R170m irregular expenditure: Tshwane deputy Mayor's security firm ties questioned

A report on allegations that City of Tshwane's deputy Mayor Eugene Modise failed to disclose his interest in a company providing security services to the municipality will be presented to the council for consideration once a legal opinion has been obtained.

This is according to Speaker Mncedi Ndzwanana, who acknowledged the public outcry over the outstanding investigative report on Modise and confirmed that his office has received the report from the city's Group Audit and Risk Department.

“I was further advised that the report should be sent for a legal opinion, which I have done. Once I receive this legal opinion, the report will be tabled for council’s consideration,” he said.

The report in question stems from concerns raised by the DA earlier this year that Modise had past ties to a security company, namely Triotic Protection Services, with municipal contracts.

Modise, who also serves as member of the mayoral committee for Finance, had previously resigned from Triotic, a company owned by his mother, Nelly Modise, and directed by Neo Mafodi, allegedly the mother of his child. 

The company was awarded a security tender in the 2016/2017 financial year.

The DA has since filed a complaint with Public Protector Kholeka Gcaleka, alleging that a company with questionable tax compliance status was awarded a multimillion-rand tender by the city. 

The company had a judgment against it for unpaid taxes, totalling R59 million over five years.

Notably, the company secured the tender in 2016/2017, years before Modise became a councillor in 2023.

DA caucus leader Jacqui Uys previously exposed that despite owing SARS R59m, Triotic Protection Services was appointed to the City of Tshwane's Watchman Services Panel and awarded a R49m security tender with the Gauteng Health Department.

Modise has repeatedly said he is complying with forensic investigations instituted by the city.

According to a recent media report, Tshwane's internal investigation has allegedly found that Modise might have breached council regulations by failing to disclose and divest his interest in Triotic Protection Services, a company providing security services to the municipality.

Cilliers Brink, DA Tshwane mayoral candidate, said: “Under the provisions of the Municipal Finance Management Act, it is unlawful for a councillor to have a financial interest in a service provider of the municipality.” 

Brink stated that concerns about Modise's links to Triotic were first raised in February. However, despite the city's commitment to investigate, Modise remained in his role as Finance MMC.

“In June, the DA also reported the irregular extension of municipality security contracts to the Auditor-General. This included Tshwane's contract with Triotic. The city has since declared R170 million related to these contracts as irregular expenditure,” he said.

rapula.moatshe@inl.co.za