Tender Linked to Deputy President's Sons Nearly Doubles to R91 Million
The value of a Gauteng provincial government tender awarded to two companies with close links to Deputy President Paul Mashatile's sons has nearly doubled, with new figures revealing payments and outstanding fees of just over R91 million. This represents a significant increase from the original R49 million previously reported. The latest figures were made public by DA Gauteng spokesperson on health Jack Bloom, who received the information in a response to a question he filed in the Gauteng Provincial Legislature.
The two companies, Ngwato and Manzi Group (NMG) and Modipadi Nokaneng, were contracted to maintain fire suppression systems at Gauteng hospitals. In July, News24 reported that the companies had been paid R36.4 million and were owed a further R12.6 million, for a total of R49 million. However, a response from Health MEC Nomantu Nkomo-Ralehoko, dated 1 September 2025, has contradicted these figures. The new information shows that R46.6 million has already been paid and just over R44 million is still owed for "services rendered by the service provider".
A Web of Connections and Dubious Payments
The two companies are part of a complex network of friends and business partners, including Deputy President Mashatile’s sons, Thabiso Mashatile and Tinyiko Mvelase, as well as Taletjo Nala Mahlakoana and two sisters, Lefentse and Thato Nokaneng.
News24 previously revealed that Mashatile’s sons had played critical roles at NMG. Despite attempting to distance themselves by resigning as directors, a prior investigation showed they remained involved in the day-to-day management.
The latest financial breakdown shows a notable shift in payments between the two companies. While NMG was previously believed to have been paid R15.8 million and owed R2.9 million (R18.7 million total), the new figures suggest the company was paid R17.9 million and is owed about R94,300. Modipadi Nokaneng, meanwhile, has been paid R28.7 million and is owed R43.9 million, as opposed to the previously believed R20.5 million paid and R9.6 million owed.
The contracts and payments have raised serious questions, with Netwerk24 first reporting that some of the payments were for questionable services, including the rental of a fax machine at a Pretoria mortuary, renovations at an unknown location, and repairs to water systems at South Rand Hospital.
Working as One, Not as Competitors
Although the companies are, on paper, competitors, a News24 investigation showed that they were working together and even sharing resources. The two companies shared office space, first on East Road in Sandton and later on the 6th floor of the Capital Hills building in Benmore. They also shared staff for administrative and technical functions.
One former worker, who sparked a fresh investigation into the contracts after the companies laid off workers and failed to pay their settlements since September 2024, told News24 that they had to double-check whether documents needed to be branded under NMG or Modipadi Nokaneng. Technicians were also reminded which entity they were representing before site visits.
“We were never separated,” the worker said.
These former staff members are collectively owed R219,015 and have still not been paid. This revelation led Jack Bloom to express his suspicions. “It is suspicious that so much money has been paid to these companies, who are still claiming millions more,” Bloom said in a statement. He highlighted the apparent lack of competition, stating: “Although they are separate entities, the companies apparently share staff, resources and office space. The [health] department says they ‘continue to render services to different entities’.”
The response from the health department also revealed that Modipadi Nokaneng had been paid to install fire suppression systems at Charlotte Maxeke Hospital, which suffered significant damage from a fire in April 2021 that was later determined to have been arson. However, MEC Nkomo-Ralehoko noted that the systems installed by the company were not in the area of the hospital where the fire broke out.
Bloom said he would now ask follow-up questions about the systems installed at Tembisa Hospital, where two fires damaged parts of the administration building earlier this year. He plans to continue his probe into why the companies were paid such large sums of money while "hospital fire prevention needs drastic improvement." Not one of Gauteng’s 37 public hospitals is compliant with occupational health and safety legislation, with fires cited as the biggest risk.
Denial and Unanswered Questions
Mashatile and Mahlakoana have previously stated through their attorney that they “could not reasonably be expected to comment on the affairs” of NMG since they had both resigned as directors. They maintained their conduct "was in line with the ethical and fiduciary responsibilities of directors" and accused News24 of "being part of a concerted campaign to smear and damage" their reputations.
The companies maintained that they won the bids fairly and lawfully and were paid for services provided to the Gauteng health department. However, what exactly those services were remains unclear.
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