‘Innuendos and speculation will not be entertained’: Presidency on Arthur Fraser’s fresh Phala Phala claims

President Cyril Ramaphosa’s office says it will not comment on fresh allegations made by former correctional services boss Arthur Fraser.

Ramaphosa will instead continue co-operating with law enforcement agencies investigating the scandal.

His spokesperson Vincent Magwenya said: “That issue is under investigation by law enforcement agencies so if any individual has evidence, that must be provided to law enforcement agencies to investigate.

“From the president’s side, it is to continue co-operating with the investigations, as he has stated, so I am not going to comment on that document, suffice to say the investigation is under way.”

Magwenya said Ramaphosa’s office was also not going to comment on reports that his head of presidential protection services, Maj-Gen Wally Rhoode, has been suspended.

UDM leader Bantu Holomisa has asked parliament’s section 89 independent panel investigating the Phala Phala matter to look into the fresh claims by Fraser.

“The veracity of the information provided, and the allegations made, in [Fraser’s] letter should be investigated by the independent panel. The Hawks should shed light on what has transpired in terms of their actions taken subsequent to receiving this additional information. Such steps will surely be of assistance to the independent panel and their work,” Holomisa said on Monday.

In the letter, which TimesLIVE has seen, Fraser alleges a close adviser of the president was “ostensibly instrumental in illegally bringing large sums” of US dollars into South Africa after returning from trips abroad.

Fraser also alleged the money was not declared to the SA Revenue Service or the SA Reserve Bank “and did not enter the formal banking system in this country”.

The adviser, he asserted, “is said to have concealed the undisclosed amount of US dollars in one of his couches at his personal residence in Hyde Park, Johannesburg, before transferring the couch to Phala Phala with the president's knowledge”.

“This is the money stolen from the president’s Phala Phala farm and not any money derived from the sale of animals and/or the hunting of game as previously stated,” he claimed.

Magwenya confirmed Ramaphosa would make a submission to the panel to provide his version of events.

“The rules require a submission, which the president will make. The panel has invited evidence from a number of people. That evidence must be shared and submitted to the president before he responds. The president will respond accordingly.”

The Sunday Times reported previously that Ramaphosa is understood to have told the office of the public protector that a Sudanese businessman named Mustaf Mohamed Ibrahim Hazim paid $580,000 (R8.1m at the time) to purchase a buffalo bull from his farm on Christmas Day in 2019.

The money was received by a staff member because the farm’s general manager, Hendrik von Wielligh, was on holiday. Ramaphosa apparently said he had a receipt for the transaction.

He said he arrived a day later on December 26 and advised that the money be kept on the farm because he was leaving for Cape Town and Von Wielligh was away.

The money would be processed and banked later. A staff member felt it would be dangerous to keep the money in a safe so it was stored in a sofa in a spare room.

The president said it was Von Wielligh who informed him of the burglary while he was in Addis Ababa on February 10 2020. Ramaphosa then informed Rhoode.

Magwenya said the activities at the farm did not give rise to a conflict of interest, as has been alleged.

“On assumption of the position of deputy president in 2014, President Ramaphosa embarked on a process to comply with the executive ethics code with respect to his financial interests,” he said.

Magwenya said the executive ethics code requires that members of the executive should either dispose of financial interests which may give rise to a conflict of interest, or place the administration of such interests under the control of an independent and professional person.

“The president decided to dispose of those interests which may give rise to a conflict,” said Magwenya.

He said in November 2014 Shanduka announced Ramaphosa’s divestment from the group.

“This involved the disposal of interests in ‘regulated’ sectors like mining, telecommunications and energy — in other words, those which may give rise to a conflict of interest. He retained assets in some ‘non-regulated’ sectors like property, farming and restaurants.”

Although not required by the executive ethics code, Magwenya said Ramaphosa put these remaining assets from the Shanduka divestment under the management of independent and professional persons and the non-regulated interests have subsequently been disposed of.

“The president’s farming operations have always been separate from Shanduka and were therefore not part of these transactions. The farming properties are not businesses that may give rise to a conflict of interest.

“While the farming entities do trade in the purchase, sale and breeding of game and livestock, the president does not earn a salary from these entities.”

He said revenues earned from the trading of game and livestock cover salaries of workers and upkeep of the properties, and the remainder is reinvested into the breeding of unique game and livestock species, veterinary services and other related costs. 

“Anything else would be speculation and innuendo that will not be entertained.”

TimesLIVE

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