Small Business Department awards R22 million contract to company partly owned by minister’s advisor
The Democratic Alliance has questioned a multi-million rand contract paid by the Department of Small Business Development to a company in which Minister Lindiwe Zulu’s adviser has a large stake.
The DA said that successive replies to parliamentary questions 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.
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.
According to the DA, 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.
Chance noted that 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,” Chance said.
Read this: South Africa needs a black-owned bank: small business minister
Loading ...