SAPS Headquarters Leases: R1.6bn Shabangu Deals Found Unlawful — Police Commissioner Cele "Unfit for Office", Public Works Minister Falls

R1.6 billion (two ten-year leases; Public Protector)

documented loss

In 2010 the SAPS and the Department of Public Works signed two ten-year leases with Roux Shabangu's Roux Property Fund — R500 million for Sanlam-Middestad in Pretoria and R1.1 billion for Transnet Towers in Durban — without competitive bidding, above market and outside budget. The Public Protector's reports of February and July 2011 found Cele's conduct "improper, unlawful and amounted to maladministration" and both leases "unlawful, invalid and fatally flawed". Zuma suspended Cele in October 2011, dropped Minister Mahlangu-Nkabinde the same day, and dismissed Cele on 12 June 2012 after a board of inquiry found him "unfit for office".

The Record In Their Own Words The Evidence The Named What Was Lost Implicated Institutions The Paper Trail

The Record

In 2010 National Police Commissioner Bheki Cele's SAPS and the Department of Public Works under Minister Gwen Mahlangu-Nkabinde concluded two ten-year leases with Roux Shabangu's Roux Property Fund: R500 million for the Sanlam-Middestad building in Pretoria and about R1.1 billion for Transnet Towers in Durban. Neither went to competitive tender; both were above market rates and outside the approved budget. Cele's own directive required his personal approval of any lease above R500,000.

Public Protector Thuli Madonsela's "Against the Rules" (February 2011) and "Against the Rules Too" (July 2011) found Cele's conduct "improper, unlawful and amounted to maladministration", both leases "unlawful, invalid and fatally flawed", and that the Minister had pushed them through against legal advice. Cele denied identifying the buildings and blamed the provincial commissioner. On 25 October 2011 President Zuma suspended Cele and appointed a board of inquiry under Judge Jakes Moloi, dropping Mahlangu-Nkabinde from Cabinet the same day. The board found Cele "unfit for office"; he was dismissed on 12 June 2012 and said he would challenge his removal. No corrupt relationship was proven and nobody was prosecuted. Cele became Minister of Police in 2018 — and presided over the Telkom Towers headquarters failure that followed the leases.

In Their Own Words

Exhibit A · The Defence

“Cele denied identifying the buildings and said the provincial commissioner had done so.”

— Bheki Cele · Response to the Public Protector's findings · 2011-06-24

His own directive required his approval of any lease over R500,000; the PP found his conduct unlawful.

The Evidence

Named

Institutions

Sources

Period · 2010–2012

Sector: Police & Law Enforcement (SAPS, Hawks, IPID) · Scope: national (GP)

Alleged & Implicated

People documented as perpetrators, enablers, beneficiaries, orchestrators, political protectors, accused, or convicted in this case. Unless the case status is Convicted, allegations remain untested.

EV·01

Bheki CeleAlleged PerpetratorPrivate SectorConduct improper and unlawful (PP); "unfit for office" (Moloi board); dismissed

EV·02

Gwen Mahlangu-NkabindeAlleged EnablerResignedMinister; pushed leases through against legal advice

EV·03

Roux ShabanguAlleged BeneficiaryPrivate SectorLessor

What Was Lost

Political consequence.

disciplinarycompleted2011-10-25
Cele suspended; board of inquiry appointed; Minister dropped.
firingcompleted2012-06-12
Moloi board finds Cele unfit for office; dismissed.
National Commissioner removed.