Africa-Press – South-Africa. The Special Investigating Unit (SIU) has been painted as “overzealous” in its pursuit to recover funds connected to Digital Vibes from companies linked to former health minister Zweli Mkhize’s family.
On Tuesday, the SIU argued strongly before Judge Lebogang Modiba at the Special Tribunal on why the unit should be allowed to recover costs from six companies who had allegedly received payments from Digital Vibes.
The unit had lodged a review application to have the R150 million Digital Vibes contract with the Department of Health set aside.
Tuesday’s proceedings were part of a separate application that sought to join the six respondents in the cost recovery aspect of the Digital Vibes review court matter.
For the SIU, advocate Barry Roux argued that the six companies had to be held liable for benefitting from proceeds initially paid from Digital Vibes’ bank accounts to their bank accounts.
These companies were alleged to have further transferred the initial payments to entities linked to Mkhize’s family.
‘Money-laundering scheme’
Roux described the series of payments as a money-laundering scheme intended to benefit the Mkhize family and conceal their liability.
The companies included All Out Trading (Pty), Tusokuhle Farming, Azwakele Trading and Projects (Pty) Ltd and/or Sithokozile Khaliphile Mkhize, Cedar Falls Properties, Mateta Projects and Sirela Trading.
Cedar Falls Properties had May Mkhize, the ex-minister’s wife, listed as its sole director.
While Tusokuhle Farming was linked to Dedani Mkhize – the couple’s son.
The main characters in the money-laundering enterprise were allegedly Mateta Projects which received initial payments from Digital Vibes.
Those proceeds were later paid over to Sirela Trading, a company linked to Protus Sokhela – an associate of the Mkhize family.
Proceeds from Sirela were later distributed to entities related to the Mkhize family.
Opponents to application label it as “weak”
The legal team for the respondents opposed the SIU’s application.
Advocate Gregory Harper for Sirela Trading and Tusokuhle Farming said the SIU had to be reined in for being overzealous in its approach.
He said his clients had no connection to the original review application, and as such, the SIU’s mission to recover funds from his clients held no merit.
Harper said:
“The fact is one must still examine the basics. My clients have got nothing to do with the impunity of the review application of the contract. It has nothing to do with them. What has to do with my clients is the money judgments sought against them, which are bundled into the review application. The SIU has not made out a case against my clients,” Harper argued.
He said the SIU’s attempt to link the proceeds of money paid over by Digital Vibes to his clients was hopeless.
“The money was paid from the government’s bank to Digital Vibes’ bank, and it then became mixed up in the bank’s monies and lost its identity. Then the money was apparently paid from Digital Vibes’ bank to Mthethwa’s bank and then to Sirela. It is a hopeless case to try and trace that money and say that the money that ended at Sirela and Tusokuhle was stolen money. It was not. It was another bank’s money, and that money had long lost its identity. That should be the end of the matter,” Harper said.
Advocate Reg Willis for Mdu Mthethwa of Mateta Projects described the SIU’s application as stillborn and should be dismissed with costs.
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He also argued that the SIU had failed to make a case against Mthethwa in the matter justifying a cost recovery application.
Similar arguments were made by Cedar Falls Properties, who argued that the SIU was attempting to cast a wide net, hoping that something would stick.
Roux said the legal arguments by the respondents were weak.
He told the court that the SIU had a strong case proving how money was transferred from Digital Vibes to these accused entities.
Modiba reserved judgment in the matter.
Digital Vibes was linked to the former minister’s associates Tahera Mather and Naadhira Mitha.
Digital Vibes was initially awarded a media campaign contract with the health department for the National Health Insurance.
The contract was unlawfully expanded under Mkihze’s pressure, the SIU said in its report.
Mkhize had since applied to the Gauteng High Court to review the SIU report and findings against him.
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