The case is based on allegations that R24.9 million was paid to Nulane Investments to conduct a feasibility study for the Free State Province’s flagship Mohoma Mobung project, on the basis that Nulane had unique skills to perform the work. The state alleged that Nulane Investments, however, had no employees on its books and in fact subcontracted Deloitte to produce the report, for which Deloitte was paid R1.5 million. 

Mahlatsi testified on the regulations and procedures a department of government needs to adhere to or follow when carrying out programmes of action or projects.

He told Judge Nompumelelo Gusha that in 2019, he was given permission by the police to inquire about the contentious Mohuma Mobung project, where R25 million was allegedly looted and stolen in 2011 by former government officials and service providers.

'Deviated from normal tender process'

Officials, including the former head of Free State Agriculture, Peter Mbana Thabethe, as well as Seipati Dhlamini and Limakatso Moorosi, are also accused of improperly deviating from a normal tender process, in turn transgressing the prescripts of the Public Finance Management Act.

Mahlatsi told the court that he did an investigation into the project and found that initially the project was not budgeted for but later, during an adjustment budget, R30 million was allocated for the project. 

He also mentioned that the project was not registered with the National Treasury, but said it was not a requirement or compulsory for it to have been registered unless indicated otherwise.

He refrained from going to other matters currently in dispute in court and said the other issues, including how much money was paid to Nulane Investments and who authorised the payments, were not part of his scope in the investigation. 

Mahlatsi also informed the court that in order for a programme to be considered appropriate, it must be registered with the National Treasury and have a feasibility study.

"I determined that there was no request for approval for the feasibility study. The department may conduct a feasibility study, but once completed, it must be submitted for approval. One of the questions raised by the police in terms of feasibility was whether or not the department budgeted for it," Mahlatsi says.

He added that there are conditions where a department can deviate from normal tender processes. He says those conditions include cases where there is an emergency and a sole supplier. 

The trial resumes on 1 February 2023.

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