The Special Investigating Unit (SIU) has secured judgment by the Special Tribunal ordering Mr Minenhle Makhanya, the former architect and principal agent responsible for the security
upgrades at former President Jacob Gedleyihlekisa Zuma’s private residence in Nkandla, KwaZulu-Natal, to pay the National Treasury R147,269,444.06.
This amount represents the financial loss suffered by the National Department of Public Works (DPW) as a result of unlawful conduct in the project.
The judgment, delivered on Wednesday, 26 August 2026, found that Makhanya’s appointment and subsequent conduct in the Nkandla upgrades were unlawful and resulted in significant financial loss to the State.
The investigation into the Nkandla security upgrades was authorised in terms of Proclamation R59 of 2013, which directed the SIU to investigate allegations relating to the procurement of goods, works and services by DPW for the project in a manner that was not fair, equitable, transparent,
competitive and cost-effective, as well as to recover any financial losses suffered by the State as a consequence of unlawful conduct.
Appointment not in accordance with procurement requirements
Following Mr Zuma’s election as President of the Republic, he became entitled to State-funded security and protection for himself, his family and his private residence.
The South African Police Service (SAPS) and South African National Defence Force (SANDF) subsequently conducted security assessments and identified additional security measures,
including healthcare-related requirements and other installations and services required at the residence.
Based on these assessments and the necessary approvals, DPW initially determined the cost of the project at R27,893,067.46.
The amount was authorised, and funding was secured by the department’s Planned Maintenance Budget Committee on 11 August 2009.
As the implementing agent, DPW was required to procure goods and services in accordance with applicable procurement laws, regulations and policies.
Mr DJ Rindel, who was designated as the project manager, appointed Makhanya as the principal agent responsible for implementing the project. Makhanya’s letter of appointment was issued on 27 August 2009.
The Tribunal found that his appointment was not preceded by a competitive bidding or open tender process, that there was no emergency or other lawful justification for bypassing the
applicable procurement requirements and that Makhanya was not listed as a supplier with DPW.
Ballooning costs
The SIU investigation found that, following his appointment, Makhanya authorised and oversaw the implementation of works and improvements that went beyond the security measures
identified by the SAPS and SANDF.
As a result, the cost of the project escalated from the approved R27,893,067.46 to R216,010,478.24.
Among the structures and works Makhanya authorised were tunnels with an exit and three lifts, 20 additional accommodation units for SAPS and SANDF members, a laundry facility, 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 in the high-security area, which came to a total of R68,506,106.
The Tribunal found that Makhanya authorised and certified payments for structures and services that were not required by the security assessments.
He also failed to obtain the necessary written approvals for variations and over-designs, certified payments above market-related costs and approved payments for work that had either not been performed or had not been properly accounted for.
It is also alleged that Makhanya authorised payments to Moneymine Investments 310 CC and Bonelena Construction and Projects (Pty) Ltd in the sum of R54,825,513, contrary to the relevant provisions of the contract, which required him to safeguard DPW’s interests under the building contract.
Breach of statutory and professional obligations
The Tribunal found that Makhanya breached several statutory, professional and contractual
obligations, including those arising from the Architectural Profession Act, the applicable Code of Professional Conduct, DPW’s Manual for Architects and the Joint Building Contracts Committee (JBCC) agreement.
The Tribunal rejected Makhanya’s defences, including his contention that he acted within the
scope of his authority by implementing the instructions and decisions of the SAPS and the SANDF. The Tribunal also rejected his arguments relating to prescription and time-barring of the claims.
“It is regrettable that the first defendant (Makhanya) stands alone as the person against whom the Special Investigating Unit has launched action, as he clearly did not act alone in allowing the costs of the upgrade at Nkandla to balloon. However, as architect and principal agent, he bore the
responsibility to ensure that the second defendant (DPW) did not incur fruitless and wasteful expenditure,” Judge K. Pillay J said.
The judgment further declared invalid and of no force and effect the contract concluded by or on behalf of the then Director-General of DPW in relation to Makhanya’s appointment.
The Tribunal also ordered Makhanya to pay the costs of the legal proceedings, including the costs of two counsels.
The SIU accepted Makhanya's submission, reducing the total claim by R7.8 million, which Mr Zuma repaid as a contribution for non-security-related upgrades. This amount will be deducted from the total deemed just and equitable for repayment by the Tribunal.
The Tribunal’s orders form part of the SIU’s ongoing efforts to implement investigation outcomes, recover public funds lost through corruption and strengthen consequence management across
the public sector.
In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU will refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority for further action.
Enquiries:
Selby Makgotho
Spokesperson: Special Investigating Unit
Cell: 083 718 6128
Email : SIUMedia@siu.org.za
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