President Jacob Zuma's homestead at KwaNxamalala, Inkandla in KwaZulu-Natal.
Image: File Picture/ Bongiwe Mchunu
The Special Tribunal has ordered the architect behind the controversial security upgrades at former President Jacob Zuma's Nkandla residence to personally repay more than R147 million to the National Treasury after finding that his unlawful conduct caused significant financial losses to the State.
Minenhle Makhanya, who served as the architect and principal agent for the Nkandla project, was ordered to repay over R147 million.
The ruling follows a lengthy investigation by the Special Investigating Unit (SIU) into procurement irregularities and excessive expenditure linked to the project.
Judge K Pillay found that Makhanya's appointment by the Department of Public Works (DPW) did not comply with constitutional procurement requirements, the Public Finance Management Act (PFMA), or the department's Supply Chain Management Policy.
The tribunal ruled that both Makhanya's appointment and the contract concluded with the department were invalid and of no force and effect.
While acknowledging that Makhanya was not the only person involved in the controversial Nkandla project, the court held that, as architect and principal agent, he bore professional responsibility for ensuring that the department did not incur fruitless and wasteful expenditure.
Although the Tribunal held him personally liable, it acknowledged that he was not solely responsible for the cost overruns.
"It is regrettable that the first defendant (Makhanya) stands alone as the person against whom the Special Investigating Unit has launched action, as he clearly did not act alone in allowing the costs of the upgrade at Nkandla to balloon," Judge Pillay said.
The judge added that, as the architect and principal agent, Makhanya nevertheless bore the responsibility of ensuring that the Department of Public Works did not incur fruitless and wasteful expenditure.
The SIU investigation found that the cost of the project escalated dramatically after Makhanya allegedly authorised work that exceeded the security measures identified by the South African Police Service (SAPS) and the South African National Defence Force (SANDF).
The project's original approved budget of R27.89 million ultimately increased to more than R216 million.
Among the additional works authorised were tunnels with exits and lifts, 20 accommodation units for security personnel, a laundry facility, a visitors' lounge, basement parking for a clinic, VIP parking, a so-called fire pool, the relocation of households, internal roads, air-conditioning systems and extensive landscaping.
The tribunal found that many of these structures were not required by the official security assessments.
The SIU launched civil proceedings after being authorised by a presidential proclamation to investigate procurement relating to the Nkandla upgrades and recover any financial losses suffered by the state.
Evidence presented during the trial alleged that procurement processes were bypassed, competitive bidding was ignored and the project expanded far beyond what had been approved.
Witnesses from the SAPS testified that several structures eventually built at Nkandla, including a visitors' centre, roads, landscaping, a clinic, amphitheatre and livestock facilities were not requested as security measures by the police.
Special Tribunal orders Nkandla architect Minenhle Makhanya to repay R147 million
Image: Supplied
The tribunal ultimately ordered Makhanya to pay over R147 million to the National Treasury, representing financial losses linked to multiple claims pursued by the SIU.
The court also ordered him to pay interest on the amount from the date of judgment until payment, as well as the SIU's legal costs, including the costs of two counsel.
The DPW did not oppose the SIU's application.
The tribunal also declared Makhanya's contract with the DPW invalid and ordered him to pay the legal costs of the proceedings, including the costs of two counsel.
The SIU said it had reduced its original claim by R7.8 million after taking into account the amount previously repaid by former President Jacob Zuma for non-security-related upgrades. That amount will be deducted from the repayment ordered by the tribunal.
The unit said the judgment forms part of its broader efforts to recover public funds lost through corruption and strengthen accountability across the public sector.
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