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FS controversial asbestos deal in spotlight

───   KATLEHO MORAPELA 06:50 Mon, 28 Sep 2020

FS controversial asbestos deal in spotlight  | News Article
Image: af.delachieve.com

The Free State's controversial asbestos deal worth R255 million will once again come under public scrutiny on Monday.


This, as the former Head of the Provincial Human Settlements Department, Nthimotse Mokhesi, returns to the State Capture Commission of Inquiry.

Mokhesi is expected to soon take the witness stand and continue giving evidence relating to this failed multi-million rand project. 

During his testimony last week, Mokhesi had to answer critical questions regarding his role as an accounting officer and how his department signed off on this deal without receiving any value for money.

Mokhesi has been fingered for maladministration and gross negligence in a Public Protector report over this project with Busisiwe Mkhwebane outlining that the department failed to follow proper procurement procedures.

This, as 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 the 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 despite the Auditor-General having declared the procurement as irregular as early as 31 July 2015.

Mkhwebane said, "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. Mkhwebane said their findings also indicate that the service provider had subcontracted the contract at a fee of just over R21 million, while the service provider was paid R230 million.

The contract for service providers to identify and remove asbestos roofs in the province has since the 2014/15 financial year drawn much controversy, with millions paid by the department remaining unaccounted for.

Previous testimonies before the Commission have also indicated how the provincial department awarded Blackhead Consulting and Diamond Hill Trading joint-venture the contract despite the two companies not having accreditation to remove asbestos material.

Blackhead CEO, Edwin Sodi, in August testified that they were not in a position to remove any asbestos material from the houses they had agreed to audit as they were not accredited, but could only "audit and assess" the houses.

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. He said the first phase entailed the audit of houses and the second the removal thereof, which they planned to sub-contract.


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