By Thapelo Molefe
The Special Investigating Unit (SIU) has uncovered the fraudulent transfer of municipal land worth R58 million into private hands in Ekurhuleni, with 208 stands allegedly transferred without council approval between 2018 and 2022.
The vacant stands are in Villa Liza Township near Boksburg, and the municipality did not receive any money from the transactions, according to the SIU.
Briefing the media on Wednesday, the unit said it has obtained an interim interdict preventing the registered owners or occupants of the 208 stands from selling, transferring, leasing, donating, developing or otherwise dealing with the properties.
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The SIU will approach the Special Tribunal on Friday to have the unlawful transfers set aside and recover losses suffered by the municipality.
SIU head Leonard Lekgetho said the investigation uncovered a scheme involving forged documents and a conveyancing firm that was not on the municipality’s approved panel.
“Forged rates clearance certificates and fabricated powers of attorney were used to deceive the system,” Lekgetho said.
The investigation was authorised by President Cyril Ramaphosa in October 2024 under Proclamation 195 of 2024, with the final report submitted to the Presidency in July.
The SIU found that Moki Attorneys Incorporated, owned by Kabelo Valentine Moki, processed the transfers despite not being on Ekurhuleni’s panel of approved attorneys.
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The unit said Moki and his spouse, Makhosazana Emelda Moki, benefited from 73 of the stands through Velamelda Trust and Mokolane Investments.
According to Deeds Office records, each stand was sold for R18,000, while municipal valuations ranged from R80,000 to R3.7 million. The properties were later resold for an average of R250,000.
Some of the stands have since been developed, but the municipality is not receiving revenue from the properties.
The SIU said there was no evidence that municipal officials or officials at the Deeds Office participated in the scheme.
However, Lekgetho said further investigation would be conducted because payments for the stands were made in cash, making it difficult to trace the transactions.
“There is no way that an agent will have known some of this land,” Lekgetho said.
“We have not identified officials for now because most of the transactions were done in cash.”
The SIU has amended the proclamation to allow for further investigation and said lifestyle audits could help identify possible links between municipal officials and the transactions.
The 208 cases have been referred to the National Prosecuting Authority for possible prosecution. Moki Attorneys has also been referred to the Legal Practice Council, while referrals were made to the South African Revenue Service over possible undeclared income and tax irregularities.
The SIU submitted a further 147 referrals to the Financial Intelligence Centre over alleged non-compliance with the Financial Intelligence Centre Act.
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The SIU said it had recommended that Ekurhuleni strengthen controls over municipal land by regularly inspecting its properties, updating its asset register, conducting annual audits and considering an agreement with the Deeds Registration Office to prevent unauthorised transfers.
The unit said people who bought the properties would have to engage with the municipality after the land is returned to municipal ownership.
“Our role is to safeguard the assets of the state,” Lekgetho said.
“The municipality can engage with the owners as to what it is that they’re going to do.”
