Mabongi Shauwn Mpisane is demanding the eThekwini municipality honour a secret R176-million housing contract on which it is backtracking. The contract, which never went out to tender, was suspended after the city's legal advisers pointed out that Mabongi Shauwn Mpisane had a criminal record.
Mpisane and her husband, former city policeman Sibusiso Mpisane, are known for their flashy lifestyle and for hosting lavish parties attended by celebrities and high-ranking politicians. Mpisane's company, Zikhulise Cleaning, Maintenance and Transport, of which she is sole director, is also listed in a forensic report on alleged financial irregularities and tender fraud within the municipality. The company has received more than R300-million in housing contracts from the city over the past five years - excluding the one for R176-million - while Mpisane is facing 172 new tax-related charges. And, despite probes into Mpisane and her company by the municipality, the provincial housing department and the SA Revenue Service, in September last year the municipality gave her the contract to build and complete 2114 low-cost homes in Umlazi, south of Durban. Normal tender procedures were not followed and the city suspended the contract after being advised to do so by its legal department.
The Sunday Times has established that Mpisane instructed her lawyers to force the municipality to reverse its decision. In a letter dated December 6 2011 from lawyer Themba Mjoli, the municipality was given a 24-hour deadline to reverse its decision. "Unless you do so immediately ... our instructions are to seek appropriate relief from the high court on an urgent basis," he wrote. This week Mjoli declined to comment, saying he had just returned from holiday and was unaware if the city had responded. Municipal spokesman Thabo Mofokeng failed to answer questions forwarded to him. According to municipal documents, Mpisane's company was hand-picked for the tender by the city's bid adjudication committee in September last year - despite it being tarnished by claims of poor workmanship in several of its projects.
Documents seen by the Sunday Times show that the committee used Section 36 of the procurement policy to bypass the normal public tender route. However, a month later the municipality's legal department objected and, on two separate occasions, warned the committee to reverse its decision. In two scathing letters, legal advisers questioned the selection of Mpisane's company, saying she had been convicted of VAT fraud in 2005. At the time, the company was fined R15000 and Mpisane received a three-year jail term suspended for five years.
The advisers also said the Close Corporations Act prohibited Mpisane from owning a business because of her conviction and sentence. "The amount of public money involved is such that the [committee] is obliged to follow the public tender process, so that council can get value for money," it said.
Housing head Cogi Pather wrote to Mpisane on December 2 explaining their decision to suspend the contract. Mjoli responded: "You are undoubtedly aware that the impugned decision was taken and made arbitrarily and capriciously." The lawyer attacked the municipality for ignoring the cost to Zikhulise of paying "1000 employees" and "18 subcontractors". "On a more serious note, the community, which is currently awaiting being accommodated before the builder's shutdown, is likely to be seriously angered by your impugned decision."
Mjoli also questioned the applicability of the Close Corporations Act in view of the fact that Mpisane's sentence had been suspended. Council minutes show that the tender in question was simply reconfigured from an old deal in 2006 for the construction of 3100 homes in Umlazi. The Mpisanes were then appointed as the main contractors but, after the auditor-general denounced the deal as highly irregular two years ago, work came to a halt. But early last year the provincial human settlements department approved the new, re-jigged contract to finish the work.
In 2010 forensic auditors Ngubane & Co recommended an investigation into Zikhulise and 34 other contractors. Two years ago, the Special Investigating Unit also began a probe of payments linked to a R37-million housing project in Durban's Lamontville township involving Mpisane.
The DA's Tex Collins, who has cried foul over the municipality's procurement practices for years, said: "Clearly all is not well ... any such work [Mpisane's company is involved in] should be stopped immediately for investigation." Mpisane and her husband, meanwhile, spent an estimated R1-million on an Egyptian-themed seventh wedding anniversary in March last year. Guests included socialite Khanyi Mbau, Khulubuse Zuma and May Mkhize, wife of KwaZulu-Natal premier Zweli Mkhize.
Source: Times Live
Showing posts with label Zikhulise. Show all posts
Showing posts with label Zikhulise. Show all posts
Sunday, January 15, 2012
Wednesday, January 20, 2010
The mystery of Mpisane millions
Three weeks after receiving R30-million from the eThekwini municipality, high-flying Durban couple S'bu and Shawn Mpisane have halted the completion of RDP housing projects in Umlazi, apparently because they have no money to continue the work. The R30m paid in December was part of a series of electronic payments amounting to about R219 million, which the company received from eThekwini last year. The last payment of R4 785 720 was made on December 14, two weeks before their A-list, bling party on New Year's Eve. That's when the big-spending former metro officer and his politically connected wife dazzled friends at their luxurious La Lucia home.
Top-end whiskies and champagne flowed, while they splurged on special thrones and showed off their new Rolls-Royce. Guests included national police commissioner Bheki Cele. While Shawn Mpisane, daughter of the late ANC local councillor Dumazile Flora Mkhize, is the one who was granted the Umlazi housing contract, it is her husband, Wiseman Sibusiso (S'bu), who has been the focus of media attention. While working as a metro police constable, with a salary of less than R15 000 a month, Mpisane raised eyebrows by arriving at work in a Lamborghini and living in a R17 million mansion. This week, he made headlines of a different kind when The Mercury's news editor, Philani Makhanya, laid a complaint of intimidation against him. The alleged intimidation came after Mpisane became aware The Mercury was investigating his affairs.
On Monday, workers of Shawn Mpisane's Zikhulise Cleaning, Maintenance and Transport company, as well as those employed by sub-contractors, in Umlazi, were told to go home because the company allegedly had no money to continue their work. An estimated 1 300 people, many from Umlazi, and their families have been affected, according to Ward 79 councillor Sthenjwa Nyawose. Mpisane had told him her company had received no money from the municipality since October. Despite repeated attempts to interview Shawn Mpisane, she failed to return calls to The Mercury as promised. As a result of the job and housing uncertainty, Nyawose described the situation in the township as "volatile but calm". "We are very angry, the councillors of Umlazi are fuming," he said. "As we speak, the project is not going on because the contractor has not been paid. The problem is the municipality is not coming up with the money."
Contradicting this, however, documentary records in The Mercury's possession indicate that more than R50 million was paid by the municipality to Zikhulise in November and December. Municipal manager Michael Sutcliffe confirmed a total of "around R300 million" had been paid to Zikhulise over 18 months and said the project had been completed in mid-December. The project involved building low-cost cost RDP houses on 4 500 sites in Umlazi B10, KwaMgaga and Umlazi Infill.
The Mercury has documentary proof that a total of R219 930 939 was electronically transferred from eThekwini to Zikhulise in 2009. In December alone, four payments totalling about R30 million were made. Nyawose said thousands of houses were still under construction or to be built in Umlazi, contradicting Sutcliffe's statement that all work had been completed. Sutcliffe explained that some funding was usually paid in advance. "Contractors submit claims based on work done; the city's professional team verify that and if such work has been done, payments are then made," he said. Like Nyawose, Sutcliffe confirmed that the development was initially a provincial project which the municipality was asked to take over. "In August, 2006, eThekwini municipality resolved to take over the project and become the developer and further agreed that the professional team and contractors... be kept for the duration of the project."
But just months after construction, some of the houses were crumbling, The Mercury established during a field trip. The houses were not plastered or painted. Some had no toilets, taps, baths or showers. An eight-member family living in a leaking, three-roomed house said their biggest concern was how they would eat. Only two members of the family were employed, one by Zikhulise and the other by one of its sub-contractors. "Eish, school has started and we can't take the children to school because we have no money," said one woman. Another angry man said the houses were of a poor quality because workers were told to rush their work.
Source: IoL
Top-end whiskies and champagne flowed, while they splurged on special thrones and showed off their new Rolls-Royce. Guests included national police commissioner Bheki Cele. While Shawn Mpisane, daughter of the late ANC local councillor Dumazile Flora Mkhize, is the one who was granted the Umlazi housing contract, it is her husband, Wiseman Sibusiso (S'bu), who has been the focus of media attention. While working as a metro police constable, with a salary of less than R15 000 a month, Mpisane raised eyebrows by arriving at work in a Lamborghini and living in a R17 million mansion. This week, he made headlines of a different kind when The Mercury's news editor, Philani Makhanya, laid a complaint of intimidation against him. The alleged intimidation came after Mpisane became aware The Mercury was investigating his affairs.
On Monday, workers of Shawn Mpisane's Zikhulise Cleaning, Maintenance and Transport company, as well as those employed by sub-contractors, in Umlazi, were told to go home because the company allegedly had no money to continue their work. An estimated 1 300 people, many from Umlazi, and their families have been affected, according to Ward 79 councillor Sthenjwa Nyawose. Mpisane had told him her company had received no money from the municipality since October. Despite repeated attempts to interview Shawn Mpisane, she failed to return calls to The Mercury as promised. As a result of the job and housing uncertainty, Nyawose described the situation in the township as "volatile but calm". "We are very angry, the councillors of Umlazi are fuming," he said. "As we speak, the project is not going on because the contractor has not been paid. The problem is the municipality is not coming up with the money."
Contradicting this, however, documentary records in The Mercury's possession indicate that more than R50 million was paid by the municipality to Zikhulise in November and December. Municipal manager Michael Sutcliffe confirmed a total of "around R300 million" had been paid to Zikhulise over 18 months and said the project had been completed in mid-December. The project involved building low-cost cost RDP houses on 4 500 sites in Umlazi B10, KwaMgaga and Umlazi Infill.
The Mercury has documentary proof that a total of R219 930 939 was electronically transferred from eThekwini to Zikhulise in 2009. In December alone, four payments totalling about R30 million were made. Nyawose said thousands of houses were still under construction or to be built in Umlazi, contradicting Sutcliffe's statement that all work had been completed. Sutcliffe explained that some funding was usually paid in advance. "Contractors submit claims based on work done; the city's professional team verify that and if such work has been done, payments are then made," he said. Like Nyawose, Sutcliffe confirmed that the development was initially a provincial project which the municipality was asked to take over. "In August, 2006, eThekwini municipality resolved to take over the project and become the developer and further agreed that the professional team and contractors... be kept for the duration of the project."
But just months after construction, some of the houses were crumbling, The Mercury established during a field trip. The houses were not plastered or painted. Some had no toilets, taps, baths or showers. An eight-member family living in a leaking, three-roomed house said their biggest concern was how they would eat. Only two members of the family were employed, one by Zikhulise and the other by one of its sub-contractors. "Eish, school has started and we can't take the children to school because we have no money," said one woman. Another angry man said the houses were of a poor quality because workers were told to rush their work.
Source: IoL
Friday, May 9, 2008
Metro deal for Metro cop’s wife
The wife of Durban’s "millionaire" Metro cop secured a R10,3 million housing deal funded in part by the eThekwini Municipality where he works.
S’bu Mpisane (48), a sergeant in the Metro police dog unit reportedly earning R15 000 a month, hit the headlines last week when it emerged that he and his accountant wife Shauwn Mkhize (33) own a R15,5 million mansion in La Lucia. Now questions are being asked about a housing tender granted to a company owned by Mkhize, her business dealings with the municipality and whether she declared her links to Mpisane and to an ANC councillor believed to be her mother. A lawyer acting for the Mpisane family has threatened to sue anyone who "defames" them.
The DA has written to the KwaZulu-Natal head of the Scorpions, calling for them to investigate Mpisane’s "lavish lifestyle". eThekwini councillor John Steenhuisen wrote that "it is abundantly clear that Mpisane could not afford this lifestyle on a police officer’s salary". The municipality paid R3,5 million in January 2004 to fund the Lamontville housing project and develop 277 sites. The balance of funding came from the Housing Department. Zikhulise Construction was awarded the tender to build the "top structures", according to a press release issued before the launch on
January 17, 2004.
The only company that corresponds on the eThekwini municipal suppliers list is Zikhulise Cleaning, Maintenance and Transport, which is owned by Mkhize. A previous member of the business was Dumazile Mkhize (65), an eThekwini ANC councillor who, according to Steenhuisen, is Mkhize’s mother.
The councillor has refused to comment and referred questions to the same legal team representing the younger Mkhize. The elder Mkhize reportedly resigned from the business on February 25, 2004 — a month after the tender was announced.
According to the municipality’s "vendor" records, Zikhulise’s listed "competencies" include civil construction, concrete works, fencing, general building work, paving, plumbing and roadworks. It can also supply building materials, cleaning supplies and chemicals, food supplies and stationery. According to a print-out of the municipality’s computerised records, Zikhulise has five full-time employees and lists its annual turnover at only R200 000.Mkhize this week did not deny securing the tender, but declined to comment and referred all queries to her legal representatives.
Lawyer Thipe Mothuloe — who is acting for her and her husband — said he is unable to comment on whether his client declared a conflict of interest as he has not seen the tender documents submitted to the municipality. "What is wrong with being a cop and being a millionaire? … What are you seeking to achieve with that line of questioning?" Mothuloe asked. He said he has been "instructed to institute legal action against the publications who have clearly defamed my client by suggesting he is a fraudster". "You must just be careful about that," he warned.
eThekwini city manager Mike Sutcliffe would not be drawn on whether Mkhize declared her interests or whether there is a conflict. "The Mpisane issue emerged out of our own investigations into procurement matters. I’m not going to answer to specifics now until our investigations are complete."
Another company of which Mkhize is the sole member, Ukhozi Civil Cleaning and Construction CC, is also on the eThekwini Municipality list. It too has five full-time employees, but has a far greater annual turnover of R5 million.
In 2004, Mkhize’s business was highlighted in the Soros Economic Development Fund annual report as a beneficiary of Nurcha, a not-for-profit construction finance company funded by the South African government and the Soros Foundation.
According to the report, Mkhize — an accountant — started business with contracts to renovate schools. In March 2003, it built 117 houses in KwaZulu-Natal.Not long afterwards, Mkhize received another construction contract worth about R4,7 million to build 307 low-income houses. She obtained a R1,4 million loan from Nurcha. According to the Soros report, she made a R290 000 profit. By 2004 she was involved in two other projects.
Mpisane has remained mum about the source of his wealth. "I do a lot of things other than being a policeman, but I cannot mention them right now," he said last week.
He also said he is a qualified pilot, a claim dismissed by the Civil Aviation Authority, which said his student pilot licence expired in March.
Source: The Witness
S’bu Mpisane (48), a sergeant in the Metro police dog unit reportedly earning R15 000 a month, hit the headlines last week when it emerged that he and his accountant wife Shauwn Mkhize (33) own a R15,5 million mansion in La Lucia. Now questions are being asked about a housing tender granted to a company owned by Mkhize, her business dealings with the municipality and whether she declared her links to Mpisane and to an ANC councillor believed to be her mother. A lawyer acting for the Mpisane family has threatened to sue anyone who "defames" them.
The DA has written to the KwaZulu-Natal head of the Scorpions, calling for them to investigate Mpisane’s "lavish lifestyle". eThekwini councillor John Steenhuisen wrote that "it is abundantly clear that Mpisane could not afford this lifestyle on a police officer’s salary". The municipality paid R3,5 million in January 2004 to fund the Lamontville housing project and develop 277 sites. The balance of funding came from the Housing Department. Zikhulise Construction was awarded the tender to build the "top structures", according to a press release issued before the launch on
January 17, 2004.
The only company that corresponds on the eThekwini municipal suppliers list is Zikhulise Cleaning, Maintenance and Transport, which is owned by Mkhize. A previous member of the business was Dumazile Mkhize (65), an eThekwini ANC councillor who, according to Steenhuisen, is Mkhize’s mother.
The councillor has refused to comment and referred questions to the same legal team representing the younger Mkhize. The elder Mkhize reportedly resigned from the business on February 25, 2004 — a month after the tender was announced.
According to the municipality’s "vendor" records, Zikhulise’s listed "competencies" include civil construction, concrete works, fencing, general building work, paving, plumbing and roadworks. It can also supply building materials, cleaning supplies and chemicals, food supplies and stationery. According to a print-out of the municipality’s computerised records, Zikhulise has five full-time employees and lists its annual turnover at only R200 000.Mkhize this week did not deny securing the tender, but declined to comment and referred all queries to her legal representatives.
Lawyer Thipe Mothuloe — who is acting for her and her husband — said he is unable to comment on whether his client declared a conflict of interest as he has not seen the tender documents submitted to the municipality. "What is wrong with being a cop and being a millionaire? … What are you seeking to achieve with that line of questioning?" Mothuloe asked. He said he has been "instructed to institute legal action against the publications who have clearly defamed my client by suggesting he is a fraudster". "You must just be careful about that," he warned.
eThekwini city manager Mike Sutcliffe would not be drawn on whether Mkhize declared her interests or whether there is a conflict. "The Mpisane issue emerged out of our own investigations into procurement matters. I’m not going to answer to specifics now until our investigations are complete."
Another company of which Mkhize is the sole member, Ukhozi Civil Cleaning and Construction CC, is also on the eThekwini Municipality list. It too has five full-time employees, but has a far greater annual turnover of R5 million.
In 2004, Mkhize’s business was highlighted in the Soros Economic Development Fund annual report as a beneficiary of Nurcha, a not-for-profit construction finance company funded by the South African government and the Soros Foundation.
According to the report, Mkhize — an accountant — started business with contracts to renovate schools. In March 2003, it built 117 houses in KwaZulu-Natal.Not long afterwards, Mkhize received another construction contract worth about R4,7 million to build 307 low-income houses. She obtained a R1,4 million loan from Nurcha. According to the Soros report, she made a R290 000 profit. By 2004 she was involved in two other projects.
Mpisane has remained mum about the source of his wealth. "I do a lot of things other than being a policeman, but I cannot mention them right now," he said last week.
He also said he is a qualified pilot, a claim dismissed by the Civil Aviation Authority, which said his student pilot licence expired in March.
Source: The Witness
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