Key Takeaways
- Eugene Modise, Tshwane deputy mayor and MMC for Finance, was found to be unethically benefiting from a company that has a multi-million rand security contract with the municipality.
- Modise derived rental income from a property he owns and leases to Triotic Protection Services, a company he previously owned.
- The forensic investigation report found Modise committed several breaches of the Councillor’s Code of Conduct by not declaring all his financial interests.
- The report recommended disciplinary action be taken against Modise, but the council voted to establish a special committee to consider the findings and make a recommendation to the Gauteng MEC for Cooperative Governance and Traditional Affairs.
- The DA has announced its intention to open fraud charges against Modise, citing his misrepresentation and the prejudice suffered by the city due to the irregular extension of the Triotic contract.
Introduction to the Investigation
A forensic investigation report has found that Eugene Modise, the deputy mayor and MMC for Finance of Tshwane, was unethically benefiting from a company that has a multi-million rand security contract with the municipality. The report, conducted by Ncube Incorporated law firm, found that Modise derived rental income from a property he owns and leases to Triotic Protection Services, a company he previously owned. The report also found that Modise committed several breaches of the Councillor’s Code of Conduct by not declaring all his financial interests.
The Security Tender
In 2016, the Tshwane Municipality advertised a tender seeking companies to provide security services for some of its properties, assets, and personnel. The city’s Bid Evaluation Committee received 272 bids, with only 22 of those being forwarded to the Executive Adjudication Committee (EAC). However, the tender was cancelled due to several "irregularities" in the process, including the unauthorised transportation of bid documents. After years of litigation, the tender was eventually awarded to the 22 companies whose names were initially forwarded, including Triotic Protection Services.
Modise’s Link to Triotic Protection Services
Triotic Protection Services was registered as a close corporation in December 2003, with Modise as one of its directors. In 2010, the company changed to a private corporation, with Modise still as a director. Modise resigned as a director of Triotic in February 2023, just weeks before he was revealed as a PR councillor for the ANC in Tshwane. However, the investigation found that Modise was still deriving benefit from Triotic, as he had sold the company to his business partner on an instalment basis. Modise also leased a property to Triotic, from which he derived rental income, which he failed to disclose in his declaration forms.
Breach of Councillor’s Code of Conduct
The report found that Modise committed several breaches of the Councillor’s Code of Conduct by not declaring all his financial interests. Modise failed to disclose his ongoing financial links to Triotic, including the instalment payments and rental income. The report also found that Modise failed to disclose at least four other properties he owned. The investigators noted that Modise’s failure to disclose his financial interests represented a material breach of statutory and ethical obligations.
Allegations of Direct Benefit
The complainant in the case, Jacqui Uys, alleged that Modise used money the city paid to Triotic to settle his municipal bills. The investigators examined the dates of the payments made by the municipality to Triotic against Modise’s properties and found that on the same day the municipality paid Triotic R3.3 million, Modise paid rates and taxes for five of his properties in Tshwane, totalling R714,000. However, the investigators could not establish a direct financial link between the two transactions.
Next Steps
The forensic investigation report made several recommendations, including disciplinary proceedings against Modise. However, the council voted to establish a special committee to consider the findings and make a recommendation to the Gauteng MEC for Cooperative Governance and Traditional Affairs. The DA has announced its intention to open fraud charges against Modise, citing his misrepresentation and the prejudice suffered by the city due to the irregular extension of the Triotic contract. The ANC Greater Tshwane region is set to hold its elective conference this weekend, where Modise is expected to run to retain his position as chairperson.