|Tycon Tokyo Sexwale and Mandela, Photograph: Conus Bodenstein/AP|
Picture by: Duane DawsThe Aurora team (from left) Thulane Ngubane,
Kulubese Zuma, Michael Hulley and Zondwa Mandela
Khulubuse Zuma dismissed any inference that President Zuma was personally involved and told Reuters: "He [Hulley] is my legal adviser and he signed because I couldn't sign for both. It is a technical thing."
But the façade of Khulubuse Zuma as the sole owner was undermined by a businessperson with insight into the deal. Asking not to be named, he claimed that Medea, or its boss, Giuseppe Ciccarelli, had a share alongside Khulubuse Zuma and that Hulley appeared to be a partner in the deal, not simply a lawyer.
The mystery deepened when the M&G obtained a copy of the contract signed in May between the DRC, Caprikat and Foxwhelp: it gave Mvelaphanda Holdings' address in Illovo, Johannesburg, as Caprikat's legal domicilium, while it gave Foxwhelp's as Mvelaphanda Holdings' former address in Melrose Estate, Johannesburg.
The Melrose Estate premises are now used by the charitable Sexwale Family Foundation.
Last week Willcox travelled with Khulubuse Zuma and Hulley to Kinshasa for further talks about the deal.
Mvelaphanda Holdings is majority held by two Sexwale-linked trusts. Although he resigned his trusteeships to comply with executive ethics rules when he rejoined the government last year, the benefit of Mvelaphanda's investments still accrue to his family.
Mvelaphanda is heavily invested in the African oil sector through offshore companies, including New African Global Energy. New African, Sexwale and Willcox tried to bag the same Lake Albert oil acreage in 2008, including through ultimately abandoned negotiations with the Divine Inspiration Group, or its partner Sacoil.
Tshume might have provided more possible evidence of Sexwale's companies' involvement when he told Business Times earlier: "The bidding process for the blocks took place earlier this year, but the engagement has been going on for the past two years."
Neither Caprikat nor Foxwhelp existed two years ago -- they were registered in March -- and Khulubuse Zuma rose to business prominence only after his uncle's election as president 18 months ago.
- Caprikat and Foxwhelp gain 60% of net revenues for the first 12million barrels produced, later falling to 55%. In the Divine contract the company share falls to 50% then 40%.
- Caprikat and Foxwhelp will pay only 9% royalties on the first 12-million barrels produced, rising to 12,5% after that. Divine paid 12,5% throughout.
- Caprikat and Foxwhelp will have to allocate $125 000 annually per exploration block on community upliftment. Divine was charged $250 000, rising to $300 000.
"Caprikat and Foxwelp are committed to fulfilling their obligations in the DRC with pride and we are confident that our engagement will benefit all parties, not least the people of the DRC." - Additional reporting by Ilham Rawoot
The M&G Centre for Investigative Journalism- Fri, 30th Jul 2010
We have not sold claims in Congo, says Zuma lawyerPresident Jacob Zuma’s lawyer, Michael Hulley, denies that two companies in which he and Mr Zuma’s nephew, Khulubuse Zuma, are involved had sold their claims.
Published: 2010/09/07 06:49:43 AM
THE case of the disputed Democratic Republic of Congo oil rights took a new turn yesterday when President Jacob Zuma ’s lawyer, Michael Hulley, denied that two companies in which he and Mr Zuma’s nephew, Khulubuse Zuma, are involved had sold their claims.
Business Day reported yesterday that according to a British Virgin Islands company purportedly representing Mr Hulley and Mr Zuma’s companies Caprikat and Foxwhelp, their clients had “assigned their rights”.
|Hulley(left), Zuma's lawyer and President Jacob Zuma|
Photo by Dispatch blogs
Last night, Mr Hulley clarified that Caprikat and Foxwhelp had assigned their rights to an entity that incorporated both its interests and that of the Congolese government.
“Such assignment is neither a sale nor a disposal of its interests for value to any third party. To liken it as such to any other local transaction can only be calculated to mire it in a controversy which exists only in the minds of those who are intent on seeing the transaction fail,” Mr Hulley said.
He said the companies had paid a substantial amount as part of the signature bonus, and finances had been committed to social works programmes in the area. Seismic surveys and other preparatory work had commenced.
“This is hardly the conduct of a company which is not intent on fulfilling its contractual obligations and only intent on reaping a quick financial reward.”
The statement follows a highly disputed allocation process involving British company Tullow Oil which came close to being granted the rights.
|Elly Karuhanga, President and Director of Tullow Uganda and Tim O’Hanlon, Vice President African Business at the Tullow Africa strategy day hosted in London in November 2008. Photo by Tullow|
Tim O’Hanlon, Tullow’s vice- president for Africa, said yesterday that he remained convinced that the companies intended to sell the stake without developing it.
Business day, email@example.com