The contractor to renovate Parliament precinct was convicted of theft and perjury

25 April 2023

The Bellville Commercial Crimes Court has convicted a contractor, Ridwaan Rajah, and his company Goodhope Plasters CC, who were contracted by the Department of Public Works (DPW) to do internal and external renovations to the parliamentary precinct, for theft and perjury. The State alleges that Rajah and his company were awarded an R7, 3 million tenders by the DPW to do internal and external renovations to the Parliamentary Precinct situated at 120 Plein Street, Cape Town.

For the company to execute the project, the Department of Public Works (DPW) acquired the services of a professional consultant team comprising an architect (who also acted as a principal-agent), a quantity surveyor, and an electrical engineer. The final value of the contract amounted to R10,8 million.

The DPW manager, the principal agent, and the quantity surveyor signed the final statement on 13 February 2014. Rajah on behalf of his company, did not accept or sign the final statement, on 23 September 2015, he instituted motion proceedings in the High Court of South Africa: Western Cape Division. In the motion proceedings, the Minister of the DPW was the first respondent and the architect (principal-agent) was the second respondent.

Rajah stated in his founding affidavit that the motion of the proceedings related to a final account presented to his company for approval, involving a total sum of over R10 million. He complained that the final account excluded an amount of R455 296.00 (excluding VAT). According to him, the above amount constituted an advance he paid to a sub-contractor, Winlite Aluminium, and Doors (Pty) Ltd for goods manufactured and kept off-site.

He applied to the court to obtain a court order to compel the Minister of Public Works and principal agent to include the R455 296.00 (excluding VAT) in the final account as being due and payable to him and his company. On 14 March 2011, the department paid R718 867 to the company which included the advance payment amount of R455 296 (excluding VAT) or R519 037.90 (including VAT).

Rajah further stated in his founding affidavit that the project was completed by him and that he has not been compensated for the advance made on behalf of the first respondent. On 26 October 2015, the court ordered the Minister and principal agent to amend the final account to include the sum of R455 296.00 (excluding VAT). The department paid R519 037.44 (including VAT) to the company on 19 November 2015, following the court order that was made.

Ronald Edward Rayners, the sole director of Winlite, denied his company, Winlite, received R455 296 (excluding VAT) as an advance payment for material kept off-site as alleged by Rajah and his company in the founding affidavit of their application. He also never revealed to the DPW or the high court in his notice of motion proceedings that he did not pay the full amount of R455 296 (excluding VAT) over s sub-contractor.

The prosecutor Adv Aurelia Genevieve Harmse argued that the conduct of the accused was unlawful and intentional, and he caused harm to the interests of the public as funds that came from the public purse were involved and stolen by the accused and his closed corporation. After thorough and convincing arguments, the court convicted Rajah and his company on charges of theft in the amount of R 519 037.90 (incl VAT) and also convicted Rajah on a charge of perjury after he lied in his founding affidavit in support of his notice of motion proceedings to the high court. Rajah has been remanded into custody and his case has been postponed until 03 May 2023, for sentencing proceedings.

Issued by Eric Ntabazalila, National Prosecuting Authority, Regional Communications Manager, Western Cape, 25 April 2023