By Anna Majavu
Parliament's police portfolio committee will block the Independent Complaints Directorate's (ICD) request to Treasury for an extra R36-million to cover an expensive building lease with businessman Roux Shabangu.
The ICD told the committee yesterday that the Department of Public Works was in a "huge mess", and had ended up moving into new headquarters that is costing R36-million more than what they had budgeted for.
Public Works, in charge of renting buildings for all government departments, was in the news again two weeks ago following revelations that it had rented the new ICD headquarters owned by Shabangu at a cost of R882000 a month - though the ICD had been set to move into another building at R420000 a month.
ICD executive director Francois Beukman said the ICD had installed R770000 worth of cables in the cheaper building, but could not move in because of repeated delays in getting the building ready for occupation.
Public Works had rented Shabangu's building for the Department of Human Settlements, but told the ICD they could have it if they "swopped".
ICD spokesman Moses Dlamini said they never knew that the Shabangu building costs double the amount.
"In this entire situation the ICD did not know all the details. The ICD did not have a copy of the lease [and] had the understanding that this move would be purely a swop." Dlamini said.
"There was no indication that the building would cost more."
Dlamini revealed that the ICD had received a "huge, huge invoice" from Public Works for R25-million for various buildings they were leasing. After complaining, Public Works reduced this amount to R12-million. But the ICD was still not sure what they were being billed for.
"There is a huge mess with regard to Public Works' accounting for the buildings, as well as with regard to the billing system in place. Basically, one does not know what one is paying for."
But committee chairwoman Sindi Chikunga of the ANC, said, "I can't imagine how you negotiate to swop [buildings] but don't talk about the cost implications. Why did you move to the building when in the first place you did not have money to pay?"
Velaphi Ndlovu of the IFP hinted to Beukman that if he were found guilty of incurring fruitless expenditure by paying inflated rent, he could be jailed for five years.
Public Works director-general Siviwe Dongwana will be summoned next week by the committee to explain the lease.
Source: Sowetan
Publisher: I-Net Bridge
Source: I-Net Bridge