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DA: Statement by Manny de Fritas, Democratic Alliance shadow minister of home affairs, calling on the Public Protector, to investigate Home Affairs lease deal (06/03/2012)

6th March 2012

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The Democratic Alliance (DA) will today be writing to the Public Protector, Adv. Thuli Madonsela, requesting that her office investigate yet another inflated lease deal signed by the Department of Public Works.

The Department of Home Affairs is paying rental of R33 million a year for its new Pretoria headquarters in the Hallmark Building. This is more than one-and-a-half times the amount paid previously for office space.

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ANC MP and Chairperson of Parliament’s Standing Committee on Finance, Thaba Mufamadi, is the chairperson of Manaka Property Investments (Pty) Ltd, which owns the Hallmark Building.

Mr Mufamadi is currently under investigation by Parliament’s ethics committee for potential conflicts of interest around his role as an MP and his business with government. The Public Protector needs to probe any improper or unlawful enrichment by Mr Mufamadi or any other individuals in this lease deal in terms of section 4(a)(iv) of the Public Protector Act.

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Besides Mr Mufamadi, who is the majority shareholder in the company, other shareholders include Limpopo premier Cassel Mathale and the former chairman of the Limpopo tender board, Jannie Moolman.

Home Affairs Minister Dr Nkosazana Dlamini-Zuma has referred questions on the tender process to Public Works while Director General Mkuseli Apleni has “rejected with contempt” any suggestion that a tender was awarded to ANC-connected business people. This is clearly not true.

It seems Public Works is increasingly becoming a front company that diverts public money away from service delivery programmes through inflated lease deals to senior politicians and well-connected individuals.

We trust that the Public Protector will conduct a full investigation into this matter.

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