SIU in bid to recover R88m from property mogul

The Special Investigating Unit (SIU) is trying to recover more than R88m from Durban businessman Dumisani Tembe who allegedly defrauded the government in an ‘illegal’ 10-year lease agreement for the Royal Hotel office space. A Sunday Tribune report says Tembe is accused of submitting a fraudulent tax clearance certificate to secure the lucrative lease with government; of charging almost double the lease rate; and lying about parking facilities being part of the deal when in fact he rented parking space for government staff from another company. Tembe entered into a lease agreement with the Department of Public Works for the use of the building using a fraudulent tax clearance certificate, the SIU alleges in court papers, according to the report. It notes the building’s office space is currently occupied by Department of Labour staff in the Durban city centre. According to the summons filed by the SIU in the Durban High Court, Henque 2042 CC, which owns the Royal Hotel Towers on Anton Lembede (Smith) Street in the Durban CBD, allegedly submitted a fraudulent tax clearance certificate when it concluded the lease agreement with the Department of Public Works in 2010. Henque lists Tembe as its sole director. The SIU wants Tembe to pay back R88.1m he received from Public Works, as the lease increased annually by 9.5%. The report says Tembe could not be reached for comment.