SIU report finds Mkhize’s son collected boxes of cash

CAPE TOWN, SOUTH AFRICA - APRIL 03: National Minister of Health Dr Zweli Mkhize and Western Cape Minister of Health Dr Nomafrench Mbombo visit the COVID-19 testing station to showcase the state of readiness for mass community testing at Khayelitsha District Hospital on April 03, 2020 in Cape Town, South Africa. According to media reports, as of April 2nd, the number of people infected in the Western Cape has reached 393. These include a second positive case in Khayelitsha as well as seventh case in Mitchells Plain. (Photo by Brenton Geach/Gallo Images via Getty Images)

By: Sello Theletsane

The Special Investigative Unit (SIU) report into the Digital Vibes contract has revealed that former Health Minister Zweli Mkhize’s son, Dedani, collected money in boxes.

The 114-page report made public on Wednesday detailed how Mkhize’s close ally, Tahera Mather, transferred R3.4 million to a Cash and Carry outlet and collected it as cash.

“Obtained evidence indicates that, at some stage, Ms. Mather contacted a witness and inquired if he knew of anyone that could give her cash in return for an EFT transfer that she would do for the said cash value. This person made inquiries from a Cash & Carry Wholesaler and was informed that this Cash & Carry Wholesaler would be in a position to assist Ms. Mather in this regard,” the report said.

“He obtained bank account details for purposes of the EFT transfers. According to this witness, transfers amounting to R 3 400 000 were made into the account of the Cash & Carry Wholesaler. The Cash & Carry Wholesaler would then arrange for this cash, which was contained either in boxes or plastic packets to be delivered to him.”

The witness further told the SIU that the money was fetched from him on different occasions by Mather, Naadhira Mitha, or the owner of Digital Vibes, Radha Hariram.

“Ms. Hariram stated that Ms. Mather had requested her to collect/receive boxes from a person. Ms. Mather further informed her that the boxes contained cash and that the Minister’s son would collect the boxes from her. In this regard, Ms. Hariram would collect the boxes from an identified person at his home in Stanger. Alternatively, this person would deliver the boxes to her at her home. Thereafter, the Minister’s son contacted Ms. Hariram on several occasions prior to the collection of the boxes,” the SIU found.

The Department of Health awarded digital Vibes a R150m contract for communications work. The deal had initially focused on the National Health Insurance scheme but was later expanded last year to include Covid-19 communications work for the department.

Digital Vibes is accused of inflating prices and doing work that the department could do internally. Mather and Mitha are Mkhize’s close allies who have been working with him for years.

The report also found that a house owned by Mkhize’s family trust had renovations financed by the company and that it also purchased a vehicle for Dedani. His company also received a payment of R300 000.

The report further stated that Dedani would collect the boxes/parcels at a petrol station where Hariram was employed.

“These collections occurred approximately six times. Ms. Hariram indicated that these collections appeared to be very ‘clandestine’. Besides two relatively minor payments from the MISA, Digital Vibes’ sole source of income during the period in which the R 300 000 was transferred to the Minister’s son’s company and the second-hand motor vehicle was purchased for R 160 000, was the money it had received from the NDOH,” the report found.

The health portfolio committee has welcomed the report of the Special Investigating Unit into Digital Vibes, saying it will ask Parliament to convene a meeting with Health Minister Joe Phaahla soon.
Chairperson of the committee Dr. Kenneth Jacobs said they back the report.

“We welcome the report and the committee is looking forward to its engagements with the Department of Health on the matter. The committee will, among other things, hear the department’s plan of action following the release of the report,” said Jacobs.

UDM leader Bantu Holomisa said action should be taken against those implicated in the report.
He said there were a number of recommendations that needed to be acted upon.
“It is becoming clearer by the day that very senior people have their hands in the cookie jar, and no matter which direction you look, up or down, left or right, senior government leaders are either embroiled in or tainted by corruption or alleged corruption,” said Holomisa.

To read the full report, click here.

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