The Special Investigating Unit (SIU) has secured a Special Tribunal judgment ordering former Nkandla project architect Minenhle Makhanya to repay R147.2 million to the National Treasury.
The judgment, delivered on Wednesday, found Makhanya personally liable for losses suffered by the Department of Public Works during the controversial upgrades to former President Jacob Zuma’s private residence in Nkandla, KwaZulu-Natal.
Makhanya was appointed as the project’s principal agent in August 2009 without a competitive tender process. The Tribunal found that his appointment was unlawful and that there was no justification for bypassing procurement requirements.
The project was initially approved at R27.9 million, but costs eventually ballooned to R216 million.
The SIU said Makhanya authorised and certified payments for works that were not required by security assessments, failed to obtain necessary approvals for variations and approved payments above market-related costs.
The Tribunal found that he breached statutory, professional and contractual obligations and rejected his defences, including claims that he was acting on instructions from security agencies.
Judge K. Pillay said Makhanya, as architect and principal agent, had a responsibility to ensure that Public Works did not incur fruitless and wasteful expenditure.
The Tribunal also declared his appointment contract invalid and ordered him to pay the legal costs, including those of two counsel.
The SIU said the claim was reduced by R7.8 million, reflecting money repaid by Zuma for non-security-related upgrades.
The SIU will refer any evidence of criminal conduct uncovered during the investigation to the National Prosecuting Authority.
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