At the time of his death, Joe Modise’s closest associates were a band of white arms company executives drawn from the greasy brotherhood of the sanctions-busting era — a strange legacy for a man claimed as a hero of the liberation struggle.
This is the picture that emerges from Modise’s latest will — a document drafted a mere eight days before his death on November 26 last year. In fact, it was done at a time when Modise was so weak he could not sign and instead contributed a thumb-print.
First there was the witness to the will, one LR Swan. This is, of course, Llew Swan, the former CEO of Armscor, the state arms procurement agency.
In the post-1994 era Swan befriended Modise — and it was this friendship that some say paved the way for Swan’s entry into Armscor after he was sidelined by his previous employer, the defence company Reunert. Swan was, of course, a key player in negotiations around the country’s multibillion-rand arms purchases.
Then there were the contents of the will, which appointed one Anthony John Ellingford as a trustee of Modise’s major listed asset, the Letaba Trust.
Ellingford is the former CEO of Reunert, who resigned suddenly in 1997 when United States intelligence officials informed the Reunert board that he had a Swiss Bank account containing about $2-million.
The US investigators had come across the account during their investigation of sanctions-busting charges against Reunert subsidiary Fuchs, which had been part of an elaborate web of companies used by South Africa to evade the United Nations arms embargo. It is understood that Reunert was not aware of the Swiss account and a legal wrangle ensued over the money, some of which was eventually paid to Reunert in an out-of-court settlement.
Swan and Ellingford were long-time associates. Both are understood to have been consultants for a German submarine consortium, one of the main contractors in the multibillion-rand arms deal, on offset packages following Swan’s departure from Armscor in November 1999.
Ellingford is now believed to be based in Australia, but is linked to Swan in a company called Moist Consulting.
Finally there is Ian Deetlefs, the former chairperson of state-owned arms manufacturer Denel, who emerges as the third trustee of Letaba, together with Ellingford and Modise’s widow, General Jackie Sedibe.
In March this year the Financial Mail broke the story of how Modise, via the Letaba Trust, obtained a significant stake in Conlog at a time that he was still minister of defence, and when Conlog anticipated receiving important contracts as part of the arms deal. Modise did not declare this interest.
Deetlefs, via the Khangela Trust, and Armscor chairperson Ron Haywood, via the Ad Astra trust, obtained an interest in Conlog at the same time as Modise.
The Conlog deal is now being investigated by the Scorpions as part of the agency’s probe into aspects of the arms deal and it is understood they have interviewed Deetlefs.
Deetlefs is also facing a statutory inquiry, launched by the main shareholder in Conlog’s successor company Dynamic Cables, which has raised concerns about some of the share transactions which took place during the Modise era.
One odd thing about the will is that no original is available. The attorney who drafted it, Brian Webber, was obliged to make an affidavit to the effect that the original had been lost and confirming the authenticity of a certified copy. The Mail & Guardian has established that a previous signed will is in existence, but it is not known to what extent it differs from the latest version.
What is also odd about the current will is that it contains so little detail. Aside from the Letaba trust, the only other company asset mentioned is Uhuru, a close corporation of which 10% is willed to a Ronald Els, aged 30. It is understood that Uhuru is a vehicle repair concern.
No mention is made about Modise’s other company interests.
Investigations by the M&G show the former minister became a director of more than a dozen companies, including Labat Africa, which benefited from another arms deal offset contract via a joint venture with Sasol to export specialised waxes.
Modise’s relationship with Eskom chairperson Reuel Khoza was also seen as valuable to Conlog, which at one stage secured the lion’s share of Eskom’s order for prepaid electricity meters.
Soon after his departure as defence minister, Modise joined the board of Liselo, a company that supplies solar electricity equipment to Telkom, and the Marvol Group, which negotiated a deal with Denel to offer Russian engine upgrades to Mirage. Both companies are headed by controversial Russian businessman Mark Voloshin.
Modise also had an interest in consulting engineering firm BKS — a company with an impeccable Broederbond pedigree — and served on the board of the powerful African Renaissance Group (packed with friends and associates of President Thabo Mbeki). Modise even went into business with Ron Haywood’s wife, via a company called Moda Exotica.