A top Scorpions investigator who probed, among others, Deputy President Jacob Zuma and businessman David King, is himself now the subject of an investigation by the elite unit on allegations of bribery.
Cornwell Tshavhungwa was suspended last month on the instruction of National Director of Public Prosecutions Bulelani Ngcuka, after representations by senior Scorpions investigators.
Tshavhungwa’s colleagues are probing him for allegedly accepting bribes from senior government officials at a government development finance institution in Mpumalanga.
But Scorpions sources sympathetic to Tshavhungwa, the Deputy Director of Public Prosecutions, claim he is being targeted for pursuing investigations against senior political figures. They say many officials within the Scorpions are jealous of his successes and would like to see his downfall.
Tshavhungwa’s closeness with Ngcuka has apparently also irked some senior investigators.
Ngcuka has in the past entrusted Tshavhungwa with high-profile Scorpions investigations. He led the Scorpions probe of multimillionaire King, who was accused of tax evasion amounting to at least R900-million. He also participated in the Scorpions’ probe of Zuma, and was part of a delegation to France earlier this year as part of this probe.
Scorpions spokesperson Makhosini Nkosi this week confirmed Tshavhungwa’s suspension. He said Tshavhungwa “has been put on precautionary suspension pending the investigation into some allegations against him and to protect the integrity of the investigation”.
The Mail & Guardian has learned that Scorpions investigators are actively probing Tshavhungwa and, as part of the probe, last month raided the offices of the parastatal Mpumalanga Economic Empowerment Corporation (MEEC).
During the raid of the MEEC’s provincial headquarters, a high-level Scorpions team seized boxes of alleged documentary evidence.
At the time, Scorpions head of communications Sipho Ngwema stated that the raid formed part of a wider long-running investigation into alleged tender rigging and other corruption at the MEEC.
“We have not charged anyone yet, but can confirm that we seized evidence of corruption that appears to include bribery and nepotism involving senior people both within the MEEC, and outside in other structures,” Ngwema said.
The MEEC was established by the provincial government in 1999 and became operational from July 2000. It reports to the provincial finance and economic affairs department.
The MEEC’s core business is to give financial support to emerging businesses and has an annual budget of about R70-million. MEEC CEO Ernest Khosa this week said in a statement issued by law firm Nalane Manaka Inc that his organisation has nothing to hide and would cooperate with the Scorpions probe.
“As a state institution our client will always cooperate with the National Prosecuting Authority or any state agency in this kind of investigation as long as it is in terms of the law.”
Scorpions investigators believe, according to the elite unit’s Pretoria High Court application to raid MEEC, that Tshavhungwa “corruptly diverted the focus of an investigation into MEEC in exchange” for benefits from the MEEC.
They also believe the MEEC appointed two of Tshavhungwa’s family members (wife and younger brother) and awarded a tender to a company run by a close relative.
Scorpions investigators believe Tshavhungwa blinded himself to claims that senior MEEC managers were involved in tender irregularities and irregular awarding of loans by the parastatal in return for the benefits.
But Scorpions sources sympathetic to Tshavhungwa claim the allegations that Tshavhungwa had damning information against MEEC managers were untrue.
They claim the allegations came from a disgruntled MEEC official and certain Scorpions investigators saw it as an opportunity to deal with Tshavhungwa.
It appears that Scorpions investigators, led by Tshavhungwa, started looking at MEEC affairs last year after claims that funds borrowed from the MEEC had been misappropriated.
The alleged fraud had stopped plans to erect a manufacturing plant in Nelspruit.
MEEC provided a R2,4-million loan for the establishment of the plant to a local company called Savannah Forestry Equipment (SFE). The Scorpions were asked to probe the matter after the bulk of the R2,4-million loan from the MEEC disappeared. In November, the Scorpions arrested Haldane Murray, an SFE director, in connection with the saga.
But Scorpions investigators believe Tshavhungwa did not conduct the probe objectively. It is alleged that he diverted the focus of the Scorpions probe away from MEEC managers.
Scorpions investigators believe that the subsequent appointment of Tshavhungwa’s family members and the awarding of a tender to a company called Ramcorp Business Concepts, which is owned by Tshavhungwa’s cousin Mashudu Takalani, constituted kickbacks.
Scorpions investigators are also irked by the fact that Ramcorp benefited from a deal — to conduct risk assessment — triggered by the SFE saga. Ramcorp was appointed to conduct risk assessment by the MEEC last year.
But government sources sympathetic to Tshavhungwa insist that the allegations — that the appointment of his wife and the awarding of the contract constituted kickbacks — are “flimsy” and “insubstantial”.
They say the appointment of his wife and the awarding of the contract to Ramcorp were above board. “The Scorpions have to show what Tshavhungwa had against MEEC managers and suppressed in exchange for a bribe. Tshavhungwa’s wife applied for an advertised job in MEEC and went through the normal processes. Ramcorp tendered for a contract and won through normal tendering processes,” one Tshavhungwa associate said.
But the Scorpions appear not to accept this defence. The M&G understands that the Scorpions investigators believe that Tshavhungwa is a “sleeping partner” in Ramcorp.