'I charged R10m for farm sold for R26m' - farmer testifies in Bongo fraud case
State inflated price, farmer tells court
Image: Mandla Khoza
The farm owner whose farm was sold allegedly at an inflated price tag of R26m to the state has told the court he only charged R10.5m for his property.
Frederick Kardish was testifying before the Nelspruit commercial crimes court in Mbombela, Mpumalanga, yesterday as the state witness in the R78m case of fraud against former state security Bongani Bongo.
Bongo, his ex-wife Sandile Nkosi, Robert Burwise, Patrick Donald Chirwa, Herrington Dlamini, Blessing Mduduzi Singwane, David Boy Dube (former HOD), Vusi Willem Magagula, Bongani Louis Henry Sibiya, Elmon Lawrence Mdaka and Sibongile Mercy Mdaka are accused of fraud, theft and money laundering pertaining to the inflating of prices during the sale of two farms to the state. They are charged alongside four companies: The Little River Trading 156, Broad Market Trading 204, Bongiveli and Pfuka Afrika.
Kardish owned Rietspruit farm in Ermelo which the Mpumalanga department of human settlements bought for R26m in 2011. The state alleges that another farm owned by Petros van Tonder in eMalahleni was sold to the same department for R37.5m when in fact he asked for R17.5m.
When the alleged crime was committed Bongo was the legal adviser of the department and the state alleges he advised the department to get the services of one of the accused who is a conveyancer.
Kardish said: “ I charged R10.5m for the farm, the amount of R26m I do not know.”
State prosecutor Adv Henry Nxumalo said R4.5m from the R26m which the department paid for the Rietspruit farm was paid to Pfuka AFRIKA, a company owned by Mdaka and his wife, Sibongile.
The farm was being bought by the department of human settlements on behalf of the Msukaligwa local municipality for an integrated township development.
Farmer manager Darrol Kardish told the court that after he had put the farm on the market he received a call from Magagula, one of the accused, who showed interest in buying it.
“He asked for the price and we told him. We held a number of meetings where in attendance was Willem [Magagula], Lawrence Mdaka and Bongani Sibiya, and one of the meetings was held at the Mugg & Bean in Ermelo.
“We talked about the price and Lawrence went to have a look at the farm and he was happy. We agreed that they should meet our lawyers in Johannesburg and before the meeting a non-negotiable amount of R1m should be paid and they did. We met and sold the farm,” the manager said.
The trial continues.