DA asks Public Protector to investigate Minister Zulu’s dodgy deal with US African Development Foundation

5 September 2023

The DA will write to the Public Protector’s office to request a second investigation into the Minister of Social Development, Lindiwe Zulu, and the acting director-general (DG) of the Department of Social Development (DSD), Linton Mchunu, after the newest revelations in the media that they breached internal and governmental protocols when entering into an agreement with the US African Development Foundation (USADF).

According to City Press, the Minister and Mchunu signed a memorandum of understanding (MOU) with the USADF for a 5-year deal to fund small to medium-sized businesses by contributing $1 million each annually to a bank account from which only the USADF may make withdrawals. This, even though DSD has no small business development mandate. The DA will also submit a Promotion of Access to Information Act (PAIA) application to obtain the MOU.

A senior official said that the Minister and Mchunu have “committed the country to a deal that wasn’t vetted by the legal service, National Treasury or the South African Revenue Service (SARS)”.

The newest scandal comes mere weeks after it was revealed that Minister Zulu tried pulling strings to secure Mchunu the job as DG – a ploy that was ultimately derailed when objections from Deputy Minister of Social Development, Hendrietta Bogopane-Zulu, and others forced the Department of Public Service and Administration to withdraw the recommendation from Cabinet.

While Minister Zulu has never been particularly interested in fulfilling her mandate to serve South Africa’s poorest and most vulnerable people, her newest schemes with Mchunu are particularly brazen. The DA will do everything in our power to ensure that they’re stopped in their tracks and held accountable.

Issued by Bridget Masango, DA Shadow Minister of Social Development, 5 September 2023