Staff Reporter
The Asset Forfeiture Unit (AFU) has started executing an asset freezing order worth R300 million against the seven people facing numerous charges in the Free State asbestos corruption case.
The properties to be seized include houses, luxury cars, bank and family trust accounts, household goods and shareholding.
The AFU, which is part of the National Prosecuting Authority (NPA), moved swiftly to start evaluating the assets so they could effect the restraint order after the seven were granted bail by the Bloemfontein Magistrates Court on Friday.
The amount, according to the AFU, emanates from the R225 million paid by the provincial government to a joint venture between Blackhead Consulting and Diamond Hill Trading to do an audit and the eventual removal of asbestos roofing on houses in the province.
The AFU also wants to recover interest on the money from the date of the commission of the offences.
“In terms of the restraint order of the AFU, the court appointed a curator to seize realisable property held by seven accused or held on their behalf by their legal representatives or by any third party,” said NPA spokesperson Sipho Ngwema who also speaks on behalf of the AFU.
“The curator will have a power of attorney over the seized property.”
The operation was carried out simultaneously in the Free State, Gauteng and KwaZulu Natal where the accused reside.
“The accused or anyone else, besides persons authorised by the court, who is aware of the order, is prohibited from dealing with the property,” said Ngwema.
“Notwithstanding the freezing of their fixed properties, such property shall remain in custody of the seven accused and they will have full use of it, pay rates and taxes and maintain it pending subsequent successful confiscation application.
“They are prohibited from making any changes, sell or transfer ownership of the property without the consent of the curator and in consultation with the AFU.
“They must, however, at any stage make the property available for inspection to the curator or a representative of the AFU.”
The seven were released on bail of between R50 000 and R500 000.
The accused are: Nthimotse Mokhesi, 61, head of department, Free State human settlements; Mahlomola John Matlakala, 42, director for supply chain management at the human settlements department; Pheagane Edwin Sodi, 47, of Bryanston, Johannesburg, and owner of Blackhead Consulting (Pty); Sello Joseph Radebe, 56, a businessman from Fourways, Johannesburg; Abel Kgotso Manyeki, 38, a businessman from Clubview, Pretoria; Thabane Wiseman Zulu, 53, a former director-general of the national department of human settlements; and Sarah Matawana Mlamleli, 63, of Bloemfontein, a former MEC for human settlements in the Free State and a former Mayor of Mangaung.
The seven appeared along five companies – Blackhead Consulting, Diamond Hill Trading 71 (Pty) Ltd, 605 Consulting Solutions (Pty) Ltd, Mastertrade 232 (Pty) Ltd, and Ori Group (Pty) Ltd.
They face charges that include fraud, theft, attempted theft, corruption in contravention of the Prevention and Combating of Corrupt Activities Act 12 of 2004, money laundering in contravention of the Prevention of Organised Crime Act 121 of 1998 as well as the contravention of various asbestos regulations, promulgated in terms of the Occupational Health and Safety Act 85 of 1993.
This is subsequent to an investigation initiated by the Special Investigating Unit which referred the matter to the NPA and the Hawks.
The state alleges that fraud to the value of R255 million was committed in the appointment of Blackhead Consulting in 2014 as service provider to the human settlements department in the Free State for the “assessment and removal of asbestos roofs and/or housing”.
The state intends to apply for a confiscation order at the end of the criminal case for the forfeiture of the properties — owned by the accused — to the state.