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Company allegedly involved in channelling government money to Zuma Foundation scored more tenders


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Company allegedly involved in channelling government money to Zuma Foundation scored more tenders

Former President Jacob Zuma
Photo by Reuters
Former President Jacob Zuma

11th October 2022

By: News24Wire


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A company involved in financial flows which saw money from the Free State government end up in the Jacob Zuma Foundation's coffers, scored further contracts worth R76-million from the provincial administration.

Responding to a written parliamentary question from the Democratic Alliance (DA), Transport Minister Fikile Mbalula said according to the Free State Department of Police, Roads and Transport, Nexor 312 (PTY) LTD T/A VNA Consulting was appointed to train Community Development Project (CDP) road contractors in the Free State.


In the 2019-2020 financial year, VNA Consulting was paid R32 618 779.96, and in the 2020-2021 financial year, R44 998 775.98.

In the 2021-2022 financial year, "no expenditure was incurred for remuneration during 2021-2022 because no services were rendered due to the fact that the contract agreement lapsed on 31 March 2021", read Mbalula's response.


DA MP George Michalakis questioned the competence of the CDP road contractors in the Free State.

"Between the 2019-2020 and 2021-2022 financial years, [over] R695-million was paid to CDP contractors for sub-standard work on Free State roads, signed off by unqualified engineers employed by the provincial roads department," Michalakis said.

"This is another example of how the African National Congress and its cadres have captured the Free State at the expense of both the local economy and human lives on our provincial roads.

"The DA will compile all the evidence with the intention of referring it to law enforcement agencies for possible criminal investigation."

In the first part of its report, the commission referred to the evidence of a protected witness, Mr X, who testified about a scheme where he received money from the bank account of Thalente Myeni, son of former South African Airways (SAA) board chairperson and chairperson of the foundation, Dudu Myeni, even though he had no business relationship with the latter.

Dudu Myeni is considered to be close to corruption-accused former president Jacob Zuma and featured prominently in the State Capture Inquiry's report.

"The commission traced the money which Mr X had received from Mr Thalente Myeni's business, to a R2-million payment from VNA Consulting," reads the commission's report.

"VNA Consulting had been involved in a housing project in the Free State and had used some of the monies it received on that project to pay Mr Myeni's business, Premier Attraction."

The report continues, "So, the money appears to have originated from the Free State government's coffers, paid to VNA Consulting, then to Mr Myeni's business, Premier Attraction, then to Mr X's company's bank account, and then, on instruction by Ms Myeni, into the bank account of the foundation."

Questioned at the commission, Thalenthe Myeni contradicted Mr X and claimed his dealings with VNA Consulting and Mr X were legitimate.

"Mr Myeni's claims that these were all legitimate business dealings cannot be accepted as correct. He was extremely vague in his testimony about the work with VNA Consulting," reads the report.

"He could not recall the names of the people at VNA Consulting with whom they had worked. He said there was no method by which they would account for the work done and was unable to provide any details of the precise work that would earn his company R2-million.

"He could not recall the period over which the work was to be completed. Despite being summonsed by the commission to produce the document that would evidence this business relationship, Mr Myeni could not produce a single document."

The commission said it saw a number of these "alleged 'business dealings'" during its hearings and says that the absence of records and inadequate explanations for their absence "means that the relationships were probably not genuine ones".

In contrast to Thalente Myeni, the commission found Mr X a "candid and frank witness".

The report reads, "The evidence presented at the commission indicates that the dealings between VNA Consulting, Premier Attraction (Mr Thalente Myeni's business), Mr X's business, Ms Dudu Myeni, and the foundation were not arms-length business dealings."

"The flow of funds from the Free State to these various individuals and entities needs to be investigated further in order to establish whether there was a corrupt relationship between any of these parties in terms of which state funds were redirected to benefit private parties, including the foundation."

Dudu Myeni named Mr X during her testimony at the commission, and in July pleaded guilty in the Johannesburg Magistrate's Court to a charge of obstruction of justice for naming a protected witness.

The court ruled that she pay a R120 000 fine, or face two years in prison. Half of the amount was suspended for five years.

In January this year, Daily Maverick reported that VNA Consulting transferred R250 000 to the foundation of Jacob Zuma's wife, Sizakele MaKhumalo after the company received a R17-million upfront payment for building 1 000 low-cost houses in Vrede, the same housing project the commission referred to.


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