Ekurhuleni municipality’s vacant stands valued at R58m fraudulently transferred

The Special Investigating Unit (SIU) investigation into Ekurhuleni municipality’s affairs has uncovered the fraudulent transfer of municipal stands valued at R58 million into private hands between 2018 and 2022.

According to Head of the SIU, Leonard Lekgetho, these transfers occurred without a Council resolution, and Ekurhuleni municipality has not received a cent from them.

The vacant stands, owned by the municipality, are at the Villa Liza township in Boksburg.

President Cyril Ramaphosa authorised the investigation under Proclamation 195 of 2024, directing the SIU to investigate allegations of serious maladministration related to the transfer of stands.

The investigation aimed to determine whether the transfers violated the municipality’s legislation, guidelines, or practices, and whether employees or officials engaged in unlawful conduct to benefit themselves or others.

It also sought to identify any fraudulent conduct, its causes, and any losses or damages suffered by the municipality or the State, as well as any irregular conduct by employees or officials.

The SIU submitted its final report to Ramaphosa in July.

The stands were allegedly sold to individuals for about R18 000, according to the deeds’ records; however, it could be higher, said Lekgetho. Municipal valuations say the stand ranges from R80 000 to R3.7 million.

“Some stands have been developed by the new owners, but the municipality derives no revenue from them,” said Lekgetho.

Transfers of vacant stands

Lekgetho said one of the people who allegedly acted as an estate agent in the fraudulent transfer of these stands died in January 2020.

The agent would identify unallocated land owned by the municipality. In 2022, 208 stands were allegedly transferred to a firm, Moki Attorneys Incorporated, with Kabelo Valentine Moki allegedly acting as a conveyancer.

They then allegedly orchestrated a fraudulent sale and transfer of these stands to private individuals.

The agent allegedly collaborated with the conveyancing firm (Moki Attorneys) to falsify documents for Deeds Office registration and transfer of the land to private hands.

Payments for the stands were made in cash, complicating tracing of the financial transaction.

Ekurhuleni officials free, for now

No evidence indicates the deeds officials participated in the scheme, Lekgetho.

“No evidence indicates that municipal officials participated in the scheme, but there is no way that an agent would have known some of these lands. The SIU has not identified officials for now because most of the transactions were done in cash,” said Lekgetho.

“We have amended the proclamation to go deeper into the investigation. We are also hoping that, through the lifestyle audits authorised by the president in Ekurhuleni, we will partner with state security so we can see some of those transactions, particularly the cash used to benefit from the scheme.

“Officials are not out of our sight; we will be coming to them. Matters referred to the NPA [National Prosecuting Authority] for further action, to ensure all parties involved are held liable – criminally.”

On 18 September, the SIU will file an application at the Special Tribunal to review and set aside the unlawful transfer and recover losses incurred by the municipality. Once this has been done, the municipality will engage with the new owners of the stands on the way forward.

The firm was referred to the LPC for action.