AFU, SIU, AND HAWKS SEIZE ASSETS WORTH R52 MILLION IN ALLEGED COVID-19-RELATED CORRUPTION CASE.
The Asset Forfeiture Unit (AFU) of the National Prosecuting Authority, the Special Investigating Unit (SIU), and the Directorate for Priority Crime Investigation (Hawks) have seized various assets and properties valued at approximately R52.6 million. The assets and properties are linked to 22 senior management officials, service providers, and entities involved in an alleged corruption network within the Mpumalanga Department of Public Works.
This seizure follows a preservation court order from the High Court of South Africa, Mpumalanga Division, Mbombela obtained by the AFU. The order allows the AFU, SIU, and Hawks to seize various assets in Mpumalanga, Gauteng, North West, and Western Cape provinces associated with personal protective equipment (PPE) corruption. The operation included serving orders at 34 locations and capturing inventories of 29 properties, 31 vehicles, and a boat trailer.
The court order freezes properties such as houses, electronics, cars, household items, jewellery, arms, ammunition, bank accounts, salaries, and bail monies. All internet banking privileges will be removed from the accused as of July 23, 2024. The seized assets and frozen properties belong to employees of the Mpumalanga Public Works, while others belong to service providers doing business with the department.
The order restrains the following individuals and entities:
Department Officials:
- Macdonald Sigudla
- Dorries Mbatha
- Bandile Ngcobo
- Godisamang Molotsane
- Kobus Mkhabela
- Sipho Monareng
Service Providers:
- Maganeleni Trading and Projects (Pty) Ltd
- Anthony Maganeleng Mashigo
- Gladness Gugu Bulunga
- Thandolwam Transport and Projects (Pty) Ltd
- Mbombela Integrated Waste Management Services (Pty) Ltd
- Orapaleng Molotsane
- Tsidi Susan Sedibe
- Superia Services Trading CC
- Whisky Delisa Khumalo
- Makulaspan Construction (Pty) Ltd
- Thabang Lebo Andiswa Dibakoane
- Ntando Ms Trading (Pty) Ltd
- Bongani Edward Lukhele
- Ligabho Le’Africa Properties (Pty) Ltd
- Oratile Molotsane
- Ezrom Molotsane
The order is based on Section 26 of the Prevention of Organised Crime Act, 121 of 1998, which prevents a person from dissipating their assets before a confiscation order is made following a conviction.
The SIU’s investigation into PPE contracts related to the COVID-19 pandemic revealed that senior management officials awarded multi-million Rand COVID-19 PPE tenders to suppliers who did not deliver the services. These suppliers paid substantial kickbacks to the senior management officials and their family members in different ways. The investigation uncovered multiple instances of corruption, fraud, theft, and money laundering committed by senior managers and service providers involved in procuring PPE disinfection services during the COVID-19 period.
In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU referred criminal evidence to the NPA and Hawks for further investigation, leading to the arrest of department officials and service providers. The officials and service providers now face criminal charges related to PPE procurement and appear in the Commercial Crimes Court on charges of corruption, fraud, and money laundering.
President Cyril Ramaphosa directed the SIU, in terms of Proclamation R23 of 2020, to investigate allegations of corruption, maladministration, malpractice, and payments made by State institutions relating to PPE procurement and the conduct of State employees.
This preservation order is part of the implementation of the National Anti-Corruption strategy by law enforcement agencies to strengthen their fight against corruption. It highlights the misuse of positions of trust by state employees to enrich themselves at the expense of public service delivery and the economy.
The NPA’s Asset Forfeiture Unit is authorised under Section 26 of the Prevention of Organised Crime Act 121 of 1998 (POCA) to obtain a restraint of property order to seize any “realisable assets” of an accused person in a criminal case. Such assets may later be used to satisfy a confiscation order granted by any court after the conviction of the accused to recover any illegal financial benefit obtained from their criminal activities.
The SIU is also empowered to institute civil action in the High Court or a Special Tribunal in its name to address any wrongdoing uncovered during investigations related to acts of corruption, fraud, or maladministration. In line with the SIU Act, the SIU refers any evidence of criminal conduct it uncovers to the NPA for further action.
