Two helicopters, a R4m Rolls-Royce, millions in cash in numerous bank accounts and upmarket properties at exclusive addresses were among assets worth more than R1bn seized by the Asset Forfeiture Unit (AFU) in one year.
The alleged corruption at the National Lotteries Commission (NLC) featured prominently in some of the high-value seizures in 2023 by the AFU, a division of the National Prosecuting Authority (NPA).
AFU head Ouma Rabaji-Rasethaba said three preservation orders related to the NLC were implemented involving allegedly stolen funds worth more than R50m.
They included four properties in Polokwane and Makhado, as well as a Rolls-Royce Phantom, a BMW 5 Series G30 520d sedan, and a BMW 7 Series M760Li xDrive sedan.
The cars were allegedly unlawfully acquired by various entities, including trusts, with grants allocated by the NLC.
Rabaji-Rasethaba said their first application related to evidence showing that the cash purchases of nine properties, a vehicle and two restaurant franchises could be linked to grants allocated by the NLC.
Another application related to a Bryanston property owned by actress Terry Pheto, which was partly paid for by former NLC chair Alfred Nevhutanda.
“The house was sold for R3.9m and the proceeds are [being] held by the curator bonis pending the forfeiture application,” Rabaji-Rasethaba said.
Other assets linked to the NLC preservations included:
- a Bryanston property which had been purchased for R5.6m;
- a Simon’s Town, Cape Town, property acquired for R4m;
- a plot in Uitzicht, Pretoria, worth R3.3m;
- a Rolls-Royce bought in 2016 for R4.5m;
- a property in Boschkop, east of Pretoria, purchased for R2.2m; and
- Ocean Basket franchises at Carnival City and Mall@Carnival in Ekurhuleni.
The AFU encountered opposition to some of the attachments, Rabaji-Rasethaba said. “We are still waiting for their answering affidavits, after which we will file our forfeiture application.”
NPA spokesperson Mthunzi Mhaga said the authority froze assets amounting to R1.5bn during the year, with confiscations and forfeitures valued at R278m.
“We had recoveries to the value of R188.7m, of which R122.5m was returned to victims and R66.2m paid into the criminal assets recovery account,” Mhaga said.
The NPA received a preservation order for two helicopters worth R38.1m in a case involving a former Zambian foreign minister, Joseph Malanji.
Malanji had circumvented and manipulated procurement processes to ensure that monies were channelled into the bank accounts of companies owned by him. He funnelled $5m (about R92m) of the funds towards purchasing two helicopters in South Africa.
Zambia approached the NPA in February for assistance with the recovery of both aircraft, as it was suspected they were bought and subsequently “hidden” in South Africa. The preservation order for the helicopters valued at R38.1m was granted in February, Mhaga said.
One of the helicopters, a Bell 430, was still on the South African Civil Aviation Authority’s registry, while the other was subsequently moved to Zimbabwe.
Some of the highest-value attachments were in a matter of corruption, fraud and money laundering involving the activities of former employees of Akwandze Agricultural Finance (Pty) Ltd, a development finance organisation.
“The AFU obtained a restraining order against the defendants in the amount of R18.2m. The AFU will launch a confiscation application upon the conviction of the accused,” Mhaga said.
In a matter related to the Compensation for Occupational Injuries and Diseases Act's Compensation Fund, Mhaga said the fraudulent and corrupt capturing of false account numbers on the fund’s claims system caused the fund to unduly pay claims to a number of people and business entities.
“The AFU obtained a preservation order against funds held in several bank accounts in the amount of R35m on April 17 2023. The process to obtain a forfeiture order is ongoing,” he said.
The AFU has obtained a further four preservation orders in similar cases, with the total amount preserved now at R52.2m, Mhaga said.
In a case in which a syndicate stole Eskom’s master vending units and sold prepaid electricity illegally, the AFU obtained a preservation order worth R36m in November.
Mhaga said the AFU obtained a further three preservation orders amounting to R144m, R53m and R47.4m in a matter related to immovable property belonging to the Mmabatho municipality that was fraudulently and corruptly transferred to private persons and entities.
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