Hawks asked to probe former Ingonyama Trust Board chief over R30m fraud allegations

King Misuzulu sits on his throne with other royal family members in Khangelamankengane royal palace in Nongoma north of KZN on 20 August 2022. (Photo: Phumlani Thabethe)

By Chris Makhaye

3 Feb 2025

The Ingonyama Trust Board, through its chief executive, advocate Vela Mngwengwe, has asked elite crime-busting unit the Hawks to investigate and prosecute former board chief Jerome Ngwenya.

A civil matter between the Ingonyama Trust Board (ITB) and its erstwhile chief Jerome Ngwenya and three other respondents over a missing R30m is set for a hearing in the Pietermaritzburg High Court on Monday, 24 March 2025.

The case stems from a purchase of 81.5 hectares of farmland in the Hammarsdale area by the eThekwini Metropolitan Municipality to the value of R30-million. The municipality purchased the land for use as a cemetery.

Ironically, the deal was negotiated by Ngwenya and former eThekwini municipal manager Sipho Nzuza, who is facing, alongside former eThekwini Mayor Zandile Gumede and more than 20 others, a long list of fraud, corruption and money-laundering charges involving a solid waste tender. They are on R500,000 bail. That case is before the Durban High Court.

Former eThekwini municipal manager Sipho Nzuza. (Photo: Mandla Langa)

Read more: Feud between King Misuzulu and Buthelezi is ‘at a point of no return’

Ngwenya, a legal practitioner, served as the chairperson of the Ingonyama Trust Board from 2000 until he was unceremoniously removed by Zulu King Misuzulu kaZwelithini during a reshuffle in 2023. Ngwenya, who was close to IFP leader and then Zulu prime minister Prince Mangosuthu Buthelezi, was the second and longest-serving chairperson, having taken over from Owen Green who was the first chairperson when the board was established in 1998. His removal in 2023 sparked a bitter row between King Misuzulu and Prince Buthelezi, which lasted until Buthelezi died in late 2023.

The ITB, through its chief executive, advocate Vela Mngwengwe, has also deposed affidavits to the Hawks, asking the elite crime-busting unit to probe and prosecute Ngwenya, his former secretary Sue-Ellen Ellis, lawyer Philani Japhta and his company Japhta and Associates on charges of fraud, perjury and corruption in that they worked in concert to defraud the ITB and its beneficiaries at least R36-million (of which the ITB is claiming back R30-million with interest).

Court papers

The other three entities, except Ngwenya, have been served papers in a civil matter to this effect. But there has been a hide-and-seek drama for the past two weeks involving ITB lawyers, the sheriff of the Pietermaritzburg High Court and Ngwenya. When the sheriff of the court arrived at Ngwenya’s official residence in Pietermaritzburg to serve him papers last week, they found his son, who refused to accept and sign for the papers, saying he did not have permission or authority to receive papers on behalf of his father.

King Misuzulu on his throne accompanied by members of the royal family, in Khangelamankengane royal palace in Nongoma, northern KZN, on 20 August 2022. (Photo: Phumlani Thabethe)

When Ngwenya was informed by the sheriff that digital court papers had been sent to him via email, he allegedly informed them that he did not recognise digitally sent papers and disputed their authenticity. Up until late on Friday, the sheriff was still struggling to secure an appointment with Ngwenya to serve him these papers.

Speaking to Daily Maverick on Sunday, Ngwenya said he had heard through the media about the cases against him.

“I have heard about these but there are no court documents that have been served to me yet. Once these papers have been formally sent to me, I will respond in the most appropriate and honest manner. Until then I cannot speak about speculations in the media,” he said, refusing to answer any further questions.

Ngwenya is central to both the criminal and civil matters brought by ITB, according to affidavits drafted by its CEO Mngwengwe to the Hawks and the Pietermaritzburg High Court.

Accusations

In the criminal and civil matter, Mngwengwe accuses Ngwenya of not failing his fiduciary duties as the chairperson of the board, but of actively working in concert or instructing others and entities to defraud the ITB and its beneficiaries of millions of rands.

One of these entities is Ingonyama Holdings, in which Ngwenya is the sole director and beneficiary and which Ngwenya has refused to surrender to the ITB even though he no longer holds any position in the Ingonyama Trust Board or any of its subsidiaries.

Mngwengwe said the ITB had made several attempts to get Ngwenya to explain his motivations for removing funds from the legal ITB bank accounts to third parties, or to return these funds, but Ngwenya has refused.

Mngwengwe told Daily Maverick on Friday that the ITB was determined to proceed on the two matters.

“As far as we are concerned, we are moving ahead on these matters. The Hawks will be conducting their own investigations and thereafter would decide whether to press charges against any or all the individuals and entities implicated.

“On the second matter, we are looking forward to the 24 March court date. We are still awaiting the answering affidavits from the respondents. We are aware that the sheriff has struggled to serve papers to at least one of the respondents. However, the ITB is ready for the civil matter to proceed so that it can recover the funds that were unlawfully and fraudulently removed from its account.

Department ‘sitting it out’

Linda Page, spokesman for the Minister of Land Reform and Rural Development Mzwanele Nyhontso, said although the minister had been briefed and was therefore aware of the ongoing litigation between the ITB, Ngwenya and others, the department was sitting this matter out and would not directly partake in the litigation.

“The Minister and the Department of Land Reform and Rural Development are not part of this court matter,” she said.

Attempts for comment from senior officials in the office of King Misuzulu on the ongoing litigation proved fruitless.

Meanwhile, tensions continue between King Misuzulu, Minister of Land Reform and Rural Development Nyhontso and members of the National Assembly’s portfolio committee on land reform and rural development.

This follows an unexpected announcement by King Misuzulu in December last year that he had decided to dissolve the ITB board, sacked CEO Mngwengwe and its CFO, Siyamdumisa Vilakazi, and instead appointed his attorneys to conduct the day-to-day running of the ITB.

This was strongly refuted by Minister Nyhontso, saying the ITB and all its employees were still in their respective roles. He said the powers of firing and hiring board members resided with the minister and the National Assembly in consultation with other stakeholders, including the Zulu king.

The committee was due to meet the king last week but was dissuaded from this at least until after the State of the Nation Address by President Cyril Ramaphosa on Thursday, 6 February.

Page said the minister had not yet had confirmation of a meeting with the Zulu king, despite sending a letter of request weeks ago. She confirmed that the minister would be keen to clarify the king’s powers pertaining to the Ingonyama Trust Board and the composition of its members and their fiduciary role.

“The offices are still coordinating the suitable [meeting] date. The agenda is on the responsibilities and operations of the board,” Page told Daily Maverick. DM

Categories:

Tags:

DM is much better if you are signed in...

South Africa

Court papers

Accusations

Department ‘sitting it out’