The woman who claims to be the majority shareholder of SKG Africa, a property company that is getting paid R42-million per month from its leasing contracts and hailed as the government’s landlord, failed to answer a single question sent to her this week.
SKG Africa has received the majority of government leases. This is despite allegations of BEE fronting and corrupt relationships with some state officials.
Department of Public Works and Infrastructure (DPWI) minister Dean Macpherson confirmed the matter on Friday. Through the spokesperson, Lennox Mabaso, Macpherson confirmed to Sunday World that he has launched an investigation. This is regarding allegations of mismanagement and irregular payments on lease contracts. These were entered into by his department and private landlords.
Probe to focus on top 10 highest paid landlords
Macpherson said the focus would be “on the top 10 highest paid landlords for the period 2021/22 and 2022/23 financial years, which includes SKG Africa”.
The Auditor General’s report, according to Mabaso, revealed irregularities. It revealed “several instances of suspected mismanagement with private sector lease agreements at the DPWI”. These have resulted in recurring overpayments, the report said.
Mabaso also confirmed that SKG Africa and its associates have a total of 81 leases with the government.
“It is, however, important to distinguish these contracts. These lease contracts were not awarded to SKG and its associated companies per se. The company… acquired the buildings within which state departments have been accommodated over the years,” he said.
16 state departments lease from SKG Africa and its associates
He also revealed that 16 state departments and agencies are leasing their offices from buildings owned by SKG Africa and associates.
“The total monthly rental amount to SKG and associated companies amounts to R42-million per month,” he said.
SKG Africa was flagged after it was overpaid by the department for R43-million. Officials believed to be in cahoots with the company are facing an investigation.
“The CFO has flagged a few companies. And the system glitches within the department sometimes create overpayments to various landlords. Although the CFO mentioned figures, the department still had the responsibility to do reconciliations with individual landlords. And he must also agree on a figure (if at all), so one cannot place emphasis on the R43-million.” Mabaso said.
There was no apparent wrongdoing by any official in this regard, he added.
“However, where there are issues caused by officials, there are consequence management processes. These are carried out by the department and dealt with.”
BEE partner accuses us of illegally obtaining documents
SKG Africa director Jean du Plessis is using Nontutuzelo Mbiza; the woman claims to own 51% of the company. But this she week failed to answer a single question regarding “her” company for BEE fronting.
Mbisa claimed she was unable to answer our questions. She said this is because our questions are based on “privileged communications within the DPWI”.
“It would accordingly be highly irregular and inappropriate for us to now respond through your publication to what are, on your version, internal DPWI documents. We confirm that should DPWI wish to engage with us on any issue, we will be more than willing to do so.
“In addition, your possession of these documents is, to say the very least, most concerning. And we can only assume that they were illegally obtained, given your refusal to disclose your source. Consequently, any article published based on such illegally obtained documents, or any other such, would also be illegal. And, additionally, it would amount to a flagrant disregard of my rights and your obligations.
Threatened to sue
Mbisa also added a veil of threat.
“I reserve our rights to pursue damages against the newspaper and yourself should any unlawfully obtained information and/or defamatory information be published in respect of us,” she wrote in a statement to us.
Mabaso said the department was aware that “Jean du Plessis is a director/shareholder in both companies. According to our records, SKG Africa has another director/shareholder or BBBEE partner, Ms. Nonthuthuzelo Mbiza. Whilst Tacora has only Mr. Du Plessis.”
He said the department currently has five lease agreements with Tacora at R6.7-million per month.
SKG Africa under investigation by public protector
“According to our records, SKG Africa has a Level 1 BEE compliance. While Tacora Investments’ status is unknown.”
Mabaso also confirmed that they are aware that SKG Africa is under investigation by the public protector’s office.
“We are aware of a probe by the Public Protector. The department received a letter from the Public Protector in this regard. And the department is cooperating with them accordingly,” he said.
The minister also released a statement on Friday, announcing that he has roped in the Special Investigation Unit (SIU). He has asked its head, Advocate Andy Mothibi, to advocate for Presidential Proclamations that will investigate various allegations. These are allegations of mismanagement, irregular payments on lease contracts with private landlords. And also payment irregularities related to emergency day-to-day facility maintenance.
Du Plessis failed to answer three questions sent to him this week. The questions included his response to allegations that he was using Mbiza for BEE fronting. As well as who’s explaining on why he is signing off documents at SKG Africa. Lastly, on why Mbiza claims she is a majority shareholder.
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Mzilikazi wa Afrika
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We tried for government tenders as Black landlords but every building and lease contract belonged to Whites.
When the director of Public Works held a meeting to discuss the issue of BEE partnership, the white landlords were not keen and told us that they could not accommodate us because the buildings are family trusts and therefore not able to add us as part of a family trust. I will now pursue the matter because there is a lot of fronting by the White companies
I would prefer that the focus is on uncovering corruption, rather than race. Lease corruption usually needs 2 parties.
I hope this is investigated quickly and thoroughly.