Zuma’s R2.5m party funded with RDP cash
Businessman couldn’t pay college fees, but got money for ‘thank you’ bash from grant agency.
It took a Durban businessman just three days to raise R2.5-million via a government grant agency to throw a lavish party for ANC president Jacob Zuma late last year.
Mabheleni Ntuli’s Busile Investments (T/A Busile Communications) submitted a two-page letter on November 18 requesting the funds to “promote” the Jacob Zuma Education Trust and “to thank the community for their unwavering support for him”.
Two days later the head of the South African Social Security Agency (Sassa) gave the green light, and on day three the private company that was contracted to pay out social grants on its behalf, Cash Paymaster Services (CPS), released the money in four tranches to Busile Investments.
Barely a month later, Ntuli, via another of his companies, obtained R1.8-million in the same manner — this time in just four days.
Yesterday, the Jacob Zuma Education Trust and the president’s spokesman said they were unaware of Ntuli’s involvement in putting on the event at Nkandla on December 29.
Zuma and other high-profile dignitaries who attended the generous gathering were treated to entertainment by, among others, gospel singer Deborah Fraser.
The Sunday Times has documents which show that both payments were made from a dedicated infrastructure fund generally meant to pay for chairs, buildings, toilets and generators and wheelchairs required at social grant pay points.
CPS is contracted to plough about R700000 into the Reconstruction and Development Programme (RDP) fund for the four million grants that it pays out each month.
The second payment relates to R1.8-million to Super Size Investments which lists Ntuli as the sole director.
This followed a request to buy food parcels for the aged in KwaNxamalala — Zuma’s place of birth. The request to release such big amounts to Busile Investments at short notice raised alarm, especially since CPS did not consider this to be in line with the purpose of the fund.
Zuma's homestead of Nkandla
However, the company did not challenge Sassa about it.The Sunday Times has established that various payments made in this manner from the fund have been referred to the Special Investigations Unit.
Spokesman Trinesha Naidoo said the unit was “unable to comment at this stage”.
But Nanda Pillay of CPS’s pension and welfare division said: “We have never paid out such amounts since the fund was established.
“We were instructed to pay and the event did not fall in the scope of what the fund was established for.”
Serge Belemant, CEO of Nasdaq-listed Net 1 Applied Technologies, which owns CPS, added: “Some recent payments were not in line with what the fund was set up for. It was in no way in the interest of grant beneficiaries.”
Ntuli yesterday refused to answer questions regarding the payments, saying only: “The (money) is not from the RDP fund.”
When phoned and told that there were documents that showed otherwise, he said: “I’m not interested in that,” before abruptly ending the call.
Ntuli pledged R500000 to the Jacob Zuma trust weeks before pleading poverty in a Durban court last month, in a case brought by his 20-year old daughter over non-payment of her college fees.
It is unclear why the head of Sassa, Fezile Makiwane, (pic left) instructed CPS to make the payments from the infrastructure fund, notwithstanding that this was in violation of the rules of the fund.Makiwane’s office referred questions to a Sassa spokesman, Paseka Letsatsi, who said it was within the mandate of the state entity to “support community development”, adding “even if this was for a R2.5million party”.
Letsatsi declined to comment further.Halala Sibiya of the JZ Education Trust, said the event which took place at Nkandla was funded with sponsorships from businesses and private individuals and through various fund-raising dinners.
Sibiya added that the trustees where solely responsible for organising the event and that there was no events company involved.
WRITTEN PROOF: A copy of the letter in which the head of the South African Social Security Agency approved Mabheleni Ntuli’s request for R2.5-million
What Zuma’s office says
Halala Sibiya of the JZ Education Trust confirmed that the event happened in Nkandla on December 29, but said she was unaware of the involvement of Busile Investments. The event is usually funded by businesses and private individuals, Sibiya said.
- Yesterday President Jacob Zuma’s spokesman, Zizi Kodwa, said he was “surprised” by Ntuli’s involvement and added: “No we are not aware of this ... Not even of him (Ntuli) getting involved in the event and how he got the money.”
Comrades, please be generous ...
“It has become tradition that at the end of every year Cde Jacob Zuma hosts an event at Nkandla to not only promote his Education Trust but also to thank the community for their unwavering support for him ... The magnitude of the event prompts a request for sponsorship of the following items to ensure a successful event as has been the case in the past.”
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