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- The former chairman of the prison services portfolio committee received an interrogation from the Commission of Inquiry about the allegations of state capture on Friday.
- Former MP Vincent Smith was asked about the benefits in the form of a loan from Bosasa’s CFO Angelo Agrizzi and a rental car for his daughter from the late CFO Gavin Watson.
- Smith said it “could have been wrong” or out of “ignorance” that he did not declare these benefits to Parliament.
The former chairman of Parliament’s portfolio committee on prison services, Vincent Smith, apparently did not think he was obligated to declare a “loan” or a car benefit given to him by Angelo Agrizzi and Gavin Watson during his time as MP.
Testifying at the Commission of Inquiry about the state capture allegations on Friday, Smith said this may have been due to “ignorance” or that “it could have been wrong.”
READ | The loan agreement was with Angelo Agrizzi, not Bosasa, Vincent Smith testifies
Smith’s testimony dates back to a 2015 loan agreement between him and former Bosasa CFO Angelo Agrizzi, in which Agrizzi loaned Smith more than R600,000 to pay for his daughter’s tuition.
The chairman of the commission, Supreme Court Vice President Raymond Zondo, asked Smith if he thought exactly how he would declare this loan because the loan was arranged through a company called Euro Blitz, of which Smith is a sole director, and not in a personal capacity.
“When he had to make the disclosure in 2016, I suspect he would have remembered that there was a loan he had from Mr. Agrizzi with respect to 2015 … and he would have wanted to disclose that,” Zondo said.
Smith, however, said that this was not the case.
Position
“That was not my position at the time, maybe just from the standpoint of ignorance that I was in the company and the company reflected the transactions; it was not the most important thing on my mind,” Smith replied.
Zondo emphasized that he had a hard time understanding this and said the loan was personal due to a personal obligation despite being repaid through the company.
Smith said that while it was not a justification, the transaction took place after he left his position as chair of the prison services portfolio committee.
He agreed with Zondo that he should have declared the transaction.
“Of course, someone who has listened to his evidence and listened to Mr. Agrizzi’s version of this payment, could say that the reason he did not disclose it is because it was not a legitimate loan, there was no loan. If it was a a loan that he considered legitimate, he would have easily revealed it, “Zondo said.
Smith responded that “it could have been wrong”, but the transaction was reflected as a loan within the company.
“From where I’m sitting, the fact that it was mirrored and audited, told me … that this is something I have to give back at some point, whether it’s Vincent Smith or the company,” Smith said.
He added that there was never an intention to hide the loan or take it in exchange for something else.
‘Little race’
Another benefit Smith acquired, this time from the company’s late CEO Gavin Watson, was a vehicle rented by Bosasa and loaned to Smith’s daughter as a rental to use as a “little ride,” according to Smith.
Smith told Zondo that he had approached Watson looking for a car for his daughter, but was unaware that it was a car rented by Bosasa and not by Watson himself.
Smith admitted that he had not disclosed it to Parliament either, despite being a benefit.
Discussion around Bosasa
Trial leader Viwe Notshe also told Smith that while he was on the portfolio committee, there had been discussions about allegations of corruption regarding Bosasa, but Smith did not reveal to the committee that the company was owned by Watson, his “friend”.
“I have not disclosed that,” Smith replied.
“I do not justify it … I did not reveal it because I did not reveal any other friendship. I understand that even if he were my friend, with the doctrine of the separation of powers, a deputy cannot influence the operations of any department.”
Notshe asked Smith to clarify this point.
“Are you saying that a member of Parliament has the right to participate in a portfolio committee meeting where serious corruption issues are discussed about a company? [owned by] one of the [member’s] friends. Are you saying that the member has no right [or] forced to reveal that? “
Smith responded that he would have recused or declared his relationship with Watson if he had been involved in the decision making, but otherwise did not see the need.
READ ALSO | Mokonyane ‘gifted’ Aston Martin R3m on his 50th birthday, hears state capture investigation
