This, as the Former Free State Human Settlements MEC Mosebenzi Zwane's testimony before the Zondo Commission once again drew attention to how irregular processes were followed in the appointment of 106 contractors to build houses in the province in 2010.

Whilst Zwane has previously admitted to creating a new database of contractors and suppliers to be used in the implementation of the R1 billion worth housing project after a tender process was abandoned, he on Monday denied having a hand in selecting contractors for the project.

Zwane's testimony has also failed to provide clarity as to why his department made an upfront R500 million payment to some of the contractors or why there is not much to show for it.

Zwane's failure to account for his department's procurement processes comes just months after Public Protector, Busisiwe Mkhwebane, found the same department guilty of failure to follow proper procurement procedures in the awarding of another R255 million asbestos housing contract.

Mkhwebane, in her investigative report released in May, indicated that the asbestos housing contract awarded to the Gauteng-based Blackhead Consulting and Diamond Hill Trading joint-venture in the Free State was awarded unlawfully.

Although, Zwane had already taken a ministerial position when his former department awarded the R255 million contract, evidence leader Adv. Paul Pretorius has, through questioning over the R1 billion housing deal during Zwane's term, drew attention to how this department has for years flouted tender procedures.

Mkhwebane in her May report indicated how the department and its accounting officers are guilty of maladministration and gross negligence.

She said the provincial department in 2014 participated in an expired contract of the Gauteng Human Settlements Department and failed to conduct a due diligence investigation before participating in it.

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 an amount of R139 million 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 added this was in contravention of Treasury regulations and amounts to improper conduct.

OFM News