The Free State asbestos audit scandal is a textbook case of ANC provincial corruption: a contract awarded to politically connected companies for work that is never performed, and the full amount paid out regardless.
In 2014, the Free State Department of Human Settlements awarded a R255 million contract to a joint venture between Blackhead Consulting (Edwin Sodi) and Diamond Hill Trading (the late Igo Mpambani). The contract was for removing dangerous asbestos roofing from 300,000 houses in townships across the Free State.
Investigations found the work was not done, the full R255 million was paid out, procurement was manipulated, and an estimated R27 million in bribes were paid — including R600,000 to Thabani Zulu, then DG of National Human Settlements. Igo Mpambani was assassinated in Sandton in June 2017.
Ace Magashule was arrested on 13 November 2020 and charged with fraud, corruption and money laundering. The trial has been repeatedly delayed — including because his former PA Moroadi Cholota's extradition from the US was ruled unlawful. It is now scheduled for January-June 2026 with Magashule and 17 co-accused.