SARB Group Secretariat

Memorandum

Mr van der Walt

General Counsel and
To :
Head: Legal Services Department

Clivia Ulland
From :
Acting Secretary of the Bank
Our ref. no. : SGS/100233

File ref. no. : 9/1/4/2/6/3

Date : 2023-08-22

Governors’ Executive Committee meeting: 15 August 2023

Please find attached for your information, the FINAL RESOLUTION taken at the
abovementioned GEC meeting.

1. Report on alleged contravention of the Exchange Control Regulations:

Ntaba Nyoni Estates Close Corporation trading as Phala Phala Wildlife

Resolution:

i) The GEC considered and accepted the Final Financial

Surveillance Department Report marked as Annexure A
(attached to the minutes) which, read with this resolution,
constituted the Final SARB Report regarding this matter.

Clivia Ulland
Acting Secretary of the Bank

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Financial Surveillance Department

Report by the
Financial Surveillance Department of the
South African Reserve Bank
into the alleged contravention of the
Exchange Control Regulations:
Ntaba Nyoni Estates Close Corporation
trading as Phala Phala Wildlife

2023-08-08

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Alleged contraventions of the Exchange Control Regulations: Ntaba Nyoni

Estates Close Corporation trading as Phala Phala Wildlife

Table of Contents

Abbreviations 3
1. Introduction 6
2. Scope and purpose 7
3. Information and evidence considered 7
4. Background information 13
5. Preliminary investigation 13
5.1 Request for information to the President 13
5.2 Response by the President to request for information 14
5.3 Request for further particulars 16
5.4 Response to request for further particulars 17
6. Legal framework 19
6.2.1 The Currency and Exchanges Act, 1933 19
6.2.2 The Exchange Control Regulations 20
6.2.3 Delegation of powers 20
6.2.4 Investigation powers 21
6.2.5 Authorised Dealers 21
6.2.6 Exchange Control Regulations and Currency
and Exchanges Manual for Authorised Dealers 22
6.2.7 Declaration of foreign currency by visitors to
South Africa 24
7. Further investigation and engagements 25
8. Conclusions 30

Annexure A
(Summary of versions from persons that FinSurv interacted with)

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For purposes of this report, the following abbreviations are used:

Abbreviation Meaning

Currency and
The Currency and Exchanges Manual for Authorised Dealers
Exchanges Manual

DPCI/Hawks The Directorate for Priority Crime Investigation

The Exchange Control Regulations made in terms of Section 9

of the Currency and Exchanges Act, 1933 (Act No. 9 of 1933)
Exchange Control
were promulgated by Government Notice R.1111 of 1
Regulations/Regulations
December 1961 and amended up to Government Notice No.
R.445 in Government Gazette No. 35430 of 8 June 2012)
The Financial Surveillance Department of the South African
FinSurv/the Department
Reserve Bank

Mr Lesetja Kganyago, Governor of the South African Reserve

Governor
Bank
Messrs Harris Nupen Molebatsi Incorporated Attorneys.
HNM Attorneys Attorneys of record for the President and Ntaba Nyoni Estates
Close Corporation trading as Phala Phala Wildlife
Mr Arthur Joseph Peter Fraser. A former Director General of
Mr Fraser
the State Security Agency

Mr Harris Mr Peter Harris of HNM Attorneys

Mr Hazim Mr Hazim Mustafa Mohamed Ibrahim

Mr Paul Louw, Manager: Customs within the Air Modality

Mr Louw
Division of the South African Revenue Service

Mr Ndlovu Mr Dumisani Sylvester Ndlovu

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Abbreviation Meaning

Mr Calvin Edward Pitts, Manager: Customs within the Air

Mr Pitts
Modality Division of the South African Revenue Service

Mr Hendrik Efraim von Wielligh. The General Manager of Ntaba

Mr von Wielligh
Nyoni Estates CC trading as Phala Phala Wildlife
Ms Salome Msiska. A Financial Controller employed by Ntaba
Ms Msiska Nyoni Estates Close Corporation trading as Phala Phala
Wildlife
Ntaba Nyoni Estates Ntaba Nyoni Estates Close Corporation trading as Phala Phala
CC/Phala Phala Wildlife Wildlife
Phala Phala farm is the fixed property owned by The Tshivase
Phala Phala/Phala Phala
Trust on which Ntaba Nyoni Estates Close Corporation trading
farm
as Phala Phala Wildlife conducts its business
The Office of the Public Protector of the Republic of South
PPSA
Africa
Mr Matamela Cyril Ramaphosa, the President of the Republic
President of South Africa. Sole member of Ntaba Nyoni Estates Close
Corporation

SAPS South African Police Service

SARB South African Reserve Bank

SARS South African Revenue Service

The owner of the land on which Phala Phala Wildlife conducts

Tshivase Trust its business. The President is both a trustee and beneficiary of
this trust
In relation to any matter contemplated by the Exchange Control
Treasury Regulations, means the Minister of Finance or an officer in the
Department of Finance who, by virtue of the division of work in

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Abbreviation Meaning

that Department, deals with the matter on the authority of the

Minister of Finance

Werksmans Incorporated Attorneys. FinSurv’s external legal

Werksmans Attorneys
advisors in this matter

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1. Introduction

1.1 On or about 2022-06-01, Mr Fraser, a former Director-General of the State

Security Agency, filed an affidavit with the SAPS, in which he requested that
the President be investigated.

1.2 Mr Fraser alleged, in his affidavit, that the President acted “in contravention
of the Prevention of Organised Crime Act 121 of 1998 . . . [as well as] the
Prevention of Corrupt Activities Act 12 of 2004” and that the President’s
conduct amounted to “contraventions of our various fiscal, currency and
exchange control and custom and excise and (sic) regulations.”

1.3 For purposes of this report by the FinSurv of the SARB (this Report), having
regard to the SARB’s mandate as hereafter addressed, the allegations
against the President were that he received and kept at his premises,
without declaring to the relevant authorities, foreign currency in the form of
United States Dollar (USD). Mr Fraser alleges that he became aware of this
because, on 2020-02-09, there was a housebreaking incident at the
President’s main house at the Phala Phala farm and that the foreign
currency in question was stolen.

1.4 Details of the allegations made by Mr Fraser to the SAPS began circulating
in the media almost immediately and the matter also came to the attention
of the SARB, which conducted its own investigation into the matter.

1.5 The investigation by the SARB was conducted by the FinSurv's Compliance
and Enforcement Division. Pursuant to this investigation by the Compliance
and Enforcement Division and legal advice obtained in relation to the
investigation conducted in this matter, namely the alleged contravention of
Exchange Control Regulation 6(1), FinSurv has prepared this Report, which
constitutes FinSurv's findings in relation to the alleged contravention of the
Exchange Control Regulations by Ntaba Nyoni Estates CC.

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1.6 Where this Report refers to documents or information gathered and

evidence considered, including transcripts of interviews, these documents,
other information and evidence are not attached to this Report, so as not to
overburden the Report, but are documents, information and evidence which
are in the possession of FinSurv and has been considered and relied upon
by FinSurv, in the preparation of this Report.

2. Scope and purpose

2.1 This Report deals only with the alleged contravention of Exchange Control
Regulation 6(1) in respect of foreign currency allegedly stolen from the
President’s residence at the Phala Phala farm on 2020-02-09. This is the
applicable Exchange Control Regulation in relation to the declaration of
foreign currency within 30 days after becoming so entitled to an Authorised
Dealer and/or FinSurv.

2.2 Therefore, the scope and purpose were limited to whether there were
‘exchange control violations’. Other matters and whether they may relate to
the breach of any other law or otherwise are matters which are to be
addressed by the relevant authorities and/or regulatory bodies and not
FinSurv and FinSurv exercises no authority or mandate in relation thereto.

3. Information and evidence considered

For purposes of this Report, FinSurv considered various documents, other

information and evidence including the following:

No. Date Description

3.1 2022-06-01 Affidavit deposed to by Mr Fraser

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No. Date Description

3.2 2022-06-03 Letter from the Leader of the Official Opposition:

Parliament of RSA to the Governor and the response
thereto
3.3 2022-06-06 Letter from Action SA to the Governor and the
response thereto
3.4 2022-06-28 Letter from EFF to the Governor re Phala Phala -
Affidavit by Mr Fraser regarding the trespassing and
housebreaking that occurred at the Phala Phala
attached and the response thereto
3.5 2022-09-01 Email from Isighungu Sabasha to the Governor and the
response thereto
3.6 2022-08-22 Letter from Hon M J Maswanganyi, MP
Chairperson: Standing Committee on Finance
Parliament of the Republic of South Africa and the
response thereto
3.7 N/A Cross-border foreign exchange transaction records in
the name of Ntaba Nyoni Estates Close Corporation
3.8 N/A Cross-border foreign exchange transaction records in
the name of Tshivase Trust
3.9 N/A Cross-border foreign exchange transaction records in
the name of Mr Hazim
3.10 N/A Cross-border foreign exchange transaction records in
the name of Mrs Bianca Odonoghue
3.11 N/A Cross-border foreign exchange transaction records in
the name of the President
3.12 N/A Cross-border foreign exchange transaction records in
the name of Mr Ndlovu
3.13 N/A Cross-border foreign exchange transaction records in
the name of Mr Von Wielligh

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No. Date Description

3.14 2022-06-20 Letter to HNM Attorneys re exchange control

compliance audit
3.15 2022-08-10 Affidavit deposed to by the President at the request of
SARB
3.16 2019-12-25 Acknowledgement of receipt of USD580 000 to
Mr Hazim
3.17 2022-08-25 Letter to HNM Attorneys to request further particulars

3.18 2022-09-20 Letter from HNM Attorneys regarding unsigned version

of Mr Ndlovu's affidavit
3.19 2022-09-22 Letter from HNM Attorneys in response to letter dated
2022-08-25 (with affidavits attached)
3.20 2022-09-22 Supplementary affidavit of the President at the request
of SARB
3.21 2022-09-22 Affidavit deposed to by Mr von Wielligh at the request
of SARB
3.22 Undated Statement of Mr Hazim at the request of SARB

3.23 Undated Unsigned sworn statement of Mr Ndlovu at the request

of SARB
3.24 2022-10-04 Sworn statement of Mr Ndlovu at the request of SARB

3.25 2022-11-24 Letter to HNM Attorneys to request clarity on certain

issues addressed by the President as well as
additional information
3.26 2022-12-15 Email from HNM Attorneys in response to letter dated
2022-11-24

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No. Date Description

3.27 N/A The Exchange Control Regulations made in terms of

Section 9 of the Act were promulgated by Government
Notice R.1111 of 1 December 1961 and amended up
to Government Notice No. R.445 in Government
Gazette No. 35430 of 8 June 2012)
3.28 N/A Currency and Exchanges Manual for Authorised
Dealers
3.29 2022-11-30 Report of the Section 89 Independent Panel –
Parliament of the Republic of South Africa
3.30 Undated Submissions made by the President, in terms of Rule
129G(1)(C)(iii) of the National Assembly Rules, to the
Independent Panel appointed in terms of Rule 129D of
the National Assembly Rules
3.31 2023-03-16 Letter to DPCI to request information

3.32 2022-07-19 Affidavit deposed to by Mr von Wielligh at the request

of DPCI
3.33 2022-08-19 Second affidavit deposed to by Mr von Wielligh at the
request of DPCI
3.34 2022-08-19 Third affidavit deposed to by Mr von Wielligh at the
request of DPCI
3.35 2022-10-24 Affidavit deposed to by Mr Ndlovu at the request of
DPCI
3.36 2022-12-10 Affidavit deposed to by Mr Hazim at the request of
DPCI
3.37 2022-10-05 Letter from SARS regarding the declaration of foreign
currency by Mr Hazim upon his arrival supported by
affidavit of Mr P Louw
3.38 2022-10-25 Letter from SARS to request information regarding
Mr Hazim

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No. Date Description

3.39 2022-11-21 Email to SARS to furnish statement of Mr Hazim

3.40 2023-04-26 Letter from SARS relating to the document provided by

Mr Hazim
3.41 2022-08-31 Letter from the Public Protector South Africa regarding
allegations of a violation of the executive ethics code
by the President of the Republic of South Africa Mr MC
Ramaphosa
3.42 2022-09-01 Letter to the Public Protector South Africa in response
to letter dated 2022-08-31
3.43 2022-09-26 Email from the Public Protector South Africa requesting
meeting with FinSurv and the response thereto
3.44 2022-10-07 Subpoena in terms of section 7(4)(a) of the Public
Protector Act, 1994 (Act No. 23 of 1994)
3.45 2022-10-17 Letter to the Public Protector South Africa in response
to subpoena dated 2022-10-07
3.46 2022-10-17 Email from Public Protector South Africa in response to
letter dated 2022-10-17
3.47 2023-02-14 Transcript of first interview with Mr von Wielligh

3.48 2023-02-21 Transcript of interview with Mr Ndlovu

3.49 2023-03-28 Transcript of interview with the President

3.50 2023-04-11 Transcript of second interview with Mr von Wielligh

3.51 2023-04-11 Transcript of interview with Ms Msiska

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No. Date Description

3.52 2023-02-02 Letter from Werksmans Attorneys to HNM Attorneys to

request to interview Messrs Hazim, Ndlovu and von
Wielligh
3.53 2023-02-03 Letter from HNM Attorneys to Werksmans Attorneys to
advise that they are not in position to arrange an
interview with Mr Hazim
3.54 2023-02-07 Letter from Werksmans Attorneys to Mr Hazim to
request an interview
3.55 2023-02-09 Letter from Werksmans Attorneys to Mr Hazim to
follow up re letter dd 2023-02-02
3.56 2023-02-21 Email from Werksmans Attorneys to Mr Hazim to follow
up re letters dated 2023-02-07 and 2023-02-09
3.57 2023-03-03 Letter from Werksmans Attorneys to HNM Attorneys
requesting assistance to contact Mr Hazim
3.58 2023-03-06 Email from HNM Attorneys to Werksmans Attorneys in
response to letter dated 2023-03-03 to confirm that
they are taking instructions
3.59 2023-03-10 Letter from HNM Attorneys to Werksmans Attorneys to
advise that they are unable to assist in contacting
Mr Hazim
3.60 2023-03-08 Statement by Mr Hazim at the request of SARS

3.61 2023-04-17 Affidavit deposed to by Mr Pitts of SARS

3.62 2023-05-02 Email from Werksmans Attorneys re discussion with

Mr Hazim

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4. Background information

4.1 During the first week of June 2022 media reports emerged around
Mr Fraser’s allegations to the SAPS and written complaints were also
received by the Governor from the Leader of the Official Opposition in
Parliament, i.e., the Democratic Alliance (DA), ActionSA, the Economic
Freedom Fighters (EFF), Isighungu Sabasha (a non-profit organisation) as
well as the Standing Committee on Finance of the Parliament of the
Republic of South Africa.

4.2 FinSurv carried out an initial inquiry by extracting data from its databases to
ascertain whether the parties involved had made declarations or engaged
in transactions involving foreign currency, and whether any approvals or
exemptions had been granted. The investigation primarily centered on the
individuals mentioned in Mr Fraser's allegations to the SAPS. The results of
the investigation were negative, as no records were found indicating that
any exemptions had been granted or that the aforementioned parties had
made significant declarations of, or exchanges involving foreign currency.

4.3 In light of the complaints received by the SARB and the absence of any
evidence of exemptions or noteworthy foreign currency transactions
involving the individuals in question during the preliminary investigations, it
was deemed necessary to consider this matter further. As a result, a formal
case was initiated on 2022-06-08, to undertake a more comprehensive
inquiry into the matter at hand.

5. Preliminary investigation

5.1 Request for information to the President

5.1.1 On 2022-06-20, a letter was addressed to HNM Attorneys, requesting their

client, the President, in terms of the provisions of Exchange Control
Regulation 19, to provide FinSurv with a sworn statement or solemn

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declaration containing all information relevant to the foreign currency in

question, including, inter alia, the following:

5.1.1.1 “the exact amounts of foreign currency that were held at and stolen from
Phala Phala Wildlife farm;

5.1.1.2 confirmation as to whether any of the relevant foreign currency was

recovered and, if so, the amount recovered;

5.1.1.3 full particulars as to the underlying reason or transaction(s) leading to the

said foreign currency being kept at the premises of Phala Phala Wildlife
farm, supported by certified copies of all relevant documentation;

5.1.1.4 full details of the person who initially took possession of the foreign currency,
the capacity in which he/she acted when doing so, how, where and when
possession was taken and the person from whom it was received; and

5.1.1.5 a detailed family tree depicting the ownership structure of Phala Phala
Wildlife farm.”

5.2 Response by the President to the request for information

5.2.1 On 2022-08-10 HNM Attorneys provided FinSurv with an affidavit deposed

to by the President in response to the request of 2022-06-20. The pertinent
details were essentially as follows:

5.2.1.1 Phala Phala farm is owned by the President’s family Trust, The Tshivase
Trust.

5.2.1.2 Phala Phala Wildlife is the operating name of Ntaba Nyoni Estates CC,
which is a game ranching operation that conducts business at the Phala
Phala farm. The President is the sole member of Ntaba Nyoni Estates CC,
which business is managed and run by its employees.

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5.2.1.3 Phala Phala Wildlife breeds and farms a variety of animals, including
buffaloes. Animals bred on the farm are routinely sold through auctions or
private out-of-hand sales.

5.2.1.4 During 2019 the President had a discussion with the General Manager of
Phala Phala Wildlife, Mr von Wielligh, regarding the disposal of certain sub-
standard buffaloes which were kept in Camp 6. Their thinking at the time
was that the buffaloes should be sold as a parcel (rather than individually or
having them hunted) because that made better financial sense. The
President knew of potential buyers from the Middle East and other African
countries and advised Mr von Wielligh accordingly.

5.2.1.5 One of the potential buyers identified was a Sudanese citizen,

Mr Hazim who visited the Phala Phala farm on 2019-12-25 where he was
met by a certain Mr Ndlovu, the acting Lodge Manager, who assisted him in
the absence of Mr von Wielligh, who was on leave at the time.

5.2.1.6 After being shown a specific ‘parcel’ of animals in Camp 6, Mr Hazim

selected 20 animals which he was interested in. Mr Hazim handed
USD580 000 in cash to Mr Ndlovu as payment for the buffaloes he had
selected. Mr Ndlovu upon receipt of the money gave Mr Hazim a document
printed on a Phala Phala Wildlife letterhead, which reads as follows:

“This is to certify that

I Sylvester Ndlovu
Received a sum of $580 000 US Dollars from Mr Hazim on 25 December
2019 at Phala Phala Wildlife for the payment of 20 Buffaloes from Camp 6”.

5.2.1.7 The President visited Phala Phala Wildlife on 2019-12-26 and was
appraised by Mr Ndlovu of what had transpired with Mr Hazim on
2019-12-25. Mr Ndlovu relayed to the President that: ”Mr Hazim showed

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interest in the buffalo and told Mr Ndlovu that he wanted to close the deal
and buy the buffalo. Mr Hazim handed over US$580, 000 in cash to
Mr Ndlovu, as payment for the buffalo”.

5.2.1.8 The President then informed Mr Ndlovu that he was proceeding directly to
Cape Town the following day, and because Mr von Wielligh was away at the
time, the money should be kept at the Phala Phala farm until his next visit,
when he “would have an opportunity to brief Mr von Wielligh to enable him
to process the transaction and have the money banked following that.”

5.2.1.9 On 2020-02-10, whilst abroad, the President was notified by Mr von Wielligh
of a security breach that had taken place at the Phala Phala farm the
previous day. Following this, Mr Ndlovu also reached out to the President,
conveying that the funds received from Mr Hazim had been stolen.

5.2.1.10 It was not unusual for transactions of this nature to be concluded on the
basis that payment is made and invoices only generated once all the various
regulatory processes and logistical arrangements have been made.

5.2.1.11 None of the stolen funds were recovered and there were ongoing
discussions with Mr Hazim on the best way to address the matter.

5.3 Request for further particulars

5.3.1 The President's response required further clarifications and additional

details were required for FinSurv to make a determination on whether or not
there had been an exchange control violation. Consequently, a subsequent
letter was dispatched to HNM Attorneys on 2022-08-25, requesting the
President to furnish additional information, including:

5.3.1.1 a sworn statement or solemn declaration deposed to by Mr Hazim,

confirming the correctness of the President’s affidavit insofar as it referred
to him and addressing further additional information;

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5.3.1.2 a supplementary affidavit by the President addressing, inter alia, the

authority of Mr Ndlovu to enter into and bind Ntaba Nyoni Estates CC to the
relevant agreement of sale with Mr Hazim, confirmation regarding whether
or not the USD580 000 constituted the full purchase consideration and
whether the price was fair and market related, confirmation that the amount
of USD580 000 was the only money stolen from Phala Phala on 2020-02-09
and the reasons why the foreign currency remained unbanked from the date
of receipt to the date of the theft;

5.3.1.3 a sworn statement or solemn declaration deposed to by Mr Ndlovu

confirming, inter alia, the matters addressed in the President's affidavit
insofar as it related to him and addressing his involvement in the sale of
buffalo to Mr Hazim; and

5.3.1.4 a sworn statement or solemn declaration deposed to by Mr von Wielligh

confirming, inter alia, the matters addressed in the President's affidavit
insofar as it related to him and his knowledge pertaining to the events which
transpired in relation to the sale of buffalo to Mr Hazim.

5.3.2 This additional information and further affidavits and statements were
received on 2022-09-22. This included a supplementary affidavit by the
President, an affidavit by Mr von Wielligh, a signed statement by Mr Hazim
and an unsigned sworn statement by Mr Ndlovu which was subsequently
supplemented by a signed sworn statement.

5.4 Response to request for further particulars

5.4.1 As a result of the information including affidavits, statements and further

documentation provided to FinSurv the position as at 2022-09-22, can be
summarised as follows:

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5.4.1.1 During 2019, the President and Mr Von Wielligh had a discussion, and
decided that certain lower quality buffaloes, located in Camp 6 on the Phala
Phala farm ought to be sold as a ‘parcel’ as opposed to be hunted or
auctioned off.

5.4.1.2 The President was aware of potential buyers and towards the end of 2019,
undertook to find potential buyers for the buffaloes.

5.4.1.3 On 2019-12-25 Mr Hazim arrived at the Phala Phala farm. Upon his arrival,
he was taken to Camp 6, which contained the buffaloes that were to be sold.
On Mr Hazim’s version, he identified 20 buffaloes that he was happy with.
Mr Ndlovu advised him that the price per buffalo was R400 000. Mr Hazim
considered this amount to be reasonable and in order to secure the 20
buffaloes that he was interested in, he gave USD580 000 to Mr Ndlovu.
Mr Ndlovu’s evidence is that at the day’s exchange rate, this equated to
approximately R8 000 000.

5.4.1.4 On Mr Hazim’s version he gave the USD580 000 as a security deposit. It

would be used as payment for the buffaloes only once he had secured end-
buyers and relayed that information to Phala Phala Wildlife. Neither the
President nor Mr Ndlovu mentioned the condition regarding end-buyers in
their affidavits.

5.4.1.5 According to the President and Mr Ndlovu, the purchase could not be
finalised until the necessary approvals were obtained and further processes
were undertaken.

5.4.1.6 Mr Ndlovu provided Mr Hazim with a ‘note’ to record the fact that he had
received the USD580 000 in cash from him.

5.4.1.7 Mr Ndlovu stored the funds in the safe at the Phala Phala farm and informed
the President on 2019-12-26 of what had transpired the previous day. The
President advised Mr Ndlovu that the money could only be dealt with upon

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his return to the Phala Phala farm when he would “have the transaction
discussed and processed with Mr von Wielligh.”

5.4.1.8 On or about 2019-12-30 Mr Ndlovu decided to move the foreign currency

from the safe (to which many employees had access and which was used
for general storage purposes at the Phala Phala farm) to a bedroom in the
President’s house on the Phala Phala farm (which he considered to be a
safer place) and hid it under the cushions of a sofa, for fear of same being
stolen while he would be on leave.

5.4.1.9 On 2020-02-10 it was discovered that the President’s house had been
broken into and the foreign currency stolen.

5.4.1.10 As a result of the theft and other factors, including Covid-19, the animals
were not delivered to Mr Hazim.

6. Legal framework

6.1 At this point it is useful to refer to the legal framework applicable to exchange
controls and in particular the holding of foreign currency by a South African
resident, as this will inform the consideration of the matter at hand.

6.2 For the purposes of this Report, the following are highlighted:

6.2.1 The Currency and Exchanges Act, 1933 (Act No. 9 of 1933)

6.2.1.1 Section 9 of the Currency and Exchanges, 1933 (Act No. 9 of 1933) (the
Act) is the foundation of exchange controls in South Africa. Section 9(1) of
the Act provides that:

(i) “The Governor-General may make regulations in regard to any matter

directly or indirectly relating to or affecting or having any bearing upon
currency, banking or exchanges.”

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6.2.1.2 By virtue of the definition clause of the Interpretation Act, 1957 (Act No. 33
of 1957), the ‘Governor-General’ today means the President of the Republic
of South Africa.

6.2.2 The Exchange Control Regulations

6.2.2.1 The Exchange Control Regulations made in terms of section 9 of the Act
were promulgated by Government Notice R.1111 of 1 December 1961 and
amended up to Government Notice No. R.445 in Government Gazette No.
35430 of 8 June 2012.

6.2.3 Delegation of powers

6.2.3.1 In terms of the Exchange Control Regulations, the control over South
Africa’s foreign currency reserves as well as the accruals and spending
thereof is vested in the Treasury. The Treasury is defined in the Exchange
Control Regulations as:

“In relation to any matter contemplated in these Regulations, the Minister of

Finance or an officer in the Department of Finance who, by virtue of the
division of work in that department, deals with the matter on the authority of
the Minister of Finance.”

6.2.3.2 The responsibility for exchange control policy vests with the Minister of
Finance, who delegated certain powers and functions to designated officials
of the SARB in terms of Exchange Control Regulation 22E, which reads as
follows:

“22E Delegation of powers

(1) The Minister of Finance may delegate to any person any power or
function conferred upon the Treasury by any provision of these Regulations
or assign to any such person a duty imposed thereunder to the Treasury.”

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6.2.3.3 Treasury has specifically delegated to the Governor, a Deputy-Governor,

the Head of the Department, as well as various other officials in the
Department, certain powers, functions and duties assigned to and imposed
upon the Treasury under the Exchange Control Regulations.

6.2.4 Investigation powers

6.2.4.1 The SARB (through FinSurv) is empowered to conduct investigations or to

appoint investigators under Exchange Control Regulation 19, which reads
as follows:

“(1) The Treasury, or any person authorised by the Treasury, may order any
person to furnish any information at such person's disposal which the
Treasury or such authorised person deems necessary for the purposes of
these Regulations and any person generally or specifically appointed by the
Treasury for the purpose may enter the residential or business premises of
a person so ordered and may inspect any books or documents belonging
to, or under the control of such person.”

6.2.5 Authorised Dealers

6.2.5.1 Treasury appointed certain commercial banks to act as ‘Authorised Dealers

in foreign exchange’ which gives them the right to buy and sell foreign
currency, subject to the conditions and within the limits prescribed by
FinSurv. The Authorised Dealers are not agents of FinSurv but act on behalf
of their clients in regard to exchange control issues. They also act on behalf
of their clients in seeking approvals from FinSurv for such clients.

6.2.5.2 An Authorised Dealer is not authorised to give permissions as contemplated

in the Exchange Control Regulations and is not “a person authorised by the
Treasury” as referred to in the Exchange Control Regulations, for example
in Exchange Control Regulation 3. An Authorised Dealer is, by virtue of its
appointment as such by the Minister of Finance, entitled to administratively

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implement the permissions as provided for in the Currency and Exchanges

Manual, referred to below. The Currency and Exchanges Manual is updated
and amended from time to time to reflect changes in general permissions
granted, changes in conditions to which permissions are subject, and
administrative instructions to Authorised Dealers.

6.2.5.3 Applications for permission to carry out foreign exchange transactions

received by Authorised Dealers from their clients are dealt with by them if
the applications fall within the parameters outlined in the Currency and
Exchanges Manual, without reference to FinSurv. When, however, an
application falls outside the ambit of the general permissions dealt with in
the Currency and Exchanges Manual, the application must be referred to
FinSurv, by the Authorised Dealer on behalf of its client. Such application is
then dealt with by FinSurv, as set out below.

6.2.6 The relevant provisions of the Exchange Control Regulations and

Currency and Exchanges Manual for Authorised Dealers

6.2.6.1 Exchange Control Regulations 6

(i) Exchange Control Regulation 6, inter alia, provides as follows:

“(1) Every person resident in the Republic who becomes entitled to sell or
to procure the sale of any foreign currency, shall within thirty days after
becoming so entitled, make or cause to be made, a declaration in writing of
such foreign currency to the Treasury or to an authorised dealer.
2) Every person resident in the Republic who becomes entitled to assign or
to procure the assignment of any right to receive outside the Republic, in
respect of any credit or of any balance at a bank, payment of any amount in
a foreign currency shall, within thirty days after becoming so entitled, make
or cause to be made, a declaration in writing of such right to the Treasury
or to an authorised dealer.

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(3) Any person who has, in terms of sub-regulation (1) or (2), made a
declaration in writing to the Treasury or to an authorised dealer, shall be
deemed to have offered such foreign currency or such right, as the case
may be, for sale to the Treasury or to such authorised dealer and the
Treasury or such authorised dealer may purchase such foreign currency or
such right at a price which, in the case of foreign currency, shall not be less
than the market value of that currency on the day of purchase and, in the
case of a right, shall be such as the Treasury may fix.
(4) Any person from whom the Treasury or an authorised dealer purchases
foreign currency or a right in terms of this regulation shall do all things
necessary for the purpose of transferring that foreign currency or assigning
that right to the Treasury or to such authorised dealer.
(5) No person who is entitled (whether actually or contingently) to receive a
payment in a foreign currency shall, except with permission granted by or
on behalf of the Treasury and in accordance with such conditions as may
be imposed by the Treasury or on its behalf do, or refrain from doing, any
act with intent to secure that –
(a) the receipt by him of the whole or any part of the payment in such
currency is delayed.
(b) the payment ceases, in whole or in part, to be receivable by him or
receivable in that currency.
(c) the contingency on which the right to receive payment as aforesaid
is dependent (including the declaration of a dividend or profit by a
company in which such person has an interest), does not eventuate.
(6) Any foreign currency or any right in respect of which a declaration has
been made in terms of sub-regulation (1) or (2) but which has not been
purchased by the Treasury or by a person authorised by the Treasury to act
under this regulation shall not be sold, transferred or otherwise disposed of
without the permission of the Treasury and in accordance with such
conditions as the Treasury may impose.”

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6.2.6.2 The Currency and Exchanges Manual for Authorised Dealers

(i) Section B.5: Introduction of foreign currency by foreign nationals

Section B.5(A)(iii)(b) provides that foreign visitors (tourists) to South Africa

may introduce foreign currency in any amount and in any form (e.g., foreign
bank notes, travellers cheques).

(ii) Section B.18: Control of Exports – General

Section B.18(A)(i) provides that Authorised Dealers must ensure that all
exporters are aware of their legal obligation in terms of the provisions of
Regulations 6, 10 and 11 offer for sale to an Authorised Dealer the full
foreign currency proceeds within 30 days after becoming entitled thereto or
deal with it in accordance with the rules applicable to the Customer Foreign
Currency accounts.

(iii) Section B.20: Acceptance of foreign bank notes and foreign currency
travellers’ cheques

Section B.20, inter alia, provides that foreign bank notes or other foreign
currency instruments such as traveller’s cheques may be accepted in
payment of exports and services rendered subject to the condition that
exporters receiving payment in this manner must, declare and offer for sale
such foreign currency to an Authorised Dealer not later than the following
business day after acquisition thereof.

6.2.7 Declaration of foreign currency by visitors to the Republic of South

Africa

6.2.7.1 The Exchange Control Regulations place no obligation on non-residents

visiting the Republic to declare any foreign currency that they may have in
their possession on arrival.

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7. Further investigation and engagements

7.1 Based on the information, documentation and evidence received and

considered as at 2022-09-22 and as addressed above, FinSurv then
considered this in conjunction with the legal framework applicable to
exchange controls and legal advice and determined that further information,
evidence and investigation would be required in order to conclude the
investigation into this matter and in particular whether the agreement for the
sale of the 20 buffalos was concluded on 2019-12-25, but the obligations to
pay and deliver the buffalo were subject to conditions; or whether the
conclusion of the agreement itself was subject to conditions. In this regard
and on 2022-11-22 further correspondence was addressed to
HNM Attorneys requesting further information and clarification from the
President and others.

7.2 HNM Attorneys responded to the aforementioned request on 2022-12-15.

With regard to the pertinent issue of the nature of the agreement concluded
with Mr Hazim, FinSurv were advised, inter alia, that:

7.2.1 “Mr Hazim and Mr Ndlovu did not conclude an agreement for the sale of the
buffalos on 25 December 2019. That is because Mr Ndlovu needed to obtain
approval on the correctness of the pricing for each buffalo from Mr von
Wielligh. Some of the animals were older and some were younger; a
detailed schedule of these would have been available to Mr von Weilligh,
but was not readily available at the time to Mr Ndlovu, and Mr von Wielligh
would have been best placed to confirm the best price for each animal.
Instead, Mr Hazim paid the money to Mr Ndlovu to secure the buffalos, but
on the understanding that the agreement was subject to the following
conditions:

7.2.1.1 that the final total price had to be confirmed; and

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7.2.1.2 that several administrative steps needed to be successfully completed in

order to arrange for export and delivery. The outcome of this process was
in itself subject to various tests and veterinary procedures that had to be
undertaken. These include:

(i) Notifying the State Vet about the buffalos that are intended to be sold so
that they can arrange to bleed (extract blood samples) the buffalos for
purposes of testing them for all controlled diseases (e.g. tuberculosis,
brucellosis) before the movement date.

(ii) Bleeding the buffalos at Phala Phala Wildlife on a date agreed to with the
State Vet. The Phala Phala Wildlife Private Vet is asked to be present when
the State Vet comes to the Phala Phala farm in order to assist in the bleeding
of the buffalos. The Private Vet assists in darting the buffalos and moving
them to the quarantine facility. The bleeding and the movement of the
buffalos to the quarantine facility will all happen on the same day.

(iii) The buffalos will stay in quarantine (separate facility on the Phala Phala
farm) until the blood results are confirmed negative (i.e. the buffalos are
found not to have a disease) for all the diseases tested.

(iv) Once the test results are received from Onderste-Poort (state veterinary
facility) and the buffalos are found to have a disease, Phala Phala Wildlife
would not be able to conclude the agreement. However, if the test results
are negative, then the State Vet is informed accordingly and advised that
the buffalos can be moved to the new location (destination).

(v) The State Vet will require the negative test results and start the application
process to move the buffalos to their final destination.

(vi) Once the State Vet from the final destination approves the importation of the
buffalos to their new location, the local State Vet will notify Phala Phala

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Wildlife that the intended movement has been approved and that
arrangements can be made for the final movement process.

(vii) Phala Phala Wildlife will then apply for a transportation permit at the
Department of Agriculture.

(viii) Once the final transportation permit is received from the Department,
arrangements for the transportation of the buffalos can commence.

(ix) The loading of the buffalos will be done with the help of the Phala Phala
Wildlife Private Vet. The State Vet will also be present to seal the truck
(compartments) once all the buffalos are loaded onto the truck. The State
Vet will then provide the transporter with a Red Cross (X) permit to transport
the buffalos legally.

(x) The State Vet on the receiving side will be present when all the buffalos are
offloaded and will break the seals and check that the red cross permit is
correct.

(xi) This whole process can take between 3 to 18 months depending on the
destination. As a result of this, it is not uncommon for buffalos to stay on the
Phala Phala farm of the seller for even longer periods of time.”

7.3 In January 2023 and after considering the responses received, FinSurv
proceeded to conduct interviews with:

7.3.1 Mr von Wielligh on 2023-02-14;

7.3.2 Mr Ndlovu on 2023-02-21;

7.3.3 a further interview with Mr von Wielligh on 2023-04-11;

7.3.4 the President on 2023-03-28; and

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7.3.5 Ms Msiska on 2023-04-11.

7.4 Despite FinSurv's efforts, it was unable to secure an interview with

Mr Hazim.

7.5 Based on the information gathered, the interviews conducted and the
evidence available to FinSurv, it is apparent that there are certain
inconsistencies and non-alignment in the evidence that is relevant to the
question which FinSurv must address i.e., whether a right to the foreign
currency had accrued to Ntaba Nyoni Estates CC or not. What is however
clear, both from the information and evidence gathered from the President,
Mr Ndlovu and Mr von Wielligh on the one hand, and the evidence of
Mr Hazim on the other, is that there were conditions precedent attached to
the sale transaction. Therefore, with regard to the inconsistencies and
instances of non-alignment or for that matter where there may have been
conflicting versions in certain aspects of the evidence, these need to be
viewed in accordance with the SARB's narrow mandate in terms of
Exchange Control Regulation 6(1). FinSurv also obtained legal advice
regarding the application of Exchange Control Regulation 6(1) and the
relevance and impact of the inconsistencies and non-alignment of certain of
the evidence. Summaries of the versions of the persons with whom FinSurv
interacted are included in Annexure A to this Report.

7.6 Based on the aforementioned mandate, FinSurv focused its consideration

with regard to the versions on the question of whether a right to the foreign
currency had accrued to Ntaba Nyoni Estates CC, which entitled it to sell or
procure the sale of the foreign currency within the meaning of Exchange
Control Regulation 6(1).

7.7 Notwithstanding certain inconsistencies and non-alignment in the evidence,

as referred to above (and as is apparent from the summaries in Annexure A
hereto), FinSurv as part of its investigation, identified core evidence which

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remained undisturbed and signaled that Ntaba Nyoni Estates CC, on the
available evidence, did not become entitled to the foreign currency that it
received from Mr Hazim. The core evidence was as follows:

7.7.1 Mr Hazim left money at the Phala Phala farm as a security deposit to
demonstrate that he was a serious buyer or to secure the buffaloes. His
intention was to identify end-buyers before actually concluding the
transaction. Mr Ndlovu made no reference to this in his interview or his
affidavit. The President denied having any knowledge of what Mr Hazim
intended to do. This appears to support the version that Mr Ndlovu was not
aware of any condition precedent relating to end-buyers.

7.7.2 Mr Ndlovu's evidence that he received foreign currency from Mr Hazim and
gave him (Mr Hazim) a handwritten note to confirm that he received USD
from him for the purchase of buffalo. Mr Ndlovu confirmed that the purchase
of the buffalo could not be finalised because he still needed to obtain
approval and thereafter further processes would be undertaken such as
calling the State Vet, checking whether the animals were in good health and
obtaining the necessary permits to move the animals.

7.7.3 The President's account of events was that there could not have been a
binding contract of sale until the animals were examined by the necessary
State Vet and certain matters were complied with including the completion
of the blood work. That account seemed consistent with the description by
Mr von Wielligh of standard industry practice which was as follows:

7.7.3.1 the risk passes from the seller to the purchaser upon the successful
transportation of the animals to the purchaser; and

7.7.3.2 the purchase price ordinarily only becomes payable upon the transportation
of animals to the purchaser.

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7.8 On the basis of the core evidence and having regard to the SARB's narrow
mandate in relation to this matter it would appear to FinSurv that:

7.8.1 both the buyer (Mr Hazim) and the seller (Ntaba Nyoni Estates CC) albeit
for different reasons intended that certain conditions precedent be fulfilled
before there was a finalised sale of buffalo;

7.8.2 at the time of the encounter with Mr Ndlovu, Mr Hazim told Mr Ndlovu that
he was leaving the money to demonstrate that he was serious about the
sale;

7.8.3 the seller's version is not contradicted, it is corroborated by Mr von Wielligh's

objective evidence. Objective because Mr von Wielligh described the actual
process and how it worked in the industry. He does so without having being
present when Mr Ndlovu and Mr Hazim met. FinSurv has no reason to
believe that the account is deliberately designed to fit the sequence of
events in the transaction, given the facts at its disposal; and

7.8.4 the foreign currency was stolen before the conditions precedent to the sale
could be fulfilled.

8. Conclusion

8.1 At the outset it is mentioned that FinSurv's investigation and approach is not
premised on the unquestioning acceptance of the versions placed before
the investigators and that all the truth has been told. It is premised on the
need to reach conclusions on the relevant facts before FinSurv and to
restrict the investigation to the scope and purpose set out in paragraph
2 above dealing with the scope and purpose.

8.2 The applicability of Exchange Control Regulation 6(1) in this particular

matter would depend on whether there existed a perfected transaction, i.e.,
an unconditional contract for the purchase and sale of the buffalos. It follows

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that if there was such an unconditional contract, an entitlement to the foreign

currency on the part of Ntaba Nyoni Estates CC would exist, triggering the
obligation under Exchange Control Regulation 6(1) for Ntaba Nyoni Estates
CC to make or cause to be made, within 30 days, a declaration in writing of
such foreign currency to FinSurv or to an Authorised Dealer. Conversely, if
there was no perfected transaction, there would not be a legal entitlement
by Ntaba Nyoni Estates CC) to the foreign currency and therefore Exchange
Control Regulation 6(1) would not apply.

8.3 Based on the information available to FinSurv, as set forth above, as well
as that the sale was subject to conditions precedent, FinSurv is of the
considered view that the transaction was not a perfected transaction which
gave rise to a legal entitlement by Ntaba Nyoni Estates CC to the foreign
currency.

8.4 It appears from the facts available to FinSurv (as related to exchange
controls) and which have not been contradicted by any other evidence which
is available to FinSurv, that the obligation under Exchange Control
Regulation 6(1) was not triggered on the part of Ntaba Nyoni Estates CC
upon receipt of the foreign currency from Mr Hazim. In these circumstances
there would not be a breach of Exchange Control Regulation 6(1) by Ntaba
Nyoni Estates CC.

8.5 Accordingly, FinSurv, on the facts available to it, cannot conclude that there
was a contravention of Exchange Control Regulation 6(1) by either, the
President or Ntaba Nyoni Estates CC.

2023-08-08
_______________________________ _____________
Tsumbedzo Charles Nevhutanda Date
Acting Head of Department: Financial Surveillance

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Annexure A

Summary of versions from persons that the Financial Surveillance Department

interacted with in respect of the Phala Phala investigation

1. Mr Ndlovu

1.1 Mr Ndlovu provided the SARB with an unsigned statement on or about

2022-08-10. A signed version was subsequently provided. He narrated that
there were about 60 buffalos in camp 6 at Phala Phala farm, some of which
were considered to be substandard. The President and Mr von Wielligh
mentioned to Mr Ndlovu that the sub-standard buffalos would be sold, and that
the asking price for each buffalo would be R400 000.00.

1.2 Mr Hazim arrived at Phala Phala farm on 2019-12-25 and indicated that he was
there to enquire about the buffalo that were for sale. Mr Ndlovu assumed that
he was referring to the buffalo in camp 6. They then drove there. He (Mr Ndlovu)
told Mr Hazim the price per buffalo, and that the total for 20 buffalo would be
R8 million. “Mr Hazim said that he was interested in the buffalos and would pay
in dollars.” He handed Mr Ndlovu two canvas bags containing an amount of
USD580 000 which was then stored in the safe at the visitors’ centre on the
Phala Phala farm. Mr Hazim indicated that he was paying in dollars because “it
was the only currency that he had at the time, and he wanted to make sure that
he secured the buffalos.”

1.3 In exchange, Mr Ndlovu gave Mr Hazim “a note to record that I had received
the money.”

1.4 Mr Ndlovu further stated in his statement as follows:

“I told Mr Hazim that the purchase could not be finalised because I still needed
to obtain approval, and thereafter further processes would be undertaken such

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as calling the State vet to check whether the animals were in good health and
obtaining the necessary permits to move the animals.”

1.5 The President arrived at the Phala Phala farm the next day, on 2019-12-26. On
his arrival, Mr Ndlovu advised him of Mr Hazim’s visit the previous day and the
fact of the US$ in the safe. In response, the President said that:

“since he was going on holiday, the money could only be dealt with (banked
and submitted to the authorities) upon his return to the farm, and he would have
the transaction discussed and processed with Mr Von Wielligh as the General
Manager.”

1.6 Mr Ndlovu moved the money from the safe to the President’s house before he
went on leave as he thought it would be safer there. The money remained there
until it was stolen on or about 2020-02-10.

1.7 Mr Ndlovu was interviewed on 2023-02-21. He commenced by repeating the

account provided in his statement, providing clarity on the following issues:

1.7.1 when he met Mr Hazim, he was acting as the lodge manager at the Phala Phala
farm. His duties included the sale of animals;

1.7.2 he had taken down the tag numbers of the buffalo which were considered to be
sub-standard, as these were the buffalo that could be sold;

1.7.3 he specifically advised Mr Hazim that the deal or purchase is not complete
because he was still waiting for approval from the General Manager and the
President;

1.7.4 he accordingly did not give an invoice to Mr Hazim, but rather furnished him
with an acknowledgement letter that he had received the US$ from him. He also
did not give Mr Hazim a list of the tag numbers of the buffalo that Mr Hazim
sought to purchase;

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1.7.5 he left the acknowledgement letter and the list of tag numbers of the buffalos
that Mr Hazim sought to purchase at the President’s house. He did not advise
Mr von Wielligh that they were there;

1.7.6 he was told that the sale price for each buffalo was R400 000, but did not know
whether that price included vet fees and transport;

1.7.7 he advised the President on 2019-12-26 what had transpired (that Mr Hazim
bought the buffalo which were at camp 6) and the President indicated that they
would deal with the money upon his return, by which stage the General
Manager would also be back; and

1.7.8 at that stage the President also indicated that they would report the money to
the authorities and bank it upon his return.

1.8 Later in his interview, Mr Ndlovu was asked about a statement from the
President to the effect that only Mr von Wielligh could have given approval on
the correctness of the pricing of each buffalo. He sought to backtrack to some
degree on his evidence that the price for each buffalo was certainly R400 000,
suggesting that perhaps there was a further discussion between the President
and Mr von Wielligh on pricing of which he was not aware. However, he was
clear that no further discussion was communicated to him and so he
understood that he was authorized to sell the buffalo as a package at R400 000
per animal. This does not appear to be a contradiction at all, or that the
backtracking is material. He understood the price to be R400 000 at the time
and was unaware of an altered position subsequently.

1.9 In response to the President’s assertion that he ought to have followed up with
Mr von Wielligh about the correct pricing for the buffalo, Mr Ndlovu stated that
he could not do so until the President had briefed Mr von Wielligh on the
transaction and they had advised him to proceed with the transaction.

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1.10 It appears from the above that while there are areas on which Mr. Ndlovu’s
evidence is not clear, he did not contradict his statement in his subsequent
interview in any material respects. The thread that runs through his evidence is
that he was authorized to sell the buffalo at R400 000 a head, but that he
advised Mr Hazim that the transaction would not be complete until he had
received the necessary approval from the President and Mr von Wielligh. He
did not ever receive any such approval.

2. Mr Hazim

2.1 The upshot of Mr Hazim's version is that:

2.1.1 he identified 15 female and 5 male buffalos in the camp that he was happy with
and Mr Ndlovu told him that the price for each buffalo was R400 000.00 which
he thought was reasonable;

2.1.2 he told Mr Ndlovu that he had US dollars with him and could give him cash
immediately to secure the buffalos. It was his intention to sell the buffalos for a
profit so he wanted to identify end buyers before actually concluding the
transaction; and

2.1.3 his intention was to leave money at Phala Phala farm for the value of the
buffalos as a security deposit and if he found end buyers, the money that he left
at Phala Phala farm would be used to pay for those buffalos which were sold.

2.2 Mr Hazim did not participate in any further interviews with the SARB.

2.3 On 2022-12-10, Mr Hazim deposed to another affidavit to the SAPS in order to

assist the SAPS in its investigation. A copy of that affidavit was provided to
FinSurv on 2023-04-20.

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2.4 In that affidavit, Mr Hazim records that:

“On 25 December 2019, I travelled to Limpopo where I visited Phala-Phala

Game Farm belonging to the President of the Republic of South Africa, Mr Cyril
Ramaphosa. I was taken there by the driver in a limousine from Sun City Resort.
At Phala-Phala Game Farm I met with one Mr Sylvester Ndlovu ("Mr Ndlovu"),
who introduced himself as one of the Managers at Phala-Phala Game Farm.
Mr Ndlovu then took me to Camp 6 where the buffalos that were offered for
sale were being kept. I was impressed with the buffalos that I saw, and
identified twenty (20) buffalos, (15 females and five males), to purchase.
Mr Ndlovu informed me that they were R400, 000 each. Since I had cash with
me and wanted to seal the deal, I then paid an amount of USD580, 000 and
Mr Ndlovu acknowledged the said amount from me and provided me a cash
receipt in that regard. . .”
Mr Ndlovu and I agreed that the export permits (inclusive of vaccinations and
other certificates) would be prepared and kept at Phala-Phala Game Farm until
the regulatory processes were finalised. Unfortunately, that process could not
be finalised as it was impacted upon by the Covid-19 pandemic.” [Underlining
added].

2.5 There is an inconsistency between what Mr Hazim said in his statement to the
SARB before the one for the SAPS. There, he said this:

“I told Mr Ndlovu that I had US dollars with me and could give him cash
immediately to secure the buffalos. . . It was my intention to sell the buffalos
for a profit so I wanted to identify end buyers before actually concluding the
transaction. My intention was to leave money at Phala Phala farm for the value
of the buffalos as security deposit and if I found end buyers, the money that I
left at Phala Phala farm would be used to pay for those buffalos which were
sold.
Due to the Covid-19 lockdown, I struggled to find end buyers because the
game market had slowed down. There was also a restriction on movement of
animals as a result of the lockdowns. . . . No arrangements were made with

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regard to logistics for transporting the animals as this would only have been
arranged once end buyers were identified and secured. Only once I had
identified end buyers, would I have been able to provide the necessary
information to Phala Phala farm for it to obtain the veterinarian certificates,
conclude other legal documents and finalise the transaction.” [Underlining
added].

2.6 That he wanted to find end-buyers seems consistent with his supine disposition
for a period of almost two and a half years.

3. The President

3.1 In the President's affidavit, the President recorded there that on 2019-12-26,
Mr Ndlovu briefed him about the events of the previous day, in relation to the
sale of the 20 buffalo in camp 6 and the receipt of U$580 000. He then told
Mr Ndlovu that he was:

“proceeding directly to Cape Town the following day, and because Mr von
Wielligh was away at the time, the money should be kept at Phala Phala farm
until I next visited, when I would have an opportunity to brief Mr von Wielligh to
enable him to process the transaction and have the money banked following
that”. [underlining added].

3.2 In paragraph 97 of his affidavit before the Constitutional Court, the President
said this:

“Another example of the Panel's irrational (and illogical) approach to evidence

is the rejection of the only evidence before it and relying on conjecture or
speculation instead. In this regard the Panel speculated that I gave permission
that the cash should be stuffed inside a sofa, when the only evidence which
was before the Panel was that I had given the contrary instruction to Mr Ndlovu,
that the money must be banked . . .” [underling added].

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3.3 This seems to contradict the version in the President’s affidavit of 2022-08-10,
that the money would be banked once Mr von Wielligh had been briefed.

3.4 The President was interviewed on 2023-03-28, where he clarified the following:

3.4.1 That when he decided to sell the buffalo and knew that there would likely be a
willing buyer in the Middle East or the northern Africa, he had never spoken to
Mr Hazim directly. His identification of that market was more of a generic
statement.

3.4.2 He did not recall a meeting involving himself, Mr von Wielligh and Mr Ndlovu at
which it was agreed that the animals in camp six should be sold at R400 000
each. He did indicate that he would likely have discussed with Mr von Wielligh
that the sale of the buffalo as a parcel would be able to attract a purchase price
of R400 000 per animal, and that although he does not recall whether Mr Ndlovu
was part of that conversation, word of this may have spread to him as well.

3.4.3 He confirmed that Mr Ndlovu was authorized to deal with the sale of the buffalo
on 2019-12-25.

3.4.4 He acknowledged that Mr von Wielligh was not aware of the transaction until
after the theft. He suggested that it would have been Mr Ndlovu’s responsibility
to inform him of this, but that they did not have an easy relationship, and this
could have been the reason why there was a delay.

3.4.5 Finally, he confirmed that he had no knowledge of Mr Hazim’s stated intention

to find end buyers for the buffalo. All he knew, and all that was relayed to him
by Mr Ndlovu, was that Mr Hazim visited Phala Phala farm, that he bought the
buffaloes and that he paid R400 000 for them.

3.5 The President indicated that he was not aware of any communication with
Mr Hazim following the theft on 2020-02-10. He acknowledged, however, that
he owes Mr Hazim either the buffalo or his money and stated that arrangements

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would be made to deliver the buffalo or refund Mr Hazim over an agreed period
once “this whole thing settles”. Some of the buffalo had calves. He said that
those would belong to Mr Hazim.

3.6 In an attempt to resolve the inconsistency outlined at paragraphs 3.1 and 3.2
above, the President was asked whether he had given a direct instruction to
Mr Ndlovu to bank the money. He indicated that what he meant in both
instances was that the money should have been banked, but that this should
have been done under the tutelage of Mr von Wielligh. In other words, that
Mr Ndlovu was under an obligation to speak to Mr von Wielligh and follow the
necessary processes for the money to be banked.

3.7 Finally, the President stated unequivocally that there would be no contract until
all of the necessary processes had been followed, including examination by the
vets, and the blood work. In other words, if an animal is found to be sick, the
parties would continue to negotiate, including on a replacement animal, prior to
final conclusion of the sale. These processes do, however, take a long time to
conclude.

3.8 It was put to the President during his interview that there was a discrepancy
between the statements as to whether he left Phala Phala farm on 2019-12-26
or 2019-12-27. This does not appear to be a material discrepancy that would
have any impact on the matters under investigation.

3.9 Based on the above, it would appear that there are no material inconsistencies
in the President’s account of events. In essence, his version is that Mr Ndlovu
was authorised to sell the animals, and that initially R400 000 per animal was
tentatively touted as the selling price but that the actual price would depend on
other factors. These needed to be ironed out and the price needed to be
confirmed with Mr von Wielligh. Mr Ndlovu may have heard the R400 000 as
the selling price per animal and operated on that basis.

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4. Mr Von Wielligh

4.1 Mr von Wielligh's version of events, in essence, was that:

“Mr Ramaphosa mentioned that he might have foreign investors interested in

the buffaloes. Later in 2019, I followed up with Mr Ramaphosa with regard to
selling the buffaloes. He undertook to follow up with his potential investors. . . .
In early 2020, Mr Ramaphosa told me that he had made a good deal [on] the
buffalo and that he would give me the details when he next saw me.”

4.2 Mr von Wielligh was interviewed twice, first on 2023-02-14 and then on
2023-04-11. He provided the following clarifications:

4.2.1 Although expected to have been made aware, he was not informed of the
transaction for the sale of the buffalo.

4.2.2 When asked whether managers have the authority to sell certain animals, his
response was that “that's a weakness of our business.” We understand this to
mean that at that stage Mr Ndlovu did in fact have the authority to sell the buffalo
to Mr Hazim, but that Mr von Wielligh holds the view that he ought not to have
had such authority.

4.2.3 He explained that the President may have interacted with Mr Ndlovu directly,
which could be why he did not have any knowledge of the transaction until after
the money was stolen. He indicated in this regard that he had never heard
Mr Hazim’s name until the theft of the money.

4.2.4 When asked what ought to have happened to the cash paid for the buffalo, he
indicated that he would ordinarily do a cursory inspection, prepare an invoice
and report it to the President, at which stage the money would be deposited into
a bank account.

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4.2.5 There is a substantial variation in price per animal, depending on the particular
circumstances of each case. An amount of R400 000 per buffalo is an average
price on auction.

4.2.6 Although it was initially necessary to secure the approval from the members of
the Close Corporation for each particular sale, this has not been the case since
approximately 2017. This appeared to be a curious statement because, as we
understand it, the Close Corporation has only one member – the President.

4.2.7 He currently holds no instructions to refund Mr Hazim or to engage with him on

the President’s behalf.

4.3 Mr von Wielligh provided an account of the processes that must be followed in
order for the sale of buffalo to be processed, confirming that there would be
action required from both the buyer and the seller:

4.3.1 As a first step, the buyer is required to provide an import permit.

4.3.2 Upon receipt of the import permit, and an agreement as to the date of
transportation, the seller attends to taking blood and other samples for testing,
placing the animals in quarantine and obtaining a Red Cross permit to allow for
the transport of the animals.

4.3.3 Ordinarily, payment for the buffalo would only be made when they are loaded
onto the truck.

4.3.4 The risk passes from the seller to the buyer on the day that the “buffalo wakes
up on his transport”, unless otherwise specified in a contract. For example, the
parties may agree that the animals remain on the seller’s property for a
specified period in exchange for a fee to attend to them as required.

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5. Ms Msiska

5.1 Ms Msiska had not provided any affidavits to FinSurv. She was interviewed for
the first time on 2023-04-11.

5.2 During her interview, Ms Msiska said that she obtained the list of the tag
numbers corresponding to the animals in which Mr Hazim had expressed an
interest from the main house. Mr Ndlovu described the list to her as a list of
buffalo that were sold and asked her to take the list because “he knows that I
do permits”. He did not indicate what she should do with the list.

5.3 Ms Msiska stated that she printed the list for Mr Ndlovu and then waited for
Mr von Wielligh before doing anything else. She could not process any permits
without Mr von Wielligh’s approval. However, she did not discuss the matter
with him at any stage.

5.4 Ms Msiska further stated that she is responsible for recording the sale of
animals. There exists one database containing information about the animals
on Phala Phala farm, including the mother and father of each animal. There is
a separate document indicating animals to be loaded onto transport as well as
a sales book that contains a sales order number for all animals that are
purchased.

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