Staff Reporter
All seven suspects in the R255 million Free State asbestos corruption case are now in police custody after the last wanted person handed himself in at a police station in KwaZulu-Natal.
Free State Hawks spokesperson Warrant Officer Lynda Steyn told The Free Stater by telephone that the suspect will be processed together with his co-accused before making an initial appearance in the Bloemfontein Magistrates Court on Friday morning.
“We now have all the suspects in custody after the seventh one handed himself over in KZN,” said Steyn.
“The suspect did not cooperate like the others at first, but we now have everyone,” she added without divulging any names since the suspects are yet to be formally charged in a court of law.
The Hawks arrested the other suspects on Wednesday in Gauteng and the Free State following a joint investigation by the Free State Serious Corruption Investigation, Special Investigating Unit and the National Prosecuting Authority.
The Free State asbestos project dates back to 2014.
In a statement, the Hawks said the accused face over 60 charges which include corruption, fraud and money laundering in contravention of the Prevention and Combating of Corrupt Activities Act as well as contravention of the Public Finance Management Act.
“The allegations relate to a contract that was awarded through a procurement process that was done in a fraudulent and corrupt manner.
“In addition, certain public officials received gratification from the contracted company and/or an individual amounting to several counts of corruption.
“The contract was meant to identify and remove asbestos roofs in the Free State province and failed to conduct a due diligence process before participating in the contract,” read part of the statement.
It is alleged that the Free State human settlements department created an impression that it participated in a contract concluded by its sister department in Gauteng yet the services were not the same as specified in the existing contract.
The price for the contract was also higher in contravention of treasury regulations.
As a result, the department incurred unauthorised, irregular or fruitless and wasteful expenditure worth over R255 million.
Unconfirmed reports say ousted Mangaung Metro executive mayor Olly Mlamleli is believed to be among the high-profile individuals that have been rounded up by the Hawks.
Mlamleli is a former MEC for Cooperative Governance and Traditional Affairs which at that time included human settlements.
Also believed to be behind bars is the former Free State human settlements head of department, Nthimotse Mokhesi, and Gauteng businessman Edwin Sodi.
At least five companies are also expected to be charged in the matter.
Sodi’s company, Blackhead Consulting, was awarded the asbestos audit contract as a joint venture with Diamond Hill Trading in 2014.
Diamond Hill Trading owner Ignatius “Igo” Mpambani was killed in an alleged hit not long ago.
Sodi appeared at the Zondo Commission on State Capture on Tuesday where it emerged he paid R600 000 to a car dealership as a deposit for a Range Rover bought by Zulu.
It’s believed Zulu’s former department was instrumental in ensuring approval for the transfer of an earlier asbestos audit contract from the Gauteng human settlements department to the Free State.
The commission also heard that Sodi made a secret contribution of R650 000 towards a property bought by Mokhesi in Bloemfontein.
The Public Protector confirmed in her report that there was gross financial wastage in the way the asbestos deal was structured and implemented.