Former Police Minister Bheki Cele has made damning allegations that the Jacob Zuma-led uMkhonto weSizwe Party is funded by alleged diamond dealer Louis Liebenberg.
Cele was testifying at the parliamentary Ad Hoc committee investigating the allegations made by KwaZulu-Natal police commissioner Lt-Gen Nhlanhla Mkhwanazi in a briefing on July 6.
Cele described Liebenberg as an illegal mining kingpin who is in the business of cleaning diamonds and related stuff.
Paid for private court case
“He funds MKP, he maybe funds Baba and threw him MKP because he paid R500, 000 for the private case to be taken to court. I think taking a case privately you pay, he paid that money and he has been arrested.
“He is in prison as we speak for running diamonds. He has appeared in court and MK has been in court supporting him every day when he goes to court,” said Cele.
The former minister claimed he is not well-informed if the MK Party knows about the criminal activities Liebenberg is involved in. This considering that it is possible to meet someone and only understand at a later stage who they are.
Liebenberg was arrested by the Hawks in October 2024. He was arrested alongside eight co-accused on multiple charges of fraud, racketeering, money laundering and various statutory offences.
At the time, National Prosecuting Authority (NPA) regional spokesperson Lumka Mahanjana said it is alleged Liebenberg registered 15 companies. His ex-girlfriend Magdelina Kleynhans and the rest of the accused, who are either family members or have close relations, were directors.
Registered illegal diamond companies
In 2020 Louis Petrus Liebenberg and Magdelena Petronella Kleynhans registered a company styled Tariomix. They were both directors. Another company styled Forever Zircon was registered in 2021.
Both these companies were purportedly involved in buying and selling diamonds. Potential investors were lured through social media and radio interviews. They were encouraged to invest in the buying and selling of diamonds. And they were also promised high returns over a short period of time using a cashless platform called AE Switch.
Thousands of investors made payments into the platform, amounting to approximately R4.5-billion.
“The accused utilised the proceeds of the diamond investment scheme to purchase movable and immovable assets. These …include two mines, various motor vehicles, a Ford Bakkie, BMW 230i sport, Toyota Agya, Kruger rands and silver coins. And also paid for Liebenberg’s lavish wedding and honeymoon in Greece. Various immovable properties, including an office block, were purchased.
“When some investors did not receive the promised payments, they became suspicious. And they reported the matter to the SAPS, suspecting that they were defrauded,” said Mahanjana.
