24

Ace shows his hand

In mid-February 2015 , Mpambani received an email from A.K.
Manyike on behalf of the Ori Group. The email included the ‘final
100 % report’ for the asbestos audit. The report itself indicates that the
audit commenced in November 2014.
Documents in the IgoFiles explain the Ori Group’s role in the saga. In
August 2014 , after it had become clear that the Blackhead–Diamond
Hill joint venture would be awarded the asbestos contract, Mpambani
and Sodi appointed Mastertrade to compile the audit report. According
to the breakdown of fees detailed in the dubious ‘Free State Asbestos’
Excel spreadsheet, Mastertrade was set to receive R 44 million from the
joint venture for their services.
At the end of October 2014 , Mastertrade’s boss, Sello ‘Sydney’
Radebe, subcontracted a company called Ori Group to perform the
audit. Mastertrade promised to pay them just over R 21 million. This
meant that of the R 255 million for the asbestos audit and assessment
that the FSHS had agreed to pay Blackhead–Diamond Hill, roughly 90
per cent, or just over R 230 million, was unadulterated profit. And who
knows how much profit the Ori Group made on the R 21 million. It
took just three months for them to complete a report that, at fifty-three
pages, cost taxpayers nearly R 5 million per page.
It gets worse. The audit report’s main finding was that just over 36
000 of the 300 000 houses assessed had asbestos roofs. The report
included a breakdown of where these houses were situated. I spoke to
a source from the auditor-general’s office with insight into the project.