Mbalula opens case against Mthunzi Mdwaba over R500m bribe allegations

ANC secretary-general Fikile Mbalula on Thursday opened a crimen injuria and defeating the ends of justice case against Mthunzi Mdwaba, former chair of Productivity SA and CEO of Thuja Capital, at the Sandton Police Station.

“I categorically deny all allegations made against me by Mdwaba. I see it as my duty to report the [alleged] crime committed by Mdwaba in him not reporting the crime when he was approached by the mysterious and unknown three individuals he refers to in his allegations,” said Mbalula.

Mdwaba has accused Mbalula and the ministers of labour, finance and health of sending people to him in an attempt to solicit a bribe of R500m from the proceeds of R5bn his company would have received for an Unemployment Insurance Fund (UIF) jobs scheme.

He alleges the ministers demanded 10% of the UIF tender deal he was aiming to secure and was removed from Productivity SA when he refused.

Mbalula said he has instructed his lawyers to send a letter of demand to Mdwaba. 

“Should he fail to retract his malicious and defamatory statements about me, my legal team will approach the courts to compel him and seek appropriate relief,” he added.

The Sunday Times reported that Mdwaba was removed from the Productivity SA board by employment and labour minister Thulas Nxesi over a R5bn “conflict of interest”.

After expressing concern about allegations of serious misconduct, nonprofit organisation Public Interest SA has demanded an investigation into the “irregular” R5bn UIF deal.

According to a Sunday Times report, senior officials of the labour department and the UIF hurriedly concluded an “irregular” deal in December last year that would have seen R5bn in UIF funds channelled to an untested job creation initiative.

“Mdwaba was reportedly under investigation by the employment and labour department for attempting to redirect funds of hard-working South Africans to his own private company,” Mbalula said. “Instead of addressing the allegations against him, Mdwaba elected to mount a slanderous campaign against ministers and myself and by extension oldest liberation movement in Africa, the ANC. Owing to my elected position, an allegation against me impugns not just my family name, but the immediate institution I am associated with and that is the ANC,” he added.

“I have no business dealing with him. I know nothing about this. I am prepared to sell my socks to defend my integrity because that’s the only thing I’ve got. I know Mdwaba, I won’t deny it, he is not my friend, he is not my business friend, he knows me. I have never had under-carpet dealings with him anywhere, never,” Mbalula said.

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