Audit exposes R272m mismanagement at Ekurhuleni’s SAAME building
A new forensic audit reveals shocking irregularities and over R272 million in mismanaged funds at Ekurhuleni's long-delayed SAAME building project in Germiston. Political parties are now demanding criminal accountability for those responsible.
A 10-storey municipal building in Germiston—once intended to serve as a hub for efficient municipal service delivery—has instead become a symbol of financial mismanagement and government failure.
The SAAME building, owned by the City of Ekurhuleni, is now widely regarded as a “white elephant” that has cost the city and its residents a staggering R272m—with little to show for it.
Launched in 2017 with an initial budget of R46.9m, the project was envisioned to house key municipal departments. However, it is now four years behind schedule and millions of rands over budget.
ALSO READ: City of Ekurhuleni delivers stability-driven 2025/26 budget
A damning report from the city’s internal audit department, tabled before council, has exposed gross mismanagement, irregular expenditure, and systemic failure at every level of the renovation project.
The report revealed that contractors were paid ms without performance monitoring, proper documentation, or valid progress reports. In one instance, a single contractor received over R93m—with no evidence of work completed.
Even more troubling is the revelation that over R134m was paid to contractors whose contracts were later terminated for non-performance, raising serious concerns about procurement processes and oversight.
According to the report, there were duplications in service delivery, unchecked inventory losses amounting to R6.9m, and payments made despite awareness of defective work.
The Freedom Front Plus (VF Plus) has expressed outrage and is calling for urgent accountability.
The party stated that this is not merely incompetence—it amounts to the theft of public funds disguised as service delivery.
The VF Plus welcomed the recommendation to refer the matter to the police and the Special Investigating Unit (SIU) and is demanding that officials and contractors be held criminally accountable.
ALSO READ: City of Ekurhuleni launches food safety programme for school vendors
The report further identifies non-compliance with the Municipal Finance Management Act (MFMA) and a failure to report corruption as required by the Prevention and Combating of Corrupt Activities Act.
With the building now largely vacant and unusable, many residents are left wondering how such a large-scale failure could have gone unnoticed for so long.
Calls are growing for disciplinary action, transparent investigations, and ultimately, the restoration of public trust in the city’s ability to manage public resources.
The DA has echoed these concerns, having consistently raised the alarm about financial irregularities surrounding the project. The internal audit committee has now validated their calls for accountability.
“The people of Ekurhuleni are not only victims of failed service delivery but also of a government that treats their money as a personal piggy bank.
“We will not rest until those responsible are held accountable,” said Clr Sihle Molebatsi, DA City of Ekurhuleni spokesperson on real estate.
