By Lehlohonolo Lehana.
The Special Investigating Unit (SIU) secured a preservation order from the Special Tribunal ordering the preservation of two multimillion-rand properties linked to former Passenger Rail Agency of South Africa (PRASA) Group Chief Executive Officer (GCEO), Tshepo Lucky Montana.
The order prohibits Montana from selling, transferring, leasing, encumbering or otherwise dealing with the properties pending the final determination of SIU’s civil proceedings.
Preserved assets comprise a property in Hurlingham in Johannesburg purchased at R13,5 million, and a property in Waterkloof in Pretoria purchased at R2,25 million, stated Selby Makgotho, SIU spokesperson, in a media statement on Sunday, 26 July.
The Tribunal further directed the Registrar of Deeds to endorse the title deeds with caveats to prevent any unauthorised transactions involving the properties.
This preservation order follows an SIU investigation which uncovered a direct and uninterrupted money trail linking the acquisition of both properties to proceeds derived from association with Prasa’s R5,6 billion Integrated Security Access Management System (Isams) contract awarded to Siyangena Technologies (Pty) Ltd, a subsidiary of TMM Holdings.
PRASA awarded the first phase of the contract to Siyangena on April 1, 2011, for R1.96 billion. Four contracts, including extensions, were concluded between the rail agency and the company, taking their total value to R5.63 billion by April 2016.
The SIU said its investigation found that Montana’s lawful income could not explain the acquisition of the two properties.
“The SIU’s investigation found that Montana’s legitimate income could not account for the purchase of either property now subjected to a preservation order,” Makgotho said.
Investigators traced funds used to acquire the properties through companies associated with the TMM group and Precise Trade and Invest 02 (Pty) Ltd, whose director also acted as legal representative for the TMM Group.
Regarding the Waterkloof property, the SIU found that Precise Trade and Invest received R1.85 million from ESS (Pty) Ltd, a TMM-linked company, and R4 million from TMM Holdings on June 18, 2014.
Shortly thereafter, the company transferred R2.25 million to attorneys handling the property transfer, enabling the purchase of the Pretoria property in Montana’s name.
The investigation also traced the purchase of the Hurlingham property through a complex series of transactions involving Precise Trade and Invest, Botswana-based Midtownbrace (Pty) Ltd and TMM Holdings.
“The SIU welcomes the Tribunal order and regards the decision as an important step in safeguarding assets pending the finalisation of civil recovery proceedings,” added Mokgothu.
“The Unit remains committed to recovering financial losses suffered by the State, holding those responsible accountable, and protecting public resources from corruption.”
Meanwhile Arena Holdings has reinstated Sunday Times editor Makhudu Sefara following the conclusion of its independent investigation.
Arena Holdings said the investigation had “found no evidence that the R550,000 paid to Unscripted Communication was diverted, misappropriated or received without services being rendered”. Nor was there evidence of misconduct by Sefara.
The SIU investigation traced payments of R900,000 to Black Dungaree and R550,000 to Unscripted Communications, Sefara’s company.