HIGH COURT GRANTED PRESERVATION ORDER FOR R32 MILLION WORTH OF PROPERTIES LINKED TO ASBESTOS CORRUPTION AND MONEY LAUNDERING SCHEME
14 May 2025
HIGH COURT GRANTED PRESERVATION ORDER FOR R32 MILLION WORTH OF PROPERTIES LINKED TO ASBESTOS CORRUPTION AND MONEY LAUNDERING SCHEME
On 13 March 2025, The Free State Division of the High Court in Bloemfontein, granted the NPA’s Asset Forfeiture Unit (AFU), in collaboration with Directorate for Priority Crimes Investigation (DPCI), a Preservation Order for six immovable properties valued at R32 million, and a Mercedes-Benz G63 AMG, purchased cash for R2 million with proceeds of crime linked to the Free State asbestos corruption and money laundering scheme.
The AFU believes the properties are proceeds of unlawful activities of theft, fraud, corruption, and money laundering, perpetuated against the Free State Department of Human Settlements (FSDHS). The involved individuals, companies, and trusts are alleged to have engaged in a complex web of financial flows, designed to strip the FSDHS of its much-needed resources. They were able to move the proceeds of crime through attorneys, real estate agencies and high-end motor dealers. The AFU has shown through financial flows that these properties were purchased with monies siphoned from the FSDHS.
This preservation order follows a Restraint Order of R300-million granted to AFU by the Free State High Court - Bloemfontein in September 2020, in respect of the same Free State asbestos corruption and money laundering scheme. The preservation order will effectively put a freeze on and thwart any efforts to dissipate the very assets sought to be preserved. This will provide for the subsequent forfeiture of these proceeds of crime to the state.
Various persons and entities are also criminally charged with multiple charges of fraud, theft, money laundering, corruption, contraventions of the PFMA and contraventions of various sections of the Asbestos Regulations and are appearing in the High Court of South Africa, Free State Division in a trial which commenced on 15 April 2025.
The preservation order also serves as NPA's ongoing response to the State Capture Commission`s recommendation to recover monies derived from an unlawful contract linked to the Free State Asbestos Eradication Project.
Enquiries:
Adv Mthunzi Mhaga
NPA National Spokesperson