The briefings cost the state broadcaster more than R20m, helping keep the Guptas media empire afloat. From Moneyweb.
President Cyril Ramaphosa has ordered the Special Investigating Unit (SIU) to investigate a series of breakfast briefings hosted by the SABC for the benefit of the Gupta family’s TNA Media company, which owned The New Age newspaper.
The Zondo Commission of Inquiry into State Capture labelled contracts between TNA and the SABC as irregular and crafted for the benefit of TNA and the Guptas, not the SABC.
The SIU says in a statement that it has been authorised to investigate allegations of corruption and maladministration at the SABC and TNA, in particular, an agreement between the two to host a number of events styled as ‘The New Age Breakfast Briefings’, which the SABC aired on prime slots.
Some were astonishingly cynical, such as this one, deflecting blame for state capture as far from then-President Jacob Zuma and the Guptas as humanly possible.
The SIU investigation will focus on potential violations of the law and National Treasury guidelines and whether there was unauthorised or irregular spending. It covers the period from 1 January 2011 to 18 October 2024 but may pre-date this period where applicable.
Former SABC Group CEO Lulama Mokhobo testified before the Zondo Commission that the state broadcaster had spent R20.3 million hosting these events, which had commenced without a contract being signed between them. This was later rectified, and a 24-month contract was concluded.
The SABC paid the costs of these events, with TNA collecting the proceeds. The frequency of the briefings—originally bi-monthly—increased as soon as the contract was in place, presumably to increase TNA’s revenue.
In addition to the costs run up by the SABC, TNA was found to have billed state-owned entities (SOEs) and government departments for events where their executives were interviewed. These included Transnet, Eskom, PetroSA, SAA, and the Department of Human Settlements. The SABC seems to have been unaware that TNA was also receiving income from government departments and SOEs featured in these shows.
The Zondo Commission also heard how the Guptas’ TV network ANN7 acquired archival footage worth millions of dollars for a fraction of its value, and no one dared question the deal due to Zuma’s close relationship with the Guptas.
Zuma testified before the Zondo Commission that he had been personally involved in establishing the Gupta media empire, arguing that the media in SA was biased, critical of the country, and needed an alternative voice. Zuma also testified that he suggested New Age as one of the possible names for the Gupta newspaper.
The Zondo report makes it clear that the relationship between TNA and the SABC was one-way traffic in favour of the Guptas. The New Age Newspaper was delivered in bulk to the SABC, which then-CEO Mokhobo thought was done without expectation of remuneration. In fact, the SABC paid TNA R930 000 for the newspapers without any apparent authorisation for this.
The New Age and ANN7, later renamed AfroVoice, was shut down in 2018 after being acquired by Mzwanele Manyi.