Bloem court rules on R32 million asbestos corruption scheme
The order stated that six immovable properties valued at R32 million and a Mercedes-Benz G63 AMG worth R2 million, would be seized.
'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', said NPA spokesperson, advocate Mthunzi Mhaga.
All the alleged perpetrators have direct ties to the Free State Department of Human Settlements. They had access to monies during their time at the department.
'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', Mhaga continued.
According to Mhaga, the perpetrators were able to move the proceeds of crime through attorneys, real estate agencies and high-end motor dealers. He said the AFU has shown through financial flows that the assets were purchased directly with monies linked to 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', said Mhaga.
Mhaga emphasised, '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'.
Mhaga said various persons and entities have since been criminally charged with multiple charges of fraud, theft, money laundering and corruption. They were also charged with contraventions of the Public Finance Management Act. Additionally, they were charged with contraventions of various sections of the Asbestos Regulations. They are set to appear before the Bloemfontein High Court for trial on 15 April 2025.
The NPA said pursuing legal action was an ongoing response to the State Capture Commission's recommendation. It was recommended that they recover monies siphoned through an unlawful contract linked to the Free State Asbestos Eradication Project.
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