The Special Investigating Unit (SIU) has uncovered what it describes as a deliberate scheme to fraudulently transfer municipal land worth R58m into private hands in Villa Liza.

The SIU revealed its findings following an investigation authorised by President Cyril Ramaphosa in October 2024 under Proclamation 195 of 2024. The investigation examined the transfer of 221 vacant municipal stands between 2018 and 2022.

According to the SIU, 208 of the 221 stands were allegedly transferred unlawfully without council resolutions or lawful authority, with the City of Ekurhuleni receiving no payment for the properties.

The municipality, however, said it became aware of the matter in 2016 and immediately referred it to its internal audit, risk and legal services departments for investigation.

“To mitigate further exposure, the municipality promptly placed a caveat on these properties with the Deeds Office to prevent any subsequent transfers,” said spokesperson Zweli Dlamini.

The investigation found that a person presented as an estate agent allegedly identified unallocated municipal land and worked with Moki Attorneys Incorporated to facilitate the transfers. The SIU said it confirmed through the Department of Home Affairs that the alleged agent died on January 10, 2022.

It further found that Moki Attorneys, which was not on the municipality’s panel of approved conveyancers, lodged documents at the Johannesburg Deeds Registry. Forged rates clearance certificates and fabricated powers of attorney were allegedly used in the process.

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According to the SIU, conveyancer Kabelo Valentine Moki and his spouse, Makhosazana Emelda Moki, benefited by acquiring 73 stands through Velamelda Trust and Mokolane Investments. The stands were reportedly sold for R18 000 each, while municipal valuations ranged from R80 000 to R3.7m. The properties were subsequently resold for an average of R250 000 each.

The SIU estimated the financial loss to the municipality at R58m. The municipality said the SIU is handling the legal and recovery processes aimed at recouping the losses.

The municipality declined to comment in detail on alleged system vulnerabilities and verification failures, saying the matter remains under investigation.

“A formal comment on system vulnerabilities and verification lapses will be provided at a later stage as the matter remains under investigation.”

Dlamini said they are awaiting the outcome of pending Special Tribunal proceedings before determining the way forward regarding current occupants and registered owners of the affected properties.

The SIU obtained an interim interdict in June preventing the registered owners or occupants of the 208 stands from selling, transferring, leasing, donating, developing or otherwise dealing with the properties.

The SIU will approach the Special Tribunal to seek the setting aside of the unlawful transfers and recovery of losses suffered by the municipality.

The municipality said it has since established a structural caveat system with the Deeds Registration Office on municipal property assets.

“Administratively, the department has intensified its routine oversight, conducting regular physical inspections and data audits to proactively safeguard municipal land against illegal occupation and unauthorised transfers,” Dlamini added.

The SIU has submitted 208 referrals to the NPA for possible prosecution, while Moki Attorneys has been referred to the Legal Practice Council. Referrals have also been made to SARS and the Financial Intelligence Centre.

The publication sent a query to Moki Attorneys on October 9, requesting a response by noon on October 12. The response will be added once received.

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