NPA seizes R32 million in assets linked to asbestos scandal

Zuko Komisa

The High Court has granted a final forfeiture order for six luxury properties and a Mercedes-Benz G63 AMG valued at R32 million.
The assets were found to be the proceeds of a fraudulent R230 million Free State asbestos roofing tender awarded in 2014.
Proceeds from the sale of these assets will be deposited into the Criminal Assets Recovery Account (CARA) to benefit affected communities.

The National Prosecuting Authority (NPA) has secured a significant legal victory following a final forfeiture order from the Free State Division of the High Court.

The order authorises the state to seize luxury assets worth approximately R32 million, which were acquired through the infamous Free State asbestos tender scandal. The court ruled that these assets, which include a high-end Mercedes-Benz and properties across Sandton and Hartbeespoort, were the direct proceeds of fraud, money laundering, and corruption.

The investigation revealed a classic money laundering scheme involving the “placement, layering, and integration” of illicit funds.

In 2014, a joint venture was irregularly awarded a R255 million contract to identify and remove asbestos roofing. However, the work was largely ignored while the department paid out R230 million. These funds were then diverted through complex financial channels and trusts to purchase luxury real estate and vehicles in cash, bypassing legitimate procurement processes.

The court dismissed technical defences raised by the respondents, who failed to provide any credible evidence of a legitimate source of funding for their acquisitions. Because this is a civil forfeiture under the Prevention of Organised Crime Act (POCA), the order is distinct from criminal proceedings and does not require a prior conviction.

The National Director of Public Prosecutions, Advocate Andy Mothibi, praised the collaboration between the NPA, the Hawks, and the Special Investigating Unit (SIU) in dismantling this criminal network.

The forfeited assets will now be sold, with the proceeds used to bolster law enforcement and support the communities whose service delivery was undermined by the scandal.