Fourteen years after Gaston Savoi and Fernando Praderi, some of their Intaka companies and employees, as well as officials and ANC politicians in the Northern Cape and KwaZulu-Natal (KZN), were charged with fraud, money laundering and racketeering, some of these cases are believed to be brought to a head in the High Court in Pietermaritzburg on Thursday, 5 September.
This follows the “confidential” appearance of the two Uruguayan businessmen in the High Court in Kimberley on Tuesday, 3 September, without their former co-accused. The two are also known in the media as the Amigos.
Savoi, who used to live in Cape Town, landed in Kimberley from South America to sit alongside Praderi in the dock. The charges in the two unrelated high court cases involved the provision of dialysis machines and water purification units for the Department of Health and the Sol Plaatje Municipality. Some of the charges against certain co-accused were withdrawn earlier.
Adv. Hannes Cloete, prosecutor, withdrew all the charges against the Savoi, Praderi and Intaka companies in one case, and transferred the case to KZN.
Peter Horn of Haarhoffs Inc, on behalf of the defendants, made no objection. The warrants of arrest against the accused were also withdrawn and their bail extended.
Northern Cape Judge President Pule Tlaletsi then transferred the remaining high court case to KZN, where the businessmen face similar charges in other cases.
One of their former Northern Cape co-accused was John Block, erstwhile provincial ANC leader, who was found guilty of corruption in an unrelated case and released on parole last year.
Selling water purifiers at inflated prices
In a third regional court case in Kimberley, Savoi and others were accused of selling water purifiers to the Department of Health for use in other towns at inflated prices. It is unclear whether this case was also withdrawn, or transferred to KZN.
It is understood the National Prosecuting Authority (NPA) will issue a statement only later this week.
It is also still unclear whether any other defendants will appear together with Savoi and Praderi in the High Court in Pietermaritzburg on Thursday, and who they may be.
Allegations of inflated tenders for water treatment units
Savoi and Sipho Shabalala, the former head of the KZN Provincial Treasury, were mentioned in January 2020 in the Zondo Commission of Inquiry into State Capture about allegations that Savoi paid R1,5 million to Shabalala in 2008 for inflated tenders for water treatment units.
According to Netwerk24 reports, the Zondo Commission heard evidence that Savoi’s company had allegedly signed a contract with the province in 2006 to supply ten water purification units at an initial cost of R22 million. The amount was eventually increased to R50,1 million.
Shabalala is already serving a prison sentence of 15 years for fraud, money laundering and corruption after being found guilty in 2022.
His conviction relates to his receipt of R1,5 million from Intaka Investments for the acquisition of Wataka water purification plants valued at R44 million.
The offence occurred between 2004 and 2007, when Shabalala formed a relationship with Savoi. Shabalala travelled to Brazil to view the purification equipment.
On his return to South Africa, he wrote to then MEC, Dr Zweli Mkhize, recommending that monies be allocated from the poverty alleviation fund for the acquisition of the water purification plants from Intaka. The process culminated in the awarding of a contract for 22 Wataka plants. Shabalala was the chairperson of the procurement committee that awarded the contract.
Savoi and others also allegedly tried to obtain inflated tenders in KZN for oxygen equipment worth millions of rand after bribes had allegedly been promised to highly placed officials.
The various cases in the two provinces dragged on for more than a decade due to multiple court applications. Savoi and others made submissions that the racketeering charges in the Prevention of Organized Crime Act were unclear and unconstitutional, but his court application failed. This was followed by applications for a permanent stay of prosecution, which were complicated because high courts in two provinces were involved in these interlocutory applications.
They also objected that the Hawks had seized 96 documents on different occasions as part of the investigation. Savoi argued that the documents in question were protected by legal professional privilege.
In November last year, the Constitutional Court ruled in a judgment that the relevant documents must be reviewed in a separate in-camera court sitting to determine whether all or some are protected by the legal professional privilege or not. If not, it can be used in an open court in a trial.
Learjet, luxury vehicles seized
News24 reported in 2010 that after Savoi and others were arrested, a Bombardier Learjet aircraft, a game farm in the Eastern Cape, a Maserati, Range Rover, Ferrari and Mercedes-Benz vehicles were seized by the Asset Forfeiture Unit (AFU).
In 2006, the Bombardier Learjet 60SE set the world speed record for an aircraft in its class by flying a round trip between Johannesburg and Cape Town in less than three hours. The Learjet, which was seized by the AFU after Cape Town-based Savoi was arrested in connection with tender fraud allegations, went under the gavel for R26,5 m in December 2010, Auction Alliance said in a statement.
amaBhungane also reported in 2014 that Savoi and his companies supplied medical equipment worth millions of rands to the Namibian and Ugandan governments, allegedly with the help of friends with political influence.
In 2011, Savoi brought a successful court application to have his bail conditions relaxed so he could travel to Angola for business related matters.
Charné Kemp
www.news24.com
