South Africa: Peggy Nkonyeni Faces Old Corruption Charges Over Hospital Water Scam

  • Nkonyeni appeared in court on Thursday because the state says she took money to help a company win government work.
  • The businessman who owned the company pleaded guilty in September and must pay millions of rands back to the state.

The state has pulled former KwaZulu-Natal finance MEC Peggy Nkonyeni out of retirement to face old corruption charges.

Nkonyeni, who is 64, appeared in the Pietermaritzburg High Court on Thursday. She faces charges over the Amigos hospital scam from her time as health MEC in 2006.

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The state dropped the charges against her and Mike Mabuyakhulu in 2015. The state faced heavy criticism when it closed the case. It then quietly removed the main lawyer, Ncedile Dunywa.

Nkonyeni and Lindelihle Mkhwanazi are now back on the list of accused people.

The state says they helped Intaka Holdings win contracts to supply water purifiers and oxygen machines to provincial hospitals.

The company belonged to Uruguayan businessman Dr Gaston Savoi.

The state says Nkonyeni, Mkhwanazi and Rowmoor Investments agreed to take two payments of R500,000 from the company between August 2006 and November 2007.

This helped Intaka Holdings make over R100-million from the government.

Savoi pleaded guilty to four counts of fraud and six counts of corruption in September 2024.

The court gave him a R5-million fine or 10 years in prison. He received another 10-year sentence he does not have to serve unless he reoffends.

Savoi must also give back R60-million to the state and pay another R15-million for legal costs.

Nkonyeni and Mkhwanazi will return to the Durban High Court on 11 June 2026. Mkhwanazi needs time to organise his lawyers and get police statements.

The rest of the group will appear in court on 23 July 2026.

The other accused are Busisiwe Nyembezi, Victor Ntshangase, Alson Sipho Buthelezi, Sandile Kuboni, Kuboni Shezi Incorporated and Rowmoor Investments.

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