THE National Prosecuting Authority (NPA) has secured a major legal victory in the long-running Free State asbestos roofing tender scandal, with the High Court ordering the final forfeiture of luxury assets worth approximately R32 million.
The High Court in Bloemfontein granted the order this week in favour of the National Director of Public Prosecutions (NDPP), allowing the state to seize six high-end properties and a Mercedes-Benz G63 AMG linked to proceeds of crime.
According to the NPA, the court found that the assets were acquired through unlawful activities, including fraud, corruption, theft, contraventions of the Public Finance Management Act and money laundering.
The forfeiture, granted under Chapter Six of the Prevention of Organised Crime Act, is a civil process and does not require a criminal conviction.
The court ruled that those opposing the forfeiture failed to provide credible evidence proving that the assets were obtained legally.
“The respondents raised a bare denial with no credible evidence demonstrating a legitimate source of funding for the acquisition of the assets,” the NPA said.
The forfeited assets include properties located in Sandton, Hartbeespoort, Wonderboom, Randburg and Parys, as well as a Mercedes-Benz G63 AMG allegedly purchased in cash.
Investigators traced the flow of funds from the Free State Department of Human Settlements directly to the acquisition of these assets.
The properties were registered under various trusts, including the McGina Property Trust, the Villa Castello Residence Trust and the SAB Family Trust, all linked to individuals associated with the controversial tender.
The case stems from the asbestos roofing contract awarded in October 2014 to a joint venture between Diamond Hill Trading 71 and Blackhead Consulting.
The contract, valued at about R255 million, was meant to audit and remove asbestos roofs across the province.
However, authorities say the work was largely not carried out.
Evidence presented in court showed that approximately R230 million was paid out, with much of the money allegedly diverted through a network of companies, personal accounts and trusts.
Only a small portion reached the actual service providers.
The NPA said financial investigations uncovered classic money laundering methods, including the rapid movement of funds through multiple entities to conceal their origin before being used to purchase luxury assets.
The High Court also rejected technical arguments raised by the respondents, including claims about the expiry of the preservation order and the existence of parallel criminal proceedings.
The court confirmed that civil forfeiture proceedings can proceed independently of criminal cases.
The forfeited properties and vehicle will now vest in the state.
They are expected to be sold, with proceeds deposited into the Criminal Assets Recovery Account, which supports law enforcement initiatives and community projects.
NPA National Director Advocate Andy Mothibi welcomed the outcome, describing it as a significant step in holding those involved in corruption accountable.
He also praised collaboration between the NPA, the Hawks and the Special Investigating Unit, saying such partnerships are essential in tackling complex corruption cases and recovering stolen public funds.
The NPA said the ruling reinforces its commitment to ensuring that no individual benefits from the proceeds of crime and that public resources are returned to the people of South Africa.