‘A National Shame’ – Naledi Pandor on Dirco’s Failed Multi-Million Dollar Project in New York



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  • The Minister for International Relations and Cooperation, Naledi Pandor, described the failure of the 118 million rand New York land project as a national disgrace.
  • The government paid the millions to a service provider for land that did not exist.
  • Pandor has faced strong criticism from MPs who compared his management of the department to that of a spaza store.

The Minister for International Relations and Cooperation, Naledi Pandor, says that the failed 118 million rand project in New York, in which the government paid for land that did not exist, is a national shame.

The matter was raised on Wednesday, during a session in the National Assembly where Pandor answered questions with other ministers of the security cluster.

READ | ‘Save yourself from personal importance’: MPs criticize Pandor for suspension of Dirco DG

Pandor said the government took several steps to rectify the matter.

She said:

“This is an embarrassment to our country. That is why we are in court to recover the 118 million rand. The 188 million rand did not buy anything and therefore we have investigations. You would not be doing all these things if you believed that everything is correct. “. We would not act the way we act if it were not true that South Africa’s public resources have, in fact, been misused. “

In October, News24 reported that a fact-finding mission to New York, conducted by parliamentarians in December 2019, found that the land intended to house South Africa’s diplomats did not exist.

The report concluded that 118 million rand was paid on the basis of a misrepresentation to the department that the real estate agent had purchased land to build a suitable and sustainable office building.

The supply chain management challenge associated with the New York pilot project is a source of diplomatic embarrassment and represents a reputational risk to the country’s image.

Pandor placed the department’s director general, Kgabo Mahoai, on preventive suspension.

At a committee meeting last month, it was discussed that his suspension came in the wake of the failed New York project.

EFF MP Thembi Msane told Pandor that there should be large-scale resignations.

“This New York project is an embarrassment to the nation, however you look at it. There should be political causes for this. It is not likely that only officials were involved here. Who should ultimately take political responsibility for this embarrassment? When will we see resignations? “

DA MP Mergan Chetty asked Pandor what her department had to prove for paying the service provider 118 million rand.

“Is there a title deed, is there a vacant lot, or is there an abandoned building burned down in ruins? Your CEO suspension [Kgabo Mahoai] it is seen as a smokescreen covering other officials closely linked to senior ANC leaders, “he said.

READ ALSO | More heads should roll in New York’s R118m ground scandal, says district attorney

Pandor said the department opened a request for review on March 10, 2018 for it to be reviewed and set aside.

“The request for review from the Superior Court also requested the recovery of the money that the department paid to the service provider. The hearing on the matter was held on October 12 last year. We are still awaiting trial,” he said.

Asked about the suspension of the officials involved, Pandor said: “I cannot deal with the suspension of officials since this is regulated by the Public Service Law. All those who are involved in terms of the need to take measures against them given your actions on this matter will be addressed. We are proceeding with this matter as the ministry and department see fit. “



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