Roux Shabangu left with 'no choice'

2011-07-25 22:10

Johannesburg - Businessman Roux Shabangu was left with no choice but to institute legal proceedings against Public Works Minister Gwen Mahlangu-Nkabinde and her department over the "compromised" lease for police headquarters in Pretoria, his office said on Monday.

"As much as this is not what Mr Shabangu had wanted to do, [he] is however left with no choice but to institute legal proceedings as a result of suffering huge financial losses and damage due to the lease being compromised," replies to questions sent through his personal assistant, Lelo Zulu, said.

The Sunday Times reported that Shabangu was suing Mahlangu-Nkabinde for R1.1bn related to the "compromised" deal for the office space.

Neither the public works department and ministry, nor head of government communications Jimmy Manyi would elaborate on what developments have taken place since Public Protector Thuli Madonsela found that the Pretoria lease processes had been unlawful.

She said the national commissioner of police General Bheki Cele and Mahlangu Nkabinde were the accountable officers.

Madonsela made similar findings regarding a building in Durban and Cele has cancelled two scheduled press briefings where he was expected to give a public response to the matter.

  • Warslat - 2011-07-25 23:38

    General Bheki Cele and Mahlangu Nkabinde were the accountable officers. Next time give the position to responsible people who consider themselves accountable, not ones who dodge press briefings and are unco-operative with inquiries.

      G8 - 2011-07-26 04:19

      Shabangu is just as guilty as the minister for knowingly entering into an improper agreement without due process, thus does not deserve a cent! In fact, he should be charged for attempting to defraud the state; add to that, so should Cele and Mahlangu-Nkabinde. I am tired of hearing about the rampant corruption, incompetence, and illicit dealings at all levels of government and associated businesses; it is time we as the citizens of the country start putting our foot down. This is a waste of our money, and denies our country the means to progress and develop into the cohesive functioning nation we have been striving for.

      capetonian - 2011-07-26 07:19, as I understand it, the building in question had a rental market value of R30.00 to R40.00/square metre. The media reports state that the Government was going to pay R125.00/square metre. I, and every other person of reasonable intelligence can only come to one conclusion - collusion to commit fraud!! Like what GB says, we are sick and tired of rampant corruption from the very individuals who are "supposed" to set an example for the people who voted them into power!

      Dominic - 2011-07-26 07:58

      It takes two to tango (in this case three). From what I can work out they were all colluding. The court case should be very interesting. I think I'll puke if he gets a single cent.

      cliffarc - 2011-07-26 10:09

      - Shabagu's claim is baseless. A key principle in the law of contract is that of ' good faith'(bona fides), which clearly was absent in this case. With the damning evidence going against him , you'd think his legal advisers would point this out to him. But then we all know about lawyers and their greed. Walk away Shabangu - maybe another corruption opportunity will come your way some time.

      PB - 2011-07-26 10:10

      The term "generally corrupt relationship" comes to mind. Now where was that uttered before? Something relating to JZ, Shaik etc ... IF the law is allowed to run it's course, how long before a good golf team is made up - The Almost Deads

      York Hunt - 2011-07-26 12:34

      A man comes before the Court. He has written on a public building: "Everyone working here is stupid." He receives three sentences: One month for defacing a public building; one year for defaming state employees; and five years for betraying a state secret.

      SaintBruce - 2011-07-26 15:32

      This wil be interesting as any contract has to fulfil commercial requirements under law, one of which asks: "is the person I am contracting with authorised to make such a contract?" The legal team drawing up the lease for Roux Shabangu needed to be sure that both the SAPS Chief and the Public Works Minister had followed all the protocol required for a deal of such a size. Without the facts before court , the Public Protectors report is clear that this was not the case in these two deals thus leading to her considered opinion of maladministration. Dear Roux - look closer to home to your own legal team who did not establish whether the tender process was above board or not....unless it was to bring you all an unfair advantage (lots of State money)and thus was ignored! This oversight and the possibility of collusion in this instance will bring scrutiny to any other 'deals' struck with the State to examine whether similar circumstances existed with those contracts! Going to be an interesting bun fight...but who will pay for it?

  • safferoverseas - 2011-07-26 00:30

    now the problem is that roux may get his money, the bribes have already been paid and the police still need to sign new deals for the buildings. guess who loses out here. cele and his sidekick will be given cushy jobs elswhere and the corruption goes on unabated. seriously, the anc supporters have to look deeper than the free chicken at the next election.

      Met - 2011-07-26 06:56

      This is a win-win situation. If they got away with it each would have received their cut, but now they were caught. So, the "poor disadvantaged Roux" sues, they all rush to settle from public funds and still receive their cut.And all live happily ever after. Put them in jail. I hope that if there is a court case, the court will unravel this nest of corruption. But watch! There will be an out of court settlement to- wait for it- to save money

  • pierre.hough1 - 2011-07-26 03:34

    Another one destined to meet with the law ...

  • kingkong - 2011-07-26 04:40

    just follow the paper trail i think they are or somebody was or have had a big payday secret trust accounts and all .Thuli i think you should ask for a forensic audit but this time use retired judge Heath let them feel the heath

  • zaatheist - 2011-07-26 05:33

    I weep for the potential losses to be suffered by Mr Shabangu.

      PB - 2011-07-26 10:11

      You must be really dof not to see the full picture

      Felix - 2011-07-26 10:50

      Sarcasm is a lost art :)

      Kevin - 2011-07-26 12:28

      zaatheist- We are the taxpayer's . We are not corrupt like your type.

      Tebza - 2011-07-26 16:06

      I have never come through such an empty stupid comment like yours. The guy already had a building, then gets new tenants recently signed for monthly rental and then he is found to have been part and parcel of a corrupt act. and i bet you he is/was one way or the other part of the Government and you say he looses. He already gained 3 times what he is rottenly worth for the months he has already being paid and you feel for him. Now i understand the definition of the word "Stupid" after reading your comment.

  • Happygas - 2011-07-26 06:51

    Shabangu trying to take the piss???he sould be charged for corroption

      Shadoz - 2011-07-26 08:52

      How he is not part of the Government?

      daaivark - 2011-07-26 08:55

      Shadoz... Shabangu has never been part of the government. He is a private individual with interests in property.

      DeonL - 2011-07-26 09:41

      Shaik was jailed for corruption and was also not in Gov.

      Albo - 2011-07-26 10:14

      @daaivark - strange how his government `friends` share those same interests.

      daaivark - 2011-07-26 11:19

      Sure Albo. I was commenting on the facts of the issue raise by Shadoz, not on the role he played or whether it's right or wrong.

  • nonduplume - 2011-07-26 07:18

    It really is about time that the long suffering tax payers took matters into their own hands and launched a class action against government. Every single day we have a report on clear blatant corruption and some idiot minister or spokesdouche declares that although the PFMA has been transgressed everybody is innocent until proved guilty and nothing ever comes of it. Our law enforcement bodies are totally useless as they are run by ministers who are incapable of doing the right thing. Even the ANC is unable and unwilling to address the rampant looting from the poor and needy. This country cannot afford this downward spiral and all that it is doing is creating more impoverishment that will lead to our eventual demise as the jewel of Africa. Zuma appears to be more interested in the international stage and everything he does at home has a political context. The rot is unstoppable and unless the tax payer stands up to be counted we are doomed to becoming another Zim. We now live in a totally demoralising and demotivating society and if we keep on with a "as long as it doesn't affect me jack" attitude we are all going to be flushed down the @ncr@pper! Postscript - and yes we can hurl insults and call one another racists but at the end of the day the corruption still stands!

  • Babba x - 2011-07-26 07:40

    Roux wants to sue cause he can no longer benefit from a corrupt deal? Only in SA lead by the ANC government

  • DSJM - 2011-07-26 07:45

    So he'll get the money anyway! Dont you just love the way the government treats their pals

  • onthefence - 2011-07-26 08:07

    If proved that they all colluded and face criminal charges......then the parking lot at the golf club is going to be full!!

      Eish! - 2011-07-26 08:45

      Excellent! LOL.

  • Dominic - 2011-07-26 08:10

    Cele, Mahlangu-Nkabinde, Malema - all tjoepstil in the den of thieves and then, to their horror, one of their accomplices still wants his share of the loot. I picture many trust funds being hastily emptied and closed.

  • York Hunt - 2011-07-26 08:14

    Roux Shabangu, Bheki Cele and Gwen Mahlangu-Nkabinde should all be arrested, tried and successfully prosecuted for fraud and corruption. Also ALL large government financial deals must go through some sort of validation process in the future to stop the rot!

      Tebza - 2011-07-26 16:00

      Amen to that!

  • Man can do - 2011-07-26 08:16

    The bank that supplied the finance to Shabangu to purchase the building. How come they were not suspicious of the inflated lease pricing? Or did someone there also get a handout?

      Dominic - 2011-07-26 09:26

      I think I read that Nedbank is suing too.

      DW - 2011-07-26 09:26

      Good question. The banks always have professional external valuations done on every single bond before they grant finance to the buyer. Although the signed lease is taken into account in the valuation, the value is adjusted to market value leases. Question the bank and their valuer. But I can also tell you that the banks will close ranks. The top guys there got their commission on the deal and will look for someone else to blame when the sh*t hits the fan. I know. My husband used to work for a bank and is now an external professional valuer.

      tailormade - 2011-07-26 11:50

      Man can do, Mail&Guardian had an excellent article about this matter: how the banks provided bonds up to x3 the property order for these tenderpreneurs to do their business.

  • Eish! - 2011-07-26 08:29

    Bloody agents - just give him his millions! Let the fat pig have his turn at the trough.

  • shmangle - 2011-07-26 09:05

    If the lease was for 500 million, how can he have lost over 1 billion? Not to mention he is just as guilty as they are for circumventing normal tender procedures. He should be hoping they don't charge him, let alone suing for damages.

      DeonL - 2011-07-26 09:50

      He is probably claiming for the whole contract to be paid out, but he might be taken to court for inflating property prices.

      Tebza - 2011-07-26 15:58

      Just wait and see. He is not aware that eventually in order to cover up their own mess (the Govnmt) he is soon going to be investigated because it looks like he is not new to this act. he is the jock of Fraud to get rich quickly and you will be shocked by what they will dig about him that you will end up feeling for him. These guys only think of how many millions to make quickly and forget about what they did just 2 years ago. I see vultures starting to circle.

  • Andrew - 2011-07-26 09:14

    Is there no shame in this country!!

      SaintBruce - 2011-07-26 15:47

      I guess not. Malema challenges us to see how 'poor' he is, we find out now he is screaming he is a private person in his [weak] defence! On the face of this deal is written - "collusion, corruption, graft, cheating, insider dealing, theft, falsifying values = fraud,...." care to add any more terms for this situation? Follow the money - I just wonder how deep THIS rabbit hole goes????

  • DW - 2011-07-26 09:22

    I guess this shark wont try dealing with the government again. Hopefully a few other businessmen will learn their lesson in the process. He bought the building specifically on the back of the lease, the rentals which were hugely inflated compared to market. Where he thought he could make a killing (with the taxpayers coughing up), instead his reputation is in shreds and he is sitting with 2 buildings on which he cannot pay the bonds. He wont be getting any rental from Department of Public Works for a while - not until they clear up the mess. In the meantime it is quite possible that the bank will foreclose on him. I hope he learnt his (very expensive) lesson.

      PB - 2011-07-26 10:15

      He is just going to change his business's name and carry right on using his chommies to get totally inflated rates for his buildings used by the government. It might be interesting to find out how many other buildings he has leased to the state and at what rate.

  • Martin du Plessis - 2011-07-26 09:31

    Rolie, News24 only deletes comments if they are reported by other readers and are found to be offensive (racist, vulgar speech ect ect).

  • Darwinian - 2011-07-26 09:33

    Mr Roux Shabangu, you are a petty cANCer criminal. Nothing more, nothing less....

  • Dieskim - 2011-07-26 09:41

    Well what is the market value of the property, surely the state could have purchased it by now with the rent they where paying ? And the sum of R1.1bn ? Surely the property is not even worth that amount ?

      DW - 2011-07-26 10:44

      Dieskim the state never even moved into the buildings yet. Shabangu bought the buildings on the back of over inflated leases (on which all and sundry were, no doubt, getting kickbacks). Then the public protector revealed all and SAPS has not yet moved in (although the lease starting dates have come and gone) until public works gives them permission to do so. Shabangu will not get paid in a hurry. This lease should never have been signed. This man has found out what lumpy, greasy gravy is all about. I have no sympathy for him

  • Not Black - 2011-07-26 09:53

    Hellloooooooo This is NORMAL Practice in the New SA. Stuff up a Job or a parastatal, & get PAID a REWARD. Remember SABC? Remember ESKOM? Shabangu is only doing what ALL cronies do. Wait for the GRAVY TRAIN at the PTA Gravy Station. Who Knows? Bhekhi Cele & Minister are already on the coach. I SUGGEST ARREST THE LOT. If this is not CORRUPTION, then What Is?

  • Badballie - 2011-07-26 10:11

    Gvernment wqill have to take it on the chin, serves them right and only goes to justify the so called "white colonial" attitude towards the ANC. THe losses must be re-couped from the people identified as having acted illegally or in contravention of the department requirements, also Shabangu need to be investigated properly, if he had any involvement in the lease rigging or was aware that the lease deal had been rigged in his favour he has no legal claim to compensation and is in fact guilty of a crime for which he must be prosecuted.

      DW - 2011-07-26 10:50

      Badballie even if it was rigged by someone in government, there is a possibility that it is still legal and the taxpayers will still have to pay up. Shabangu is, however, a shark. He did not own the buildings and only bought them once the lease was signed (and now has to pay the bonds). The rentals he was charging were 3x the going market rate, so he was going to make a killing on the back of the taxpayer. No doubt there was a kickback/bribe to Cele or Mahlangu-Nkabine (or both) built into the lease. Serves him right. He cant admit it as that makes him complicit. I wonder if the kickback has been paid yet or would have been paid monthly on receipt of the rentals. Stop paying bribes for business. If everyone refuses to pay bribes these ANC thieves will not be able to do their jobs unless they go through the right channels.

  • GerryC - 2011-07-26 10:20

    Of course he has to sue, he has already paid out the back handers and if the deal is compromised where is he going to get the money to still fill his pocket after paying the gravy train commuters.

  • Papsak - 2011-07-26 10:56

    So interesting that a lot of comments here refelect the "white" mentality of "they are black. They are worse than anything that has ever happened in this country". I was reading through Magnus Malan's obituary this past past week. I was left numb with shock, the extent of white corruption!

  • struth - 2011-07-26 11:15

    Nedbank loaned Roux Shabangu R220m last year for the purchase of the Middestad Building in Pretoria which was going to be leased to the Police Commisioner for .....yes a staggering R614m per month, and this without following any legal tender processes. Any simpleton can do the maths to see that this was blatant corruption on the part of Mahlangu Nkabinde Roux Shabangu and the Police Commisioner. This is going to become very interesting indeed. Now Shabangu is sueing Mahlangu Nkabinde, while Nedbank is putting pressure on Mahlangu to honour the lease agreement.

      darkwing - 2011-07-26 21:08

      Poor stupid Nedbank

  • tailormade - 2011-07-26 11:46

    If these leases were signed "illegally" (ie, without going through the right protocols), then surely Roux S has got no case since the contracts can be deemed invalid?

  • Kevin - 2011-07-26 12:27

    City centre buildings rent for 20% of what he wants to charge the SAP . Tell Shabangu to bug#er off and let him and Nedbank rot and go bankrupt. The taxpayer is more important. Nedbank knows the market values and rentals in the CBD ,but was happy to finance an inflated deal because it was government money. Let Nedbank take back the building from Shabangu and try rent it. Let's see how happy they are.

  • Tebza - 2011-07-26 15:49

    This is not even about Public Brief. These people are so foolish they cant even see that it was their own foot they were shooting. They must get out immediately and young, vibrant candidates who knows the meaning of Duty and Responsibility + Educated Knowledge take over. The only way to justify paying 3 times for something than normal price is when you have fraudulent quick enrichment schemes planned.

  • OLIBO - 2011-07-26 16:15

    What is wrong with this Shabangu guy? Is he crazy? He influences the deal between his company, SAPS and Public Works; the Protector concludes that the Commissioner of Police and Minister of Public Works committed maladministration in awarding the contract to Shabangu; now Shabangu is suing the Minister for "financial losses." Next, Public Works will reach a settlement with Shabangu and he will then share the profits with the Commissioner and the Minister, after they are both fired (if Zuma has the courage); or Shabangu will pay schools for Zuma's kids or for his suits at Levisons (since Shabir is no longer in the picture).

  • ROBYKAY - 2011-07-27 09:08

    The Removal of Mbheki and the scorpions was a planned preparation for what we see now, the lame duck leader can not do anything as he owes these zombies who saved him from the scorpions.

  • Emil Loffler - 2011-07-27 10:39

    The only bit of revenge us whites can get is publicly reporting these genetically incapable fraudsters. They'll all get away without prosecution, as their voters outnumber us too much. Only a civil war and an equal number of voters from each race group implimented can improve our lives here. Genetically incapable of proper development will always vote for criminals, as they want to also to do things the easy way by fraud and corruption.

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