The National Prosecuting Authority (NPA) has welcomed a Free State High Court order, authorising the final forfeiture of six luxury properties and a Mercedes-Benz vehicle, worth about R32-million.
In a statement released on Saturday, the NPA says the National Director of Public Prosecutions (NDPP) was granted the order in terms of Chapter 6 of the Prevention of Organised Crime Act (POCA).
Proceeds of unlawful activities
The court found on a balance of probabilities that the assets were proceeds of unlawful activities, including fraud, corruption, theft, contraventions of the Public Finance Management Act (PFMA), and money laundering.
It also found that the properties and vehicle were used in the commission of money laundering offences linked to the irregular R255-million Free State asbestos roofing tender.
Forfeited assets include high-value properties, Mercedes-Benz G63 AMG
According to the court, “It should be noted that this forfeiture order is distinct from the criminal recovery order that requires a conviction and is civil in nature. The respondents in the forfeiture application failed to discharge the burden of proving innocent owner defence as they raised a bare denial with no credible evidence demonstrating a legitimate source of funding for the acquisition of the assets in question, hence the final forfeiture order in favour of the State.”
The forfeited assets include high-value properties in Sandton, Hartbeespoort, Wonderboom, Randburg and Parys, and Mercedes-Benz G63 AMG, purchased with cash.
Controversial 2014 asbestos roofing tender
The assets were registered to various trusts linked to individuals associated with the asbestos tender.
The NDPP successfully traced the flow of funds from the Free State Department of Human Settlements directly to the acquisition of these assets.
The matter arises from the controversial asbestos roofing tender awarded in October 2014. A joint venture between Diamond Hill Trading 71 and Blackhead Consulting was irregularly appointed without following proper procurement processes.
Work in R255m contract largely not performed
Work in the R255-million contract was largely not performed.
Instead, it was subcontracted at significantly reduced amounts, with only a fraction of the funds reaching the final service provider.
Evidence before the Bloemfontein court showed that the department paid out approximately R230-million. The bulk of the funds were diverted through various entities, personal accounts, and trusts, and ultimately used to acquire luxury assets.
Classic money laundering patterns
Detailed financial investigations revealed classic money laundering patterns involving placement, layering and integration of illicit funds.
Large sums were transferred almost immediately after receipt to associated companies and individuals under the guise of legitimate services. They were then dissipated through complex financial channels and used to purchase properties and luxury vehicles in cash.
The court confirmed that all procedural requirements were met, dismissing the respondents’ technical defences.
‘Significant milestone in asbestos tender probe’
This forfeiture marks a significant milestone in the broader asbestos tender investigation and forms part of ongoing efforts to recover proceeds of crime.
The State now takes control of the forfeited assets, which it will sell. The proceeds will be deposited into the Criminal Assets Recovery Account (CARA) to support law enforcement efforts and benefit affected communities.
The National Director of Public Prosecutions (NDPP), Advocate Andy Mothibi has commended the strong and coordinated working relationship between the NPA, the Hawks and the Special Investigating Unit (SIU).
He says that this collaboration demonstrates a united show of force in the fight against corruption and fraud.
