By: Sello Theletsane
Controversial Malawian businessman Simbi Phiri has been accused of unethical business conduct, including influence-buying by befriending prominent politicians in order to secure lucrative contracts in government.
Among those with whom the businessman has a questionable relationship with, is former City of Tshwane executive mayor and current Gauteng Democratic Alliance (DA) leader Solly Msimanga, who, during his tenure as executive mayor of Tshwane companies linked to Phiri were awarded multiple lucrative contracts.
Africa News Global can exclusively reveal that shortly after being appointed Tshwane mayor in 2016, Msimanga was invited to an all-expenses-paid trip to Malawi where he was a guest of honour at the wedding of Phiri’s son, Ashan Phiri. Msimanga was a few months later a guest of honour at the launch of the headquarters of South Zambezi and Khato Civils, companies linked to Phiri in Samrand, Gauteng. It is this questionable relationship between the two, that many attribute the awarding of lucrative contracts to Phiri’s companies by the City of Tshwane during Msimanga’s tenure as executive mayor.
Phiri is not new to controversy. In one of the projects in Hammanskraal extension 10, north of Pretoria, a young boy drowned last year after falling into a trench that was left open by his company, Khato Civils. The City of Tshwane had appointed the construction company to install bulk water, sewer services, and internal water reticulation in the shack settlement. It was not the first time Khato Civils had been linked to the death of a child on its construction sites. In 2019 in Giyani, Limpopo, six-year-old Nsuku Mhlongo died after drowning in a trench that had been dug by Khato Civils.
In another controversy in 2019, construction workers in Hammanskraal claimed they felt robbed by their former employer, Khato Civils, which had scored some lucrative municipal contracts in Tshwane. Supposed to work for an open-ended time until the completion of projects, they said their contracts were suddenly terminated and they were replaced by another workforce. Ninety-four of them were dismissed with immediate effect in December 2019. This was despite their contracts stipulating that they would be given notice of termination.
Another controversy that Phiri and his companies were involved in is a multi-billion-rand contract to provide clean running water to 55 villages in the Mopani District Municipality. In August 2014, the Lepelle Northern Water board appointed LTE, which didn’t have the capacity to carry out either the engineering or the construction, ceded all the contracts to Khato Civils and South Zambezi. Khato Civils abandoned the Giyani project in 2019.
The Giyani bulk water project was meant to provide clean running water into taps of 55 villages in Giyani in Mopani district of Limpopo by building a 320km pipeline that would access water from the Nandoni dam to connect with the villages. The matter is now the subject of an investigation by the Special Investigating Unit (SIU), which is moving to recover R4.1 billion. Both Phiri and Msimanga failed to respond to question sent to them by Africa News Global. Questions have also been sent to DA leader John Steenhuisen, whose response will be added to the story once it is received.
How is it that a Malawian received lucrative contacts worth billions, but South African”s can’t even get one million worth of contracts.???
[…] Also read: EXCLUSIVE-How controversial Malawian businessman “captured” DA’s Solly Msimanga […]