Ricochet News

AFU gets preservation order against businessman over multi-million Rand tender

By Afikile Lugunya - Jul 31, 2018
AFU gets preservation order against businessman over multi-million Rand tender

The Asset Forfeiture Unit (AFU) of the NPA in East London walked out of the Grahamstown/Makhanda High Court with their heads held high after the court ruled in their favour by granting them a Preservation Order to preserve property of Bongani Mpeluza at Blair Atholl Golf and Aquestrian Estate.

The company owned solely by Bongani Mpeluza was apparently awarded a tender for R119 228 500 in February 2014 by the Municipal Infrastructure Support Agency (MISA) to build toilets in 2014.

Seemingly, the Amathole District Municipality got itself to a contract through MISA and signed a contract appointing Siyenza for a R631 835 837 tender to supply Ventilated Improved Pit (VIP) toilets.

“In 2015, the High Court in East London declared the contract between Siyenza and ADM unconstitutional, unlawful, void ab initio andof no force and effect.

“It was subsequently found that Siyenza had submitted two fraudulent tax clearance certificates for the 2014 and 2015,” NPA Regional Spokesperson, Tsepo Ndwalaza.

MISA and Siyenza verbally cancelled the agreement without signing anything.

“The award of the tender was induced by fraud and MISA would not have awarded the tender to Siyenza as no tender maybe awarded to any person whose tax matters have not been declared by the South African Revenue Services to be in order.”

Ndwalaza adds that monies received from the “fraudulent tender” were used to buy property at Blair Atholl and Aquestrian Estate for R17 million in cash.

“The property is currently registered in the name of Yellow Fancy (Pty) Ltd, a company owned by Mpeluza and his wife. The Asset Forfeiture Unit argued that the property is the proceeds of unlawful activity of fraud.”

The High Court granted the AFU a Preservation of the property of Bongani Mpeluza at Blair Atholl Golf and Aquestrian Estate granted by the Grahamstown High Court.