5 things you need to know about the Trillian report

Advocate Geoff Budlender on Thursday released his investigation report into allegations of state capture stemming from a whistleblower at Gupta-linked company Trillian Capital Partners (TCP).

The majority shareholder is close Gupta family ally Salim Essa‚ who owns 60% of Trillian.

Trillian’s non executive independent chairman Tokyo Sexwale briefed the media on Thursday and confirmed his earlier intention to step down from the company as soon as Budlender tabled his report.

Here are some of the key findings you should know:

1. The whistleblower was right

Budlender found that in his view‚ the version of events supplied by the former Trillian CEO-turned-whistleblower was true.

He said it raises the “very troubling question” of how information about President Jacob Zuma's plans to exercise his constitutional prerogative came to be in the hands of a private company – and particularly where the information was “commercially very sensitive”.

The whistleblower told former public protector Thuli Madonsela that she was told by Trillian CEO Eric Wood two months before former finance minister Nhlanhla Nene was fired in December 2015 that Zuma would do so.

2. Did Minister Lynne Brown lie to Parliament?

In a reply to parliamentary questions from the Democratic Alliance at the end of last year‚ Public Enterprises Minister Lynne Brown said no money was paid to TCP for the Duvha power-plant insurance claim.

She said Eskom did not appoint TCP to negotiate the settlement for the Duvha claim, nor did Eskom appoint TCP to source a new supplier to replace the exploded boiler at the power plant.

“There was no need to appoint any external party to assist with the sourcing‚” Brown’s response read.

Budlender said in his report that Trillian produced‚ at his request‚ three invoices addressed to Eskom‚ all of which were stamped paid.

One was for R30.6-million from Trillian Management Capital (TMC)‚ a 100% subsidiary of Trillian Capital Holdings.

Two other invoices were for R122.2-million, and another for R113.2-million by the same entities.

Some of the invoices were itemised as “services rendered” for financial advice for Eskom initiatives‚ including Duvha and procurement.

“The information Brown gave to Parliament was‚ depending the view you take of it‚ false or seriously misleading‚” Budlender wrote.

3. No tenders‚ no contracts but lots of money

Budlender found that that Trillian never tendered for the work it was paid for and no contract existed between Trillian and Eskom – but the company was paid more than R250-million.

“An amount in excess of R250-million was paid to TMC. TMC is a subsidiary of TCP‚” he said.

Budlender also stated that Trillian refused to provide him with information on what work it had done for Eskom to justify the payments‚ saying it was “not relevant”.

He also noted that it appeared virtually all the work Trillian invoiced for was actually done by Regiments Capital.

4. Trillian management tried to obstruct the investigation

Budlender slammed the management of TCP who, he said, “obstructed” his investigation.

“The conduct of Trillian management in this inquiry has left me with the impression that what it says cannot be trusted‚” Budlender wrote.

Trillian management‚ he said‚ twice tried to put an end to the inquiry.

5. Trillian disputing Gupta link 'dishonest'

Budlender said assertions by Trillian that the Gupta family had no links to the company or other companies that were part of the group were “dishonest”.

“The connections between Mr Essa [Trillian’s majority shareholder] and the Guptas must be known to the leadership of Trillian‚ as it is known to anyone in South Africa who reads a newspaper‚” Budlender wrote.

“Under the circumstances‚ the assertion in TCP’s media release that the Gupta family ‘has no link to Trillian Holdings or to any of the other constituent members of the Trillian group of companies’ was at best misleading and in my opinion was in fact dishonest.”

“The Gupta family does have such a link through its close association with Mr Essa‚” Budlender’s report reads.

- TimesLIVE