The case against Johann Rupert & 16 others on theft of R26 billion from SARB

As part of the many interactions and direct actions that Black First Land First (BLF) had been engaged in against the crimes of white capital since its inception, on 16 November 2016 the movement opened a case with the South African Police Services (SAPS) against Johann Rupert and 16 others who were involved in the theft of R26 billion from SARB as suggested in CIEX and or the Heath investigation. BLF has also requested that the case be looked into by the HAWKS. The following is an extract of the founding statement of the National Convener of BLF, Andile Mngxitama, which was submitted in support of the case against Johann Rupert & 18 others. 

In 1997, CIEX a private UK based investigations company was commissioned by the SA government to investigate apartheid era crime and corruption. The Ciex report submitted to former President Thabo Mbeki (at or about the end of 1997/beginning of 1998) suggested that billions were stolen by white capital of which R26 billion is recoverable immediately.

To this end the following extract from the CIEX report is instructive:

“Potential profitability of the operation is illustrated by the following amounts which Ciex has to date identified and provided Government with the opportunity to recover:

R3.2bn from Absa
R3bn to R6bn from Sanlam and Rembrandt
Up to R5.5bn from Aerospatiale/Daimler-Chrysler”
Furthermore, “Ciex suggests opportunities for huge cash recoveries” in respect of ARMSCOR’s liability of R14.4 billion.

Apartheid leaders looted the R26 billion from the SARB. Subsequently and in August 2011 the Public Protector, Adv. Thuli Madonsela, indicated that she would conduct investigations into inter alia the matter of the stolen R26 billion.

Two credible investigations (CIEX and Heath) suggest criminal conduct on the part of the under-mentioned persons and entities and in this regard the possibility of recovering the stolen billions. Despite this the Public Protector has done nothing about it and has recently, after previously undertaking to finalize the investigation and report, refused to do so. Another important point is that Thabo Mbeki who was Deputy President of RSA from 1994 to 1999 and President from 1999 to 2008, in the first place, simply put the Ciex report under the table. In this context the following perpetrators involved in the theft of the R26 billion as suggested in CIEX and or the Heath investigation should be made to account for their wrongdoings:

The following perpetrators involved in the theft of the R26 billion as suggested in CIEX and or the Heath investigation should be made to account for their wrongdoings:

1. ARMSCOR

The liability of ARMSCOR is R14.4bn and in this regard the CIEX investigation into the dealings of ARMSCOR make very pertinent revelations. To this end  the following extract from the CIEX report to the South African government is instructive:

“* Armscor

At the beginning of 1999 Ciex was encouraged by SASS to support an investigation ordered by the President into Armscor transactions. Ciex has identified:

The main bank accounts through which commission payments were made by Armscor on arms deals from 1972 onwards.
Evidence of payments of $20m per month through bank accounts in Luxembourg and elsewhere, controlled by the Armscor unit in the Paris Embassy. Payments continued at this rate from 1985-I995, reaching a sum far in excess of the cost of equipment ordered.
Potential undisclosed liabilities to Government through use of the Armscor pension fund to support a US$200 million credit for arms deals.
Witnesses offering evidence of major misappropriation of public money by senior Armscor officials.
Information available to Ciex suggests opportunities for huge cash recoveries and also potential liabilities of which government is unaware.”

The basic liability of ARMSCOR in the amount of R14.4 billion must be updated to its current value with the required rate of interest and recovered from this institution. ARMSCOR and all those who benefited from the R14.4 billion corruption must be held both criminally and civilly liable.

2.  SANLAM AND REMBRANDT

The liability in this regard is: Sanlam – R3.2bn, and; Rembrandt – R2.8bn

The Ciex Report  findings were, inter alia, that Sanlam and Rembrandt (major investors in Bankorp) are liable to pay R3 billion to R6 billion. Sanlam is reported by Ciex to be liable for payment of R3.2bn (same amount as ABSA). This suggests that the balance of up to R2.8bn is owing and payable by Rembrandt. These amounts must be updated to its current value with the required rate of interest and recovered from both these institutions. More specifically, the Heath decision on the illegality of the Absa ‘lifeboat” subventions made by SARB  provides the opportunity to obtain further recourse  against Sanlam and Rembrandt as Absa’s principal shareholders for the recovery of the extent to which these shareholders have been enhanced  – as a result of ABSA’s “lifeboat” subventions.

Absa purchased  Bankorp (which had been enhanced by the lifeboat given to ABSA) in 1992 from Sanlam for  R1.1 billion (in the form of ABSA shares). To this end Judge Heath stated in November 1999 that the ‘lifeboat’ value was factored in the determination of the purchase price of Bankorp’s shares. The value of Sanlam’s steak in Absa via its shares has up until Ciex’ report increased four times  to R3.8billion.

3. Aero-spatiale/Daimler-Chrysler

The criminal and civil liability is for an amount up to R5.5 billion in respect of Aero-spatiale/Daimler-Chrysler.

4. ABSA.

ABSA’s liability is R3.2bn

The Heath enquiry demonstrates that Absa benefitted from the illegal “lifeboat” gifts. To this end Heath found that an amount of  R3.2bn is payable by ABSA. The following abstract from the CIEX report serves to support the certainty of recovery from ABSA in this regard:

“Absa is able to pay, Heath has ruled that Absa is liable to pay; the following notes suggest a strategy for obtaining ‘voluntary’ repayment from Absa.

If Absa ‘volunteers’ repayment, in an agreed schedule which is evidentlyconsistent with the bank’s ability to pay, there can be no question of risk to the bank itself and the whole (entirely spurious) idea of systemic risk also fallsaway.”

ABSA’s liability must be updated to its current value with the required rate of interest and recovered.

5.  Minister of Finance,  Barend Du Plessis, (who was in office as Minister of Finance from 1984–1992).

Criminal charges
– Fraud
– embezzlement
– corruption

Civil claims to follow
– recovery of all monies illegally approved as lifeboat subventions by him,
– reparations arising from his commission of criminal anti people offences (fraud, embezzlement and corruption)

The “lifeboat” loans that took place from 1985 to 1995 – which involved numerous secret Reserve Bank loans to Bankorp which in turn was later purchased by Absa was approved by the then Minister of Finance,  Barend Du Plessis. As Minister of Finance, he approved the various illegal subventions while his brother was at that time on the board of directors of a huge subsidiary of Bankorp/Sanlam.  He must be prosecuted to the full extent of the law not limited to criminal prosecution relating to fraud, embezzlement and corruption as well as civil proceedings relating to the recovery of all monies illegally approved as the lifeboat subventions by him. Further reparations must be sought regarding the criminal liability of Barend Du Plessis which indicates his anti people crimes including fraud, embezzlement, corruption as abusing his position as Public Representative of the people.

6.   Attie Du Plessis.

Criminal charges
– Fraud
– breaching the Company’s Act
– embezzlement
– corruption
– offences relating to insider trading

Criminal or Civil Court order
– declaration of unfitness to serve as Director or Manager of Bankorp/Sanlam  and by extension all banking institutions with retrospective effect

Civil claims
– recovery of money to the extent that he has benefited from the illegal lifeboat subventions,
– reparations arising from his commission of criminal anti people offences (fraud, embezzlement, corruption)

Attie Du Plessis was a member of the board of directors of a huge subsidiary of Bankorp/Sanlam at the time that the illegal subventions were approved by his brother Barend Du Plessis. He must be criminally prosecuted for inter alia committing fraud, breaching the Company’s Act,  embezzlement and corruption as well as civilly prosecuted for the recovery of all monies to which he has been unduly enriched as a result of the illegal lifeboat subventions approved by his brother. Heath’s finding that huge profits were made personally by inter alia the directors of the ABSA (by implication this includes Attie Du Plessis) from “insider trading” and by “using their knowledge of the ‘lifeboat’ secret subvention”, is instructive here.  Moreover he must pay back the money to the extent that he has been enriched updated to current market value. He must be declared unfit to serve as Manager and Director  of Bankorp/Sanlam  and by extension all banking institutions  with retrospective effect. Further reparations must be sought regarding the criminal liability of Attie Du Plessis which indicates his anti people crimes including fraud, embezzlement and corruption.

7. Christian Lodewyk Stals (SARB Governor from 8 August 1989 to 7 August 1999)

Criminal charges
– Fraud
– breaching the Company’s Act
– embezzlement
– corruption
– theft of SARB assets
– offences relating to insider trading

Criminal or Civil Court order
– declaration of unfitness to serve as Director or Manager of Bankorp/Sanlam  and by extension all banking institutions with retrospective effect

Civil claims
– recovery of all money arising from the illegal lifeboat subventions that he had illegally approved and benefited from
– recovery of SARB assets built up by him and not disclosed to the Minister of Finance
– reparations arising from his commission of criminal anti people offences (fraud, embezzlement, corruption, breaching the Company’s Act, offences relating to insider trading)

The illegal subventions to ABSA were  organised by Christian Lodewyk Stals in collaboration with Marinus Daling, Danie Cronje as well as with Anton and Johan Rupert. Christian Lodewyk Stals must be prosecuted to the full extent of the law not limited to criminal prosecution relating to fraud, embezzlement and corruption as well as civil proceedings relating to the recovery of all monies illegally approved as the lifeboat subventions by him. He must be declared unfit to serve as Governor of SARB with retrospective effect. Further reparations must be sought regarding the criminal liability of Stals which indicates his anti people crimes including fraud, embezzlement and corruption.

Moreover on 2 December 1993 the Secretary of the SARB disclosed  (in a “private meeting with senior Bank of England officials”) that he had “discovered” that  SARB had huge assets, which Stals had been building up built up over many years which had not been declared to the Ministry of Finance. Both civil and criminal proceedings must now follow against Stals in respect hereof. Also as the duly authorized agent of SARB at the relevant time, Stals as Govenor should be held criminally and civilly liable in his capacity as such. The criminal offence in this regard is theft of SARB assets.

8.  Marinus Daling (Deputy Chair of Sanlam Limited from 1993 and later from 1997 Chair of Sanlam Limited).

Civil claims against the deceased estate of Marinus Daling alternatively his beneficiaries
– recovery of all money arising from the illegal lifeboat subventions that he had illegally organized (in collaboration with Christian Lodewyk Stals)  and to the extent that his estate alternatively his beneficiaries had been unjustly enriched
– reparations arising from his commission of criminal anti people offences (fraud, embezzlement, corruption, breaching the Company’s Act, offences relating to insider trading)

Civil Court order
–  Marinus Daling must be declared posthumouslyi unfit to serve as Manager and Director  of Sanlam  and by extension all banking institutions with retrospective effect.

For context see entries above under Christian Lodewyk Stals for Marinus Daling’s part in organsing of the illegal subventions.   The liability of Marinus Daling arises from his collaboration with Christian Lodewyk Stals in organizing the illegal subventions to ABSA and his unjust enrichment arising from such dealings. Marinus Daling  passed away on 1 February 2002 and legal recourse against his estate for the amount to which he had unduly benefitted as a result of the illegal lifeboat subventions that he had organised with others for ABSA must be sought. Moreover his estate alternatively the beneficiaries of his “subvention enhanced” estate must be made pay back the money to the extent that it/they have been enriched updated to current market value. Further reparations must be sought regarding the criminal liability of Marinus Daling regarding his anti people crimes including fraud, embezzlement and corruption. Heath’s finding that huge profits were made personally by inter alia the directors of the ABSA (by implication this includes Marinus Daling) from “insider trading” and by “using their knowledge of the ‘lifeboat’ secret subvention”, is instructive here. He must be declared posthumouslyi unfit to serve as Manager and Director  of Sanlam  and by extension all banking institutions  with retrospective effect.

9.  Danie Cronje (Deputy Chief Executive and Group Chief Executive of ABSA from 1987 to 1997).

Criminal charges
– Fraud,
– embezzlement
– corruption
– breaching the Company’s Act
– offences relating to insider trading

Criminal or Civil Court order:
– declaration of unfitness to serve as Director or Manager of ABSA or any other banking or financial institution

Civil claims
– recovery of money to the extent that he has benefited from the illegal lifeboat subventions
– reparations arising from his commission of criminal anti people offences (fraud, embezzlement, corruption, breaching the Company’s Act, offences relating to insider trading)

Particulars

Danie Cronje’s  part in organsing of the illegal subventions is indicated above under the entries for Christian Lodewyk Stals.  The liability of Danie Cronje arises from his collaboration with Christian Lodewyk Stals, Marinus Daling, Danie Cronje as well as with Anton and Johann Rupert in organizing the said illegal subventions to ABSA and his unjust enrichment arising from such dealings. Heath found that huge profits were made personally by managers and directors (by implication this includes Danie Cronje) from “insider trading” and by “using their knowledge of the ‘lifeboat’ secret subvention”.   He has accordingly inter alia breached the Company’s Act and committed fraud, embezzlement and corruption. To this end  he should be criminally prosecuted. Moreover he must pay back the money to the extent that he has been enriched updated to current market value including further reparations for the aforesaid anti people crimes. He must be declared unfit to serve as Manager and Director  of ABSA  and by extension all banking institutions with retrospective effect. Further reparations must be sought regarding the criminal liability of Daniel Cronje which indicates his anti people crimes including fraud, embezzlement and corruption.

10. Anton Rupert  (founder and owner of Rembrandt)

Civil claims
– recovery of money to the extent that he and his deceased estate has benefited from the illegal lifeboat subventions
– reparations arising from his and others commission of criminal anti people offences (Fraud, embezzlement, corruption, breaching the Company’s Act and offences relating to insider trading)

The entries above under Christian Lodewyk Stals indicates Anton Rupert’s part in  organsing the illegal subventions. The liability of Anton Rupert arises from his collaboration with Christian Lodewyk Stals in organizing the said illegal subventions to ABSA and his unjust enrichment relating thereto. Anton Rupert passed away on 18 January 2006 and legal recourse against his estate for the amount to which he had unduly benefitted as a result of the illegal lifeboat subventions that he had organised with others for ABSA must be sought. Moreover his estate alternatively the beneficiaries (including Johan Rupert) of his “subvention enhanced” estate must be made to pay back the money to the extent that it/they have been enriched updated to current market value. Heath’s finding that huge profits were made personally by inter alia the directors of the ABSA (by implication this includes Anton Rupert) from “insider trading” and by “using their knowledge of the ‘lifeboat’ secret subvention”, is instructive here. Further reparations must be sought regarding the criminal liability of Anton Rupert regarding his anti people crimes including fraud, embezzlement and corruption.

11. Johan Rupert (Vice Chair of Rembrandt Group from 1989 to 2000).

Criminal charges
– Fraud
– embezzlement
– corruption
– offences relating to insider trading
– breaching the Company’s Act

Criminal or Civil Court order

– declaration of unfitness to serve as Director or Manager of any  banking or financial institution

Civil claim:
– Recovery of money to the extent that he has benefited from the illegal lifeboat subventions including from the estate of Anton Rupert
– Reparations arising from his commission of criminal anti people offences (fraud, embezzlement, corruption, breach of the Company’s Act, offences relating to insider trading).

His current business address is 29 Magnolia St, Heldervlei, Somerset West, Stellenbosch, 7130. The liability of Johann Rupert arises from his collaboration with Christian Lodewyk Stals in organizing the said illegal subventions to ABSA and his unjust enrichment regarding this. He was ranked the richest South African by Forbes in 2014. See entries above under Christian Lodewyk Stals for his part in organsing the illegal subventions in collaboration with Christian Lodewyk Stals, Marinus Daling, Danie Cronje as well as with Anton Rupert. He must be prosecuted to the full extent of the law not limited to criminal prosecution relating to fraud, embezzlement, corruption and insider trading. In addition civil recourse relating to the recovery of all monies concerning the illegal lifeboat subventions that he had organised with others for ABSA must be sought. Heath’s finding that huge profits were made personally by inter alia the directors of the ABSA (by implication this includes Johan Rupert) from “insider trading” and by “using their knowledge of the ‘lifeboat’ secret subvention”, is instructive here. Further reparations must be sought regarding the criminal liability of Johan Rupert regarding his anti people crimes as indicated above.  

12. James Havelock Cross (Deputy Governor of SARB from 1997 to 1999 and Senior Deputy Governor since 1999).  

Criminal charges
– Fraud
– embezzlement
– corruption

Criminal or Civil Court order
– declaration of unfitness to serve as Deputy Governor and Senior Deputy Governor of SARB with retrospective effect

Civil claim:
– Reparations arising from his commission of criminal anti people offences (fraud, embezzlement, corruption)

Ciex reported to SASS (in the middle of 1999) that James Havelock Cross (a close associate of Danie Cronje and Christian Stals) worked with Danie Cronje to defeat any attempt to obtain recovery of the stolen monies.   Basically he worked with Danie Cronje who in turn worked with those who organised the illegal lifeboat subventions (led by SARB Governor, Christian Lodewyk Stals) and he accordingly claimed that the “lifeboat” subventions were routine support mechanisms – notwithstanding evidence to the contrary that was overwhelming. He must be prosecuted to the full extent of the law not limited to criminal prosecution relating to fraud, embezzlement and corruption as well as civil proceedings relating to the recovery of all monies illegally approved as the lifeboat subventions by him. He must be declared unfit to serve as Deputy Governor and Senior Deputy Governor of SARB with retrospective effect. Further reparations must be sought regarding the criminal liability of James Havelock Cross regarding his anti people crimes as indicated above.  

13. Thabo Mbeki and Cabinet Ministers

Criminal charges against Thabo Mbeki, Trevor Manuel, Alexander Erwin and Tito Mboweni
– dereliction of official duties

Each of the Ministers indicated below did nothing while they were presented with evidence by CIEX that money’s were stolen from the people in the form of illegal lifeboat subventions to ABSA:

Dullah Omar (Minister of Justice from 10 May 1994 to 14 June 1999. Died on 13 March 2004)

Trevor Manuel (Minister of Finance from 4 April 1996 to 10 May 2009)  

Alexander Erwin (Minister of Trade and Industry from 1996 to 2004)

Tito Mboweni (Minister of Labour from 1994 to 1998)  

Thabo Mbeki was Deputy President of RSA from 1994 to 1999, and; President from1999 to 2008. He did nothing to facilitate the recovery of monies stolen and the prosecution of the wrongdoers when the CIEX findings were reported to him (as Deputy President) and certain cabinet ministers (including the then Finance Minister Trevor Manuel and former Labour Minister Tito Mboweni) on 29 November 1997 and on 8 January 1998. Furthermore he became President with the full knowledge of the claims of CIEX that the amount of R26bn in question was recoverable by government – but continued to do nothing in respect of recovering the monies stolen and seeing to it that justice was done to the perpetrators of the various wrongdoings. Thabo Mbeki must be made to account for why he did nothing while he was presented with evidence that money’s were stolen from the people in the form of illegal lifeboat subventions to ABSA.

The Ciex findings were apparently discussed on 13 and 25 January 1998 with Ministers of Justice Dullah Omar (Minister of Justice from 10 May 1994 to 14 June 1999),  Finance (Trevor Manuel), Trade and Industry (Alexander Erwin), Labour (Tito Mboweni) as well as Intelligence and with the Ciex team which in turn included “Sir Kit McMahon (former Deputy Governor, Bank of England), Pierre du Toit  (ANC member, Senior Partner  of Arthur Andersen)  and Eberhard Bertelsmann SC (Past President of the Pretoria Bar)”.

The ministers as indicated above, having received and discussed the reports, also did nothing in respect of recovering the monies stolen and seeing to it that justice was done to the perpetrators of the various wrongdoings. In so doing these ministers acted inter alia in  concert with or as accomplices to the wrongdoings committed by Thabo Mbeki.  Each of the Ministers indicated below must be made to account for why they each did nothing while they were presented with evidence by CIEX that money’s were stolen from the people in the form of illegal lifeboat subventions to ABSA:

Dullah Omar (Minister of Justice from 10 May 1994 to 14 June 1999),  

Trevor Manuel (Minister of Finance from 4 April 1996 to 10 May 2009)  

Alexander Erwin (Minister of Trade and Industry from 1996 to 2004)

Tito Mboweni (Minister of Labour from 1994 to 1998)  

The fact that the above Ministers may have been led or ordered by Thabo Mbeki to do nothing is no excuse as it is trite that Ministers have a duty to disobey manifestly unlawful orders. The conduct of Thabo Mbeki as well as the above Ministers amounts to dereliction of duties on each of their parts.

13 January 2017

Issued By Black First Land First
National Secretariat for Political Education

Contact details 

Black First Land First Email:[email protected]
Facebook: Black First Land First | Twitter: @black1stland1st
Website: www.blf.org.za
National Secretary for Political Education: Neo Mokatsanyane
Cell number: 0814167288
Email: [email protected]

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