Former Nkandla project architect and principal agent Minenhle Makhanya has been ordered to personally repay the National Treasury more than R147 million after the Special Tribunal found that his conduct contributed to the unlawful escalation of the controversial security upgrade project at former president Jacob Zuma’s private residence.

The Tribunal on Wednesday ordered Makhanya to pay R147,269,444.06 to the National Treasury, representing the financial loss suffered by the Department of Public Works as a result of unlawful conduct linked to the project.

The judgment marks a major recovery victory for the Special Investigating Unit (SIU), which has been pursuing accountability over one of the most politically contentious public spending projects in post apartheid South Africa.

The SIU investigation was authorised under Proclamation R59 of 2013 to probe allegations that the procurement of goods, works and services for the Nkandla upgrades had not complied with principles of fairness, transparency, competitiveness and cost effectiveness.

At the centre of the Tribunal’s findings was Makhanya’s appointment as the project’s architect and principal agent.

The Tribunal found that his appointment was not preceded by a competitive bidding or open tender process.

There was also no emergency or other lawful justification for bypassing procurement requirements, while Makhanya was not even registered as a supplier with Public Works at the time.

Makhanya was appointed by project manager DJ Rindel on 27 August 2009.

The project had initially been approved at R27.89 million after security assessments by the South African Police Service and South African National Defence Force identified measures considered necessary to protect Zuma, his family and private residence following his election as president.

But the project would eventually balloon to R216.01 million.

The SIU found that Makhanya authorised and oversaw work that went beyond the security requirements identified by the security agencies.

Among the additional works were tunnels with an exit, three lifts, 20 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 cost of these non security related structures and works alone 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.

He also failed to obtain the necessary written approvals for variations and over designs.

According to the findings, he certified payments above market related costs and approved payments for work that had either not been performed or had not been properly accounted for.

The Tribunal further found that Makhanya authorised payments totalling R54.82 million to Moneymine Investments 310 CC and Bonelena Construction and Projects despite contractual provisions requiring him to safeguard Public Works’ interests under the building contract.

His conduct, the Tribunal found, amounted to breaches of statutory, professional and contractual obligations.

These included obligations under the Architectural Profession Act, the applicable professional code, the Public Works Manual for Architects and the Joint Building Contracts Committee agreement.

Makhanya had argued that he acted within his authority by implementing instructions and decisions from SAPS and SANDF.

The Tribunal rejected that defence.

It also rejected his arguments that the SIU’s claims had prescribed or were time barred.

In a pointed observation, Judge K Pillay said it was regrettable that Makhanya stood alone as the person against whom the SIU had launched action because he “clearly did not act alone” in allowing the cost of the Nkandla upgrade to balloon.

However, the judge said Makhanya, as architect and principal agent, carried the responsibility of ensuring that Public Works did not incur fruitless and wasteful expenditure.

The Tribunal also declared invalid and of no force and effect the contract entered into by or on behalf of the then director general of Public Works concerning Makhanya’s appointment.

Makhanya was further ordered to pay the costs of the legal proceedings, including the costs of two counsel.

The amount ordered by the Tribunal reflects a reduction of R7.8 million following a submission accepted by the SIU.

That amount relates to a contribution repaid by Zuma for non security related upgrades and will be deducted from the amount deemed just and equitable for Makhanya to repay.

The SIU said the judgment forms part of its broader efforts to recover public funds lost through corruption and maladministration and to strengthen consequence management in government.

The unit said any evidence of criminal conduct uncovered during its investigation would be referred to the National Prosecuting Authority for further action, in line with the Special Investigating Units and Special Tribunals Act.

The Nkandla saga has for years remained a symbol of controversy over the use of public money at the private residence of a sitting president.

The latest judgment now places a substantial financial liability directly on the former project architect, with the Tribunal finding that his professional and contractual responsibilities were not merely administrative but carried a duty to protect the State from unlawful and wasteful expenditure.

The SIU spokesperson Selby Makgotho said the judgment demonstrated the importance of pursuing financial recovery where public funds had been lost through unlawful conduct.

For the State, the R147.2 million order represents more than a financial recovery. It is also a significant consequence management outcome arising from a project whose costs escalated by almost R188 million from its original approved budget.