The battle to recover millions of rands sucked out of companies controlled by the late Brett Kebble has intensified with the launch of the first legal action against a former director — and the involvement of the Scorpions in a criminal probe.
Randgold & Exploration, part of Kebble’s JCI Group, has launched a sequestration application against former JCI Group ”investor relations manager” George Poole — allegedly a key agent for Kebble in various scams to siphon off company assets.
The legal papers provide the first official evidence of how the politically powerful benefited from funds looted from JCI coffers as Kebble and his cronies sought to buy influence and protection.
Thrust into the limelight is former North West premier Popo Molefe, whose Lereko group has just concluded a R224-million empowerment deal with forestry company Sappi.
According to the sequestration application, Molefe received R600 000 from one of the front companies set up by Kebble and Poole. The shelf company, Tuscan Mood 1224, was allegedly used to launder the proceeds of more than R125-million in assets stolen from the JCI group.
Molefe, after consultation with his lawyers, stated: ”I cannot comment on the said matter.”
Also revealed is that Kebble, via Poole, paid about R4-million towards the cost of the African National Congress Youth League national conference in 2004, allegedly using cash derived from misappropriated shares.
Poole’s attorney, Colin Strime, said Poole was opposing the sequestration, but he could not comment further until briefed by his client. Poole himself failed to return calls.
When Kebble was ousted from the group shortly before his murder last year, the new directors instituted a comprehensive forensic audit that uncovered misappropriation of hundreds of millions of rands from JCI and Randgold & Exploration.
It appears that Poole opted to cooperate with the investigation, but the court papers allege that it was discovered that he continued to conceal some transactions from the forensic auditors, including the one involving Molefe.
Documentation from Tuscan Mood showed that Molefe had received the R600 000 — but Poole apparently attempted to protect Molefe, claiming to the auditors that the R600 000 had nothing to do with the ex-premier and was for his own account to repay.
However, further digging by the auditors turned up evidence that Molefe was indeed involved and was in the process of repaying Poole for what was now termed a ”loan”.
Another source has confirmed that Molefe was making repayments. Molefe declined to answer questions about when he received the money, what it was used for, when he began repayments and how he came to obtain a ”loan” from Poole or Tuscan Mood.
It is understood that the payment or loan to Molefe was made in November 2003, when he was still premier of North West.
Randgold & Exploration has indicated it will seek to recover all assets alienated through Tuscan Mood, which would include the loan to Molefe.
But Molefe promises to be merely the first of a string of high-profile figures to be drawn publicly into the Kebble quagmire.
He was first mentioned in a Sunday Times report in March this year that quoted from a list, described as a ”loan account”, apparently drawn up by Kebble following a meeting with Poole in July or August last year.
Molefe was reflected as owing or benefiting to the tune of R768 000. The difference could be due to interest calculated on the R600 000.
The Sunday Times alleged the list included a host of senior ANC and Youth League figures who had received money — as well a total of R18-million ascribed to the ANC itself.
Now the sequestration application provides detailed insight into how Kebble raided his companies to fund his ”donations” and how some of those who assisted him took a fair slice of the proceeds for themselves.
According to the forensic auditors Poole, or his proxies, benefited from funds flowing through Tuscan Mood to the tune of R27-million, of which he has repaid some R7-million.
Included in these payments were:
- About R650 000 which paid the deposit on his luxury Fancourt house and nearly R10-million that went into the bond, which still has more than R6-million outstanding;
- R2,8-million which went to ”Charmies House”, apparently a home for his wife;
- R3,9-million which went to Turbine Aviation, a company of which Poole is a director and that owns or owned several helicopters;
- R3,2-million that went to Poole himself and a further R2,8-million that went to something called the Chardonnay Trust, which Poole has allegedly confirmed is linked to him.
Scorpions to tackle spider web of deceit
The Scorpions have begun an investigation into the massive fraud perpetrated by Brett Kebble and associates on companies the slain businessman controlled, write Nic Dawes and Sam Sole.
Peter Gray, who is CEO at Randgold & Exploration and JCI, said on Thursday that a senior team from the National Prosecuting Authority (NPA) had been briefed on the forensic investigation into the affairs of both companies.
”We have told them what we know to be true about certain transactions and the irregular distribution of corporate funds. We have also outlined our suspicions,” he said.
The team, led by Scorpions Gauteng director Gerrie Nel, will be given access to the ongoing forensic work being done by auditors, and information gathered from former executives who are now cooperating in the investigation. The hope is that the Scorpions will extract fresh information from those who are still holding out.
Their involvement is likely to focus further attention on John Stratton and Hennie Buitendag, the JCI directors with the most intimate knowledge of Kebble’s web of companies. Stratton was identified in JCI’s recent financial results as the recipient of R12,7-million in misappropriated funds, and Buitendag served on the boards of numerous companies involved with the fraud.
The move also brings back into the frame the intense battle between Kebble, his father Roger and the NPA. The Scorpions have investigated numerous charges against both men, including fraud and share price manipulation.
Some of these — notably those arising from the ”Skilled Labour Brokers” affair — were later dismissed; others are still being pursued. The Kebbles persistently alleged that then national director of public prosecutions Bulelani Ngcuka was abusing state resources in a campaign against them, and Brett Kebble’s apparent support for Jacob Zuma was seen by people on both sides as an attempt to align himself with Ngcuka’s adversaries.