SCORPIO: The other Vrede scandal: Zuma Inc’s cash flows from Free State RDP housing project

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SCORPIO: The other Vrede scandal: Zuma Inc’s cash flows from Free State RDP housing project By PIETER-LOUIS MUBURGH PLMyburgh

Payments to the Sizakele Zuma Foundation in 2014 from a contractor involved in a R100-million housing project in the Free State raise fresh questions about cash flows between businesses involved in lucrative state projects and the Zuma family’s charitable foundations.

Despite the large upfront payment from the Free State provincial government, VNA Consulting and its partners allegedly failed to deliver on their mandate amid claims that a large portion of the money had been misappropriated., first examined allegations of a so-called thank you fee paid to former president Zuma in relation to the RDP project.

It is not clear whether, or on what basis, the respective parties had settled their differences out of court. After he had hounded an “evasive” Narsai for answers, Narsai in September 2015 sent Moodley a “Vrede Project Cost Breakdown”. Among the “suppliers” Narsai had included in his list was the “Sizakeke [sic] Zuma Foundation”, which had supposedly received R344,900 in three instalments.

In May 2014, Narsai again paid the foundation, this time with money that emanated directly from the Vrede housing project.Tekeweni Civils received the R22.5-million upfront payment from the Free State provincial government on 12 May.VNA Consulting then transferred R250,000 to the Sizakele Zuma Foundation, also on 12 May.The following day, VNA Consulting paid R50,000 into Mlotshwa’s personal account, under the transaction description “N Mlotshwa Consulting Fees 1”.

The R250,000 went towards school uniforms for children from a local primary school in the Nkandla area, said Mlotshwa. The payments to the Sizakele Zuma Foundation were small compared with those made to a closed corporation called South West Consulting and to a company called M Sandy Contractors. According to South West’s invoices, it had delivered “sub-contract consulting” for the Vrede project.Both sets of invoices included Mlotshwa’s name as the reference person, even though she is not listed as a director or member of either business.She had been dating Sandile Langa, the director of M Sandy Contractors, she told us.

 

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