DHS gave asbestos company a 'take it or leave it' R200m contract, Zondo hears

Blackhead director Edwin Sodi was responding to Deputy Chief Justice Raymond Zondo’s question on why so much money was charged.

A screengrab shows Edwin Sodi at the state capture inquiry on 19 August 2020. Picture: SABC/YouTube.

JOHANNESBURG - Blackhead director Edwin Sodi said the asbestos contract that generated R200 million for his company in Gauteng was a “take it or leave it” from the Department of Human Settlements (DHS), so he wouldn’t have known that he would get so much money upfront.

He was responding to Deputy Chief Justice Raymond Zondo’s question on why so much money was charged.

Earlier, Sodi said the cost of the audit was R300 per house, and the company was paid R650 per house - making a profit of R350 for each of the 250,000 audited; nearly R90 million.

Zondo asked: “Doesn’t that suggest that the price for the 250 units was quite high?”

Sodi responded: “When we were appointed on this exercise, we were given a rate. None of us negotiated for the rate with the department. This was, as I said, a take it or leave it and it was only after the project when we looked at the expenses to determine how much you would have made.”

WATCH LIVE: State Capture Inquiry, 19 August 2020

Download the EWN app to your iOS or Android device.