A tale of how convicted drug dealer Glenn Agliotti enriched himself by doing deals with both ex-top cop Jackie Selebi and slain mining magnate Brett Kebble emerged in court on Tuesday.

Agliotti, the first witness in the corruption trial of former police chief Jackie Selebi, testified in the High Court in Johannesburg that he made payments to Selebi of "approximately R1-million".

Agliotti was channelling the payments to Selebi from Kebble, while also charging Kebble a $1-million "consulting fee" for the access to the former top cop.

"How much money did you pay him [Selebi]?," asked state prosecutor Gerrie Nel.

"Estimates of approximately R1-million," replied Agliotti.

"How was this made up?" asked Nel.

"In rands and US dollars," Agliotti said.

The payments were made over a period of "approximately a year and a bit," said Agliotti, adding he often cashed cheques and handed the money to Selebi in an envelope.

The court heard that Kebble paid about R26-million into an account for Agliotti to use to pay Selebi, but Selebi seemed to have only received about R1-million of that.

Agliotti testified how he was first introduced to Kebble by his former security head Paul Stemmet, who was later replaced by Clinton Nassif because Kebble felt he could not trust Stemmet.

Kebble, the CEO of JCI at the time and his confidante Johan Stratton met Agliotti, where they said they had "complaints" and "problems" that needed to be addressed at the highest level in the SA Police Service.

These problems included an investigation into DRD Gold mining company and the arrest of Kebble's father, Roger, at the airport, which Kebble believed to have been "wrongful".

"I then approached the accused, with the complaint, handed it to him, he then said that he would organise, to present our complaint together with all the relevant facts."

Agliotti set up a meeting between Selebi and several other police officers where former judge Willem Heath represented JCI. Stratton and Agliotti also attended this meeting. The purpose of the meeting was to "present their complaint and case to SAPS and then obviously to have it further investigated".

After this, the relationship with Agliotti and Kebble and his confidantes had been "cemented".

"I cemented a relationship with them... because of my relationship with the accused, they wanted the accused on board. I said to them it would cost one million US dollars, which was my consulting fee and they agreed to that."

Agliotti testified he and Selebi would "often meet, chat, shop together... Jackie and myself".

He told the court Selebi recruited him to work as a police informer. He received R10 000 when he was appointed as an informer. One of his first breakthroughs was providing information on a shipment of 1,2-million Mandrax tablets, with an estimated street value of R80-million in 2002.

Agliotti requested reward money from Selebi for the drug bust.

"I phoned the accused and asked him if he was happy with the operation and he indicated that he was ecstatic."

Agliotti then left on an overseas skiing holiday.

"On my return, some time went by and then on my insistence, I was approached by Captain Morne Nel [his police handler] and Paul Stemmet and handed R100 000 in cash."

At the start of his testimony, Nel warned Agliotti that he might incriminate himself in some of his answers.

The court then adjourned so Nel could make a list of the specific charges Agliotti would be indemnified of if he co-operated with the State. Judge Meyer Joffe read out the indemnite agreement.

"Mr Agliotti, you will be obliged to answer any question... notwithstanding that that may incriminate you," said Joffe.

Agliotti would be discharged of prosecution for corruption, fraud, theft, money laundering, defeating the ends of justice and racketeering, all related to the charges Selebi is facing, if he co-operated.

"I must inform you, Mr Agliotti, if you answer frankly and honestly... you shall be discharged from prosecution," said Joffe.

Selebi, dressed in a navy suit and blue tie, looked tired, but managed a smile for prosecutor Gerrie Nel as he left the courtroom during the tea break. He once described Agliotti as his "friend, finish en klaar".

Agliotti testified he paid Selebi's child's medical bill in the 1990s, when Selebi was the head of the African National Congress's social welfare and development department.

"During the discussions, Mr Selebi indicated to me he had his own problems... he had a medical bill... for his kids.

"I then volunteered to pay the bill for Mr Selebi. I had no problem with it, and I did so in the form of a cheque made out to the respective doctor," testified Agliotti.

But "nothing came" of their relationship at that stage, he said.

"The relationship with Mr Selebi... it was good and cordial... when nothing came of it we both went our own ways."

Agliotti saw Selebi again for the first time at a meeting in Woodmead, Johannesburg in early 2000, which was also attended by businessman Yusuf Surtee and Stemmet, who ran a security company called Palto at the time.

Agliotti said he attended as a friend and that the meeting had been set up by Surtee, Stemmet and Selebi.

"Pleasantries were exchanged and it was very nice to see the national police commissioner after such a long break in our relationship. I was very happy to see him and likewise, he was as well," Agliotti said.

"I was not part of the meeting but what happened was, was that Yusuf Surtee indicated to Selebi that Paul Stemmet had done some investigative work for him and could recommend him to assist the national commissioner and the police services in any way that he could."

Selebi's charges relate to payments he allegedly received from Agliotti, slain mining magnate Brett Kebble, and ex-Hyundai boss and mining businessman Billy Rautenbach.

The State, in papers before the court, alleged "Agliotti and/or Kebble and or Rautenbach and/or the relevant corporate entities have benefited the accused in the period 1 January 2000 up to and including 31 December 2005... in an amount of at least but not restricted to R1.2-million... This was by way of payments by Agliotti on his own account and on behalf of Rautenbach, the Kebbles and others."

The State said the relationship between Selebi and Agliotti, who met in 1990, "entails numerous payments in South African and foreign currency, as well as clothing and other gifts".

"In return, the accused rewarded Agliotti by inter alia informing him of the existence of an investigation into his criminal activity."

Selebi claims he is the victim of a plot against him cooked up by two former chief prosecutors, Bulelani Ngcuka and Vusi Pikoli, whom his lawyer has accused of fabricating evidence against him.

The investigation started in 2006 and Selebi first presented himself to court in 2008.

A list of state witnesses includes Agliotti, Rautenbach, acting prosecuting boss Mokotedi Mpshe and Clinton Nassif, who was responsible for Kebble's security.

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