Media statement: Minister Zulu’s advisor receives over R22 million in contracts

Minister Zulu’s advisor receives over R22 million in contracts

by Toby Chance - DA Shadow Minister of Small Business Development

Date: 08 November 2016

Release: Immediate

Type: Press Statement

Successive replies to DA Parliamentary Questions have revealed that Minister of Small Business Development, Lindiwe Zulu, allowed her department to pay R22 million to Mtiya Dynamics, a company in which her advisor, Dr Thami Mazwai, owns 40% of the shares. I will write to Minister Zulu to request that she either terminate Dr Mazwai's contract with immediate effect or instruct Dr Mazwai to dispose of his shares immediately. Failing this immediate action, the DA will write to the Auditor General, Kimi Makwetu, to request that he investigate these activities. Furthermore, I will submit parliamentary questions on whether or not Dr Mazwai has received any material benefit from fees or dividends paid by Mtiya Dynamics. The reply lists the following amounts totalling R22,085,000 that was paid to Mtiya Dynamics: • R2,910,150 on programme set up costs • R2,355,738 on call for applications & adjudications • R683, 234 on promotion, marketing and branding • R2,848,965 as a management fee • R1,723,573 on inductions, capacitation and business report • R948,302 on research and development • R1,629,350 on project admin costs • R1,930,000 Third trance expenses • R3,500,000 for capacitation costs • R463,785 project costs • R3,091,900 VAT Mtiya Dynamics, under Dr Mazwai's direction, developed what is now called the National Gazelles Programme and sold it to the DTI. After the formation of the Department of Small Business Development in 2014, the programme was transferred to it from the DTI. Last year Dr Mazwai joined the Department of Small Business Development on what is no doubt a lucrative contract, shortly after his company Mtiya Dynamics was given the contract to manage the National Gazelles Programme. Government employees in DA-controlled departments, metros and municipalities are barred from doing business with the state. Minister Zulu must demonstrate a similar level of probity in the management of her department.

Media Enquiries

Toby Chance DA Shadow Minister of Small Business Development 083 251 5613   Luvuyo Ndlangisa Press Officer 061 738 0812