Public Protector Thuli Madonsela allegedly committed fraud while she worked for the South African Law Reform Commission (SALRC), the Star reported on Wednesday.
The paper said that companies owned by Madonsela were allegedly paid R1.8-million three years ago by the SALRC while she was a full-time commissioner, according to “independent sources”.
Responding to the claims, Madonsela told the Star she had never concealed her company from her employers. She said her company was never paid more than R500 000 for the assignments it carried out for the justice department.
“I did work on the transformation of the judiciary, gender mainstreaming and the legal service charter … All of this did not reach R1.8-million,” she was quoted as saying.
According to the newspaper, “several” unnamed police sources said her arrest was imminent. Police national Commissioner General Bheki Cele’s office did not comment.
Madonsela was currently finalising reports about contracts the South African Police Service entered into to lease the Sanlam-Middestad building in Pretoria and Transnet Towers in Durban for R500-million and R1.1-billion respectively.
The Sunday Times in June reported on a leaked version of the document.
Madonsela released her first report on the Pretoria lease in February this year. In the second report, she made damning findings against Cele, Public Works Minister Gwen Mahlangu-Nkabinde and officials in their departments.
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A startling feature of the protector’s report is a list of irregularities common to both deals, starting with discussions between the police and property vendor Roux Shabangu, the Mail & Guardian reported on June 24. For example:
- The report referred to paperwork indicating Cele had identified both Sanlam-Middestad and Transnet Towers for police accommodation, although he denies this;
- Shortly before the police identified the buildings, Shabangu signed purchase agreements for both of them;
- In both cases, the public works department chose to negotiate exclusively with Shabangu rather than to invite competing bids;
- The department failed to record this deviation from process and did not notify the national treasury and the auditor general, as it is legally bound to do;
- The size of the actual buildings directly affected the building size the police said they required;
- Both buildings were to be leased at a rental far higher than the market rate;
- In both cases, because no funds had been allocated in the police’s leasing budget, money had to be moved from the police’s operating budget;
- Shabangu contacted both police and public works officials “and is alleged to have put pressure on them in regard to the finalisation of the procurement process””.
In her findings, Madonsela said Cele’s conduct was “improper, unlawful and amounted to maladministration”. – Sapa and Staff reporter