The second instalment of the state capture report, which deals with corruption at state-owned entities (SOEs) Transnet and Denel, was released publicly on Tuesday.

It was handed to President Cyril Ramaphosa by acting chief justice and chairperson of the state capture inquiry Raymond Zondo.

The president received the first part last month. It dealt with evidence of corruption, fraud and racketeering at SAA and the SA Revenue Service (Sars), among others. 

The presidency welcomed the latest report, saying it was a significant step towards ridding SA of corruption.

Here are some must-read stories about the report so far:

Malusi Gigaba knew the Guptas and did their bidding

The report said claims by former public enterprises minister Malusi Gigaba that he did not know the corruption-accused Gupta brothers must be dismissed.

Zondo said the former minister's relationship with the Guptas dates back to the early 2000s, during his tenure as ANC Youth League leader. 

He also allegedly used his position to appoint Gupta associates to key positions at government owned companies including Transnet.

Gigaba responds: ‘Zondo hopes this will kill me politically’

Taking to Twitter, Gigaba claimed that three years and R1bn later, Zondo had found no evidence to warrant a recommendation that he be charged with corruption.

“Instead of clearing me, he asks that I be investigated more in the hope this will kill me politically. If only he and his handlers knew,” said Gigaba.

Lynne Brown collapsed Denel

Zondo said the Denel was run to the ground after the dismissal of group CEO Riaz Saloojee and the board that was in charge between 2011 and 2015.

Former public enterprises minister Lynne Brown did not retain the board in 2015, which was followed by the collapse of the state-owned company and concerns over its liquidation.

Jailtime or R200m fine for abuse of power

The acting chief justice recommended government consider rendering it a criminal offence for public officials who abuse power to either appoint unsuitable candidates to key positions at state owned companies or those who unduly receive and award state tenders at the expense of the state.

He recommended a 20 year jail sentence or 200m fine, or both, for offenders. 

Lynne Brown did know the Guptas and their associates

Zondo said Brown lied when she denied knowing the Guptas, as evidence before the commission proves that she helped them loot state resources.

Despite claiming to not know Gupta associate Salim Essa, the commission obtained phone records relating to her, Salim Essa and Tony Gupta,” which shows she had telephonic conversations with alleged Gupta lieutenant, Nazeem Howa, as well as with Atul Gupta.

The conversations happened a day after the suspension of four Eskom executives, states the report.

Zondo to law enforcement agencies: 'investigate Gigaba and allies'

Zondo instructed authorities to investigate former Transnet group CEOs, Brian Molefe and Siyabonga Gama, former finance heads at the entity Anoj Singh and Garry Pita, and the company's former engineering chief Thamsanqa Jiyane.

The commission found the five, with the help of Gigaba's political cover-up, helped the Guptas loot the state-owned company and allegedly benefited financially from their criminal syndicate between 2010 and 2018. 

Inside the Molefe and Nyanda's alliance

Zondo further recommended authorities investigate and charge Molefe for unduly paying R20m to a company owned by a former minister, Gen Siphiwe Nyanda.

He is accused of breaching provisions of the Public Finance Management Act when he approved the settlement to General Nyanda Security (GNS) Advisory Services in January 2016.

Transnet's R54bn rip off

Zondo recommended that former bosses at Transnet be charged for inflating prices of locomotives that were initially set to cost R38.6bn before the price was increased to R54bn without any valid justification.

How the Guptas got access to Transnet

The acting chief justice said recommended Molefe, Singh, Gupta associate Eric Wood and financial services company Regiments Capital, with its associated people, be investigated for “illegal conduct on charges of corruption”. 

This relates to the individuals and companies receiving and laundering R79.23m which was paid by Transnet to a company owned by Woods and associates Regiments, on April 30 2014. 

How the Guptas captured Denel

The report reveals that the Guptas captured Denel through the procurement of the Gauteng-based defence manufacturing company VR Laser in 2014.

They or their associate Essa is accused of “engineering for themselves a position as Denel’s most privileged supplier of complex engineering systems. This included steel armour plates and being Denel’s single and exclusive partner.”

Zuma helped capture Transnet 

The report found former president Jacob Zuma's testimony that he had no hand in the capture of Transnet is not true.

Zuma, the commission found, insisted on appointing 'preferred candidate' and tainted Siyabonga Gama as Transnet CEO ahead of Sipho Maseko. The report states Zuma wanted Gama at the helm, despite facing serious allegations of misconduct relating to tenders. 

Zuma told the commission he had no preferred candidate for the Transnet GCEO position, however, the report said it has evidence contrary to this claim.

SA reacts

Shortly after the report went public, scores took to social media to weigh in on it. Some said they were not optimistic the recommendations of the commission would be implemented while others welcomed the report. Some questioned if the ANC will be able to self-correct and undo the damage.

The full report

Read the full second part of the state capture report in the article below