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FS asbestos housing contract under scrutiny

───   KATLEHO MORAPELA 11:21 Mon, 18 May 2020

FS asbestos housing contract under scrutiny | News Article

The controversial Free State Human Settlements' asbestos housing contract will once again come under scrutiny when the DA in the Provincial Legislature briefs the media on Tuesday.


The contract, worth more than R255 million, has since 2014 drew much controversy when the department appointed a joint venture between Gauteng-based Blackhead Consulting and Diamond Hill Trading to identify and remove asbestos roofs in the province. 

Whilst the companies did not replace any asbestos roof in the province, the millions paid by the department remains unaccounted for. The DA in the Provincial Legislature have for years called for investigations into this contract, stating that this controversial deal, alongside the infamous Gupta-linked Estina Dairy Farm, are among the corruption cases that took place under the former Free State Premier Ace Magashule's watch.

The party has previously stated that these cases are examples of how millions have been looted from the province to benefit Magashule and those politically connected to him.

The party is tomorrow expected to brief the media during a virtual press conference on the Public Protector’s report titled, “An investigation into allegations of maladministration and the irregular awarding of a contract for the eradication of asbestos roofs by the Free State Department of Human Settlements”.

Multi award-winning Investigative Journalist, Pieter-Louis Myburgh, has in his book titled Gangster State written about the contract and outlined strong links between Magashule and businessman Igo Mpambani.

Myburgh indicated that before Mpambani was gunned down in Sandton in 2017, Mpambani had compiled a suspicious “cost of business” spreadsheet that detailed how payments from the provincial department would be carved up between several parties.

In one of his articles, he outlines that a certain “AM” was due to receive R10 million, according to Mpambani's documents, and that leaked emails further showed that Magashule’s PA, Moroadi Cholota, had requested money from Mpambani on behalf of her boss.

Meanwhile, the briefing by the official opposition in the province is set to take place at 11 am.


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