Former ANC MP Vincent Smith appeared in a packed court on Thursday, denying any involvement in fraud and corruption worth about R800,000 which allegedly saw him abuse his position in parliament to shield Bosasa from scrutiny.
It allegedly included a R200,000 electric fence, internet connectivity for his home and several cash payments to a company in his name, including R395,000 for a “car accident settlement”.
Wearing a dark blue suit and white shirt, the 60-year-old told the specialised commercial crime court he had no previous convictions or pending cases, and that it was the first time he had appeared in a criminal court.
He handed himself over to authorities on Thursday morning, the latest in a series of arrests this week resulting from evidence heard before the commission of inquiry into state capture.
Smith, who was released on R30,000 bail, said he was determined to prove his innocence. His next appearance is set for October 14, when he is expected to appear with his co-accused, former Bosasa COO Angelo Agrizzi.
The state alleges that Smith was in a quid pro quo relationship with Bosasa, which paid him “for what he would do and for what he would not do while serving in his position as a member of parliament”.
Smith was the chairperson of the parliamentary portfolio committee on correctional services, which has an oversight role on the department of correctional services. Bosasa, a facilities management firm, received four contracts with the department between 2004 and 2006, to a tune of R1bn.
Evidence at the state capture inquiry has detailed how Bosasa and its executives granted questionable loans and gifted millions of rand to some ANC leaders, with the governing party benefiting as an organisation.
Bosasa went into voluntary liquidation in February after several financial institutions closed its bank accounts. The institutions sought to distance themselves from serious allegations of corruption. The company’s CEO, Gavin Watson, died in a car crash last year.
The state alleges that Smith was paid at least R800,000 in services and tranches of money between 2014 and 2016 for protection against concerns raised by the committee he chaired relating to Bosasa’s contracts with the department of correctional services.
A report by the Special Investigating Unit (SIU) in 2009 found there were acts of corruption in the manner the contracts were awarded. The report implicated Bosasa employees, former national commissioner of the department of correctional services Linda Mti and former CFO of the department Patrick Gillingham.
His inaction amounts to an incomplete or biased exercise of his powers, duties and functions arising out of his legal obligations as a parliamentarian.
The SIU recommended that the department take legal action to recover the money. However, the contract continued for at least 10 years after the release of the report.
According to the state, Smith repeatedly failed to act on it.
The state alleges that Smith was initially concerned with the SIU report and “expressed horror at the findings”, but his tone changed after he took over as portfolio committee chairperson in 2009.
“Committee meetings in the latter part of the fourth parliament and the first few years of the fifth parliament reveal accused 1 [Smith] as having shifted in his attitude, not taking up concerns about Bosasa when they were raised in meetings by other members,” the indictment reads.
The state further alleges that Smith was handsomely rewarded by Bosasa for not acting against the company in parliament.
“His inaction amounts to an incomplete or biased exercise of his powers, duties and functions arising out of his legal obligations as a parliamentarian ...
“The aforementioned gratifications were corruptly given and received as improper inducements in furtherance of an ongoing scheme to influence accused 1 to use his office and position in parliament ... to the advantage of Bosasa.”
Smith has held senior positions, including chairing the standing committee on the auditor-general and the correctional services committee. Most recently, in the previous parliament, he chaired the ad hoc committee on amending Section 25 of the constitution to allow for expropriation of land without compensation.
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