French para\u00adsta\u00adtal Areva appears to have tried to buy its way to the front of the queue to build nuclear power sta\u00adtions in South Africa - a miscalculation<\/p>\n
A fron\u00adtrun\u00adner in the race to build new nuclear power sta\u00adtions in South Africa conduc\u00adted a cost\u00adly schmooze cam\u00adpai\u00adgn during an ear\u00adlier round of bid\u00adding, the Mail & Guardian can reveal.<\/p>\n
As the govern\u00adment pre\u00adpares to reo\u00adpen bid\u00adding for the buil\u00adding of a fleet of nuclear power sta\u00adtions, an inves\u00adti\u00adga\u00adtion of the with\u00addrawn 2008 ten\u00adder, known as Nuclear 1, sug\u00adgests that the fron\u00adtrun\u00adner, then and now, French nuclear para\u00adsta\u00adtal Areva, tried to mani\u00adpu\u00adlate the pro\u00adcess by buying poli\u00adti\u00adcal favour.<\/p>\n
The M&G repor\u00adted in February that Areva was tea\u00adming up with a Chinese part\u00adner to form a poli\u00adti\u00adcal\u00adly favou\u00adrable consortium.<\/p>\n
The new contract, which could be put out to ten\u00adder later this year, will be worth up to R1-trillion, the big\u00adgest in South African history.<\/p>\n
Areva\u2019s rival, the United States com\u00adpa\u00adny Westinghouse, hin\u00adted this week that it, too, was revie\u00adwing its stra\u00adte\u00adgic alliances by ini\u00adtia\u00adting \u00ab a consul\u00adta\u00adtion pro\u00adcess with staff to pos\u00adsi\u00adbly restruc\u00adture its ope\u00adra\u00adtions \u2026 in anti\u00adci\u00adpa\u00adtion of nuclear new-build in the near future \u00bb.<\/p>\n
Areva\u2019s attempts to cosy up to a poli\u00adti\u00adcal\u00adly connec\u00adted elite to win the 2008 nuclear ten\u00adder were ulti\u00adma\u00adte\u00adly unsuc\u00adcess\u00adful, but it shows how much bid\u00adders are pre\u00adpa\u00adred to invest to make these connections.<\/p>\n
In 2008, Areva\u2019s stra\u00adte\u00adgy inclu\u00added a takeo\u00adver of the poli\u00adti\u00adcal\u00adly connec\u00adted ura\u00adnium mining com\u00adpa\u00adny UraMin to secure ura\u00adnium rights in the Karoo, Namibia and the Central African Republic.<\/p>\n
Rumours have cir\u00adcu\u00adla\u00adted for years that the French com\u00adpa\u00adny paid too much for UraMin to gra\u00adti\u00adfy for\u00admer pre\u00adsident Thabo Mbeki\u2019s allies, at least part\u00adly because it belie\u00adved it would help it to win the huge South African nuclear contract.<\/p>\n
But when the ANC sacked Mbeki in September 2008, Eskom with\u00addrew the Nuclear 1 ten\u00adder. The para\u00adsta\u00adtal later said it could not afford the deal, but the timing sug\u00adges\u00adted the events were lin\u00adked. It has been spe\u00adcu\u00adla\u00adted that the Jacob Zuma fac\u00adtion, in control of the ANC par\u00adty machine since the Polokwane confe\u00adrence the pre\u00advious December, did not want the Mbeki-led govern\u00adment to dis\u00adpense the patro\u00adnage from such a large contract.<\/p>\n
The can\u00adcel\u00adla\u00adtion of the ten\u00adder left Areva expo\u00adsed to the full cost of buying UraMin, which it bought at the top of the ura\u00adnium bull mar\u00adket for $2.5-billion. When the Fukushima nuclear disas\u00adter in Japan in March 2011 burst the ura\u00adnium bubble, Areva announ\u00adced gigan\u00adtic losses, wri\u00adting down its UraMin assets by more than $2-billion.<\/p>\n
This led to a French par\u00adlia\u00admen\u00adta\u00adry inves\u00adti\u00adga\u00adtion ear\u00adlier this year of Areva\u2019s hand\u00adling of the UraMin takeo\u00adver, which found \u00ab some mal\u00adfunc\u00adtio\u00adning in the company\u2019s gover\u00adnance and deci\u00adsio\u00adnal pro\u00adcess \u00bb, but no clear evi\u00addence of fraud.<\/p>\n
Political machi\u00adna\u00adtions<\/strong><\/p>\n The Nuclear 1 ten\u00adder high\u00adlights the finan\u00adcial conse\u00adquences of mega\u00addeals built on a sur\u00adrep\u00adti\u00adtious exchange of poli\u00adti\u00adcal and com\u00admer\u00adcial favours.<\/p>\n The M&G has tra\u00adced seve\u00adral sources close to the ura\u00adnium scramble that pre\u00adce\u00added the ten\u00adder, who pro\u00advi\u00added cir\u00adcum\u00adstan\u00adtial but tel\u00adling tes\u00adti\u00admo\u00adny of the machi\u00adna\u00adtions that cha\u00adrac\u00adte\u00adri\u00adsed the pro\u00adcess and drove up UraMin\u2019s pur\u00adchase price to astro\u00adno\u00admi\u00adcal levels.<\/p>\n Rob Scott, for\u00admer coun\u00adsel to UraMin\u2019s chief exe\u00adcu\u00adtive, said : \u00ab Did we have a soft bles\u00adsing from the poli\u00adti\u00adcians ? I would be sur\u00adpri\u00adsed if we didn\u2019t. Did any [poli\u00adti\u00adcians] make money from it ? Not that I\u2019m aware of. Did it suit agen\u00addas ? Absolutely. Remember that Mbeki wan\u00adted South Africa to become a nuclear power. \u00bb<\/p>\n A consul\u00adtant to UraMin said there had been an assu\u00admed quid pro quo : \u00ab The deal was that Areva would buy UraMin and get the nuclear ten\u00adder in return. Areva paid too much for UraMin \u2013 it\u2019s worth half [the $2.5-billion]. But they were going to get contracts for reac\u00adtors and an enrich\u00adment plant worth 10 times as much. \u00bb<\/p>\n Even Areva, fol\u00adlo\u00adwing an inter\u00adnal inves\u00adti\u00adga\u00adtion, admit\u00adted to paying too much for the assets. \u00ab UraMin\u2019s acqui\u00adsi\u00adtion for $2.5-billion was made at a high price with a pre\u00admium of approxi\u00adma\u00adte\u00adly one-third com\u00adpa\u00adred with the intrin\u00adsic value that this asset repre\u00adsen\u00adted for Areva, \u00bb it said.<\/p>\n But did the com\u00adpa\u00adny pay this amount to buy poli\u00adti\u00adcal favour ? This is har\u00adder to prove, but the chro\u00adno\u00adlo\u00adgy of a ura\u00adnium scramble span\u00adning South Africa, Namibia and the Central African Republic is persuasive.<\/p>\n The first stage of the pro\u00adcess, bet\u00adween 2004 and 2006, was the spe\u00adcu\u00adla\u00adtive acqui\u00adsi\u00adtion of ura\u00adnium depo\u00adsits in these coun\u00adtries by start-up mining com\u00adpa\u00adny UraMin, which cut in people close to poli\u00adti\u00adcal decision-makers.<\/p>\n In stage two, bet\u00adween 2006 and 2008, Areva bought UraMin and conso\u00adli\u00adda\u00adted its nuclear bid consor\u00adtium alle\u00adged\u00adly part\u00adly in the belief that by gra\u00adti\u00adfying people close to poli\u00adti\u00adcal decision-makers in South Africa it would encou\u00adrage favou\u00adrable consi\u00adde\u00adra\u00adtion of its nuclear bid.<\/p>\n Areva told the M&G it had \u00ab no intent to reo\u00adpen debates on that issue that drew intense media attrac\u00adtion at the begin\u00adning of 2012. The only prio\u00adri\u00adty of the com\u00adpa\u00adny is its recovery. \u00bb<\/p>\n Mbeki\u2019s spo\u00adkes\u00adper\u00adson, Mukoni Ratshitanga, said the alle\u00adga\u00adtions of poli\u00adti\u00adcal influence-buying were \u00ab enti\u00adre\u00adly without basis \u00bb, \u00ab pos\u00adsi\u00adbly defa\u00adma\u00adto\u00adry \u00bb and \u00ab typical<\/p>\n of the work of the apartheid-era Stratcom ope\u00adra\u00adtives, who concoc\u00adted false alle\u00adga\u00adtions against their real and per\u00adcei\u00adved oppo\u00adnents with deli\u00adbe\u00adrate mali\u00adcious intent \u00bb.<\/p>\n South Africa<\/strong><\/p>\n Matiki Chikala is the chain-smoking, tough-talking foun\u00adder of Mago Resources, which he esta\u00adbli\u00adshed in 2003. He said he saw the poten\u00adtial of ura\u00adnium in the ear\u00adly 2000s and applied to the then depart\u00adment of mine\u00adrals and ener\u00adgy for unu\u00adsed pros\u00adpec\u00adting rights, par\u00adti\u00adcu\u00adlar\u00adly in the Karoo, which he hoped to deve\u00adlop once he found a financier.<\/p>\n In 2004 he was intro\u00addu\u00adced to a com\u00adpa\u00adny, Beranjou, that wan\u00adted to finance Mago\u2019s ura\u00adnium prospects.<\/p>\n Beranjou, which later became UraMin, was an opaque British Virgin Islands-registered com\u00adpa\u00adny repre\u00adsen\u00adted by Australian geo\u00adlo\u00adgist Adrian Lungan and South African busi\u00adness\u00adper\u00adson George Roach. Its finan\u00adcial backer was Canadian ban\u00adker Stephen Dattels.<\/p>\n The UraMin consul\u00adtant said the com\u00adpa\u00adny was star\u00adted by busi\u00adness \u00ab cow\u00adboys \u00bb, but they knew they had to achieve scale \u2013 or at least a sem\u00adblance of it \u2013 to attract an esta\u00adbli\u00adshed mining com\u00adpa\u00adny to buy them out.<\/p>\n Lungan and Roach did not respond to requests for com\u00adment. Dattels, through his lawyers, denied \u00ab all impro\u00adprie\u00adty alle\u00adged \u2026 or implied \u2026 regar\u00adding UraMin\u2019s dea\u00adlings \u00bb and said the M&G\u2019s ques\u00adtions were \u00ab replete with inaccuracies \u00bb.<\/p>\n In March 2005, Chikala signed an agree\u00adment with Beranjou set\u00adting up a joint ven\u00adture in which Mago had 26% and Beranjou (later UraMin) 74%. The com\u00adpa\u00adny hired advi\u00adsers to assist in applying to the mine\u00adrals depart\u00adment for up to 70 ura\u00adnium pros\u00adpec\u00adting rights in South Africa.<\/p>\n The consul\u00adtant, who asked not to be named because of his busi\u00adness inter\u00adests, said dea\u00adling with the depart\u00adment was \u00ab a nightmare \u00bb.<\/p>\n \u00ab Corruption was so rife that we\u2019d be allo\u00adca\u00adted mine\u00adral rights, but when we loo\u00adked again they\u2019d been allo\u00adca\u00adted to one of their friends to bla\u00adck\u00admail us. \u00bb<\/p>\n Company mee\u00adting minutes from November 2005 pro\u00advide insight into the way UraMin attemp\u00adted to coun\u00adter its dif\u00adfi\u00adcul\u00adties in applying for per\u00admits. In the minutes, Dattels com\u00adplai\u00adned that the \u00ab non-issuance of licences \u00bb was \u00ab a pro\u00adblem \u00bb and he \u00ab nee\u00added to get ans\u00adwers \u00bb because it was \u00ab a cri\u00adti\u00adcal time \u00bb where \u00ab speed is of the essence \u00bb.<\/p>\n His solu\u00adtion was to \u00ab take coun\u00adcil [sic] \u00bb from influen\u00adtial Ghanaian busi\u00adness\u00adper\u00adson Sir Sam Jonah by naming him as one of two repre\u00adsen\u00adta\u00adtives autho\u00adri\u00adsed to deal with the depart\u00adment. A day before the mee\u00adting, UraMin had appoin\u00adted Jonah, then chair\u00adper\u00adson of AngloGold Ashanti, to its board.<\/p>\n The other per\u00adson nomi\u00adna\u00adted to inter\u00adact with the depart\u00adment was Mbulelo Rakwena, a senior South African diplo\u00admat with poli\u00adti\u00adcal clout.<\/p>\n Jonah\u2019s appoint\u00adment would turn out to be an ins\u00adpi\u00adred move. The consul\u00adtant said Jonah and Mbeki were \u00ab big mates \u00bb and that, \u00ab if it wasn\u2019t for Jonah, this entire [UraMin] deal would never have happened \u00bb.<\/p>\n Jonah\u2019s lawyer said : \u00ab The UraMin appli\u00adca\u00adtions for pros\u00adpec\u00adting rights in South Africa had alrea\u00addy been lod\u00adged before our client became a direc\u00adtor of UraMin and our client has never spo\u00adken to Mr Mbeki about [the] same. \u00bb<\/p>\n Rakwena denied \u00ab with contempt any insi\u00adnua\u00adtion of wrong\u00addoing on my part \u00bb, but decli\u00adned to ans\u00adwer detai\u00adled questions.<\/p>\n Chikala and the consul\u00adtant both iden\u00adti\u00adfied the depu\u00adty direc\u00adtor gene\u00adral of the mine\u00adrals and ener\u00adgy depart\u00adment, Jacinto Rocha, as the department\u2019s key day-to-day decision-maker on the awar\u00adding of the rights UraMin wanted.<\/p>\n They also noted that Mbeki\u2019s \u00addepu\u00adty pre\u00adsident, Phumzile Mlambo-Ngcuka, was a key influence behind the scenes. She had been the mine\u00adrals minis\u00adter during the pre\u00advious six years and many of the department\u2019s decision-makers were her appointees.<\/p>\n Even after her depar\u00adture, the \u00adconsul\u00adtant said, she remai\u00adned so influen\u00adtial that she was effec\u00adti\u00adve\u00adly \u00ab still the minister \u00bb.<\/p>\n \u00ab I\u2019m not saying Rocha did any\u00adthing wrong. He just bowed to pres\u00adsure from above. He was the guy who every\u00adone above him refer\u00adred to, to make sure that eve\u00adry\u00adthing went accor\u00adding to plan. \u00bb<\/p>\n Rocha said he had been pro\u00admo\u00adted to depu\u00adty direc\u00adtor gene\u00adral short\u00adly before Mlambo-Ngcuka left, but insis\u00adted she \u00ab did not rule from the grave \u00bb and that \u00ab minis\u00adters do not decide on mine\u00adral pros\u00adpec\u00adting rights \u00bb.<\/p>\n Mlambo-Ngcuka decli\u00adned to comment.<\/p>\n Political connec\u00adtions<\/strong><\/p>\n By mid-2006, UraMin was high\u00adly vul\u00adne\u00adrable to poli\u00adti\u00adcal risk. In a lis\u00adting sta\u00adte\u00adment in April, the com\u00adpa\u00adny noted that com\u00adpe\u00adting appli\u00adca\u00adtions had been sub\u00admit\u00adted to the depart\u00adment for the same pros\u00adpec\u00adting rights in South Africa. By then it held only three of 70 mine\u00adral pros\u00adpec\u00adting rights for which it had applied.<\/p>\n \u00ab There can be no assu\u00adrance that the group will be gran\u00adted new-order pros\u00adpec\u00adting rights \u2026 The group\u2019s inabi\u00adli\u00adty to acquire pros\u00adpec\u00adting rights on cer\u00adtain pro\u00adper\u00adties in South Africa could have an adverse impact on the deve\u00adlop\u00adment of its pro\u00adjects in the coun\u00adtry, \u00bb the sta\u00adte\u00adment said.<\/p>\n At this point, UraMin\u2019s South African joint ven\u00adture was owned by UraMin Incorporated (74%) and Mago Resources (26%). A month later, it cut ano\u00adther empo\u00adwerment group into its sha\u00adre\u00adhol\u00adding. In May 2006, UraMin had writ\u00adten to the depart\u00adment pro\u00adpo\u00adsing that a new empo\u00adwerment com\u00adpa\u00adny, Lukisa, be given a share of Mago Resources\u2019s stake.<\/p>\n It did not dis\u00adclose the iden\u00adti\u00adty of those invol\u00adved in Lukisa in its let\u00adter to the depart\u00adment, or when it announ\u00adced that Lukisa had gai\u00adned an 8.75% sha\u00adre\u00adhol\u00adding in the UraMin-Mago-Lukisa joint ven\u00adture on June 6 2006.<\/p>\n According to Chikala, UraMin had gai\u00adned a control\u00adling stake in his com\u00adpa\u00adny and then pro\u00adcee\u00added to work him out and bring in more poli\u00adti\u00adcal\u00adly connec\u00adted players.<\/p>\n According to a com\u00adpa\u00adny share regis\u00adter, Lukisa\u2019s majo\u00adri\u00adty sha\u00adre\u00adhol\u00adder was Tefo Maloisane. Four sources have inde\u00adpen\u00addent\u00adly confir\u00admed that Maloisane was close to Mlambo-Ngcuka\u2019s bro\u00adther, Bonga Mlambo.<\/p>\n Chikala said Dattels intro\u00addu\u00adced Maloisane and Mlambo to him as pros\u00adpec\u00adtive new empo\u00adwerment shareholders.<\/p>\n \u00ab When Maloisane was intro\u00addu\u00adced to me, he came with Mlambo. And when I com\u00adplai\u00adned, saying I did not want a scan\u00addal with the depu\u00adty president\u2019s bro\u00adther, they pul\u00adled Mlambo off a lit\u00adtle bit. Then they had mee\u00adtings behind the scenes, but Mlambo was there, definitely. \u00bb<\/p>\n Two other sources fami\u00adliar with Lukisa confir\u00admed that Maloisane and Mlambo were \u00ab close \u00bb and the rela\u00adtion\u00adship stem\u00admed from Mlambo\u2019s role as \u00ab a kind of Zulu uncle \u00bb to Maloisane.<\/p>\n Rocha said : \u00ab Companies are cle\u00adver. They think poli\u00adti\u00adcal\u00adly about who they will bring in to try and influence the decision-maker. You can\u2019t chase away the depu\u00adty president\u2019s bro\u00adther \u2013 that would be dis\u00adcri\u00admi\u00adna\u00adto\u00adry. He\u2019s also a his\u00adto\u00adri\u00adcal\u00adly disad\u00advan\u00adta\u00adged South African. But it\u2019s the com\u00adpa\u00adnies who choose to bring poli\u00adti\u00adcal\u00adly connec\u00adted people in, not decision-makers in the department.<\/p>\n \u00ab My job was sim\u00adply to make a deci\u00adsion in line with the [Mineral and Petroleum Resources Development] Act and I did so without fear or favour. \u00bb<\/p>\n Mlambo could not be rea\u00adched for comment.<\/p>\n Maloisane said : \u00ab I\u2019m a pro\u00adfes\u00adsio\u00adnal busi\u00adness\u00adman with qua\u00adli\u00adfi\u00adca\u00adtions ; by no means do I find myself where I am because of connec\u00adti\u00advi\u00adty. \u00bb He refer\u00adred fur\u00adther ques\u00adtions to Areva.<\/p>\n Dattels said Uramin \u00ab wor\u00adked constant\u00adly to ensure its ope\u00adra\u00adtions in South Africa confor\u00admed in all res\u00adpects to BEE [black eco\u00adno\u00admic empo\u00adwerment] requi\u00adre\u00adments \u00bb but did not respond to ques\u00adtions about Maloisane, Mlambo and Mlambo-Ngcuka.<\/p>\n He denied that UraMin had edged Chikala out impro\u00adper\u00adly, saying the com\u00adpa\u00adny bought Chikala\u2019s stake for $51-million in February 2007.<\/p>\n According to the consul\u00adtant, slow pro\u00adgress in obtai\u00adning per\u00admits in South Africa made UraMin look elsew\u00adhere for ura\u00adnium depo\u00adsits to pump up its asset base.<\/p>\n Nevertheless, by the time it sold its assets to Areva in July 2007, it held rights to about half the sur\u00adface area of the Ryst Kuil ura\u00adnium chan\u00adnel in the Karoo and had sea\u00adled an agree\u00adment in prin\u00adciple with a rival com\u00adpa\u00adny for its share of the rest (See \u00ab Another deal on the side \u00bb).<\/p>\n Namibia<\/strong><\/p>\n UraMin bought the com\u00adpa\u00adny that held the mine\u00adral rights to the pro\u00admi\u00adsing Trekkopje mine in the Namib Desert for $4-million in June 2005.<\/p>\n But by the time UraMin lis\u00adted on the London Stock exchange in April 2006, the com\u00adpa\u00adny was for\u00adced to declare : \u00ab The direc\u00adtors believe that the appli\u00adca\u00adtion for rene\u00adwal of the exis\u00adting [licence] is unli\u00adke\u00adly to be suc\u00adcess\u00adful and no assu\u00adrance can be given that the [new] appli\u00adca\u00adtion will be suc\u00adcess\u00adful. In the event that nei\u00adther appli\u00adca\u00adtion is suc\u00adcess\u00adful, the group will have no assets in Namibia. \u00bb<\/p>\n The com\u00adpa\u00adny nee\u00added poli\u00adti\u00adcal insu\u00adrance, as it had in South Africa, and a secret report com\u00admis\u00adsio\u00adned by Areva in 2011 \u2013 fol\u00adlo\u00adwing the col\u00adlapse in value of the UraMin assets \u2013 sug\u00adgests that it bought that insurance.<\/p>\n The report, by Swiss pri\u00advate intel\u00adli\u00adgence firm Alp Services, alle\u00adged that Hage Geingob, who was a senior Swapo poli\u00adti\u00adcian, Namibia\u2019s first prime minis\u00adter and the man tip\u00adped to be its next pre\u00adsident, \u00ab recei\u00adved $300000 for faci\u00adli\u00adta\u00adting the sale of UraMin to Areva \u00bb.<\/p>\n Scott recal\u00adled contac\u00adting Geingob to give him an update about Uramin\u2019s pro\u00adgress in Namibia.<\/p>\n Reacting to the Alp report, Geingob told the Namibian news\u00adpa\u00adper New Era in February that his com\u00adpa\u00adny, HG Consulting, was employed by UraMin bet\u00adween 2006 and 2007 and was \u00ab paid for ser\u00advices ren\u00adde\u00adred \u00bb, name\u00adly \u00ab UraMin obtai\u00adning a mining licence \u00bb. He denied recei\u00adving any money for faci\u00adli\u00adta\u00adting the UraMin sale to Areva.<\/p>\n Dattels said the same, adding that Geingob \u00ab made the appro\u00adpriate dis\u00adclo\u00adsure to the Namibian Parliament \u00bb.<\/p>\n But the Alp report went fur\u00adther, sug\u00adges\u00adting that Geingob had \u00ab wor\u00adked accor\u00adding to the wishes \u00bb of the ANC\u2019s trea\u00adsu\u00adrer gene\u00adral at the time, Mendi Msimang.<\/p>\n If true, the cross\u00adbor\u00adder co-operation bet\u00adween senior libe\u00adra\u00adtion par\u00adty cadres lends weight to sug\u00adges\u00adtions that UraMin enjoyed top-level backing in both the South African govern\u00adment and the ANC.<\/p>\n Geingob refu\u00adsed to ans\u00adwer other ques\u00adtions about his alle\u00adged inter\u00adac\u00adtion with Msimang.<\/p>\n Msimang said : \u00ab I had no wishes and was in no way aware of, or invol\u00adved in, any such tran\u00adsac\u00adtion. I have no per\u00adso\u00adnal rela\u00adtion\u00adship with Geingob other than in the context of the bila\u00adte\u00adral rela\u00adtion\u00adship bet\u00adween the ANC and Swapo. \u00bb<\/p>\n Central African Republic<\/strong><\/p>\n UraMin acqui\u00adred its third major ura\u00adnium asset, the Central African Republic\u2019s Bakouma mine, for $27-million in June 2006 through Mbeki\u2019s direct inter\u00adven\u00adtion, accor\u00adding to the UraMin consultant.<\/p>\n Mbeki\u2019s alle\u00adged role in faci\u00adli\u00adta\u00adting the deal is hear\u00adsay, but President Fran\u00e7ois Boziz\u00e9 had been figh\u00adting a sus\u00adtai\u00adned rebel incur\u00adsion by sup\u00adpor\u00adters of ous\u00adted rival Ange-F\u00e9lix Patass\u00e9 for near\u00adly a year and had begun to lean on South Africa for support.<\/p>\n In January 2006, the South African mili\u00adta\u00adry went to the Central African Republic on a \u00ab fact-finding mis\u00adsion \u00bb and Boziz\u00e9 visi\u00adted South Africa on a \u00ab wor\u00adking visit \u00bb in April.<\/p>\n A South African forei\u00adgn affairs depart\u00adment com\u00admu\u00adni\u00adqu\u00e9 empha\u00adsi\u00adsed the Boziz\u00e9 entourage\u2019s dea\u00adlings with \u00ab a wide spec\u00adtrum of South African busi\u00adness people and orga\u00adni\u00adsa\u00adtions that have inter\u00adests \u00bb in the Central African Republic with an empha\u00adsis on \u00ab mining and exploration \u00bb.<\/p>\n It is, the\u00adre\u00adfore, pos\u00adsible that a belea\u00adgue\u00adred Boziz\u00e9 was tra\u00adding off some of his country\u2019s pri\u00adzed mine\u00adral depo\u00adsits, inclu\u00adding ura\u00adnium, for South African mili\u00adta\u00adry sup\u00adport, which was for\u00adth\u00adco\u00adming later that year.<\/p>\n A United States diplo\u00adma\u00adtic cable in December 2006 conclu\u00added that South Africa\u2019s inter\u00adven\u00adtion was desi\u00adgned to \u00ab sta\u00adbi\u00adlise \u00bb the Central African Republic, but added that \u00ab mining inter\u00adests, while not the domi\u00adnant fac\u00adtor, no doubt played a role in the [South African government\u2019s] deci\u00adsion to become involved \u00bb.<\/p>\n According to seve\u00adral sources, UraMin\u2019s key point man for the Central African Republic deal was Jonah, who was influen\u00adtial among the West African elite.<\/p>\n Scott said Jonah\u2019s \u00ab [contacts] book in Africa is very extensive \u00bb.<\/p>\n \u00ab I know Boziz\u00e9 came [to South Africa] a couple of times because Sam actual\u00adly clai\u00admed for expenses, \u00bb he said.<\/p>\n Scott also recal\u00adled an inci\u00addent in which UraMin staff wor\u00adking in the Central African Republic were arres\u00adted en route bet\u00adween Bakouma and the capi\u00adtal, Bangui, and Jonah nego\u00adtia\u00adted their release.<\/p>\n Jonah told the M&G he had not wined and dined Boziz\u00e9 in South Africa, and had never dis\u00adcus\u00adsed UraMin with Mbeki.<\/p>\n Enter Areva<\/strong><\/p>\n With Bakouma in the bag, UraMin had assets in three coun\u00adtries and was suf\u00adfi\u00adcient\u00adly bol\u00adste\u00adred by its balance sheet and poli\u00adti\u00adcal connec\u00adtions to find a buyer.<\/p>\n The \u00ab key faci\u00adli\u00adta\u00adtor \u00bb, said the consul\u00adtant, was Jonah, who ser\u00adved on Mbeki\u2019s inter\u00adna\u00adtio\u00adnal invest\u00adment coun\u00adcil \u2013 inci\u00adden\u00adtal\u00adly, with Areva chief exe\u00adcu\u00adtive Anne Lauvergeon. Jonah was a nonexe\u00adcu\u00adtive chair of the UraMin board for at least six months before it was bought by Areva.<\/p>\n The first ten\u00adta\u00adtive enga\u00adge\u00adment bet\u00adween UraMin and Areva began in October 2006, accor\u00adding to a UraMin cir\u00adcu\u00adlar to shareholders.<\/p>\n On July 31 2007, Areva sea\u00adled a $2.5-billion deal for UraMin, paying $7.85 per share \u2013 21% more than the mar\u00adket value at the time.<\/p>\n Jonah was hand\u00adso\u00adme\u00adly rewar\u00added : accor\u00adding to a director\u2019s cir\u00adcu\u00adlar, he held nine mil\u00adlion shares and would the\u00adre\u00adfore have wal\u00adked away with about $70.65-million (R505-million at the exchange rate at the time).<\/p>\n His com\u00adpa\u00adny, African Facilitation Services, also recei\u00adved a 0.4% com\u00admis\u00adsion on the Areva deal worth $10-million. Of all UraMin\u2019s direc\u00adtors only Dattels, its foun\u00adder and exe\u00adcu\u00adtive depu\u00adty chair\u00adper\u00adson, made more money.<\/p>\n Jonah\u2019s lawyer confir\u00admed these figures were \u00ab rough\u00adly cor\u00adrect \u00bb, but said : \u00ab There is no nexus bet\u00adween our client\u2019s invol\u00adve\u00adment in Mbeki\u2019s inter\u00adna\u00adtio\u00adnal invest\u00adment coun\u00adcil and the events which transpired.<\/p>\n \u00ab Areva was not the only com\u00adpa\u00adny which sho\u00adwed inter\u00adest in UraMin. All nego\u00adtia\u00adtions with pros\u00adpec\u00adtive buyers were conduc\u00adted on UraMin\u2019s behalf by a repu\u00adtable Canadian invest\u00adment bank, BMO, and Areva\u2019s advi\u00adsers were Rothschild. \u00bb<\/p>\n Dattels did not ans\u00adwer ques\u00adtions about Jonah\u2019s role in nego\u00adtia\u00adtions with Areva, except to confirm that he was UraMin\u2019s nonexe\u00adcu\u00adtive chair\u00adper\u00adson at the time.<\/p>\n Scott echoed Jonah, saying that UraMin \u00ab played a cle\u00adver com\u00admer\u00adcial game \u00bb.<\/p>\n \u00ab We made sure it was known we were mee\u00adting one ano\u00adther. Prices were high, there were sup\u00adply shor\u00adtages and huge demand. People were des\u00adpe\u00adrate for ura\u00adnium. Did the French pay a prin\u00adce\u00adly sum ? Absolutely. \u00bb<\/p>\n Scott added that Jonah\u2019s link to Lauvergeon, through Mbeki\u2019s invest\u00adment coun\u00adcil, was unfo\u00adre\u00adseen and \u00ab pos\u00adsi\u00adbly real\u00adly lucky \u00bb.<\/p>\n At the time Areva also thought it had sea\u00adled a great deal : ura\u00adnium depo\u00adsits in three African coun\u00adtries and a poli\u00adti\u00adcal\u00adly connec\u00adted com\u00adpa\u00adny in its fold to bol\u00adster its bid for the South African nuclear tender.<\/p>\n Areva\u2019s next move<\/strong><\/p>\n Lukisa\u2019s front\u00adman, Maloisane, was appoin\u00adted Areva\u2019s coun\u00adtry mana\u00adger for South Africa in July 2008 \u2013 at the time when Eskom was consi\u00adde\u00adring bids from both Areva and Westinghouse.<\/p>\n Chikala said poli\u00adti\u00adcal decision-makers would have noti\u00adced that a com\u00adpa\u00adny asso\u00adcia\u00adted with the depu\u00adty president\u2019s bro\u00adther was part of Areva\u2019s bid consortium.<\/p>\n In the long run, the ANC\u2019s elec\u00adtive confe\u00adrence in Polokwane pro\u00adved to be a mas\u00adsive defeat not only for Mbeki and his poli\u00adti\u00adcal allies, but also for Areva. Eskom\u2019s board put the ten\u00adder award on hold in the week that the ANC sacked Mbeki and the ten\u00adder was for\u00admal\u00adly with\u00addrawn two months later.<\/p>\n Areva will have to rebuild its alliances and wait for the ten\u00adder to come around again. And it is like\u00adly it will want to recoup some of its mis\u00adpla\u00adced invest\u00adments (See \u00ab Another deal on the side \u00bb).<\/p>\n Meanwhile, the ANC\u2019s next elec\u00adtive confe\u00adrence in Mangaung looms with the pro\u00admise of a simi\u00adlar\u00adly deci\u00adsive impact on poli\u00adti\u00adcal\u00adly backed mega\u00addeals. The ques\u00adtion is : Who will bear the cost of poli\u00adti\u00adcal machi\u00adna\u00adtions this time ?<\/p>\n Shortly before sel\u00adling to Areva, UraMin agreed to acquire ano\u00adther com\u00adpa\u00adny that had par\u00adti\u00adci\u00adpa\u00adted in the scramble for ura\u00adnium rights in the Karoo near Beaufort West.<\/p>\n There are paral\u00adlels bet\u00adween Areva\u2019s pur\u00adchase of Great Karoo Metals and its acqui\u00adsi\u00adtion of UraMin that sug\u00adgests it wan\u00adted the same out\u00adcome from both : the indul\u00adgence of people close to then-president Thabo Mbeki in the hope of favou\u00adrable consi\u00adde\u00adra\u00adtion in the nuclear tender.<\/p>\n The ANC\u2019s Western Cape chair\u00adper\u00adson at the time, James Ngculu, held a 6% stake in Great Karoo and was brie\u00adfly depu\u00adty chair\u00adper\u00adson of the pri\u00advate equi\u00adty firm that held a fur\u00adther 35.75% stake.<\/p>\n Between November 2004 and May 2005, Great Karoo inves\u00adted R40-million in buying and deve\u00adlo\u00adping ura\u00adnium rights. Areva bought Great Karoo Metals for $50-million in August 2007, a ten\u00adfold increase on Great Karoo\u2019s ini\u00adtial investment.<\/p>\n According to media reports, Ngculu was a key sup\u00adpor\u00adter and fun\u00adder of the Mbeki cam\u00adpai\u00adgn in the build-up to the ANC\u2019s Polokwane confe\u00adrence in December 2007. In the weeks before the confe\u00adrence, the Sunday Times quo\u00adted Ngculu as saying he would defend Mbeki \u00ab with my soul \u00bb and the Mail & Guardian repor\u00adted that lob\u00adbyists for the Jacob Zuma fac\u00adtion had noted he dis\u00adplayed \u00ab par\u00adti\u00adcu\u00adlar\u00adly deep pockets \u00bb on the cam\u00adpai\u00adgn trail.<\/p>\n Responding to the M&G\u2019s ques\u00adtions, Ngculu said it was \u00ab offen\u00adsive \u00bb and \u00ab devoid of any truth \u00bb to sug\u00adgest that he had sup\u00adpor\u00adted Mbeki for fac\u00adtio\u00adnal inter\u00adests. \u00ab I was a staunch ANC man and never a \u2019lob\u00adbyist\u2019 or \u2019outs\u00adpo\u00adken sup\u00adpor\u00adter\u2019 as you sug\u00adgest, save to sup\u00adport him as the elec\u00adted pre\u00adsident of the ANC. \u00bb He said his repor\u00adted finan\u00adcial and other ties to the pro-Mbeki cam\u00adpai\u00adgn before the Polokwane confe\u00adrence were \u00ab rumours mon\u00adge\u00adred by the \u2019unna\u00admed sources\u2019 so loved by your paper \u00bb, but did not rebut the Sunday Times quo\u00adta\u00adtion attri\u00adbu\u00adted to him.<\/p>\n In terms of the ura\u00adnium deal, Ngculu said it was done \u00ab enti\u00adre\u00adly on com\u00admer\u00adcial grounds \u00bb. He said UraMin per\u00adsua\u00added Areva that it had a \u00ab moral obli\u00adga\u00adtion \u00bb to sign the deal Great Karoo had made in prin\u00adciple with UraMin.<\/p>\n UraMin had offe\u00adred Great Karoo Metals a cash-and-shares deal worth \u00ab bet\u00adween $43.5-million and $47.5-million \u00bb, Ngculu said, whe\u00adreas Areva \u2013 having bought UraMin \u2013 had no inter\u00adest in shares and so \u00ab insis\u00adted that the tran\u00adsac\u00adtion be set\u00adtled in cash \u00bb.<\/p>\n \u00ab Given that the UraMin share price had risen since the ori\u00adgi\u00adnal tran\u00adsac\u00adtion was agreed to bet\u00adween Great Karoo and UraMin [an increase of about 50%], the final price agreed was $50-million.<\/p>\n \u00ab The price was based ulti\u00adma\u00adte\u00adly on the mar\u00adket value of ura\u00adnium explo\u00adra\u00adtion and pro\u00addu\u00adcing com\u00adpa\u00adnies at the time, \u00bb Ngculu said.<\/p>\n Despite requests to both Ngculu and Tefo Maloisane (in his capa\u00adci\u00adty as an Areva repre\u00adsen\u00adta\u00adtive), the M&G could not access full records of Great Karoo\u2019s shareholding.<\/p>\n Julian Williams, Ngculu\u2019s part\u00adner and co-founder and part\u00adner in pri\u00advate equi\u00adty firm Basileus \u2013 a suc\u00adces\u00adsor to the pri\u00advate equi\u00adty firm that held 35.75% in Great Karoo \u2013 was shot dead in his Cape Town office last week in an alter\u00adca\u00adtion with an inves\u00adtor. It appears the dis\u00adpute was based on the fate of inves\u00adtors\u2019 funds in ano\u00adther com\u00adpa\u00adny in which Basileus had an inter\u00adest, Avalloy, which bene\u00adfi\u00adted from Mbeki admi\u00adnis\u00adtra\u00adtion arms-deal off\u00adsets through invest\u00adment by British aero-engine manu\u00adfac\u00adtu\u00adrer Rolls Royce.<\/p>\n","protected":false},"excerpt":{"rendered":" French para\u00adsta\u00adtal Areva appears to have tried to buy its way to the front of the queue to build nuclear power sta\u00adtions in South Africa - a mis\u00adcal\u00adcu\u00adla\u00adtion A fron\u00adtrun\u00adner in the race to build new nuclear power sta\u00adtions in South Africa conduc\u00adted a cost\u00adly schmooze cam\u00adpai\u00adgn during an ear\u00adlier round of bid\u00adding, the Mail & Guardian can [\u2026]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"wp_typography_post_enhancements_disabled":false,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-499","post","type-post","status-publish","format-standard","hentry","category-communiques"],"_links":{"self":[{"href":"https:\/\/www.observatoire-du-nucleaire.org\/index.php?rest_route=\/wp\/v2\/posts\/499","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.observatoire-du-nucleaire.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.observatoire-du-nucleaire.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.observatoire-du-nucleaire.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=499"}],"version-history":[{"count":3,"href":"https:\/\/www.observatoire-du-nucleaire.org\/index.php?rest_route=\/wp\/v2\/posts\/499\/revisions"}],"predecessor-version":[{"id":1850,"href":"https:\/\/www.observatoire-du-nucleaire.org\/index.php?rest_route=\/wp\/v2\/posts\/499\/revisions\/1850"}],"wp:attachment":[{"href":"https:\/\/www.observatoire-du-nucleaire.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.observatoire-du-nucleaire.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=499"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.observatoire-du-nucleaire.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}**Another deal on the side<\/h2>\n