Zikalala denies interference in R45m IDT lease scandal

This comes after investigative journalism centre amaBhungane published a report suggesting that Zikalala and former IDT board chairperson Advocate Kwazi Mshengu worked behind the scenes to protect then-acting CEO Tebogo Malaka from scrutiny.

Despite red flags, the pair allegedly supported Malaka’s promotion to permanent CEO.

According to internal documents cited in the report, Malaka is accused of unlawfully signing a lease with Moepathutse Property Investments — a politically connected firm — without board approval and beyond her authority. 

The IDT never occupied the building, located near a nature reserve in Irene, Centurion, and now faces a R14-million damages claim from the landlord.

Zikalala, who served as Public Works Minister under the sixth administration, refuted the claims in a media briefing on Tuesday, labelling the allegations a “political smear campaign” and announcing plans to refer the matter to the Public Protector.

"I note with deep concern false insinuation regarding my conduct and actions, especially on the matter relating to IDT CEO appointment, which does not reflect the truth from one of the media houses," Zikalala said.

"There are undertones of an attempt at a political smear campaign intended to undermine and discredit my reputation through false narratives."

He rejected claims that he blocked investigations into the lease, saying he had in fact instructed the IDT board to investigate the matter, only to be met with governance failures and internal conflict.

"There is no investigation that was ever squashed,” he asserted.

"All investigations that were requested by the board — that I requested the board to pursue — were frustrated because of contaminated processes. Those must now be undertaken under the seventh administration."

Zikalala said he has decided to involve the Public Protector to ensure an impartial investigation into the lease scandal and his conduct.

"Having looked on all of these questions and the smear campaign, I have therefore resolved to subject this matter to the Public Protector for a thorough investigation," he said.

"This will assist so that the truth is exposed and we avoid narratives that are laced with innuendos and speculation."

He added that he has always embraced accountability.

"In all my public life, I have never and will never attempt to escape public scrutiny and inquiry."

Zikalala also accused amaBhungane of distorting his responses to questions and pursuing an agenda driven by private and business interests.

"I will not allow the persistent onslaught and smear which masquerade as a journalistic endeavour, sophisticated as it may appear, to blackmail us," Zikalala said.

"It is an escalated long-standing battle for the soul of the IDT with hidden private and business interests."

He further defended his decision to pause the CEO’s appointment, saying the process began before he took office and required due diligence due to emerging concerns.

"While we will fight against any form of corruption, and we will not shield anyone implicated, we will also fight the agenda to capture and liquidate the IDT so that it is not diverted from its core mandate of delivering social infrastructure and empowering the poor in favour of big business interests."

Zikalala revealed that during his tenure, the IDT board had become dysfunctional, hampered by internal conflict and governance lapses — all of which obstructed the lease investigation.

"The IDT board got blanched by challenges and infighting among board members, which defocused the entity from its primary mandate of delivering social infrastructure to communities, but it also defocused them even from the task I gave them to investigate this matter. There was serious concern on the governance affairs of the IDT, and despite numerous attempts to assist from the department, there was little improvement.

"As the minister at that time, I held a number of meetings to refocus the board to its governance and judicial oversight that they had to perform. These efforts to focus the board on governance issues did not yield expected results.

"It was against this background that, as the then minister,  in line with my oversight responsibilities,  I wrote to the board and requested an explanation and representation from all board members over the series of lapses in the management of the IDT.  I must say I requested an explanation from all of them  as to why there are issues that destabilise the entities and why they should be kept."

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