Zikalala slams ‘spurious’ allegations about R45m IDT lease deal, heads to Public Protector

Public Works and Infrastructure Deputy Minister Sihle Zikalala has denied any involvement in the appointment of Independent Development Trust (IDT) CEO Tebogo Malaka.

The IDT, an entity under the Department of Public Works and Infrastructure (DPWI), has recently been embroiled in controversy over procurement irregularities and questionable contracts worth hundreds of millions of rands.

It has now come to light that Zikalala and former IDT board chairperson Kwazi Mshengu allegedly intervened to prevent the National Treasury from conducting a forensic investigation into a R45 million lease agreement to shield Malaka.

Malaka was appointed as the permanent CEO of the IDT despite facing allegations of procurement irregularities.

Zikalala dismisses IDT interference claims

During a media briefing on Tuesday, Zikalala addressed the controversy and dismissed the “spurious” allegations against him, accusing investigative journalism organisation AmaBhungane of spreading “falsehoods”.

“I have noted with deep concern and extreme outrage, slanderous stories which appear to have been deliberately planted and arranged to defame and tarnish my image, disguised as concerns about issues of governance in the IDT,” he said.

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Zikalala said AmaBhungane had sent him questions regarding the CEO saga, but accused the organisation of twisting facts and misrepresenting information to fulfill its agenda in what he called a “passionate crusade” against him.

“I will not allow the persistent onslaught and smear which masquerades as a journalistic endeavour, sophisticated as it may appear to blackmail us.”

Watch the media briefing below:

Allegations already in public domain

Seeking to set the record straight, Zikalala highlighted that the allegations about the lease had already been public knowledge before his appointment as Public Works Minister in March 2023, and denied any involvement in Malaka’s appointment.

The recommendation to appoint Malaka, he said, had already been forwarded to Cabinet for final approval at the time.

“I put the process of the appointment of the CEO on hold due to, among other reasons, the need to give the board time to conduct investigations on allegations that were in the public domain.”

The deputy minister rejected suggestions that he interfered with investigations, asserting that he had, in fact, directed the IDT board to look into the matter within six months.

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However, according to Zikalala, the board became mired in internal conflicts.

“They fight over the approach to investigate [while] others contacted the Treasury to conduct an investigation and others deemed the process flawed.”

He said the dysfunction prompted him to write to the IDT board members in early October 2023, requesting explanations as to why they should not be fired for failing to fulfill their duties.

This led to the resignation of three members.

Following the appointment of a new board in November 2023, the Department of Public Works was requested to conduct a formal investigation, which was completed in March 2024.

Zikalala wants Public Protector to probe IDT allegations

Zikalala said that an internal audit report later recommended more in-depth investigations, which he then passed on to current Public Works and Infrastructure Minister Dean Macpherson.

“Once the minister was appointed, I gave a handover which amongst others outlined that there was a pending investigation in the IDT.”

He also clarified that there is no conclusive report against Malaka.

“There is no report or any concluded investigation by the board or any other body of the state against the appointment of the CEO that was before me as the minister then.”

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“Even the much talked about Treasury investigation, I have never seen its sight nor was informed of its conclusion. It remained a board matter and the board as I understand it kept fighting and turning against its own decisions,” Zikalala continued.

“The only available report was the one done by the department’s internal audit unit which recommended deeper investigations by the Auditor-General and the DPWI’s anti-corruption unit. All these processes arises from the actions I took.”

Zikalala said he intends to refer the matter to the Office of the Public Protector for a thorough investigation.

“This will assist so that the truth is exposed and we avoid narratives that are laced with innuendos and speculation.”

AmaBhungane details IDT investigation

AmaBhungane investigative journalist Azarrah Karrim told Newzroom Afrika on Tuesday that Tebogo Malaka allegedly approved the R45 million lease agreement without informing the IDT board.

She reportedly signed the lease with Moepathutse Property Investments, a company said to have political connections.

Karrim explained that internal documents indicated efforts by Zikalala and Mshengu to undermine the National Treasury’s investigation.

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“At that point, Treasury told AmaBhungane that they had a draft report ready and had started consultations with the Hawks, but what Zikalala has to answer for is his efforts after Mshengu passed on that investigation onto his department,” she said.

She emphasised that while Zikalala had provided AmaBhungane with the internal report, it did not constitute a forensic investigation.

“It was in fact, an assurance audit that only probed the procurement process followed for the lease

“It never proved allegations against Malaka or any other IDT official and that was a mandate that was approved by the board and Zikalala at the time,” she said.

IDT board appointments

In April, Macpherson reappointed two former board members alongside three new ones, all of whom had previously exited the IDT board during Zikalala’s tenure.

These appointments are currently being contested in court.

Macpherson is opposing the legal challenge, arguing that the appointments are temporary and set to expire on 4 July, after which a new IDT board will be established.

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