The DA in Tshwane has decided to open a fraud charge against deputy mayor Eugene Modise after an investigative report concluded he unlawfully benefitted from a multimillion-rand municipal security contract while he was a councillor.
This comes after the report was tabled in the Tshwane council meeting on Thursday. It revealed Modise was in breach of conduct by allegedly benefiting from the business of Triotic Protection Services.
Tshwane speaker Mncedi Ndzwanana said the report has confidential contents and cannot be in the public eye.
“I rule the report be considered in committee given the information contained,” said Ndzwanana.
DA Tshwane finance spokesperson Jacqui Uys said according to investigators, Modise never disclosed his involvement in Triotic Protection Services when he became a councillor in 2023, despite the firm holding a multimillion-rand security contract with the municipality.
The city has since extended Triotic’s contract twice without going out to tender, racking up at least R170m in irregular expenditure.
The misrepresentation by Modise in failing to declare his interest in Triotic and the prejudice suffered by the city through the irregular extension of the contract justifies a criminal charge of fraud
— Jacqui Uys, DA Tshwane finance spokesperson
Modise reportedly told investigators he had sold his shares through an instalment sale agreement, but failed to produce documentation to prove it. Even if such a sale existed, the investigators found he retained a beneficial interest in Triotic, meaning he continued to stand to gain financially.
The report also found Modise received rental income from the property at which Triotic operates.
“Despite being given two opportunities to provide evidence he had severed ties with the company, Modise failed to refute the allegations or provide supporting documents,” Uys said.
Investigators recommended his removal from office and referral of the matter to the Gauteng MEC for co-operative governance and traditional affairs, Jacob Mamabolo.
However, the DA said the ANC and its coalition partners kicked the can down the road by referring the findings to a council committee instead of acting on what it described as “clear-cut evidence” of wrongdoing.
“The misrepresentation by Modise in failing to declare his interest in Triotic and the prejudice suffered by the city through the irregular extension of the contract justifies a criminal charge of fraud,” said Uys.
Uys said the DA has informed the council speaker it does not regard the report as confidential and intends to use it to open a criminal case with police.
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