Illustrative image: Johannesburg MMC for Group Corporate and Shared Services Sithembiso Zungu. (Photo: Gallo Images / Papi Morake) | Johannesburg skyline. (Photo: Gallo Images / Leon Sadiki) 
Johannesburg Mayor Dada Morero appointed a councillor involved in three reported instances of construction mafia activities as the MMC for Group Corporate and Shared Services on 7 August. This appointment is significant, as the role influences procurement involving billions of rands and all entities where most of the city’s budget is spent and which are at the heart of the city’s collapse.
Sithembiso Zungu is a councillor for Ward 122 (Lehae, Zakariya Park, Vlakfontein and Eikenhof/Jackson/Freedom Park).
Reports have alleged that his Vlakfontein business forum allegedly disrupted the refurbishment of the Inkululeko Yesizwe Primary school in Vlakfontein and the Lehae housing project in Lenasia.
Earlier this year, Zungu was named in court papers against an alliance of business forums and taxi associations which disrupted the repair of an essential part of the Golden Highway, according to court papers.
City Press reported the Hawks are investigating Zungu, who was also sentenced to two months in prison for contempt of court. By ANC step-aside rules, he should not have been appointed and should have been made to step aside by Morero.
‘Hard done by’
Zungu says he is innocent and is staying in his role.
“I refute it,” said Zungu in an interview with Daily Maverick. He said that the school refurbishment was delayed by contractor issues and by a soured relationship with the Gauteng government, which is responsible for education and had terminated the school contract.
“I want anybody to come forward and say, ‘this is what I gave the councillor’. I feel hard done by. I’m sad,” said Zungu about the range of reports.
He said learners were still in poorly maintained container classrooms. Zungu said he had been employed as a “social facilitator” by the contractor on the Lehae project and was chairperson of the Vlakfontein business forum until he was elected an ANC councillor in 2019. He sent Daily Maverick screenshots of copies of his payments from the housing contractor at Lehae.
Zungu has denied his role in the disruptions, but in 2020, he was sentenced to two months’ imprisonment for contempt of court. This was after a business forum ignored an interdict to allow the Lehae affordable housing project to continue amid extortion attempts, according to numerous media reports. He also denied this in his interview with the Daily Maverick.
Earlier this year, Zungu was embroiled in a third disruption. These WhatsApp messages appended to court papers seeking an interdict against the Golden Highway repair disruptions show he was aligned with the group which stopped construction on numerous occasions. Zungu denies it.
Trouble brewing
Gauteng Premier Panyaza Lesufi has long promised the province will be a building site of improved infrastructure to move the people and goods that keep the country’s economy going. The Golden Highway serves as a vital link for people to commute to work and access work opportunities, as well as for moving goods.
The company Lonerock was appointed to fix a portion between Ennerdale and Eldorado Park, which had fallen into severe disrepair. It had barely started work when an alliance of business forums and taxi associations started disrupting its work.
The contractors reported the stoppage to Gauteng Transport, who called a site meeting, including councillors and cops.
“During the meeting, Councillor Zungu requested SAPS (the police) to leave, stating that Councillors wanted to engage only with GDRT (Gauteng Transport), the Engineer and the contractor. Following SAPS’ departure, Councillor Zungu expressed frustration, stating the councillors felt blindsided by the meeting and viewed it as an act of intimidation,” says an affidavit on the interdict papers.
Lonerock said that it lost R224,000 a day, and within months it lost more than R4-million. Contractors bill these costs back to the government, which means the business forum/construction mafia costs fall back to the public purse.
The company stated that road signs were stolen and provided a detailed explanation of how frequent stoppages hindered the road’s repair and rehabilitation. It also revealed that a manager had been warned of violence.
According to court papers, the manager “was informed that trouble was brewing and warned to be careful as the individuals involved in the matter were dangerous and would make good on their threats to life and property”.
Less than two months later, the construction mafias and taxi associations organised a protest of about 120 people outside the main site. They said they were local small and medium-sized businesses and demanded that the site be evacuated. The threats forced staff to leave as community liaison officers (appointed by the government) and security warned of serious injury.
The papers do not state that Zungu was part of this protest, but the WhatsApp messages show he was part of the lobby and protests on site.
“I’ve never been interdicted by Lonerock. I work well with Lonerock,” he said. A Lonerock representative said he would comment in future.
City’s purse strings
Zungu’s elevation to an MMC puts him in a powerful position over the city’s R89-billion budget, of which about 40% is spent procuring goods and services. This role also influences the appointments to city entity boards such as City Power, Johannesburg Water, Pikitup, the Johannesburg Roads Agency and others.
Johannesburg is the only metro government run by a quasi-privatised system of governance where entities run by boards deliver services and get the biggest chunk of the budget. These boards are stacked with cadres from whichever party is in government, or as is now the case, with a mix of cadres from coalition partners.
The coalition is managed by divvying up positions on boards or within the entity’s executives, and these positions are then used to funnel contracts to cadre-linked companies across parties.
The DA’s deputy caucus chief in Johannesburg, Chris Avant Smith, said the party was “gravely concerned” by Zungu’s appointment.
“We condemn the mayor’s blatant disregard for the residents of Johannesburg who deserve an executive that is beyond reproach and who will ensure that residents’ needs are fulfilled without the taint of corruption.”
Zungu’s spokesperson, Mxolisi Mdodana, said, “MMC Zungu has not interfered with any processes and is committed to serving the City of Johannesburg with pride and dignity.” DM