News24

Shabangu rubbishes fraud reports

2012-10-05 18:16

Johannesburg - Property tycoon Roux Shabangu on Friday denied a report that he had committed fraud, describing it as unfounded and defamatory.

"As far as the allegations are concerned, I have never, not even in the most desperate times in my business career, have even thought of defrauding my own government, let alone with a non-BEE partner," Shabangu said in a statement.

"Mr [Johannes] van Niekerk and I were business partners of more than eight years during the conclusion of the Vermeulen contract; we had already jointly built and completed more than five successful shopping malls; I had already built and completed a total of 12 commercial properties by 2008."

According to a report in The Star newspaper on Friday, the department of public works was taking a former company of Shabangu's to court in an attempt to have a lease signed with him declared void.

Police


The lease, signed on behalf of the department of human settlements, was for the City Forum building at 114 Vermeulen Street, in Pretoria, which was occupied by the Independent Police Investigative Directorate.

In court papers lodged at the North Gauteng High Court in Pretoria, the department of public works alleged that Shabangu fronted for a company, owned by Van Niekerk, and committed fraud by pretending he owned the building for which the lease was being signed.

Public works said it signed the lease with the company Majestic, because it was under the impression the company owned the City Forum building. It subsequently found out that the building had been bought by HMKL 3 Investments a month earlier.

It alleged in the papers that if it had known Van Niekerk owned the building, it would not have signed a nine-year lease, because the company would not have met the requirements of its Black Economic Empowerment (BEE) policy.

According to the report, the department got the special investigating unit (SIU) to investigate the lease agreement.

'Misrepresentation'

The SIU found that Shabangu had "misrepresented to the department that Majestic, then a 100% BEE company, had full ownership of the City Forum building".

It also found that "Majestic and its director, Mr NR Shabangu, were a front for HMKL and Mr JPJ van Niekerk, its director".

Shabangu said he was not given the opportunity to defend himself.

"I was never even informed nor interviewed by the SIU during their investigation into the Vermeulen matter.

"As far as their findings are concerned, I will be taking this matter up with the relevant authorities in due course, in order to determine why this was not the case," he said.

Departments


According to The Star, the department of human settlements did not move into the building, but the department of public works had been paying rent for the past three years.

Shabangu said: "I guess DPW just slept and woke up three years later and realised that they were paying rental to a non-BEE company.

"And Mr Van Niekerk, a 'good citizen' as he is, he just did not see it necessary to inform the department, that he is no longer BEE-compliant."

Shabangu said he agreed that the department of public works needed to "clean its house, but they must not throw their rubbish into other people’s yards".

Comments
  • JanGrimbeek - 2012-10-05 18:25

    "I was never even informed nor interviewed by the SIU during their investigation into the Vermeulen matter." You will have the opportunity to do just that in a court of law now 1 What's your point and issue now all of a sudden, you knew all along that there were investigations going on around your wheelings and dealings mistertjie shabangutjie !! Let the whole shabang(u) rot in jail !

      lownabester - 2012-10-05 18:29

      He is one of the biggest frauds around.

      nicholas.graan - 2012-10-05 18:49

      lie and deny, yawn.

  • christelle.james.7 - 2012-10-05 18:29

    Fraud does not exist in the vocabulary - just simply no understanding of the word at all. How many of the fraudsters have uttered those words prior to being found guilty?

  • lmphelasr.1 - 2012-10-05 18:29

    Looks like the Hawks and the SUI are rooting out all evil in business deals lately... Nice.

  • bongani.nsele.58 - 2012-10-05 18:35

    i hate corruption...please report all corrupt people ...some non africans of this country can not believe their lucky...nobody reports on their corrupt ways..to the point that perceptions are formed that they are do gooders and all that horse dung...

      lara.vanrooyen.1 - 2012-10-05 19:21

      Please elucidate. What are these corrupt ways of which non Africans? Provide proof.

  • shirley.steenkamp - 2012-10-05 18:38

    Thats what they all say!!!Just like juju and other cadres! Knowing our judicial system you will probably find a judge dumb enough to believe you too!!!!

  • Erna - 2012-10-05 18:42

    Of course he does. He follows the anc motto to a T - deny, deny, deny - then lie. If that doesn't work, blame someone else.

      fussed.anderson - 2012-10-05 18:56

      The whites

  • irene.buthelezi.1 - 2012-10-05 19:36

    Shabangu is as scaly as the rest of his cANCer comrades. Pure filth.

  • beki.khumalo - 2012-10-05 20:05

    It appears Mr JPJ van Niekerk would be the one who is corrupt in this relationship. He is the one who misled Public Works by BEE fronting, using Mr Shabangu as a front to score a tender. That alone amounts to corruption! So charge them both, Shabangu will have to defend himseld in court. As for Van Niekerk, tronk toe baba!

  • jessamasaurus - 2012-10-05 20:06

    Is it fraud in the true sense of the word, (common law)? Shouldn't BEE contracts be dealt with in terms of civil law. What happens when an asset is transferred between non BEE and a BEE partner? Can a BEE partner loan from a non BEE partner and vice versa? The contractor should conduct their due diligence before the contract goes ahead, esp. where is it relates to open source information such as the deeds office,CIPRO, etc.

  • tin.can.501598 - 2012-10-05 20:18

    Naturally he will shun ...... The cancer is protecting.

  • tw2066 - 2012-10-05 20:31

    "As far as the allegations are concerned, I have never, not even in the most desperate times in my business career, have even thought of defrauding my own government............. Wel pal, they are certainly not going to reciprocate,

  • frank.zippa.1 - 2012-10-05 20:59

    Mr Scum Vomit Faeces ANC Shibangu. Comrade Extraordinaire.

  • bruce.westoby.9 - 2012-10-05 21:35

    Does he even know what Fraud is !!!

      wize.man.31 - 2012-10-06 00:37

      That is the sad part Bruce. It's not fraud for them. It is "affirmative financial correction". They will milk the cow until only the bones are left and then find some reason for blaming apartheid for it!

  • andrew.mackie.90 - 2012-10-06 06:48

    Well if it was not fraud take Public Works who are not the most ethical, to court and prove your case. Would not surprise anyone if some compensation was paid along the way to get the lease.

  • quartus.vanzyl - 2012-10-06 08:51

    mmmmmmmmm was wandering how Roux got so rich so quick!

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