a graduate, professional of assistance to those who have suffered in them are valid or spy-inspired
mechanical and aeronautical engineer the effects of this organised fraud. malicious invention, they provide
with local and international qualifi- Ferdie Ziondagh
interesting context for the criminal
cations plus 50 years’ international Attorney
charges recently brought against Ivan
professional experience, who charges Pretoria
absolutely nothing like those ridiculous We have had a call from Vodacom’s
Pillay, Johann van Loggerenberg
rates charged by the lawyers whose PRO pleading with us to remove the and Andries “Skollie” Janse van
sense of self-importance leads them telephone number of their CEO Mr Saki Rensburg. As simple as that: no plot,
to “over-rate” themselves. Reasonable Makozoma from our website as he was no conspiracy.
rates lead to good relationships with being overwhelmed by complainants’ What has me intrigued, however,
my clients – and to future business. calls. It’s still there if you need it. – Ed. is Van Loggerenberg’s claim that
Bruce Prescott he resigned rather than defend the
Benoni Last Word in laughter disciplinary because it “would have
the unintended consequence of also
Vodacom thieving (continued) HA HA HA! THE LAST WORD BY HAROLD... exposing other aspects concerning the
Drop dead funny, I could hardly finish state not relevant to my matter”.
I HAVE ENJOYED THE SERVICES OF reading, I laughed so much... Eish, die He added that a senior State
Vodacom for many years. Only madala! Security Agency representative he had
recently, after reading about the Mosa Damane consulted felt the country “couldn’t
problem in Noseweek, did I notice Sydney, Australia afford more scandals”. What was
that in respect of my cell phone that all about? What serious state
substantial amounts, reflected as Those SARS ‘rogue unit’ charges scandal/scandals is he hiding?
“Content Services”, have been debited Was that comment a loaded threat
to my account. THE “SUPER-SECRET EQUIPMENT” to his bosses and the prosecuting
These are apparently debited in referred to in the 2015 charge sheets authorities? There is a great deal
respect of unlawful data charges gener- as having been acquired illegally by more to this story than meets the eye.
ated by unknown entities identified as: the SARS “rogue unit” is a farce – all See page 6 – Ed.
NOSEWEEK June 2018 5
Dark secrets haunt ex-SARS man
A disturbing exchange on Noseweek’s Facebook page
AFTER READING ROGUE BY JOHANN VAN But it made me think back to those innocent people (and guilty ones), and
Loggerenberg and The President’s days: how ignorant we were about what the state – and that I’d have to leave my
Keepers by Jacques Pauw, it is clear precisely was unfolding; how battered employ in any event on the basis of no
that the so-called “rogue unit” had and bruised I was; muzzled and unable trust.
substantial successes, especially against to defend myself against the media I asked to sleep on it. I was told, in
organised crime. This is highlighted in onslaught; the realisation that even if I any event, since I made some internal
both Angelique Serrao’s book Krejcir: did win, my “new” employer [new SARS disclosures to this effect, and to the
Business as Usual and in Mandy Commissioner Tom Moyane]had made it Hawks, and SSA and Inspector-General
Wiener’s latest book, Ministry of Crime. clear I was unwanted; and not trusted; of Intelligence, those dastardly issues
It was thanks to this unit, and a state- losing my dad; worrying about my would be dealt with (which they ulti-
ment by Van Loggerenberg, that Krejcir mom’s health. Other issues included my mately never were, but I couldn’t have
was finally brought down. concern about potential harm to ongoing forseen this).
I tweeted in 2013, 2016 and again in investigations; not being heard or given So I slept on it, consulted with high
2018 commending SARS for their role a right of reply by no fewer than three office, and someone whom I trust implic-
as well as that of Van Loggerenberg and “panels”; an audit firm ignoring me once itly, and then made the decision that I
Paul O’Sullivan. (I have had personal again and my being denied access to wasn’t going to do so, on account of the
differences with both these men but their “reports” yet which were leaked to harm that would follow.
I have never hesitated to give credit the media. It was time to hang up my hat, and go.
where credit is due.) I remembered how puzzled both I and Which is exactly what I did. My letter of
Getting back to the Noseweek story, the intelligence official I consulted were resignation specifically deals with this
it is in the public interest to be told all at the “disciplinary charges”. Effectively issue in so many words.
versions of events available – especially they contained verbatim extracts from I also, as strange as it may seem, did
relating to such a high-profile case. my own whistleblower report. I can not seek to embarrass the crooked spook
The fact that the State is pursuing a confirm it was made in terms of the by making public matters of a personal
criminal case against Van Loggerenberg Protected Disclosures Act and handed nature, despite the aggression directed
et al under a new president, no longer to my employer, the Hawks, the State at me.
fits the narrative of Zuma’s trying to Security Agency and the Inspector- I thought I’d maintain the moral high
neutralise specialist investigation units General of Intelligence. ground, take the lessons my parents
and the NPA. I realised, as did he – and I happen to taught me, to remain a gentleman
In light of the recent failed prosecu- have a recording of the discussion – that regardless of circumstance, and not
tion of Glynnis Breytenbach, it would I’d have no choice but to enter into the direct aggression back at this person.
be surprising if the state would pursue record a complete data dump of three At the time I honestly believed that
another case involving an ex senior handsets and a data-cloud given to me in doing so I would bring calm to my
member of the law-enforcement frater- by a crooked spook. The dilemma that I employer, calm to the media storm and
nity and risk of further embarrassment. struggled with, was that: calm to government. I also didn’t wish to
The state must believe that they have a a) the spook, having denied giving cause disharmony with certain families
provable case. me this, tried instead to discredit it by with children, who no doubt would’ve
The original SARS rogue-unit story saying I had “unlawfully intercepted” also suffered as a result of, shall I say,
polarised the media once before and led it, and challenged me to produce photos “indiscretions”.
to major embarrassment for a news- of the handsets and written authority Sure, I misjudged the entire back-
paper and certain journalists. given me (which I can do with ease) and; story to what was really unfolding. Now,
Why would Martin Welz run the risk b) I couldn’t cherry-pick what I with benefit of hindsight, maybe some
of this same embarrassment? He obvi- submitted lest it be challenged on that would argue I shouldn’t have cared,
ously believes in the authenticity of the basis. I’d have to submit the complete and gone in guns blazing. But you know
documents he has. Let the court decide data set. what? If faced with the same choice now,
on the charges brought. I really struggled with the thought knowing much more than what I did
This is the perfect opportunity for Van of having to do so at the time, because then, I’d most likely choose the same
Loggerenberg’s defence to lead evidence an unintended consequence would have path. Because of a crooked spook, others
of the entire narrative at play and for been the exposure of genuine, hard- shouldn’t be damaged, nor the state and
the court to decide whether or not there working and honest state-intelligence its good parts.
was or is a conspiracy. officers; some of their work and opera- So, Mr Thomas, it is a bit more
Chad Thomas tions; their methods; financial aspects of complicated than what you suggested.
IRS Investigations their work; and their informants. It was I understand your point. At one level,
Johannesburg among the most difficult decisions I had yes, you are right. But, at deeper levels,
to make in my life, under the circum- it’s a choice I made, and I don’t regret it.
Van Loggerenberg’s reply stances, and for reasons totally outside In any event, the “disciplinary charges”
my control. were withdrawn. And the “situation”
MY INSTINCTIVE THOUGHT IN REPLY TO CHAD Collectively, between the state would have “escalated in the way it
Thomas was to acknowledge the point, intelligence officer and I, we debated has” in any event – of that I have no
with the benefit of hindsight. At first the legalities, the moral and ethical doubt. And that’s about as much as I’m
glance, it seems a fair point. But some- dilemma I faced, and the reality that no prepared to say on this.
times, life isn’t as simple as one would matter what happened at the intended Johann van Loggerenberg
wish it to be. This is a case in point. disciplinary, harm would be caused to Via Facebook
6 NOSEWEEK June 2018
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NOSEWEEK June 2018 7
C
Editor
Editorial
Martin Welz
editor@noseweek.co.za
Who Spilged the beans?
Assistant Editor
Jonathan Erasmus
Special Correspondent
Jack Lundin
Designer
Tony Pinchuck
T
Sub-editor
Fiona Harrison HE PROCEEDINGS IN COURT 17 OF THE Bennett: I must ask your Lordship to
South Gauteng High Court in Johan- declare whether that is in connection with
Contributors
nesburg on 4 May began with a bit you or not?
Sibusiso Biyela, Helen Grange,
of banter between Judge Brian Spilg, Judge: No, it is clearly wrong. I am an
Michiel Heyns, Sue Segar, Harold Strachan,
Anne Susskind, James Watkins
and the second accused in the case up-to-date taxpayer.
before him, Ms Susan Bennett. Bennet: This is from back in 2002 M’Lord.
Cartoonists Bennett told the judge she received a call Judge: It would never be. My tax affairs
Stacey Stent, Dr Jack from a friend asking if she had seen an article are up to date. I have never done any side
Accounts in the “current [May] Noseweek” – a maga- deals with anybody or asked for anything
Nicci van Doesburgh zine, she pointed out, that she does not read. …In fact I get angry because, despite being
accounts@noseweek.co.za Judge Spilg: I am not prepared to disclose given documentation, they take over a year at
Subscriptions when I last read Noseweek , but it was a long times to refund me; my refunds are generally
Maud August time ago. And I did enjoy them… over R100,000-a-year since becoming a judge.
subs@noseweek.co.za Bennett: Well I never subscribed, but I What year do you say it was?
Advertising was told on one occasion that it referred to Bennett: It is just a list generated by SARS,
021 686 0570 Mr [Gary] Porritt [her co-accused in the case listing defaulting taxpayers, and at the top of
ads@noseweek.co.za before court] as ‘Horrid Mr Porritt’ [nose65], the list is Dave King for a huge amount. [She
so I refused to buy them. goes on to explain that she had appended the
All material in this issue is copyright, and belongs Spilg: Their rhyming skills seem to have list to her early affidavits as it evidenced the
to Chaucer Publications (Pty) Ltd, unless otherwise left them. tax debt of another person featuring in their
indicated. No part of the material may be quoted, Then the banter was over and Bennett case: Gavin Varejes, who was number 3 on the
photocopied, reproduced or be stored by any
moved on to the more “difficult” matter list.]
electronic system without prior written permission.
Disclaimer: While every reasonable effort is taken to arising from a Noseweek article that had been Judge: Where do I appear?
ensure the accuracy and soundness of the contents of brought to her attention. She felt it was only Bennett: No. 30 on the list is B S Spilg.
this publication, neither the authors nor the publisher fair to also bring it to the judge’s attention. Judge: B S Spilg? Well that is my initials,
will bear any responsibility for the consequences of
any actions based on information contained. Printed
Bennett: They printed an article which that is me.
and Published by Chaucer Publications (Pty) Ltd. referred to an affidavit I had put up many Bennett: Yes, M’Lord.
years ago to [then head of the NPA] Advocate
Vusi Pikoli – it has appeared in various
court papers since then. It had a list of SARS
defaulters or taxpayers [attached to it]. You
might recall having seen it in the [document]
bundle that has [also] been placed before you.
Judge: I have seen something that identi-
fied a number of persons. I did not think it
came from Noseweek. Carry on.
SUBSCRIPTION RATES Bennett: They printed an article that
Print referred to my affidavit and they printed
excerpts from the SARS list attached to it. I
SA only R420
have brought a copy with me.
Neighbouring states (airmail) R620
Europe, Americas and Australasia R760
Judge: Do you want me to see it?
Bennett: I do want you to see it, M’Lord,
Internet edition
1 year R305
because of something that I have never
noticed before. It was pointed out to me
Combined
when I received this phone call that the list
Print+Internet (SA only) R520 reflected … is reported to be a tax defaulter
To subscribe with R3.661 million. It says B S Spilg.
By phone (021) 686 0570 Spilg: For how much?
Online (pay by credit card): Bennett: R3.661 million. I believe …I do
www.noseweek.co.za not know how many other B S Spilgs there
Email subs@noseweek.co.za are, but I believe I should bring it to Your
Lordship’s attention. I have got a copy of the
(Note: cheques no longer accepted) Noseweek for your Lordship.
Judge: I am totally unaware of that.
Further information
Call (021) 686 0570; fax 021 686 0573 or
email info@noseweek.co.za
Judge: I think it is time to make Coetzee: I understand, but all I it? It could have been done in my cham-
inquiries then. It could explain why it can say is the document was unlaw- bers… You know, the press, they are
takes so long for me to get refunds. fully obtained and disseminated by Ms here.
Bennett: It could do, yes. Bennett, not our revenue authorities. l Which leaves it to Noseweek to pose
Judge: Okay, but thank you, I appre- [How Bennett obtained the document the question: How did Judge Spilg’s
ciate that. is explained in the “Naughty List” story name appear as No. 30 on SARS’s
Shortly before the court adjourned, in nose223.] I will bring it to the atten- internal list of its top 200 debtors? And
later that day, Judge Spilg returned to tion of SARS’s legal section and tell how was it “sorted out”?
the matter of the SARS list that had them they must have a representative l Come Wednesday, no representa-
appeared in Noseweek. present on Wednesday. tive from SARS arrived to testify.
Judge: It has been raised in open Judge: If it is in the public domain Instead the Judge announced that
court that I am supposed to be some SARS must sort it out publicly. Do you there was no need. No explanation was
defaulter in SARS’s list, and [addressing follow where it leads to? It leads to a required of Ms Bennett.
the lead prosecutor, Advocate Etienne suggestion that somewhere or another l Noseweek had not identified Judge
Coetzee SC] since you are representing my tax affairs were compromised to a Spilg’s name on the list when we
SARS, I want to know by Wednesday point where I cannot deal properly with published it and have a reader to thank
next week: am I on a list, or am I not on a matter where SARS itself has laid for bringing it to our attention.
a list, and I want it in open court. significant charges of tax avoidance. l Gary Porritt was arrested on 14
Coetzee: M’Lord, we are not repre- Coetzee: The way I understand it, December 2002; it took the state until
senting SARS… [the list] has got to do with outstanding 29 July 2005 to produce an indictment.
Judge: You are getting paid by them. tax debts, and nothing else. The case was transferred from the
Ms Bennett raises things for a reason. But be that as it may, SARS must magistrate’s court to the high court in
That reason may well be that somehow satisfy Your Lordship as to why… 2006. The next ten years passed with
or another I may be compromised. How Judge: …(a) my tax affairs are in a few procedural applications and
did my name come up in the public order and (b) that at no stage have I endless postponements, most of them
domain? […] sought to compromise any tax issue requested by the state prosecutors.
Bennett: [The list] is an attachment between SARS and myself in any way The actual trial began on 5 September
to an affidavit I did, I think in 2007 other than an open way. 2016. Sixteen years down the line, the
or earlier, at the request of Advocate Ms Bennett, you will need to explain case is not nearly done. Noseweek has
Pikoli… why you did this in open court. launched a major investigation into the
Judge: Well, I am not sure I can Bennett: M’Lord? conduct of the case, and SARS’s role in
proceed with a matter of this nature Judge: Whether there is a motive to it. We will report fully in due course. n
if there is a suggestion …either some-
thing in my tax is compromised or not.
I need that clarified by Wednesday. As
Stent
far as I am concerned my tax is up to
date and at no stage have I ever been
in a situation where a figure of that
nature was ever an issue. Whether it is
false information that is being spread
or not, I need that sorted by Wednesday.
Coetzee: M’Lord, we will bring it to
SARS’s attention but with the limited
facts that I am aware of, that internal
SARS document was never meant for
public dissemination. It is a document
that was unlawfully obtained from
SARS’s records and attached…
Judge: It is in the public domain.
Coetzee: I am not disputing that
now.
Judge: Well then I need that thing
sorted out. I am not going to proceed in
a matter where SARS contends that I
at some stage owed them R3.5 million.
And that has not been resolved[…] Do
you not see what the potential is?
Coetzee: M’Lord if I could just
address you …
Judge: Yes, sure, but you can see how
upset it makes me now.
NOSEWEEK June 2018 9
10
Notes & Updates
If it smells of state capture...
B
E CAREFUL WHO YOU WORK FOR.
It took me almost four months,
and two rounds in the Small
Claims Court to get paid
R5,500 by Denel contractor
Yaha Designs for the editorial work
I did for the March edition of Denel’s
monthly newsletter.
Yaha Designs is a “PR media rela-
tions” company that Denel contracted
at the end of last year to produce their
newsletters, although it’s immediately
apparent from its website, www.yaha.
co.za, that their only real offering is
litho and digital printing, which in any
event, is outsourced.
Nomsa Humphrey and Prudence
Mnusi from Yaha Designs contacted
me in December, having been referred
to me by a newspaper colleague, to
edit and write for the December
edition of the Denel newsletter. The
deadline was ridiculously tight – three
days – and against my better judgment, including most of my ghost editorial for IF YOU RENT PROPERTY
I agreed to do it. Qinga. He also established that Yaha
My price was beaten down by Designs had already been paid R40,000 KEEP THIS NUMBER
Humphrey to a nominal R5,500 per by Denel for this newsletter. “The court
newsletter, and I managed to deliver all finds little difficulty finding in favour of I CAN HELP YOU WITH
Denel’s edited content in time, together
with the ghostwritten editorials for
the plaintiff,” said the commissioner.
Not to be kowtowed by a mere court
PROBLEM TENANTS
Denel Group CEO Zwelakhe Ntshepe ruling to pay me, however, Humphrey I CAN ASSIST YOU WITH THE
and for Vuyelwa Qinga, Denel’s group simply defied it. Thus I applied to the
executive of communications and public SCC for a warrant of execution, and
RENTAL HOUSING TRIBUNAL
affairs. The newsletter was published, also emailed Black Umbrellas, a PPP
“incubation” project to develop black
IF YOU DON’T NEED ME NOW,
and all was well, until work started for
the next newsletter. entrepreneurs. Yaha Designs is on their YOU WILL LATER
As before, I edited and delivered all programme.
content sent to me by Denel group’s I asked Black Umbrellas’ regional JOHN: 082 901 0824
internal communication specialist manager, Mzingaya Kahla, how its
Adelaide Rabotho, and ghostwrote incubatees are screened, and he
Qinga’s editorial. Ntshepe’s edito- responded: “We run a paid incubation
rial just needed editing this time. But programme where clients pay to utilise
on inquiring about the status of the our services. We run credit and criminal
newsletter, I was simply informed by checks on all our clients to ensure they
Humphrey that the “client doesn’t like are law-abiding citizens. We however do
the writing”, with no further explana- not form part of their business dealings
tion. In a phone call a few days later, I as they are independent entities and
was bluntly told by her sidekick Mnusi, we only provide them with business
that I would not be paid. support services.”
I lodged a complaint at the Small Nonetheless, Kahla called Humphrey
Claims Court, and at the second hearing and Mnusi asking them to explain them-
on April 18, the court commissioner was selves, and ten minutes later I received
presented with the published version of a notification of payment for the work I
the March newsletter. It didn’t take him did for them. Note to self: if it’s tainted
long to realise that my edited work had by state capture, even by extension,
been published virtually unchanged, don’t touch it! – Helen Grange
NOSEWEEK June 2018 11Dirty tricks to discredit me,
says key witness against Zuma
Forensic auditor claims that despite KPMG apology there is
good evidence that SARS rogue unit did exist
A
SENIOR FINANCIAL INVESTIGATOR thing, to get me out of the prosecution
lined up to be a key pros- of Zuma,” he told them. Van der Walt,
ecution witness in the state’s who resigned from KPMG in January
forthcoming corruption trial 2017, does not deny saying this, but
against former President refuses to repeat or elaborate on his
Jacob Zuma believes there is a politi- fears to Noseweek. He declines to be
cal campaign under way to discredit interviewed.
him and get him off the case. Zuma’s next appearance in Durban’s
The investigator is forensic auditor High Court is provisionally set for 8
Johan van der Walt, the highly- June. Van der Walt met state pros-
regarded former KPMG partner who ecutor Billy Downer last month to
led the 30-strong KPMG South Africa review the evidence against the
team which concluded that an illegal, former president.
covert and rogue intelligence unit had So what do we make of this new
operated within the South African Byzantine twist to the Zuma and
Revenue Service. SARS rogue unit stories? A review
Last September KPMG Inter- of the available evidence suggests
national sensationally ordered the that Van der Walt is in all probability
withdrawal of the report’s findings correct.
and conclusions and in the aftermath, His meeting with prosecutor
nine of the firm’s senior South African Downer came within days of the publi-
executives, including CEO Trevor cation of nose223, which recounted a
Hoole and head of forensics Herman host of covert intelligence operations
de Beer, were forced to resign. conducted by the so-called rogue
Van der Walt is also the author of unit outside the legal framework
an earlier 2005 KPMG report commis- and in violation of the SARS Code
sioned by the state into the nub of the of Conduct. Noseweek’s report was
pending case against Jacob Zuma – 783 based on SARS’s 2015 disciplinary
alleged payments to the former presi- charge sheets against two suspended
dent that were handled by Schabir employees, investigative unit manager
Shaik, the businessman who acted Johann van Loggerenberg and his
as Zuma’s financial adviser. Most of superior, Deputy Commissioner Ivan
these funds ultimately emanated from Pillay. Forensic auditor Johan van der Walt
foreign companies associated with the Both Pillay and Van Loggerenberg
arms deals concluded by the govern- resigned on the eve of their discipli-
ment in 1999. Zuma is accused of illic- nary hearings; Van Loggerenberg’s the contents in February 2015.
itly pocketing a total of R4,072,499 had been scheduled for 27 January Noseweek has been unable to estab-
from these payments. 2015, Pillay’s a month later, on 26 lish whether the charges against
Van der Walt has told friends that February – so the allegations in the Van Loggerenberg were also previ-
the ongoing rubbishing of his KPMG confidential charge sheets were never ously published. However, when he
report into the SARS unit is deliberate tested. The list of 10 charges against resigned, Van Loggerenberg and SARS
– and designed to discredit him as a Pillay was leaked at the time to the said in separate statements that the
prosecution witness. “It’s a political Sunday Independent, which splashed parting of the ways was amicable.
12“Van Loggerenberg has served SARS with sufficient budget to cater for all
for a period of over 16 years, a degree litigation”, ran Steven Motale’s story.
of loyalty SARS appreciates,” said the Confronted at the time, Gordhan
revenue service. denied playing any role in the book.
Van Loggerenberg’s statement said
that his resignation was done in good
Van der Walt has Pillay said: “I do not and did not have
contact with the author. I am not
faith and in the best interest of SARS aware of how the author got his infor-
and the country. Recent disclosures told friends that the mation.” Van Loggerenberg’s lawyer
by Van Loggerenberg about a confi- said his client considered allegations
dential “whistleblower’s” report he
compiled and submitted to his bosses ongoing rubbishing against him “false, malicious, spurious
and defamatory”.
(see Letters on page 6) suggest that According to the Sunday Indepen-
much more was at stake which both
parties preferred to keep under wraps. of his KPMG report dent, those who have so far instituted
legal action against Pauw for his
Some of the nine charges against book are former intelligence opera-
Van Loggerenberg, a one-time deep
cover spy – Agent RS536 – in the into the SARS unit tive George Darmanovich (who has
described Pauw as “a serial liar”) and
police’s Organised Crime Intelligence the family of State Security Agency
Unit, concerned his relationship with
Belinda Walter, an attorney and secret
is designed to Director-General Arthur Fraser.
In December 2015 the Press
agent of the State Security Agency, Ombudsman ordered The Sunday
who was chairperson of the Fair-Trade
Independent Tobacco Association.
discredit him as a Times to retract its repeated stories
suggesting that there had been an
“I acknowledge that I erred in illegally-established “rogue” unit at
personal judgment concerning a
matter in my private life and that
prosecution witness SARS, and to apologise to Pillay and
Van Loggerenberg.
this led to unforeseen consequences In his 92-page complaint to the
that were outside my control,” read Press Ombudsman, Van Loggerenberg
Van Loggerenberg’s public statement claimed that the investigation
issued at the time of his resignation. of journalism I have encountered in processes (against him) at SARS were
He apologised to SARS, its employees my life”. He insisted that “there was flawed and he had no opportunity to
and the country. nothing secret about the unit and put his side of the case.
The introduction to the nose223 members were treated like ordinary The ombudsman’s panel concluded
story described Van Loggerenberg as SARS personnel”. that The Sunday Times reportage
one of two architects of the special Why the vehemence? A journal- “has unnecessarily tarnished Van
investigative unit when it was formed ist’s sources are, of course, sacrosanct Loggerenberg’s dignity and reputa-
in 2007. Although his internal charge and in the normal course it would tion”. To rub it in, after publication
sheet states that he was involved in be improper to inquire where Pauw of The President’s Keepers last year
the management of covert intelligence picked up his inside information that Pauw publicly blasted Sunday Times
operations since “about April 2007”, vindicated Pillay, Van Loggerenberg & reporter Stephan Hofstatter on Radio
Van Loggerenberg only became head Co. When The President’s Keepers was 702 for “not checking his sources”.
of the controversial unit the following launched in Cape Town last December Pauw lives in Riebeek Kasteel in
year, when he took over from Andries the Sunday Independent reported that the Western Cape, where he runs a
“Skollie” Janse van Rensburg. Pauw had had no intention to write restaurant called the Red Tin Roof.
Especially incensed by our report the book until he was approached by Former spook Van Loggerenberg has
is Jacques Pauw, author of The an influential group led by former a house nearby and the pair are close.
President’s Keepers, who insists in his finance minister Pravin Gordhan. And Despite abject apologies by KPMG
recent book that there had never been the newspaper said that “impeccable to SARS and the refund of the R23m
a “rogue” unit in SARS. Pauw tells us sources” had told them the book came it received for its now-denigrated and
he has an interest because our report about after several meetings between “withdrawn” report, feelings still run
in nose223 “directly rebuts the facts Pauw and Gordhan, former intelli- high within the KPMG team that
in my book” [Pauw’s book was not at gence head Mo Shaik and, yes, Ivan conducted the audit. There is ample
issue; we simply published what was Pillay and Johann van Loggerenberg. convincing evidence, they say, in the
stated in the charge sheets, for better or “Sources say virtually all informa- 850,000 emails and 1.36m documents
for worse. – Ed.] tion regarding affairs at SARS was they scrutinised over 13 months, that
Ignoring the fact that the Noseweek provided by Gordhan, Pillay and Van SARS had indeed harboured an illegal
article merely lays out SARS’s 2015 Loggerenberg,” reported the news- spy unit.
internal charges against Pillay and paper. “The documents are all there, on
Van Loggerenberg, Pauw said our story When Pauw expressed concern at the machines at KPMG,” says one
was “riddled with factual mistakes” possible lawsuits, “he was given the team member, who has since left
and was “probably the worst piece assurance that he would be provided the firm. “Because of confidence and
NOSEWEEK June 2018 13privacy etc we weren’t allowed to take alleged ‘rogue’ unit had catastrophic
anything with us. But if there are legal consequences. Almost the entire top
processes we can get access to them,
on discovery.” Van der Walt urged executive at the revenue service was
purged as a result.”
Although the audit team leader The document records some of the
Johan van der Walt refuses to speak
to Noseweek, we have established that
a New York Times findings of the forensic report:
• “Under the guidance of Ivan
last month a reporter for the New York Pillay, a covert and rogue intelligence
Times called him, keen to unravel the
SARS rogue unit riddle. Nose223 had
journalist to read unit in contravention of the rule of law
was established in SARS.
just hit the streets and Van der Walt • “We found no evidence that
told the journalist he couldn’t oblige,
but urged him to read Noseweek’s
Noseweek’s article, [Pravin] Gordhan was informed about
the existence of the unit. However,
article, which he told the reporter is considering his position as Accounting
“one of the most accurate, in my view,
because it’s based on fact, as opposed
which he told the Officer, it is reasonable to expect that
he ought to have known. This aspect
reporter is ‘one of
to the rest of the press that is lopsided requires further investigation.
towards a narrative that my report • “The members of the ‘rogue’ unit
was used to fire people.” had exited SARS before the comple-
In recent developments, Auditor-
General Kimi Makwetu has ordered the most accurate, tion of the first draft KPMG report.
• “KPMG did not intend to provide
the termination of all government legal advice as that did not form part
contracts with KPMG. Sasfin and
Barclays Africa are among the host in my view, because of the scope of our agreement. It is
suggested that our recommendations,
of other clients who have abandoned insofar as it may be construed to be
the auditing giant. One member of the
KPMG team on the rogue unit project
it’s based on fact’ legal advice, be considered by the
SARS legal advisers.”
believes that the exodus and threat The confidential document points out
to the future of KPMG South Africa that KPMG International concluded
following the debacle is “unfair, but with regard to certain internal and that there had been inadequate risk
our leaders played the wrong game”. risk management processes, and oversight, and specifically that their
He said, “As opposed to doing their jobs partly to KPMG International not standards required a second partner
and the right thing, they apologised to having adequately reviewed the perti- to review the work done; however, the
people they didn’t owe an apology, and nent facts,” it begins. final “deliverable” was not subjected to
withdrew bits of the report that put The author points out: “None of second-partner review.
Pravin Gordhan in a bad light.” the factual findings contained in the Response: “The assignment was
A confidential note by one of the report have been withdrawn or called always on the agenda of the Risk
senior auditors involved lists their into question. And the factually inac- Oversight Committee. Initially its risk
bosses’ failings: “The so-called ‘with- curate narrative regarding the SARS rating was a 1. During the course of
drawal’ of aspects of the SARS report investigation continues to do the the assignment JvdW (Johan van der
by KPMG International seem to relate rounds in the media.” The document Walt) raised this to a 3, due to the
to differences in approach between quotes from a piece in Daily Maverick: contentious subject matter.
KPMG SA and KPMG International “After all, the KPMG report into an “The SARS report was the subject of
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14Noseweek
is read
by 40,000
people each
Former SARS investigator Johann van Loggerenberg
Risk Oversight Meetings and was inter-
nally reviewed by senior KPMG part-
ners independent from the investigation
resulted in the dismissal of senior SARS
officials;
• Failing to challenge the legitimacy/
month.
on an on-going basis. A second reviewing authenticity of the “leaked” executive
partner (head of forensics Herman summary;
de Beer) was formally appointed. The • For falsely alleging that no second
reports were made available to De Beer, partner reviewer was appointed and
and after required changes had been that the report was not subject to risk
discussed these were signed off by him. oversight;
KPMG, including the then CEO, Trevor • For falsely alleging that the
Hoole, publicly defended the report.” increased risks had not been appreci-
The document points out that on ated, when the risk rating of the project
completion, the project was subjected to had in fact been raised;
a Quality Performance Review overseen • For falsely alleging that inappro-
by a non-local reviewing partner and priate legal opinions had been provided
reviewed both as regards content and and made no reference to the report’s
process. specific disclaimers and caveats in the
“The project received a Green review report;
rating. A Green QPR rating would not • For stating in the context of the
have been possible if there had not been SARS report, that JvdW (Johan van
an adequate second partner review and/ der Walt) was “no longer with the firm”,
or other risk management shortcom-
ings.”
The author hits back at KPMG SA
thereby intentionally creating the
impression that his resignation (on 10
January 2017) was related to the report;
To advertise
and KPMG International’s joint “desire • For meeting/apologising to then
to undermine its auditors’ report and finance minister Gordhan, deputy
factual findings” by:
• Failing to refute the “cut and paste”
minister Mcebisi Jonas and senior
SARS ex-officials, given that the report contact Nicci
allegations regarding the draft report did not implicate Gordhan or Jonas in
and to refute that its findings were the activities of the rogue unit and the
dictated by the SARS lawyers; officials resigned of their own accord
• Failing to refute allegations that
its team’s report found complicity on
before KPMG produced any findings.
l Readers can find the full 2015 SARS
021 686 0570.
the part of, and thereby compromising, disciplinary charge sheets against Pillay
Minister Gordhan; and Van Loggerenberg on Noseweek’s
• Failing to refute that the report website. n
NOSEWEEK June 2018 15The Crocodile’s
QwaQwa kerfuffle
Cadiz chairman calls Investec CEO a thief and QwaQwa k****r
for allegedly misappropriating shares worth R46m. Investec man
counters, claiming his Cadiz colleague stole R1.9m dividend and
charges him with crimen injuria. By Jonathan Erasmus
I
NVESTEC’S NEWLY MINTED CEO, FANI
Titi is being accused by a former
Robben Island political prisoner
of scamming him out of his lucra-
tive multi-million-rand shares in
three thriving FM radio stations.
So bitter is the dispute between the
Investec boss and his old struggle-
veteran friend Peter-Paul Ngwenya –
who is today an influential company
director – that it has found its way
into the Randburg criminal court
where legal history, regardless of the
findings, will be made in a case of
crimen injuria (criminal libel).
Fani Titi is reportedly one of the
most searched people on Bloomberg.
The FM called him “a corporate
kingpin with a Midas touch” .
Ngwenya, who is described as
“a sophisticated businessman,” is
chairman/director of Cadiz Asset
Management, Cadiz Corporate
Solutions, Airlink Ltd, Alumicor
SA, Realm Resources and Hulamin
Limited. If he is found guilty, it would
be the first case of a black man being
convicted for using an actionable
racist word against a fellow black Cadiz’s Peter-Paul Ngwenya (left) and Investec’s Fani Titi
man. Judgment in the case is expected
in June.
So committed is the new Investec Congress of the People (Cope) leader You chose a wrong Bantustan man
boss Titi to getting a conviction that Mosiuoa Lekota. How it got to this is, (meaning Titi). He misled you. You
he has employed advocate Barry Roux on the surface, straightforward. On 22 will bleed you are a bloody SWINE!
SC to be on a watching brief. June 2016 Ngwenya mistakenly sent Sue me, I will appreciate it. He is as
Ngwenya, whose name means an SMS to his friend Titi instead of greedy as you. You are a fool to be
crocodile in Zulu, and Titi have been the intended recipient, Titi’s second- used by a Qwaqwa k***** [Noseweek’s
friends for 20 years, having met in-charge Aqueel Patel. It read: asterisks]. You bloody GREEDY racis!
through their common acquaintance, “You bloody swine of a racist. You will very soon know what you
16are dealing with. I call you a FART!
You have to have an MAKANA Radio
board meeting. You Bantustan boss
Is it a crime for a black person to use the k-word?
tells me to challenge him and he will
see his MOTHER! You are FUCKING IT WOULD BE A LEGAL FIRST IF THE with under the crimen injuria law.
THIEVES! SUE ME! (all sic.)” Randburg Magistrate’s Court were According to the Wits Justice
Titi applied for an interim protec- to convict Peter-Paul Ngwenya of Project “crimen injuria refers to
tion order in July 2016 and obtained crimen injuria for sending an SMS a deliberate injury to another’s
the final protection order against to his estranged business partner dignity by using racially offensive
Ngwenya in October that year. Titi Investic CEO Fani Titi, calling him or obscene language or gestures”.
had painstakingly pointed out that a “Qwaqwa k****r”. South African law technically
“the plural FUCKING THIEVES” was Use of the k-word is not illegal knows no colour, but context is key.
in reference to both him and Patel and but it is categorised as hate speech. Ngwenya intended to be offensive
the reference to his late mother was a The first legal question is: can it be towards Titi. So the second legal
death threat. He admitted it all had to deemed hate speech if uttered by question is; was he being racist?
do with a “commercial dispute”. one black person to another? The judgment will be signifi-
Noticeably, in the protection order South Africa’s proposed hate cant. Legal history was made in
application the “Qwaqwa” part was speech bill (nose208), would have March when Vicki Momberg was
merely mentioned in passing. He seen Ngwenya go to jail. So draco- sentenced to an effective two years
sought the protection order in view nian is the proposed bill, that in prison for verbally abusing a
of the “deadly attack threatened… merely calling someone a mompara black police officer and some call-
[which] can take place at any time and could land you behind bars. centre agents by using the k-word
at any place, including my home”. Currently hate speech is dealt a total of 48 times. n
Ngwenya broke the protection order
when he stormed into Titi’s private
office in Sandhurst on 23 November making him an influential partner.
2016 demanding a dividend be paid It was correctly presumed that
to him. This resulted in the crim- Titi, with his connections to Investec,
inal charges being brought in the would help provide the finance too.
Randburg Magistrate’s Court. The plan was that they would split the
But the back story to all of this is stake on offer in Makana Radio, using
contained in several hundred docu- two special purpose vehicles (SPVs),
ments first filed at the South Gauteng namely Alphabet Street Properties
High Court, Johannesburg, in August 98 (Pty) Ltd – controlled by Titi – and
2017, when a civil case was opened by Columbia Media (Pty) Ltd – controlled
Titi and associates against Ngwenya. by Ngwenya. They would do a similar
The reams of documents have been transaction in acquiring the 50.1%
copied by Noseweek. No court date has stake in Shanike and both deals
yet been set. would become known as the Alphabet
In 2008 Ngwenya was chairman of Agreement and Shanike Agreement
the Makana Investment Corporation respectively.
(MIC) which was set up to help Because of his conflict-of-interest,
former political prisoners – and in being chairman of MIC, Ngwenya left
which he has extensive interests in a the negotiation up to Titi who in turn
range of businesses from shipping to delegated much of the work to his
asset-management. Early that year lawyer, Zoe Banchetti, of Tugendhaft
Ngwenya got inside knowledge that Mosiuoa Lekota Wapnick Banchetti and Partners, who
the investment corporation wanted helped set up the two SPVs.
to sell its stake in two communication Ngwenya thought she (Banchetti)
assets. The first was its 33.3% share in radio stations in the country. represented both of them, while Titi
Makana Radio Communication (Pty) Ngwenya approached Titi to see if saw her as his legal aide. Ngwenya
Ltd which owned Heart FM (Cape he wanted to come on board as a 50/50 was of the belief that the deal was
Town) and iGagasi FM (Durban); partner in purchasing these assets. concluded on 3 April 2008 at a price
the second was its 50.1% stake in a Titi already owned 33.3% of Makana of R48.8 million, of which R32.6m was
company called Shanike Investments Radio through his own company, Tsiya raised through a loan from Investec.
42 Corporation (Pty) Ltd, referred to Radio (Pty) Ltd, while his business The remaining R16.2m had to be
as Shanike, which, among its various partner Aqueel Patel held a further raised by both Ngwenya and Titi, split
communication assets, owned a 8.4% on his behalf. The other share- down the middle.
24.9% stake in Johannesburg’s Kaya holder was Kagiso Media (Pty) Ltd Ngwenya, through Columbia Media,
FM which, incidentally, in 2016 was with 24.9%. Titi had once served as the borrowed the R8.1m directly from Titi
among the top ten most profitable founding Chief Executive of Kagiso, at an interest rate of 20% per annum.
NOSEWEEK June 2018 17According to Ngwenya, the deal dend paid by Makana Radio. going on and was in fact getting legal
was done and dusted. From time to He started asking questions such as advice all along from the Makana
time either Titi or Banchetti would where his cut was. As far as he was Investment Corporation’s company
send over a driver with documents concerned all debts were settled, as he secretary John Nassel-Henderson –
for him to sign – which Ngwenya duly had received a dividend in December which Ngwenya also denies.
did without reading them, while the 2013. He claims he then found out After a series of meetings, email
driver waited. Ngwenya believed he’d that he was a shareholder of Tsiya exchanges and swopping of legal docu-
landed a sweet deal, owning consid- Radio and that the company had sold ments in mid-2015, Titi said, all trans-
erable stakes in several lucrative, its stake in Kaya FM for about R62m actions were “properly authorised and
predominately black-owned radio in 2011. He said he also found out he legally executed”.
stations. He thought he owned 16.67% no longer owned 100% of Columbia “Columbia chose not to participate
each in iGagasi FM and Heart FM Media. He asked more questions, such in the rights issue and Columbia and
and 12.5% in Kaya FM. as: why wasn’t he invited to Tsiya Ngwenya consented to these commer-
However, the documents he signed – shareholder meetings; why wasn’t cial arrangements. It was unam-
and this is key to both Titi’s civil and he a director at Tsiya; where was biguously clear... that Ngwenya’s
criminal cases – tell a different story. his shareholder certificate; and why [claim that his] economic interest in
According to Titi the initial Alphabet didn’t he get his 25% cut in the sale Columbia was illegally diluted, holds
Agreement did not work because of Kaya FM? no merit.”
Kagiso Media exercised its right to The reason he did not get a portion Titi said he and the other share-
block the deal – although, according to of the R7m, it was now explained, was holders were prepared to sell back
Ngwenya, they had no reason to do so because it was used to pay debt. And their equity in Columbia Media to
as they could not buy the remaining he now learned that the December Ngwenya for R4.8m.
stake in Makana Radio due to compe- 2013 dividend he received was in fact Ngwenya told Noseweek: “Titi told
tition laws. not a dividend but a reimbursement of me about the rights issue in Tsiya but
So Titi’s lawyer Banchetti devised an advance he made to Tsiya Radio – a I just thought I was being told that
a new “elegant” plan. Instead of claim Ngwenya emphatically denied. I had an option. At that stage I was
Alphabet and Columbia buying the The claims of being bamboozled oblivious to the fact that I, through
Makana Radio stake, Tsiya Radio, have been rubbished by Titi who said Columbia, was a shareholder in Tsiya.
which was already a part-owner of Ngwenya knew exactly what was In his court papers Ngwenya said:
the asset, would buy it instead and “There is no conceivable way that, in
Columbia would have a 24.5% share- addition to the high loan premium
holding in Tsiya Radio. The Shanike [R8.1m at 20% per annum backed by
Agreement was also altered to allow solid assets in which Titi already had
Tsiya to hold the 50.1% in Shanike. his own interest via Tsiya] I would
Ngwenya claims he knew nothing
about these transactions although he After the racist give away 49% of the equity in my
company”. He added that the provi-
signed the documents. sions to hand over equity, outlined in
Key to Ngwenya’s gripe is that Titi
and Banchetti embarked on a clandes- SMS rant, Lekota the signed agreements, were “secreted
in by Banchetti”.
tine process to dilute his stake in the At one stage Titi, realising they
radio assets by misleading him from
as early as April 2008. tried to mediate, were at an impasse, recommended
the appointment of a forensic auditor
In Titi’s version, Columbia Media and a senior counsel or retired judge
not only took an R8.1m loan from him
but also handed him a 49% equity
with little success, to review all legal arrangements. He
suggested advocate Vincent Maleka
stake which he later sold parts of to or retired judge Lewis Skweyiya (now
other shareholders between 2011 and
2014, for which Banchetti issued the
except that it was deceased).
He also said the entire issue was so
share certificates. sour that he was thinking of getting
A further dilution of shares took
place in 2013 when Tsiya Radio raised
decided Ngwenya out of the investment completely.
None of this happened.
a further R21m through a rights issue Despite all the drama, dividends
picked up by both Titi and Patel’s would propose a kept rolling in to Columbia Media –
at least half a dozen (although some
families, while Titi also sold an 8.5%
stake of Tsiya to Banchetti for R5.2m.
The net result was that Ngwenya settlement offer are disputed) between 2013 and
November 2016. In total it came to
now owned only 8.35% of Tsiya Radio. more than R3.5m.
What sparked his renewed interest Makana Radio administration staff
in the asset in which he had been an made all the payments knowingly to
idle partner was when in February Ngwenya’s personal FNB account. He
2015 he became aware of a R7m divi- claims he was never contacted by Titi
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