Net closes in on Magashule, Zwane as NPA prepares fresh graft charges
R500 million housing scandal linked to the two ANC leaders
S u s p e n d e d A N C secretary-general Ace Magashule and NEC member Mosebenzi Zwane are set to be slapped with fresh charges for their alleged role in another housing scandal that unfolded in Free State a decade ago.
Sunday World can today reveal that the National Prosecuting Authority (NPA) has cut a deal with former head of department of human settlement Mpho Mokoena to become a state witness in the corruption
case, which saw R500million splurged on houses that were never built.
On Friday, the Bloemfontein Magistrate Court sentenced Mokoena to 10 years imprisonment for corruption and five years for contravention the Public Finance Management Act related to the housing saga, which happened in the 2010/11 financial year.
In a dramatic turn of events, Mokoena’s sentence was “wholly suspended” after he pleaded guilty in terms of Section 105 of the Criminal Procedure Act, effectively allowing him to walk free.
Sunday World understands Mokoena will present the same evidence he offered at the Zondo Commission, during which he claimed that he had been under political pressure from Magashule and Zwane to blow the money on the failed project.
“If you look at the statement [issued by the NPA on Friday] there is where we are stating that he is sentenced in terms of Section 205. If these people get to know that this person has come forward, and chances are that he is going to implicate a lot of people … we are trying to avoid a situation in which we are going to put his life at risk,” an NPA source said, speaking on condition of anonymity.
Mokoena told Zondo when he testified in September last year, that the housing department had a budget allocation of R1.4-billion for the building of 14 000 RDP houses in 2010. However, by October 2010 only 10% of the budget had been spent and no houses were built.
This saw the department hauled over the coals by the national department of human settlements, headed then by ANC veteran Tokyo Sexwale.
The Free State delegation met with Sexwale and it was warned that the national government would take back the R1-billion allocation for low-cost houses due to underspending. Mokoena said that was when Zwane proposed a solution to belatedly approve a housing project before the financial year ended, and paid contractors in advance.
In another startling testimony, Mokoena alleged that Zwane presented a list of contractors who were to be awarded work.
“My position is that he [Zwane] knew it was illegal ... Because the first time when he mentioned it, I responded and I told him that it was illegal. So, he tried ways to ensure that he convinces me about the legality of the scheme,” Mokoena told the commission.
More than R500-million was paid to suppliers and contractors in three months between 2010 and 2011. This was despite work not being delivered.
The commission’s evidence leader Paul Pistorius asked Mokoena about one of the contractors, Rochelle Els, and if Els had any relationship with Zwane or Magashule.
“Correct, chair. He [Zwane] told me that we must ensure that this contractor gets a contract to build houses in Kroonstad because that is the instruction from the premier, and when the projects had started running ... he would come and tell me that we must expedite the claims because the premier wants those claims to be expedited,” Mokoena said.
Zwane, for his part, said the decision to award contracts outside the open tender process was taken by the then provincial executive council, led by premier Magashule. He also denied that he knew the scheme was illegal.
Magashule did not testify at the Zondo commission.
A source close to both Zwane and Magashule said the former premier was not involved in the housing matter. However, he said they expected the NPA to put together charges related to oversight as was the case with the R255-million asbestos matter.
“Mokoena went to Zondo and said he was forced by Zwane. He said the premier should have known. Honestly, this was Zwane [implicated in the case]. Ace wasn’t involved. If they are going to charge him, it will be like the asbestos matter,” he said.
The source said new charges against Magashule would be linked to efforts to block his return to the ANC’S headquarters, Luthuli House.
“This is about conference [ANC elective conference next year December]. Our information is that there will be arrests in January in the runup to the conference,” the source said.
Free State NPA spokesperson Pheladi Shuping would not be drawn on whether Mokoena had turned state witness. “It is definitely not the end of the case because it is still under consideration,” he said.
Zwane and Magashule could not be reached for comment.
This new development comes in the wake of Magashule launching a new court application last week to have his case related to the asbestos matter dropped.
He claims that the state lied about his former personal assistant Moroadi Cholota being a state witness.
Magashule said he was not aware of the “speculated charges”.
“I smell a rat that there are attempts to fabricate charges against me abusing state organs of our government for narrow political purposes,” he said.
“I am reliably informed that they can’t finger me in any wrongdoing but never the less the instruction is out to get me by hook or crook.” Zwane could not be reached for comment.
This is about the ANC’S elective conference next year