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Nkandla Highway / Freeway Corruption Potentially
Exposed...
Much has been said, fought and argued over the funding of the R250 million 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 R1.5 billion, so this is no small chunk of change. 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 they uncovered:
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 R1.5 billion, so this is no small chunk of change. 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 they 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.
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. Its only director is Moeti Mpuru, who claims to have secured the funding of R1.5 bn 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.
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.
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.
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 R1 million loan to fund a small portion of the project, managed in just a few months to secure R1.5 billion in funding for a project that will see absolutely no return on investment.
It is a straight R1.5 billion 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.
It is a straight R1.5 billion 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 the 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 R1.5 billion spare to either flush down the toilet, or will be managing R1.5 billion worth of angel investor cash, from Unit 2, Chianti Estate in Sunninghill, a residential complex that does not have business rights for its units.
This is a tiny, 60 sqm residential unit - not an office park, or the premises you'd expect for a company with R1.5 billion 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 onbehalf of the Human Settlements Department. They also manage inter-departmental projects.
So 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.
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 onbehalf of the Human Settlements Department. They also manage inter-departmental projects.
So 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.
What does this mean?
Well it means that Zuma's R250 million 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. 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.
Well it means that Zuma's R250 million 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. 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.
Though it makes perfect sense when you add a corruption element to the mix. 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 laundered the cash offshore to make it appear as if the cash was from an angel investor, and would not be subject to disclosure to the public.
Though it makes perfect sense when you add a corruption element to the mix. 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 laundered the cash offshore 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. Then with the intention to hand the entire road over to Public Works upon completion.
And that is because this is ridiculous. It looks remarkably like the SANIP (South African National Industrial Participation company) with SAAB and BAE, where Fana Hlongwane processed the bribe payments for the arms deal.
And that is because this is ridiculous. It looks remarkably like the SANIP (South African National Industrial Participation company) with SAAB and BAE, where Fana Hlongwane processed 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 R1.5 billion 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.
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.
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.
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.
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...
All it needs for evil to thrive is for good people to do nothing
It's high time this sort of presidentially-supported corruption is put to bed, once and for all...
All it needs for evil to thrive is for good people to do nothing
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