The state capture inquiry has previously heard that the Gupta operation employed gang members and relied on pre-existing and separate criminal networks. Paul Holden of London-based Shadow World Investigations continues to testify about money transfers before the inquiry.
Holden brought up the 2017 assassination of “Steroid King” Brian Wainstein to point out that suspects in the case, such as Mathew Breedt and his brother Sheldon Breedt, were Gupta associates. This, according to Holden, emphasized the Gupta enterprise's criminality.
“It is concerning that cash originating from taxpayers were ultimately transited out of South Africa via this organized crime network,” Holden added.
Mike Mabuyakhulu, the former KwaZulu-Natal ANC treasurer, has told the state capture inquiry that he told his party's attorneys that he did receive an R1 million cash payment from Sipho Shabalala.
Mabuyakhulu reappeared to the Zondo Commission, where he testified in response to an affidavit from Ngubane and Wills Incorporated's Sibusisiwe Ngubane-Zulu.
“I confirm that I got that donation, and I confirm that it was in cash. He added, "I actually received that money from Mr Shabalala."
According to forensic expert Trevor White, the KwaZulu-Natal government allegedly bypassed procurement processes in order to favor Intaka, a company owned by industrialist Gaston Savoy, who allegedly donated R1 million to the ANC in KZN.
According to Mabuyakhulu's version, the ANC donation – which he received in cash from then-KZN provincial treasury head Shabalala in 2008 – had nothing to do with Intaka.
The Zondo Commission has asked Holden to detail how the four laundry networks revealed in his study functioned at the highest level. The laundries were "very intricate," according to Holden, but there was a pattern to how they worked.
According to Holden's evidence, there was a first-level "laundry vehicle" company that received payments from state contractors at the very top level. The cash were then transferred to an intermediary account, or "high-level laundry vehicle," according to Holden.
The money was moved through the money-laundering network after being paid into that account by a number of different first-level laundry businesses. They were frequently forwarded on to a third party, which consolidated the monies and then made the transfers again.
“We have been able to follow the funds flowing on to some sort of endpoint in the majority of cases where we have been able to trace the funds flowing on to some sort of endpoint, the funds generally end up offshore,” he said. In his report, Holden referred to this as a "onshore/offshore bridge."
An onshore/offshore bridge is a corporation that takes and combines payments from this laundry network before sending them overseas to a large international network.
The vast bulk of monies detected in this network are routed through the Hong Kong/China laundry network, according to Holden.
Hundreds of firms registered in the Hong Kong/China laundry network allegedly received money from state capture and then allegedly disbursed it to a "eventual intended recipient," according to him.
Gupta associate Salim Essa owned Hong Kong entities that collected bribes from China North Rail and China South Rail, according to Holden's testimony.
During the years of state capture, billions of rand were siphoned from the state and into Gupta-linked businesses, according to Holden's evidence. According to prior testimony by Holden, the Gupta company earned almost R16 billion of the R49 billion spent by state entities in expenditure tainted by state capture.
He also denied having discussed Mabuyakhulu with Sibusisiwe Ngubane-Zulu of Ngubane and Wills Inc, who was related to Savoy.
In her affidavit, Ngubane-Zulu stated that she was told the money was donated by Savoy by Mabuyakhulu, but in her testimony at the inquiry on Monday, she backtracked and stated that she wasn't sure if Mabuyakhulu or former ANC financial manager in KwaZulu-Natal, Delani Mzila, told her about the donation link to Savoy.
Despite consulting with her law company on a police probe into the controversial donation, Mabuyakhulu stated he had no knowledge of meeting or speaking with Ngubane-Zulu.
Ngubane-Zulu gave evidence. Mzila was called as a deponent in the case, which Mabuyakhule denied being a part of, claiming he couldn't tell an attorney to submit an affidavit on behalf of someone he didn't know.
“As I previously stated, I have no recollection of meeting Ms Ngubane-Zulu. What is true is that when I was made aware of the investigation, I met with Mr John Mills (Ngubane-business Zulu's partner) at some time.
Mabuyakhulu also said he couldn't remember if KZN ANC heavyweight Senzo Mchunu set up the meeting with Ngubane-law Zulu's company. “I don't recall who contacted me, but Mr Mchunu was definitely present.”
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