Dr Zweli Mkhize responds to Sunday Times

5 Sep 2010

Following a report in the Sunday Times today, the Premier of the province of KwaZulu-Natal Dr Zweli Mkhize wishes to state that, unfortunately, for reasons known by the newspaper, they chose to ignore the crucial aspects of his response to this matter.

The premier takes serious exception to the newspaper's suggestion that "he played a key role in a scandal".

From the word go, the newspaper prejudged the issue even before they were given factual responses. We also hold a view that this borders along defaming Dr Mkhize.

An impression has been created in an effort to project Dr Mkhize as a corrupt politician who influenced the "multi-million rand deals awarded to Cape Town firm Intaka".

This despite having stated in our response that in Cabinet there was a mention of a particular supplier but there was no Cabinet decision that other suppliers should be excluded, nor did the letter to the then MEC for Local Government MEC Mike Mabuyakhulu suggests that if there were other suppliers they cannot be given attention.

We stated in our response that Dr Mkhize had neither discussion nor contact with Intaka and Savoi. They have never met and have no relationship.

The provincial Cabinet facilitates socio-economic development programmes intended to benefit the people of KwaZulu-Natal. Dr Mkhize therefore denies in the strongest terms suggestions that he was involved in the facilitation of a fraudulent deal and categorically denies any wrongdoing on his part.

At the level at which Dr Zweli Mkhize participated, there is no fraud and he denies any negligence.

I have attached a full response to the Sunday Times enquiry for ease reference.

Text of Dr Zweli Mkhize's response to questions from the Sunday Times, September 4 2010:

Province of KwaZulu-Natal

Isifundazwe SaKwaZulu-Natali

Office of the Premier
Ihhovisi LikaNdunankulu

Mr Mzilikazi Wa Afrika
Investigative Journalist
Sunday Times

Dear Sir

The KZN Premier, Dr Zweli Mkhize is in receipt of your questions and responds as follows:

Question 1

At the time Dr Zweli Mkhize was the MEC for Finance and Economic Development, the provincial government had conducted several izimbizos around the KZN Province. The outcry from most communities was about the drought and difficult access to water and sanitation services. As a result, a principle decision was taken by the KZN Provincial Cabinet to procure infrastructure to improve access to water in different districts.

A further decision was taken by the provincial government that a provincial fund known as the Poverty Alleviation Fund would fund such a project. In fact it should be mentioned that at that stage it was even agreed that a long term plan for "water security" had to be developed to permanently address this challenge. This included plans such as moving water from big dams to drought stricken areas. While this would take very long to achieve, it was noted that developing local sources of safe water for communities was most desirable, more effective and would save funds in places where water cans were used to deliver water.

This indeed had a huge potential to benefit communities who were in dire need of water.

National Treasury had directed that unallocated funds such as the Poverty Alleviation Funds had to be moved to the intended departments to be allocated to specific projects. This was another basis on which the movement of funds once ear-marked for the water project had to be expedited.

Dr Mkhize takes serious exception to you now alleging in your question, that "...he is therefore implicated...". This can only be interpreted as you prejudging the issue even before you are given factual responses. We also hold a view that this borders along defaming Dr Mkhize and request that you withdraw these utterances.

Question 2

The letter you refer to is a letter that was sent to the then MEC for Local Government and Traditional Affairs Mr Mike Mabuyakhulu proposing that in light of the resolution taken by the provincial government to deal with this water shortage crisis in our province, a task team had to be formed in order to thoroughly investigate the issues around procuring infrastructure to address this drought problem. It was even recommended that there must be liaison with all stakeholders, including the municipalities who were going to be recipients of the product if it was approved by the provincial government after the investigations.

It is incorrect to suggest that Dr Mkhize "put pressure" to push the deal. Dr Mkhize expected that the processes would be expedited. No instruction for illegal or criminal acts was given. To suggest such is defamatory.

Dr Mkhize has never involved himself in tender irregularities. Deviations have procedures to guide them and do not on their own amount to fraud.

As MEC for Economic Development at the time, Dr Mkhize had also been advised by the Trade and Investment KwaZulu-Natal (TIK) that this project had a potential of a positive financial spin off for the KZN province as a company that builds these plants could be established in the KZN Province and the products could be sold to other provinces and even all over Africa.

There was a mention of a particular supplier but there was no cabinet decision that other suppliers should be excluded, nor did the letter suggest that if there were other suppliers they cannot be given attention.

It is important to highlight at this stage that these Water Purification Plants that were purchased from Intaka are in existence and they were delivered to the Province. Ten of these water purification plants are situated in different districts in the Province (list attached for your information). Due to geotechnical complications and logistical problems that are even currently being dealt with by the provincial government together with municipalities, the other plants are in storage and will continue being installed in different sites as problematic issues that have been identified are resolved. An installation plan has been recently tabled to Cabinet.  (list attached for your information).

Once again you make unfounded allegations and implicate Dr Mkhize "in facilitating deviation of due tender process, resulting in tender fraud." We regard this as an insult to Dr Mkhize's being and suggest that unless you can at this stage prove this allegation you've made, it be withdrawn with immediate effect.

Dr Mkhize had neither discussion nor contact with Intaka and Savoy. They have never met and have no relationship

Question 3

The view that the Dr Mkhize was derelict in his duty is not only disingenuous but also short sighted. Government has policies and procedures on the declaration of conflict. It is a duty of every employee, service provider and other government stakeholders to assess in different transactions that they engage in whether there is a conflict of interest or not. In instances where there is, it must be declared.

The Provincial Cabinet facilitates socio-economic development programmes intended to benefit the people of KwaZulu-Natal.

Dr Mkhize therefore denies in the strongest terms suggestions that he was involved in the facilitation of a fraudulent deal and categorically denies any wrongdoing on his part. 

At the level at which Dr Zweli Mkhize participated there is no fraud and he denies any negligence.

Dr Mkhize has never been aware of Mr Shabalala's wife's business dealings with Mr Savoi or any related business entities. Therefore, Dr Mkhize was never aware of any potential conflict of interest in this matter nor was such a possibility ever part of the discussions on this matter. 

Question 4

Dr Mkhize's wife, Dr May Mashego is a businesswoman. Dr Mkhize does not doubt her judgment in all her business dealings. He is in his view allowed to work with any individuals as long as it is legitimate and proper business dealings. He is also confident that she has always maintained this principle.

Dr May Mashego has no personal or business relationship with Mr Savoi

Dr Mkhize has, in the past, given full details of the loan application even in the Provincial Legislature and it is surprising that you still raise this question.

In brief, Dr Mashego and other business people formed a consortium and made a loan application at Ithala. This application was declined and there were no financial or business transactions conducted by the said consortium.

For your own clarity, as it stands, there are no business activities Dr Mkhize's wife is engaged in with Mrs Shabalala. The entity in question is now defunct and never traded - a fact that needs to be acknowledged and not reported as though there is a current active business relationship between them. As it stands, your statement is misleading and has to be published in its context to reflect the correct situation.

Dr Mkhize was never involved in that loan application to Ithala. 

An investigation into "Related Party Transaction" (including a loan to Dr May Mashego) was conducted by the Auditor General and in his report he pointed out that there was no conflict of interest or breach of the lending policy. This again needs to be included in your reports to avoid creating an erroneous impression on this matter.

Are your allegations that Dr Mkhize was endorsing a shady deal intended on defaming him? If not, please elaborate or withdraw your statement.

Question 5

The ANC Secretary General Sihle Zikalala last week released a statement in this regard, may I therefore refer you to it.

Thank you

NDABEZINHLE SIBIYA

SPOKESPERSON FOR DR ZWELI MKHIZE

PREMIER OF THE PROVINCE OF KWAZULU-NATAL

Statement issued by Ndabezinhle Sibiya, KwaZulu-Natal Office of the Premier, September 5 2010

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