Property boss hits back..‘ANC not occupying offices rent-free’

Property tycoon Jean du Plessis has vehemently denied giving offices to the ANC “rent free”, while the governing party has admitted to owing outstanding rental for their East London Oxford Street offices.

Last week the Saturday Dispatch reported that the ANC made use of the offices “rent free” – in an alleged agreement between Du Plessis and the party. Du Plessis, argues that his company Slip Knot Investment (SKI), has an existing lease agreement with the ANC for the said property (see sidebar). But he refused to discuss the “status of the account” – citing tenant/landlord confidentiality.

However this newspaper has it on good authority that the party’s Dr WB Rubusana region has not paid rent for at least a year on the property – hence the reference to the party using the offices “rent-free”.

The Dispatch has seen two leases – once signed in 2009 and another in 2013 – between SKI and the ANC.

The initial five-year lease agreement was signed in 2009 by parliamentarian Humphrey Maxhegwana, who was the then provincial secretary of the ANC.

The other lease was signed in 2013 by suspended regional secretary Pumlani Mkolo. Mkolo told the Dispatch that: “The original lease was signed before our term of office, but in 2013 we moved to the current building we are in after there were leaks in the original office at the Sanlam Building. We had an office on a higher floor but when a salon moved out, we asked to be moved downstairs as there was no lift and elderly people, coming to the ANC office, found it difficult to access”.

The 2013 lease, said Mkolo, was signed before the end of the initial five-year lease as the specifications had changed and so had the floor space.

He said they had previously owed money to SKI and had always endeavoured to pay. He said he was not aware of the situation currently as he had been suspended from his position.

He admitted that they had gone for extended periods without paying rent but denied that the party occupied the premises “rent free”. It was not unusual, said Mkolo, for a non-commercial tenant to owe rent for an extended period. “As a business (SKI) would rather have a tenant than not have one. In his books it shows money owed rather than having unoccupied space,” he said. Asked how the ANC could go for months without paying rent, without an agreement with the landlord, Mkolo said: “There was such an agreement” – without going into details.

Through his lawyers, Du Plessis said the Dispatch’s use of the words “rent free” was “without any merit”.

“If there was an agreement in place in terms of which the ANC occupied the premises for free then there could be no room for an admission that rental is owing.”

LETTER FROM JEAN DU PLESSIS' LAWYER

WE ACT for Jean du Plessis in his personal capacity, as well as in his capacity as a director of Slip Knot Investments 777 (Pty) Limited (“SKI”) and various other entities which forms part of the Slip Knot Group of Companies (“SKG”).

We address this letter to you at the instance of our clients who have consulted us:

lRegarding the front page article published in the Daily Dispatch on October 8 2016 relating to our clients in terms of which article the Daily Dispatch has, among others:

lWrongly and falsely accused our clients of engaging in nefarious business practices;

lWrongly and falsely accused our clients of having an untoward business relationship with the ANC with a view to securing business which it would, in the normal course of events, not have secured;

lFailed to comply with, among others, the code of ethics and conduct for South African print and online media.

Our clients have, in addition, consulted us with regards to their rights in relation to:

lThe significant damage which they have and continue to suffer as a result of the Daily Dispatch’s conduct;

lThe duties which are owed to our clients in terms of, among others, the code of ethics and conduct for South African print and online media.

SKI is the owner of the immovable property situated at 127 Oxford Street, East London being the property leased to the ANC;

lThe relationship between SKI and the ANC in terms of the property is governed by a signed agreement which provides for the payment of market-related rentals and costs.

lNo office space and or services have been provided free of charge to the ANC by any entity in which Du Plessis is involved in;

lWhile various entities within SKG let office space to government, there is nothing untoward in this regard.

lIn accordance with the provisions of the Preferential Procurement Policy Framework Act, Act No 5 of 2000 and its regulations, government and certain public entities are obliged to follow an open tender process when procuring good and services.

lIn this regard, each and every rental agreement concluded between government and an entity within SKG was done through an open tender process.

lIt is common knowledge that Du Plessis and entities within SKG regularly approach the courts to enforce compliance by government with a fair, equitable, transparent and cost-effective procurement process, as envisaged in terms of the Constitution and PPPFA.

lThe Daily Dispatch is not only aware of the above fact, but have also on numerous occasions reported on the fact that entities within SKG have litigated in respect of tenders against, inter alia, Mayibuye Transport Corporation;

lTherefore, not only did the various entities in SKG validly secure the various tenders in terms of which accommodation is provided to government, it had to, in addition, on numerous instances litigate to protect its rights regarding the tenders which should have been or which were awarded to them;

lIt is therefore not only false and defamatory but also irresponsible to allude to anything untoward in SKG providing accommodation to government and all of Du Plessis’s, and the various entities comprising SKG, rights remain strictly reserved.

Spokesman for Du Plessis’s company Honey Lusu responded to the questions posed (by the Daily Dispatch) as follows:

lThe statement (that the ANC occupies the offices rent free) was untrue.

lThere was no deal with the ANC for a rent-free office.

lAsked how much the ANC paid in rental, he responded thus: “Insofar as the rentals charged were concerned, this is a private and confidential matter between landlord and tenant as you would understand”.

lFrom the article it is clear these unequivocal responses were not reflected in the article.

lFrom the above it is self-evident that the Daily Dispatch has published an article in which a number of false and defamatory, damaging, unfounded, wrongful and careless allegations have been made (not to mention the fact that the article is replete with factual inaccuracies) which have caused, and continue to cause, our clients to suffer significant prejudice and damage to their reputations and business interests.