The Free State Development Corporation (FDC) is embroiled in controversy after a land deal previously denied by the organization was uncovered by The Star’s investigative unit. The deal centres on a property at Erf 1015, Namahali Village, in Phuthaditjhaba, which the FDC had leased under a Permission to Occupy (PTO) agreement with the QwaQwa Development Corporation, now operating as the FDC.

The lease, signed in 1989, involved the land being used for a petrol station, the Maanankoe Filling Station, owned by lessee Mr Litabe Khiba Jan. While the FDC has previously denied plans to sell the land, The Star’s investigation revealed that Mr Litabe has made numerous offers to purchase the land over the years, with the most recent offer standing at approximately R1.3 million.

Despite these offers, the deal remained under wraps, and the FDC did not disclose any intention to sell the land until now.

The sale of this property is raising significant concerns due to several controversial factors. First, the property is subject to a PTO agreement, which traditionally does not grant ownership rights to the lessee.

The transaction is, therefore, raising questions about whether it is legitimate for the FDC to transfer ownership rights without an open bidding process or proper transparency. The deal also comes amid concerns that the FDC may be circumventing established regulations for public land transactions.

Critics argue that the lack of an open competitive bidding process and the sale of public property directly to a private lessee, without independent oversight, is unethical and potentially illegal.

Further complicating the matter is the involvement of the FDC's leadership, particularly Chairperson Dr. David Mohale and Acting CEO Kgotso Tau. The two individuals have been the subject of intense scrutiny in recent months.

Right to Justice, a prominent local watchdog organisation, has formally called for their dismissal, citing their failure to properly oversee the corporation and manage the land deal with transparency. Both Mohale and Tau have been reported to the Public Protector for their roles in the controversial sale and other governance issues within the FDC.

One of the major criticisms of Tau is his age. Tau, who is 65 cannot legally act in this role solve the act states that he should’ve vacated office as soon as he turned 65. The FDC has also been criticized for its handling of the property’s valuation.

According to the corporation, it has significantly contributed to the appreciation of the property’s value, but questions remain about how this valuation was determined and the fact that it does not reflect the land's market worth.

The involvement of the Tribal Authority in the sale process has also raised alarms, with concerns that political pressures may be influencing the deal.