The state capture commission has heard how money laundering entities linked to the Gupta enterprise allegedly paid millions to attorneys retained by former President Jacob Zuma in different litigation matters in 2014. Forensic investigator Paul Holden of London-based Shadow World Investigations testified about several movements of funds emanating from payments to entities in a laundering network closely attached to Gupta-linked companies that were awarded state contracts.
Holden presented a client ledger provided by Zuma's former official state attorney Michael Hulley as part of an affidavit to the commission, as well as invoices sent to his law firm by the late senior counsel Advocate Kemp J Kemp. The invoices detailed services rendered by Kemp in respect of Zuma's North Gauteng High Court challenge of a DA application to set aside a decision of the National Prosecuting Authority to drop corruption charges against him.
In 2009, acting head of the NPA Mokotedi Mpshe announced the decision to drop charges against Zuma, in reaction to which the DA launched its application days later. In 2016, the high court ruled that the NPA decision must be set aside, but the charges against Zuma were re-instated in 2018 and it was later announced that the matter would be heard in the Pietermaritzburg High Court, where it commenced this year after several delays.
Holden previously took the commission through transactions by "first-level" laundering entities, companies that received payments through legitimate banking facilities from contractors of state-owned entities like Eskom and Transnet. On Tuesday, he described a network of "intermediaries", companies that existed solely for receiving and passing on payments from the first level, some of which reached as far as China.
The payments in respect of Zuma's legal fees were made to Durban-based Hulley and Associates from Baqou, which had itself received the money from Homix. Describing the relationship between entries in Hulley's ledger and invoices from Kemp, Holden explained that of a R200,000 payment in October 2014, R60,676.37 was in payment of Kemp's services to Hulley and Associates in representing Zuma.
Holden previously placed the total loss to state capture from which the Gupta family benefited at just under R50-billion, with the Guptas themselves walking away with just under R16-billion of that. The commission heard that Hulley and Associates and Abbas Latif were paid amounts of R2.8-million and R4.4-million respectively on 9 and 10 April 2014, presumably for services rendered by senior counsel retained in Zuma matters.
In his most recent appearance, Zuma pleaded not guilty, and the matter was adjourned until July. The commission's hearings continue to shed light on the extent of state capture and corruption during Zuma's term of office, with further testimony and evidence expected to be presented in the coming weeks.
Key points
- The Gupta-linked laundering network paid millions to attorneys retained by former President Jacob Zuma.
- The payments were made to Hulley and Associates and Abbas Latif in 2014.
- The total loss to state capture from which the Gupta family benefited is estimated at just under R50-billion.
