An investigation commissioned by the Tshwane metro has found that deputy mayor Eugene Modise failed to disclose a financial benefit derived from a security company that is doing business with the city.
The investigation, which was completed earlier this month, was launched after it emerged that a security company Modise used to own, Triotic Protection Services, had a multimillion-rand contract with the city.
The forensic report, which was submitted to council speaker Mncedi Ndzwanana two weeks ago, recommends “disciplinary proceedings against Modise”.
Its findings include:
- That Modise’s failure to disclose his business arrangement with Triotic was a material breach of the Municipal Systems Act;
- That he received rental income from Triotic, which is leasing a property of his in Arcadia, but did not disclose this in his declaration of interests for financial 2024 and 2025;
- That Modise violated the legal and ethical responsibilities of councillors by failing to declare several immovable properties in his name.
Modise did not respond to requests for comment.
The investigation did not find any wrongdoing or undue influence in the original awarding of the tender to Triotic, which guards 25 sites across the metro, including sport facilities and water treatment plants.
According to the report, Modise told investigators he had sold the company to its HR director in a “transactional arrangement” and had been paid in instalments.
It is not the right thing for me to discuss the legal opinion and the investigation. Please be patient with me
— Council speaker Mncedi Ndzwanana
The investigators said they had not been able to confirm this with the purchaser, and Modise had provided no documentation.
The report said Modise had resigned as a director of Triotic but continued to benefit from it financially. “Despite formal requests, Mr Modise has not furnished the investigating team documentary proof of the sale of Triotic, such as a written sale agreement.”
Modise founded Triotic in 2003. The public protector is investigating possible irregularities in the awarding of the Tshwane contract to the company.
Ndzwanana has referred the report for a legal opinion before submitting it to the city council. He told the Sunday Times yesterday he could not comment before this opinion was delivered.
“It is not the right thing for me to discuss the legal opinion and the investigation. Please be patient with me because once we are done with the legal opinion, we have to take it to council,” Ndzwanana said.
“It will be communicated once the report goes to council; remember, we are controlled by council. If I relay such information to the public, the council will question me big time.
“The only thing I would be able to discuss with you is the council resolution, for now it would be premature for me to say anything.”
Approached three weeks ago to discuss his role in Triotic and the purported sale of his share in it, Modise declined to offer a substantive response. He said the Sunday Times should not be “impatient” and should wait for council processes to be concluded.
Modise is also finance MMC and chair of the ANC’s Tshwane district.
The Triotic contract, initially set for three years, expired in February and has been extended on a month-to-month basis while a new tender process is finalised. The original scope of the contract has been extended over the years, generating more revenue for the company.
The DA, other opposition parties and the auditor-general have questioned the contract. Mayor Nasiphi Moya commissioned the forensic investigation after the DA raised concerns about potential undue financial benefits for Modise.
The report recommended that a compulsory annual ethics and disclosure training programme be held for councillors.
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