Central SA
FS housing MEC to answer critical questions─── KATLEHO MORAPELA 15:38 Mon, 27 Jul 2020
All eyes will be on the Free State Human Settlements Department, as MEC Matshidiso Koloi is set to table the provincial department's 2020/21 adjustment budget on Tuesday.
The department responsible for housing in the province made national headlines in May when Public Protector, Busisiwe Mkhwebane, found it guilty of improper conduct, involving a multimillion rand asbestos housing contract awarded to the Gauteng-based Blackhead Consulting and Diamond Hill Trading joint-venture.
Mkhwebane's report drew attention to how this department has failed to follow proper procurement procedures, costing it millions of tax payers’ money.
OFM News previously reported that Mkhwebane outlined 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 this contract.
Mkhwebane said 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 31 in 2015.
She said their findings also indicated 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.
Mkhwebane in her investigative report further highlighted that "the Department created the impression that they participated in a contract concluded by another state institution [Gauteng Department] while the services were not the same as specified in the existing contract and also the price was higher".
She said this was in contravention of treasury regulations and amounts to improper conduct.
Whilst Mkhwebane in her remedial actions recommended that appropriate steps be taken to ensure that the conduct of the accounting officer is investigated and that the matter be reported to the South African Police Service and the Directorate for Priority Crime Investigations, Koloi is on Tuesday expected to outline how her department intends to deal with those implicated in any form of corruption and how she plans to enhance service delivery.
Following a recent presentation before Parliament by the Water and Sanitation Department, the Free State is currently amongst the provinces where water and sanitation infrastructure is still a huge concern - coupled with the mushrooming number of informal settlements where there are over 10 200 existing bucket toilets.
Koloi will in her speech also be expected to address questions regarding the escalating number of informal settlements and housing backlogs in the province.
OFM News
