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Vincent Smith, a former ANC MP, turned himself in for arrest at the Alberton police station in Gauteng on Thursday morning. Smith appeared in court a few hours later, to be charged with fraud and corruption related to the profits he received from the Bosasa company, accused of State Capture.
On Thursday morning, the former ANC deputy Vincent Smith it became the latest arrest on charges related to state capture.
Appearing before the Palm Ridge Magistrates Court Commercial Crimes Court approximately two hours after surrendering to the police, Smith pleaded not guilty to one count of corruption and one count of fraud.
Dressed in a blue suit and wearing a surgical mask, Smith did not speak beyond signaling his understanding of the court procedure.
Smith has been indicted along with his real estate development company Euro Blitz 48 and former Bosasa COO Angelo Agrizzi. The former ANC MP is accused of having received payments and services valued at just over R870,000 from Bosasa, its late CEO. Gavin watsonand / or Agrizzi.
These “bonuses”, according to the State’s accusation, consisted of:
- the installation of a complete electric fence and security system by Bosasa employees at Smith’s home in Roodepoort, worth R200,000;
- the deposit of R276,667.90 by a Bosasa employee following Agrizzi’s instructions into the Euro Blitz bank account, most of which was later paid to an unknown account with the reference “Aber Accom / Tuition”;
- the deposit of R395,076 from the Bosasa trust fund in the Euro Blitz bank account, with the payment reference “Car Accident Settlem”.
Smith previously acknowledged receiving these payments to the Zondo Commission, saying the “Aber Accom / Tuition” payment was for his daughter’s fees at Aberystwyth University in Wales.
Smith claimed, however, that the money came from a personal loan agreement he had made with Agrizzi, rather than being related to Bosasa.
“It was never a Bosasa deal,” Smith told the Zondo Commission.
Angelo Agrizzi’s loan of more than R600,000 to ANC MP Vincent Smith questioned in the state’s capture investigation
The state does not agree.
Smith’s indictment charges that the bonuses were “corruptly given and received as improper incentives to promote an ongoing plan to influence [Smith] use their office and / or position in Parliament and / or their political influence for the benefit of Bosasa and / or [Agrizzi] and / or Gavin Watson ”.
Smith is accused of having used his position as chairman of Parliament’s Committee on Correctional Services to end concerns about the improper award of prison contracts to Bosasa and of having defended the practice of outsourcing. This was despite the fact that at the time Smith assumed the chairmanship of the committee, he had been recommended to investigate Bosasa’s contracts as a priority.
Smith’s failure to examine the contracts as it was his duty “amounts to an incomplete or partial exercise of his powers” as a member of parliament, the indictment claims.
The fraud charge that Smith is also facing relates to his failure to disclose the financial benefits he was receiving from Bosasa to the Register of Interests of Members of Parliament, as he was required to do.
Smith is accused of having “intentionally omitted and / or failed to disclose” these benefits, and in doing so caused harm to both Parliament and the public, in terms of the latter’s right to know the financial interests of its MPs.
In court Thursday morning, both state prosecutors and the defense noted that Smith had been aware of his impending arrest for some time and had fully cooperated with investigators.
In a short affidavit read by his attorney, Smith affirmed his innocence on the two charges and said: “I believe that the State will not be able to present any objective fact that I planned the act of corruption.”
Among the reasons given why Smith should be released on bail is that he has current responsibilities including “writing a document for the Zondo Commission.”
Smith was described in court as a 60-year-old pensioner with no criminal record, whose current monthly income amounts to R21,000 per month. There was no opposition to the posting of the bond, as the State agreed that Smith is not a flight risk.
Although the defense requested that his bail amount be set at R20,000, the State requested and received a R30,000 bail due to the large amounts stipulated in the corruption charge. Smith was warned not to contact any potential witnesses in the matter and was told to turn over his passport to the investigating officer.
Smith is expected to return to court on October 14, 2020.
A statement after the arrests by the Directorate of Investigation (ID) led by Hermione Cronje said the ID had worked alongside South African Revenue Services (SARS) and the Hawks on the Smith-Bosasa affair.
He added that Smith and his company will face separate charges as a result of a SARS investigation. DM
