Zweli Mkhize faces R4.5m kickback allegations, PIC thrown into the mix

There is trouble on the horizon for Cooperative Affairs (Cogta) Minister Zweli Mkhize after a Johannesburg law firm launched a legal claim against Afric Oil, a company that allegedly gave Mkhize kickbacks worth R4.5 million for a loan he secured the company.

Afric Oil, which describes itself as South Africa’s “first BEE fuel distribution company”, allegedly received a loan from state-owned Public Investment Corporation (PIC) with the help of the minister, who allegedly also stood to gain a “fee” for his assistance.

The Sunday Times reports it has a seen a letter dated October 2017, in which the law firm claims to be acting for Zonkizizwe Investments, a company former ANC treasurer-general Mathews Phosa – also Mkhize’s predecessor – confirmed was owned by the ANC.

The letter alleges a meeting took place at ANC headquarters Luthuli House in June 2016 to discuss a loan application to the PIC, where Mkhize agreed to facilitate the R210-million loan. The document also claims Afric Oil had attempted to get the loan before, but their application was rejected by the government pension fund manager.

If the letter is anything to go by, Mkhize ensured that the second time was successful. Mkhize, according to the law firm, received R4.5 million as his share from the “fundraising fee” that was split among the parties involved.

But this fee has been slammed by governance experts as “highly inappropriate” and enough to be labelled “corrupt”.

Mkhize has denied playing a role in facilitating the loan for Afric Oil. The company’s CEO, Tseke Nkadimeng, also denied the allegations, but confirmed that his cousin Joseph Nkadimeng, a security provider at Luthuli House, had introduced him to Mkhize.

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