A rural land restitution trust in Mpumalanga has become the centre of a multi-million-rand scandal after a group of former trustees were exposed for allegedly paying themselves over R15-million from funds meant to uplift a dispossessed community.
Instead of empowering land claimants near Hazyview, the Nhlangwini Trust was exploited as a personal cash machine by individuals who overstayed their term, disregarded the trust deed, and continued to loot long after their mandate had expired.
Now, those former trustees have failed in their attempt to stop a court-appointed administrator from cleaning up their mess and possibly clawing back the loot.
In a scathing judgment handed down this week, Judge Brian Mashile of the Mbombela High Court dismissed the appeal by Themba Tibane, Madoda Isaac Tjie, Nomsa Manyike and Lisbon Developments (Pty) Ltd.
Between 2020 and 2023, Lisbon Developments paid about R15-million into the trust as per agreed terms, but instead of the money reaching its intended beneficiaries, it disappeared into the pockets of trustees and their cronies, the judgment made clear.
According to court papers, R1.4-million was paid to Tibane, R3.3-million to a man named Mculu and R340 000 to Tibane’s friend. The court also flagged a shocking R5.2-million cash withdrawal during this period.
Even after their term expired in January 2022, the former trustees continued to operate the trust unlawfully, making 780 bank transactions amounting to over R7.5-million.
“The trust had become dysfunctional, the master had confessed to having failed to rescue it, and the former trustees illegally remained in office even though their term had come to an end,” said the judge.
“I cannot find that [interests of justice] exist against a backdrop of a mismanaged trust whose trust deed has been disrespected almost since inception.”
The matter came to Mashile’s court because the trustees, supported by Lisbon Developments, opposed the appointment of Nazreen Pando as interim administrator, arguing it was unlawful.
They claimed that the court that appointed him had exceeded its authority and that only the Master of the High Court could make the appointment.
Mashile rejected this.
“It is thus not uncommon that courts have, in appropriate circumstances, such as the current, appointed interim administrators or trustees,” he said.
“These circumstances include situations where trustees mismanage the financial affairs of a trust or fail to account to the community for which the trust has been established. To grant leave to appeal would be an unnecessary burden to the full court of this division or the Supreme Court of Appeal.”
Pando has now been cleared to file her first report, which will guide the court’s next steps as it considers appointing her permanently.
