R52.6 Million in Assets Seized in PPE Corruption Crackdown in Mpumalanga

The seized assets belong to employees of the Mpumalanga Public Works and service providers doing business with the department.

The Asset Forfeiture Unit (AFU) of the National Prosecuting Authority (NPA), the Special Investigating Unit (SIU), and the Directorate for Priority Crime Investigation (Hawks) have seized assets and properties valued at approximately R52.6 million. These assets are linked to an alleged corruption network involving senior officials, service providers, and entities within the Mpumalanga Department of Public Works.

The seizure follows a preservation court order from the High Court of South Africa, Mpumalanga Division, Mbombela, obtained by the AFU. This order allows the AFU, SIU, and Hawks to seize assets in Mpumalanga, Gauteng, the North West, and Western Cape provinces associated with personal protective equipment (PPE) corruption.

The operation targeted 34 locations and involved capturing inventories of 29 properties, 31 vehicles, and a boat trailer. The court order freezes properties including houses, electronics, cars, household items, jewellery, arms, ammunition, bank accounts, salaries, and bail monies. Internet banking privileges for the accused have been removed as of July 23, 2024.

The seized assets belong to employees of the Mpumalanga Public Works and service providers doing business with the department. The order restrains the following individuals and entities:

Department Officials:

• Macdonald Sigudla
• Dorries Mbatha
• Bandile Ngcobo
• Godisamang Molotsane
• Kobus Mkhabela
• Sipho Monareng

Service Providers:

Maganeleni Trading and Projects (Pty) Ltd

Anthony Maganeleng Mashigo

Gladness Gugu Bulunga

Thandolwam Transport and Projects (Pty) Ltd

Mbombela Integrated Waste Management Services (Pty) Ltd

Orapaleng Molotsane

Tsidi Susan Sedibe

Superia Services Trading CC

Whisky Delisa Khumalo

Makulaspan Construction (Pty) Ltd

Thabang Lebo Andiswa Dibakoane

Ntando Ms Trading (Pty) Ltd

Bongani Edward Lukhele

Ligabho Le'Africa Properties (Pty) Ltd

Oratile Molotsane

Ezrom Molotsane

The order is based on Section 26 of the Prevention of Organised Crime Act, 121 of 1998, which prevents individuals from dissipating their assets before a confiscation order is made following a conviction.

The SIU's investigation into PPE contracts related to the COVID-19 pandemic revealed that senior management officials awarded multi-million Rand PPE tenders to suppliers who did not deliver the services. These suppliers paid substantial kickbacks to senior management officials and their family members in various ways. The investigation uncovered multiple instances of corruption, fraud, theft, and money laundering committed by senior managers and service providers during the COVID-19 period.

In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU referred criminal evidence to the NPA and Hawks for further investigation, leading to the arrest of department officials and service providers. These individuals face criminal charges related to PPE procurement and will appear in the Commercial Crimes Court on charges of corruption, fraud, and money laundering.

President Cyril Ramaphosa directed the SIU, in terms of Proclamation R23 of 2020, to investigate allegations of corruption, maladministration, malpractice, and payments made by State institutions relating to PPE procurement and the conduct of State employees.