1. In 1997, Deputy President Mbeki secretly hired CIEX Ltd to investigate theft from the South African state by the previous apartheid regime.
2. CIEX's first investigation found that ABSA bank directors stole 3.2 billion rands through conspiracy with Reserve Bank governors.
3. A committee of ministers accepted CIEX's findings but President Mandela ruled no action be taken for political reasons, ignoring the opportunity to recover billions for South Africans.
1. In 1997, Deputy President Mbeki secretly hired CIEX Ltd to investigate theft from the South African state by the previous apartheid regime.
2. CIEX's first investigation found that ABSA bank directors stole 3.2 billion rands through conspiracy with Reserve Bank governors.
3. A committee of ministers accepted CIEX's findings but President Mandela ruled no action be taken for political reasons, ignoring the opportunity to recover billions for South Africans.
1. In 1997, Deputy President Mbeki secretly hired CIEX Ltd to investigate theft from the South African state by the previous apartheid regime.
2. CIEX's first investigation found that ABSA bank directors stole 3.2 billion rands through conspiracy with Reserve Bank governors.
3. A committee of ministers accepted CIEX's findings but President Mandela ruled no action be taken for political reasons, ignoring the opportunity to recover billions for South Africans.
1. In 1997, Deputy President Mbeki secretly hired CIEX Ltd to investigate theft from the South African state by the previous apartheid regime.
2. CIEX's first investigation found that ABSA bank directors stole 3.2 billion rands through conspiracy with Reserve Bank governors.
3. A committee of ministers accepted CIEX's findings but President Mandela ruled no action be taken for political reasons, ignoring the opportunity to recover billions for South Africans.
In October 1997 Deputy President Thabo Mbeki secretly employed CIEX Ltd of London to investigate instances of theft from the State by adherents of the former apartheid regime.
The firSt subject for investigation, in what was agreed to be a continuing
programme of enquiries, was the theft of 3.2 billion rands through a conspiracy between the then Governor and directors of the Reserve Bank and the management and directors of ABSA and the bank's principal shareholders.
The Government's commitment to this investigation was evidenced by
allocation of a budget of one million British pounds to cover its expenses.
In January 1998 a Committee of six South African Cabinet Ministers, under the cbainnanship of Deputy President Mbeki, accepted the conclusions of the CIEX investigation as to the fraud and theft which had been perpetrated; the criminal responsibility of those principally concerned; the benefits to shareholders which had accrued to shareholders of ABSA both directly and ( \ through share-value enhancement and tax-avoidance; and final1y the process by e\ which recovery could be obtained from ABSA by the RSA Government without damage or risk to either the bank or the South African banking sector.
Despite the enthusiasm of the majority of the ministerial group for pursuing the matter, President Mandela ruled for political considerations that no action should be taken. Later public enquiries into the matter by Judges Heath and Davis confirmed the illegality of what bad taken place, but under political pressure they each confumed the decision that no action would be taken.
1 The considerations which motivated President Mandela and his successors have long since ceased to be relevant. Nevertheless, successive administrations, as well as successive Governors of the South African Reserve Bank, though aware of the situation, have ignored the opportunity to recover the stolen money for the people of South Africa and the much larger sums which represent its subsequent investment.
Litigation or negotiation by the South African Government on the basis
of the CIEX Reports could substantiate an immediate claim to recover very many Billions of rands.
Litigation or negotiation on the basis of the further benefits to ABSA
shareholders identified by CIEX could substantiate claims to recover ( 1 many more Billions of rands ( A decision by RSA Government to pursue other areas of criminality identified by ClEX in separate reporting would, if followed up with proper commitment, yield very large further recoveries to the RSA Government.
The South African economy was effectively raped by the outgoing apartheid regim~ The effects of that persist. In the early days of ANC Government there was, briefly, some enthusiasm for redressing this situation. The opportunity is still there. Failure to pursue it will be hard to defend.
Index: 1. 1997 RSA Government's Agreement with Ciex 2. Context in which the same was made involving whom 3. Terms and reliance that applied to the Agreement 4. Why implementation was deferred and why now opportune
The following outliM dmwnstrldl!s tlull successive South Africlm administrations
until todlly have ignored or rt!jecWI the opportunity to recover proceeds ofthtift and sed reparations from Europl!lln and other Institutions IUUl governments which benejitudjiMncially tmd substllndlllly from their supportfor Aptuthe/4
8.97 Deputy President Mbeki informed by UK intelligence consultancy CIEX Ltd of extensive pattern of theft of state assets facilitated by the previous government and the opportunity to recover billions of rands from this and in reparations from European institutions involved I,. ) CIEX llrchive: note ofmeeting ( 26.8.97 Mbeki engages CIEX to investigate. Recovery from the ABSA 'Lifeboat' conspiracy, identified by CIEX, is to be the first task with a programme of others to follow CIEX archive: note ofmeding
6.10.97 CIEX contract is signed by SASS Director-General Billy Masethla on behalf of the Government. CIEX to be paid operational expenses to carry out investigations and rewarded by commission on recoveries CIEX archive: contrllCt
16.1.98 CIEX presents report detailing methodology of fraud in the ABSA conspiracy, and confinning criminality, to a committee chaired by Deputy President Mbeki of five Ministers (Finance, Justice, Trade and Industry, Labour, and lnteJiigence) CIEX archive: note ofmuting 25.1.98 CIEX presents further infonnation and advice as requested by Ministers, and a programme for recovering not less than 3.2 billion rands from ABSA, without risk to either the bank or the banking sector. Supporting advice delivered in person by a distinguished group of experts including former Deputy Governor of the Bank of England Sir Kit McMahon, Eberhard Bertelsmann SC, now Mr Justice Bertelsmann, and Pierre Du Toit, Senior Partner of Arthur Andersen S.A. and Member of the Katz Commission on Taxation. The viability of the recovery programme is accepted by the ministerial committee and by Deputy President Mbeki. CIEX archive: note ofmeeting 13.98 Continued correspondence between CIEX and Deputy President Mbeki and DG SASS on the modalities of arranging recovery of the stolen 3.2 billion rands and prosecution of the individuals principally responsible, and on other opportunities for recovery CIEX lU'Chive : CIJPY letters 3.98 Concerned for inter-communal relations, and given incorrect and prejudiced advice, President Mandela rules that no action is to be taken with ABSA
4.98 Press reporting from leaked information identities the existence of a secret South African Government report into the ABSA Lifeboat fraud Judge Heath appointed to enquire into the matter. UK and .4 press 4.98-12.98 CIEX secretly supports the Heath enquiry, provides Heath with copies of its reports, e ,. \ ( and liaises with Deputy President and D-G SASS CIEX iU'Chlve: copy memos, reports, letters 12.11.98 Letter from DG SASS fonnally terminating CIEX's first contract, expressing satisfaction with work done and results obtained, and confirming recognition of CIEX's commission entitlements as per contract. CIEX is advised that a new contract may be negotiated after the forthcoming election and that this will provide for collaboration with Heath in pursuing other instances of theft identified by CIEX ClEX archive: CIJPY letter 30.11.98 Letter ftom CIEX to DG SASS listing matters for potential collaboration with Heath ClEX archive: copy Inter 10.99 Completion of Heath's Report confirms CIEX conclusions that the S<H:alled Lifeboat was illegal and the money should be repaid. Under pressure Heath declares that he will not require repayment from ABSA for fear of systemic risk to the banking sector, ( 1 it being noted at the time that l The terms of Heath's commission did not aJiow him to make this decision Heath had no professional competence in the matter; nor could systemic risk conceivably arise from re-payment by instalments over a period of time, as planned by ABSA Heath was not absolved from his duty to report evidence of criminal behaviour by Messrs Stals, Cronje, Atte Du Plessis and others to the prosecuting authorities ABSA bad already made provision to repay 3.2 billion in instalments over four years 13.12.99 FoJJowing a meeting with Dr Chikane, Director General of the Office of the President, to explain further opportunities for recovering large sums in reparations and recoveries a document detailing these entitled CJEX Operations on behalfofthe South African Government, August 1997 -December 1999 is sent by CIEX to Dr Chikane for the attention of President Mbeki CIEX archive: coJIY kltel' IUUi document 15.6.00 Reserve Bank Governor Tito Mboweni appoints a panel of experts under Mr Justice Davis to examine the propriety or otherwise of the Reserve Bank's subvention of ABSA described as a 'Lifeboat'. (Mboweni was formerly one of the Ministers who accepted the conclusions of the CIEX report)
-- er} 3.02 Publication of Davis panel's report confinns illegality but recommends no action Report ofPanel ofExperts 6.3.02 Letter from CIEX CEO Michael Oatley to Governor Mboweni notes Davis's conclusion and offers help in recovery of the 3.2 biiJion rands for which Davis confirms the opportunity C1EX archive: copy h:tter 6.3.02 Letter from Oatley to DG Office of the President with copy of the above, pointing out that CIEX commission on potentially recoverable funds is payable CIEX archive: copy letter 15.4.02 While not denying the opportunity for recovery Mboweni replies that the matter is to be closed without further action, a decision apparently approved by President Mbeki despite his having instigated and encouraged the original enquiry into the fraud.
- 6.06 CIEX tlrchive: copy letter
International group of experts sponsored by Canadian philanthropist John Risley
inherits CIEX archive and legal rights and commences research into apartheid corruption and the responsibility of European and other financial and other institutions. Focus on Annscor operations produces detailed evidence of massive money-laundering and scope for initiating a major reparations programme for South Africa Group tlrchlve 6-12.06 Research by the Risley Group establishes that Richemont S .A~ the world's third- largest luxury goods business~ controlled by Johann Rupert, was funded by proceeds of theft via the 'Lifeboat' conspiracy Group archive 6.06-12.07 Research by the Risley Group establishes that K.BC Banking Group of Belgium and Luxembourg was the sanctions-breaking partner of Armscor. establishing front companies and secret bank accounts all around the world while growing its business as a result of these il1egal activities and laundering billions of dollars on behalf of the Apartheid regime Group archive IUUl apert reports 3.08 RisJey Group sponsors litigation in Brussels against KBC Banking Group Brussels Court record 4.11.08 Meeting between Michael Oa~ey (formerly Chainnan of CIEX Ltd) and ANC President Zwna at which Oatley refers to the foregoing history. the opportunity for making large recoveries for the benefit of South Africa, and the research being done by Risley's team into apartheid corruption. While appreciating President Mandela's reluctance to pursue such matters at a delicate time. ANC President Zuma says that he will not feel similarly inhibited when in office. Group archive 1-11.13 Risley Group sponsors a sustained programme of personal briefings for Ministers and senior members of the ANC ensuring widespread knowledge of the opportunity to achieve major recoveries and reparations for past wrong-doing Group Archive
29.11.13 Efforts to attract the South African Government's attention to the opportunity to obtain very large recoveries and reparations are formalised in international lawyer Dr David Lawson's Jetter setting out proposals for collaboration between the Risley team and the South African Government GI'Oilp archive: copy letter
After The Accord A History of Federal Reserve Open Market Operations, The US Government Securities Market, and Treasury Debt. (Kenneth D. Garbade) (Z-Library)
Mercantile Bank & Trust Co., Ltd., Counter-Defendant-Appellant v. Fidelity and Deposit Company, Etc., Counter-Claimant v. United States of America, Counter and International Energy Corporation, Counter-Defendants, 750 F.2d 838, 11th Cir. (1985)
After The Accord A History of Federal Reserve Open Market Operations, The US Government Securities Market, and Treasury Debt. (Kenneth D. Garbade) (Z-Library)
Mercantile Bank & Trust Co., Ltd., Counter-Defendant-Appellant v. Fidelity and Deposit Company, Etc., Counter-Claimant v. United States of America, Counter and International Energy Corporation, Counter-Defendants, 750 F.2d 838, 11th Cir. (1985)
