Richards Bay - The NPA's Asset Forfeiture Unit (AFU) has seized assets worth R37 million belonging to the three main suspects in the high-profile Mhlathuze Water board corruption trial.
The assets include luxurious homes in Ballito, Mthunzini, Pietermaritzburg, uMhlanga and Cape Town jointly belonging to Mthokozisi Duze (former CEO of Mhlathuze Water), Babongile Mnyandu (former Chief Financial Officer of Mhlathuze Water) and Durban lawyer, Ralph Sithembelo Mhlanga.
They are all out on bail.
The seized assets include luxury vehicles, bikes, money in bank accounts and assets hidden in opaquely registered and owned family trusts.
Natasha Kara, the spokesperson of the National Prosecuting Authority in KwaZulu-Natal, said this relates to allegations against Duze, Mnyandu and Mhlanga, who allegedly acted in concert with each other to circumvent the outcome of supply chain management protocols of the water board.
This was in favour of the award of several orders to Mhlanga Incorporated, a law firm owned by Mhlanga.
The Mhlatuze Water Board undertook a supply chain management process to appoint a panel of service providers to render legal services to the water board.
The approved budget for the panel was unlawfully increased by 640%, allegedly by Duze and Mnyandu and they later signed off payments.
They then unlawfully awarded tenders valued at approximately R37 million to one law firm (Mhlanga Incorporated) and excluded 15 other law firms.
In return, it is alleged that Duze and Mnyandu also received undue benefits (including cash bribes and luxury trips within South Africa and overseas) from the said law firm during the period that the CEO and CFO had processed/approved the award of tenders to the said firm, Kara said.
The court-appointed curator bonis has been ordered to locate property to the value of R37 million – equivalent to the money lost through corruption.
"The assets seized today include: immovable property located in uMhlanga Ridge, Ballito, Mthunzini Estate (where Duze owns the house mentioned in a whistle-blower report), Ashburton, Pietermaritzburg, Richards Bay and Cape Town.
"Luxury vehicles such as Range Rovers, BMW X6, Mercedes V class, Jaguar and a Harley Davidson motorcycle.
"The order also includes assets hidden in trusts and companies, and cash in bank accounts.
"The assets will be held under restraint pending the outcome of the criminal matter which returns to court on December 6, 2022.
"The order was obtained by Senior State advocate Beverly Mothilall," Kara said in a statement on Friday.
IOL understands that 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.
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