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Daily Maverick
an hour ago
- Climate
- Daily Maverick
KZN's South Coast residents plagued by municipal crises lose hope after monthlong water cut-offs
The Ugu District Municipality on Monday said the restoration of the water supply to the Lower South Coast was imminent — but residents weren't holding their breath. 41 – that's the number of days that residents of the KwaZulu-Natal Lower South Coast have had some semblance of running water from their taps this year. This is according to Banners Rest resident and former municipal councillor Dave Watson, who has been keeping a spreadsheet calendar on water cut-offs and interruptions since 2022. Watson said the last time his area had an uninterrupted water supply for longer than 24 hours was last year. During the current outage Watson has been without water for 32 days. 'This is a new record for us in Banners Rest, after more than three years of no water supply or inadequate water supplies,' Watson said. In response to queries from the Daily Maverick on Monday, 18 August, the Ugu District Municipality said: 'It is anticipated that water supply will be restored to Leisure Bay, Glenmore, Port Edward and Banners Rest by this evening or early tomorrow.' But residents were not holding their breath. A 12-hour electricity shutdown at the Umtamvuna Water Treatment Works led to water cut-offs that have dragged on for weeks, to the frustration of nearly 190,000 residents stretched between Port Edward in the south, Southbroom in the north and inland areas that include Izingolweni, KwaXolo and KwaNzimakwe. 'Tomorrow never seems to come. We were told yesterday that water was coming back 'tomorrow', and the same story the day before … yet, here we are with no water after nearly 30 days — so let's wait and see tomorrow,' commented Democratic Alliance ward councillor Stephanie Breedt. Breedt noted that Eskom had been scheduled to shut down the power supply at the Umtamvuna purification plant for half a day earlier this month to enable the installation of a temporary power supply that would have allowed an extra water extraction pump to be installed. She noted that the Ugu District Municipality had been plagued by water shortages for several years, partly because there was insufficient electricity to power additional water abstraction pumps on the Umtamvuna River. In 2019, the council paid Eskom R14-million to install additional power that would allow four pumps to suck water from the river for purification. Breedt said a further R2.5-million was paid to Eskom this year to provide a temporary supply to a third pump. Eskom did conduct emergency work at the Umtamvuna treatment works this month, yet for reasons not fully explained, 36 local water reservoirs dried up soon afterwards and Ugu was forced to revert to using its existing two pumps rather than the hoped-for three pumps. Veteran journalist Fred Kockott, a resident of Port Edward and founding director of Roving Reporters, was heading off to the local Methodist church on his motorbike to replenish his water supplies when contacted for comment on 18 August. For the last 30 days, Kockott has been travelling to the church regularly to ferry water home in a backpack and a wooden crate strapped to his motorbike. Permanent solution While the current crisis might be resolved by 'Band-Aid' measures, he said a permanent solution was needed. 'Granted, there are serious challenges faced in extending basic water supply to previously unserviced outlying areas, but to allow existing infrastructure to collapse to this extent is clearly a human rights offence, deserving intervention and prosecution.' Two separate sources have suggested that the underlying cause of the latest problems is opposition from a community group in the neighbouring Eastern Cape province that blocked plans to run a new Eskom power supply line from that province into KwaZulu-Natal to relieve the power shortages at the Umtamvuna purification works. They suggested that certain community members had insisted that they were facing water and electricity supply shortages that should be resolved before any additional power was supplied to KZN. The Ugu District Municipality said that Eskom had conducted a scheduled shutdown at Umtamvuna this month to connect additional power supplies, but 'unforeseen technical complications arose during the process, and work is currently ongoing to resolve these issues'. The municipality acknowledged that this led to 'significant inconvenience for both the coastal and inland communities' and that municipal staff were collaborating with Eskom's Eastern Cape technical division to provide further power to the Umtamvuna water works. On Monday, an Eskom spokesperson said the utility required more time to respond to Daily Maverick's queries. We also asked Ugu officials to explain the full nature of the 'unforeseen technical complications'. A municipal spokesperson responded: 'Following the restoration of power, it was subsequently identified that a voltage imbalance had occurred, thereby compromising the safety and stability of the electricity supply. 'This unforeseen technical issue necessitated an extension of the outage period. We regret that this extension resulted in the depletion of the Umtamvuna water system. 'Eskom has scheduled a planned outage for 29 August in order to rectify the situation and install the meter required for the Eastern Cape supply. In the interim, Ugu has reverted to the original KwaZulu-Natal grid to ensure continuity of water supply.' What this seems to mean is that even if the water supply is restored this week, Lower South Coast residents can anticipate another major water shutdown at the end of the month before the situation improves. DM
Daily Maverick
01-07-2025
- Health
- Daily Maverick
Questions over tripling of Gauteng Health's security budget
In just two years, the Gauteng health department's spending on security has more than tripled. Spotlight tries to get to the bottom of the ballooning bills and what it means for governance in the department. The Gauteng Department of Health's projected R2.54-billion spend on security contracts for 2025/2026 has received the thumbs up, fuelling suspicion in various quarters. It comes as the department claims to lack the funds to fill vacancies, pay all suppliers on time or continue fulfilling doctors' overtime contracts. The R2.54-billion is more than three times the R838-million the department spent two years earlier in 2023/2024. This was revealed at the end of May in response to questions raised in the Gauteng Legislature by the Democratic Alliance (DA), the official opposition in the province. In 2024/2025, the department's security spending was just above R1.76-billion. Jack Bloom, DA shadow MEC for health in Gauteng, calls the proposed expenditure 'unjustified', given that the department is failing to meet its health service delivery targets. According to him, security companies charge R77-million per year for guarding services at Chris Hani Baragwanath Hospital, and more than R72-million annually at Charlotte Maxeke Hospital. At Tara Hospital, the new security contract costs R14-million a year – a sharp increase from the previous year's R4.2-million contract, which had provided 21 guards for the facility. Bloom says that, according to the department's own assessment, only five additional guards were needed at Tara Hospital, increasing the total to 26. However, the current contract pays for 46 guards. 'This means they are paying about R5-million a year for 20 guards they do not need,' Bloom says. 'They could better use this money to fill the vacancies for 13 professional nurses, as Tara Hospital cannot use 50 of its 137 beds because of staff shortages. It is a clear example of excessive security costs squeezing out service delivery,' he says. 'The numbers simply don't add up,' Bloom says. He points out that the written responses provided in the Gauteng Legislature – signed off by MEC for Health and Wellness, Nomantu Nkomo-Ralehoko – cite an internal security assessment and compliance with Private Security Industry Regulatory Authority (PSIRA) salary increases for guards as reasons for the higher costs. However, the internal assessment has not been shared with either Bloom or Spotlight, despite requests from both. The PSIRA-approved annual increase is 7.38%. In contrast, the department's security spending rose by more than 100% from 2023/2024 to 2024/2025, and is projected to increase by another 40% from 2024/2025 to 2025/2026. According to a statement released by the Gauteng health department in April 2024, it had 113 security companies under contract at the time, providing a total of 6,000 guards across 37 hospitals and 370 clinics and institutions in the province. 'Very fishy' Bloom says security guarding contracts have been 'very fishy for at least the past 10 years'. He claims: 'There are certain security companies that keep popping up. These companies will get two-year contracts, then have their contracts extended for something like 10 years. Then we have these new contracts, which have soared in costs. The auditor general has said that there is irregular expenditure. Security contracts have always been suspect and have always been corruption territory.' In March this year, the DA lodged a complaint with the Public Protector over a R49-million guarding contract for five clinics in Tshwane and the MEC's offices. The contract was awarded to a company called Triotic Protection Services. The DA alleges that the company was founded by City of Tshwane's deputy executive mayor, Eugene Modise, who also previously served as its director. When the company was awarded the contract, it was allegedly in the crosshairs of the South African Revenue Service because it owed R59-million in tax over five years. This has raised concerns about the company's tax compliance status and its eligibility to tender for the contract. Spotlight approached Modise for comment through Samkelo Mgobozi, spokesperson for the office of the executive mayor, but had not received a response by the time of publication. Other security companies that have contracts with the department have also made headlines for allegedly flouting labour laws. These include not paying guards for months and withholding employees' pension and provident fund contributions. It leaves questions about due diligence and the proper vetting of companies. A review under way? In the weeks since Bloom's questions were answered in the legislature, he says Nkomo-Ralehoko conceded to a review of the security spend at the province's hospitals. However, the Gauteng health department has not announced anything formally and no further details have been provided. The department has also neither responded to Spotlight's questions nor provided supporting documentation of its assessment criteria for the security contracts, the tender requirements, tender processes and how it measures value for money and the impact of increased guarding in improving safety and security for patients, staff and visitors to its hospitals. It has also not made available a list of the companies with successful contracts and what their services entail. As Spotlight previously reported in some depth (see here and here), there are serious security problems at many health facilities in Gauteng. It ranges from cable theft disrupting hospital operations to assaults on healthcare workers. The department has also been criticised from some quarters for its plans to train healthcare workers to better handle violent situations. That steps need to be taken to better secure the province's health facilities is not controversial. But previous reporting has also shown a pattern of questionable contract management, with, for example, contracts being extended on a month-to-month basis for years after the original tenders had technically expired. It appears that the widespread use of these month-to-month security contracts came to an end when the department finally awarded a series of new security tenders in 2024, but it also seems likely that these new contracts are driving the department's ballooning security spending. 'Has to be justified' The department's massively increased security spend must be fully explained and is essential for transparency, several experts told Spotlight. 'This kind of escalation in cost has to be justified, especially when the department has no money,' says Professor Alex van den Heever, chair of social security systems administration and management studies at the University of Witwatersrand. He says the specifics of the tender process and the contracts awarded need to be publicly available to be openly scrutinised. The processes must meet Treasury's procurement guidelines and must follow the Public Finance Management Act, which regulates financial management within the national and provincial governments. Where there is wilful non-compliance, Van den Heever says criminal charges should be laid. 'This is a department that has routinely had around R3-billion a year in irregular expenditure. It means procurement procedures have been bypassed. This is not an isolated incident; it's systematic,' he adds. The latest Auditor-General report into the Gauteng health department was released in September last year for the 2023/24 financial year. It showed that of its R60-billion budget, the department underspent by R1.1-billion, including R590-million on the National Tertiary Service Grant that was meant to help fund specialist services. The report highlighted R2.7-billion in irregular expenditure, which is R400-million more than the previous year, and R17-million in fruitless and wasteful spending – an increase of R2-million from the year before. Equally damning, the report highlighted the lack of credible information provided. 'This is likely to result in substantial harm to the operations of the department as incorrect data is used for planning and budgeting and the effectiveness of oversight and monitoring are reduced as a result of unreliable reported performance information on the provision of primary healthcare services,' wrote the Auditor-General. Van den Heever says leadership and management within the health department need to be seriously questioned. Questions should be asked of why 'bad apples' are not being removed, why there are no consequences for conflicts of interests and collusions, and why webs of enablers within the department are not exposed for insulating wrongdoers, he says. Van den Heever says that over nine years of monitoring, the Gauteng Health Department's irregular and wasteful spending ranged between 3.6% and 6.6% of its total budget. In contrast, during the same period, the Western Cape's irregular spending ranged from 0% to just 0.1%. Lack of transparency The Gauteng health department's spike in security spending demands deeper investigation, says advocate Stephanie Fick. She is executive director for accountability and public governance at the Organisation Undoing Tax Abuse and serves on the Health Sector Anti-Corruption Forum. This forum was launched in 2019 as an initiative to combat corruption within the healthcare system. It falls under the Special Investigating Unit and brings together a range of stakeholders, including law enforcement agencies, government departments, regulators and the private sector. Fick says the health department's failure to provide easy access to information on tenders, contracts and contracted companies undermines transparency and accountability. She encourages more people to come forward with insider information. 'We want to see the details right down to line items and who signed off on things. We encourage people to use our protected whistle-blower platforms to share information,' Fick says. 'For civil society, there is a growing role to mount strategic challenges to things like this kind of excessive and irregular expenditure; to demand transparency and to expose people who are responsible. 'This must be done so ordinary people can better understand what's been happening with their tax money and so they choose more carefully when they go to the ballot box, starting with next year's municipal elections,' she says.
Daily Maverick
31-05-2025
- Politics
- Daily Maverick
IDT mistrust (Part Two) — Minister Zikalala's ‘whitewash' that secured IDT CEO Malaka her job
Former public works minister Sihle Zikalala lowballed the findings of an investigation he had commissioned, paving the way for Tebogo Malaka's appointment as chief executive of the Independent Development Trust (IDT) despite her involvement in a R45-million lease scandal. Evidence suggests that interventions by former public works minister Sihle Zikalala and his close comrade, then-IDT chair Kwazi Mshengu, stifled National Treasury investigations into allegations against then acting-CEO Tebogo Malaka and substituted a superficial probe by Zikalala's department. Nine days before the 2024 national elections, Zikalala endorsed Malaka's elevation from acting to permanent CEO on the basis that his probe 'found no wrongdoing' against her, but the probe had not been mandated to investigate Malaka. Last month the IDT was slapped down in its attempt to review the contract that Malaka was accused of mishandling after Malaka herself had deposed the founding affidavit. Part One of this series showed how Kwazi Mshengu, Zikalala's confidant and then-IDT chair, led the board in abandoning a National Treasury investigation into the parastatal's procurement of a new head office lease — even refusing to be briefed on its provisional findings. Mshengu and the board asked Zikalala to have his Department of Public Works and Infrastructure, of which the IDT is an implementing agency, investigate instead. The current story shows that while departmental auditors went on to produce a damning report on procedural irregularities, they had also warned Zikalala they were unequipped to probe — and could not investigate — substantive allegations against Malaka and others — a limitation he readily accepted. Despite the auditors recommending a further probe by the department's anti-corruption unit, Zikalala instantly wrote to Mshengu endorsing Malaka's appointment, claiming the auditors had 'found no wrongdoing' on her part. This was on 20 May 2024, just nine days before the national elections that ushered in the Government of National Unity. Mshengu signed off on Malaka's appointment six weeks later, as new ministers — including the DA's Dean Macpherson, Zikalala's successor — were being sworn in. Zikalala's exoneration proved decisive for Malaka, whose elevation from acting to permanent chief executive was blocked after she had entered a five-year, R45-million lease with politically connected Moepathutse Property Investments behind the board's back. This followed a procurement process marred by allegations of favouritism. Moepathutse, which has denied wrongdoing or any relationship with Malaka and sued the IDT for damages and costs, which the IDT itself estimates amount to almost R14-million, after it failed to occupy the building. The IDT responded by washing its dirty linen in court. It argued that the lease was invalid because tender specifications had been 'tailor-made' for Moepathutse's Irene property and because Malaka had signed without the requisite board authority. The IDT's defence took a potentially fatal hit two weeks ago when the Gauteng Division of the High Court in Pretoria dismissed a review application it had brought to set the lease aside. The judge found that the IDT had failed to prove the lease was 'tainted by any illegality' in any way. Malaka — despite being heavily conflicted — had deposed the IDT's founding affidavit. Under pressure In response to amaBhungane's questions, Zikalala, now Macpherson's deputy, did not address why his endorsement of Malaka had claimed 'no wrongdoing' despite the probe's limited remit. He said, however, that he had held back Malaka's appointment for more than a year pending the investigations, and that she had 'engaged in legal challenges through her lawyers relating to [her] appointment'. Zikalala said that when he became minister in March 2023, his predecessor, Patricia de Lille, had already recommended Malaka to the Cabinet. 'I am the minister who withdrew the [recommendation] for investigations to be conducted.' As detailed in part one, the board then considered procuring a forensic firm to conduct a probe, but hesitated to entrust the process to IDT management, then led by Malaka in acting capacity. One thing led to another and the National Treasury, assisted by law firm ENS, commenced a forensic investigation on the board's behalf. Towards the end of the year, a reconstituted board, now chaired by Mshengu, canned the Treasury investigation and asked Zikala to have his department investigate internally instead. The board's resolution still targeted Malaka though, calling for Moepathutse's selection to be probed 'specifically relating to the relationship between the lessor and the acting CEO'. But the new probe was neither forensic nor focused on Malaka. Zikalala — who said he was committed 'to serve with integrity, transparency and accountability' — shared the final report with amaBhungane. This report shows that the request to investigate had been routed through the department's inter-governmental relations unit to the internal audit unit, not its governance, risk and compliance branch, whose remit includes fraud and corruption investigations. The audit unit agreed to help, but only with an 'assurance audit' to check compliance with control prescripts. 'Internal audit performs assurance audits and not investigations/forensic audits which reside within governance, risk and compliance.' So concerned were the auditors that the limitations of their approach be understood that they insisted on Zikalala's approval and board concurrence before they started. 'The minister approved the proposed assurance audit approach on 15 March 2024.' The internal audit chief signed off on her team's report two months later. Within its narrow lane, the report was damning. It was 'unable to provide reasonable assurance that the procurement process was fair, transparent and regular'. It identified multiple gaps in the procurement file and 'material non-compliance to procurement policies, laws and regulations'. However, the report also reiterated that 'our audit did not cover the review of conflict of interest of executive management, the board members, [and supply chain management] officials to any bidder, especially to the recommended bidder'. This, it said, 'requires special tools that we do not have'. The auditors went on to recommend that the board, in consultation with the minister, ask the governance, risk and compliance anti-corruption unit after all 'to investigate further the areas' they could not cover or where information had been unavailable to them. No wrongdoing On 20 May 2024 — the same day the audit report was signed — Zikalala addressed a letter to Mshengu in his capacity as board chairperson. 'You will recall the proposal,' he wrote, 'to hold in abeyance the matter of the confirmation of Ms Tebogo Malaka… pending the conclusion of the investigation… The investigation by the department has been completed and no wrongdoing was found on the part of Ms Malaka. 'As such, I want to confirm my concurrence to the board's decision to appoint Ms Malaka as the IDT chief executive officer.' Zikalala did this knowing his audit team had not probed allegations against Malaka — and despite briefings from the previous board that the Treasury had been tasked to do just that. Zikalala sent the letter nine days before the elections saw the ANC lose its majority and he lost his post. Mshengu signed off on Malaka's appointment on 3 July 2024, the day new ministers, including Macpherson, were sworn in. Both Mshengu and Zikalala denied there was any connection between their respective actions of canning the Treasury probe, declaring Malaka cleared by the department, and getting her appointed before Macpherson took charge. Mshengu, whom Macpherson removed from the board, said: 'You would also know that IDT is a state entity and its operations are not subject to changes in government. Therefore, the appointment of Ms Malaka as CEO had nothing to do with changes in government. In any event, no one knew what would be the outcomes of the national general elections.' Zikalala said the board had terminated the Treasury investigation of its own accord and that there was 'no so-called 'haste' on my part' to appoint Malaka. He reiterated that he had ordered investigations after becoming minister and had paused the appointment 'for a period of more than a year until there were legal procedures initiated against me as minister'. Another investigation Zikalala also stressed that Malaka's appointment was not the end of the road and that the governance, risk and compliance anti-corruption unit had in fact 'commenced its deeper investigation' as recommended by the internal auditors. That probe only started last November, months after Zikalala was replaced as minister. The department confirmed that the investigation was concluded in mid-February, but was awaiting the director-general's sign-off. Its terms of reference included 'determining whether there was irregular, improper and/or criminal conduct by IDT official(s) and/or third parties'. AmaBhungane has submitted a request under the Promotion of Access to Information Act for the canned Treasury investigation reports, and will do the same for the anti-corruption unit report. Who will pay? Meanwhile, the costs of this debacle continue to mount. When Moepathutse filed its damages claim, the IDT responded with a special plea, claiming that the bid had been tailored to suit Moepathutse's building and that Malaka had concluded the lease without board approval, which was required due to its value. The IDT asked the court to pause the damages suit it applied in order to review its own decision and void the lease. When the IDT finally filed the review in March 2024, the deponent to its founding affidavit was none other than Malaka — hopelessly conflicted. She put hardly any admissible evidence on the table and the outcome was predictably dire. In a judgment delivered on 16 May, acting judge S J Myburgh complained repeatedly that the IDT had provided no evidence that its decisions were improper. 'The IDT has failed to show that the agreement concluded between itself and the respondent was tainted by any illegality. I thus find myself in agreement with the argument made by the respondent that this application is simply an attempt by the IDT to avoid liability in terms of the now cancelled agreement.' The court dismissed the IDT's application with costs, and Moepathutse's damages claim, which the IDT's latest annual report says now stands at almost R14-million, is effectively irresistible, unless, perhaps, the IDT throws Malaka under the bus.
Daily Maverick
30-05-2025
- Politics
- Daily Maverick
IDT mistrust (Part One) — How Minister Zikalala and his ‘comrade chair' nixed probes into CEO Malaka
In 2023 and 2024, allegations of procurement irregularities against beleaguered IDT chief executive Tebogo Malaka were swept under the carpet by the then IDT chair Kwazi Mshengu and the then minister Sihle Zikalala. These interventions included quashing a forensic probe facilitated by the National Treasury and whitewashing an audit by Zikalala's department. The evidence suggests a parallel effort to stymie investigations into Malaka, clearing the way for her to be elevated from acting to permanent chief executive. Both men deny the accusation. Documents obtained by amaBhungane suggest that former public works and infrastructure minister Sihle Zikalala and his close comrade, the then Independent Development Trust (IDT) chair, advocate Kwazi Mshengu, mounted parallel efforts to shield the parastatal's chief executive from investigations into a R45-million lease scandal. Internal communications, board minutes and draft reports show Zikalala and Mshengu clearing the way for Tebogo Malaka's elevation from acting to permanent chief executive last year despite mounting evidence of impropriety on her part. Allegations include that Malaka concluded a lease agreement with politically exposed Moepathutse Property Investments behind the IDT board of trustees' backs and beyond her delegation of authority. The lease, for a building adjacent to a nature reserve in Irene, Centurion, was intended to provide the IDT with new headquarters, but the IDT never took occupation, leading Moepathutse to sue for R14-million in damages. Moepathutse is directed by former politician Thaba Mufamadi and his relative Vhonani Mufamadi — the brothers of President Cyril Ramaphosa's national security adviser, Sydney Mufamadi. Moepathutse has denied wrongdoing or that it had a relationship with Malaka. Part One of this series shows how, soon after taking over as IDT chair, Mshengu led his board in quashing a forensic investigation facilitated by the National Treasury, asking Zikalala to have his Department of Public Works and Infrastructure conduct a probe instead. Part Two will examine how Zikalala tasked the department's internal auditors — but not to probe allegations against Malaka. The Treasury confirmed to amaBhungane that its investigations were 'already at an advanced stage' when Mshengu pulled the plug, but that Mshengu declined to be apprised of findings so far. Zikalala was minister at the time but has been deputy to the DA's Dean Macpherson since the formation of the Government of National Unity last July. Macpherson removed Mshengu from the board this year. The IDT is a multibillion-rand implementing agency of the department, responsible for social infrastructure like schools and clinics. Mshengu and Zikalala have denied any correlation between their actions, which they maintain were justified. Malaka, who is fighting to retain her position in the face of amaBhungane and Daily Maverick exposés, did not respond to detailed questions regarding the allegations against her. Stop-start tender To casual observers, it may appear as though Malaka's troubles began when Macpherson took over as minister, when in fact they started two years ago under a previous IDT board. The controversy is rooted in an early 2022 board resolution to sell the IDT's existing headquarters at an unassuming office park in Pretoria East and procure leased premises instead. Malaka was already acting chief executive at this point. The tender process was seemingly derailed in May that year when Malaka received a protected disclosure from the head of security, Wilhelm Meyer. An IDT affidavit filed as part of subsequent litigation with Moepathutse alleges that during an impromptu visit to Moepathutse's property, Meyer witnessed the chair of the bid specification committee arriving in the same car as someone connected to Moepathutse. This raised concerns about an inappropriate relationship. At a subsequent meeting of the bid specification committee, the chair allegedly specified criteria — a canteen, a bicycle shed, showers — that 'surprisingly fit' Moepathutse's property. Meyer's disclosure set off a chain of events still rippling out now. A May 2023 draft report from the board to Zikalala states that Malaka did not voluntarily bring Meyer's disclosure to the board's attention until it demanded answers from her. It also alleges that 'an extensive investigation' Malaka promised Meyer was superficial at best. Nonetheless, the tender was cancelled and a second advert placed in August 2022. Despite the protected disclosure, Moepathutse was recommended as the winning bidder and an unsigned lease agreement provided to the board for approval in January 2023. Board in the dark The board was, however, unaware that Malaka had already signed a letter of award to Moepathutse in November 2022. Moepathutse signed its acceptance on the same day. The rental amounted to R45-million over five years. The board was also unaware that in December 2022, Malaka had signed a lease agreement despite her finance chief warning it was above their delegation of authority and needed board approval. The board knew nothing of this when it was time to give its approval. 'An unsigned lease was provided in the board meeting pack, and no reference at all was made by [Malaka] on the fact that a signed lease existed,' the draft report to Zikalala read. It also recorded Malaka's excuse that she was 'not responsible for compiling the board pack'. The board approved the lease agreement in February 2023, in the absence of the then chair, Zimbini Hill, and despite outstanding concerns. The following month, however, after receiving a whistle-blower report deemed 'highly relevant' to the lease procurement, it rescinded its approval. It also resolved to initiate a two-part forensic investigation: into the lease procurement itself and into HR-related allegations against Malaka and other managers. It was only after this that the board was furnished with the lease Malaka had signed months earlier without authority. It is this signed lease that Moepathutse is using to back its R14-million damages claim against the IDT. Draft board minutes display trustees' dissatisfaction with Malaka: 'The board is concerned at the level of dishonesty as management never disclosed the signed lease of 2 December 2022. The CFO informed the acting CEO in an email on 2 December 2022 that the signed lease was beyond the delegation of the acting CEO and the CFO… The board cannot ignore the actions of management in how the lease matter was handled.' The draft minutes and report cite evidence that Moepathutse marketed the same building at significantly lower rates than the IDT lease. Michael Sutcliffe, an ANC-aligned veteran bureaucrat then on the board, submitted documentation allegedly showing that Moepathutse had advertised an annual rental of R4,459,932 — 43% less than the IDT's first-year commitment of R7,851,178. Moepathutse said in response to amaBhungane's questions that its price was 'the lowest of the six bids received by the IDT in response to the public tender'. The draft report to Zikalala, which was circulated to all board members and sent to Zikalala after minor edits from the trustees, states that the board had agreed on the terms of reference for the proposed forensic investigation and that the minister was briefed in detail. It is understood that the document submitted to Zikalala did not differ materially from the draft seen by amaBhungane. Board 'dysfunctional' The board now faced a dilemma. It wanted to procure a forensic firm to conduct its probe, but felt it could not trust IDT management with the process. Initially, the board considered calling for bids from the department's approved panel of firms, but that panel had expired. Questions also emerged about the board's legal authority to initiate procurement. The board then mandated the company secretary to approach the National Treasury about undertaking the investigation as a neutral third party. The Treasury confirmed it could do so, and the company secretary kick-started the process. The Treasury appointed the law firm ENS to assist. A dispute later arose over whether the board had actually mandated the company secretary to launch the investigation or merely to explore its feasibility. This would form the basis for a reconstituted board to halt the Treasury's investigation, despite records showing that both the board and the minister were briefed on the investigation's timeline and costs in September 2023. Moepathutse lodged its high court claim based on the disputed lease contract that same month. Zikalala subsequently intervened with a 'fact-finding mission', citing governance concerns 'arising out of the complaints raised with my office'. Two sources with knowledge of events say that shortly after the Treasury's investigation commenced in October, Malaka allegedly refused to cooperate. When investigators complained, board chair Hill wrote to Malaka urging her to cooperate. Malaka, in turn, lodged a grievance against Hill. Soon after, Zikalala wrote to board members asking them to justify why they should not be removed 'for failure to implement the mandate of the IDT'. Hill resigned on 8 October and was followed by two more trustees. Defending his intervention to amaBhungane, Zikalala said: 'The board members were not aligned and were clearly divided on many issues, rendering the board dysfunctional. After observing this state of paralysis and that this board was nowhere near fulfilling its fiduciary duties, I wrote to all board members, not just Ms Zimbini Hill… Three board members responded while others resigned.' Hill's resignation paved the way for Mshengu's entry. Zikalala appointed him as a trustee in November 2023, after which the board elected him as its chair. A former KwaZulu-Natal ANC Youth League chair, Mshengu enjoyed Zikalala's trust. When Zikalala became provincial premier in 2019, he appointed Mshengu as his education MEC. They served together until their defeat in the ANC's 2022 provincial elections, where Zikalala had stood for chair on the 'Ankole' slate with Mshengu as his deputy. Mshengu had also served as a board member on Zikalala's charitable trust. 'Protect the board' At his inaugural meeting chairing the IDT board towards the end of November 2023, Mshengu set the tone. According to minutes, he shared 'observations' on the Treasury's investigation, questioning its terms of reference and impartiality. The board then resolved 'to consider taking a decision that would protect the board'; 'that the current forensic investigation should be halted'; and that Zikalala should be asked to have his department investigate Moepathutse's appointment, 'specifically relating to the relationship between' Moepathutse and Malaka. A Treasury spokesperson said in response to amaBhungane's questions that it had received a letter from Mshengu that December, 'instructing the Treasury not to proceed further… 'However, by that point, the National Treasury's investigation was already at an advanced stage. Based on the information collected, evidence obtained from imaged computers, and consultations with relevant officials, the Treasury concluded its investigation.' By that time there were already draft reports and contact had been made with the Hawks. The Treasury appears not to have wanted its and ENS's work to go to waste. According to the Treasury, 'In February 2024, the National Treasury wrote to the board chairperson requesting a meeting to present the findings of the investigation as at the time of termination. The chairperson, however, declined, stating that the board would not accept any investigation reports from the National Treasury, referring to the December letter terminating the Treasury's mandate.' Mshengu defended his actions, telling amaBhungane that when Zikalala and the then deputy minister Bernice Swarts introduced him to the rest of the board, they 'indicated that they had received complaints from Ms Malaka on how the investigation was conducted by National Treasury — which she viewed as having predetermined outcomes. The ministry then requested the board to look into these allegations.' The matter was considered at the next board meeting. 'The trustees who had an advantage of being seized with the matter before my arrival unanimously disavowed that they had agreed to the appointment of National Treasury and the terms of reference. 'According to the trustees, the company secretary was mandated to check if either National Treasury or [the department] can do the investigation and advise the board. The company secretary, however, proceeded to appoint Treasury without reverting to the board and to have the board consider and approve the terms of reference.' Mshengu said the decision to terminate the Treasury's mandate was informed by a 'contamination of the process' and that the investigation 'was never squashed but was referred' to the department. He said his relationship with Zikalala was public knowledge and that he had declared it to the interview panel before his appointment. He had met Malaka for the first time when he became a trustee. Either way, the end of the Treasury investigation proved a lifeline for Malaka. As we explain in Part Two, Zikalala would go on to whitewash the investigation entirely, endorsing Malaka for permanent chief executive on the basis that his inquiry 'found no wrongdoing' against her. It never, in fact, investigated her. In July 2024, on the day Macpherson and other Government of National Unity ministers were taking the oath of office, Mshengu signed off on Malaka's permanent appointment. DM
The Citizen
12-05-2025
- General
- The Citizen
R14m Nkandla Disaster Management Centre construction set to commence
The site of the R14-million Nkandla Disaster Management Centre has been earmarked, with construction set to begin next month. Residents and businesses have for years suffered losses due to wildfires, with Nkandla and its surrounding areas highly prone to such disasters due to the bushy terrain and dense forests. ALSO READ: WATCH: Fires destroy homes in rural KZN This prompted Cogta MEC Reverend Thulasizwe Buthelezi to prioritise the centre, the site of which he visited with Nkandla Mayor Nonhlanhla Nzuza last Thursday. 'Our team will work closely with the municipality to ensure the land is suitable for the structure and that it can accommodate all the required resources for the Disaster Management Centre, such as fire engines,' said Buthelezi. 'The project will also create job opportunities and skills development, as local youth will receive firefighting training.' He said King Cetshwayo District Municipality has received a donation of fire engines from the Department of Forestry, Fisheries and the Environment. 'We will request that some of these fire engines be stationed here in Nkandla to assist local communities and businesses.' Expressing her appreciation, Nzuza, said, 'This is a major boost for our communities. For many years, wildfires have destroyed livestock, grazing fields and homes because we do not have fire engines in Nkandla. 'We hope this project will attract investment to our town and strengthen our disaster management capacity.' Buthelezi also announced the expansion of the electrification project in Maphumulo and Nkandla to connect some 60 households to the grid. He said the department aims to complete the electrification projects by December. Don't have the ZO app? Download it to your Android or Apple device here: HAVE YOUR SAY Like our Facebook page and follow us on Twitter. For news straight to your phone invite us: WhatsApp – 060 784 2695 Instagram – zululand_observer At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
