/ 24 July 2011

Police lease blunder could cost R1-billion

Police Lease Blunder Could Cost R1 Billion

Public works minister Gwen Mahlangu-Nkabinde’s blunders in the police lease scandal could cost taxpayers more than R1-billion, the Sunday Times reported.

According to the newspaper Mahlangu-Nkabinde faced legal demands from Nedbank and businessman Roux Shabangu over the compromised deal to shift police headquarters to the Sanlam Middestad building in Pretoria.

Nedbank agreed last year to loan Shabangu R220-million to buy the building, which he planned to lease to the police in a R614-million deal, struck with police National Commissioner Bheki Cele without following tender process.

Nedbank is now demanding to be repaid its loan, while Shabangu has started legal proceedings to recoup R1-billion from Mahlangu-Nkabinde.

Nedbank is demanding Mahlangu-Nkabinde pay up after her department committed itself in writing to honour the lease shortly after she took office in November. – Sapa