The Sunday Times has again resorted to sensationalist reporting — as if its Oilgate revelations were unknown to the public. The public may not know what the Donen Commission recommendations were, but it is privy to details relating to surcharges paid to Saddam Hussein’s regime contravening UN Security Council Resolution 986 and the Iraqi oil-for-food programme; the alleged involvement of top ANC officials (namely Jacob Zuma, Tokyo Sexwale, Kgalema Motlanthe and Mendi Msimang) and the R11 million donation to the ANC.
It is difficult to decipher what the Sunday Times intended to achieve by rehashing allegations that have been reported ad nauseum. Running with the headline “The report Mbeki and Zuma hid from you” one can only arrive at the conclusion that the newspaper intended to embarrass those mentioned in the Donen Commission report if the primary intention was not to boost sales. The Sunday Times‘ behaviour borders on “gutter journalism”.
Despite the theatricals, the Oilgate scandal still isn’t given due consideration by the law-enforcement authorities. The involvement of certain personalities such as Sandile Majali and Sexwale, who are directors of companies, and who in terms of the Companies Act have fiduciary duties of good faith and the duty to act with necessary care and skill when performing their duties, it is important to establish whether their actions were consistent with the provisions of the Companies Act.
The involvement of Imvume, led by Majali, in the Oilgate scandal has been widely reported. The 2005 UN Independent Inquiry Committee report on corruption relating to the oil-for-food programme mentioned companies that Majali and Sexwale were directors of as having been involved. Sexwale is a director of Mocoh, which according to the UN report paid about $575 000 in surcharges (read “kickbacks”) to the Iraqi government as part of an oil contract valued at about $185 million. It is reported that Sexwale pleaded ignorance to the any payments made by Mocoh violating UN sanctions against Iraq. It appears then that Sexwale might have neglected his duties as a Mocoh director, which is rather shameful.
Another company linked to Majali, Montega Trading, is reported to have been levied $464 000 in surcharges, which they never paid, but correspondence between Majali and representatives acting on behalf of the Iraqi government suggest there was intention to make such payment.
When responding to theses allegations, Imvume indicated that Majali was initially unaware of the requirement to pay surcharges.
Imvume appeared to have been economical with the truth since Majali had in 2002 written a letter to Iraq’s minister of oil, Amir Rasheed, confirming details of the meeting he and Motlanthe (then ANC secretary-general) had held with the former deputy president of Iraq Tariq Aziz. Majali stated in his letter that: “We proposed to settle the outstanding amounts of $464 000 in two equal instalments of $232 000 from the proceeds of the two liftings that were negotiated in favour of Imvume.” Based on this letter, there seemed to be a clear intention on Majali’s part, with the full blessing of the ANC, to violate UN sanctions against Iraq.
In September 2001 Majali had written a letter to Khalid Tabra, an Iraqi businessman who led the Iraq Friendship Association, a front for Hussein’s Ba’ath party, which confirmed the involvement of the ANC.
In the letter Majali said: “We believe there is a need to move speedily towards the implementation of the suggested programmes especially the implementation of an effective political programme that will result in an effective strategy geared towards campaigning for the lifting of sanctions and the embargo that have inflicted pain and suffering to the people of Iraq.” In the same letter, Majali said: “We further believe that a joint effort between the ANC and the Arab Ba’ath Party will add a lot of value towards achieving the common political objectives.”
Jacob Zuma in 2002 hosted a banquet for Tariq Aziz and it was at this lavish occasion that he condemned sanctions against Iraq in line with keeping the promises made by Majali a year earlier that South Africa will “campaign for the lifting of sanctions and the embargo” against Iraq.
The involvement of the ANC in these controversial acts was in direct breach of the UN resolution and surely needs further investigation. It is appalling that the ANC by virtue of running government had represented the continent at the UN Security Council while being directly involved in flouting its resolutions. The request by the Democratic Alliance that Zuma act on the Donen Commission report may not receive due attention because Zuma’s party is implicated and Zuma himself cannot plead ignorance to the involvement of the ANC
The honourable and logical thing for Zuma, Motlanthe and Sexwale is to step down as their direct or indirect involvement in this matter is an embarrassment to the country. India fired government officials after learning of their involvement. Zuma has been preaching the anti-corruption gospel since ascending to power and it’s time he stands true to his word and resign along with his colleagues. The Hawks should investigate any possible criminal wrongdoing on the part of the directors of all companies involved, current and previous government officials involved and charges should be brought against them in terms of the section 35 of the Prevention and Combating of Corrupt Activities Act.
Zuma has promised to crack down on corruption and there is no better moment than now to start cleaning his own (Luthuli) house. We have for long now been subjected to his empty rhetoric. The principle of “equality before the law” should be upheld and justice should prevail, otherwise we remain yet another African country that is defined in unflattering terms.