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Digital Vibes scandal: The story behind the story

As news broke on Tuesday that former health minister Zweli Mkhize is challenging the SIU findings into the Digital Vibes scandal, the journalist who broke the story was taking Daily Maverick Insiders on a journey into his investigation.
Digital Vibes scandal: The story behind the story

Pieter-Louis Myburgh, the Scorpio journalist who exposed a dodgy R150-million communications tender that saw Health Minister Zweli Mkhize fired from his post, says he was not altogether surprised when his findings began to take shape.



 

Speaking at a Daily Maverick webinar for Insiders on Tuesday evening, Myburgh reminded viewers that Mkhize had been trailed by whispers of alleged corruption for several years before the Digital Vibes scandal. During Mkhize’s long career, he has occupied various significant positions within both KwaZulu-Natal provincial politics and the ANC, and has had access to significant quantities of money to disburse.

Myburgh said that one of the first “question marks” around Mkhize occurred when his wife, May Mkhize, received a R12-million loan to buy a farm near Pietermaritzburg while Mkhize was the provincial MEC for finance.

As treasurer-general of the ANC, Mkhize was by definition “put in the way of some curious dealings”, Myburgh said. Among them: the Transnet “tall trains” locomotive contract.

Myburgh suggested that the lesson for journalists and the South African public at large is to fight against the national tendency towards short memories for political scandals and keep the dubious pasts of government ministers in mind.  

The investigative journalist explained that the Digital Vibes contract first came to his attention in 2020 when Myburgh was poring over government spending on Covid-19. At that stage, it was listed as around R82-million spent on Covid-19-related communications — which struck him as expensive.

“There wasn’t very much in the way of radio ads, TV ads or billboards at the time,” Myburgh recalled, making him question where all the communications millions were going.

He proceeded to investigate the then unknown Digital Vibes company and turned up some strange details almost at once. The company entrusted with a multimillion-rand communications contract was registered to a residential address in Stanger, KwaZulu-Natal — and Google Street View revealed that the address in question was effectively a building site.

The company’s director was listed as Radha Hariram, but it soon became clear that Hariram was a front for Tahera Mather: a figure familiar to political journalists as Mkhize’s longtime aide.

“The old ‘follow the money’ tenet is really at the heart of investigative journalism,” said Myburgh. 

In this case, following the money — with the aid of financial documents provided by sources — revealed that the bulk of the money paid to Digital Vibes for Covid-19 communications was diverted to the pockets of Mather and her family, and the family of Zweli Mkhize.

Mkhize’s son Dedani got money to help set up a hair salon; Mkhize’s daughter-in-law Sthoko received the cash for an upmarket nail bar.

Myburgh’s investigative reports on the matter have since been vindicated by the Special Investigating Unit (SIU), whose probe has mirrored Myburgh’s findings.

“Any sceptical South African is welcome to go and draw the SIU filings,” said Myburgh.

Although Mkhize has now launched a court bid to have the SIU findings set aside on the grounds that the probe amounted to a witch-hunt, Myburgh says his initial impression of Mkhize’s legal challenge is that it is “very broad” and does not address the very detailed accounts of cash flow within the SIU report.

Myburgh is now interested in investigating other aspects of Mkhize’s governance history.

“I’m concerned about what happened at the Department of Health in terms of other contacts when Zweli Mkhize took over,” Myburgh said.

“I’d like to know what else is hiding in the Department of Health finances while he was minister of health.” DM

Comments (8)

sl0m0 za Mar 29, 2022, 10:30 AM

All these revelations are good and well, but it does not change the fact that our country is run by criminals who steal from the poorest people to enrich themselves. I sill believe that Members of parliament should live on a capped income which is no more than R1 million per year and only receive budget vehicles to travel with. Also, a full life and tax audit BEFORE being apppointed and yearly after that. We will then soon see who REALLY cares for the country.

Sue van der Walt Nov 13, 2021, 11:22 AM

I'm so tired of the reporting, in great detail, that billions/trillions of rands have been stolen by authorities and yet nothing happens. Yes, there are commissions, investigations etc. etc. which go on forever and which cost RSA millions of rands but don't achieve anything. The only question that remains: why can't the stolen money be retrieved? Why are those who are guilty of paying bribes, enablers of inflated tenders be forced to re-imburse their ill-gotten gains? What about Ramaphosa's promise made in his first speech as president that he would be doing a financial audit on all ministers and members of parliament and if they were seen to be living beyond their means, they would be held to account?

Hilary Morris Oct 31, 2021, 12:12 PM

Too bloody depressing for words! And he seemed like such a good guy......... (insert rolling eye emoji here)

Michael Hayman Oct 20, 2021, 08:46 PM

These crooked politicians come off a conveyor belt. They are all the same and so many approved by our gutless president. Thank heavens for these great investigative journalists.

John Strydom Oct 20, 2021, 03:51 PM

Now watch out for Karpowerships!

paulzille Oct 20, 2021, 02:17 PM

Mr Myburgh might also want to investigate Mr Khize's links to Mike Mabuyakhulu, former KZN Econ Development MEC, and former Ithala Bank CEO Sipho Shabalala in the Inthaka Holdings scandal.

Penny Philip Oct 20, 2021, 01:38 PM

Such a good webinar! Well done guys!!

Colin Jennings Oct 20, 2021, 12:51 PM

So true, we do have short memories, Mr Myburgh. the only person who seems to be "carrying-the-can", in the "Three Amigo's Saga", is Gaston Savoi, who was an expendable, as Mike Mabuyakhulu and the dear, Peggy Nkonyeni are still free and Peggy is MEC for KZN Transport, Community Safety and Liaison, I believe and there sounds to be a good source of awaiting wanabees in this sector!

Ian Gwilt Oct 20, 2021, 01:51 PM

what happened to Gaston, I must have missed it I thought the whole thing died a death