A department of public works anti-corruption investigation says senior officials may have engineered an artificial crisis to push through a R70m lease deal to accomodate employees from the Investigating Directorate Against Corruption (Idac) in Pretoria.This has prompted calls for an external investigation into the conduct in the matter, and minister Dean Macpherson has approached the National Treasury to guide an independent investigation into an irregular lease for a vacant Pretoria building.The preliminary investigation submitted to Macpherson in April flagged multiple irregularities in an agreement for Pretoria offices awarded to All Top Properties for R69.5m.Investigators found that Idac had originally been earmarked for alternative accommodation at a Council for Scientific and Industrial Research (CSIR) property in Brummeria after a procurement process had already been completed and approved.However, that lease never materialised because ministerial concurrence required under a departmental directive was never obtained.“The inability to obtain the concurrence of the minister for accommodation to house Idac was intentional to create an urgent need to accommodate Idac at 146 Lunnon Road,” the report states.“This might give credence to the allegation that there was an attempt to advance a lease transaction without proper authorisation, leading to contravention of internal directives and potential breach of governance and protocol.”Investigators noted that the submission seeking the minister’s approval appears to have stalled with the then deputy director-general for real estate management services, who had left the department by the time the investigation was conducted.A second major concern raised in the report relates to what investigators describe as a “self-created emergency” that was later used to justify replacing the original occupant of the Lunnon Road building.The building had initially been leased to the now-defunct department of public enterprises (DPE), but officials later sought to substitute the DPE with Idac.“Following what we perceive to be a self-created emergency, a submission to substitute the DPE from the existing lease agreement with Idac was prepared and recommended,” investigators found.The report also raises serious questions about the tender award process itself.According to investigators, Bid Evaluation Committees (BECs) repeatedly recommended that the tender be cancelled because bidders were non-responsive and failed to meet requirements.Despite this, the National Bid Adjudication Committee (NBAC) rejected those recommendations and approved the award to All Top Properties.“The BEC forwarded two submissions to NBAC requesting the cancellation of the tender and despite this, the NBAC approved the award of the tender to All-Top Properties,” the report states.“The approved bidder did not submit their B-BBEE certificate or affidavit before the tender closing date. It has been discovered on their CSD report that they are B-BBEE non -compliant.”Investigators further found that this may have contravened National Treasury rules requiring higher-level approval when bid adjudication committees deviate from evaluation committee recommendations.Although no money has yet been paid because the lease only becomes effective once the building is occupied, investigators raised concerns that the state remains exposed.“The landlord may potentially approach the court to enforce occupation of the building or seek financial relief. If this course of action is pursued by landlord and the court awards judgment in favour of the landlord, it may likely constitute irregular expenditure,” the report read. Macpherson said, although “outraged” over the findings, he rejected its recommendations.“These damning findings are exactly why an internal preliminary report by the department is not enough. The department cannot place blame on one person who has already left, while others who may have created, approved, enabled or ignored this situation escape accountability,” he said.“We need the National Treasury to provide direction and requirements as to an independent investigation to identify every official involved in this lease agreement.”Sowetan
Treasury asked to probe red flags over R70m building lease
A department of public works anti-corruption investigation has raised concerns that officials may have engineered an artificial crisis to push through a R70m lease deal, prompting calls for an external investigation.















