News Desk Reporter
A probe into municipal land in Ekurhuleni has uncovered a multi-million-rand fraud involving hundreds of vacant stands in Villa Liza, near Boksburg.
The Special Investigating Unit says 208 stands worth about R58 million were transferred into private hands between 2018 and 2022.
SIU head Leonard Lekgetho disclosed this during a media briefing yesterday.
“The SIU investigation into the affairs of Ekurhuleni Municipality has uncovered the fraudulent transfer of municipal land valued at R58 million into private hands between 2018 and 2022,” Lekgetho said.
He said the transfers were done without council resolutions or lawful authority.
The municipality also received no money from the transactions.
The investigation was authorised by President Cyril Ramaphosa in October 2024. It covered 221 vacant stands and examined possible maladministration, unlawful conduct and financial losses.
Lekgetho said the investigation had been completed, with the final report submitted to the Presidency in July.
The SIU found that a person presented as an estate agent was involved in the transactions, despite having died in January 2022.
“The SIU confirmed through the Department of Home Affairs that the agent passed away on 10 January 2022,” Lekgetho said.
Investigators also found that Moki Attorneys Incorporated handled the conveyancing despite not being on the municipality’s approved panel.
The firm is owned by Kabelo Valentine Moki.
Lekgetho said forged rates clearance certificates and fabricated powers of attorney were used during the transfers.
“Forged rates clearance certificates and fabricated powers of attorney were used to deceive the system,” he said.
The investigation found that Moki and his wife, Makhosazana Emelda Moki, acquired 73 stands through the Velamelda Trust and Mokolane Investments.
Deeds Office records showed the stands were sold for R18,000 each.
Municipal valuations ranged from R80,000 to R3.7 million.
The properties were later resold for an average of R250,000 each.
“Some stands have been developed by the new owners, but the Municipality derives no revenue from those properties,” Lekgetho said.
The SIU said there was no evidence that municipal officials or Deeds Office officials participated in the alleged scheme.
Cash payments were used for the stands, which the SIU said made it difficult to trace the financial transactions.
The matter has been referred to the National Prosecuting Authority, with 208 referrals submitted for possible prosecution.
The SIU has also obtained an interim order preventing the registered owners or occupants of the 208 stands from selling, transferring, leasing, donating, developing or otherwise dealing with the properties.
The unit will approach the Special Tribunal on Friday to have the transfers reviewed and set aside and to recover losses suffered by the municipality.
Moki Attorneys has been referred to the Legal Practice Council.
The SIU has also referred matters to SARS over possible tax irregularities and submitted 147 referrals to the Financial Intelligence Centre concerning alleged non-compliance with FICA.
Lekgetho said the investigation had exposed the need for stronger controls over municipal land.
The SIU has recommended regular inspections and annual audits of municipal property. It also wants tighter verification procedures and greater cooperation between Ekurhuleni and the Deeds Registration Office.
“Public property is the collective asset of citizens,” Lekgetho said.
He said the SIU would continue working with law enforcement and other agencies to recover losses and seek the return of the properties.