Details: How Free State government backtracked on suing Hlaudi, Mbalula

Both were implicated in a housing scheme which failed to deliver houses to the poor after receiving upfront payment for the work.

SABC chief operating officer Hlaudi Motsoeneng. Picture: Michel Bega

Embattled SABC boss Hlaudi Motsoeneng and the wife of sports minister Fikile Mbalula, Nokuzola have been let off the hook by the Free State government despite being fingered as one of several contractors who were paid millions to build houses and did not deliver.

According to Sunday Times, a top official in the office of premier Ace Magashule said the government had opted to only pursue monies paid to material suppliers and not contractors.

R1 billion was spent by the Free State government in a period of five months to 106 companies, including those of Motsoeneng and Mbalula and this had formed part of an affidavit submitted by department head Nthimose Mokhesi filed in the Bloemfontein high court.

Mbalula and Motsoeneng, who are the trustees of Imbuma and MM Development Trusts, received R38 million to build 350 houses in Virginia and 100 in Bloemfontein. The houses are yet to be built, reportedly.

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However, the official said Mbalula and Motsoeneng would not be sued because they had not received payment upfront. This contradicts documents seen by Sunday Times which shows that one of the trusts owned by them were paid millions before building any houses.

A contractor mentioned in the court papers said the Free State government really had no intention of going after the 106 contractors it filed papers against in court. Instead, the aim was to prove to the Special Investigating Unit that action was supposedly being taken against those implicated in the fraudulent housing scheme.

“They are going after people that did deliver what they paid to do, so that it seems they are trying to recover the money. What about those suppliers and contractors who were paid in advance but are not listed as respondents. Why are they being protected?”

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