PP’s report clears Public Works in Tiso Blackstar building dispute

Tiso Blackstar building at Park Town, where the Judicial Commission of Inquiry into State Capture is being held. Picture: Nokuthula Mbatha/African News Agency (ANA)

Tiso Blackstar building at Park Town, where the Judicial Commission of Inquiry into State Capture is being held. Picture: Nokuthula Mbatha/African News Agency (ANA)

Published Feb 8, 2021

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DURBAN – The Department of Public Works has been partially cleared of wrongdoing relating to the awarding of a lease agreement/tender to Tiso Blackstar Group.

In a report released by the Public Protector, it was established that despite the department not following the competitive bidding process, it did follow a negotiated procurement process.

The PP was alerted to the matter in November 2018.

The complainant claimed that the department flouted supply chain management processes as per the Public Finance Management Act.

Tebogo Anthony Kaulela said Tiso Blackstar was not regarded as a historically disadvantaged enterprise nor owned by historically disadvantaged individuals; that the lease agreement in question related to the property Hillside House in Parktown, Johannesburg, and that the building housed the Judicial Commission of Inquiry into State Capture.

According to the PP’s report, it was found that while the department did not follow the competitive bidding process when procuring accommodation for the commission, it did follow a negotiated procurement process.

“The negotiated process was in line with Treasury Regulation 3 of 2016/17 and the deviation in that regard, together with the reasons thereof, was approved by Treasury as justifiable and in line with the prescribed regulation.

“The Public Protector concluded therefore that the conduct of the department did not constitute improper conduct as envisaged in the Constitution and maladministration as contemplated in the Public Protector Act. In the circumstances, the investigation was closed,” the report noted.

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