Mosebenzi Zwane grilled on R600m in illegal ‘advance’ payments for housing. #Zondo

Former MEC of housing for the Free State, Mosebenzi Zwane was back at the state capture commission giving testimony on a R1bn housing scandal which gripped the province in 2010 to 2011. At the time, the Free State housing department was allocated R1bn to spend on low-cost housing. However, a flawed tender process saw R600m awarded to suppliers who were on a list allegedly drawn up by Zwane and other officials. Within four months, the funds were paid to the contractors before any houses were built or foundations laid. The commission has also heard how the head of the department at the time, Nthimotse Mokhesi was coerced into accepting a scheme devised by Zwane to spend the housing money. Zwane is currently testifying at the commission on his role in the scandal – Bernice Maune. 

A document giving approval for the department of housing in the Free State to pay out R600m before any work was done, was signed off by Zwane, the Zondo commission has heard.

While Zwane has denied devising the scheme to illegally pay out the funds, he has agreed to giving authorisation. His actions flouted the Municipal Finance Management Act which state that payments should be made on completion of work and not before.

Zwane has previously testified that he was told by the exco, which was under ANC Secretary-General Ace Magashule’s leadership as premier, to approve a database with suppliers without taking the bid to tender.

Related articles on Zwane, Magashule and Free State corruption scandals:

• How Mosebenzi Zwane, Ace Magashule used Free State housing scheme to dish out R600m

• Zondo arrests: Hawks swoop on Edwin Sodi, graft-tainted Free State housing execs

• Ace Magashule: Details on his alleged corruption and tainted rise to ANC leadership

About 55,000 houses were set to be built by the department of housing in 2010, however only 50 were completed with others partially built. A further R200m had been spent on surveys, title deeds and basic services. The money had effectively disappeared and the project was redundant.

Zwane tells the commission that there was a list of contractors which were approved, he adds that there was also a dispute in the increase of the sizes of the houses.#StateCaptureInquiry

— State Capture Commission (@StateCaptureCom) October 12, 2020

Zwane says there was a dispute with the list that he sent to the Executive, he says and that's when there was a decision to formulate a new data base.#StateCaptureInquiry

— State Capture Commission (@StateCaptureCom) October 12, 2020

Watch Mosebenzi Zwane’s testimony at the state capture commission