Latest news with #R45-million
Daily Maverick
31-07-2025
- Business
- Daily Maverick
After the Bell: How much is a business idea worth?
This may be an unpopular view, but I'm not convinced one person should get billions for one simple insight that would probably have been implemented anyway. Through all of the years I have been lucky enough to be a journalist, there is one fundamental dynamic that has become completely entrenched in our society, and most others. It is that the rich are getting richer while the poor are falling further and further behind. One of the big drivers of this seems to be the way in which salaries for CEOs have really increased in the past few years. Now, I fully expect and understand that someone who is able to create value for themselves and others should be paid well. And I do mean really well. It seems entirely moral to me that people should be paid for doing constructive things. I do wonder though about cases that really involve a rise in technology, or just one insight. So, Mark Zuckerberg has literally created an industry. But he did this as part of technological changes in society. He would not have been able to do it without being American, being at Harvard, and being there when he was. Something similar must have happened in 2022 when soaring platinum prices resulted in the CEO of Sibanye-Stillwater, Neal Froneman, getting paid about R300-million. Now, I could never do what Froneman does. He has a rare combination of skills and the ability to lead a group of people to enable others to make money. And, of course, much of his salary was in the form of shares, their value increased in line with platinum prices immediately after the Covid pandemic. This means that this money was not paid out directly by the company, but was the result of the increase in the value of shares he had been given before the rally. The case of The Foschini Group CEO Anthony Thunström is an interesting example. In 2024, he was paid 43% less than the year before because the group missed certain targets. This year, he was paid R45-million because he hit those targets. While he cannot control all of the variables around him, there is something about this that seems intrinsically fairer to me than Froneman's situation, where he benefited hugely from a historic dynamic that lifted platinum prices. That said, he could argue, perhaps, that only he could have ensured his company was able to take such full advantage of that increase. I was thinking about all of this watching the Constitutional Court's ruling in the Nkosana Makate case against Vodacom. He and Vodacom have been arguing for nearly 20 years over how much the network should be paying him for his insight that it should start a 'Please Call Me' service. I really thought today would be the day this case would finally end. I mean, really, how long can one case drag on? Instead, all of the judges found the Supreme Court of Appeal (SCA) had got the case hopelessly wrong. But, being on the Constitutional Court, they also felt they should not have to sift through the arguments and the maths. Now the SCA must do it again, with a new Bench of judges. For me, at the heart of it is: How much can one idea be worth? I can see that, for Zuckerberg, perhaps that idea could be worth a huge amount – he did create something that changed the world. For Elon Musk, perhaps his ideas – around electric cars, rockets and goodness knows what else – will literally save the planet. That must be worth quite a lot. But like Musk and Zuckerberg and Froneman, there are other forces at work in the Makate case. Obviously on the one side is Vodacom, one of our biggest companies with huge resources. It will fight for many years to prevent having to pay out any amounts that go into the billions. While it can appear as if Makate is on his own, in fact at least part of his campaign has been financed through contingency fees with law firms and, during at least one stage, other groups. This means that both sides will fight forever. The stakes are that high. This may be an unpopular view, but I'm not convinced one person should get billions for one simple insight that would probably have been implemented anyway. It's true that the Please Call Me service is now old hat, but at the time it was revolutionary. But it was one simple insight into a technology that was evolving very quickly. And MTN already had their own Please Call Me service up and running before Vodacom was able to implement theirs. Should he receive compensation? Sure. Millions? Maybe. Billions? Surely not. Of course, no matter how rich or comfortable we may be, we all have our own financial hopes and dreams. Some of us just want to pay off our bond. Or our kids' school fees. These are all legitimate. And that's why our demands to be properly paid are also entirely legitimate. Even if your first name is Elon, and you are hoping and dreaming of going to Mars. DM
The Citizen
26-06-2025
- The Citizen
Top Saps crime intelligence boss arrested for R45m property deals
Major General Dumisani Khumalo was arrested over luxury property purchases worth R45 million without ministerial approval. The National Prosecuting Authority's Investigating Directorate (ID) has arrested Crime Intelligence boss, Major General Dumisani Khumalo, in connection with a corruption investigation involving R45 million in property deals. Khumalo, who heads Crime Intelligence within the South African Police Service (Saps), was arrested at OR Tambo International Airport on Thursday following an 'extensive' probe into the alleged unlawful purchase of two luxury properties. A boutique hotel in Pretoria North, worth R22.7 million, and a commercial building in Berea, Durban, valued at R22.8 million, were allegedly purchased without proper ministerial approval. Co-accused Saps CFO reportedly missing 'Khumalo is believed to have played a key role in authorising the deals alongside Saps Crime Intelligence Chief Financial Officer Major General Philani Lushaba, who has reportedly gone missing amid the investigation,' said the Investigating Directorate in a statement on Thursday afternoon. 'The directorate's move marks a significant step in tackling alleged corruption within law enforcement's upper ranks.' Further charges and court appearances are anticipated in the coming days, the directorate added. ALSO READ: Parliament criticises police's 'lethargy' when responding to missing persons cases The National Commissioner of the Saps, General Fannie Masemola, confirmed Khumalo's arrest while speaking on the side with the media at an integrated parade of law enforcement officers in Cape Town. 'I also picked it up now from the provincial commissioner of Gauteng. He just told me that he [Khumalo] has been arrested by ID. That's all I can say. What for? I don't know,' Masemola said. [WATCH] National Police Commissioner Gen. Fannie Masemola confirms the arrest of crime intelligence boss Maj-Gen. Dumisani Khumalo.#Newzroom405 June 26, 2025 Ian Cameron, the chairperson of parliament's portfolio committee on police, tweeted that Khumalo's arrest sends more shockwaves through the policing community in South Africa. 'Leadership crisis within Saps' – Cameron This arrest comes just weeks after Lushaba failed to report for duty and could not be reached after being questioned by prosecutors about the R45-million property scandal. The portfolio committee chairperson said this raises deep concern about the integrity crisis within the senior management of the Saps. He called for an urgent skills audit, integrity audit and full review of Saps management. 'This development again raises serious concerns about the integrity and leadership crisis within Saps senior management. I repeat, a skills audit, integrity audit and urgent review of management is essential,' Cameron said. 🚨BREAKING🚨 The arrest of the SAPS Divisional Commissioner for Crime Intelligence, Lieutenant General Khumalo, sends more shockwaves through the policing community in SA. Just a few weeks after another general (Lushaba) was also arrested. This development again raises serious… — Ian Cameron (@IanCameron23) June 26, 2025 NOW READ: Two SANDF members arrested for murder of Lieutenant Colonel
IOL News
10-06-2025
- 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.
The Citizen
10-06-2025
- The Citizen
DA claims on missing official not true
Police say they are unaware of the alleged disappearance of Major-General Philani Lushaba, the CFO of SAPS Crime Intelligence, despite reports that he has failed to report for duty and cannot be reached. According to the DA's Dianne Kohler-Barnard, Lushaba went missing on June 6, the very day the National Prosecuting Authority's Investigating Directorate was expected to question him about his alleged involvement in irregular property acquisitions worth more than R45-million. She confirmed to Rekord that on June 10, his whereabouts were still unknown. These purchases, currently under scrutiny, include a luxury boutique hotel in Nina Park, reportedly bought for R22.7-million, and a commercial property in Berea, Durban, acquired for R22.8-million. 'The hotel in Pretoria North, which includes four dining rooms, a gym, and a swimming pool, was previously used by businessmen visiting nearby Rosslyn,' said Kohler-Barnard. 'It is deeply concerning that such an extravagant purchase was made while many police officers, including senior Crime Intelligence members, are reportedly working from broken furniture in dilapidated offices or, in some cases, from their vehicles.' She said both transactions were allegedly authorised by Lushaba and Crime Intelligence head Major-General Dumisani Khumalo, without the required consent from the Department of Public Works and Infrastructure. At the time when these acquisitions became public, Kohler-Barnard called for an investigation by the Inspector-General of Intelligence (IGI) and such an investigation was launched, focusing on what she explained as the misuse of state funds. The IGI's report has since been concluded, but has not yet been made public. Kohler-Barnard also raised concerns about whether the necessary steps were taken to seek available government-owned properties before resorting to purchasing high-end private assets. 'Did the Crime Intelligence Unit approach the Minister of Public Works to find a suitable existing facility for its needs? That remains unanswered,' she said. James de Villiers, spokesman for the Public Works minister, confirmed to Rekord at the time of the call for the investigation that no such request had been received. Despite the gravity of the claims, SAPS spokesperson Brigadier Athlenda Mathe said the police are 'unaware of the disappearance of any senior manager'. The DA has submitted urgent parliamentary questions to the Minister of Police to determine the full contents of the IGI's report and whether further misconduct has been uncovered. The party is also writing to the chairperson of the Joint Standing Committee on Intelligence to request that top SAPS Crime Intelligence officials be summoned before Parliament to account for the scandal. She said the incident has reignited concerns about endemic corruption within SAPS Crime Intelligence, a unit long dogged by allegations of misconduct, including under former disgraced head Richard Mdluli. 'The IGI's report must serve as a line in the sand,' the DA said. 'Without swift action to purge senior management of corrupt elements, there is little hope of restoring credibility to SAPS' intelligence function or protecting South Africans from the threat of organised crime and state capture.' Kohler-Barnard confirmed that the Crime Intelligence head, who allegedly has also been probed in the property deal investigation, is at work. The National Coloured Congress (NCC) accused the DA on June 9 of falsely claiming credit for filing fraud, nepotism, and obstruction of justice charges against senior police officials. NCC leader Fadiel Adams criticised the DA and stated it was he who initially had laid the charges against senior SAPS figures, condemning the DA for shielding crime yet taking credit when exposed. Kohler-Barnard said that when she first became aware of the property purchases, she asked the office of the IGI to investigate. 'He has completed his investigation and has given me permission in writing to speak as I have. I have no knowledge of what Mr Adams does or does not do. He is not a member of the Joint Standing Committee on Intelligence.' Do you have more information about the story? Please send us an email to bennittb@ or phone us on 083 625 4114. For free breaking and community news, visit Rekord's websites: Rekord East For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram or TikTok. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading! Stay in the know. Download the Caxton Local News Network App Stay in the know. Download the Caxton Local News Network App here
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.
