Note to Editors: Please find attached English and Afrikaans soundbites by Leona Kleynhans MPL
The Department of Human Settlements in the Free State has 11 000 incomplete houses and 222 blocked projects in the province. Senior Managers have been suspended while claims amounting to R62,7 million have been instituted against the department. An accumulated R4,6 billion in irregular expenditure has not been investigated, and a further R527 million in irregular expenditure was recorded in the 2021-2022 year.
During a briefing by the department on its Audit Findings, in the Provincial Public Accounts Committee (PROPAC) on 8 November, a story of sordid events emerged. There was no record keeping, and no data base of contracts, while the service provider appointed to keep the documents lost them. The Supply Chain Unit supposed to appoint contractors did not exist. A supply chain committee has now been appointed and is undergoing training.
Former Acting HOD Adv Tsouaeli, explained that numerous litigations are underway, including against the previous HOD Tim Mokhesi, CFO and at least two Directors, who were suspended. The new HOD Ms Masitha, explained actions to turn around the state of the department and make sense of the complete chaos.
Random staff had been dumped in the department, and a skills audit is underway to establish which staff can be retained in relevant positions.
An incredible saga of overpayments, advance payments and illegal activity was laid out, including the fact that the corruption accused Blackhead Consulting is claiming the outstanding R20 million which had never been paid for the Asbestos contract. Despite this contract being currently in court, and having been the subject of a Public Protector report, and had featured in the Zondo Commission of enquiry, Blackhead is still demanding full payment. The department is opposing this claim.
The advance payments investigation is still underway by the SIU, in which R1 billion was dished out in material advances by former MEC Zwane. This matter also featured in the Zondo Commission. An investigation into fraud and corruption with a contract at Vogelfontein in Bethlehem is being investigated by the Hawks.
It is clear from this briefing that the department was used as a rogue laundromat, under HOD Mokhesi, and that the ANC political leadership at best turned a blind eye to this blatant corruption and maladministration taking place under their noses, or were, at worst, complicit in stealing from the residents.
The committee asked the MEC why, if the delivery of houses was the priority, the department continued to appoint contractors who were clearly not able to deliver. 232 contracts have been terminated due to non-performance by contractors.
If the people of the Free State want decent housing opportunities it is clear that the ANC is not capable of delivering. The DA, with its record of good governance and delivery, would certainly do a better job of delivering on that mandate.
The DA will monitor the outcome of cases which are currently in court and will submit questions to the Minister of Human Settlements in the NCOP regarding the national department’s investigation into the state of Human Settlements in the Free State.