Luthuli’s grandson probed over trust funds

The suspended KwaZulu-Natal Royal Household Trust chief executive and grandson of former ANC president Chief Albert Luthuli, Nkululeko Luthuli, is expected to face criminal charges when the inquiry into his alleged misuse of public funds has been concluded.

The trust was rocked this week by a financial scandal involving Luthuli, which has led to government officials fearing it will unravel from within if the scandal is not dealt with immediately.

“The trustees have been instructed to lay criminal charges against him should he be found to have transgressed,” said an official close to the royal household.

The trust’s chairman, Judge Jerome Ngwenya, confirmed that Luthuli, 30, was suspended with immediate effect pending a full inquiry into the administrative as well as financial affairs of the trust.

Ngwenya told The Sunday Independent on Friday that they were expecting the preliminary report of the inquiry in the next two weeks and a full report a month from now.

The inquiry will be led by advocate Philani Jafta.

“We might exceed that period, depending on what the inquiry yields,” added Ngwenya.

Ngwenya said the allegations against Luthuli surfaced last weekend.

“His majesty’s call for accountability and clean governance refers to all institutions. It is therefore important that the trust, which looks after the affairs of the Zulu royal household, heeds his message and is among the first to act promptly where there is a need to do so.

“While we cannot pronounce on the guilt or otherwise of our CEO, it is important that a fair and due process be put in place urgently,” Ngwenya said.

Ngwenya said the allegations levelled against Luthuli were serious enough to warrant his immediate suspension.

“The trust remains operational and its business is not affected by the suspension of the CEO.

“We take the king’s call for accountability seriously,” he said.

The Sunday Independent understands that Ngwenya had been presented with a dossier containing affidavits detailing irregularities into the trust’s finances, which prompted him to act immediately.

Luthuli had been tasked with overseeing the trust’s R12 million budget. He had been the trust’s sole signatory since 2010.

A chief financial officer and six other staff members were appointed in September last year.

“Since 2010 he has been the only signatory, so you can see he has been running the show all by himself. There’s huge pressure on the government to act on such rot eating away at state coffers.

“The trustees have been directed to lay charges with the SAPS,” said a member of the trust, who did not want to be named.

He said if the trustees failed to act, the incident would cast doubt on the ability of the royal household to be firm on fund management.

In his speech at the opening of the KwaZulu-Natal legislature this week, King Goodwill Zwelithini called upon all citizens to ensure there was social and government accountability in both public and private sectors.

“We should all ensure that every cent goes to the intended beneficiary and projects,” the king said.

The Royal Household Trust was established in 2009 in terms of a 2007 legislature act to manage the affairs of the Zulu royal household and to ensure its financial independence.

It provides for the royal household, including expenses for the queens and the educational needs of King Goodwill’s children.

It falls under the Royal Household Department in the KwaZulu-Natal office of the premier.

Luthuli, who holds a bachelor of commerce in economics, earns just over R1 million a year as trust CEO.

He is also the former CEO of the Chief Albert Luthuli Foundation, a foundation set up by his family.

The trustees appointed last year include deputy chairman and royal household spokesman Prince Mbonisi Zulu, businessman Don Mkhwanazi, former MPL, adviser to the premier and provincial chair of the planning commission Cyril Xaba, Bonizwe Yaka, Ishwar Ramlutchman and Nkosi Lily Mpungose. - Sunday Independent