Latest news with #R23
Eyewitness News
4 days ago
- Sport
- Eyewitness News
Public Protector refers tender for Lesseyton sports field to Hawks for criminal investigation
JOHANNESBURG - The controversial R23 million tender for the Lesseyton sports field in the Eastern Cape has been referred to the Hawks for criminal investigation. On Wednesday, Public Protector Kholeka Gcaleka held a media briefing to release findings of her investigations into the building of the stadium in Komani. The report found several procurement irregularities and that the appointed contractor failed to deliver, despite going over the budget by almost R5 million. READ: Public Protector finds some Gauteng public hospitals failed to respond to COVID-19 pandemic Contractor Thalami Civils Pty Ltd failed to deliver on an athletics track, a soccer and rugby field, netball, tennis and volleyball courts and grandstands as outlined in the bid specification. Public Protector spokesperson, Khulu Phasiwe, said the Enoch Mgijimi Municipality did not properly advertise the tender. "The advertisement has to be placed in three different publicly accessible platforms. The municipality only did so in two different platforms. Even the tender advertisement itself, the period was initially 30 days, but the municipality shortened it to 14 days without informing the participants." Phathiswe added that Thalami Civils didn't qualify for the tender as it scored the fourth-highest points among the bidders.
IOL News
6 days ago
- Business
- IOL News
KZN Cogta MEC demands clarity from eThekwini Municipality on R30 million matter and legal costs
KwaZulu-Natal Department of Cooperative Governance and Traditional Affairs (Cogta) MEC Reverend Thulasizwe Buthelezi. Image: KZN Cogta / Facebook The MEC for Cooperative Governance and Traditional Affairs, Thulasizwe Buthelezi, has written to the eThekwini Municipality, demanding a full breakdown of the costs related to the legal matter between the eThekwini Municipality and company, Daily Double Trading. In the letter, MEC Buthelezi stated that the expenditure, especially on litigation regarding this matter, was reckless. The eThekwini Municipality and Daily Double Trading have been involved in a protracted legal battle that was finally resolved by the Constitutional Court about a week ago which dismissed the City's appeal against an earlier ruling. At the centre of the dispute was a settlement agreement entered into between the company and officials of the municipality. Daily Double Trading had been one of the service providers for the municipality. However the municipality terminated the contracts it had with the company. The company challenged this decision in court, and an out of court settlement was then agreed upon between the officials of the municipality and the representatives of Daily Double Trading. The settlement was worth about R30 million. Later, the municipality attempted to disown the settlement agreement, arguing that the officials who authorised it had no power to do so. However the company challenged this in court and the court found in the company's favour. The municipality fought the matter all the way to the Constitutional Court, which dismissed the City's application for leave to appeal the judgment that had found in favour of the company. This ruling means that the City is now liable to pay approximately R30 million of the original amount and R23 million in interest. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading In his letter, MEC Buthelezi said, "A report is requested within 7 days, providing the total contractual losses suffered and the total legal costs incurred by the City in defending this matter, which proceeded to the Constitutional Court and was dismissed with costs." "Such a report should also clearly indicate what disciplinary action is being taken by the City. Furthermore, it must outline the oversight taken by the council in embarking on this reckless and costly litigation," said the letter. The MEC's letter comes after the City held a media briefing last week to discuss the court case and other legal matters. At the meeting, senior City officials said an employee who issued an illegal instruction to offer the settlement will be dealt with. THE MERCURY
IOL News
11-06-2025
- IOL News
SIU freezes Limpopo farm linked to R66 million lottery fraud scheme
The farm Portion 15 of Zandrivierspoort in Limpopo has been frozen by the Special Tribunal after the SIU linked its purchase to R66 million in misappropriated National Lotteries Commission funds meant for old age homes. Image: Pixabay / File The Special Investigating Unit (SIU) has obtained a preservation order from the Special Tribunal to freeze immovable property following a sweeping investigation into the alleged looting of National Lotteries Commission (NLC) funds earmarked for the construction of old age homes. The order forms part of a broader crackdown on a complex web of corruption involving the hijacking of Non-Profit Organisations (NPOs), fabricated grant applications, and the diversion of public funds into private hands. SIU spokesperson Kaizer Kganyago said the probe centred around three NPOs, Matieni Community Centre, Lethabong Old Age Home, and War Against Rape and Abuse (WAR RNA), which collectively received over R66 million in lottery grants 'under false pretences.' One of the central entities in the scheme is Matieni Community Centre, a defunct organisation that was allegedly fraudulently revived to secure funding from the NLC. 'The original members of Matieni Community Centre were unaware of the application, and the individuals listed on the NLC application were not legitimate members,' said Kganyago. Lethabong and WAR RNA were similarly compromised, with falsified documentation submitted by individuals who had no legal standing in the organisations. The SIU's findings paint a damning picture of how the R66 million in public funds were misused. Matieni alone received R23 million from the NLC. Of this, R5.975 million was transferred to the Mbidzo Development Programme, an entity linked to Collin Tshisimba, already implicated in other NLC fraud cases. A further R6.2 million was paid to Wa Rothe Construction. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Lethabong Old Age Home secured R20 million, with R15 million allegedly funneled into Mbidzo's account. WAR RNA also received R20 million, with R5 million redirected to Mbidzo. The investigation uncovered that Mbidzo, under Tshisimba's control, used the funds to pay attorneys for the purchase of a farm in Louis Trichardt, Limpopo. The property was registered under Promise Kharivhe, Tshisimba's life partner. 'The order of the Special Tribunal is part of implementing SIU investigation outcomes and consequence management to recover financial losses suffered by State institutions because of corruption or negligence,' Kganyago said. The preservation order is one of several legal remedies the SIU is pursuing under its statutory mandate. 'The SIU is empowered to institute a civil action in the High Court or a Special Tribunal to correct any wrongdoing uncovered during investigations caused by corruption, fraud, or maladministration,' Kganyago said. The SIU confirmed that any evidence pointing to criminal conduct has been referred to the National Prosecuting Authority (NPA) for further action, in accordance with the Special Investigating Units and Special Tribunals Act 74 of 1996. IOL News
IOL News
10-06-2025
- Business
- IOL News
eThekwini Municipality faces backlash over R23 million legal fees for R30 million payout
EThekwini Municipality is expected to pay R23 million extra after losing a legal battle to defend R30 million claim Image: Willem Phungula The eThekwini Municipality has defended its spending of R23 million in defending a R30 million payout. Last week, the city lost a bruising legal battle in the Constitutional Court in trying to overturn the lower courts' orders, which had dismissed its bid with costs. The latest ruling drew the ire of political parties and Cooperative Governance and Traditional Affairs MEC Reverend Thulasizwe Buthelezi, who also categorised the city's costs as wasteful expenditure, which he said must be recovered from the officials responsible for them. The ruling also drew attention to the city's former deputy manager, Sibusiso Makhanya, who, through his attorneys, penned a letter to Mayor Cyril Xaba asking him to take action against City Manager Musa Mbhele, whom he said was liable for this wasteful expenditure. Makhanya gave the mayor five days to take action or face potential legal consequences. He argued that the city charged him for causing it to incur costs similarly; therefore, to be consistent, the city must also charge Mbhele. The company, Daily Double Trading, has already calculated its total costs to R53 million and demanded that the city pay within five days. In the city's response to Makhanya, it defended the legal costs, saying the monies expended in defending the ratepayers' money did not constitute wasteful expenditure. 'There has never been an instance where the legal costs, for work done by the legal representatives, constituted wasteful expenditure, irrespective of the court outcome,' read the letter. The city further stated that the Executive Committee (Exco) fully supported the decision to approach the Constitutional Court and the Exco's resolution was reported to the council meeting of March 31, which also supported it; therefore, there was no need to refer the matter to the Financial Misconduct Disciplinary Board which Makhanya called for. Makhanya dismissed the city's assertion that the cost does not constitute wasteful expenditure, saying in terms of the Municipal Finance Management Act, fruitless expenditure is defined as an expenditure that was made in vain and would have been avoided had reasonable care been exercised. He said if the mayor does act, he would go to court as he indicated in the letter. The municipality has been in a legal battle since 2018 with the electrical company, Daily Double Trading, known as Pholobas. The company claimed it was legally blacklisted by the city and had done work for the city to the value of over R40 million. After the municipality objected, the business was granted a preservation order. The sheriff attached the city's assets, but the parties reached an out-of-court settlement in which the city, through its attorney, allegedly promised to pay the company R30 million, which the company accepted, but the city later disputed. The matter went to court again in 2021, however, the city did not oppose it, and the court ordered the city to pay R30 million with 10% interest from 2018. The municipality filed a leave to appeal, which was dismissed, and went straight to the Supreme Court of Appeal, which also dismissed the matter. [email protected]
IOL News
09-06-2025
- Business
- IOL News
Competition Commission recommends approval of Barloworld's R23bn acquisition
Barloworld is a step closer to being purchased by a consortium made up of Entsha, which was created for the deal by the Katlego Le Masego Trust, and Saudi Arabia's Zahid Group. Image: Supplied The Competition Commission has recommended that the Competition Tribunal approve the proposed R23 billion acquisition of Barloworld, subject to certain public interest conditions. This comes after the Public Investment Corporation (PIC), Barloworld's biggest shareholder with 21.93%, in April accepted the Standby Offer for the acquisition of all of Barloworld's ordinary shares for a cash consideration of R120 per share, with additional conditions, by the recently formed special purpose consortium, Newco. Newco on Monday said the recommended conditions principally relate to its commitment as stated in the PIC undertaking announcement to implement a 13.5% broad-based black economic empowerment transaction in Barloworld after the delisting of Barloworld from the JSE and A2X. Newco comprises Entsha Proprietary and Gulf Falcon Holding, a wholly-owned subsidiary of Zahid Group. The Commission's recommendation will now be considered by the Tribunal for approval. In addition to approval by the Tribunal, the Newco said the parties were continuing to work towards the fulfilment of the remaining conditions required for the transaction to become unconditional, including competition approvals from other jurisdictions. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Shareholders will be advised in due course as to material developments in this regard. Sydney Mhlarhi, spokesperson for Newco, said the Competition Commission's positive recommendation was another vote of confidence in the transaction and allayed concerns around a lengthy time frame to conclude the deal. 'We strongly believe that the transaction is positive for South Africa and will secure Barloworld's long-term future. It unlocks a material and highly attractive premium for shareholders and will create broad based economic and value benefits through the BEE transaction. We look forward to concluding the transaction in the near future,' Mhlarhi said. Last month, the international heavy industrial equipment and food and ingredient solutions group agreed to extend the Standby Offer to 30 June 2025. The Standby Offer is currently open and Barloworld shareholders who wish to accept the offer are encouraged to instruct their Central Securities Depository Participants (CSDPs) or broker to accept the offer on their behalf ahead of the acceptance deadline of 16h30 on 30 June 2025, after which, Newco will assess the level of acceptances received by this date and decide whether or not it wishes to waive the acceptance condition in whole or in part. 'We are confident, based on recent and ongoing discussions with shareholders, in relation to the Standby Offer, that we will receive sufficient levels of acceptance to proceed with the transaction,' Mhlarhi said last month. Following the opening of the Standby Offer, Barloworld has received several inbound queries from ordinary shareholders who have indicated to their CSDPs or brokers that they wish to accept the Standby Offer but have been advised that they will only be able to do so at a later stage. Barloworld said there was no lawful basis for a CSDP or broker to delay in accepting the Standby Offer on behalf of the shareholder in question, adding that CSDPs and brokers must review their processes to ensure that instructions in relation to the Standby Offer were processed without delay and appropriate confirmation was sent to the relevant shareholder once their instructions have been processed. 'The Standby Offer remains open and the timing for the implementation of the transaction will depend on acceptance levels of the Standby Offer and receipt of the required regulatory approvals,' it said. 'Barloworld Ordinary Shareholders should note that if Newco does not receive sufficient acceptances of the Standby Offer by 30 June 2025 to satisfy the Acceptance Condition, Newco may not waive the Acceptance Condition, in which event the Standby Offer will fail. Accordingly, Barloworld Ordinary Shareholders who have decided to accept the Standby Offer but have not yet done so should note that failing to accept the Standby Offer by 30 June 2025 may result in the Standby Offer failing.' BUSINESS REPORT
