SABC executive Hlaudi Motsoeneng and Sports Minister Fikile Mbalula’s wife Nozuko allegedly received millions from a “fraudulent” R1-billion housing project run by the Free State government. This is according to a report in the Sunday Times.
The report stated that the houses, which were intended for the poor, were never built.
Mineral Resources Minister Mosebenzi Zwane, who at the time of the deals was MEC for human settlements, reportedly sanctioned the payment of “hundreds of millions” to companies which had not done work for the government.
The new MEC Sisi Ntombela’s department is suing the 106 contractors, including Motsoeneng and Nozuko Mbalula – who were trustees of two involved trusts.
The legal action seeks to recover over R600 million for the upfront payment for 14,000 RDP houses.
According to legal documents, Zwane made the payments because allocated funds were not being spent and there was the threat of them being moved to other provinces.
“The province had spent only 10% of the R1.3 billion allocated by the National Treasury for RDP houses by October 2010,” stated the report.
Court papers show that Motsoeneng and Mbalula, as trustees of the Imbuma Trust and MM Development Trust, received millions between 2010 and 2011 to build 450 low-cost houses.
“An internal progress report showed not a single house was built,” stated the report.
The full report is in the Sunday Times of 15 January 2017.