Mathews Phosa's explosive new memoir, Witness to Power, released today, details the controversial relationship between the Gupta family and the African National Congress (ANC), offering a firsthand account of the family's attempts to exert influence within the party and government.
The book shines a light on events surrounding the ANC's financial dealings and the alleged attempts by the Guptas to secure preferential treatment and influence political decisions.
Phosa's first encounter with the Gupta brothers – Ajay, Atul, and Rajesh (Tony) – occurred in 2008, shortly after Jacob Zuma's election as ANC president. Zuma, a former uMkhonto weSizwe commander during Phosa's time in exile in Mozambique, introduced Phosa to the family at their luxurious Saxonwold mansion. The meeting, ostensibly to discuss political strategy, quickly shifted to the ANC's pressing financial needs.
Phosa recounts the conversation: "It was no secret that the party was facing some serious financial challenges and that we needed substantial support if we were to change our fortunes before the 2009 elections. Elections are costly operations. and, as with every previous election, cash flow was a concern. The Guptas presented themselves as a wealthy and influential business family from India, with a wide network of contacts in that country."
The Guptas, boasting connections to powerful Indian conglomerates like the Reliance Group, proposed various schemes. They offered to facilitate meetings with potential donors in various countries, including India, an offer Phosa firmly rejected, citing the need to protect Zuma from potential scandals.
"We were in the midst of a complex and politically sensitive process trying to extricate Zuma from the Schabir Shaik scandal and had a duty to protect him from any similar embarrassment. If it emerged that we were being flown around the world for free, it would only add to the ANC’s and Zuma’s sorrows. I firmly told them as much," Phosa writes.
Further alarm bells rang when Tony Gupta suggested opening an overseas bank account for the ANC in Dubai, a proposal Phosa reluctantly agreed to, despite his reservations. A trip to Dubai to open the account, with Tony Gupta, resulted in a disturbing proposition. Over dinner, Tony Gupta allegedly suggested a three-way split of any funds deposited into the account: one-third for the Guptas, one-third for Zuma, and one-third for the ANC. Phosa vehemently rejected this proposal, concerned about the potential damage to Zuma, the ANC, and others.
The Guptas' attempts to influence the ANC didn't end there. A subsequent attempt to remove Phosa's signing authority from the Dubai account, and the later proposal to launch a pro-ANC newspaper, further highlighted their ambition to control the party's narrative and financial resources. The proposed newspaper, which eventually became The New Age, would receive significant funding through government advertisements, a practice Phosa strongly opposed.
He writes, "Essentially, their proposal boiled down to the state financing 47% of the planned newspaper, mostly through government advertisements…I questioned the business model and pointed out the impropriety of using state spending in this way."
Phosa's account includes a striking anecdote from 2010. During a confrontation with Tony Gupta regarding the family's perceived lack of support for the ANC, Gupta claimed, "But we have already made a contribution. We gave Baba R20 million!" referring to Jacob Zuma.
Phosa's response: “I was shocked and told him I was unaware of the donation…but it made me extremely uneasy”.
This incident, along with other revelations in the book, paints a picture of the Guptas' deep penetration into the ANC's inner circle and their willingness to use financial leverage to influence political decisions.
The memoir also touches upon the presence of Brian Molefe, then CEO of the Public Investment Corporation, at the initial meeting with the Guptas. Phosa notes Molefe's familiarity with both the house and the family, a detail that gained further significance with the later findings of the Judicial Commission of Inquiry into Allegations of State Capture, which implicated Molefe in receiving bribes from the Guptas.
Phosa's refusal to participate in the Guptas' schemes resulted in his becoming a target of criticism and vilification in publications controlled by the family, such as The New Age and ANN7. Despite this, Phosa expresses relief at having avoided the Guptas' influence, highlighting the devastating consequences of their actions on the South African populace.
"Millions of people have been further disadvantaged by the money siphoned to the Guptas and others," he concludes.
Witness to Power promises to be a crucial contribution to understanding the state capture era in South Africa, providing a compelling insider perspective on the Guptas' influence and the attempts to counter it.
