FirstRand’s investigation into Mac Maharaj has trashed the reputation of the former transport minister, who joined the FirstRand board after leaving office in 1999.
Although the banking group found no evidence of corruption, its report has confirmed that Maharaj and his wife, Zarina, received large and largely unexplained payments and benefits from controversial Durban businessman Schabir Shaik.
Shaik is at the centre of several investigations by the Scorpions, including whether he was party to an alleged attempt by Deputy President Jacob Zuma to solicit a bribe from one of his business partners, the French multinational Thales.
The Scorpions have also interviewed Shaik concerning the award, during Maharaj’s term, of the tender to supply new credit card-type driver’s licences.
Both FirstRand and Shaik were beneficiaries of another large contract for a toll road on the N3.
The report found no nexus of corruption between the payments received by Maharaj and the award of contracts. According to FirstRand: ”The team did not find any evidence in the available information that Mr Maharaj intervened with the process or influenced the awards of the N3 Toll Road tender or the driver’s licence card contract to Mr Shaik. The team did not find evidence linking payments from Mr Shaik to Mr Maharaj with the award of this tender.”
But the carefully worded statement suggests that FirstRand believes Maharaj has been tainted by a succession of poorly explained payments from Shaik.
The investigation found that at least some of the benefits received from Shaik were not declared, as required, in the parliamentary register of members’ interests.
Further, the payment of R328 898 by Shaik to Zarina Maharaj’s business, Flisan Investments, was poorly corroborated by information to prove it was for legitimate consultancy work.
In a statement describing the findings, FirstRand said: ”There was some form of consultancy agreement between Mr Shaik and Mrs Maharaj. The extent of the agreement cannot be determined; nor is it possible to express an opinion on whether Mr Shaik indeed received value for money…
”Due to a lack of corroborative evidence, it is not possible to find that the reason for all payments (and the off-sets) was in fact service in terms of the consultancy agreement. The agreement does not appear to have been a formal, arms-length agreement between two businesses.”
The investigation also uncovered two payments of R100 000 into Maharaj’s family trust in the latter part of 1996.
The report states: ”It appears from the accounting records of Nkobi Holdings [the company controlled by Shaik] that one of these deposits was made by a company in the Nkobi Group. Neither party could explain the reason for the accounting entry, or the payment. Mr Shaik undertook to investigate the matter at his bank and revert to the team … At the time of finalisation of the report Mr Shaik had not reverted to the investigative team.”
The investigation also found that Nkobi had paid for a R15 000 computer system to be installed for Maharaj. This was allegedly offset against the amount owing to Zarina Maharaj for consulting work.
”The team did not find corroborative evidence that the amount of R15 000 was actually set off against the debt owned by Flisan,” the FirstRand statement noted.
Regarding the fact that Shaik had paid for part of Maharaj’s family holiday in Florida in 1996, the investigation found that Shaik had requested engineering company Brown & Root to assist with the arrangements of hotel accommodation and transport for the Maharaj family in Orlando, Florida.
In his letter to the engineering firm, Shaik stated that this was of ”strategic importance” to both Brown & Root and Nkobi.
The FirstRand statement notes: ”The Maharaj family stayed in the hotel from 13th to 17th July 1996. The hotel bill shows that the accommodation was paid with an American Express card, which was found not to be activated, whilst the Maharajs’ paid the sundries.
”Brown & Root invoiced Nkobi Holdings for the accommodation and Nkobi Holdings reimbursed Brown & Root.”
After examining the evidence, the investigative team concluded: ”It is clear from the available information that not only did Mr Shaik arrange for the trip to Orlando, but that he, through Nkobi Holdings, ultimately paid for the Maharaj’s stay.”
FirstRand did not accept Maharaj’s claim that he believed he had paid the bill, and found that he should have declared the benefit in the parliamentary register.
”It is therefore the finding of the team that Mr Maharaj breached the code of conduct by not disclosing this payment in the register.
”As far as the consultancy income is concerned, the team was unable to establish whether this was in fact disclosed in the Confidential Part of the register, due to the fact that the records concerned were destroyed. The 1996 to 1998 records were destroyed following the 1999 election.”
Although Maharaj has stated that the report clears him of corruption, he has tendered his resignation. He leaves with a package of more than R1-million
Mac Responds
Mac Maharaj has welcomed FirstRand’s finding that there was no evidence linking the payments received from Schabir Shaik to contracts awarded while he was minister of transport, but he failed at a media conference on Thursday to clarify two further payments of R 100 000 each, writes Stefaans Brummer.
Maharaj also hit out at the Scorpions over alleged leaks to the media. There has been speculation in the media that a number of payments by Shaik to the Maharaj family – the FirstRand inquiry put it a t R328 898 in total – may have been in consideration for two contracts awarded during Maharaj’s tenure to consortia which included Shaik. FirstRand’s inquiry found that on ”the available in formation ” this was not so.
Maharaj maintains, and FirstRand seems to accept with reservations, that the payments were for consultancy work Maharaj’s wife had done for Shaik. Maharaj said: ”I repeat that I have not been involved in any bribery and corruption.” But the inquiry also found two unexplained R 100 000.00 – deposits during the latter part of 1996 into the Maharaj family trust account. From accounting entries, it said, it seemed one of those had come from a Shaik company. Shaik had undertaken to investigate this, but had not responded to investigators by the time the inquiry was finalised.
Maharaj told the media conference that his bank had to date been unable to find copies of the cheques and deposit slips ”We as a family have some idea what those payments were about, but at this stage I am not prepared to speculate.” Maharaj stuck to this lined during repeated questioning. Maharaj hit out at the Scorpions over alleged media leaks, saying the unit should expedite its investigations into him and, if necessary, bring charges so he could defended himself.
”Then I will have an accuser face to face … At least under apartheid, we had them face to face.” Maharaj said he had ”many reservations about the findings of the (FirstRand) investigation team. I, however, have no intention of quibbling over them.” He did, however, dispute the finding that he had breached parliamentary rules by not declaring Shaik’s sponsorship of a Disneyworld holiday. Maharaj said he now accepted Shaik had paid, but maintained he had not been aware of it before.
