Mayor to probe R18m PPE corruption allegations at Joburg Property Company
Johannesburg - The City of Joburg mayor, Geoffrey Makhubo, is in receipt of a report from the Special Investigating Unit (SIU) on allegations of financial misconduct and corruption at the Joburg Property Company (JPC), especially related to the Covid-19 response expenditure.
A senior official at the JPC allegedly awarded personal protective equipment contracts irregularly, costing the municipality at least R18 million in fruitless and wasteful expenditure last year.
The tender in question was awarded to four companies for deep cleaning and sanitisation services during the national state of disaster in light of the Covid-19 outbreak, according to the SIU report.
The report, which was received this month, has been referred to Economic Development member of the mayoral committee Lawrence Khoza; the acting city manager, Floyd Brink’ the chairperson of the JPC board, Moeketsi Rabodila; and the acting chief executive of JPC, Ruby Mathang, for consideration and action.
“The report has adverse findings and we have directed the board of JPC to provide us with a clear and concise approach to ensuring we discipline and charge those employees identified to have acted improperly,” said Makhubo.
Makhubo said several other investigations, including the city’s own internal audit of Covid-19 procurement and expenditure, are ongoing and “as and when outcomes become available”, these will be reviewed and actioned.
“The City’s government of local unity has consistently stated its commitment to act against those that may be fingered in malfeasance, impropriety, corruption and fraud.
’’The board of the JPC have undertaken to act decisively and in line with its fiduciary duties in ensuring accountability and consequence management in matters emanating from the investigations undertaken,” he said.
Makhubo said he would continue to play oversight in the process on behalf of the city and residents of Johannesburg, “who expect nothing but full accountability”.
He added that it was imperative that the city complies with the Municipal Finance Management Act, specifically with regards to financial misconduct procedures.