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DA: Statement by Debbie Schafer, Democratic Alliance shadow deputy minister of justice and constitutional development, on the Shabangu lease claims (25/07/2011)

25th July 2011

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Reports yesterday that Roux Shabangu is looking to the Minister of Public Works, Gwen Mahlangu-Nkabinde, for payment in terms of the SAPS lease in Pretoria, reveal to what extent government coffers are being looted by the well-connected, at the expense of service delivery to the poor, seemingly with the assistance of the Minister.

Minister Mahlangu-Nkabinde was advised last year in November, by way of a senior counsel opinion, that the SAPS lease of the Sanlam Middestad building was unlawful and invalid. Prior to that, her Department received another senior counsel opinion to the same effect. Both opinions advised that application be made to court to have the lease set aside. Eight months later, this has not happened.

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In yesterday’s Sunday Times, Mr Shabangu is quoted as saying that he was offered R50 million by the Department to settle the matter. As if the events to date have not wasted enough public funds, it seems the Department has further exacerbated the situation by offering R50million for a lease that in all likelihood is not binding. This is utterly irresponsible. The only likely explanation appears to be that the Minister is trying to find another way for Mr Shabangu to make the money he would have made had the unlawful deal not been exposed.

On the face of it, the chances of the lease being declared invalid by a court appear to be very good. This is the simplest way to absolve the Department of any liability towards Mr Shabangu. If there is no valid lease, there is quite clearly no liability.

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If the Minister does not make the application to have the lease declared invalid as a matter of urgency, it will be quite clear that she is assisting Roux Shabangu to milk the state coffers.

The Minister needs to explain why there has been no court decision on the lease agreement, and whether, in fact, any application has even been made to court. Furthermore, the Minister needs to explain why, as reported in yesterday’s Sunday Times article, the Department is spending R3.3 million a month on the Sanlam Middestad building, which is standing unoccupied and unused. We shall ask Parliamentary questions to that effect at the first opportunity.


 

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