BLOEMFONTEIN – The Free State High Court in Bloemfontein granted a final order for the forfeiture of six luxury properties and a Mercedes-Benz G63 AMG, all valued at approximately R32 million.
The forfeiture stems from offences that are linked to the irregular R230 million Free State asbestos roofing tender.
National spokesperson for the National Prosecuting Authority (NPA), Kaizer Kganyago, says the NPA welcomes the order.
The court found on a balance of probabilities that the assets constituted proceeds of unlawful activities, including fraud, corruption, theft, contraventions of the Public Finance Management Act (PFMA), and money laundering.
“It should be noted that this forfeiture order is distinct from the criminal recovery order that requires a conviction and is civil in nature. The respondents in the forfeiture application failed to discharge the burden of proving the innocent owner defence as they raised a bare denial with no credible evidence demonstrating legitimate source of funding for the acquisition of the assets in question, hence the final forfeiture order in favour of the State”.
The forfeited assets include high-value properties situated in Sandton, Hartbeespoort, Wonderboom, Randburg, and Parys, as well as a Mercedes-Benz G63 AMG purchased in cash. These assets were registered under various trusts linked to individuals associated with the asbestos tender, including the McGina Property Trust, the Villa Castello Residence Trust, and the SAB Family Trust. The NDPP successfully traced the flow of funds from the Free State Department of Human Settlements directly to the acquisition of these assets.
The properties include:
- Erf 794, Castello River Estate, Beverley, Sandton (Villa Castello Residence Trust);
- Erf 251, 142 Karin Street, Kosmos, Hartbeespoort;
- Erf 435 Portion 102 and Portion 101, Vissershoek, Wildebeesthoek, Wonderboom (both McGina Property Trust);
- Erf 2319, 28 Ridge Lane, Randburg (McGina Property Trust);
- Unit 12, Erf 212 Portion 9, Cote de Val River Lifestyle Estate, Parys (McGina Property Trust); and
- A silver Mercedes-Benz G63 AMG (registration DB 94 BX GP), registered to the SAB Family Trust and purchased in cash for R2 million.
The matter arises from the controversial asbestos roofing tender awarded in October 2014, where a joint venture between Diamond Hill Trading 71 and Blackhead Consulting was irregularly appointed without following proper procurement processes. Although the contract was valued at approximately R255 million, the work was largely not performed. Instead, the contract was subcontracted at significantly reduced amounts, with only a fraction of the funds reaching the final service provider. Evidence before court established that approximately R230 million was paid out by the department, with the bulk of the funds being diverted through various entities, personal accounts, and trusts, and ultimately used to acquire luxury assets.
Detailed financial investigations revealed classic money laundering patterns involving placement, layering, and integration of illicit funds. Large sums were transferred almost immediately after receipt from the department to associated companies and individuals under the guise of legitimate services, before being dissipated through complex financial channels and used to purchase properties and luxury vehicles in cash.
The court dismissed technical defences raised by the respondents, including arguments relating to the expiry of the preservation order and the existence of parallel criminal proceedings, confirming that all procedural requirements were met and that civil forfeiture proceedings are not barred by pending criminal cases.
This forfeiture marks a significant milestone in the broader asbestos tender investigation and forms part of ongoing efforts to recover proceeds of crime. The order ensures that the forfeited assets will vest in the State, be sold, and the proceeds deposited into the Criminal Assets Recovery Account (CARA) to support law enforcement efforts and benefit affected communities.
“The NPA reiterates that no individual should benefit from the proceeds of crime. This outcome reinforces the role of the Asset Forfeiture Unit (AFU) in tracing, preserving, and forfeiting assets derived from unlawful activities, ensuring that criminal enterprises are disrupted and that stolen resources are returned to the people of South Africa.
Also read: Legal Aid for accused in asbestos case denied.
The National Director of Public Prosecutions (NDPP), Advocate Andy Mothibi, commends the strong and coordinated working relationship between the National Prosecuting Authority (NPA), the Directorate for Priority Crime Investigation (Hawks), and the Special Investigating Unit (SIU), noting that this collaboration demonstrates a united show of force in the fight against corruption and fraud. “The NDPP believes that such strategic partnerships are critical in dismantling complex criminal networks, ensuring accountability, and safeguarding public resources, particularly in cases like the Free State asbestos tender scandal, where corruption has severely undermined service delivery to communities,” Mothibi said.
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