“It’s only in SA where hosting a relative constitutes surrendering the ownership of that property to that relative, or amounts to a kickback,” says businessperson Sbu Shabalala, dismissing allegations he had bought property on behalf of deputy president Paul Mashatile.
Shabalala was responding to questions from Business Day over allegations that he had bought a house in Durban while acting as a front for Mashatile.
Shabalala and Mashatile are related by marriage, as their life partners are twins. Shabalala’s last high-profile and public role was as CEO of then JSE-listed IT group Adapt IT — a company he founded and later sold.
His fiancée, Khumo Bogatsu, is a minority shareholder in the consortium that was recently awarded the multibillion-rand licence to operate the national lottery, via her stake in an outfit called Bellamont Gaming.
She owns Bellamont Gaming alongside Moses Tembe — who is related to Shabalala. Media reports by investigative journalism agency amaBhungane have suggested that the proximity of Shabalala and Tembe to Mashatile might have swayed the lottery in Sizekhaya Holdings’ favour.
“That is absurd and downright defamatory. What you’re implying is that I fell in love with my fiancée over a lottery tender she owns less than 2% in, and years before the said contract was even at play,” Shabalala said.
“This is an insult. It is misogyny disguised as journalism. It would seem unthinkable in the newsrooms for women to be in business in SA. Journalists must be given room and space to do their work. But it’s not your right to pry into my personal life and phantom a smoking gun over the lottery tender where none exists, except in your head,” he said.
Amabhungane established that Mashatile had often socialised with Shabalala and often frequented Tembe’s Durban property as a guest.
“There has never been an attempt to hide the relationship I have with Mashatile. As is common in any family setting, Khumo and I occasionally host her twin sister, Humile, and her husband at properties I own. These interactions are purely personal and familial in nature,” Shabalala said.
“Reporting on something does not automatically make it an exposé. But when people are hell-bent to paint one as corrupt, I guess everything goes.”
He added that the Durban property had been used by several other friends and family members, “as have my other properties”.
“To reduce my property to a conduit of corruption without a shred of evidence is an assault on my integrity,” he said.
“I am currently building a diversified family office, focusing exclusively on private sector investments, including commercial properties and private equity. I have no involvement, directly or indirectly, in the public sector.”
Tembe, who chairs Sizekhaya, referred Business Day to a statement he released last week, distancing the consortium from wrongdoing.
“Despite her relationship with the deputy president through marriage, advocate Bogatsu is an ordinary South African who is fully entitled to pursue any legitimate commercial interest,” reads the statement.
“The checks and balances that the National Lotteries Commission and the country have in place were applied to ensure that there was no impropriety.”
He said his erstwhile position as the president of the Durban Chamber of Commerce and his current role as chair of the KwaZulu-Natal Growth Coalition, have compelled him to interact with leaders across the political spectrum “in their homes and in my own”.
“Not one of these political players and decision-makers — be it MECs or ministers — would ever attest to me discussing personal business interests.”
Trade, industry & competition minister Parks Tau in June awarded Sizekhaya the fourth licence to operate the national lottery. The consortium pipped seven other bidders to the podium, in what the National Lotteries Commission said was a close race between Sizekhaya, incumbent Ithuba, Wina Njalo and Ringela.
Tau told MPs he would look into allegations of Mashatile’s links with Sizekhaya.
“Sizekhaya welcomes scrutiny intended to shed light on who we are and what we bring to the table,” Tembe said in his statement.
“But we decry the baseless accusations, malicious rumour mongering, mudslinging and personal attacks on shareholders and directors that have grown in volume since we were announced as the winners.”
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