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Controversial businessman in the hot seat over contempt relating to assets

Controversial businessman in the hot seat over contempt relating to assets
Hamilton Ndlovu has previously been linked to suspicious Covid PPE contracts. (Photo: Twitter)
Vincent Cruywagen
By Vincent Cruywagen
8 Nov 2024
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If businessman Hamilton Ndlovu refuses to hand over the curator’s stipulated assets, he faces up to 30 days in prison or a R500,000 fine imposed by the Special Tribunal. Ndlovu claims he does not have the requested assets and intends to file an appeal.

Earlier this week, the Special Tribunal delivered judgment on a contempt application against Ndlovu and five others, for failing to surrender assets sought by the curator under a forfeiture order.

Ndlovu has been in the news previously, linked to suspicious Covid PPE contracts.

The assets Ndlovu allegedly failed to surrender and that were sought by the curator Zaheer Cassim were:


  • A Mercedes-Benz G63 AMG;

  • A 2020 Cartier gentleman’s wristwatch with a black leather bracelet and serial number 488751ZX;

  • A 2020 Rolex Oyster Perpetual, white Roman numerals gentleman’s wristwatch with gold and silver bracelet – Model 126233 with serial number 267M719; and

  • Scania trucks.


The curator, Zaheer Cassim, who was appointed as the curator bank, or a bank account of the National Health Laboratory Services (NHLS), submitted this application as a last resort because they were unable to trace these assets.

On Wednesday, 6 November, Judge Lebogang Modiba ruled that Ndlovu was in contempt of a Special Tribunal judgment issued on 7 June 2022.

Modiba further ordered that:

  1. Ndlovu is committed to prison for a period of 30 days. A warrant of arrest is authorised for the immediate arrest and committal of the first respondent (the incarceration order).

  2. The incarceration order is suspended for a period of 30 days to allow the first respondent to comply with the Special Tribunal’s order.

  3. Ndlovu is fined R500,000 for contempt of the orders of the Special Tribunal. This fine is wholly suspended for a period of one year, on condition that he is not found guilty again of contempt of the Special Tribunal orders during the period of suspension.


Ndlovu told Daily Maverick on Thursday that he does not have the sought-after assets and will file an appeal within the next week.

“I know nothing about the Scania trucks. It’s not mine. They are searching for assets that do not belong to me. An appeal is coming,” he said.

He claims the trucks belong to Akanni Trading and Projects (Pty) Ltd.

This contempt application stems from a Special Tribunal order issued on 7 June 2022. In that case, Ndlovu was ordered to repay R157-million obtained fraudulently through personal protective equipment contracts.

The contracts worth R172-million have been declared unlawful, invalid and set aside. This after the National Health Laboratory Services (NHLS) applied to review and set aside procurement transactions for the supply of PPE between the NHLS and eight companies owned by Ndlovu and his associates. 

In terms of a judgment delivered by Modiba on Tuesday 7 June, 2022 the following assets were declared forfeited to the State:

  • The properties and funds are held by Thabiso Hamilton Ndlovu, Ziasan Kaihatsu (Pty) Ltd and Bugatti Security Services and Projects (Pty) Ltd.

  • The vehicles are held by Akanni Trading and Projects (Pty) Ltd.

  • The assets and funds held by the Thabiso Hamilton Ndlovu and Hamilton Holdings (Pty) Ltd, Hamilton Projects CC, Mok Plus One (Pty) Ltd, Abompetha (Pty) Ltd and Feliham (Pty) Ltd.


Read more:  “Hamilton Ndlovu’s opulent empire implodes as he’s ordered to pay back the millions”

The Special Investigating Unit (SIU) had been investigating corruption allegations that involved eight companies linked to Ndlovu. In 2020, the eight companies owned by Ndlovu and his associates received PPE contracts worth a total of R172-million from the NHLS. 

At the time of the conclusion of the contracts, the NHLS adopted emergency procurement procedures in response to the outbreak of the Covid-19 pandemic.

The SIU contended that the procurement transactions for the supply of PPE between the NHLS and Bugatti Security, Hamilton Holdings (Pty) Ltd, Mok Plus One (Pty) Ltd, Abompetha (Pty) Ltd, Feliham (Pty) Ltd, Joritans Logistics (Pty) Ltd, Persto (Pty) Ltd and Kgodumo Mokone Trading Enterprise (Pty), and payment made to them in terms of the impugned transactions, were irregular and unlawful and therefore unconstitutional.

Hamilton Ndlovu has previously been linked to suspicious Covid PPE contracts.
(Photo: Twitter)


Scathing judgment


On the scope of the forfeiture order, Modiba stated that Ndlovu disputed that the AMG and wristwatches were subject to the forfeiture order. 

The curator, on the other hand, argued that the sought-after assets should have been surrendered to him as part of the SARS order obtained in September 2020 and confirmed in March 2021 in favour of SARS. The SARS order preserved all the assets of the Ndlovu respondents for tax liabilities.

“I have found that the wrist watches and AMG are not part of the forfeited assets. On the issue of ownership of the Scania trucks under Akanni’s rescission application I find that Mr Ndlovu acquired the trucks with proceeds from the impugned transactions.

“They therefore do not belong to Akanni. Ndlovu has not sustained the basis on which he refused to hand over the Scania trucks to the curator. I therefore find that Mr Ndlovu has failed to comply with the forfeiture order,” Modiba stated.

As a result, Modiba determined that the curator proved beyond a reasonable doubt that Mr Ndlovu’s failure to comply with the forfeiture order was intentional or mala fide.

Furthermore the Special Tribunal determined that Ndlovu did not dispute that he promised to hand over and/or provide the location of the Scania trucks during a March 2023 meeting.

“He continues in his efforts to hide, conceal and/or dispose of assets as he is doing with the Scania trucks in breach of the order under which they were preserved. The Scania trucks were preserved in terms of the 4 October 0rder.

“Mr Ndlovu was aware of that order. Notwithstanding that he did not comply with it, he opposed it. That order was granted on the basis that the trucks were acquired with proceeds from the impugned transactions and that Mr Ndlovu used Akanni as a front to acquire the trucks to conceal the trail of funds. Mr Ndlovu did not dispute these allegations.

Curator fight continues


The curator’s office informed Daily Maverick on Friday that if Ndlovu fails to comply with the Special Tribunal’s contempt order after the 30-day suspended incarnation order expires, they will again approach the tribunal.

Earlier this year in August, the curator sold four of Ndlovu’s luxury vehicles at Park Village Auctions in Johannesburg for a total of about R8.5-million. They were:

  • 2020 Porsche Cayenne S: Sold for R1,230,000

  • 2020 Porsche 911 Carrera Cabriolet: Sold for R1,800,000

  • 2019 Porsche Panamera GTS Sport: Sold for R1,360,000

  • 2019 Lamborghini Urus 4.0 V8: Sold for R4,345,000


The execution of the 30-day prison sentence or R500,000 fine will depend on what Ndlovu does, and this process could be further delayed once Ndlovu has filed his leave to appeal. DM

 

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