R10m for just holding meetings

SUSPENDED South African Social Security Agency (Sassa) boss Fezile Makiwane allegedly made irregular payments of R10 million to a company "for just holding meetings".

Makiwane was put on special leave in July in connection with alleged irregular transactions, and Social Development Minister Edna Molewa ordered a probe by the Special Investigating Unit.

The SIU recently handed over the report of its findings to Molewa.

A source close to the probe said the report revealed that R10m was paid to a company contracted by the agency to locate office space for Sassa throughout the country.

However, the amount covered only the costs of meetings that the agency had with suppliers.

"There are 11 transactions amounting to R10 million that was paid for just holding meetings. The money did not include the actual work (of the said company) to find office space (for Sassa)," the source said.

In one instance, the agency paid R900 000 for a single meeting that was held in one of the provinces, the source said.

The source added that the SIU's findings included the conclusion that prices charged for services were inflated.

While Sassa could have held meetings with suppliers at smaller venues, big marquees and chairs were hired at a high cost, the source said of the unit's findings.

The Social Development Department said in a statement earlier this week that Molewa had given Makiwane a copy of the report to study so that he could respond to the SIU's findings.

The minister said Makiwane would have until next Friday to file his response, after which she would decide her next course of action.

Molewa's spokeswoman, Zanele Mngadi, declined to comment when asked about the probe focusing on the R10m.

Mngadi said the minister would not say anything more than she had said in her statement.

Sassa spokesman Paseka Letsatsi also declined to comment, referring enquiries to Mngadi. Makiwane could not be reached for comment.

JZ's R2,5m bash funded with RDP cash

Other allegations that Makiwane has faced include the claim that she personally approved the transfer of a total of R4.3m - in separate transactions - to Durban businessman Mabheleni Ntuli for events at President Jacob Zuma's village at Nkandla, KwaZulu-Natal.

The first transfer was of R2.5m of RDP-designated funds and was used for celebrations at Zuma's traditional home in December last year.

When this allegation was made, the Democratic Alliance called for Makiwane's resignation.

The second transfer was for R1.8m - also raised by Ntuli in a similar way - again from an RDP-designated fund, and again approved personally by Makiwane.

The allegation is that the money was then apparently used to buy food parcels that were distributed to residents of Zuma's hometown.

When these allegations were first made, it triggered criticism from the DA, who said: "Again, this is money designated for social development that has instead been abused for the purposes of ANC patronage.

"Makiwane's actions are quite extraordinary and completely unacceptable.

"It beggars belief that money that was designated to be spent on social development projects, such as paying for chairs, buildings, toilets, generators and wheel- chairs required at social grant paypoints, can be diverted into the funds of a party for the ANC president.

"It is even more astonishing that it took Sassa only three days to release the money to Mabheleni Ntuli, the Durban-based businessman, who apparently then used the funds on the party."