MEC admits receiving R1 million in Amigos case.
|||Mike Mabuyakhulu, KZN Economic Development MEC and one of the people at the centre of the “Amigos” racketeering trial, has admitted that he received R1 million in cash from the province’s head of treasury, Sipho Shabalala.
The money was from Cape Town businessman Gaston Savoi who, along with Mabuyakhulu, Shabalala and 18 others, is facing a range of corruption charges in a scam alleged to have cost taxpayers R144 million.
Mabuyakhulu’s admission is contained in an affidavit seen by the Tribune this week, which is an attempt by the embattled MEC to have charges against him dropped.
It emerged this week in a report in The Mercury that authorities were contemplating dropping charges against Mabuyakhulu and provincial legislature speaker Peggy Nkonyeni.
The Mercury said that Richard Mrwebi, recently appointed by President Jacob Zuma to head the National Prosecuting Authority’s commercial crime unit, was reviewing the decision to prosecute the two high-profile ANC politicians.
The case has already been set down for trial later this year before retired judge Ron McLaren, and the accused have been given the 112 000-page forensic audit to prepare their defences.
Mabuyakhulu was ANC treasurer at the time Shabalala garnered the ANC “donation” from Savoi after the province made an emergency purchase of R42 million worth of water purification systems from Savoi’s Intaka Holdings in 2005. Some of the plants still haven’t been put to use.
On Saturday the Tribune tried to clarify the cash handover from Shabalala to Mabuyakhulu. Mabuyakhulu’s seven page affidavit, dated October 19, 2010, is vague on the details.
“To the best of my recollection I received the funds from Shabalala on or about 11 June 2008.” Mabuyakhulu said he had not given Shabalala an invoice.
He said that during his tenure as treasurer, he was responsible for fundraising. Funds were required for party administration and for the ANC provincial conference in June, 2008.
He said that two months before the conference, Shabalala informed him that he had raised funds and wished to pay the funds to the ANC.
Mabuyakhulu said it was not ANC policy to disclose where private donations came from.
“I do not know how or where Shabalala raised funds.” Mabuyakhulu said the money, received in cash, was used “in my capacity as treasurer”.
The Tribune first broke the story of how Shabalala received the payment from Savoi after it was allegedly laundered through the trust account of Durban advocate Sandile Kuboni. At the time, Savoi said Intaka received the order for the water purification plants in 2005, and after the company received payment from the government it paid the ANC donation.
Mabuyakhulu was replaced by Nkonyeni as treasurer after the June 2008 conference.
In the affidavit he said he didn’t know if the R1 million donation was included in the treasurer’s report “or in a globular amount of R7 227 707” listing donations in the income statement.
The affidavit also throws some light on how the Intaka issue drew in Premier Zweli Mkhize, the then MEC for Finance and Economic Development.
Mabuyakhulu claims he received a letter from Mkhize in 2005, in which he proposed that a task team be formed, comprising heads of departments to investigate the purchase of water plants to provide better access to water for rural communities.
Mabuyakhulu said he had limited knowledge of Intaka Investments at the time.
He said his portfolio then was local government and that finance and provincial economic development fell under Mkhize.
Mabuyakhulu is believed to be unhappy that his affidavit was ignored by Hawks investigators.
The DA said this week attempts to have the charges dropped against Mabuyakhulu and Nkonyeni would be “grossly inappropriate”.
“It is inconceivable that these two individuals remain in high office, particularly when all of the other accused have either retired, resigned or been dismissed,” said DA leader in KwaZulu-Natal Sizwe Mchunu.
Mabuyakhulu, Nkonyeni, Savoi, Shabalala and the other accused have been charged with racketeering, with the final indictment alleging they conspired to commit corruption, fraud and money laundering with a potential cost to the provincial government of about R144 million. - Sunday Tribune