Cape Town - The construction company run by alleged 28s gang wife, Nicole Johnson, has been dealt another blow with the National Treasury placing it on the list of restricted suppliers for the next 10 years, for allegedly supplying fraudulent BEE certificates on tender applications.
In an exclusive interview with the Weekend Argus, City of Cape Town Manager Lungelo Mbandazayo said he had received the outcome from the Treasury after a complaint last year.
It follows an investigation by the municipality into the collusion between the “construction mafia” and City officials, amid ongoing applications by various companies either owned by Johnson or affiliated with her. It is understood that this led to the discovery of the fraudulent certificates being issued.
The investigation also honed in on extortion by gangs which were holding up developments across Cape Town.
Johnson, who is the wife of alleged 28s gang boss Ralph Stanfield, was notified that the City had blacklisted various companies either owned by her or Stanfield due to reputational risk.
According to a list provided to the Weekend Argus, 12 companies were blacklisted from doing business with the municipality.
As the owner of Glomix CC, Johnson applied for two tenders for the construction of houses.
In June last year, Mbandzayo wrote to Johnson raising concerns about the Broad-Based Black Economic Empowerment (BB-BEE) certificate, and stating that not only was the document fraudulent but that the SM BEE Rating Agency had confirmed it had never issued any certificates to Glomix.
In response to Mbandazayo, Dirk Kotze Attorneys, said that their client had instructed the New Generation Corporate Group (NGCC) to obtain the certificate on her behalf.
The attorneys stated that Johnson had submitted the certificate as it was received by the NGCC, and had no reason to question its authenticity. They blamed the NGCC for the fake certificate.
“Our client was shocked to discover this fraudulent conduct and is in the process of taking appropriate legal measures against all those involved. We want to emphasise that our client had no motives to manipulate or falsify the certificate, as they have consistently maintained a level 1 contributor status at all relevant times,” their letter stated.
The NGCC claimed that the person employed to obtain the certificate could not be reached. Documents attached to the letter showed that the couple paid R50 000 for the certificate.
Mbandazayo then wrote to the National Treasury highlighting the fraudulent certificate and last week the Treasury informed him of its decision.
“This means Glomix CC is restricted from doing business with any organ of state for the next 10 years. The Treasury instructed me to write to Johnson and inform her of the outcome which I have done,’’ he said.
Johnson and Stanfield are in custody after they were arrested at their posh Constantia home by the AntiGang Unit last year. The duo along with Johannes “Bal” Abrahams, Denver Booysen and Jose Brand were arrested on various charges, allegedly linked to a manhunt and attempted murder of a former employee of Stanfield after he allegedly stole over R1 million from the couple.
During the explosive bail hearings it was revealed that Johnson also faced losing two upmarket Sorbet salons in Green Point and Canal Walk following her incarceration. At the time Sorbet Group CEO, Linda Sinclair, confirmed they had made an offer to purchase the two salons after Johnson had not met her franchisee obligations.
Last year, Mbandazayo said the municipality had cancelled a property deal where Johnson bought a property in the Gardens in an auction. He said the property in New Church Street was valued at R2.4m and auctioned by High Street Auctioneers, and sold to a company owned by Johnson where she made a R3m cash offer.
Mbandazayo became aware of the sale on December 14, and discovered that only the deposit and the auctioneer’s commission had been paid, allowing them to immediately terminate the sale.