The Special Investigating Unit (SIU) has been given court approval to introduce new evidence allegedly exposing how former Health Minister Dr Zweli Mkhize, his family and associates benefited from the R150m Digital Vibes scandal.
The SIU says the latest “crucial” evidence will help prove how public funds were allegedly laundered through sham business transactions, with at least R11.5m disguised as cattle purchases, reports IOL.
Investigators say the money ultimately benefited Mkhize’s wife, son and business affiliates, with SIU spokesperson Kaizer Kganyago saying the new evidence exposes money laundering without services provided.
The Digital Vibes contract was originally intended to support public awareness campaigns for the National Health Insurance (NHI) and later Covid-19 communications.
But the SIU alleges the procurement process was irregular, and the contract became a vehicle for systemic corruption and personal enrichment.
Funds were allegedly channelled through a network of companies and individuals with close ties to Mkhize and his family.
SIU lead investigator Vhyladhum Reddy said it was prompted to investigate the cattle transactions contained in affidavits by Mkhize’s wife May, their son Dedani and business associate Protus Sokhela, and that the evidence made it clear the Mkhize family “unduly benefitted from, and participated in concealing, funds derived from unlawful transactions” between the national Department of Health and Digital Vibes.
He said the SIU also tracked allegations that payments to Dedani and a Welcome Mthethwa – whose company Mateta Projects reportedly received funds from Digital Vibes – arose from the purchase and sale of cattle, reports News24.
The SIU pointed to the claim that Dedani sold cattle for more than R650 000 to enable his wife to buy a Pietermaritzburg nail salon, and said the more than R11.5m Mthethwa paid to various parties was not from legitimate cattle sales, but from the R150m tender.
Reddy’s affidavit combs through a complex web of cattle transactions, both private sales and auctions, which seemingly included a third party buying cattle on behalf of Mateta Projects, which the SIU argues was more likely for Sokhela and his company, Sirela.
The SIU further claimed that evidence revealed the cattle bought were not delivered to Mathethwa but to Sokhela and Dedani.
The SIU said payments benefitting the Mkhize family did not stop at cattle purchases, referencing a farm that produced sugarcane in Pietermaritzburg, owned by a company called Cedar Falls and linked to May Mkhize.
According to Sokhela, he and Dedani acquired the company from May Mkhize, which the SIU disputes, asserting that payments to Ithala Bank for a loan by Cedar Falls came from the funds paid to Sokhela’s company, Sirela, from Mateta Projects, which originally emanated from Digital Vibes.
The SIU said the payments directly benefitted Mkhize and his wife, and that the ostensible cattle transactions allegedly used to justify payments had been shown to be fiction.
“There is no evidence that Mateta Projects/Welcome Mthwethwa purchased a single head of cattle.”
Mkhize, who is the chairperson of Parliament’s Portfolio Committee on Co-operative Governance & Traditional Affairs, has previously denied any wrongdoing.
Sokhela and Mthwethwa have also distanced themselves from the Digital Vibes controversy.
While some implicated companies have voluntarily repaid portions of the funds, the Special Tribunal emphasised that repayment does not absolve liability under the Prevention of Organised Crime Act.
The tribunal reaffirmed that unlawful financial gains – even when partially returned – remain prosecutable offences under anti-corruption laws.
See more from MedicalBrief archives:
Digital Vibes won R150m tender despite bid errors, court hears
Digital Vibes case postponed as accused seeks pension to pay lawyers
Demotions ‘a slap on the wrist’ for top officials implicated in Digital Vibes scandal