Zimbali properties bought with proceeds of R320m city waste removal contract are forfeited to state

Two properties in the luxury Zimbali Estate on the KwaZulu-Natal north coast valued at about R22m have been forfeited to the state.

This comes amid allegations they were bought with some of the proceeds of alleged corruption relating to former eThekwini mayor Zandile Gumede.

Gumede and others are standing trial in the Durban high court on charges of fraud, corruption, racketeering and money laundering relating to a R320m city waste removal contract.

The state alleges Gumede and others manipulated the award of the tender to companies to promote radical economic transformation and to give kickbacks to a “patronage network” which included community-based contractors, business forums and the Umkhonto we Sizwe Military Veterans Association who were aligned to the RET faction in the ANC.

Among the companies which allegedly scored the alleged corrupt contracts are El Shaddai Holdings Group and Umvuyo Holdings.

Their representatives are also facing charges. In respect of El Shaddai these are Craig Ponnan and Prabagaran Pariah and in respect of Umvoyu it is Sithamone Ponnan.

National Prosecuting Authority (NPA) regional spokesperson Natasha Ramkisson-Kara said the forfeiture order was granted against another company, Western Breeze Trading 434 and its owner Yunus Essop in respect of the two properties, one in Ebuhleni and the other in Mahogany Drive.

“The preservation order for this matter, which was granted in November 2021, was granted on the basis there were reasonable grounds to believe the properties were proceeds of unlawful activities as they were acquired with the proceeds from the alleged fraud, corruption, racketeering and money laundering committed by accused persons in the Durban Solid Waste contract matter, namely Craig Ponnan, Sithamone Ponnan, El Shaddai Group CC and Umvuyo Holdings.”

She said R52.4m was paid by the municipality to El Shaddai between February 2018 and July 2019.

El Shaddai then paid R48.m to Umvuyo. The director of Umvuyo is Sithamone Ponnan, who is the mother of Craig.

“Craig had control over the El Shaddai bank account and was also a signatory on the bank account of Umvuyo. He participated in the affairs of El Shaddai and Umvuyo.

“Several payments of more than R6m were made by Umvuyo towards the purchase of the property at Ebuhleni. The Ebuhleni property was then transferred to Western Breeze,” she said.

“The vacant land at 9 Mahogany Drive was purchased by Yunus Essop and registered in the name of Western Breeze in 2014. Umvuyo paid R16.1m for the construction and design of this house,” Ramkisson-Kara said.

She said in terms of the court order, the Ebuhleni property had been forfeited to the state and the proceeds from the sale would be transferred into the Criminal Assets Recovery Account (Cara).

Regarding the property on Mahogany Drive, Western Breeze was ordered to pay an amount of R16.1m into the Cara within the next six months.

Should this not be done, the court ordered the appointed curator sell the property at auction.

Senior state advocate Beverley Mothilall from the Asset Forfeiture Unit in KwaZulu-Natal was successful in obtaining the respective orders, Ramkisson-Kara said.

“This case demonstrates how the Asset Forfeiture Unit and the Specialised Commercial Crimes Unit work in collaboration to ensure we take the profit out of crime. This is an example of the NPA’s fight against serious corruption and fraud, and in its efforts to curb money laundering.”

The criminal trial, which is being heard by Durban high court Judge Sharmaine Balton, resumes in October.

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