These include a house and a couple of luxury cars of the Gauteng-based businessman. 

Sodi, who is the CEO of Blackhead Consulting, which was awarded a R255 million tender in a joint venture with Diamond Hill Trading by the Free State Department of Human Settlements, is currently out on R500 000 bail after he was arrested last week in connection with this failed project. He faces charges of fraud and money laundering alongside his six co-accused which include the former Free State Human Settlements HOD Nthimotse Mokhesi, former Free State MEC and Mangaung Mayor Olly Mlamleli, and former national Director-General Thabane Zulu, amongst other government officials. 

The Bloemfontein High Court granted the AFU an asset freezing order worth R300 million in connection with the project following the suspects’ brief appearance in the Bloemfontein Magistrate’s Court last week.

All seven suspects were released on bail, ranging between R50 000 and R500 000. The case has been postponed to November 11 when it is expected to be transferred to the Free State High Court for trial. 

Meanwhile, the Hawks are expected to make two or three more arrests before the seven suspects are due to appear in court.

OFM News previously reported that Sodi testified before the State Capture Commission of Inquiry just a few days before his arrest and confirmed that the joint venture was 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 Range 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 explained that the first phase entailed the audit of houses, and the second phase was the removal thereof - which they planned to subcontract.

He also confirmed to buying a house in Bloemfontein where his co-accused Mokhesi has been living rent-free since 2015. Mokhesi during his testimony before the same Commission could, however, not respond to questions as to why Sodi invested R650 000 in his house just months after Mokhesi’s department awarded the joint venture a contract to the tune of R255 million. He could also not answer why a contract between himself and Sodi included a secrecy clause, indicating the property investment may not be disclosed to third parties.

Public Protector, Busisiwe Mkhwebane, has in her investigative report, released in May, indicated major flaws with the contract awarded to this joint venture indicating 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. Mkhwebane further stated that the department 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 - 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