Ace Magashule asbestos case: R250m contract ‘no small change’ – state

Former Free State premier Ace Magashule has a case to answer to in the R250 million corruption case as he was the executive authority in the province at the time, the state argued in the Bloemfontein High Court on Tuesday.

Magashule and the other co-accused are questioning the validity of the corruption and fraud charges levelled against them as detailed in the indictment. The former premier insists that the case is politically motivated and wants the charges to be dismissed.

On Monday, the court postponed his pre-trial hearing to June to allow the completion of the extradition from the US of his former PA Moroadi Cholota, who is also an accused in the case.

‘The buck stops with Magashule’

Advocate Naseer Cassim, SC for the state, told the court that while Magashule’s record as a member of the ANC and part of the anti-apartheid struggle was commendable, the case against him requires that he answers to the charges in court.

“The premier is the executive authority of the province, and his job is to implement all national legislation within the required functions.

“In other words, the buck stops with him… of course he can have a defence, but he has a case to answer. A contract of R250 million is no small change, and the true value after not following competitive process came to R20 million.”

Magashule was premier in 2014 when the provincial humans settlement department awarded the controversial asbestos contract worth R255 million to companies Diamond Hill and Blackhead Consulting. One of the accused, businessman Edwin Sodi, owned Blackhead Consulting.

It later emerged that only R21 million worth of work – which was outsourced to a company with actual experience in the field – was conducted.

Magashule has repeatedly denied receiving any kickbacks from the asbestos contract.

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Cassim questioned Magashule’s credibility as an ANC leader in the province.

“Surely he can explain to his constituency in this province, where we know the roads are untarred and children suffer as a result of sewage spills in the roads… if he can answer why he should not be held accountable, then he has a political future,” he said as Magashule sat in the gallery and smiled.

The suspended ANC secretary-general has claimed that the payments he received were for academic funding for Free State students studying overseas.

‘State’s conduct in the case’

Earlier, Advocate Laurence Hodes, for Magashule detailed an exchange between the state and US-based Cholota back in 2021, charging that his client was arrested before police could establish the case against him.

Cholota testified before the State Capture Commission of Inquiry in 2019. She told the commission that she sourced funding from businesspeople on behalf of Magashule’s office for students studying abroad.

According to Hodes, in October last year, Cholota attended a meeting with South African detectives in Washington DC, where Cholota “had no choice” but to help authorities.

“She is being extradited as the state put it before us, but there’s a question of conduct and procedure. In the transcript of the meeting Cholota says thank you after the meeting, and the detective says ‘we will see you tomorrow’.

“She had no choice in this… there is also an element of cooperation here. We don’t know whether that meeting took place… there is no compliance here.”

He argued that there was no prima facie case against his client.

Magashule also wants the state to disclose to him the list of all of its witnesses.

The hearing continues.

ALSO READ: More corruption charges could be on the cards for Magashule – report