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The hawks have arrested 6 people in connection with a Free State tender.
Gallo Images / Sowetan / Tiro Ramatlhatse
- Six people have been arrested in three provinces on charges of fraud and corruption.
- They face 60 charges related to a contract to evaluate and replace asbestos roofs in the Free State.
- An arrest warrant was obtained for a seventh person in KZN.
Three high-ranking government officials and three businessmen were arrested in an operation in several provinces carried out by the Directorate for Priority Investigation of Crimes (Hawks).
The arrests are linked to an investigation into alleged corruption and fraud in the housing program in the Free State, which amounts to 255 million rand.
The money was supposed to have been spent evaluating, removing, and replacing asbestos from roofs. Asbestos is considered dangerous in the home.
EXPLANATOR | What You Need To Know About The Free State Asbestos Deal
The Hawks’ arrests come after a referral from the Special Investigation Unit (SIU) under the 2019 R39 proclamation.
This was signed by President Cyril Ramaphosa last year and allowed for an investigation into the affairs of the Free State Department of Human Settlements and the losses it had suffered.
It also carries the weight of recommendations made in a report by the Public Protector Busisiwe Mkhwebane, who uncovered how money was cleared and disbursed in an irregular manner, rather than entering the program.
60 loads
The report found that an old Gauteng government contract was used in subterfuge to get money released, and although this was highlighted, the money continued to flow.
READ | Hawks Arrests Alleged Masterminds in Free State R255m Asbestos Audit Scandal
Hawks spokesman Brigadier Hangwani Mulaudzi said the 60 charges the defendants face include money laundering in violation of the Prevention and Combating Corrupt Activities Act (POCA), as well as violation of the Management Act. of Public Finance (PFMA).
He explained that the arrests stemmed from a joint investigation by the Free State Serious Corruption Investigation, the SIU and the National Prosecutor’s Office.
The officials allegedly also received bonuses from a contractor or an individual.
“It is alleged that the provincial department gave the impression that they participated in a contract concluded by the Gauteng Department of Human Settlements while the services were not the same as those specified in the existing contract and also the price was higher, in contravention of Treasury regulations, “Mulaudzi said.
These are “unauthorized, irregular or fruitless and wasteful expenditures” worth more than R255 million.
The whereabouts of a person from KwaZulu-Natal is still unknown and an arrest warrant has been issued for that person.
The group will appear in Bloemfontein Magistrates Court on Friday.
