Forensic Investigator into Absa Bonds Jeff Koorbanally has penned an open letter to Public Protector Thuli Madonsela, questioning why her office had not investigated a matter that he says he lodged with her Cape Town offices in 2013.
The complaint relates to a case of “Mal Administration against the Old & New regime”.
In the letter, Koorbanally says he gave Madonsela all the proof she needed to conduct the investigations, including that Absa shareholders had allegedly benefited hundreds of billions from the “corruption”, “including the bonds which were never investigated after several requests were made by myself in addition to the alarm that was raised by the Ciex Report”.
He further points out an interview Madonsela had with Dianne Hawker in 2011 in which she said she would investigate allegations that “upwards of R26 billion was looted from state coffers via various schemes under apartheid”, a case that also saw Black First Land First (BLF) marching to Modonsela’s office.
Madonsela allegedly said she would speak to the alleged beneficiaries and question government, further saying she would go beyond just asking the implicated.
“You further made a call to the public on this interview that anyone with information should come forward to expedite the process,” he says.
Koorbanally further implicates former Reserve Bank governor Tito Mboweni in the Heath Commission of Inquiry into the “maladministration and corruption” in the Ciex Report.
“Let us now deal with the mentioned commissions, which to the best of my knowledge there was only one.”
He says the Absa lifeboat inquiry left question marks as to whether is was legal and “whether it was done in the interest to protect the banking sector from possible collapse”.
That resulted in Mboweni allegedly appointing a panel of experts on the 15th June 2000 to investigate the central bank’s role with regard to the financial assistance package to Bankorp Limited.
“Take special note that He (Tito Mboweni) instructed (“the Panel”) and He (Tito Mboweni) appointed Hon Judge Dennis Davis to head the investigations.
“Also take special note of the Term of reference given by Him (Tito Mboweni) numbered 1-5 on the report & that the Panel interpreted the terms of reference to include the agreement between (the Reserve Bank) and Absa which was only concluded in 1994 as a result of the acquisition of Bankkorp by Absa in 1992.
“Correct me if I am wrong, the above was not a commission but Tito Mboweni’s initiative in his capacity as the Sarb Governor which is a public entity and not part of government.
“It was A Mboweni initiative that was intended to finally bury the whole matter of the lifeboat, to discredit the Ciex report & Heath Commission & to please Sanlam.
“They did praise him for it why!
“While busy with this initiative to clear all Absa shareholders (Remgro, Sanlam) of any wrongdoing and benifits they earned, why did he not find it proper to include the Bonds that the same institution he represented (Sarb) gave absa to in a secret deal in total favour to appoint them as Brokers. A favour that earned Absa & their shareholders & Executives Hundreds of billions over the trade period of those bonds & Sarb continuation to allow absa to forex trade with the proceeds of this trading account, an act called ‘Churning’.
“Churning is the practice of executing trades for an investment account by a salesman or broker in order to generate commission from the account. It is a breach of securities law in many jurisdictions, and it is generally actionable by the account holder for the return of the commissions paid, and any losses occasioned by the broker’s choice of stocks.”
The Citizen has asked Madonsela and Mboweni to provide a response to the letter and its allegations.
READ FULL LETTER BELOW:
By Jeff Koorbanally
Dear Adv Thuli Mandosela
As a person of interest, very well known to the OPP since 2011, I will skip the introductory part.
I was totally shocked & flabbergasted today the 12th October 2016 to hear from the OPP (Office of the Public Protector) for the first time that my matter which was officially lodged in your Cape Town offices as Mal Administration against the Old & New regime in 2013 is not being investigated & neither was it incorporated into the Ciex report investigations,as the matter of the Surtie inheritance was included in the ciex report (laundered into Govt bonds the same bonds which were highlighted on page 25 of the Ciex Report).
To remind you, the lodging of my complaint here in Cape Town was as a result of a request that came from your Pretoria office to Cape town office (Lucky Plum) to trace me to lodge the complaint here due to jurisdiction as the deceased estate that I was claiming the assets for was registered with the Master office Cape town. The Estate no was 5349/2011 deceased A.R.T. Surtie of Maseru Lesotho.
This request from your Pretoria office came after an associate of mine namely Jason Jordaan (Forensic scientist) founder and managing director of DFIRLABS intervened and requested the OPP to incorporate my investigations into Ciex report that your office was already busy with since 2011.. The file was then sent direct to you by you Cape town regional manager Sue when she took over the office after I complained to her that I was not getting any update on the investigations.
I then introduced Jason Jordaan to you & we offered to assist your office with any further investigation on the matter if your office was struggling with completing of the investigations, I gave you Jason Jordaan full profile as below:
Jason Jordaan is on of the highest qualified forensic scientist in the country & recognized worldwide, he has a Masters of Science degree in Computer Science Cum Laude, a Masters of Technology degree in Forensic Investigation, a Bachelor of Commerce Honours degree in Information Systems, a Bachelor of Science degree in Criminal Justice Computer Science Summa Cum Laude, and a Bachelor of Technology (BTech) degree in Policing. He is a Certified Forensic Computer Examiner, a Certified Fraud Examiner, a GIAC Certified Forensic Examiner, a Member of the Chartered Society of Forensic Sciences, and a Professional Member of the Institute of Information Technology of South Africa. He is a member of the Association of Certified Fraud Examiners, the International Association of Computer Investigative Specialists, the Institute of Information Technology Professional of South Africa, the Institute for Electrical and Electronic Engineers, the IEEE Computer Society, the Association of Computing Machinery, the Chartered Society of Forensic Sciences, and the International Association of Law Enforcement Intelligence Analysts.
Chronology of events
I placed myself on record as the private forensic investigator with you in July 2011 in a telephone conversation with yourself. I explained to you then my interest on this matter and i immediately shared information with you regarding discovery of a secret dormant account 0000/4444 on absa data base, linked to the Surties a matter I had been investigating since 2009.
From that point to now I have shared hundreds of information on all the evidence you required to conclude your investigation, I told you to direct the focus of the investigations to the bond issues, I explained to you that the bonds was the tool/instrument that was used to fund the whole corruption including but not limited to the lifeboat.
Whereby you agreed with me and actually sent me a letter to thank me for all the info and assured me that all the info will be used to pursue the Mal Administration investigations.
This letter has your signature on it, meaning it was not just written by your PA Juliet Nkabinde to whom all the hundreds if not thousands of correspondences was sent to as a protocol given by your office.It is my strong submission that the manner in which this complaint of the Ciex Report was handled from the outset has compromised the integrity of OPP.
You have contradicted yourself too many times in this matter.
At the beginning in 2011 you correctly quoted the restrictions on the Public Protector Act, in terms of period allowed on matters of investigations & you also clearly stated that in matters that were more that 2 years old your office had the discretion to take them on or not.
You stated that factors that the OPP would consider when taking cases older than 2 years were:
The period of the complaint had to fall within the period of after the formation of the OPP which was on October 1, 1995.
You then decided that you were going to take this matter & limit it to what happened between 1996-2001 which was during Hon Mandela & Hon Mbeki term of Presidency & clearly stated that you could not investigate matters that happened during the Apartheid Era.
Now as it turns out in contrary to all of above, your office has confirmed that they only investigating ABSA Lifeboat and alleged failure to recover money given as a loan to Bankcorp, the complainant being Adv Paul Hoffman, which happen from 1985 – 1994 in the Apartheid Era.
This is also contrary to what I was made to believe in my interaction with Adv Paul Hoffman since 2011 that his complaint to your office was:
“Govt spent Millions of rands in the inquiries of Ciex investigations, and Heath Commission to investigate the apartheid plunder and yet the government of the Republic of South Africa mishandled the opportunity to claim back the money & Failed the Opportunity to recover these monies”
The fact that your office has confirmed that the whole Ciex report was confined to the absa lifeboat only. This clearly indicates there were some hidden Agenda or ulterior motives to your decision to take this matter on in the first place.
Which raises the following questions:
# Why did you decide to take a matter which fell outside the scope of time of the OPP & further be selective & leave the others which are in the same report?
#if the reasons were because Adv Paul Hoffman (said it was) easy recovery, why then has it taken more that 5 years?
# Why did you have to investigate this lifeboat after I told you doing so was a waste of tax payers’ money as it would be a duplication of what was already done by both Judge Heath & Davies? I told you to investigate the Bonds given to Absa instead and you agreed.
What have you done with all the information & evidence I forwarded to you on this matter relating to the bonds given to absa by Sarb in secret ?
Why did you not inform me that the hundreds if not thousands of correspondences sent to you of which I have evidence it was received and read by your PA was irrelevant to what you were investigating ?
After receiving my file of my complaint from Cape town branch why did you not find it proper to inform me that your office will not be investigating it or incorporate it into Ciex report as that what it was referred as?
Why did you call your Absa lifeboat investigations Ciex report investigations ? Was this intended to mislead the public?
Why couldn’t you just call your investigations simply “Absa lifeboat” as that what your office referred to it as?
Why did you choose not to query my complaint file when you received it from Cape Town office as it was cleared marked ”to be incorporated into ciex report” ?
It has been alleged that you are consulting with Judge Dennis Davies for advise on the Absa lifeboat, if so that will be an act of bias. The OPP investigations are supposed to be impartial & independent from any previous investigations. What you had to do was to interview him and ask him if the issue of bonds given to Absa were part of the Terms of reference in the investigation he headed and if his Panel finding would have been the same or not?
I put it to you that there was absolutely no need for you to consult with Judge Dennis Davies on the issue of Absa lifeboat. The Panel report was very clear on that matter that it was possible to recover the money from the shareholders the only challenge was to determine the extent of benefit they gained from the irregular lifeboat, and I told you and directed you to the proof that Absa shareholders benefited hundreds of billions from this corruption including the bonds which were never investigated after several requests were made by myself in addition to the alarm that was raised by the Ciex Report, which clearly said Govt must investigate these bonds as they had a potential of a Huge liability to the democratic govt.
In your many media briefings more specific the one In an interview with Dianne Hawker (eNCA) july 2011.
You announced & stated:
That you had reversed the initial decision not to investigate allegations that upwards of R26 billion was looted from state coffers via various schemes under apartheid & further said.
“In addition to speaking to the alleged beneficiaries of the looted funds, the government would have to be questioned”.
“My approach has been that if we are going to do it, we will go beyond just asking the implicated.
“The government also has to be interviewed in terms of where they stand with this and what was their reaction to this, because remember this was commissioned”.
“The starting point is also to find out what has been done since this was commissioned. And if nothing was done, why nothing was done.”
You further made a call to the public on this interview that anyone with information should come forward to expedite the process.
Let us now deal with the mentioned commissions, which to the best of my knowledge there was only one.
#Heath Commission of Enquiry into maladministration & corruption as disclosed by the Ciex Report
1995 – 1997.
The findings of Hon Judge Heath in the above commission was in support of the Ciex Report except on the issue of the Absa lifeboat there were question marks or benefit of doubt, as to whether is was legal or not & whether it was done in the interest to protect our banking sector from possible collapse.
#That resulted to Governor of Sarb Tito Mboweni to appoint a panel of experts on the 15th June 2000 to investigate Sarb`s role with regards to the financial assistance package to Bankorp Limited.
Take special note that He (Tito Mboweni) instructed (”the Panel”) & He (Tito Mboweni) appointed Hon Judge Dennis Davies to head the investigations.
Also take special note of the Term of reference given by Him (Tito Mboweni) numbered 1-5 on the report & that the Panel interpreted the terms of reference to include the agreement between Sarb & Absa which was only concluded in 1994 as a result of the acquisition of Bankkorp by Absa in 1992.
Correct me if I am wrong, the above was not a commission but Tito Mboweni `s initiative in his capacity as the Sarb Governor which is a public entity & not part of Government.
It was A Mboweni initiative that was intended to finally bury the whole matter of the lifeboat, to discredit the Ciex report & Heath Commission & to please Sanlam.
They did praise him for it why!Ref is made to: Integrated annual report2001-investor relations-yearly-20010313.pdf (865.6 KB) .
While busy with this initiative to clear all Absa shareholders (Remgro, Sanlam) of any wrongdoing and benifits they earned, why did he not find it proper to include the Bonds that the same institution he represented (Sarb) gave absa to in a secret deal in total favour to appoint them as Brokers. A favour that earned Absa & their shareholders & Executives Hundreds of billions over the trade period of those bonds & Sarb continuation to allow absa to forex trade with the proceeds of this trading account, an act called “Churning”. Churning is the practice of executing trades for an investment account by a salesman or broker in order to generate commission from the account. It is a breach of securities law in many jurisdictions, and it is generally actionable by the account holder for the return of the commissions paid, and any losses occasioned by the broker’s choice of stocks.
In conclusion I put it to the OPP that you failed the opportunity to appropriately & impartially deal with the biggest international corruption, economic terrorism or financial terrorism which was strictly defined to indicate an attempt at economic de stabilization by a group namely Afrikaner Broederbond.
This was done “economic warfare style” which is undertaken by states against other states,Economic warfare aims to capture or otherwise control the supply of critical economic resources so that the military and intelligence agencies cannot operate at full efficiency or deprive enemy forces of those resources so that they cannot function properly.
This entailed varied, coordinated and sophisticated or massive de stabilizing actions in order to disrupt the economic and financial stability of the State of the RSA.
The OPP will go down in the history of this country as having sided with this group of Criminals, it will go down as an institution that failed & robbed the people of this country from knowing the truth of which the TRC omitted, which is serious economic crimes committed by the Apartheid Govt into the Era of our Democracy.
The OPP must now release the Biased, Selective report of the Absa lifeboat, and allow us to challenge it to the highest level! Including but not limited to the ConCourt, as I mentioned this was a serious international economic crime, which has potential to bring this country down to Zero economically.This whitewash report should have been released in August 2011 already as there was absolutely no investigation that was needed for the OPP to come out with partial findings on this matter, it was a straight forward case. But the OPP played mind games with the public of this country to make them believe that deep investigations were being carried out. I and many other intelligent people in this country will not buy into that!
Please on release of the WhiteWash report give & disclose the cost of this investigation over the five year period as you claimed to have worked on it, we want to know who were the externals that were hired to assist you & what did they actually do & how much they were paid.
If we are serious about dealing with corruption in this country, of which your office is mandated with, then we must stop being selective! Let’s deal with corruption as a whole. Corruption has no color or ethnic group nor Culture.