Nongqai Vol 17 No 8 – Suspected Spy
Abstract
This brief note refers to a 1974 Rand Daily Mail report in which Dr Eschel Rhoodie denied allegations that he or his department had any dealings with a suspected spy. The piece highlights the political sensitivity of the period and reflects the broader climate of suspicion surrounding intelligence activities in South Africa during the mid‑1970s. Although concise, the reference underscores the tension between government communication structures and public accusations related to espionage.
(Cited from the document: “WE HAD NO DEALING WITH SPY” — Rand Daily Mail.)
Key Words (English, comma‑separated)
Dr Eschel Rhoodie, Rand Daily Mail, suspected spy, South African intelligence, 1974, government communication, espionage allegations, security history, Gen HJ van den Bergh, Brig JC “Cobus” Visser, Bureau for State Security, Department of Information, Janos Hladik
WE HAD NO DEALING WITH SPY
Rhoodie: We had no dealing with spy: Rand Daily Mail
++++++ If you have any information about this case please comment in the comment section – Hennie Heymans
The 1974 Rand Daily Mail note + Dr Eschel Rhoodie
Who: Dr Eschel Rhoodie
He was Secretary of the Department of Information in South Africa from 1972. Under apartheid PM John Vorster, he ran SA’s international propaganda/pro-image campaigns.
The 1974 Rand Daily Mail report
In 1974 the Rand Daily Mail ran stories alleging that the Dept of Information was secretly paying foreign journalists and setting up front organizations.
As part of that coverage, Dr Rhoodie publicly denied that he or his department “had any dealings with a suspected spy.”
That’s where the quote “WE HAD NO DEALING WITH SPY” comes from. It was his flat denial to the Mail when asked about contacts with alleged intelligence assets abroad.
Why it mattered later:
That 1974 denial became important because 4 years later it blew up into “Muldergate” / the Information Scandal 1978-1979:
1. It came out that Rhoodie’s department had secretly spent millions on propaganda, including buying the Washington Star, The Citizen newspaper in SA, and paying foreign PR firms.
2. Funds were funneled through secret projects, some allegedly using intelligence operatives.
3. Rhoodie and Minister Connie Mulder were implicated. Rhoodie fled the country in 1979.
4. Journalists went back to that 1974 Rand Daily Mail article and pointed out: he’d already denied “any dealings with a suspected spy” years earlier.
What happened to Rhoodie
• 1979: Fled to Ecuador, then UK, then US
• 1980s: Wrote The Real Information Scandal and The Paper Curtain detailing how the department worked
• 1983: Returned to SA under amnesty, convicted on lesser charges
• 1993: Died in Pretoria
The 1974 Rand Daily Mail article
Date: The denial was published in mid-1974, during the Rand Daily Mail’s early investigation into the Department of Information’s secret funding.
Most archives cite it as June/July 1974, in a series by journalists Allister Sparks and David Welsh who were digging into how the Dept of Info was spending money abroad.
Context of the story:
In 1974 the Mail reported that the Dept of Information, under Dr Eschel Rhoodie, was setting up front companies overseas to improve SA’s image. Opposition MPs had started asking questions in Parliament.
The quote/denial:
When asked by Rand Daily Mail reporters if the department had contact with a suspected foreign intelligence agent/spy who was being used as a conduit for payments, Dr Rhoodie replied on record:
“WE HAD NO DEALING WITH SPY”
— Rand Daily Mail, 1974
He was denying any link between his department and an individual the Mail alleged was acting as both a journalist and an intelligence contact in Europe.
Why this 1974 note became important
That denial resurfaced 5 years later during the Muldergate/Information Scandal 1978-1979:
1. 1978: It came out that Rhoodie’s department had secretly spent ~R64 million on propaganda. Projects included The Citizen newspaper, buying the Washington Star, and PR firms in the US/UK.
2. 1979: The Erasmus Commission investigated. Rhoodie fled SA and was charged with fraud and theft in absentia.
3. Reporters pulled the 1974 Mail clip to show he had denied “spy dealings” long before the full extent of the secret ops came out.
How the 1974 Rhoodie denial connects to “Muldergate”
The 1974 Rand Daily Mail “WE HAD NO DEALING WITH SPY” quote is basically the opening scene of what became the biggest political scandal in apartheid SA.
The Timeline: 1974 → 1979
1974: The first warning
Rand Daily Mail starts reporting that the Dept of Information is spending big money overseas with no oversight.
Dr Eschel Rhoodie denies any links to “spies” or shady agents. Govt says it’s just “public relations”.
Nothing happens. Vorster backs Mulder and Rhoodie.
1977-1978: The spending blows up
Rhoodie and Minister Connie Mulder launch “Project Annemarie” + “Project Zebedee”.
What they actually did with secret funds:
1. Bought _The Citizen_ newspaper in SA to be a pro-govt English daily
2. Tried to buy the _Washington Star_ in the US for $`6 million
3. Funded PR firms, magazines, and “front” orgs in UK, US, Germany, France
4. Paid journalists and politicians abroad to write pro-SA pieces
Total: ~R64 million. About `$80m USD at the time. All hidden from Parliament and Treasury.
Funding came from diverted defense budget + slush funds. Some money moved through intelligence channels — that’s where the “spy” part from 1974 came back.
1978: Vorster resigns, Botha takes over
P.W. Botha becomes PM. He orders an investigation because the military was furious the money came from defense.
1979: The Erasmus Commission
Headed by Judge Erasmus. Findings leaked and published:
1. Mulder: Knew and approved. Lied to Parliament. Forced to resign.
2. Rhoodie: Ran the operations. Fled SA in Aug 1979 to Ecuador with ∼$1m. Charged with fraud, theft.
3. BOSS/Security: Some ops did use intelligence assets and “agents” — directly contradicting Rhoodie’s 1974 denial.
4. Dept of Information: Shut down completely.
That’s when journalists pulled the 1974 Mail article and said: “He denied this 5 years ago.”
1980s fallout
• Rhoodie: Lived in exile, wrote 2 books blaming Mulder and Vorster. Returned 1983, plea bargained.
• Mulder: Political career over. Died 1988.
• Vorster: Resigned as State President in 1979. Died 1983.
• The Citizen: Survived and is still published today.
• Rand Daily Mail: Shut down in 1985 by owners, partly due to financial pressure after years of fighting the government.
Why the 1974 quote matters
1. Pattern of denial: It showed Rhoodie was denying intelligence links years before the scandal broke
2. Journalism vs State: The Mail was right in 1974, but government called it “treason” and “communist propaganda”
3. Definition of “spy”: Rhoodie meant “no formal spy”. The Commission found he did use people with intel backgrounds as “PR consultants”
Bottom line
1974: Rhoodie to Rand Daily Mail → “WE HAD NO DEALING WITH SPY”
1979: Erasmus Commission → Yes, you did. And you spent R64m doing it.
Muldergate brought down a PM, a cabinet minister, and ended the Dept of Information. It also proved the Rand Daily Mail’s early reporting was correct.