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Businessman pleads not guilty to money laundering in R255m tender case

Businessman Edwin Sodi has pleaded not guilty to charges of money laundering, fraud, and corruption in connection with the controversial R255 million Free State asbestos removal tender.

Sodi, alongside former Free State Premier Ace Magashule, is accused of orchestrating a scheme that diverted public funds intended for the removal of hazardous asbestos from homes in the province's poorest communities.?

The case, which has drawn significant national attention, involves 18 accused individuals and five companies. The trial was scheduled to commence on April 15, 2025, at the Free State High Court in Bloemfontein and is expected to run until June 23, 2025.

The National Prosecuting Authority (NPA) has expressed confidence in the strength of its case and is prepared to proceed with the trial, regardless of the absence of certain accused individuals.

The R255 million contract was awarded in 2014 to a joint venture between Sodi’s Blackhead Consulting and Diamond Hill Trading, owned by the late businessman Igo Mpambani. The State alleges that the contract was irregularly awarded, with kickbacks provided to some of the accused. Instead of effectively removing asbestos from about 30 000 homes, only R21 million worth of work was reportedly completed, with the remainder of the funds allegedly misappropriated.

Magashule, who was the Free State Premier at the time, faces accusations of receiving various benefits, including school tuition for a Gupta associate's daughter, electronic tablets, and R250 000 for travel expenses to Cuba. These alleged gratifications were reportedly facilitated through payments made by Mpambani's company, following email requests from Magashule's former personal assistant, Moroadi Cholota.

Both Magashule and Sodi have previously attempted to have the charges against them dismissed. In May 2023, the Supreme Court of Appeals dismissed their applications, stating that they had "no reasonable prospects of success" and that there was no compelling reason to hear their appeals.

All eyes are on the Free State High Court as it prepares to hear one of the most significant corruption cases in South Africa's recent history. The outcome could have far-reaching implications for political accountability and the fight against corruption in the country.?

Source: www.iol.co.za

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Businessman pleads not guilty to money laundering in R255m tender case

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