EOH corruption set to sink minister

Minister of Sports, Arts, and Culture Zizi Kodwa is reportedly set to appear in the Palm Ridge magistrate’s court this week on charges related to EOH corruption.

Sunday World reported that former EOH executive Jehan Mackay, implicated in the same corruption, will also appear in court.

The charges stem from information shared at the Zondo Commission in 2021 regarding corruption at EOH.

Steven Powell, MD of ENSafrica’s forensics department, said Kodwa received R2 million in payments and luxury accommodation from EOH while bidding for government tenders.

Kodwa was linked to dubious payments from former EOH Mthombo executive Jehan Mackay related to government tenders.

These payments include a R1 million “loan” that Kodwa received from Mackay, which he used to buy a Jeep. He never paid back the money.

Powell said Kodwa was also paid R45,000 by EOH a day before Mackay asked him to intervene in a Home Affairs tender from which EOH was disqualified.

It was a particularly lucrative tender, and Mackay’s communication with Kodwa following the deposit looked like a plea.

Not only did large payments into Kodwa’s accounts link him to potential corrupt deals, but EOH also paid for exclusive accommodation in Cape Town.

The accommodation was always ultra-luxurious and very expensive. All the apartments are in exclusive areas, like Fresnaye, Camps Bay, and Clifton.

Powell said Kodwa particularly liked The Pentagon Villa in Clifton and returned for a 3-day stay, which cost R150,000. He also requested the services of a private chef, which cost R11,700.

Kodwa admitted to receiving payments and luxury accommodation from EOH’s Mackay but denied it was linked to influencing tenders.

He also denied ever receiving requests from Mackay to influence how the state spent its money.

Kodwa said he was not guilty of corruption. “I have never engaged in corruption or facilitated corruption in my relationship with Mackay or any other person,” he said.

Kodwa in the firing line

The Sunday World report about Kodwa’s imminent court appearance followed a report by Mail & Guardian that the National Prosecuting Authority (NPA) was close to charging him.

The Mail & Guardian reported that the NPA was set to charge Kodwa with corruption and money laundering.

It said the NPA was “fine-tuning” Kodwa’s charge sheet before National Director of Public Prosecutions Shamila Batohi authorised the minister’s prosecution.

Citing NPA insiders, it reported that the case against Kodwa is strong and seen as low-hanging fruit because emails point to him influencing lucrative tenders.

These emails allegedly show how Kodwa influenced contracts to be awarded to EOH while he was an ANC NEC member and the party’s spokesperson.

If Kodwa is indeed charged with corruption and money laundering, it can devastate his political career.

Kodwa is a high-profile ANC stalwart and a close confidant of President Cyril Ramaphosa.

H was appointed to Ramaphosa’s cabinet as Minister of Sports, Arts, and Culture of the Republic of South Africa on 6 March 2023.

Before that, he served as Deputy Minister of State Security. He is a member of the ANC’s National Executive Committee and was the party’s spokesperson from 2014 to 2017.

Former ANC Deputy President Kgalema Motlanthe said the party’s “rules may be triggered” if Kodwa is charged.

“There are clear guidelines and rules in the ANC. The step-aside rule says if you formally get charged, you have to step aside from whatever positions you occupy,” he said.

“So, if the NPA is building a case against Minister Zizi Kodwa, we wait and see because we cannot be privy to that information and what they do.”

EOH suing Mackay and other former executives

In 2021, EOH announced it was suing its founder and former CEO, Asher Bohbot, and three other executives for a combined R6.4 billion.

EOH had filed civil claims against Bohbot, former CFO John King, former EOH Mthombo executive Jehan Mackay, and former EOH International CEO Ebrahim Laher.

These claims relate to damage inflicted on EOH because they failed to deal with corruption at the company.

Former EOH CEO Stephen van Coller said the board decided to pursue the perpetrators to see if they could recover any of the money.

He added that it also formed part of its remedial actions to avoid being placed on the National Treasury’s restricted suppliers list.

“It is a process my management team and I had to go through as the board feels they have to follow their fiduciary duties to the shareholders,” he said.

Apart from Bohbot, King, Mackay, and Laher, they were also going after other executives, a few companies, and their directors.

He said the process involved an investigation, after which the findings were provided to Werksmans Attorneys for guidance.

Werksmans responded with a way forward, which EOH acted on. “It is now over to the lawyers, and they must do their job,” said Van Coller.

There has not been much progress regarding this legal case, and the company admitted that it would unlikely recover the money.

King passed way shortly after EOH announced that it was instituting legal action against the executives.