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	<title type="text">Stories &#8211; amaBhungane</title>
	<subtitle type="text">Center for Investivative Journalism</subtitle>

	<updated>2018-06-07T13:39:23Z</updated>

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		<title type="html"><![CDATA[The great train robbery Part 2 – The choo-choo switcheroo]]></title>
		<link rel="alternate" type="text/html" href="https://amabhungane.agletonline.co.za/stories/the-great-train-robbery-part-2-the-choo-choo-switcheroo/" />
		<id>https://amabhungane.agletonline.co.za/stories/the-great-train-robbery-part-2-the-choo-choo-switcheroo/</id>
		<updated>2018-06-05T10:49:34Z</updated>
		<published>2018-06-03T00:00:00Z</published>
				<summary type="html"><![CDATA[<p>How Transnet’s substitution of a Japanese locomotive with a Chinese one was helped along by – and served – the Guptas.</p>
<p>The post <a rel="nofollow" href="https://amabhungane.agletonline.co.za/stories/the-great-train-robbery-part-2-the-choo-choo-switcheroo/">The great train robbery Part 2 – The choo-choo switcheroo</a> appeared first on <a rel="nofollow" href="https://amabhungane.agletonline.co.za">amaBhungane</a>.</p>
]]></summary>
		<content type="html" xml:base="https://amabhungane.agletonline.co.za/stories/the-great-train-robbery-part-2-the-choo-choo-switcheroo/"><![CDATA[<p>There is a classic con-move called the “bait-and-switch”, in which one product is advertised but another is substituted that is inferior, more expensive or both.</p>
<p>At Transnet the Guptas and their fellow-travellers pulled off a R4,8-billion bait-and-switch that was so impressive that it must have convinced their Chinese clients that the family held the keys to Transnet&#8217;s coffers – and to the huge 1064 locomotive tender that was on the cards.</p>
<p>In <a href="http://amabhungane.co.za/article/2018-03-08-the-great-train-robbery-part-1-the-zurich-tryst" target="_blank" rel="noopener noreferrer">Part 1</a> we revealed allegations of how the family&#8217;s agents boasted of their ability to control government decision-making – and how they were paid a 20% commission by China South Rail (CSR) on a deal to buy 95 electric locomotives that Transnet signed in October 2012.</p>
<p>But the evidence suggests that the Guptas cemented their claims to be Transnet tender kings a year later. Between October 2013 and January 2014 they were able to redirect a new deal for 100 “heavy-haul” locomotives that seemed to be in the bag for one manufacturer – Mitsui – across to their friends at CSR.</p>
<p>For that service, CSR agreed to pay a 21% commission, promising the great manipulators more than R900-million in kickbacks.</p>
<h5>The 100 loco deal</h5>
<p>The chain of events around the 100 locomotive procurement seemed tailor-made to demonstrate the family&#8217;s remarkable audacity and influence.</p>
<p>The Guptas were able to reverse a clear preference by railway management for the Japanese manufacturer Mitsui, which had made a major investment in a South African fabrication facility and had a modern heavy-haul locomotive that was already performing on Transnet&#8217;s coal export line.</p>
<p>Instead, without an open tender, the Guptas were able to substitute CSR despite the fact the procurement was deemed urgent and the Chinese company did not have an off-the-shelf heavy haul locomotive suitable for South African conditions.</p>
<p>The role of Iqbal Sharma – then the chair of Transnet&#8217;s Board Aquisition and Disposal Committee – appears to have been central.</p>
<p>Sharma, who readily admits a previous friendship with Gupta lieutenant Salim Essa and a range of business ties with the Guptas before they fell out, has denied wrongdoing. See his full response <a href="http://serve.mg.co.za/content/documents/2018/03/08/2VNHLZVSGSaG3x3MQoqw_SamSolereply.pdf" target="_blank" rel="noopener noreferrer">here</a>.</p>
<p>Also key was then Transnet chief executive Brian Molefe.</p>
<p>Molefe was presented with a detailed outline of his role, but responded only briefly, claiming he had no knowledge of any kickbacks or manipulation of adjudication processes.</p>
<p>You be the judge.</p>
<p>The documented sequence of events is as follows.</p>
<h5>Friday, 11 October</h5>
<p>On 11 October 2013, the then chief executive of the Transnet Freight Rail division, Siyabonga Gama, circulated a document calling for the procurement of 100 heavy haul electric locomotives from Mitsui via a “confinement” – which meant the direct negotiation of the purchase with Mitsui without going out on competitive tender.</p>
<p>Such confined procurement procedures are allowed in an emergency or where there is a “single source” supplier – or where a public entity seeks to extend an existing procurement contract.</p>
<p>Gama&#8217;s motivation for the confinement was the delay in the procurement of 1064 locomotives for Transnet’s general freight business, creating, he argued, a temporary gap in the fleet.</p>
<p>The motivation noted: “The heavy haul 100 Class 19E locomotives will be deployed in the Coal Export Line and will release 125 locomotives that will be used on [general freight] pending delivery from the 1064 program. ”</p>
<p>In other words, drafting in 100 new high-powered coal line locos would release 125 older models closer to their retirement age to be used in general freight while the new locos were still coming on stream.</p>
<p>Gama pointed out that the 100 coal-line locomotives formed part of an already approved “fleet plan”. In other words, they were already budgeted for.</p>
<p>Motivating for the confinement to one supplier, Mitsui, Gama argued Transnet would not be able to meet its aggressive freight targets without this emergency procurement.</p>
<p>He noted the Mitsui locomotives would in effect be an extension of an earlier supply contract of the same design. They were already “operating optimally and have exceeded their design parameters”.</p>
<p>He argued that re-starting Mitsui&#8217;s local production lines would be quick; jobs would be retained, delivery times would be minimised and set up costs reduced.</p>
<p>Gama said Transnet would demand 60% local content and set a target price of R34,3-million per loco.</p>
<p>Gama&#8217;s document was addressed to Sharma’s Board Acquisition and Disposal Committee.</p>
<h5>Monday, 14 October</h5>
<p>Sharma was not impressed. On the contrary, evidence from the #GuptaLeaks shows he sought to derail the proposal by raising doubt about the justification for the confinement.</p>
<p>He portrayed this as a matter of principle, but later events suggest it was a pretext – he raised no objections when the Chinese were chosen by a confinement that was far more arbitrary than the Mitsui proposal.</p>
<p>Sharma went over the board&#8217;s head, drafting a letter dated 14 October 2013 to then director general of public enterprises, Tshediso Matona.</p>
<p>Setting out his objections to Mitsui, Sharma wrote: “I cannot accept the argument [Transnet Freight Rail] makes that the urgent requirement is due to the late tender of the 1064 locomotives as it was well known that the tender was delayed from July 2012, yet for 15 months they did nothing&#8230;</p>
<p>“I am further concerned that the confinement relates to the same company that previously was awarded contracts by Transnet by way of a confinement&#8230; They will be presenting their case to [the acquisition and disposal committee] again on October 21, 2013, and it is for this reason that I seek your guidance and opinion on the matter.”</p>
<p>Was Sharma acting as a cats paw for the Guptas to derail the Mitsui bid? He denies it, but the leaks show him coordinating his approach with Saxonwold.</p>
<p>On the same day, 14 October, Sharma forwarded to Tony Gupta an email from Eric Wood of Regiments Capital relating to a R5-billion capital raising proposal for Transnet.</p>
<p>And there was more.</p>
<h5>Thursday, 17 October</h5>
<p>According to the <a href="http://amabhungane.co.za/article/2016-09-23-two-to-tango-the-story-of-zuma-and-the-guptas" target="_blank" rel="noopener noreferrer">#GuptaLeaks</a>, Sharma sent another email to Tony Gupta three days later, on 17 October 2013, to which he attached his letter to Matona, the DG.</p>
<p>The leaks show he also attached a draft response in Matona&#8217;s name in which the DG purported to urge the committee to reject this procurement via a confinement. Metadata show the draft response to have been written on Sharma&#8217;s computer.</p>
<p>But Sharma denies sending this email.</p>
<p>He told amaBhungane: “I did not send the purported email to Tony&#8230; I can confirm that at least two emails attributed to me were not sent by me. I will substantiate this in an appropriate forum.”</p>
<p>Sharma does not explain why someone would have hacked his email to send his Matona letter to Tony Gupta.</p>
<p>Sharma&#8217;s explanation for his decision to write to Matona is that in June 2011, then-minister of public enterprises Malusi Gigaba was upset because he was confronted in parliament with a media report that Transnet had secretly concluded an earlier locomotive deal via confinement with Mitsui. The report also questioned the political connections of Mitsui&#8217;s empowerment partners.</p>
<p>Sharma says Transnet chairman Mafika Mkwanazi relayed the minister’s displeasure at a subsequent board meeting.</p>
<p>“Recalling the incident of June 2011, the [acquisition and disposal committee] deliberated on the matter and the ‘urgency’ reason did not seem plausible&#8230; Management was sent back to improve their submission&#8230;”</p>
<p>Sharma says one member of the board committee disagreed vehemently with his view, so he decided to seek external guidance from the shareholder: “Hence my letter to the DG.”</p>
<p>Sharma and Matona are former colleagues from the department of trade and industry and Sharma describes Matona as a friend.</p>
<p>Matona has confirmed receiving the letter from Sharma, but denied knowing of the draft written in his name.</p>
<h5>Friday, 18 October</h5>
<p>The evidence shows Sharma tried to drive home the supposed political exposure of Mitsui&#8217;s empowerment partners by sending Matona a follow-up email on 18 October 2013 in which he copied the 2011 article that he said had embarrassed Gigaba.</p>
<p>In 2006 Mitsui linked up with, among others, Dr Khulu Mbatha and Zolile Magugu.</p>
<p>In 2013 Mbatha was a special advisor to then deputy president Kgalema Mothlanthe, but in September that year he had resigned his directorship in the company that had a 20% share in Mistui&#8217;s local empowerment vehicle.</p>
<p>Magugu had previously been an advisor to deputy president Phumzile Mlambo-Ngcuka, who had left government way back in 2008.</p>
<p>It seems rich that Sharma was concerned about these political links, given that he was in bed with the family that a few months earlier had landed their wedding guests at Waterkloof Airforce base.</p>
<p>And there is more evidence that suggests his real intent was to conspire with Saxonwold to hijack the 100 loco procurement process.</p>
<h5>Saturday, 19 October</h5>
<p>The #GuptaLeaks show that on Saturday 19 October 2013, Sharma emailed a copy of Gama&#8217;s Mitsui procurement motivation to Gupta lieutenant Ashu Chawla with a request: “please print”.</p>
<p>That motivation contained information that was highly sensitive in terms of Transnet&#8217;s internal decision-making and pricing.</p>
<p>Sharma admits sending this, but denies that he betrayed his fiduciary duty to Transnet by sharing the 100 loco motivation document with the Guptas via Chawla: “I did send an email to Ashu Chawla to print a document for me, as I was going to see him and wanted to have a hard copy to read.</p>
<p>“I saw no issue in doing so as Ashu’s function was like a PA/Secretary and I knew him. Had my intention been to send it to Tony, I would have done so directly.”</p>
<p>But the #GuptaLeaks show that Chawla was no secretary, but the chief executive of the Gupta&#8217;s Sahara Systems as well as a trusted intermediary for many of their more sensitive communications.</p>
<h5>Sunday, 20 October</h5>
<p>On Sunday 20 October, Matona replied to Sharma&#8217;s expression of concern about the confinement.</p>
<p>His response is more nuanced than Sharma&#8217;s ghosted letter, but it echoes the negative sentiments, despite Matona having, by his own admission, no access to the relevant facts.</p>
<h5>Monday, 21 October</h5>
<p>We do not have a copy of the minutes of the acquisition and disposal committee meeting of 21 October, but it is understood that Transnet chief executive Brian Molefe withdrew Gama&#8217;s Mitsui memorandum on that date.</p>
<p>The minutes of the following meeting on 21 November 2013 refer to decisions flowing from the previous meeting concerning the 100 loco proposal, including that certain information was apparently shared only with the committee chair – Sharma.</p>
<p>The minutes do not reveal what this information was, but it seems likely it included Matona&#8217;s letter. What we do know is that the minutes recorded that “incumbent parties identified in the confinement process were removed”.</p>
<p>Mitsui was gone.</p>
<p>Sharma has defended his actions, telling amaBhungane: “I have always acted in the best interest of Transnet and stand by my reasons for not supporting the Mitsui confinement&#8230; It is false for you to suggest that Mitsui was overlooked so that the tender would go CSR.</p>
<p>“All procurement submissions are generated by the Executives&#8230; As non-executive independent Directors who attend one meeting a month we did not have the aptitude to interrogate the technical details of the matter, nor was it our role to do so.”</p>
<p>Transnet told amaBhungane the company “was not made aware of Mr Iqbal Sharma’s alleged conflict of interest” in the 100 loco contract: “The Chairperson of the Board of Transnet at that time launched an investigation on the matter. Before these matters could be extensively dealt with, the term of the Board expired.”</p>
<h5>The Great Switcheroo</h5>
<p>Just two months later, on 24 January 2014, Molefe submitted a new confinement motivation to a special Transnet board meeting – except this time CSR was substituted for Mitsui.</p>
<p>The document is understood to have been drawn up in a hurry and appears to be largely a cut-and-paste of Gama&#8217;s Mitsui motivation.</p>
<p>Molefe&#8217;s motivation in favour of CSR artfully echoes Sharma&#8217;s concern about supposed political risk, noting: “Reputation risk exists, although subjective and places the company under unnecessary risk if it were to follow a confinement approach with Mitsui.</p>
<p>“This reputation risk involves speculation in the media around Mitsui&#8217;s local partners and their political affiliations. Transnet would never entertain awards based on the political prowess of any business partners&#8230; but the risk does need to be taken into account&#8230;”</p>
<p>A source involved in the Mitsui bid, who asked not to be identified, said Transnet never raised this “risk” issue with the company.</p>
<p>Mitsui in Japan were sent detailed questions but declined to comment, citing a confidentiality agreement with Transnet. The company has since significantly scaled down its office in South Africa.</p>
<p>Mbatha, their one-time empowerment partner, said the Japanese style was to walk away.</p>
<p>“They were in negotiations with Transnet to extend the earlier contract. Then, all of a sudden, Transnet just disappeared.”</p>
<p>It is understood that the concern regarding Mitsui’s supposed political exposure was never raised formally with the company.</p>
<p>Mbatha said: “There were rumours about concerns because people were politically connected. We would have welcomed an investigation&#8230; because I never lobbied anyone – at Transnet or in government&#8230; Instead of an investigation, we just heard this tender was given to the Chinese. I was very much shocked.”</p>
<p>Mbatha says some in the consortium wanted to fight the decision, but the Japanese business culture meant they would not say anything openly: “Even now with the email leaks – when it&#8217;s become quite clear why we lost the tender – they won&#8217;t budge.”</p>
<p>In his re-tread version of the Gama&#8217;s earlier Mitsui confinement application, Molefe also swept aside Mitsui&#8217;s proven design, arguing that “the Mistui consortium did not fare well in the two most recent tenders issued by Transnet”.</p>
<p>These were the 95 and 1064 tenders, the latter which was reaching its conclusion by January 2014. Of course it bears noting that the consortium that did fare well in both cases – CSR – was later shown to have paid massive “commissions” to the Gupta network.</p>
<p>It should also be noted that records show Essa, the Gupta lieutenant and Sharma associate, arriving for a lightning visit in Hong Kong on 9 January 2014 – shortly before Molefe submitted the CSR proposal on 24 January.</p>
<p>It is known that CSR Hong Kong signed a 21% commission contract on the 100 loco deal but it is not known exactly when.</p>
<p>As with the 1064 deal, it is understood that CSR first signed the commission agreement with a company that the Guptas appeared to use as a partner to launder their money – JJ Trading in Dubai – but later updated the deal with Essa as the signatory.</p>
<p>Sharma&#8217;s discomfort about a confined tender also did not rear its head again now that CSR was involved.</p>
<p>It may be significant that on 19 December 2012 the Gupta company Aerohaven is reflected in the leaks as having instructed its bankers to transfer R20-million to “Iqbal Meer Sharma”.</p>
<p>It is not known if this occurred, but it seems likely this was a loan to fund his stake in the purchase of VR Laser, a steel cutting business that would have been an ideal subcontractor for locomotive fabrication. Sharma has denied that VR Laser intended to do Transnet-related work, but this is contradicted by other evidence. He did not respond to a later question about the R20-million.</p>
<p>Molefe&#8217;s request to the Transnet board to confine the bid to CSR was still based on “urgency”, despite the fact that CSR did not have a proven, ready-to-roll product.</p>
<p>As one industry insider explained: “Because of our narrow gauge, there&#8217;s no such thing as off-the-shelf. Everything has to be rebalanced.”</p>
<p>Part of the motivation for selecting Mitsui in the first place was that Transnet could simply order a new batch of Mitsui’s 19E locomotives which were already operating on Transnet’s lines.</p>
<p>“Mitsui was a known design you could just continue with production; there would be very little delay. CSR did not have a heavy-haul loco. You had to add months’ delay to design one,” a second industry expert explained.</p>
<p>Somehow this was not a problem. No one objected to CSR being substituted for the same kind of contract where Mitsui had been rejected, despite the fact there was a much stronger case for Mitsui.</p>
<p>Transnet&#8217;s board approved the uncontested award for 100 Electric Locomotives to CSR the same day, 24 January 2013, at an estimated cost of R3.87-billion.</p>
<p>Note that price.</p>
<p>As anticipated, the new locomotive had to be redesigned as an upgrade from the 22-ton axle-load engine that CSR had developed for the 95 loco contract.</p>
<p>The first prototype CSR loco delivered as part of the 100 loco contract only rolled off the Chinese assembly line on 16 September 2014 and these locomotives were accepted into operation only by November 2015.</p>
<p>The second industry expert said: “Why was it confined when it was not an off the shelf product? It basically put Mitsui out of business here, losing that contract&#8230;”</p>
<p>The Mitsui operation, which had manufactured the 19E at Union Carriage &amp; Wagon in Nigel since 2009, was largely wound down. Contractors like Dorbyl and were also hard hit.</p>
<p>“It was devastating,” former managing director of Union Carriage Louis Taljaard told us.</p>
<p>“They [Union Carriage] were without work for quite a long period of time. Especially if that could follow on after they’ve had the other locomotives you would have retained more skills, you would have had a company that was making more profit. But the effect on Dorbyl was equally bad. Because supplying [locomotive] bogies [to Mitsui] was a big part of their business.”</p>
<p>By contrast, according to Transnet&#8217;s own figures, 40 of the 100 CSR locomotives were produced in China and only the remaining 60 locomotives were “assembled” at Transnet&#8217;s Koedoespoort yard, suggesting CSR came nowhere near the 60% local content requirement.</p>
<p>But Transnet’s questionable decision to substitute Mistui with CSR also came with a heavy price tag.</p>
<p>While 10% upfront payments are standard in the rail industry, Transnet paid an exceptionally high 30% advance to CSR on 1 April 2014, shortly after the contract was signed – amounting to a staggering R1,32-billion.</p>
<p>AmaBhangane has established that another 30% was due on 1 October 2014 when the design for CSR’s new locomotive would be approved, with only 37% of the price being withheld for formal acceptance of the physical locomotives and 3% for retention – a scenario that the first industry expert described as “crazy”.</p>
<p>What that means that by the time the first prototype was delivered, the Guptas and their associates were due to have received more than R554-million in terms of their 21% commission.</p>
<p><img src="https://cs.mg.co.za/content/images/2018/03/23/uVK08xrUTpm5Z3fGAwLY_Menwhomovedtrains.jpg" /></p>
<h5>“Escalation” – or kickback?</h5>
<p>On 10 April 2014, Mkwanazi, the then Transnet chairperson, directed a memorandum to Gigaba, copied to Matona, in which he sought so-called “section 54 approval” under the Public Finance Management Act for the confinement to CSR.</p>
<p>Just three months after a price of R3,87-billion was approved by the board, the price had now risen to R4,84-billion.</p>
<p>Mkwanazi claimed this was because of: “Entering into a fixed price contract thereby shielding the Company against any potential deterioration of the Rand against the US Dollar”; an escalation in labour and material costs; and something mysteriously labelled “forward looking trends”.</p>
<p>Mkwanazi declined to respond to queries for this article.</p>
<p>He said: “I suggest you publish what you have and I will respond through Transnet after the publication. The so called allegations against me will be responded to by Transnet.”</p>
<p>But Transnet would only say: “Transnet cannot comment on alleged activities that took place outside of working parameters of the individuals mentioned in your query.”</p>
<p>Gigaba recently told parliament that ministers were not involved in procurement at all. He claimed section 54 approvals were based on “in principle approval” of projects above a certain size, but the minister was not privy to who the bidders were.</p>
<p>On the 100 loco deal he said: “I did not know who was involved in the bidding process, and therefore interfered in no way.”</p>
<p>But the section 54 documents show Gigaba was informed that the bid was via a confinement, that CSR was nominated – and that the cost had inexplicably risen from R3,87-billion to R4,84-billion.</p>
<p>He gave his approval.</p>
<p>In fact the R970-million increase motivated by Mkwanazi neatly provided for the R924-million “commission” that CSR had agreed to pay the Guptas and their associates.</p>
<p>The Chinese paid – and the Guptas delivered.</p>
<p>There would be no argument about their ability to swing the 1064 contract.</p>
<p>Part 3 will show how.</p>
<p><img src="https://cs.mg.co.za/content/images/2017/11/24/3l5pxGWKS6WSGjcH1v1S_gutpaleakslogos1.jpg" /></p>
<p>&nbsp;</p>
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<p>&nbsp;</p>
<p><strong> </strong></p>
<p>The post <a rel="nofollow" href="https://amabhungane.agletonline.co.za/stories/the-great-train-robbery-part-2-the-choo-choo-switcheroo/">The great train robbery Part 2 – The choo-choo switcheroo</a> appeared first on <a rel="nofollow" href="https://amabhungane.agletonline.co.za">amaBhungane</a>.</p>
]]></content>
		</entry>
		<entry>
		<author>
			<name>Name Surname</name>
					</author>
		<title type="html"><![CDATA[Test Story 2]]></title>
		<link rel="alternate" type="text/html" href="https://amabhungane.agletonline.co.za/stories/test-story-2/" />
		<id>https://amabhungane.agletonline.co.za/?post_type=stories&#038;p=1816</id>
		<updated>2018-06-05T10:58:09Z</updated>
		<published>2018-05-25T14:23:08Z</published>
				<summary type="html"><![CDATA[<p>Lorem Ipsum &#8220;Neque porro quisquam est qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit&#8230;&#8221; Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aliquam pretium lacus a hendrerit blandit. [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://amabhungane.agletonline.co.za/stories/test-story-2/">Test Story 2</a> appeared first on <a rel="nofollow" href="https://amabhungane.agletonline.co.za">amaBhungane</a>.</p>
]]></summary>
		<content type="html" xml:base="https://amabhungane.agletonline.co.za/stories/test-story-2/"><![CDATA[<h1>Lorem Ipsum</h1>
<h4>&#8220;Neque porro quisquam est qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit&#8230;&#8221;</h4>
<div class="sidebar_content_quote sidebar_content_quote_right">There is no one who loves pain itself, who seeks after it and wants to have it, simply because it is pain&#8230;</div>
<p>Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aliquam pretium lacus a hendrerit blandit. Phasellus sed efficitur dui. Etiam in leo laoreet, volutpat sem et, facilisis erat. Etiam feugiat lobortis blandit. Phasellus accumsan dui ac consectetur viverra. Pellentesque eget turpis non ex consequat fringilla sit amet id elit. In hac habitasse platea dictumst. Cras laoreet tempor feugiat. Cras iaculis, mi vitae pellentesque vulputate, nisi urna dapibus turpis, nec blandit velit libero sit amet ex. Integer tincidunt, sem id blandit condimentum, orci metus placerat erat, sed molestie libero est vel mi. In elementum tempor nisi, id volutpat turpis pulvinar at. Etiam non quam dapibus, pulvinar dolor et, consequat libero. Morbi hendrerit ipsum odio, a maximus sapien tincidunt vel. Nam justo magna, mattis vitae vehicula at, euismod venenatis leo. Sed quis metus ultricies metus tristique molestie.</p>
<p>Proin consectetur iaculis scelerisque. Pellentesque a arcu consectetur, facilisis est non, tempor dui. Pellentesque ipsum sem, hendrerit vel quam vitae, commodo finibus massa. Fusce a tempor mi. Integer a lacinia urna, vitae tincidunt augue. Ut laoreet, arcu semper feugiat dignissim, dui ipsum convallis odio, sed eleifend eros risus sit amet erat. Phasellus ut ullamcorper ante. Vivamus id nisl quam. Cras tortor leo, fringilla vitae convallis nec, fermentum vitae metus. Orci varius natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Nam molestie tempor justo, ac ornare purus pharetra at. Proin lacus ipsum, suscipit eget odio fringilla, eleifend posuere lectus. Duis gravida, orci vel egestas fringilla, libero quam fringilla lacus, et vehicula sem neque et massa.</p>
<p class="single_image_wrapper"><img class="sidebar_content_single_image sidebar_content_single_image_right" src="https://amabhungane.agletonline.co.za/wp-content/uploads/2018/03/676x380-119.jpeg" "/><span class="aglet_caption right">This is the caption of the image that is above</span></p>
<p>Ut libero erat, tempus at ex quis, mollis vulputate felis. Mauris augue risus, mattis sit amet malesuada at, tristique vitae mi. Cras fringilla libero justo, a molestie orci consequat tristique. Phasellus quis tortor ullamcorper, blandit mauris nec, feugiat lacus. Quisque eget leo aliquam, dapibus elit eu, condimentum nulla. Nullam scelerisque augue vitae eros congue, id hendrerit mi scelerisque. Morbi vitae lacinia dui, vitae efficitur orci. Quisque viverra aliquam ipsum id facilisis. Nunc bibendum urna fermentum arcu finibus consectetur. Duis nec erat lectus. Donec odio lorem, convallis non ipsum ac, finibus facilisis metus. Ut bibendum augue tristique vehicula cursus. Nullam vehicula non risus non hendrerit. Integer ac tempus purus, volutpat fermentum tortor.</p>
<p class="single_image_wrapper"><img class="sidebar_content_single_image sidebar_content_single_image_right" src="https://amabhungane.agletonline.co.za/wp-content/uploads/2018/03/676x380-119.jpeg" "/><span class="aglet_caption right">This is the caption of the image that is above</span></p>
<p>Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas. Integer a eleifend massa. Suspendisse potenti. Quisque sit amet neque vitae ex venenatis gravida. Phasellus at scelerisque odio, vitae posuere massa. Curabitur eu leo pharetra, efficitur massa et, pellentesque arcu. Suspendisse a metus mauris. Praesent ex purus, luctus nec enim non, congue blandit magna. Aenean diam libero, pretium in rhoncus non, pretium eget lectus. Cras in ex non lorem gravida finibus. Nam efficitur ultrices tellus sed aliquet. Integer et augue mattis justo volutpat posuere et ac leo. Nunc eu mattis erat. Donec placerat, justo eget viverra porta, magna dui fermentum nisi, eu accumsan nisi ex a odio. Integer ultricies purus eget malesuada varius.</p>
<div class="highlighted_text friendly_button_none">Cras in ex non lorem gravida finibus. Nam efficitur ultrices tellus sed aliquet.</div>
<p>Maecenas laoreet neque ut rhoncus hendrerit. Donec ac vestibulum ante. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos himenaeos. Fusce posuere vitae tellus sit amet lobortis. Fusce bibendum diam accumsan, lacinia leo eget, bibendum nibh. Duis tempus placerat quam, at tincidunt sem dignissim sit amet. Nam dapibus vitae sapien a euismod. In in tempus lorem. Integer interdum mauris in velit elementum facilisis. Donec dolor neque, lacinia sed tempus elementum, accumsan id nulla. Duis semper lacus at fermentum interdum. Aenean iaculis accumsan nulla, eget rhoncus tortor pellentesque eu. Donec tincidunt nibh non metus faucibus, vel facilisis dui eleifend.</p>
<p>Donec ultrices commodo hendrerit. Sed interdum leo id nisl pharetra interdum. Cras porta metus nec nulla blandit tincidunt. Quisque et purus sit amet diam gravida vulputate. Vivamus sagittis felis eget libero euismod, ac volutpat diam tincidunt. Sed egestas nisi ut neque luctus, at ultrices orci ullamcorper. Aliquam at nibh sed ante euismod ornare.</p>
<p class="sidebar_content_gallery_image sidebar_content_gallery_image_right"><img src=https://amabhungane.agletonline.co.za/wp-content/uploads/2018/03/676x380-129.jpeg /><img src=https://amabhungane.agletonline.co.za/wp-content/uploads/2018/03/676x380-130.jpeg /><img src=https://amabhungane.agletonline.co.za/wp-content/uploads/2018/03/676x380-131-e1525084596319.jpeg /><img src=https://amabhungane.agletonline.co.za/wp-content/uploads/2018/03/676x380-116.jpeg /><span class="aglet_caption">This is the caption for the gallery image</span></p>
<p>In hac habitasse platea dictumst. Integer mollis metus ac metus porttitor, at condimentum nisi rhoncus. Nunc ut eros quis nisl faucibus gravida non et lacus. Duis feugiat, tortor non venenatis ornare, nulla ex varius sem, ac condimentum nulla augue nec est. Suspendisse quis nibh nisl. Vivamus posuere tincidunt libero a sollicitudin. Suspendisse tincidunt neque tortor, non tempor mi malesuada ac. Nunc at enim in magna tempus finibus. Vestibulum ante ipsum primis in faucibus orci luctus et ultrices posuere cubilia Curae; Cras sodales velit odio, ut condimentum augue vehicula id. Nunc pharetra pretium massa quis varius.</p>
<p>Phasellus ut ex nec velit consequat pellentesque a at odio. Interdum et malesuada fames ac ante ipsum primis in faucibus. Morbi sed sem nisl. Phasellus suscipit tristique sapien, ac pellentesque felis pharetra vitae. Fusce elit est, commodo luctus semper id, ultricies id risus. Nulla in lectus lorem. Curabitur iaculis felis sed tempor semper. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos himenaeos. Pellentesque non risus eu mi gravida dictum sit amet ac arcu. Nam at hendrerit sapien, a blandit sapien. Donec ut fringilla ante.</p>
<div class="highlight_list highlight_list_none"></p>
<ul>
<li>Proin consectetur iaculis scelerisque.</li>
<li>Proin consectetur iaculis scelerisque.</li>
<li>Proin consectetur iaculis scelerisque.</li>
<li>Proin consectetur iaculis scelerisque.</li>
<li>Proin consectetur iaculis scelerisque.</li>
</ul>
<p></div>
<p>Ut efficitur lorem turpis, in imperdiet lacus eleifend sit amet. Proin eu consectetur quam, at sollicitudin quam. Aenean erat eros, sodales in condimentum eget, semper et felis. Sed sit amet magna eu erat hendrerit porttitor. Phasellus eget eros imperdiet ex pretium eleifend. Morbi in diam sit amet leo pellentesque molestie. In sollicitudin feugiat felis, sed viverra lectus vulputate eu. Nulla suscipit condimentum ultrices. Ut pulvinar est vitae enim hendrerit, sed consequat sem cursus. Sed efficitur massa vitae quam vehicula ultricies. Praesent varius tellus id dui pretium condimentum. Vestibulum ante ipsum primis in faucibus orci luctus et ultrices posuere cubilia Curae; Nunc nec dictum leo, nec porttitor eros. Nam vehicula mauris at arcu pharetra, quis semper ligula scelerisque.</p>
<p>Maecenas sit amet ante at eros pretium suscipit. Maecenas nec elit libero. Curabitur vel porttitor massa. Sed lacinia ullamcorper enim, at cursus risus tincidunt a. Nullam congue mauris dictum arcu mattis, vel pretium sem tincidunt. Donec pellentesque vitae nulla id feugiat. Donec commodo faucibus vulputate. Maecenas vel euismod risus. Donec mattis consectetur lacinia. Proin ut vulputate sapien. Quisque id orci ut sem semper dapibus quis a augue. Praesent mollis fermentum est, in varius neque maximus ut.</p>
<p>Sed convallis nunc ex, at ultricies magna volutpat ac. Donec nec justo sit amet sapien tristique dapibus in rutrum tellus. Nulla eu velit elementum, finibus lacus porttitor, vestibulum nisi. Praesent fringilla enim vel ex consectetur aliquam. Donec interdum metus vitae ipsum hendrerit, at aliquet eros accumsan. Donec nisi urna, eleifend posuere justo non, blandit fermentum arcu. Sed id neque a dolor bibendum fringilla vel et mauris. Curabitur ac auctor neque. Quisque laoreet ante vel facilisis egestas. Aenean at risus nec ex pellentesque aliquet in vel purus. Fusce ac turpis augue. Integer quis elit faucibus, fermentum enim id, tempor diam. Mauris dolor nibh, aliquam sit amet cursus eu, fermentum rutrum nisi. Fusce non nisl velit. Nulla rutrum, lacus vitae egestas vehicula, lacus nisi euismod massa, in cursus mi ante id orci.</p>
<p><span class="aglet_caption video_caption">This is the video caption for the above video</span><iframe id="981" class="sidebar_content_video sidebar_content_video_right" src="https://www.youtube.com/embed/3GwjfUFyY6M" frameborder="0" allow="autoplay; encrypted-media" allowfullscreen></iframe></p>
<p>Interdum et malesuada fames ac ante ipsum primis in faucibus. Ut malesuada blandit hendrerit. Nulla in urna id magna vestibulum varius nec quis nibh. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas. Nulla facilisi. Nulla pulvinar ante ac nibh rutrum faucibus. Etiam a massa id mi maximus dapibus nec sit amet nisi. Cras interdum lectus nec accumsan aliquam. In consectetur augue velit, nec pretium nulla elementum quis. Fusce mattis nec odio at scelerisque. Aenean auctor egestas magna, ultricies consectetur massa efficitur ut.</p>
<p>Ut convallis eget nunc eu molestie. Cras consequat efficitur sapien nec volutpat. Integer nec est in eros aliquet convallis et ac arcu. Sed porttitor in nunc non ullamcorper. Integer quis bibendum nisl. Aliquam bibendum tempor eleifend. Integer laoreet dictum elit et tincidunt. Nulla gravida molestie pulvinar. Donec sed ipsum nulla. Sed augue quam, maximus tristique interdum a, gravida id lorem. Sed in nibh leo. Aenean semper justo tellus, sed convallis erat tempus feugiat. Donec id maximus enim. Vestibulum enim erat, feugiat eu mattis sed, aliquam quis arcu.</p>
<p>Mauris vel faucibus sem. Cras libero nisi, molestie ac porta facilisis, dignissim at elit. Etiam ut purus ante. Donec ultrices euismod orci, vitae consectetur risus dictum ut. Vivamus maximus lorem eu metus efficitur, vel vestibulum nunc tincidunt. Maecenas ac diam sed dui volutpat varius. Vestibulum pulvinar eget ante ac dictum. Mauris aliquam turpis ut felis sagittis ullamcorper. Maecenas id volutpat metus, non accumsan nisl. Interdum et malesuada fames ac ante ipsum primis in faucibus. Mauris mollis quam dui, sit amet auctor neque blandit in. Cras vitae euismod nisi, vitae semper ante. Etiam a quam massa. Vestibulum sollicitudin imperdiet fringilla.</p>
<p>Fusce ac dignissim erat, at lacinia sem. In eleifend blandit tincidunt. Donec id erat et nunc placerat posuere. Vestibulum sed urna ex. Duis hendrerit risus eget mauris blandit fermentum. Sed consectetur nisi quis turpis tempus ultrices. Pellentesque nec nibh enim. Pellentesque bibendum ipsum id sapien consectetur volutpat. Aliquam tellus lacus, vestibulum vel augue a, interdum vehicula magna. Nunc justo magna, placerat et tincidunt eget, blandit in ipsum. Nulla facilisi.</p>
<p class="single_image_wrapper"><img class="sidebar_content_single_image sidebar_content_single_image_right" src="https://amabhungane.agletonline.co.za/wp-content/uploads/2018/03/676x380-119.jpeg" "/><span class="aglet_caption right">This is the caption of the image that is above</span></p>
<p>Maecenas eget elit eget felis eleifend laoreet. Sed scelerisque scelerisque blandit. Donec ullamcorper ex ut velit aliquet ornare. Aenean vel metus sit amet ipsum elementum fringilla. Suspendisse id pharetra erat. Phasellus luctus quam dignissim lorem sollicitudin aliquet. Donec ultrices lorem et nibh rutrum condimentum. Etiam ullamcorper elementum ante, eget mattis nisi auctor a.</p>
<p>Aenean gravida eleifend quam. Maecenas elementum felis augue, et congue dui varius in. Praesent tincidunt rhoncus orci, sed fringilla sapien sollicitudin vel. Praesent pretium, eros et mollis imperdiet, odio mi iaculis nulla, ut finibus dolor velit eu eros. Vivamus dapibus leo a lacus porta, sed molestie tortor mattis. Sed a ipsum vel justo pellentesque gravida ac a odio. Donec vel arcu id velit pulvinar pulvinar at sit amet risus.</p>
<p>Sed vulputate semper massa, a varius ipsum vehicula sit amet. Ut sagittis at diam in euismod. Maecenas vitae venenatis purus, at sodales velit. Proin quis velit porttitor, mattis purus id, gravida neque. Cras consequat, turpis in ullamcorper luctus, magna dui commodo augue, vitae fringilla ante nibh at nisi. Nam ac massa ut quam fringilla aliquam. Phasellus luctus arcu vitae quam volutpat, porttitor pulvinar erat vehicula.</p>
<blockquote><p>Pellentesque sit amet tristique neque, eget sodales nibh. Suspendisse non tempor risus. Phasellus porta dolor in interdum ultricies. Sed ut erat tempus, venenatis felis et, maximus tellus. Aenean tempor arcu id velit elementum, non tristique velit accumsan. Pellentesque felis dolor, convallis a felis eu, dapibus ullamcorper nisi. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas. Sed vestibulum venenatis est in auctor.</p></blockquote>
<p>Aenean venenatis egestas pellentesque. Donec ac erat mollis, interdum neque quis, sollicitudin nulla. In vehicula arcu et ullamcorper varius. Pellentesque eleifend, ligula ut convallis fringilla, diam est tempor tortor, eget cursus urna odio vitae libero. Fusce eu dolor mauris. Pellentesque egestas est vitae imperdiet lacinia. In vitae accumsan tellus. Cras lacinia congue risus sit amet lacinia. Etiam quis pellentesque leo. Aenean quis lectus a enim viverra tempus id vitae dolor.</p>
<p>The post <a rel="nofollow" href="https://amabhungane.agletonline.co.za/stories/test-story-2/">Test Story 2</a> appeared first on <a rel="nofollow" href="https://amabhungane.agletonline.co.za">amaBhungane</a>.</p>
]]></content>
		</entry>
		<entry>
		<author>
			<name>Name Surname</name>
					</author>
		<title type="html"><![CDATA[Test Story]]></title>
		<link rel="alternate" type="text/html" href="https://amabhungane.agletonline.co.za/stories/test-story/" />
		<id>https://amabhungane.agletonline.co.za/?post_type=stories&#038;p=422</id>
		<updated>2018-06-05T10:57:40Z</updated>
		<published>2018-03-19T14:04:41Z</published>
				<summary type="html"><![CDATA[<p>This is the test story short excerpt for the test story.</p>
<p>The post <a rel="nofollow" href="https://amabhungane.agletonline.co.za/stories/test-story/">Test Story</a> appeared first on <a rel="nofollow" href="https://amabhungane.agletonline.co.za">amaBhungane</a>.</p>
]]></summary>
		<content type="html" xml:base="https://amabhungane.agletonline.co.za/stories/test-story/"><![CDATA[<p>&nbsp;</p>
<div class="highlighted_text friendly_button_none">There is no one who loves pain itself</div>
<p>Lorem ipsum dolor sit amet, consectetur adipiscing elit. Duis sed purus orci. Morbi quis auctor odio. Pellentesque porta, dolor a euismod gravida, ligula nulla condimentum ipsum, vitae cursus est enim vitae lorem. Suspendisse ullamcorper malesuada augue, vel porttitor metus pharetra ac. Vestibulum enim ex, commodo eget turpis nec, malesuada sodales nunc. Morbi ultricies nunc vel mattis sodales. Phasellus efficitur diam non urna ultrices scelerisque. Fusce ac massa tellus. Maecenas id mattis tellus. Nam lacinia ligula urna, nec eleifend justo elementum nec. Donec auctor pharetra lectus. Donec vel interdum nunc. Nunc magna ex, ornare sed eleifend eget, lobortis eu nunc. Curabitur eu nibh dapibus, condimentum ante vulputate, convallis sapien.</p>
<p class="single_image_wrapper"><img class="sidebar_content_single_image sidebar_content_single_image_right" src="https://amabhungane.agletonline.co.za/wp-content/uploads/2018/03/676x380-120.jpeg" "/><span class="aglet_caption right">This is a small little caption for the image</span></p>
<p>Etiam pretium tortor sed placerat bibendum. Quisque viverra imperdiet lacus, nec faucibus dolor aliquam a. Cras quis iaculis risus. Vivamus rutrum, ligula quis molestie iaculis, massa tortor tempus odio, vel consequat nisl ex eu dui. Nulla non euismod diam, vitae facilisis felis. Nullam arcu purus, varius non blandit posuere, porta eleifend lacus. Etiam tortor lorem, finibus eget fringilla eu, pretium sit amet dolor. Sed maximus, eros vitae aliquam blandit, nulla purus convallis lectus, ac volutpat dolor purus vitae nisl. Aliquam at enim nec mauris semper consectetur. Sed lacinia, arcu non pharetra aliquam, dui nisi molestie eros, sed sagittis libero dolor sit amet augue. Praesent nec leo id lectus fringilla tincidunt sit amet quis felis. Donec dapibus fermentum urna, nec vestibulum magna efficitur at. Nulla porta mauris ut quam fermentum, ac luctus justo rutrum. Praesent mi est, aliquet eget sapien eu, ultricies aliquam ipsum. Nulla rutrum hendrerit cursus.</p>
<p>&nbsp;</p>
<figure id="attachment_1637" style="width: 676px" class="wp-caption alignnone"><img class="size-full wp-image-1637" src="https://amabhungane.agletonline.co.za/wp-content/uploads/2018/03/676x380-131.jpeg" alt="Lesotho: Milling company fails to show profit to government" width="676" height="380" /><figcaption class="wp-caption-text">Lesotho: Milling company fails to show profit to government</figcaption></figure>
<p>Nunc risus justo, vulputate eu commodo ac, bibendum ut quam. Aenean blandit ultrices vestibulum. Maecenas euismod risus eu gravida molestie. Curabitur scelerisque odio quis turpis feugiat, ut lacinia nibh maximus. Fusce ut mi facilisis, bibendum ligula ut, suscipit orci. Ut feugiat dui mi, vitae sagittis lorem vehicula id. Aliquam et tortor vitae est sagittis molestie et a metus. Integer luctus, arcu ac ornare aliquam, quam metus euismod leo, quis imperdiet felis magna nec metus.</p>
<div class="sidebar_content_quote sidebar_content_quote_right">Nulla rutrum hendrerit cursus.</div>
<p>Proin ultricies rhoncus mi, at sodales odio scelerisque non. Maecenas scelerisque sem at libero faucibus, ac luctus dui mollis. Integer hendrerit consectetur erat, sed scelerisque turpis viverra eu. Quisque pellentesque mi ac pharetra hendrerit. Sed eget ultrices nunc. Donec ut mauris ligula. Mauris eget congue massa, eu varius metus. Praesent posuere elit at ligula sagittis dignissim. Praesent rutrum facilisis hendrerit. Ut nulla ligula, tristique nec lectus in, tristique placerat urna.</p>
<p class="sidebar_content_gallery_image sidebar_content_gallery_image_right"><img src=https://amabhungane.agletonline.co.za/wp-content/uploads/2018/03/676x380-124.jpeg /><img src=https://amabhungane.agletonline.co.za/wp-content/uploads/2018/03/676x380-116.jpeg /><img src=https://amabhungane.agletonline.co.za/wp-content/uploads/2018/03/676x380-117.jpeg /><img src=https://amabhungane.agletonline.co.za/wp-content/uploads/2018/03/676x380-118.jpeg /><span class="aglet_caption">This is a small caption for the gallery</span></p>
<p>Sed vel ipsum efficitur, efficitur neque eu, pulvinar justo. Praesent lobortis justo id eros imperdiet, non hendrerit ex condimentum. Sed et metus cursus, fermentum nulla vulputate, iaculis massa. Integer quis dapibus nibh. Cras vel magna dui. Sed tincidunt ligula sit amet lectus ultrices cursus. Duis posuere vitae massa eget laoreet. Aenean congue sodales diam et consequat. Nulla facilisi.jashkdjkashdkjahsdkjhaskdhaskjhdjh</p>
<p>Aliquam auctor leo sit amet dictum cursus. Curabitur porta porta molestie. Sed placerat rutrum libero, hendrerit convallis quam pharetra quis. Nulla fermentum, dui sed vehicula tristique, mi risus volutpat nunc, quis dignissim sapien metus non eros. Etiam dui ante, lacinia non diam in, iaculis egestas dui. Nulla suscipit velit rhoncus efficitur tincidunt. Donec luctus venenatis ornare. Praesent maximus euismod sem sed luctus.</p>
<p>Aliquam auctor leo sit amet dictum cursus. Curabitur porta porta molestie. Sed placerat rutrum libero, hendrerit convallis quam pharetra quis. Nulla fermentum, dui sed vehicula tristique, mi risus volutpat nunc, quis dignissim sapien metus non eros. Etiam dui ante, lacinia non diam in, iaculis egestas dui. Nulla suscipit velit rhoncus efficitur tincidunt. Donec luctus venenatis ornare. Praesent maximus euismod sem sed luctus. Nam sodales sagittis odio, in facilisis risus sodales tempus. Sed eget purus eget magna semper mollis ac sed justo.</p>
<h5>Small heading</h5>
<p class="sidebar_content_gallery_image sidebar_content_gallery_image_right"><img src=https://amabhungane.agletonline.co.za/wp-content/uploads/2018/03/676x380-124.jpeg /><img src=https://amabhungane.agletonline.co.za/wp-content/uploads/2018/03/676x380-116.jpeg /><img src=https://amabhungane.agletonline.co.za/wp-content/uploads/2018/03/676x380-117.jpeg /><img src=https://amabhungane.agletonline.co.za/wp-content/uploads/2018/03/676x380-118.jpeg /><span class="aglet_caption"> This is a small caption for the gallery</span></p>
<p>Pellentesque et tellus semper, interdum metus gravida, pulvinar neque. Nulla aliquet egestas orci, quis suscipit ante faucibus at. Suspendisse felis felis, sollicitudin et justo eu, consectetur porttitor leo. In blandit tempus turpis at dictum. Fusce ut rutrum magna, sed sagittis nulla. Suspendisse in lacus ipsum. Integer ut justo turpis. Maecenas blandit arcu eu pulvinar mollis. Curabitur laoreet dapibus lacus et mollis. Donec ultricies leo sit amet elit consectetur, et accumsan mauris blandit. Nulla porttitor mollis ligula, in condimentum orci posuere vehicula. Nam facilisis justo orci, eu efficitur felis accumsan id.</p>
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<h2>Sun head</h2>
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		<author>
			<name>Name Surname</name>
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		<title type="html"><![CDATA[Nigerian bank investigation could embroil MTN, Ramaphosa]]></title>
		<link rel="alternate" type="text/html" href="https://amabhungane.agletonline.co.za/stories/nigerian-bank-investigation-could-embroil-mtn-ramaphosa/" />
		<id>https://amabhungane.agletonline.co.za/stories/nigerian-bank-investigation-could-embroil-mtn-ramaphosa/</id>
		<updated>2018-06-05T10:46:00Z</updated>
		<published>2018-03-16T00:00:00Z</published>
		<category scheme="https://amabhungane.agletonline.co.za" term="Homepage Stories" />		<summary type="html"><![CDATA[<p>A joint investigation by Finance Uncovered and amaBhungane.</p>
<p>The post <a rel="nofollow" href="https://amabhungane.agletonline.co.za/stories/nigerian-bank-investigation-could-embroil-mtn-ramaphosa/">Nigerian bank investigation could embroil MTN, Ramaphosa</a> appeared first on <a rel="nofollow" href="https://amabhungane.agletonline.co.za">amaBhungane</a>.</p>
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		<content type="html" xml:base="https://amabhungane.agletonline.co.za/stories/nigerian-bank-investigation-could-embroil-mtn-ramaphosa/"><![CDATA[<p>President Cyril Ramaphosa could be drawn into a forensic probe initiated by the Nigerian government into alleged foreign exchange violations by banks acting on behalf MTN, the South African telecommunications giant.</p>
<p>Ramaphosa&#8217;s former investment holding company Shanduka is among previous and current shareholders in MTN Nigeria whose names have cropped up during a forensic audit of billions of dollars flowing in and out of Nigeria.</p>
<p>The audit centres on foreign exchange declarations the banks issued to MTN, for whom Nigeria is the biggest and most lucrative market.</p>
<p>A confidential audit report, which <em>Finance Uncovered</em> has seen, makes no allegations of wrongdoing against MTN, but its claims raise questions about whether MTN knew about its bankers&#8217; alleged violation of Nigerian laws and even if it might have benefitted from this.</p>
<p>Ramaphosa was also non-executive chairman of MTN during the time of the banks’ alleged violations.</p>
<p>MTN said it had not been approached by the authorities, adding that the company “has not at any material time participated in any improper repatriation of funds from any jurisdiction”.</p>
<p>South Africa&#8217;s Standard Bank is one of several global banking groups who are alleged to have “breached” Nigeria&#8217;s foreign exchange regulations repeatedly, to the tune of billions of dollars over a period of 15 years. [<em>See &#8216;Standard Bank named in Nigerian probe&#8217; below</em>]</p>
<p>A spokesperson for Standard Bank&#8217;s Nigerian subsidiary said it had received no “formal communication” from the Nigerian government about the investigation and therefore could not comment.</p>
<p>The forensic probe also flags South Africa&#8217;s Public Investment Corporation (PIC) as having received an irregular forex clearance around the time it acquired its MTN Nigeria stake.</p>
<p>Amabhungane has established that the PIC stake was bought from Shanduka in 2015.</p>
<p>Ramaphosa&#8217;s family trust held a 29.6 percent stake in Shanduka but he eventually unbundled his shareholdings after he became deputy president in 2014.</p>
<p>The fact that the PIC bought most of Ramaphosa&#8217;s stake also appears to have been concealed until recent inquiries by Finance Uncovered and amaBhungane.</p>
<p>The investment was a bad one for the PIC: the shares were declared to be worth R2,802,327,000 at the time of purchase; in the 2017 annual report for the PIC they were valued at only R996,000,000 – 35% of what they were bought for.</p>
<p>Much of the loss in value was due to the massive fine imposed on MTN in October 2015 for violations of Nigerian subscriber registration rules.</p>
<p>Questions are likely to be asked about whether Ramaphosa had any knowledge of the Nigerian regulatory risk at the time Shanduka sold its shares in April 2015.</p>
<p>His acting spokesperson Tyrone Seale did not respond to numerous requests for comment.</p>
<p>In August 2012 Ramaphosa&#8217;s Shanduka investment vehicle received clearance from its Nigerian bank, Standard Chartered Nigeria, to bring $10,9-million in preference shares and equity to Nigeria to invest in the MTN company there.</p>
<p>The Nigerian government probe has identified this capital movement as one of hundreds of irregular clearances issued to MTN and its shareholders by commercial banks in contravention of Nigerian capital control laws.</p>
<p>This inflow appears to have been linked to Shanduka&#8217;s public announcement, in November 2012, that it had acquired a minority stake in MTN Nigeria worth US$335-million.</p>
<p>The stake was acquired from three private investors by Shanduka Telecommunication (Mauritius), reported to be a wholly-owned subsidiary of Shanduka Group.</p>
<p>At the time, Ramaphosa held the largest stake in Shanduka, and also chaired the MTN Group.</p>
<p>Ramaphosa re-entered the political arena in December 2012 &#8212; a month after Shanduka announced its MTN Nigeria investment &#8212; when he was elected deputy president of the ANC.</p>
<p>He stepped down from the MTN board a few months later.</p>
<p>Ramaphosa announced his intended divestment from Shanduka following his appointment as South African deputy president in May 2014, and by May 2015 he had reportedly finalised his divestment by selling his 29.6% stake to Phembani Group as part of a Shanduka-Phembani merger.</p>
<p>Over the period October 2012 to January 2015, the Nigerian forensic report indicates Shanduka Telecommunication (Mauritius) Limited received dividends of $88,7-million from MTN Nigeria.</p>
<p>Until late last month, MTN&#8217;s official website showed Shanduka Telecommunication (Mauritius) owning 2.71% of MTN Nigeria.</p>
<p>When <em>Finance Uncovered</em> approached Phembani (the merged conglomerate) for comment, a spokesperson said that the MTN Nigeria stake was not part of the assets it acquired from Shanduka.</p>
<p>“Shanduka Group no longer held shares in MTN Nigeria at the time of Phembani acquiring the Shanduka assets,” they said, adding, “We are advised that Shanduka no longer holds a stake in MTN Nigeria.”</p>
<p>Two days later, the same webpage was updated to reflect a new MTN Nigeria shareholding &#8212; without any Shanduka stake.</p>
<p>The updated webpage instead reflects a new shareholder: South African state-owned public sector investment arm, the Public Investment Corporation (PIC), with a 1.76% stake.</p>
<p>A spokesperson for the PIC told us: “The Public Investment Corporation (PIC) can confirm that it acquired MTN Nigeria shares through Over The Counter (OTC) market in Nigeria. The shares were purchased in 2015 for USD 230.993 million.”</p>
<p>The PIC said it purchased MTN Nigeria shares on 27 March 2015 and took transfer on 02 April 2015: “The parties involved in the transaction were Standard Chartered bank, which acted as an Escrow Agent and Sao Capital as the transaction advisor. There was no negotiation with Mr Ramaphosa, Shanduka or MTN.</p>
<p><em>&#8220;</em>The PIC put a successful bid for the shares, based on what we deemed to represent the fair value of the shares. At the time of making the investment, the Nigerian telecommunications market was attractive&#8230;</p>
<p>However, following this investment, MTN was fined for not complying with regulations in that country&#8230; We are now comforted that MTN has taken steps to strength regulatory compliance and risk management to prevent repeat of what happened. As a long term investor, our view is that the medium to long term prospects of the Nigerian telecommunications market remain attractive.”</p>
<p>A further 0.95% stake is unaccounted for in this newly disclosed shareholding, but MTN told us it had been purchased by Hermitage Overseas Corporation Limited, which has been linked by allegations in the Nigerian parliament to local billionaire Victor Odili.</p>
<p>Before it merged with Shanduka, Phembani was majority-owned by Phuthuma Nhleko who now chairs the merged Phembani group.</p>
<p>Nhleko and Ramaphosa were a long-running double act as CEO and non-executive chairman of MTN respectively between 2002 and 2011.</p>
<p>Nhleko then resigned but returned to MTN to succeed Ramaphosa as non-executive chairman in 2013.</p>
<p>Nhleko temporarily took the reins as MTN executive chairman between 2015 and 2017 to help steer the company through its regulatory challenges in Nigeria.</p>
<p>Nhleko is now non-executive chairman again.</p>
<h4>Standard Bank named in Nigerian probe</h4>
<p><em>By Lionel Faull, Nick Mathiason &amp; Emmanuel Mayah for Finance Uncovered</em></p>
<p>South Africa&#8217;s Standard Bank is one of several global banking groups who “breached” Nigeria&#8217;s foreign exchange regulations repeatedly to the tune of billions of dollars over a period of 15 years, a leaked confidential audit report has alleged.</p>
<p>The damning report accuses Standard Bank&#8217;s Nigerian subsidiary, as well as the UK&#8217;s Standard Chartered and US rival Citigroup, of widespread misreporting of their currency flows in Nigeria.</p>
<p>The audit report centres on foreign exchange declarations the banks issued to their client, MTN, for whom Nigeria is its biggest and most lucrative market.</p>
<p>Nigeria’s Attorney General commissioned the audit from a Lagos law firm last year.</p>
<p>The audit report recommends the banks immediately “refund and return” up to $13.2-billion (R152.5-billion) to the Central Bank of Nigeria– a regulatory sanction in line with the central bank’s Foreign Exchange Manual.</p>
<p>Unlike Standard Chartered and Citibank, Standard Bank has not been asked to return any money. It is understood that the reason for this is because at the time of the audit its subsidiary Stanbic IBTC had not transferred funds out of Nigeria on behalf of MTN.</p>
<p>But the report alleges that Stanbic may have failed to declare almost $950-million in capital inflows to Nigeria and recommends that its future right to use these declarations to repatriate dividends for MTN shareholders is withdrawn.</p>
<p>The report makes no allegations of wrongdoing against MTN, but its claims raise questions about whether MTN knew about its bankers&#8217; alleged violation of Nigerian laws and even if it might have benefitted from this.</p>
<p>The report’s authors added their recommendations were “without prejudice to criminal charges” that may also be considered by the attorney general under the country’s foreign exchange laws.</p>
<p>It is unclear whether the Nigerian government has provided the banks with a copy of the report and has given them an opportunity to respond to the allegations.</p>
<p>While the report states it “forensically analyse[d] … documents and information obtained from the concerned banks”, a spokesperson for Stanbic said it had received no “formal communication” from the Nigerian government about the investigation and therefore could not comment.</p>
<p>MTN said it had not been approached either, adding that the company “has not at any material time participated in any improper repatriation of funds from any jurisdiction.”</p>
<p>The report’s demands for “required enforcement actions” were delivered to the attorney general and the central bank last October but almost five months later there are concerns nothing has been done. A whistleblower, angry at the perceived inaction of Nigeria’s authorities, showed a copy of the report to <a href="http://www.financeuncovered.org/" target="_blank" rel="noopener noreferrer"><em>Finance Uncovered</em></a>.</p>
<p>They said the report was a “landmark case” made possible by the present government’s “anti-corruption stance”.</p>
<p>The central bank has in the past ordered offending banks to refund irregular forex trades, and temporarily suspended others from trading – but this report’s recommended actions are believed to be unprecedented in its scope and scale.</p>
<p>Sceptical analysts have previously suggested that the Nigerian government has been targeting South African multinationals with regulatory fines in the wake of the oil price slump of 2014, which had left Nigeria with budget deficits and constrained foreign currency reserves.</p>
<p>MTN’s share price has not recovered since the Nigerian government issued an initial fine of $5,2-billion in 2015 for failing to disconnect unregistered mobile phone subscribers. The fine has since been reduced to under $1-billion after high-level diplomatic negotiations.</p>
<p>Stanbic also faced a $5-million fine in 2015 for allegedly issuing misleading annual financial statements, a claim Stanbic disputed. A year later the bank announced it had reached an “acceptable settlement” with the regulator.</p>
<p>Nigeria is particularly vulnerable to sudden shocks in its foreign currency reserves because of its dependence on a single commodity – oil.</p>
<p>Its foreign exchange regime was established to control the level of currency flows in and out of the country, partly so it has enough reserves to buy vital imports such as manufactured goods, food and medicines.</p>
<p>To manage this risk, Nigeria’s central bank operates a capital control system, under which foreign investors can bring capital into the country via any authorised commercial bank.</p>
<p>The commercial banks are required under Nigerian law to check the inflow is a legitimate investment (in practice this means checking four or five supporting documents) before issuing the investor with a Certificate of Capital Importation (CCI) showing the date and value of the conversion into naira.</p>
<p>By law, the banks must not only issue the CCI within 24 hours of receipt of the foreign inflow, but also declare it to the Central Bank within 48 hours.</p>
<p>This provides the central bank with prompt data by which it can manage its currency reserves.</p>
<p>Importantly, a validly issued CCI later acts as a pass for the investor to repatriate any profits and dividends, subject to paying tax. By law, banks also have to declare all outgoing repatriations to the central bank.</p>
<p>According to the report, the auditors examined more than 350 CCIs issued to MTN between 2001 and 2015 by the banks.</p>
<p>Their findings suggest the scale of the paperwork irregularities over the years was widespread. Some of the alleged breaches cited by the audit report include:</p>
<ul>
<li>Declarations that do not match inflows. When MTN first invested in Nigeria in 2001, they imported $269-million via Standard Chartered to pay for their licence fee.<br />
A year later, they imported a further tranche of $25,4-million for working capital and shareholder loans. In both cases, the report says that Standard Chartered issued MTN with CCIs for lesser sums, leaving a total $7,2-million in inflows undeclared. “Standard Chartered did not and has yet to explain” the difference, reads the report.</li>
</ul>
<ul>
<li>No evidence of capital inflows. For instance, the auditors were unable to obtain “verifiable evidence” from Standard Chartered that MTN had in fact imported a further total of $73,1-million of foreign capital inflows for which it had been issued with CCIs.</li>
</ul>
<ul>
<li>Late declarations. In the case of Stanbic IBTC, it allegedly issued 185 out of a total 225 CCIs (82%) outside the stipulated 24 hours. According to the whistleblower, some of Standard Chartered’s declarations were allegedly filed more than five years late.</li>
</ul>
<ul>
<li>Stanbic issued a total of 225 CCIs to MTN but allegedly reported only 13 of these to the central bank. The aggregate amount of capital imported with these allegedly undeclared CCIs totals $947-million.</li>
</ul>
<ul>
<li>Citibank allegedly transferred a number of CCIs to Standard Chartered to use without obtaining prior approval from the central bank, and then allegedly &#8220;repeatedly used&#8221; some of them itself to remit a further $1,77bn to MTN offshore.</li>
</ul>
<ul>
<li>Standard Chartered allegedly “falsely made … remittances” to MTN shareholders of dividend payments totalling nearly $1,5-billion without central bank approval.</li>
</ul>
<p>Questioned about the report by <em>Finance Uncovered</em>, a spokesperson for Stanbic IBTC said it had received no “formal communication” from the Nigerian government about the investigation and therefore could not comment.</p>
<p>Standard Chartered and Citibank Nigeria declined to comment citing the ongoing nature of the investigation.</p>
<p>The audit has also raised questions about the regulatory role of the central bank itself. The whistleblower suggested its officials had exacerbated the situation with “lax or accommodating monitoring”.</p>
<p>This echoes the findings of a separate investigation by the Nigeria’s upper house of representatives, the Senate, completed late last year.</p>
<p>The Senate report, which focused on MTN and has not been made public, reportedly “condemned” the central bank for “granting extensions and exemptions, which became prone to abuses”.</p>
<p>It also reportedly cleared MTN of any wrongdoing. MTN has previously said the allegations were “completely unfounded and without any merit”.</p>
<p>It told <em>Finance Uncovered</em>: “MTN has the greatest respect for the countries within which it operates and remains unflinchingly committed to conducting its business within the parameters of all pertinent local and international laws.”</p>
<p>It is understood that the central bank has set up a committee which is still considering the report, and the question of criminal charges remains before the attorney-general.</p>
<p>There is some frustration that the government has apparently not yet acted on or responded to the report’s recommendations.</p>
<p>Highly-placed officials in the attorney-general’s office confirmed that an investigation was ongoing but declined to comment further.</p>
<p>The central bank did not respond to written questions.</p>
<p>The Lagos law firm which conducted the audit also declined to comment because it had “confidentiality obligations” to its client, the attorney-general.</p>
<ul>
<li><em>Emmanuel Mayah is the founding editor of Satellite Times (Nigeria)</em></li>
</ul>
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		<entry>
		<author>
			<name>Name Surname</name>
					</author>
		<title type="html"><![CDATA[Ace&#8217;s ally left behind large, unexplained wealth]]></title>
		<link rel="alternate" type="text/html" href="https://amabhungane.agletonline.co.za/stories/aces-ally-left-behind-large-unexplained-wealth/" />
		<id>https://amabhungane.agletonline.co.za/stories/aces-ally-left-behind-large-unexplained-wealth/</id>
		<updated>2018-03-28T21:43:50Z</updated>
		<published>2018-03-10T00:00:00Z</published>
		<category scheme="https://amabhungane.agletonline.co.za" term="Homepage Stories" />		<summary type="html"><![CDATA[<p>A top Free State official had over R25-million in properties when he died.</p>
<p>The post <a rel="nofollow" href="https://amabhungane.agletonline.co.za/stories/aces-ally-left-behind-large-unexplained-wealth/">Ace&#8217;s ally left behind large, unexplained wealth</a> appeared first on <a rel="nofollow" href="https://amabhungane.agletonline.co.za">amaBhungane</a>.</p>
]]></summary>
		<content type="html" xml:base="https://amabhungane.agletonline.co.za/stories/aces-ally-left-behind-large-unexplained-wealth/"><![CDATA[<p></a></li>
</ul>
<p>	Sandile Msibi – the Free State official who allegedly took bribes and plundered the provincial police, roads and transport department he headed – left a handsome fortune when he died in December.</p>
<p>	Msibi was a close ally of Free State premier and ANC secretary-general Ace Magashule and collected property for which he paid almost R25-million.</p>
<p>	Property searches by amaBhungane found that the Msibi Family Trust owns three farms bought for more than R10-million; three properties in Three Rivers, near Vereeniging, bought for more than R9-million together; two flats in Bloemfontein; and five properties in Parys bought for R200,000 each.</p>
<p>	The shopping spree started in November 2011, after Msibi was appointed head of the roads department, which has an annual budget of a billion rands. He bought a R1.7-million farm four days after his appointment.</p>
<p>	The Msibi trust was registered in 2010. By 2012 it owned properties bought at about R2.7-million.</p>
<p>But it was in 2015 that his portfolio really took off. In that year alone, he bought four properties worth a total of R13-million. His properties in the trust are worth nearly R25-million.</p>
<p>	The property searches revealed that most of the properties are fully paid up and not encumbered by bonds. </p>
<p style="text-align: center;"><img src="https://cs.mg.co.za/content/images/2018/03/10/cA63OOrtRMO9z4voncYU_SandileMsibipropertyempire.jpg" style="width: 409px;" /></p>
<p>A series of investigative reports by amaBhungane about Msibi have turned a harsh spotlight on his alleged misuse of state resources while he headed the department.</p>
<p>	Msibi was sent questions to explain his source of wealth and other allegations in October last year. He confirmed receipt but he never responded.</p>
<p>	In March last year <a href="http://amabhungane.co.za/article/2017-03-07-jobs-for-pals-in-the-free-state-ace-magashules-playground" target="_blank">amaBhungane reported</a> that his department had irregularly awarded a sweeping, open ended tender to TAD Consultancy and Services, a company headed by Deena Pillay, Magashule’s secretary, while he was the provincial sports MEC in the mid-1990s.</p>
<p>	Critics suggested the “Fusion Centre” contract was emblematic of an informal but entrenched network of businessmen and government officials aligned with Magashule who seemed to survive controversy and prosper under his administration.</p>
<p>	Msibi claimed there was nothing untoward about the contract, the full value of which has remained a closely guarded secret.</p>
<p>	Two months later <a href="http://amabhungane.co.za/article/2017-05-19-free-state-it-staff-transferred-in-favour-of-politically-connected-company" target="_blank">amaBhungane reported</a> that Msibi transferred large numbers of ICT staff from his department, allegedly in breach of labour law, and replaced them with TAD and another company BBTech.</p>
<p>	In August last year <a href="http://amabhungane.co.za/article/2017-08-22-making-free-in-the-free-state" target="_blank">Msibi was embroiled in a conflict of interest scandal </a>when amaBhungane exposed that he had channelled R7-million in legal business for his department between 2013 and 2016 to his personal attorneys, as well as lucrative contracts totalling R1-million in a single year to a firm controlled by a “close friend”.</p>
<p>	Msibi denied any personal relationship with the attorney his department hired, mostly for labour-related issues. But amaBhungane saw personal correspondence that appeared to contradict this.</p>
<p>	There have been allegations that he used the attorneys for “witch-hunts disguised as disciplinary hearings” to purge staff who questioned or resisted him or his allies.</p>
<p>Internal departmental sources said Msibi was assisted by his chief director of corporate services Norman Selai, another controversial figure said to be part of Magashule’s inner circle. Selai was embroiled in a scandal linked to the purchase of overpriced diaries when he was the municipal manager of the Ngwathe municipality in Parys.</p>
<p>	He was suspended and later resigned after a report by the auditor-general, tabled in the Ngwathe council in 2011, found financial irregularities, including assets worth R55-million that could not be accounted for. </p>
<p>Selai was appointed to Msibi’s department in 2012, despite an outcry from opposition parties.</p>
<p>	AmaBhungane has established that Selai was appointed as one of the trustees of Msibi’s family trust. Selai did not respond to emailed questions from amaBhungane.</p>
<p>	Last year amaBhungane reported that the DA in the Free State had accused Msibi of using departmental letter-headed paper to solicit contributions from businesspeople for the ANC.</p>
<p>	Documents amaBhungane obtained show that in 2016 the Hawks opened an inquiry into Msibi. Last year the Hawks denied that an investigation had been launched and refused to confirm the inquiry.</p>
<p>	But a progress report to the head of the Free State Hawks on March 3 2016 reveals that the inquiry was registered under case number 04/02/2016 “as per commercial crime inquiry”; that a request for information on “known people in the Msibi Family Trust was submitted and the report is awaited”; and that Msibi’s family was being profiled.</p>
<p>	The document refers to a bribe allegedly being solicited in Three Rivers in August 2013 and asks for information on “the mistress”, who is named, saying “cash was deposited to her frequently”.</p>
<p>	AmaBhungane was unable to gather more information on this.</p>
<p>	Msibi and Magashule were very close, although Tiisetso Makhele, the premier’s spokesperson, said in November 2016 that their relationship was “cordial and professional” and not personal.</p>
<p>	Magashule appointed Msibi after the latter was forced out as municipal manager of the Mangaung council amid claims of corruption and maladministration.</p>
<p>	<em>City Press</em> reported that Magashule made the bizarre claim at Msibi’s funeral in December that his former head of department had been “ruthlessly poisoned by heartless people” and that before his death, he (Magashule) had asked then president Jacob Zuma to send him to Russia for medical treatment.</p>
<p>	“We said president [Zuma], we have a friend; that this man has been poisoned. Can we please take him to Russia? There are others who have gone to Russia and come back alive,” Magashule said.</p>
<p>	Magashule described Msibi as “the best [head of department] in the history of the administration” and “a true revolutionary who was both loved and hated for championing radical economic transformation”.</p>
<p>	He blamed white monopoly capital for hunting down Msibi and his associates.</p>
<p>	“He was brave to stand against white supremacy and purged most of the white staff from the old administration who had overstayed their welcome,” Magashule told mourners. </p>
<p>&#8220;He diverted tenders away from white-owned firms to benefit blacks and fired workers he deemed lazy or entitled.”</p>
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