The National Prosecuting Authority (NPA) has secured the final forfeiture of six luxury properties and a high-end Mercedes-Benz G63 AMG worth around R32 million, linked to the notorious Free State asbestos roofing scandal.
The order was granted by the Free State Division of the High Court in Bloemfontein, which found that the assets were acquired using funds diverted from an irregular R230 million tender.
“The court found on a balance of probabilities that the assets constituted proceeds of unlawful activities, including fraud, corruption, theft, contraventions of the Public Finance Management Act (PFMA), and money laundering”, NPA spokesperson Kaizer Kganyago said.
“It further found that the properties and vehicle were instrumentalities used in the commission of money laundering offences linked to the irregular R230 million Free State asbestos roofing tender”.
The case arises from a 2014 Free State Department of Human Settlements tender for asbestos roofing, which was awarded “irregularly” to a joint venture between Diamond Hill Trading 71 and Blackhead Consulting. Most of the work was reportedly never completed, despite R230 million having been paid out.
The forfeited assets “include high-value properties situated in Sandton, Hartbeespoort, Wonderboom, Randburg and Parys, as well as a Mercedes-Benz G63 AMG purchased in cash”.
“These assets were registered under various trusts linked to individuals associated with the asbestos tender, including the McGina Property Trust, the Villa Castello Residence Trust, and the SAB Family Trust. The NDPP successfully traced the flow of funds from the Free State Department of Human Settlements directly to the acquisition of these assets”.
Kganyago also revealed that the court dismissed the respondents’ technical defences, including arguments about the expiry of the preservation order and the existence of parallel criminal proceedings.
“The court dismissed technical defences raised by the respondents, including arguments relating to the expiry of the preservation order and the existence of parallel criminal proceedings, confirming that all procedural requirements were met and that civil forfeiture proceedings are not barred by pending criminal cases”.
“This forfeiture marks a significant milestone in the broader asbestos tender investigation and forms part of ongoing efforts to recover proceeds of crime. The order ensures that the forfeited assets will vest in the State, be sold, and the proceeds deposited into the Criminal AssetsRecovery Account (CARA) to support law enforcement efforts and benefit affected communities”.
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