{"id":298432,"date":"2026-03-26T12:03:57","date_gmt":"2026-03-26T10:03:57","guid":{"rendered":"https:\/\/novanews.co.za\/bloemnuus\/?p=298432"},"modified":"2026-03-26T12:03:59","modified_gmt":"2026-03-26T10:03:59","slug":"state-secures-forfeited-assets-worth-an-estimated-r32-m","status":"publish","type":"post","link":"https:\/\/novanews.co.za\/bloemnewsexpress\/state-secures-forfeited-assets-worth-an-estimated-r32-m\/","title":{"rendered":"State secures forfeited assets worth an estimated R32 m"},"content":{"rendered":"\n

The South African state has secured an important victory in the R255 million asbestos roof removal corruption scandal involving the Free State Department of Human Settlements. \n<\/p>\n\n\n\n

This came after the Free State Division of the High Court in Bloemfontein granted the National Prosecuting Authority (NPA) of South Africa a final forfeiture order on 21 March 2025.\n<\/p>\n\n\n\n

The order resulted in the forfeiture of six high-value properties and a Mercedes-Benz G63 AMG that was purchased in cash. \n<\/p>\n\n\n\n

\n
\"The
The property in Parys.<\/figcaption><\/figure>\n\n\n\n
\"A
A property in Hartbespoort.<\/figcaption><\/figure>\n\n\n\n
\"The
The Mercedes-Benz G63.<\/figcaption><\/figure>\n<\/figure>\n\n\n\n

The properties are situated in Sandton, Hartbeespoort, Wonderboom, Randburg and Parys. \n<\/p>\n\n\n\n

The total value of all assets forfeited to the state is estimated at approximately R32 million. \n<\/p>\n\n\n\n

The forfeiture comes as criminal proceedings continue in the High Court against implicated individuals in this high-profile fraud and corruption case.\n<\/p>\n\n\n\n

Two companies are central to the asbestos roofing tender awarded in October 2014 to Diamond Hill Trading 71, owned by slain Welkom-based businessman Ignatius “Igo” Mpambani, and Blackhead Consulting, owned by Edwin Sodi, a Johannesburg-based businessman. \n<\/p>\n\n\n\n

Kaizer Kganyago, national spokesperson for the NPA, explained the significance of the forfeiture<\/a>.<\/p>\n\n\n\n

“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. \n<\/p>\n\n\n\n

Also read: Asbestos trial to continue on Monday after landmark ConCourt ruling<\/a>.<\/p>\n\n\n\n

“It further found that the properties and vehicle were instrumentalities used in the commission of money laundering offences linked to the irregular R230 million Free State asbestos roofing tender.\n<\/p>\n\n\n\n

“It should be noted that this forfeiture order is distinct from the criminal recovery order that requires a conviction and is civil in nature. \n<\/p>\n\n\n\n

“The respondents in the forfeiture application failed to discharge the burden of proving an innocent owner defence as they raised a bare denial with no credible evidence demonstrating a legitimate source of funding for the acquisition of the assets in question. Hence the final forfeiture order in favour of the State,” said Kganyago.\n<\/p>\n\n\n\n

He said the court dismissed technical defences raised by the respondents, including arguments regarding the expiry of the preservation order and the existence of parallel criminal proceedings.\n<\/p>\n\n\n\n

“The dismissal confirmed that all procedural requirements were met and that civil forfeiture proceedings are not barred by pending criminal cases,” said Kganyago.\n<\/p>\n\n\n\n

He said an in-depth investigation revealed the assets had been registered under various trusts linked to individuals associated with the asbestos tender. \n<\/p>\n\n\n\n

These include the McGina Property Trust, the Villa Castello Residence Trust, and the SAB Family Trust. \n<\/p>\n\n\n\n

Kganyago said the forfeited assets resulted from the National Director of Public Prosecutions (NDPP) tracing the flow of funds from the Free State Department of Human Settlements to the acquisition of these assets.\n<\/p>\n\n\n\n

High-end assets seized<\/h2>\n\n\n\n

Initially, the Asset Forfeiture Unit (AFU) had frozen R300 million in assets.<\/p>\n\n\n\n

This included high-end sports cars owned by Sodi and his firm, Blackhead Consulting. Among them are a Rolls-Royce Ghost, a Bentley Continental convertible, and a Porsche Cayenne S Coupe. \n<\/p>\n\n\n\n

In total, 25 vehicles were registered to Blackhead, including a Ferrari, another Porsche, and another Bentley.\n<\/p>\n\n\n\n

According to the NPA report, Sodi initially entered a court-ordered arrangement regarding the seizure of his assets whereby the AFU would retain luxury properties to the value of R260 million for the purposes of a future confiscation order, and the vehicles were returned to him. \n<\/p>\n\n\n\n

The other R40 million was from assets of some of the other defendants.<\/p>\n\n\n\n

The state described the fraudulent scheme as one conceived by officials in the department to disburse substantial sums of money to selected suppliers and contractors to avoid the funds becoming unspent. \n<\/p>\n\n\n\n

The fraud features prominently in the State Capture Commission (Zondo Commission), particularly in the Part 4 Report released in April 2022.<\/p>\n","protected":false},"excerpt":{"rendered":"

Properties to the value of R32 million with links to the asbestos court case, was 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