The provincial department made national headlines in May when Public Protector, Busisiwe Mkhwebane, found it guilty of improper conduct involving the 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 taxpayers' 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.

Addressing the commission let by the Deputy Chief Justice Raymond Zondo on Tuesday, Adv Paul Pretorious SC confirmed that the evidence for the better part of this week will focus on the Free State Asbestos investigations.

OFM News