The release of former Public Protector, Thuli Madonsela’s #StateCaptureReport, has tabled many suspicions, including those of the DA and EFF, that the Gupta family strongarmed an advertising contract with government for The New Age newspaper.

The report was released this afternoon, after the North Gauteng high Court ordered the office of the Public Protector, Busi Mkhwebane, to release it by 5pm today.

Among the plethora of controversies detailed in the report is the accusation by the EFF that prior to launching The New Age newspaper, the Gupta family improperly secured advertising with a number of state owned enterprises and secured a regular special feature called The TNA Business Brief on SABC 2’s Morning Live.

Madonsela’s findings are as follows:

The former CEO of Government Communication and Information System (“GCIS”), Mr Themba Maseko also issued a statement alleging that members of the Gupta family pressured him into placing government advertisements in The New Age newspaper. Mr Maseko further alleged that President Zuma asked him to “help” the Gupta family.

The New Age newspaper has also secured contracts with some provincial government departments and state owned entities, most notably Eskom and South African Airways (“SAA”).

Zuma calls on Maseko to help Guptas

In an interview with Madonsela, Maseko says that President Jacob Zuma called him to ask that he “help” the Guptas.

Interviewed the former CEO of Government Communications and Information System (“GCIS”), Mr Maseko on 17 August 2016 to understand allegations attributed to him in the media regarding the Gupta family.

He informed me of the following:

a) In late 2010, he received numerous requests from members of the Gupta family for a meeting to which he finally agreed;

b) On his way to the meeting and as he was driving out of the GCIS building in Pretoria, he received a call from a Personal Assistant at Mahlamba Ndlopfu (Official residence of the President) saying: “Ubaba ufuna ukukhuluma nawe” (loosely translated, the President wants to talk to you);

c) The President came on the line. He greeted me and said: “Kuna labafana bakwaGupta badinga uncedo lwakho. Ngicela ubancede” (loosely translated, the Gupta brothers need your help, please help them);

Mr Maseko said he informed President Zuma that he was already on his way to the Saxonwold residence of the Gupta family and the President Zuma responded: “Kulungile ke baba (It’s fine then)”;

e) Mr Maseko met with Mr Ajay Gupta and one of his brothers, whose name he could not recall;

f) During the meeting, Mr Ajay Gupta said to him, we are setting up a newspaper called The New Age. I want government advertising channeled to the newspaper;

g) As GCIS CEO, Maseko was in charge of a media buying budget of just over R600-million a year;

h) Mr Maseko apparently informed Mr Ajay Gupta that GCIS performs a market research and decides on the client’s target market before selecting the right medium of advertising;

i) He further informed Mr Ajay Gupta that GCIS did not have the advertising budget and that it was with the various departments;

j) According to Maseko, Mr Ajay Gupta said this was not a problem as he would instruct the departments to advertise in the newspaper;

k) Mr Ajay Gupta apparently stated that tell us “where the funds are and inform the departments to provide the funds to you and if they refuse, we will deal with them. If you have a problem with any department, we will summon ministers here”;

l) Mr Maseko stated that he was unhappy with Mr Ajay Gupta’s comments that his family would deal with uncooperative ministers;

m) Mr Maseko stated that a few weeks later, he received a call from a senior staffer at The New Age newspaper who demanded a meeting with him. It was on a Friday and Mr Maseko was on his way to the Nedbank Golf Challenge in Sun City. He apparently requested the newspaper employee to make an appointment with his office on Monday;

n) The said employee apparently said to Mr Maseko, ” I am not asking you. I am telling you. The meeting has to happen. It is urgent because of the launch of the newspaper.” This was followed by a call from Mr A. Gupta an hour later. He apparently demanded a meeting the next day, which was a Saturday. Mr Maseko stated that he informed Mr A. Gupta that he was on his way to Sun City for a golf tournament and they could arrange the meeting on Monday; and

o) Mr A. Gupta said to Mr Maseko, “I will talk to your seniors in government and you will be sorted out”. He apparently said we will replace you with people who will co-operate.

SABC also caught up in The New Age drama

The SABC has also been implicated in The New Age’s strong arming, with evidence given the to Public Prosecutor by two other well known figures that appears to corroborate Maseko’s claims. Certainly enough for Madonsela to call for an investigation into government contracts won by The New Age.

The report states the following:

During the course of this investigation, I interviewed Honorable Julius Sello Malema (Mr Malema) to solicit any evidence in support of statements attributed to him in the media relating to the influence of members of the Gupta family.

During the said interview, Mr Malema made the following allegations relating to SABC:

a) That the SABC, previously allowed government departments to communicate with the nation at no cost. This includes instances where Ministers required air time in order to make announcements and launch campaigns; and

b) SABC has since entered into a partnership agreement with The New Age newspaper and government departments, including Ministers are required to pay either SABC, New Age newspaper and/or the relevant partnership to appear on SABC for purposes of communication with the nation.

4.29. The above allegations were confirmed by Minister [of Sports and Recreation, Fikile] Mbalula during an interview with him on this investigation. 4.30. Following the above allegations, I have decided to investigate any contract(s) awarded to the New Age newspaper and/or TNA Media by the SABC.

The investigation into SABC will however form part of the next phase of the investigation

The news that investigations in The New Age, SABC and government advertising will likely be welcomed by many other newspapers, who have seen state advertising spend slashed in recent years.