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How to make a cool R24.5m in a few minutes

THE Mpumalanga government spent millions of rands buying land in a questionable deal that resulted in a businessman pocketing R24.5-million in a record two minutes.

The 414-hectare Rietfontein farm in Ermelo was originally bought from Fremax Farms for R11.9-million by a company called Bongiveli.

It was transferred to Bongiveli in just under three minutes. Bongiveli resold it to the Mpumalanga department of human settlements for R36.4-million in two minutes.

All three transactions were, according to documents obtained from the deeds office, concluded within six minutes in the afternoon on May 16 this year,.

Comfort Ngobe, spokesman for the Human Settlements Department, said there was nothing untoward about the purchase price.

"The land was valued by independent valuators, hence the department's satisfaction with the purchase price."

He could not explain why his department paid 300% more than the previous owner's purchase price in a matter of a few minutes.

He said the local municipality needed the land for RDP houses.

Surprise Nkosi, spokesman for the Msukaligwa municipality, which was initially believed to have bought the land, told Sowetan yesterday his council had nothing to do with the transaction, adding that the farm was bought by the Department of Human Settlements.

"There was no direct communication or bargaining between us and Bongiveli, so no confirmed amount was communicated to us," Nkosi said. "The farm was obtained by the provincial department of human settlements and, yes, it took just one day for the transaction to go through," he said.

The DA leader in the province, Anthony Benadie, has asked Public Protector Thuli Madonsela to investigate the deal.

Galalelo Masibi, spokesman for the public protector, confirmed receipt of the DA's complaint and said an investigation was under way.

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