Competition Commission allegedly spends nearly R10 million renting empty office

The Competition Commission of South Africa has paid R890,000 a month since March 2024 to lease an office block in Pretoria that it has yet to occupy.

According to a Sunday Times report, the Competition Commission had entered a three-year lease agreement for additional office space at the Department of Trade, Industry, and Competition campus in Sunnyside.

The lease’s total value is R34.5 million, according to the commission’s 2023/24 annual report.

By the end of this month, the commission will have paid nearly R10 million to rent the still-empty office block.

Competition Commission spokesperson Siyabulela Makunga acknowledged that the organisation has been paying the rent without occupying the premises.

He said the commission had yet to occupy the office block as it required renovations. Makunga explained that the lease’s signing was a prerequisite for reconfiguring and refurbishing the building.

“The commission took occupation of the building … for the purpose of reconfiguration and refurbishment of the building. Since then, demolition of the existing partitioning in the building has been completed,” Sunday Times quoted him as saying.

He didn’t specify how long the renovations would take or when staff would move in. Makunga said the Competition Commission will spend R12.1 million on the building’s refurbishment.

The revelation comes after allegations of poor leadership were levelled against commission head Doris Tshepe in 2024.

She was also accused of “pushing through” a ruling recommending that Vodacom’s proposed bid to buy a R13-billion stake in Maziv be blocked in December 2024.

Sources within the commission revealed that the decision, announced in August 2023, was split, with two of four commissioners convinced that the deal should be approved.

Tshepe and deputy commissioner James Hodge opposed the deal, while the other two commissioners supported it.

An anonymous senior commission executive described the ruling as “irrational”.

The executive argued that public and competition policy should prioritise comprehensive economic and social progress in the country.

“Our legislation is forward-thinking, explicitly incorporating considerations of industrial growth, job creation, and transformation into the assessments made by competition authorities regarding specific transactions,” they said.

“This is clearly articulated in the preamble of the Competition Act. It is what makes the Vodacom decision irrational.”

Some disgruntled commission employees sent a letter to former Trade Minister Ebrahim Patel, making serious allegations about Tshepe’s conduct and management style.

They accused Tshepe of negligence and underperformance, claiming that new cases were not being initiated and old cases were frequently left stuck at the investigation stage.

Regarding the allegations surrounding the Vodacom-Maziv acquisition, the commission took abnormally long to make its recommendation.

The firms engaged with the commission to fine-tune conditions to ensure the deal achieves its goals of improving connectivity in the country.

The conditions were sufficient for Vodacom and Maziv owner Community Investment Venture Holdings (CIVH) to secure the support of MTN, Rain, and the Department of Trade, Industry, and Competition.

Employees at the commission accused Tshepe of not taking enough time to fully understand cases.

“She loses the moral high ground with her lavish ways, with international trips, internal staff meetings with catering, conference dinners and year-end functions,” the letter to Patel said.

“The events are becoming more elaborate, with alcohol purchased at (the commission’s) expense and venues booked for wedding-like events, all in complete disregard of the Public Finance Management Act and National Treasury instructions.”