General Bheki Cele and the R500m police deal
On 1 August MZILIKAZI wa AFRIKA and STEPHAN HOFSTATTER reported in the Sunday Times that police top Brass were "baffled" at the suddenness of Bheki Cele signing a 10 year lease, above the going market rates and without calling for a tender, to house the new HQ. The lease agreement for the Middestad property, entered into between Shabangu's company, Roux Property Fund, and the SAPS, signed by General Cele and public works official MB Tlolane was executed on June 1.
Subsequently the media reported that the police generals who questioned the deal were given rapid fire golden handshakes to get them out of the way and stop them from derailing the transfer to new premises.
Terblanche and Hlela confirmed that General Cele "personally led the drive to relocate the SAPS national and provincial headquarters in Pretoria and Durban at a total cost to taxpayers of R760 million".
Correspondence seen by the Sunday Times shows that the SAPS and public works officials questioned the need for moving premises. Therefore, clearly, a decision at a much higher level had to prevail to sweep away the concerns of the lesser officials. General Cele's submission that his involvement was limited to identifying the police's accommodation needs certainly does not square up with what is on record.
It is common cause that the deal never went out to tender and thereby it violated Treasury regulations that all contracts over R500 000 had to go through a competitive bid process. The Department of Public Works has been unable to explain why it had flouted Treasury rules.