Joburg Market officials paid R3m to stay at home

The Johannesburg skyline pictured at night.

The Johannesburg skyline pictured at night.

Published Oct 24, 2017

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Johannesburg - The controversy-ridden Joburg Market early this year paid out a staggering R25 million in settlement fees for three senior officials on suspension for alleged corruption.

Shockingly, R18.1m was for legal fees associated with the case. The discovery is contained in Joburg’s unaudited annual financial statements for the 2016/17 financial year, seen by The Star. The amount is highlighted in the document as part of R70m “wasteful and irregular” expenditure incurred by the metro during the year under review.

The three officials are understood to be Sanjay Dubru, Ncaphayi Diko and Thivhulai Mbedzi. They all faced charges relating to alleged breach of procurement processes.

It is understood that the three were reinstated in February, after being on suspension for over a year. Two of the officials had been on suspension for a year-and-a-half, while the third employee stayed at home for 12 months.

The three together pocketed R3.1m in settlements. They were reinstated after they successfully challenged their suspensions at the Commission for Conciliation, Mediation and Arbitration, and reached a settlement with the City of Joburg.

This was later conceded by the city in a response to The Star.

“The City of Joburg’s core administration was concerned by the high escalation of legal costs incurred in respect of the dismissal processes, and initiated the engagement with the employees, which culminated in the settlement agreement between the parties,” said city spokesperson Sekgabo Kedijang.

He added that the legal costs had amounted to R18.1m. This was “inclusive of all disciplinary hearings related to all staff identified to be disciplined by the board”.

The figure also included costs of the review application of the award of the tender. The Star was unable to establish which contract was affected by the process.

Alleged corruption at the Joburg Market appears to be rampant, with various investigations under way.

The city entity is also characterised by an unstable leadership. It has had four chief executives - three acting - since 2014.

Former boss Simangele Sekgobela was dismissed in December 2015 following a disciplinary inquiry into irregular procurement processes.

A month after the officials were reinstated, three other officials from the market were arrested after the city’s investigations department uncovered “massive” corruption, theft and fraud involving more that R7.5m stolen from the market.

In a statement at the time,

mayor Herman Mashaba

said a report presented to

him had detailed allegations

of how three officials at the

market, and a similar number

of suppliers, defrauded the

city by misrepresenting the

amount of various goods

received via the market’s bid

processes. 

The entity, in its 2015/16

annual statement, said its

board had been made aware

of procurement irregularities.

These “necessitated

investigations, which resulted

in the appointment of forensic

investigators and legal

counsel”. 

It is unclear if these

related to suspension of the

three officials.

There were various internal

and external investigations

relating to procurement

irregularities, fraud and

maladministration highlighted

by the auditor-general last

year in the market’s annual

report.

Efforts to get comment

from the three officials were

unsuccessful by the time of

publication.

The Star

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