The National Economic Development and Labour Council (Nedlac) has refused to clear thousands of rand deposited into its account by the wife of its former head Herbert Mkhize after the latter was accused of fleecing the organisation of tens of thousands of rand.
Nedlac said in a report tabled in Parliament with audited financial statements, the R168 172 might be related to the forensic investigation against Mkhize.
Mkhize was the special adviser to Minister of Labour Mildred Oliphant when the scandal broke two years ago.
Nedlac said it would not touch the money deposited by Mkhize’s wife until the investigation has been concluded.
“The amount of R168 172 was deposited in to the Nedlac bank account by Mrs Mkhize The amount has been disclosed under other payables as there are no supporting documents to clear it, also due to the fact Mrs Mkhize was never recorded as a debtor of Nedlac,” said Nedlac.
“It is assumed that the deposit might relate to the undergoing forensic investigation matter, this deposit has not been paid back to Mrs Mkhize due to the fact that the forensic investigation matter is still under investigation by the South African Police Service and the National Prosecuting Authority,” it said.
In 2015 it was reported that Mkhize had allegedly misused funds of Nedlac when he was executive director a few years before. It was alleged he used the funds to pay for personal items.
At the time it was reported that Mkhize had spent up to R1 million of Nedlac funds buying personal items including groceries and clothes.
Opposition parties were up in arms and called for his head. In the Nedlac annual report in Parliament it said it hoped the R168172 deposited by Mkhize’s wife would be cleared soon. It has classified the funds under long-term borrowings.
“Long-term borrowings of R168 172 was previously classified as short-term borrowings, however it has been reclassified to long-term borrowings as the matter arose in 2015 and as at March 2017 it is unlikely to be resolved within the next 12 months,” said the report.
The labour portfolio committee is expected to discuss the Nedlac annual report when Parliament reconvenes.