Sale of properties to ex-Mozambican leader’s kids probed
Top estate agency Pam Golding could face criminal prosecution and a fine of up to R100-million should the Financial Intelligence Centre (FIC) and the Estate Agency Affairs Board find it if outed rules when facilitating the sale of properties to form Mozambican president Armando Guebuza’s children
The FIC has joined forces with EAAB to investigate possible contravention of the law in the sale of two properties in Dainfern and Kyalami estates worth a combined R50-million.
The board on Monday wrote a letter to Pam Golding notifying the real estate developer of an investigation into allegations that the company had contravened the provisions of the FIC Act by facilitating the sale of the properties to politically exposed people.
“It is alleged that Pam Golding Properties facilitated the sale of two Johannesburg properties to children of former Mozambican president Armando Guebuza without following due diligence in terms of the FIC Act,” board CEO Mamodupi Mohlala said in the letter.
“Note that the alleged contraventions in terms of the FIC Act, FIC Amendment Act, regulations, if proven, may lead to criminal prosecution or administrative sanctions,” she said, adding that the board will be investigating the possible contravention of the code of conduct for estate agents.
The FIC’s Simangaliso Zwane confirmed that the institution was conducting an inspection into whether Pam Golding complied with the FIC Act on the sale of the properties.
“The FIC wishes to advise that, in terms of the FIC Act, it and the Estate Agency Affairs Board (EAAB), are not authorised to conduct criminal investigations,” he said.
“The FIC and the EAAB, which is a supervisory body, are only authorised to conduct administrative inspections. Furthermore, the ambit of these inspections is limited to determining the levels of compliance, with the requirements of the FIC Act, of accountable institutions such as, for example, Pam Golding Properties,” he added.
It is alleged former political leaders and their families were laundering money by investing large sums of illegal cash in properties in South Africa, resulting in the artificial in ation property prices and skewed market values.
Pam Golding spokeswoman Gaye de Villiers said the company took the allegations “extremely serious” and that there was an independent investigation into the transactions.
“Without pre-empting the outcome of this report or an investigation by the EAAB, we have pointed out to the EAAB that Pam Golding Properties can only be held to account if there was any noncompliance with requirements that were in effect at the time,” she said.
“We have also indicated to the EAAB that three of the sections on which they rely were not yet in force at the time of the transactions and one of them is still not in force,” she added.
De Villiers said they were engaging with the EAAB to clarify the ambit of the intended investigation and we are committed to full co-operation with the EAAB.”
By George Matlala
