African National Congress (ANC) politician-turned-businessman Bulelani Ngcuka has emerged as the latest in a slew of politically connected people who stand to benefit from the R23-billion Gautrain project.
His lucrative interest in the multibillion-rand project, highlighted in the South African Communist Party’s (SACP) online newsletter, Umsebenzi, comes amid reports that other ANC heavyweights, Education Minister Naledi Pandor, Home Affairs Minister Nosiviwe Mapisa-Nqakula and parliamentary Speaker Baleka Mbete, also stand to benefit.
Umsebenzi said Ngcuka, who leads Amabubesi Investments, stands to profit from the project through his company’s 51% ownership of construction company Basil Read.
Basil Read owns 30% of Ilima Projects and the Ilima Group, which are among the 18 black economic empowerment (BEE) companies listed under the Strategic Partnership Group.
Ngcuka became the sole beneficiary of a 51% empowerment share in Basil Read when its fellow BEE partner, Mzi Khumalo of Metallon Ventures, sold his 25% shares to Ngcuka for a reported R70-million.
Bouygues Travaux Publics, the French parent company of Basil Read, which is also a 25% shareholder in the Bombela consortium building the Gautrain, had released the shares.
Ilima Consortium is also a BEE partner of South African-listed Group Five. With Tokyo Sexwale’s Mvelaphanda Group Limited, it owns 26% of Group Five.
Ilima Group is listed under the SPG as being ‘managed by previously disadvantaged individuals; [it] will be one of the service providers through Ilima Projects to ensure SPG meets its civil-contractor obligationsâ€.
This week, Ngcuka’s spokesperson, Sipho Ngwema, said: ‘The democratic movement has always produced quality cadres that played prominent roles in various sectors including government, civil society, trade union and sport.
‘Why must it be different in business? Why must the association be a factor that excludes them from business?†asked Ngwema. ‘Ngcuka is a businessman with no reason to shy away from any lucrative business deal. He is not in office and is not doing business with the office he once headed.â€
Ngcuka’s role in Gautrain is contained in the SACP’s response to President Thabo Mbeki’s stinging attack on it, the Congress of South African Trade Unions, the Sunday Times and the Democratic Alliance over their criticism of politicians who use their connections to enrich themselves.
The Sunday Times reported that Mapisa-Nqakula and Mbete have shares in Dyambu Holdings, while Pandor is involved in Black Management Forum Investments.
High flying bill
Meanwhile, the cash-strapped South African National Defence Force might have to fork out about R7-million of taxpayers’ money in total costs for Deputy President Phumzile Mlambo-Ngcuka’s trip to London last week.
This comes in the light of new information that Mlambo-Ngcuka hired a different jet, belonging to IT billionaire Mark Shuttleworth, to return to the country on Tuesday. According to media reports, the deputy president had to replace the Swiss jetliner hired for her at a cost of R4,55-million, after the aircraft broke down in London.
The Shuttleworth group owns an aircraft that is hired to third parties commercially by the Execujet company. In correspondence with the Mail & Guardian, Execujet this week estimated that a return flight from London on a chartered jet would cost R2,5-million. Stuart Kirkman, of the Shuttleworth Group, told the M&G that the deputy president’s office had been charged commercial rates for the hiring of the plane, but he could not provide an exact amount.
The latest revelations about Mlambo-Ngcuka’s travel habits follows on the heels of her controversial vacation with family and friends to the United Arab Emirates last year. That trip cost taxpayers more than R700Â 000.