The Limpopo Human Settlements Department has awarded contracts worth R900 million to companies with invalid tax-clearance certificates.
This is according to a forensic investigation commissioned by the provincial Treasury Department into multimillion-rand low-cost housing projects.
Some of the beneficiaries in the controversial procurement were business associates of former premier Cassel Mathale and expelled ANC Youth League leader Julius Malema.
At the time, former human settlements MEC Clifford Motsepe denied any wrongdoing. But in April, the provincial treasury instructed that the contracts must be cancelled.
The Star has not seen a full report by the Joburg-based law firm Edward Nathan Sonnenbergs, which was commissioned to investigate the matter.
Former treasury MEC David Masondo instructed Motsepe to cancel the contracts, saying the procurement process was “seriously flawed”.
He suggested that Human Settlements officials who processed the procurement were incompetent and ordered that an investigation be launched against department head.
The Public Protector and the Public Service Commission are also investigating the matter.
Premier Mathale, who was recently told to resign, claims to have done nothing unlawful. – The Star