SIU Freezes Lucky Montana's R16-million PRASA Properties

• The Special Tribunal has frozen two multi-million rand properties linked to Lucky Montana, former boss of PRASA.
• The SIU investigation revealed corrupt transactions involving government contracts, particularly in the context of public procurement law.
• Precise Trade and Invest received payments from companies within the TMM group, which were used to purchase the properties in Montana's name.
• The freezing of these properties highlights potential compliance exposures for lawyers involved in corrupt transactions.

The SIU says the Hurlingham property was acquired through a 'series of linked transactions', also involving Precise Trade and Invest, TMM Holdings and Midtownbrace (Pty) Ltd.

The Special Tribunal has issued an interim preservation order freezing two multi-million rand properties linked to Lucky Montana, former boss of PRASA. The order, granted on July 8, prevents Montana from selling, transferring, leasing, or dealing with the properties until further notice. The frozen assets include a R13.5-million property in Hurlingham, Johannesburg, and another R2.25-million property in Waterkloof, Pretoria. The Registrar of Deeds has been directed to endorse the title deeds. This move follows an SIU investigation into corrupt transactions involving government contracts, particularly in the context of public procurement law.

The SIU's investigation revealed that the properties were bought with proceeds from a R5.6-billion PRASA contract for PA systems, access gates, and electronic display boards awarded to Siyangena Technologies, a subsidiary of TMM Holdings. The contract was part of a pilot project aimed at upgrading specific stations for the 2010 FIFA World Cup. Further contracts and extensions were granted, increasing the value to R5.6-billion by April 2016. Bank records showed that Precise Trade and Invest received payments from companies within the TMM group, which were then used to purchase the properties in Montana's name.

The freezing of these properties highlights potential compliance exposures for lawyers involved in corrupt transactions involving government contracts. The SIU's investigation demonstrates how companies and individuals can use complex financial arrangements to conceal illicit activities. This case serves as a reminder that public procurement law requires strict adherence to transparency and accountability principles. Lawyers should be vigilant in identifying and addressing such risks to prevent further corruption and ensure compliance with regulatory requirements.

Lawyers should watch for potential compliance exposures related to corrupt transactions involving government contracts, particularly in the context of public procurement law.

Source: Original reporting via GroundUp