Bloem court rules on R32 million asbestos corruption scheme
On 13 March 2025, the Bloemfontein High Court made a ruling on properties linked to an asbestos corruption scheme. The court granted the National Prosecuting Authority's Asset Forfeiture Unit, together with Directorate for Priority Crimes Investigation, a Preservation Order.
The order stated that six immovable properties valued at R32 million and a Mercedes-Benz G63 AMG worth R2 million, would be seized.
'The AFU believes the properties are proceeds of unlawful activities of theft, fraud, corruption and money laundering perpetuated against the Free State Department of Human Settlements', said NPA spokesperson, advocate Mthunzi Mhaga.
All the alleged perpetrators have direct ties to the Free State Department of Human Settlements. They had access to monies during their time at the department.
'The involved individuals, companies and trusts are alleged to have engaged in a complex web of financial flows, designed to strip the FSDHS of its much-needed resources', Mhaga continued.
According to Mhaga, the perpetrators were able to move the proceeds of crime through attorneys, real estate agencies and high-end motor dealers. He said the AFU has shown through financial flows that the assets were purchased directly with monies linked to the FSDHS.
'This preservation order follows a Restraint Order of R300-million granted to AFU by the Free State High Court – Bloemfontein in September 2020', said Mhaga.
Mhaga emphasised, 'The preservation order will effectively put a freeze on and thwart any efforts to dissipate the very assets sought to be preserved. This will provide for the subsequent forfeiture of these proceeds of crime to the state'.
Mhaga said various persons and entities have since been criminally charged with multiple charges of fraud, theft, money laundering and corruption. They were also charged with contraventions of the Public Finance Management Act. Additionally, they were charged with contraventions of various sections of the Asbestos Regulations. They are set to appear before the Bloemfontein High Court for trial on 15 April 2025.
The NPA said pursuing legal action was an ongoing response to the State Capture Commission's recommendation. It was recommended that they recover monies siphoned through an unlawful contract linked to the Free State Asbestos Eradication Project.
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1
Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
4 hours ago
- IOL News
How informal recycling provides a lifeline for South Africa's waste pickers
Waste collectors play an important role and save municipalities R300 million to R750 million annually. Image: Nokuthula Mbatha / Independent Newspapers The high unemployment rate, coupled with limited formal sector opportunities, has pushed many individuals, such as Thabiso Leburu* (not his real name), into informal recycling as a means of survival. Leburu, a former ArcelorMittal employee, said this was an opportunity to generate income and feed his family after his contract ended in 2010. Leburu and other recyclers are camping at a dumping site near the Boipatong landfill site, in the Vaal, where they are attending to every vehicle dropping waste. He said this is their daily routine. They recycle wood, plastics, cans, and bottles. The high unemployment rate, reaching 32.9% in the first quarter of 2025, is driving many to seek alternative income through activities such as waste picking. This informal sector, often referred to as 'survivalist entrepreneurs', plays a crucial role in waste management and contributes to the livelihoods of thousands. The Department of Environmental Affairs' report on the determination of the extent and role of waste picking estimates that there are approximately 62,147 reclaimers in South Africa. However, the department did respond at the time of publication. According to the case study by the Socio-Economic Rights Institute of South Africa (Seri), the sector recovers an estimated 80% to 90% of paper and packaging materials on an annual basis. Diverting these recyclables saves municipalities R300 million to R750 million annually. The organisation said it was also estimated that the South African economy realised a 52.6% recycling rate for paper and packaging waste because of the work of recyclers. Despite their contribution and resourcefulness, informal recyclers remain poor and marginalised. They are often associated with crime, drug abuse, and lawlessness, a perception perpetuated by exclusionary waste management policies and the treatment they receive from South Africans they encounter. Most often, the informal recyclers do not have access to food of nutritional value or any food at all. This means they often find themselves in the struggle to escape the spiral of food insecurity as they are unable to earn a decent living. Leburu, who is the father of six children, said the sector has changed their lives for the better, adding that many could have been exposed to criminal activities. 'That little money I receive in a day could help me to put bread on the table,' said the 54-year-old, adding that he makes between R30 and R400 a day. He said he used to make good money before the closure of the Boipatong landfill site. The landfill site was closed due to non-adherence to licence conditions, leading to increased illegal dumping in the area. 'Sometimes we don't make money at all. And because we cannot let our kids sleep with empty stomachs, we take stale food here. All we want to see is our kids and families being happy,' he said. His friend, who also requested to remain anonymous, said he has been employed and has been in this sector since 2001. He said this is because he has to feed his family of three children. Seri said the sector continues to attract large numbers of people as it offers low barriers to entry due to limited opportunities. This was despite the occupational hazards and health risks associated with informal recycling. The organisation said many recyclers have some education and skills but are unable to find employment outside of the reclaiming industry. Seri added that 25% of reclaimers in South Africa have completed matric, and some have engaged in formal tertiary studies. The organisation visited the landfill in Orange Farm (known as the Palm Springs landfill) where about 300 people from the area and nearby surrounding areas pick and sort waste. The organisation said these reclaimers deal with several challenges on a day-to-day basis, adding that the safety of the landfill was a concern, especially for women. 'Reclaimers wear no protective clothing, have no access to water and toilets, and are exposed to dangerous chemicals and materials.' 'In addition, reclaimers do not have access to safety equipment and are often harassed by security guards and police.' [email protected]
Eyewitness News
6 hours ago
- Eyewitness News
State to appeal ruling on Moroadi Cholota's extradition from US
JOHANNESBURG - The State in the Free State asbestos trial has confirmed that it plans to appeal the Bloemfontein High Court judgment that overturned Moroadi Cholota's extradition from the US. Cholota, who is the former personal assistant of former Free State Premier Ace Magashule, was let off on a technicality when the court ruled that her 2024 extradition was unlawful and unconstitutional on Tuesday. Before then, she was among more than a dozen accused facing corruption charges in the R255 million asbestos case. ALSO READ: • Lawyer says it's up to Moroadi Cholota on whether she'll sue State for her unlawful extradition from US • FS asbestos corruption trial resumes in court without Cholota • State prosecutors and investigators' conduct under scrutiny after Cholota extradition overturned At the start of Wednesday's proceedings, State prosecutor, Advocate Johan de Nysschen, asked for another postponement to deal with the possible appeal. "The prima facie view is that we shall appeal this judgment, either by joining the Schultz matter, which is already before the Constitutional Court, or by approaching the SCA because we are of the view that the facts of this matter and the Schultz matter differ, so the Supreme Court of Appeal could come to a different conclusion in this matter." A frustrated Magashule stood up before court and protested the request. "The State has been saying it's ready but every time there is a postponement. It looks like we don't have rights because even next year, there will be postponements."
IOL News
12 hours ago
- IOL News
Overturned Cholota extradition will not affect Ace Magashule asbestos trial
The National Prosecuting Authority is considering its options after Moroadi Cholota's extradition was overturned Image: Supplied The National Prosecuting Authority (NPA) says the Bloemfontein High Court judgment upholding Moroadi Cholota's special plea of lack of jurisdiction will not impact the trial of the rest of the accused. It will meanwhile consider its options, including possibly appealing against the judgment. 'The NPA will specifically consider options to appeal considering the potential impact of the judgment in respect of the case against Ms Cholota, and broader extradition processes,' NPA spokesperson Mthunzi Mhaga said. He explained that it should be noted that this judgment has no bearing on the trial against the other accused that is expected to resume on Wednesday (June 4) as Cholota was an accused person and not a state witness. The NPA remains confident in the strength of its case against the accused and said it was ready to proceed when the trial resumes. 'The members of the prosecuting team always acted with the highest standards of ethical conduct, guided by the evidence and information available at any given time,' Mhaga said. The court found on Tuesday that it has no jurisdiction to try the former Free State premier Ace Magashule's personal assistant in the R255-million asbestos case, as her extradition from the US was unlawful. The judge upheld her special plea regarding the asbestos removal tender following a trial-within-a trial to ascertain whether Cholota's extradition process by the South African authorities was done lawfully. While a Free State director of Public Prosecutions applied for Cholota's extradition, Judge Philip Loubser found that this power lies with the Justice Minister and with the National Prosecuting Authority. Thus, he said, the extradition was not done lawfully and it is not valid. 'This court does not have the power to try you. You are free to leave,' the judge told Cholota. Cholota was one of 18 accused in the high-profile trial where the accused are facing a host of charges relating to alleged fraud, corruption and money laundering. All of the accused had pleaded not guilty and denied any involvement in the allegations against them. Cholota was studying in the US at the time of her extradition and was at first regarded as a state witness, before it was decided to add her as accused no 17 to the criminal trial. In challenging her extradition, Cholota claimed that the State had lied or misrepresented to the US authorities that there was a case for her to answer in South Africa. In delivering his judgment, Judge Loubser said there was no need to go into these arguments, as he found the extradition process was wrong in law. The only two witnesses who testified during the extradition challenge were Hawks officials. The Cholota camp did not call any witnesses.
