Gangster State

process. The FSHS later told me that Unital had been appointed as a
‘subcontractor’ to VNA Consulting, the department’s ‘implementing
agent’ for select housing projects. When I pointed out that Unital had a
contract with the FSHS itself, according to the department’s own
records, I heard nothing further.
The apparent lack of a proper procurement process was not the only
problem. Unital was awarded the large contract just six months after it
was established. Neither Li nor Thoko had any apparent experience as
a construction contractor and they seemed woefully unprepared for a
project of this scope. Being a new company, Unital had a Construction
Industry Development Board grading of 1 , the lowest possible score.
Although CIDB gradings do not apply to government tenders for
housing projects, these scores serve as a good indication of a
company’s capabilities and experience.
By October 2014 , it was apparent that Unital was not up to the task.
The Eastern Free State Express reported that Unital’s subcontractors
had downed tools because Li had not been paying them.^3 The
involvement of Magashule’s daughter, however, remained under wraps.
Despite the problems on site, the FSHS continued to lavish contracts
on Unital. In August 2015 , the company clinched a R 78 -million
contract to build a further 500 houses at Vogelfontein. In April 2017 , it
received R 9 million to build 50 more. In total, Unital was awarded
contracts worth R 150 million to deliver 1 050 RDP houses at
Vogelfontein, all without having to submit a single tender. But getting
the contract is the easy part. Completing the project is an entirely
different matter. Given Unital’s inexperience, it should come as no
surprise that the Vogelfontein development counts among the
province’s many unfinished RDP projects.