Deeds scandal spreads

About 30 properties owned by the Tshwane Metro and North West Housing Corporation (NWHC) have allegedly been fraudulently transferred to private owners by the Deeds Office in Pretoria.

These allegedly fraudulent transactions are in addition to the 33 properties owned by the Johannesburg Property Company (JPC) that were simularly transferred to private companies, also by the Deeds Office in Pretoria.

The latest transfers are mentioned in the minutes of a meeting chaired by the chief registrar of deeds, Sam Lefafa, and representatives from Tshwane Metro and NWHC on June 1 "to discuss the fraudulent transfer of municipal-owned properties".

The minutes state that Lefafa informed the meeting that "the City of Tshwane and the Deeds Office (are) currently under siege with all the fraudulent transfers of municipal-owned properties despite caveats and/or pre-emptive conditions being noted against such properties".

Vacant land owned by the NWHC was transferred despite it registering a caveat over all its vacant land.

A City of Tshwane representative told the meeting a total of 27 vacant stands in Lotus Gardens in Pretoria had been transferred fraudulently.

Lefafa believed "extra precautionary measures" must be put in place to prevent and/or curb "such illegal transactions".

It was unanimously agreed that no application for transfer of municipal-owned properties would be considered by the Deeds Office without written consent from the City of Tshwane.

It was also agreed that the legal services division of the City of Tshwane would submit to Lefafa "a list of all properties fraudulently transferred" that were to be investigated by the Deeds Office.

Lefafa recommended the Hawks, the police's elite crime-fighting unit, be requested to investigate the fraudulent transfer of all municipal-owned properties.

A Hawks spokesperson confirmed on Monday the unit was investigating a complaint from the JPC and an individual related to the 33 transfers.

The JPC has obtained a high court interdict to prevent further trading in the 33 properties and to get its properties back.

Most of the companies to which the JPC properties were eventually transferred have links to Zunaid Moti, the chairman of unlisted luxury property group Abalengani.

All the JPC transfers were facilitated by Edmund Sibisi, the acting deputy registrar at the Deeds Office in Pretoria.

Two reports about the fraudulent JPC transfers have been submitted to Lefafa.

Eddie Mohoebi, the head of communications at the Rural Development and Land Reform Department, said to date it was only in possession of preliminary investigation reports, which would inform the internal investigation still under way in the department. It could not comment further.

Business Report

Posted at 08:54AM Jun 10, 2010 by Editor in Industry  |  Comments[1]