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For Mervyn Naidoo 
1 hour ago
Durban – A former government official with strong ties to KZN was a central figure in the R255 million Free State asbestos tender corruption issue, which includes Ace Magashule, the ANC secretary general, as a defendant.
That was the argument made by the State in the accusation that presented the 16 defendants in the matter in the Justice of the Peace in Bloemfontein on Friday.
To the influence of Thabane Wiseman Zulu, a business owner who benefited from the asbestos contract reportedly paid 600,000 rand, in late 2015, to purchase a Range Rover from a Ballito dealership.
Zulu, who was represented on Friday by Durban-based defender Paul Jorgenson, is also believed to have received an improper tip from R1m in May 2015.
The State alleged that Edwin Sodi was responsible for both payments, which was a token of appreciation for Zulu’s influence on his company, Blackhead Consulting (Pty) Ltd, which was awarded a score in the asbestos tender.
The tender in question was a joint venture between the Gauteng-based engineering consulting firm of Sodi (Blackhead) and Igo Mpambani’s Diamond Hill Trading 71.
Zulu was director general of the Human Settlements Department at the time the entity awarded the R255m contract.
Other prominent positions that Zulu previously held include that of Msunduzi city manager and CEO at the Department of Energy.
He was named CEO of Richards Bay Industrial Development in June.
In August, Zulu also appeared before the State Capture Allegations Investigation Commission, which is chaired by Supreme Court Vice President Raymond Zondo.
He denied making a profit from the asbestos contract and said the money Sodi paid the dealer was in lieu of an amount owed to him.
Zulu explained that Sodi had used the services of his Pietermaritzburg event company and asked him to pay the dealer.
Sodi had also appeared before the commission in September 2020 regarding his involvement in the asbestos matter, and on October 1, he and six other defendants in the matter were arrested.
Olly Mlamleli, a former mayor of Mangaung and Nthimoste Mokhesi, a former head of the province’s human settlements department, were among those arrested.
Magashule was arrested on November 13 and during Friday’s hearing, state prosecutor Johan de Nysschen said the number of defendants in the matter had risen to 16 after three more arrests.
Albertus Venter, who is the head of the legal department of the Office of the Prime Minister of the Free State, was defendant number 16.
All the defendants in this matter were granted bail of various amounts after their respective arrests.
They faced collective accusations of fraud, corruption and money laundering.
Mokhesi, listed as “Defendant Number 1”, signed Sodi and Mpambani’s joint bid for asbestos eradication in the province on October 1, 2014, and the contract amount was 255 million rand.
They received an advance of 51 million rand.
Sodi and Mpambani, who was the sole director of Diamond Hill, subcontracted the work to Stamp Radebe and his company Mastertrade 232 (Pty) Ltd for almost R45m.
Radebe then outsourced the work to Abel Manyeki and his company, Ori Group (Pty) Ltd for about R22 million.
All the directors involved and their companies are accused in the case, except only Mpambani.
He was shot and killed in 2017.
Mahlomola Matlakala, director of supply chain management in the Free State human settlements department, Nozipho Moliko, chief financial officer of the same department and Thabiso Makepe, chief engineer, were the other government officials listed as defendants.
The State alleged that eight of the defendants, who were all government officials, ignored the Public Finance Management Law, the Finance Regulations, and sections of the Constitution in their handling of the asbestos tender.
They claimed the officials pretended proper processes were followed to award the award to the Sodi and Mpambani joint venture, they had no personal or financial interest in the award, the money paid was adequate.
They also acted as if the original contract was allowed to be subcontracted and, again, subsequently subcontracted, without any disclosure, and that the fees charged were not inflated.
The auditor general noted the award of the contract in July 2015, and the district attorney responded immediately with a request from the Superior Court, calling for all contract payments to be stopped.
But another R139m was paid to the joint venture holders.
Therefore, the State classified the award as “illegal” and “irregular.”
In addition to being implicated in all eight counts of fraud, Magashule has five counts of corruption to his name.
They relate to that he allegedly received and accepted R53 550, in his daughter’s registration application, which was made by Mpambani. The State considered this an abuse of authority, breach of trust and violation of a legal duty because it believes that Magashule had knowledge that the award of the asbestos contract was improper.
The State held the same view on Magashule by accepting the R470,000 paid to M-Tag Systems for 200 electronic tablets, the R200,000 and R100,000 paid respectively to Griffin Edge (Pty) Ltd, for 200 tablets, the R30,000 delivered to SWC Nkate and R250 000 to Astra Travel.
The cost of the trip was for a delegation heading to Cuba.
All of which was paid for by Mpambani.
All 50 counts of money laundering related to the movement of money between the defendant and his businesses in question.
The matter was postponed until August.
Due to the blocking protocols, Magashule was unable to address the thousands of supporters who gathered near the court.
However, in a subsequent press conference, Magashule said that he was looking forward to the road and insisted: “I have done nothing wrong …”
Sunday grandstand
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