Africa-Press – South-Africa. Johannesburg – The Commission of Inquiry into State Capture this week heard that the State Security Agency (SSA) irregularly blew R1.5 billion in six years under the guise of covert operations.
A secret witness, only identified as “Ms K”, told the commission that gross non-compliance with operational and financial directives, especially in the establishment and management of covert projects and the creation of special purpose vehicles, was used to siphon funds from the SSA.
Ms K, the project manager of “Project Veza”, which is probing widespread looting at the SSA, testified to support the evidence of another of the agency’s officials, identified only as Mr Y.
In his affidavit filed at the commission, Mr Y stated that the funds taken under the guise of covert operations emanated from the National Treasury allocated budget as well as retained or unexpended funds.
”These financial irregularities resulted in approximately R1.5 billion being taken from state coffers and expended both domestically and abroad during the period 2012-2018 under the guise of covert operations,” stated Mr Y’s affidavit.
Ms K said she wanted to thread carefully on the amount of R1.5 billion.
”I don’t know, we have not really quantified whatever was expended or siphoned, what was legal or illegal. Because it’s an ongoing investigation we have not done that as yet,” she explained.
According to Ms K, Thulani Dlomo, formerly the SSA’s deputy director-general responsible for counter-intelligence and South Africa’s erstwhile ambassador to Japan, illegally signed contracts on behalf of the SSA with several companies in December 2014.
”These companies were integral to facilitating the illicit financial flows in the chief directorate: special operations and operations,” she said.
She said a number of the contracts were entered into by Dlomo in December 2014, a month before the projects relevant for those contracts were approved and established.
Proper procedures were also not followed, in some cases there was no proper authorisation for the conclusion of these contracts or their later extension, according to Mr Y’s affidavit.
The total amount involved in these contracts was approximately R125 million and these contracts did not comply with regulatory prescripts.
”Entities (were being) paid to do the work of the SSA, hence we came to the conclusion that there was a parallel intelligence machinery that was set up during that period,” Ms K said.
She also testified about an investigation by “Project Veza” of a handwritten note detailing how R19m was withdrawn on December 15, 2017 – the eve of the ANC’s five-day national conference at which President Cyril Ramaphosa was elected the governing party’s leader.
Mr Y’s evidence states that the R19 million in cash was withdrawn by an official in former SSA director-general Arthur Fraser’s office.
Ms K said R5 million of the R19 million was paid to a person identified in a handwritten note as “kingmaker”, R7.9 million to “Bra J”, R900 000 to Vele as well as another R360 to Flysofa.
“This handwritten note is not enough to justify how the money was spent,” she said.
According to Ms K, “Project Veza” is investigating the information.
”It’s not just this one. We are investigating all the temporary advances from 2014 to 2018 which amount to R224 million taken by the same person for covert operations while their line functions and responsibilities were administration. This is just one of the reasons,” she said.
Commission chairperson Deputy Chief Justice Raymond Zondo will hear evidence relating to parliamentary oversight next week.
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