GAUTENG – A Special Investigating Unit (SIU) investigation has uncovered a fraudulent scheme involving the unlawful transfer of 208 municipal stands in Villa Liza township, near Boksburg, resulting in an estimated R58 million loss to the Ekurhuleni Municipality.
According to a report by the South African Government, the scheme involved the illegal transfer of 208 stands in Villa Liza township into the hands of private individuals without a council resolution and without the municipality receiving any benefit.
SIU head Leonard Lekgetho said at a media briefing on 16 September, “President Cyril Ramaphosa authorised this investigation in October 2024 under Proclamation No. 195 of 2024. The investigation examined serious maladministration in the transfer of 221 vacant stands in Villa Liza Township, near Boksburg.”
“It assessed actions that violated applicable legislation, unlawful conduct by municipal employees or agents, and the potential losses suffered by the municipality or the State arising from the land transfer.”
SIU uncovers 208 unlawful land transfers
The investigation uncovered:
- Fraudulent transfers of 208 of the 221 stands between 2018 and 2022. The transfers were carried out without council resolutions or lawful authority.
- One deceased person allegedly acted as the so-called estate agent. The SIU confirmed through the Department of Home Affairs that the agent died on 10 January 2022.
- A conveyancing firm that was not on the municipality’s panel of approved attorneys lodged fraudulent documents at the Johannesburg Deeds Office. The firm, Moki Attorneys Incorporated, is owned by Kabelo Valentine Moki.
- The firm certified that all the documents necessary for the transfer were true and correct upon submission to the Deeds Office.
- Forged rates clearance certificates and fabricated powers of attorney were used to deceive the system.
- The conveyancer and his spouse, Makhosazana Emelda Moki, personally benefited by acquiring 73 stands through Velamelda Trust and Mokolane Investments.
- Each stand was sold for R18,000, according to the Deeds Office. The municipal valuation ranged from R80,000 to R3.7 million. The stands were later resold for an average of R250,000 each.
- Some stands have been developed by the new owners, but the municipality derives no revenue from those properties.
Deceased ‘agent’ allegedly linked to scheme
“The ‘agent’ would identify unallocated land owned by the municipality in Villa Liza Township. The ‘agent’ would then orchestrate a fraudulent sale and transfer of this municipal land to private hands,” said Lekgetho.
“This scheme involved the ‘agent’ collaborating with the conveyancing firm, Moki Attorneys. Moki Attorneys, together with the agent, played a key role in falsifying documents for the Deeds Office’s registration and transfer of land to private hands.”
Cash payments complicated investigation
Lekgetho noted that the SIU had not found any evidence indicating the participation of Deeds Office officials in the scheme.
“Payments for the stands were made in cash, complicating the tracing of the financial transactions. There is no evidence indicating that municipal officials participated in the scheme,” said Lekgetho.
“This matter has been referred to the National Prosecuting Authority for further action or potential prosecution, which will initiate a criminal investigation to ensure that all parties involved are held criminally accountable.”
Lekgetho stated that the SIU had taken several actions based on the findings of the investigation.
These include obtaining an interim interdict preventing the occupants or registered owners of the 208 stands from selling, transferring, marketing, disposing of, leasing, donating, developing or otherwise dealing with the properties.
On 18 September, the unit will also approach the Special Tribunal to file an application to review and set aside the unlawful transfers and recover losses incurred by the municipality.
SIU seeks to reverse unlawful transfers
“We have [also] submitted 208 referrals in respect of the fraud to the National Prosecuting Authority for possible prosecution,” said Lekgetho.
“Regarding the professional consequences management of Moki Attorneys’ matter, the firm has been referred to the Legal Practice Council. Referrals have been made to the South African Revenue Service for investigation into undeclared income and tax irregularities.
“The SIU has also submitted 147 referrals to the Financial Intelligence Centre [FIC] due to the conveyancer’s non-compliance with FICA legislation while effecting the unlawful transfers.”
Furthermore, recommendations have also been made to the municipality.
These include:
- Proper verification processes must be implemented by the municipality before the registration of municipal services for all new properties.
- The municipality must maintain, update and verify its asset register, ensuring that appropriate and effective control measures are in place to manage its immovable property.
- The municipality must conduct regular inspections of municipal-owned land to monitor these properties effectively and prevent future theft and loss.
- An annual municipal audit should be conducted for immovable municipal assets.
- The municipality must consider establishing a memorandum of understanding (MOU) with the Deeds Registration Office to place safeguards on any transfers of municipal land.
Municipality urged to strengthen safeguards
“Fraudulent schemes of this nature not only erode public trust but also deprive communities of essential development opportunities, thereby undermining municipalities’ constitutional mandate to serve their constituents effectively,” said Lekgetho.
“This investigation goes beyond mere investigation; it reveals a narrative of betrayal, misappropriation and unlawful expropriation of public assets intended to benefit local communities.
“We remain committed to collaborating with law enforcement, regulatory agencies and other relevant entities to recover financial losses and restore these properties to the rightful owners, the people of Ekurhuleni.”
