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Friends and backpockets

22 Nov

 

In the on-going saga in South Africa of our esteemed President Jacob Zuma it is strange how certain names just keep cropping up.

With the furore being caused by the upgrading of Nkandla (Jacob Zuma’s home) to the tune of R200 million of which he says he will be paying 20% (R4m for those who don’t automatically do calculations), it is strange how certain people who were mentioned in court records during the weapons procurement corruption trial just seem to have track records lately which makes one wonder if the President of South Africa needs to be friends with them?

1)   Nora Fakude-Nkuna

 

 

 

 

 

 

It seems that Fakude-Nkuna left the economic development agency in 2007 under a cloud, but was later offered a position as board member, which she refused on grounds that she was too busy. Is it just here in SA that you can leave a senior position under a cloud, yet be offered a higher position later on? I know the normal thing is to transfer the person with a promotion, to some other department.  Some of our overseas diplomatic posts have been filled like this.

Anyway I digress.

Seems that Fakude-Nkuna had granted a company, Interstate Clearing, a loan of R1,4 million. Now Interstate Clearing trades under the name of Bohlabela Wheels, a company of which she was a director. Now if this isn’t a clash of interests I don’t know what is! Anyway the loan WAS WRITTEN OFF AND NO ACTION TAKEN AGAINST HER!

Now as I previously blogged about having friends in influential places, it would seem that Ms. Fakude-Nkuna has over the years had a “personal” relationship with President Jacob Zuma, as reported in 2003 in the Mail and Guardian.   It is reported that Zuma stayed at Fakude-Nkuna’s home when he was on ANC business in Mpumalanga.

Back to Bohlabela Wheels: During the arms trail Zuma was asked if he had received any benefits from Bohlabela Wheels. Now we know that R140,000 was given a construction company doing some building at Nkandla. Wonder if this was part of the R1,4 million loan given to Interstate Clearing, and then written off by the province with no claim against Fakude-Nkuna?

2) Vivian Reddy

 

 

 

 

 

 

Businessman Vivian Reddy, posing here with his Bentley, faces some tough decisions ahead of the possible liquidation of his company which reportedly owes R80 million.

In the “I have a bond”, “No you don’t have a bond” saga surrounding President Jacob Zuma it came to light that businessman Vivian Reddy had signed surety for R400,000 for a loan and had been paying the repayments during 2003 and 2004. I wonder if this is tax deductable?

From all accounts Reddy has funded various ANC politicians and is hereby politically very well connected. It seems that Reddy has in the past had “successful relationship” with Eskom and various municipalities in South Africa. His contacts have undoubtedly smoothed the way for many tenders and contracts going to his Edison Group (Edison Jehamo Power) which was recently renamed EJ Power.

Now is seems as if EJ Power is under threat of liquidation.

Durban North branch of FNB has frozen all the companies bank accounts. (As far as I know the Edison Group works from Gauteng so why accounts in another province?)

One of the founding directors of EJ Power, Russell Broadhead, also is director of another company. See further on.

The directors of Gauteng-based Edison Jehamo Power – recently renamed EJ Power – say they have a serious cash flow problem and that the bank has called in the company’s overdraft facilities, “freezing” all its bank accounts held at the Durban North branch of First National Bank.

But they are attempting to stave off several winding up applications with a proposal that the company be placed under “supervision” and be allowed to trade its way out of trouble.

Reddy – controversial for his funding of ANC politicians, including President Jacob Zuma, and for the government deals his Edison group of companies have scored – founded EJ Power in 2005 with project manager Russell Broadhead. Now that the company is heading for financial trouble it seems as if Reddy has resigned as a director. His son Shantan seems to have moved into Vivian Reddy’s previous position.

Now after some serious musing on my side it seems to me that Vivian Reddy is pulling a fast one.

There are various companies which have applied for the winding up of the company due to non-payment. It is alleged that EJ Powers had been paid by Eskom and various municipalities for work done, and that they had not paid the monies over to their sub-contractors.

(Sounds like a case of the company who installed the ducting in Soccer City for the World Cup not being paid for their work by the company who had won the contract – BEE and all that…)

When the matter of liquidating EJ Power was supposed to go to court (which EJ Power had not filed full opposing papers for) it seems that suddenly out of the woodwork,  two directors of EJ Power, Broadhead and Wilkinson, asked the Johannesburg High Court in the name of another company, Power Network Contractors, to place the firm under “business rescue”. Seems as if both Wilkinson and Broadhead are directors of Power Network Contractors, and that they actually own a 33.3 % of EJ Power.

Now this all seems to be very suspicious to me. We have companies who are preferred providers due to their political affiliations. Directors of one company being directors of another company which seems to be “ letting”  equipment back to the other company. To a normal person in the street it would seem as if they are just moving monopoly money around to cover any possible wrongdoings, and doing it with impunity due to who they know.

Just some random musings.

 

 
3 Comments

Posted by on 22/11/2012 in Uncategorized

 

3 responses to “Friends and backpockets

  1. 68ghia

    22/11/2012 at 11:35

    A mess on a good day.

     
  2. Pussycat44

    22/11/2012 at 13:26

    The Peter and Paul syndrome, if you ask me.

     
  3. Leanne Cole

    22/11/2012 at 20:25

    We see so much of the same thing happening here. Seems you get into politics. and you are free to do everything you like for your friends and bugger the country.

     

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