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IOL News
3 days ago
- Politics
- IOL News
‘Smear Campaign': Zikalala defends IDT CEO and slams media reports
Deputy Minister of Public Works and Infrastructure Sihle Zikalala has defended Independent Development Trust CEO Tebogo Malaka's appointment. Image: Picture: Doctor Ngcobo / Independent Newspapers / File Deputy Minister of Public Works and Infrastructure Sihle Zikalala has defended Independent Development Trust CEO Tebogo Malaka's appointment. He has hit back at mounting criticism over his alleged role in irregular governance at the Independent Development Trust (IDT), describing recent media reports as part of a 'sophisticated political smear campaign' aimed at discrediting him. At a press briefing in Pretoria on Tuesday, Zikalala said he had met and even exceeded his legal oversight obligations and had paused Malaka's appointment after assuming office in March 2023 to allow investigations into allegations of mismanagement at the IDT. He also confirmed that he had referred all related documents to the Public Protector for an impartial inquiry into both his actions and broader governance concerns at the entity. Zikalala's intervention follows weeks of reporting by the media, which alleged that he and former IDT board chairperson Kwazi Mshengu protected Malaka from scrutiny despite her alleged links to a R45-million office lease scandal. The reports claimed Zikalala quashed a forensic probe initiated by National Treasury and facilitated Malaka's promotion from acting to permanent CEO. But Zikalala rejected those claims outright. 'There is no investigation that was ever squashed,' he stated. 'All investigations I requested were obstructed not by me, but by a dysfunctional and divided board plagued by infighting and poor governance.' Zikalala explained that when he entered office, Malaka's appointment was already in progress, backed by the IDT board under then-chair Zimbini Hill and endorsed by his predecessor, Patricia de Lille. 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 Next Stay Close ✕ Ad loading 'I found the process already before the Cabinet.'' Central to the controversy is an office lease signed with Moepathutse Property Investments without board approval. Malaka allegedly signed the lease outside her authority; however, there is no evidence to prove that Malaka did anything else. In a reply that has now gone viral, Zikalala has slammed investigative body Amabhungane for what he termed "a calculated campaign against public interest governance" 'I will not allow the persistent onslaught masquerading as journalism to blackmail us into submission,' he said. He claimed the reports sought to destabilise the IDT, an entity responsible for delivering critical social infrastructure, so it could be 'captured by private business interests.' 'There's a long-standing battle for the soul of the IDT,' Zikalala said. 'While we will never shield the corrupt, we must guard against forces attempting to liquidate the institution for private gain.' In a move designed to affirm his commitment to transparency, Zikalala announced he had submitted all relevant records, including audit findings, legal opinions, correspondence, and ministerial memos to the Public Protector. 'This matter must be scrutinised by a credible, independent institution. I am confident it will reveal the truth and expose the narratives laced with distortion and innuendo,' he said. He concluded with a firm statement on his public service record: 'In all my public life, I have never and will never attempt to escape public scrutiny. I remain committed to ethical governance, no matter the cost.' The Public Protector's investigation is now expected to play a key role in determining whether Zikalala's actions were appropriate or part of a broader pattern of political shielding, while also shedding light on the governance challenges that continue to plague the IDT.
IOL News
24-04-2025
- Business
- IOL News
High Court to decide on controversial trustee appointments by Minister
The High Court in Pretoria is expected to hear the case against Public Works and Infrastructure Minister, Dean Macpherson, over the recent appointment of five trustees to fill vacancies on the Independent Development Trust (IDT) board on Friday. Image: Henk Kruger/Independent Newspapers The Gauteng High Court in Pretoria is expected to hear the case against Minister of Public Works and Infrastructure over the appointment of five trustees to fill vacancies on the board Independent Development Trust (IDT) tomorrow (Friday). This was after non-governmental organisations Black Forum South Africa (BFSA) and Izwi Labantu Forum (ILF) filed an urgent application for an interdict suspending the appointment of the five new trustees. The organisations also challenge the appointment process of the new trustees in Part B of the application, which is expected to be heard at a later date, where they are seeking to review and set aside the appointment. The organisations said the appointment of the members was unlawful, citing a lack of transparency, which was in contravention of the IDT Trust Deed and without a public participation process. The organisations argued that this violated their rights to nominate candidates for the appointment of IDT trustees. However, Minister Dean Macpherson argued the organisations did not complain that the five are not suitably qualified and any suggestion that they are not suitable and unlawfully appointed has no merit. The hearing was set for Tuesday (April 22) but it was postponed for Friday after two judges requested that the matter should be re-scheduled. The IDT has been in the spotlight since November 2024, after Macpherson instructed ITC chair Advocate Kwazi Mshengu to suspend the award of an alleged irregular and corrupt R880 million hospital oxygen plant tender managed by the IDT to three companies, with immediate effect. Audit firm PwC was subsequently appointed to conduct the investigation. In his affidavit, BFSA chief executive officer, Advocate Kgakgudi Morota, acknowledged that IDT experienced serious governance and performance difficulties which threatened its existence. He said as a result, a new board of trustees had to be appointed as part of solution but the manner in which they were appointed was not transparent, adding that no information was provided to the public about the appointment. Morota said Macpherson acted in a manner which does not promote accountability in the public administration. He said the minister's decision is irrational because it is not connected to the purpose of appointing people based on their ability, in a fair manner which remedies the imbalances of the past to achieve broad representation. 'Minister could have not rationally concluded that the new trustees were the most qualified candidates without giving the general public, including the applicants' (BLSA and ILF) members to make nominations,' said Morota. He said the decision is also not procedurally rational because Macpherson did not follow the prescribed procedure. The organisations also want the court to suspend letters of authority issued by the Master of the High Court in favour of the five trustees. They also want the court to interdict and restrain the five from performing the functions and exercising any of the powers of the board of trustees of the IDT. Morota said that insofar as Macpherson's decision is unlawful, it follows that of the Master's decision to issue letters to the new trustees to start acting as members of the board of trustees of the IDT, adding that it was also unlawful. 'This is because the Master cannot lawfully empowered to issue letters of authority to trustees who were not lawfully appointed in the first place,' said Morota. Morota added that the BLSA raised its concerns with Macpherson and requested him not to proceed with the appointment but he refused. In his answering affidavit, Macpherson said there was no merit in the application. He said the five trustees were chose from a list of names provided to him by the board. Macpherson invited the organisations to withdraw their application, saying they must appreciate that he appointed the five trustees because vacancies existed. However, in his reply, Morota denied that the contents of Macpherson's answering affidavit are true and correct, insisting that the appointment of the five trustees is unlawful.
Daily Maverick
23-04-2025
- Business
- Daily Maverick
Cash properties and new SUVs – inside Independent Development Trust CEO's R22m assets splurge
The Independent Development Trust's newly constituted board has passed a resolution calling for lifestyle audits into the entity's executive management. Daily Maverick unpacks several property transactions and vehicle purchases that might pique the investigators' interest. Trusts controlled by the Independent Development Trust's (IDT's) CEO, Tebogo Malaka, in 2023 forked out R6-million in cash for the purchase of three properties in Gauteng. This includes a plot in Gauteng's upmarket Waterfall Country Estate, where the priciest properties currently on offer sell for upwards of R20-million. Daily Maverick has established that one of Malaka's trusts is in the process of building a house on the Waterfall plot — again without a bond — and that the total cost is set to be around R12-million. This will bring to R18-million the grand total for the assets splurge that Malaka embarked on in 2023 – all paid for, or due to be paid for, in cash. Later in 2023, Malaka also forked out more than R4-million for two luxury vehicles. The IDT CEO purchased a brand-new Porsche Cayenne SUV and a Range Rover Sport, each with a price tag of at least R2-million. Unlike the properties, Malaka seemingly bought the vehicles through financing arrangements. However, the new wheels may still raise questions over Malaka's ability to service the instalments, especially when these purchases are viewed alongside the cash transactions for the properties. Malaka has strongly denied any wrongdoing. Last week, the queries Daily Maverick sent out for this piece seemingly triggered a hefty social media campaign aimed at discrediting our work. On the same day that we sent our questions to Malaka, an account on X (formerly Twitter) claimed that Daily Maverick and this journalist were part of a 'coordinated information ecosystem' that seeks to unfairly target the likes of Malaka. On Good Friday, another X account posted fake screengrabs purporting to show Whatsapp messages between this reporter and Public Works Minister Dean Macpherson's chief of staff. The falsified messages again sought to show that this reporter was acting in cahoots with dubious forces that were out to tarnish Malaka's reputation. The fake messages also made specific reference to the assets Malaka had acquired through her trusts. Speaking through a law firm that Malaka had appointed after we sent her our queries, the IDT CEO denied that she had played any role in disseminating fake news. 'Any suggestion that our client is involved in any form of wrongdoing, or in the manufacturing or distribution of the purported false information, is categorically denied. Our client asserts that she had no role in, nor responsibility for, the alleged activities referenced in your correspondence. Any such allegation is without merit and is firmly rejected,' reads a letter from her attorneys. 'Not public information' As the IDT's political custodian, Macpherson recently called for lifestyle audits into the IDT's top management. The IDT's board of trustees, now chaired by businesswoman Zimbini Hill, subsequently passed a resolution that approved broad-ranging lifestyle audits into Malaka and other senior IDT executives. The resolution comes on the back of several media exposés involving IDT contracts worth hundreds of millions of rands. In October last year, Daily Maverick revealed that the IDT had awarded the lion's share of a R836-million oxygen plants project to Bulkeng, an apparent 'ghost company' that did not possess the necessary accreditation to deal in medical equipment. The National Department of Health, on whose behalf the IDT managed the project, has since pulled out of the contracts. In light of the upcoming lifestyle audits, Daily Maverick's latest offering delves into the properties and vehicles that Malaka and her trusts bought in the space of just one year. Our report comes with an important caveat: We neither possess any evidence that the assets were purchased with funds linked to IDT contracts, nor are we suggesting that this was the case. However, the transactions detailed in this piece will almost certainly feature in the upcoming lifestyle audits. The investigators are sure to take a keen look at especially the cash purchases, seeing as the movement of large sums of money is a key consideration in any instance where there are concerns over alleged corruption, fraud and money laundering. What's more, the timing of the assets splurge may also raise further red flags. The properties and cars were all purchased in 2023. During that year, the IDT oversaw tender processes for some of its most contentious contracts, including those that were awarded for the oxygen plants initiative. We specifically asked Malaka how she and her trusts had managed to acquire the assets in such a short space of time, especially those properties that had been bought without bank loans. We also wanted to know how she would finance the multimillion-rand building project on the Waterfall plot. 'The source of income of the trust used for the acquisition of the properties in question is not public information. Our client elects not to disclose any further details in this regard,' stated Malaka's attorneys. 'It is denied that our client has, or had, any influence over the appointment of any service providers to the IDT. All appointments were made through a public tender process, in which representatives from the relevant government departments formed part of the evaluation panel,' said the attorneys. The two apartments In early 2023, Malaka set out to purchase two apartments, both of which were paid for by means of cash transfers. The properties were acquired through the Mmutla Wa Noko Family Trust. According to two sources familiar with Malaka's affairs, the IDT CEO had set up the trust to manage some of her family's assets. The Mmutla trust first forked out R1.1-million for a unit in a residential development in Fourways, Johannesburg. Deeds records show that the trust bought the property in February 2023, and that the transfer was concluded in June that year. In March 2023, the Mmutla trust bought a second apartment, this time paying R1.25-million. The unit is located in Centurion. Like the first apartment, there is no bond registered to this property, which means the trust had concluded the purchase through a cash transfer. Waterfall Country Estate Malaka is also a trustee of the Magogodi Family Trust, which was registered at the Master of the High Court in Pretoria in June 2023. In July 2023, one month after the trust was founded, it paid R3.6-million for an empty stand in the upmarket Waterfall Country Estate, located to the north of Johannesburg. The Deeds Office records don't reflect any bond registered for the purchase, so Malaka's trust would have had to come up with this substantial figure in cash. In other words, in the space of just six months, Malaka's two trusts had somehow accessed R6-million to pay for the two apartments and the Waterfall erf. Daily Maverick has established that construction on the Waterfall plot started some time in late 2024. The construction project serves as confirmation that Malaka is the controlling hand behind the Magogodi trust. We were able to establish that Malaka had briefed key roleplayers involved in the Waterfall development, and that she had personally appointed some of the key contractors. According to sources familiar with the project, Malaka's trust is set to spend at least R12-million on the construction costs, finishes and related expenses. Given the absence of a bond from a financial institution, the trust would somehow have to cover these costs in cash. Shiny rides In July 2023, Malaka bought a grey Porsche Cayenne GTS Coupé. In December of that year, she also purchased a new Range Rover Sport. The records available to Scorpio don't reflect the costs for each purchase, but the average price tag for these models is well north of R2-million. Board resolution The IDT's board of trustees was only recently restored to a full quorum after months of inactivity. One of its first decisions was to give the go-ahead for lifestyle audits on key IDT personnel. 'The reconstituted Board has made it a priority to strengthen governance and rebuild public trust in the IDT, an entity critical to the delivery of social infrastructure in South Africa. To this end, the Board has resolved to introduce a policy on lifestyle audits, aligning with the Public Sector Integrity Management Framework, which encourages the use of lifestyle audits to detect and prevent unethical conduct,' the board said in a written response to Daily Maverick. 'This policy forms part of a broader strategy to promote ethical leadership, transparency and accountability within the organisation. The lifestyle audits will not be conducted on an ad hoc basis but will form part of a structured governance approach. They will initially focus on senior management and individuals occupying high-risk roles, particularly in areas such as supply chain management,' explained the board. The board of trustees wants to use lifestyle audits as a means to mend the public's trust in the entity. 'The Board believes this step is necessary to ensure that those entrusted with the management of public resources conduct themselves with integrity and accountability. While the IDT continues to play a significant role in delivering public infrastructure, restoring public trust remains a priority. The Board is committed to ensuring that the institution operates with high standards of governance, ethical conduct and public confidence.' DM
