In a decisive move against corruption and financial misconduct, the Free State Division of the High Court in Bloemfontein granted a Preservation Order on 13 March 2025 in favour of the National Prosecuting Authority’s (NPA) Asset Forfeiture Unit (AFU).
By Noko Mashilo
The order, secured in collaboration with the Directorate for Priority Crime Investigation (DPCI), known as the Hawks, allows for the preservation of six immovable properties valued at R32 million, along with a Mercedes-Benz G63 AMG purchased in cash for R2 million. These high-end assets are alleged to be the proceeds of a large-scale corruption and money laundering scheme involving the Free State Department of Human Settlements (FSDHS).
According to the AFU, the assets were acquired through unlawful activities, including theft, fraud, corruption, and money laundering, executed through a sophisticated network of individuals, companies, and trusts. The scheme is said to have involved the diversion of public funds from the FSDHS using a trail of intermediaries such as legal firms, real estate agents, and luxury vehicle dealerships. Financial analysis presented to the court demonstrated that the preserved properties were directly purchased using funds misappropriated from the department.
This Preservation Order builds on an earlier Restraint Order of R300 million, issued by the same court in September 2020, also in connection with the Free State asbestos corruption case. The newly granted order is designed to prevent the dissipation of the assets and ensure they remain available for potential forfeiture to the state.
A number of individuals and entities implicated in the scheme are currently facing trial at the Free State High Court. They have been charged with a range of offences, including fraud, theft, corruption, money laundering, and breaches of the Public Finance Management Act (PFMA) and Asbestos Regulations. The trial began on 15 April 2025.
“This preservation order reflects the NPA’s unwavering commitment to holding those responsible for grand corruption accountable and ensuring that stolen public funds are recovered and returned to the state,” said Advocate Mthunzi Mhaga, NPA National Spokesperson.
This legal action forms part of the NPA’s broader strategy to recover public funds and enforce accountability, aligning with the recommendations of the State Capture Commission. The commission had specifically advised the recovery of funds linked to the unlawful Free State Asbestos Eradication Project contract.
The preservation order represents a strong statement by the state on its commitment to dismantling corrupt networks and restoring integrity in public service delivery.
