Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Shoprite ranks cybersecurity as its number one risk - Pieter Engelbrecht

      Shoprite ranks cybersecurity as its number one risk

      9 October 2026
      Standard Bank to take up to $200-million stake in OPay - Sim Tshabalala

      Standard Bank to take up to $200-million stake in OPay

      9 October 2026
      Shoprite takes on the banking apps with airtime on Sixty60

      Shoprite takes on the banking apps with airtime on Sixty60

      9 October 2026
      How to tell telemarketers to get lost - officially

      How to tell telemarketers to get lost – officially

      9 October 2026
      Data centres are the new front line in the Russia-Ukraine war

      Data centres are the new front line in the Russia-Ukraine war

      9 October 2026
    • World
      The memory crunch is making Samsung fabulously rich

      The memory crunch is making Samsung fabulously rich

      8 October 2026
      SpaceX to borrow $40-billion to buy Nvidia chips

      SpaceX to borrow $40-billion to buy Nvidia chips

      7 October 2026
      BMW restructuring plan bets on AI and new models

      BMW restructuring plan bets on AI and new models

      1 October 2026
      OpenAI's rogue agent problem keeps getting bigger - Sam Altman

      OpenAI’s rogue agent problem keeps getting bigger

      28 September 2026
      The new battle over the desktop

      The new battle over the desktop

      23 September 2026
    • In-depth

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
    • TCS
      W&W | LDV's Gerhard Moolman on electric bakkies, fleet orders and 'school fees'

      W&W | LDV’s Gerhard Moolman on electric bakkies and fleets

      9 October 2026
      TCS | Frogfoot sees bigger fibre deals coming - TechCentral Show guests Abraham van der Merwe and Shane Chorley

      TCS | Frogfoot sees bigger fibre deals coming

      8 October 2026
      Meet the CIO | Vodacom's Mohamed Sami on the agentic future

      Meet the CIO | Vodacom’s Mohamed Sami on the agentic future

      5 October 2026
      Lexi Novitske, general partner at Norrsken22, on the TechCentral Show

      TCS | Norrsken22’s Lexi Novitske on how China is winning African tech

      1 October 2026
      TCS | Dominic White and Adam Ely on AI agents going rogue

      TCS | Dominic White and Adam Ely on AI agents going rogue

      29 September 2026
    • Opinion
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Let South Africans jailbreak their way to digital sovereignty

      5 October 2026
      South Africa's next energy crisis is in the accounts department - Craig Holmes

      South Africa’s next energy crisis is in the accounts department

      29 September 2026
      The steam engine lesson AI doomsayers keep missing - Sam Clarke

      The steam engine lesson AI doomsayers keep missing

      28 September 2026
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Regulating AI: apply the laws we have first

      21 September 2026
      What Revolut can and cannot take from South Africa's banks - Pambos Soteriades

      What Revolut can and cannot take from South Africa’s banks

      15 September 2026
    • Company News
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Publishared
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » Public sector » How the Guptas used the New Age to fleece the state

    How the Guptas used the New Age to fleece the state

    By Barbara Curson6 January 2022
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    Atul Gupta

    The second section of part 1 of the Zondo state capture report deals with the looting of Eskom, Transnet and South African Airways by the Gupta media enterprise, the New Age (TNA) newspaper and the New Age Business Briefings, between 2011 and 2017.

    Millions of rand of public funds were siphoned off from these public entities.

    The commission identified the players in these categories:

    • The “facilitators”: Those officials who used threats and intimidation to enforce the Gupta’s demands — for example, Mzwanele Manyi, Collin Matjila, the board of Eskom that took over in December 2014 (except for former minister of public enterprises and administration Richard Baloyi and Chose Choeu), Brian Molefe, and Mboniso Sigonyela (at Transnet).
    • The “enablers or followers”: Those who compromised themselves, covered up or legitimised public spending on TNA — for example, Pieter Pretorius, Joseph Jackson, Daniel Phatlane and Zola Tsotsi who concealed important information from the new board before it ratified the contract.
    • The “resisters”: Those who did not accede to the Guptas’ demands, including Themba Maseko, former CEO of the Government Communication Information System (GCIS). Maseko, who was replaced by Manyi after standing up to the Guptas, has provided an account of his experience in his book, For My Country.

    The Guptas established TNA in 2010, which established the New Age newspaper six months later.

    Maseko rebuffed Ajay Gupta’s demands to divert government’s R600-million advertising budget to the New Age newspaper, and was summarily replaced by Manyi.

    The Zondo Commission noted that former President Jacob Zuma “could do terrible things to give effect to the wishes of the Guptas”, for example:

    • Firing former finance minister Nhlanhla Nene because he was not co-operating with the Guptas.
    • Getting involved in the suspension of executives at Eskom, resulting in three directors being replaced by Gupta associates.
    • Keeping the position of group CEO of Transnet open for two years to bring in Siyabonga Gama.

    “There is absolutely no doubt” that Zuma instructed late former minister Collins Chabane to fire Maseko or move him from his position as director-general and CEO of GCIS.

    Zuma failed to give the commission a “definitive answer to the question as to why Maseko was removed from his position”.

    The commission heard that Ajay Gupta became hostile when Maseko rejected his demand to divert the government advertising budget to the New Age, and that the Guptas “could summon any minister who did not co-operate”.

    Mzwanele Manyi

    The commission found that minister Baloyi orchestrated the replacement of Maseko by Manyi , and declined to comment on “whether the irregular removal of Maseko and the irregular transfer of Manyi facilitated state capture”. Baloyi disregarded lawful and proper procedures.

    During Manyi’s tenure from February 2011 to August 2012, GCIS paid some R6-million to TNA.

    Manyi was unable to justify to the commission how GCIS could spend millions “on a media business that had no established readership or certified circulation figures”. GCIS paid TNA R8.2-million in 2013, R9.5-million in 2014 and R10-million in 2015.

    The commission found that under Manyi’s tenure, the GCIS “was an enabler of state capture”, whereas Maseko “would likely have resisted the Guptas’ incessant pressure on government departments to divert their media spend to their business”.

    Mzwanele Manyi

    Five witnesses gave oral evidence to the commission: Zola Tsotsi (chair of the Eskom board from 2011 until March 2015); Mark Pamensky (member of the board from December 2014); Mafika Mkhwanazi (non-executive director from June 2011 to December 2014); Pieter Pretorius (responsible for strategic marketing at Eskom) and Chose Choeu (divisional executive responsible for marketing).

    Between 2012 and 2014, TNA concluded three irregular contracts with Eskom: advertising (R4-million), six business breakfasts (R7.2-million), four business breakfasts/briefings in 2012 for R4-million, and in 2014 36 business breakfasts/briefings (R43.2-million).

    The R43.2-million contract constituted fruitless and wasteful expenditure, gave Eskom no value, and former Eskom CEO (Collin) Matjila was not authorised to sign it.

    Choeu alleged that former Eskom CEO Brian Dames had instructed him to agree to an additional ad hoc arrangement as former public enterprises minister Malusi Gigaba would be speaking at a TNA breakfast. A SizweNtsalubaGobodo report made findings against Choeu, but Choeu was unaware of this and stated that no such disciplinary action was ever taken against him.

    During Manyi’s tenure from February 2011 to August 2012, GCIS paid some R6-million to TNA

    Pamensky, who was also a director of Gupta-affiliated Oakbay Resources and Energy when he joined the Eskom board in 2014, ratified a contract he had not seen.

    The commission found that the enablers and facilitators bypassed the correct procedures, and “gave false justifications to the public protector and parliament for expenditure that was nothing short of wasteful”. In addition, the 2014 Eskom board disregarded its fiduciary duties and “put the interests of the Guptas above those of Eskom and the people of South Africa”.

    The commission heard evidence from three witnesses in respect of TNA’s contracts at Transnet:

    • Mkhwanazi, the chair from December 2010 to December 2014, acting group CEO from 16 December 2010 to 11 February 2011, who managed to rebuff Tony Gupta. Gigaba unsuccessfully tried to replace Mkhwanazi with Iqbal Sharma in 2011.
    • Jackson, the brand and publicity co-ordinator for Transnet’s group corporate and public affairs unit from 2006 to December 2014. Jackson eventually assisted TNA in securing significant Transnet spending on TNA advertising.
    • Phatlane, senior co-ordinator for stakeholder relations at Transnet from 2011 to 2017.

    The contracts with TNA included the Big Interview (R24.8-million) from 2011 to 2016, and briefings/breakfasts (over R122-million) from 2011 to 2017.

    The commission concluded that Brian Molefe, who was appointed as the new Transnet CEO on 16 February 2011, and Mboniso Sigonyela, the GM of Transnet’s group corporate and public affairs, directly facilitated the use of public funds for TNA spending, “on extremely disadvantageous terms for Transnet”.

    It added that Sigonyela “used threats and intimidation to ensure that his subordinates complied with instructions to advance the interests of TNA. The expenditure incurred on these contracts was irregular, fruitless and wasteful”.

    • This article was originally published by Moneyweb and is republished by TechCentral with permission
    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Ajay Gupta Atul Gupta Brian Molefe Eskom Jacob Zuma Malusi Gigaba Mark Pamensky Mzwanele Manyi SAA The New Age Transnet
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleCrypto crime hit all-time high in 2021 – but don’t panic
    Next Article BMW unveils concept car that changes colour

    Related Posts

    The giant batteries coming to South Africa's grid - Energy minister Kgosientsho Ramokgopa

    The giant batteries coming to South Africa’s grid

    7 October 2026
    Nersa wants five-year ban on automated electricity trading

    Nersa wants five-year ban on automated electricity trading

    6 October 2026
    Eskom has a R1.20/kWh offer for bitcoin miners

    Eskom has a R1.20/kWh offer for bitcoin miners

    2 October 2026
    Company News
    Why fintechs need an insurance partner they can trust - Hollard Insurance

    Why fintechs need an insurance partner they can trust

    8 October 2026
    Reusable KYC means the end of 'please upload your ID' - Contactable

    Reusable KYC means the end of ‘please upload your ID’

    8 October 2026
    Eliminating the 'toggle tax': how CRM integration changes customer experience - Martie de Beer

    Eliminating the ‘toggle tax’: how CRM integration changes customer experience

    8 October 2026
    Opinion
    Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

    Let South Africans jailbreak their way to digital sovereignty

    5 October 2026
    South Africa's next energy crisis is in the accounts department - Craig Holmes

    South Africa’s next energy crisis is in the accounts department

    29 September 2026
    The steam engine lesson AI doomsayers keep missing - Sam Clarke

    The steam engine lesson AI doomsayers keep missing

    28 September 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Shoprite ranks cybersecurity as its number one risk - Pieter Engelbrecht

    Shoprite ranks cybersecurity as its number one risk

    9 October 2026
    Standard Bank to take up to $200-million stake in OPay - Sim Tshabalala

    Standard Bank to take up to $200-million stake in OPay

    9 October 2026
    Shoprite takes on the banking apps with airtime on Sixty60

    Shoprite takes on the banking apps with airtime on Sixty60

    9 October 2026
    How to tell telemarketers to get lost - officially

    How to tell telemarketers to get lost – officially

    9 October 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}
    🇿🇦 Sign up to the TechCentral newsletter