Two luxury properties in Zimbali have been attached in a forfeiture order of about R22m obtained by the National Prosecuting Authority’s Asset Forfeiture Unit (AFU) in KZN against Western Breeze Trading and Yunus Essop.

The matter relates to a criminal trial about Durban Solid Waste contracts involving ex-mayor Zandile Gumede and others.

According to the NPA’s regional spokesperson, Natasha Ramkisson-Kara, a preservation order for this matter was granted in November 2021 on the basis that there were reasonable grounds to believe that the properties were proceeds of unlawful activities.

The order, which was granted in terms of section 50 of the Prevention of Organised Crime Act 121 of 1998 (POCA), is in respect of two immovable properties situated in Ebhuleni and Mahogani drives in Zimbali.

Ramkisson-Kara says the criminal matter will be before court again in October. The state alleges that the eThekwini municipality, with Gumede as mayor at the time, paid R52m to a company named El Shaddai.

From there Elshaddai paid R48m to Umvuyo.

It is alleged that Craig Ponnan, one of the accused in the matter, had access to both companies’ bank accounts.

“He participated in the affairs of El Shaddai and Umvuyo,” says Ramkisson-Kara.

She says Umvuyo paid over R6m towards the purchase of the property in Ebuhleni Drive while vacant land in Mahogany Drive were bought by Yunus Essop and registered in the name of the Western Breeze.  Umvuyo paid R16m for the construction and design of the house.

The court ordered that the Ebuhleni Drive property be forfeited to the state and sold. The proceeds of the sale must be transferred into the Criminal Assets Recovery Account (CARA).

Western Breeze was ordered to pay R16m into the CARA within six months. Should the money not be paid in time, the property will be sold on auction.