AFU, SIU, Hawks Seize Assets Worth R52.6 Million In COVID-19 Corruption Case

The Asset Forfeiture Unit (AFU) of the National Prosecuting Authority, the Special Investigating Unit (SIU) and the Directorate for Priority Crime Investigation (Hawks) have seized assets and properties worth about R52.6 million in a major operation.

These assets, which were seized on Tuesday, are linked to 22 senior officials, service providers and entities involved in an alleged corruption network within the Mpumalanga Department of Public Works.

The seizure followed a court order from the High Court of South Africa, Mpumalanga Division, which allowed the AFU, SIU and Hawks to seize assets in Mpumalanga, Gauteng, North West and Western Cape provinces related to corruption in procuring personal protective equipment (PPE).

Earlier, President Cyril Ramaphosa directed the SIU, in terms of Proclamation R23 of 2020, to investigate allegations of corruption, maladministration, malpractice, and payments made by State institutions relating to PPE procurement and the conduct of State employees.

"The operation included serving orders at 34 locations and capturing inventories of 29 properties, 31 vehicles and a boat trailer. The court order freezes properties such as houses, electronics, cars, household items, jewelry, arms, ammunition, bank accounts, salaries and bail monies," NPA, Hawks and SIU said in a joint statement, SA News reported.

They added, "All internet banking privileges will be removed from the accused as of 23 July 2024. The seized assets and frozen properties belong to employees of the Mpumalanga Public Works, while others belong to service providers doing business with the department."

The SIU's investigation into PPE contracts from the COVID-19 pandemic found that senior officials awarded multi-million Rand tenders to suppliers who failed to deliver. These suppliers gave large kickbacks to the officials and their family members in various ways.

The investigation revealed numerous cases of corruption, fraud, theft and money laundering involving senior managers and service providers who were supposed to provide PPE disinfection services during the pandemic.

The order restrains many department officials including Macdonald Sigudla, Dorries Mbatha, Bandile Ngcobo, Godisamang Molotsane, Kobus Mkhabela and Sipho Monareng.

Whereas, the service providers receiving the restraining order include Maganeleni Trading and Projects (Pty) Ltd, Anthony Maganeleng Mashigo, Gladness Gugu Bulunga, Thandolwam Transport and Projects (Pty) Ltd and Mbombela Integrated Waste Management Services (Pty) Ltd.

Orapaleng Molotsane, Tsidi Susan Sedibe, Superia Services Trading CC, 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 also received restraining 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," they explained.

The officials and service providers face criminal charges related to PPE procurement and will appear in the Commercial Crimes Court on charges of corruption, fraud, and money laundering.