Digital Vibes: SIU gets green light to recoup looted money from Mkhize family, associates

While parliament this week cleared former health minister Zweli Mkhize of wrongdoing in the Digital Vibes scandal, the Special Investigating Unit (SIU) has successfully secured a joinder application to have all individuals and companies that benefitted from the scandal pay back the looted funds.

The SIU launched the application in 2021.

The companies listed in the application are: All Out Trading, and Tusokuhle Farming, both linked to Mkhize’s son Dedani Mkhize, Cedar Falls Properties which Mkhize’s wife May was the sole director, Sirela Trading managed by Mkhize’s associate Pretus Sokhela and Dedani’s wife Sithokozile Mkhize personally, through a company called Azwakele Trading and Projects.

The SIU seeks to recover R1.25m from Tusokuhle Farming, R1.09m from All Out Trading, R1.8m from Cedar Falls Properties, R586,000 from Sirela Trading, and R650,000 from Sithokozile, received from Mateta Projects in 2020 for the shopfitting of her nail salon in Pietermaritzburg.

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The SIU had found that Mateta Projects was used to distribute the funds to the companies, having disbursed more than R10m it received from Digital Vibes.

The sole director of Mateta Projects was Welcome Mthethwa, who is married to Makhosazana Mthethwa, a former employee at Luthuli House.

In the judgment on Wednesday, Judge Lebogang Modiba said Mateta Projects paid money in a series of transactions, allegedly for the benefit of Digital Vibes’ Tahera Mather’s son and members of the Mkhize family and their associated companies.

“The payments Mateta Projects made to members of the family of former Minister Mkhize and their associated companies are common cause between the parties.

“Whether the repayment by Mateta Projects absolves the proposed respondents from liability, the payments were made in the ordinary course of business, and/or whether the proposed respondents are innocent of the flow of funds between the Department of Health and Digital Vibes stand to be determined in the review application once the issues between the parties are fully ventilated.”

The respondents, said Modiba, presented “inconsistent versions”.

“Although the proposed respondents contend that Mr. Mthethwa has repaid the amount Mateta Projects
received from Digital Vibes, Mr. Mthethwa has not accepted liability for the amount Mateta Projects received from Digital Vibes.

“Mr. Mthethwa is adamant that Mateta Projects received the amount for the work he has done on the Covid-19 contract and has reserved the right to claim fees due for the alleged work.”

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She added that there was no basis to immediately conclude that Mthethwa has repaid the more than R10m that Mateta Projects received from Digital Vibes.

Digital Vibes was contracted by the Department of Health to handle communication on National Health Insurance (NHI) and later on the Covid-19 pandemic while Mkhize was at the helm.

The SIU wants to recoup the R150m from the companies that Mkhize’s family and their associates used to launder monies that flowed from Digital Vibes.

President Cyril Ramaphosa placed Mkhize on special leave after being implicated in the awarding of the contract to Digital Vibes, owned by Mkhize’s close associates Mather and Naadirha Mitha.

Mkhize has since launched court challenges against the SIU, seeking to have the damning report set aside.

Modiba’s judgment comes after Parliament’s Joint Committee on Ethics and Members’ Interests cleared Mkhize in the corruption scandal.

The complaint was first laid by the Democratic Alliance’s (DA’s) deputy chief whip Siviwe Gwarube after the SIU found that Mkhize benefitted from R6,720 in repairs to his home.

“On the analysis of the documentary evidence, the committee considered the fact that Mr Thamsanqa Mkhize was the person liaising with 4Way Maintenance and the person who was in charge of making the payments in respect of invoices. In this regard, the committee concluded that you did not breach the code.”

“In the light of the above, the complaint filed in this matter is accordingly closed,” ruled the ethics committee.

NOW READ: Zweli Mkhize cleared by Parliament in Digital Vibes scandal