[DEBATE] : (Fwd) WB stung by SA scorpion: "Meet Leonard McCarthy, Integrity Vice President", "cream of the crop"
pbond at mail.ngo.za
Wed Apr 8 16:32:26 BST 2009
(It is wonderfully amusing to compare the transcripts showing former
apartheid civil servant Leonard McCarthy's rough edges - e.g. protection
of mafia buddy Jackie Selebi, former top SA cop - and boot-licking style
with Thabo Mbeki, to the way his liberal supporters crowed about him
less than a year ago... Thanks NIA for those fun tapes, below:
"Democratic Alliance leader Helen Zille, who has fought for the
retention of an independent Scorpions unit, said McCarthy was an example
of "the cream of the crop" who was snatched up internationally "because
we can't tolerate excellence locally"... Political analyst Steven
Friedman said the public would view the loss of McCarthy as a sacrifice
of crime fighting capacity.")
Meet Leonard McCarthy, Integrity Vice President
September 4, 2008—Two months into his tenure as the World Bank’s
Integrity vice president, Leonard McCarthy has set ambitious short-term
goals for himself and for INT. “My immediate priorities are to get our
performance up, make the Volcker recommendations work optimally, and
operate in constructive sync with other parts of the Bank,” he says.
“In doing so, we will have to heighten the sense of urgency; strike a
balance between helping operational colleagues in Washington and
investigating allegations abroad; make the links between corruption and
development more clear; focus on the right priorities; and produce
accelerated results for INT and the institution.”
Remarkably, he says all of this without appearing to take a breath.
A History of Fighting Corruption
A South African national with a background in law and prosecution,
McCarthy previously headed the Directorate of Special Operations (DSO)
in South Africa—a unit known locally as the Scorpions. Asked how the
unit got its name, McCarthy jokes, “It sounds less scary in Zulu.”
As director of the DSO, McCarthy provided strategic and operational
oversight over information analysis, investigation, prosecution, and
civil litigation, while managing a staff of more than 500.
During his tenure, the directorate pursued, investigated, and prosecuted
a number of high profile cases, often working closely with Scotland
Yard, the FBI, the International Criminal Court, the European Anti-Fraud
Office, and development agencies in the area of corruption. Prior to his
work in the directorate, McCarthy was appointed director of public
prosecutions by then President Nelson Mandela.
Bob Zoellick announced his selection of McCarthy to head INT on May 5,
and McCarthy began at the Bank on June 25. McCarthy notes that Zoellick
has provided strong leadership and support for INT and its mission. “The
president has impressed upon me the importance of the Bank’s continuing
success in the area of anti-corruption.”
INT by the Numbers
McCarthy has already tried to get a sense of the magnitude of the
problem. “From what I have seen in reviewing INT’s investigative
portfolio over the past few fiscal years, INT’s staff face a huge number
of challenges, both in the complexity of cases, as well as the number of
different sectors they must become conversant in to do their jobs
“I decided to look at the numbers,” he says. “The Bank presently
operates over 1,500 projects in some 127 countries in more than a dozen
sectors, with a total net commitment greater than $110 billion. A rough
analysis of the ratios over the last three years indicates that INT has
been involved in 8 to 9 percent of Bank projects in that timeframe.”
McCarthy points to some recent progress, in terms of transparency as
well as enforcement. “We announced the sanction of a firm in a major
case in the Philippines on August 22, and just the day before we posted
on our external website our second publicly available redacted Final
Investigative Report, this one involving a case in Honduras.”
McCarthy said he thinks this increased transparency will help INT, both
by showing that the Bank takes the issue of corruption seriously and
holds wrongdoers accountable, and by removing some of the ‘mystique’
around INT’s operations. “I encourage staff to read these reports, as it
will also give them a better sense of the complexities we in INT deal with.”
Other areas McCarthy said he was hoping to improve include moving
forward quickly with additional “high value” sanctions, and meeting the
timeframes for closing investigations recommended in the Volcker report.
He also wants to increase the number and quality of referrals of
wrongdoing to member governments, and move INT further into what he
calls “anticipatory business—developing threat assessments that would be
of value to the institution.”
The establishment in INT earlier in the year of a Preventive Services
Unit—another recommendation of the Volcker report—has already generated
high demand for INT to share lessons from past investigations.
Asked why he joined the World Bank, McCarthy says, “I’ve always been
intrigued by the intersection between development dynamics, law, ethics,
and economy, and I am committed to the vision and mission of the Bank.”
Since his arrival, McCarthy says he has been most impressed by the
Bank’s staff. “It’s an institution full of good people doing good
things, and I’m honored to be a part of it.”
INT staff also come in for significant praise. “We have extremely
competent, hard-working people in this unit. Their diligence,
dedication, and capacity for work are staggering. I could have used some
of them in Jo’burg.”
McCarthy stresses that it is critical to integrate INT within the Bank,
and he described his initial plans to get that work underway. “Later in
September, INT will be hosting all the Bank Group’s operational vice
presidents, to share with them our strategic vision for this department
and seek comments on how we can assist them in their own deliverables.
“We will also be embarking on an INT Integrity Week on October 28, 2008,
which will be an opportunity to explain to a larger audience how INT
works and what we set out to achieve. From such input and advice, I am
confident that we will emerge with greater consensus in positioning INT
as a core business partner in the Bank Group.”
“INT is not alone in this effort,” McCarthy notes. “We are grateful to
the many Bank staff who raise concerns with us, and we know that it is
only by working together across the entire Bank Group that we can make a
real difference in reducing the incidence of corruption in our projects,
and measuring our impact.”
Contributed by David Theis, senior communications officer, INT
World Bank backs McCarthy
Tue, 07 Apr 2009 09:32
The World Bank has reacted to the scandal around former Scorpions head
Leonard McCarthy, saying it has found him to be a man of high integrity
and high professional standards.
McCarthy is currently the head of the World Bank's Institutional
On Monday, acting National Prosecution Authority boss, Mokotedi Mpshe,
announced he would drop the arms deal-related charges against African
National Congress leader Jacob Zuma because McCarthy and one of Mpshe's
predecessors, Bulelani Ngcuka, interfered in Zuma's prosecution.
Mpshe read out transcripts of conversations between McCarthy and Ngcuka.
The exchanges were recorded by the National Intelligence Agency.
In a brief statement the World Bank said it was closely tracking the
heated political environment in South Africa.
It also stated it could not comment on internal political controversies
but it added that fighting corruption was not a "popularity contest".
The bank said the holders of top law enforcement positions often made
The institution said when it appointed McCarthy it found him to have a
global reputation and to be a man of high integrity.
Ngcuka said he was still studying the NPA statement and would respond on
Tuesday but those close to him have told Eyewitness News he was
extremely angry with Mpshe's comments.
More reaction to NPA decision
Meanwhile, former Justice minister Penuell Maduna said he was not
"As Joe Soap [an ordinary citizen] I don�t hold any views on the matter
whatsoever," was all he was willing to say when Eyewitness News
contacted him on Monday.
The Congress of South African Trade Unions' Zwelinzima Vavi said they
knew from the start that Zuma would be cleared.
"Even though the NPA decision is based on the consideration of the
policy aspects of what militated against conducting a free and fair
trial, we have consistently argued that there was no case for Jacob Zuma
to answer," Vavi remarked.
However, the United Democratic Movement�s Bantu Holomisa said the NPA's
reasons for dropping the charges was nothing more than high level gossip.
"Because they [the charges] have not been tested in any court of law,
what this has done is that it has actually exposed the NPA and ANC
leadership as both intellectually and morally challenged," said Holomisa.
Zuma will appear in the Durban High Court on Tuesday morning where the
charges against him will be formally withdrawn.
It was alleged he helped fraud convict Schabir Shaik secure contracts as
part of the multi-billion rand arms deal.
McCarthy prepared to face the music
8 April 2009, 15:04
By Angela Quintal
Former Scorpions head Leonard McCarthy supports the NPA's call for a
judicial commission of inquiry and will co-operate fully if he is
furnished with the complete recordings used to publicly hang and quarter
him this week.
These have thus far been denied him by acting National Director of
Public Prosecutions Mokotedi Mpshe, but McCarthy has renewed efforts to
get access to the tapes.
The man - who has been labelled along with ex-NPA chief Bulelani Ngcuka
as the arch conspirator against Jacob Zuma - today broke his silence and
publicly denied all allegations levelled against him by his former NPA
He indicated he was prepared to travel home to face the music if this
was done in an appropriate environment. McCarthy is the head of the
anti-corruption unit at the World Bank in Washington DC.
McCarthy's lawyer Bernard Matheson told Independent Newspapers this
morning, that his client was prepared to "fully co-operate" with the
judicial commission of inquiry recommended by the NPA and which also has
the support of the ruling ANC.
Matheson confirmed that McCarthy was sent a list of 25 questions by the NPA.
He had replied that he was willing to assist but wanted to be furnished
with the alleged recordings and transcripts of his conversations with
Ngcuka and others.
This was denied by Mpshe on the basis that it was classified, Matheson said.
McCarthy was surprised that two days later some excerpts were made
public at a press conference called by Mpshe to announce that charges
would be dropped against Zuma.
Mpshe told journalists on Monday that the NPA had verified the tapes and
transcripts of the intercepted recordings - which were in the possession
of Zuma?s attorney - with the National Intelligence Agency.
The transcripts were declassified in order for Mpshe to make them public.
Mpshe, who said he felt betrayed, accused McCarthy and Ngcuka of
"manipulating the prosecutorial process before and after the (ANC)
Even though Zuma's prosecuting team had acted properly, honestly, fairly
and justly throughout, McCarthy's "conduct amounts to a serious abuse of
process and offends one's sense of justice", the acting prosecutions
Matheson said given that the recordings appeared to have been made in
late 2007, McCarthy was not in a position to recall whom he had spoken
to and what was said.
He therefore needed the full audio tapes and transcripts.
Renewed efforts were being made to get these from the NPA.
In a letter dated April 2 to Mpshe, McCarthy made clear that NPA and the
Scorpions were in possession of all the official records, files and
correspondence about the decisions taken in the Zuma matter.
McCarthy put the ball back in Mpshe's court noting that in the "final
analysis, the decisions about whether to charge, on what counts and
when, were taken by you and Advocate (Thanda) Mngwengwe".
Mngwengwe, the Scorpions investigating director who reports to McCarthy,
confirmed in a recent media interview that he had taken the decision.
McCarthy had the backing of the World Bank which was "satisfied he's
acting in a proper manner", Matheson said.
"They are supporting him."
Earlier this week former National Assembly speaker Frene Ginwala - who
headed the inquiry into whether NPA boss Vusi Pikoli was fit to hold
office - called for the World Bank to act against McCarthy.
The SACP also said the World Bank should suspend him.
ANC wants ex-npa bigwigs punished
Zuma: Payback time
April 07, 2009 Edition 1
Karien du Plessis, Angela Quintal & Karyn Maughan
IT'S PAYBACK time and the ANC wants former NPA bigwigs Bulelani Ngcuka
and Leonard McCarthy punished for allegedly conspiring against Jacob Zuma.
This emerged yesterday after acting National Prosecuting Authority boss
Mokotedi Mpshe formally announced that charges would be dropped against
the ANC president.
Mpshe cited evidence of taped telephone conversations between Ngcuka and
McCarthy as having played a key role in his decision.
While Mpshe made clear the State's case against Zuma was strong, he said
McCarthy's alleged abuse of the legal process made it "unfair as well as
unjust to continue with the prosecution".
It was therefore neither possible nor desirable for the NPA to continue
with Zuma's prosecution.
Mpshe said that while this did not amount to Zuma's acquittal, charges
would be formally withdrawn after a court hearing.
KwaZulu-Natal Judge-President Vuka Tshabalala confirmed that this would
be done in the Durban High Court at 10am today.
Mpshe put the blame squarely at McCarthy's door. He said he felt
"personally wronged and betrayed", especially as he had given evidence
under oath that there had not been any meddling or manipulation in the
Asked if he would resign, Mpshe was adamant he would not as he was not
Although Ngcuka and McCarthy could face possible criminal charges, they
will not do so without a fight. Ngcuka was in consultation with his
legal team yesterday and was expected to issue a statement today.
McCarthy, who heads the anti-corruption unit at the World Bank, has yet
to break his silence, although both men want copies of the tapes that
have been used to nail them in public.
Meanwhile, politicians emerged relatively unscathed, including former
president Thabo Mbeki, who has long been accused of being part of a
political plot against Zuma.
Mpshe said the NPA had not asked for a statement from Mbeki, because "in
listening to the discussions we could not find any trace that the former
president was involved in any of this. We did not find any conclusive
evidence (against Mbeki)."
While not denying the reference to "the big man" contained in the
intercepted McCarthy recordings, Mpshe said he could "not say who he
(McCarthy) is referring to".
Questioned about communications suggesting that McCarthy and Mbeki had
met, Mpshe answered: "That's what Leonard said. I don't have that proof
that they met."
Mbeki's spokesman, Mukoni Ratshitanga, said the former president would
not be commenting on withdrawal of charges against Zuma.
"It was the NPA, not Mr Mbeki, who preferred the charges in line with
powers vested in them as a prosecution agency by the constitution of the
Republic. It is worth recalling that while he was president of the
republic, Mr Mbeki's office consistently declined to comment on the
While admitting it was still difficult for him to comprehend how
McCarthy's "abuse of power" could have happened, Mpshe said he believed
"it is vital the NPA must expose this conduct and deal with the
consequences as honestly and constructively as possible if it is to have
any chance of rebuilding its credibility and integrity".
He said the NPA believed it was "vital that a full and proper
investigation be conducted by a judge or independent person to make
recommendations about any further actions to be taken" in regard to
McCarthy's interference in high-profile investigations, including that
against Zuma and suspended National Police Commissioner Jackie Selebi.
"While the NPA will continue with its investigations, it has also
decided to prepare a full report (on the McCarthy interference evidence)
and present it to the Minister of Justice and the President to decide on
further action," he said.
The NPA, Mpshe said, had also discovered "significant new information"
about the Special Browse Mole investigation against Zuma - which centred
on allegations, later widely rubbished, that Zuma was being bankrolled
by several African leaders and was party to a plot against Mbeki.
Today, on Zuma's 46th date in court, all charges against the ANC
president will be formally withdrawn in the Durban High Court.
NPA spokesman Tlali Tlali confirmed that all the charges against Zuma
and his corruption co-accused, French arms company Thint, would be
formally withdrawn at 10 this morning.
Judge-President Tshabalala said he had been contacted by Zuma's
attorney, Michael Hulley, yesterday.
He will preside over the hearing himself, because courts in the province
are officially in recess and most judges are on leave.
McCarthy has plenty to answer for
April 07, 2009 Edition 1
When Scorpions head Leonard McCarthy appeared in Parliament on February
26 last year, he told MPs that he did not want to sound like a
More than a year later, the once lowly prosecutor from Athlone, Cape
Town, stands accused of being an arch-conspirator against Jacob Zuma.
In one venue that Tuesday, Parliament's joint standing committee on
intelligence was holding a briefing on its investigation of the Special
Browse Mole report.
The committee accused the Scorpions of collecting political intelligence
without a mandate, and it lay the blame squarely at McCarthy's door.
The 18-page Browse Mole report, leaked to the press in 2007, claimed
that Zuma, the ANC deputy president at the time, was involved in a
conspiracy to topple Thabo Mbeki, then the president of the country.
Parliament recommended that the executive act against McCarthy.
On the other side of the parliamentary complex, McCarthy was telling the
National Assembly's justice committee that there were attempts to
destabilise his unit.
He said top staff members' phones were being tapped and their computers
hacked. McCarthy even alluded to a secret report to Mbeki that had been
"I don't want to sound like a conspiracy theorist; I'm saying there's
another hand I cannot read," he told MPs then.
The ANC's resolution that the Scorpions should be dissolved - taken in
Polokwane in December 2007 - meant McCarthy would be first in the firing
The rumour mill was spinning with questions about whether he had the
necessary security clearance, about his past as a prosecutor of the old
order, about whether he had a hotline to the presidency.
The Scorpions' investigation of the now suspended National Police
Commissioner Jackie Selebi had resulted in threats of a repeat stand-off
between the two agencies.
As the inter-agency rivalry and battles continued, McCarthy was under
police surveillance, his phone tapped and his private life under
scrutiny. There were also whispers of blackmail, which were associated
with the ANC's internal battles that had consumed the security and
McCarthy was also alleged to have blocked investigations into the
Scorpions' secret informer fund - the C Fund - which, according to an
internal report, was looted by some investigators.
In May, former South African National Defence Force chief Siphiwe
Nyanda, an influential ANC national executive committee member, said
McCarthy was the wrong person to head the Scorpions. He stressed that
McCarthy had no role to play once the Scorpions had been dissolved and a
new unit set up.
McCarthy continued his job search abroad while Brigitte Mabandla, then
the justice minister, considered whether he should face disciplinary action.
But despite parliament's urging that action be taken against McCarthy
because of Browse Mole, Mbeki agreed to release him to join the World
Bank to head its anti-corruption unit in June.
McCarthy has remained silent about claims that he was taking
instructions directly from Mbeki and his cronies, including former NPA
boss Bulelani Ngcuka, although the public release of declassified
transcripts of recordings will require some explanation.
The recordings include conversations McCarthy had with Ngcuka and
others, including Mbeki. The transcripts show that there were talks
about the right time to charge Zuma.
Whether McCarthy is the arch-conspirator or the fall guy will become
clear only if and when the NPA puts its money where its mouth is. It
will have to move to charge him for defeating the ends of justice and
One embarrassment after another for Mabandla
April 07, 2009 Edition 1
It's been an embarrassing few weeks as Public Enterprises Minister
Brigitte Mabandla prepares to bow out of office and active politics
after the April 22 election.
In a mere 10 days, the minister has had to deal with her cabinet
colleagues' red faces over her mishandling of former South African
Airways CEO Khaya Ngqula's financial settlement.
Then it was the Supreme Court of Appeal's ruling that her refusal - as
then justice minister - to process 383 applications for pardons from
jailed IFP members was unconstitutional.
Yesterday, Mabandla was back in the news, when the National Prosecuting
Authority confirmed that her cellphone was used by former president
Thabo Mbeki to speak to then Scorpions boss Leonard McCarthy on December
19 last year.
The selected transcripts of the recording were made public yesterday in
an attempt by the NPA to justify the dropping of criminal charges
against ANC president Jacob Zuma.
It is during this conversation - relating to McCarthy's World Bank job
application - that Mbeki asks: "Do you know who is speaking?"
McCarthy: It sounds like the president?
McCarthy: How are you, president?
Mbeki: You have to choose, Leonard, now whether you say former president
McCarthy: You will always be my president, you will always be my president.
Mbeki then explains that Mabandla told him some time back that McCarthy
wanted to see him and that he will call him a few days later.
The meeting appears to relate to the permission McCarthy needed from the
president to secure the World Bank job in Washington.
Mabandla also had a conversation with McCarthy 10 days later, in which
he explained that he had met Mbeki and wanted to give her feedback.
It is clear from the transcript that Mabandla is worried about how an
early trial date for Zuma would result in accusations of "conspiracy",
and she describes the situation as "really bad".
She notes that acting prosecutions boss Mokotedi Mpshe has told her that
Zuma's prosecuting team wants an earlier date and is angry about "the
Mabandla could not be reached for comment yesterday to explain what she
had meant in her conversation with McCarthy and why she had denied at
the weekend that Mbeki had used her phone.
The NPA made it clear that neither Mbeki nor Mabandla was in its line of
fire. - Mercury Correspondent
Tapes implicated him in trying to block selebi case
McCarthy told to give 'Ouboet' a break
April 07, 2009 Edition 1
The recordings and SMSs that freed Jacob Zuma have implicated
ex-Scorpions boss Leonard McCarthy in the attempted sabotage of Jackie
Selebi's corruption prosecution - at the behest of his "emperor".
And, while the State has insisted the SMSs do not constitute evidence of
political interference by ex-president Thabo Mbeki in its Zuma
prosecution, they have again raised questions about Mbeki's role in the
case against Selebi.
Coded SMS discussions between McCarthy and an intelligence officer -
"Luciano" - released by the NPA yesterday, have at the very least
supported axed prosecuting boss Vusi Pikoli's suggestions that the
National Prosecuting Authority's review of the evidence against Selebi
was prompted by political pressure.
Referring to Selebi as "Ouboet", McCarthy reveals in one of the coded
SMSs - sent after Pikoli was suspended following the issuing of arrest
and search warrants against Selebi - that he had "been advised to give
Ouboet… a break in the interest of SA".
Questioned by Luciano as to who was asking him, McCarthy responds: "High
Power. Can't disclose. Gov in power. Undertaking."
Luciano answers: "What did Jesus say? Give to the emperor what is due to
him… You serve at the pleasure of the emperor. Any other choice wld
(sic) mean not serving at the pleasure of the emperor."
"I hear you emperor sir. They're asking for a review," McCarthy responds.
Luciano: "Primus salus amicus et familia (honour first your friends and
A day after this, McCarthy received an SMS from former prosecuting head
Bulelani Ngcuka, which the NPA has described as appearing to confirm a
meeting with Mbeki.
Mbeki's spokesman Mukoni Ratshitanga yesterday declined to comment,
while acting prosecuting head Mokotedi Mpshe maintained the NPA had no
evidence that McCarthy had met Mbeki about the case against Zuma and had
therefore not asked Mbeki to explain claims he had interfered with the
He did not specifically address Mbeki's role in the Selebi prosecution
but said the NPA had, in addition to probing McCarthy's interference in
the timing of Zuma's December 2007 corruption recharging, "also tried to
investigate and assess the impact of the revelations on other aspects of
our work that happened in the past".
"However, in the time available, it has simply not been able to deal
fully with all these aspects and come to firm conclusions.
"While the NPA will continue with the investigations, it has also
decided to prepare a full report and present it to the minister of
justice and the president to decide further action.
"The NPA believes it is vital that a full and proper investigation be
conducted by a judge or independent person to make recommendations about
any further actions to be taken, whether of a disciplinary or criminal
nature, as well as the framework within which the NPA operates, to
ensure such abuses never occur again."
Mpshe said the intercepted communications would not necessarily affect
other high-profile cases the NPA was handling. "We need to examine every
case on its own merits," he said.
World Bank appoints new anti-corruption head
6 May 2008
Three and a half months after the resignation of Suzanne Rich-Folsom,
the controversial head of the World Bank's Department of Institutional
Integrity (INT), the Bank has appointed Leonard McCarthy as the new head
of its internal anti-corruption unit.
Reuters reports that Leonard McCarthy, the head of South Africa's
Scorpions crime-fighting unit, has been appointed as the new head of the
World Bank's Department of Institutional Integrity (INT), the Bank's
internal, anti-corruption unit. He assumes his post on June 30, 2008.
According to the article, South African President Thabo Mbeki had agreed
to release McCarthy from service to take up the position as vice
president of the INT. The Scorpions, officially known as the Directorate
of Special Operations, was independent of the South African police and
reported to the National Prosecuting Authority. It was established to
fight high-profile corruption cases and organized crime. However, the
Scorpions were disbanded after pressure from supporters of Jacob Zuma
accused it of political abuse. McCarthy was appointed to the World Bank
post a day after the Scorpions were dissolved.
The INT had come under intense criticism under its former head, Susan
Rich-Folsom's, leadership. An independent review of the INT conducted in
September 2007 (known as the Volcker Panel review), found the internal
anti-corruption unit was fraught with weak management and a conflict of
interest at its upper management. Rich-Folsom resigned from her post in
mid-January this year.
South African "Scorpions" boss to join World Bank, by Leslie Wroughton,
May 5, 2008. (Reuters website)
McCarthy's World Bank move mourned
May 7, 2008
By Donwald Pressly
Cape Town - The appointment of Scorpions boss Leonard McCarthy to head
the World Bank's anti-corruption unit has been greeted with despair by
opposition parties, while the ruling ANC - which took the decision in
December to disband the Scorpions - has simply wished him well.
McCarthy's appointment was announced by World Bank president Robert
Zoellick just after the government announced that the Scorpions - set up
as an FBI-style unit reporting to the national prosecuting authority to
investigate high-profile corruption - would be absorbed into the SA
Police Service. ANC secretary-general Gwede Mantashe accused the unit of
conducting a witch-hunt against the ANC.
McCarthy, who becomes the bank's vice-president of institutional
integrity on June 30, led the corruption case against ANC president
Jacob Zuma. In his new job he will investigate fraud in development
Democratic Alliance leader Helen Zille, who has fought for the retention
of an independent Scorpions unit, said McCarthy was an example of "the
cream of the crop" who was snatched up internationally "because we can't
tolerate excellence locally". She added that local mediocrity and
corruption could not tolerate talent and integrity.
ANC spokesperson Jessie Duarte simply repeated the comment made by
Mantashe: "We [the ANC] wish him well."
Gavin Woods, the former chairman of the standing committee on public
accounts who is now with the National Democratic Convention, noted that
Scorpions talent was being poached by the SA Revenue Service as well as
by crime units abroad, including Australia.
A treasury source noted that other South Africans who were drawn to the
World Bank over the years included Mamphela Ramphele, who served as one
of the bank's managing directors; and Ian Goldin, a former Development
Bank of Southern Africa chief executive who was vice-president of the
World Bank from 2003 to 2006.
Political analyst Steven Friedman said the public would view the loss of
McCarthy as a sacrifice of crime fighting capacity.
T-Sec economist Mike Schussler said it was inevitable that there would
be a move of skilled South Africans to international organisations.
Philip Armstrong, a former executive with Anglo American and the Altron
Group who was the principal convenor and editor of the 2002 King report
on corporate governance, is now the head of the Global Corporate
Governance Forum, which was established by the World Bank, the
Organisation for Economic Co-operation and Development, and the
International Finance Corporation.
McCarthy was not available for comment.
Wall St Journal
* APRIL 7, 2009
McCarthy Allegations Put World Bank in Spotlight
By BOB DAVIS
WASHINGTON -- When the World Bank signed Leonard McCarthy as its
anticorruption czar last year, the bank looked to overcome divisions
over how it handles graft probes.
But allegations that Mr. McCarthy in his old job as a South African
investigator pursued a political agenda threaten to re-open old wounds
at the bank.
During the tenure of former World Bank President Paul Wolfowitz, critics
charged the institution played favorites in deciding which
developing-nation projects to halt because of concerns of graft. An
outside review panel found the Department of Institutional Integrity
under Mr. McCarthy's predecessor, Suzanne Folsom was marred by "serious
operational issues," although it praised her professionalism.
Robert Zoellick succeeded Mr. Wolfowitz, who resigned under pressure
after questions were raised about whether he favored a girlfriend who
worked at the bank. Mr. Zoellick, who hired Mr. McCarthy to head the
integrity unit, took over the World Bank presidency with a vow for
greater transparency and accountability.
Nancy Boswell, president of Transparency International-USA, which tracks
development issues, said it was too early to judge the charges against
Mr. McCarthy. "The integrity of the bank's investigations unit is
essential," she said. "However, the reality is that smear campaigns
against corruption fighters are, unfortunately, all too common."
During his year at the World Bank, Mr. McCarthy has gained a reputation
as a blunt-spoken advocate for the importance of taking corruption
He has increased the number of debarments of companies engaged in
corruption compared to the past two years, and he is about to release a
manual for World Bank employees on spotting graft and corruption. He
also has started to shift investigation of staff misconduct that doesn't
involve serious issues of corruption to another department, which was a
recommendation of the outside review panel.
Tapes that torpedoed Zuma's prosecution
Leonard McCarthy: 'I am Thabo man, I mean we are still wiping the blood
from our faces, or egg, or egg and blood ...'
April 07, 2009 Edition 1
The NPA said it had "tried to be as fair as possible in its
transcription" of some of the contents of the recordings of
conversations between Leonard McCarthy and Bulelani Ngcuka, which the
NPA revealed yesterday because of the huge public interest in the matter.
In some instances the discussion has been paraphrased and the NPA has
"added comments on the recordings that explain issues that are not very
clear, or where information inside the NPA corroborates the conversations.
"We should stress that these are our own tentative comments and that
further investigation may cast more light on these issues."
Calls about manipulating the timing of charges for other purposes
Date: 7.11.2007 10h25 BN
LM: The second thing is, I, remembering what you said on Saturday, I
read yesterday's Business Day editorial, you must just read it.
BN: Just remind me.
LM: Yes, it's in line with your thinking.
LM: I am serious.
(An apparent reference to the Business Day editorial of 6.11.07. This is
of the view that it appears to benefit Mbeki when Zuma is not facing
LM: The third issue is, I met with the guy I mentioned, and you know his
line is almost like that of Sam.
LM: But he said he will. He says he will speak to the man but he is back
over the weekend, but he knew, he feels very strongly that I should not
see the guy directly.
LM: So that he has a shield, so that if this issue comes up then he can
say "I don't know what the f*** you are talking about".
(There is regular reference to the need to meet or discuss with "the
man", "the other fellow" or "guy" or "he". In calls 17, 21, 25, 26 and
28 it is clear that it is the president. In most other cases it is not
clear who is meant.)
BN: You know very interesting there is different points of view across
LM: You don't want to join this dinner with Mzi?
BN: No, you will see, his view is completely opposite - he agrees with
you. He and Sam agree with you. We had dinner on Sunday, quite a number
of people, mine was there, Dlamini was there ...
I put a hypothetical question to them, let's assume the judgment comes
out in next few weeks and it's in favour of those guys, what must happen
by when ...
Mzi was the only one on that table who said let's do it now, he was the
only one ...
If he tells you the truth he and tells you that, everyone there
disagreed with him.
Discussion of timing of the charge of Mr Zuma. Mzi Khumalo appears to be
the only one who supports LM in the view that it should happen before
Date: 26.11.07, 20h43, BN
BN: So you the only one who can just save this country from its madness.
BN: You know ....
BN: I just cant believe it, I really can't believe it, I don't know, so
we also busy now ...
And a ...
LM: And what does the big man say, is he oraait?
BN: I don't know ...
BN: I want to, I will try to call him later tonight, he is in a meeting
the whole day, at Shell House of all places (laughs).
LM: I did what you said I should do, I must say.
BN: You did right, right thing.
LM: Up until Friday, I received a strong memorandum to say charge and
charge now -
LM: No this Friday, the team says we have been f****** around with this
thing, we are allowing ulterior considerations to come in, it will
become an impossibility later - we now must take action and deal with
"finish and klaar" as Jackie Selebi says, but we will talk when I see you.
(Following a discussion about ANC provincial nomination conferences, LM
is the only one who can save the country. It appears as if BN requested
that LM obtain the view of the team to bolster the argument that charges
should brought before Polokwane - in case it was needed)
Date: Wednesday, 12.12.07, 10h41, BN
LM: But listen, I think you guys must just keep your heads open about
the "when" factor because I mean we will file our docs tomorrow, we
will, Mpshe is going on leave tomorrow and I am acting ...
LM: We will have our section 2e order and our, our… we will have
finalised the processing of the decision.
(The when factor is an apparent reference to whether Zuma should be
charged before or after Polokwane. The S2(e) order is a reference to the
authorisation for a racketeering prosecution that must be issued by the
BN: As long as you don't do it this weekend ...
LM: If we hold it back, it will be because the clever people like you
and others are saying to us that the country needs cool heads but I
would hate to have be seen to be wrong later.
BN: Just don't do it this weekend.
LM: It might change.
BN: I can't keep an open mind, you can't do it this weekend, our minds
(The exchange is repeated several times).
BN: Just don't do it this weekend.
LM: I wont move this weekend, if this change, just let us know.
BN: It won't change.
(BN makes it clear that they do not want Zuma to be charged before
Polokwane despite the fact that everything is in place to do so)
Calls about manipulating the filing of papers in the Constitutional
Court for other purposes:
Date: 12.12.07,10h15, SMS exchange between BN & LM
BN: When are you filing?
LM: We're stretched. It has tripled in size now. Likely to file tomorrow
afternoon or Friday afternoon only. What up!
BN: The sooner the better. Not later than tomorrow. It will assist a
(This refers to the NPA's reply to Zuma's application for leave to
appeal to the ConCourt in the search warrant matter. It was due on
Date: 12.12.07, 10h41, BN
LM: We must have one of those Yengeni nights - remember we said we will
not leave this f****** hotel until it's done.
(The reference is to a meeting with Mr Yengeni's lawyers that lasted
late into the night).
BN: If this thing comes out the way we discussed it yesterday ...
Those key issues, right ...
It will be a devastating one for them ...
And it will cause people to wake up to know what they are actually doing ...
Without being dramatic, without you making arrests ...
It will say, this is what we have, this is what we have, and we are
forced to state it now and people will wake up think what are we doing ...
LM: Friday, by Friday people are packing bags, they won't even read the
f****** newspapers ...
BN: That is the thing, that is the thing, that is why it will be good if
it could come out today (ie Wednesday)
LM: Today is difficult, I will call a Yengeni night, we are not leaving
here until we finalise this tomorrow morning, we file by lunch time and
give it to the media,
BN: You made my day.
(This is a discussion about the need to file it earlier so that it can
be reported in the newspapers before the delegates leave for Polokwane).
Date: Thursday, 13.12.07, 12h20, Cell, BN
LM: What is the mood like?
BN: Is it out?
LM: No no, I am just checking the pulse of securities.
LM: You know, I thought I will give call you once a day, twice a day to
hear whether the position has not changed ...
That thing will only be filed tomorrow ...
So we will probably only file tomorrow at about 12h50, we have a date
for 10 to 1.
BN: How does it look?
LM: It's ugly, you need someone who can nitpick and read through all
that s*** of 212 pages, and look at para 79…
BN: Can you deliver a draft to my place?
BN: I will be in Johannesburg.
LM: I will get, I will rather come myself, I don't want to take changes ...
BN: No I will be late tonight ...
LM: I will wait for you, or see you first thing in morning. I don't want
intermediaries here ...
BN: Ok, you're right ...
LM: Zuma will say we are conspiring against him ...
LM: Can I ask, the script has not changed yet ...
BN: Ja, no ...
LM: Because (do/don't) feel like going to Polokwane and charging him
(Continued discussion about the need to file ConCourt papers earlier.
The position or script are apparent references to whether Zuma should be
charged before or after Polokwane. LM undertakes to deliver a draft of
the ConCourt papers to BN personally to avoid it becoming known. It is
unclear whether he says he "do" or "don't" want to do this).
Date: Friday, 14.12.07, 10h53. BN
LM: are you in position where I can drop something off or send someone
to drop something off?
BN: Drop it at home, not there yet.
LM: The one thing is a eight-pager, which you should read because it
deals with whatever is new
The rest is just same s*** we have heard for the last three years ...
LM: I want to get this to you, I can't leave it in envelope with drivers
and things it is too risky. My guy can drive to where you are and give
it to you
BN: It's not possible, in East London.
LM: Can also fax it to you.
BN: I will give you a fax number.
LM: You must physically stand there and wait for it.
(LM prepares and sends a short summary of key issues that are newsworthy
to BN for apparent distribution to the media).
Date: Friday, 14.12.07, 12h03, SMS, BN
BN: The fax number is 040 653 2223. Thanks
Date: Friday, 14.12.07, 12h32, SMS, BN
BN: I am standing next to the fax machine. Hope you won't forget me.
Date: Friday, 14.12.07, 12h43, SMS BN & LM
BN at 12h43: Got it. Thank you very much.
LM at 12h56: Hold on to it for a while, until…
Date: Friday, 14.12.07, 13h08, BN
LM: I just wanted to say it's been filed, I am told you can show it even
to the guy on the beachfront.
LM: It is in court, anyone can access it - I just got an sms, it was
filed 3 minutes ago.
(LM informs BN that papers have been filed and can be distributed )
Apparent political affiliation:
Date: 24.12.07, 11h49 (Voicemail to F Davids).
LM: Davids, uh, McCarthy here, give me a ring please, you send me 'n
gevaarlike sms here just before Christmas. I am Thabo man, I mean we are
still wiping the blood from our faces, or egg, or egg and blood from our
faces. Saw the man on Friday evening, we planning a comeback strategy
And once we have achieved that, we will clean up all around us my
(Allegiance to Mbeki, confirmation that they met, and "we" are planning
a comeback strategy)
Discussion with person in private intelligence industry about seemingly
political solutions to NPA cases:
Date: 16.12.07, SMS exchange between Luciano and LM.
LM: I have been advised to give Ouboet and Oujan a break in the interest
of SA ... Tenous times. QV?
L: What did Jesus say? Give to the emperor what is due to him and to the
church what is due to her. You serve at the pleasure of the emperor. Any
other choice would mean not serving at the pleasure of the emperor
LM: I hear you emperor, sir. They're asking for a review. What...
L: Primus salus amicus et familia. That's the motto
LM: Yea. Threatening to expose no. 1
L: Approach hold even if Lume looses (sic)
(As far as can be established, Luciano is a private intelligence
operative. Ouboet is Mr Selebi. Oujan is probably Mr Zuma. (Presumably
this is a review of the cases. "Lume" is the nickname for Mngwengwe,
Investigating Director of the DSO)
Date: 17.12.07 SMS exchange between Luciano and LM.
L: Thought over night - 1. Recommend we help you find 2 sympathetic and
credible international lawyers that can join each of the 2 reviews.
2. International component important for SA's reputation and your own.
If carefully selected will support objective.
3. In Ouboet's case need international component to deal decisively with
O'Sullivan factor. Matter also high profile given K allegations, media
interest and focus on crime in lead up to 2010.
4. Iro Oujan recommend a comprehensive review is done of ALL MLA and
prosecution cases are done flowing from arms deal not just his by review
panel with international lawyers as you originally recommended. cont
5. You can then deal with oujan in context of broader review.
6. If you are going to do this in interest of SA recommended you request
6.1 You submit review report to Special Committee of 4 ministers
justice, intel, foreign affairs and safety and security. Do not take
sole responsibility. Yr current line management structure will result in
6.2 Recommend you come to clear agreement about SAG support for the next
phase of yr career including a date.
6.3 You are going to need resources incl special budget because above
all the media will have to be managed locally and globally. End.
(Proposal for what appears to be a further review panel for the Selebi
(and Zuma) matters. The Selebi review panel had concluded its work at
the end of November 2007. K is probably Kebble. SAG is SA Government.
The review panels appear to be linked to the future World Bank position).
Mokotedi Mpshe ended his presentation by saying that it was against this
broad principle of abuse of process that the conduct of McCarthy must be
seen and tested.
"The question for close consideration is encapsulated in expressions
such as 'so gravely wrong', 'gross neglect of the elementary principles
of fairness', 'so unfair and wrong', 'misusing or manipulating the
process of the court'. If the conduct can be so categorised, it would be
unconscionable for the trial to continue.
"Using one's sense of justice and propriety as a yardstick by which
McCarthy's abuse of the process is measured, an intolerable abuse has
occurred which compels a discontinuation of the prosecution.
"What actually triggers the abuse of process is a major determining
factor, because it is that trigger which determines the purpose of the
abuse and reveals whether the conduct in question is directed at a
legitimate or illegitimate purpose.
"In the present matter, the conduct consists in the timing of the
charging of the accused. In general, there would be nothing wrong in
timing the charging of an accused person, provided that there is a
legitimate prosecutorial purpose for it and the accused is aware, should
be aware or has been made aware of such purpose. For example, the timing
may be related to the availability of witnesses, or the introduction or
leading of specific evidence to fit in with the chain of evidence.
"It follows therefore that any timing of the charging of an accused
person which is not aimed at serving a legitimate purpose is improper,
irregular and an abuse of process. A prosecutor who uses a legal process
against an accused person to accomplish a purpose for which it is not
designed abuses the criminal justice system and subjects the accused
person to that abuse of process. Abuse of process through conduct which
perverts the judicial or legal process in order to accomplish an
improper purpose offends against one's sense of justice.
"The above implies the following:
"Mr McCarthy used the legal process for a purpose outside and extraneous
to the prosecution itself. Even if the prosecution itself as conducted
by the prosecution team is not tainted, the fact that Mr McCarthy, who
was head of the DSO, and was in charge of the matter at all times and
managed it almost on a daily basis, manipulated the legal process for
purposes outside and extraneous to the prosecution itself. It is not so
much the prosecution itself that is tainted, but the legal process itself.
"Mr McCarthy used the legal process for a purpose other than which the
process was designed to serve, that is for collateral and illicit
purposes. It does not matter that the team acted properly, honestly,
fairly and justly throughout. Mr McCar-thy's conduct amounts to a
serious abuse of process and offends one's sense of justice.
"What Mr McCarthy did was not simply being over-diligent in his pursuit
of a case, it was pure abuse of process. If Mr McCarthy's conduct
offends one's sense of justice, it would be unfair as well as unjust to
continue with the prosecution.
"In the light of the above, I have come to the difficult conclusion that
it is neither possible nor desirable for the NPA to continue with the
prosecution of Mr Zuma.
"It is a difficult decision because the NPA has expended considerable
resources on this matter, and it has been conducted by a committed and
dedicated team of prosecutors and investigators who have handled a
difficult case with utmost professionalism and who have not been
implicated in any misconduct.
"Let me also state for the record that the prosecution team itself had
recommended that the prosecution should continue even if the allegations
are true, and that it should be left to a court of law to decide whether
to stop the prosecution.
"However, I believe that the NPA has a special duty, as one of the
guardians of the constitution and the Bill of Rights, to ensure that its
conduct is at all times beyond reproach.
"As an officer of the court I feel personally wronged and betrayed that
on a number of occasions I have given evidence under oath that there has
not been any meddling or manipulation of the process in this matter.
"It is with a great regret that I have to say today that in relation to
this case I cannot see my way clear to go to court in future and give
the nation this assurance.
"The NPA has taken the information that was uncovered very seriously and
has done its utmost to get to the bottom of all the allegations that it
has investigated. It has also taken the initiative to co-operate fully
with the Browse Mole investigation into possible illegal intelligence
gathering activities in the DSO, and has managed to uncover significant
new information in the process.
"The NPA has also tried to investigate and assess the impact of the
revelations on other aspects of our work that happened in the past.
"However, in the time available, it has simply not been able to deal
fully with all these aspects and come to firm conclusions.
"While the NPA will continue with its investigations, it has also
decided to prepare a full report and present it to the minister of
justice and the president to decide on further action.
"The NPA believes that it is vital that a full and proper investigation
must be conducted by a judge or independent person to make
recommendations about any further actions to be taken, whether of
disciplinary or criminal nature, as well as the framework within which
the NPA operates to ensure that such abuses never occur again."
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