Zweli’s future on knife-edge
DG insists minister did nothing wrong after probe flags ‘irregular’ approval
● Health minister Zweli Mkhize is fighting for his political life following revelations that his family may have benefited from proceeds of a R150m tender his department awarded to his close associates.
More damaging claims could follow after it emerged this week there has been a fallout at Digital Vibes, the communications company at the centre of the scandal, amid threats of court action.
The company was being run by Mkhize’s associates Tahera Mather and Naadhira Mitha, who both worked on his 2017 ANC presidential campaign.
The Sunday Times can reveal that Mather and Mitha have fallen out with Radha Hariram, the director of Digital Vibes. Hariram has opened a case of fraud against the two.
Amid widening calls for Mkhize to step down, President Cyril Ramaphosa has asked for time to allow the Special Investigating Unit to complete its probe.
Questions are being raised about Mkhize’s signature on contracts, which was flagged as irregular by an independent probe conducted by financial auditors and tax consultants Ngubane & Co. Mkhize has denied personally benefiting from the contract.
Health department director-general Sandile Buthelezi told the Sunday Times it is a practice of long standing in the department for the minister to sign a submission after a contract has been approved by the accounting officer.
Buthelezi obtained a legal opinion that disagreed with the Ngubane & Co finding. The opinion stated that there is no law prohibiting Mkhize from signing after the director-general has approved a contract.
Buthelezi said it is clear that Mkhize did nothing irregular by signing the submission that came to him for approval.
Buthelezi also revealed that after the Ngubane & Co findings, Mkhize initially vowed never to sign another document.
The director-general insisted that Mkhize is not involved in the decision-making process of submissions he approves, and that his approval is at a policy level to support the procurement of services that further enhance the department’s ability to execute on its mandate. “The minister, as political head of the department, ought to be involved in making these kind of policy choices. It is crucial to mention that the minister cannot amend or alter what is contained in the submission but exercises his duty as the executive authority of the department to ensure
that the decision already taken by the accounting officer is in line with the strategy of the department.”
But senior government officials and Mkhize’s cabinet colleagues said his actions were not allowed under the Public Finance Management Act or National Treasury regulations.
Mkhize’s predecessor, Aaron Motsoaledi, declined to comment on whether he signed any documents related to procurement during his time as health minister. He referred the Sunday Times to public service & administration minister Senzo Mchunu.
Mchunu refused to be dragged into the Mkhize scandal, but he said ministers were not expected to sign any documents related to procurement. “I wouldn’t know what happened at the health department. What I know is that ministers don’t sign anything related to procurement contracts. That is why you have accounting officers,” he said.
Treasury director-general Dondo Mogajane concurred with Mchunu.
“In as far as I know and understand the law that we apply as Treasury, accounting officers are responsible for procurement and supply chain in any government department. Politicians do not sign off on any tenders. The director-general is ultimately responsible. The DG signs off and takes full responsibility,” said Mogajane.
Acting presidency spokesperson Tyrone Seale said: “Minister Mkhize made a public statement earlier this week in which he announced that a forensic investigation into the Digital Vibes contract, carried out by the Ngubane Tax Assurance Advisory firm, had been finalised and presented to the president and to the SIU. The president awaits the SIU report. As the head of government, the president is in constant communication with ministers.”
Mkhize’s apparent involvement in the procurement process could bolster calls for his removal. Mkhize is regarded by Ramaphosa’s backers as a threat to the president’s bid for a second term. Although he has not publicly aligned himself with any faction in the battle for control of the ANC, both sides would want him in their corner.
A source with intimate knowledge of developments at the Union Buildings said Mkhize informed Ramaphosa of the investigation when the first Daily Maverick story on the issue broke in February this year.
On Friday the Daily Maverick revealed that Digital Vibes paid for maintenance work on a Johannesburg home owned by the Mkhize family. The report also revealed that the company made payments to a company owned by Mkhize’s son, Dedani.
Insiders close to the department said Digital Vibes was brought in to handle communication related to National Health Insurance (NHI) in November 2019.
However, when the country was hit by the pandemic, its scope was extended.
“They handled everything from speeches, media queries, opinion pieces — and later moved to TV, radio and billboards.”
Political analyst Ralph Mathekga said the Mkhize debacle has put Ramaphosa in a difficult position. “Cyril is in a tight spot here because if he doesn’t act and is seen to be stalling on this thing, it actually fuels the other faction within the ANC who are saying that there is selective implementation of this step-aside resolution … this is a senior cabinet minister and we are in the middle of a crisis and this thing undermines Cyril’s anticorruption big time.
“To be honest, Zweli Mkhize’s name has never been away from controversy … but on this one, in a moment like this, this one has to have accountability, otherwise Cyril is going to lose his allies.”
Mkhize himself has powerful allies in ANC structures. This week Gwede Mantashe dismissed calls for Mkhize’s removal, saying investigations into the matter must be allowed to continue.
ANC Women’s League president Bathabile Dlamini questioned calls for Mkhize to step down and suggested that there was an orchestrated campaign to get rid of him.
“What does the constitution say [about innocent until proven guilty]? What does it say about allegations? Who did the investigation and where is that investigation and what are [the] allegations [against Mkhize]?
“So why should Bhuti Zweli leave because of allegations? … I saw the story and saw that it caused a lot of smoke and to me it appeared as if it was planned somewhere.”
The Daily Maverick has been running reports revealing how Mkhize’s close associates scored.
Hariram this week declined to discuss the scandal, referring questions to her lawyer, Sumen Pillay, who confirmed that his client brought fraud charges against Mather and Mitha in Johannesburg this month. “I cannot disclose more … because the matter is at a sensitive stage in terms of investigation and in terms of co-operation with the authorities. Charges have been laid and are being investigated by the police,” said Pillay.
A police source with knowledge of the investigation said Hariram said she owned 95% of the company shares. According to the charge: “It is alleged that the company received a tender from Department of Health around 2019 November. The complainant contacted Tahera Mather and Nadira [sic] Mitha for assistant [sic] to carry out the work as they have the required skills. During March 2020 complainant was ill and could not work and gave both assistants passwords and pins as she trusted them.”
She later discovered alleged “unlawful transactions”, and a forensic team traced disbursements made to Mather and Mitha’s families without her knowledge.
According to well-placed sources, Hariram and Mather were well acquainted with each other and hail from the same town.
“Everyone knew Radha from her time working at the bank … She used to do the banking for Tahera when she was running her account there. It is apparent that Radha was the scapegoat in this whole thing,” said a source.
Mkhize has denied a friendship with Tahera, saying they were merely “comrades”, but the source disputed this: “Tahera is friends with the minister. She used to go to his home in Ashburton [in KwaZulu-Natal], she knows his wife and daughter. His kids used to stay at her home in Durban. The minister attended her late husband Imtiaaz’s funeral in 2016. If he’s not a friend, why would he be there?”
The Durban home is also the address of a former close corporation in which Mather and Mkhize’s daughters were listed as directors. The company is currently deregistered.
When the Sunday Times attempted to approach Mather for comment at her posh Blythedale, KwaZulu-Natal, home, a member of her household said she was asleep and could not be disturbed. She didn’t respond to queries sent via WhatsApp about the criminal charge and multimillion-rand contract.