As controversial businessman Edwin Sodi celebrated his 50th birthday in a lavish party on Sunday, his legal woes were mounting.
The City of Tshwane said yesterday it will meet with its lawyers this week as it forges ahead with the blacklisting of his companies in relation to the failed R292m Rooiwal waste water treatment plant tender.
The Special InvestigatingUnit (SIU) also said President Cyril Ramaphosa had authorised it to probe allegations of maladministration and corruption in the affairs of the city relating to the tender. It was awarded to a joint venture between Sodi’s two companies NJR Projects and Blackhead Consulting as well as their partner CMS Water Engineering.
The ANC benefactor hosted the opulent event, which saw guests, including the party’s Gauteng provincial secretary TK Nciza, Kaizer Chiefs boss Bobby Motaung, Joburg mayor Kabelo Gwamanda’s spokesperson Mlimandlela Ndamase and others dine under the stars in the garden.
Sodi has had a string of lucrative government contracts for years across the country, which were terminated for poor performance, despite pocketing millions of rand. It was unclear if the event was held at his home in Bryanston, Johannesburg, which also featured a saxophonist and fireworks.
Tshwane mayor Cilliers Brink welcomed the SIU investigation, saying the city’s own forensic investigation had found the tender to have been irregularly awarded.
“The SIU investigation will help to hold individuals responsible for tender irregularities to account and potentially recover some money.“
The city has taken steps to blacklist those companies that have been involved with the tender, ” Brink said.
In June, Brink said the joint venture had been served with a notice to blacklist them. They did only 60% of the work. The contract was ended due to poor performance. The failed Rooiwal project has possible links to the cholera outbreak in Hammanskraal, which claimed the lives of 31 people.
“There was a meeting on Friday of the task team to finalise the city’s position. We are meeting with our attorneys this week to draft a response to the company,” said city spokesperson Selby Bokaba yesterday.
Responding to the move to blacklist his companies, Sodi, through his lawyers, blamed his deceased business partner Rudolf Schoeman, who was director of CMS. In a letter to the city, Sodi accused Schoeman of fraudulent conduct, adding that NJR had opened a criminal case against him. Police have opened an inquest into Schoeman’s death.
He was found dead by his employee at his Bryanston house in March. SIU spokesperson Kaizer Kganyago said they would look into any unauthorised, irregular or fruitless and wasteful expenditure incurred by the municipality or the state.
“The scope of the investigation also covers any unlawful or improper conduct by officials or employees of the Tshwane metropolitan municipality, the applicable suppliers or service providers or any other person or entity.
“The proclamation covers allegations of unlawful and improper conduct that took place between January 1 2018 and September 22 2023, the date of the publication of the proclamation or before January 1 2018 and after the date of the proclamation that are relevant to, connected with, incidental to the matters or involves the same persons, entities or contracts investigated,” Kganyago said.
He said “in addition to investigating maladministration, malpractice, corruption and fraud, the SIU will identify system failures and make systematic recommendations to improve measures to prevent future losses”.
“In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU will refer any evidence pointing to criminal conduct it uncovers during its investigations to the National Prosecuting Authority for further action.
“The SIU is empowered by the SIU Act to institute civilaction in the high court or a special tribunal in its name to correct any wrongdoing uncovered during its investigation caused by acts of corruption, fraud or maladministration,” Kganyago said.
Rooiwal is not the only failed project linked to Sodi. In Gauteng, his company Blackhead Consulting was in 2018 appointed as a consultant and overall manager for the project at Barcelona primary in Etwatwa, on the East Rand.
According to a 2020 response in the provincial legislature, the contract given to Sodi in July 2018 was R10.8m. Sodi was paid R1.8m by 2020. Sodi’s company NJR Projects failed to pay contractors and employees, some of whom were earning as little as R220 a day, leaving them in distress and debt, in the R282m tender to extend a prison in Parys, Free State.
Contractors said they had to lay off workers due to non-payment. In June, Sowetan revealed that Sodi’s company had been paid about R130m at the time its contract was terminated in February. Sodi and former ANC secretary-general Ace Magashule are currently facing charges of fraud, corruption, money laundering after his company was awarded a R255m asbestos tender in Free State. The project was meant to remove harmful asbestos from residential homes.■ sibiyan@sowetan .co.za
sibiyan@sowetan.co.za
Noose tightens around tender baron Sodi
President authorises SIU's probe into Rooiwal project contract
Image: supplied
As controversial businessman Edwin Sodi celebrated his 50th birthday in a lavish party on Sunday, his legal woes were mounting.
The City of Tshwane said yesterday it will meet with its lawyers this week as it forges ahead with the blacklisting of his companies in relation to the failed R292m Rooiwal waste water treatment plant tender.
The Special InvestigatingUnit (SIU) also said President Cyril Ramaphosa had authorised it to probe allegations of maladministration and corruption in the affairs of the city relating to the tender. It was awarded to a joint venture between Sodi’s two companies NJR Projects and Blackhead Consulting as well as their partner CMS Water Engineering.
The ANC benefactor hosted the opulent event, which saw guests, including the party’s Gauteng provincial secretary TK Nciza, Kaizer Chiefs boss Bobby Motaung, Joburg mayor Kabelo Gwamanda’s spokesperson Mlimandlela Ndamase and others dine under the stars in the garden.
Sodi has had a string of lucrative government contracts for years across the country, which were terminated for poor performance, despite pocketing millions of rand. It was unclear if the event was held at his home in Bryanston, Johannesburg, which also featured a saxophonist and fireworks.
Tshwane mayor Cilliers Brink welcomed the SIU investigation, saying the city’s own forensic investigation had found the tender to have been irregularly awarded.
“The SIU investigation will help to hold individuals responsible for tender irregularities to account and potentially recover some money.“
The city has taken steps to blacklist those companies that have been involved with the tender, ” Brink said.
In June, Brink said the joint venture had been served with a notice to blacklist them. They did only 60% of the work. The contract was ended due to poor performance. The failed Rooiwal project has possible links to the cholera outbreak in Hammanskraal, which claimed the lives of 31 people.
“There was a meeting on Friday of the task team to finalise the city’s position. We are meeting with our attorneys this week to draft a response to the company,” said city spokesperson Selby Bokaba yesterday.
Responding to the move to blacklist his companies, Sodi, through his lawyers, blamed his deceased business partner Rudolf Schoeman, who was director of CMS. In a letter to the city, Sodi accused Schoeman of fraudulent conduct, adding that NJR had opened a criminal case against him. Police have opened an inquest into Schoeman’s death.
He was found dead by his employee at his Bryanston house in March. SIU spokesperson Kaizer Kganyago said they would look into any unauthorised, irregular or fruitless and wasteful expenditure incurred by the municipality or the state.
“The scope of the investigation also covers any unlawful or improper conduct by officials or employees of the Tshwane metropolitan municipality, the applicable suppliers or service providers or any other person or entity.
“The proclamation covers allegations of unlawful and improper conduct that took place between January 1 2018 and September 22 2023, the date of the publication of the proclamation or before January 1 2018 and after the date of the proclamation that are relevant to, connected with, incidental to the matters or involves the same persons, entities or contracts investigated,” Kganyago said.
He said “in addition to investigating maladministration, malpractice, corruption and fraud, the SIU will identify system failures and make systematic recommendations to improve measures to prevent future losses”.
“In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU will refer any evidence pointing to criminal conduct it uncovers during its investigations to the National Prosecuting Authority for further action.
“The SIU is empowered by the SIU Act to institute civilaction in the high court or a special tribunal in its name to correct any wrongdoing uncovered during its investigation caused by acts of corruption, fraud or maladministration,” Kganyago said.
Rooiwal is not the only failed project linked to Sodi. In Gauteng, his company Blackhead Consulting was in 2018 appointed as a consultant and overall manager for the project at Barcelona primary in Etwatwa, on the East Rand.
According to a 2020 response in the provincial legislature, the contract given to Sodi in July 2018 was R10.8m. Sodi was paid R1.8m by 2020. Sodi’s company NJR Projects failed to pay contractors and employees, some of whom were earning as little as R220 a day, leaving them in distress and debt, in the R282m tender to extend a prison in Parys, Free State.
Contractors said they had to lay off workers due to non-payment. In June, Sowetan revealed that Sodi’s company had been paid about R130m at the time its contract was terminated in February. Sodi and former ANC secretary-general Ace Magashule are currently facing charges of fraud, corruption, money laundering after his company was awarded a R255m asbestos tender in Free State. The project was meant to remove harmful asbestos from residential homes.■ sibiyan@sowetan .co.za
sibiyan@sowetan.co.za
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