Aug 23, 2012
Flawed leases could cost govt billionsBack
Johannesburg|Nissan|Service|Desmond Simamane|Roux Shabangu|Siviwe Dongwana|Thabo Moagi|Thulas Nxesi|GTI
At a media briefing at Parliament, he said 3 000 leases were being scrutinised, 500 of which had been audited so far.
"Our intention is to try and recover what was lost," said Nxesi.
In addition, the department was paying dearly for advocates to help with legal proceedings against officials accused of graft.
Nine officials had been charged, while another six were soon to face the music.
"To corrupt individuals, I want to leave you with the following thought: You can run, but you can't hide. If you steal from the poor we are coming to get you," Nxesi said.
Cases under investigation included the controversial R1.7-billion police lease scandal with businessman Roux Shabangu.
The department had asked the high court to declare the lease agreement invalid.
"The state attorneys are handling this matter on behalf of the department. We are awaiting a date from the registrar of the court to set the matter down for hearing," Nxesi said.
Another matter involved the probe into former public works director general Siviwe Dongwana, which concluded that the reasons for his suspension were frivolous.
However, he would not be returning to his position.
After consultation with the minister of public service and administration, Dongwana's employment contract had been re-determined to be terminated on August 15 this year with a settlement payment, instead of July 2015.
Last year, it was reported Dongwana was the highest paid director general in government, earning around R1.5-million a year.
Among others, the disciplinary hearing of one of two officials from the department's Johannesburg region, charged with misconduct, had been completed.
"The officials (Thabo Moagi and Desmond Simamane) received payments for motor vehicles as corrupt payments from the landlord.
"In the case of Mr Moagi R285,000 for a Golf 5 GTI; in the case of Mr Simamane a Nissan double cab to the value of R566,250 and various payments to the value of R635,000," said Nxesi.
The two were acting as both portfolio managers and members of bid specification and evaluation committees.
"Many of these bids were not advertised. They negotiated with the said landlord owning 10 companies and awarded 28 leases of which four [properties] were never occupied despite payments being made for three years in respect of these leases," Nxesi said.
The outcome of Moagi's disciplinary hearing was expected soon. Simamane resigned before his hearing started.
Police were also carrying out criminal investigations into fraud and corruption against Moagi, Simamane, and the landlord, he said.
Edited by: SapaComment Guidelines (150 word limit)
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
This Week's Magazine
Today’s organisations execute projects within increasingly complex environments – particularly in the engineering sector. The ability to successfully execute these projects is what drives the realisation of successful projects and, ultimately, the achievement of...
South Africa’s distribution grid is a twentieth-century relic, which must be changed to serve the country’s modern electricity needs, says South African National Energy Development Institute (Sanedi) Smart Grid Programme manager Dr Minnesh Bipath. “What we are...
There is a disparity in government funding provided to integrated transport networks – bus rapid transit (BRT) networks ¬¬– and that given to conventional bus services, says Putco executive director Thys Heyns. “We have neglected and strangled conventional bus...
The Johannesburg Social Housing Company (Joshco) is building 502 rental housing units, valued at R200-million, in Dobsonville, Soweto, which are scheduled for completion in June 2016.
Automotive component manufacturer and distributor Metair is centralising its research and development (R&D) work in Turkey, in an attempt to bolster the company’s ability to produce affordable start/stop batteries. The new R&D centre is part of an expansion plan in...