Business Report

Forensic report on R700 million Telkom Towers acquisition, to be reviewed

Mayibongwe Maqhina|Published
The Department of Public Works and Infrastructure will review the investigation conducted into the acquisition and renovation of the former Telkom Towers police headquarters.

The Department of Public Works and Infrastructure will review the investigation conducted into the acquisition and renovation of the former Telkom Towers police headquarters.

Image: Jacques Naudé/Independent Newspapers

Public Works and Infrastructure Minister Dean Macpherson has ordered the review of the report of audit firm Gobodo Forensic and Investigative Accounting into the R700 million purchase and renovation of SAPS’s former offices at Telkom Towers Complex building.

This takes place almost 10 months after consulting firm, Gobodo Forensic and Investigative Accounting (GFIA), submitted its report to the department upon completion of an investigation into the alleged irregularities in the acquisition of the Telkom Towers Complex by the department.

Macpherson said the report, submitted in August 2025, failed to meet the expectations.

“A careful consideration of the forensic report prepared by GFIA cross checked against the Annexures and Evidence Exhibits cited, and it is evident that the report, in its current form, is materially insufficient and does not adequately fulfil its intended or contracted purpose,” he said.

Macpherson made the comment when he was responding to parliamentary questions from DA MP Bonginkosi Madikizela, who inquired about the status of the forensic report that was reportedly flagged as wasteful expenditure.

The minister said the terms of reference issued to GFIA required the investigators to establish the full history of the transaction and assess whether any representations made by departmental officials or external parties were false or misleading.

The investigation was also meant to determine whether due process was followed throughout the transaction, identify any officials who caused irregular, fruitless, or wasteful expenditure and establish the extent of any irregular or unlawful activity, including fraud or corruption, and identify responsible individuals or entities.

Macpherson also said GFIA was further required to gather admissible evidence and make clear recommendations regarding disciplinary, civil, or criminal action where wrongdoing was identified.

“Despite the significant financial implications identified in the report, including expenditure of approximately R1.4 billion and an estimated loss of R776 million as a result of the Telkom Towers project and the lack of recommendations by GFIA, are deeply concerning and completely inadequate.

“The evidence obtained by GFIA does not appear to have been properly assessed, weighted and measured against applicable legal standards when making the recommendations set out in the forensic report,” he said.

Macpherson said there were grave concerns in respect of the recommendations and substantive determinations of GFIA against the findings and determinations on various matters.

These included accepting as fact certain verbal/allegations made without corroborating same to extrinsic documentary evidence, place reliance on oral testimony that appears prima facie to be contradictory to the documentary evidence obtained, and failure to recommend any disciplinary, civil, or criminal action against departmental officials implicated in the acquisition process.

There was also proposed formal action against service providers, including numerous contracted security firms who were appointed during the height of the vandalism and thefts on site; and no officials were held accountable despite inadequate planning, contract management failures, or the subsequent underutilisation of the property.

“These omissions are disappointing, problematic and unacceptable to me, as they do not assist the department in fulfilling its obligation to ensure accountability, consequence management, and good governance.

“The absence of clear, evidence-based findings and recommendations severely limits the Department’s ability to act against implicated individuals or entities,” said Macpherson.

He stated that he has formally expressed his concerns to the department’s director-general that the report does not meet the required standard nor complies with the terms of reference as agreed to by GFIA, particularly in relation to the assessment of evidence and the alignment of findings with the scope of work required.

“As such, I requested the director-general on 10 March 2026 to take urgent corrective steps, including the appointment of a suitably qualified and independent professionals to review and scrutinise the forensic report,” Macpherson added.

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