Time for South Africans to not close their eyes whenever a massive deal involving taxpayers money is sold as being ‘an empowerment deal, that will create masses of jobs and be good for the country’ – recent history is littered with grandiose schemes that were only ever birthed in order to fleece the taxpayer and line the pockets of the elite.
The Bosasa group of Companies (now known as African Global Operations) is much in the news lately – after a R500 000 tip was given to South African President Cyril Ramaphosa’s son, Andile. Cyril Ramaphosa initially said that he had seen the contract between Andile and Bosasa CEO – the well known Port Elizabeth rugby player – Gavin Watson, and that it was all above board, Later President Ramaphosa backtracked and sang a different tune stating the the ‘tip’ was a donation to his campaign for President…
At the end of the day it seems as though our political masters do not subscribe to the well known saying; “If there is smoke there is fire” Or, in this case; “If Bosasa ripped the fiscus off once, they will do it again!”
Back in January 2008 it was announced that a Saudi Arabian company had approached SeaArk (working under Bosasa) to develop a commercial pilot plant for prawn farming, similar to the one that was being used at the Coega IDZ in Port Elizabeth.
This was touted as the second international contract for the prawn farming system and as a R70 million agreement which would see the creation of SeaArk’s advanced closed pond technology to farm Mediterranean brown shrimp at the Saudi Arabian company’s Al Faulk Group premises in Jeddah.
On 27 February 2008 the Mail and Guardian published an investigative report titled “Big Stink Over Port Elizabeth’s R9bn Coega Prawn Farm” revealing that the R9-billion marine farming project in the Coega industrial development zone (IDZ) – announced with much fanfare in December:
- Had a fraud convict as its international business associate.
- The American company SeaArk Holdings, did not appear on the database of the United States Securities and Exchange Commission, the official US company register.
- That in 1995, SeaArk president David Wills was sacked as vice-president of one of the world’s largest animal rights organisation, the Washington-based Humane Society of the US, after being accused of fraud and sexual harassment.
- That in 1999, he was sentenced to six months in jail and fined $67 800 for embezzlement. Prosecutors alleged Wills used the money to enrich himself and gamble in Las Vegas.
Asked to comment at the time Wills, who was running the Coega pilot project exclaimed; “It’s not me! Knock yourself out, write whatever you want!” and rang off.
The project, touted as a huge job creator in the Eastern Cape and the world’s first environmentally friendly prawn farm, sparked furious objections from local environmentalists, including the South African National Parks (SANParks).
Despite objections it was driven vigorously by the Eastern Cape government and the assumption was that this was done as a result of the African National Congress connections of the South African empowerment partner in the project, Bosasa Operations, under CEO Gavin Watson – a member of the Eastern Cape’s influential Watson family, heavy-hitters in the ruling party.
Other concerns around the Bosasa SeaArk deal were:
- ANC Nelson Mandela Bay secretary, Mthiwabo Ndube, was on the board of SeaArk Africa, the local company in which Bosasa and the US SeaArk Holdings were equal shareholders.
- Also on the SeaArk Africa board was Mamisa Chabula, a medical doctor and former acting head of the Eastern Cape health department. Chabula is close to President Thabo Mbeki’s family, having cared for Mbeki’s father, Govan, from his release from Robben Island in 1987 until his death in 2001.
- Initiated in February, the environmental impact assessment (EIA) for the rollout phase was forecast to be completed at breakneck speed, by June of the same year. Apparently the EIA had been fast-tracked “without breaking any laws.”
- In 2005, Bosasa’s contract with the Department of Home Affairs to run the Lindela detention centre was controversially renewed at a cost of R282-million. The company was also under investigation by the special investigating unit in connection with the alleged rigging of correctional services tenders worth millions.
- The proposed prawn species was not indigenous to the Indian Ocean region and presented a risk of invasion.
- SeaArk landlord, Coega, confirmed reporting SeaArk Africa to the provincial authorities for the alleged unauthorised mining of dunes in the Coega IDZ – a violation of its EIA conditions.
- In addition to the Lindela contract, Bosasa Operations landed state contracts worth almost R1-billion between 2004 and 2006, three of them for the Correctional Services Department.
- Bosasa Security, won a security contract from the Airports Company South Africa, while two other affiliates, Kgwerano Asset Finance and Phezulu Fencing, won contracts worth a total of close to R600-million from the transport and correctional services departments respectively.
- Former President Mbeki’s political adviser Titus Mafolo and former Strategic Fuel Fund boss Seth Phalatse, were shareholders with Watson in Sondolo IT, which has benefited richly from state business. In 2005 and 2006, it won three contracts from the Correctional Services Department with a combined value of more than R700-million.
In December 2009, after failing to deliver one prawn to the commercial market, SeaArks’s chair and spokesperson Papa Leshabane informed the company’s remaining 40 employees that they would be retrenched as SeaArk was to shut down. Leshabane blamed a lack of investment and Eskom’s escalating electricity tariffs for killing the investment.
In 2015 Bosasa did a ‘rinse and repeat’ when it was revealed as the company behind a multi million rand prawn farm on the West Rand supported by the Gauteng government. Supposedly, the new venture was to use the same technology as SeaArk Africa.
At the time, Gauteng Premier David Makhura said Gauteng would partner with the private sector to improve the aquaculture potential of the western corridor on the West Rand, particularly in regard to the breeding of prawns which he said would create; “a total of 6?512 jobs in the West Rand over three years.”
Sadly for the people of the West Rand it appears that that proposal was yet another way to get money out of the fiscus for nothing.
Related: Ramaphosa should appoint a full-scale Independent Inquiry into Bosasa Corruption | Come clean on your Bosasa money, Mr President | Did Ramaphosa tell Porky Pies about African Global (#Bosasa) Payment to Andile? | Inaction on Bosasa corruption speaks louder than words | Criminal charges laid over alleged Bosasa kickbacks | The Mti, Watson, BOSASA Connection | SAPS must lay charges against Linda Mti and prosecution must commence | Hawks to investigate Linda Mti; a great victory for the people of NMB | String of lies exposed as government agencies rally to protect Linda Mti | Linda Mti belongs in jail, not protected by Danny Jordaan.
Alan Straton
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