DIRCO’s multimillion rand New York HQ project declared ‘unlawful’

South Africa’s Supreme Court of Appeal (SCA) has declared the Department of International Relations and Cooperation’s (DIRCO) controversial contract to build a new multibillion-rand diplomatic headquarters for SA’s diplomats in New York as unlawful.

The DA had maintained that certain factions within the ANC deliberately protected senior politicians and officials involved in initiating this “corrupt deal”, Mergan Chetty – DA Shadow Deputy Minister of International Relations and Cooperation – said in a statement on Thursday.

“We have also raised concerns that the former Director General, Kgabo Mohoai, was made a scapegoat to shield those who believed they were untouchable within the ANC.

“The dismissal of the former CFO, Caiphius Ramallah, was primarily a result of the relentless pressure exerted by the DA. We firmly asserted that the initial dismissal of the former Director General, Kgabo Mahoai, was a mere smokescreen to protect the CFO, Minister Nkwanazi-Mashabane, Ambassador Matjila, and other senior DIRCO officials and politicians entangled in this corrupt deal.”

The department allegedly paid R118 million to the Gupta-linked Simeke Group/ JV Regiments Capital joint venture, which did not participate in the project’s tender process. Minister Pandor displayed “significant reluctance” in sharing information with the Portfolio Committee regarding the investigations into the corrupt officials and politicians involved, says Chetty.

“The DA has consistently called for the suspension and removal of Minister Nkwanazi-Mashabane, under whose watch this New York Pilot Project and its associated misconduct occurred, for her failure to exercise executive oversight. We also demand further investigation into the conduct of Ambassador Jerry Matjila, who served as both the Dirco Minister and Director General when this tender originated and was implicated in the investigation hearings by former DG Mohaoi,” adds Chetty.

The DA says it “eagerly awaits” DIRCO’s response regarding the outcome of this court case and the consequences faced by those who misled Parliament, as well as the resolution of the unfair dismissal of former DG Kgabo Mohoai.

“Minister Pandor previously assured Parliament that those found guilty would be dismissed and face criminal charges. We now anticipate the minister’s next course of action,” says Chetty.