Former health minister Zweli Mkhize is making headlines again and it’s for all the wrong reasons. Mkhize is featured in a new report where he is said to have scored a luxury property thanks to a R1.37 billion Public Investment Corporation (PIC) deal that saw the Unemployment Insurance Fund (UIF), which supplied the money, lose a staggering R1.8 billion.
Scorpio reports that businessman Lawrence Mulaudzi received a R47.5 million advisory fee off of the R1.37 billion investment by the UIF into Bright Glacier Trading. Mulaudzi helped facilitate the deal and one day after receiving the money his company paid R5.9 million to transfer attorneys for a townhouse purchased by Dr Zweli Mkhize’s ZLM trust.
But according to the UIF’s latest annual report the R1.37 billion investment along with an earlier investment of R406 million into one of Mulaudzi’s entities, Kefolile Consumer Brands, have both been effectively wiped out.
To further understand the entirety of the mess, read the full article here.
But as we well know this is not the first time Mkhize has found himself in a difficult spot, does anyone remember Digital Vibes? Mkhize ultimately fell on his sword last year and resigned his cabinet post when it was revealed that he allowed a R150 million tender to be granted to Digital Vibes (for subscribers), failing in his oversight duties.
Digital Vibes was originally contracted by the department of health to work on the National Health Insurance Campaign in 2019.
It’s reported that Mkhize allegedly pressured department officials to appoint Digital Vibes, owned by his close associates, Tahera Mather and Naadhira Mitha, during the tender process.
The Special Investigating Unit (SIU) listed 20 people who received around R90 million from the R150 million contract, including Mkhize’s son Dedani, who received R3.8 million from the controversial contract.
It has been a steep and steady fall from grace for Mkhize, a former ANC treasury-general who had his own presidential ambitions but surely won’t be vying for the top spot anymore?
But Mkhize still has his sights set on a re-emergence into the ANC top six when the elective conference rolls around at the end of the year and wants the SIU report to be set aside by the courts.
He wants the court to ask that the SIU produce a Cabinet resolution that it says proves that he broke the law by awarding the NHI communications contract to Digital Vibes when the work should have been done by the Government Communication and Information System (GCIS).
It is the second time that Mkhize has gone to court after his first application did not succeed.
Meanwhile, the EFF levelled criticism at Cyril Ramaphosa in yesterday’s debate on last week’s State of the Nation Address (SONA). The red beret-wearing party said Ramaphosa’s economic plan would lead to the privatisation of state-owned enterprises and accused the president of undermining South Africa’s economic sovereignty by moving forward with his plan.
EFF MP Omphile Maotwe said, “You did not only abandon your obligation to create jobs, but you are also on a dangerous path to decapitating state-owned entities. You have again committed to continuing with this plan that does not have any practical, believable and implementable basis besides looting state-strategic assets that are meant to create jobs for our people.”
Ramaphosa will respond to the debate of his SONA today.
In the markets, with some positive news from Eastern Europe following the withdrawal of some Russian troops from the Ukrainian border, tensions eased slightly. “We saw some improved risk sentiment and a marginally softer Dollar. The rand firmed to just below the R15.00 level but ended the day flat at R15.11 and remains entrenched in the R14.95/R15.25 range for now,” comments TreasuryONE.
The local unit is currently trading at R15.08/$ and is the top performer among emerging market currencies.
“Look out for our local CPI numbers later today, with economists looking for a 5.7% YoY number for January versus December’s 5.9% print,” says TreasuryONE.
Gold and platinum are trading relatively unchanged this morning at $1,853 and $1,026, respectively, while palladium is up over 2.0% at $2,296. A barrel of Brent crude is currently trading at $93.28.
Here’s a roundup of the world’s top and most interesting headlines:
SA Business
South Africa could announce an ‘alternative’ VAT hike next week: experts – BusinessTech
The List, Part Two: The people and businesses the State Capture Commission recommends for prosecution by the NPA – Daily Maverick
People buying Ferraris and Lamborghinis are not benefitting South Africa: deputy finance minister – BusinessTech
Global Business
Biden cranks up volume on Ukraine with public pressure on Putin – Bloomberg/DM
Energy crunch: How the UK could play crucial role if Russia turned off gas taps to Europe – Sky News
From Credit Suisse to Goldman Sachs, investment banks say it’s time to buy Chinese stocks – CNBC
Markets
Aluminum hovers near 13-year high as trade weighs Ukraine crisis – Bloomberg/DM
Mainland traders lift Tencent, Meituan stakes to 7-month highs – Bloomberg
Dow soars 422 points as investors eye possible easing of Ukraine-Russia tensions – Business Insider
Tech
Sites of Ukraine defence ministry, state banks under cyberattack – African Insider
Buffett bought $1-billion in Activision shares before Microsoft deal – TechCentral
Meta agrees to pay $90 million to settle a lawsuit alleging Facebook kept tracking users after they logged off – Business Insider
Opinion/In-depth
Beyond the pale: The noxious history of skin-lightening creams in South Africa still haunts us – Daily Maverick
Ukraine: the economic impact of tension with Russia is part of Putin’s long-term plan – The Conversation
Will oil derail the economy? – Biznews
Video
What it’s like riding the Cape Town Metrorail train – EWN
You’ve eaten insects before. You just didn’t know it. – NYT Opinion
Coinbase’s Super Bowl ad was so successful it crashed the app – Cover Media
Image: GCIS
