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The Executive Mayor of the City of Johannesburg, Cllr Geoffrey Makhubo, has warned the Board of Directors of the Johannesburg Property Company against acting in a manner that seeks to portray the City and its leadership as hypocritical in its commitment to the fight against corruption and malfeasance. 

This follows news of the return to work of the Chief Executive Officer (CEO) and Chief Financial Officer (CFO) of the JPC, who were previously on suspension, despite the City being in receipt of a damning report from the Special Investigating Unit (SIU) which investigated allegations of fraud and corruption in the procurement of services relating to the City’s COVID-19 response at the JPC. 

On 24 April 2021, the Executive Mayor penned a letter to the Chairperson of the JPC Board wherein he sought clarity and rationale for the Boards decisions in relation to the lifting of suspensions of the two officials. 

In his letter the Executive Mayor asked the Board to advise him if they had considered the following: 

1. The SIU report, its contents, findings and conclusions?

2. What the implications of the SIU report on the Boards advices and actions are?

3. What the impact of the SIU report on the Boards actions is and advices against the

requirements of the MFMA: Municipal Regulations on Financial Misconduct

Procedures and Criminal Proceedings?

4. What the legal standing of SIU reports and findings are for organs of state? and lastly;

5. The recent judgement in the matter Bandile Masuku v Special

Investigating Unit and Others (case no: P55372/2020). 

“As the Government of Local Unity, we are on record on our stated commitment to act against those against whom there is evidence of wrongdoing and maladministration. The Board’s stance and actions in this regard go against our commitment as the Shareholder of the JPC and as such, we have directed that the Member of the Mayoral Committee for Economic Development, under whom the JPC falls, engages the Board and expresses our concerns and dissatisfaction as the Mayoral Committee.” 

“As the City we cannot have entities and their Boards of Directors acting in ways which undermine our commitment to clean governance and accountability. Such actions are a direct challenge to the authority of the shareholder and may trigger action from the shareholder in defense of the assets and institutions of the people of Johannesburg” said Mayor Makhubo. 

The MMC for Economic Development is expected to report back to the Mayoral Committee once he has concluded these urgent engagements.

Issued by City of Johannesburg