The contract was awarded to the Gauteng-based Blackhead Consulting and Diamond Hill Trading joint-venture in 2015.

This is according to the DA in the Free State, who briefed the media on Tuesday regarding this project following the release of a damning investigative report by the Public Protector. Busisiwe Mkhwebane in this report highlighted that the province not only failed to follow proper procurement procedures when they awarded this contract, but that the provincial department participated in an expired contract of the Gauteng Human Settlements Department and failed to conduct a due diligence investigation before participating in the contract.

In her report, Mkhwebane highlighted that the province was in possession of the Gauteng Department's Service Legal Agreement, which had expired, but went ahead to pay the service provider R139 million. This, despite the Auditor-General having declared the procurement as irregular as early as July 2015.

She further highlighted that the department did not receive value for money, stating that their findings indicate that the service provider had subcontracted the contract at a fee of just over R21 million, while the service provider walked away with R230 million.

Although the report does not implicate any politician, the party says the controversial deal was signed under Magashule and Mlamleli's watch, and that they must equally be held accountable in this matter.

The party's Leona Kleynhans, who was also the official complainant in the matter, says: “The Public Protector’s report confirmed our long-held belief that the contract was conceived and implemented with the express purpose of extracting funds from the Department of Human Settlements in the Free State. While once again officials are correctly taking the fall for the irregular and illegal activities, the DA is of the opinion that politicians in the Free State must have been complicit in this."

This as Mkhwebane, in her legally binding remedical actions, recommended that the current Free State Premier, Sisi Ntombela, takes the appropriate steps to ensure that the conduct of the accounting officer - Nthimotse Mokhesi - is investigated, and that the matter be reported to the South African Police Service and the Directorate for Priority Crime Investigations.

"The DA welcomes the recommendation that a criminal investigation be instituted against Mokhesi and that the conduct of the Director of Supply Chain and the Chief Financial Officer should also be investigated. Due to the advanced stage of the SIU and Hawks investigations, the DA is hopeful that arrests will follow soon and others who may be involved will also be held accountable," said Kleynhans.

OFM News