Property mogul Jean Prieur du Plessis, whose company is raking in more than R40-million a month from government contracts, is under investigation for fraud and corruption following allegations of BEE fronting.
Du Plessis’s associated companies got at least 81 government leasing contracts valued at R42-million per month allegedly as a result of BEE fronting.
Sunday World can reveal that police are investigating the East London-based businessman, known as the government’s landlord, after MKP member of parliament Andile Mngxitama laid criminal charges against him at Boksburg police station in Ekurhuleni.
Mngxitama is accusing Du Plessis of BEE fronting and that he was awarded government leasing contracts worth billions of rands on the premise that his companies were black-owned entities.
Mngxitama said he couldn’t stand aside and watch Du Plessis using a “black face” to become a billionaire.
“I can confirm that I opened a case of fraud and corruption for contravention of the BBBEE legislation and policies against the owner of SKG Africa, “Jean du Plessis,” Mngxitama told Sunday World.
“In my complaint, we allege that Du Plessis uses a black woman for BEE fronting. He is using a loophole in the policy of the Department of Public Works and Infrastructure, which stipulates that an untransformed company may get condonation by showing that the buildings it will lease to the government are procured from a BBBEE-compliant entity.”
Mngxitama also confirmed that he has lodged a complaint against Du Plessis with the Public Protector.
Sunday World has seen a letter from the police to the Department of Public Works and Infrastructure in which they are asking to be provided with lease agreements they have with Intacora Investments, one of Du Plessis’ companies.
Police also requested “decisions of the bid adjudication committee, which set conditions for Jean du Plessis to produce a BBBEE certificate before he gets the tender”.
The department’s spokesperson, Lennox Mabaso, confirmed that it is cooperating with investigators.
“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.
Mabaso did not respond to direct questions sent to him about the new police investigation.
Sunday World reported last week that a public works internal legal opinion concluded that SKG Africa, one of Du Plessis’s companies, which was awarded a lion’s share of government leasing, “is not black-woman owned” based on central supplier database records.
We also reported that the legal opinion also states that SKG Africa “is alleged to have two directors, Nontutuzelo Mbiza and Du Plessis.
However, according to the central supplier database records dated 29 March 2023, the ownership of the company is set out differently in that SKG Africa is not 51% black-woman owned.”
The legal opinion also added that “according to the BEE exempted microenterprise certificate submitted with bids, SKG Africa is 51% owned by a black woman.
This, however, does not correspond with the CSD report dated 29 March 2023.”
Du Plessis denied the allegations levelled at him and told Sunday World that SKG Africa “is a transformed company”.
“I confirm that SKG Africa is 51% black owned, and I cannot disclose any further information as it is private and confidential.” Du Plessis said.
But the woman who Du Plessis has been punting as his BEE partner, Nontutuzelo Mbiza, and that she owns 51% of SKG Africa, has allegedly been living from hand to mouth, borrowing as little as R100 from friends while she is supposedly a millionaire.
Mbiza denied Du Plessis was using her for BEE fronting.
“I am not involved in fronting. I deny that I am being used by anyone.” She said.
Mngxitama claims documents will show that Du Plessis offered to give Mbiza 51% of that company, but she failed to meet his conditions.
Minister of Public Works Dean Macpherson has asked the Special Investigation Unit head advocate Andy Mothibi to motivate presidential proclamations to investigate allegations of mismanagement and irregular payments made concerning lease contracts entered with private landlords, including SKG Africa.
