The former head of the Free State Human Settlements Department Nthimotse Mokhesi;  businessman Sello Radebe; the former Director-General (DG) of the National Human Settlements Department Thabane Zulu; and former Mangaung Metro Mayor Olly Mlamleli have each been granted bail of R100 000. 

The Chief Executive Officer (CEO) of the Johannesburg company Blackhead Consulting, Edwin Sodi, who handed himself in to authorities on Wednesday, will have to cough up R500 000 for bail, a sum he has agreed to. 

Only two accused raised concerns regarding the bail amount, the first being an official in the supply chain division of the Free State Human Settlements Department identified as Mahlomola Matlakala and Kgotso Monyeki. 

OFM News’ Olebogeng Motse reports these two are out on bail of R50 000 each, less than the R100 000 proposed by prosecutor Johan De Nysschen.

After Matlakala and Monyeki’s legal representatives raised concerns regarding the R100 000 bail, De Nysschen responded that these are extremely serious charges that could land any of the accused in jail for up to 15 years, and warned that the R100 000 was the price they had to pay for their involvement. De Nysschen also revealed the investigation into the matter is between 80 and 85% complete and he was ready to hand over the provisional indictment.

The case has been postponed to 11 November.

Sodi was awarded a R255 million rand worth tender in a joint venture with Diamond Hill Trading, owned by slain Welkom businessman Igo Mpambani, by the Free State Human Settlements Department in 2014. 

In his testimony at the Zondo Commission this week, Sodi admitted failure to declare that his company had no accreditation to carry out the entire project and that he had invested 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 R255 million contract. 

Zulu, on the other end, 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. Mlamleli was the then MEC of the provincial Human Settlements Department.

The tender was also subject to an investigation by Public Protector Busisiwe Mkhwebane who highlighted the same concerning irregularities.  

OFM News’ Katleho Morapela reported that Mkhwebane revealed the Free State was in possession of the Gauteng Department's Legal Service 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 July 31 in 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