Under-fire Roux Shabangu drops R300bn Public Works bombshell

The Public Works Department may have concluded property leases of some R300bn for state departments without going through a competitive bidding process, according to a Weekend Argus report. The report says the allegation levelled by Shabangu is backed by an affidavit deposed by suspended Public Works Acting Director-General, Sam Vukela. He puts the number of negotiated leases at 2 415 out of a total of 2 950 lease agreements concluded by Public Works from 2008 to September 2010. Failure to apply competitive tender procedures in two police leases worth R1.78bn with Shabangu led Public Protector Thuli Madonsela to declare the contracts invalid in February, notes the report. According to Vukela's affidavit, non-compliance with supply-chain management prescripts was frequently justified. 'Should tenders be invited each and every time where (Public Works) knows beforehand that the tender will be non-responsive to the requirement, it will be a waste of money to place the advertisement,' he said. Full Weekend Argus report (subscription needed)

Shabangu has instructed his lawyers to launch applications in the North Gauteng High Court to set aside the 2 400 plus contracts he claims were negotiated in the same way as his controversial lease agreements, according to a report in Die Burger. Shabangu has sent his report with allegations to the Public Protector and the Presidency, prompting the latest investigations by the Public Protector. Full report in Die Burger

Madonsela says she 'absolutely' stands by her findings of impropriety in the lease agreements. She reportedly told The Sunday Independent last week that although she had agreed to investigate allegations of widespread irregular practices involving leasing in the department, she is not reviewing her findings. 'I am not reviewing my decision in 'Against the Rules'. We have registered a new investigation that is looking at these ones. If, of course, Mr Shabangu feels that I acted irrationally by treating him differently than I treat other people, Section 181 (3) of the Constitution is clear that constitutional institutions are subject only to the law and the Constitution. That gives him an opportunity to ensure that a court of law can review my decision,' she said. Full report in The Sunday Independent (subscription needed)

In another wrangle over property involving government, North West Premier Thandi Modise welcomed a ruling that gave back to the provincial government buildings worth millions that were sold through questionable means, says a report on the News24 site. 'This should send an unequivocal message that the North West provincial administration will do everything in its power to recover state properties lost through controversial transactions,' Modise said. Provincial spokesperson Lesiba Kgwele said thousands were evicted from 10 blocks of flats across the province in 2006 when the company, Mr Property Developers, sold the buildings on auction for R71.6m. The company, one of 10 investors who had interests in the properties, was alleged to have bought the buildings from the provincial government. Judge Adolf Landman found that the North West Housing Corporation, which owned the buildings, had not signed a binding agreement of sale with Mr Property. This meant the subsequent auction was invalid. 'We expect heads to roll here. It calls into question how so many people were left homeless,' Kgwele said. Full report on the News24 site