Zondo commission hears of ‘money laundering’ involving Eskom, Transnet
Updated | By Gaopalelwe Phalaetsile
The commission of inquiry into state capture has heard how money was suspiciously channeled from Transnet and Eskom to Gupta-owned Sahara Computers and other Gupta-linked entities.
Standard Bank’s head of compliance, Ian Sinton, appeared before the commission again on Tuesday after he was subpoenaed to bring evidence related to the transactions.
Sinton confirmed that Regiments Capital, a financial consultancy firm which was a client, entered into an agreement with Transnet to partner with McKinsey and do consultancy work for the state-owned company.
Red flags were raised when millions of rands were transferred into Regiments’ account from Transnet,which was a 30% payment for the work it allegedly did alongside McKinsey. Some of the money wassubsequently transferred to different entities linked to Gupta associate Salim Essa.
Statements reflecting the transactions were handed over to the commission.
Evidence leader Vincent Maleka: "The next amount is GroupServ and its in the order of R45.4 million. Is this the same entity you described as Transnet?"
Sinton: "Correct. That's a Transnet payment"
According to the statement, R5 million was transferred into a company called Shivita Trade shortly after the transaction.
Sinton told the commission that Standard Bank demanded answers from Regiments after large transactions into several entities including Albatime, owned by Kuben Moodley.
In its meeting with the company, Sinton alleges that Regiments claimed there was an agreement that of the Transnet money it received for work done alongside McKinsey, 30% would be paid to Gupta associate Salim Essa and 5% to Moodley.
Essa allegedly nominated two companies to which his cut was to be transferred, namely Homix and Shivita.
He said the reasons given for the payments where the fact that Moodley found the opportunity for Regiments, while Essa secured it. However, no documentary proof was submitted.
Standard Bank terminated its relationship with both McKinsey and Regiments shortly after.
Sinton also gave evidence around another entity, called Cutting Edge.
"The relevance here is that on 16 May, R71 odd million comes from Eskom and various payments. all in the region of R4 million, are made to entities. Three days later an amount of R10 million is paid to Sahara Computers and another two days later another R10 million is paid to Sahara. Ordinarily that would be grounds for suspicion.”
Asked what he made of all the transactions, Sinton told the commission that he believed it was money laundering.
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