Sexwale, Pahad drink from Gupta watering hole too

Published Nov 6, 2016

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Johannesburg - Whoever said “When days are dark, friends are few” clearly did not have to contend with the nature of friendship given by former cabinet ministers Essop Pahad and Tokyo Sexwale, among others.

At a time when, as Sexwale says, “Gupta-linked” is a swearword, the two confess their buddy-buddy relationship with members of the influential family, especially Ajay Gupta.

Sexwale says it is human nature that when there’s trouble (around a person) “people run for the hills”.

“I know Ajay very well; he’s a friend of mine.”

He says something inaudible but it sounds like a qualification of their friendship: “We’re extremely close.”

Pahad engages in a bit of Q&A with himself: “Are they still friends of mine?” he asks rhetorically (and answers) “Yes”.

Sexwale was speaking at a press conference he convened to try to clear the air around reports that Trillian Capital Partners (he is a non-executive independent chairman of the company) had prior knowledge of the axing of former finance minister Nhlanhla Nene and his replacement by Des van Rooyen last year.

Sexwale told the media the company had engaged the services of Geoff Budlender SC to investigate these claims and especially how what was supposed to be known only to President Jacob Zuma, ended up in the hands of corporate South Africa, including Trillian.

Like a true friend, Sexwale says he regularly attended functions thrown by the Gupta family, especially their South African of the Year Awards’ shindig. The who’s who of the country normally make a beeline for these awards.

Sexwale says he has no business dealings with the Guptas but “15 years ago we owned Sahara Computers together; they owned 50 percent, we owned the other 50 percent.” He adds that when the Mvelaphanda Group owned JIC, “they bought us out”.

In April, he wrote an open letter to Ajay, giving advice on the dynamics of business-government relations, which partly read: “Regardless of any findings, harm has been done to your family name. You as a leader of your entities need to take certain steps to ensure that none of your siblings or partners may have done anything that may translate into state capture.

“If otherwise, then take corrective measures by pulling back your entities away from value-destructive controversy.

“Consider this as friendly advice tendered openly not because I have found you guilty of anything, but to alert you to read the signs.”

Pahad, on the other hand, takes his relationship with the Guptas back to “when president (Thabo) Mbeki was asked by the NEC (national executive committee) of the ANC to step down; the following day I tendered my resignation”.

The Guptas approached him to join them in business but he was reluctant.

When he finally agreed, his interest was in The New Age newspaper but only with the proviso that the publication was sympathetic to the ruling party.

He took them to meet the top six of the ANC, the premiers, Cosatu and other members of the tripartite alliance, Pahad says.

It was then that he sat on the boards of both Sahara Computers and The New Age but he remained uneasy because “I had never worked for anybody”.

He backtracks to mention that even the name of the newspaper “came from me”.

“When I was young I had to sell the New Age. My target was to sell 2 000 New Age copies.”

Soon there was discussion about starting a monthly magazine and after reasoning it out with Ajay, they started Vusizwe Media, which owns The Thinker, a quarterly Pan-African magazine.

Pahad says: “I put (up) R40 000 and they put in R80 000 to establish the business.”

He says of the arrangement: “He looked after the business side. Of course The Thinker was losing money, but they took care of it.”

He had editorial independence, he says, which he insisted on.

“When we lost money they didn’t complain.”

Pahad says the the family “were going to look for ads, take care of the business”.

When they broke up, Pahad says, and he repeats it a few times, “I paid back the R80 000.”

He does not put a figure to the Guptas “taking care of the business”.

“Pay us back the money we put in, I paid it back. Everything was above board. Our respective auditors insisted on this.

“It’s been more than five years now that I’ve run The Thinker on my own.”

He returns to the Q&A: “Have I seen them? Very seldom now, not more than three times. (I have) no business with them now. They do their business, I do my Thinker.”

He was at the highly publicised Sun City wedding. “I know the family. They invited me and I said I’ll go. My entire life, no one can ever accuse me of taking anything from anyone.”

Pahad says of the judicial inquiry recommended by former public protector Thuli Madonsela: “Whatever comes out, comes out. If anyone is found guilty of any wrongdoing, they must be charged.”

Sexwale expresses the same view and is adamant corruption must be rooted out.

The Sunday Independent

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