Corruption busting, cost-cutting & construction building a better KZN

The "Build KZN Better" summit will be held in Durban next week to bring key stakeholders under one roof to find solutions to issues around the built environment. In this interview with BizNews, KZN Public Works and Infrastructure MEC Martin Meyer gives an update on what has already been achieved. Meyer also shares the story behind the dismissal of the Supply Chain Management Director after the exposure of R1,1 billion in misconduct relating to the awarding of 29 contracts to one firm. He speaks of the discovery that over 50 former officials still had their cell phones – and how drastic cost-cutting in his own office saved R1.8 million in six months. Meanwhile, the department has brought its debt of almost R800 million owed to contractors down to just over R200 million. Meyer further describes the strides being made in the fight against the Construction Mafia..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here..The seventh BizNews Conference, BNC#7, is to be held in Hermanus from March 11 to 13, 2025. The 2025 BizNews Conference is designed to provide an excellent opportunity for members of the BizNews community to interact directly with the keynote speakers, old (and new) friends from previous BNC events – and to interact with members of the BizNews team. Register for BNC#7 here..If you prefer WhatsApp for updates, sign up to the BizNews channel here..Listen here.Highlights from the interview ___STEADY_PAYWALL___.Chris Steyn (00:02.0)Build KZN Better. That summit will be held in Durban next week. We get the details from Public Works and Infrastructure MEC Martin Meyer. Welcome, Martin..Martin Meyer (00:13.464)Thank you, thank you for having me. It's wonderful to be with you today..Chris Steyn (00:17.082)What solutions are going to be sought at this conference, and who are the big role players?.Martin Meyer (00:23.982)Thank you. Yes, and solutions are exactly what we're looking for. The Department of Public Works and Infrastructure in KwaZulu-Natal owns over 10,000 properties across the province. The property market and real estate sector have advanced leaps and bounds in the last 10 years with technology, green technology, and other innovations. Unfortunately, government departments have been left behind. Even though we are the biggest single property owner, we are no longer a significant player. We've also fallen behind in managing and utilizing our buildings effectively, leaving many unutilized or unfit for use..We realized we cannot solve these challenges alone. So, we're bringing together community role players, traditional leaders, and especially experts in the real estate market—whether investors, developers, or academics—to discuss how we can work together. We've been very selective about who we invite. These are individuals who understand that time is money and that government has limited resources, both time and financial..We'll examine our property portfolio alongside those of local governments within KZN and the national department. We're asking communities living near these properties and private sector players to bring fresh ideas and suggestions on how to change and improve this industry. As a government department, we're committed to bringing investment back into KZN, creating jobs, and ensuring our buildings serve the people of KwaZulu-Natal..Chris Steyn (01:52.870)What have you done so far to repurpose abandoned buildings?.Martin Meyer (01:59.630)One of our biggest milestones occurred a few weeks ago when we launched a new development through a public-private partnership (PPP) for the Esplanade government building. This development, costing tens of millions of rands, is a fantastic project because it minimizes our costs and risks by partnering with the private sector..Once it's completed, we'll move government departments currently leasing offices at exorbitant costs into this beautiful, energy-efficient building. The plans are stunning, and it will save us money on leases..Additionally, we're handing over three problematic buildings in eThekwini: the West Point Lodge on the Esplanade overlooking the harbour, the Siemens Institute building on Point Road, and the Palm Beach Hotel, a former abandoned hotel now owned by the department. These buildings are being handed over to eThekwini to be repurposed for low-cost housing, emergency housing, or mixed-use developments..Read more: BN Briefing: Trump's bold inauguration, crypto surge, and Cape Town's global triumph.We've also handed over properties in the uMhlathuze municipality (known to some as Richards Bay) for skill center developments. In KwaMashu, we've handed over property to the Department of Higher Education for a new TVET college..We're also conducting a full audit of our properties because, frankly, we didn't know the extent or condition of what we owned. We're completing this audit in-house to save costs, and we're currently at 43% completion. This effort ensures we manage our properties more effectively and remain accountable to the public..Chris Steyn (03:55.878)And what is happening with the Construction Mafia?.Martin Meyer (03:59.566)Yes, it's been quieter recently, but the construction industry typically slows down over December, so I wouldn't read too much into that. However, I do think two key factors have made a difference..First, there's now strong political will to address this issue. People like Minister MacPherson, the president, the Minister of Police, and MECs across all nine provinces have taken a stand. SAPS and the NPA are acting decisively—when we call the police about site disruptions, they show up and make arrests..Second, our stance has encouraged private sector players, communities, and legitimate business forums to step forward. They now feel protected and empowered to oppose organized criminals, which has been crucial in pushing the Construction Mafia out. It's heartening to see South Africans standing together to fight back against these groups..Chris Steyn (05:01.360)Meanwhile, the Supply Chain Management Director has been sacked. Please give us details about the corruption scandal that led to their departure..Martin Meyer (05:12.866)There were two main issues that led to his dismissal for gross negligence. During his tenure, we discovered that 29 contracts were awarded to one company, raising serious concerns about monopolistic practices. Such concentration of contracts is unacceptable in our department..Additionally, there was gross mismanagement of trade tools, especially cell phones provided to officials. Over 50 former officials still had department-issued cell phones, and we were paying the contracts, costing hundreds of thousands of rands. Shockingly, the director assigned himself four department-paid cell phones. For perspective, I only have one as the MEC..Whenever we uncover something this big, it raises red flags about potential criminal activity. While we can investigate internal matters and strengthen our processes, we lack the authority to probe deeper into potential corruption. Therefore, we've approached The Hawks to investigate further. They have the capability to subpoena bank accounts and telephone records, which we cannot do. If criminal activity is confirmed, we'll pursue legal action and try to recover the lost funds..Chris Steyn (06:47.96)And what was the value, the total value of those contracts?.Martin Meyer (06:51.95)We're looking at just over a billion rand over a few years..Chris Steyn (06:56.55)Well, now what initiatives are being taken to ensure better transparency with tenders?.Martin Meyer (07:06.262)Yeah, so we are very excited that even before we found out about this specific matter, before we started investigating it, we had already put measures in place to ensure things like this don't happen. For example, all our bid committee meetings are now recorded audiovisually. I would have thought this was standard practice, but apparently, we are the first department in the country to do so. We're thrilled that other departments are now reaching out to us for guidance on implementing the same measures..Read more: RW Johnson: Cape Town's rise comes at a cost.We're also exploring the use of AI technology to further enhance our processes. This approach is already proving effective. Previously, every bid seemed to go to appeal, but since implementing these changes, none of our tender processes have faced appeals. People now understand that our process is transparent, leaving no room for misconduct..Additionally, we're strictly enforcing consequence management. Officials now think twice before attempting wrongdoing because they know there will be accountability. I'm particularly proud that we no longer have situations where officials are placed on paid leave for extended periods during investigations. In this specific case, it took exactly 60 days from the investigation's initiation to the termination of services. This is how we responsibly manage the resources entrusted to us by the people of South Africa..Chris Steyn (08:33.936)Now, what interventions are being put in place to reduce your department's debt?.Martin Meyer (08:40.62)The province of KwaZulu-Natal is facing severe financial distress, as are all nine provinces in South Africa. At one point, our provincial deficit was around nine billion rand. However, significant progress has been made under the leadership of MEC of Finance, MEC Rogers, and the provincial Cabinet to reduce this deficit..I'm proud that the Department of Public Works is leading the way in cost-cutting measures. We've made considerable strides in addressing payment issues with our contractors. Our debt to contractors, which once stood at nearly 800 million rand, has been reduced to just over 200 million. While that figure is still too high, it's a substantial improvement..We've implemented stringent cost-cutting measures across the board. For instance, we've drastically reduced cell phone-related expenses through better management. Even in my own office, the changes have been significant. In the first six months of last year, during my predecessor's term, the MEC's office spent about 1.9 million rand on operational costs, including travel. In the six months I've been in office, that figure has dropped to just over 200,000 rand, saving approximately 1.8 million rand..We are continuing to identify areas for improvement, such as vehicle usage and other operational expenses. By carefully studying and optimizing every aspect of our operations, we are becoming a leaner but far more efficient department..Chris Steyn (10:26.288)Thank you. That was KZN MEC for Public Works and Infrastructure Martin Meyer speaking to BizNews ahead of the Build KZN Better conference next week in Durban. Thank you, Martin, and I'm Chris Steyn for BizNews..Martin Meyer (10:43.234)Thank you so much..Read also:.Bitcoin buzz: Melania Trump, crypto craze, and a market on the moveAlec Hogg's Davos Moments: Decoding the WEF, Klaus Schwab myths and 'God-Incidences'Chuck Stephens: Trump's triumphant inauguration and the GOP's bold comeback

Corruption busting, cost-cutting & construction building a better KZN

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