SA politico faces fraud charges over jazz fest flop

Former MEC Mike Mabuyakhulu is facing the charges relating to the failed SA version of the North Sea Jazz Festival. The festival, which was meant to be held in 2013, cost taxpayers a whopping R28m ($2.3m) without a single note played.

The other accused in the case include Durban businessman Mabheleni Ntuli, the former head of the provincial department of economic development and tourism, Desmond Golding‚ the owner of Soft Skills Communications, Ceasar Walter Mkhize, and Nothando Zungu.

The embattled Mabuyakhulu was arrested on Wednesday and appeared in the Commercial Crimes Court in Durban together with his co-accused, where he pleaded not guilty to the charges and was released on R50 000 bail by magistrate Christobel Mazibuko.

According to the indictment‚ the festival concept was proposed to the KZN department of economic development and tourism by Netherlands-based company MPM Productions and International Projects. The company was exclusively established to bring the North Sea Jazz Festival to South Africa.

The Sowetan reported that the department supposedly agreed to fund the festival on condition that the Dutch company form a joint venture with Soft Skills Communications.

In its submission, the KZN Hawks Serious Corruption Investigation Unit said the agreement was allegedly changed by the department and Soft Skills Communications without the knowledge of the Dutch partners.

Upon discovering the changes, Netherlands-based Mojo Concerts BV‚ which is the intellectual property owner of North Sea Jazz Festival‚ cancelled the agreement with Soft Skills Communication.

Hawks spokesperson Capt Simphiwe Mhlongo told The Sowetan that the cancellation of the agreement meant that the jazz festival could not be held as scheduled. Despite the termination of the agreement, R28.5m had already been paid to Soft Skills Communications.

“The investigation confirmed allegations of corruption and possible collusion leading to the arrest of the six suspects,” Mhlongo said.

Mabuyakhulu is no stranger to controversy. A few years ago he faced corruption and racketeering charges which were later withdrawn.