Shabangu embroiled in new property row – report

2011-06-06 12:45

Property tycoon Roux Shabangu is facing legal action for apparently failing to pay almost R5 million to a steel supplier, the Sowetan newspaper reported today.

According to the report, Shabangu was ordered by the Pretoria High Court to pay Alert Steel R4,742,396.56 for building materials delivered to the Tweefontein police station in Mpumulanga by May 31.

Alert Steel had not been paid and was considering further legal action against Shabangu. He was quoted as saying: “I am not going to pay, because doing so would mean that I am building the police station from my own pocket.”

Two leases that Shabangu’s property company entered into were the subject of investigations by Public Protector, advocate Thuli Madonsela.

Last Friday the Mail and Guardian reported that Shabangu was linked to a R137 million lease for a building in the Pretoria CBD intended to house police watchdog, the Independent Complaints Directorate.

The Public Protector was also expected to complete a report into a building lease for the police in Durban, apparently involving Shabangu.

Earlier this year Madonsela found police Commissioner Bheki Cele guilty of maladministration when he gave the go-ahead to the public works department for the R500 million Middestad building lease in Pretoria.

Public Works Minister Gwen Mahlangu-Nkabinde was criticised for continuing with the Middestad lease after receiving legal advice not to do so.

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