Roux's offices in bad state
CONTROVERSIAL property tycoon Roux Shabangu is milking the Independent Complaints Directorate millions on rentals while the building has "latent defects".
Property tycoon: Roux Shabangu.
The ICD was yesterday criticised in Parliament for leasing all of its offices, including its Pretoria head office at a cost of R25-million a year.
This is after the police watchdog body told the national assembly's portfolio committee that the City Forum Building it was renting from Shabangu, at a cost of more than R10.5-million in this financial year, was full of "latent defects" such as malfunctioning lifts and a flooded basement.
At another rented ICD office in KwaZulu-Natal, workers have been barred from accessing the parking area because the landlord has not been paid.
ICD acting programme manager Matthews Sesoko stunned MPs when he said the lifts at the City Forum Building had been defective for months, and that Shabangu and the department of public works were not treating the matter with a sense of urgency as they told him that they were still awaiting the arrival of "parts from China ".
Public works, as government property management agency, has leased the building on behalf of the ICD.
"We've received correspondence from both public works and the landlord that they are in the process of fixing these defects," said Sesoko.
"The latest correspondence was to the effect that the lifts have been affected by water and that they are going to get new parts from China and fix them. unfortunately it takes long and public works seemed to be reluctant to act against the landlord in terms of fixing all these latent defects."
The building covers 7614m² - double the floor space the ICD requires.
Shabangu is said to be politically connected and is at the centre of a police office lease debacle that led to the suspension of police commissioner Bheki Cele and the axing of former public works minister Gwen Mahlangu-Nkabinde from cabinet.
In November last year, Sesoko and his team told the same portfolio committee that public works had kept them in the dark regarding the R10.5-million rent of its headquarters.
The City Forum lease is now a subject of a probe by both the office of the Public Protector and Special Investigating Unit. The office of the state law advisors has asked the ICD to stop making monthly payments of R729000 to Shabangu pending the outcome of the probe.
Committee chairman Sindi Chikunga, pointed out that the City Forum building was acquired for less than R59-million, yet Shabangu's company stands to make close to R140-million in terms of the lease agreement.
MommaC
The Department of Works seem to only work on backhanders and dodgy deals. I wonder who Roux is in bed with at that snakepit. There must be a money trail so why isn't it being followed?Report Abuse
Pointman
Lack of accountability is clear here. He knows that he won't lose the contract no matter what - so why bust his chops - the money is flowing into his pocket - our money. With Nkabinde gone, He still has friends in government obviously.Report Abuse
RobinH
What possible incentive is there for the man to improve his properties. He has them all nicely sewn up in rental agreements with the state anyway, so why bother. The man is a crook and well-loved by our gang of crooks in power.Report Abuse
Mpjayalenyora
Renting buildings to the government is good work if one can get it. Roux Shabangu is a genius, the man got the banks to help him "buy" these buildings using the state lease agreements as collateral therefore he didnt spend a cent of his own money. Now if these entities pull out of the leases, he sues them for the rent which is three to four times the total bonds he owes the banks and flies while smiling all the way to the Cayman Islands to stash his "hard earned" dough...Give that man a bell's Oh! make that a Caol Ila 25 year old!!!Report Abuse
Mpjayalenyora
If us, the people of South Africa are too lazy to apply our minds when electing our representatives and allow thugs to run our government departments and SOE's then "businessmen" like Roux are allowed space to prosper. To answer your question: The way Roux makes/made his money here is admirable from a business perspective, the fact that its our money (taxpayers money) that he is stashing is pathetic but then again its not his fault that we chose buffoons to lead us.Report Abuse
GrRRRpha
Committee chairman Sindi Chikunga, pointed out that the City Forum building was acquired for less than R59-million, yet Shabangu's company stands to make close to R140-million in terms of the lease agreement####################################################################################
What happened to making profit? was he expecting the building to be rented out for R59-million? thats upsurd
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RobinH
Mpjayalenyora: I think it obvious that I was NOT talking about "from a business perspective". I was interested in the moral issues here.Report Abuse
truthhurt
There is a corrupt Government official somewhere in this story, the investigation unit must trace the kick-backs. PeriodReport Abuse
Mpjayalenyora
@RobinHOh my apologies sir. I had the mistaken impression that we were gonna discuss this on a rational basis. I am not interested in debating morality with you. On that front you can take whatever stance that makes you sleep at night good sir.
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