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A damning forensic audit report has found the IEC's procurement of new premises was neither fair nor transparent.
It says IEC chair Advocate Pansy Tlakula should be held responsible for the role she played.
The report was commissioned by National Treasury on the recommendation of the Public Protector.
It relates to an IEC tender to relocate its offices to Pretoria's Riverside Office Park.
The IEC had flouted regulations to secure the R320-million lease.
Last year the Public Protector determined there was a conflict of interest.
Thaba Mufamadi - through the property management company Abland - successfully tendered for the contract.
Mufamadi and Tlakula both have holdings in Lehotsa Holdings, a mining contractor.
Tlakula failed to disclose this.
She later said she did not benefit from the tender.
The report said the bid evaluation criteria was changed to favour Abland.
This was not afforded to the other bidders.
The lease agreement was signed on 19 June 2009 even though the tax clearance certificates for two of the five members of the Abland consortium are dated after this.
Two other IEC officials have been fingered.
They are the Deputy Chief Electoral Officer Corporate Services and the Manager in the Office of the CEO.
The UDM which blew the whistle on the deal said Tlakula was not fit to lead the IEC.
It called for her suspension and for the contract to be cancelled.