The National Prosecuting Authority (NPA) has secured the final forfeiture of six luxury properties and a high-end Mercedes-Benz G63 AMG worth approximately R32 million, linked to the the infamous asbestos roof scandal in the Free State.
The order was granted by the Free State Division of the High Court in Bloemfontein, which ruled that the assets had been acquired with funds derived from an irregular tender of R230 million.
“The court found on a balance of probabilities that the assets constituted the proceeds of unlawful activities, including fraud, corruption, theft, violations of the Public Finance Management Act (PFMA) and money laundering,” This was said by NPA spokesperson Kaizer Kganyago.
“It was further established that the property and vehicle were instruments used in the commission of money laundering offenses relating to the irregular R230 million Free State asbestos roofing tender.”
The case stems from a 2014 Free State Department of Human Settlements tender for asbestos roofing, which was “irregularly” awarded to a joint venture between Diamond Hill Trading 71 and Blackhead Consulting. Most of the work was reportedly never completed, despite R230 million being paid out.
The forfeited assets “include high-value properties located 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 involved in the asbestos procurement, including the McGina Property Trust, the Villa Castello Residence Trust and the SAB Family Trust. The NDPP has 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 rejected the respondents’ technical defenses, including arguments on the expiry of the conservatorship order and the existence of parallel criminal proceedings.
“The court rejected the respondents’ technical defenses, including arguments regarding the expiration of the preservation order and the existence of parallel criminal proceedings, and confirmed that all procedural requirements had been met and that civil forfeiture proceedings are not precluded by pending criminal cases”.
“This forfeiture marks a significant milestone in the broader investigation into asbestos procurement and is part of ongoing efforts to recover the proceeds of crime. The order will ensure that the forfeited assets are vested in the state, sold and the proceeds deposited into the Criminal AssetsRecovery Account (CARA) to support law enforcement efforts and benefit affected communities.”
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