The Free State High Court (Bloemfontein) has granted a final forfeiture order for six luxury properties and a Mercedes-Benz G63 AMG, collectively valued at approximately R32m, in connection with the irregular R230m asbestos scandal.

News24 reports that the court order, issued on Friday, found that the assets were proceeds of unlawful activities, including fraud, corruption, theft, violations of the Public Finance Management Act (PFMA), and money laundering.

The court also found that the properties and vehicle were ‘instrumentalities’ used in money laundering offences tied to the controversial asbestos tender.

‘Substantial funds paid by the Free State Department of Human Settlements (FSDHS) were unlawfully siphoned and laundered. The property was derived, directly or indirectly, from those funds. The trusts functioned as conduits to hold and disguise the proceeds,’ the court documents read.

The case emanates from a scheme that allegedly saw a R255m project to remove asbestos roofing from poor homes across the province, irregularly channelled to a joint venture involving Edwin Sodi’s Blackhead Consulting in 2014, with government officials plied with kickbacks, and the work never completed.

Instead, the contract was subcontracted at significantly reduced amounts, with the majority of the funds diverted through various entities, personal accounts, and trusts to purchase luxury assets.

News24 notes that Judge Mareena Opperman ruled that the respondents had failed to provide evidence of the lawful acquisition of these assets: ‘The respondents have not provided documentary proof or any other proof demonstrating an independent lawful source for the funds used to acquire the property.’

Opperman added that the respondents had also not ‘meaningfully’ engaged with the detailed financial evidence presented by the NDPP.

She said ‘bald denials in the face of comprehensive banking analyses do not create genuine disputes of fact’.

NPA spokesperson Kaizer Kganyago said that detailed investigations had revealed classic money laundering techniques, including the rapid transfer of funds from the department to associated companies and people under the guise of legitimate services.

Advocate Andy Mothibi, the NDPP, commended the collaboration between the NPA, the Directorate for Priority Crime Investigation (Hawks), and the Special Investigating Unit.

Full News24 report