On Tuesday, an extensive combined operation including personal protective equipment (PPE) corruption and Covid-19 looting resulted in the seizure of various movable and immovable assets and property worth around R52.6 million.
The operation was carried out in Mpumalanga by the National Prosecuting Authority’s Asset Forfeiture Unit (AFU), the Special Investigating Unit (SIU), and the Directorate for Priority Crime Investigation (known as the Hawks).
The assets and properties are related to 22 senior management personnel, service providers, and businesses allegedly participating in a corruption network at the Mpumalanga Department of Public Works.
“This seizure follows a preservation court order from the High Court of South Africa, Mpumalanga Division, Mbombela obtained by the AFU,” said Monica Nyuswa, Mpumalanga spokesperson for the National Prosecuting Authority, in a joint statement issued by the three crime-fighting groups.
“The order allows the AFU, SIU, and Hawks to seize various assets in Mpumalanga, Gauteng, North West, and Western Cape provinces associated with personal protective equipment (PPE) corruption.”
The operation involved servicing orders at 34 locations and obtaining inventories for 29 homes, 31 automobiles, and a boat trailer.
“The court order freezes properties such as houses, electronics, cars, household items, jewellery, arms, ammunition, bank accounts, salaries, and bail monies,” Nyuswa informed the court.
“Effective July 23, 2024, the accused will lose all internet banking privileges. The confiscated assets and frozen properties belong to Mpumalanga Public Works personnel, while others are owned by service companies who do business with the department.
The court injunction restrains people and businesses, including department officials. Macdonald Sigudla, Dorries Mbatha, Bandile Ngcobo, Godisamang Molotsane, Kobus Mkhabela, Sipho Monareng, and service providers Maganeleni Trading and Projects (Pty) Ltd, Anthony Maganeleng Mashigo, Gladness Gugu Bulunga, Thandolwam Transport and Projects (Pty) Ltd, Mbombela Integrated Waste Management Services (Pty) Ltd, Orapaleng Molotsane, Tsidi Susan Sedibe, Superia Services Trading CC, and Whisky Delisa Khumalo.
Makulaspan Construction (Pty) Ltd, Thabang Lebo Andiswa Dibakoane, Ntando Ms Trading (Pty) Ltd, Bongani Edward Lukhele, Ligabho Le’Africa Properties (Pty) Ltd, Oratile Molotsane, and Ezrom Molotsane are among the other service providers named in the restraint order.
“The order is based on Section 26 of the Prevention of Organised Crime Act, 121 of 1998, which prevents a person from dissipating their assets before a confiscation order is made following a conviction,” Nyuswa told journalists.
“The SIU’s investigation into PPE contracts related to the Covid-19 pandemic revealed that senior management officials awarded multi-million rand Covid-19 PPE tenders to suppliers who did not deliver the services,” the spokesperson claimed.
“These suppliers provided significant payments to senior management executives and their family members in various ways. The inquiry revealed numerous instances of corruption, fraud, theft, and money laundering committed by senior managers and service providers involved in the procurement of PPE disinfection services throughout the Covid-19 period.”
In accordance with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU forwarded criminal evidence to the NPA and Hawks for additional investigation, resulting in the arrests of department officials and service providers.
Officials and service providers are now facing criminal accusations for PPE procurement, including corruption, fraud, and money laundering, and will appear in the Commercial Crimes Court.
In accordance with Proclamation R23 of 2020, President Cyril Ramaphosa authorized the SIU to investigate allegations of corruption, maladministration, malpractice, and payments made by State institutions regarding PPE procurement and the conduct of State personnel.
“This preservation order is part of the national anti-corruption plan that law enforcement agencies are using to bolster their battle against corruption. It demonstrates how state personnel abuse positions of trust to benefit themselves at the price of public service delivery and the economy,” said Nyuswa.
“The NPA’s Asset Forfeiture Unit is authorised under Section 26 of the Prevention of Organised Crime Act 121 of 1998 (POCA) to obtain a restraint of property order to seize any “realisable assets” of an accused person in a criminal case,” she said.
“Such assets may later be used to satisfy a confiscation order issued by any court following the accused’s conviction to recover any illegal financial benefit derived from their criminal activities.” “The SIU is also authorized to file a civil action in the high court or a special tribunal,” Nyuswa explained.
“The SIU is also authorized to file a civil lawsuit in the high court or a special tribunal in its name for any wrongdoing discovered during investigations into acts of corruption, fraud, or maladministration. In accordance with the SIU Act, the SIU sends any evidence of criminal conduct discovered to the NPA for further action.”
