Right to Justice to open case against SKG Africa over government leases

Non-governmental organisation Right to Justice is set to open a case against property company SKG Africa at Rosebank Police Station at 3pm on Friday, amid growing scrutiny of the company’s extensive government lease portfolio and allegations of irregularities.

The move comes as questions continue to surround SKG Africa, which receives about R42-million a month in rental payments from government through its leases and associated companies.

The Department of Public Works and Infrastructure (DPWI) has confirmed that SKG Africa and its associates hold a total of 81 government leases. Sixteen state departments and agencies are accommodated in buildings owned by the company and its associates.

DPWI spokesperson Lennox Mabaso previously confirmed that Minister Dean Macpherson had launched an investigation into allegations of mismanagement and irregular payments involving lease agreements between the department and private landlords.

According to Mabaso, the investigation is focused on the 10 highest-paid landlords during the 2021/22 and 2022/23 financial years, a list that includes SKG Africa.

The investigation follows concerns raised in an Auditor-General report, which identified several instances of suspected mismanagement involving private-sector lease agreements at DPWI. The report also pointed to recurring overpayments.

However, Mabaso stressed that the leases were not necessarily awarded directly to SKG Africa and its associated companies. He said the company had acquired properties over the years in which government departments were already accommodated.

SKG Africa was also flagged after the department recorded an alleged R43-million overpayment.

Mabaso, however, cautioned against placing undue emphasis on the figure, saying the department still had a responsibility to reconcile payments with individual landlords and agree on the correct amounts.

He said there was no apparent wrongdoing by an official in relation to the alleged overpayment at that stage.

“The CFO has flagged a few companies,” Mabaso said, explaining that system glitches within the department could result in overpayments to various landlords.

He added that where officials were found to have caused problems, consequence-management processes would be followed.

Despite these assurances, Right to Justice says the matter warrants further scrutiny and has decided to approach the police.

The NGO is expected to raise questions about the management of government leases, alleged irregular payments and allegations concerning relationships between private landlords and state officials.

The organisation has also expressed concern about the lack of publicly disclosed progress following Macpherson’s announcement of the investigation.

The Public Protector is also investigating SKG Africa, while Macpherson has brought in the Special Investigating Unit to examine broader allegations involving the department’s lease arrangements and other payments.

Right to Justice’s case, is expected to be opened at 3pm at Rosebank Police Station.

The allegations against SKG Africa, its directors and any government officials have not been proven.