By Lehlohonolo Lehana.
City of Tshwane Deputy Mayor and MMC for Finance, Eugene Modise has been sanctioned with only a fine equivalent to two months after it was found that he has failed to declare his financial interest in security company that has been doing business with the municipality.
Triotic Protection Services (TPS) currently has a multimillion-rand security tender with the municipality.
The same tender has been a centre of attraction at the Madlanga Commission of Inquiry. It was flagged for cancellation not once, but twice, after two separate Bid Evaluation Committees (BECs) uncovered serious irregularities in the procurement process.
The tender, advertised in September 2016, was for the guarding of critical municipal infrastructure.
It was ultimately awarded to 22 companies, including Triotic Protection Services (TPS), a Pretoria-based security firm founded by Modise.
A forensic report commissioned by the Tshwane municipality found Modise violated the code of conduct for councillors by not declaring his interest in TPS.
Modise claimed he sold the company before taking on his councillor role. However, the forensic report notes that he failed to produce a sale agreement to prove his claim.
In terms of the Code of Ethical Conduct and Disclosure of Financial Interests (the Code), financial interests are registrable interests and must be disclosed.
The report, was handed over to the Council Speaker, recommended disciplinary action be taken against Modise.
It is understood the coalition governing Tshwane used its majority in council to vote in favour of the report and recommended that Modise be fined two months salaries.
The legislation stipulates that a councillor who derives financial benefit from municipal contracts must be removed from office, and that a fine does not constitute a lawful punitive sanction in such circumstances.
The Freedom Front Plus (VF Plus) called on the Gauteng MEC for Local Government, Jacob Mamabolo, to investigate those councillors who supported the imposition of the fine as, in terms of the Municipal Systems Act.
While the Democratic Alliance (DA), which advocated for Modise’s removal as councillor, said they are not leaving this matter here, they have already opened a criminal case of corruption against Modise and will submit additional evidence to the Hawks.
The DA discovered that the South African Revenue Services (SARS) had obtained a judgement against Triotic for R59 million in unpaid taxes over a five-year period, which could have affected the company’s ability to obtain a tax clearance certificate.
While Modise resigned as a director shortly after becoming a councillor in 2023, it has come to light that Triotic Protection Services’ registered address remains a property owned by his mother, Nelly Modise.