amaBhungane | Mafia state: Richards Bay Minerals pushes back, but the war is far from over
Richards Bay's massive economic pull has lured multinationals, gangsters and political entrepreneurs into a toxic and deadly conflict.
This story is about organised crime, corporate vulnerability, political manipulation and how these all intersect. His short, violent and flamboyant life provides a window into a bigger story about politically connected mafias laying siege to businesses in Richards Bay – RBM in particular. In July 2008, RBM announced the signing of a Memorandum of Understanding for its 26% BBBEE Transaction.
In October 2018, Duvenhage was appointed MD and began confronting the volatile strands of violence, vested interests and corruption the company was enmeshed in. RBM said that, upon inquiry, it established an"ominous picture" of large sums of money directed to unspecified expenses, investments in third parties, loans and distributions of trust assets to non-beneficiaries.
To understand his role and how he got to be appointed we must rewind to the succession battle that gripped the Mbonambi clan, not coincidentally just as the as the massive benefits from RBM were poised to flow.It will also introduce us to Martin's business partner, Judia Mbuyazi, who was first mentor to, then rival, and finally victim of, the violence of Nkululeko Mkhize.In 2006, a year after his father died, Sibusiso Mbuyazi was appointed as Inkosi, or chief, of the Mbonambi clan.
In 2017, then-premier Willies Mchunu appointed Martin Mbuyazi as administrator of the tribe, pending the resolution of the succession dispute. Community leader Meshack Mbuyazi was gunned down in December 2019, shortly after attending a meeting with Zikalala. It also paid over R5.8 million to Inkosi Mkhanyiseni. The Inkosi did not respond to amaB efforts to seek his comment.
He was previously linked to a private security company and also worked for Cord Consulting, a politically connected business, as well as for the Network of Independent Monitors. Mchunu said Zulu king Goodwill Zwelithini later approached him about complaints that"I appointed a Greek person to run the affairs of the family". He told the king he followed due process and refuted claims that he had links to Mbuyazi beyond having worked with him as a violence monitor.
A family member of the assassinated Meshack Mbuyazi told AmaB that"people have been killed for money that was meant for the community". Let's now take a closer look at these"mafias" and where the infamous Nkululeko Mkhize fitted in on the criminal food chain.Product theft is another challenge for RBM, running into hundreds of millions of rands per year, but the miner is just one of the biggest among a host of companies being targeted in Richards Bay.
One source described him as"illiterate and angry" and another said he was"madly ambitious, ridiculously greedy." Part of the ceremony included public donations to the bridal couple, an ostentatious display of wealth that saw cash payments ranging between R5 000 and R100 000. Notable personalities attended and donated money. Among them was Ngizwe Mchunu, a staunch Zulu tribalist and ardent supporter of former South African president Jacob Zuma. Another guest was Black Business Federation boss Malusi Zondi, who contributed R20 000. Zondi was also photographed at the podium at Mkhize's funeral.
A private security company dug into Mkhize's background when he started applying for tenders at a big firm in Richards Bay. The Cetshwayo Business Chamber lists four directors: Biyela, Alpha Nxumalo, Henry Mpungose and Thabani Gcaba, apparently from the Gcaba taxi family.A veteran taxi operator described Vika Biyela and Mkhize as"Gcaba's boys".
Much of Mkhize's backstory only emerged after he was shot dead with his accomplice, former police officer Sabelo Cele, at the plush Zimbali estate about 40kms north of Durban."I know there are those who are here to celebrate his death. If you are here today and you've cried and grieved because you lost your family members at the hands of my brother, I want to apologise on his behalf.
But a local security company disputed his version. The post-mortem report and CCTV footage contradicted Mkhize's self-defence story. Later, a security guard on duty the night of the Lekos murder and two men who accompanied Mkhize were shot dead in separate incidents, eliminating potential witnesses against him.
They learned about Mkhize's links with Judia Mbuyazi, how Mkhize's power had grown and how the men fell out over business and a mutual love interest. Investigators were allegedly promised damning information about Mkhize from a forum member active around RBM. AmaB was reliably informed that on 19 December 2023, a complaint relating to defeating the ends of justice was opened in Richards Bay. Notes in the complaint file refer to task-team leader Zulu getting a call from Mkhwanazi demanding the handover of dockets.Mystery wealth
A source linked to RBM described the three men as"a significant force" in the Kwambonambi Business Forum. Stolen minerals are exported, requiring a multi-layered network of players, including truckers, corrupt port and customs officials, freight forwarding companies and companies that sell the stolen product offshore.
But the detailed accounting available for the R18 million paid out on 25 August 2021 to the Mbonambi trust is perhaps partially instructive. Dlamini responded via her lawyer to amaBhungane's questions, saying,"Due to the private and confidential nature of the matters involved, our client is constrained from disclosing specific details. This is to ensure compliance with legal provisions concerning the protection of individual privacy and the avoidance of harm. Additionally, we deny any misleading implications from the questions posed.
It appears that the empowerment partnership with Ivysea – representing the local entrepreneurs – was unwound, perhaps at the instance of RBM, and all the Ivysea directors, including Martin Mbuyazi, resigned.The benefits flowing to individuals from the community trusts and from empowered procurement deals appear to be dwarfed by the impact of direct theft.
In the Anton Piller court documents, various companies and individuals are named, including: Cosco Shipping; Aerotex Commodities; Seletha Industrial and Hydraulics; Opulent Minerals; Tobun and Tobun; and Sambhic Resources. Duvenhage said that despite the drop in thefts, criminal kingpins operating syndicates still had to be caught."It is critical that we get to that level. Some of our frustrations stem from how we are stepping up that ladder to the top,"Werner Duvenhage is central to RBM's attempts to win over the local communities and its fightback against violence and theft, but he is media-shy and cautious about providing personal insight into the local dynamics and his own strategy.
The company said that"at Richards Bay Minerals, the safety and security of our people and the host communities remains our priority, and our core motivation for sustained pushback on crime.
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