Public protector clears department in lease deal for Zondo commission

The Department of Public Works and Infrastructure on Wednesday welcomed the report by the public protector, which cleared the department of wrongdoing relating to the awarding of a lease agreement/tender to media company, Tiso Blackstar Group.

The lease was for the premises located at Hillside House in Parktown, Johannesburg, that initially housed the Commission of Inquiry into State Capture.

“The department is pleased to note that the public protector found that the department did not break any prescript or law in terms of the award to Tiso Blackstar. It has been cleared of any wrongdoing and non-compliance as the award was made in strict compliance with the regulations. National Treasury also sanctioned it,” said department spokesperson, Thamsanqa Mchunu, in a statement on Tuesday.

ALSO READ: Venue rental for Zondo commission has cost us R14.8m so far, reveals De Lille

In her report, Public Protector Busisiwe Mkhwebane found that the department did not improperly award the lease agreement to Tiso Blackstar, but followed a negotiated procurement process that was in line with Treasury regulations.

The public protector received a complaint on 12 November 2018 regarding the lease agreement from Tebogo Anthony Kaulela.

Kaulela alleged that the department awarded the lease agreement in violation of the Public Finance Management Act (PFMA). He also claimed that Tiso Blackstar was not regarded as a historically disadvantaged company and was not owned by historically disadvantaged individuals.

“Based on the evidence at my disposal, the [department] did not follow the competitive bid process when procuring accommodation for the judicial commission but followed the negotiated procurement process.

“The process that was followed by the [department] was in line with Treasury regulation 3 of 2016-2017 and the deviation in that regard together with the reasons provided for the deviation was approved by Treasury as justifiable and in line with the prescribed regulation,” the public protector stated in her report.

Lease agreement costs

In October 2019, Public Works and Infrastructure Minister Patricia de Lille revealed that the rental of the venue for the Zondo commission had cost R14.8 million.

Tiso Blackstar and Redefine Properties have received R1.2 million a month for office rental costs as well as the auditorium used for the commission, De Lille said in a written parliamentary response at the time.

The commission has since moved to the old Johannesburg municipal council chambers in order to save costs.

Meanwhile, the department said it was pleased that the public protector found that the department did not break any prescript or law in terms of the award to Tiso Blackstar.

“The Department of Public Works and Infrastructure is committed to ensuring compliance with the regulatory and constitutional framework governing procurement,” it added.

Compiled by Thapelo Lekabe

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