PUBLIC Protector Thuli Madonsela is to probe a land deal that resulted in a Mpumalanga company pocketing R24-million in just six minutes.
The questionable deal was exposed by Sowetan seven months ago.
In September last year Sowetan reported how the Mpumalanga government was involved in a questionable land deal that resulted in a company making a profit of R24-million in just six 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.
Bongiveli is co-owned by Willem Veli Magagula and Bongani Sibiya, hence the name.
Magagula is a well-known businessman in Emjindini and the company, with him at the helm, was involved in the construction of RDP houses at Extension 10A and B and Extension 7 and Extension 8 in 2003. He also established Bongiveli Bakery, which went under only a few months later. Sibiya is a well-respected man of the cloth. He serves at the charismatic Church on the Hill in Barberton.
The DA had written to Madonsela, asking her to probe the deal.
Yesterday, in response to the complaint, Madonsela agreed to investigate the circumstances surrounding the deal.
But Mpumalanga DA leader Anthony Benadie said based on new information that has come to light, they will ask that the investigation be expanded to include all Bongiveli's land deals with the government and local municipalities.
"It has subsequently come to light that Bongiveli has been involved in a number of land deals, most notably in Malalane, where a 70-hectare tract of land was bought by Misty Sea Trading for R5.8-million, then sold to Bongiveli for R41-million, who then resold it to DHS for R50-million in the same year," Benadie said.
In addition the DA recently submitted formal written questions to MEC for human settlements Siphosezwe Masango about land acquired by the department and who it had acquired the land from.
Both of Bongiveli's questionable deals appeared on the list, along with others such as Pacific Breeze Trading, Lezmin 1650 CC and the now defunct Mpumalanga Housing Finance Company.
Benadie said in the light of a number of media reports on questionable land deals in the province, as well as Bongiveli's involvement in these two, the DA will write to Madonsela and ask her to expand the current probe to include the Malalane deal.
- This article was first published in Print on 11 May 2012
Protector to probe fishy 'six-minute' R24m land deal
PUBLIC Protector Thuli Madonsela is to probe a land deal that resulted in a Mpumalanga company pocketing R24-million in just six minutes.
The questionable deal was exposed by Sowetan seven months ago.
In September last year Sowetan reported how the Mpumalanga government was involved in a questionable land deal that resulted in a company making a profit of R24-million in just six 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.
Bongiveli is co-owned by Willem Veli Magagula and Bongani Sibiya, hence the name.
Magagula is a well-known businessman in Emjindini and the company, with him at the helm, was involved in the construction of RDP houses at Extension 10A and B and Extension 7 and Extension 8 in 2003. He also established Bongiveli Bakery, which went under only a few months later. Sibiya is a well-respected man of the cloth. He serves at the charismatic Church on the Hill in Barberton.
The DA had written to Madonsela, asking her to probe the deal.
Yesterday, in response to the complaint, Madonsela agreed to investigate the circumstances surrounding the deal.
But Mpumalanga DA leader Anthony Benadie said based on new information that has come to light, they will ask that the investigation be expanded to include all Bongiveli's land deals with the government and local municipalities.
"It has subsequently come to light that Bongiveli has been involved in a number of land deals, most notably in Malalane, where a 70-hectare tract of land was bought by Misty Sea Trading for R5.8-million, then sold to Bongiveli for R41-million, who then resold it to DHS for R50-million in the same year," Benadie said.
In addition the DA recently submitted formal written questions to MEC for human settlements Siphosezwe Masango about land acquired by the department and who it had acquired the land from.
Both of Bongiveli's questionable deals appeared on the list, along with others such as Pacific Breeze Trading, Lezmin 1650 CC and the now defunct Mpumalanga Housing Finance Company.
Benadie said in the light of a number of media reports on questionable land deals in the province, as well as Bongiveli's involvement in these two, the DA will write to Madonsela and ask her to expand the current probe to include the Malalane deal.
- This article was first published in Print on 11 May 2012
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