The National Prosecuting Authority (NPA) has triumphed in its bid to freeze R1.6-billion worth of assets belonging to Regiments Capital, a Gupta-linked financial advisory firm.
On Tuesday, judge Maletsatsi Mahalelo ruled in favour of the NPA to overturn a ruling that slipped out of its grasp in 2020. This after the Joburg High Court provisionally froze the assets allegedly linked to the looting of Transnet in November 2019.
In October 2020, the high court reversed this ruling after Mahalelo found that the then investigating directorate (ID) head Hermione Cronje’s failure to disclose “material facts”, when she applied for the freezing of assets belonging to the directors of Regiments Capital, was a basis to overturn the freezing order.
The court has now overturned the same ruling.
Sindisiwe Seboka, spokesperson for ID, said in a statement on Tuesday: “The court of appeal, led by judge R Keightley, ordered that the restraint order initially issued by judge Wright be varied from R1.108-billion to R1.6-billion.
“However, due regard should be taken to the repayment which Regiments has made to the Transnet Second Defined Benefit Fund in the amount of R639-million. This then takes the total of restrained assets to R1.05-billion.”
In its application, the NPA indicated that Regiments and its owners, Litha Nyhonyha and Niven Pillay, and their former partner Eric Wood would face charges of fraud, corruption and money-laundering for their alleged role in a criminal conspiracy at Transnet that involved a significant Gupta family associate Salim Essa.
Said Seboka: “The ID further stated in court papers that the funds flowed from allegations of fraud, corruption, and money-laundering arising from Regiments advisory services to Transnet in regard to the 1 064 locomotive deal.”
Chief Justice Raymond Zondo’s second installment of the State Capture Report, which covered the capture of Transnet, has found that Regiments Capital was unlawfully appointed as advisors to Transnet because they paid Essa 30% of the fees they were paid by the parastatal.
ID director advocate Andrea Johnson has praised the Hawks investigators and the NPA asset forfeiture personnel for the victory in the ongoing battle to recover assets looted during state capture.
Said Johnson: “This was a tough fight, but much appreciated in the long battle against state capture. This is just the beginning of law enforcement reclaiming the state from the jaws of capture.”
Meanwhile, the ID has so far declared 82 investigations and enrolled 20 cases with 65 accused persons.
“This is a clear indication that the directorate is hard at work in holding those most responsible to account,” said Johnson.
Also read: Transnet tries to recoup R299m from Gupta associate Eric Wood
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