One province spent R107 million and only has a derelict building to show for it

Around 15 years ago, the Free State government envisioned transforming the historic Old Ramkraal Prison site into a prestigious provincial legislative complex and museum.

The province spent over R100 million on the project. However, despite this tremendous investment, the site now resembles little more than a derelict scrapyard.

The Ramkraal Prison, also known as the Old Prison, was built in Bloemfontein between 1893 and 1895 in response to a growing crime rate associated with the introduction of the railway line.

The prison was officially registered as a national monument on 13 July 1990 and used for other purposes. However, the heritage site was neglected and illegally occupied in the early 2010s.

In 2012, the Free State provincial government under former Premier Ace Magashule proposed building a new legislature on the Ramkraal site.

The project included converting the prison into a museum, given that the legislature was too small for modern purposes.

R131.2 million was allocated to the Department of Public Works (DPW) over the Medium Term Expenditure Framework (MTEF).

This amount was later reduced to R119.2 million during the 2012 to 2013 financial year to make this project a reality.

The estimated cost of the Ramkraal project, as per the unsigned feasibility report dated 3 August 2012, was R645 million, which was not affordable to DPW.

However, the project was halted due to significant irregularities and non–compliance issues.

The Free State Legislature entered into a multimillion-rand long-term lease agreement for office accommodation in 2016.

Auditor General investigates

The lack of progress raised eyebrows, and in 2013, the DA in the Free State requested the former Speaker of Legislature, Ouma Tsopo, to investigate.

After initially being blocked, an ad hoc committee was appointed, which recommended that the issue be referred to law enforcement agencies for further investigation.

Then, on 12 February 2018, the former Free State Member of Executive Council (MEC) for Finance requested that the Auditor-General of South Africa (AGSA) conduct a special audit of the project’s procurement processes and financial transactions.

This was at the same time that, in 2018, the DA included the Ramkraal project in a submission to the Zondo Commission.

Published in 2022, the Auditor-General of South Africa’s audit revealed significant irregularities and non-compliance issues.

The audit showed that R106.7 million was spent on the project from 2010/2011 to 2013/2014 with nothing to show for it.

A significant portion of this, R99 million, is considered irregular expenditure, with vast amounts of money going to feasibility studies, contractors, and more.

The estimated cost of the Ramkraal project, which was the basis for payments to consultants, increased significantly (49%) without evidence of approval from the DPW.

Transaction advisory services accounted for R17.1 million of the irregular expenditure, while another consultant was overpaid by R506,817.

The contractor for phase 1 was paid R7.2 million, R729,794 over the contract price, to demolish some structures and erect security fences, of which there are no signs.

The Auditor-General report found that the entire project lacked proper authorisation, as evidenced by the absence of legislature approval.

The project was also not evaluated before commencement, and funds were spent without an approved funding model.

SIU gets involved

In February 2024, the Special Investigating Unit (SIU) was authorised to investigate “allegations of serious maladministration, fraud and corruption” in the multimillion-rand project.

The SIU will investigate the affairs of the Free State Department of Public Works & Infrastructure and Human Settlements and the Provincial Legislature. 

“The SIU will also investigate payments made in a manner that was not fair, competitive, transparent, equitable or cost-effective; or contrary to applicable legislation, and any related unauthorised, irregular, or fruitless and wasteful expenditure incurred,” it said.

“In addition to investigating maladministration, malpractice, corruption and fraud, the SIU will identify system failures and make systematic recommendations to improve measures to prevent future losses.”

Kganyago says the investigation aims to determine whether state funds were unlawfully and negligently used and will refer any evidence of criminal conduct to the National Prosecuting Authority (NPA).

BusinessTech visit

BusinessTech visited the site, which resembles a half-demolished ghost town. Many walls have crumbled, the roof has collapsed, and vegetation is overgrown.

Squatters have reclaimed old holding cells, and fires have scorched their walls. The interiors have been stripped of all valuable materials.

Despite millions allocated for security measures, such as security fencing, it has either been stolen or was not installed.

The historic Old Ramkraal Prison

What the Old Ramkraal Prison looks like today after R107 million was spent on the site