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Deputy president's son-in-law snaps up R28m Constantia palace – but owes Gauteng R7m

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Deputy president's son-in-law snaps up R28m Constantia palace – but owes Gauteng R7m

Image of Paul Mashatile
Deputy President Paul Mashatile

29th January 2024

By: News24Wire

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Deputy President Paul Mashatile now has a swanky Cape Town home to use when he visits the Mother City – a R28.9-million, seven-bedroom mansion in Constantia.  

The property – just like his R37-million house in Waterfall, near Johannesburg – was also bought by his son-in-law, Nceba Nonkwelo, last year through one of his companies, Bilcosat.  

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On 15 January, the company was renamed Duntaw Guest House.

According to deeds office records, the purchase took place in May 2023, with registration taking place in December.  

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In the space of three months, between March and May 2023, Nonkwelo, through his business entities, funded the purchase of properties which would be for Mashatile's ultimate benefit, worth an astonishing R65.9-million.  

This is despite Nonkwelo owing roughly R7-million to the Gauteng Partnership Fund (GPF) for a failed social housing project in Johannesburg. The GPF is an entity of the Gauteng provincial government and falls under the Gauteng Department of Human Settlements.  

Nonkwelo has been married to Mashatile's daughter, Palesa, since at least 2006.

The source of Nonkwelo's wealth remains opaque. Previously he and Thabiso Mashatile, one of the deputy president's sons, said they were property developers, and it is believed Nonkwelo owns two Sasol fuel stations. 

City Press and Rapport reported on Sunday that Fikile Mbalula, the African National Congress's (ANC's) secretary-general, said on Friday that Mashatile would appear before the governing party's integrity commission.  

This follows a series of investigations by News24 that has revealed the breadth and extent of a patronage network seemingly linked to Mashatile, and from which he allegedly benefits.  

While Mashatile's spokesperson, Vukani Mde, denied the deputy president was making use of the home, News24 understands that a Presidential Protection Service detail is stationed outside the house around the clock, suggesting that either Mashatile or an immediate family member makes use of the property. 

"I am not at liberty to confirm, deny, or disclose any details relating to protection of and security arrangements for the deputy president," Mde told News24.  

"The deputy president uses Highstead when he is in Cape Town and has not used any other residence. This will not change," Mde said, referring to the official residence for deputy presidents at the Groote Schuur Ministerial Estate in Rondebosch.  

Nonkwelo said the Constantia property would be used as an upmarket guest house, but did not deny that the house would be available to Mashatile on occasion.  

"The company is at liberty to invite guests to the property when vacant – my father-in-law included. The innuendo which is to be drawn from your queries suggests to me that I should perhaps preclude my family from making a visit. That would be discriminatory and nonsensical," Nonkwelo said.  

Nonkwelo said he had secured a loan for the Constantia house and that he was "advised" a bond would be registered before the end of February. Deeds office records had no bond recorded at the time of publication.  

"The suggestion that the property was acquired as a cash transaction is incorrect and is clearly purposed at scandalising a legitimate business transaction, which was investing in real estate in the Western Cape property market during an opportune time," he said.  

"A visit by my father-in-law would, of course, trigger a Presidential Protection Service having to attend at the property in anticipation of a scheduled visit. Any suggestion beyond that would be a 'fact free stunt'," he said, but also added that he was not privy to the security detail of the deputy president and referred queries in this regard to Mashatile's office.    

Clifton to Constantia 

According to a Hardie Property listing on YouTube - which was removed a day after News24 first sent questions about the house to Nonkwelo - the Constantia home boasts 7.5 bathrooms, a separate cottage and a wine cellar, and cinema spread over 820 square metres, with a large garden and pool evident from videos posted by the realtors. Originally, the property was listed for R34-million.  

News24 previously reported that Mashatile regularly made use of two properties owned by businessmen with extensive public contracts – a R78-million Clifton home that was owned by corruption-accused Edwin Sodi, and a multimillion Fresnaye house owned by Ndavhe Mareda located in the same street as President Cyril Ramaphosa’s palatial home in the upmarket suburb.  

Mashatile did not deny using the homes, but said he was not guilty of any wrongdoing. He also stated that he had not used the homes after being sworn in as deputy president last year.  

On Thursday, News24 reported that the Gauteng Department of Human Settlements had paid Sodi's company, Blackhead Consulting, R828-million between 2014 and 2020, and that the Zondo Commission had heard evidence of payments totalling R370 000 were made directly to Mashatile by Sodi. 

Some of the payments from the department overlapped with the time that Mashatile was MEC for human settlements in Gauteng. 

The property deals occurred despite Nonkwelo owing the GPF just over R7-million for a failed social housing project in Highlands, Johannesburg, that was started in 2013, with no discernible construction having taken place to date.  

A report by GMI Attorneys, commissioned by Gauteng housing MEC Lebogang Maile after a News24 report revealing the existence of the Highlands loan found the GPF had not done everything in its power to recoup the money and the investigation found evidence that the GPF bent over backwards to continue financing the project long after it was no longer viable.  

The GMI report stated that the GPF risked allowing the debt to prescribe and while it had signed settlement agreements with Nonkwelo, who had personally guaranteed the loans, GPF officials had not taken sufficient steps to recover the funds from him personally.  

Mashatile was MEC for human settlements between 2016 and early 2018 and responsible for the GPF. Over this period the GPF, instead of pulling the plug on Nonkwelo's loans for the Highlands project, agreed to extend the scope of the project and changed it to student accommodation.  

The investigation made no findings of undue influence by Mashatile – mainly because individuals who were at the GPF at the time were not available to be interviewed.  

"The report and Nonkwelo Investments engagement with GPF and actions taken by either party following publication of the report still remains subject to the privilege afforded to parties in a legal setting. Regrettably, I will not offer a reply to these queries at the risk of waiving the privilege afforded to me by GPF," Nonkwelo said.

He reiterated this position in response to follow-up questions. 

Company records show that Nonkwelo has been a director of 49 companies, most of which are still active, while he has resigned from a handful. Thirty-one of the companies share the same registered business address – his property inside the Sandton Country Club estate.  

News24 previously reported that the Waterfall property has a 99-year lease in the name of Legacy Properties, a company of which Nonkwelo and Thabiso Mashatile are directors. A bond for R37-million was registered over the property in the name of Nonkwelo Investment Holdings – another of Nonkwelo's companies. This property was also purchased after Nonkwelo signed settlement agreements with the GPF.  

In October, News24 reported that Mashatile had declared the Waterfall home to Parliament, despite it being owned by his son and son-in-law's company.

Mde, at the time, said the declaration was because it was the deputy president's "primary residence".  

Mashatile is not alone in using luxury homes rather than official residences.

President Cyril Ramaphosa also prefers to use his luxury home in Fresnaye when in Cape Town and his home in Hyde Park, Johannesburg, when in Gauteng – staying at the official residences occasionally for state visits and other official events. 

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