Chief Justice and State Capture Commission Chairperson, Raymond Zondo has recommended that law enforcement agencies look into the role played by former director-general of State Security Agency (SSA), Arthur Fraser, in the handling of money at the SSA.
Fraser is implicated together with former State Security Minister, David Mahlobo and Ambassador Thulani Dlomo in the withdrawal, handling and distribution of large sums of money from the SSA.
Zondo officially handed over Parts Five and Six of the State Capture Report to President Cyril Ramaphosa on Wednesday.
According to the report, budgetary allocations increased from about R42 million in the 2016/2017 financial year to over R300 million in the 2017/2018 financial year, with R225 million allegedly used for covert operations within Fraser’s office.
This, while R125 million remained unaccounted for by Fraser.
He also recommends a tightening of financial controls and the recovery of the monies lost.
The report also suggests that more access be granted to the Inspector General of Intelligence.
Zondo further recommends that Fraser, be investigated following evidence found by an internal investigation of the SSA, that criminal activity had occurred in a project he launched.
The project known as the Principal Agency Network (PAN) was launched when Fraser was still SSA deputy director-general of operations.
PAN was found to have been an illegal parallel intelligence structure which was suspended in 2011.
Further investigation into Fraser by the Special Investigations Unit (SIU) and National Prosecuting Authority (NPA), was stopped by by former President Jacob Zuma on the grounds that it would compromise the security of the state.
According to the report, SSA heads Gibson Njenje, Mo Shaik and Mzuvukile Maqetuka testified that there was no accountability on the part of Fraser with regards to the running of the PAN including irregular acquisitions of properties, vehicles, employment of people and abuse of funds.
Njenje also denied that the prosecution of Fraser would not have compromised national security.
Further allegations of abuse of power were levelled against Fraser when he was appointed director-general in 2009 including the centralisation of power within his office, an amount of R125 million remaining unaccounted for and the involvement of the SSA in factional battles of the ANC.
Fraser did not present his version of events to the Commission.
The video below is the handover ceremony:
President thanks Zondo
President Ramaphosa says state capture must never be allowed to happen in South Africa again.
Ramaphosa says,” The work of this Commission is a vital part in our efforts to deal with state capture. The report is far more than a record of widespread corruption, fraud and abuse. It is also an instrument through which the country can work to ensure that such events such as state capture never ever happens again.”
The President says through the Commission, South Africa has come to understand the devastating effects of state capture on the economy and society.
Ramaphosa adds that South Africa owes a great debt of gratitude to Justice Zondo.-Additional reporting by Zoleka Qodashe
The video below discusses the significance of the final report: