Mashaba welcomes JRA Boards Decision to Act Against Top Management
16 April 2019
Yesterday, the Board of the Johannesburg Roads Agency adopted a series of forensic investigations which have implicated top management within the entity.
Disciplinary processes have been established and the implicated individuals, including the current Managing Director of the JRA, have been suspended.
The investigations were initiated following an expose by Carte Blanche in the first half of 2018. The City appointed Nexus, an external independent forensic firm, to handle the investigation.
Despite anticipating the investigations being concluded swiftly, the investigation was only finalised in February 2019 due to the voluminous nature of the investigation, compounded by the dated matters under investigation.
These cases relate to appointments inherited by the multi-party government.
The reports found that senior management within JRA, including the current MD of the entity, who was the CFO at the time of the events under investigation, had flouted provisions of the Municipal Finance Management Act (MFMA).
The most notable of these matters included the repairs of the M1 Double-Decker Bridge awarded to White Hazy in 2015.
The investigation has revealed that the company’s bid was fraudulent in that claims of personnel and relevant experience were falsified.
In accordance with the forensic report, a criminal case has been opened and a submission made to National Treasury to black list White Hazy as a service provider to government.
After not being able to complete the work, the JRA adopted a resolution to terminate the contract.
Rather than retaining all monies owed and the bank guarantee as collateral to protect the losses in JRA’s investment into this project, these monies were returned to White Hazy and the bank guarantee was not utilised as collateral counter to both legal opinions and the MFMA.
While it is important to ensure that a fair disciplinary process runs its course, I have asked the City Manager to ensure that every effort is made to ensure it is handled expeditiously.
The stability of JRA is essential to the performance of the City in addressing the inherited backlogs in our road network with over 4000 km of roads and over 700 bridges in poor condition.
I would like to take the opportunity to acknowledge the leadership of the MMC for Transport, Cllr Nonhlanhla Makhuba of the IFP.
As a valued member of our multi-party government, MMC Makhuba has demonstrated her commitment to ensuring there is accountability for alleged acts of wrong doing. I would also like to appreciate the Board of JRA for their commitment to the values of this multi-party government, with decisive decision making to protect the JRA and residents of the City of Johannesburg.
Issued by Luyanda Mfeka, Director: Mayoral Communications, Office of the Executive Mayor, 16 April 2019