ANC treats SOEs as its personal piggy banks: Lucky Montana

It is a “way of life” for the ruling ANC to command that CEOs of state-owned enterprises assist the party in dealing with its financial obligations, the state capture inquiry heard on Monday.

Former Passenger Rail Agency of SA (Prasa) boss Lucky Montana, who testified before deputy chief justice Raymond Zondo, implied that the ANC survived financially by abusing SOE resources.

He said the ANC was not honest to the commission about the extent to which the party enabled corruption in SOEs to fund ANC events and conferences.

The ANC, through its hold on SOEs as the governing party, said Montana, had some of its leaders using the ANC to benefit companies they had interests in.

Montana said he had been summoned to ANC head office Luthuli House to assist the party in its financial obligations.

For the commission to get the full picture in this regard, he advised it might be in its best interests to call all CEOs of SOEs, past and present.

“The ANC worked in a particular way and as a result it would end up being defrauded, because a lot of people would come and say we want to raise money for the movement and that money would not reach the ANC,” said Montana.

“I hear the ANC leaders come here and say this is the work of some individuals. No, it is the way of life in the ANC. There is not a single state-owned enterprise that the ANC has not approached.

“Now they want to project it that it is those that are corrupt. When you go deeper into it, at least once a month myself and other CEOs would go to Luthuli House.”

I hear the ANC leaders come here and say this is the work of some individuals. No, it is the way of life in the ANC. There is not a single state-owned enterprise that the ANC has not approached.

—  Lucky Montana

Montana said SOEs did not only fund ANC events, but were also called to settle outstanding debts of the party to its service providers.

Montana said the commission will struggle to make meaningful recommendations in stopping the ANC’s blurring of lines between party and state if it limits its probe to the Zuma years.

“ANC leaders, in and outside government, have used their powerful positions, the huge influence and standing of the ANC, to advance their personal interests,” said Montana.

“Leaders would put pressure on many CEOs of SOEs and public entities to assist the ANC, or entities they claimed belonged to the movement. We know many of these had nothing to do with the ANC but comrades were making money for themselves, using the name of the ANC in vain.

“The modus operandi is that an ANC leader would secure a meeting with businesses, and are sometimes paid for their effort. They are paid facilitation fees and more on delivery of projects. These have been happening since the 1990s and not limited to the period under Jacob Zuma.”

Montana was quizzed about a R80m donation that was allegedly made to the ANC by a Prasa contractor Swifambo Rail Leasing, that secured a multibillion-rand tender during his time.

There have been conflicting statements about the donation, with the ANC denying that it ever received such money. 

Montana said he was not involved in the matter, other than knowing that Angolan businesswoman Maria Gomez, who is alleged to have sourced the donation for the ANC, met with Montana and then-ANC treasurer-general Zweli Mkhize to discuss the ANC’s financial affairs on several occasions. 

Montana said he struggled for months to meet Mkhize to confront him about the claim of the R80m donation.

The meeting finally took place in Sandton, after Montana texted Mkhize explicitly stating his reason for wanting to meet him. 

“When I got there, the first thing he did was berate me. He asked me how I could say these things on an SMS. Then he confirmed receiving money but said he did not know whether it was part of the R80m, and he said he did not receive R80m anyway, so if it was part of that then he did not receive all the money.”

The Sunday Times reported at the weekend that the ruling party was so cash-strapped it had failed to pay its employees’ salaries on time this month, with a warning that the situation may continue for another three to six months.