NPA attaches farms in land affairs fraud and corruption case

NPA attaches farms in land affairs fraud and corruption case
NPA
March 2011


On the basis that they constitute proceeds of unlawful activities.


On Friday 11 March 2011, the Asset Forfeiture Unit (AFU) in the NPA seized two farms including livestock and farming equipment to the value of R15 million. This is after the National Director of Public Prosecutions (NDPP) applied for and obtained a Preservation Order in terms of Section 38 of the Prevention of organised Crime Act 121 of 1998 on 7 March 2011. The said order was granted by Honourable Acting Judge Booysens. The farms in the Arcadia area in Ladysmith have been preserved on the basis that they constitute proceeds of unlawful activities.

The order was granted following extensive investigations by the Anti Corruption Task Team (ACTT) consisting of the SAPS, DPCI, the SIU and the AFU into several allegations of fraud and corruption. The investigation was initiated by the Department of Rural Development and Land Reform (the Department) after the Minister had insisted on a large scale investigation of the alleged irregularities.

The said investigations relates to the fraudulent acquisition of the properties earmarked for the redistribution and restitution to the farming communities who lived and worked in the aforesaid farms. Investigations reveal, amongst others that several farms were fraudulently transferred to certain entities and individuals who did not qualify as beneficiaries in terms of the said programmes. Fraudulent activities induced the Department into approving a grant. Amongst the said individuals were certain officials from the Department whose responsibility it was to ensure that the said farms are transferred to legitimate beneficiaries. In the present matter it is alleged that the Department of Rural Development and Land Reform, acting on a fraudulent memorandum awarded a grant of R9,718.189,00 to Abrina 6658 to assist in the purchase of the Arcadia farm. The farms were purchased and transferred into Abrina 6658, a public company owned and controlled by Sewpersad family of Ladysmith.

The R15 million frozen bring the total number to R50 million in the last six months since the establishment of the ACTT. Supersad and other officials of the Department have already been charged and are currently out on bail on criminal charges relating to the same alleged criminal behaviour and that case has been postponed to 3 May 2011(Real Estate Web )