TRC Final Report

Volume 2

Chapter 6

Part Part4

Subsection 1

Volume TWO Chapter SIX

Special Investigation intoSecret State Funding

■ INTRODUCTION

1 The use of secret funding to promote the policies of the former state and to fund operations directed against the opponents of apartheid came to the attention of the Commission shortly after its inception. A copy of the reports of the Advisory Committee on Special Secret Projects, chaired by Professor Ellison Kahn, as well as the report of the Secret Services Evaluation Committee, chaired by Mr Amie Venter, were received from the President’s office on 16 October 1996.

2 Former President FW de Klerk provided the Commission with a briefing document giving a background to his investigations into covert activities and funding. He also made available the report of the Ministers’ Committee on Special Projects, chaired by the former Minister of Justice, Mr HJ (Kobie) Coetsee.

3 Members of the Commission subsequently met with the senior staff of the office of the Auditor-General and requested that the Auditor-General, Mr Henri Kluever, assist the Commission in obtaining an understanding of the nature and extent of covert accounts conducted by the former government. The Commission has not received information on the specific nature of the activities undertaken by the recipients of covert funding, nor did it investigate the actual use made of the funding. It is, however, clear that there were funds in secret bank accounts at the time of the Kahn Committee. Furthermore, the Auditor-General reported that a total of more than R2.75 billion was expended through the Secret Services Account between 1978 and 1994. This does not, however, constitute the full amount spent by state departments on secret and other sensitive projects. As is clear in the Auditor-General’s report, a vast number of projects would not have been formally registered as secret projects but were undertaken within departmental line functions. The Special Defence Account, for example, was used to fund ‘sensitive line function projects’ and the Department of Foreign Affairs funded projects designed to counter sanctions and other activities – as reported later in this chapter.

4 The need clearly exists for the President to appoint an appropriate committee to enquire further into covert funding – not least with a view to ensuring that, where possible, funds in covert accounts were paid back to the treasury. Where such funding continues to be absolutely necessary, clear guidelines need to be put in place and the nature and extent of such funding reported to Parliament on a regular basis. This requires an evaluation of existing structures and regulations governing the use of secret funds.

■ OVERVIEW OF STATE SECRET PROJECTS

5 An overview is provided below of certain projects undertaken by the South African Defence Force (SADF), South African Police (SAP), National Intelligence Service (NIS), Department of Foreign Affairs and Department of National Education, as presented to the Kahn Committee, the Ministers’ Committee on Special Projects and the Secret Services Evaluation Committee¹ .

6 Most projects appear to be related to the establishment of front organisations or actions aimed at counteracting the activities of the African National Congress (ANC) and its allies, primarily in the sphere of information, communication, disinformation, propaganda and counter-propaganda. Other projects were aimed at circumventing sanctions.

7 This is not a comprehensive list but aims to provide insight into the nature of some projects. The following constraints should be noted.

• The mandate of the Kahn Committee apparently required the committee only to consider those projects placed before it by relevant departments.
• Evidence suggests that not all existing projects were brought before the committee. It seems that some projects that were already being terminated were not referred to the committee.
• As indicated earlier, a vast number of projects were not formally registered as secret projects but were undertaken within departmental line functions.

South African Defence Force (SADF)

8 The SADF secret projects covered a range of activities such as publications, front organisations, and support to surrogate groups. Publications included Special Despatch (Project Olive), the Aida Parker Newsletter (Project Villa Marie), Christians for Truth (Project Camara) and Stand To (Project Mediant), as well as a printing press and publications in Botswana such as News Links Africa (Project Parker).

9 Secret projects concerned with contra-mobilisation included the establishment and support of conservative or ‘moderate’ organisations such as the Federal Independent Democratic Alliance (FIDA), known as Project Capital. FIDA had a head office in Johannesburg and thirteen regional bases, and is described in the report as "a moderate alliance of black organisations to combat violence and advance stability" that was "a very valuable source of information to the Defence Force on violence in black townships". Similarly, Project Napper covered the Eagles youth clubs, "another valuable source of information on violence in black townships", active in the Orange Free State, northern and western Cape, Vaal Triangle and southern Transvaal.

10 Other organisations include Vroue vir Suid Afrika (Women for South Africa – Project Leafy), Jeugkrag (Youth Power – Project Essay), the use of consultants in covert front organisations such as the South African Christian Cultural Organisation (SACCO), the Eastern Cape Sports Foundation, the Lion Life Research Corporation (Project Jetty), Veterans for Victory (Project Mediant), Family Focus, and the Western Cape Council of Churches (Project Camara).

11 Two of the more costly projects were Pacman and Byronic. Pacman was the code name for the International Freedom Foundation, which had offices in Johannesburg, Washington, London, Brussels and Bonn. Its objectives were described as the combating of sanctions and support to constitutional initiatives through publications, lobbying, conferences etc. It specifically supported Mr Jonas Savimbi and UNITA. Leading personalities in government circles in Europe and the USA were involved, with half of its funds coming from abroad. Pacman’s annual budget for 1991/92 was listed as over R10 million. In late September 1991, the Minister of Finance agreed to a one-off payment of R7 million, approved by Minster of Defence, "to enable the country to withdraw from the enterprise". This payment was vested in a trust controlled by trustees appointed by SADF.

12 Project Byronic related to an international programme in favour of UNITA. Contracts concerning leading political and governmental figures were scheduled to continue until the September 1992 elections in Angola. In late September, the Minister of Finance approved a payment of R7 million into a trust similar to that of Pacman, to end South Africa’s association with the enterprise. The project also involved the transport of goods to UNITA in Angola. A sub-project included the setting up and running of a commercial flight rental company, mainly to support UNITA, which was then to be closed with a R7 million payment to UNITA. The expenditure for the 1991/92 financial year was approximately R108.4 million, with a projected budget of R98 million for 1992/93.

13 Projects Rooibos and Hardekool provided "theological training for the independent churches … with the object of inculcating a moderate religious conviction in support of current constitutional initiatives".

14 Other projects mentioned to the Kahn Committee in name only included Gezina, Liberal, Mapoly, Scottish, Choke, Brussels, Eikenhof, Concert, Boesman, Kerwer, Instigator and Steenbras.

15 Project Marion was not put before the Kahn Committee. It was reported to the Ministers’ Committee on Special Projects in October 1992 as a project designed "to put Inkatha in a position to neutralise the assault by MK² against it" but having its mandate modified on 1 March 1990 "to maintain links with Chief Minister Buthelezi". It was reported that initial training took place in 1986 with sporadic contact and retraining until June 1989. Thereafter, Marion was meant only for financing travel costs and ‘inligtingskakeling’ (intelligence links) until March 1991. The books for the period until November 1991 in the 1991/92 financial year reflect only travel expenses for two security briefings of Chief Buthelezi by SADF members. Elsewhere in the report of the Commission, Project Marion is shown to have contributed directly to the perpetration of gross human rights violations.

16 Other projects not disclosed to the Kahn Committee but raised with the Ministers’ Committee on Special Projects in October 1992 include Project Ogden, Project Friendship (which established and funded a Directorate of Covert Collection front company, Longreach, to influence business people locally and overseas by means of a newsletter) and Project Liberal (the Quo Data research organisation which promoted Communications Operations (COMOPS) goals with certain media agents in Europe), all of which were being terminated in accordance with the State President’s guidelines (see below).