How police cracked the back of illegal mining syndicate

Police investigators used three undercover agents to infiltrate an alleged illegal mining syndicate in Carletonville, and identified Bethuel Eddie Ngobeni as the kingpin and arrested him, his wives and co-accused.

It is on the basis of such evidence that the Asset Forfeiture Unit received a preservation order from the Pretoria high court last week to hold on to millions of rand worth of property and luxury cars which the state says were bought with proceeds of crime.

The state is preparing to have these ultimately auctioned off and the money returned to the taxpayer, while the accused are to go on trial in July.

The case before the court is that Ngobeni, who is believed to be a Zimbabwean national, and was previously convicted of theft, is facing identity fraud charges, money laundering and dealing in illegally mined gold.

He is also being investigated for having allegedly bought a car for a prosecutor.

A bail court last year heard that he is linked to some police and prosecutors in Carletonville and Khutsong. A corruption case has been opened and it is being investigated against a police officer.

When his trial begins, the state is expected to present several transactions – caught in audio and video – which they say prove that Ngobeni made his riches from dealing in illegal mining activities.

Hawks investigator Col Kgomotso Galetlole has previously testified in a bail hearing that the first transaction was on October 6 2018, the price of the nugget was R460 per gram which amounted to R58,200.

The second time was on November 21 2018 at R470 per gram which amounted to R24,415 and the third time was on August 18 2020, at R710 per gram which amounted to R110,000.

The fourth deal was on November 5 2020 at R600 per gram which amounted to R32,000, the fifth time was on August 13 2021 at R230 per gram which amounted to R 356,000 and the last transaction was on August 30 2021 at R630 per gram which amounted to R154,000.

The audio and video evidence, according to police, contains discussions between Ngobeni and his co-accused on purchasing, negotiating, meeting places, smelting of the material and sharing of the money.

“The agents were introduced to [Ngobeni] and they established that he and other persons were dealing in unlawful raw materials. [Ngobeni’s] place was the meeting place. [Ngobeni] and accused number two were responsible for raising the money and collecting gold.

"[Ngobeni] was identified as the kingpin. [Ngobeni] would meet the agent and proceed to co-accused to perform the process of extracting Amalga into a nugget. The nugget would be weighed and a price negotiated. The parties would proceed to another area where the agreed price would be paid," reads a court document in part.

Police said Ngobeni and his co-accused would pay shortly after negotiating, which showed that they had "access to amounts of money in a short space of time".

Ngobeni had claimed in court that he is self-employed, runs a salon business and trades in used motor vehicles which he buys, fixes and sells.

He said he earns a sum of R65,000 per month from both businesses.

He claimed to own two houses in Khutsong and has a vacant piece of land in Potchefstroom. He has four motor vehicles – a Volkswagen Amarok, two Audi A3s and a Volkswagen T-Roc.

He said he is a gambler who has R1m in his bank account which can be proven as his winnings.

But police disputed this, lifting the lid on a sophisticated gambling operation which they say is to launder cash.

Police told the court Ngobeni works with staff at a gambling establishment, Gbets, who inform him of the winners. He would give cash in exchange for his name being put in the system as though he is the one that won. This resulted in his winnings coming to R1m.

Police testified that Ngobeni would put R22m from 2019 to 2022 in the establishment.

Police said Ngobeni had more than four cars which are registered in other people’s names and have been bought for cash.

“There are car dealership statements and bank statements that show how the motor vehicles were purchased,” the court heard.

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