R500m police HQ gets go-ahead

2010-12-07 08:23

Johannesburg - Public Works Minister Gwen Mahlangu-Nkabinde has honoured a controversial R500m lease for a building that will house the police's headquarters in Pretoria, The Star newspaper reported on Tuesday.

"We looked at whether there was a contract or not and discovered that there is one between the landlord [Roux Shabanga] and the department," she told the daily.

"We discovered that there is a binding contract between the department and Shabangu that was signed by the DG [director general].

"We then took advice from state attorneys and realised that we had to honour this legal agreement, or else we would be sued for the same amount and more in the courts," said Mahlangu-Nkabinde.

The Sunday Times newspaper revealed a few months ago that the deal had been signed without a public tender, prompting the Hawks and the Public Protector to investigate.

Special Investigations Unit spokesperson Marika Muller told The Star the probe was still continuing.

  • MaLemmer - 2010-12-07 08:39

    A very cunning stunt. Julius would be proud!

      The Spear - 2010-12-07 09:35

      OK. I did some research. The lease is for 10 years, meaning R50 million per year for a 18 storey building. The total square feet is unknown. We are renting out here in Abu Dhabi a 20 storey building for approximatel. R44 million a year. I believe rent here is very expensive. So yes, they probably overpaid a little but not by much depending on the facilities the building have to offer and the location.

      Gazza Boy - 2010-12-07 10:04

      Typical - should have known they were going to bungle this one through.

      Macho Mike - 2010-12-16 23:58

      You mean a stunning .unt

  • Pierre - 2010-12-07 08:41

    hehehehehehehehehehehehehehehehehehehehehehehehehehehe,what the......... hehehehehehehehehehehe

      UB40 - 2010-12-07 09:21

      Eish this eeessss too nice!!!......I agree WTF...........hehehehehe!!!! Why did we think this was anything different......

  • Ludorum - 2010-12-07 08:51

    And more pockets are lined with hard earned TAX money, just in time for Christmas. Ironic that the SAPS can spend money on new digs but not on crime fighting equipment in the Eastern Cape they have no cars to combat crime. But then again they had cars, and stuffed them up. No the next issue will be all the new furniture that needs to be bought with the accompanying computers and such. That money could have been well spend on the Forensics Department who need upgrades. I rest my case

  • Vuyo.Dreamer - 2010-12-07 08:54

    Then the person who signed it off without following proper procedure needs to be held accountable but then again we know this could easily be swept under the carpet, Oh my ANC why the smoke and mirrors, i don't wanna have to vote for the DA or COPE because you guys are going on like poephols, come right now, we can only take so many phuck-ups as your supporters.PS. i will vote for the DA if push comes to shove.

      chuck.foster.kane - 2010-12-07 09:31

      Hey Vuyo... history has taught us that liberation movements, no matter how heroic they were or how just their cause was, can not govern effectively. Instead they have to convince people that the challenges of government and the challenges faced by society are forever part of the struggle and their struggle credentials give them the right to rule forever. This is how they get away for decades with poor service delivery, self enrichment and abuses of power. AS William Gumede put it: Amilcar Cabral, one of the great thinkers of African liberation ideology, said the success of liberation-movements-turned-governments will depend on the personal moral behaviour, decency and honesty of their leading leaders and members.

      Guru - 2010-12-07 09:35

      Just curious - how much corruption do you need to convince you to use your vote responsibly?

      Max - 2010-12-07 09:49

      The ANC take us for granted sometimes, I am so confused not knowing whether to vote for the D.A I dont love. Maybe is time to reduce ANC's power a bit by not winning by "white wash" on the next election. But remember people are not stupid.

      Ixian - 2010-12-07 10:19

      @Max - Why would you love your political party. It's like a parent with a wayward child. The parent will always love the child no matter how they stuff up. But a political party is not something you should fall in love with. It should not be about black party / white party but about what they can actually deliver. The ANC is not delivering therefore change your voting option. Simple really.

  • Zolani - 2010-12-07 08:55

    And what action will be taken to the person who signed the contract.?

  • Carel Venter - 2010-12-07 08:56

    Ja, die Huidige Suid Afrika. LOL

  • AJ - 2010-12-07 08:58

    There's a surprise - not.

  • Goose - 2010-12-07 09:03

    Eish! So procedures were not followed as they thought no-one would they realise if they were sued the taxpayer would have to fork out. But let us guess....the corrupt officials who saw this contract went through will not be charged and sent to jail...because they are ANC cadres. Tell me Mr Zuma, what "rights" do the taxpayers in SA have? When will you be accountable?

  • Jack Kukard - 2010-12-07 09:03

    They get more clever by the day , but still dumb enough to be caught

      Sedick - 2010-12-07 12:15

      That's where you are wrong Jack. They know that if they are caught nothing will happen to them. Other than there buddies will be treated to parties, the ANC will be given more money, and they will have lot's of taxpayers money to spend.........

  • pop101 - 2010-12-07 09:04

    Geeez, I wonder what type of building I can build with R500 mil.

  • TALKSTRAIGHT - 2010-12-07 09:05

    Why are we not surprised.............. A buddy of a buddy of the Police Commissioner and the President........................!!! Just makes sense !!

  • chuck.foster.kane - 2010-12-07 09:08

    Can we please stop voting for these clowns now? Don't you see they are taking South Africans for a ride? This is why we are poor, why we have crime and why even other African countries are laughing at us.

  • jiamalunga - 2010-12-07 09:13

    Ohthey so do not have any control. No Pride, no nothing.... All they want is to see fat bank balances with little work. When are the voters going to wake up. Never I suppose...

  • Shadoz - 2010-12-07 09:13

    Wow what a shocker. Roux Shabanga is more than likely someones family member. Wonder how much long they gonna take us for a P... I mean they must think we are bigger idiots than they are.

      Sedick - 2010-12-07 12:26

      he is a friend of ZUMA.......

  • Peter - 2010-12-07 09:27

    How can there be a legal contract when Roux Shabanga was not the legal owner of the building when the "lease" was signed. He bought it afterwards for somewhere between R200m-R300m. I wonder if Cele is on a commission basis? MONEY IN THE WATER AGAIN. WHAT'S NEW WITH THIS BUNCH OF CLOWNS!!!!!!

      Leepile - 2010-12-07 09:44

      Nothing is new and that is precisely the problem. They aren't building anything new instead they are just spewnding public finances willy-nilly.Pigs at the trough!!!!

  • The Spear - 2010-12-07 09:30

    Can the reporters at least give decent details? How long is the lease period. What is the size of the building. What facilities does the building offer etc. Maybe this is a good deal? Itis impossible to say without having above details.

      Jan - 2010-12-07 09:49

      You clearly do not understand the issue here.

      Guru - 2010-12-07 09:52

      Its a 18 story building leased over a period of 10 years - here's the kicker though - the "landlord" bought the building only AFTER the lease agreement with Cele was signed for just 220mil – So for 500mil of taxpayers money SAPS could have bought that building and have money left for almost 1700 new cars for crime fighting – instead we pay premium for a lease and after ten years they have nothing to show – My book that’s a very bad deal

      The Spear - 2010-12-07 10:08

      Thanks for the info Guru. If the building was bought for R220 million then it would have been unlikely that the previous rent the building achieved was more than R25 million a year. So clearly the new landlord is scoring big time and will recover his investment in 5 years and double it in 9 years. So it is becoming clear that the overpayment is quit substantial. It seems they are paying twice the market rate. However we need the square meters of the building to be 100% sure. Any idea how much rent they are currently paying? The real problem here for me is that no tender process was followed. He should be fired. Any person that does soemething like this in a public or private company would have lost their job.

  • Carolyn - 2010-12-07 09:34

    No money for hospitals, schools, or houses for the poor, no money to assist the pensioners with a decent pension, but plenty of money to pay into someone else's pocket for a police station, where very little work is done. SHAME Goverment you should be burnt at the stake

  • Leepile - 2010-12-07 09:36

    This whole mess started because the ANC has it in for Judge Moseneke who is their current landlord and a friend of Thabo Mbeki, so in order to screw him over they they wanted to cancel his contract and replace it with Roux's and now when other responsible governments are cutting back on state expenses the ANC is signing R500m contracts out of spite,increasing the size of cabinet to accomodate all of its friends and recently creating posts for thelikes of the incompetent Gen(ret) Nyanda. i saw it coming, just like the uneducated Idi Ammin bankrupted his Uganda,beware the ides of March!!the signs are all there,his relatives are now billionaires(on paper anyways) his lawyer is signing mining deals(a proxxy perhaps?.Ya neh, THE END IS NIGH!!Will Jesus please come back sooner and put us out of our misery (Sout Africans aren't gonna do it despite overwhelming evidence of this governments corruption and incompetence)

  • hmheyman - 2010-12-07 09:52

    Now I want to know why are all the unions not striking now, here is a very good example of wasteful expenditure by government, making it impossible to foot the bill for the public service sector. Unions should be the ones keeping an eye on expenditure of government while it is happening not a few months later - this they could have stop with their masses. But let us wait until the matrics write exams again then they will strike again destroying the future of the youth in this country.

  • M Brand - 2010-12-07 09:52

    Police officers wait in excess of 6 - 12 months to receive their overtime pay while the SAPS have money to waste on expensive houses, exorbitant hotel accommodation and travel, and this type of nonsense for those in top SAPS positions! No wonder the people in lower ranks (that actually DOES the work) has absolutely no motivation OR respect for their employers.

  • clintonh - 2010-12-07 09:53

    It is reported that Roux Shabangu bought the building for R220m, two weeks after this "deal" was signed..... Even if there is no malicious wrongdoing, the DG should be fired for gross incompetance.

  • Adolf - 2010-12-07 09:56

    500mil? the Carlton center was SOLD for 33mil... is the lease period for a 100 years?

  • Francois - 2010-12-07 10:01

    I thought Roux Shabangu was an icon of the struggle and that he cares about the people. If that is the case, can he not give the people a discount or not sue them when they made a mistake. His right to the riches a per contract is valid, however whether it is moral is another question and then again he must now be considered as part of the capitalists- the oppresive upper class. Then somebody must pay personally for the increased cost for not following the procedure - that is a legal principle that if you cause people damage by your own inaction you are liable for the damage. We the people demand our money back and that the person who did this must either pay back or go to prison - next to Selebi.

  • - 2010-12-07 10:08

    LOL they are hear to serve and protect, who? looks like another African business deal making just a few better of. While our stations battle with out decent cars and equipment to be effective.

  • JDuvenhage - 2010-12-07 10:48

    What do you call a fish without an eye?

  • Bobinator - 2010-12-07 10:50

    I believe this was 'general' Cele's faux pas.

      MasterMind - 2010-12-07 14:11

      This was no faux pas - this was a deliberate calculated act of EMBEZZLEMUNT for the benefit of a select few AGAIN !!!!!

  • thewestern - 2010-12-07 10:50

    The whole process is flawed as the correct tender procedure was not followed. How can the signed contract be honoured? The DG should be held personally liable for this cost and not the tax payer!

  • Really?? - 2010-12-07 10:55

    Time to work even harder and hopefully ill fall into the next tax bracket so that i can contribute MORE to government, they spend so wisely... Wasnt there something about them wanting to Nationalise the banks?? Imagine the investments they would make with that type of additional financial power...

  • JDuvenhage - 2010-12-07 11:00

    'He said the procuring of new premises was not an unnecessary expense as the 18 floors had already been filled. Cele denied that he knew businessman Roux Shabangu, who owned the building. It was reported that Cele knew Shabangu and that they had met at a wedding prior to the agreement being signed. He said he was perturbed as to why a reputable newspaper would publish incorrect facts.' He was perturbed - That is a very big word. Yet suddenly it is being leased after the whole story went Oh So Quiet? Question - Why is the real name of Shabangu changed in the article? "Roux Shabangu, the owner of Roux Property Fund, has been implicated in a PricewaterhouseCoopers (PwC) forensic audit in connection with R10-million "irregularly" paid to him from the bank's contentious AgriBEE fund. The Hawks are investigating money paid to him and others from the Land Bank for projects for which there are few or no records." Oops. If he is a implicated in fraud all his assests should be frozen. Business deals put on hold and if found guitly, this would make the contract void would it not? I love SA!

  • dracolusus - 2010-12-07 11:10

    A legally binding contract they have to honour?!?!?! ARE YOU KIDDING?!?! The tender processes wasn't legal, the lease was signed before the leaser was the owner. The lease is worth more than double what the building is worth!!! This is a absolute joke. The fact that S.African's allow this and don't protest with chaos and riots, like they do when things not nearly as important affect them. I guess this will just be swept away like all the other blatant corruption in government.

      The Spear - 2010-12-07 12:17

      It is rediculous yes, but Cele had a Power of Attorney to sign the contract. The fact that Cele didn't follow procedure is not the landlords business. He now have a legally binding contract which if it must go to court, the court will uphold. The only way to stop this is if the public prosecution can prove that Cele and the landlord were working together to defraud the taxpayer. This will be difficult to prove. However since Cele did not follow protocol he should be removed from his post.

  • Sedick - 2010-12-07 12:20

    Surely if procedures were not followed, there can be no contract? What mampara lawyers? AND will the DG now be held accountable by being prosecuted, and investigated for possible fraud and collusion? check out his/her bank balance, or is she also a Cadre.....common, of course he/she is. Now what is obvious is that any DG can sign a contract with his buddies that binds the taxpayer to his corruption/incompetence......

  • Will99 - 2010-12-07 12:41

    Well!!! Isn't this just nice!

  • vorenuslucious - 2010-12-07 13:22

    Pull down your pants, bite down, bend over and hold on tight South Africans; it's going to be a rough ride.

  • KaiinSA - 2010-12-07 14:20

    Hold the line caller... we're all missing a trick here. Why don't we have a whip round buy a building and rent it to the government for 6 times its commercial value. That way we can get some of our taxes back :-) just a thought.

  • William - 2010-12-07 14:44

    and the poorest of the poor just got poorer....well done madam!!

  • William - 2010-12-07 17:28

    BTW Where did you bury Doidge?

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