Free State asbestos saga: Seven accused back in court

The seven suspects linked to the controversial R255 million asbestos scandal in the Free State are expected to make an appearance in the High Court in Bloemfontein on Wednesday, 11 November 2020.

The accused are: African National Congress (ANC) aligned businessman Edwin Sodi, former Mangaung mayor, Olly Mlameli, Free State Human Settlements head Nthimotse Mokhesi, supply chain officer Mahlomola Matlakala, Sello Radebe, former Msunduzi municipal manager Thabane Zulu and director or ORI group Abel Monyeki.

They were arrested by the Directorate for Priority Crime Investigation (DPCI), also known as the Hawks, for their roles in the saga. It comes as the ANC’s secretary-general Ace Magashule also faces arrest for the alleged looting spree that was sponsored by the unfinished government project. Magashule was premier of the province at the time the contract was awarded.

Following their last court appearance, the accused were granted bail ranging from R50 000 to R500 000. They face over 60 charges which include corruption, fraud, money laundering in contravention of the Prevention and Combating of Corrupt Activities Act, POCA, as well as contravention of the Public Finance Management Act.

NPA: Asbesto contract procured in ‘fraudulent and corrupt manner’

According to the National Prosecuting Authority (NPA) wrongdoing in the contract was committed in the appointment of two companies in 2014 as service providers to the provincial Department of Human Settlements, to assess and remove asbestos roofs and/or houses.

The two companies sub-contracted two other separate companies of which one allegedly did the work for only R21 million. R230 million was paid to the initial contracting company and Sodi, the director of the Blackhead Consultants company.

“The current loss to the department is, therefore, R230 million and further potential loss is R25 million. The procurement process was done in a fraudulent and corrupt manner. In addition, certain public officials received gratification from the company and/or an individual amounting to several counts of corruption involving more than R 2 million,”

National Prosecuting Authority (NPA) spokesperson Sipho Ngwema

The NPA’s Asset Forfeiture Unit was quick to act, seizing assets belonging to the accused in the case. The items included luxury vehicles and property – a large chunk belonged to Sodi. He had appeared before the State Capture Inquiry, just days before being arrested. Sodi admitted to giving hundreds of thousands of rands to a number of ANC officials, including Zweli Mkhize and Zizi Kodwa.