{"id":4760,"date":"2017-09-06T00:00:00","date_gmt":"2017-09-06T00:00:00","guid":{"rendered":"https:\/\/amabhungane.org\/amabhungane\/stories\/eskoms-suspended-cfo-has-been-at-the-centre-of-alleged-gupta-corruption-for-six-years\/"},"modified":"2024-09-22T16:40:09","modified_gmt":"2024-09-22T16:40:09","slug":"guptaleaks-how-anoj-singh-sang-for-his-supper","status":"publish","type":"post","link":"https:\/\/further.co.za\/amabwp\/guptaleaks-how-anoj-singh-sang-for-his-supper\/","title":{"rendered":"#GuptaLeaks: How Anoj Singh sang for his supper"},"content":{"rendered":"

Anoj Singh is in big trouble. Evidence in the #GuptaLeaks and elsewhere points to a criminal conspiracy to defraud South Africans of billions. Singh was a central and willing player as CFO at Transnet and then Eskom \u2013 while accepting a secret offshore company, hospitality and seemingly large amounts of cash from the Guptas.<\/strong><\/p>\n

Suspended Eskom chief financial officer Anoj Singh allowed billions in public money to slip through his fingers and into the Guptas\u2019 pockets while they paid him offshore, the #GuptaLeaks suggest.<\/p>\n

We have identified around R30-billion in crane, train and other Transnet contracts against which Gupta companies stood to get about R5.6-billion in kickbacks.<\/p>\n

These were all during Singh’s tenure at Transnet, alongside chief executive Brian Molefe, where the Gupta-friendly duo executed a spending plan worth hundreds of billions.<\/p>\n

Meanwhile, the Guptas opened a shell company for Singh in a highly secretive United Arab Emirates (UAE) jurisdiction \u2013 just after Transnet kickbacks started rolling into their accounts.<\/p>\n

The #GuptaLeaks contain glimpses of the Guptas paying someone who appears to be Singh hundreds of thousands in cash in Dubai.<\/p>\n

They also show that the Guptas employed Singh\u2019s alleged mistress and seemingly helped her to buy a house with a loan.<\/p>\n

Meanwhile, the Guptas bankrolled six or seven luxury Dubai stays for Singh (and at least one for his alleged mistress), some of which coincided with key decisions he made in their favour.<\/p>\n

When he moved from Transnet to Eskom in 2015, Singh\u2019s conflicting interests \u2013 the Guptas\u2019 versus South Africans\u2019 \u2013 followed him and found expression in his actions there.<\/p>\n

Eskom\u2019s lenders recently demanded Singh\u2019s removal, and he was suspended in July.<\/p>\n

Both the opposition Democratic Alliance and the lobby group Organisation Undoing Tax Abuse have laid criminal charges against him for his actions at Eskom. Three Eskom-commissioned investigations and another by the National Treasury indicated he has a case to answer.<\/p>\n

Did he look away on purpose? Did he get his hands dirty? The evidence suggests both, though Singh says he is clean.<\/p>\n

He told us he would cooperate with law enforcement authorities, but at the time of writing they had not yet approached him.<\/p>\n

If they ever do, he has a lot to explain.<\/p>\n

\u201cJust a soapie\u201d<\/h5>\n

On July 19, this year, Singh presented Eskom\u2019s financial results.<\/p>\n

They were bad<\/a>, and Eskom\u2019s auditors provided a gruesome account of the company\u2019s internal controls, which were so weak that the bean counters could not be sure which expenses were regular and which were not.<\/p>\n

On the day, we asked Singh a few questions.<\/p>\n

Why did the Guptas repeatedly host him in Dubai? Why did they pay many thousands for his massages there? Why did they pay him money offshore? Was he bribed?<\/p>\n

The usually smooth-talking CFO leaned uncomfortably on the table as he spoke into the microphone.<\/p>\n

\u201cI can go on record to say I have not received a bribe of any sort or taken a bribe from anybody,\u201d he said. \u201cI think, as it relates to the gifts, I will be submitting a tell-all document, so let\u2019s just wait for that, and we will see where that lands up.\u201d<\/p>\n

Seven weeks later, Singh has yet to produce the document.<\/p>\n

But Singh was irritated.<\/p>\n

In response<\/a> to written questions<\/a>, he said: \u201cAs you may remember, during the Eskom results presentation, speculative information was presented by a journalist to me in this very public platform, which had very little relevance to the substantive issues raised but was presented nonetheless in a very deliberate way designed to impugn my character and reputation in the court of public opinion.<\/p>\n

\u201cIn this vein,\u201d he said, \u201cI [will] not participate in the soap\u00ad-opra-\u00adfication (for lack of a better word) of my alleged role in alleged corruption in the companies that I\u2019ve worked in.\u201d<\/p>\n

He said: \u201cIssues of corruption are currently subject to forensic investigation. The [National Prosecuting Authority] and the Hawks have recently indicated that they are beginning an investigation into these matters, and I will cooperate with any law enforcement authority if required to do so.\u201d<\/p>\n

In a recent BBC Radio 4 interview<\/a>, Gupta brother Atul denied wrongdoing. He said: “Let\u2019s talk Gupta leaks; there is no authenticity of Gupta leaks at all. They are all everyday deception-mongering to drive their own agenda.”<\/p>\n

The Gupta brothers and their associates have otherwise consistently declined to comment on detailed #GuptaLeaks allegations.<\/p>\n

A servant of the people<\/h5>\n

Singh, now 44, is a qualified chartered accountant. He studied at the University of Durban-Westville (now University of KwaZulu-Natal) before working as an accountant in the Spar group. Later, he headed big accounts at the auditing firm Deloitte.<\/p>\n

He joined Transnet in 2003 where he worked as a senior financial manager in the company\u2019s biggest operating division, Transnet Freight Rail. He later moved into the Transnet group head office where, in 2009, he became acting CFO.<\/p>\n

In an email to us, Singh, described the \u201cpivotal role\u201d he thought state-owned companies played in South Africa\u2019s economic transformation. \u201cTens of millions of people rely on the services, which has a direct bearing on their quality of life, opportunities and economic prospects.<\/p>\n

\u201cThis is why I chose a career in the public sector.\u201d<\/p>\n

People who know or have worked with Singh said he was charming, persuasive and fiendishly clever. One said he was \u201ca frikken genius at fundraising\u201d.<\/p>\n

In a 2012 interview<\/a>, CFO South Africa<\/em> asked Singh what he was most proud of. He said: \u201cMy role as the CFO at Transnet. We recently launched a R300 billion capital investment programme, the Market Demand Strategy. It is an ambitious plan that is expected to create 588 000 economy-wide jobs and transform Transnet Freight Rail into the world\u2019s fifth biggest rail freight company.\u201d<\/p>\n

But it was exactly this R300-billion strategy that made the Guptas inordinately wealthy.<\/p>\n

Seven Chinese cranes<\/h5>\n

Let us begin in 2011.<\/p>\n

A Transnet operating division, Transnet Port Terminals, bought seven cranes to lift containers from ships at Durban harbour.<\/p>\n

The Chinese state-owned Shanghai Zhenhua Heavy Industries (ZPMC) supplied the cranes for $92-million (R650-million then).<\/p>\n

At the same time, ZPMC started paying off<\/a> a Dubai shell company called JJ Trading, which quickly paid similar amounts to Gupta companies in the UAE and South Africa.<\/p>\n

We shall see that the Guptas frequently used JJ Trading, whose beneficial ownership is unclear, to wash kickbacks.<\/p>\n

Singh said of this and a later crane deal: \u201cIf a procurement activity has gone through all the process checks and balances, why would any CFO question it on face value? I as CFO had very little involvement in the process per my delegation of authority.\u201d<\/p>\n

ZPMC said: \u201cWe have no business or any other relationship with Guptas.\u201d It asked us to retract our earlier article about it, but then declined to explain the JJ Trading payments.<\/p>\n

95 Chinese locomotives<\/h5>\n

In 2012, Transnet appointed Singh permanently. He and CEO Brian Molefe then launched their legacy project, the R300-billion capital investment plan.<\/p>\n

Later in 2012, Transnet signed one of the first big contracts under the plan. Another Chinese firm, China South Rail (CSR), would supply 95 electric locomotives for R2.7-billion.<\/p>\n

Against this, CSR agreed<\/a> to pay R537-million in kickbacks to Gupta front companies in Dubai and Hong Kong.<\/p>\n

JJ Trading washed a lot of this money, again.<\/p>\n

CSR did not respond to questions.<\/p>\n

Intangibles<\/h5>\n

Molefe and Singh were still planning to buy another 1 064 locomotives, at about R50-billion.<\/p>\n

In preparation, Singh needed to raise cash, so in December 2012, Transnet went to tender and appointed a consortium of financial advisors.<\/p>\n

The consortium was to be led by McKinsey, a renowned corporate advisory firm, that is today in hot water<\/a> over Eskom benefits it allegedly channelled to the Gupta-linked company Trillian, now led by one Eric Wood.<\/p>\n

Back in 2012, Wood was a partner at Regiments Fund Managers. Regiments was supposed to be McKinsey\u2019s minority partner at Transnet, for roughly a R10-million cut.<\/p>\n

Instead, Regiments effectively elbowed<\/a> McKinsey out of the way and took over the job. Its scope and cost of services blossomed to about R266-million.<\/p>\n

Singh and Molefe provided the fertiliser through a series of motivations and approvals.<\/p>\n

For example, in a letter to McKinsey, Singh wrote that the main scope of the McKinsey engagement would be reallocated to Regiments.<\/p>\n

A subsequent contract addendum purported to be between Transnet and McKinsey, but Wood scratched out \u201cMcKinsey\u201d and signed for Regiments. Singh signed alongside, increasing Regiments\u2019 portion of the contract to R21-million.<\/p>\n

In a later memorandum, Singh retrospectively motivated for Regiments to be paid an extra R89-million. Molefe approved.<\/p>\n

Along the way, Regiments picked up other Transnet contracts worth at least R219-million.<\/p>\n

There were no open tenders for the extra contracts, but Regiments said<\/a> all was above board.<\/p>\n

Over the same period, Regiments paid<\/a> at least R84-million to a Gupta shell company in South Africa called Homix.<\/p>\n

Homix, we shall see, was also used by the Guptas to wash kickbacks for other Transnet contracts.<\/p>\n

100 Chinese locomotives<\/h5>\n

Around the end of 2013, Transnet decided to buy another 160 locomotives, supposedly because the big 1 064 purchase was delayed. China South Rail would provide 100 of these. There is no evidence of an open tender.<\/p>\n

Once again, the #GutpaLeaks show<\/a>, CSR agreed to kick back to JJ Trading and other Gupta fronts offshore: R924-million against a R4.4-billion Transnet contract.<\/p>\n

22 Swiss cranes<\/h5>\n

In February 2014, Transnet contracted to buy 22 more cranes for Durban harbour, this time from the Swiss firm Liebherr.<\/p>\n

On the day that the contract was awarded, one of several Liebherr payments hit the Guptas\u2019 UAE accounts. In the #GuptaLeaks, we identified<\/a> payments totalling $4.2-million (about R46-million then).<\/p>\n

After we published this in July, Liebherr said it was investigating: \u201cWe take the allegations very seriously. The business practices described in the article are unacceptable to us. We currently expect the investigation\u2019s results during next week.\u201d<\/p>\n

That was 10 weeks ago. Liebherr did not respond to subsequent emails.<\/p>\n

359 Chinese locomotives<\/h5>\n

The next month, March 2014, Transnet announced the big one.<\/p>\n

Transnet had chosen four companies to supply the 1 064 electric and diesel locomotives. China South Rail got the biggest chunk: 359 locomotives at about R18-billion.<\/p>\n

Against this<\/a>, CSR was to pay a staggering R3.8-billion to JJ Trading and other Gupta fronts.<\/p>\n

On Monday, April 21, 2014, one month after the contract, JJ Trading paid the Guptas 7.3-million Emirati dirham (AED; R20.9-million then) in cash, the #GuptaLeaks show<\/a>.<\/p>\n

On Wednesday, it paid another AED 1.8-million (R5.1-million), this time to one of their Bank of Baroda accounts. Another AED 3.3-million (R9.4-million) followed on Thursday. And so on.<\/p>\n

A month later, JJ Trading had already paid the Guptas about R590-million.<\/p>\n

Singh\u2019s little secret<\/h5>\n

On March 20, 2014, just three days after Transnet awarded China South Rail the 359-locomotive contract, the Guptas opened up a shell company in the UAE.<\/p>\n

It was called Venus Limited, and it cost the Guptas AED 11 000 (R32 000 then) in administrative fees to open.<\/p>\n

Venus was registered in the name of a man who regularly worked for the Guptas. This man, the #GuptaLeaks show, sometimes moved huge amounts of cash into their Dubai accounts for them \u2013 a textbook \u201cbagman\u201d, it seems.<\/p>\n

Five weeks later, just after the JJ Trading money landed with the Guptas, Singh boarded a plane to Dubai.<\/p>\n

There, the Guptas hosted him at the Oberoi hotel where, the #GuptaLeaks have shown, the Gupta brothers regularly looked after South African cabinet ministers, politicians, fixers and officials.<\/p>\n

Singh was joined at the Oberoi by brother Tony Gupta and their business partner Salim Essa, travel bookings show. While they were there together, the Gupta \u201cbagman\u201d transferred Venus into Singh\u2019s name.<\/p>\n

Where \u201cConfidentiality is King!\u201d<\/h5>\n

Venus is registered in Ras Al Khaimah, one of the seven emirates of the UAE.<\/p>\n

It is notorious \u2013 or \u201cpopular\u201d \u2013 for two reasons: Financial secrecy and tax avoidance.<\/p>\n

Online websites that tout Ras Al Khaimah explain \u201cthe surprising level of banking privacy\u201d in \u201cRAK\u201d, where \u201cConfidentiality is King!\u201d<\/p>\n

According to one: \u201cRAK Offshore sets the bar very high in terms of internal, local, federal and international compliance yet keeping customers’ confidentiality at the heart of the system<\/strong>\u201d (their emphasis).<\/p>\n

In other words, should someone send illicit funds to Singh\u2019s new company, no one would know.<\/p>\n

Singh declined to explain the company\u2019s purpose.<\/p>\n

\u201cMr A Singh\u2019s\u201d cash<\/h5>\n

We have seen no financials for Venus and do not know if the Guptas or their associates paid money to it. However, they appear to have given him cash around that time.<\/p>\n

On June 6, 2014, Singh jetted off to Dubai for his second Gupta sojourn. There he spent two nights at the Oberoi with Tony Gupta.<\/p>\n

One month later, the Guptas booked Singh in for a third stay at the Oberoi, although evidence suggests he may not have made this appointment.<\/p>\n

But Singh was back in Dubai on August 29, his travel records show, when Tony Gupta appeared to give him AED 200 000 (R578 000 then) cash.<\/p>\n

This is according to the Guptas\u2019 internal accounting records, where a spreadsheet<\/a> appears to record expenses incurred by Tony Gupta. The entry notes: \u201cMr A Singh Atlantis\u201d.<\/p>\n

It appears \u201cMr A Singh\u201d was paid at Atlantis, The Palm, an ostentatious resort in Dubai.<\/p>\n

This spreadsheet records 97 transactions. They are not listed chronologically, so it is suggestive that immediately below the AED 200 000 paid to \u201cMr A Singh\u201d, a second record notes that AED 200 000 (R584 000 then) was paid to \u201cAS Global\u201d a few weeks earlier.<\/p>\n

Putting aside the possibility that \u201cAS\u201d refers to Singh\u2019s initials, a reliable source told us this company was for Singh\u2019s benefit. We could not independently verify this.<\/p>\n

Singh declined to explain these payments.<\/p>\n

Dirty fingers?<\/h5>\n

On November 7, 2014, Singh was back at the Dubai Oberoi to spend two nights. Again, travel booking records suggest Tony Gupta and Essa were there too.<\/p>\n

Coincidentally, at that point, the South African telecommunications network company Neotel was trying to clinch a big deal to service Transnet.<\/p>\n

According to a report later commissioned by Neotel\u2019s board, the negotiations had been tough. Transnet and Neotel were caught on a few \u201csticking points\u201d.<\/p>\n

These were surmountable, Neotel\u2019s investigators noted, but a month later, Transnet \u201cinexplicably\u201d informed Neotel that negotiations were off.<\/p>\n

So Neotel CEO Sunil Joshi sat down with Singh in the seedy, subterranean gloom of SLOW Lounge, Sandton on December 11, 2014.<\/p>\n

Describing Joshi\u2019s account, Neotel\u2019s investigators reported that Singh confirmed the deal was off.<\/p>\n

\u201cMr. Joshi was shocked and failed to comprehend how there could have been such a change in attitude from Transnet,\u201d they reported.<\/p>\n

Returning to Neotel\u2019s offices, Joshi asked his staff to call up a company called Homix \u2013 the same company that Regiments paid R84-million, and who we now know<\/a> to have been little more than a Gupta money cleaner<\/a>.<\/p>\n

Joshi was already acquainted with Homix because, earlier that year, Neotel paid it a R35-million \u201csuccess fee\u201d to close a different Transnet contract, the investigators reported.<\/p>\n

That evening and twice the following morning, a Neotel manager met with someone from Homix. The two agreed that Neotel would pay Homix 2% of the Transnet contract plus R25-million later.<\/p>\n

Like magic, the negotiations were back on track, and the R1.8-billion contract was signed a few days later.<\/p>\n

But again?<\/h5>\n

Two months later, Transnet had Neotel in a bind once more, and again Singh featured.<\/p>\n

In February 2015, Neotel and Homix signed a “business consultancy agreement” to finally give effect to the promise to throw Homix its pound of flesh: R36 million, or 2% of the contract.<\/p>\n

Neotel took so long to finalise this because, unsurprisingly, its compliance staff were unhappy with the arrangement.<\/p>\n

Come February 25, 2015 the company had not yet paid Homix.<\/p>\n

That same day, it so happened Singh was back at the Dubai Oberoi for another two-night stay with Tony Gupta.<\/p>\n

Coincidentally, on that day, Transnet failed to pay Neotel for its January and February services.<\/p>\n

This was on the \u201cexpress instruction\u201d of Singh himself, Neotel staff told the investigators \u2013 and \u201cprecisely\u201d because Neotel had not paid Homix.<\/p>\n

The logjam was broken when Transnet paid Neotel and Neotel paid Homix in succession \u2013 while Singh and Tony Gupta were together in Dubai.<\/p>\n

Transnet and Neotel\u2019s relationship evidently improved because, the following month, Transnet ordered CCTV cameras worth R505-million from Neotel.<\/p>\n

True to the pattern, Neotel\u2019s subcontractor on the CCTV job then funnelled<\/a> R15-million to The New Age, then the Guptas\u2019 newspaper company.<\/p>\n

Singh\u2019s \u201cgirlfriend\u201d<\/h5>\n

Two unconnected people told us how, during his Transnet days, Singh travelled to Dubai with a \u201cgirlfriend\u201d who once worked at Transnet.<\/p>\n

We have identified a woman matching this description in the #GuptaLeaks. She is not the same person as Singh\u2019s wife.<\/p>\n

The leaks showed this woman was listed to attend a Gupta company year-end party in Sandton with Singh as her \u201cpartner\u201d.<\/p>\n

Singh, who confirmed knowing her, asked us not to name her because he was concerned about her state of mind. Having spoken to her ourselves, we agreed. She declined to comment on the substantive issues.<\/p>\n

The #GuptaLeaks reveal that Sahara Computers employed Singh\u2019s \u201cgirlfriend\u201d as a project manager in January 2015.<\/p>\n

At Sahara, the woman\u2019s monthly salary was R50 000. This was the seventeenth highest salary of 260 employees, equalling that of her line manager \u2013 in spite of an apparently non-descript role.<\/p>\n

Other documents in the leaks show that Sahara lent her R400 000 later that year, filling the hole between her bank loan and the price tag on her second house, a R1.36-million property in Midrand.<\/p>\n

Such generous treatment was uncharacteristic for Sahara, a usually stingy company. The suggestion is that, for some reason, the Guptas appeared to take a particularly special interest in caring for Singh\u2019s alleged mistress.<\/p>\n

In an email<\/a> found in the leaks, the woman wrote to her line manager on February 25 to tell him: “I will be away from office tomorrow and Friday as Mr T Gupta has requested me to go to Dubai.\u201d<\/p>\n

Singh was already in Dubai. When she landed there the next day, her airport pickup, accommodation and meals were charged to his room.<\/p>\n

Singh\u2019s total invoice<\/a> was for AED 18 310 (R60 000 then). Singh was recorded as being from the Gupta company Sahara Computers, and the bill was paid for with a Gupta employee\u2019s credit card.<\/p>\n

Feeling loco<\/h5>\n

There was one more thing about Singh\u2019s February 2015 Dubai trip that raises questions.<\/p>\n

His Oberoi stay was extended for three days. During this extra time, the Guptas arranged for one of China South Rail\u2019s vice presidents to join him there, #GuptaLeaks emails show.<\/p>\n

At that time CSR was still paying kickbacks to Gupta-linked companies for contracts awarded by Singh\u2019s Transnet.<\/p>\n

The confluence of these three people, orchestrated by the Guptas, is notable.<\/p>\n

Two weeks later, the CSR vice president, Tony Gupta and Essa, the Guptas\u2019 partner, travelled together on a chartered flight in India.<\/p>\n

A few days after this, an email from the CSR vice president was recirculated among senior Gupta personnel. Attached to the email was a spreadsheet<\/a> that reconciled kickbacks CSR owed and had already paid to JJ Trading on the three Transnet locomotive contracts.<\/p>\n

Not long after, Essa and CSR signed a new kickback contract<\/a>. According to this, the CSR kickbacks would be diverted from JJ Trading to an Essa company in Hong Kong.<\/p>\n

Singh declined to explain.<\/p>\n

Ructions at Eskom<\/h5>\n

Not two weeks after Singh returned from that Dubai trip, on March 12, 2015, the Eskom board suspended its CEO, finance director and two other executives.<\/p>\n

Eskom\u2019s then chairman said this was to make way for an investigation into Eskom\u2019s poor power generation performance and related problems. He said: “There is nothing sinister happening. This is a fact-finding inquiry … which will last for three months.”<\/p>\n

But many viewed the suspensions as a sham to get executives out of the way. Indeed, three of them soon resigned. President Jacob Zuma later apologised to the former CEO.<\/p>\n

The upshot, however, was that the way was cleared for the tag team of Brian Molefe and Anoj Singh to take over at the public power utility \u2013 where the Guptas and their associates had battled<\/a> to close coal and financial contracts.<\/p>\n

Molefe was seconded to Eskom in March 2015 as acting CEO. Singh moved across, also in an acting role, a little later \u2013 but not before another trip to the Dubai Oberoi.<\/p>\n

An Eskom briefing?<\/h5>\n

Singh flew back to Dubai on June 11, 2015. This was his sixth trip to be arranged by the Guptas.<\/p>\n

As usual, Tony Gupta was there.<\/p>\n

In the circumstances, it seems reasonable to ask: Was Singh there to receive his Eskom briefing?<\/p>\n

One month later, Singh was seconded to Eskom \u2013 and two days after that, Tony Gupta, Ajay Gupta’s son Kamal, and Jacob Zuma\u2019s son Duduzane were all present at the Oberoi.<\/p>\n

The Guptas and Duduzane were about to benefit hugely under the new Eskom regime.<\/p>\n

Just two weeks later, Molefe and Ajay Gupta spoke on the phone. This was first of 78 phone interactions between Molefe and the Guptas that were reported on by the former public protector in her \u201cState of Capture\u201d investigation.<\/p>\n

\u201cAnoj\u2019s cigarette\u201d<\/h5>\n

In the closing months of 2015, the Gupta partner Essa founded the financial advisory firm Trillian Capital Partners.<\/p>\n

Recall that on at least two of Singh\u2019s trips to the Dubai Oberoi, Essa was booked in alongside him, so the two were likely acquainted.<\/p>\n

Earlier, the Guptas had tried to buy Regiments \u2013 the company that Transnet enriched through questionable payments on Singh\u2019s watch and which had made dubious payments to Gupta front companies.<\/p>\n

But Eric Wood\u2019s partners at Regiments had turned the Guptas away.<\/p>\n

So, Wood started moving his affairs to Essa\u2019s new group, Trillian.<\/p>\n

The details of Wood\u2019s transfer to Trillian are entangled in controversy. Regiments\u2019s remaining partners have claimed that both Transnet and Eskom paid Trillian for work their company had done.<\/p>\n

Among the disputed Transnet payments was R94-million<\/a> to Trillian that December, for work allegedly done by Regiments.<\/p>\n

Even though Singh was at Eskom by then, people close to Transnet described such payments as \u201cthe cigarette that Anoj left burning in the ashtray when he left\u201d.<\/p>\n

Got a light?<\/h5>\n

Over at Eskom, with Singh and Molefe in place, Wood and Essa appeared to peel open a new pack of cigarettes.<\/p>\n

Eskom and McKinsey signed an agreement in September 2015 to work on an Eskom corporate plan. Regiments worked directly on the plan alongside McKinsey, with the intention that the former would become the latter’s supplier development partner.<\/p>\n

It was Singh who allegedly asked Regiments to help prepare Eskom\u2019s corporate plan, according to a recent investigation by Advocate Geoff Budlender, conducted on the Trillian chair\u2019s instruction.<\/p>\n

McKinsey said the Regiments supplier development contract was never formalised.<\/p>\n

But as Wood began to split away from Regiments to establish Trillian with Essa, McKinsey followed suit. It adopted Trillian as its intended supplier development partner on another big Eskom project, “the turnaround plan”.<\/p>\n

Eskom has said Singh was not responsible for later signing a master services agreement for this plan, but one well-placed source said he was responsible for key negotiations.<\/p>\n

McKinsey said: “Trillian ultimately failed McKinsey’s due diligence and the consultancy terminated its discussions with Trillian in March 2016.”<\/p>\n

Eskom has admitted that it paid Trillian, however.<\/p>\n

Wood and his staff, whether as Regiments or Trillian, also appeared to do other work at Eskom under Singh.<\/p>\n

For example, senior Eskom staffers told us how, after Singh arrived, he started touting Regiments\u2019 services for various jobs.<\/p>\n

Their standard response was: \u201cBut we\u2019ve already done that.\u201d Or: \u201cBut we can do that ourselves.\u201d<\/p>\n

Then, the staffers alleged, Singh went quiet, and they learned indirectly that he had Wood doing jobs behind their backs.<\/p>\n

In December 2015, Singh introduced Wood to Eskom\u2019s insurers, who were covering a blown boiler, and Wood and his staff apparently advised Eskom on this project.<\/p>\n

But some McKinsey staff appeared to feel that Wood and his colleagues were simply along for the ride or an \u201cunwanted piece of baggage\u201d, as one Trillian executive described it to Budlender.<\/p>\n

For example, the Trillian executive recounted how, in a meeting, a McKinsey employee said: \u201cRegardless of the [Trillian] resources allocated to projects, Trillian will still get their 30%\u201d, and: “It doesn\u2019t really matter as long as you get your percentage.”<\/p>\n

Budlender concluded: “The Eskom contract price included 30% for Trillian, which from those [McKinsey] representatives\u2019 point of view served little purpose other than to provide a substantial financial benefit to Trillian and its shareholders \u2014 and presumably to induce Eskom to award the contract to McKinsey”.<\/p>\n

McKinsey replied that it took \u201csupplier development and professional standards seriously, and that it would only ever consider entering into a supplier development partnership which would achieve impact and value for its clients, and build local capabilities in parallel\u201d.<\/p>\n

\u201cSingh\u2019s got our back\u201d<\/h5>\n

Budlender also described an encounter between Wood and a Trillian executive, as recounted by her. She had fretted because a McKinsey due diligence concluded that Trillian was too politically exposed because of Essa\u2019s relationship with the Guptas.<\/p>\n

Budlender reported: \u201c[She] said that she discussed this with Dr Wood in April 2016. He said that she was not to worry, as he would discuss the matter with Mr Anoj Singh of Eskom. He said that Trillian had responded to an Eskom request for proposals, and Mr Singh would appoint Trillian through that process.<\/p>\n

\u201cThe obvious question which arises is how [Wood] could be so confident that Eskom would appoint Trillian.\u201d<\/p>\n

Eskom has admitted to paying R495-million to Trillian without contracts. We understand the true figure to be nearly R600-million.<\/p>\n

Trillian has denied wrongdoing and said it “delivered a high standard of work to its clients”.<\/p>\n

Optimum circumstances<\/h5>\n

Another well-told story, involving Singh and the Guptas, is how, over 2015 and early 2016, Eskom sandwiched Glencore, the owner of Optimum Coal Holdings, between a gigantic fine for poor quality coal and a tough negotiating position on Optimum\u2019s coal prices \u2013 all while the Guptas tried to buy Optimum\u2019s mine and related assets.<\/p>\n

The former public protector chronicled this in her \u201cState of Capture\u201d report.<\/p>\n

She showed how Eskom CEO Molefe and mines minister Mosebenzi Zwane were in close contact with the Guptas while putting the squeeze on Glencore.<\/p>\n

Singh showed his hand a few times.<\/p>\n

He provided a boost to the Gupta balance sheets when, late in December 2015 \u2013 when most of his staffers were on holiday \u2013 he arranged a R1.6-billion Eskom guarantee against the Guptas\u2019 future coal supplies.<\/p>\n

An insider explained to us that it was not unusual for Eskom to give such guarantees to help establish new mines and therefore secure future coal supplies.<\/p>\n

What was questionable in this case (aside from Singh\u2019s close and beneficial relationship with the Guptas), was that Optimum was already up and running. No capital investment was necessary to secure its coal supplies, they said.<\/p>\n

Singh reaches out again<\/h5>\n

In \u201cState of Capture\u201d, the public protector analysed bank records and alleged that Trillian ultimately contributed R235-million towards the Guptas\u2019 Optimum purchase consideration. Trillian denied this, although a recent report<\/a> suggested a financial regulator has corroborated the public protector\u2019s finding.<\/p>\n

Much of Trillian\u2019s money was presumably derived from Eskom and Transnet payments, made under Singh\u2019s watch. But at least one invoice, for R30.6-million, was sent directly to Singh on April 14, 2016 \u2013 the same day that the Guptas\u2019 Tegeta Exploration and Resources had to pay R2.1-billion for Optimum.<\/p>\n

The Guptas were struggling to come up with the cash, so this payment may have been urgent for them.<\/p>\n

The invoice was stamped \u201cpaid\u201d on the same day that Singh received it.<\/p>\n

At the same time, the Guptas were battling to come up with the last R600-million they needed to close the deal.<\/p>\n

The banks would not help, and Eskom\u2019s board tender committee held an eleventh-hour meeting and agreed that Eskom would prepay the Guptas R659-million for coal to be provided in the future.<\/p>\n

Singh\u2019s job included making sure the Guptas\u2019 coal was not overpriced. Treasury investigators have complained that it was and that Singh failed to do a proper due-diligence, while accepting gifts from the Guptas in the form of the Oberoi stays.<\/p>\n

In a recent report<\/a>, they said an investigation was needed into whether Singh accepted \u201cgratuities\u201d to improperly influence his decisions.<\/p>\n

The Guptas immediately used Eskom\u2019s cash to buy Optimum.<\/p>\n

Eskom has countered that the coal was fairly priced, that it was supplied and that Tegeta offered shares as security.<\/p>\n

Eskom also said it urgently needed the coal to avert load shedding \u2013 yet, just two weeks earlier, public enterprises minister Lynne Brown told parliament: \u201cLoad shedding has become a thing of the past\u2026 The group chief executive officer, Brian Molefe, has assured me that there is no prognosis for load shedding over the winter months,\u201d<\/p>\n

Singh and the \u201cstate capture year-end party\u201d<\/h5>\n

In December and January 2015, the Guptas invited<\/a> a long list of officials, politicians and fixers to join them at the Oberoi.<\/p>\n

Over a few weeks, they were joined by Duduzane Zuma, former finance minister Des van Rooyen (he had been appointed and fired a few days before arriving in Dubai), Free State Premier Ace Magashule\u2019s sons, arms deal and Gupta fixer Fana Hlongwana, then deputy minister of public service and administration Ayanda Dlodlo (Hlongwana paid for himself and Dlodlo), public enterprises minister Lynne Brown\u2019s allegedly powerful personal assistant, Denel chairman Dan Mantsha and Eskom\u2019s group executive for generation, Matshela Koko.<\/p>\n

Sars commissioner Tom Moyane also happened to be in town, according to news reports. But this was purely coincidental, he said.<\/p>\n

Singh was there<\/a> too.<\/p>\n

Most of the people listed have been linked to benefits that the Guptas and their partners derived from the state.<\/p>\n

And given that President Jacob Zuma had just attempted (but failed) to install a Gupta friend to the finance ministry, it is tempting to view the Oberoi gathering as a \u201cstate capture year-end party\u201d \u2013 albeit with the finance minister glitch.<\/p>\n

Singh\u2019s attendance was significant given the events then playing out at Eskom involving Regiments, Trillian and the Optimum coal deal.<\/p>\n

\u201cThe overlord\u201d<\/h5>\n

On the morning after Eskom\u2019s results presentation in July this year, Singh appeared on the TV talk show Morning Live<\/a>.<\/p>\n

The host, Peter Ndoro, asked Singh about his relationship with the Guptas and his trips to Dubai.<\/p>\n

Singh ducked: \u201cAs I indicated yesterday, there is a document that I am currently preparing that will reveal the nature of the trips\u2026\u201d<\/p>\n

Ndoro interrupted: \u201cBut Anoj, this isn\u2019t brain surgery. You either went or you didn\u2019t. Did you go?\u201d<\/p>\n

\u201cNo. I mean, yes, I did.\u201d<\/p>\n

\u201cDid the Guptas pay for it?\u201d<\/p>\n

\u201cNo they didn\u2019t.\u201d<\/p>\n

\u201cBut they didn\u2019t give you any gifts whatsoever?\u201d<\/p>\n

\u201cNo.\u201d<\/p>\n

\u201cSo what is your relationship with the Guptas?\u201d<\/p>\n

\u201cWell I think it\u2019s like any other South African business person. I know them. I\u2019ve been with them. I\u2019ve met them, by and large as a result of the The New Age breakfasts, so ja.\u201d<\/p>\n

\u201cSo nothing unusual is going to come up in these emails to suggest that an impropriety or a relationship that is inappropriate between someone who is doing work for Transnet and then the CFO\u2026 Because you should have distanced yourself a little bit more once they had contracts with you, right?\u201d<\/p>\n

Anoj blinked hard, then screwed up his face thoughtfully: \u201cWell if you look at the Transnet environment, I don\u2019t think there was any contracts with Sahara that Transnet had entered into.\u201d<\/p>\n

Nobody said there were.<\/p>\n

Singh continued: \u201cMaybe on the Eskom side a bit more diligence would have been required. And the emails currently paint a relatively\u2026 a picture, and I think that\u2019s the reason for the document being prepared to give perspective in terms of what the actual reality was.\u201d<\/p>\n

By then, Singh looked as if he felt a little hot under the collar.<\/p>\n

Leaked emails show beyond doubt that Gupta employees arranged seven bookings at the Oberoi for Singh. They received his invoices, haggled over his rates and, in four cases, we have evidence that they paid using company credit cards.<\/p>\n

The invoices included Singh\u2019s numerous massages, airport limo pickups, meals and his alleged mistress\u2019s charges, in one instance.<\/p>\n

Once, an Oberoi staffer wrote<\/a> to a Gupta employee: \u201cPlease note that with approval of Mr Gupta we also charged the credit card which you provided to us for Mr Singh charges.\u201d<\/p>\n

On another occasion, one Gupta employee told<\/a> another to \u201cplease swipe the card for all charges\u201d against Singh\u2019s expenses.<\/p>\n

And after another trip, a Gupta employee sent<\/a> Singh\u2019s Oberoi bill to Tony Gupta who responded: \u201cOk.\u201d<\/p>\n

In response to our long list of written questions, Singh conceded that, \u201cwith regard to procurement, the buck does stop with me\u201d.<\/p>\n

And: \u201cWith the benefit of hindsight and new facts (assuming they are correct) \u2013 presented by amaBhungane and other journalists \u2013 which I was not aware of at the time, these transactions could look suspicious and may very well be irregular,\u201d he said.<\/p>\n

But he thinks journalists are treating him unfairly.<\/p>\n

\u201cWhat has been distressing for me,\u201d he said, \u201care speculative reports about my role in alleged corruption, concluded through largely speculative reporting written in a pointed way to substantiate the \u2018state capture\u2019 narrative. As if to say that I am some overlord that wields a magic pen and blank a cheque book at will.\u201d<\/p>\n

We could not have phrased it better.<\/p>\n

* This story was edited after publication to correct the circumstances of McKinsey’s relationship with Regiments and Trillian at Eskom and to include extended comment from McKinsey.<\/em><\/p>\n

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