Tony Leon under fire over R17 billion infrastructure deal

Tony Leon’s company, Resolve Communications, has come under scrutiny for a R17 billion infrastructure deal involving one of its clients.

The company was forced into the public eye after former Democratic Alliance (DA) leader John Steenhuisen accused Resolve Communications of unethical behaviour.

He accused Leon of using his influence within the Democratic Alliance to arrange meetings between clients and Ministers.

He also alleged that Resolve Communications pressured DA Ministers in President Cyril Ramaphosa’s cabinet to listen to its clients’ proposals.

Tony Leon denied any wrongdoing and said his company had acted similarly to other lobbying firms.

Over the last few weeks, Resolve Communications has been in the spotlight, with Ramaphosa saying the situation sounds like state capture.

Several political parties, including ActionSA, have called for investigations into Resolve Communications.

ActionSA has announced it will investigate a R17 billion infrastructure deal involving one of Tony Leon’s clients, UPL.

UPL is a multinational chemical manufacturing company based in India, which focuses on producing farming products such as pesticides.

In 2021, a UPL warehouse containing chemicals in Durban was set alight during South Africa’s civil unrest.

The warehouse contained millions of litres of dangerous chemicals, which were released into the surrounding environment by the fire.

The subsequent environmental disaster contaminated the area’s groundwater and harmed residents’ health.

UPL has not disclosed the full inventory of chemicals stored in the warehouse when it caught alight.

The company has also not faced any repercussions from either the national or provincial government for the incident, despite allegations that improper amounts of chemicals were being stored.

UPL was involved in a large-scale environmental cleanup operation after the disaster, which cost the company approximately R700 million.

Resolve Communications, UPL, and the Department of Infrastructure

ActionSA is demanding an investigation into UPL and Resolve Communications’ role in managing public relations after the warehouse fire.

ActionSA national spokesperson Michael Beaumont alleged that Resolve Communications was hired by UPL to manage public scrutiny in the wake of the fire.

UPL has also allegedly attempted to downplay the environmental impact of the fire and the company’s role in it.

Beaumont said a whistleblower had contacted ActionSA, alleging that UPL was being shielded from consequences by senior government officials.

This comes as UPL is currently involved in a R17 billion deal with Infrastructure South Africa.

Beaumont accused Resolve Communications of potentially attempting to protect UPL from repercussions while organising its involvement in the infrastructure deal.

He said that based on UPL’s previous actions, questions should be raised about the due diligence taken by government officials in deciding to work with the company.

“South Africans deserve complete transparency regarding the nature of the government’s engagement with UPL and whether any public officials exercised proper oversight before advancing the company’s interests,” he said.

“This raises serious questions about the due diligence undertaken by the government and whether sufficient consideration was given to UPL’s environmental record.”

The Department of Public Works and Infrastructure is run by a DA Member, Dean Macpherson, fuelling the allegations that Leon has attempted to influence DA Ministers and portfolios.

Beaumont said his party would use its oversight powers and legislative access to investigate the connections among UPL, Resolve Communications, and Macpherson’s department.

“We will utilise our full legislative access to obtain all relevant information and determine whether proper governance processes were followed,” he said.

Leon has repeatedly denied any wrongdoing and said he would never engage in unlawful or unethical activities.

Resolve Communications’ response

When asked for comment, Resolve Communications said it had no involvement in the deal between UPL and Infrastructure South Africa.

It said it provides limited services to UPL, specifically related to crisis communication and stakeholder engagement in the wake of the 2021 civil unrest.

This unrest affected many South African businesses, particularly in the Ethekwini area, which experienced significant looting and destruction.

Resolve Communications worked with UPL after this disaster to keep government departments and stakeholders informed about disaster relief efforts.

During these efforts, Resolve attempted to set up meetings between UPL and three members of the Department of Forestry, Fisheries and the Environment.

These meetings were intended to brief the department on UPL’s cleanup efforts following the destruction of its warehouse.

All three department members, Willie Aucamp, Dion George, and Deputy Minister Narend Singh, declined the meetings.

Resolve Communications said its actions did not in any way amount to an attempt to shield UPL from accountability.

“To suggest this shields anyone from accountability, or fails to address the impact of the spill, is either turning a blind eye to reality, or, in this case, more likely, attempting to score political points at the expense of the truth,” it said.

Resolve Communications said it was not involved in facilitating the deal between Infrastructure South Africa and UPL.

It said this matter was outside their scope of services for UPL and that they had no knowledge of the deal before it was publicly announced.

“We learned of this commitment the same way the rest of South Africa did: when it was announced at the South African Investment Conference,” it said.

During this conference, 81 investments were confirmed, representing R415 billion in pledged private capital.