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State Capture Commission Report Part VI Vol IV

This document contains a summary of recommendations from the Judicial Commission of Inquiry into Allegations of State Capture, Corruption and Fraud in the Public Sector in South Africa. It covers recommendations regarding South African Airways and associated companies in Part I Volume 1, recommendations regarding The New Age and its dealings with government departments in Volume II, recommendations regarding the South African Revenue Service in Volume III, and recommendations regarding public procurement in South Africa in Volume IV. The recommendations aim to address the commission's mandate to investigate state capture, corruption and fraud in key state-owned entities and the public sector.
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80% found this document useful (5 votes)
25K views200 pages

State Capture Commission Report Part VI Vol IV

This document contains a summary of recommendations from the Judicial Commission of Inquiry into Allegations of State Capture, Corruption and Fraud in the Public Sector in South Africa. It covers recommendations regarding South African Airways and associated companies in Part I Volume 1, recommendations regarding The New Age and its dealings with government departments in Volume II, recommendations regarding the South African Revenue Service in Volume III, and recommendations regarding public procurement in South Africa in Volume IV. The recommendations aim to address the commission's mandate to investigate state capture, corruption and fraud in key state-owned entities and the public sector.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Judicial Commission

of
Inquiry into Allegations
of
State Capture, Corruption and Fraud in the
Public Sector Including Organs of State

Report: Part VI
Vol. 4: Summary of Recommendations

Chairperson: Justice R.M.M Zondo


Chief Justice of the Republic of South Africa
PART VI – VOL 4

SUMMARY OF COMMISSION’S RECOMMENDATIONS

TABLE OF CONTENTS

PART I VOLUME 1 - SOUTH AFRICAN AIRWAYS AND ITS ASSOCIATED COMPANIES 1

CONCLUSION AND RECOMMENDATIONS ....................................................................... 1

Mr X’s evidence ............................................................................................................... 2

Pembroke Transaction.................................................................................................... 3

LSG SkyChefs ................................................................................................................. 3

Swissport ......................................................................................................................... 4

AAR / JM Aviation components tender.......................................................................... 5

The concealment ............................................................................................................. 5

State Security Matters..................................................................................................... 6

External Service Providers ............................................................................................. 7

Proceeds of unlawful activities ...................................................................................... 9

PRECCA reporting obligations ...................................................................................... 9

Auditors ....................................................................................................................... 10

SA Express ................................................................................................................. 11

VOLUME II - THE NEW AGE AND ITS DEALINGS WITH GOVERNMENT DEPARTMENTS
AND STATE OWNED ENTITIES ........................................................................................ 13

VOLUME 3 - SOUTH AFRICAN REVENUE SERVICE....................................................... 15

RECOMMENDATIONS ....................................................................................................... 15

VOLUME 4- PUBLIC PROCUREMENT IN SOUTH AFRICA ............................................. 16


SUMMARY OF THE COMMISSION’S RECOMMENDATIONS

PART I VOLUME 1 - SOUTH AFRICAN AIRWAYS AND ITS ASSOCIATED COMPANIES

1. Below are the recommendations made by this Commission regarding South African

Airways (SAA) and its associated companies.

Conclusion and Recommendations

2. The Commission’s Terms of Reference required it to establish the extent to which state

capture, corruption and fraud was prevalent in the public sector. In particular, the Terms

of Reference required the Commission to investigate, make findings and report on

whether public officials or functionaries had unlawfully awarded tenders to benefit any

family, individual or corporate entity (paragraph 1.4 of the Terms of Reference). The

Terms of Reference also required the Commission to determine whether any officials

or functionaries within the various SOEs had benefitted personally from acts of

corruption (paragraph 1.9 of the Terms of Reference).

3. These key aspects of the mandate of the Commission guided the investigation

undertaken into the affairs of SAA, its subsidiary SAAT, as well as SA Express.

4. The investigation endeavoured to uncover not only what had happened within these

entities but also why and how it happened. The investigation therefore had a broad

compass because it was motivated by a desire to understand the weakness within the

public sector that makes it vulnerable to state capture, corruption and fraud.

5. As the findings set out above show, SAA declined during the tenure of Ms Myeni to an

entity racked by corruption and fraud. Despite this, she was retained as its Chairperson
PART V: VOL 2 – SABC

Conclusions and Recommendations

186. The question to be answered is whether the actions of the Former President by involving

himself in the formation and business activities of ANN7 acted unethically or

contravened the Code of Ethics.

187. In terms of Government Gazette Notice No. 21399, Notice No. 41, Regulation 6853, the

Executive Ethics Code was published. The Executive Code was published in terms of

section 2(1) of the Executive Members Ethics Act, 1998 (Act No. 82 of 1998). The

Executive Ethics Code was published by the then Acting President J G Zuma. The

Executive Ethics Code was published and the members of the Cabinet, Deputy

Ministers and Members of Provincial Executive Councils are obliged to comply

therewith in performing their official responsibilities. Clause 2.3 of the Executive Ethics

Code provides:

“Members of the Executive may not –

(a) …

(b) …

(c) …

(d) use their position or any information entrusted to them to enrich

themselves or improperly benefit any other person;

(e) …

(f) expose themselves to any situation involving the risk of a conflict


between their official responsibilities and their private interests;

Conflict of interest

A member must declare any personal or private financial or business interest that
the member may have in a matter –

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