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By Sihle Mlambo 
6h ago
Johannesburg – The Asset Forfeiture Unit has seized assets including Ferraris, Bentleys, and properties worth millions, in the high-profile Free State asbestos corruption case.
The seven defendants appeared in Bloemfontein Magistrates Court on Friday after they were arrested by the Hawks in KZN, Gauteng and Free State this week.
The seven defendants – Nthimotse Mokhesi, former HOD in the human settlements department, Mahlomola John Matlakala, supply chain director, Edwin Sodi, businessman, Seal Joseph Radebe, Kgotso Abel Manyike, businessman, Thabane Wiseman Zulu, former director – General of the Human Settlements Department, and Matawana Mlamleli, former Mayor of Mangaung and former MEC for Human Settlements, received bail of between 50,000 and 500,000 rand.
Most of the seized assets are owned by Sodi and his company, Blackhead Consulting.
In an affidavit, a Nkosiphendule Mradla, a special investigator for the AFU, detailed how the seven defendants, along with five companies, conspired to defraud the state out of hundreds of millions through the controversial Free State asbestos project.
The AFU says the contract should never have been awarded to Blackhead Consulting and Diamond Hill Trading in a joint venture as they were never a contracted party to the Gauteng Human Settlements Department.
The Free State DHS had approached the Gauteng DHS to participate in a Gauteng DHS contract regarding the audit and assessment, handling of hazardous materials removal, and asbestos project abatement in Free State Province. .
The process was outside the normal procurement process and it was an unsolicited offer.
The AFU said the request was specific in that Blackhead Consulting should be designated, but the Gauteng contract ended at the end of August 2014, but the Free State agreement was only signed on October 1, 2014, which that made the deal illegal.
The AFU contends that Free State DHS had to go through a competitive procurement process, but this was not done.
Despite this advice, the Free State DHS, led by Mokhesi, proceeded and appointed Blackhead Consulting and Diamond Hill in a joint venture (Blackhead Consulting JV) on October 1, 2014 to carry out the asbestos project in Free State province, period for which the Gauteng DHS contract had already ended, ”said the AFU.
The AFU also maintains that the company, along with Mastertrade, the company that it subcontracted to carry out the work at a cost of R44 million, did not have the competencies required for asbestos projects, which are regulated by law.
Mastertrade subcontracted the work required by the Free State government to the Ori Group for 21 million rand.
Mastertrade only paid the Ori Group an amount of R6.3 million and they never completed the work, the AFU said.
“The manipulation of the procurement process by defendants intentionally misrepresenting to DHS that a legal procurement process was followed, caused a huge financial loss to DHS and the State,” the investigator said in an affidavit. .
In the case of Mlamleli, the former MEC for human settlements, the AFU said it should have acted after the Auditor General compiled an audit of the department’s finances and noted that the contract between him and Sodi’s Blackhead Consulting and Diamond Hill was spotty. .
At that stage, only R91 million had been illegally paid to Blackhead Consulting and Diamond Hill and if she had acted, she could have prevented another R139 million from being paid to the entities.
“Mlamleli had a duty to act and stop the irregular acquisition and if it did, DHS would not have suffered an additional loss of R139m and Mlamleli clearly ignored the AG report and identified with the criminal activity that was being perpetuated through a fraudulent scheme of department officials and Sodi, Blackhead Consulting, Diamond Hill and others, ”the AFU said.
“It is for this reason that Mlamleli must be held accountable for his inaction and must be held accountable and take responsibility for the proceeds of the laundering he had the authority to stop,” the AFU said.
In his affidavit, the investigator detailed assets valued at more than 200 million rand that were owned by the seven defendants and their five co-defendants. These assets have been seized by the AFU.
EDWIN SODI AND BLACKHEAD CONSULTING
Edwin Sodi of Ruimsig, Roodepoort, owns a large number of properties and automobiles in his name and on behalf of several companies that he owns, including Blackhead Consulting.
The properties include a farm valued at R6 million in Ruimsig, Pretoria and a property valued at R1 m in Aanwins AH, Johannesburg.
Sodi is the sole director of Base Property Holdings (Pty) Ltd, which owns mortgage bonds valued at R40.5 million. Base Property Holdings also owns 10 property titles in Bryanston, Johannesburg.
His company, Blackhead Consulting, which also includes Hilton David Neville Sparks as a director, owns a R1.2 million property in Fourways Gardens, Johannesburg and a R1.2 million property in Aanwins AH, Johannesburg.
Sodi holds nearly 40 managerial positions in various private companies with interests in property, office supplies and construction, among others.
SODI CARS
Four vehicles that are registered to Sodi are valued at more than R10 million.
These include a black 2019 Porsche Cayenne S Coupe valued at R1.9m, a black 2002 Mercedes Benz C32 AMG valued at R100,000, a white 2017 Rolls Royce Ghost Family Dawn valued at R5.3m and a blue 2017 Bentley Continental Super Sports R2.8m convertible.
Sodi’s company, Blackhead Consulting, owns 25 motor vehicles valued at R12.4 million.
These vehicles include:
* a Ferrari Four F151 2017 red R3m,
* a 2004 silver Toyota Tazz valued at R55,000,
* a white Volkswagen VW250 Polo 2011 valued at R75,000,
* a white 2013 Chevrolet Utility 1.4 valued at R70,000,
* a white 2014 Volkswagen Polo Vivo valued at R67,000,
* a 2014 silver Volkswagen Polo valued at R67,000,
* a black 2014 Volkswagen Polo Vivo worth R67 000,
* a 2017 white Hino 500 Chassis Cab valued at R350,000,
* a white 2012 Nissan NP200 worth R65,000,
* a white 2012 Nissan NP200 valued at R65,000,
* a gray 2013 Porsche worth R650,000,
* a 2014 silver Hyundai I20 valued at R63,000,
* a 2013 Mercedes Benz G63 AMG valued at R1.2m,
* a 2014 white Ford Ranger valued at R129,000,
* a 2014 white Ford Ranger valued at R129,000,
* a 2014 white Ford Ranger valued at R129,000,
* a 2016 gray Ford Ranger valued at R300,000,
* a 2016 gray Ford Ranger valued at R300,000,
* a 2016 silver Ford Ranger valued at R300,000,
* a 2016 gray Ford Fiesta valued at R160,000,
* a 2016 gray Ford Ranger valued at R300,000,
There’s also a 2016 silver Ford Ranger valued at R300,000, a silver 2016 Ford Ranger R300,000, a white 2017 Bentley Continental GT Coupe valued at R2.8m, and a 2017 Mercedes Benz A217 S65 AMG valued at R1.5m.
The Asset Forfeiture Unit noted that Sodi had a strong financial position with a long-standing relationship with ABSA and had more than R96m in investments with the bank.
Blackhead Consulting’s books showed an operating profit of R15.5m, with R71m of capital, turnover increased from R197m to R292m and Sodi had savings of more than R25m in its ABSA bank accounts.
Sodi has four credit cards, a home loan account, an American Express card, four vehicle asset finance accounts, and a master debit card.
Blackhead Consulting also had several income-generating projects with the State, and some of them are still ongoing. The projects involve various government departments, national, provincial, state entities and municipal projects with the City of Tshwane and the City of Johannesburg.
SARAH ‘OLLY’ MATAWANA MLAMLELI
Mlamleli, a former mayor of Mangaung and a former MEC for human settlements, is a resident of Dan Pienaar, Bloemfontein.
He owns five properties and two cars in his name.
Mlamleli’s properties include a R960,000 property in Blue Ridge, Shellyvale Ext 7, a R675,000 property in Viljoenskroon, a R2.8m property in Shellyvale Ext 7, a R800,000 property in Uitsig, Bloemfontein , and she owns a 50% interest in a Viljoenskroon property with an undisclosed valuation.
In terms of cars, Mlamleli owns a 2010 beige AUDI Q7 valued at R250,000 and a red 2005 Toyota Hilux valued at R20,000.
He has active management positions in four private companies.
NTHIMOTSE MOKHESI
Mokhesi is the former department head of the Department of Human Settlements. He earned around R1.1m per year during his tenure.
Mokhesi’s registered address was Wild Olive Heights, Bloemfontein. He is also a trustee of the Likemo Family Trust, which has a business address registered with Vanderbijlpark.
The trust owns the Wild Olive Heights property, which is valued at R2.2m.
Mokhesi and his wife also own a property valued at R1m at Sasolburg Ext 3.
MOKHESI CARS
Mokhesi owns four cars valued at just over R660,000.
He also has seven active managerial positions in various entities.
“Based on the aforementioned employment history of Mokhesi, it is reasonable to conclude that he has generated savings for the employer’s retirement and, therefore, he is entitled to the pension benefit, therefore these benefits constitute realizable assets,” said the researcher.
SUFFERING JOHN MATLAKALA
Matlakala is the director of supply chain for the Department of Human Settlements of the Free State.
Matlakala and his wife, Dineo, along with Khauta Aarom Maloka, are trustees of the Tlaks Family Trust.
The trust owns the R1.2m property in Fichardpark, Bloemfontein, where he resides.
Matlakala also owns a brown 2011 Chevrolet Corsa pickup truck worth R15 500, a green 2012 Mercedes Benz W204, and a yellow 1986 Citi Golf (no ratings provided for two cars).
The AFU said that Matlakala’s assets, along with his pensions, could be confiscated.
“Based on the aforementioned employment history, it is reasonable to conclude that it has generated savings for retirement by the employer and therefore is entitled to the pension benefit, therefore these benefits constitute realizable assets.”
SEAL JOSEPH SYDNEY RADEBE
Radebe, who is from Fourways, also owns properties valued at over R760,000 in Phuthaditjhaba.
He owns a black 2015 Bentley Continental GT worth R2.9m and also has seven active management positions in various companies.
KGOTSO ABEL MANYIKE
Manyike of Ori Group, who lives in Centurion with his wife, Masekoai Mobu, owns a property valued at R760,000 in Clubview, Pretoria, along with a black 2007 Ford Focus valued at R25,000. He has at least five active management positions.
THABANE WISEMAN ZULU
Zulu, who lives in Pretoria Gardens, with his wife Khombisile, owns a property valued at R3.5m in The Wilds, Pretoria.
Zulu owns five cars valued at R1.75m
These include a gray 2011 BMW 3 Series ME Convertible worth R95,000, a white 2013 BMW 6 Series M6 Convertible worth R370,000, a 2013 white Range Rover worth R690,000, a gold 2014 Range Rover Sport valued at R600 000 and a red Honda from 1989 Balada
He also holds active management positions in three companies and is a trustee of the Siphosegugu Trust.
MESS
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