The Bloemfontein High Court has granted a preservation order to the National Prosecuting Authority (NPA), allowing it to seize assets worth over R34 million linked to the Free State asbestos corruption and money laundering case.
Free State asbestos latest news: State granted preservation order
The court’s decision means that six properties valued at R32 million and a Mercedes-Benz bought for R2 million in cash can now be frozen while the investigation continues.
A preservation order is a legal tool used by the state to temporarily freeze assets believed to be connected to criminal activity. This helps stop people from selling or hiding those assets before a final decision is made by the court.
According to the NPA, these assets are believed to be proceeds of crime—money or property gained illegally—linked to a R255 million asbestos removal tender from the Free State Department of Human Settlements (FSDHS).
The asbestos tender was meant to fund the removal of dangerous asbestos material from homes in the Free State, but investigators believe much of the money was stolen or misused.
“The involved individuals, companies, and trusts are alleged to have engaged in a complex web of financial flows, designed to strip the FSDHS of its much-needed resources,” said NPA national spokesperson Mthunzi Mhaga.
He explained that the money moved through attorneys, property agencies, and luxury car dealers to disguise where it came from and how it was spent.
The NPA’s Asset Forfeiture Unit (AFU) used financial records to trace how the money was spent and proved that the assets were bought using funds linked to the corrupt tender.
This new preservation order follows an earlier restraint order of R300 million, granted by the same court in 2020. A restraint order is also used to block people from using or hiding property believed to be linked to a crime.
The NPA says this is a big step forward, as the preserved assets could later be forfeited—which means they would become the property of the state.
The asbestos scandal has already led to criminal charges against several people and organisations, including former Free State Premier Ace Magashule. They are facing multiple charges such as fraud, theft, corruption, money laundering, and breaking various public finance and asbestos safety laws.
The NPA said it would continue to act against anyone involved in this case and use all legal tools to recover stolen public funds.
