PIC loan 'kickback' comes back to haunt Zweli Mkhize
A letter of demand from a Johannesburg law firm has exposed an alleged R4.5-million kickback for former ANC treasurer-general Zweli Mkhize and other ANC supporters for helping an oil company get a huge loan from the Public Investment Corporation.
The letter, dated October 2017, names Mkhize in a legal claim against Afric Oil, which describes itself as South Africa’s “first BEE fuel distribution company”.
It claims that at a meeting at Luthuli House “sometime in early June 2016” a loan application to the PIC “was extensively discussed and the TG agreed to promote Afric Oil’s projects, including providing support for the facilitation of the PIC loan”.
It says a “fund-raising fee shall be shared amongst them”, with R4.5-million going to Mkhize. The loan was for R210-million.
The meeting came after an initial loan application had been rejected by the government pension fund manager, the letter says.
The law firm claims to be acting for Zonkizizwe Investments, which it says is “wholly owned by the ANC”.
It claims part of the facilitation fee was never paid and that its clients are seeking their money.
Mkhize, who is now minister of co-operative governance and traditional affairs, denies all knowledge of the agreement, telling the Sunday Times this week: “At no point did I play a role in facilitating a loan from the PIC for a company called Afric Oil. I also have no relationship with a company called Zonkizizwe Investments.”
But Mkhize’s predecessor, Mathews Phosa, yesterday confirmed that Zonkizizwe was an “ANC-formed company”, while several ANC supporters have admitted to being at the alleged meeting.
The “facilitation fee” has been described by governance experts as “highly inappropriate” and “nothing short of corruption”.
Read the full story in the Sunday Times.
Want to read the full Sunday Times?
Subscribe online from R56 per month or try our R15 day pass