Deputy President Mashatile's Son-in-Law Embroiled in Controversial R28m Property Purchase & R7m Gauteng Loan Scandal

In an era where political figures are under increasing public scrutiny, the lavish expenditures and business dealings of those associated with South Africa's Deputy President Paul Mashatile have raised eyebrows. The latest revelation involves his son-in-law, Nceba Nonkwelo, and a R28.9 million transaction involving a luxurious mansion set in the prestigious suburb of Constantia in Cape Town.

Nceba Nonkwelo, framed in the narrative as the central figure in this complex tale, acquired the property through Bilcosat—one of his companies—last year. The act was reminiscent of the purchase of a R37 million abode in Waterfall, Johannesburg. But beyond the patina of elite real estate dealings, there is an underlying story of financial obligations and governance questions: Nonkwelo owes a hefty sum of R7 million to the Gauteng Partnership Fund (GPF).

The GPF, entrusted with the mission to fuel the development of accessible rental housing, finds itself at the centre of controversy. The agency, operating under the auspices of the Gauteng Department of Human Settlements, handed out three loans to Nonkwelo’s company between 2012 and 2017/2018. The investigation, assigned to GMI Attorneys, dissected the transactions and, while not specifying wrongdoing by Mashatile, pointed out serious governance missteps within the GPF's operations.

The twisting tale unfolds further with the probe initiated by Gauteng MEC Lebogang Maile, following a series of explosive News24 reports. Nonkwelo Investments, it seems, partook in the GPF's Entrepreneur Empowerment Property Fund Program—designed to boost participation of underprivileged individual-owned businesses in the affordable housing and rental market. This initiative took a turn when Nonkwelo Investments' project spiralled out of budget due to escalating costs. The NHFC withdrew funding in 2016, prompting the GPF to shoulder the financial burden entirely.

Tipped as a potential affordable housing success story, the development project morphed into a student accommodation endeavour, despite the absence of a legal foundation for such a pivot. When it dawned on the powers that be that Nonkwelo Investments had fallen short on its loan obligations, a settlement agreement was carved out in 2021, where property sales would recoup the owed funds. However, efforts in this direction appear insufficient, given the GPF might not have fully leveraged available remedies to reclaim the debt.

The gravitas of this case does not conclude with a simple tale of non-payment but rather opens a Pandora's box on the weaknesses inherent in governance and oversight at this juncture of business and government interaction. Maile, addressing the repercussions, ensured that the department’s immediate attention focuses on bolstering operational integrity.

The SABC interview with Maile brought to light that investigators enjoyed free rein in deciding interviewees, and by that metric, Deputy President Mashatile was not deemed fit for questioning. This detail perhaps emphatically points to a broader theme in such scenarios—the quest for transparency and exact accountability is often eclipsed by the complex intersections of personal relationships and state functions.

The Gauteng Department of Human Settlements, despite the seemingly absolving nature of the findings, pledges to re-evaluate and strengthen the frailties uncovered. This ongoing saga underscores the need for rigorous financial governance and raises questions about the potency of South Africa's mechanisms to keep public-private engagements in check.