Zikalala defends IDT CEO appointment following procurement allegations

Public Works and Infrastructure deputy minister Sihle Zikalala has refuted claims that he, during his tenure as Minister, defended Independent Development Trust (IDT) CEO, Tebogo Malaka’s appointment and dismissed claims that he suppressed reports into allegations of procurement irregularities against Malaka.

Addressing the media on Tuesday, Zikalala refuted claims that in 2023 and 2024, he and IDT chair Kwazi Mshengu cleared the way for Malaka to be elevated from acting to permanent chief executive

Zikalala explained that when he assumed office as Minister of Public Works and Infrastructure in March 2023, the process to appoint a new CEO for the IDT was already under way. 

“The board had already processed the memorandum for the appointment I found upon my arrival,” he stated. 

“The recommendation to appoint Ms Tebogo Malaka as CEO had already been submitted to Cabinet for final approval, with the concurrence of my predecessor, Minister Patricia de Lille.”

However, Zikalala decided to withdraw the matter from Cabinet consideration. 

“I decided to do so due to emerging issues regarding the entity, which required thorough due diligence,” he said. 

One critical concern was allegations of an office lease at the IDT, which had been in the public domain well before his tenure.

“I am the first Minister to task the IDT board to investigate the office lease matter,” he said. 

“I requested a report after six months, but unfortunately, the board was plagued by infighting and governance challenges, which distracted the entity from its core mandate of delivering social infrastructure to communities.”

Despite the department's efforts to refocus the board on governance and fiduciary responsibilities, progress was limited. 

“I held several meetings to try and steer the board back on track, but these efforts did not produce the desired results,” Zikalala noted.

He added that, as part of his oversight role, he wrote to the board requesting explanations and representations from members regarding serious management and administrative lapses within the IDT.

He clarified that the board was tasked with investigating the lease allegations during the tenure of Board Chairperson Zimbini Hill. 

I placed the appointment process of the CEO on hold to give the board space to conduct investigations,” said Zikalala.

Zikalala provided a comprehensive timeline of the process, starting in early 2023. 

He explained that "around February or March 2023, then-Minister de Lille submitted a recommendation for the appointment of the CEO to Cabinet."

He emphasised that his appointment as Minister in March 2023 marked the beginning of his oversight.

He stated, "In April 2023, I withdrew the initial submission for the CEO's appointment, placing it in abeyance pending a full investigation due to issues that had arisen concerning the IDT, including the office lease." 

He added that the Board, led by Hill, was tasked with completing this investigation within six months, but internal conflicts hampered progress.

"The Board got embroiled in perpetual disputes over their approach and contacts with Treasury, which deemed the process flawed," Zikalala explained. 

"As Minister, I called the Board to account, but this only led to more internal strife, with some members resigning or making representations."

Following this turmoil, he said, "In early October 2023, I wrote to all board members urging them to justify why they should not be removed for failure to perform fiduciary oversight.”

According to Zikalala, This resulted in three resignations and further public processes to fill the vacancies, culminating in the new Board’s appointment on November 3, 2023.

He stated that the new Board subsequently requested an investigation, which was completed by March 2024 and shared with the Internal Audit and Anti-Corruption Unit, recommending deeper investigations, which the relevant agencies undertook.

Zikalala was quick to counter claims of misconduct, stating, "There is a deliberately concocted interpretation designed to create the impression that anything untoward happened under my tenure related to the CEO appointment." 

He argued that the CEO was recommended through a proper public process, led by Hill, before his arrival, adding that the appointment went to Cabinet with the concurrence of the previous Minister, Patricia de Lille." 

He questioned why his concurrence was now scrutinized, asserting, "It is baffling that my approval became an issue when it was done after due diligence."

He further clarified that there has been no report or investigation against him concerning the appointment. The only available report is their internal audit, which recommended deeper investigations by the Auditor-General and the Anti-Corruption Unit.

Zikalala announced his decision to refer the matter to the Public Protector "to ensure a thorough, independent investigation and to expose the truth." 

He condemned attempts at political smear campaigns and warned against media narratives "laced with innuendos and falsehoods."

He further expressed concern over how his responses to the media have been "selectively quoted and taken out of context," warning that some media platforms may be weaponized to serve nefarious agendas. 

He called on media outlets to uphold ethical journalism and avoid becoming tools in political battles.

Zikalala reaffirmed his unwavering commitment to "serving with integrity, transparency, and accountability." He assured the public that he provided all relevant documents, including the internal audit and legal opinions, to facilitate clarity.

"If I had all the reports with me, I would have made them public," he said, referencing his past practice of publishing investigative reports. 

He stated that the ongoing investigations are processes he initiated and that transparency remains his guiding principle.

thabo.makwakwa@inl.co.za

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