Shabangu takes on protector in lease saga

2011-12-06 22:35

Johannesburg - Businessman Roux Shabangu has challenged Public Protector Thuli Madonsela's probe into a lease agreement for police headquarters in Pretoria between his company and the public works department.

In a letter sent to Madonsela on November 22, Shabangu said Roux Property Fund had come across 194 lease agreements in Pretoria between the department and other companies which were concluded without a tender process.

This was the same process followed with the police headquarters in the Pretoria Middestad, he said.

"We are aware of leases which were concluded where no tender process was followed," Shabangu said in the letter.

"... It is evident that the procurement process followed for the Middestad lease was in accordance with common practice within the DPW [department of public works]."

According to Shabangu, 73% of all lease agreements concluded by the department in Pretoria were through the negotiated bid process and not through tenders.

In October, Madonsela found that the procurement of two leases for new police headquarters in Pretoria and Durban, involving Shabangu, were unlawful and that they amounted to maladministration.

The leases were worth R1.6bn.

Following the report, President Jacob Zuma suspended national police commissioner Bheki Cele.

On Tuesday, Madonsela's spokesperson Kgalalelo Masibi confirmed that the public protector had received Shabangu's letter.

"The public protector received the letter from Mr Roux Shabangu and is in a process of responding," said Masibi.

In his letter, Shabangu asked Madonsela to investigate all the leases which were concluded using the negotiated bid process following the same procedure used to investigate the lease with Roux Property Fund.

"... the public protector must then also suspend all such leases pending the finalisation of such investigation," said Shabangu.

He said an example of one of these buildings was the Eikendal building in Tulbagh Park office complex in Church Street, Pretoria.

Shabangu also challenged Madonsela on her finding that the Middestad lease was not cost effective and that it was above the prevalent market rate for office accommodation in the CBD.

"We have ascertained that there are numerous buildings in respect of which a much higher rental is apparently being paid by DPW," said Shabangu.

Examples were the Travenna Campus, which had a five-year lease with a rental of R165/m², and the DTI building, which was R450/m².

The rental for the Middestad Centre was R110/m², he said.

"It is imperative that a proper investigation be effected by your office so as to ensure that justice and consistent action take place, and be effected," Shabangu said.

  • bernpm - 2011-12-06 22:44

    ...seems fair comment. Goose and gander case??

      Burtfred - 2011-12-07 06:53

      Shabangu old chap - two wrongs, or in this case 194 wrongs, do not make a right.

      Hunter - 2011-12-07 10:04

      Fair suggestion from Roux - now who else will get suspended. We might just end up with no government officials in office in Pretoria.

  • danalexsmith - 2011-12-06 22:55

    Roux Shabangu you just pissed off 194 people. hope you have good security.

  • Maximus Odinidus - 2011-12-07 00:10

    That just means that there are 173 more cases to investigate.

      Wes - 2011-12-07 06:12

      He is doing his civic duty as they always asking the public to report crime.

  • Joseph - 2011-12-07 00:45

    Selective prossecution will defeat the ends of justices.They must be investigated as well,the public protector must be seen in serving justice to all not select certain individuals whom she does not like,my be the owners of the said buildings are white whom she does not want to stuble on their toes for fear that she might crusified by the white controlled media.Even the media can not write bad about them because of their colour by the way black jurnalist can not get promotion when critising a white deal.

      Ibhubesi - 2011-12-07 01:20

      I don't see what your problem is? If the media are pissing you off, go get a loan from the IDC and buy the media houses. Then you can praise the ANC all day long like they do with Zanu-PF in Zimbabwe. The media isn't your problem. The Internet is. Less and less people are reading newspapers and more and more people log onto news sites to get the news. So your ill informed statement will help you nothing in a new Electronic Information age. But reading your comment and assessing your backward mentality, I don't think much of my message will be understandable to you.

      Ibhubesi - 2011-12-07 01:48

      Your colour remark is out of place on here. Here it doesn't matter what colour you are, if you talk rubbish you must expect a lashing! I'm as black as you are but I don't vote for the ANC because I work with finances everyday and I see what all of this stealing is doing to the country and its people. Then next your comment below about the government and leasing is ill informed. The government should be paying market related rentals because it is the tax payers money. This is not a get rich quick scheme for Shabangu or any other ANC crook. R450 per sq.M for the DTI building is just another robbery. Go do some market research before you post this drivel on here. Lastly to go back to the lashing you gave the whites and the media houses. The whites are not our problem. They are not in power, are not as wealthy as you think they are or have any influence in what the ANC is doing to the poor. It is you and the likes of you that are holding us all back from economical growth. But if you are still sulking about whites, I doubt if you will ever see a light. Go praise Mugabe, he will show you what a Royal mess he has made of millions of people's lives.

      pws69 - 2011-12-07 06:39

      Mmm, but the ANC governments stated policy is to deal with BLACK business. By this very fact alone, we can assume that ALL of the other corrupt leases went to blacks. So, using your logic, I can claim all blacks are corrupt. Of course, I don't subscribe to your logic, but merely mention this to show how corrupt and retarded your logic is.

      Mike - 2011-12-07 07:22

      Joseph you are a total prick, he happened to be caught up in the situation. so what is the problem. Shabangu is like a little kid who received a smaller piece of candy now he wants a bigger piece of candy. Because of his connections in government he thought he could pull the wool over the eyes, but our good friend the public protector caught him. So maybe go back to your hole and play with your self.

      makesuthink - 2011-12-07 08:02

      Joseph you always have to bring in the race card well if you want to write in the white mans language learn to spell.I could call you a stupid ar??hole but I will not because you are just passing through

      jody.beggs - 2011-12-07 08:10

      Ibhubesi for President !

      Charles - 2011-12-07 09:56

      Joseph is perfectly correct. Justice must not be justice when done to blacks but to whites it is seen to be threatening investor support.

      Ibhubesi - 2011-12-07 10:45

      @Charles. Go find yourself a church. The ANC is a political party, not a religion. Then when you found something to worship, open your eyes and vote with a brain. The ANC wasn't your saviour. The ANC is syndicate of thieves that want the likes of you to keep voting them in so they can steal more from you. Now take this message to all your friends and create a future for our children. Forget the whites. They have left the country and the few that are left here are fighting as hard as I do to make the likes of you see a light.

      Joseph - 2011-12-08 03:46

      makesuthink-colour divides us,from workplace,salary,pubs we go to,residential areas and everythink.Its real in our society.

  • Ibhubesi - 2011-12-07 01:08

    And if his scam with government buildings never came to light, would he be calling for an investigation in any other lease? R450 for office space? Where will this all end. The money is drying up and we can no longer allow this financial rape of the tax payer's money going on!

      Joseph - 2011-12-07 01:24

      R110/sq meter is market value if you consider Pretoria CBD and the surrounding areas.If the Public Works or Governmant does not own or have its own buildings the only option will be to rent or lease buildings for the said departments.The role of the governmant in the economy is to stimulate growth,encarage development within the said area,province and the country in general.The governmant can not own every building in the country they have to lease some from private business thats stimulating property growth in that particular area.In Pretoria for example,the governmant is major contributor to the GDP of Pretoria as a result people find work and other busness are doing well due to the presents of governmant departments that are housed in Pretoria,so the issue of governmant renting or lease buildings in Pretoria will not came to an end its an on going thing which is good for the economy.

      karen.cigana - 2011-12-07 03:02

      Well said!! Agree with you one hundred percent.

      karen.cigana - 2011-12-07 03:14

      @ Ibhubesi. Wonder where Shabangu gets all his infomation from? Seems that his corrupt friends in the DPW showed him all the other leases. Agree with you on all your comments!

      Joseph - 2011-12-07 05:30

      Leaving in the world of denial,keep on dreaming may be you might win the lotto.

      pws69 - 2011-12-07 06:42

      @Joseph, during apartheid, the government owned most of their buildings. Under the ANC, the building is sold to a crony for a song, then leased back at an exhorbitant rate. In one case from last year, the building in question was leased back at MORE THAN THE SELLING PRICE, in just one years rental. A case of redistribution of wealth, but only if you are connected. The good news though is that all of these stolen billions mean the poorest of the poor who vote ANC get nothing in return. It's called Karma.

      Joseph - 2011-12-08 03:38

      pws69-you are right most of the state buildings were sold pria to 1994,there was no assets register for the state properties which made it impossible to account for before 1994.some were even transfared to new owners before 1994.Assets were not handed over properly in 1994.

  • Motho - 2011-12-07 02:43

    Why reveal that now?

  • Zion - 2011-12-07 05:58

    Corruption and greed has become part and parcel of the moral fibre of this sick nation. As indicated in earlier comments: Doing it for the last 17years still does not justify it and remains criminal. Prediction; next the courts will be involved and as seen in multitudes of cases the charges will be withdrawn and the criminals are free to carry on another day.

  • Walter - 2011-12-07 06:04

    If this is true, and taken what's happened regularly of late it probably is, then say "thanks very much, we'll prosecute the whole lot!" She's the one person doing her job properly and needs more staff.

  • CALAMITYSA - 2011-12-07 06:31

    "We are aware of leases which were concluded where no tender process was followed," Shows you in what a state your state is - All your fault Zuma. Nobody can justify this - get the bloody rentals cancelled or at a NORMAL rate. Or will Roux find another 174 at exorbitant rates??

  • pws69 - 2011-12-07 06:35

    Only in South Africa can you sue the government for losing out on a corrupt tender by proving more than 70% of all tenders were corruptly awarded. Eish, it seems corruption does pay - big time.

  • Wiseman Sthembiso Mazomba - 2011-12-07 06:42

    Roux must state it clear that He is turning to a state witness Or Doing a protected disclosure...either way We must stand by Thuli Madonsela at all times as civics..this black & white tendencies won't take us anywhere lets face the monster "Corruption & Greed" as one...

  • pws69 - 2011-12-07 06:47

    I helped a client look for premises in Sandton last year. Grade A Sandton space was going for between R190 and R210 per square metre. How can DTI be paying R450 per square metre? I would guess DTI Campus covers around 25,000 m2 of floor space. Assuming the rental should be around R180 (this is in Sunnyside after all), then they are paying an extra R81 million a year in rentals. Crime and corruption pay.

  • Mpho Ndlovu - 2011-12-07 06:47

    Nicolaas, u twart, while ure busy sending Joseph back to school me suggest u pack your things n head 4 the same direction, that is after u took a look at the 3 first words you used when telling Joseph to go back to school to learn to write good english. If u c nothing wrong there, then please leave us alone n consentrate on getting the msgs here.

      Elaine - 2011-12-07 08:31

      You are way off the point of the article it has nothing to do with spelling or white people or the media, it's about a common thief who is stealing from the taxpayer, with government collusion. I'm sure Madonsela is thanking Roux for giving her tipoffs about the other 194 phoney deals!

  • malcolm - 2011-12-07 07:24

    I wonder how Shabangu is privy to the details of the 194 other lease agreements, and the details thereof? Perhaps he has too much insider information, which leads me to believe that this may not be the only illicit deal he is involved in. Madonsela should perhaps investigate all his dealings first, and then only move onto the other 194, one by one.

  • Thembani - 2011-12-07 07:44

    Shabangus version is quite interesting and if its true what he says then government must apply its mind and revisit its decision and that might have to talk to bhekis suspension. we need to encourage various business engagements not everything has to go tender because not all tenders are public indeed

  • Deeteem - 2011-12-07 08:17

    Roux,can you proove that you actually OWN THESE BUILDINGS YOU RENT OUT ?

  • Johan - 2011-12-07 08:21

    Thanks Roux, now they have more leases to investigate. You are a good citizen, you just didn't know it yet.

      pws69 - 2011-12-07 08:28

      Heehehehe. Touche!

      Ibhubesi - 2011-12-07 15:51

      @ Johan. LOL LOL LOL

  • Brad - 2011-12-07 08:28

    It is irrelevant as what the market value is and DPW is paying. If Roux was happy to rent out his land at below market rate, that is your own proagative. The reality is that if no one is intersted in renting a big space at the rate Roux desires, it is better to rent it out below cost than nothing. It is pretty much the pointless argument. Besides, he has frauded SA citizens with his R1.6BN leases. Seriously!

  • Sipho - 2011-12-07 08:35

    Corruption stink coming out to haunt the ANC's self enrichment modus operandi. Selebi will not be bored and alone in a prison cell for a long time. More of the ANC bigots will be joining him in the cells soon.

      Ibhubesi - 2011-12-07 16:14

      I salute you my Brother!

  • NrGx - 2011-12-07 08:43

    common practice to disobey the rules...which makes it ok shivambu? so by that "logic" it makes it ok to murder you because there are at least 50 murders a day!

  • Andre - 2011-12-07 08:53

    It is still illegal and Mr Roux should be prosecuted for bribery and intimidation. Another Angliotti.

  • Rob - 2011-12-07 10:01

    Great, now suspend all of the individuals responsible for the 194 other unlawful processes...and while you are at it, recover the costs and wasted money and use the money to improve infrastructure services..if you can find two honest and incorruptable individuals to tender for the business.

  • Onwaba - 2011-12-07 11:08

    If one wrong of 195 wrongs is corrected, why not correct the 194 others? Could it be because the other wrongs are committed by a much fairer skinned citizens? Corruption must receive same treatment from whichever source, @ Michael, again crime is crime whether committed by a white or black person. White people have been committing crime since time immemorial, long before the new political dispensation in our country and still continue to do so. It, of course, doesn't make it any better deal with issues not race.

      Ibhubesi - 2011-12-07 16:12

      I fully agree Onwaba.

      Blade - 2011-12-07 16:21

      I really doubt that you are correct about the 194 others. And you are either to young to know how much lower the crime rate was during the time that whites governed the country, or just to blinded with hate to see the truth. Or just plain stupid. Im going to go with stupid.

  • Kevin - 2011-12-07 11:58

    The taxpayer is king and should never lose . Tough luck Shabangu

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