Mhlathuze Water, a regional water utility in northern KZN, became the latest state entity to feature the now-familiar cast of characters from South Africa's corruption landscape. The Hawks arrested the CEO and 13 co-accused for R37 million in fraud involving inflated contracts, fictitious procurement, and diversion of funds meant for water infrastructure.
But the most revealing aspect of the Mhlathuze Water case is not the fraud itself — it is who was placed on the entity's board. Dudu Myeni, former SAA board chair who was declared a delinquent director by the courts for her role in the destruction of South African Airways, was appointed to the Mhlathuze Water-uMhlathuze merger board. A court had to intervene again to force her off.
Myeni's presence on the Mhlathuze board exemplifies the revolving door of state capture. Individuals who have demonstrably failed — or actively looted — one institution are simply moved to another. The court declaration of delinquent directorship, which should have permanently barred Myeni from any board, was initially ignored by those responsible for appointments. It required yet another court order to enforce what should have been automatic. The question is not why corruption persists — it is why the system actively reinstalls the people who cause it.