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WATCH: Mashatile denies looting of billions meant for Daggafontein project

Deputy President Paul Mashatile has refuted claims that billions of rands meant for the Daggafontein Mega Project were looted by the so-called “Alex Mafia during his tenure as the Gauteng MEC for human settlement.

In a video circulating on social media platforms, Martin Nel alleges that construction of the project failed to get off the ground despite R10 billion being allocated by Mashatile, while he was a member of the executive council (MEC), to build 18 000 housing units.

Watch Martin Nel’s claims about Paul Mashatile

@martin.nel09 Daggafontein Mega City Project, 10 Billion Rand Budget. Hundreds of Millions of Rands looted by the Alex Mafia! The GAUTENG MEC FOR HUMAN SETTLEMENTS at the time of inception – PAUL MASHATILE! @Paul Mashatile @PanyazaLesufi @African national Congress #cyrilramaphosa #anctoxictouch @Democratic Alliance @NewsNexusOfficial @eNCA @News24 @@Newzroom405 #fikilembalula @Dudu Zuma Sambudla🇪🇭 @EFFSouthAfrica @Mk party #SAMA28 #RescueSa #MartinNel #viral_video #viralvideos #viraliza ♬ original sound – Martin Nel

‘Alex Mafia’

The housing project was initially launched in 2016, but construction at the site began in 2017. The project had stalled due to lockdown in 2020 and resumed in 2021 until the previous contractor’s contract lapsed in December 2022.

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Nel alleges that the money was looted by the Alex Mafia.

“The Alex Mafia got the tender to build this project and nothing came of it. The construction already halted in early 2019, yet in 2019, another R118 million was allocated to the project.”

ALSO READ: Mashatile denies he is being investigated by Hawks, Public Protector and SIU

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‘Untruths’

Mashatile’s spokesperson Keith Khoza said the deputy president has taken note of Martin’s “untruthful and libellous video.”

“In his eagerness to spread untruths and thereby tarnish the image of the Deputy President, Mr Nel ignored some pertinent facts about the Daggafontein Mega Project. For starters, it was part of 15 land parcels identified for mega housing projects in 2016 and intended to yield 18 000 units. A developer, Rodesh was appointed as Turnkey Developer.

“Secondly, as is common practice, the local government authority – in this instance the City of Ekurhuleni – was responsible for the provision of bulk services. The City appointed an independent service provider for this purpose. The cost of work done was paid for by the City of Ekurhuleni,” Khoza said.

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Construction delays

Khoza added that construction was however delayed pending the installation of bulk infrastructure.

“The Department of Human Settlements nevertheless budgeted funds (which it could not spend due to lack of bulk infrastructure) for several years. Mr. Nel either misunderstood this or did not want the facts to interfere in his attempt to tarnish the reputation of the Deputy President.

“Lastly, those who took the moral stand and risked everything to fight apartheid have lived with a persistent post-apartheid counterattack which casts aspersions on efforts to redress the legacy of colonialism and apartheid, amongst other ways by criminalising political leaders on supposedly moral grounds,” Khoza said.

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Incomplete Daggafontein

In the video, Nel shows the building site appears to be far from complete, with only sewerage piping and tarred roads with no houses or signage at the site.

A few hundred metres from the new mega-development site three informal settlements, including Daggafontein, Kwasa Village, and Anchor/N1, have mushroomed.

Nel said the budget allocation for the project was as follows: R118 million in 2019, R62 million in 2020, R36 million in 2021, and R35 million in 2022.

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Mashatile lavish lifestyle

In October, Mashatile also denied claims that he was being investigated by law enforcement agencies in connection with cases linked to him and his “lavish lifestyle”.

It came after reports emerged of a Hawks probe into a R28-million Cape Town mansion, a Public Protector investigation into his children’s government contracts, and a Special Investigating Unit (SIU) probe into a department where he was MEC significantly increased pressure on  Mashatile to explain his lavish lifestyle.

Khoza at the time said Mashatile was  aware of the existence and propagation of a post on the social media platform “X” (formerly known as Twitter) by GoolamMV which “distinguishes itself by launching unverified information and often propaganda-laden attacks on the supposed political rivals of its handlers.” 

Khoza said the post on X, News24’s stories, complaints by opposition parties and the alleged claims about state “investigations of Mashatile”, were all part of a “pressure campaign” against the deputy president.

ALSO READ: Gauteng MEC Maile orders probe into R37m mansion linked to Mashatile

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By Faizel Patel