The former architect and principal agent responsible for the security upgrades at former President Jacob Zuma’s private residence in Nkandla, KwaZulu-Natal, Minenhle Makhanya, has been ordered to pay the National Treasury R147.269 million.
This follows a judgment secured by the Special Investigating Unit (SIU) at the Special Tribunal, ordering Makhanya to repay the money over losses incurred during the controversial security upgrades.
According to SIU spokesperson Selby Makgotho, the amount represents the financial loss suffered by the National Department of Public Works (DPW) as a result of unlawful conduct during the project.
“The judgment found that Makhanya’s appointment and subsequent conduct in the Nkandla upgrades were unlawful and resulted in significant financial loss to the State.
“The investigation into the Nkandla security upgrades was authorised in terms of Proclamation R59 of 2013, which directed the SIU to investigate allegations relating to the procurement of goods, works and services by DPW for the project in a manner that was not fair, equitable, transparent, competitive and cost-effective, as well as to recover any financial losses suffered by the State as a consequence of unlawful conduct,” said Makgotho.
Following Zuma’s election as President, he became entitled to state-funded security and protection for himself, his family and his private residence.
The South African Police Service (SAPS) and South African National Defence Force (SANDF) conducted security assessments at his home and identified additional security measures, including healthcare-related requirements and other installations and services required at the residence.
The DPW initially estimated the cost of the project at R27.893 million. However, the cost eventually ballooned to R216.010 million.
The Tribunal found that Makhanya’s appointment was not preceded by a competitive bidding or open tender process. It also found that there was no emergency or other lawful justification for bypassing the applicable procurement requirements and that Makhanya was not listed as a supplier with the DPW.
Among the structures and works Makhanya authorised were tunnels with an exit and three lifts, 20 additional accommodation units for SAPS and SANDF members, a laundry facility, a visitors’ lounge, basement parking for the clinic, VIP parking, a fire pool, the relocation of 4.5 households, internal roads, air-conditioning and extensive landscaping in the high-security area.
These works amounted to R68.506 million.
“The Tribunal found that Makhanya authorised and certified payments for structures and services that were not required by the security assessments,” said Makgotho.
Furthermore, the Tribunal ruled that Makhanya failed to obtain the necessary written approvals for variations and over-designs. He also certified payments above market-related costs and approved payments for work that had either not been performed or had not been properly accounted for.
The architect was also accused of authorising payments totalling R54.825 million to Moneymine Investments 310 CC and Bonelena Construction and Projects (Pty) Ltd, contrary to relevant provisions requiring him to safeguard the DPW’s interests.
Makhanya was also found to have breached several statutory, professional and contractual obligations, including those arising from the Architectural Profession Act, the applicable Code of Professional Conduct, the DPW Manual for Architects and the Joint Building Contracts Committee agreement.
The Tribunal rejected Makhanya’s defences, including his contention that he acted within the scope of his authority by implementing instructions and decisions from SAPS and SANDF.
Makhanya was also ordered to pay the costs of the legal proceedings, including the costs of two counsel.
However, the SIU accepted his submission to reduce the total claim by R7.8 million, which represented an amount repaid by Zuma as a contribution towards non-security-related upgrades.
