Mired in Guptagate, Pamensky claims innocence

NICOLA MILTZ AND STEVEN GRUZD

It began when he was named and shamed in former Public Protector Advocate Thuli Madonsela’s 2016 State of Capture Report, implicating him in a highly controversial 2015 coal business scandal.

In an exclusive interview with the Jewish Report, Pamensky said he had applied to the courts to rectify the “factual errors” in the report, which show him in a bad light. He said the report falsely stated he had been subpoenaed by Madonsela, but the new Public Protector, Busisiwe Mkhwebane, has confirmed in writing that a subpoena was not served.

He insists he had “absolutely nothing” to do with the purchase of Optimum Coal Mine by Tegeta, part-owned by the Gupta brother’s Oakbay Investments, a deal dubbed one of South Africa’s most “audacious business hijackings”.

Pamensky said: ”It has been inferred that I was involved with the transaction, but the dates speak for themselves… go back to the dates and the truth will be revealed.”

Pamensky’s name – along with those of many other businessmen and politicians – surfaced in a deluge of leaked correspondence related to the Guptas and their business dealings.

The trove of 100 000-200 000 e-mails making up the #GuptaLeaks – brought to light by investigative journalists from AmaBhungane and Scorpio – details shady deals, exposes huge kickbacks to middlemen, and provides indications of the alarming depth of state capture: buying off prominent politicians, officials and businesspersons to both secure profits and avoid investigation and prosecution.

Pamensky, 43,  was an executive at Blue Label Telecoms, before he joined the board of Gupta-owned Oakbay Resources and Energy as a non-executive director in September 2014, and in December 2014, was appointed to Eskom’s board. Shortly after Lynne Brown became Minister of Public Enterprises in 2014, the Eskom board was stuffed with many Gupta-linked members, including Pamensky.

Pamensky’s role on both boards simultaneously raised conflict of interest issues, as the Guptas stood to make billions supplying coal to Eskom. Fin24 remarked that the sudden appointment of Pamensky to both boards was odd, given the high number of chartered accountants they already had, and his total lack of mining sector experience.

Madonsela wrote: “Mr Pamensky…would have or could have access to privilege (sic) or sensitive information regarding OCH [Optimum Coal Holdings] and various Eskom Contracts”

Pamensky told the Jewish Report: “There was never a real conflict of interest, but a perceived conflict. When I found out from Atul Gupta that they were looking to purchase Optimum Coal, I duly informed Eskom to note the perceived conflict and to please recuse me and not send me any documentation.”

He insists that “Eskom management and not the Eskom board, dealt with the Optimum Coal transaction. “Therefore, I knew nothing about the transaction except what I read in the press. That’s the whole point! All the board members were not aware of the Optimum Coal deal. The only thing the board was informed of was that Optimum Coal was in business rescue.

“If Eskom management never told us, how could I have been involved? Just work it out. We never got privileged information, we never knew,” he claimed. “I had no idea – I wasn’t involved.”

He stated emphatically that people do not understand the structures of the Oakbay Group. “A lot gets lost in translation and becomes confusing,” he said. “It is important to understand that Oakbay Resources and Energy had nothing whatsoever to do with Tegeta at the time of the Optimum deal.

“I sat as an independent non-executive director on Oakbay Resources and Energy Ltd. I never worked for Oakbay Investments (the primary investment vehicle for the Gupta family) or Tegeta or the Guptas. I was never an employee of the Guptas. I sat on the board of a listed company. In other words, I was not given information or insights into any of the Group’s other companies.

In a leaked e-mail from Pamensky to Atul Gupta in November 2015, as the Guptas were supposedly poised for the kill on the Optimum purchase, he wrote: “As I’m at the tail-end of the main acquisition of Optimal (sic) Coal, please ensure that a condition precedent is that the R2bn claim from Eskom is [that it is] withdrawn or it becomes the seller’s problem.

“I’m happy to get involved to assist with this acquisition and monthly monitoring/analysing of all investments from today. I can meet anyone you require. If you need me in India or Dubai to discuss, I’ll meet you there.”

This refers to a disputed R2,1 billion Eskom-imposed fine (related to sub-standard coal supply from 2012) that was reinstated by then Eskom CEO Brian Molefe in June 2015, allegedly in a ploy to force the sale of Optimum to Tegeta.

Optimum was owned by the Swiss-based global mining giant Glencore, run by Jewish Johannesburg-born CEO Ivan Glasenberg. Optimum went into business rescue in August 2015, after Glasenberg flew to South Africa, but failed to resolve a dispute with Eskom.

Optimum was managed in South Africa by Clinton Ephron, who recently made aliya.

This week Pamensky stood firm: “Regarding this 22 November 2015 e-mail, all that I indicated was that the purchaser, Tegeta, (in respect of which I had no financial or other interest or directorship…) should not take on responsibility for the R2 billion claim and this should be the seller’s (Optimum Coal Holdings’) problem.

“My view was that this was an obligation of Optimum Coal Holdings and that OCH would have to address the matter with Eskom, rather than any prospective buyer of its subsidiary, Optimum Coal Mine. I merely suggested this because it seemed to make commercial sense.

“I have never suggested that the obligation be waived or extinguished by Eskom in any way and Eskom’s rights were always to remain intact. Ultimately the new purchasers of Optimum Coal took on this liability.

“No harm was done to Eskom by the expression of my views contained in the mail. On the contrary, I wanted to ensure that the party with an obligation to Eskom retained and discharged its obligation.”

The then Minister of Mining Ngoako Ramatlhodi has alleged that Molefe and Eskom Chairman Ben Ngubane, pressured him to revoke all Glencore’s mining licences. He refused, and was “redeployed” three weeks later, replaced by the Gupta-friendly Mosebenzi Zwane.

Zwane flew to Zurich to meet with Glasenberg, Rajesh (Tony) Gupta and close Gupta associate Salim Essa, according to the State of Capture report. The obvious inference was that the minister was there to midwife the deal.

On December 9 – termed “9/12” – MP Des van Rooyen was suddenly appointed finance minister in place of Nhlanhla Nene, only to in turn be replaced by Pravin Gordhan on December 14, after the JSE shed billions.

The same day, Tegeta finally bought Optimum Coal Holdings for R2,1 billion. The fine was reduced considerably, with generous payment terms. This deal led to contracts to supply ever-larger amounts of overpriced, low-grade coal to Eskom.

In another e-mail to his Oakbay colleagues, Pamensky wrote: “Just for info purposes, but Clinton called me now to make sure that I reply back to you that Ivan is 100% behind the closing of the deal and that Glencore are not behind these press statements.

“ I don’t believe him about the press, but do believe him about the fact theatclosing the deal is important to Glencore. The fact is that Eskom will not deal with Glencore and the business practitioner mentioned same to me. Clinton was really concerned that I relay the message and ensure the deal closes. These guys are not to be trusted in any way, form or shape, but I have to pass on the message.”

This second e-mail, Pamensky insists, was from January 30, 2016, after the transaction was concluded on December  10, 2015.

Pamensky resigned from the Eskom board in December 2016, less than a week after Molefe’s resignation, in the wake of Madonsela’s report. Pamensky also resigned from Oakbay with effect from June 10, 2017.

Clinton Ephron declined to comment.

Well-placed sources say the current revelations are the tip of the iceberg. More as it comes.