Civil society organisation Right to Justice has opened a criminal case against property company SKG Africa, bringing renewed attention to the company’s extensive portfolio of government leases, the millions of rands it receives in monthly rental payments and allegations concerning its dealings with the state.
The development follows a police raid on SKG Africa’s offices last Saturday as part of an investigation into allegations involving the company and its government contracts. The raid has added to the growing scrutiny surrounding the property group and government leasing arrangements.
Figures previously confirmed by the Department of Public Works and Infrastructure (DPWI) show that SKG Africa and its associated companies receive approximately R42 million a month in rental payments from government.
DPWI has also previously confirmed that SKG Africa and its associates hold 81 government leases. Properties owned by the company and its associated entities are occupied by 16 government departments and agencies.
The scale of the portfolio makes SKG Africa one of the most significant private landlords to government in the country and has raised questions about the awarding, administration and payment of the leases.
Right to Justice representative Litha Mvayo said the size of the relationship between the company and the state required independent scrutiny.
“When a private company is receiving tens of millions of rands every month from the state across such a large portfolio of leases, the public has a right to know that every rand is being spent lawfully and that every contract has been properly administered,” Mvayo said.
He said opening the criminal case was aimed at ensuring that questions surrounding the leases were examined independently by law enforcement rather than being dealt with only through internal departmental processes.
“We are not asking investigators to accept allegations as facts. We are asking them to follow the evidence, examine the contracts and payments, and determine whether any criminal conduct took place,” he said.
The move by Right to Justice follows concerns that earlier investigations into government leasing arrangements have not resulted in sufficient public accountability.
Public Works and Infrastructure Minister Dean Macpherson previously announced an investigation into allegations of mismanagement and irregular payments involving private landlords.
The investigation was expected to examine the 10 highest paid landlords during the 2021/22 and 2022/23 financial years, with SKG Africa among those identified for scrutiny.
Right to Justice has raised concern that there has been no meaningful public outcome from that investigation since it was announced.
The organisation has also referred to findings by the Auditor General concerning the administration of private sector lease agreements at DPWI, including instances of suspected mismanagement and recurring overpayments.
DPWI spokesperson Lennox Mabaso cautioned that the R42 million figure should not be considered in isolation. He said the department was responsible for reconciling payments with individual landlords and establishing the correct amounts owed.
Mvayo said the explanation reinforced the need for an independent investigation.
“The issue is not simply how much money was paid. The critical questions are why it was paid, under which contracts, whether the amounts were correctly calculated and whether the state received value for the money it spent,” Mvayo said.
Right to Justice maintains that the concerns cannot be addressed solely through internal departmental processes and believes law enforcement should independently establish whether any criminal conduct occurred.
The organisation has also raised questions about the conduct of Minister Macpherson, alleging that there are issues requiring investigation into whether the minister may have been compromised in favour of SKG Africa.
Right to Justice has stressed that this remains an allegation and is not a finding of wrongdoing.
The organisation wants investigators to establish whether there is evidence to support the allegation and whether any criminal or other misconduct occurred.
Mvayo said the allegation concerning the minister should be approached as a matter requiring investigation rather than as an established fact.
“We are not making a finding of guilt against the minister or SKG Africa. That is precisely what an investigation is for, to establish the facts, examine the evidence and determine whether there has been any breach of the law,” he said.
The allegations involving SKG Africa come as government leasing contracts and the ownership structures of companies benefiting from state property contracts face wider scrutiny.
Du Plessis has previously denied allegations of wrongdoing and maintained that SKG Africa is a transformed company.
Right to Justice says the various investigations make it important that evidence relating to government leases, tender processes, payments and the administration of contracts is properly preserved and examined.
The organisation says an independent examination of the available evidence is necessary to establish the facts and determine whether any wrongdoing took place.
