A Special Investigating Unit (SIU) investigation has uncovered a R58 million scheme entailing the fraudulent transfer of land belonging to the Ekurhuleni Municipality.
The scheme involved the illegal transfer of 208 stands at Villa Liza township into the hands of private individuals without council resolution and without the municipality receiving any benefits.
“President Cyril Ramaphosa authorised this investigation in October 2024 under Proclamation No. 195 of 2024. The investigation examined serious maladministration in the transfer of 221 vacant stands in Villa Liza Township, near Boksburg.
“It assessed actions that violated applicable legislation, unlawful conduct by municipality employees or agents, and the potential losses suffered by the Municipality or the State arising from the land transfer,” SIU Head Leonard Lekgetho revealed in a media briefing on Wednesday.
The investigation uncovered:
- Fraudulent transfers of 208 of the 221 stands between 2018 and 2022. The transfers were carried out without council resolutions or lawful authority.
- One deceased person allegedly acted as the so-called estate agent. The SIU confirmed through the Department of Home Affairs that the agent passed away on 10 January 2022.
- A conveyancing firm not on the Municipality’s panel of approved attorneys lodged fraudulent documents at the Johannesburg Deeds Office. The firm, Moki Attorneys Incorporated, is owned by Kabelo Valentine Moki.
- The firm had certified that all the documents necessary for the transfer were true and correct upon submission to the Deeds Office.
- Forged rates clearance certificates and fabricated powers of attorney were used to deceive the system.
- The conveyancer and his spouse, Makhosazana Emelda Moki, personally benefited, acquiring 73 stands through Velamelda Trust and Mokolane Investments.
- Each stand was sold for R18 000 according to the Deeds Office. The municipal valuation ranged from R80 000 to R3.7 million. The stands were later resold at an average of R250 000 per stand.
- Some stands have been developed by the new owners, but the Municipality derives no revenue from those properties.
“The ‘agent’ would identify unallocated land owned by the municipality in Vila Liza Township. The ‘agent’ would then orchestrate a fraudulent sale and transfer of this municipal land to private hands.
“This scheme involved the ‘agent’ collaborating with the conveyancing firm, Moki Attorneys. Moki Attorneys, together with the agent, played a key role in falsifying documents for the Deeds Office’s registration and transfer of land to private hands,” Lekgetho explained.
He noted that the SIU has not found any evidence indicating the participation of Deeds Office officials in the scheme.
“Payments for the stands were made in cash, complicating the tracing of the financial transactions. There is no evidence indicating that municipal officials participated in the scheme.
“This matter has been referred to the National Prosecuting Authority for further action or potential prosecution, which will initiate a criminal investigation to ensure that all parties involved are held criminally accountable,” he added.
Taking action
Lekgetho stated that the SIU has taken several actions based on the findings of the investigation.
These include obtaining an interim interdict preventing the occupants or registered owners of the 208 stands from selling, transferring, marketing, disposing of, leasing, donating, developing and dealing with the property.
This Friday, the unit will also approach the Special Tribunal to file an application to review and set aside the unlawful transfers and to recover losses incurred by the municipality.
“We have [also] submitted 208 referrals in respect of the fraud to the National Prosecuting Authority for possible prosecution.
“Regarding the professional consequences management of Moki Attorneys’ matter, the firm has been referred to the Legal Practice Council. Referrals have been made to the South African Revenue Service for investigation into undeclared income and tax irregularities.
“The SIU has also submitted 147 referrals to the Financial Intelligence Centre [FIC] due to the conveyancer’s non-compliance with FICA legislation whilst effecting the unlawful transfers.,” Lekgetho added.
Furthermore, recommendations have also been made to the municipality.
These include:
- Proper verification processes must be implemented by the Municipality before the registration of municipal services for all new properties.
- The Municipality maintains, updates, and verifies its asset register, ensuring that appropriate and effective control measures are in place to manage its immovable property.
- The Municipality conducts regular inspections of municipal-owned land to monitor these properties effectively and prevent future theft and loss.
- An annual municipal audit should be conducted for immovable municipal assets.
- The Municipality must consider establishing an MOU with the Deeds Registration Office to place safeguards on any transfers of municipal land.
“Fraudulent schemes of this nature not only erode public trust but also deprive communities of essential development opportunities, thereby undermining municipalities’ constitutional mandate to serve their constituents effectively.
“This investigation goes beyond mere investigation; it reveals a narrative of betrayal, misappropriation, and unlawful expropriation of public assets intended to benefit local communities.
“We remain committed to collaborating with law enforcement, regulatory agencies, and other relevant entities to recover financial losses and restore these properties to the rightful owners, the people of Ekurhuleni,” Lekgetho concluded.
