Africa-Press – South-Africa. KwaZulu-Natal health MEC Nomagugu Simelane has denied allegations of impropriety and corruption in connection with her family business dealings with the provincial government.
This follows claims Simelane was implicated in the misuse of public funds and abuse of provincial entities by allegedly using her position in government to influence funding for a company linked to her family.
The MK Party said on Wednesday that Simelane’s family business, Kwazi-Gugu Investments CC, had received a controversial loan from Ithala Bank and allegedly duplicated payments from the KwaZulu-Natal department of agriculture over the years.
“The MK Party has been made aware Nomagugu Simelane’s stokvel family business, Kwazi-Gugu Investments CC, allegedly received duplicated payments totalling R1.42m from the KZN agriculture department and that in 2008 her family controversially acquired a farm through a loan from Ithala Bank, which at the time was under the leadership of Zweli Mkhize,” said spokesperson Nhlamulo Ndhlela.
“During the 2014-2019 period, Simelane chaired the KZN legislature’s agriculture portfolio committee, directly overseeing the very department that was channelling funds to her family. Even after she was moved to the health department, the financial benefits to her family allegedly continued, all while public clinics ran short of medication and hospitals deteriorated.
“This is not governance. This is nothing but a dynasty driven by corruption.”
Simelane has denied any wrongdoing or corruption, labelling the allegations as “false and malicious” claims that are part of a “well-calculated political smear campaign”.
Clarifying her connection to the company on Thursday, Simelane acknowledged it was founded by her parents but said she had resigned from it in 2004. She said she had no current business interests or benefits from its dealings.
She said the company received the loan from Ithala Bank in 2008.
“At that time I was a junior official in government, with no authority or influence over Ithala or any funding decisions,” she said.
She confirmed she chaired the agriculture and rural development portfolio committee in the KZN legislature between 2016 and 2019 but said the funding to the company predated her tenure.
“The funding in question relates to a period specifically between 2014 and 2016, when I was not the chair of the committee. I became chair of the portfolio committee after June 2016.”
She said she could not have influenced procurement processes due to the separation of powers in government as MPLs, including committee chairs, have no role in supply chain management or operational decisions of the department.
“These facts are easily verifiable, and their deliberate distortion shows that this is not an attempt to inform the public but rather a well-calculated political smear campaign.”
Simelane’s response follows a statement by provincial education MEC Sipho Hlomuka who was embroiled in similar allegations by the National School Nutrition Programme (NSNP) Service Providers’ Association and opposition parties.
Hlomuka is faced with allegations of political interference and personal enrichment in the controversial R2.9bn NSNP tender scandal. He is alleged to have interfered with the tender processes to benefit his allies in the ANC. He has since been directly linked, after it emerged a company registered to him in 2015 was among the beneficiaries of the tender issued by his department.
Hlomuka admitted he registered the company in 2015 when he was not part of government but claimed he relinquished his stake well before taking office and is not aware of its current activities.
“Indeed in 2015 I opened the company and had been participating in a number of government and private services but currently I don’t own any company. Let’s allow those who are owning the company (to respond) because I don’t want to be its spokesperson,” he said in an interview with Newzroom Afrika on Wednesday evening.
He said he was not aware if the company had been awarded the tender as he was yet to receive a report to that effect.
Meanwhile, the MK Party has called on both Simelane and Hlomuka to resign by July 26, failing which the party will file a formal removal request for them. It also called for the matters to be investigated further by the SIU and the public protector.
Finance MEC Francois Rodgers indicated he was open to investigating allegations of misconduct in the school nutrition programme and invited anyone with evidence to provide it so his office can investigate further.
Premier Thami Ntuli has also written to both MECs, asking them to explain themselves regarding the allegations against them.
Responding to the MK Party, Hlomuka said he would not resign unless Ntuli removed him.
Simelane said she was writing a detailed report on the allegations against her to submit to Ntuli and to the ANC, and was exploring legal action.
“I am exploring legal action to protect my name and integrity, and take to task those who deliberately and nefariously wish to impugn my good name.”
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