MK Party has rejected former police minister Bheki Cele’s allegations that alleged diamond dealer Louis Liebenberg finances the opposition party led by Jacob Zuma.
Cele testified before a parliamentary ad hoc committee on Thursday that Liebenberg, who faces fraud and racketeering charges, funds the party and paid R500,000 for a private prosecution case.
MK Party national spokesperson Nhlamulo Ndhlela called the statement “false and defamatory.”
“Cele’s allegations are entirely baseless and malicious. Mr Cele, a former police minister, had the power and duty to act on any such information if true,” Ndhlela said in a statement.
“His failure to do so exposes these claims as nothing more than reckless political posturing intended to mislead the public.”
The parliamentary ad hoc committee is investigating allegations of police corruption made by KwaZulu-Natal provincial commissioner Lieutenant-General Nhlanhla Mkhwanazi. The committee was established following Mkhwanazi’s July 6 televised briefing alleging political interference in police operations.
During his testimony, Cele described Liebenberg as an illegal mining kingpin involved in diamond operations. He claimed the MK Party supports Liebenberg during court appearances.
“He funds the MKP; he maybe funds Baba [Zuma] because he paid R500,000 for the private case to be taken to court,” Cele told the committee.
“He is currently in prison for diamond trafficking. He has appeared in court, and the MKP has been supporting him every day when he goes to court.”
Liebenberg was arrested by the Hawks in October 2024 alongside eight co-accused on multiple charges of fraud, racketeering, money laundering, and various statutory offenses.
The arrest was the culmination of a five-year investigation by the Hawks into an alleged R4 billion diamond investment scheme.
National Prosecuting Authority regional spokesperson Lumka Mahanjana said Liebenberg had registered 15 companies. His ex-girlfriend Magdelina Kleynhans and other family members or close relations served as directors.
Two companies, Tariomix and Forever Zircon, were allegedly involved in buying and selling diamonds. Social media and radio interviews were used to lure potential investors with promises of high returns over short periods using a cashless platform called AE Switch.
“The accused utilized the proceeds of the diamond investment scheme to purchase movable and immovable assets,” Mahanjana said.
The assets allegedly included two mines, various motor vehicles, Kruger rands, silver coins, and payments for Liebenberg’s wedding and honeymoon in Greece. Several immovable properties, including an office block, were also purchased.
“When some investors did not receive the promised payments, they became suspicious and reported the matter to the SAPS [SA Police Service], suspecting that they were defrauded.”
Liebenberg has known ties to former president Jacob Zuma, having given cows to Zuma in April 2023 and co-funding his private prosecution case against prosecutor Billy Downer and journalist Karyn Maughan.
Ndhlela said the MK Party viewed Cele’s conduct as “a desperate attempt to score cheap political favour at the ad hoc committee.”
The committee continues its hearings into allegations of corruption and political interference in the South African Police Service. The Madlanga Commission of Inquiry is conducting a parallel investigation into the same allegations.