COGTA Chief Director walked away with R46 million from Naledi Municipality 

31 October 2014

In a reply  to a DA parliamentary question, the Minister of Cooperative Governance and Traditional Affairs (COGTA), Pravin Gordhan, revealed that Khasu Engineering Services owned by the Chief Director of COGTA, Khotso Frank Khasu, to date has not paid back overpayments made to his firm to the tune of R46 million by the Naledi Local Municipality in the North West in 2008. 

The total amount paid to Khasu Engineering was R87.9 million which included an overpayment of R46 million. The payments made were for the installation of sewer and water internal services and the construction of 3000 houses. 

I will request Minister Gordhan and the North West MEC for COGTA to urgently intervene and to institute the necessary criminal and disciplinary action in terms of Section 32 of the Municipal Finance Management Act. Criminal charges must be laid. 

In 2010, the Special Investigating Unit had begun its investigation into Mr Khasu, yet nothing has come of this and Mr Khasu basically walked away with R46 million.

Earlier this year it emerged that Mr Khasu was appointed Chief Director of COGTA in October last year and  that he earns "a minimum salary" of R930 000 a year. It is sickening that someone who essentially defrauded a municipality to the tune of R46 million can be appointed to a high-level position in the COGTA department. 

According to a technical report by the North West Department of Human Settlements the quality of services delivered by Mr Khasu's company was poor and further found: 

That all the housing units did not comply with the minimum standards;

Only some of the internal water services for phase one which consisted of 1500 stands was completed;

There is still an outstanding requirement to install internal water and sanitation services for phase two (1500 remaining stands);

The quality of the structures on the ground did not warrant the expenditure incurred; and 

The top structures needed extensive remedial work.

The municipal officials involved in the procurement of the funds for this colossal failure must be held accountable and so too must Mr Khasu for his disgraceful lack of delivery on this project and his failure to pay back the money that was overpaid to him. 

Statement issued by Kevin Mileham MP, DA Shadow Minister of Cooperative Governance and Traditional Affairs, October 31 2014

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