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State Capture Inquiry: Evidence to be submitted showing Guptas “faked BEE certificates”

THE SOUTH AFRICAN / 22 AUGUST 2018 - 12.52 / NIC ANDERSEN

The State Capture Inquiry going to be one hell of a process.

Add your site or application content here On Monday, the first hearings of the State Capture Inquiry began. In the days since, South Africans have heard some new revelations but also been reminded about just how bad things really were. Now, the evidence is set to be submitted showing that the Guptas used fake B-BBEE certificates to gain work at State Owned Enterprises.

State Capture Inquiry: Gupta this, Gupta that

The DA announced on Wednesday that it will submit evidence of “possible counterfeit Broad Based Black Economic Empowerment (B-BBEE) certificates used by Gupta companies”.

DA MP Dean Macpherson points out that the opposition party laid an official complaint with the B-BBEE Commission in March 2018. The commission agreed to probe allegations of fronting and supplying false information.

“These Gupta companies submitted certificates to Eskom during the course of 2016 to secure contracts, meet internal procurement requirements and, in the case of Trillian, to ensure payment authorisations worth billions,” Macpherson said.

“Trillian and Tegeta’s certificates show that they may have misrepresented their B-BBEE status. Their annual turnover was inconsistent with that of micro-enterprises.”

To be considered micro-enterprises, the companies were required to have a turnover of less than R5m for the 2015/16 financial year. A 2017 note to Oakbay shareholders indicated that Tegeta’s assets amounted to R11m.

“Trillian reported to have a turnover of less than R10 million per year but it and McKinsey were paid R1.6 billion between April 2016 and February 2017 for consulting work done in 2015 and 2016.”

“Tegeta and Trillian therefore may have unduly benefited from the 0% black ownership waiver given to micro-enterprises.”

If these incidents of “apparent procurement manipulation” are found to be criminal, the B-BBEE commission can refer the matter to the NPA or South African Police Service for prosecution.

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LINK : https://www.thesouthafrican.com/state-capture-inquiry-evidence-to-be-submitted-showing-guptas-faked-bee-certificates/

Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER

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