SIU probes state entities over controversialNew Age media breakfast events

The SIU will widen its scope of investigation to include five state institutions in connection with The New Age (TNA) media breakfasts hosted by the SABC about a decade ago.

Briefing the Standing Committee on Public Accounts, SIU chief investigating officer Zodwa Xesibe said there was not much to report about the investigation emanating from the proclamation issued late last year.

“In respect of the investigation, in a sense, this was proclaimed as part of state capture recommendations.

“This investigation involves entities and one being Eskom, PetroSA, South African Airways, Transnet, the national Department of Human Settlements as well as the SABC,” Xesibe said.

“These are entities that were coerced to hold those business breakfast meetings by TNA at the time it was called The New Age and were paid by SABC.”

She also said the SABC had a contract with TNA for the hosting of the business breakfasts.

“Our involvement in the SABC will be to follow the payment made by the state institutions to SABC and then to TNA,” Xesibe added.

SIU head Andy Mothibi said they will be investigating the business breakfast events that were held and supported by various institutions with SABC as platform used to host them.

“We will be investigating at all the institutions. It is early stages. There are no outcomes yet on this one,” Mothibi said.

In its presentation to Scopa, the SIU said it submitted a motivation for the proclamation in 2019 and 2022.

It said matters forming part of the proclamation came to its attention while investigating certain affairs of the SABC when it became aware of a contract between the public broadcaster and TNA for three years.

“In terms of the agreement, the SABC would broadcast a series of events described as ‘The New Age breakfast Briefing brought to you by the SABC hosted by TNA’, which (would) be briefings hosted by TNA.”

It also said TNA subsequently concluded agreements with Eskom, PetroSA, SAA, Transnet, and the national Department of Human Settlements.

“In terms of these agreements, the state institutions would pay 'sponsorship fees' to TNA in respect of the business briefings and would, in return, receive media exposure from the business briefings.”

The SIU said it had received further information from the Zondo Commission, which found that the business briefings were not only irregular but wasteful.

President Cyril Ramaphosa signed the latest proclamation in October 2024.

“The proclamation period covers events which took place between 1 January 2011 and the date of publication of the proclamation, which is 18 October 2024 and includes matters which took place before or after the aforesaid period but are relevant to, connected with, incidental or ancillary to matters in the Schedule of the proclamation or involve same persons, entities or contracts investigated under the authority of the proclamation.”

Xesibe said evidence obtained indicated TNA’s involvement in SABC was intertwined with entities such as Eskom, Transnet, and PetroSA.

“The SIU has investigated this matter as far as possible and determined that it can only be investigated to the core with a further proclamation that would mandate such investigation.”

Meanwhile, the SIU’s presentation stated that an application was brought by the SABC to set aside the contract on which TNA’s claim of R144m was based following the liquidation of the Gupta-owned company.

SIU legal counsel Ntuthuzelo Vanara said the TNA claim against SABC showed the business breakfast briefings were conducted utilising equipment and airtime of SABC without money being paid.

“Because there was a claim for payment due to TNA, we were able to save R145m because the company has gone into liquidation and the liquidators did not pursue their claims against the SABC,” Vanara said.

He stated that the SIU was pursuing the directors of TNA.

“We are to apply for a new date for a hearing against the directors,” Vanara added.

Cape Times