Tony Leon, Gavin Varejes and the Mercedes-Benz

In his June 2001 declaration of interests to Parliament, Tony Leon noted under consultancies or retainerships: ‘Richmart (Pty) Ltd — investment holding company”. The value of benefits to be received, he wrote, was ‘nominal at this stage — to be negotiated”.

In years to come, the then leader of the opposition left that space empty. Whatever transpired in his negotiations with Richmart, Leon may thank his lucky stars he did not become a director.

That would have been too visible, and Richmart co-founder Gavin Varejes could all too easily have become a public liability — his name popped up in the Tigon matter and a scandal over R100 000 ‘hush money” he had paid to a woman who accused cricketing bad boy Shane Warne of sending her inappropriate messages.

Richmart was later renamed Richmark Holdings. The reason may be an appropriate metaphor for the political liability associated with Varejes: he changed the name, it is claimed, because of his admiration for Mark Rich, the international commodity trader, sanctions buster and tax cheat who was controversially pardoned by Bill Clinton in the final hours of his presidency. Donations by Rich’s former wife to Clinton’s Democratic Party and his presidential library fanned the scandal.

Varejes, of course, has his own tax issues. And neither has he shied away from political donations.

When asked about Varejes, Leon said: ‘I’ve known him and been friendly with him since we were in high school in Durban together — It goes back to the 1970s in Durban.”

He volunteered that the relationship was ‘entirely personal and social, I’ve never had any business relationship with him”.

Asked about his 2001 parliamentary declaration, he said: ‘It was talked about [but] nothing ever happened.” Leon said he could not remember well, but his becoming ‘a director or member” had been discussed.

When asked about donations or sponsorships from Varejes, Leon gave the stock response: ‘We don’t disclose our political donations.”

Asked whether the Mercedes he drove as DA leader had been donated by Varejes to the party — which, in turn, had made it available to him — he said: ‘Yes, correct.”

Leon then admitted that Varejes had also made other donations, saying, ‘Gavin’s support to the DA probably comes from his relationship with me.”

The Mercedes was declared to Parliament — but not as coming from Varejes. As of 2001 and every subsequent year, Leon wrote under benefits: ‘Use of motor vehicle”. The source of the benefit was always indicated as the DA.

Of course, Leon’s declaration was technically true — the DA had made available to him, as its leader, the use of an asset donated to it, the party, by Varejes, who happened to be his friend.

Call this information laundering or not, the true source of the donation remained hidden.

Varejes, calling Leon a ‘lifelong” friend, told the Mail & Guardian that he had ‘made many donations to the DA over the years”. One of these, he said, was the Mercedes. ‘I made the donation of my own volition because of my friendship and regard for Mr Leon.”

Varejes said he did not understand the M&G‘s question whether donating the vehicle to the DA, while the intention all along was that Leon would use it, was a ‘sleight of hand”.

If the benefit was truly intended to be the DA’s, has new leader Helen Zille inherited the Mercedes? Not so, admitted DA CEO Ryan Coetzee, who said it was initially donated to the party, but that once it was paid for Varejes had asked that the party give it to Leon, which was recently done. The donation would be reflected in the next register of members’ interests, he said.

Coetzee and Varejes both denied that Varejes had been favoured by the DA in return.