Testimony by Mosebenzi Zwane on his role in the Free State housing scheme, which saw R630m paid to contractors before any work was done, has concluded for the year at the Zondo Commission of Inquiry.
Zwane submitted his testimony in response to claims levelled against him by the then head of department, Mpho Mokoena. Allegations are that Zwane was the mastermind behind the housing scheme which was meant to build houses for the poor.
While Zwane has denied devising the scheme to illegally pay out the funds, he agreed that he gave authorisation. He flouted the Municipal Finance Management Act, which states that payments should only be made on completion of work, and not before.
Zwane has previously testified that he was told by the executive committee, which was under ANC Secretary-General Ace Magashule’s leadership as premier, to approve a database of suppliers without taking the bid to tender.
Read also: How Mosebenzi Zwane rose from small time politician to alleged high flying corruptor
In 2010, the Department of Human Settlements under Tokyo Sexwale allocated R1bn to the Free State for housing. The national department then threatened to retract the funds as the Free State had not allocated them. Instead of using the funds for construction, Zwane insisted as Housing MEC that his department go on a spending frenzy and pre-pay R630m to contractors chosen by him.
According to Mokoena who testified at the Zondo Commission in September, Zwane threatened him and told him he would lose his job if he did not agree to sign off on the prepayments. However, Zwane denies this, saying he asked the Free State housing committee what they could do to help contractors buy housing supplies to fast track the project.
“I asked them a question and said, why can’t we help the contractors with building materials?”
“I’ve gone through both statements and I agree that the two men (housing officials) agree, but the version of Nthimotse is the version I agree with. There were discussions and afterwards a decision was taken that research must be done,” said Zwane.
Judge Ray Zondo then questioned the intention behind the question, as it might have been taken as a statement. To this, Zwane replied that his understanding was that a proposal will be accepted or rejected.
Zondo then said that a rhetorical question is usually understood as a statement.
When asked to comment on the issue that Mokoena was concerned about breaking the law as the Public Finance Management Act doesn’t allow for prepayments, Zwane said he doesn’t recall. He also said that he never threatened Mokoena and had never met him personally. He said Mokoena should have reported the matter through official channels. Zwane also denied telling Mokoena he would be poor if he didn’t agree with the scheme, or having a meeting with Mokoena to force him to sign off on the housing plan.
Zwane has indicated to the Zondo Commission that there was a prepayment plan already in place before he joined the Department of Housing in the Free State. His statement was dismissed by Zondo, however, as the Commission’s investigators could not find any evidence of such a plan before 2010.
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Watch Mosebenzi Zwane’s testimony at the 4:20:00 mark at the Zondo Commission below.
