Director-general's 'dodgy' deal in KwaZulu-Natal

THE KwaZulu-Natal government is trying to cancel an estimated R240-million lease deal for a 14-storey building which is only being partially used.

Already, R100-million of taxpayers' money -  R1.5-million a month - has been spent on renting Trizon Towers in Pietermaritzburg for the province's department of health.

For some months, opposition parties have been demanding an investigation to establish why the controversial former director-general of the province's department of health, Busisiwe Nyembezi, had been allowed to authorise the "irregular lease".

The Department of Public Works is supposed to determine the space requirements of government departments, a public works spokesman said.

Nyembezi signed the lease - which is due to end on August 30 2016 - in October 2006.

When contacted this week, she said: "I don't think it's right for me to comment because I don't work for the department any more."

Nyembezi resigned in 2008 and is facing fraud and corruption charges, along with 11 other co-accused, in connection with a R200-million case concerning a tender for hospital water-purification plants.

However, she has never been investigated for signing the Trizon Towers lease.

The rental deal was allegedly concluded despite the department of health already having more than enough office space.

Details of the contract for the Trizon Towers lease have been kept a closely guarded secret.

KwaZulu-Natal's health MEC, Sibongiseni Dhlomo, has refused to comment on the deal. Dhlomo was appointed health MEC in 2009, and has never set foot in the building.

The head of the KwaZulu-Natal Department of Health, Dr Sibongile Zungu, said: "I am not at liberty to talk about it" - but added that the department's legal advisers were looking into cancelling the lease.

In fact, the provincial department of health has been trying since January to find an escape clause in its agreement with Square Peg Properties, the owners of Trizon Towers.

Sipho Nkosi, chairman of the provincial legislature's standing committee on public accounts, said he was aware that the department had sought legal opinion in its efforts to end the deal.

"It is possible for them to cancel the lease . but unfortunately I am not in a position to divulge more information on this matter," Nkosi said.

Square Peg Properties management this week declined to comment.

Nyembezi is on trial in the High Court in Pietermaritzburg with, among others, controversial Cape Town businessman and Uruguayan millionaire Gaston Savoi.

The state alleges that between September and October 2006, Nyembezi; the then chief financial officer for the KwaZulu-Natal legislature Sipho Buthelezi; and health official Mduduzi Ntshangase; defrauded the department of health.

The case concerns multimillion-rand tenders for water-purification units for the Rietvlei and Appelsbosch hospitals.

The water-purification units were supplied by Savoi's company, Intaka Holdings, which is alleged to have fraudulently secured government tenders after colluding with government officials.

Savoi then allegedly inflated his prices and gave millions of rands in kickbacks in return.