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ANC councillor under investigation for alleged nepotism and corruption in R29bn SANRAL highway project
ANC councillor under investigation for alleged nepotism and corruption in R29bn SANRAL highway project

IOL News

time5 days ago

  • Politics
  • IOL News

ANC councillor under investigation for alleged nepotism and corruption in R29bn SANRAL highway project

In June, IOL investigations revealed that Mkhize and his wife, Nkule MaKhuzwayo, were implicated in a separate set of allegations involving payments from Base Major Joint Venture CSC, a Chinese-led consortium working on the N3 upgrade. Image: Facebook / Sanral Msunduzi Municipality politician Sibusiso Mkhize is at the centre of a growing corruption scandal over alleged nepotism, bribery and abuse of power in connection with the R29 billion SANRAL upgrade of the N3 highway between Durban and Pietermaritzburg. Mkhize, the long-serving ANC councillor for Ward 14, was appointed by Mayor Mzimkhulu Thebolla to serve on the Project Liaison Committee (PLC) for the massive infrastructure project, which forms part of the government's Strategic Integrated Projects (SIPs) initiative. 'Many of his employees are there purely because of nepotism,' a source said. 'This includes his son, Sthabiso Mkhize, and three maternal family members. This favouritism has sidelined poor, deserving, and qualified community members, fuelling widespread frustration and disillusionment.' Local sources also allege the existence of a 'pay-to-work' scheme, where job-seekers are expected to pay bribes of up to R3,000 to be considered for positions on the project. Residents of Mkhondeni and Willowfontein say they fear speaking out, citing Mkhize's alleged connections to influential taxi bosses. There are further claims that a company allegedly linked to Mkhize - via a friend acting as a front -is profiting financially from the highway project, raising serious concerns about conflicts of interest and procurement irregularities. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Allegations that Mkhize enjoys protection from higher municipal authorities compound the community's fears. 'It's a climate of fear; he appears to be shielded by municipal superiors,' one source added. Further concerns involve Mkhize's ownership of a company, allegedly fronted by a friend, which benefits financially from the project, raising serious conflict of interest questions and doubts about ethical governance. In June, IOL investigations revealed that Mkhize and his wife, Nkule MaKhuzwayo, were implicated in a separate set of allegations involving payments from Base Major Joint Venture CSC, a Chinese-led consortium working on the N3 upgrade. One source alleged that bribes exceeding R169,000 were paid into MaKhuzwayo's bank account, with ongoing monthly transfers of R25,000. Evidence suggests illicit dealings between local politicians and a Chinese joint venture, Base Major Joint Venture CSC, which could compromise the integrity of the R29 billion upgrade connecting Durban and Pietermaritzburg. The upgrade, part of South Africa's Strategic Integrated Projects (SIPs), aims to alleviate congestion, improve safety, and support economic growth by expanding the freeway from four to six lanes, with plans for eight lanes at key interchanges. The project is expected to create over 33,500 jobs and allocate R8.8 billion to black-owned enterprises. When approached for comment, both Mkhize and his son, Sthabiso declined to respond. Speaker of the Msunduzi Council, Eunice Majola, confirmed that the allegations are under internal investigation. 'The matter was referred to our internal audit for investigation. As the Council, we decided that it should be investigated internally. If the findings of the investigation warrant escalation, then that will happen at that time. For now, we are awaiting the outcome of the internal Audit unit which is investigating the matter into the alleged activities of Mr Mkhize.' Earlier in June, Msunduzi Mayor Thebolla acknowledged the seriousness of the allegations but emphasised that Mkhize's role was strictly as a municipal representative. 'He was nominated to the Project Liaison Committee by the municipality, but recent nominations have replaced him,' the mayor clarified. 'These allegations do not reflect well on the municipality.' SANRAL spokesperson Lwando Mahlasela confirmed that the national agency was actively investigating the claims. 'SANRAL takes these allegations very seriously. We are reviewing the situation and will communicate our findings once the investigation is complete.' The N3 project aims to improve transportation infrastructure, foster job creation, and support economic inclusion, but recent revelations threaten to undermine public trust. Some of the opposition parties in the municipalities are calling for urgent intervention. The EFF's member of Council Chuma Wakeni stated, 'The matter has been referred to the ethics committee, but delays are damaging the municipality's reputation. We need decisive action.' The ACDP's Rienus Niemand added, 'The SIU is investigating allegations of a widespread racket involving selling jobs and extortion. 'Low-level jobs are sold at R500, and prices increase with job levels. Several councillors are said to be involved. Niemand called for the "Immediate prosecution of involved individuals, which is essential to restore integrity.' Last month, Thebolla survived an opposition-led motion to investigate his alleged role in maladministration and procurement irregularities. The motion, which was listed under confidential items on the council agenda, draws on claims made by former municipal manager Lulamile Mapholoba during his defence against suspension proceedings early last year. The DA had submitted a motion to Speaker Majola's office earlier this June, calling for a probe into the mayor's conduct. The Speaker indicated the matter would need to be presented to the full council for consideration. In his presentation, Mapholoba accused Thebolla of making unilateral financial and administrative decisions under the city manager's or council's jurisdiction. He allegedly bypassed due processes in decision-making, including the irregular awarding of contracts and authorisations involving municipal funds. IOL Politics

KZN councillor and wife implicated in alleged corruption on R29bn N3 highway upgrade
KZN councillor and wife implicated in alleged corruption on R29bn N3 highway upgrade

IOL News

time02-06-2025

  • Politics
  • IOL News

KZN councillor and wife implicated in alleged corruption on R29bn N3 highway upgrade

Investigation reveals corruption allegations against local politician linked to N3 highway upgrade in Msunduzi Municipality Image: Facebook An exclusive investigation by IOL has uncovered disturbing allegations of corruption and financial misconduct involving a local politician and his wife, linked to the multi-billion rand N3 highway upgrade - a critical infrastructure project connecting Durban and Pietermaritzburg. The investigation suggests that a Chinese joint venture company, Base Major Joint Venture CSC, may be complicit in illicit dealings that jeopardise the integrity of the project. The Msunduzi segment of the N3 upgrade forms part of a broader initiative to enhance approximately 79.3 kilometres of freeway - a key route facilitating trade and mobility in South Africa. Valued at nearly R29 billion, the project aims to ease chronic congestion, improve safety, and enhance economic integration from Durban to inland regions. It is aligned with the government's Strategic Integrated Projects (SIPs), designed to spur economic growth and create jobs. However, behind the scenes, controversy appears to be mounting. Multiple sources have implicated local politician Sibusiso Mkhize, a councillor in the Msunduzi Local Municipality, and his wife, Nkule MaKhuzwayo Mkhize, in a scheme to siphon off funds via illicit payments. According to insiders, Mkhize - appointed by Mayor Mzimkhulu Thebolla to serve on the Project Liaison Committee (PLC) - allegedly solicited and received bribes from contractors working on the project. Some workers involved in the N3 upgrade have also raised concerns about intimidation and suppression, fuelling suspicions of high-level corruption. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Financial Flows and Evidence of Misconduct IOL's investigation uncovered financial records indicating that Mkhize received substantial payments, some of which were allegedly channelled into his wife's Absa bank account. Three electronic receipts, reviewed by IOL, reflect transactions of R169,000, R100,000 and R30,000 - all referencing 'G7 Base Major,' presumed to be linked to the joint venture company. Sources allege these payments have continued since the project's inception, with a regular monthly payout of R25,000 purportedly directed to Mkhize's wife. The revelations raise serious concerns around conflicts of interest, abuse of office, and potential kickbacks on a public-funded project. When approached for comment, Councillor Mkhize declined to respond, citing legal advice. His wife, Nkule MaKhuzwayo Mkhize, demanded the identities of IOL's sources, questioned the publication's legitimacy, and invoked privacy rights under the Protection of Personal Information Act (POPIA). She refused to provide further comment despite multiple requests. Absa spokesperson Carli Cooke confirmed that the account belonged to MaKhuzwayo Mkhize, lending credence to the allegations. IOL also contacted municipal authorities. Eunice Majola, speaker of the uMsunduzi Municipality, said the matter would be referred to the Rules and Ethics Committee for investigation. Mayor Thebolla acknowledged the gravity of the allegations, clarifying that Mkhize had been a municipal representative on the PLC but was replaced two months ago. 'These allegations do not reflect well on the municipality,' he said. 'Let's first agree this is a Sanral project. The municipality has no access to operational details. We merely nominate a council member to represent us. I recently nominated someone else to replace Councillor Mkhize.' Sanral, the national roads agency overseeing the project, confirmed it was investigating the matter. 'Sanral takes these claims very seriously. We are reviewing the situation and will communicate our findings once the investigation is complete,' said spokesperson Lwando Mahlasela. The N3 upgrade involves 15 work packages at a projected cost of R29 billion. It aims to create around 33,500 jobs, prioritising local labour, and channel R8.8 billion to black-owned enterprises to foster inclusive growth. The upgrade involves expanding the freeway from four to six lanes between Camperdown and Ashburton and eventually to eight lanes at the interchanges. IOL Politics

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