Zweli Mkhize Linked to R1.7bn UIF Investment in Bounty Brands, Money Missing
- In 2016 and 2018, Bounty Brands received an R1.7 billion investment from the Unemployment Insurance Fund
- Former Minister of Health, Zweli Mkhize, has been implicated in the investment, which has allegedly gone missing
- Two years ago, auditors found that only R2.7 million of the R1.7 billion investment was still in Bounty Brands' portfolio
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JOHANNESBURG - The Unemployment Insurance Fund (UIF) invested R1.7 billion in Bounty Brands in 2016 and 2018, but are concerned that the money has gone missing.
Bounty Brands distributes brands like Diesel and Vans globally. Zweli Mkhize, the former Minister of Health, has been linked to the company. Mkhize allegedly profited millions of rands after a trust he is part of, ZLM, did a deal with Bounty Brands.
According to News24, in 2020, auditors claimed that the investment is almost gone and may not be a going concern. This impairs the UIF's ability to fulfil its primary function, providing financial relief to South Africans who have become unemployed.
Source: Getty Images
Details of the UIF's R1.7 billion investment in Bounty Brands
Lawrence Mulaudzi, a businessman, allegedly gained R47.5 million in 2018 from advising the UIF to invest, Daily Maverick reports. The day after the deal was made, Malaudzi's business reportedly paid a transfer attorney R5.9 million for one of Mkhize's properties.
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In March 2020 it was estimated that the value of the UIF's R1.7 billion investment from 2018 was worth R2.7 million, which is the fair value of the investment. Two years later, the fund is concerned that the money might be gone.
Stefan Rabe, the CEO of Bounty Brands, could not confirm the current value of the UIF's investment, but said that its financial statements have been finalised and published. The UIF is currently being audited and therefore cannot share the value either.
Reactions to UIF investment in Bounty Brands
@PolitikalMampar believes:
"Zweli is a threat to Ramaphosa’s second term. That's what this is all about, not corruption."
@kt_padi said:
"A sad state of affairs. And I’m sure no one between Mulaudzi and Mkhize will ever see the inner walls of a prison."
@peterdevey shared:
"Ironic that Unemployment Insurance Fund money is invested in local businesses that distribute clothing and related accessories that are NOT manufactured in South Africa. SA employers and employees unwittingly supporting foreign economies."
@TheKleev remarked:
"At the end of the day, there will be zero accountability, no one will be fired and or prosecuted."
@Tony50419577 asked:
"Unbelievable. More taxpayer money down the drain. Another ANC looting scandal to be swept under that huge carpet. Cyril are you shocked?"
Ex-Health Minister Zweli Mkhize linked to new R6m corruption deal: "The rot runs deep"
In other news about Mkhize, Briefly News previously reported that disgraced ex-Minister of Health Zweli Mkhize has been fingered in more corruption following the highly-publicised Digital Vibes saga that led to him resigning from his post.
Widespread reporting revealed that the communications tender Mkhize granted to his close associates in September last year was worth R150 million. However, Mkhize's scalp was not the only to be taken as the suspensions also trailed several health department officials.
In the latest run of corruption exposes after a piece that appeared in the Daily Maverick, Mkhize has been connected to an R5.9 million corruption deal that involves the Unemployment Insurance Fund (UIF).
Source: Briefly News
