Covid-19 procurement scandal

In July 2020, during the COVID-19 pandemic, Diko took a leave of absence from the Presidency pending the outcome of an investigation into her husband's involvement in a state contract.^[9] The Sunday Independent alleged that her husband was a director of a company, Royal Bhaca Projects, that had been awarded state contracts to provide the Gauteng Department of Health with personal protective equipment, at an inflated price of R125 million. Diko's husband said that Royal Bhaca had cancelled the contract and had never received any payment from the department.^[9] The scandal was inflamed by allegations that the Dikos were close to Bandile Masuku and his wife Loyiso; Masuku was the Member of the Executive Council for Health in Gauteng and therefore the political head of the relevant department.^[8] Diko maintained her innocence.^[10]

Diko was replaced by Tyrone Seale in an acting capacity while the Special Investigating Unit (SIU) investigated the allegations.^[9] The SIU ultimately found that R43-million worth of contracts had been awarded to Royal Bhaca irregularly and at inflated prices.^[10]

Disciplinary processes

While the SIU investigation was still ongoing, the ANC subjected Diko to an internal disciplinary process through its provincial disciplinary committee, which in April 2021 found her guilty of bringing the party into disrepute.^[11] The disciplinary committee instructed her to "step aside" from her position as a member of the Gauteng ANC's Provincial Executive Committee, pending the conclusion of the SIU investigation. While the committee had no authority over her employment at the Presidency, it also recommended that she "voluntarily and with a discussion with the employer, in the interest of the ANC, extend [her] leave in the presidency until the SIU concludes its investigation".^[11]

Simultaneously, Diko was subject to a government disciplinary process in her capacity as an employee of the Presidency, arising from the SIU's concern that she had failed to disclose certain financial interests as required by public service regulations. According to the Presidency, as of January 2021:

The SIU has reported that while the corruption component of the investigation is ongoing, the SIU has thus far not obtained any evidence pointing to Ms Diko’s involvement in the awarding of two contracts by the Gauteng Department of Health to Royal Bhaca or in respect of the irregularities identified in respect of such awards. During its investigation, the SIU did, however, identify a concern regarding Ms Diko’s duty to disclose all her financial interests.^[12]

The government disciplinary process concluded in August 2021 and Diko was served with a written warning for her non-disclosure offence.^[13] The Presidency said that she was on maternity leave and would "not return to the position of Spokesperson to the President" but that she would return "to a different position in the public service".^[13][14]

Aftermath

Diko did not return to work at the Presidency; Tyrone Seale continued to act as presidential spokesperson until a permanent replacement, Vincent Magwenya, was appointed with effect from 1 June 2022.^[15] The Daily Maverick reported that when she returned from maternity leave in October 2021, she was likely to be appointed as a deputy director-general at the Government Communication and Information System.^[10]

At an ANC provincial elective conference in July 2022, Diko was re-elected to her seat on the Provincial Executive Committee of the Gauteng ANC.^[16] In December that year, at the ANC's 55th National Conference, she was elected for the first time to a five-year term on the party's National Executive Committee. Her candidacy was supported by the leadership of the ANC Youth League^[17] and she received 1,439 votes across the 4,029 ballots cast, making her the 28th most popular of the 80 candidates elected to the committee.^[18]