By: Sello Theletsane
JOHANNESBURG- The Patriotic Alliance(PA) has condemned a decision by Joburg mayor Geoff Makhubo to approve the return of suspended Johannesburg Property Company(JPC) chief executive Helen Botes and her chief financial officer Imraan Bhamjee despite two forensic reports implicating them in fraud and corruption.
Both the Special Investigation Unit (SIU) and a separate forensic investigation by the previous JPC board found that there had been fraud and corruption involved in the awarding of fogging and “deep-cleaning” contracts to four companies.
The investigations found collusion between JPC officials and the companies, price-fixing, tender-rigging, and over-payment for services from the companies who did not even qualify for the contracts. In March, an SIU report found that five senior employees of the Joburg Property Company (JPC), including Botes and Bhamjee, might be guilty of financial misconduct in the awarding of contracts to provide deep-cleaning and sanitisation services.
According to the SIU reports, the JPC officials inflated prices quoted by the service providers, which caused the city-owned entity to incur fruitless and wasteful expenditure of R18 321 620. A damning internal audit investigation by the City of Johannesburg released confidentially to staff last June concluded that JPC’s management had allegedly contravened numerous procurement laws and regulations, and that the City had been grossly overcharged.
Among other things, Botes and Bhamjee allegedly only “negotiated” the prices after awarding the contracts to the companies. No open bidding nor normal tender procedures were followed, as Botes and Bhamjee opted to use a procurement regulation that ostensibly allowed them to negotiate directly with suppliers.
The previous JPC board which suspended Botes and Bhamjee were dismissed by Makhubo, who tried to bring Botes and Bhamjee back as early as July 2020, despite the significant allegations against them. Makhubo then deployed Ruby Mathang, an advisor in his office, to be acting CEO of JPC. Mathang was the former member of the mayoral council (MMC) for Economic Development who appointed Botes, then his assistant, to be CEO of JPC around 2012, despite her lacking any qualifications or experience for the position.
PA councillor Ashley Saul said bringing back the two executives implicated in fraud and corruption by two forensic reports indicated Makhubo and the ANC’s determination to shield its corrupt cadres.
“It must be noted that the two executives were suspended when the PA was still part of a coalition that governed the city. It is these suspensions that led to the ANC kicking us out of the government of local unity(GLU). We are proud that during our tenure in the coalition government, we managed to expose the rot of the ANC,” said Saul.
He added: “Makhubo himself made damning confessions at the Zondo Commission in which he admitted that a company linked to himself had received millions of rand via contracts with the City of Joburg while he was finance MMC. That he remains in his position despite his self-incriminating evidence at the Zondo Commission is another indicator of how the ANC protects its corrupt leaders,” said Saul.
He also lambasted lack of progress in the criminal case the PA opened against Makhubo. “After Makhubo admitted to his role in fraud, money laundering and corruption, I went to open a case against him. We are dismayed that law-enforcement agencies have not made any progress in this case despite being provided with overwhelming evidence against Makhubo,” Saul said.
He added that the current JPC board chair Moeketsi Rabodila, whom he labelled “Botes loyalist-in-chief” was intrumental in granting both Botes and Bhamjee “invalid and illegal” five year contracts.
Rabodila was previously Director General to David Mabuza’s government in Mpumalanga, before being deployed to the now dysfunctional Merafong Local Municipality, and has been on the board from around 2015.
“Clearly, the City of Joburg is run by a criminal syndicate led by Makhubo. If nothing is done to stop them dead in their tracks, billions of ratepayers’ money is at a huge risk and much needed services that are to be provided to Joburg residents will be in serious jeopardy. The PA will not fold its arms and watch by a criminal mob masquerading as politicians and technocrats run our city down,” concluded Saul.
