An Eastern Cape government housing scandal said to “make the Nkandla debacle look like a left-hand throw” yesterday led to some R60-million being forfeited to the state.
The Grahamstown High Court yesterday ordered that the contents of the business and personal accounts of Camel Rock Social Housing Institution and its directors be forfeited.
Judge Elna Revelas dismissed a contention by Camel Rock directors Thanduxolo Zuka, Thomas Mzamo and Cwenga Pakade that they had done nothing wrong and fully intended proceeding with the project when their accounts were frozen last year.
She also forfeited to the state a R452000 car bought by Pakade the day after money was unlawfully transferred into his account.
The R61-million was earmarked for the 600-unit Connemara Village social housing project near Cove Rock which, to date, remains an empty tract of land.
The money, which will go back to national Treasury, is now lost to the Eastern Cape.
The National Prosecuting Authority (NPA) alleged in court papers that the Social Housing Regulatory Authority (SHRA) had illegally paid R61-million into Camel Rock’s bank account on the last day of the 2012-13 financial year without the institution having been properly vetted to meet legal requirements.
From there, and contrary to the strict terms of a contract between Camel Rock and the SHRA, the NPA alleges that some R4.8-million was almost immediately paid into various bank accounts controlled by some of the directors and service providers for “personal benefit”.
These bank accounts, and the bank account in which most of the money was held, were quickly frozen to prevent further payments from the accounts.
Court documents also allege serious financial chicanery in the human settlements department involving hundreds of millions of rands paid between various accounts over the past few years.
The Asset Forfeiture Unit says that between 2011 and 2013 some R341-million was illicitly transferred from the department to the SHRA for Eastern Cape social housing projects contrary to regulations.
Revelas said yesterday that a remark in court that these transfers made the Nkandla debacle look like a “left-hand throw” by comparison, was apt.
She said the fact that no criminal proceedings had yet been instituted against any of the directors did not mean she couldn’t grant the forfeiture order.
The AFU has undertaken to return the forfeited money to the national Treasury.
Housing scandal rocks Bhisho
The Grahamstown High Court yesterday ordered that the contents of the business and personal accounts of Camel Rock Social Housing Institution and its directors be forfeited.
Judge Elna Revelas dismissed a contention by Camel Rock directors Thanduxolo Zuka, Thomas Mzamo and Cwenga Pakade that they had done nothing wrong and fully intended proceeding with the project when their accounts were frozen last year.
She also forfeited to the state a R452000 car bought by Pakade the day after money was unlawfully transferred into his account.
The R61-million was earmarked for the 600-unit Connemara Village social housing project near Cove Rock which, to date, remains an empty tract of land.
The money, which will go back to national Treasury, is now lost to the Eastern Cape.
The National Prosecuting Authority (NPA) alleged in court papers that the Social Housing Regulatory Authority (SHRA) had illegally paid R61-million into Camel Rock’s bank account on the last day of the 2012-13 financial year without the institution having been properly vetted to meet legal requirements.
From there, and contrary to the strict terms of a contract between Camel Rock and the SHRA, the NPA alleges that some R4.8-million was almost immediately paid into various bank accounts controlled by some of the directors and service providers for “personal benefit”.
These bank accounts, and the bank account in which most of the money was held, were quickly frozen to prevent further payments from the accounts.
Court documents also allege serious financial chicanery in the human settlements department involving hundreds of millions of rands paid between various accounts over the past few years.
The Asset Forfeiture Unit says that between 2011 and 2013 some R341-million was illicitly transferred from the department to the SHRA for Eastern Cape social housing projects contrary to regulations.
Revelas said yesterday that a remark in court that these transfers made the Nkandla debacle look like a “left-hand throw” by comparison, was apt.
She said the fact that no criminal proceedings had yet been instituted against any of the directors did not mean she couldn’t grant the forfeiture order.
The AFU has undertaken to return the forfeited money to the national Treasury.
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