KZN officials face raft of allegations

2011-08-01 22:53

Pietermaritzburg - KwaZulu-Natal Economic Development MEC Mike Mabuyakhulu and provincial legislature Speaker Peggy Nkonyeni were allegedly part of a pattern of racketeering, fraud and money laundering, the Pietermaritzburg Magistrate's Court heard on Monday.

This is contained in a 77-page document presented before the court when the two, along with former provincial health department head Professor Ronald Green-Thompson, made their first appearance.

The three and 15 others face fraud, corruption and money laundering charges. The rest were charged last year and have been appearing in court since then.

Their charges relate to the awarding of multi-million rand tenders to South American businessman Gaston Savoi’s company Intaka to supply water purification plants and oxygen generating units to provincial hospitals.

The State alleges standard procedures were bypassed to award tenders, prices were inflated and that certain people paid for influencing the tender process.

Intaka supplied goods to the health department while Nkonyeni was its MEC, and to the housing, traditional affairs and local government department when Mabuyakhulu was MEC.

As MEC, Mabuyakhulu allegedly participated in the conduct of the enterprise. His department purchased 20 water tanks for R44 563 636.

According to court papers, in 2007 former KwaZulu-Natal treasury head Sipho Shabalala and Mabuyakhulu agreed to accept R1m from Savoi.

According to media reports the money was donated to the ANC in KwaZulu-Natal. The court papers however make no mention of the ruling party.

The papers however mention a text message Nkonyeni allegedly sent to Savoi after the contract was signed.

It reads: "Doc! The contract was signed yesterday although your guys were not happy with maintenance and few other things buy (sic) they were crushed because of what was reflected in the bid document. Next time we’ll have to be more careful and perhaps u need to cancel the donation since u r losing on maintenance, what do u suggest? Peggy."

Not flight risks

According to the papers several payments were made to different companies, allegedly to hide the source, location or ownership of the money.

An amount of R100 000 was paid to Blue Serenity Investments, a company owned by Sipho Shabalala's wife Beatrice.

As part of the proceeds of unlawful activities R771 444 was allegedly made available to Shabalala and his wife through the Variquip CC bank account.

Nkonyeni allegedly accepted R500 000 to be paid into Lindelani Mkhwanazi’s company account for her benefit, or the benefit of other people.

This was done for her personally, or by influencing others, to award a tender. Mkhwanazi is described as Nkonyeni’s friend.

Thompson became involved during the installation of an oxygen generating unit at Murchison Hospital on the KwaZulu-Natal south coast in 2005 as a pilot project.

The State alleges the department did not stand to gain from the installation of the units.

Quotations for the water purification plants were allegedly inflated.

Nkonyeni and Mabuyakhulu were granted R100 000 bail each. Green-Thompson was released on R40 000 bail.

The State did not oppose bail, saying they were not flight risks.

They were told to appear in the same court again on January 20 next year for a high court date to be set.

Read more on:    mike mabuyakhulu  |  peggy nkonyeni  |  durban  |  tenders

Read News24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Inside News24


17 photo illusions that look so real

What if they aren’t illusions? What if that dog really has a human foot – then what?


For chic geeks...

It’s THIS easy for someone to steal your ATM pin!
Check out the speed of this robo-cheetah!
New GIF keyboard on iOS for added fun!
Puppy goes crazy over iPad game

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now! - shop online today

Pre-order your iPhone 6 at

Hurry and pre-order your own iPhone 6 now at SA’s favourite online store!

Bargain box – 60% off

Reduced prices, very limited stock. While stocks last. Hurry and shop now!

Mind blow low prices on electronics

Get either the Prestigio multiphone or Proline tablet 7” tablet for only R699. Offers valid while stocks last. Shop now!

30% off Barbie toys

Save 30% on all Barbie toys and accessories. Offer valid while stocks last. Shop now!

Baby extravanganza month at

Celebrate baby month with a wide range of awesome baby products. Offers valid while stocks last. Shop now.

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25


Don`t judge so quickly or expect too much, be more accepting and understanding and make space for fun and spontaneity. more

There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.