Port Elizabeth businessman and ANC funder Fareed Fakir allegedly boasted about how he bankrolled a local politician and officials, paying millions of rands in cash, property and a Mercedes Benz ML at the height of the looting frenzy of the Nelson Mandela Bay bus system.
The allegations are contained in a statement made by attorney David le Roux, one of the main figures in what appears to have been a syndicate that plundered the metro’s Integrated Public Transport System (IPTS).
Le Roux alleges in the statement that Fakir made cash payments to then ANC regional secretary Zandisile Qupe, bought him the luxury car and funded his family holiday to Cape Town in 2013.
Qupe is the party provincial executive committee member – also heading its provincial election campaign.
Le Roux alleges further that Fakir made regular cash payments to then IPTS head Mhleli Tshamase, bought a wheelchair for Tshamase’s father and rented a truck for him to take the wheelchair and building material to his village in Matatiele.
“Fakir told me ‘you are lucky you do not have to look after him [Tshamase], he eats cash’,” Le Roux said in his statement.
He wrote that Fakir once showed him an SMS from Tshamase asking for a “50pager document”.
“Fakir explained that was how Adv Tshamase would request money from him and Fakir said he would arrange R50,000 to be given to Adv Tshamase.”
He alleged that Fakir gave Tshamase R50,000 for his father’s funeral costs.
Le Roux first made the statement about two years ago when trying to cut a deal with investigators that would have seen him escape prosecution.
Le Roux was turned down and thus never signed the document.
Asked by The Herald at the time if he had in fact written the 42-page statement, Le Roux turned to the last page and pointed out that it was never signed and refused to comment further.
However, that statement is almost identical to a response he wrote to the Legal Practice Council, which is investigating him for misconduct over his involvement with the IPTS.
That response, which emerged last week, is signed by Le Roux.
Both documents detail how Le Roux became intricately involved with the complex looting scheme by helping his friend Tshamase draft official documents for the project.
At one point, according to Le Roux, Tshamase asked him to peruse a confidential document which was to be sent to the city’s bid adjudication committee motivating for a deviation from normal tender processes and proposing a number of companies to be appointed as consultants for the IPTS.
Le Roux’s firm, Le Roux Inc, was one of them.
The statement detailed how Fakir’s companies were handpicked to provide various services for the project and how work and invoices were dubiously and speedily approved to facilitate payments.
Some of Fakir’s firms were selected as the subcontractors with claims that they beat two quotes from “competitors” – which appeared to be bogus.
Invoices from Fakir’s firm would be submitted to Le Roux, who would add a 10% processing fee.
It was through Fakir that Le Roux said he first heard that his firm would be used as consultant by the municipality.
“Fakir told me that the municipality had decided that Jarami Projects CC must be appointed as a sub-consultant to Le Roux Inc.
“This was endorsed by Zandisile Qupe.”
Based on municipal documents previously seen by The Herald, Fakir’s companies were paid at least R28m from the IPTS.
In turn, Fakir had to ensure some politicians’ pockets were constantly filled and money was allegedly donated to the ANC for its 2014 election campaign.
“Fakir utilised Qupe to exert pressure on Adv Tshamase, and told Tshamase on more than one occasion in my presence that Fakir had to report to Qupe regarding progress with appointments and payment of invoices.
“Fakir showed me a number of SMS messages between himself, Qupe, and Adv Tshamase about implementing decisions, but no messages were ever forwarded to me.”
In his statement, Le Roux listed 13 cellphone numbers which he said were used by Fakir.
“In my presence, Fakir would regularly swop sim cards to make calls or send messages,” Le Roux wrote.
The Herald checked the numbers and found 10 of the 13 were registered to Fakir.
“Fakir informed me that they were very careful about communication and nothing was ever in writing,” Le Roux wrote.
“Fakir told me that the lion’s share of his funds was paid in cash to the ANC, Qupe and to other role players to ‘keep them happy’.
“He told me how they would clean out the banks in Port Elizabeth in order to draw cash for payments.
“He even said that at a Rink Street branch, they would go straight to the vault to withdraw cash, it was such large amounts.
“Fakir told me that he paid Qupe cash from the proceeds generated by Jarami Projects and Erastyle [both companies owned by Fakir].
“Fakir told me about a specific payment of R1m cash to Qupe.
“After receiving the cash, Qupe had told him that he had ‘lost’ the money and Fakir had to pay him a further R1m in cash.
“Fakir joked about what happened and said it was still worth it.”
Le Roux wrote that Fakir had bought a R1.9m property in Humewood and that the purchase price was paid to Le Roux Inc via an EFT (electronic funds transfer) payment...