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Vice President of the Supreme Court Raymond Zondo.
- Raymond Zondo says it is disturbing that no one has been charged in connection with the “fraudulent” 1 billion rand Free State housing scheme.
- The department spent more than R500 million before any work could be done.
- Zondo also said taxpayers do not yet know if urgent attention is being paid to the case.
The chairman of the state’s capture investigation, Supreme Court Vice President Raymond Zondo, has expressed concern that after nearly 10 years, no one has been charged or arrested in connection with the “irregular” Free State housing scheme. and “fraudulent” of 1 billion rand.
Zondo expressed his concern during testimony from the head of the province’s human settlements department, Nthimotse Mokhesi.
The Free State Province was destined to build thousands of inexpensive homes in 2010 and 2011, but many of the homes were never built.
When the province spent little money allocated to it, the national department threatened to transfer part of the housing budget to “better performing provinces.”
However, a plan was quickly devised to spend the money, prompting more than 100 contractors to get paid upfront before anything could be done.
The state’s capture investigation has heard that the province spent more than R500 million before any work was done.
READ | Free State spent R631m on houses that were never built
It was also revealed that the housing department made payments to contractors and suppliers without any written agreement or proof that houses had been built.
There was no procurement process with respect to the contractors and the parties that supplied materials.
The department lost more than 400 million rand.
The whole plan was “completely irregular,” Zondo was told.
Zondo said it was concerning that no one had been charged or arrested.
“It is concerning because part of the complaints related to the state capture allegations is that some of the law enforcement agencies were paralyzed or did not do their job on certain issues.
“Of course, it may be that, in this case, they have done their job in the best possible way, with whatever resources they have.” It is concerning when taxpayers have lost as much money as we are talking about here.
“They lost it in 2010 and 2011 at the end of the financial year … that’s March 2011 and that’s about 10 years and no arrest, no one charged, and yet taxpayers, in their estimate at least, lost around R500 million if, more and 10 years later, there is nothing that the public knows, that the department knows, that gives confidence that something is being done [and] that the matter is receiving the urgent attention it deserves. ”
The hearing continues.
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