Central SA
Former FS Housing HOD to account for failed asbestos deal─── KATLEHO MORAPELA 08:41 Fri, 28 Aug 2020
The former head of the Free State Human Settlements Department, Nthimose Mokhesi, is today expected to give evidence before the State Capture Commission of Inquiry relating to the controversial R255 million asbestos project.
This, after Deputy Chief Justice Raymond Zondo on August 5 postponed his hearing after his new legal team made submissions to the commission requesting for a period of roughly two weeks to prepare for his appearance, on grounds that they had not entirely familiarised themselves with the background of the investigations following the withdrawal of his Bloemfontein-based state attorney from the case.
Mokhesi, who was the department’s Accounting Officer, was key to ensuring that the Gauteng-based Blackhead Consulting and Diamond Hill Trading Joint Venture adhere to the 2014 contract 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 remain unaccounted for.
Officials involved in the project are alleged to have received bribes in the form of money, cars, and other goods. OFM News earlier reported that the R255 million project raised eyebrows on when asbestos expert, Jacobus Roets, testified that the cost of the project was "exorbitantly high".
During his testimony, he told the commission the report prepared by Blackhead Consulting and Diamond Hill Trading joint venture for the assessment, audit, and eradication of asbestos roofs in the province was ineffective. He said the companies failed to give a clear indication of how much asbestos there was per house or unit nor the extent of the risk it posed to the occupants of the houses. Roets told the commission the report, dated 2 February 2015, was "not of much use for such a big project", as it lacked basic details. He said anyone who authorised the project should have seen that.
The Commission on August 8 also heard how Blackhead Consulting and Diamond Hill Trading joint venture were awarded the tender despite not having accreditation to handle any asbestos material nor remove it.
According to Blackhead CEO, Edwin Sodi, who testified before the Commission, the two Gauteng-based companies awarded a R255 million worth contract by the provincial department were not in a position to remove any asbestos material from the houses they had agreed to audit as they were not accredited, but had the skills and expertise to only audit and assess asbestos houses. Sodi told the commission there is no need to be registered to conduct asbestos audits although there is a need to be registered to remove and dispose of it.
The businessman who stands accused of making a R600 000 payment towards the purchase of a Ranger Rover for the department's former director, Thabane Zulu, told the commission the multimillion rand asbestos project was set to unfold in two phases with the first one entailing the audit of houses and the second the removal thereof, which they sub-contracted.
Whilst Blackhead sub-contracted the work to Mastertrade 232, and it sub-contracted to the ORI Group, the Deputy Chief Justice grilled Sodi for agreeing to do the work that requires expertise and accreditation that he did not have.
In an investigative report which found the Free State Human Settlements Department guilty of improper conduct involving this project, Public Protector Busisiwe Mkhwebane said there was no value for money and 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 it.
She 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 millions despite the Auditor-General having declared the procurement as irregular as early as July 31 in 2015.
She in her report indicated that the service provider had subcontracted the contract at a fee of just over R21 million, while the service provider walked away with more than R230 million.
Mokhesi is today expected to explain why the department signed off on the deal.
OFM News
