The SAPS will respond to a Public Protector Thuli Madonsela’s report on alleged maladministration in the procurement of leases for police office space early next week.
They needed more time to study the document, which was released on Thursday, Major-General Nonkululeko Mbatha, spokeswoman for national police commissioner General Bheki Cele said.
In her report, Madonsela recommends President Jacob Zuma should act against Public Works Minister Gwen Mahlangu-Nkabinde for failing to co-operate with a probe into two controversial building leases for the police.
Madonsela notes alleged maladministration and improper and unlawful conduct by the Department of Public Works and the SA Police Service in the leasing of office space in Durban. The 10-year lease was worth R1.8 billion. In a brief statement, Zuma’s office acknowledged receipt of Madonsela’s report.
“The Presidency will accordingly study the report and allow the due processes of its internal discussion, and thereafter President Jacob Zuma will comment on the report,” the statement read.
Madonsela urged Zuma to take urgent action against Mahlangu-Nkabinde.
The minister signed leases on two buildings – the 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.
Madonsela’s call, made in Pretoria on Thursday, came hot on the heels of her demand that Police Minister Nathi Mthethwa take action against Cele.
Mahlangu-Nkabinde has 60 days to report back to the cabinet about why she chose to defy Madonsela’s investigation and recommendations, especially as the minister’s predecessor, Geoff Doidge, had slammed the brakes on both deals.
Doidge, renowned for combating numerous dodgy Public Works tenders, was responsible for initiating the multi-pronged probe by the public protector and the Special Investigating Unit (SIU) into the lease agreements with property tycoon Shabangu, who is a close friend of Zuma’s.
Should no action be taken, Madonsela has vowed to approach the cabinet to immediately investigate the parties concerned for acting out of accordance with the constitution, the Public Finance Management Act (PFMA) and Treasury regulations.
She pledged her support to advocate Paul Hoffman SC and Freedom Front MP Pieter Groenewald, who were the first to speak out about the scandal, saying: “Should they decide to go to court failing any action being taken against those highlighted in the report, I will stand by my findings.”
The Against The Rules Too report, regarding the lease of Durban’s Transnet Towers, comes after months of investigation by the public protector and the SIU.
The first report, released in February, into the lease of Pretoria’s Sanlam Middestad building, found that Cele’s actions amounted to misconduct and were unlawful and improper.
Over 10 years, the Middestad lease would have been valued at R641 million, while the Transnet Towers lease would have amounted to R1.16bn.
Madonsela said substandard buildings, which required major repairs, were hired at severely inflated market rental prices.
Madonsela said although the market-related rental price for the Transnet Towers was R40 a square metre, the lease agreement between the Department of Public Works (DPW) and Roux Property Fund was for R125.30 a square metre.
The Middestad building lease market-related price was R88 a square metre, but the lease was signed for more than R140 a square metre.
Madonsela said the minister had “failed to meet the requisite stewardship as was expected of her”.
“Her failure to co-operate with the investigation amounts to improper conduct.
“The conduct of DPW officials and senior police officials and all of those mentioned in this report are improper, unlawful and must be investigated.
“I am calling for Zuma to take action against Mahlangu-Nkabinde and for Mthethwa, to take action against all police officials implicated in this report, including Cele,” she said.
Madonsela said while Cele, who had identified both buildings, did not actually sign the leases, “he, in his capacity as the SAPS chief accounting officer, gave the DPW the necessary authorisation to proceed with the leases”.
Madonsela’s reports highlights how the SAPS failure to comply with the PFMA and Treasury regulations was unlawful; that the SAPS acted improperly in its involvement in the procurement process; was guilty of maladministration as it had not budgeted properly for the leases; and, how the SAPS had ignored warnings and advice from the DPW, “which the police regarded as an interference in its affairs”.
“Had the buildings been leased, it would have seen the state having to fork out millions in major refurbishments.”
Last year Cele bragged how he had saved the state an estimated R4bn by not having a new headquarters constructed.
“If I had signed that deal, which would have seen R4bn spent over four years, I would have been taken to the gallows and hanged,” he said at the time.
Department of Public Works spokesman Obakeng Modikwe was not available for comment.
Cele’s spokesman, Maj-Gen Mbatha, said: “The SAPS has noted the final report. Unfortunately a copy of the report was only provided to the SAPS less than two hours before it was provided to the media, and therefore the SAPS will release its official response early next week.”
Roux Property Fund, in a statement, said: “We are delighted with the public protector’s confirmation that the deviation from the required procedures was not due to any irregular relationship between the SAPS and RPF and that RPF should not be restricted as a service provider, as it could not be found that RPF obtained a preference on a fraudulent basis.
“The restriction would have been totally unfair, and met with legal action on our part.” - Pretoria News