Deputy President Paul Mashatile’s son-in-law, Nceba Nonkwelo, has settled a long-running financial dispute with the Gauteng Partnership Fund (GPF) following the collapse of a housing development project in Johannesburg.
Nonkwelo reportedly owed the state-backed agency R12.6 million after a planned development in Highlands failed to materialise. The matter has now been resolved through a settlement agreement, with the GPF confirming that the agreed funds have been paid.
The repayment brings an end to a dispute that has attracted significant attention because of Nonkwelo’s relationship to Mashatile. However, the final amount paid has not been made public because the settlement contains confidentiality provisions.
Nonkwelo confirmed that the matter had been resolved but declined to provide details about the agreement. He said he was contractually prohibited from discussing the terms and considered the dispute concluded.
The controversy dates back more than a decade, when companies associated with Nonkwelo received funding from the GPF for a housing project in Highlands, Johannesburg.
The development was initially planned as an affordable housing project before its scope was changed to student accommodation.
Between 2013 and 2017, three loans worth approximately R37 million were approved for the development. According to court documents, about R7.2 million of the available funding was drawn down, while approximately R5.4 million in interest was later calculated. Despite the financing, no housing development was completed and the site remains undeveloped. difficulties, including large rock formations that had reportedly not been identified during the original geological investigations. The discovery created additional challenges and contributed to concerns about whether the development was financially viable.
An investigation into the GPF’s handling of the project subsequently raised questions about the manner in which the loans were approved and managed. Investigators questioned the due diligence conducted before the funding was granted and whether sufficient investigations had been carried out on the site.
The investigation also raised concerns about the decision to continue providing financial support after difficulties had already emerged. It found possible negligence involving both Nonkwelo Investments and the GPF, while also noting that some relevant documents could not be located, making it impossible to reach definitive conclusions on whether every procedure had been followed.
The project also became controversial because the largest loan was approved in March 2017, during the period when Mashatile was serving as Gauteng’s human settlements MEC. However, the investigation did not establish that Mashatile personally approved the loans or committed wrongdoing. It also did not find evidence of an actual or perceived conflict of interest involving GPF officials who dealt with the applications.
After the project failed to progress, Nonkwelo and the GPF entered into a settlement agreement in 2023. When the payment did not materialise, the agency issued demands and eventually approached the High Court in 2025.
The parties later entered mediation, which resulted in the agreement now being honoured.
Although the repayment resolves the financial dispute, questions remain about how the original funding decisions were made and why additional money was committed to a project that was facing significant challenges.
About the Author
