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The Joburg Property Company (JPC) wishes to clarify recent allegations regarding the Proton House settlement agreement and the unfounded claims linking the matter to political developments within the City of Johannesburg.

JPC has noted recent public statements by former Executive Mayor Dr Mpho Phalatse and other political figures alleging that the Proton House settlement was corrupt and that funds associated with the matter were used for improper political purposes.

The entity categorically rejects these allegations.

The Proton House matter relates to a lease agreement entered into between JPC and Bertocure (Pty) Ltd, a subsidiary of Ntshwese Projects. Contrary to allegations that have been made in the public domain, the companies involved were established in 2014 and 2008 respectively and were not created shortly before the settlement was concluded.

The settlement was reached in accordance with Clause 6.3 of the lease agreement and arose from JPC's contractual obligation to reinstate the landlord's white-box specifications as stipulated in the agreement entered into by the City of Johannesburg.

JPC wishes to place on record that the settlement was a lawful contractual resolution and not an irregular payment. All legislative, governance and internal approval processes were followed in the execution of the settlement. The costs associated with the reinstatement of the property were determined through bills of quantities prepared by an independent quantity surveyor and were based on the landlord's specifications.

The entity further rejects allegations that the reinstatement costs were inflated or that any portion of the settlement amount was used for purposes unrelated to the contractual obligations arising from the lease agreement.

JPC is also not aware of any evidence linking the Proton House settlement to allegations of payments to councillors or to any political processes relating to motions of no confidence within the City of Johannesburg. Such allegations remain speculative and unsupported by any findings of a competent authority, law enforcement agency or court of law.

Furthermore, while reference has been made to alleged actions by a previous board regarding the Chief Executive Officer, JPC wishes to clarify that no formal charges were instituted and no findings of wrongdoing were made in relation to the Proton House settlement.

The entity remains committed to transparency, accountability and good governance in the management of public assets and public funds. JPC will continue to cooperate with any lawful oversight or investigative processes and welcomes fact-based scrutiny of its operations.

JPC notes with concern the continued dissemination of allegations that may create a misleading public narrative regarding the entity and its officials. The entity reserves its rights in relation to any false, defamatory or misleading statements that may damage its reputation or undermine public confidence in its work.

Issued by the City of Johannesburg