Police have launched an investigation into SA Quantum boss Veon Bock, following his attempt to bribe the Mail & Guardian in a bid to stop the newspaper from publishing details of his firm’s contract with Noluthando Vavi, wife of Cosatu general secretary Zwelinzima Vavi.
Last week the M&G revealed that its reporters had used a concealed camera to record Bock and his associates handing over R40 000 in cash in a white envelope. He promised to pay a further R80 000 by the end of April.
This week the M&G handed the video, affidavits and the R40 000, kept in a safe by its lawyers, to the police.
The SAPS’s Wilson Tswaile confirmed that police were investigating a criminal charge against Bock. Tswaile said police would submit the docket to the prosecutor before any arrest was made.
Industry sources told the M&G this week that some SA Quantum shareholders are pushing for tough action against Bock, while others are defending him.
SA Quantum managing director Josiah Moshatane assured the M&G he would comment on Bock’s action by 10am on Thursday. Contacted at that time, he said: “There is no comment at the moment.”
Bank records and contracts between Noluthando Vavi and SA Quantum show that the company pays her a R60 000 monthly retainer plus 5% commission on sales to market financial products to union members.
Bock said she was specifically engaged to market the company’s products, including pension and other employee benefits, to unions, particularly Cosatu affiliates. She has helped secure direct and indirect business with the National Union of Mineworkers (Num) and the National Union of Metalworkers (Numsa).
Denial of conflict of interest
Zwelinzima Vavi has denied any conflict of interest, saying that this would arise only if Noluthando did business directly with Cosatu.
However, Vavi acknowledges his close relationship with former SA Quantum chief executive Abe Nduru, who entered into a contract with Noluthando last August, three months before he died.
In a speech at Nduru’s funeral last November Vavi cited his role in pension and employee benefit negotiations. Describing Nduru as a friend, comrade and confidant, Vavi said he had known him since the 1990s.
SA Quantum is one of two preferred service providers contracted by the Metal Industries Benefit Funds Administrators (Mibfa), which controls R70-billion of workers’ retirement funds, to provide asset management services. Mibfa’s head of investments, Elaine Smith, confirmed that SA Quantum was chosen by employee representatives — Numsa officials — to sit on the pension fund’s board of trustees.
Bock also said that Noluthando had been instrumental in securing a contract with Teba Bank, owned by members of NUM, Zwelinzima Vavi’s former union. The contract involved distributing benefits to widows and orphans of deceased unionists.
Cosatu, NUM and teachers’ union Sadtu this week defended Vavi, saying the M&G‘s report was a smear campaign to tarnish his name.