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Mkhize cleared in Digital Vibes scandal

───   06:54 Wed, 13 Apr 2022

Mkhize cleared in Digital Vibes scandal | News Article
Zweli Mkhize. File image

Parliament has cleared former health minister Zweli Mkhize of contravening the Ethics and Member’s Interest Code of Conduct in relation the controversial Digital Vibes’ R150 million contract.

In a letter dated 12 April, the Joint Committee on Ethics and Members’ Interests wrote to Mkhize informing him of its decision following deliberations on the matter.

A complaint was first laid by the Democratic Alliance’s (DA’s) deputy chief whip Siviwe Gwarube after the Special Investigating Unit (SIU), in its report, found that he benefitted from R6,720 in repairs to his home.

In March, News24 reported the Special Investigating Unit argued before the Special Tribunal that the Digital Vibes contract was a money-laundering scheme designed to siphon funds to former minister Zweli Mkhize's family while also shielding the family from accountability.

The SIU appeared before the Special Tribunal on Tuesday. The unit wanted the court to add six companies to the main Digital Vibes review application. 

The application sought to review and set aside the R150 million contract between Digital Vibes and the Department of Health. The unit also wanted to recover the funds linked to the contract. 

In its investigation into the contract, which led to Mkhize's resignation, the SIU said it had found six other companies that received proceeds from Digital Vibes.

These monies were later paid over to companies linked to the Mkhize family. 

ALSO READ: Digital Vibes was a 'money laundering scheme to benefit Mkhize family' - SIU

Cedar Falls Properties was one of the companies the SIU sought to add to its review application.

The other companies included: All Out Trading (Pty), Tusokuhle Farming, Azwakele Trading and Projects (Pty) Ltd, and/or Sithokozile Khaliphile Mkhize. 

Cedar Falls Properties' sole director is May Mkhize, the minister's wife. 

Cedar Falls benefitted from an R1.8 million payment made to Ithala Bank by Sirela Trading for a loan the company had acquired. 

Sirela Trading made the R1,888 million payment to the benefit of Cedar Falls.

Mateta Projects, after receiving money from Digital Vibes, transferred the money paid by Sirela, the SIU believed.

Mateta, a company run by Mdu Mthethwa, a business associate linked to the Mkhize family, had received a R6 million payment from Digital Vibes, the SIU said in court papers. 

In a media briefing on Thursday morning, the Ministry of Health responded to the findings and recommendations contained in the Special Investigating Unit report into Digital Vibes.

The SIU argued that the Mkhize family had received close to R10 million from the Digital Vibes contract. 

Advocate Barry Roux argued on behalf of the SIU that the six additional companies that had received proceeds from Digital Vibes should be liable to pay back the proceeds. 

Roux argued that the payments paid from Digital Vibes and eventually to entities linked to the Mkhize family could be described as a money-laundering scheme intended to benefit the family. 

The "siphoning scheme" in the series of payments made through middlemen companies was designed to shield the family from accountability. 

Cedar Falls had argued against the joinder application, saying the SIU had failed to prove it was liable in the Digital Vibes matter. 

Digital Vibes was appointed to lead the Department of Health's NHI media campaign. 

The Citizen

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