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.

  • Sir Eidolon - 2011-08-01 23:11

    Oh dear. The wheels of justice turn super slowly for the lucky few. I bet they'll still receive their full salaries.

      Atholl - 2011-08-03 06:09

      Sir Eidolon (your majesty) the wheels are geared .... sometimes they turn slooowwwllly, as in this case .... Other times, when the need arises, they turn super fast! Like when there is a 'Nicholsonic Intervention' ... it's like a new invention similar to the Supersonic Aircraft ... let me explain briefly... A Nicholsonic intervention is when swift injustice, at a particular time, is followed by a stunned and delayed corrective justice move in order to correct the swift injustice manouvre. By the time the corrective injustice is corrected ... it could be followed by another Nicholsonic type intervention (such as a scorpionic intervention) .... then all hell breaks loose ! Maybe that's why there is mention of a 'Natal South Coast pilot project' - do these aunties need a nicholsonic pilot ?

  • Monica - 2011-08-01 23:23

    Surely you have someone in charge that does the fincances in the ANC government that can check the finances! Obviously they are all involved! Yet; the people of this country; most of them that cannot afford to buy a newspaper and have internet; vote for these fools!

      ProudofPink - 2011-08-02 01:29

      Quite correct and these ones are just the tip of the iceberg.

  • Muna - 2011-08-01 23:50

    No, No, I don't believe it another day, another cadre caught with his/her finger in the pie. Ah well I am sure they will be due for a raise soon.

      Creeky - 2011-08-02 09:31

      Mabuyakhulu has to be THE most CORRUPT ANC OFFICIAL, next to Bheki Celebi.... This dude RUNS eThekwini Council... even tho Obed USED to be the Mayor... he did NOT have the CLOUT that Mabuyakhulu HAS!!!!! No tenders to ANYONE.... but HIS COMPANIES.... that he has a FINGER IN THE PIE!!!

  • Muna - 2011-08-01 23:51

    Please if there are any honest people left in government will you please stand up, ah I thought so, none.

  • Grimmy - 2011-08-02 00:43

    To the corrupt guys not caught yet, just think of that advert:" Pappa wag vi djou..." and decide if its worth it!!!

  • Graham - 2011-08-02 07:02

    More corrupt ANC officials. This is only the tip of the iceberg!

  • Zantsak - 2011-08-02 07:16

    I have personal experience of Peggy and Sipho, she is the one that accused the white doctors in Manguzi that they were racist. Pretty sure my sister in Law is laughing now. Sipho is a racist that has also been implicated at Ithala bank with plenty of wrongdoing. Funny how the wheel turns for these people.

      PB - 2011-08-02 08:48

      Just a pity they are most likely going to just be redeployed with an increase. When are we going to see and hear of ANY mony being recouped from these corrupt ANC appointees?

  • PB - 2011-08-02 08:46

    Are there ANY government officials who are not corrupt to the core?

      John Smith - 2011-08-02 09:21


      Creeky - 2011-08-02 09:28

      Those are like CHICKEN TEETH...Incredibly RARE!

  • Douglas Hendry - 2011-08-02 09:41

    I wonder how many people could have received medical treatment with the money that was stolen? And how much of these monies will be recovered?

  • dotty_01 - 2011-08-02 13:23

    these guys just cant help themselves. they are like children in a toy shop. boy, these previously disadvantaged people have a long road ahead of them before they can lay any claim to being civilised.

      Creeky - 2011-08-02 14:27

      More like Alcoholic's in a BEER SHOP!!

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