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Vice President of the Supreme Court Raymond Zondo.
- Free State Human Settlements HOD Nthimotse Mokhesi signed a trust to own a residential property with Blackhead CEO Edwin Sodi after an unreliable asbestos contract between the company and his department.
- He said he saw nothing wrong at the time, but Supreme Court Vice President Raymond Zondo was not convinced by his arguments.
- Mokhesi’s lawyer, Dali Mpofu SC, objected to the questions that would incriminate his client.
The head of the Free State Department of Human Settlements, Nthimotse Mokhesi, signed a trust to purchase a residential property with a contractor from his department, while the department was still paying for a contract that was declared invalid by the Auditor General.
Mokhesi told the Judicial Commission for Investigating State Capture Allegations on Monday that at the time, he did not see anything ethically wrong with this.
Mokhesi was called back to the commission after he testified last month and admitted that they did not follow the correct processes when considering a proposal for an asbestos audit project.
A joint venture between Edwin Sodi’s engineering consultancy Blackhead Consulting and the late Ignatius “Igo” Mpambani’s Diamond Hill Trading 71 secured the R255 million contract in 2014.
Sodi had also appeared before the commission and admitted that his company did not have the required authorization.
On Monday, advocate for commission test leader Paul Pretorius SC investigated Mokhesi about a deal he signed with Blackhead.
Unable to obtain a full mortgage loan from banks due to a South African Tax Service ruling against him, Mokhesi first reached out to friends and family for help buying a home in Bloemfontein when he heard that Sodi was also involved in the real estate market, he told the commission.
He and Sodi agreed to enter into a trust to purchase the residential property and signed the agreement before the trust was established.
Mokhesi said that although it was not his “primary residence,” he stayed on the property and did not pay the rent.
Pretorius wanted to know why Sodi did not register the property in his name and renounce his rights to the property.
READ | Zondo worries that houses are not being built in the Free State despite millions being spent
Mokhesi’s lawyer, lawyer Dali Mpofu, objected, saying that Pretorius was now “establishing an element of crime.”
Supreme Court Vice President Raymond Zondo said it appeared that Sodi didn’t care much about his R650,000 stake in the property and asked if perhaps he was helping Mokhesi. Once again, Mpofu objected.
Pretorius noted that at the time, the department was still paying Blackhead, despite the Auditor General finding that the contract was invalid.
“As head of department, was it okay for you to sign this agreement?” Pretorius asked.
Once again, Mpofu objected. He said it was “quite unfair” to expect Mokhesi to answer if he was guilty.
Zondo said Mokhesi should respond from an ethical point of view, rather than a legal one.
“Well, this was a business transaction, Honorable Chairman,” Mokhesi replied. “The individual can say yes or no.”
After Zondo repeated the question, and a long pause and some stammering from Mokhesi, he added that the agreement was signed after the irregularities with the asbestos contract became known.
Zondo said he got the impression from his response that he agreed that it would be unethical.
“Maybe in hindsight. Maybe I shouldn’t have,” Mokhesi replied. Zondo asked if he didn’t see anything wrong at the time.
Mokhesi said yes, because it was a “business transaction” and because he disclosed his trust.
“That reason, Mr. Mokhesi, doesn’t sound convincing to me,” Zondo said.
“President, I appreciate where you come from,” Mokhesi replied. “He had no intention of hiding that transaction.”
Zondo said he had a hard time accepting Mokhesi’s reasons.
READ ALSO | State Capture Investigation: Spotlight Falls on Free State R1 Billion Housing Project
Pretorius said other evidence before the commission suggested the payments could be disguised.
Zondo drew a parallel between Mokhesi’s testimony and that of former ANC MP Vincent Smith, who testified that a loan from Angelo Agrizzi de Bosasa was paid into his business account. Smith declared his commercial interest to Parliament.
Recently, Public Protector Busisiwe Mkhwebane also discovered that the asbestos contract was irregular. Mpofu said Mokhesi does not discuss any of the Public Protector’s findings.
Earlier, former Free State Economic Development Mx Mxolisi Dukwana testified that government officials, including the province’s former prime minister, ANC Secretary General Ace Magashule, received bribes for helping facilitate the asbestos contract.
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