An engineer at Mhlathuze Water, whose board was chaired by former SAA head Dudu Myeni, used the bank accounts of a company that provided JoJo Tanks to Nkandla to move funds, the state capture commission of inquiry has heard.
This was the evidence of a witness identified only as Mr X, who continued to testify in-camera before the commission on Tuesday.
The commission has focused its spotlight on the alleged looting of Mhlathuze Water.
Mr X is the owner of a company called iSibonelo, which supplied the JoJo tanks to Nkandla in terms of an order from Mhlathuze Water.
The engineer mentioned, identified as a Mr Majola, was a friend of Mr X.
In one instance, the commission heard, a Mhlathuze Water supplier deposited funds into iSibonelo's bank account.
"When the money is in my account it would be indicated on my phone. I would then phone him (Mr Majola) and tell him that the money has been deposited into my account," Mr X said.
"If he was busy, he would tell me to wait on further instruction on what to do with the money," Mr X added.
Under instruction from Mr Majola, Mr X then made several payments to an engineering company referred to as Sifezakonke.
An amount of R150 000 was paid to the engineering company on February 2, 2015 under the Mr Majola's instructions, the witness testified.
Another R850 000 was paid the next day, also allegedly under Mr Majola's instructions, as well as R1m on March 9, 2015.
"Did you know this company?" evidence leader advocate Kate Hofmeyr asked the witness.
"I do not know what this company was. This was under Mr Majola's instruction. iSibonelo did not do any work or services with this company," he responded.
On Monday, the commission heard that Mr X's company received more than R3m between October 2015 and February 2016 from a corporation owned by Myeni's son, Thalente.
Mr X is expected to testify that these payments "had nothing to do with business".
"The in-camera witness will say that your mother Ms [Dudu] Myeni called him after those deposits were made and instructed him what to do with the money. She asked that cash be withdrawn and made available to her, and she asked for other monies to be paid to the Jacob Zuma Foundation," Hofmeyr previously stated to Thalente Myeni.
While Thalente Myeni acknowledged that the payment was made, he could not recall what services were provided by iSibonelo to merit a payment of more than R3m.
The inquiry continues.