The National Prosecuting Authority (NPA) has confirmed the seventh suspect was arrested on Thursday while the others, who included Blackhead Consulting Chief Executive Officer (CEO), Edwin Sodi, were arrested on Wednesday. 

Sodi was awarded a R255 million tender in a joint venture with Diamond Hill Trading by the Free State Human Settlements Department in 2014. His arrest follows his testimony before the State Capture Commission of Inquiry earlier this week.

OFM News previously reported that Sodi, during his testimony, not only admitted failure to declare that his company had no accreditation to carry out the entire project, but admitted investing in a residential property in Bloemfontein with the then Head of the Department, Nthimotse Mokhesi. Mokhesi during his testimony could, however, not respond to questions as to why Sodi invested R650 000 in the house he lived in just months after his department awarded the joint venture the multi-million rand contract.

Amongst those arrested, is the department's former Director, Thabane Zulu, who is said to have benefited from a R600 000 payment towards the purchase of a Range Rover, made by Sodi in KwaZulu-Natal in December 2016.

OFM News' Lucky Nkunyane yesterday reported that the former mayor of the Mangaung Metro, Olly Mlamleli, was amongst those arrested.  

All seven suspects facing charges of fraud, corruption, and money laundering, amongst others, will appear before the local magistrate's court five months after Public Protector, Busisiwe Mkhwebane, released a damning report about the project.

She, in her report, indicated that the department failed to follow proper procurement processes.

She said the Free State 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. She said their findings also indicate that the service provider - the Blackhead Consulting and Diamond Hill Trading joint venture - had subcontracted the contract at a fee of just over R21 million, while they were paid over R230 million.

OFM News