Botes on edge of an abyss

Is the house of cards protecting Johannesburg Property Company (JPC) chief executive Helen Botes on the brink of collapse?

Something is afoot, given the number and frequency of allegations against her – and an apparent shift in support.

In the past week, the extension of her contract has been challenged. Plus, there are allegations about the diversion of outdoor advertising revenue into the coffers of a law firm which takes a 25% slice.

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Outdoor advertisers reportedly pay about R70 million a month. There was no public tender or bidding process for this lucrative new arrangement, which conflicts with the Municipal Finance Management Act (MFMA).

Given the history of accusations against Botes and the JPC, complainants could be wasting their time raising this matter in the media or with anyone in the current ANC-led multiparty government. Or perhaps this time it’s different.

Current ANC mayor Dada Morero was finance MMC when this new outdoor advertising arrangement was implemented. And he knew there were questions about JPC’s probity.

In March 2021, the Special Investigating Unit released damning findings against Botes and colleagues in connection with deep cleansing contracts during Covid.

In December 2022, under a DA-led coalition, she was suspended in connection with a separate investigation into an allegedly illicit payment of R27 million. That suspension was lifted in February 2023, under the ANC.

She was soon involved in further controversies, including the closing of Joburg’s Metro Centre and decanting its occupants under expensive leases and a planned revamp costing at least R12 billion.

In May this year, she was fingered in retired judge Sisi Khampepe’s report on the inner-city blaze that killed 76 people.

It was recommended that the JPC board “consider taking appropriate action against Ms Botes… for the total disregard of managing the Usindiso building”. Nothing happened.

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Botes has also violated the MFMA by signing numerous permission to occupy and build agreements, notably with Joburg City Parks and Zoo.

The upshot is that private companies exploit publicly owned properties, with no benefit to ratepayers. If this incomplete list of allegations against Botes doesn’t render her ineligible for a five-year contract renewal, there are more technical issues, including her age.

Retirement age for City of Joburg employees is 63. Botes was 61 years and six months old when the JPC board met on 7 October, allegedly on instructions from Morero, to approve a five-year extension. That would take her beyond 66.

According to City Press newspaper, Joburg City manager Floyd Brink refused to sign the renewal because her contract had already expired on 30 September.

That refusal is encouraging. So, too, is the apparent opposition of the SA Municipal Workers’ Union to Botes’ contract renewal.

The JPC board believes it alone has the authority to decide on her contract renewal. Yet boards do not have absolute authority.

Morero could partially redeem himself by using his position as shareholder representative to have the miscreant directors declared delinquent.

Grounds for such action include wilful misconduct and gross abuse of position.

If Morero doesn’t act timeously, others may lay charges. Or perhaps Brink’s refusal to sign Botes’ new contract will collapse this house of cards.

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