Shabangu building to go under the hammer

Businessman Roux Shabangu's Sanlam Middestad building in Pretoria will go on auction next week.

The High Court in Pretoria had accepted Nedbank's bid to sell the property, the Sunday Independent reported.

According to the report Shabangu, 39, had failed to keep up payments on his R320m bond Nedbank granted him in January 2011.

Shabangu put the value of the building at R850m. He bought it for R220m and registered it in his company's name, Roux Property Fund, in January 2011.

The businessman entered into a 10-year lease agreement with the public works department on the police's behalf in May 2010.

Public Protector Thuli Madonsela found that former police commissioner Bheki Cele unlawfully entered into the lease for the building, and for another building in Durban, with Roux Property Fund.

President Jacob Zuma fired Cele from his post in June 2012.

According to The Sunday Independent the Sanlam Middestad building had been empty ever since the lease was cancelled and tenants left.

Nedbank's Tabby Tsengiwe confirmed the bank had obtained a date for the sale of the building, in execution of the high court's judgment.