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'There was indeed State capture': Private sector will help with prosecutions – Ramaphosa

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'There was indeed State capture': Private sector will help with prosecutions – Ramaphosa

President Cyril Ramaphosa
President Cyril Ramaphosa

11th February 2022

By: News24Wire

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President Cyril Ramaphosa says the private sector will help investigate cases emanating from the State Capture Commission of Inquiry.

During his sixth State of the Nation Address on Thursday, Ramaphosa said special court rolls were on the cards to deal with rampant corruption speedily.

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He told MPs he would respond to the committee's report by the end of June. 

Ramaphosa vowed the government would act on the recommendation to protect whistleblowers, saying officials were doing a comparative study to see what other countries were doing in this regard.

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He added law enforcement agencies would act immediately to safeguard whistleblowers.

"State capture has weakened the ability of the state to deliver services. Companies involved in State capture, as named in the report, should face the law," Ramaphosa said.

The National Prosecuting Authority (NPA) and Hawks have teamed up to investigate cases emanating from the recommendations of acting Chief Justice Raymond Zondo's report. 

Zondo has recommended that the NPA and other law enforcement agencies should carry out further investigations with a view to prosecuting nearly 20 individuals for alleged corrupt activities.

"We have gratefully acknowledged the offer of support from the private sector to assist in providing those skills which we lack in government to enable investigation and prosecution of crime.

"To ensure that the prosecuting authority remains true to its constitutional obligation and to ensure transparency, we are developing a framework for private sector co-operation that will be managed through National Treasury," Ramaphosa said.

He noted while he would respond to the report by the end of June, it was now definitive that State capture took place. 

"While the definitive conclusion has yet to be delivered at the end of this month, the first two parts of the report make it plain that there was indeed State capture.

"This means that public institutions and state-owned enterprises were infiltrated by a criminal network intent on looting public money for private gain," Ramaphosa said. 

In the second volume of the state capture report, Zondo found massive corruption at state-owned enterprises Transnet and Denel between 2010 and 2018, and referred the matter to the police for further investigation, professional discipline, and prosecution.

In the report, released earlier this month, Zondo found there was a systematic scheme of securing illicit and corrupt control over Transnet and Denel for the benefit of the Gupta family and their associates.

According to the report, the rail and freight operator introduced a new business model, called the market demand strategy, which was spearheaded by former Transnet executives Anoj Singh and Brian Molefe.

Singh was the chief financial officer of Transnet at the time, while Molefe was its CEO.

The report recommended that law enforcement authorities should investigate whether Molefe, Singh and former Transnet Freight Rail CEO Siyabonga Gama could be prosecuted for fraud over the purchase of 1 064 locomotives in March 2014.

Transnet contracts worth R41.2-billion were illegally awarded between 2011 and 2016, amounting to 72.21% of the total payments for contracts affected by State capture.

The first report was released late last year and mainly dealt with malfeasance at South African Airways.

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