The Free State High Court in Bloemfontein has granted a final forfeiture order for six luxury properties and a Mercedes-Benz G63 AMG, collectively valued at approximately R32 million, in connection with the irregular R230-million asbestos scandal.

• The Free State High Court granted a final forfeiture order for six luxury properties and a Mercedes-Benz G63 AMG, worth R32 million, linked to the R230 million asbestos scandal.
• The forfeited assets included high-value properties in Sandton, Hartbeespoort, Wonderboom, Randburg, and Parys.
• The court ruled the assets were proceeds of unlawful activities, including fraud, corruption, and money laundering.

The Free State High Court in Bloemfontein has granted a final forfeiture order for six luxury properties and a Mercedes-Benz G63 AMG, collectively valued at approximately R32 million, in connection with the irregular R230 million asbestos scandal.

The court order, issued on Friday, found that the assets were proceeds of unlawful activities, including fraud, corruption, theft, violations of the Public Finance Management Act (PFMA), and money laundering.

The court also found that the properties and vehicle were “instrumentalities” used in money laundering offences tied to the controversial asbestos tender.

“Substantial funds paid by the Free State Department of Human Settlements (FSDHS) were unlawfully siphoned and laundered. The property was derived, directly or indirectly, from those funds. The trusts functioned as conduits to hold and disguise the proceeds,” the court documents read.

The case emanates from a scheme that allegedly saw a R255-million project to remove asbestos roofing from poor homes across the Free State, irregularly channelled to a joint venture involving Edwin Sodi’s Blackhead Consulting in 2014, with government officials plied with kickbacks, and the work never completed.

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Instead, the contract was subcontracted at significantly reduced amounts, with the majority of the funds diverted through various entities, personal accounts, and trusts to purchase luxury assets.

Judge Mareena Opperman ruled that the respondents had failed to provide evidence of the lawful acquisition of these assets.

“The respondents have not provided documentary proof or any other proof demonstrating an independent lawful source for the funds used to acquire the property,” she said.

Opperman added that the respondents had also not “meaningfully” engaged with the detailed financial evidence presented by the National Director of Public Prosecutions (NDPP).

She said:

The forfeited assets included high-value properties in Sandton, Hartbeespoort, Wonderboom, Randburg, and Parys, as well as the Mercedes-Benz G63 AMG, purchased in cash.

These assets were registered under trusts linked to people associated with the asbestos tender, including the McGina Property Trust, the Villa Castello Residence Trust, and the SAB Family Trust.

National Prosecuting Authority spokesperson Kaizer Kganyago said that detailed investigations had revealed classic money laundering techniques, including the rapid transfer of funds from the department to associated companies and people under the guise of legitimate services.

Kganyago added that these funds were then funnelled through complex financial channels to acquire properties and vehicles in cash.

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He said that the forfeiture marked a significant milestone in the broader investigation into the asbestos tender scandal.

“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.”

Advocate Andy Mothibi, the National Director of Public Prosecutions, commended the collaboration between the NPA, the Directorate for Priority Crime Investigation (Hawks), and the Special Investigating Unit (SIU).