About this case study: This narrative explains the nature of corrupt activities relating to high-profile cases, and is produced in the public interest. It relies on the final reports from the Judicial Commission of Inquiry into Allegations of State Capture, Corruption, and Fraud in the Public Sector, including Organs of State (the Zondo Commission), court documents, books, investigative journalism reporting, and other media articles, all in the public domain. The ISS has made all reasonable attempts to report the details accurately. Details for the cases in the Zondo Commission reports are provided up to December 2023. Further updates are ‘Recent Case Updates’ section below.
Summary
Corruption at Bosasa, a South African company specialising in providing services to government, spanned two decades. Angelo Agrizzi, the former Chief Operating Officer at Bosasa, became a whistleblower at the Zondo Commission. He testified that Gavin Watson, the former Chief Executive Officer at Bosasa, was the ‘godfather’ of the company and the mastermind behind a web of bribes and irregular contracts worth an estimated R12bn.
BOSASA paid large cash bribes were reportedly paid to high-ranking government officials in exchange for lucrative contracts. When Bosasa started attracting negative attention, bribes were allegedly also paid to Members of Parliament, President Zuma and other politicians, high-ranking employees at the National Prosecuting Authority (NPA) and journalists, to neutralise concern.
Watson and his associates – Angelo Agrizzi, Carlos Bonifacio, Jacques van Zyl, Daniel Mansell and others – allegedly used creative methods to launder cash for bribes and destroy evidence when Bosasa was under investigation by the Special Investigating Unit (SIU).
InsightISS Analysis
Our key insights on this case
Company officials engaged in fraudulent schemes designed to generate cash to pay bribes to state officials, politicians and the ruling party in ways that would be difficult for law enforcement officials to trace.
Lessons for prevention and early intervention
Story 1Department of Correctional Services
2003
Watson allegedly instructed Frans Vorster, who held various senior positions at Bosasa, to make contact with Gillingham from DCS about outsourcing a catering contract. Vorster met regularly with Gillingham about the specifications of kitchens and menus at the correctional centres so that Bosasa could tailor its bid accordingly. In exchange, Gillingham allegedly received around R20 000 in cash packed into A4 envelopes to make it look like the envelopes contained documents.
2004
Gillingham made a presentation to DCS – reportedly prepared for him by a group of Bosasa employees – motivating to outsource the catering contract. Agrizzi attended a tour of South African prisons with Vorster, Daniel Mansell (the managing director of Dyambu, the former name of Bosasa) and Gillingham to create a blueprint for the catering services. Those who attended on behalf of Bosasa were allegedly instructed not to wear uniforms that linked them to the company.
In July, Bosasa was awarded a three-year contract worth R718m (around R239m per year) to provide catering to seven large prisons. The costings were manipulated to inflate the price, with monthly costings on average 35% higher than the current prices. DCS paid Bosasa closer to R310m in the first year instead of the agreed-upon R239m.
In September, the catering contract was expanded to include seven satellite correctional centres and Agrizzi increased the price of the contract by R14m per month. Bosasa employees received significant salary raises because of the contract extension: Agrizzi’s salary almost doubled and Bosasa allegedly paid for his house to be painted to the value of R30 000.
Mti reportedly told Watson about an ‘access control’ contract that was in the pipeline at DCS.
2005
DCS invited bidders for the access control contract based on specifications that had been drafted by Agrizzi using insider information provided to Mansell from DCS.
Agrizzi bid under a newly established company called Sondolo IT, a large subsidiary of Bosasa, which won the contract for two years. An expansion valued at almost R237m was added later. Agrizzi testified that the contract was inflated from the start. Bosasa allegedly rewarded Agrizzi with financing valued at R174 000 to trade in his old Audi A6 for a new one.
Watson found out that DCS was looking to contract someone to install security fencing at correctional facilities. Bosasa was not in the fencing business and did not have the required internal capacity. So an agreement was struck that Bosasa would acquire a 26% stake in a company called Beta Fence, the Managing Director of which was Michael Rodenburg. Sondolo, Beta Fence and a company called Modutech allegedly conspired to design specifications that would ensure they won the contract with DCS.
Bosasa was embroiled in controversy at the time so, to avoid scrutiny, Watson, Mansell and Tony Perry, Bosasa’s company secretary, entered into negotiations with a company called Phezulu Fencing, in which Jean Rodenburg (Michael Rodenburg’s wife) and Gloria Josephs were majority shareholders.
Bosasa had access to the correctional centres before the tender was advertised and analysed the sites for two to three months to manipulate the specifications of the bid documents. Bosasa’s competitors had less than six weeks to prepare their bidding documents – a feat deemed ‘virtually impossible’ to pull off.
In November, the fencing contract was awarded to Phezulu Fencing for almost R487m. Agrizzi testified that the price of the contract had been inflated, and that a separate maintenance contract was awarded to Sondolo by Phezulu without being subject to proper procurement procedures. This was billed separately.
Bosasa waited until Phezulu had been awarded the fencing contract before they acquired it from Rodenburg and Josephs. Beta Fence supplied Phezulu with materials and benefited from these payments, as well the Black Economic Empowerment (BEE) benefits associated with Bosasa owning 26% of its shares.
2006
Gillingham had informed Bosasa that DCS was looking for a television management programme that could be controlled centrally so that, for example, the head of prisons could stream a national address by the minister to every prison cell in the country. Bosasa was given DSC forms to help it design such a system, and Agrizzi drew up a specifications document based on this. The television tender was only advertised after this – Bosasa bid for it via Sondolo and won, for an initial value of around R224m.
In November, Mti resigned as National Commissioner of Correctional Services.
2007
The catering contract from July 2004 was due to expire but was extended for a further year.
2008
Despite the new National Commissioner of Correctional Services, Vernie Petersen, assuring the Portfolio Committee on Correctional Services that the catering tender would be readvertised before it expired in July 2008, it was not. Instead, it was extended for another six months.
2009
Bosasa was awarded a new catering contract, spanning three years and outlining the same specifications as the 2004 contract.
In August, DCS was called before the Portfolio Committee to account for the catering contract extensions in relation to the feasibility of outsourcing, how the seven additional centres had been selected and what role Gillingham had played in the process. DCS never provided this information, and the Portfolio Committee found out via the media that Bosasa had been re-awarded the tender.
2010
Gillingham resigned as CFO of DCS. With Mti and Gillingham gone, Bosasa reportedly needed to bribe other DCS officials so that the corruption could continue.
Table 1: Monthly bribes allegedly paid by Bosasa to DCS officials between 2007 and 2016
Official name | Position | Bribe amount |
Nontsikelelo Jolingana | Acting National Commissioner of Correctional Services | R100 000 |
Grace Molatedi | Area Commissioner for Correctional Services in the Free State | R100 000 |
Josiah Maako | Contracts Manager | R15 000 |
Maria Mabena | Catering Development and Care |
R10 000 |
Shishi Matabella | Commissioner for Developmentand Care | R10 000 |
Mandla Mkabela | Unclear (role referred to as ‘commissioner’) | R10 000 |
Dikeledi Tshabalala | Head of Procurement | R15 000 |
Zach Modise | Regional Commissioner | R20 000 |
Mollet Ngubo | Finance | R15 000 |
TOTAL | R265 000 |
Although the total monthly bribes allegedly paid by Bosasa amounts to R265 000, there is evidence that Bosasa was paying up to R500 000 per month (which later increased to R750 000) to corrupt DCS officials between 2008 and 2016. The money was allegedly given to Sesinyi Seopela, a middleman and Bosasa associate, who passed it on to officials. The amount increased when Tom Moyane was appointed National Commissioner, although it is unclear why and whether Moyane personally benefited.
2014
Yet another new catering contract was awarded to Bosasa, again for a three-year period and with the same specifications as the 2004 and 2009 contracts. This time the annual value of the contract was R420m, with a net profit of 28% for Bosasa.
2016
Agrizzi, Watson, Reggie Nkabinde (Treasurer-General of the African National Congress (ANC) Youth League), Patrick Monyeki and Sam Sekgota met to discuss how Bosasa could retain the catering contract. Bosasa paid Sekgota’s consulting company R5m to secure a six-month contract extension and earned an additional R150m from the contract. When Sekgota tried this approach again later in the year, suggesting a further R10m for another extension, Watson reneged on their arrangement. Bosasa subsequently lost 40% of the contract. Watson reportedly considered litigating against DCS for awarding parts of the contract to Bosasa’s competitors, but he allegedly received advice from Member of Parliament Cedrick Frolick that doing so would be political ‘suicide’. Watson let the issue go.
It is estimated that Bosasa made R1bn from the irregularly awarded contracts between 2004 and 2016, and paid DCS officials up to R750 000 per month at times to ensure that the corruption continued.
Gavin WatsonBosasa CEO Alleged misconduct: Initiated contact with Gillingham, which led to the first contract, after which he used his connections to stay informed about future contracts with DCS. Ensured that Agrizzi drafted the specifications that DCS used for contracts so that Bosasa fit the bill perfectly. Managed the bribes paid to DCS officials. Status of accountabilityNo criminal charges were brought against him relating to Bosasa and he did not testify at the Zondo Commission. The SIU agreed not to interview Watson after he began litigating against them. Died in a car crash in August 2019. |
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Patrick GillinghamDCS CFO Alleged misconduct: Provided inside information to Bosasa about the availability of contracts with DCS and how to tailor bids, as well as advocating for Bosasa to win tenders. Received monthly cash payments of R110 000 from Bosasa, even after he resigned as CFO of DCS in 2010. Sold his car to Bosasa for R155 000 despite the trade-in value being far lower, with the balance being paid into his personal bank account. Received gifts from Bosasa new cars and a house. Apparently ‘entitled’ to an annual international holiday at Bosasa’s expense. Received payment from BOSASA for legal fees and his divorce settlement. Status of accountabilityFaces charges of fraud, corruption and money laundering for the contracts between DCS and Bosasa. The case has been repeatedly postponed due to Agrizzi’s ill health. In December 2023, the court ruled that Agrizzi should be tried separately from his co-accused to avoid further delays. Case postponed to 14 May 2024. |
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Angelo AgrizziBosasa COO Alleged misconduct: Integral to obtaining irregular contracts from DCS. Tailored tender specifications in Bosasa’s favour. Had knowledge of the bribes being paid to DCS officials and others, and that contract prices had been purposefully inflated. Rewarded with financing to trade in vehicle and significant salary increases. Status of accountabilityAgrizzi became a whistleblower at the Zondo Commission. Arrested in February 2019 and faces charges of fraud and corruption. The case has been repeatedly postponed due to his ill-health. In December 2023, the court ruled that Agrizzi should be tried separately from his co-accused. The matter was postponed to 26 April 2024. |
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Linda MtiNational Commissioner of Correctional Services Alleged misconduct: Provided Watson with inside information on upcoming DCS contracts and approved aspects of the irregular contracts in support of Bosasa. Received monthly cash payments of R65 000 from Bosasa. Facilitated a contract between Bosasa and FIFA for the soccer world cup in South Africa, and reportedly rewarded with payments for 10 years, even after he had resigned as National Commissioner in 2006. Received gifts from Bosasa/Watson including a house, travel costs, and his children’s tuition fees. Status of accountabilityCharged with contraventions of the Public Finance Management Act, corruption, fraud and money laundering. The case was repeatedly postponed due to Agrizzi’s ill-health. In December 2023, the court ruled that Agrizzi should be tried separately from his co-accused to avoid further delays. The case was postponed to 14 May 2024. |
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Daniel MansellDyambu Managing Director and shareholder Alleged misconduct: Attended tour of South African prisons to gain insights into how Bosasa could tailor its bids for contracts with DCS. Motivated for expansion of contracts to earn Bosasa more money from DCS. Continued to receive monthly payments from Bosasa after he moved to the United States (US) in 2013. Status of accountabilityThe NPA was in the process of extraditing him from the US in 2022. |
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Frans VorsterBosasa – various senior positions Alleged misconduct: Met regularly with Gillingham to gain inside information on the needs of the correctional facilities for Bosasa to align its bids accordingly. Brought Gillingham R20 000 in cash payments during these meetings. Attended tour of South African prisons to gain insights into how Bosasa could tailor its bids for DCS tenders. Status of accountabilityFaced charges of corruption. He passed away in June 2021. |
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Sesinyi SeopelaBosasa consultant Alleged misconduct: Facilitated bribe payments from Bosasa to corrupt DCS officials between 2008 and 2016. Status of accountabilityThe Zondo Commission recommended that he be investigated for corruption. No criminal charges have been brought against him relating to Bosasa. |
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Carlos BonifacioBosasa accountant Alleged misconduct: Allegedly facilitated bribe payments. Status of accountabilityArrested in February 2019 on charges of corruption and money laundering for the irregular DCS tenders. The charges were dropped in June 2022 after three years of litigation. |
Story 2Department of Home Affairs
Bosasa was re-awarded contracts to manage Lindela Repatriation Centre for two decades, despite investigations into the abuse of Lindela detainees and its terrible living conditions. Bosasa allegedly used Lindela as a ‘cash cow’, receiving at times R100m per year from the Department of Home Affairs (DHA) to run the facility. It increased its profits by partnering with the South African Police Service (SAPS) to bring more detainees to the facilities and, when it was forced to stop doing this, reduced the number of detainees but continued to receive the same funding from DHA. Lindela was auctioned off in 2019 when Bosasa was liquidated.
1996 – 2004
The Lindela Repatriation Centre was opened as a detention and repatriation facility for undocumented migrants. Located near Krugersdorp in Gauteng, it fell under the authority of DHA. Bosasa – then called Dyambu – won the contract to manage Lindela. From 1996 until about 2004, Bosasa was paid per person detained at Lindela. Watson reportedly instructed Vorster to increase the number of people detained so that Bosasa could increase its profits. Bosasa began assisting SAPS to detain illegal immigrants and had an agreement to collect them from SAPS facilities and transport them to Lindela. Lindela had capacity for 5 000 detainees but at one point 7 000 were incarcerated there. Bosasa’s payment increased from R28 to R45 per person per day.
2005
Twenty-one people reportedly died at the facility over eight months. Nonetheless, Bosasa’s contract with Lindela, valued at around R1bn, was renewed for 10 years from 2005 until 2015.
2006
The budget for Lindela was depleted within six months, so DHA provided an extra R120m. The Director-General of DHA, Arthur Fraser, was under pressure to explain the disappearing money, so he reportedly told Bosasa to stop collaborating with SAPS to increase the number of detainees. Vorster compromised by using other methods to transport detainees to Lindela, but Fraser also ended to this.
2007
The number of detainees at Lindela decreased by around 50%. DHA Minister Nosiviwe Mapisa-Nqakula requested a review of the Lindela contract to reduce costs – Bosasa was receiving funding on the basis that Lindela was occupied by 3 500 people when in fact the real number was only 1 000. Bosasa was charging DHA about R100m in 2007. Akhile Management and Consulting was subcontracted to review this fee on the recommendation of Kevin Wakeford, a consultant for Bosasa, who had previously worked with Akhile’s CEO, Aneel Radhakrishna. It is estimated that DHA would save around R7.5m per year based on Radhakrishna’s calculations, reducing Bosasa’s contract to roughly R93m per year. Agrizzi testified that the cost saving was required amid negative press about Bosasa’s management of Lindela.
These amendments justified keeping the contract in place for another five years. No tender process was conducted, and the National Treasury did not approve the extension. Although Radhakrishna allegedly wanted R7m to facilitate the extension, he and Watson agreed instead on monthly payments of R75 000 into a separate company belonging to Radhakrishna. These payments, executed by Bonifacio, continued until 2015. Agrizzi testified that he was aware of the arrangement.
2008
Amendments were made to the 2007 agreement stating that DHA would pay Bosasa based on a fixed 2 500 detainees per month, and food costs would only vary if the number of detainees exceeded 2 500.
2009
More amendments were made to the agreement, among which was the term that in 2015 DHA would have sole power to decide if the contract should be extended for another three years. While Bosasa continued charging DHA per the 2007 agreement, the number of detainees had drastically decreased by 2009. Agrizzi testified that to disguise these profits, Bosasa diluted them by increasing intercompany charges from non-performing entities. For example, fictious costs were created for security, rentals, management fees and software that were already being provided by Bosasa or by employees on Bosasa’s payroll.
2012
Justice Edward Cameron visited Lindela and valued the new contract due in 2015 at R90m per year.
2013
Another agreement was struck between DHA and Bosasa, in which Bosasa was paid around R100m per year. The number of detainees had further decreased since 2009 and Bosasa was making even bigger profits.
2014
The South African Human Rights Commission released a report on the very concerning living conditions at Lindela with support from Médecins Sans Frontières (Doctors without Borders).
2015
Bosasa’s contract was renewed for another five years.
2019
Bosasa went into liquidation and Lindela was auctioned off for R60m. It was reported that much of the money Bosasa received when detainees paid in cash at the canteen or telephone facilities was not declared and was used instead to bribe officials. Throughout Bosasa’s running of Lindela (1997 – 2017), humanitarian groups reported on poor medical care for detainees, poor living conditions and abuse by guards, including the maltreatment of minors.
Gavin WatsonBosasa CEO Alleged misconduct: Instructed Vorster to increase the number of detainees at Lindela by collaborating with SAPS. Agreed to irregular payments to consultant Aneel Radhakrishna. Status of accountabilityNo criminal charges were brought against him relating to Bosasa and he did not testify at the Zondo Commission. The SIU agreed not to interview Watson after he began litigating against them. Died in a car crash in August 2019. |
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Angelo AgrizziBosasa COO Alleged misconduct: Had extensive knowledge of how Bosasa’s fraudulent activities relating to Lindela. Status of accountabilityAgrizzi became a whistleblower at the Zondo Commission. Arrested in February 2019 and faces charges of fraud and corruption. The case has been repeatedly postponed due to his ill-health. In December 2023, the court ruled that Agrizzi should be tried separately from his co-accused. The matter was set down for 26 April 2024. |
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Arthur FraserDHA Director-General Alleged misconduct: Warned Bosasa that the increased budget for the Lindela project was attracting negative attention. Status of accountabilityNo criminal charges have been brought against him relating to Bosasa. |
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Frans VorsterBosasa – various senior positions Alleged misconduct: Collaborated with SAPS to increase the number of detainees at Lindela. Status of accountabilityFaced charges of corruption. He died in June 2021. |
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Aneel RadhakrishnaAkhile CEO Alleged misconduct: Received illegal monthly payments of R75 000 from Bosasa over an eight-year period. Status of accountabilityNo criminal charges have been brought against him relating to Bosasa |
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Carlos BonifacioBosasa accountant Alleged misconduct: Facilitated unlawful monthly payments of R75 000 from Bosasa to Radhakrishna. Status of accountabilityArrested in February 2019 on charges of corruption and money laundering for the irregular DCS tenders. The charges were dropped in June 2022 after three years of litigation. |
Story 3Departments of Health, Education, Social Development and Transport, the Airports Company South Africa and the South African Post Office
Officials at the Departments of Health, Education, Social Development and Transport were implicated in corrupt dealings with Bosasa, as were officials at the Airports Company South Africa (ACSA) and the South African Post Office (SAPO).
Table 2: Contracts – and related allegations – between Bosasa and other state entities
Contract | Allegation |
Department of Justice and Constitutional Development | |
R601m awarded to Sondolo IT in 2013 to provide courts across the country with access control. | According to Agrizzi, 2.5% (R15m) of the R601m contract was to be paid to department officials Norman Thobane (Head of Security) and Mams Nyambuse. Dr Khotso De Wee, Department COO and member of the tender board assessing the contract, was allegedly also paid off. Bosasa consultant Sesinyi Seopela allegedly delivered the payment. |
Sondolo was appointed to upgrade security at the South African Legal Union premises rented by the department | No tender process was followed and no permission was sought from the owners of the building. Agrizzi testified that he gave Seopela R1.9m in cash to make the contract happen. |
Private security system installation | Bosasa installed a security system valued at around R253 000 at the home of Desmond Nair, the chief magistrate of the Pretoria Magistrates’ Court. |
Department of Health (Mpumalanga) | |
Contract awarded to provide hospitals in Mpumalanga with certain services in 2016 | Joe Gumede, the chairman and Director of Bosasa Security, negotiated the contract and allegedly ensured that an employee at the Department of Health received car repairs to the value of more than R29 000. |
Department of Social Development | |
Fake software purchase | Agrizzi testified that two departmental officials created the fake contract to raise money for ANC elections. Bosasa received R4.5m without rendering any services. |
Department of Education | |
Contract for CCTV equipment and access control worth R10.5m | No proper procurement process was followed. Trevor Mathenjwa had a contact at the department and, after securing the contract, Mathenjwa allegedly requested that his contact be paid a bribe to encourage additional business. R1.25m was reportedly paid to Mathenjwa’s contact. |
Department of Transport | |
Contract awarded to Kgwerano, a fleet management subsidiary of Bosasa, to provide services to the government and 15 000 vehicles for senior government officials | Contract was allegedly unlawful. Agrizzi was reportedly told that Bosasa was paying off Brian Gwebu from Kgwerano, and someone called ‘Mlungise’ at the department. |
Phavisworld, a joint venture between Bosasa and Avis, was contracted to provide rental services to ministerial and governmental people | The partnership was not lucrative for Bossa, so Avis paid Bosasa an inflated amount of R23.5m for its share. Agrizzi testified that some of this was supposed to go towards paying off Seopela and Papa Leshbane. |
Passenger Rail Agency of South Africa (PRASA) | |
Sondolo secured an access control contract with PRASA | Agrizzi testified that bribes were paid to secure the contract. The acting Chief Procurement Officer at PRASA, Mbulelo Gingcana, allegedly received security installations to the value of around R239 000. |
Airports Company South Africa (ACSA) | |
Bosasa was awarded a five-year contract for multi-storey car parks at OR Tambo in 2001, but the contract still existed in 2019 | Watson reportedly had connections with ACSA’s Head of Risk, Thele Moema, and Head of Security, Siza Thanda. Agrizzi testified that he wrote the specifications of the tender to give Bosasa the upper hand. He claimed Moema and Thanda were paid monthly to help Bosasa secure the contract. Other officials that Agrizzi claimed received cash payments were Reuben Pillay, Joe Serobe, Bongi Mpungose, Mohammed Bashir and Jason Tshabalala. Agrizzi said payments continued until at least 2017. |
South African Post Office (SAPO) | |
Bosasa awarded contract to provide security services | Bosasa won the tender before it was even advertised. Cash payments and gifts were allegedly regularly given to SAPO’s Head of Security, Siviwe Mapisa, and CEO, Maanda Manyatshe. Mapisa reportedly attended a hunting trip at Watson’s brother’s game farm. |
Universal Service and Access Agency of South Africa (USAASA) | |
Bosasa awarded contract to supply iPads to schools in Gauteng | Fezikile Mzazi from Sondolo reportedly told Agrizzi that he had contacts at USAASA. This allegedly led to the irregular awarding of the contract. An initial sum of R500 000 was paid in cash to Sondolo before the contract was cancelled. |
Randfontein Local Municipality | |
Contracts for security fencing and CCTV access control worth in excess of R10m | The usual tender processes were bypassed in place of emergency procurement processes. Andile Ramaphosa met with the CEO of Dahua, a Chinese company that would supply surveillance products. An unnamed municipal employee allegedly wanted a cash bribe and security features to be installed at his home in exchange for facilitating the contract. |
Story 4The SIU investigation
After receiving a tip that the SIU wanted to investigate Bosasa, Watson and his associates allegedly destroyed incriminating electronic and physical evidence. Watson brought an interdict against the SIU to delay their investigation, and after Bosasa and the SIU agreed on the rules of engagement, Watson was protected from being interviewed. Bosasa requested a postponement of the collection of evidence from Bosasa facilities, which the SIU agreed to. The SIU was still able to collect significant evidence of corrupt contracts with the DCS.
2006
The SIU was instructed to investigate Bosasa.
2007
Watson launched a court interdict to prevent SIU from investigating Bosasa.
Watson was tipped off by Seopela that the SIU was going to raid Bosasa so Watson, Agrizzi and van Tonder went to the office to get rid of incriminating physical evidence. They focused on documents reflecting the sale agreement with Phezulu Fencing and payments to Mti for awarding Bosasa tenders, which was the evidence the SIU was interested in. Watson apparently shredded the agreement with Mti by hand, placed it in a Ziplock bag with water in it, and flushed it down the toilet. While some evidence was transported to a nearby farm where it was stored in safes for two years, other evidence was burnt. Watson also instructed IT employees at Bosasa to fake a server crash and to back up the information elsewhere. Agrizzi testified that 70% of the information was removed from the servers and that much of this pertained to irregular tenders with the DCS.
2008
Bosasa and the SIU agreed on a way to proceed with the investigation that prohibited investigators from conducting interviews with key witnesses, including Watson. When the SIU released its report in 2009, Watson’s name was not mentioned.
Watson reportedly instructed Leon van Tonder and Agrizzi to destroy the records of invoices from Blakes Travel, which showed that Bosasa had paid for the travel of government officials. Blake Travel allegedly cooperated with Bosasa for years because they received R1.7m to R2.2m’s worth of a business a month from Bosasa. It allegedly issued Bosasa with new blank invoices books for auditing purposes. Agrizzi testified that Watson’s men dug a hole at an old mine hostel across the road from Bosasa, threw computers and records into it, set it on fire and then covered the hole with concrete.
2009
Bosasa and the SIU agreed on a date for the SIU to visit Bosasa’s premises to access their servers and copy the electronic information for analysis. Watson then asked the SIU to postpone the date because Bosasa was conducting maintenance on its servers. Agrizzi testified that the real reason was that Watson wanted the IT specialists at Bosasa to remove incriminating evidence from the servers. The SIU agreed to the postponement because it had already lost the element of surprise and did not feel that delaying the investigation by a few more days would make a difference. When the SIU did copy the hard drives, a cyber forensic expert noticed that files were missing. Bosasa had used a software called Eraser to destroy or delete over 40 000 files from their servers.
The SIU was able to gather considerable evidence of corruption involving Bosasa and DCS. It released its report on Bosasa, focussing on the evidence of the four irregular tenders with DCS. It handed over the report to the NPA for action, but criminal charges were not brought against those involved until February 2019.
2018
Bosasa went into liquidation. Agrizzi testified that documents on Bosasa’s supply chain management were destroyed to avoid giving them to liquidators and investigators.
Gavin WatsonBosasa CEO Alleged misconduct: Gave instructions to destroy evidence prior to the SIU’s investigation and destroyed some evidence himself. Status of accountabilityNo criminal charges were brought against him relating to Bosasa and he did not testify at the Zondo Commission. The SIU agreed not to interview Watson after he began litigating against them. Died in a car crash in August 2019. |
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Angelo AgrizziBosasa COO Alleged misconduct: Aware of and helped destroy evidence prior to the SIU’s investigation. Status of accountabilityAgrizzi became a whistleblower at the Zondo Commission. Arrested in February 2019 and faces charges of fraud and corruption. The case has been repeatedly postponed due to his ill-health. In December 2023, the court ruled that Agrizzi should be tried separately from his co-accused. The matter was set down for 26 April 2024. |
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Leon van TonderBosasa IT manager, brother of Andries van Tonder Alleged misconduct: Destroyed incriminating evidence prior to the SIU investigation into Bosasa. Status of accountabilityThe Zondo Commission recommended that he be investigated for corruption. No criminal charges have been brought against him relating to Bosasa. |
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Sesinyi SeopelaBosasa consultant Alleged misconduct: Warned Watson about the SIU investigation, giving Watson time to mobilise against the SIU and destroy evidence. Status of accountabilityThe Zondo Commission recommended that he be investigated for corruption. No criminal charges have been brought against him relating to Bosasa. |
Story 5The NPA
Watson, Agrizzi and Mti allegedly paid NPA employees Nomgcobo Jiba, Lawrence Mrwebi and Jacobeth Lepinka monthly for at least five years to provide them with inside information about the investigation and prosecution of Bosasa employees. The NPA’s Menzi Simelane’s actions delayed the matter, to Bosasa’s advantage and delayed the progress of the prosecutions. Ten years passed between the NPA receiving the SIU report on Bosasa and laying the first charges against Bosasa employees.
2009
Even though Bosasa senior employees were able to get rid of a lot of documentation, the SIU managed to gather considerable evidence of irregular tenders and corrupt dealings with DCS. It referred its report to the NPA in November 2009.
2010
Advocate (Adv) Glynnis Breytenbach, Deputy Director of Public Prosecutions in the Specialised Commercial Crimes Unit, was concerned that little had happened regarding the Bosasa matter since November 2009. She was particularly concerned about Linda Mti, who had recently been appointed Head of Security at the 2010 soccer world cup in South Africa amid allegations against him. The National Director of Public Prosecutions (NDPP), Adv Menzi Simelane, suggested she focus on other prosecutions and warned her against making negative insinuations about Mti. She and her team were removed from the project.
Simelane reported to the Minister of Justice that the SIU report on Bosasa was ‘unconstitutional’, ‘cannot hold any water’, that the race of the investigators and prosecutors had ‘predetermined’ the investigation, and that the media had been overly involved. Clinton Oellermann, a Chief Investigator with the SIU from 2005 to 2012, gave extensive evidence countering the criticisms of the SIU report, noting that he did not think the report was unconstitutional because the evidence had been gathered in line with the SIU Act and the parameters of the presidential proclamation giving rise to the investigation. He also stated that the media coverage had no impact on the investigation and that the team was diverse in race and gender.
Watson and Agrizzi had regular meetings with Mti to discuss the SIU/Hawks situation. Mti allegedly proposed three officials to bribe for information about the investigation and prosecution: Adv Jiba, who Mti code-named ‘Snake’ because she was sharp and always ready to strike; Adv Mrwebi, code-named ‘Snail’ because he was slow to get things done; and Lepinka, a senior NPA secretary, code-named ‘Jay’. Mti allegedly met with Jiba and Lepinka monthly and passed the information directly to Agrizzi or Watson. Mrwebi reportedly gave information to Agrizzi or Watson directly instead of going through Mti.
There is evidence that these NPA employees provided extensive inside information to Bosasa about the status of the case from 2010 until at least 2015. They allegedly received monthly cash payments from Mti (R100 000 for Jiba, R20 000 for Lepinka and R10 000 for Mrwebi), which he had collected from Watson. Agrizzi knew about every payment and often delivered the money to Mti.
Watson and Agrizzi received information from Mti and corroborated this with information from Seopela. Seopela had close connections to high-ranking NPA employees, including Simelane. The information was verbal and written, and included confidential documents and meeting minutes. Important documents leaked included:
- The SIU report into Bosasa.
- An affidavit deposed by Hendrick Truter, who worked in procurement at DCS, attesting to what proper procurement processes should be like at DCS.
- An affidavit deposed by Hendrick Pretorius, who worked in tender administration at DCS, addressing contracts that DCS had with Bosasa.
- A key document from the Hawks addressed to the commander of the anti-corruption task team outlining the witnesses who had been consulted and those that still needed to be. This was extremely useful to Bosasa, allegedly allowing them to offer bribes to witnesses to change their statements.
- Bosasa also had insights into subpoenas that were going to be issued. Agrizzi regularly met with two subpoenaed witnesses, Mark and Sharon Taverner, to delay their appearance and ensure that they did not compromise Bosasa in their statements.
These were not all the documents that Agrizzi received, but the ones he had in his possession at the time of the Commission.
In December, Jiba was appointed Deputy NDPP by Jacob Zuma.
2012
Agrizzi got hold of a progress report stating that the investigation and prosecution were still under consideration. The NPA were considering criminal charges against Gillingham, Mansell and others, and was looking to enrol the matter in February 2013.
2013
Another progress report on the investigation was leaked to Agrizzi. A draft charge sheet was being prepared to charge Gillingham with corruption, money laundering and fraud. The matter would be enrolled that year. Agrizzi, Daniel Mansell, Frans Vorster and Mti were also facing charges.
Mti reportedly gave Agrizzi a copy of a provisional racketeering charge sheet, which named Gillingham, Mti, Agrizzi, Mansell, Smith, Watson, Bonifacio and Vorster, among others, as well as a number of entities linked to Bosasa. Agrizzi and Mti met with lawyers to see if they could get the SIU report thrown out in order to close the case and prevent prosecutions. Jiba allegedly provided advice on how best to go about this.
2015
Watson allegedly said he would ask Zuma – with whom he claimed to be close – to ‘put the right people in the right place’ to interfere with the investigation and prosecution. One of Watson’s suggestions was Berning Ntlemeza, the acting Head of the Hawks at the time. Ntlemeza was appointed Head of the Hawks for two years. It is not clear if this was due to Watson but Ntlemeza replaced eight of nine provincial Hawks’ heads and allegedly fast-tracked the promotions and appointments of around 60 friends. This greatly affected the efficiency of the Hawks.
Gavin WatsonBosasa CEO Alleged misconduct: Worked with Mti to bribe NPA staff to gather information on the case progress. Status of accountabilityNo criminal charges were brought against him relating to Bosasa and he did not testify at the Zondo Commission. The SIU agreed not to interview Watson after he began litigating against them. Died in a car crash in August 2019. |
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Angelo AgrizziBosasa COO Alleged misconduct: Worked with Mti to organise payments to people at the NPA to gather information on the case progression. Status of accountabilityAgrizzi became a whistleblower at the Zondo Commission. Arrested in February 2019 and faces charges of fraud and corruption. The case has been repeatedly postponed due to his ill-health. In December 2023, the court ruled that Agrizzi should be tried separately from his co-accused. The matter was set down for 26 April 2024. |
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Nomgcobo JibaNPA advocate and Deputy NDPP Alleged misconduct: Received R100 000 per month between 2010 and at least 2015 to provide inside information on developments in the investigation and prosecution of Bosasa employees to Mti, who passed the information on to Watson and Agrizzi. Status of accountabilityStruck from the role of advocates in 2016 for her conduct in relation to politically connected cases. The Supreme Court of Appeal set aside the decision to strike her from the role of advocates in 2018. She was fired from the NPA in 2019 when allegations against her emerged at the Zondo Commission. |
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Jackie LepinkaNPA senior secretary and Mti’s former secretary Alleged misconduct: Received R20 000 per month from 2010 until at least 2015 to provide insider information to Bosasa about investigations and prosecutions. Status of accountabilitySuspended from the NPA in May 2019 for stealing a laptop in 2014. The suspension coincided with revelations made about her at the Zondo Commission. The suspension was dismissed in October 2019 but she did not return to work because the NPA filed an application for the labour court to review the decision to stop her suspension. She was convicted in February 2023 for the unlawful possession of a laptop with classified information. |
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Lawrence MrwebiNPA Special Director Alleged misconduct: Received R10 000 per month from 2010 until at least 2015 to provide insider information to Bosasa about investigations and prosecutions. Status of accountabilityRemoved from the NPA in 2019 following an investigation into his conduct. |
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Linda MtiNational Commissioner of Correctional Services Alleged misconduct: Suggested that Watson bribe NPA employees Jiba, Mrwebi and Lepinka to obtain information about the investigation and prosecution of Bosasa employees. Met regularly with Jiba and Lepinka and passed the information on to Watson and Agrizzi. Delivered cash payments from Watson to the NPA employees. Status of accountabilityStatus of accountability: No criminal charges have been brought against him. |
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Menzi SimelaneNPA National Director of Public Prosecutions Alleged misconduct: Suppressed prosecution of Bosasa case and tried to discredit the 2009 SIU report. Status of accountabilityAppointment as NDPP by Zuma was found to be improper and he was removed from the position. No criminal charges have been brought against him related to BOSASA. |
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Sesinyi SeopelaBosasa consultant Alleged misconduct: Corroborated information given to Watson and Agrizzi by Mti. Status of accountabilityThe Zondo Commission recommended that he be investigated for corruption. No criminal charges have been brought against him relating to Bosasa. |
Story 6Parliament
Background
Watson made an effort to get on the good size of Frolick, a long-time friend of the Watson family and the National Assembly Chairperson. He reportedly wanted Frolick to put in a good word for Bosasa with Vincent Smith, the Chairperson of the Portfolio Committee on Correctional Services and Justice, who was initially ‘extremely anti-Bosasa’. For example, Smith had allowed Adv Willie Hofmeyr to present the SIU’s report on Bosasa to the portfolio committee – the evidence of ‘blatant irregularities’ and possible corruption shocked and concerned the committee.
2009
Watson allegedly instructed Agrizzi to begin monthly payments of R40 000 to Frolick, which either Agrizzi himself delivered or Watson’s brother, Valence, delivered. Frolick denied receiving these payments, admitting only to receiving R25 000 for the ANC’s election fund and some gifts from Valence Watson.
2011
After a meeting in Rivonia between Watson, Agrizzi, Smith, Magagula and Ngwenya, Smith allegedly received monthly cash bribes of R45 000 (which increased to R100 000 in 2016), security upgrades to his home and money towards his daughter’s university fees, in exchange for his support of Bosasa during parliamentary committee meetings. Some of the payments were made to his company, Euroblitz. Magagula and Ngwenya allegedly received R30 000 and R20 000 respectively per month.
Gavin WatsonBosasa CEO Alleged misconduct: Convinced Frolick to get Smith to support Bosasa. Allegedly made monthly payments to Frolick for doing so, and bribed two other committee members, Magagula and Ngwenya. Status of accountabilityNo criminal charges were brought against him relating to Bosasa and he did not testify at the Zondo Commission. The SIU agreed not to interview Watson after he began litigating against them. Died in a car crash in August 2019. |
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Angelo AgrizziBosasa COO Alleged misconduct: Attended the meeting that convinced Smith to support Bosasa, and was allegedly involved in bribing Magagula and Ngwenya. Status of accountabilityAgrizzi became a whistleblower at the Zondo Commission. Arrested in February 2019 and faces charges of fraud and corruption. The case has been repeatedly postponed due to his ill-health. In December 2023, the judge ruled that Agrizzi should be tried separately from his co-accused. The matter was set down for 26 April 2024. |
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Cedric FrolickNational Assembly Chairperson of Committees Allegedly received monthly payments of R40 000 for facilitating contact between Watson and Smith and convincing Smith to support Bosasa. Status of accountabilityNo criminal charges have been brought against him relating to Bosasa. The Zondo Commission recommended he be investigated for money laundering, fraud and/or corruption. Parliament’s Joint Committee on Ethics and Members’ Interests cleared him of allegations of breaching the code of conduct in October 2023. As of November 2023, he was still the Chairperson of Committees. |
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Vincent SmithPortfolio Committee on Correctional Services and Justice Chairperson Alleged misconduct: Smith allegedly received monthly cash bribes of R45 000 (which increased to R100 000 in 2016), security upgrades to his home and money towards his daughter’s university fees to the value of R600 000. Allegedly received payments to his company, Euroblitz. Status of accountabilityCharged with corruption, tax fraud, money laundering and contraventions of the Financial Intelligence Act in 2020. The matter was postponed to 22 April 2024. |
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Vuselelo MagagulaPortfolio Committee on Correctional Services and Justice member Alleged misconduct: Allegedly received monthly payments of R30 000 from Watson for supporting Bosasa during parliamentary committee meetings. Status of accountabilityNo criminal charges have been brought against him relating to Bosasa. |
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Winnie NgwenyaPortfolio Committee on Correctional Services and Justice member Alleged misconduct: Allegedly received monthly payments of R20 000 from Watson for supporting Bosasa during parliamentary committee meetings. Status of accountabilityNo criminal charges have been brought against her relating to Bosasa. The Zondo Commission recommended she be investigated for corruption. Parliament’s Joint Committee on Ethics and Members’ Interests cleared her of allegations of breaching its code of conduct in October 2023. |
Story 7The ANC
Bosasa’s political connections
The ANCBosasa paid all the costs for the construction of the ANC’s ‘war room’ command centres in the leadup to the 2014 elections. The Zondo Commission interpreted this as Bosasa’s efforts to maintain the ANC’s position as the ruling party so that its corrupt members could continue to act in Bosasa’s interests. President Cyril Ramaphosa testified that he did not think that the war rooms were being paid for entirely by Bosasa, but conceded that it was a lapse in ANC judgement to accept this assistance from an entity that had previously faced allegations of corruption. Bosasa also paid to fund and cater various ANC events, and provided Bosasa facilities to the ANC for its election campaign. Bosasa paid the funeral expenses for ANC members and their families. |
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Jacob ZumaWatson first met Zuma in 2009 and a rapport developed between the two. Zuma is known to have visited Bosasa facilities at least twice: once with Dudu Myeni for a visit that lasted more than four hours, and once when Zuma visited a prawn production facility in Krugersdorp belonging to Bosasa. Bosasa reportedly hosted high-end functions for Zuma, such as his birthday, which cost around R3.5m per year and were treated as ‘corporate social investment payments’ in the company’s financial statements. Agrizzi was once tasked with organising a cake for Zuma’s 72nd birthday, which displayed the Bosasa logo. In May/June 2016, Watson, Philip O’Quigley, International Chairman of the Falcon Oil and Gas Group, and Liezl Oberholzer of the same company, allegedly met with Zuma to ask him to nudge Minister of Minerals and Energy, Ngoako Ramatlhodi, to amend certain ‘restrictive regulations’ within the oil and gas industry. Watson also allegedly paid Zuma R300 000 to make calls to shut down the Hawks investigation into Bosasa. There is evidence that Zuma did make these phone calls, which led to Bosasa obtaining confidential information from the Hawks about developments in the investigation. Watson also told Agrizzi and others that he paid Myeni R300 000 per month to give to Zuma, under the pretext that it was for the Jacob Zuma Foundation. The Zondo Commission found that there were reasonable grounds to suspect Zuma had breached his obligations as president and that his relationship with Bosasa represented a conflict of interest. Status of accountabilityNo charges have been brought against him relating to Bosasa. He was sentenced to 15 months’ imprisonment for defying a court order to appear at the Zondo Commission in June 2021 but released on medical parole in September 2021. He was returned to prison when his release was found to be unlawful but released again the same day. |
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Dudu MyeniMyeni allegedly facilitated a meeting between Zuma, Watson, O’Quigley and Oberholzer to facilitate loosening the regulations of the oil and gas industry. She also allegedly regularly instructed Bosasa to organise Zuma’s birthday parties, and is known to have visited Bosasa facilities at least once with Zuma. In her capacity as board chair of South African Airways (SAA), she reportedly looked into the possibility of SAA contracting Bosasa for security and catering contracts. Myeni allegedly benefited from Bosasa in the following ways: upgrades worth more than R486 000 to the security of her home in Richards Bay; a Louis Vuitton handbag reportedly stuffed with R300 000 in cash; R300 000 per month from Bosasa, which she delivered to Zuma under the guise of donations to the Jacob Zuma Foundation; over R107 000 worth of hotel and travel paid for by Bosasa. Status of accountabilityShe faces charges of corruption and fraud for gratifications she received from Bosasa. The case was postponed until May 2024 to set the trial date. She was found to be an uncooperative witness at the Zondo Commission, where she was criticised for abusing her privilege to avoid self-incrimination. |
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Nomvula MokonyaneBosasa’s interest in Mokonyane was her influence as a senior official in government and the ANC. At different times, she was Premier of Gauteng, Minister of Water and Sanitation, Minister of Communications and Deputy Minister of Environmental Affairs. As Premier of Gauteng, she allegedly approached Bosasa to prepare a report on security at Gauteng hospitals to justify a tender that Bosasa could bid for. As Minister of Water Affairs, she reportedly tried to do something similar by requesting that Bosasa analyse the security of dams in South Africa. Watson instructed Agrizzi to find a consulting firm to subcontract, but no tender came from this project. Mokonyane allegedly received many gifts from Bosasa in exchange for her support, including: Bosasa paying for the venue, catering, equipment, alcohol and birthday gifts for her 40th birthday party; monthly payments of R50 000; Bosasa catering Christmas parties for her and her family for over 10 years; security instalments at her homes; paying for her son’s funeral; and providing car hire for her daughter’s vacation in China. She has denied these accusations, and only made concessions after being confronted with relevant evidence by the Zondo Commission. Status of accountabilityNo criminal charges have been brought against her relating to Bosasa. The Zondo Commission recommended she be investigated. |
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Gwede MantasheBosasa viewed Mantashe as a ‘brilliant connection’ for his role as secretary-general of the ANC and member of the National Executive Committee, which the president must consult before making ministerial appointments. Bosasa allegedly paid for security upgrades to three of Mantashe’s homes. Mantashe denied that the upgrades were a bribe, claiming they were paid for by community donations akin to contributions made to a traditional wedding ceremony. The Zondo Commission disputed this because of the sheer scale of the upgrades and the fact that he contributed nothing towards them himself. The Commission concluded that there was prima facie evidence that Mantashe had been corrupt and that this should be further investigated. Status of accountabilityNo criminal charges have been brought against him relating to Bosasa. The Zondo Commission recommended he be investigated for receiving gratifications from Bosasa. |
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Thabang MakwetlaMakwetla was the Deputy Minister of Correctional Services. Bosasa allegedly paid for security installations and maintenance at his house worth more than R308 000. He did not deny receiving the installations, but claimed he was shocked that they were free as he had requested that Watson provide him with an invoice on several occasions. Bosasa eventually invoiced him for R90 000, of which he paid R25 000 because he only wanted to pay for the items he had requested to be installed. The Zondo Commission found it unconvincing that Makwetla did not view the exchange with Bosasa as a conflict of interest, especially considering he never disclosed the gift. Status of accountabilityNo criminal charges have been brought against him relating to Bosasa. The Zondo Commission recommended he be investigated for receiving gratifications from Bosasa. |
Side StoryModus Operandi
False invoices
False invoices were created for non-existent entities. Bonifacio and Jacques van Zyl, accountants at Bosasa, allegedly found liquidated companies and used their company names to generate invoices as though they had supplied Bosasa with services or goods.
Cash cheques were produced so that Bosasa could make the fake payments, which were then cashed in by Bosasa. If any questions were asked by the auditors, Bosasa claimed it was contracting Broad-Based Black Economic Empowerment (B-BBEE) companies that did not have bank accounts and, therefore, required cash payments. Similarly, companies near liquidation were identified to create false invoices, or companies would be expressly created to generate invoices, after which Watson would instruct that the company be liquidated.
Invoices for goods/services never received
Service suppliers would provide Bosasa with fake invoices for goods and services that were never rendered. Bosasa paid the service providers by Electronic Funds Transfer (EFT), who then paid back the money in cash after taking their share. The cash was delivered directly to Watson.
There are numerous examples of this method. Bosasa purchased a company called F&R Phakisa Operations, which owned a fuel station. F&R Phakisa would invoice for fuel, Bosasa would pay by EFT, and then Phakisa would deliver the amount in cash to Bosasa’s head office. Facilitated by Riaan Hoeksma, Jumbo Liquor would be paid for alcohol and then deliver cash instead of alcohol to Bosasa after taking 5-7% commission. The invoice would be recorded as a tax-deductible operational expense. van Tonder collected cash from a company called AA Wholesalers. Equal Trade would draw cash, give it to Bosasa and then receive the balance as an EFT from Bosasa. Sometimes as much as R6m was collected from Equal Trade per month.
Cash sales at Lindela and mine hostels
Bosasa ran the canteen and telephone facilities at Lindela, the only places that detainees could access these goods and this service. Detainees could only pay, of which only 10-15% was declared and the rest was physically transferred to the vaults at Bosasa’s headquarters. These takings were estimated at between R300 000 to R400 000 per month.
Bosasa also administered mine hostels where they took the money from cash bars and canteens.
Ghost employee payments
Lists of fake employees who were supposedly being contracted for construction work by Riekele were created. van Tonder and others drew up the fake payroll sheets on Excel, cheques were drawn for the ‘wages’, and then Bosasa employees would cash out the cheques.
Inflated invoices
Corrupt suppliers would over-invoice for goods that were legitimately delivered. AA Wholesalers was one such supplier. Bosasa would make an EFT payment in respect of the full of amount of the invoice, but a smaller amount of goods would be delivered than had been invoiced for, along with the balance of the payment minus the cost of the goods in cash.
Death benefit fund
Another method used was the employee death benefit scheme with Metropolitan Life Insurance. Because death certificates sometimes took time to be processed, Bosasa would advance payments to the family members of Bosasa employees who had died. When Metropolitan eventually paid out to Bosasa, Bosasa withdrew the amount in cash. This looked inconspicuous in the books and was frequently used because of the number of Bosasa employees.
Gavin WatsonBosasa CEO Alleged misconduct: Ordered the generation of cash, which was used to make monthly bribes for years. Status of accountabilityNo criminal charges were brought against him relating to Bosasa and he did not testify at the Zondo Commission. The SIU agreed not to interview Watson after he began litigating against them. Died in a car crash in August 2019. |
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Angelo AgrizziBosasa COO Alleged misconduct: Actively involved in or had knowledge of the corruption at Bosasa. Status of accountabilityAgrizzi became a whistleblower at the Zondo Commission. Arrested in February 2019 and faces charges of fraud and corruption. The case has been repeatedly postponed due to his ill-health. In December 2023, the court ruled that Agrizzi should be tried separately from his co-accused. The matter was set down for pre-trial on 26 April 2024. |
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Carlos BonifacioBosasa accountant Alleged misconduct: Generated fake invoices, among other unlawful activity, to facilitate the generation of cash used by Bosasa for bribes. Status of accountabilityArrested in February 2019 on charges of corruption and money laundering for the irregular DCS tenders. The charges were dropped in June 2022 after three years of litigation. |
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Jacques van ZylBosasa accountant Alleged misconduct: Allegedly generated fake invoices among other unlawful activity to facilitate the generation of cash used by Bosasa for bribes. Status of accountabilityNo criminal charges have been brought against him relating to Bosasa. The Zondo Commission recommended he be investigated for corruption, fraud and failure to report suspicious transactions as required by Financial Intelligence Centre Act. |
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Andries van TonderBosasa – various senior positions Alleged misconduct: Allegedly made payments to entities and people on Watson or Agrizzi’s instructions. Status of accountabilityFaces fraud and corruption charges for the corrupt DCS contracts. In December 2023, the judge ruled that Agrizzi should be tried separately from his co-accused to avoid further delays. Case postponed to 14 May 2024. |
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Riaan HoeksmaRiekele Construction and Jumbo Liquor Wholesalers owner Alleged misconduct: Riekele Construction was implicated in constructing or renovating the homes of many government officials and others bribed by Bosasa. Through his cash flush company, Jumbo Liquor Wholesalers, helped Bosasa generate cash that could be used for bribes and took his commission. Status of accountabilityNo criminal charges have been brought against him relating to Bosasa. The Zondo Commission recommended he be investigated for money laundering and fraud. |
RecentCase Updates
Latest developments from news sources
- In June 2024, the fraud and corruption cases against Agrizzi, Mti, Gillingham and Van Tonder were set down for August for pre-trial proceedings. Agrizzi’s case has been separated from the rest.
- On 2 August 2024, the Johannesburg High Court postponed the corruption trial against Smith until April 2025, allowing him time to get his legal affairs in order after Smith’s attorney withdrew citing nonpayment. The judge expressed concern about the many postponements and considerable delays in the trial caused by Smith’s unresolved legal challenges.
- 6 August 2024: Assets worth more than R53m linked to Bosasa corruption were seized by the NPA. The assets included homes, cars, bank accounts, investments and shares in businesses, belonging to Agrizzi, van Tonder, Mti and Gillingham, as well as to their wives and children. On 9 September 2024, the Gauteng High Court in Pretoria will rule on the order.
- On 11 August 2024, it was reported that the ANC’s Integrity Commission will investigate Cedric Frolick for his alleged role in corruption at Bosasa.
Public Impact
Irregular Government Contracts
Estimates suggest that Bosasa made more than R12bn in irregular government contracts through bribes and corruption.
Auctioning of Assets
Bosasa’s corrupt dealings led to its liquidation in 2018 and the auctioning of its assets. This included Lindela Repatriation Centre, which was under the management of Bosasa for two decades. Undocumented migrants were subjected to severe neglect and abuse, and many died due to the conditions at Lindela. Twenty-one people died in an eight-month period in 2005. Among those was four-year-old Sinoxolo Hlabanzana.