# Social Category > The Whistleblower Forum >  Nkandla, sweet Nkandla...

## Darkangelyaya

I received the following per email:

'_Nkandla appears to be only be the tip of a very large iceberg

Nkandla Freeway Corruption Potentially Exposed...

Much has been said, fought and argued over the funding of the R250m Nkandla Compound, and rightly so. But what's received little attention is the funding of the freeway set to run through Nkandla following the development of the president's luxury compound. This freeway is set to cost R1.5bn, so this is no small chunk of change, so Mybroadband's amateur, volunteer, investigative journalists gave it a crack and uncovered what appears to be a case of corruption on an arms deal scale. Here's what we uncovered:

Claim #1

Public Works claim that the freeway is being constructed by a private company called Korong Capital Partners who will, following the road development's end, donate the entire road to the government at no cost to them. Now that sounds incredible. So incredible that it sounds almost too good to be true. That's because it is.

Debunking

Korong Capital Partners appears to have been a dormant shell company since 1999, and who's only director is Moeti Mpuru, who claims to have secured the funding of R1.5bn for this project. The problem with this scenario is that Korong Capital Partners have no history of this sort of work. In fact, they have no history of any work whatsoever. So they certainly couldn't have secured revenue of around R37bn to place them in a position to fund this internally. This would have made them the most successful company in history (to put this into perspective, this would equate to more than double Vodacom's 2011/2012 revenue, and Korong would have achieved this in about a year of operations). They couldn't have raised this finance in the capital markets either because no financial institution would originate and secure a bond for a company with zero balance sheet strength and zero cash flow. So the only other option is that there was an angel investor involved, and this is the next claim:

Claim #2

An angel investor is funding the entire project at no cost to government whatsoever.

Debunking

Who was this angel investor? Well the claim is that the cash originated from the USA, through an attorney who is set to make $100,000.00 for simply arranging the transfer of the cash. Apparently Mpuru, after being turned down for a R1m loan to fund a small portion of the project, managed in just a few months to secure R1.5bn in funding for a project that will see absolutely no return on investment. It is a straight R1.5bn loss to whoever funds this project. And why is the donor not being made public? What has he got to hide? And who in their right mind would philanthropically fund a minor freeway in SA through the president's home town? It makes no financial sense, nor logical sense.

So on to brass facts: Korong Capital Partners has its registered offices at the following address:

UNIT 2 CHIANTI ESTATE
39 LEEUWKOP ROAD
SUNNINGHILL
2196

So this company that apparently has R1.5bn spare to flush down the toilet, or will be managing R1.5bn worth of angel investor cash, is situated at unit 2, Chianti Estate in Sunninghill, a residential complex that does not have business rights for its units. This is a tiny, 60sqm residential complex - not an office park, or the premises you'd expect for a company with R1.5bn to spend and manage. Yet Public Works feel happy for this company to complete this project on their behalf. Ever wondered why?

So who owns Unit #2 at Chianti Estates? None other than MBANJWA NQOBILE ZINHLE (Zinhle Mbanjwa). Who is Zinhle Mbanjwa? He is the manager of the Housing Development Agency of South Africa. This is the governmental department that oversees investments in housing related infrastructure on behalf of the Human Settlements Department. They also manage inter-departmental projects. Why is Korong Capital Partners' premises at the HDA manager's personal premises? The answer to that is simple - he owned the shelf CC from the outset. This means that the CC used to move the money around to pay for the Zuma freeway is in fact located at the HDA manager's house and directed by the man who supposedly secured the funding. This makes no sense in terms of the government's official statements that this is a private entity funding the project through angel investment. What this actually means is that the HDA more than likely used the CC owned by their manager to move Human Settlements money to Korong Capital Partners to fund the Zuma Freeway. If this was angel investment, the investor would ensure that he had board representation to ensure he had oversight over the use of his funds. 

What does this mean? Well it means that Zuma's compound is only the tip of a very large iceberg. The real corruption is worth in the region of about R1.5bn, as it indicates that the HDA facilitated government cash (which is what they do) to be moved to Korong Capital Partners to fund the Zuma Freeway, and the government knowingly lied to the public about how the project was being funded. It indicates that behind the scenes, HDA, Public Works and Human Settlements arranged a secretive transaction to spoof legitimate business operations, when in fact they were simply trying to hide their money-trail of corruption, knowing that using public money would cause outrage among South African citizens. 

None of this makes any sense in terms of the official story by the government. It makes perfect sense when you add a corruption element to the mix though. Public Works and Human Settlements found cash to fund this project. In order to hide this from the public, they engaged with the manager of the Housing Development Agency, who are the middle-man for inter-governmental transactions. Together with a lawyer in the US, they siphoned cash out of the country to make it appear as if the cash was from an angel investor, and would not be subject to disclosure to the public. They then moved the money to a CC owned by the HDA manager called Korong Capital Partners who are now officially funding the Zuma Freeway. 

On the surface it seems like an extraordinarily unlikely investment - that some unknown source of billions of dollars donated all of the funding capital to a private company that coincidentally happens to be owned by the HDA manager, to build a freeway through Jacob Zuma's Nkandla hometown, with no oversight of the spending, no recourse whatsoever to the cash, no return on investment, while remaining completely anonymous, and then with the intention to hand the entire road over to Public Works upon completion. And that is because this is ridiculous. It reminds me of the SANIP arrangement with SAAB and BAE, where Fana Hlongwane received the bribe payments for the arms deal.

What has happened however is that government appears to have attempted to pull the wool over the eyes of its citizens, in anticipation of backlash for R1.5bn funding of the Zuma Freeway, by hiding cash in an entity they thought would be safe from public scrutiny. As it turns out, this wasn't quite as private as they expected. The crucial oversight was using a private CC owned by the HDA manager and forgetting to remove his personal address from the company information records, which are public. 

So government has a lot to answer for here and we the public should demand answers. Not only does this appear to be corrupt to its very core, but the spending at Nkandla is outrageous too. See here for more details relating to how exorbitant the Nkandla spend is:

http://mybroadband.co.za/vb/showthre...projects/page2

Public Works is currently involved in hundreds of projects around the country, with their mandate being to spend on infrastructure and social development. With this in mind, their average allocation for each project will be somewhere between 0.1% and 0.2% of budget (this is a very high estimate in my opinion - they're probably spending less across more projects). Zuma's non-revenue-generating, unnecessary development that has nothing to do with infrastructure nor social development equates to a 0.32% allocation of the national public works budget. This means that they've spent up to 224% more on Zuma's compound than on their average spend on actual deliverable projects that meet their mandate.

If we include the freeway project, which I'm quite sure is just a dodgy vehicle to protect Zuma from recourse, the figure jumps to 2172% more than their average national infrastructure spend. So instead of money going to the Gauteng Freeway Improvement Project, to mitigate the impact on the country, Public Works chose instead to over-spend on Zuma's home by up to 2000-odd percent. What is clear is that Public Works consider Zuma's house to be at least 224% more important than investment in infrastructure, which is their actual mandate.

So if you want to do something about this and make your voice heard in opposition to potential corruption, fraud, misuse of public funds and lies, then send this out to media outlets, the public protector, your friends and family etc. It's high time this sort of presidentially-supported corruption is put to bed, once and for all..._'

Interesting.

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KristiKat (21-Mar-14)

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## Dave A

There are two things that bug me with this one - 

1. We've had a spate of well written emails in circulation of late that have very little foundation in truth and in time are revealed as nothing more than malicious assassination pieces, and

2. Damn it - it's possible, isn't it.

Interesting times indeed.

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## Darkangelyaya

Indeed, Dave.

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## Blurock

> What has happened however is that government appears to have attempted to pull the wool over the eyes of its citizens, in anticipation of backlash for R1.5bn funding of the Zuma Freeway, by hiding cash in an entity they thought would be safe from public scrutiny. As it turns out, this wasn't quite as private as they expected. The crucial oversight was using a private CC owned by the HDA manager and forgetting to remove his personal address from the company information records, which are public.


This is exactly the reason why the ANC wants the Information Bill passed - to hide their own corruption! :Censored:

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KristiKat (21-Mar-14)

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## Chrisjan B

http://www.news24.com/SouthAfrica/Po...ion-20121206-4

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## Dave A

An email allegedly from Chris Thompson:

When I was CEO of GoldFields I got a call from Mandela saying that we 
should build a school at Nkandla for Zuma. He was V President at the 
time. GFL had a Foundation, which I headed, and we did in fact build 
schools all over the country but only where there was demonstrated 
and real need.  Nkandla already had a school so I  told Madiba we 
would look into it and see if there was a real need. The conclusion 
was that it was marginal but could be said to have need for new and 
bigger school.

So when he called me again to repeat the ask a couple months later, I 
aid would go down to Nkandla myself and meet Zuma. I flew down by 
chopper and Zuma flew in with an entourage with 3 military choppers 
and put on a big lunch etc for us. He then took us to see the 
existing school and meet with the architects who has designed the 
proposed new school. it was pretty grand. In the course of discussion 
I asked what the cost would be and the Dutchman architect standing 
next to me who absolutely stank of booze grinned and said  "R12to 
R14million". I turned to our Foundation chief said that was about 3 
times what we usually spend and asked what should the cost be for the 
design we were looking at. The answer  -"about R5 or 6 million". So I 
looked at the Dutchman and asked "Where does the rest of the money 
go?"  He looked accross the table at Zuma where he was seated and 
Zuma just looked at me with this big smile.


So I flew back to Jhbg and called Mandela. "Yes we will build a 
school in Nkandla but there are two conditions, 1) it will be a 
school GFL designs and not Zuma's design, and it will be built by our 
own contractors reporting to
us   ( it ended up costing about R4mm)  and 2) we are listing GFL on the
NYSE in two months and we want you to come and ring the bell for 
GoldFields at the launch.


He agreed.


The reason I asked for him was because AngloGold the month before had 
brought a real live lion (drugged of course) on to the NYSE stage as 
a very successful publicity stunt, and as long time rivals we wanted 
to upstage them. I cannot conclusively say we did, but the effect of 
Mandela on the floor was electric. Trading almost came to halt for 10 
minutes and he was mobbed. We got huge press around it and the stock 
went up nicely.


All in all a good result all round. But i will never forget the smirk 
on Zuma's face. This latest revelation about the highway and his 
house scam are all consistent with what we saw that day.


best,


Chris

Just who Chris is supposed to have sent the email to is beyond me, but I did a little research and Nelson Mandela did indeed attend the opening of Gold Fields' listing on the NYSE, and I found this speech of JZ at the Opening of Mnyakanya Secondary School where he thanks as follows:




> I must therefore, once again, thank Gold Fields, the Telkom Foundation and the MTN Foundation for the investment in education they have made here


So much of the anecdotal evidence seems to stack up.

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Chrisjan B (06-Dec-12)

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## Chrisjan B

Interesting:
http://mg.co.za/article/2012-12-07-0...flowed-to-zuma

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## Darkangelyaya

http://m.news24.com/news24/SouthAfri...veals-20121207

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## wynn

Check out M&G's latest on JZ
http://mg.co.za/article/2012-12-07-0...-right-to-know

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## Citizen X

> This is exactly the reason why the ANC wants the Information Bill passed - to hide their own corruption!


I couldn't agree more! We not in a state of war, there's also no state of emergency, so I too conclude that the sole intention of this Bill is to muzzle the media and to hide corruption under the auspices of 'Top Secret, For your eyes only!"

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## Blurock

We are not allowed to call Nkandla a compound and Nscandla may not go down well. How about DisGraceland, a la the Elvis of KZN?

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## Blurock

And the nScandla, disGraceland, Zumaville or whatever you want to call it (just don't call it a compound) rages on. Lies, finger pointing, denials, more lies, suspicion, blame...

Now apartheid gets the blame.




> "The problem is, we can't break the law, even if it's an apartheid law. It's covered by the National Key Point Legislation... that's our dilemma in wanting to be as transparent as we can around the matter."  Jeremy Cronin


So the ANC conveniently took over the laws that protected the NAT cronies to protect their own cronies. The structures were already there. Was nScandla declared a national keypoint before or after the revelation of this scandal?

The anc has been in power for 20 years, has rewritten the Constitution and many "apartheid laws" so how come this suddenly becomes an apartheid law? Every time that the anc gets caught out on corruption or incompetence they blame it on the previous regime. Stop hiding behind apartheid. Become accountable!

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KristiKat (21-Mar-14)

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## Trickzta

Nkandlagate won't go away. I think it will still come back and bite.

The people that live around the cottage, don't have clean and/or running water, and the opposition love that.

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KristiKat (21-Mar-14)

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## desA

Nelson had dirt roads around his home. What roads does Booma have around Nscandla??

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## wynn

Well the Public Protector did her job now it is up to the various state organs to do nothing.

It seems that unethical, unlawful and maladministration of the rules and supply chains of the various departments are the norm.

That funds were transferred from other departments is the cherry on top for the poorest of the poor.

R246million could have built 6,150 RDP houses which would have put a decent roof over the heads of at least 37,000 of the poorest of the poor people

SIGH!!! :No:

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KristiKat (21-Mar-14)

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## Dave A

The statement by Thuli Madonsela on Nkandla.

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## ians

shame I feel sorry for the some poor sucker who is gona take the fall for this fiasco. The only people who wont suffer are the guilty parties.

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KristiKat (21-Mar-14)

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## Dave A

Just finished reading the report.

You know, I really have to tip my hat to JZ - he really is a wily old jackal. Inserting Minenhle Makhanya into the decision making process was truly a stroke of genius. I'm sure he'll say it was because he was so busy attending to affairs of state, but it has also conveniently provided him with plausible deniability.

And it seems all the documents that might have implicated the President directly with *anything* have mysteriously disappeared, or there's no proof of delivery.

He really has refined his act and learnt the lessons of the Arms Deal. A real Teflon President if ever I saw one!

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## Blurock

What a scandal! Now the Youth League has the audacity to say that the Public Prosecutor is sensationalist and is playing politics. Their idiotic utterances is an even bigger scandal.

It just shows that NO politician can be trusted. And you still want to vote FOR government? I'd rather vote for the people to govern themselves.

Every community has its own leaders. Elect those leaders who lead and serve the community (and not steal) to represent the community in a national forum. That is true democracy, not people appointed by the party so that they can enrich themselves.

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## Blurock

It is now up to the PEOPLE to act and to demand action. Apathy and finger pointing will get us nowhere. Let every vote count and let the people be heard.  :Nono:

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## Justloadit

Ha, after today's rally at Sharpville, the legions of supporters booed the DA candidate, and applauded JZ, they are simply ignoring the report, they will again blindly follow and vote appropriately. Then the next morning will start with their lack of service strikes again.
The mind boggles. :Confused:

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## KristiKat

> "Public Works claim that the freeway is being constructed by a private company called Korong Capital Partners who will, following the road development's end, donate the entire road to the government at no cost to them"


doesn't this sound like the SANRAL e-toll scam?

....being build at no cost to them,

as they steal money from the people to FUND something they could not afford in the first place,

when they spent the government's money recklessly on other endeavours............

as if people don't pay enough MONEY to the government already.

yes it is definitely used as a smokescreen.

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## KristiKat

> This is exactly the reason why the ANC wants the Information Bill passed - to hide their own corruption!


true.............

then government accountability goes right out the door,

and the constitution might as well be revoked in entirety...........

they want to concentrate on the crimes of the people they rule,

and not on their own,

so why do they want to be seen as honourable?




> shame I feel sorry for the some poor sucker who is gona take the fall for this fiasco. The only people who wont suffer are the guilty parties.


yes exactly,

like with the e-toll scam,

so those who refuse to pay,

should go to JAIL,

because the government could not fund their own projects,

with the TAX they already took from millions of people..............




> It is now up to the PEOPLE to act and to demand action. Apathy and finger pointing will get us nowhere. Let every vote count and let the people be heard.


these politics in my opinion are just a distraction, it does not solve anything.... 

different political parties should lay down their differences,

and come to a mutual agreement,

to fight corruption

as one body..........

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## sterne.law@gmail.com

The skullduggery aside, what can not disputed is that the pres, an employee, received a fringe benefit and is therefore liable for tax upon these benefits.
Let's see how SARS deals with this malema, oops, dilemma.

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## wynn

Surely it will be the cheapest option for the state to just pay JZ for his provable part of the build and turn the whole compound into a social center for the residents of Nkandla with all the benifits present, then let JZ take his money and build another compound for his family sans clinic, helipad, firepool, underground kraal, chicken coop, amphitheatre, marquis pad, visitors center, police accommodation, security and anything else unneeded.
If he wants any security invoke the "National Key Points Act" which says he as the owner of the property must pay for any and all security required.

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## IanF

> The skullduggery aside, what can not disputed is that the pres, an employee, received a fringe benefit and is therefore liable for tax upon these benefits.
> Let's see how SARS deals with this malema, oops, dilemma.


This is the problem Julius fell out of power, and SARS has attacked him. JZ may be worried that the same fate will be waiting for him so he is keeping a tight rein on the the ANC. To the detriment  of the ANC.

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## Blurock

> Ha, after today's rally at Sharpville, the legions of supporters booed the DA candidate, and applauded JZ, they are simply ignoring the report, they will again blindly follow and vote appropriately. Then the next morning will start with their lack of service strikes again.
> The mind boggles.


Because 80% of the people on this planet is stupid? Only a moron will worship and follow politicians blindly, but unfortunately that is happening all over the world. :Stupid:

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## Justloadit

Heard a caller on 702, a Simon from one of the townships, and his take was that whilst the NKANTLA debacle hurts, he will still vote for the ANC at the next elections, because there manifest is a good one.

Sounds like the mases are simply going to continue voting, then protesting the next day about non delivery.
Saw the headlines today in one of the papers that ANC will get 2/3rds majority in a poll that was done recently.

It may seem that we are going to be farting against thunder.

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## Justloadit

A hero's welcome for Zuma in Tlokwe
The mind boggles, after the recent debacle with lack of service delivery, now that JZ has been there and promised, they are happy again.

We in for a very rough ride

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## Blurock

> A hero's welcome for Zuma in Tlokwe
> The mind boggles, after the recent debacle with lack of service delivery, now that JZ has been there and promised, they are happy again.
> 
> We in for a very rough ride


Just proof of my earlier statement. That is also why Bob is still in power. It seems as if people can not add up the facts and think for themselves. We just follow the herd.

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## Marq

> We just follow the herd.


 You mean....*They* just follow the flock?

Most service delivery uprisings are about the who is going to run for local councillor. Its just gangsters in the same party arm wrestling.

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## ians

I just wish I could be supplying posters, get rich quick, well less the service fee.

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