NEF chief probed for corruption

2013-09-29 09:35

Pretoria - A forensic investigation has been launched into the actions of National Empowerment Fund CEO Philisiwe Mthethwa following allegations of fraud and corruption.

According to the Sunday Times, this comes after the department of trade and industry received an anonymous tip-off. The fund came under the spotlight last month when it emerged that Mthethwa had granted Khanyi Dhlomo a loan of R34m to open Luminance, a luxury boutique in Hyde Park, Johannesburg.

Three weeks ago it emerged that the fund also approved a R9.8m loan to a company owned by Mthethwa’s brother, Nkanyiso Buthelezi. Three years on, not a cent has been repaid. Last week, it came to light that the fund wrote off R290m last year.

Mthethwa, who is married to Police Minister Nathi Mthethwa, has been the fund’s CEO since 2005. The newspaper reported that following a board meeting on Friday, Mthethwa has been put on special leave.

Role of the NEF

The National Empowerment Fund was established by the National Empowerment Fund Act No 105 of 1998 (NEF Act). According to the Fund's website, its was founded to be "a driver and thought-leader in promoting and facilitating black economic participation by providing financial and non-financial support to black empowered businesses, and by promoting a culture of savings and investment among black people."

The exact purpose of the Fund was brought into question by the Dhlomo case, with some critics, including the EFF and the SA Clothing and Textile Workers' Union, on the grounds that as she already has a successful business, Dhlomo should not have been granted a loan. The opponents of the decision say that it goes counter to the empowerment goals of the fund.

Mthethwa came out in defence of the decision, being quoted as saying that the retail sector needs transformation. According to a SAPA report she briefed parliament's trade and industry portfolio committee on the merits of the loan being granted, and various members of parliament including Trade and Industry Minister Rob Davies were quoted as saying they were satisfied that the deal was in line with the NEF's mandate.

  • Xolile Namane - 2013-09-29 09:41

    The looting just continues.....sad state of affairs

      Anton Kamp - 2013-09-29 10:18

      @ Steve< Yes, lets put them in jail, but we should start with the bosses of White owned companies, like most major construction companies in SA, who took the public for BILLIONS, and got off with paying some fines. Or, does this not count, as there would be no political millage for these two faced, nat/da supporters!!! .

      Victor van der Walt - 2013-09-29 11:28

      Anton you sound like a bitter little man shame......

  • WE Werner - 2013-09-29 09:49

    SA is a nice family business

  • Jurie Nel - 2013-09-29 09:52

    One of the unintended but inevitable consequences of nepotism.

  • Vasco Vigis - 2013-09-29 09:52

    Oh cmon,the cANCer nonchalantly take us for fools! We know its nearing election time of course you will throw a few officials under the bus,but as soon as elections are done then these officials will be "resurrected" and "redirected" into other offices due to a lack of evidence...yet most people vote according to loyalty and not social responsibility.

  • Wynne Strydom - 2013-09-29 09:54

    Wonder where is all the stolen police weapons. What an idiot by carrying on and think he will not been caught. Now JZ will most probably give him a golden handshake.

  • Mark Janse van Rensburg - 2013-09-29 09:56

    Google corruption and SA makes it NUMBER ONE! No serious my friend number UNO! As it stands my fellow News24 ANC loyalist has condemned me for saying bad things about their party. They state that saying bad things about the ANC makes it worst for them to change their vote. In that light I will not say anything bad, I just would say NUMBER ONE on Google!

      WE Werner - 2013-09-29 10:10

      And they are all quiet now again,some racial slur will pop in a moment.

  • Tian Nel - 2013-09-29 10:08


  • Tian Nel - 2013-09-29 10:08


      Vaal Koos - 2013-09-29 10:51

      And Gordham has sleepness nights thinking up new ways of taxation.We south africans are the most financialy abused nation in the world.We have enough reason to revolt.

  • Ronald Gibson - 2013-09-29 10:09

    It still does not fail to amaze me how much of an ANC family business the SA government has become. The intricate web formed by family, tribal and crony connections shows the great extent Zuma has gone to in order to cement his position as Chief Thief Alibaba. The forty thieves have unfortunately had a rabbit-like population explosion beyond what the citizens of SA can afford.

  • Mike Peach Purchase - 2013-09-29 10:11

    All funded by the hard working tax paying citizen.

  • Peter Mokoena - 2013-09-29 10:19

    Corruption. Corruption. Corrupted officials stealing from state and tax payers.

  • Hans de Waal - 2013-09-29 10:21

    I would still like to hear about one MEC, Minister, ANC appointed cadre who is NOT corrupt. Bloody hell man is there not one single bastard who does not dip into the cookie jar? The jar must be nearing empty and I fear it would be a mad dash to grab the crumbs soon! What are they thinking? Probably "Its ok to take some as I have paid my dues" And here I duly fork over my hard earned tax money each month! I don't steal, I abide by the law but get violated each year by our government. My kids will have to bear the brunt of employment equity when they look for jobs one day. So I pay taxes so that the future of my children can be very murky and they would possibly have to move away from SA to get decent tertiary education and a job one day. This equation sucks and is simply not sustainable. So carry one destroying our economy Mr. Zuma. Keep denying that all the strikes are not harming our economy and scaring away foreign investment. Keep paying lip service to the fight against corruption and then console your cadres when they get scolded for being a dishonest thief! One day the taxpayers will dry up and then you will have nothing coming into the cookie jar. Just remember that gatvol people end up revolting against their oppressors (see how Khadaffi ended up, also reference the Arab springs revolt)

      Ernica Stanford - 2013-09-29 10:50

      With the money these people have stolen, they have enough to last them ten lifetimes, so they don't care if it starts drying up.

      Anamari Buck - 2013-09-29 16:27

      Don't panic Hans remember we have the Mthethwa couple in charge of the Police and the CASH distribution. They will never fail in filling their pockets, shame they really need it.

  • Jacqui Daane Van Rensburg - 2013-09-29 10:21

    Allegations of fraud and corruption?. Haven't we heard that before?.

  • celeste.burger.5 - 2013-09-29 10:26

    Disgusting! And disturbing. How does that "come to light"? Is that not suppose to be matter of public interest. Is that information in the annual report? Is that paid special leave? Lol

  • Dee Bone - 2013-09-29 10:27

    rob the country into the ground

      Victor van der Walt - 2013-09-29 11:32

      Rob the country into poverty, just like the rest of africa......

  • Trudi Roos Potter - 2013-09-29 10:30

    No news, they are all corrupt. What do you expect? Ask them why, they say we must.

  • Altus Kirsten - 2013-09-29 10:30

    In their DNA to be corrupt.

  • Andrew M - 2013-09-29 10:42

    Hells Bells are there no decent and honest people in Government?

      Jurie Nel - 2013-09-29 11:05

      Andrew, I'll try to think of one. Give me a fortnight, and I'll come back to you.

      Ernica Stanford - 2013-09-29 11:13

      There's Thuli Madonsela. I have the highest regard and respect for this lady.

      Victor van der Walt - 2013-09-29 11:34

      Only because Thuli has not be caught yet give her time...

      Stephen AndKathy Whiteley - 2013-09-29 12:25

      It has reached the point of no return; the Party cannot get out of it even if they would. And the money is not spent on anything lasting, cultural or compassionate: custom mansions, super cars, restaurants, hotel nights, fashion, air travel.

      Vaal Koos - 2013-09-29 13:00

      So far she has sorted out the minions, a threat to the ANC.. what about the big boys?Is it going to take forever?

  • Matong Tsiane - 2013-09-29 10:44

    I still maintain that,the ANC is bigger than individuals,the onus rest with members of the ANC(not fakes) whether the vehicle branded ANC should be driven by drivers without licenses,drunk drivers or drivers that can't respect traffic rules becos it will lead to a fatal accident and at a fatal accident the vehicle normally will be beyond repair,it will be problem !

      Jurie Nel - 2013-09-29 11:07

      Matong, yes, it is the duty of the party members to call their corrupt leaders to account. South Africa is waiting with bated breath.

  • Leondios Papadopoulos - 2013-09-29 10:49

    Listen up ALL of you..... its absolutely a WASTE of time posting these sort of 'Finds' because the people that have the voting power are all the ones in the rural areas or are illiterate and without internet, unbiased news etc. So how does one get to these folks so that they can see the true colours of the people that they vote in???

      Vaal Koos - 2013-09-29 11:02

      By stop being selfcentered,educate your workers,your gardenboy ,your domestic.Give them your newspaper to take home.Inform them about the persons they vote for.

      Jurie Nel - 2013-09-29 11:21

      Koos, personally, I do exactly that. But there comes a point in the discussion where it is pointless to continue. The final trench has been reached, and I realise that only good manners stop the other party from resorting to "dumb insolence". And that point is where I have obtained agreement on all points where the ANC had failed its voters. All that remains, is a decision to vote foor any other party. NO. A vote for any other party, it is argued, weakens the ANC. And here comes the clincher, which I have never succeeded in overcoming. The ANC is seen as the only party which can stop the return of apartheid. This is a creed, a final stand, a religion, a "sine qua non" (if not that, then rather nothing). How, then, is the ANC's hold over the electorate to be broken? Time, education, development, prosperity. Time to heal the wounds of apartheid - probably a generation or more. Education - a long, hard, uphill battle from where we are now. Development - of economy and infrastructure. Prosperity, for prosperous people are more inclined to think for themselves, and less inclined to vote like sheeple. It is not going to be easy.

      Tersia Louw - 2013-09-29 11:49

      Koos, maybe you can start by not referring to your gardener as a gardenBOY?

      Stephen AndKathy Whiteley - 2013-09-29 12:52

      Everyone sees the true colours plainly enough, but there are so many other currents of feeling. Jurie describes the prospect quite accurately.

      Vaal Koos - 2013-09-29 13:08

      touchy Tersia.What do i call him?Gardenmanager? Botanical specialist?gardenassistant.i don`t think he`s going to like that.He will probably think i am sarcastic.

      Vaal Koos - 2013-09-29 13:10

      Tersia,the third pilot in a Boeing is called a "boypilot"

      Anamari Buck - 2013-09-29 16:30

      Spot-on Leondios, finding the answer to this will be better than winning the lotto.

  • Stephen AndKathy Whiteley - 2013-09-29 10:51

    They are actually stealing from the country's infrastructure which, like economic sanctions, most hurts the poor. Stephen

      Malose-Nyatlo - 2013-09-29 10:56

      Looting is the correct word.

  • Marc Anthony Webb - 2013-09-29 10:54

    Anton have you heard the fable about the locust and the ant! With the previous government they still left some for the hard days,while the current lot are just like locusts eat everything and then blame the past!

  • Vusi Mad-Lala Sishi - 2013-09-29 10:59

    Zuma's cronies- what did you expect? you have got another chance to cast your vote next year

  • Daniel Nunes - 2013-09-29 11:01

    The African way:)

  • Peter Zylstra - 2013-09-29 11:01

    When you discover a anc official who is not corrupt, that will be news!

  • Simphiwe Maziboko - 2013-09-29 11:02

    We had a solid business case and they declined us.

      Jurie Nel - 2013-09-29 11:30

      My sympathies, my friend. So did we, and very many others I have heard of. I suppose they're not interested in small fry -- only in big transactions with plenty of fat, allowing for much to be stolen.

      Phumla Twala - 2013-09-29 12:07

      Sigh Same here :-(

  • Gillian Goodfellow Sanderson - 2013-09-29 11:04

    Yet another greedy, corrupt, bad person. Married to police minister mind you - no surprises there ... no respect here! Smelt a rat when the loan to Khanyi was granted - so much money going to ALL the wrong places. UGH!

  • Jerome Appollis - 2013-09-29 11:05

    My tax geld word daagliks vir n gat gevat

  • Gert Barnard - 2013-09-29 11:15

    We see this only because the person was found out................... If nobody found out about this, it would have been "The Government (ANC)" It is clear what needs to be done...................

  • Gavin van Wyk - 2013-09-29 11:15

    nothing new jus another corrupt idiot.

  • Israel - 2013-09-29 11:16

    Who IS NOT CORRUPT in this disastrous GOVERNMENT!!!

  • Lavisto Dogman Mavisto - 2013-09-29 11:18

    Investigating these people it's another waste of taxpayers money because even if the investigations find them guility they aren't be arrested !

  • Terrylin Backpackers - 2013-09-29 11:19

    So, what's new?

      Thukhe Ndlovu Farmer - 2013-09-29 23:51

      ure the only new thing here

  • Joe Lishman - 2013-09-29 11:30

    If one looks at the cars and houses these new "public servants" have I realize that us old public servants who kept the systems running just did NOT steal enough !!!!

  • Tian Nel - 2013-09-29 11:45

    bunch of mice in a cheese factory..julle diewe

  • Petro Ackermann - 2013-09-29 11:46

    En DIT is hoekom hulle almal deesdae die duurste klere dra,die vinnigste karre ry,die grootste huise het,en die stinkste attitudes het. ek kots sommer

  • Thulane Mthethwa - 2013-09-29 11:52

    I wander where Khanyi Dlomo being rich so fast.

  • Sika Frm GP - 2013-09-29 11:54

    I'm not suprised @ all that what kept her 4 so long in that position of CEO#corruption#Nathi is her name also in crime statistic that u released earlier this month#Shame Shame Shame Shame Shame 2u Nathi how can u combat crime out there while enjoying its benefit frm yo wife

  • proudlysa - 2013-09-29 12:06

    Well, Anthon, does it hoe the ANC that the last NP leader is currently an ANC minister? Maybe kortbroek Marthinus is still teaching them corrupt tricks. Anyway, ever heard of two wrongs don't make a right. The ANC is stealing from its own people!!

  • Rob Williams - 2013-09-29 12:13

    I was the anonymous person that forwarded the first tip off starting back in early 2011 via after starting the investigation back in 2010. I am a whistle blowers voice for people that do not want to expose themselves to their masters and jeopardize their positions in society or their company/organisation. Corruption busting is paying lets keep going.

  • Maru Sebata - 2013-09-29 12:19

    The Hawks shd arrest th wife their boss,Nathi Mthethwa. Nat. Empowermnet Fund CE0 shd empower local companies 2 create jobs instead R34 million is given 2 Khanyi Dlomo import expensive clothing thereby creating jobs for overseas! Khanyi put R15KK(million) in th business to R34 million from NEF, technically she recouped her 15KK from taxpayers!

  • Hummer Hlophe - 2013-09-29 12:27

    women are crazy,how can you spend 34 million on shoes?

  • Hasani P - 2013-09-29 12:44

    The husband used 200 000 for security upgrade nothing hapenned? Wow!

  • Lee Brand - 2013-09-29 13:28

    Married to the police minister! Corruption!? Surely not - cant believe the corruption busting anc would be guilty of this? Zoomie the paragon of inellect, virtue and integrity has set the bar. Why is there this stench of corruption??

  • Lee Brand - 2013-09-29 13:29

    Married to the police minister! Corruption!? Surely not - cant believe the corruption busting anc would be guilty of this? Zoomie the paragon of inellect, virtue and integrity has set the bar. Why is there this stench of corruption??

  • Ivan Matshaba - 2013-09-29 13:31

    All this government entities are full of corrupt and fraudulent thieves. Getting rid of this CEO is not going to solve the problem, we need a new government...period!!!

  • Ronnie Matome - 2013-09-29 14:07

    Because of her husband,she will never be arrested or face chargers in court.

      Pheello Maleleka - 2013-09-29 18:05

      hahahaha manfred nice one

  • Guy Mugabe - 2013-09-29 15:24

    Not surprised deeply rooted nt so long ago,the hubby extended the wall n refurbished it with, secret slush funds n what happed nothn.So the corrupt shall Govern

  • mantlekilo - 2013-09-29 16:29

    Let's investigate this one differently ....let;s start where we know the money ended up, @ Luthuli House, and connect the dots back to this muppet. There is little doubt in my mind the systematic siphoning off of public money has less to do with blatant criminality but more to do with buying allegiance to and from the future 'politburo' of a one party state.

  • Phemelo Paledi - 2013-09-29 16:58

    And she was on the cover of Destiny magazine not so long ago, very convenient...(Destiny is Khanyi's magazine)