About R33-million in MK Party funds may have been diverted into bank accounts operating outside the party’s authorised financial system, according to a forensic investigation that has recommended criminal referrals, civil recovery proceedings and disciplinary action.
Investigators could not establish where the money ultimately went because they lacked subpoena powers to obtain banking records. Some accounts could not be verified, while others appeared inactive.
“The fragmented banking structure made it extremely difficult to trace the movement of funds and created opportunities for unauthorised payments, duplicate transactions, hidden transfers and fund pooling,” the report states.
IBC Forensics and Recovery uncovered a wider collapse in financial controls across the MK Party’s national office and structures in Gauteng, KwaZulu-Natal, the Free State, Mpumalanga, Limpopo, the Eastern Cape and North West.
The report describes payroll manipulation, questionable procurement, fragmented banking, undocumented expenditure and possible misuse of public funds running into tens of millions of rand.
IBC concluded that the evidence justified referrals to the South African Police Service, civil proceedings to recover money and disciplinary action against officials responsible for financial oversight.
The findings place new pressure on the party’s leadership after its president Jacob Zuma appointed himself accounting officer and froze MK Party accounts on Thursday. Zuma’s intervention came three months after IBC director Tshepiso Kekana handed the report to MK Party general manager Zandile Mkhathini-Neer on April 21.
It also followed a warning sent to Zuma in May by suspended MK Party chief whip Mmabatho Mokoena-Zondi, who alleged looting, internal capture and threats to the party’s survival.
The forensic report provides a financial trail behind some of the warnings, although it does not conclusively identify the beneficiaries of the suspected diversion. The investigation found that the MK Party received at least R69.2-million from Parliament during the 2024-25 financial year after entering the National Assembly. The money included administrative and leadership allowances.
Provincial structures also received allocations from legislatures.
Investigators warned that some expenditure might not have complied with the purposes for which it was allocated.
“The findings highlight material control weaknesses, including fragmented banking structures, incomplete procurement documentation, inadequate segregation of duties and limited oversight over financial and asset-management processes,” Kekana said.
The most severe payroll findings emerged in KwaZulu-Natal, where investigators uncovered what they described as a parallel payment system that could have cost the party between R12.6-million and R17.4-million a year.
“The forensic team identified 55 confirmed duplicate employees and another nine probable duplicate employees, bringing the total number of affected staff to 64,” the report states.
Several property leases were identified as possible wasteful expenditure.
In Gauteng, two service providers came under scrutiny after allegedly rendering services without signed service-level agreements. In the Eastern Cape, R153 000 was paid to an unidentified beneficiary without documentation explaining the purpose of the payment.
The Free State structure was flagged for weak financial governance and poor record-keeping.
The report also identified transfers of R91 080, R50 000, R40 000 and R16 301 that investigators said required closer examination.
IBC’s investigators stopped short of making final criminal findings. They said only law-enforcement authorities had the powers to follow the money beyond the records it received.
MK Party spokesperson Sifiso Mahlangu and Kekana did not respond to Sunday World’s questions at the time of publication.
- Forensic investigation reveals possible diversion of about R33 million in MK Party funds into unauthorized bank accounts, with unclear fund destinations due to limited subpoena powers.
- The report highlights widespread financial control failures, including payroll manipulation, questionable procurement, and undocumented spending across multiple provincial structures.
- Investigators recommend criminal referrals to police, civil recovery actions, and disciplinary measures against responsible officials, with Zuma appointing himself accounting officer and freezing party accounts.
- Findings expose a parallel payroll system in KwaZulu-Natal involving 64 duplicate employees, costing the party up to R17.4 million annually, alongside other cases of wasteful expenditure and inadequate financial oversight.
- MK Party received R69.2 million from Parliament in 2024-25, but some spending may not have complied with allocated purposes; investigators urge law enforcement to pursue further inquiries.
About R33-million in MK Party funds may have been diverted into bank accounts operating outside the party’s authorised financial system, according to a forensic investigation that has recommended criminal referrals, civil recovery proceedings and disciplinary action.
Investigators could not establish where the money ultimately went because they lacked subpoena powers to obtain banking records. Some accounts could not be verified, while others appeared inactive.
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IBC Forensics and Recovery uncovered a wider collapse in financial controls across the MK Party’s national office and structures in
IBC concluded that the evidence justified referrals to the
It also followed a warning sent to Zuma in May by suspended MK Party chief whip
Provincial structures also received allocations from legislatures.
Investigators warned that some expenditure might not have complied with the purposes for which it was allocated.
“
“
Several property leases were identified as possible wasteful expenditure.
In
IBC’s investigators stopped short of making final criminal findings.
MK Party spokesperson Sifiso
