Shabalala told Ithala's top managers that the company, Bhombe Chitey Construction and Projects, had been approved by KwaZulu-Natal cabinet.
A forensic report into the awarding of this multimillion-rand deal to Bhombe Chitey, seen by Business Times, states that Shabalala also told the same meeting that the company "has done a presentation to then MEC for economic development Zweli Mkhize and he was impressed by their presentation".
Mkhize is now the KwaZulu-Natal premier and provincial chairman of the ANC.
The forensic investigation recommended that Shabalala be charged "for abuse of authority" and "for violation and transgression of procurement policies and abuse of board's delegation".
The probe also found out that while Ithala properties executive Vukani Nxasana was on sick leave, Shabalala had bombarded him with phone calls that "he should come back and finalise the appointment of Bhombe Chitey as everything had stalled due to his absence".
Shabalala also allegedly sent a senior legal adviser, Dudula Maoela, to Nxasana's house to ask him to sign documents to speed up the deal.
Shabalala said through his spokesman Vuyo Mkhize: "It is now a matter of public record that Mr Shabalala was censured for his role in the matter of the Bhombe Chitey appointment on the basis of this (forensic) report. Mr Shabalala considered, and still considers, this to mark the point at which this matter was closed."