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It has emerged that the Minister of Labour, Mildred Oliphant, reappointed former Nedlec Execuitve Director Herbert Mkhize as her special advisor a year and a half after she was made aware of an independent forensic report finding him guilty of defrauding Nedlac to the value of more than R1 million.

A Nedlac Audit Committee-initiated independent forensic report found that Mkhize, and then Chief Financial Officer of Nedlac, Umesh Dulabh, fraudulently and illegally enriched themselves to the value of almost R2 million using Nedlac funds, including unauthorised trips for the director’s wife, clothing from the Ferrari shop,  nappies, female cosmetics, car tyres for private vehicles, sporting equipment, electronic devices, home appliances, general groceries and alcohol. (See expenditure lists here)

The report recommends both criminal and civil action against Mkhize.

While the Minister has had this report in her possession since 1 November 2012, she saw it fit to re-hire Mkhize as her special advisor following her own reappointment as Labour Minister by the President after the 2014 general elections.

It is simply unacceptable that the taxpayer continues to pay a massive salary to a person who has been found to have committed such a breach of trust and probable criminal action.

On request by the DA, Parliament’s Labour Committee has collectively agreed to call the Director-General of Labour, Thobile Lamati, before committee to fully brief parliament on the steps that have been taken in this matter. We want answers to the following questions:

•     Have civil proceedings against Mr. Mkhize been instituted?
•     Have criminal proceedings against Mr. Mkhize been instituted?
•     Has he paid back any of the money spent by himself and Mr. Dulabh?
•     Has he paid back the R147 000 in interest free loans, which the report finds to be in contravention of the Income Tax Act?
•     What internal disciplinary action has been taken by the Department of Labour or the Minister with regard to this illegal use of public funds?

My previous call for the immediate suspension of Mr Mkhize was blatantly ignored by the Minister, and I will once again write to Minister Oliphant demanding Mr. Mkhize be suspended pending the outcome of this committee meeting.

The DA will continue to ensure that those who have stolen public money are held to the highest account.

Issued by DA