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Western Cape High Court overturns fraud convictions against Good Hope Construction sole member
Western Cape High Court overturns fraud convictions against Good Hope Construction sole member

IOL News

time05-08-2025

  • IOL News

Western Cape High Court overturns fraud convictions against Good Hope Construction sole member

Ridwaan Rajah has been acquitted of charges against him Image: File Ridwaan Rajah, the sole member of Good Hope Plasterers CC trading as Good Hope Construction, has been acquitted of fraud, theft, and perjury following an appeal to the Western Cape High Court. The judgment, delivered on 12 September 2024, set aside the earlier convictions handed down by the Bellville Specialised Commercial Crimes Court. According to court papers, the charges stem from a 2010 contract between Good Hope Construction and the National Department of Public Works (DPW) to renovate buildings in the parliamentary precinct. As part of the project, Good Hope Construction appointed Winlite Aluminium Windows and Doors as a subcontractor to construct four curtain screens. The DPW agreed to make an advance payment of R519,037.90 for materials to be held offsite by Winlite, subject to a guarantee being provided. Court records show that Winlite was paid R467,131.11 by Good Hope Construction, with a 10% retention applied in line with common building industry practice. However, Winlite failed to complete the work and was subsequently liquidated. The DPW later omitted the advance payment from the final statement of account. In 2015, Good Hope Construction approached the High Court to compel the DPW to include the advance in the final account. The court granted the order by agreement, and the DPW paid the outstanding amount. Following a Special Investigating Unit (SIU) probe under Presidential Proclamation R54 of 2014, criminal charges were brought against Rajah and his company. The State alleged that Rajah misrepresented facts in the affidavit submitted during the civil application and that the second payment constituted theft. According to the High Court judgment, the State's case relied heavily on the testimony of the SIU's forensic investigator, Samuel Adams, who later conceded under cross-examination that a key invoice (Exhibit V) confirmed the payment had indeed been for materials held offsite. Adams also testified that, had he been aware of this invoice earlier, the investigation would not have proceeded. The High Court found that the State had failed to call witnesses with direct knowledge of the final account or to provide evidence proving criminal intent. It further noted that the DPW had not opposed the 2015 application and had agreed to the payment, which was legally ordered by the High Court. The court ruled that the retention of 10% by the contractor was in line with the subcontract agreement and not unlawful. The judgment emphasised that the Regional Court had misdirected itself by failing to consider the full evidentiary context and by relying on incorrect assumptions about contractual obligations and construction industry norms. The appeal court concluded that the State had not proven its case beyond a reasonable doubt and that the versions presented by the appellants were reasonably possibly true. The appeal was upheld and all convictions were set aside. Weekend Argus

Man killed in structural collapse at abandoned R11 billion housing project
Man killed in structural collapse at abandoned R11 billion housing project

The Citizen

time09-05-2025

  • The Citizen

Man killed in structural collapse at abandoned R11 billion housing project

The Montrose Mega City housing project began in 2017 but has since stalled due to the liquidation of appointed contractors. A man died on the West Rand after being trapped under the rubble of an incomplete social housing project. The man was declared dead after a wall at the dilapidated government housing development collapsed on Tuesday. The Gauteng Department of Human Settlements (GDHS) extended its condolences to the deceased's family and stated that it was still committed to the project's completion. Failed steel reinforcements GDHS confirmed on Thursday that police were investigating the matter, but that the victim should not have been on the property. 'Preliminary information indicates that the individual was involved in unauthorised illegal activities at the site when a portion of a staircase structure collapsed,' the department stated. 'We wish to clarify that the building itself did not collapse, but rather that slabs forming part of the staircase gave way as the building's steel reinforcements were tampered with,' it clarified. The site has been a danger for several years, and the department stated that it was now in the final stages of securing a security service provider. The department reminded community members not to access the buildings, as further damage and vandalism will only delay their construction. 'I plead with the community not to enter the site, and to desist from removing any materials on the site,' stated Human Settlements MEC Tasneem Motara. 'We have criminally charged those found stealing on site and will do so again should we find any criminal activity on site again,' the MEC added. Montrose Mega City The Montrose Mega City project in Randfontein was launched in 2017 but has since failed to realise its proposed potential. The fully completed project was meant to provide just over 10 500 units of varying sizes at a cost of R11 billion for the impoverished people of the surrounding informal settlements. Infrastructure of any value that was installed has been stripped by vandals, while the unoccupied ruins are a haven for criminality and shelter for illegal miners. The development remains a brick-and-mortar shell without basic utilities and only temporary water and sewer infrastructure. Only R467 million of that overall budget has been spent so far, however, the long-term human cost of the stalled project is yet to be realised. Calls for investigation In the aftermath of the incident, Democratic Alliance (DA) shadow MEC Evert du Plessis stated the department had 'blood on their hands'. 'Premier Lesufi's government chose an incompetent company that has failed to deliver and is now holding this R11 billion project to ransom,' stated Du Plessis. ActionSA have also flagged the project's wastefulness in recent months, joining the DA in calling for accountability and extensive investigations. 'In addition to being an infrastructure disaster, this project is a breach of public confidence and a waste of tax revenue that could have changed lives and supplied much-needed housing,' stated ActionSA's Emma More. Commitment to completion GDHS confirmed the housing project was still part of their plans, representing a 'significant step in our commitment to delivering sustainable human settlements'. The department stated that it is in contact with the landowner to discuss the way forward after the appointed developer has been liquidated. 'The Department will continue to update the community of any progress we make in this regard. 'We remain fully committed to the safe and successful completion of the Montrose Mega City Development,' the department concluded. NOW READ: PICS: Gauteng's abandoned projects ruined by 'challenges' and vandalism

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