Former Bosasa chief operating officer, Angelo Agrizzi, testifying at the Zondo commission into state capture.
(Delwyn Verasamy/M&G)
Facilities company Bosasa used corruption as its “way of doing business” with government departments and state entities, bribing its way into securing lucrative tenders at inflated prices through a network of politicians and government officials.
The company bribed politicians, government officials, former president Jacob Zuma and others “extensively” and its officials and directors, including the late Gavin Watson, “simply had no shame in engaging in acts of corruption”, according to the latest report from the commission of inquiry into state capture chaired by Acting Chief Justice Raymond Zondo.
Bosasa’s role in manipulating the tender processes at the department of correctional services (DCS), that of home affairs and a series of state entities ranging from the South African Post Office and ACSA is the focus of the third part of the Zondo commission report, released late on Tuesday.
The Bosasa report details how the company used the political influence of Watson’s family and bribes laundered through an elaborate network of service providers to land catering, security, information technology and logistics tenders.
Free security services, cash bribes, holidays, “loans” and cars were among the forms of bribery used to secure the cooperation of top officials of the DCS, including former deputy national commissioner Patrick Gillingham and KwaZulu-Natal regional commissioner Mnikelwa Nxele, who Bosasa placed on “retainers” of between R57 000 and R100 000 a month.
Watson ensured, through his network of political contacts, that large prepayments of up to hundreds of millions of rand were made in advance of any work being done or any goods or equipment being delivered.
The report found that the ANC benefited from the corruption, with Bosasa bankrolling party activities, including its 2014 election war room.
The aim was to ensure that “the ANC would remain the majority party and thus in a position to appoint to positions of public office, persons whom Bosasa was able to influence or would seek to influence”.
In the report, Zondo said that the extent of Bosasa’s corruption had only come to light because its former chief operating officer, Angelo Agrizzi, had testified at the commission despite threats to his life.
Zondo said the commission was “indebted” to Agrizzi, despite his own involvement in acts of corruption and the fact that “his motive for spilling the beans may have largely been personal because he had a fallout with … Watson”.
Zondo said that Bosasa’s beneficiaries “would not have been exposed” had it not been for Agrizzi’s testimony. Agrizzi worked as chief operations officer at Bosasa from 1999 to 2016.
Zondo said Agrizzi had testified that Watson was the “godfather” of Bosasa and all its associated companies and that he had been responsible for decisions on who to pay — and how much to pay them.
Watson would handle “anything political and the others were not to get involved with it” as it was he who had relationships with ruling ANC brass, ranging from the Sisulu family to current Public Service Administration Minister Ayanda Dlodlo.
The report found Bosasa laundered cash to pay bribes using a number of wholesalers and other suppliers, and also made use of cash collected from canteens at the Lindela repatriation centre and other facilities it managed. The cash was stored in a number of vaults at its head office.
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