The Serious Corruption Investigation is currently conducting an ongoing operation where 11 suspects are expected to be arrested on alleged fraud and corruption charges.

This, is said to be in connection with dubious land deals amounting to almost R124 million.

According to Lieut Col Philani Nkwalase, it is alleged that a complaint was made about Msukaligwa Municipality, that allegedly bought Rietspruit Farm in Ermelo in February 2012.

The farm was worth R11 million yet sold for about R36.4 million in 2011, to develop a township, however, the municipality already owned a farm that could have been utilised for the same purpose.

Lieut Col Nkwalase said: “A multi-agency investigation which included the Specialised Investigation Unit (SIU) and the National Prosecuting Authority ensued.   

Another complainant told investigators about two other deals involving two farms, a 70ha Malelane farm worth R44 Million that was allegedly sold to the municipality at R50 Million in 2011.

The second farm was a 74.2 ha Naauwpoort in Emalahleni worth R16 Million apparently sold for R37.5 Million.

“All these three farms actual combined value was approximately R70 Million but through alleged collusion by the arrested suspects, the Mpumalanga Human Settlements Department suffered a total loss of just under R124 Million.”

According to information, the money was channelled through five companies. 

An intricate paper trail was created including applications by the municipalities, valuation report and internal correspondence in order to justify the deals.

They are expected to appear in the Nelspruit Magistrate Court on 28 October 2020.

Read the complete article in the Highvelder newspaper