By Lehlohonolo Lehana.
The SIU and Transnet announced on Friday that they had obtained a preservation order from the Special Tribunal to freeze around R20.3 million worth of movable and immovable properties.
This action is part of an ongoing investigation into three irregular contracts with Transnet SOC Limited for property valuation services.
The contracts are valued at R89 million.
The order prohibits Humphrey Tshepo Moyo, Neo Shown Matlala, MM Real Estate (Pty) Ltd, and any other parties from renting, selling, giving away, or making any changes to the frozen properties until the legal case is concluded.
The preserved luxury vehicles include a Porsche 718 Boxster, a Mercedes-Benz V250d Avantgarde 3.2 T, a Volkswagen Amarok, a Toyota Hilux linked to MM Real Estate (Pty) Ltd or a linked individual, a Volkswagen Amarok linked to Moyo, a Porsche Macan S Diesel linked to Matlala, and a Mercedes-Benz C200 linked to HTM (Pty) Ltd.
The order preserved several properties, including one in Broadacres Extension 11 Township, apartments in Fourways Extensions 54 and 24, an apartment in Bryanston Extension 7 linked to S Mabuza Properties (Pty) Ltd and four office units in Vanderbijlpark linked to Ladybird Business Hive.
The SIU was appointed by Transnet to investigate several questionable transactions related to Transnet Property. Totalling R89 million, the contracts were granted in 2019, 2021 and 2022.
“The order interdicts MM Real Estate (Pty) Ltd, Humphrey Tshepo Moyo, Neo Shown Matlala and any other party from selling, disposing, leasing, transferring, encumbering (including by granting rights of retention), transferring, donating, or dealing in any manner whatsoever to the frozen properties, pending the finalisation of civil proceedings,” the SIU said in a statement.
The corruption busting unit explained that its investigation has “uncovered significant irregularities in the awarding of three contracts for property valuation services to Transnet”.
“Transnet had referred various suspicious contracts involving Transnet Property to the SIU for further investigation. The contracts, awarded in 2019, 2021, and 2022, have a combined value of R89 million.
“Working closely with Transnet, the SIU’s investigation revealed serious flaws in the procurement processes, raising concerns about compliance with supply chain management regulations and the possibility of undue influence in the awarding of these contracts.
“Additionally, the SIU and Transnet reasonably believe that Transnet may not have received full and fair value for the payments made under the disputed contracts,”the unit said.
Any evidence of criminal activity will be referred to the National Prosecuting Authority for further processing.
Meanwhile Transnet, will run out of money for operations and debt-servicing within three months unless it gets a government bailout, according to Moody’s Ratings Agency.
The ratings firm has placed Transnet on review for a possible credit downgrade, citing concerns over its “unsustainable” capital structure, deteriorating liquidity position, slow pace of operational improvements and absence of support from the government.