Latest news with #R1-billion
eNCA
5 days ago
- Business
- eNCA
Gauteng waste management
JOHANNESBURG - Some municipalities in Gauteng are using private service providers when their garbage trucks break down. In some instances, just nine of more than 100 vehicles are on the road. This forces a reliance on private companies to keep up with crucial service delivery. Answering written questions from the Democratic Alliance in March, the Cooperate Governance and Traditional Affairs MEC revealed that Tshwane relies on private service providers to manage waste collection. In Johannesburg, 79 trucks were operational, with 45 out of service at a repair bill of nearly R1-billion. The situation was worse in Ekurhuleni. Just nine of more than 100 trucks were on the road at the time. This forced the city to reach into its R26-million waste management budget to secure private collectors.
Daily Maverick
25-05-2025
- Politics
- Daily Maverick
‘New evidence' — stalled R1bn Malusi Booi and Ralph Stanfield tender fraud case still on track
The DA's former Cape Town mayoral committee member Malusi Booi is not necessarily in the clear. This comes after the provisional dropping of charges linked to allegations of unlawfully awarded R1bn in contracts, against him and suspected 28s gang boss Ralph Stanfield. Former City of Cape Town DA human settlements mayoral committee member Malusi Booi took to social media a few days ago and thanked several people for believing in his 'innocence' after commercial crime charges against him were provisionally withdrawn. But Booi and his co-accused, including suspected 28s gang boss Ralph Stanfield, have not been acquitted or officially cleared of the charges. The National Prosecuting Authority (NPA) and the South African Police Service (SAPS) have made it clear that new evidence, which is being investigated, necessitated the provisional withdrawal. This means that the charges can still be reinstated and that the new evidence may produce more criminal accusations or a bolstered case. Politics and policing Investigations into issues linked to Booi and Stanfield have become highly controversial – and political – and have led to accusations about what has been motivating police to act. The City of Cape Town is DA-run while the SAPS is viewed as an ANC remit, so the overall situation creates the impression that tensions between the two parties are at play. This weekend, Booi took to social media and effectively said he was the target of a smear campaign, much like Mayoral Committee Member for Safety and Security JP Smith's insistence after a raid on his office earlier this year that has been linked to issues involving Stanfield. While there have been smear campaign insinuations and while no one in the matter has been found guilty in a court, City of Cape Town officials have acknowledged dodgy dealings relating to its human settlements arena. Carl Pophaim, who replaced Booi as Cape Town Mayco member for human settlements, previously told journalists that various investigations were focused on 'part of this one singular thing, an attempt to capture human settlements and construction in Cape Town'. Merged, then provisionally dropped Booi and nine others were accused of being involved in a tenders-for-cash enterprise, which the State has alleged was headed by Stanfield and his wife, Nicole Johnson. The tenders flagged in the case were allegedly worth more than R1-billion. Booi faced allegations that he accepted gratification from Stanfield and, in exchange, used his influence over tenders. Aside from those commercial crime charges, Stanfield, Johnson and several others also face other criminal accusations. Stanfield, for example, faces accusations that he was involved in the 2019 assassination of then Hard Livings gang boss Rashied Staggie. Other charges against Stanfield and Johnson's co-accused in this case relate to the 2023 murder of City of Cape Town staff member Wendy Kloppers, who was shot at a housing development site in Delft. She was killed, apparently because she had refused to give in to gangsters demanding contractors' work. The commercial crime case, in which Booi was the main accused, had been merged with the criminal case in which Stanfield and Johnson were the key accused. But on Friday, 23 May 2025, the tender-related commercial crime charges were provisionally withdrawn against Booi, Stanfield, Johnson and nine others. While Stanfield, Johnson and several others remain in custody because of the criminal charges they face in the case set to resume in July, Booi, who was previously released on bail, no longer faces formal accusations. 'Purpose was to destroy me' After the charges were provisionally dropped on Friday, Booi left the Cape Town Magistrates' Court and told journalists he was 'relieved' and was headed home 'to start a new life'. Booi also took to the social media platform X that day to further express himself. NEWS JUST IN [WATCH] Fraud related charges against former City of Cape Town Human Settlements MMC Malusi Booi and nine others have been withdrawn. They relate to a billion rand housing tender fraud within the city's human settlements directorate @NtuthuzeloNene — EWN Reporter (@ewnreporter) May 23, 2025 He posted: 'I would like to take this opportunity to thank my 84-year-old mother, my ancestors, my partner, my entire family, friends, Nitta & crew, Manxasana & crew for their unwavering support & belief in my innocence! 'Thanks to the Nkomo Foundation. I maintain my innocence.' Days later, on Sunday, 25 May, Booi took to X again, implying that he was the victim of a smear campaign. 'Just for the record! There was never a R1bn tender fraud City of Cape Town never lost a cent,' Booi's post said. 'There is no site or awarded tenders Why AG never picked it up or internal audit The purpose was to destroy me and tarnish my reputation! I pray a living God.' Just for the record! There was never a R1bn tender fraud City of Cape Town never lost a cent There is no site or awarded tenders Why AG never picked it up or internal audit The purpose was to destroy me and tarnish my reputation! I pray a living God🙏 — Malusi Booi (@MalusiBooi) May 25, 2025 While Booi is 'relieved' at the withdrawal of charges, the NPA and SAPS have reiterated that it does not mean the case has ended or been derailed. According to them, key information has been uncovered. Fresh evidence The Western Cape's NPA spokesperson Eric Ntabazalila explained that the commercial crime charges had been provisionally withdrawn against Booi, Stanfield, Johnson and nine co-accused 'pending the finalisation of an investigation on newfound evidence against them'. 'Police discovered new evidence during their investigation, and it is apposite at this stage to provisionally withdraw the 16 commercial charges against the accused pending the finalisation of the investigation stemming from the newfound evidence. 'The State will reinstate the charges once the investigation has been finalised.' Police in the Western Cape released a statement on the saga. Brigadier Novela Potelwa said the case 'is still on course despite the provisional withdrawal of commercial charges'. Charges can be reinstated She said it was not uncommon for the direction of a complex investigation to change, based on new information.'It is envisaged that the commercial charges provisionally withdrawn will be reinstated in due course,' Potelwa said. 'The Western Cape SAPS feels compelled to give assurance that the decision [to provisionally withdraw the commercial charges] is by no means an indication of failure on the part of investigators.' There is no indication of what the new evidence is. Booi was arrested in September last year, several months after his City of Cape Town office was raided in March 2023. He has also been fired. Earlier this year, another raid, which according to police was also linked to the whole Stanfield saga, kicked up even more controversy for the City of Cape Town. SAPS and the City On 24 January, police raided JP Smith's office and that of mayoral committee member Xanthea Limberg, who heads the city's energy portfolio. Unlike what happened to Booi, Smith and Limberg were not suspended. Cape Town Mayor Geordin Hill-Lewis said there was insufficient evidence to warrant suspensions. Smith has insisted that he is the target of a smear campaign and that the raid had been conducted to tarnish his name. Earlier this month, Smith announced that he was taking legal action against the SAPS. He said he had lodged an application in the Western Cape High Court because 'immediately after the searches I was advised that the warrants which contain numerous falsehoods, errors and critical omissions are unlawful and should be legally challenged'. Smith said: 'The media frenzy and reputational harm resulting from the search on my office should never have been permitted. 'The allegations against me are false and there is abundant evidence in the public domain of my continued actions to do the exact opposite of which I am accused by SAPS, including the continuous taking action to remove compromised and corrupt individuals from the city'. As if underscoring what Smith said about action against staffers, the SAPS announced last week that two City of Cape Town law enforcement officers had been arrested on charges of kidnapping and extortion. Smith had issued a statement saying the city's Safety and Security Investigations Unit had launched an internal investigation, which led to the arrests. Beyond smear claims – murder and red flags In the Stanfield-linked saga, both Booi and Smith's official offices were raided, and both have since separately said they are the targets of smear campaigns. On Sunday, a part of Booi's post on X said: 'The purpose was to destroy me and tarnish my reputation!' As for Smith, earlier this month, in the statement on the legal action he launched against the SAPS, he said that he had been told the purpose of the campaign against him was to 'destroy my reputation'. There are highly concerning aspects of the now provisionally withdrawn commercial crime charges and to the city's human settlement remit. City manager Lungelo Mbandazayo previously told IOL that an investigation 'saw some of the officials from the human settlements department being suspended and others are attending disciplinary hearings. 'They were even tailor-making tenders before they went out, so those same companies could easily apply and be granted those tenders. They (the gangsters) don't operate in isolation. 'They exist because internally, there are people helping them. When you look at any criminal activity that is thriving, it's because people are conniving.' Serious dangers are associated with this arena. One of Booi's co-accused, who previously faced charges alongside him, was Abdul Kader Davids. On 20 September 2024, two days after being released from custody on R250,000 bail in that case, Davids was fatally shot in the Cape Town suburb of Mitchells Plain. DM
Daily Maverick
23-05-2025
- Politics
- Daily Maverick
Fraud charges against Malusi Booi in R1bn tender case dropped, for now
The case against former Cape Town mayoral committee member Malusi Booi involving allegations of unlawfully awarded tenders worth more than R1bn was provisionally withdrawn on Friday. The corruption case against former City of Cape Town councillor Malusi Booi was provisionally withdrawn on Friday, 23 May 2025. The former mayoral committee member was arrested in September 2024 and faced charges relating to alleged unlawful tenders worth more than R1-billion. It was a short appearance at the Cape Town Magistrates' Court as Booi and his co-accused, which include suspected 28s gang boss Ralph Stanfield. Booi was dressed in a black jacket and pants and shortly after his appearance alongside his former wife, it was announced that the charges against him had been dropped. Fired after raid Booi was a member of the DA and MMC for Human Settlements when it was announced in March 2023 that he had been fired by Mayor Geordin Hill-Lewis after a raid at his office. At the time, he told Daily Maverick that he wanted to clear his name. He was arrested on charges related to fraud, money laundering and corruption and was granted bail of R250,000. He was alleged to have played a central role in a tender enterprise, including Stanfield and his wife, Nicole Johnson. 'I maintain my innocence' After the hearing on Friday, Booi posted on social media platform X that he maintained his innocence. I would like to take this opportunity to thank my 84 year old mother, my ancestors, my partner, my entire family, friends, Nitta & crew, Manxasana & crew for their unwavering support & belief in my innocence! Thanks to the Nkomo Foundation 🙏 I maintain my innocence 🙏 — Malusi Booi (@MalusiBooi) May 23, 2025 Stanfield and the other co-accused were still appearing in court at the time of writing. The state wants to transfer their case to the Western Cape High Court in November 2025, while Stanfield and other defendants questioned why their case was being postponed yet again. Before proceedings began, a small group of about 20 people held signs calling for Stanfield to be released. They also claimed the 'media is controlling the narrative and the mind of the masses'. The group, which largely consisted of elderly women, were holding signs and did not speak to the media.
The Citizen
23-05-2025
- Business
- The Citizen
Progress made in metro's efforts to clean house
The Tshwane metro has intensified its efforts to rebuild institutional integrity and restore financial discipline through strong consequence management and a transparent approach to resolving wage disputes. Tshwane Mayor Dr Nasiphi Moya recently conveyed that the Labour Court ruled in favour of the metro's exemption from implementing a 5.4% increase. It sent the matter of a 3.5% increase for the 2021/22 financial year back to the South African Local Government Bargaining Council (SALGBC) for reconsideration. Moya provided a six-month progress report on the work of the multiparty coalition government at Tshwane House on May 22. The metro held a meeting with Samwu and Imatu, the two recognised municipal unions, in response to the ruling. Although the unions expressed disappointment over the ruling on the 5.4% increase and reserved the right to appeal, all parties agreed to pursue mediation through the CCMA under Section 150 of the Labour Relations Act. 'This mediation process offers the best chance to reach a fair and sustainable outcome for our employees while maintaining the metro's financial stability,' said Moya. She commended both unions for engaging in open and transparent dialogue in the interest of Tshwane's workforce and uninterrupted service delivery. Moya also highlighted the metro's accelerated progress in addressing unauthorised, irregular, fruitless, and wasteful (UIFW) expenditure, an issue that has plagued the municipality's governance for years. The metro has completed investigations into R11.7-billion UIFW expenditure, with another R1-billion expected to be finalised before the end of the 2024/25 financial year. LISTEN: She said this marks a dramatic increase from the R1.2-billion investigated in the previous financial year. The metro has also recorded notable progress in disciplinary and legal actions: – 349 officials have been flagged for disciplinary proceedings (up from 126 in February 2025) – 44 cases have been referred for criminal prosecution. – More than 900 cases are now before the Financial Disciplinary Board, an enormous jump from just 70 cases earlier this year. – 85 officials have been dismissed, involving serious offences including sexual harassment, fraud, corruption, bribery, and dereliction of duty. Moya said five officials have been served letters of intention to suspend over mismanagement of the Refilwe and Cullinan stadiums, and a former Section 79 Chairperson has been referred to the Speaker for violating procurement policies. 'The metro is also moving to blacklist eight non-performing contractors, although delivery of formal notices has been challenging due to vacated premises.' Legal advice has prompted the metro to pursue blacklisting in absentia, which signalled a no-tolerance to underperformance and fraud. Moya said R36-million has been allocated in the new budget to Group Audit and Risk for forensic investigations to reinforce the metro's anti-corruption drive. 'These actions show that we are not merely making promises, but acting decisively to clean up governance, build public trust, and restore pride in the administration of our Capital City,' she said. ALSO READ: Toddler finally laid to rest after 8 months in government mortuary Do you have more information about the story? Please send us an email to bennittb@ or phone us on 083 625 4114. For free breaking and community news, visit Rekord's websites: Rekord East For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram or TikTok. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
Daily Maverick
16-05-2025
- Business
- Daily Maverick
Suspected crime boss Stanfield's wife, Nicole Johnson, spends R5m on Sea Point flat while in prison
Nicole Johnson, the wife of suspected organised crime boss Ralph Stanfield and herself accused of racketeering and helping run a violent criminal enterprise, bought an unbonded R5-million flat on the Atlantic Seaboard from a renowned Cape Town property developer. The transaction raises questions about the extent to which property deals remain vulnerable to money laundering, especially in a time of increased focus on estate agents and lawyers meeting anti-money laundering obligations. Investigations by amaBhungane have highlighted a legal loophole whereby developers who make direct sales without using estate agents as intermediaries seemingly do not have to be registered with the Financial Intelligence Centre (FIC) as accountable institutions. These developers, therefore, have no obligation to perform any due diligence on clients, although they do still need to report transactions they have reason to believe are suspicious. While the criminal reputation of Stanfield and Johnson precedes them, neither the conveyancers, Smith Tabata Buchanan Boyes (STBB), nor the property developer, Blok, which was directly involved in last year's sale, appear to have been put off by the couple's notoriety or the fact that Johnson purchased her Sea Point flat while in prison awaiting trial. Johnson and Stanfield, who have been charged under the Prevention of Organised Crime Act, have been held in Cape Town's Pollsmoor and Brandvlei prisons respectively since their highly publicised arrest in September 2023. They were arrested at their multimillion-rand Constantia home in Cape Town on suspicion of running a criminal enterprise, which has allegedly ensnared several senior local government officials. Collectively they face more than 100 criminal charges, including racketeering, money laundering, corruption, fraud, theft, extortion, murder, attempted murder and the illegal possession of firearms and ammunition. Some of the charges relate to their alleged involvement in a R1-billion social housing development tender fraud scheme for the construction of homes in some of Cape Town's poorest communities. Johnson runs numerous companies, including Glomix House Brokers (GHB), which the couple allegedly used to secure contracts linked to the tender. In March 2024 the National Treasury blacklisted GHB from doing business with the government for 10 years. The blacklisting was loudly trumpeted by the City of Cape Town as a major success in its fightback campaign against the construction mafia, which for years has laid siege to its infrastructure development projects. AmaBhungane has learnt that six months later, on 2 September 2024, Johnson bought a two-bedroom apartment in Sea Point from Blok, one of Cape Town's most renowned urban renewal property developers. She was able to do this while sitting in Pollsmoor as a prisoner awaiting trial. While amaBhungane is not suggesting that STBB or Blok failed to comply with any Financial Intelligence Centre Act (Fica) money-laundering reporting obligations, or that the money Johnson used to buy her flat was from the proceeds of crime, the sale shines a light on estate agents' – and potentially property developers' – compliance levels with laws to combat money laundering and terrorism financing, as well as the current difficulties the Financial Intelligence Centre (FIC) faces in ensuring such compliance and the gaps in legislation specifically designed to combat these crimes. The source of the money, as well as whether it was paid directly by Johnson from her bank account or via a third party, is unknown. Her lawyer, Luzuko Guma, did not respond to amaBhungane's email and WhatsApp requests for comment. Blok and STBB would not discuss any details of the transaction, citing client confidentiality and FIC secrecy provisions while insisting that they had complied with their obligations. As we'll see, however, what these were in the case of Blok may be somewhat unclear. The sale Since its founding in 2014 by father and son Marco and Jacques van Embden, Blok has become known for its award-winning projects, with the company specialising in high-end compact apartment developments in Cape Town's City Bowl and Sea Point. Of the company's 20 developments, it was its Eighty2 on M apartment building that caught Johnson's eye. According to the company's website, the block on Sea Point's Main Road is an 'apartment hotel… where luxury meets sustainability' and offers 'bold architectural design, energy-efficient living spaces and community-oriented features'. The majority of the apartments in the building are rented out as short-term stays. While the exact details of the transaction through which Johnson purchased her eighth-floor unit facing Lion's Head and Signal Hill are unknown, what amaBhungane has gleaned is that she paid R5,016,000 for the 77m² flat, that the purchase was unbonded and made through a cash transfer, and that the unit was registered in her name on 20 November 2024. Property records show that Johnson bought the unit from Blok's Urban Living 4, which is registered as a separate business entity and which developed the Eighty2 on M apartment building. When developing apartments, Blok appears to register separate business entities. The company's registered estate agency business, Blok Urban Apartment Living (UAL), is responsible for marketing and facilitating the sale of units in the group's different developments. In trying to unpack the transaction and determine whether the financial reporting legislation was complied with, amaBhungane looked at whether Blok is registered with the FIC as an accountable institution. Accountable? Fica compels accountable institutions to carry out in-depth know-your-client analyses, understand the nature of their clients' different business relationships, alert the FIC to any suspicious transactions and, importantly, assess, mitigate and report potential money laundering or terror financing risks their businesses may face from transactions. Compliance is crucial in the government's effort to remove SA from the global Financial Action Task Force (FATF) grey list. The FATF grey list identifies countries that have deficiencies in their legislative systems that hamper the combating of money laundering and terror financing. SA was placed on the grey list in February 2023 and in February of this year, the National Treasury announced that it aimed to have SA removed from the list by October. One of the biggest stumbling blocks in removing SA from the list is the lack of successful prosecutions of money laundering cases, as well as poor Fica compliance by certain accountable institutions. In April, the FIC complained in a press release that it was struggling to get estate agents and lawyers to comply with all important Fica risk and compliance reporting obligations. The problem is compounded by a gap in the legislation. Under Fica, estate agencies are 'accountable institutions' but property developers who sell units directly to buyers without using estate agents as intermediaries fall outside the current definitions. That gap was partially closed with the repeal of the former Estate Agency Affairs Act and its replacement in February 2022 with the Property Practitioners Act, which includes property developers that perform estate agency activities by selling their developments directly to buyers. Fica, however, still needs to be amended to include the wider definition of 'property practitioners'. Back to Blok This legal blurriness was evident in our attempts to get clarity from Blok as to what extent it had considered – or even recognised – the potential red flags of a cash sale to Johnson, a prisoner awaiting trial. STBB and Blok sidestepped detailed questions, citing Fica non-disclosure provisions and the Protection of Personal Information Act. STBB director Steven Borwick, responding on behalf of Blok, said that 'in the event that our client had incurred an obligation to report an activity associated with Ms Johnson to the FIC, it will [in] any event, be precluded … by the FIC Act from disclosing such a fact to anyone. To do so constitutes a criminal offence …' Questioned on whether Blok had any Fica responsibilities, Borwick said the specific development company, Blok Urban Living 4, was 'not an accountable institution in terms of the FIC Act'. He said STBB is registered with the FIC as an accountable institution and that the company takes its responsibilities seriously. Borwick said Blok's marketing arm, UAL, provided the company with its estate agency services, but it is not clear whether UAL was involved in the Johnson transaction and, initially at least, amaBhungane was not able to get Blok to confirm that UAL was registered with the FIC. A search of the Property Practitioners Regulatory Authority website shows that UAL is a registered estate agency. As such, Fica requires, if not Blok as a whole, then at least UAL to be registered as an accountable institution. Eventually Borwick confirmed this, noting: 'I am instructed the entity is registered with FIC, registration took place in approximately 2018. Blok will not comment on business strategy and we cannot disclose details of a specific transaction without all parties' consent. No further emails or calls will be responded to.' When amaBhungane approached the FIC with the same question, the entity threw up a bureaucratic wall, saying that its register of accountable institutions was 'not a public registry'. 'The purpose of the registry … is to facilitate [the] regulation of accountable institution compliance with the FIC Act, including with their reporting obligations, in line with the FIC's mandate. 'As such, the FIC is obliged to maintain [the] confidentiality of the regulatory information that is provided to it. Furthermore, the FIC Act provides for the protection of the confidential information which the FIC holds.' This legally questionable stance, which precludes the public from knowing whether companies are complying with their mandatory responsibility to register, helps no -one – except perhaps people like Johnson. DM
