The Special Tribunal has ordered former Nkandla project architect and principal agent Minenhle Makhanya to pay the National Treasury R147.27 million over losses incurred during the controversial security upgrades at former President Jacob Zuma’s private residence in Nkandla, KwaZulu-Natal.
The judgment, delivered on Wednesday, 26 August 2026, found that Makhanya’s appointment and conduct in the project were unlawful and contributed to significant financial losses suffered by the National Department of Public Works and Infrastructure (DPWI).
The Special Investigating Unit (SIU) said the amount of R147 269 444.06 represents the financial loss suffered by the state as a result of unlawful conduct linked to the project.
The investigation was authorised under Proclamation R59 of 2013, which directed the SIU to investigate allegations that procurement for the Nkandla project had not been conducted in a manner that was fair, equitable, transparent, competitive and cost-effective.
Following Zuma’s election as President, he became entitled to state-funded security and protection for himself, his family and his private residence.
Security assessments conducted by the South African Police Service (SAPS) and South African National Defence Force (SANFDF) identified measures considered necessary to secure the property, including healthcare-related requirements and other installations.
DPWI initially estimated the project at R27.89 million, with the funding approved through its Planned Maintenance Budget Committee in August 2009.
However, the Tribunal found that Makhanya was appointed as principal agent without a competitive bidding or open tender process.
There was also no emergency or other lawful justification for bypassing procurement requirements, while Makhanya was not registered as a supplier with DPWI at the time.
According to the SIU, the project subsequently expanded well beyond the security measures identified by the security agencies.
The cost increased from the approved R27.89 million to R216.01 million.
Among the additional works authorised were tunnels with an exit, three lifts, 20 additional accommodation units for SAPS and SANDF members, a laundry, visitors’ lounge, basement parking for the clinic, VIP parking, a fire pool, the relocation of 4.5 households, internal roads, air-conditioning and extensive landscaping.
The SIU said these non-security-related structures and works amounted to R68.5 million.
The Tribunal found that Makhanya authorised and certified payments for structures and services that were not required by the security assessments. It also found that he failed to obtain the necessary written approvals for variations and over-designs.
In addition, the Tribunal found that payments were certified at costs above market-related rates and that payments were approved for work that had either not been performed or had not been properly accounted for.
The SIU also alleged that Makhanya authorised payments totalling R54.83 million to Moneymine Investments 310 CC and Bonelena Construction and Projects (Pty) Ltd, contrary to contractual provisions requiring him to protect DPW’s interests.
The Tribunal found that Makhanya breached statutory, professional and contractual obligations arising from legislation governing the architectural profession, the applicable professional code of conduct, DPWI’s Manual for Architects and the Joint Building Contracts Committee agreement.
It rejected his argument that he had acted within his authority by implementing instructions and decisions from SAPS and SANDF.
The Tribunal also dismissed arguments concerning prescription and the time-barring of the claims.
Judge K. Pillay said it was regrettable that Makhanya was the only person against whom the SIU had launched proceedings, given that he “clearly did not act alone” in allowing the project's costs to escalate.
However, the judge said Makhanya, as architect and principal agent, had a responsibility to ensure that DPWI did not incur fruitless and wasteful expenditure.
The Tribunal consequently declared invalid the contract concluded by or on behalf of the then DPWI Director-General for Makhanya’s appointment.
Makhanya was also ordered to pay the costs of the legal proceedings, including the costs of two counsel.
The SIU said it accepted Makhanya’s submission relating to a R7.8 million reduction in the claim. The amount had been repaid by Zuma as a contribution towards non-security-related upgrades.
That amount will therefore be deducted from the total amount deemed just and equitable for Makhanya to repay.
The SIU said the judgment forms part of its broader efforts to recover public money lost through corruption and maladministration and to strengthen consequence management in the public sector.
It added that any evidence of criminal conduct uncovered during its investigation would be referred to the National Prosecuting Authority for possible further action, in accordance with the Special Investigating Units and Special Tribunals Act of 1996. – SAnews.gov.za
