R255M ASBESTOS CORRUPTION MATTER POSTPONED TO FEBRUARY 2021

The R255m asbestos corruption matter involving seven accused was postponed to 19 February 2021 for further investigation and the possible addition of about three more accused persons on the charge sheet.

The bail of the accused, ranging between R500 000 and R50 000, was extended by the Bloemfontein Magistrates Court. There's an expected first time appearance and addition to the charge sheet on Friday 13 November 2020 at the same court with regards to the same matters.

The seven were arrested by members of the Directorate for Priority Crime Investigation (DPCI), the Hawks, during a synchronised operation in the Free State, Kwazulu -Natal, and Gauteng just more than a month ago. They are charged with corruption, fraud, theft, attempted theft, money laundering, contravention of PFMA as well as the contravention of various Asbestos Regulations, promulgated in terms of the Occupational Health and Safety Act 85 of 1993.

The seven appeared along five companies - Blackhead Consulting, Diamond Hill Trading 71 (Pty) Ltd, 605 Consulting Solutions (Pty) Ltd, Mastertrade 232 (Pty) Ltd, and Ori Group (Pty) Ltd. The investigation was initiated by the Special Investigating Unit (SIU), which referred the matter to the NPA. In turn, the NPA transferred the matter to the Hawks. The criminal investigation is a collaboration between the Free State members of the Hawks, the Free State Office of the DPP and other NPA units like the SCCU and the AFU.

The State alleges that fraud to the value of R255 million was committed in the appointment of two companies, one from Gauteng, Blackhead Consultants, in 2014 as service provider to the Department of Human Settlements in the Free State for the "assessment and removal of asbestos roofs and/or housing".

The two companies sub-contracted two other separate companies of which one allegedly did the work for only R21 million. R230 million was paid to the initial contracting company and Edwin Sodi, the director of the company, Blackhead Consultants, who is still attempting to secure in court the "remaining" payment of the rest of the money, which is R25 million.

Issued by Sipho Ngwema, National Spokesperson of the NPA, 11 November 2020