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JRA acts against top management following Carte Blanche exposé

JOHANNESBURG – Top management within the Johannesburg Road Agency (JRA) has been implicated after the board of the agency decided to adopt a series of forensic investigations.


The current managing director of the JRA is among the top management that has been suspended. Disciplinary proceedings have been accepted and the implicated individuals have also been suspended.

“The investigations were initiated following an expose by Carte Blanche in the first half of 2018. The City appointed Nexus, an external independent forensic firm, to handle the investigation,” read the statement issued by the office of the Executive Mayor, Herman Mashaba.

Mashaba said that despite anticipating the investigations being concluded swiftly, the investigation was only finalised in February 2019 due to the voluminous nature of the investigation, compounded by the dated matters under investigation. These cases relate to appointments inherited by the multi-party government.

“The reports found that senior management within JRA, including the current MD of the entity, who was the CFO at the time of the events under investigation, had flouted provisions of the Municipal Finance Management Act (MFMA),” said Mashaba.

The repairs of the M1 double-decker bridge awarded to White Hazy in 2015 is among the fraud cases that the JRA decided to investigate. “The investigation has revealed that the company’s bid was fraudulent in that claims of personnel and relevant experience were falsified,” Mashaba said.
He said a criminal case has been opened and a submission made to National Treasury to blacklist White Hazy as a service provider to the government. After not being able to complete the work, the JRA adopted a resolution to terminate the contract.
“Rather than retaining all monies owed and the bank guarantee as collateral to protect the losses in JRA’s investment into this project, these monies were returned to White Hazy and the bank guarantee was not utilised as a collateral counter to both legal opinions and the MFMA,” read the statement.
Related article:
https://www.citizen.co.za/northcliff-melville-times/286207/fraud-reaches-new-grounds/
https://www.citizen.co.za/northcliff-melville-times/287469/home-affairs-warns-people-claiming-employees/
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