JOHANNESBURG – South African President Cyril Ramaphosa may be embroiled in a financial crime after a confidential audit report for the Nigerian government alleges that Shanduka and MTN broke that country’s finance laws.
Shanduka was the President’s investment company.
Business Insider SA reported that Ramaphosa could be drawn into the investigation because he was the chairperson of MTN at the time the banks allegedly violated exchange controls – and an important MTN Nigeria shareholder for part of the period.
But it seems there may also be questions about how the government-owned Public Investment Corporation (PIC) lost R1.8 billion in government employee pension money when it bought Ramaphosa’s stake.
During the course of their enquiries it emerged that the PIC had bought Ramaphosa’s one-time corporate vehicle Shanduka out of MTN Nigeria, investigative organisations Finance Uncovered and amaBhungane said.
The PIC later confirmed it had paid $230.993 million for the shares in a deal concluded in late March and early April 2015.
Ramaphosa finalised his divestment from Shanduka in May 2015, after he became deputy President and said he would isolate himself from his former businesses to avoid any conflicts of interest.
In October 2015, the Nigeria government imposed a massive fine on MTN for failing to disconnect unregistered subscribers.
In the PIC’s 2017 annual report it valued the MTN Nigeria shares at R996 million, a loss of 65% or some R1.8 billion.