Africa-Press – South-Africa. The National Prosecuting Authority’s Asset Forfeiture Unit has successfully frozen assets to the tune of R13 million belonging to former Crime Intelligence boss Richard Mdluli and his co-accused in the “slush fund” corruption case.
The restraint order, which was granted by the Gauteng High Court in Pretoria in June, was served on Mdluli, former Crime Intelligence supply chain manager Heine Barnard and former chief financial officer Solomon Lazarus on Tuesday.
Mdluli’s former and current wives and Lazarus and Barnard’s wives were also cited as respondents in the application. The effect of the order is that their assets will be administered by a curator and they won’t be able to sell or dispose of the assets.
Investigating Directorate spokesperson Sindisiwe Seboka said the restraint of the assets was premised on what has become known as the “slush fund” case.
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The trio have been charged with multiple counts of corruption, fraud and theft relating to the alleged looting of a police slush fund between 2008 and 2012.
The crimes were allegedly committed while the three men were at the helm of Crime Intelligence and in control of its secret service account, which consisted of funds allocated by National Treasury for the specific purpose of preventing crime and gathering intelligence to combat crime.
According to the court indictment, during his tenure as Crime Intelligence boss Mdluli took several trips, some of which were allegedly paid for out of the secret fund.
The indictment states that on a trip to China in November 2009, R50 000 was secured from the slush fund to purchase an airplane ticket for Mdluli, and a further R50 000 in cash was provided to buy a ticket for Mdluli’s then wife, who was also allegedly made an agent.
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“Two business class air tickets in the names of Accused 1 [Mdluli] and Agent SA 78 from Johannesburg to Nanjing (China) via Hong Kong as well as a Gold 1–8 day family policy were purchased for a total price of R86 152 from Menlyn Park Flight Centre,” the indictment reads.
Mdluli also claimed for personal expenses, including accommodation, clothes and electronic goods, as well as expenses for which no proof was provided. This was not a work trip, as he had requested leave, which was approved.
Mdluli allegedly told one of his subordinates that the trip was to visit his daughter, who was also allegedly made an agent. In addition, several of Mdluli’s family members were made agents and given vehicles and a salary by Crime Intelligence.
Mdluli, Lazarus and Barnard are also accused of using witness protection houses for their personal use, and Mdluli got the state to lease his property as a safe house.
Asset Forfeiture Unit head, advocate Ouma Rabaji-Rasethaba, said the NPA had a two-pronged strategy for prosecuting those responsible for looting state coffers. The first is a criminal prosecution and the second is taking the proceeds of crime away through forfeiture proceedings.
“We will not allow those who benefited from crime to hold onto the ill-gotten gains … they must feel that crime does not pay,” she said.
The accused are expected back in court on 5 November.
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