/ 14 July 2011

Protector rips into Mahlangu-Nkabinde over leasing scandal

Protector Rips Into Mahlangu Nkabinde Over Leasing Scandal

In her report on the leasing of two building for the South African Police Service (SAPS) in Durban, Public Protector Thuli Madonsela has found serious fault with the department of public works for allowing the deals to go through.

Police commissioner Bheki Cele escaped direct censure, although the protector did not let him off the hook entirely.

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At a briefing at the National Press Club in Pretoria on Thursday, Madonsela named Public Works Minister Gwen Mahlangu-Nkabinde as the primary culprit, in her damning report on the improper leasing of state buildings on Thursday.

Madonsela investigated how the department of public works came to sign leases on two buildings — Sanlam-Middestad building in Pretoria and Transnet Towers in Durban, both of which belong to controversial businessman Roux Shabangu, and both of which were intended to serve as police headquarters.

The protector found the lease agreements entered into by the department of public works and Shabangu’s company Roux Property Fund to be “fatally flawed”.

Squared off
The Sanlam-Middestad building should have been rented at a market value of R40 a square metre but was signed in the lease at R135 a square metre.

The 10-year leases are valued at R604-million and R1.116-billion respectively.
“The department acted recklessly entering into this lease — it is improper, unlawful and constitutes serious maladministration,” Madonsela added.

The remedial action included in the report advises President Jacob Zuma to consider taking action against Mahlangu-Nkabinde and requests the minister to explain herself to Cabinet within 60 days.

“I expect President Zuma to do the right thing,” Madonsela said.

It was previously established by the Mail & Guardian that SAPS commissioner General Bheki Cele was closely involved in the awarding of the leases, however Madonsela more or less exonerated him, pointing out he did not actually authorise the leases himself.

Madonsela did however say that Cele was not honest in his involvement in the lease, saying his claims on the matter were “clearly incorrect”, and pointing out that Cele had made sure all tenders worth over R500 000 were handled directly by his office.

Further remedial action in the report suggests the Police Minister Nathi Mthethwa take urgent steps against all SAPS officials who are found to have broken the law.

Under fire
The release of the report comes days after Madonsela herself faced allegations of corruption, for work carried out by a company she owned during her tenure as commissioner at the South African Law Reform Commission (SALRC).

The claims proved to be baseless, with several senior politicians — including President Jacob Zuma – coming out in support of the office of the Public Protector and all investigations undertaken by her office.

The origins of the accusations are still unclear and it is now widely regarded as smear campaign aimed at smearing Madonsela’s name.

Days Madonsela was accused of corruption, it emerged that head of the Special Investigation Unit, Willie Hofmeyr — who has been investigating cases of high-level corruption, was also being probed.

In March Hofmeyr told MPs the unit was probing 16 departments and public entities for fraud, graft and maladministration.

Hofmeyr’s investigation arose out allegations that he was involved in the improper acquisition of furniture for his offices.