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The Member of the Mayoral Committee (MMC) for Economic Development in the City of Johannesburg, Cllr Tom Mofokeng, on Thursday, 28 October 2021, addressed the findings of the City’s Group Forensic and Investigation Services (GFIS) forensic preliminary report into allegations of irregularities in the insourcing of security and cleaners in the City and its entities.

The report reveals that the exercise cost the City millions of rand in irregular, fruitless and wasteful expenditure under the previous administration. 

The then Executive Mayor of Johannesburg, Cllr Herman Mashaba, misled the public when he announced that the City would be insourcing security and cleaners to promote job creation and equity to the benefit of Joburg communities. 

GFIS investigations found irregularities in the recruitment processes of the security guards, which resulted in the fraudulent employment of foreigners, inaccurate vetting processes being conducted that resulted in the appointment of individuals with serious criminal records and the failure to implement a feasibility study into the project. 

Subsequently, the insourcing budget, which was around R557 million, was exceeded by a staggering R660 million, resulting in the overall insourcing budget to be R1.2 billion in total. 

“We as the Government of Local Unity are calling for accountability from the previous administration. People of this City deserve to know what happened to their R660 million. The findings confirm that the previous administration did not take due diligence when conducting the insourcing processes. Appropriate action will be taken against those who have failed to act in the interest of the municipality,” said MMC Mofokeng.

“It is imperative that swift action be taken against the individuals who were involved and benefited from the fraudulent insourcing project as well as the former officials who failed to perform the proper vetting of applicants thoroughly before confirming their appointments, consequently resulting in the appointment of individuals with serious criminal records,” added MMC Mofokeng. 

“The information provided to GFIS regarding the insourcing process was inconsistent and had discrepancies. The City’s departments and entities have been exposed to reputational prejudice due to these irregularities,” said MMC Mofokeng. 

“The City is conducting more investigations through GFIS of any illegal foreigners in its employ and legal action will be taken against any cases of illegally employed foreigners. The City is willing to give former mayor Mashaba an opportunity to respond and give his side of the story. If he is not willing to cooperate with the investigations, the City would consider taking legal action against him,” said MMC Mofokeng. 

Issued by the City of Joburg