Explosive IDT Scandal: Zikalala’s ‘Whitewash’ Secures CEO Malaka Amid Lease Controversy

By: Investigative Desk | Published : June 2025

How Zikalala Overrode Governance and Boosted Malaka

Former public works minister Sihle Zikalala faced intense criticism for undermining an independent Treasury probe into a suspicious R45 million head office lease, commissioning instead an internal audit he controlled. Despite clear warnings that the audit lacked jurisdiction over Tebogo Malaka’s role, Zikalala rushed to declare “no wrongdoing” and endorsed her permanent appointment just nine days before the May 2024 national elections :contentReference[oaicite:8]{index=8}.

Board chair Kwazi Mshengu subsequently formalized the appointment six weeks later. Malaka, previously acting CEO, had signed the lease with politically connected Moepathutse Property Investments without board authority — setting the stage for a high-stakes legal and reputational standoff :contentReference[oaicite:9]{index=9}.

Audit at Arms’ Length: Intentional Limitations

Despite the high stakes and public interest, the so-called “investigation” commissioned by then-Minister Sihle Zikalala was anything but comprehensive. Instead of initiating a full-scale forensic audit—as originally recommended by National Treasury and demanded by governance best practices—Zikalala allowed the matter to be rerouted to the Department of Public Works’ Internal Audit Unit, a body explicitly lacking the mandate or tools to probe issues like conflict of interest, procurement fraud, or political favoritism.

Auditors themselves cautioned that their scope was restricted to verifying compliance with basic administrative procedures. Crucially, they informed both the minister and the IDT board that their audit could not examine whether Tebogo Malaka, the acting CEO, had any personal or undisclosed ties to Moepathutse Property Investments, the politically connected company that benefitted from a controversial R45-million lease.

The limitations were not accidental—they were institutionalized. Instead of being referred to the department’s Governance, Risk and Compliance (GRC) division, which houses the anti-corruption and forensic units, the case was assigned to a unit that handles low-risk assurance audits. This shift of responsibility was approved by Zikalala himself on 15 March 2024, even after being explicitly warned about the unit’s inability to perform investigative functions.

When the audit report landed on Zikalala’s desk in May 2024, it painted a grim picture of irregularities in the procurement process. The report noted “material non-compliance with procurement laws and policies”, citing missing documentation, lack of transparency, and unexplained deviations. However, because the audit didn’t assess executive decision-making or probe relational dynamics between Malaka and the winning bidder, its findings were fundamentally incomplete.

Yet, Zikalala used this incomplete report as a shield. On 20 May 2024, just nine days before national elections, he wrote to then-IDT chair Kwazi Mshengu declaring that the investigation had found “no wrongdoing” on Malaka’s part. This statement directly contradicted the audit’s caveats and sidestepped its recommendations for a deeper probe by the department’s anti-corruption unit.

In short, Zikalala took an administratively limited audit and spun it into a political endorsement, all while ignoring warnings, bypassing proper investigative channels, and glossing over glaring governance breaches. This maneuver, which effectively whitewashed the controversy, raises serious questions about ministerial accountability, political interference in public entities, and the systemic weakening of anti-corruption safeguards in South Africa’s public service.

Lease Dispute Ends in Court Defeat

The IDT attempted to invalidate the lease with Moepathutse, arguing it was rigged and signed improperly. However, in May 2025 the Pretoria High Court ruled there was no proof of illegality. The judge condemned the IDT’s claim as unsubstantiated, noting Malaka herself signed the founding affidavit — a clear conflict of interest :contentReference[oaicite:11]{index=11}.

The fallout includes a nearly R14 million damages claim, a legal defeat, and serious warnings from investigators against appointing Malaka without resolving the governance deficiencies :contentReference[oaicite:12]{index=12}.

Public Response & Political Fallout

Zikalala responded by labeling the reporting a “political smear campaign,” defending his actions, and referring the case to the Public Protector :contentReference[oaicite:13]{index=13}. He claimed he had paused the appointment for due diligence and only resumed it after internal audit findings, while criticizing the IDT board’s governance failures :contentReference[oaicite:14]{index=14}.

Key Lessons & Recommendations

• Independent probes matter: Narrow internal audits cannot substitute for forensic investigations when high-level procurement and conflict allegations arise.
• Transparency is critical: Declaring “no wrongdoing” without comprehensive audit undermines trust and invites legal scrutiny.
• Conflict of interest must be managed: Malaka’s central involvement in the lease and her own affidavit violated basic governance principles.
• Public Protector referral: The final arbiter remains independent oversight—pending the outcome of the Public Protector’s inquiry.

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Original report: AmaBhungane.