Former Nkandla architect ordered to repay R147m over unlawful upgrades

Nkandla

Johannesburg – Former Nkandla project architect and principal agent Minenhle Makhanya has been ordered by the Special Tribunal to repay R147,269,444.06 to the National Treasury after being found responsible for unlawful and negligent conduct linked to the controversial upgrades at former president Jacob Zuma’s private residence.

The judgment, secured by the Special Investigating Unit (SIU), found that Makhanya’s appointment by the Department of Public Works was unlawful because it was not preceded by an open tender or competitive bidding process. The Tribunal also found there was no emergency or other lawful basis to bypass procurement requirements.

The Tribunal further found that Makhanya was not registered as a supplier with the department when he was appointed as principal agent in August 2009.

The project was initially approved at R27.89 million following security assessments by the South African Police Service and the South African National Defence Force. However, under Makhanya’s oversight, the cost escalated to R216.01 million.

The SIU said Makhanya authorised and oversaw works that went beyond the security requirements identified by the police and military.

These included tunnels with an exit and three lifts, 20 additional accommodation units for security personnel, a laundry, visitors’ lounge, basement and VIP parking, a fire pool, relocation of households, internal roads, air-conditioning and extensive landscaping.

The Tribunal found that these works, which amounted to about R68.5 million, were not required by the security assessments. It also found that Makhanya authorised and certified payments for work that was either not required, not properly accounted for or above market-related rates.

The Tribunal also found that Makhanya failed to obtain the necessary written approvals for project variations and over-designs and breached several statutory, professional and contractual obligations.

Judge K Pillay acknowledged that Makhanya was not the only person involved in the escalation of the Nkandla project but said he nevertheless had a professional responsibility to protect the state from wasteful expenditure.

“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.”

The judge added:

“However, as architect and principal agent, he bore the responsibility to ensure that the second defendant (DPW) did not incur fruitless and wasteful expenditure.”

The Tribunal declared Makhanya’s appointment contract with the Department of Public Works invalid and of no force and effect.

He was also ordered to pay interest on the R147.27 million from the date of judgment until the amount is paid in full, as well as the legal costs of the proceedings, including the costs of two counsel.

The SIU’s original claim was reduced by R7.8 million after taking into account money previously repaid by Zuma as a contribution towards non-security-related upgrades.

The SIU said the judgment forms part of its efforts to recover public funds lost through unlawful conduct and strengthen accountability across the public sector.

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