SIU using architect as Nkandla scapegoat - DA

It says this comes as it emerged that the SIU had lodged papers in a R155m civil claim against 'one of the principal service providers' of the upgrades to the Nkandla property in the KZN High Court (Pietermaritzburg). SA is awaiting completion of the SIU report into the upgrades at Nkandla. Zuma is using the report to delay responding to Parliament on the contents of Public Protector Thuli Madonsela's report on Nkandla, which found Zuma had improperly benefited from the upgrades and should repay some of the money. DA MP James Selfe said yesterday: 'In the lead-up to the completion of the SIU report ...it appears that the SIU is attempting to scapegoat the Nkandla architect, Minenhle Makhanya.' Selfe said the DA estimated Zuma should repay tax liability of about R16.8m for the fringe benefits. Full Business Day report (subscription needed)

The case could set a precedent, according to a report in The Mercury. The unit's spokesperson, Boy Ndala, confirmed that it was the first time the SIU had launched such a claim. The report says the proceedings may prove to be an important test case of an October 2012 amendment of the SIU Act, which gives the unit powers to pursue those it investigates through civil rather than criminal action. In this case, the Department of Public Works has been cited as the second defendant, but the claim for judgment is only sought against Makhanya. Full report in The Mercury (subscription needed)

In papers lodged with the High Court this week, the SIU alleges Makhanya was unlawfully awarded the Nkandla contract, and that his conduct resulted in significant financial losses to the state, says a report in the Cape Times. The SIU report noted: 'The cost analysis shows that the Nkandla project started from humble beginnings, but soon escalated by more than 200% within a year. It is also clear the uncontrollable escalation took place once the decision-making powers shifted towards Makhanya as the principal agent.' The report said his appointment was improper and did not satisfy legal requirements, and that he had no security clearance. Makhanya's firm was paid R16.5m for its role in the project. In terms of the application, the SIU is seeking an order declaring Makhanya's appointment as the architect and principal agent in respect of the security upgrades at Nkandla invalid. It has also requested that he be directed to pay the National Treasury R155 324 516 - the loss said to be suffered by the Department of Public Works as a result of his conduct. The SIU alleges Makhanya's appointment was unlawful, invalid and in breach of the system of procurement for goods and services by Public Works in terms of the Constitution and relevant supply-chain management policies and procedures. It claims his appointment was not preceded by a competitive-bidding or open-tender process. Makhanya was allegedly also not on the department's list of registered suppliers, so was not qualified to be appointed as the principal agent. The SIU says Makhanya should have known his appointment was not in accordance with the lawful procurement system and was therefore invalid. The report says Makhanya has until 31 August to file his notice of intention to oppose the application. Full Cape Times report (subscription needed)

The Nkandla project manager hopes the 'real truth' will be exposed when the SIU investigation into the project is released, Beeld reports. Jean Rindel, project manager of the Department of Public Works in Durban, was tasked with the execution of the safety improvements at Nkandla. In the Public Protector's report, Rindel's name is mentioned 106 times and his name also features in the damages claim filed by the SIU against Makhanya. Rindel said he fully co-operated with the SIU investigation. 'I know the story behind the story. I know what I said to the SIU and I now want to see what their findings are.' The department is also a defendant in the damages claim for its role in appointing Makhanya as 'principal agent' for the project. In terms of Makhanya's appointment certificate, reportedly seen by the newspaper, Rindel appointed him in 2009 on behalf of the DG. In the SIU's court papers, it is alleged that Makhanya was appointed 'on request of Rindel and/or the acting DG (Solly Malebye) while they knew or should have known ' that his name was not on the list of registered service providers. Full Beeld report