On 31 March 2025, NGO Right to Justice (R2J) will officially open a case against the Free State Development Corporation (FDC), alleging gross misconduct and corruption in a land transaction that has raised alarm bells across the province. The case centres on the sale of a property at Erf 1015, Namahali Village, Phuthaditjhaba, which was initially leased under a Permission to Occupy (PTO) agreement between the FDC and the QwaQwa Development Corporation, now operating as the FDC.

The land in question has long been used for the Maanankoe Filling Station, owned by lessee Mr Litabe Khiba Jan. While the FDC had previously denied plans to sell the property, investigative reporting by The Star uncovered that Mr. Jan had made multiple offers to purchase the land over the years, with the most recent offer standing at approximately R1.3 million. This revelation has caused a stir, raising questions about transparency, ethics, and potential corruption within the FDC, especially regarding whether the sale was conducted by proper legal and regulatory procedures.

Siphesihle Jele, chairperson of Right to Justice, stated the organization’s reasons for pursuing the case. "The Free State Development Corporation is supposed to serve the public interest, not line the pockets of a select few. The secrecy surrounding this land deal, coupled with the lack of an open bidding process, is a clear indication of deep-seated corruption. We cannot stand by and let these unethical practices continue," said Jele. "This case is not just about one land transaction, but about the systemic issues plaguing public institutions in the province. We are calling for full accountability from Acting CEO Kgotso Tau and his immediate removal."

The FDC, often referred to as the Free State’s version of the Public Investment Corporation (PIC), is embroiled in multiple controversies regarding land deals, financial mismanagement, and governance failures. The organisation’s handling of the sale of the property at Erf 1015 has drawn significant criticism, particularly due to the lack of an open competitive bidding process, raising questions about the legitimacy of the transaction.

The PTO agreement under which the property was leased to Mr. Jan typically does not grant ownership rights to the lessee, making the potential sale of the land even more contentious. Critics argue that circumventing the required bidding process and directly selling the property to a private individual without independent oversight could be illegal and unethical.

The leadership of the FDC, particularly Acting CEO Kgotso Tau and Chairperson Dr. David Mohale, has been at the center of growing public scrutiny. The FDC’s failure to disclose the sale intentions and the questionable handling of the property valuation have further fueled calls for their dismissal. According to Jele, "The leadership’s failure to manage this situation with transparency and integrity undermines the public trust and points to a broader culture of corruption within public institutions in the province."

Moreover, concerns have been raised about Tau’s continued position as Acting CEO despite reaching the age of 65, the legal age limit for holding such a position. Critics argue that Tau should have vacated his role upon reaching this age, as stipulated by corporate governance laws. The controversy over the property’s valuation, which allegedly fails to reflect the land's true market value, has further cast doubt on the FDC’s practices.

R2J's case will also address the involvement of the Tribal Authority in the sale process, amid concerns that political pressures may have influenced the deal. The organization is calling for a full investigation into the matter by the Public Protector and other relevant authorities to ensure accountability and prevent further corruption within the FDC.

The upcoming case is seen as a critical step in challenging the systemic issues within the FDC and holding those responsible for its failures to account.