Maumela’s R325m assets forfeited to the state
The Gauteng High Court (Johannesburg) has granted the Asset Forfeiture Unit (AFU) a final forfeiture order allowing the state to permanently seize luxury assets worth hundreds of millions of rands linked to alleged Tembisa Hospital tender kingpin Hangwani Maumela.
The order, granted by Judge Sahida Mahomed yesterday, clears the way for the state to take ownership of an extensive property portfolio, luxury vehicles and other high-value assets after no opposition was filed to the application, reports News24.
The granting of the order marks a significant step in the state’s efforts to claw back proceeds allegedly derived from the sprawling R2.3bn Tembisa Hospital corruption scheme that investigators say siphoned public funds earmarked for healthcare.
Appearing for the AFU, Advocate Sibusiso Mbatha explained to the court that the application followed an earlier preservation order obtained in terms of the Prevention of Organised Crime Act, which froze the assets pending forfeiture proceedings.
Mbatha explained that once the preservation order had been granted, all interested parties were notified and afforded an opportunity to oppose the forfeiture application.
According to court papers previously filed by the AFU’s Wendy da Silva, 14 entities linked to Maumela received at least R415m through contracts awarded by the hospital.
TimesLIVE reports that forensic investigations uncovered widespread irregularities in the procurement processes, including the alleged manipulation of contract awards to favour entities associated with the syndicate.
In some instances, companies listed as having submitted quotations during the bidding process denied ever submitting them.
In other cases, companies allegedly linked to the syndicate were used as cover bidders, submitting quotations in a manner that consistently favoured the syndicate-linked entities.
An analysis of the flow of funds allegedly showed that most of the money received by the syndicate-linked entities was used to purchase assets, pay bribes to officials and cover bidders, and fund the extravagant lifestyles of syndicate members.
The state contends the companies formed part of a syndicate that manipulated procurement processes, submitted fraudulent documentation and benefitted from contracts for goods allegedly never delivered.
Among the assets now forfeited are a mansion in Bantry Bay valued at R88.5m, neighbouring Sandton properties worth more than R140m, homes in Pecanwood Estate and Zimbali, four Lamborghinis, a Bentley Continental GT, and a Regency party boat.
The assets were registered in the names of Maumela, members of his family, including his mother, Mboneni, his sister, Rumani, and the MHR Family Trust, states News24.
The alleged corruption network was first flagged by Gauteng Department of Health chief accountant Babita Deokaran in August 2021.
Before her assassination, Deokaran identified hundreds of suspicious transactions and warned senior officials that payments linked to Tembisa Hospital procurement appeared fraudulent.
Maumela, who is President Cyril Ramaphosa’s nephew from a previous marriage, has repeatedly featured prominently in investigations into the Tembisa Hospital scandal.
The President has previously distanced himself from Maumela.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
