Staff Reporter.
Immovable property and top-of-the-range vehicles belonging to the accused in the Mhlathuze Water Board multi-million rand fraud case were seized by the Asset Forfeiture Unit on Friday.
The board’s CEO, Mthokozisi Duze, and its CFO, Babongile Mnyandu, together with attorney, Sithembelo Ralph Mhlanga, face fraud, and corruption charges.
They are accused of having circumvented supply chain management protocols to channel R37 million worth of tenders to Mhlanga’s company, Mhlanga Incorporated.
It is reported that Duze and Mnyandu also received kickbacks.
A multi-disciplinary task team, led by the Asset Forfeiture Unit (AFU), carried out the seizures on Friday.
The court-appointed curator was ordered to locate property to the value of R37 million in total.
National Prosecuting Authority (NPA) spokesperson, Natasha Ramkisson-Kara said the assets would be held under restraint until the criminal matter was finalised.
“The assets seized include immovable properties located in Umhlanga Ridge, Ballito, Mthunzini Estate, Ashburton, Pietermaritzburg, Richards Bay, and Cape Town. Luxury Vehicles such as Range Rovers, BMW X6, Mercedes-Benz V-Class, Jaguar, and a Harley Davidson motorbike. The order also includes assets hidden in trusts and companies, and cash in bank accounts.”
One of the businesses seized is the famous Spitz nightclub in Pietermaritzburg which allegedly belongs to Duze.
At some point, it has been alleged that Mhlanga made a dubious payment for a birthday that cost well over half a million.
When questioned about the payment by Hawks investigators, Mhlanga allegedly said he paid for booze for guests of one of his workers (a junior lawyer) who was hosting a birthday party for his wife.
The explanation was thrown out, as it was believed that Mhlanga was making a payment to Duze for his role in approving the tenders.