The relationship between the Gupta family and former president Jacob Zuma came under further scrutiny at the state-capture inquiry on Tuesday when two former intelligence bosses took the stand.
Riaz “Mo” Shaik, a former State Security Agency (SSA) director, and Gibson Njenje, another director at the SSA, described how Gupta family members capitalised on their relationship with Zuma, using his name to strong arm their way into lucrative deals while he allegedly shielded them from investigations by the country’s intelligence agency.
Shaik said he believed Zuma could not separate his personal relationship with the Gupta family from his responsibilities as president.
“As someone who has known the president for an extremely long period of time, I know that when he does make up his mind on a matter it is often difficult to shift that mindset. I think he was being very loyal to the friendship he had with the Gupta family,” said Shaik.
Shaik said he believed at the time that if they had continued the investigation, their jobs would be on the line. “It was not a justifiable approach; the president could not separate his personal relationship from his responsibility as head of state, particularly with the advice given by his heads of intelligence. He was not fully cognisant of his responsibility and his constitutional responsibility,” he added.
Njenje detailed a series of meetings with Gugu Mtshali (the wife of former president Kgalema Motlanthe); former Mineworkers Investment Company chair Archie Luhlabo; and Ajay Gupta back in 2010 — less than a year after he joined the SSA.
He recalled receiving a call from Luhlabo, inviting him to an “urgent” meeting in Sandton. Njenje drove to Motlanthe’s home where he met Luhlabo and Mtshali — who were directors at mining company Imperial Crown Trading (ICT) at the time. Their company was in the process of acquiring a 21.4% stake in the Kumba Iron Ore Sishen mine operation, previously held by mining giant ArcelorMittal.
“[Mtshali and Luhlabo] were fuming. They informed me they had just been to a meeting. They said that they were called to Saxonwold by Ajay and [Gupta] told them that he wants 90% of ICT. They must give him 90% of ICT because he is the only person who has the financial muscle and the political backing to get the award [of prospecting rights] granted,” Njenje told the commission.
Njenje said the pair requested that he mediate a meeting between them and Gupta. Describing that meeting, Njenje said Gupta had “demanded” a 90% stake of ICT — without paying a cent — for the use of his influence to secure the mining rights. “In exchange, through his influence and his financial backing, he would assist in overcoming ongoing litigation at the time ...[Gupta] said they would secure the rights with the help of Zuma.”
Eventually, they agreed that the Gupta-linked JIC Mining Services would acquire 50% of ICT free of charge, but Njenje met Gupta a second time a “few weeks later”. This time, it was at Njenje’s request because he was worried about the influence of the Gupta family on Zuma.
“When we sat, he told me he agreed that I should come to the mediation meeting because after Mtshali called him, he checked with [Zuma] whether I’m the right person and [Zuma] said [he’s] a good old friend, he will sort things out, don’t worry,” Njenje said.
The commission will continue on Wednesday with testimony from another former SSA director, Jeff Maqetuka.
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