Public Works Minister Thulas Nxesi updates the Parliamentary Portfolio Committee on Public Works on leases

Public Works Minister Thulas Nxesi has issued a stern warning to corrupt officials, saying they can run but cannot hide. The Minister said this when he was providing an update in Parliament, on the progress regarding current investigations on fraud and corruption in the department, as well as on disciplinary processes.

He has also revealed that the Special Investigating Unit (SIU) has completed its review of various irregular leases handled by the department, leading to disciplinary actions being taken against officials who are found to be on the wrong side of the law. These include the SIU recommending that the department approach the courts to invalidate the audited leases and sue for damages. The Minister says the State Attorneys have been approached to assist the department in this respect and that the department’s legal team was in the process of filing papers with the High Court.

The leases that have been audited include the building contract involving the South African Police Service (SAPS) and Roux Property Fund. The Minister says with regard to this case, last year the department applied to the High Court for a declaratory to nullify the lease agreement and that the department was waiting for a date from the Registrar of the Court to set the matter down for a hearing.

He adds that an application by Mr Sam Vukela, to amend his affidavit was rejected by the court with costs. Mr Vukela is the department’s Acting Director-General who was suspended in connection with his role during the procurement of the SAPS lease agreement. Minister Nxesi says a disciplinary hearing for Mr Vukela has been set for 26 to 29 September 2012.

The Minister said that criminal investigations in a case involving Mr Vusi Mashiane - a Director: Property Management at the Pretoria Regional Office was still underway. Mr Mashiane was served with charges relating to lease agreements entered into, in contravention of the supply chain management policy.

Minister Nxesi has also revealed that the disciplinary hearing of Mr Thabo Moagi – who acted as Portfolio Manager at the Johannesburg Regional Office has been completed and the department was awaiting the outcome from the chairperson. Mr Moagi and Mr Desmond Simamane (who also acted as Portfolio Manager at the Johannesburg Regional Office) were charged with acts of misconduct including having a corrupt relationship with a landlord, who leased properties to the department on behalf of client departments.

The Minister said that Mr Simamane resigned when disciplinary proceedings started. He however adds that criminal investigations against the two employees and the landlord have been completed and that criminal cases of fraud and corruption against the three parties have been registered with the SAPS.

Minister Nxesi says the Auditor-General has also conducted a sample audit of leases and that the department was awaiting receipt of the report. He says the department is auditing the balance of the current leases. “The review process will be intensified with the acquisition of more resources with the aim of recovering from all landlords who benefited from this corruption,” said the Minister.

He says the objectives of this exercise include:

  • a forensic audit to establish lease irregularities
  • a physical verification of the condition, extent, occupation and usage of leased properties to seek evidence of maladministration, fraud and corruption.

“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,” concluded Minister Nxesi.

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