The Special Investigating Unit (SIU) has reiterated that all the proceeds of the Digital Vibes tender went to the family Zweli Mkhize, the former minister of health.
Represented by advocate Barry Roux, the SIU appeared before the Special Tribunal on Tuesday. In its submission, the crime busters claim that R1.8-million was paid towards the bond of May Mkhize, the wife of the former minister.
The SIU has brought the application to evaluate and set aside the R150-million contract between Digital Vibes and the Department of Health in a bid to recover the money linked to the contract.
“We want to make sure that all the R150-million that was spent irregularly should be taken back to the Department of Health,” said SIU spokesperson Kaizer Kganyago.
It further said it had found six other companies that received proceeds from Digital Vibes. These funds were later paid over to companies linked to the family of the former health minister.
Cedar Falls Properties is one such company the SIU seeks to add to its review application. Lawyer for Cedar Falls, a company owned by Mkhize’s wife, is arguing that they should have not been part of this application.
The SIU wants Cedar Falls to pay back R1 888 727.84. They say the amount is tainted because it is an unjustified benefit deriving from the proceeds of unlawful activities. John Pammenter, the legal representative of the company, is opposing the application saying the SIU does not have a cause of action and cannot show it has a case against the company.
Pammenter argued that Cedar Falls Properties cannot be held liable for repaying the funds the SIU seeks. Cedar Falls was credited with R1.8-million from the proceeds derived from Digital Vibes.
“We are not concerned with the merits of the matter. We did not go into the merits, because there is no entitlement to the joinder. Anything that deals with the merit would be struck out. The merits are not relevant,” he said.
“He [Mkhize] and son and others [are alleged to have] benefitted from this tender. What you won’t see in the papers is anything that points a finger to Cedar Falls and its director,” Pammenter added.
The other companies included in the application are: All Out Trading (Pty), Tusokuhle Farming, Azwakele Trading and Projects (Pty) Ltd, and/or Sithokozile Khaliphile Mkhize.
Cedar Falls siphoned from an R1.8-million payment made to Ithala Bank by Sirela Trading for a loan the company had acquired.
Mateta, run by a business associate linked to the Mkhize family, Mdu Mthethwa, had received an R6-million payment from Digital Vibes, the SIU said in court papers.
The unit also implicated Tusokuhle Farming which is owned by Mkhize’s son Dedani. However, its legal representative says there is no evidence that they received any of the siphoned money. Advocate Gregory Harpur argued that there is no link between Digital vibes and his client’s farm.
Judgment into this case has been reserved and will be announced once the judge is ready. Judge Lebogang Modiba has heard arguments from all the parties and wrapped up the proceedings for today.
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