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FS irregular housing tenders under scrutiny

───   KATLEHO MORAPELA 06:53 Tue, 22 Sep 2020

FS irregular housing tenders under scrutiny | News Article

The Free State Human Settlements Department has once again come under scrutiny for failure to follow lawful procurement processes.


This, as the State Capture Commission of Inquiry on Monday heard how the department had coughed up over R1 billion between 2010 and 2011 to build low cost housing that is still non-existent.

During former Head of the Department Nthimotse Mokhesi's testimony, it was revealed that the total allocation for the housing project was R1.42 billion, with over 21 000 low cost housing units planned to be built across the province.

Mokhesi confirmed his department had made an advanced payment of over R500 million prior to any work being done, but the building of the houses was not achieved.

His testimony on Monday came just weeks after he had to account before the same commission over the controversial R255 worth asbestos deal.

The commission previously heard how Mokhesi's department awarded the Blackhead Consulting and Diamond Hill Trading joint venture the asbestos contract despite the two companies not having accreditation to remove any asbestos material, and how it participated in an expired contract of the Gauteng Human Settlements Department.

It also failed to conduct a due diligence investigation before participating in the contract.

Whilst testimonies into the Free State 2014 asbestos deal revealed how Mokhesi signed off on a contract that contravened Treasury regulations, the commission on Monday also heard that the 2010/11 housing contract was unlawful because the department did not follow any lawful procurement processes.


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