The Asset Forfeiture Unit (AFU) of the National Prosecuting Authority (NPA) in the Eastern Cape has secured a final forfeiture of a luxury property in Gauteng valued at about R18m.
The house at 514 The Stables in Lanseria belonged to Bongani Mpeluza, the sole director of Siyenza, a company appointed by the Amathole district municipality (ADM) to provide ventilated improved pit toilets to about 66,700 households in various villages in the Eastern Cape.
NPA spokesperson Luxolo Tyali said on Monday the final forfeiture order, obtained on March 19, was linked to an ongoing criminal case involving alleged irregularities in the large-scale sanitation project.
“Following a tender process, multiple service providers were appointed. However, subsequent developments led to the involvement of Siyenza, a company initially contracted through the Municipal Infrastructure Support Agency (Misa).
Tyali said it later emerged that Siyenza had submitted fraudulent tax clearance certificates and should not have been awarded the contracts. After the discovery of irregularities, the contracts involving Siyenza were terminated.
The high court in Bhisho ruled in November 2015 that the agreement between the ADM and Siyenza was unconstitutional, unlawful, void from the outset and of no force and effect.
“Investigations further revealed that the forfeited property was acquired using proceeds derived from this unlawful contact, enabling the AFU to successfully preserve and ultimately forfeit it to the state.”
The related criminal matter remains before the court and has been remanded for trial from July 21 to August 14. In addition to Mpeluza, other accused include four officials from the ADM, two officials from Misa and three officials from Siyenza.
Tyali said the AFU first obtained a preservation order against the property from the high court in Makhanda in 2018. The house had been identified as the proceeds of unlawful activities.
A default forfeiture order was subsequently granted on August 21 2018. However, after a protracted legal battle, the order was rescinded by agreement between the parties on September 17 2024.
“After continued litigation and opposition from the respondent, the AFU successfully secured a final forfeiture order on March 19.”
Tyali said the property will be sold, with the proceeds to be used to settle the outstanding mortgage bond held by the bank.
“Any remaining funds will be deposited into the criminal assets recovery account to support law enforcement efforts in combating crime.”
Eastern Cape director of public prosecutions Barry Madolo welcomed the forfeiture, stating it demonstrated the NPA’s unwavering resolve to dismantle financial gains derived from corruption and fraud.
“This outcome sends a strong message that no matter how complex or prolonged the legal process may be, the NPA will persist in ensuring that the proceeds of crime are recovered and redirected to benefit the people of South Africa,” Madolo said.
TimesLIVE
Ernest Mabuza
www.timeslive.co.za