A Special Investigating Unit (SIU) investigation has uncovered a R58 million scheme involving the fraudulent transfer of 208 municipal stands at Villa Liza in Ekurhuleni to private individuals.
The transfers took place between 2018 and 2022 without council resolutions or lawful authority, with forged rates clearance certificates and powers of attorney allegedly used to facilitate the transactions.
SIU Head Leonard Lekgetho said a purported estate agent worked with Moki Attorneys Incorporated to transfer the municipal land.
“The ‘agent’ would identify unallocated land owned by the municipality in Villa Liza Township. The ‘agent’ would then orchestrate a fraudulent sale and transfer of this municipal land to private hands,” Lekgetho said.
The SIU found that conveyancer Kabelo Valentine Moki and his wife, Makhosazana Emelda Moki, acquired 73 stands through two entities. The stands were sold for R18,000 each, despite municipal valuations ranging from R80,000 to R3.7 million.
The properties were later resold for an average of R250,000 each.
The SIU said it found no evidence that municipal or Deeds Office officials participated in the scheme.
The matter has been referred to the National Prosecuting Authority (NPA), while the SIU has obtained an interim interdict preventing the owners or occupants of the 208 stands from selling, transferring or developing the properties.
The unit will approach the Special Tribunal to have the transfers set aside and recover losses suffered by the municipality.
“We have submitted 208 referrals in respect of the fraud to the National Prosecuting Authority for possible prosecution,” Lekgetho said.
The conveyancing firm has also been referred to the Legal Practice Council, SARS and the Financial Intelligence Centre for further investigation
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