amaBhungane | Prasa: The CR17 ‘spy’, the security cabal and the dodgy tenders

• An obscure group of security personnel have been embedded in Prasa’s security division, giving them affect over the company’s large security finances.
• AmaBhungane has been capable of hint plenty of them to President Cyril Ramaphosa’s CR17 marketing campaign, the place a security breach in communications contributed to his marketing campaign funding being investigated by the Public Protector.
• Some even have hyperlinks to security firms whose contracts with Prasa had been discovered to be irregular in the previous.

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A shadowy determine who reportedly has hyperlinks to the State Security Agency (SSA) has been appointed as the performing head of security at the Passenger Rail Agency of South Africa (Prasa). 

Alexio Papadopulo was thrust into the public sphere when News24 reported that key people in President Cyril Ramaphosa’s 2017 ANC management marketing campaign staff suspected him of being the supply of the leaked emails that led to widespread scrutiny of the marketing campaign’s funds – a cost he denies and says he has been cleared of.

Now amaBhungane has established that he’s a part of a cohort of security officers, principally linked to former buildings of uMkhonto we Sizwe (MK) in the Western Cape – at the very least a few of whom seem to have accomplished work for the SSA below former prime spy Arthur Fraser or for Fraser’s non-public intelligence firm, Resurgent Risk Managers.

The security officers seem to have been deployed as a gaggle, first to the CR17 marketing campaign and now to Prasa.

Questions have additionally been raised about their relationship with Prasa board chair Leonard Ramatlakane and Transport Minister Fikile Mbalula.

One went as far as to invoke his affiliation with Ramatlakane and Mbalula to colleagues who had been despatched to seek out him after absconding from work.

This raises the final query as as to if the security staff’s function is to guard Prasa – or to assist seize it?

The mysterious Mr Papadopulo

Papadopulo, a former gross sales worker and later enterprise associate at a Centurion digital items outlet, presents himself as a cybersecurity skilled.

During the run-up to the ANC elective congress in December 2017, he was employed by the CR17 marketing campaign’s head of security, Wally Rhoode, to safe the marketing campaign’s communications.

Papadopulo arrange and managed the marketing campaign’s devoted e-mail server, “alexio.on-line”.

According to News24, after Ramaphosa turned president, Papadopulo labored for him for eight months earlier than reportedly departing amid a “a sequence of confrontations” with Rhoode, who was by then a major-general and head of the presidential safety unit.

The report quoted claims that Papadopulo was “tight with Fraser” and steered he was later suspected by key Ramaphosa operatives of being the supply of leaks of emails from inside the CR17 marketing campaign.

These leaks fashioned a part of proof delivered anonymously to Public Protector Busisiwe Mkhwebane and cited in her July 2019 report which discovered that Ramaphosa did not declare advantages he acquired from donations to his multimillion-rand inner election marketing campaign.

The Public Protector’s report was later put aside by the courts as irrational and with out advantage, however in the meantime the emails leaked to the media, with each News24 and the Independent Media group publishing tales exposing confidential CR17 donations and communications in early August 2019.

A supply who was near Papadopulo throughout the marketing campaign stated it was rumoured that he was “by some means linked to Fraser” and “untouchable because of this connection”.

Papadopulo claims he was cleared of involvement after an investigation into the leaks by the Hawks cybercrimes unit. He confirmed amaBhungane a message from a Hawks officer suggesting he had cooperated with the investigation and was not a suspect.

Papadopulo advised amaBhungane: “Remember, the level of the matter is that I do not know Fraser. The solely time I knew Fraser was when Fraser was additionally helping in the marketing campaign. So that is all I do know of Fraser. In phrases of the relaxation, I’ve no clue of my ‘shut relationship’.”

Fraser didn’t reply to questions from amaBhungane despatched to him by way of a trusted middleman.

A senior determine from the Ramaphosa administration, talking anonymously, advised amaBhungane they didn’t suppose Papadopulo was behind the CR17 leaks.

Rhoode

Papadopulo isn’t the solely particular person to return below suspicion.

A extremely positioned intelligence supply advised amaBhungane that Rhoode beforehand acquired money funds from the SSA or considered one of its covert buildings.

This is known to have included the time throughout which he was contracted to Ramaphosa’s ANC presidential marketing campaign – a time when Jacob Zuma was president and Fraser was working the SSA. There is circumstantial proof suggesting that he had cash issues that may have given him cause to take covert money from the SSA.

In 2019, City Press obtained an SSA letter revealing that Rhoode had been denied prime secret security clearance because of proof of “poor monetary judgement”, as a result of he did not pay tax to SARS and had defaulted on funds to Absa and MTN.

Of additional concern is that Rhoode introduced into the CR17 marketing campaign not solely Papadopulo, however a gaggle of associates and a security firm with whom Rhoode had a chequered historical past.  

Rhoode, who remains to be in command of Ramaphosa’s safety, advised us that “police media protocols” stop him from responding to issues associated to CR17.

He added: “I have to say you elevate intersecting points and want to reply, however cannot.”

The NPA and IPTS

The “intersecting points” and their present-day relevance to Prasa are higher understood in opposition to the backdrop of a questionable 2006 security tender awarded by the National Prosecuting Authority (NPA) to an unknown KwaZulu-Natal-based security firm, Intense Protection and Tourist Services (IPTS)

IPTS was (and remains to be) owned by businessperson Muziwandile “Dalo” Nala.

In late 2011, the Hawks arrested 5 individuals in relation to suspected tender fraud involving the IPTS-NPA contract, together with Rhoode, who was NPA head of security in 2006 earlier than occurring to run security operations for the 2010 FIFA World Cup. 

The others arrested had been Nala and three staff of the NPA: John Maree, Terence Joubert, and Tebogo Sethabela. (Sethabela is now the director of provide chain at the NPA and has a long-pending lawsuit in opposition to his employer for wrongful arrest.)

Rhoode, Joubert, and Maree fashioned a part of a gaggle that led the NPA’s security buildings at the time. The group included Trevor Fredericks, the NPA head of security for the Western and Northern Cape.

Fredericks left the NPA in 2007. In 2015, he was the regional supervisor for Fraser’s Resurgent Risk, the place he was tasked with managing a contract for Prasa in the Western Cape. As we will see Fredericks would reappear in CR17 and later as head of security for Prasa.

Part of the Hawks investigation of the IPTS tender included a search and seizure operation concentrating on Joubert, who was primarily based at the NPA in Durban.

As amaBhungane reported in 2012, controversial particular prosecutor Lawrence Mrwebi, broadly thought to be a key enabler of the ‘capture’ of the NPA below Zuma, was accused of making an attempt, unsuccessfully, to halt the search.

In any occasion, the case went nowhere.

New investigating officers had been appointed resulting in delays and in May 2012 costs had been provisionally withdrawn when the court docket refused to grant one other postponement.

At the time, the NPA advised amaBhungane investigations remained on monitor and the case could be re-enrolled.

That did not occur.

In 2014, costs in opposition to all accused had been withdrawn after reconsideration by a senior industrial crime prosecutor, although notably this truth didn’t emerge publicly till 2019.

Rhoode & Co. be part of CR17

It appears extraordinary that this historical past didn’t elevate questions when Rhoode was introduced on board the CR17 marketing campaign.

Rhoode additionally introduced in Fredericks and one other ex-MK comrade, whose LinkedIn profile reveals he too hung out working for Resurgent, the non-public intelligence firm established by Fraser in 2010 throughout his stint exterior the SSA.

Even extra extraordinary was that CR17, presumably by way of Rhoode, contracted IPTS to offer security to the marketing campaign. The leaked CR17 financial institution statements present IPTS was paid round R10 million between May 2017 and March 2018.   

By then IPTS, its proprietor Nala and one other of his firms, Semele Trading Enterprise, had been already the topic of negative findings in investigations ordered by National Treasury in 2016, following a Public Protector’s report on Prasa.

That set of probes additionally flagged a 2015 Prasa contract awarded irregularly to Resurgent Risk below which some R53 million was paid out, and beneficial that legal motion be taken in opposition to former Prasa officers.

Resurgent appeared each politically embedded and contentious: in May 2017 it launched a R20-million declare in opposition to the ANC for cost for “election help and strategic companies” in the run as much as the 2014 elections.

Yet, none of this appeared to have precipitated even a ripple in the CR17 marketing campaign at the time –  and afterward Prasa was equally unmoved by this historical past.

From CR17 to Prasa

Papadopulo’s re-emergence at Prasa prompted amaBhungane to look intently at the organisation’s security staff.

He was considered one of a gaggle of 9 people given fixed-term contracts in Prasa’s security division in June 2021.

The checklist included Fredericks, then newly-appointed as head of security.

Alongside Papadopulo and Fredericks had been different new security appointees who had labored at CR17. Bank statements present that amongst the 9, at the very least three others had been additionally beforehand a part of the CR17 staff, that means at the very least 5 of the 9.

The appointments had been extremely uncommon and Prasa’s majority union, the United National Transport Union (UNTU), demanded solutions about the appointment course of.   

In an e-mail from UNTU deputy secretary normal Neels Haasbroek to the former head of human sources Thandeka Mabija and different Prasa officers, the union requested an pressing probe into the appointments over issues about hiring processes being side-stepped.

The union needed to know why inner members of the security division had been ignored for these excessive degree positions.

Haasbroek added: “Trevor Fredericks is a pal of the minister and it’s not the first time that he’s appointed as security head. He beforehand declined the provide.

“I request an pressing Forensic Audit relating to these appointments…”

The “minister” was Mbalula, appointed to the transport portfolio in 2019.

Team of 10

Plans for the recruitment of this allegedly hand-picked security staff seem to have gone again so far as October 2020 when Ramatlakane, a veteran Western Cape politician, was appointed the new Prasa chair.

By then severe harm had been accomplished to Prasa infrastructure throughout the Covid lockdown after it was left susceptible when the company cancelled all its irregular security contracts in 2019 with out putting in correct alternate options.

In response, National Treasury had permitted a finances shift of R900 million to care for defending Prasa property in the brief time period – and the new security staff appears to have been introduced in to implement a grand new community-driven security plan, to be led by MK veterans.

AmaBhungane was advised that Prasa executives had been launched to Fredericks and Papadopulo in about mid-October 2020 as individuals being introduced on board allegedly “on a request of shareholder”, that means Mbalula.

In response to a request for remark, the minister’s spokesperson Lawrence Venkile advised amaBhungane to direct questions on “the employment of individuals and procurement issues” to Prasa. (See Mbalula’s full response here.)

By November 2020, Fredericks was being touted for a place as operational security supervisor to help Prasa to develop a security technique.

By 15 December Ramatlakane, the new chair, was emailing a brand new security plan to performing chief government Thandeka Mabija.

The plan reads: “Phase one is to determine the completely different modules of our security plan… A staff has been recognized with huge information of security and rail infrastructure. The staff includes of ten educated and expert individuals from all kinds of security backgrounds. This staff might be deployed into our completely different modules so as to perform the pressing work wanted to repair Prasa security and take care of its infrastructure.”

By that December, Fredericks was already being included in emails (although it is not clear in what capability) and the new security plan was already slated to incorporate the portentously named People’s Responsibility to Protect Project (PR2P).

By February 2021, the then-head of security, General Tebogo Rakau, who had raised objections to the PR2P plan and questioned Fredericks function, had been fired.

By March, Mbalula had introduced the undertaking formally, together with promising that at the very least 80 MK veterans could be appointed as prepare hall coordinators to supervise the 1000’s of paid neighborhood volunteers.

But, as amaBhungane reported, a month later recruitment for the undertaking was placed on maintain as newly appointed chief government officer Zolani Matthews pulled the brakes on its implementation.

By June 2021, although, 9 of Ramatlakane’s 10 security consultants had been appointed.

What of the tenth?

The NPA’s Joubert once more

Following Fredericks’ surprising demise in August 2021, Papadopulo assumed the function of performing head of security and, amaBhungane has established, started pushing the employment of Terence Joubert – although this by no means got here to fruition.

Prasa stated it was not conscious of this.

Recall that Joubert was considered one of the accused in the case involving IPTS, which was withdrawn in 2014.

Meanwhile at the NPA, Joubert was dealing with a brand new spherical of disciplinary costs referring to a 2019 incident wherein an envelope of R30 000 in money was allegedly dropped in his automobile by a relative of Craig Ponnan, an accused in a young fraud case involving former Durban mayor Zandile Gumede.

The NPA declined to prosecute criminally, however just lately advised amaBhungane that Joubert had been discovered responsible of gross dishonesty in a disciplinary listening to and was scheduled to be sanctioned.

Joubert advised amaBhungane he had been arrange and stated he had not circulated his CV for a place at Prasa.

Papadopulo at Prasa

If Fredericks and Papadopulo gathered a well-recognized crew round them at Prasa, then to what objective?

In phrases of the security plan delivered by Ramatlakane, the core staff of 10 was clearly meant to steer the full overhaul of Prasa’s damaged security programs – at a value of tons of of tens of millions of rands.

As early as February 2021, there was info circulating inside Prasa {that a} non-public security firm, the Red Ants, was being consulted about being onboarded as security suppliers, a senior Prasa supply advised amaBhungane.

That course of was all of a sudden accelerated with the outbreak of unrest in KwaZulu-Natal in July 2021.

This resulted in an emergency procurement course of that by its nature bypasses the regular provide chain guidelines.

The emergency course of was initiated two days after the unrest broke out (11 July), when Prasa allegedly acquired “intelligence and info” that its infrastructure could be below assault – in keeping with a memo which units out the rationale and the course of that was adopted.

One supply advised us that Mbalula first raised the challenge a few deliberate assault on Prasa’s infrastructure, and the then-chief government Matthews initiated the emergency procurement.

But, it was Fredericks and Papadopulo who sourced the service suppliers, nearly in a single day, for a R250-million contract.

The memo notes: “Due to the nature of the emergency Prasa company security wanted deployments to provoke instantly and over a interval of 12 hours to be in any respect stations. The two firms that responded and had the capabilities to ship had been IPTS and Red Ants Security.”

IPTS’s historical past with Fredericks & Co. is already properly established.

AmaBhungane isn’t conscious of any proof of an identical prior relationship with the Red Ants, however we’ve got beforehand pointed out that the firm appears politically well-connected.

The Red Ants had been contracted from 11 to 31 July for a staggering R241 million, overlaying Gauteng, KwaZulu-Natal, the Eastern Cape and the Western Cape.

IPTS had been to be paid R7.6 million for companies in KwaZulu-Natal alone.

Acting head

During this era Fredericks fell ailing and Papadopulo took over as performing head of security, compiling and signing on 16 August the addendum memo that included the prices for the riot intervention.

Matthews, the chief government, in flip signed to approve the memo and addendum on 28 August and 9 September respectively – however by October 2021, the contracts had but to be totally paid and the Red Ants issued a letter of demand to Prasa.

According to the letter, Prasa had promised to pay the full R241 million owed to the Red Ants, however that they had solely acquired below R10 million.

The Red Ants’ lawyer advised the Sunday Times at the time: “Prasa confirmed that the job was accomplished appropriately. If there may be presumption of one thing untoward that’s incorrect.”

AmaBhungane understands Papadopulo took a eager curiosity in the excellent funds, a lot in order that it precipitated friction inside the organisation.

Such was the concern with the delay in paying the invoices that insiders declare this performed a job in the board’s determination in February this 12 months to position the chief monetary officer, Lesibana Fosu, on precautionary suspension, although Prasa stated it was for different causes.

Collision programs

Rumours of Fosu’s impending suspension first surfaced in November 2021 when the Sunday Times reported that, after 9 months at the helm, Matthews had been suspended by the board.

The paper steered Fosu might be subsequent in line, as Mbalula and the board had acquired briefs that the CFO was hampering Prasa’s operations as a result of she did not pay invoices on time.

In the article, Fosu is quoted as saying the finance division wouldn’t approve “suspect” invoices: “If that is impeding Prasa operations, at the very least we will make sure that taxpayer cash doesn’t fund irregularities.”

Fosu wouldn’t remark when approached by amaBhungane, however in keeping with insiders she raised questions in relation to the cost of the emergency security contracts.

Communication seen by amaBhungane confirms that Papadopulo pushed for the riot invoices to be paid, however formal issues raised about the emergency procurement course of.

In November an eight-page inner audit report was addressed to Papadopulo.

The report stated the course of to nominate the two security firms was not “truthful and clear” as a result of, for one, there have been different non-public security suppliers who submitted quotations that weren’t thought of.

The report didn’t go into who was accountable, nor did it tackle the value of the contract and if Prasa acquired worth for cash.

Papadopulo advised amaBhungane the solely cause he felt “pressurised” to finalise the funds was due to Public Finance Management Act provisions, which stipulate that public entities ought to pay invoices inside 30 days.

Oddly, on 21 February this 12 months, it was Papadopulo who communicated information of Fosu’s precautionary suspension in an e-mail to Prasa’s senior administration.

“Please ensure that the organisation recognise (sic) that Ms Fosu is suspended and individuals shouldn’t be (sic) copy Ms Fosu into any emails or communications from Prasa,” Papadopulo stated in the e-mail despatched out to administration, together with the performing chief government David Mphelo.

He went on: “Please ensure that… that these directions are understood as I’m at the moment investigating.”

Insiders questioned why the e-mail had come from Papadopulo, not the performing CEO, and steered it demonstrated Papadopulo’s affect.

By then Matthews was out of the image, having been fired as CEO just a few days after his suspension in November 2021.

He was axed for not declaring his twin South African-British citizenship, although this appeared a flimsy pretext for the Ramatlakane board to eliminate him simply eight months into the job.

AmaBhungane has seen proof that Matthews was being pressed to pay the emergency security contracts and to behave in opposition to Fosu, which he appeared reluctant to do.

But in the background was additionally Matthews’ ambivalent function in one other large controversy, the Siyangena contract (see sidebar).

Matthews, who’s present process an arbitration course of with Prasa, refused to remark.

Nothing to see right here 

So what’s going on in Prasa’s security division?

It is value noting that Prasa has lengthy been a useful resource for feeding MK factions and parking spooks.

We ought to recall that in 2019, Daily Maverick revealed that former SSA deep-cover agent Mandisa Mokwena was quietly appointed as strategic advisor to Prasa interim chief government Sibusiso Sithole in September 2018 – and even served as performing head of security till she was changed by Rakau in May 2019.

So, maybe it’s unsurprising that Prasa maintains there was nothing untoward about the appointments of Fredericks, Papadopulo and the others.

Ramatlakane advised amaBhungane the staff had “particular” security expertise and the course of to nominate them was compliant with the firm’s recruitment polices.

Prasa stated that when head-hunting for “vital scarce expertise” there was no must promote positions.

These people would offer the “intelligence-driven response” which Prasa stated would “curb the vandalism of its helpful property and different legal actions which had been discovered to be workings of a legal syndicate”.

“You know that earlier than the group got here, there was completely no info offered [about] the stealing of the cable, this intelligence info was non-existent. That’s considered one of the expertise which might be present in the group and that is what we want,” Ramatlakane advised us.  

By Ramatlakane’s account, Fredericks was the driving pressure behind amending Prasa’s security plan in 2020, which led to the appointment of the security staff and the R200-million community patrol programme (PR2P).

Notably, this was lengthy earlier than Fredericks’ official appointment in mid-2021. So who paid him?

Ramatlakane advised amaBhungane that Fredericks initially refused an provided contract, however as a substitute assisted Prasa with creating its security plan “freed from cost”.

Asked if Fredericks’ involvement in redesigning the security plan whereas not formally employed, with little to no information of the working and security setting didn’t pose a serious security danger, Prasa stated that he labored with the earlier head of security, Rakau, and “helped determine gaps and shortcoming in our programs”.

Ramatlakane defined that when the new board was appointed, the company security plan was in place but it surely was amended to incorporate gadgets resembling the PR2P.

“Rakau couldn’t write this technique to include what we needed to be integrated in company security plan,” he stated, including that the excuse Rakau offered was that, “I’ve not accomplished it earlier than. So you are able to do it”.

The recording

But Rakau denies this.

He maintains Fredericks, removed from working “freed from cost”, was employed on a short-term contract in late 2020, which Rakau claims was at the insistence of then performing CEO Mabija.

Rakau advised amaBhungane that he first acquired sight of the new security technique in a gathering that befell on 16 December 2020 the place these amendments had been mentioned.

In the assembly was board chair Ramatlakane, Mabija, and somebody Rakau had not anticipated: Fredericks.

The cause Fredericks’s presence was a shock was as a result of, shortly after Prasa finalised his contract as an operations security supervisor, he disappeared.

Rakau stated, after Fredericks stopped reporting to work, he wrote to the human sources division to have his wage frozen.

“HR’s response was that I ought to make technique of making an attempt to find him. I despatched individuals to his home and they discovered him however nonetheless he did not come to work,” stated Rakau.

AmaBhungane is in possession of an audio recording of the Prasa delegation’s go to to Fredericks.

In the recording, a contemptuous Fredericks confirms to the officers he has been ignoring Rakau’s cellphone calls.

“I’m in touch with the board chair and the minister. I haven’t got time for him now,” Fredericks is heard saying.

He tells the officers that he’ll inform Mbalula and Ramatlakane that Rakau despatched individuals to search for him and will present them with these people names.

The recording ends with Fredericks saying: “He is smug to ship you, I do know it is acquired nothing to do with you, I used to be provided this submit and I did not need it. That’s what occurred.”

Neither Prasa nor Ramatlakane responded to questions on this incident. Mbalula stated he was not ready to touch upon “rumour”. (See his full response here.)

In February 2021, Rakau was dismissed and, whereas this was overturned by the Labour Court, he selected to settle with Prasa and left in April.

In June, Fredericks was appointed as head of security, however died shortly thereafter.

Papadopulo has been performing in the place since.

Accommodation?

The most attention-grabbing response to queries about the unusual convergence of former CR17 security officers in Prasa got here from somebody in the Ramaphosa Presidency, who agreed to talk to us solely on background.

We had put it to him that the proof we had gathered steered that the SSA had a number of views into the CR17 marketing campaign.

We had identified that in Fraser’s engagement with the Zondo Commission, he requested to be supplied with “a duplicate of the file containing intelligence on His Excellency, President Cyril Matamela Ramaphosa, on his enterprise and political actions in addition to his associates”.

We famous it was subsequently clear that the SSA did certainly spy on Ramaphosa and would have probably continued to take action throughout his election marketing campaign.

We put it to him that it was certainly a matter of concern that a few of the most definitely channels for this surveillance had beforehand embedded themselves at the NPA and latterly at Prasa.

While his responses to those points had been frustratingly indirect, what he appeared to suppose was that we had been being fed “deep intelligence” in a bid to upset the delicate steadiness of forces and pursuits that hold the Ramaphosa presidency afloat.

That response suggests the burning query is whether or not that steadiness consists of an lodging with Arthur Fraser.

The amaBhungane Centre for Investigative Journalism is an impartial non-profit  organisation. We co-publish our investigations, that are free to entry, to information websites like News24. For extra, go to us on www.amaB.org