Busisiwe Mkhwebane has in her investigations found the department guilty of the multi-million rand asbestos housing contract that was awarded for the assessment and removal of asbestos roof houses back in 2015. 

Mkhwebane in her report stated the contract awarded to the Gauteng-based Blackhead Consulting and Diamond Hill Trading joint-venture, was awarded without following proper procurement procedures and that the provincial department participated in an expired contract of the Gauteng Human Settlements Department. She indicated that the provincial department did not only fail to conduct a due diligence investigation before participating in the contract, but that there was gross negligence by the accounting officer Nthimotse Mokhesi and the Supply Chain Director.

Mkhwebane in her report further highlighted that the province was in possession of the Gauteng Department's Service Legal Agreement, which had expired and went ahead to pay the service provider an amount of R139 million 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 indicates 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.

The DA's Leona Kleynhans, who was also the official complainant in the matter, yesterday told members of the media that "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".

Kleynhans said they welcome Mkhwebane's report and her remedial actions, which includes that Free State Premier Sisi Ntombela takes appropriate steps to ensure that the conduct of Mokhesi is investigated and that the matter be reported to the South African Police Service and the Directorate for Priority Crime Investigations.

She, however, highlighted that more officials need to be held accountable, including politicians such as the former Free State Premier Ace Magashule together with former Human Settlements MEC Olly Mlamleli, as the deal was signed under their watch.

The Department has not yet responded to OFM News' set of questions regarding Mkhwebane's legally binding remedial actions and their plan of action.

OFM News