R58 Million Ekurhuleni Land Fraud Scandal: 208 Municipal Stands Allegedly Stolen

More than 200 vacant municipal properties in Ekurhuleni have allegedly been transferred into private hands without the City's approval in a land fraud scandal worth more than R58 million.

The Special Investigating Unit (SIU) found that 208 of 221 vacant stands examined in Villa Liza were allegedly transferred unlawfully. The properties were reportedly sold for just R18,000 each, with the City receiving no revenue from the transactions.

Even more striking, investigators allege that a deceased person was used as a fraudulent land agent to help facilitate the transactions.

208 Villa Liza Stands Allegedly Transferred Illegally

The SIU investigation uncovered what investigators describe as a deliberate scheme targeting municipal land.

According to the unit, forged rates clearance certificates and powers of attorney were allegedly used to make the transfers appear legitimate. The transactions involved vacant stands belonging to the municipality, with the City allegedly receiving no proceeds from their sale.

YOU MAY ALSO LIKE: ‘Cash For Driving Licence’ Scandal: Eight Appear In Limpopo Court

SIU head Leonard Lekgetho said investigators uncovered 208 fraudulent transfers among the properties examined.

“We uncovered a deliberate scheme to defraud the municipality, 208 fraudulent transfers. One deceased person acted as the fraudulent land agent,” Lekgetho said.

Deceased Person Allegedly Used In Land Scheme

The investigation has raised questions about how the alleged fraudulent transactions were processed and allowed to appear legitimate.

The SIU says a private law firm allegedly played a key role in processing the transfers. However, investigators said they found no evidence that municipal officials were involved in the alleged scheme.

YOU MAY ALSO LIKE: Four Arrested After Disabled Khayelitsha Woman Allegedly Raped In Front Of Young Son

The City of Ekurhuleni has confirmed that a criminal investigation involving the law firm is now under way.

“We’re pleased that there is a criminal investigation ongoing that will be opened against the law firm,” Ekurhuleni Municipality spokesperson Phakamile Mbengashe said.

Ekurhuleni Faces Challenge Of Reclaiming Land

The alleged fraud could now leave the municipality with the complicated task of recovering properties while dealing with residents who may have bought stands without knowing they were allegedly linked to an unlawful transaction.

The City says the land needs to be transferred back to municipal ownership, but officials will have to engage with people currently occupying the properties as the process unfolds.

“For the people staying there, that’s part of our engagement. The land has to be transferred back to the municipality. We’ll have to engage with the community,” Mbengashe added.

A final order relating to the forfeiture process is expected on Friday, which could determine the next steps in the municipality's efforts to recover the affected properties.