One man has been handed a R147 million bill for Nkandla
PRETORIA — The architect who oversaw the controversial security upgrades at former president Jacob Zuma’s Nkandla home has been ordered to personally pay more than R147 million to National Treasury after the Special Tribunal found his appointment and conduct unlawful.
Minenhle Makhanya, who served as architect and principal agent on the project, was ordered to pay R147,269,444.06 for losses suffered by the Department of Public Works during upgrades that eventually cost more than R216 million.
The ruling brings a major financial consequence to a scandal that dominated South African politics for years and became synonymous with questions about public spending during Zuma’s presidency.
The Nkandla project was initially approved at R27.89 million in August 2009. According to the Special Investigating Unit, costs subsequently escalated to R216.01 million after works extending beyond security measures identified by the South African Police Service and South African National Defence Force were authorised.
These included tunnels and three lifts, 20 additional accommodation units for security personnel, a laundry, visitors’ lounge, basement parking, VIP parking, the controversial fire pool, internal roads, air conditioning and extensive landscaping. The additional works identified by the SIU amounted to about R68.5 million.
The Tribunal found that Makhanya’s original appointment in August 2009 had not gone through an open tender or competitive bidding process. There was also no emergency or other lawful justification for bypassing procurement requirements, and Makhanya was not listed as a supplier with Public Works.
Investigators found that Makhanya subsequently authorised and certified payments for structures and services that were not required by the original security assessments. He also failed to obtain written approvals for variations, certified payments above market related costs and approved payments for work that had either not been performed or was not properly accounted for, according to the SIU.
The Tribunal rejected Makhanya’s argument that he had acted within his authority while implementing decisions and instructions from the police and defence force.
However, the judgment also acknowledged that responsibility for what happened at Nkandla extended beyond one person.
Judge K. Pillay said it was “regrettable” that Makhanya stood alone in the SIU action because he “clearly did not act alone” as the cost of the project ballooned. The Tribunal nevertheless found that his position as architect and principal agent placed a responsibility on him to protect Public Works from fruitless and wasteful expenditure.
The R147.27 million order should therefore not be interpreted as money Makhanya personally received from the project. It represents losses for which the Tribunal has held him liable.
The SIU also reduced its total claim by R7.8 million to account for money Zuma previously repaid towards non security related upgrades at Nkandla. Makhanya was additionally ordered to pay the costs of the proceedings, including the costs of two counsel.
More than a decade after Nkandla became one of South Africa’s defining public spending controversies, the judgment shifts attention from political accountability to the personal financial consequences for one of the professionals responsible for implementing the project.
The SIU says any evidence of criminal conduct uncovered during its investigation will be referred to the National Prosecuting Authority.
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