Businessman’s sweet deal with Ezemvelo

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Businessman’s sweet deal with Ezemvelo

April 15 2013 at 02:38pm
By Tony Carnie


And, to alleviate an accommodation crisis at the University of Zululand, Ezemvelo has also turned over one third of its tourist chalets at Umlalazi Nature Reserve to students for 10 months of the year at a cost of less than R60 a day per student (about 16 percent of the normal tourist rate).

Details of the low-rate deals came to light after queries from The Mercury. Ezemvelo confirmed it was renting Thurlow House, a former VIP guest lodge in Midmar Nature Reserve near Pietermaritzburg, to rags-to-riches businessman Thabo Mhlongo.

Since acquiring a five-year lease on Thurlow House in 2010, at a monthly rental of about R1 600, Mhlongo and his wife, Massie, have converted the 12-bed lodge into a conference and wedding venue.

Starting out as a gardener almost 30 years ago, Mhlongo built up a formidable business empire after establishing Thabo’s Antiques, an antique furniture restoration business which became a popular feature of the Midlands Meander.

Since then, he has expanded into property investment, mining and other enterprises. Data searches indicate that Mhlongo’s business interests include Ishnana Holdings, Ishnana Mining Resources, Ishnana Hybrid Control Systems, Safarmex Medical Services, Canton Trading, and Africa Trade and Far East.



Mhlongo was reported to have donated R1 million to the ANC during its recent 101st anniversary fund-raising dinner in Durban.

Thurlow was the original farmhouse on land flooded to create Midmar Dam in the late 1960s and was converted into a VIP lodge. Before Mhlongo took over, Thurlow had fallen into disrepair and required renovation. The current rent is R1 767 a month.

Mhlongo did not respond to phone and e-mail queries, but his wife confirmed that Ezemvelo had alerted her to media enquiries about the Thurlow deal.

“It was advertised and we tendered for it. There is a legal document between Ishnana Holdings and Ezemvelo… There is nothing hidden,” she said. The property and swimming pool needed extensive renovation.

Responding to queries on whether R1 767 was a fair rental, Ezemvelo said: “Considering that Ishnana had to first invest more than R400 000 in the property we are happy with the rent amount we are receiving, particularly because Ishnana has injected so much money which has increased the value of this once dilapidated property.”

Ezemvelo rejected suggestions that Mhlongo’s wealth and political profile could have played a part in the lease award: “We looked at the Ishnana profile more than the profile of the owner. The tender was awarded in 2010, long before the (ANC) donation you are referring to was made.

“We followed proper tender procedures… and we were not in any way influenced by Mr Mhlongo’s profile.

“The tender proposal goes through various adjudication committees before the tender is awarded.”

Meanwhile, at Umlalazi Nature Reserve at Mtunzini, Ezemvelo has agreed to provide at least four of the 12 tourist log cabins to Unizulu students for 10 months of the year.

Whereas each four-bed unit is usually let to tourists at a daily rate of R340 an adult (R300 low season), the students would each pay a daily rate of R53.

“The University of Zululand approached Ezemvelo to assist with accommodation. Umlalazi Resort always had a low occupancy rate during low season (around 20 percent). We realised that if we accepted the offer from the university we would increase the occupancy rate to more than 50 percent during the low season.

“We then agreed to let the university use our four units for 10 months a year. The students use their bedding and cutlery. The agreement further stipulates that during peak season, the students are to vacate the units so that we can rent them out to other visitors.”



On whether historic links between Ezemvelo chief executive officer Bandile Mkhize and the university played any role in the arrangement, Ezemvelo said: “Your first sentence about Dr Mkhize’s close connections to the university has no bearing on any decisions taken involving the University of Zululand.

“Ezemvelo would have gone with this arrangement even if another tertiary institution had approached us. The decision was driven by profit margins as opposed to sentiments as you seem to suggest.”

tony.carnie@inl.co.za

The Mercury