Madiba 'loot' returned

More than R4.1-million - money allegedly fraudulently diverted from funds meant for Nelson Mandela's memorial services - has been forfeited to the state.

The forfeited money is part of the nearly R6-million paid by Buffalo City municipality last year for the Mandela services.

Some of the metro's most senior officials were arrested in connection with the fraud allegations recently.

About three weeks ago the Grahamstown High Court froze the bank accounts of businesses belonging to Mzwandile Sokwali and his wife, Busisiwe Boti, and to Dean Fanoe and Viwe Vazi. The account of a business controlled by lawyer Zintle Nkuhlu was also frozen.

Executive mayor Zukiswa Ncitha, deputy mayor Temba Tinta, council Speaker Luleka Simon-Ndzele, senior councillor Sindiswa Gomba, ANC regional secretary Pumlani Mkolo and the director of the office of the mayor, Ondela Mahlangu, also had their accounts frozen.

Some of the business owners voluntarily transferred money to the Asset Forfeiture Unit so that their bank accounts could be unfrozen and they could continue to trade.

On Monday, Grahamstown High Court judge Jeremy Pickering ordered that the money be forfeited to the state.

National Prosecuting Authority national spokesman Nathi Mncube said the judge granted the unit a R4.17-million forfeiture order.

Mncube said the money will be deposited in the state's criminal assets recovery account and used to strengthen law enforcement.

Mncube said Vazi had repaid R899000 and Fanoe R1.3-million.

"Ntozini [Sokwali] and Boti repaid R1.893-million, [which had been] distributed to Sizisa Ukhanyo and to Victory Ticket," Mncube said.

"The outstanding balance will be recouped using restraint and prosecution processes."

Mncube said that Nkuhlu had not repaid the money she allegedly received through the Lily Rose Trust.

Mncube said MT Zicina, who received R24100, and Nosiphiwe Mati, who received R50000, have also not made repayments.

Mati, Sokwali, Boti, Fanoe, Vazi, Nkuhlu, Mkolo, Ncitha, Tinta, Simon-Ndzele, Gomba and Mahlangu are facing fraud, corruption, theft and money-laundering charges relating to the payments.

A provisional date for the three-week trial has been set for April. The state alleges that over R5.9-million was illicitly disbursed by, or to, the accused.

Mncube said the forfeiture order stemmed from allegations of fraud, theft and the unlawful payment of R5.895-million by the municipality to Victory Ticket for the transportation of mourners to Mandela services in Buffalo City and Port Elizabeth.

"The tender process that was followed was rigged," Mncube said.

He said the Buffalo City council resolved to disburse R10-million on the basis of allegedly misleading and unlawful representations by Ncitha.

Ncitha allegedly misled the council into believing that the provincial government had agreed that Buffalo City would fund the memorial events.

"Part of the R5.895-million [the municipality] unlawfully paid to Victory Ticket was distributed to other people who had no right to receive it or who did not render any services.

"Victory Ticket paid R350000 to the Lily Rose Trust, R1.39-million to Mantella Trading, for T-shirts, and R899000 to Forty Wings," Mncube said.

Lawyer Marius Wolmarans appeared in the High Court in the forfeiture application for the national director of public prosecutions.

The application was not opposed.