Cancer eating service delivery

The Department of Trade and Industry describes fronting as a system that is crippling government service delivery. We agree.

Fronting commonly involves claims of compliance based on misrepresentations of facts, whether made by the party claiming compliance or by any other person.

At most times, fronting happens when there is collusion between civil servants and individuals in private companies, who play a part in this sophisticated form of theft of money from the government’s purse which is meant for service delivery.

Czar Construction is just the latest company that has found itself embroiled in a fronting scandal in the Buffalo City metro municipality.

Its owner, Nyameka Tshangana, is allegedly fronting for a wealthy Zimbabwean businessman, Simba Hove, as we show in today’s paper.

Tshangana’s company, where she is listed as the sole owner — 100% of the shares are in her name — received more than R300m worth of tenders from the metro over the past five financial years.

Hove has his own company, Czar Civils, where he is the sole holder of 100% of the shares.

Multiple sources in the construction sector, including an employee of Czar, have alleged to the Daily Dispatch that it is Hove who owns Czar Construction and that Tshangana is merely a front for his interests.

BCM officials were vigilant to this allegedly illegal move on the metro’s coffers and alerted the Dispatch.

Of course, some may argue it is a mere coincidence that two construction companies with ostensibly separate legal ownership share a similar name.

But, we must wonder if corrupt officials at BCM are working with individuals outside the municipality.

SA continues to lose millions of rand from the public purse through fronting schemes that use the modus operandi of a crooked public servant awarding tenders to companies, whose very basis for existence flouts the law.

City manager Andile Sihlahla must investigate this case urgently.

In a 2017 letter of recommendation for Czar Construction, Sihlahla wrote he was satisfied with the work they performed.

That endorsement cannot stand if the very basis on which the work was secured was deceitful.

Not only will he be obliged to withdraw his recommendation, but he will then have to take firm action against anyone found responsible, thus sending a strong message.

We wait with keen anticipation to see the city do the right thing.

Fronting happens when there is collusion between civil servants and individuals in private companies