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Sibongile Khumalo
Tony Gupta, a member of the controversial politically connected family who had close ties to former President Jacob Zuma, in 2011 demanded that a large share of Transnet’s marketing budget be directed to the family’s companies during a meeting with Mafika Mkwanazi, the former chairperson of the state-owned entity.
Mkwanazi was giving evidence before the Commission of Inquiry into State Capture on Friday, where he detailed a meeting he had with Tony Gupta at the family’s Saxonwold home. He said Tony had told him during the telephonic invitation that Mwkanazi’s mobile number was given to him by Malusi Gigaba, the former minister of public enterprises.
The meeting in January 2011 took place following Mkwanazi’s appointment in December as 2010 as Transnet acting chief executive, where Tony boasted about the family’s friendship with the president.
He told the commission, led by Deputy Chief Justice Raymond Zondo, that Tony had indicated that he was aware Transnet had a R1 billion marketing budget, and demanded that 30 – 50 percent of it be directed to The New Age, a now-defunct newspaper run by the family.
Mkwanazi said:
“They made me aware that they were friends with President Zuma and that Transnet has a marketing budget of R1 billion. I am not sure where they got that from, and wanted to be allocated 30 – 50 percent of that budget.”
Zuma’s son, Duduzane, who was a business associate of the family, was also present during the meeting but did not speak, he said.
Mkwanazi described the claim of a R1 billion marketing budget as as “thumb suck” and allegedly informed the duo to go through appropriate procurement channels used by the entity for services.
‘They began to denigrate my president’
He said Tony described the family’s close ties with the former president, whom he claimed paid them social visits at least once a week and sang his signature song ‘Umshini Wami’.
“The meeting did not end well…I felt that they began to denigrate my president. They were waving the flag of their friendship with the president and I was terribly annoyed.”
“I could see that they had no clue on how business works, they thought Transnet was operated like a spaza shop…and they could ask for money,” he said.
Mkwanazi, who was giving evidence virtually, stated that his follow-up meeting with Tony took place in the presence of Gigaba’s advisor, Siyabonga Mahlangu, whom he has asked to accompany him as his witness. The commission also heard that following the unfruitful meeting at the Gupta compound, there had been attempts by Gigaba to have him replaced as chairperson of Transnet.
The name of Iqbal Sharma – ex-director general of the department of trade and industry and former business partner to Gupta associate Salim Essa – was suggested as a possible replacement.
Evidence relating to the influence of the controversial business family over the operations of state-owned agencies has dominated the State Capture Commission since its inception in August 2018. Mkwanazi, who also served as the Eskom board, spoke of a R43 million contract between the New Age and Eskom to sponsor the paper’s breakfast briefings.
The contract had no exit clause and was later deemed irregular. news24.com
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