Newly obtained bank records link Brian Molefe, the uMkhonto Wesizwe party's treasurer, to an apparent slush fund that funded overseas trips, a wedding, and other expenses during the State Capture era. The Palcocap account received over R11 million in unexplained cash deposits between 2013 and 2018. Daily Maverick's investigation highlights suspicious transactions tied to Molefe's lifestyle.
A Daily Maverick investigation, based on bank statements and related documents, has uncovered links between Brian Molefe and Palcocap (Pty) Ltd, a now-defunct company that received R12.2 million in its FNB account from November 2013 to October 2018. Approximately 93% of this, or R11.3 million, consisted of unexplained cash deposits, often in small amounts between R5,000 and R20,000, deposited over short periods totaling over R200,000. Such patterns, described by a forensic expert as 'highly irregular' and indicative of possible structuring to avoid scrutiny, raise concerns about money laundering.
Palcocap's sole director was Regopotswe 'Reggie' Maponya, who shares business ties with Molefe through entities like Karibu Farming. Although Molefe held no formal role in Palcocap, over 30 payments totaling more than R450,000 referenced 'Brian Molefe', 'B Molefe', or similar, alongside additional R115,000 with 'Bm' notations. Notable transactions include R83,000 to wedding planner Meletlo Celebrations and nearly R65,000 to Velmoré Hotel & Spa for Molefe's December 2015 wedding, preceded by R140,000 in cash deposits. Other outflows covered family catering via Chippy Projects and property expenses in Plettenberg Bay, such as payments to Rod’s Electrical and Plett Handigas.
The account also funded apparent overseas travel aligning with Molefe's 19 foreign trips from 2014 to 2017, with point-of-sale purchases exceeding R850,000 in matching destinations like Tanzania, Brazil, and the UK. Examples include SAA flights before Molefe's departures and expenditures at hotels, Wimbledon tickets totaling over R117,000, Harrods, and a golf shop. These occurred during Molefe's tenures at Transnet and Eskom, amid his reported Gupta family ties; he left Eskom in 2017 following Public Protector scrutiny and now faces Transnet-related fraud charges.
Attempts to contact Molefe via the MK party yielded no response, while Maponya stated, 'Hi, I have nothing to say. Thanks.' A follow-up report will examine the cash deposits' origins.
