R255 million asbestos corruption scandal is still felt today

More than a decade has passed since the controversial R255 million Free State asbestos tender was awarded; yet 99.2% of the intended beneficiaries still live under hazardous asbestos roofs.

In a recent Parliamentary response, Human Settlements Minister Thembi Simelane revealed that, 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.

Wayne Duvenage, Chief Executive Officer of the Organisation Undoing Tax Abuse (OUTA), has expressed his frustration with the slow pace of justice and delivering what was promised years ago.

“It was a need that was identified as being significant enough to address many years ago and should have been completed by now,” said Duvenage.

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

The R255 million asbestos tender scandal

The lack of progress are the remnants of the R255 million Free State asbestos tender case; one of South Africa’s most high-profile corruption scandals in recent years.

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

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

What’s next for the 33,567 asbestos-ridden households?

In the May 2025 Parliamentary response, Simelane outlined the government’s plan to accelerate the removal of the remaining 99.2% of asbestos roofs in the province

The Housing Development Agency (HDA) established an implementation cost of R93,414.42 per unit, leading the Free State Department of Human Settlements to delegate future asbestos eradication efforts to the HDA.

Using the HDA’s cost model, the projected total cost to remove all 33,567 asbestos roofs in the province stands at approximately R3.13 billion.

This is on top of another R30 million budget set aside in April 2022 “to remove asbestos roofs in this province [which would] start as a phased programme to take three years [ending 2025].”

Duvenage said that the involved “departments need to be extremely transparent about the procurement processes and share the costs with civil society.”

This is along with stringent Treasury oversight on this project, and all large infrastructure projects.

For the 2025/26 financial year, R20 million has been allocated under the Human Settlements Development Grant to continue asbestos roof removal through the HDA.

The R20 million funding is expected to cover the removal of about 180 asbestos roofs, depending on procurement and site readiness.

Acknowledging the urgent health risks, Simelane said the department is seeking additional funding through National Treasury reprioritisation, development finance institutions, and public-private partnerships.

She said that slow progress over the past 11 years is unacceptable given the severe public health threat.

The Free State Department of Human Settlements has developed mitigation plans aligned with the 2020 Asbestos Abatement Regulations.

Simelane said that this includes hiring certified contractors, conducting community risk communication, ensuring safe disposal, planning temporary relocations, and raising public awareness.

The programme also aims to monitor high-risk communities, integrate asbestos surveillance into routine care, and establish referral pathways for suspected cases, in collaboration with local health departments, said Simelane.