Ms. Tinuli Madonsela has ruled that police buildings have been leased at grossly inflated prices.
Police chief Cele and public works minister Gwen Malungu-Nkabinde sshe holds responsible.
There has been no public response from the pair to her allegation. Analysts say this is the worst crisis sincewas elected president of South Africa in 2009. Cele is a powerfulally of Zuma and campaigned for him in the election.
Ms. Madonsela is south africa's public protector. She investigated leases for buildings intended for police purposes.
Ten year leases were signed with Roux Property fund owned by Roux Shabangu, abusinessman well connected with Zuma's government.
Ms.Mandolesa ruled that the government has paid vastly inflated prices. Thrtee times the going rate.
IN durban the deal is £104,000.000. In Pretoria a lower bid was rejected by a previous owner.
Ms. Mandolesa said Cele should face disciplinary action.
The leases were signed byMs. Mahlangu-Nkabindes department but the minister refused to cooperate in the enquiry.
Things appear far from satisfactory in Zuma's south african government.