SIU uncovers R58m fraudulent transfer of 208 Ekurhuleni municipal stands
Written on
A Special Investigating Unit probe has found that 208 municipal stands in Villa Liza township near Boksburg were fraudulently transferred into private hands using forged documents, with the properties valued at about R58 million.
A Special Investigating Unit (SIU) investigation has uncovered a R58 million scheme involving the fraudulent transfer of land belonging to the Ekurhuleni Municipality, with 208 stands at Villa Liza township near Boksburg illegally transferred into private hands without council resolution and without the municipality receiving any benefits.
President Cyril Ramaphosa authorised the investigation in October 2024 under Proclamation No. 195 of 2024. The probe examined serious maladministration in the transfer of 221 vacant stands, assessing actions that violated applicable legislation, unlawful conduct by municipal employees or agents, and potential losses to the municipality or the state. SIU head Leonard Lekgetho said the unit completed the investigation and submitted its final report to the Presidency in July 2026, with a redacted version expected on the SIU website.
According to the findings, a person described as an "agent" identified unallocated municipal land and orchestrated a fraudulent sale and transfer. The investigation identified Moki Attorneys Incorporated, owned by Kabelo Valentine Moki and not on the municipality's panel of approved attorneys, as the conveyancing firm involved. The SIU alleges the firm lodged documents at the Johannesburg Deeds Office and that forged rates clearance certificates and fabricated powers of attorney were used, with the firm certifying that the documents submitted for registration were true and correct.
The investigation found that Moki and his spouse, Makhosazana Emelda Moki, allegedly benefited personally from the transactions, acquiring 73 stands through Velamelda Trust and Mokolane Investments. Deeds Office records showed each stand was sold for R18,000 while municipal valuations ranged from R80,000 to R3.7 million, and the properties were subsequently resold at an average of about R250,000 each. Some properties have since been developed by their new owners, but the municipality has received no revenue from them. One person allegedly involved as an agent is deceased, with Home Affairs confirming the death on 10 January 2022.
The SIU has obtained an interim interdict preventing the occupants or registered owners of the 208 stands from selling, transferring, marketing, disposing of, leasing, donating, developing or otherwise dealing with the property. It will approach the Special Tribunal to file an application to review and set aside the unlawful transfers and recover losses incurred by the municipality.
Lekgetho said 208 referrals on the alleged fraud have been lodged with the National Prosecuting Authority for possible prosecution. The conveyancing 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, and 147 referrals were submitted to the Financial Intelligence Centre over alleged non-compliance with the FIC Act. The SIU said it found no evidence that municipal officials or Deeds Office officials participated in the scheme, and that cash payments for the stands complicated tracing of the financial transactions.