More than R272 million lost with renovation of municipal building in Germiston

The Freedom Front Plus (VF Plus) demands answers, and that officials and contractors involved in the renovation of the SAAME building in Germiston be held accountable after it emerged that the project incurred a loss of R272 million due to gross mismanagement and irregular expenditure.

The ten-storey building in Germiston, owned by the Ekurhuleni Metro, serves as municipal offices.

A report by the Internal Audit Department, which was presented to the Council, highlights systemic failures in project planning, financial oversight and contract management.

Contractors were paid millions of rand without any performance or scope monitoring. Some payments were made without approved documentation or progress reports. The Metro also paid over R134 million to companies whose contracts were later terminated due to non-performance.

This is not merely a case of incompetence; it is theft of public funds under the guise of service delivery.

Key findings include:

• Over R93 million paid to a single contractor without any progress reports.
• Duplication and overlap of services between contractors, with no regard for cost-effectiveness.
• Inventory losses of R6,9 million due to failure to secure assets.
• Payments were made despite knowledge of defective work.
• A total of R272 079 243,49 in irregular and wasteful expenditure.

Identified legal violations include:

• Non-compliance with Section 32 of the Municipal Finance Management Act (MFMA).
• Absence of mandatory reporting in terms of Section 34 of the Prevention and Combating of Corrupt Activities Act.

The Freedom Front Plus welcomes the report’s recommendation that the matter be referred to the police and the Special Investigating Unit (SIU).

The party further insists that internal disciplinary action against guilty officials be expedited and that, if found guilty, they face criminal prosecution.

Residents should not stand idly by while their tax money is looted with impunity.

The Freedom Front Plus will not rest until those responsible are called to account.

FF+ Manifesto on Justice reform: Improving the efficiency and effectiveness of the justice system.

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