By Lehlohonolo Lehana.
Department of Public Works and Infrastructure Deputy Minister Sihle Zikalala launched a forceful rebuttal of recent coverage linking him to alleged irregularities in the Independent Development Trust (IDTs) governance—especially concerning the appointment of CEO Tebogo Malaka and an expensive office lease scandal.
Zikalala addressed the media on a number of issues about IDT including investigations involving his actions and involvement and oversight during his tenure as a former minister.
This follows Part One of this series by Amabhungane of how Kwazi Mshengu, Zikalalas confidant and then-IDT chair, led the board in abandoning a National Treasury investigation into the parastatal’s procurement of a new head office lease — even refusing to be briefed on its provisional findings.
Mshengu and the board asked Zikalala to have his Department of Public Works and Infrastructure, of which the IDT is an implementing agency, investigate instead.
The departmental auditors went on to produce a damning report on procedural irregularities, they had also warned Zikalala they were unequipped to probe — and could not investigate — substantive allegations against Malaka and others — a limitation he readily accepted.
Despite the auditors recommending a further probe by the department’s anti-corruption unit, Zikalala instantly wrote to Mshengu endorsing Malaka’s appointment, claiming the auditors had “found no wrongdoing” on her part.
Zikalala explained that when he assumed office as Minister of Public Works and Infrastructure in March 2023, the process to appoint a new CEO for the IDT was already under way.
“The board had already processed the memorandum for the appointment I found upon my arrival,” he stated.
“The recommendation to appoint Ms Tebogo Malaka as CEO had already been submitted to Cabinet for final approval, with the concurrence of my predecessor, Minister Patricia de Lille.”
However, Zikalala decided to withdraw the matter from Cabinet consideration.
“I decided to do so due to emerging issues regarding the entity, which required thorough due diligence,” he said.
I placed the appointment process of the CEO on hold to give the board space to conduct investigations,” said Zikalala.
Zikalala provided a comprehensive timeline of the process, starting in early 2023. He argued that the CEO was recommended through a proper public process, led by Zimbini Hill during his tenure as board chair, before his arrival.
He emphasised that his appointment as Minister in March 2023 marked the beginning of his oversight.
He stated, “In April 2023, I withdrew the initial submission for the CEO’s appointment, placing it in abeyance pending a full investigation due to issues that had arisen concerning the IDT, including the office lease.”
According to internal documents cited in the report, Malaka is accused of unlawfully signing a lease with Moepathutse Property Investments — a politically connected firm — without board approval and beyond her authority.
The IDT never occupied the building, located near a nature reserve in Irene, Centurion, and now faces a R14-million damages claim from the landlord.
Zikalala rejected claims that he blocked investigations into the lease, saying he had in fact instructed the IDT board to investigate the matter, only to be met with governance failures and internal conflict.
“I am the first Minister to task the IDT board to investigate the office lease matter,” he said.
“I requested a report after six months, but unfortunately, the board was plagued by infighting and governance challenges, which distracted the entity from its core mandate of delivering social infrastructure to communities.”
Despite the department’s efforts to refocus the board on governance and fiduciary responsibilities, progress was limited.
“I held several meetings to try and steer the board back on track, but these efforts did not produce the desired results,” Zikalala noted.
He added that, as part of his oversight role, he wrote to the board requesting explanations and representations from members regarding serious management and administrative lapses within the IDT.
When Moepathutse filed its damages claim, the IDT responded with a special plea, claiming that the bid had been tailored to suit Moepathutse’s building and that Malaka had concluded the lease without board approval, which was required due to its value.
The IDT asked the court to pause the damages suit it applied in order to review its own decision and void the lease. When the IDT finally filed the review in March 2024, the deponent to its founding affidavit was none other than Malaka.
She put hardly any admissible evidence on the table and the outcome was predictably dire.
In a judgment delivered on 16 May, acting judge S J Myburgh complained repeatedly that the IDT had provided no evidence that its decisions were improper.
The court dismissed the IDT’s application with costs, and Moepathutse’s damages claim, which the IDT’s latest annual report says now stands at almost R14-million.
Zikalala announced his decision to refer the matter to the Public Protector “to ensure a thorough, independent investigation and to expose the truth.”
He called on media outlets to uphold ethical journalism and avoid becoming tools in political battles.
“I will not allow the persistent onslaught and smear which masquerade as a journalistic endeavour, sophisticated as it may appear, to blackmail us,” Zikalala said.
Zikalala reaffirmed his unwavering commitment to “serving with integrity, transparency, and accountability.” He assured the public that he provided all relevant documents, including the internal audit and legal opinions, to facilitate clarity.