R255 million taxpayer-funded corruption scandal in South Africa back in the docks

The Free State High Court is due to hear the R255-million asbestos corruption case on Monday, 26 January 2026, after a lengthy postponement.

Ex–Free State premier and ANC secretary-general Ace Magashule and his co-accused will be in the docks following years of delays and postponements.

This follows a recent Constitutional Court ruling that clarified the limits of the National Prosecuting Authority’s extradition powers without halting the prosecution.

In a unanimous judgment delivered on 23 January 2026, Deputy Chief Justice Dunstan Mlambo ruled that the NPA does not have the authority to request the extradition of suspects from foreign countries.

This confirmed that the extradition of Moroadi Cholota, former personal assistant to Magashule, from the United States was unlawful.

However, the court overturned an earlier Free State High Court decision that had stopped Cholota’s prosecution, finding that the unlawful extradition does not automatically invalidate the criminal case or shield the accused from trial.

Cholota was extradited in August 2024 to face charges including fraud, corruption, theft and racketeering linked to the asbestos scandal.

She has since said the trial presents an opportunity for the truth to emerge, while accusing the state of humiliating her during the extradition process.

The R255 million taxpayer-funded scandal

In 2014, the Free State Department of Human Settlements irregularly awarded a R255 million asbestos removal contract to a joint venture (JV) between Blackhead Consulting, owned by controversial Edwin Sodi, and Diamond Hill Trading 71, owned by the late Ignatius Mpambani.

The tender, aimed at removing asbestos roofs from around 36,000 low-cost homes, was awarded without competitive bidding by piggybacking on a flawed Gauteng contract, violating procurement rules.

Only around R21 million worth of work, an initial assessment, was completed through a subcontractor. No significant asbestos removal occurred, leaving health risks unaddressed.

The Zondo Commission revealed Mpambani pitched an unsolicited proposal to then-Premier Ace Magashule’s office, with Sodi crediting Mpambani for securing the deal.

Mpambani was killed in 2017 in a suspected hit in Sandton.

Former MEC Mxolisi Dukwana testified at the Zondo Commission that Magashule orchestrated irregularities and benefited from gratifications, allegations Magashule denies as a “political witch-hunt.”

The state alleges R27 million in bribes, including a Range Rover, a house for officials, and benefits linked to Magashule via his former PA, Moroadi Cholota.

In April 2025, the Free State High Court heard that Magashule allegedly received R10 million shortly after Sodi’s company was paid.

Magashule, Sodi, 16 others, and five companies face over 70 charges, including fraud, corruption, and money laundering. All have pleaded not guilty.

The trial was postponed to January 26, 2026, due to an appeal over a ruling that deemed Cholota’s US extradition unlawful.

Wayne Duvenage, Chief Executive Officer of the Organisation Undoing Tax Abuse (OUTA), previously expressed his frustration with the slow pace of justice.

Duvenage said that OUTA is “appalled by the slow pace of justice in the Free State Housing Asbestos Roof Replacement matter.”

“Aside from the bungled Choloto extradition issue, there is significant evidence to have taken this case a long way down the road, to prosecute many of the accused involved.”

“In addition to the slow pace of justice, the slow pace of the Provincial Government in addressing the issue of replacing the asbestos roofing is another serious issue.”

He said that this is “indicative of a government that is out of touch with the safety and essential needs of its citizens.”

Duvenage further suggested civil or even class action lawsuits to compel authorities to act, especially where illnesses or deaths are linked to asbestos exposure in homes.

The impact is felt today

According to a 2025 Parliamentary response by Human Settlements Minister Thembi Simelane, 99.2% of the intended beneficiaries still live under hazardous asbestos roofs.

According to a 2023/24 evaluation, 33,567 housing units in the province still required asbestos roof removal.

Of these, only 271 units were addressed as part of a proof-of-concept project aimed at identifying the most cost-effective and compliant method of removal.

This leaves a staggering 33,296 units still needing intervention, despite a three-year eradication timeline set in 2022.

According to approved cost models, another R3.13 billion is needed to realise the promises made over a decade ago.

Research indicates that living near damaged asbestos, common in roofing, poses severe health risks due to airborne fibres, leading to conditions like lung cancer.

Simelane said government aims to fast-track the removal of the remaining 99.2% of asbestos roofs in the Free State, with the Housing Development Agency leading implementation at an estimated total cost of R3.13 billion.

While R20 million has been allocated for 2025/26, enough for about 180 roofs, additional funding is being sought.

She acknowledged that progress over 11 years has been unacceptably slow, stressing strict Treasury oversight, transparent procurement, and health-risk mitigation aligned with asbestos regulations.