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City of Tshwane media statement .pdf


Original filename: City of Tshwane media statement.pdf
Author: Anthony van Tonder

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City of Tshwane media statement

CITY HALL CORRUPTION: MAYOR MSIMANGA ANNOUNCES
DISCIPLINARY ACTION TO BEGIN
18 October 2016
Release: immediate
After a visit last week to the Tshwane City Hall, Mayor of Tshwane Solly Msimanga has
announced the referral of several City officials to internal disciplinary processes for the
botched City Hall project.
The officials include two senior Directors in the Mayor’s Office, who served in the office of
former Mayor Ramokgopa, who will undergo internal disciplinary hearings next month, and
have been served with notices to appear.
Further referrals to disciplinary hearings will follow ongoing investigations.
Mayor Msimanga said: “The Tshwane City Hall upgrade project was tainted by corruption
and fraud at the very highest levels, and was forced through and managed directly by the
previous Mayor’s office. The people of Tshwane were ‘robbed’ of R90 million in corruption
and I am determined to see justice done.”
This disciplinary action comes after Mayor Msimanga laid criminal charges against the senior
masterminds of this scheme, last month, and criminal investigations with the SAPS
Commercial Crimes Unit are ongoing.
Mayor Msimanga said: “We now have both criminal and internal disciplinary processes
underway. Those responsible will be taken to task, and when these processes are complete,
we will pursue the guilty for every cent that was stolen from the people.”
Mayor Msimanga has revealed a scheme created by the previous Mayor’s Office to sign off
the R138 million upgrade, flouting the law and Tshwane’s own rules, including side-lining the
Metro’s Chief Financial Officer, ignoring National Treasury and failing to pass the budget
through Council as required by law.
Instead, a multi-layered scheme was concocted to award the four-year R138 million
contract without proper approvals and budgeting, to a contractor pre-selected by the
Mayor’s Office, at R88 million more than was required for the project.
Under this scheme the contractor installed bathroom tiles at four-times the market price, and
wallpaper at R4,000.00 per metre, among other inflated prices.
Mayor Msimanga said: “The people of Tshwane were ‘robbed’ of tens of millions of rands at
City Hall, there is no value to show for the enormous amount spent and the City deserves
answers.”
The contract for R138 million went to a pre-selected contractor, whose members the City of
Johannesburg have a criminal case against for tender irregularities and cost inflation.
The contractor began work, without proper costing oversight from the City of Tshwane, and
officials of the Mayor’s office meant to keep an eye on the contractor instead allowed the
work to proceed unchecked and with no regard for escalating costs - The previous Mayor’s
office failed to have independent costings or quantity surveying done.

The building work caused major damage to the historic City Hall building, compromising its
structure, and caused R18 million damage to the musical organ, which Mayor Msimanga
revealed during a media tour last week.
Mayor Msimanga said: “In this project, it appears that officials were complicit in breaking the
law, inflating prices and allowing the contractor to fleece the City of Tshwane while
destroying parts of the City Hall building.”
The project now lies unfinished, after the City has paid over R90 million.
In addition, members of the same contractor appointed to the City Hall project, were
appointed by the previous Mayor’s Office to upgrade the Official Mayoral Residence in
Groenkloof, which Mayor Msimanga has also exposed as being another botched project
costing the people of Tshwane over R12 million and leaving the House unusable.


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City of Tshwane media statement.pdf - page 2/2

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