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South Africa’s national lottery operator Ithuba Holdings, has been implicated in the multi-million-rand Digital Vibes tender scandal.
Revelations by Daily Maverick’s Scorpio have shown that money from an irregular R150 million tender issued by the National Health Department was laundered to entities owned by associates of former health minister Zweli Mkhize.
In its findings, Scorpio determined that Ithuba donated 100,000 face masks in May 2020 that were allegedly bought using state funds.
The revelation also shows that some funds were allegedly laundered to companies owned by Mkhize’s son, Dedani.
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Scorpio says this latest investigation is supported by bank records, text messages and other documents.
It says Mkhize, then deputy health minister Joe Phaahla and police minister Bheki Cele, among others, attended a televised event at Ithuba’s offices in Sandton, Johannesburg.
Seth Phalatse, Ithuba’s chairperson, announced that the company was donating 100,000 reusable cloth masks with Saps and DoH emblems to assist in the government’s battle against Covid-19.
“On the surface, there was no reason to suspect that this was anything other than a charitable gesture from a well-known company.
“However, by the time the handover ceremony took place, Dedani Mkhize had already pocketed money linked to the donation and the DoH’s Digital Vibes deal, as our investigation demonstrates.”
The Scorpio exposé also revealed that in the days before the handover ceremony at Ithuba’s offices, the masks were delivered to the health minister’s official residence in Waterkloof Ridge in Pretoria.
This is confirmed by a delivery note with the precise address, signed by Mkhize’s then domestic worker.
Scorpio says it is unclear whether the masks were distributed to DoH officials and SAPS members from the ministerial residence.
“We also don’t know whether Ithuba at any point actually had the masks in its possession.”
“What we do know, however, is that Ithuba forked out R5.9-million for the masks — R725,000 more than what Digital Vibes had paid Tammy Taylor South Africa.
The lotto operator told Scorpio it had bought the items from a company called Spin Wizards Communications Advertising and Digital Media.
Scorpio says Spin Wizards profile raised numerous red flags which were of serious concerns.
“Spin Wizards’ director, one Mavis Ndlovu, couldn’t be reached by phone, and she never responded to text messages. The company also didn’t have business premises, a website or a presence on any social media platform advertising its masks or other products.”
It says Spin Wizards was, in fact, intimately linked to Mateta Projects, one of the entities involved in the Digital Vibes saga.
We have previously revealed how Mateta Projects funnelled bits of the Digital Vibes loot to the Mkhize family.
The investigation revealed that of the nearly R6-million Ithuba had paid Spin Wizards, almost R5 million was funnelled to Tahera Mather’s entities, Composit Trade and Investments, and to Mateta Director Mdu Mthethwa’s Mateta Projects.
Mather was Mkhize’s personal assistant at the time.
Scorpio says Ithuba may plead innocence regarding its involvement in any deliberate scheme, but it can’t deny the fact that some of the proceeds from its deal with Spin Wizards found their way to the former health minister’s son.
It says most of the individuals involved in these dealings ignored Scorpio’s attempts to get their input, while Mthethwa, Mateta’s owner, did not respond to queries.
To the best of our knowledge, Mather has left South Africa. She did not respond to messages and could not be reached for comment.
In one of its statements, Ithuba told Scorpion said: “If there was anything to hide on our part, certainly, we would never have ventured into making a public event of it.”
Compiled by Faizel Patel
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