Johannesburg - Controversial KwaZulu-Natal businessman Roy Moodley allegedly used his close proximity to some of the top ANC leaders to pocket millions of rands that was meant to benefit the party.
A businessman has revealed how Moodley siphoned off R280million that he thought he was paying to the governing party to keep contracts coming his way.
The man was doing business with Telkom and had multiple contracts with the entity.
The businessman, who asked not to be named, has submitted evidence to the ANC detailing transactions to Royal Security, Moodley’s security company.
He said Moodley allegedly claimed the company belonged to the ANC.
“Mr Moodley convinced me that all payments to him were done on the instructions of the ANC to ensure the continuation of my contracts with Telkom.
“The payments were derived from my companies’ services to Telkom as well as the sale of intellectual property and on a sale of equipment and two patents,” said the man.
Moodley is no stranger to controversy.
Last year, journalist and author Jacques Pauw revealed in his book The President’s Keepers that former president Jacob Zuma was drawing a salary from him.
Moodley allegedly paid Zuma R1m for a few months when he became president of the country.
In December last year, Moodley was again in the news when it emerged that he received payment from a company that had secured a multimillion-rand contract with the Passenger Rail Agency of South Africa (Prasa).
The company was said to have paid more than R4m to Moodley’s company in 2015.
The business person said he started doing business with Telkom in the late 1990s, and his troubles started in 2003 when the telecommunications company changed armed response companies to Royal Security.
In his affidavit, the business person details how, soon after securing the security job, Moodley started using the ANC name to solicit money from him.
Moodley allegedly told the businessman that if he did not pay a portion of the money he made from Telkom to the ANC, his contracts would not be renewed.
“I was called into a meeting by Chocklingam (Roy) Moodley, who presented me with an e-mail. It stated that Mr Leo Standers (security and investigations executive at Telkom) wanted my contract with Telkom terminated and this e-mail was given to Moodley by Mr Bheki Langa, who was the acting deputy chief operating officer at Telkom at the time.
“I found this to be odd as my services were impeccable and I had saved Telkom in excess of half a billion rand at the time,” the businessman said.
He alleged that Moodley told him if he wanted to ensure the contract was not terminated, he needed to contribute towards the party through Royal Security.
“Mr Moodley started with 10%. He said it should be made to Royal Security as Royal Security is an ANC company and the majority of its profits were taken by the party.
“These amounts kept changing as Mr Moodley ensured my contracts were never signed on time and by doing so, guaranteed my company was always at his mercy,” he said.
In 2006, when the businessperson sold field equipment and two patents to Telkom, Moodley allegedly demanded that 52.5% of the deal should go the party.
He sold these items to Telkom for R198m, resulting in Moodley getting close to R104m.
“Mr Moodley said the reason was that the party profits from these proceeds and he, in the end, has to pay all the taxes.
“He then asked me to draw up a document to state that he assisted with the upgrades of the patents in order for him to achieve capital gains tax which is 15% instead of 30%.
“I did so as I thought I was helping the party. He then asked for these funds to be put into his personal name Chocklingam Moodley and when I questioned this, he said the party requested it to be like that,” said the businessman.
Attempts to get a comment from Moodley were unsuccessful. An e-mail sent to the legal department of Royal Security at the request of a woman, who only referred to herself as Samantha, with questions was not responded to.
An SMS containing questions was also sent to Moodley but that too went unanswered.