/ 30 June 2000

Phosa denies link to shady ‘freelance’

financier

Justin Arenstein

Former Mpumalanga premier Mathews Phosa distanced himself from shady “freelance” financier Jean Mopotu this week following revelations that the Zairian tried to source funding for Phosa’s ambitious R390-million casino development in Mozambique.

Mopotu attained notoriety in 1998 when he helped international fraud fugitive and suspected chemi- cal weapons dealer Moshe Regen- streich mastermind Mpumalanga’s R1,3-billion promissory note scandal through his Sandton-based Fenetic Investments brokerage.

His role in a new contentious R200- million Mpumalanga pension tender involving National Intelligence Agency operatives is also being probed by South Africa’s Scorpions investigation unit.

Mopotu met Phosa’s business partners about the R390-million Quatro hotel and casino project in February, and presented the project to Gauteng investment brokers in March.

Phosa denied on Wednesday, however, that Mopotu was “officially” involved and insisted the project was being funded entirely by large repu-table institutional backers in Britain and South Africa.

“I am driving the funding arrangements for this project and have never met [Mopotu] or spoken to him – and I certainly never want to,” said Phosa.

His business partner and former Mpumalanga environmental affairs MEC David Mkhwanazi has confirmed that he personally met Mopotu in February to discuss possible funding for the project. Mkhwanazi said Mopotu suggested various funding options and arranged meetings for him with possible funders.

“[Mopotu] and his business partner Ben du Plessis then asked for additional information like tax and company registration numbers at a very late stage,” said Mkhwanazi.

“One of our shareholders wrote to Du Plessis saying thanks for the help but noting that the project was too far advanced to begin asking for this kind of information.”

Phosa insisted on Wednesday he was never briefed about the meetings or possible funding.

“Mkhwanazi doesn’t speak for me and is not the consortium. I am driving the funding for this project. Mkhwanazi has been told not to speak on behalf of the consortium again,” he said.

Phosa declined to say, however, exactly how Mkhwanazi was involved in the project.

Documentation from project partners Colliers RMF and Quyn Corporate Finance indicates Mkhwanazi and D&C Estates were awarded the hotel redevelopment concession by the Mozambican government.

Additional detailed project proposals add that Phosa is chair of D&C Casino Estates. “This is a private business and we don’t have to explain how everyone is involved. It is confidential and all that is important is that the project is underwritten by big institutional funders from Britain and South Africa,” said Phosa.The Quatro Hotel project is one of a series involving Phosa, Mkhwanazi and other prominent Mpumalanga figures being investigated by the Scorpions.

Investigation manager Corrie Engelbrecht confirmed the probe but declined to comment for fear of preju-dicing “a sensitive investigation”.