City corruption shock

15 February 2010 - 00:11 By NKOSANA LEKOTJOLO
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A damning forensic report has found that Johannesburg City Parks awarded multimillion-rand tenders to companies owned by friends of the department's managing director, Luther Williamson, and his wife.

The report, compiled by the forensics division of law firm Edward Nathan Sonnenbergs, and addressed to City Manager Mavela Dlamini, states that tenders for more than R117-million, involving "corruption and maladministration ... on a large scale", were irregularly awarded by the department.

The investigators report that they found that Williamson personally negotiated the purchase of City Parks' headquarters, in Braamfontein, for R12.8-million - 23 days after it was bought on auction for R2.24-million by a company belonging to a close associate.

The report does not reveal whether Williamson or his wife personally benefited from the irregularly awarded tenders.

But it does ask Dlamini to consider "mandating" the law firm to "register a criminal case so as to enable us to obtain relevant individuals' and entities' financial information and perform lifestyle audits to establish if there were any corrupt activities among them".

It also recommends that Williamson face disciplinary action - but none has been taken.

In October, the City Parks audit committee, which had examined the report, recommended that the company's board "seriously consider" placing Williamson on special leave pending an investigation, but this was not done.

Instead, last month, the entire audit committee was sacked and replaced.

The forensic report reveals that six companies with close links to Williamson and his wife, Adele, were awarded tenders worth a combined R85.5-million.

The report found that City Parks:

  • Awarded a R51-million tender to a company belonging to a business partner of Williamson;
  • Handed a R4-million tender to another company, a director of which is a close friend of Williamson's wife;
  • Awarded a R5.4-million tender to a company, partly owned by Adele Williamson's business partner; and
  • Bought its Braamfontein headquarters in 2007 for R12.8-million, 23 days after it was bought on auction by a company belonging to his associate for R2.24-million. The associate is named in the report.

Williamson, the report found, personally negotiated the building's purchase and, after that, City Parks awarded an R8.6-million tender to refurbish the building to another company of which the same associate is a member.

That same construction company built Williamson's palatial home in the exclusive walled-off security village of Kyalami Estates, in northern Johannesburg.

In addition, the company contracted to provide security at City Parks' headquarters is Uvikela Security, of which the same associate is listed as a member.

Williamson is not the only senior City Parks official to be fingered, however.

The report found that Ludwig Holtzhausen Snr, general manager of City Parks, received 10% kickbacks on three tenders.

The tenders, the value of which are not specified in the report, were awarded to companies belonging to a woman who listed her domestic worker and her husband as partners in order to secure contracts earmarked for black economic empowered companies.

The woman paid her domestic worker R3000 a month for being an equal partner in one company, and her husband received R7000 a month for being the sole shareholder of the other company. Those salaries, the report states, were "significantly lower than the market norm".

The report also states that Williamson and his management team contravened the Protected Disclosures Act by suspending two whistle-blowers whose information sparked the forensic investigation.

The two, whose names are known to The Times, were suspended in March last year after reporting corruption at City Parks.

The report states that, during the course of the investigation by Edward Nathan Sonnenberg, some City Parks employees were "terrified" of "even talking" to investigators.

"They indicated that if they are seen to be assisting us with our investigations they will be suspended immediately," the report says.

"They further indicated that whatever information and documentation made available to us is vetted first and only provided to us when it supports Williamson."

City Parks referred requests for comment to the City of Johannesburg. Williamson himself did not respond to requests for comment.

City spokesman Gabu Tugwana said: "The city is currently engaging the company board of its municipal-owned entity, City Parks, to ensure that appropriate governance protocols are observed in these matters.

"Until such time that the City Parks board and its management can satisfy the city on how these matters are concluded, the city cannot comment publicly. Comment at this stage would be premature and constitute contempt for the appropriate forums adjudicating in these matters."

Democratic Alliance ward councillor Annette Deppe accused City Parks of dragging its feet.

"If there are allegations that he [Williamson] is involved in corruption, then the public must know about it," she said.

Does government have the will to fight corruption?

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