'Abuse of power' behind sealing of IPID Phala Phala report - expert

THE Independent Police Investigative Directorate’s (IPID) decision to classify the report into the conduct of members of the Presidential Protection Unit in relation to their involvement in the Phala Phala scandal was 'abuse of power to shield President Cyril Ramaphosa from being held accountable'. 

That is the view of political analyst Zakhele Ndlovu after reports that acting police minister Firoz Cachalia had stated that IPID is contemplating revising the classification status of the report, which has been designated as “Top Secret”. 

Ramaphosa’s Phala Phala scandal became public in June 2022 when former State Security Agency head Arthur Fraser filed a criminal complaint, alleging that around $4 million (later reported as closer to $580,000) in undeclared foreign currency was stolen and that Ramaphosa arranged a clandestine recovery operation without officially reporting the crime. The allegations included money laundering, tax evasion, and abuse of state resources.

The Presidential Protection Unit (PPU) is central to allegations, particularly concerning the conduct of its head, Major-General Wally Rhoode, who allegedly led an off-the-books investigation into the theft of foreign currency from President Ramaphosa's farm. 

Instead of a formal police case, Ramaphosa reportedly instructed Rhoode, head of the PPU, to investigate the matter. This investigation allegedly involved:

- Tracing and interrogating suspects, including some Namibian nationals, without official jurisdiction or due process.

- Potential use of state resources (PPU and Crime Intelligence members) for a private matter, which critics argue is an abuse of power and a violation of SAPS policies.

- Alleged bribery and pay-offs to the suspects and a domestic worker involved to ensure their silence and retrieve the money.

In March 2025, Police Minister Senzo Mchunu who is currently on enforced leave told members of Parliament that the report into the Phala Phala scandal was classified as “Top Secret” according to the Minimum Information Security Standards (MISS). 

He argued that this was necessary to protect witnesses involved in the investigation.

During his testimony before the Madlanga Commission and Parliamentary Ad Hoc Committee, KwaZulu-Natal Police Commissioner Nhlanhla Mkhwanazi said Mchunu did not have the authority to classify the report.

Mkhwanazi questioned why the report would be classified as “Top Secret” by the Minister when IPID is not an intelligence agency. He also questioned whether Mchunu himself had the necessary security clearance to classify a document as "Top Secret", suggesting that if a minister could simply decide to classify a document and withhold it from the public, the system could be manipulated.

Asked if Cachalia believes the IPID report should not have been classified from the beginning, his spokesperson, Kamogelo Mogotsi, said that as the custodian of the report and having determined the classification, IPID is currently reviewing the classification and has yet to inform the Minister of the outcome of their initiated review. 

Ndlovu said the report should not have been classified, adding that the Phala Phala farm was a crime scene on different levels.

“How does the President get away with keeping millions in foreign currency, and then there is a break-in?” asked Ndlovu, adding that state institutions are being used to hide something criminal and protect the President.

He said Phala Phala is a private property, and has nothing to do with safeguarding national security to justify classification. 

“There was never any indication that releasing this information could potentially cause any damage to the country. Mchunu was protecting the President. We know that Mchunu and the President are close political allies. Remember, Mchunu ran for SG (secretary-general) in the CR17 slate,” Ndlovu said.

Retired Interpol Ambassador and security strategist Andy Mashaile also said the classification was unlawful. He said Mchunu would have to testify and reveal what he knows about the report. 

Cape Times