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‘No conflict of interest’, says Presidency in defence of Ramaphosa’s Phala Phala interests
'Anything else to the contrary is pure speculation,' says Presidency spokesperson, Vincent Magwenya.
President Cyril Ramaphosa at the Union Buildings in Pretoria on 4 January 2022. Picture: Jacques Nelles
The Presidency has defended President Cyril Ramaphosa insisting that he has no conflict of interest regarding his Phala Phala farm activities.
Presidency spokesperson, Vincent Magwenya briefed the media at the Union Buildings in Pretoria on Tuesday, where he provided clarity on how Ramaphosa’s financial interests are managed.
‘Pure speculation’
Magwenya indicated Ramaphosa had divested from Shanduka, which is an investment holding company founded by the president in 2002, to avoid conflicts of interest with his government duties.
He explained that the president, however, retained assets in his non-regulated interests – including farming – as they did not cause any conflict of interest.
“The president’s farming operations have always been separate from Shanduka,” he said.
“Whilst the farming entities do trade in the purchase, sale and breeding of game and livestock, the president does not earn as a salary from these entities. Revenues earned from the trading of game and livestock covers the salaries of workers [and the rest is reinvested].
ALSO READ: Phala Phala: ‘Selling animals is not money laundering’, Ramaphosa tells Parliament
“Anything else to the contrary is pure speculation and innuendo that we cannot entertain,” the Presidency spokesperson added.
Magwenya also pointed out that Ramaphosa had declared his financial interests to Parliament as well as Cabinet’s secretary Phindile Baleni from 2014 to date.
The president, who has long denied any criminal conduct on his part, told Parliament last month that he was of the view that game farming was “not money laundering” and he would “subject myself to all manner of investigations and processes” regarding the February 2020 burglary at his Phala Phala farm in Limpopo
Watch the full briefing below:
‘Under investigation’
Magwenya was quizzed about United Democratic Movement (UDM) president and MP, Bantu Holomisa’s letter to the independent panel, which will determine whether Ramaphosa has a prima facie case to answer on Phala Phala.
Replying to the matter, the Presidency spokesperson said: “That issue is under investigation by law enforcement agencies so if any individual has evidence, that must be provided to law enforcement agencies to investigate.
“From the president’s side, it is to continue co-operating with the investigations, as he has stated, so I am not going to comment on that document, suffice to say the investigation is under way.”
In his submission, Holomisa has asked the panel to the source of the money that was found – in foreign currency – at the farm.
The UDM MP noted that it appeared that the money was not from the sale of animals, but was money brought into the country by one of Ramaphosa’s closest advisers.
READ MORE: Phala Phala: Acting Public Protector says investigation has reached an ‘advanced’ stage
He indicated that he based his assertions on allegations by former State Security Agency (SSA) director-general Arthur Fraser, who laid charges of kidnapping and money laundering against Ramaphosa in June.
“From reading it, one concludes that Mr Fraser has provided the Hawks with additional, rather explosive, information regarding the whole matter in addition to his now well-publicised affidavit of 1 June 2022,” Holomisa said in his letter dated 24 October.
Holomisa questioned where the money came from and claimed that Ramaphosa was trying to cover up the matter.
“There appears to be a concerted effort, either with the knowledge and blessing of the president or only in his name, to distort information and cover-up what really happened at the time of the alleged robbery and any subsequent actions (or inaction) taken by the various stakeholders to cover up the incident,” he added.
Section 89 panel
Meanwhile, Magwenya further said Ramaphosa would submit his responses to the panel in the 10 day timeframe he has been given.
The president has been allocated the timeframe between 28 October and 6 November to respond to information and questions received regarding the robbery, while MPs have until 27 October to submit their own evidence to the independent panel.
The three-person panel started its working last Wednesday, and has been given 30 days to complete its work.
RELATED: Phala Phala: Ramaphosa given 10 days to submit answers to independent panel
During this period, the panel will have 10 days – from 7 to 17 November – to consider all information received, conduct any additional research required, deliberate on the facts, and write and finalise the report for National Assembly speaker Nosiviwe Mapisa-Nqakula.
The panel is chaired by former Constitutional Court (ConCourt) Chief Justice, Sandile Ngcobo, former Judge Thokozile Masipa and Advocate Mahlape Sello, who recently served on the State Capture Commission.
