Utter Purchase Inquiry: Highlight falls on Free Utter R1 billion housing project

Deputy Chief Justice Raymond Zondo

Deputy Chief Justice Raymond Zondo

  • The impart salvage inquiry has shifted its focal point to a R1 billion housing project in the Free Utter.  
  • Nthimotse Mokhesi, head of the division of human settlements in the Free Utter gave evidence ahead of the cost on Monday.  
  • The price heard the division did no longer observe upright procurement processes.  

The Utter Purchase Inquiry has heard how a R1 billion housing project in the Free Utter province used to be “fully irregular”.  

The province spent millions of rands on housing between 2010 and 2011 to minute or no cost.  

On Monday, Free Utter human settlements head Nthimotse Mokhesi, gave evidence ahead of the cost.

Mokhesi came onto the scene later and introduced an software on behalf of the division for its resolution to be reviewed in terms of a prepayments map to suppliers. 

In 2013, the Free Utter division of human settlement introduced an software ahead of the Excessive Court in Bloemfontein to envision and place of residing aside 106 building contracts.  

In court paperwork, Mokhesi had beforehand said his division made funds to contractors and suppliers without any written settlement or proof that properties had been built or partly built. 

On Monday, Mokhesi told the impart salvage inquiry that he believed his division’s prepayment map used to be fraudulent.

But he also added that: “In all likelihood I must also be very cautious because no longer every thing that appears take care of fraud is fraud.”

He said the sole real motive of his affidavit, which he submitted to the court used to be to aim to persuade the court to present them a beneficial judgment in pronounce to get better the money.

READ | Free Utter spent R631m on properties that had been never built

Mokhesi said his division had made an come price of over R500 million ahead of the relaxation used to be performed. 

And the final loss for the division used to be estimated in the placement of over R400 million.

The price also heard that contracts had been unlawful because the division did no longer observe any upright procurement processes.  

The total allocation for the housing project in the Free Utter for 2010 – 2011 used to be R1.42 billion and the thought used to be to intention over 21 000 low-cost housing objects, but that used to be no longer carried out. 

Evidence leader advocate Paul Pretorius said: “Your total housing intention in the province… From the very foundation, from the appointment to the contractors, horny thru to the prepayment to suppliers on the discontinue of the monetary three hundred and sixty five days used to be fully irregular. With the discontinue consequence that the housing map in the division used to be to position it on the lowest to total failure.”

Earlier, advocate Pretorius laid the root for this week’s evidence on the case. 

In his opening deal with Pretorius told price chairperson deputy chief justice Raymond Zondo, there had been a form of studies and investigations into the housing matter, adding the cost’s appropriate crew did no longer take to rehash the total investigation. 

“What we would take care of to end is focal point on the reveal of accountability and why certain people weren’t held accountable,” Pretorius said.

Pretorius also said there would be evidence about a map that used to be devised which turned out to be fraudulent. 

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“What’s determined from the commence is that neither contractors nor suppliers of supplies to contractors had been discipline to any competitive bidding course of which as we’ve dealt with in the asbestos matter, it’s clearly unlawful and inexcusable,” Pretorius said.

After Pretorius’ opening assertion, Mokhesi took the stand and told the cost that he did no longer know who chosen the contracts for the housing project. 

But Pretorius told Zondo that a disqualified contractor used to be “indeed appointed” and primarily based on a affirm, the contractor “carried out miserably”.

Pretorius also told the cost that every contract and intention must be investigated.

He said there were some allegations of links between illegitimately appointed contractors and officials. 

“And naturally, whilst all of that used to be going down a form of moderately junior workers rep disciplined and pushed aside and these that must be held accountable are not,” Pretorius said. 

He gave the cost some background to the reveal, asserting throughout the 2010 and 2011 monetary three hundred and sixty five days, a fresh at ease course of commenced. 

He also said the evidence will sigh that by the purpose the repeat adjudication committee came to salvage into legend the bids, the length of validity of the at ease had expired.  And as one more of extending the validity of the length of the at ease it used to be abandoned. 

Pretorius also said these that certified by intention of the bids and these that had been disqualified, along with these that had been declared incompetent to intention, had been all placed on the database and certain officials, along with then MEC Mosebenzi Zwane merely chosen who they desired to end the work. 

The listening to will proceed on Tuesday. 

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