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MASSIVE BENEFITS AVAILABLE TO THE RSA

THE CONTINUING BENEFITS OF THE CIEX REPORTS

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

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2
Failure to Pursue Apartheid Plunder 1997- 2014

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

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