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SIU to investigate Tshwane, Ekurhuleni

11 Nov 2010

Allegations of mismanagement and maladministration against the Tshwane and Ekurhuleni municipalities will be investigated by the Special Investigating Unit. The investigation has been authorised by President Jacob Zuma.

The proclamations, signed by Zuma, also authorise the unit to investigate allegations relating to procurements in both municipalities.

The SIU says that the proclamations cover the period between January 2007 and today although matters prior to 2007 may also have to be connected if they are connected or incidental to any of the matters that are mentioned in the proclamation.

Forensic investigators and accountants – along with specialists in the field of data forensics and analytics – will be part of the team working on the investigation. The SIU says the investigation is a matter of high priority and work has already started.

At the Ekurhuleni council, the SIU is investigating allegations over the procurement processes, widespread mismanagement, mis-spending of funds and misappropriation of the council’s money and its assets.

The Tshwane investigation will focus on recruitment, selection and appointment of municipal employees. It will also look into allegations of mismanagement of the council’s affairs, fruitless or wasteful expenditure, mismanagement of council funds and its procurement procedures.

The SIU will also investigate the actions of Tswane’s suspended city manager Kiba Kekana.

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If SIU can start with Ekurhuleni and ensure detailed investigation is done especially on housing in Ekurhuleni, I am positive you are going to find what will take you by storm.
- Social housing in Germiston is now turned into a quick profit making scheme( Pharoe Park, Airport Park and Dellville residential areas)
- The government’s policy on social housing never followed
- This policy states that the municipality will recoup what was incurred in building the housing facility in 4yrs, use the funds to build the housing facility of the same nature either sell or give away the initial housing to the tenants.
- This municipality has been collecting the rent from this 3 complexes and did nothing in trying to combat the issue of housing in the area. No other housing was build but rent goes up sometimes twice in one year.
- A company was formed to manage the complexes but serves as just the debt collecting agency not a property management company.
- Employees in the company are allocating tenders among themselves.
- Deposits are escalated to the highest you can imagine( 3X instalment and the current rental in advance- 3*R2400 + 2400 for that month
- Maintenance to the units was never done since their erection in 1998-2000
- Legal fees imposed on accounts where the tenant’s balance is less that the deposit paid.
- Suspense account sitting on more than R3 000 000.00 ( this could be
- Eviction of people with no alternative accommodation arranged.
- Attaching people’s property and failing to return them when the full balance is settled.
- Rental amounts increased with no consideration to the percentage stipulated in the lease agreement - Grace 

About the Author
Paddy Hartdegen

Paddy Hartdegen

Freelance columnist at property24.com.

Freelance columnist at property24.com.

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