A lengthy legal process led by the Special Investigating Unit (SIU) culminated in a final forfeiture order granted on 31 October 2024. After years of litigation and four preservation orders, the land has now been vested back in the state.

Originally earmarked for low-cost housing, public schools, and community amenities, the property was formally returned to the municipality on Wednesday (18/3) by SIU head Andy Mothibi.

“We are pleased that we’ve reached this milestone of having recovered the land that belongs to the North West government, in particular the Mahikeng municipality. Today marks a formal handover; the forfeiture has been done, so we are handing it over to the government and the people of Mahikeng.

Stolen land handed over to the Mahikeng municipality by the SIU. Photo supplied

“We emphasised the crime that has been committed in stealing this land will be prosecuted and those responsible will be held to account,” said Mothibi.

The handover is not the end of the matter. Authorities have confirmed that criminal proceedings are being revived, with the NPA reaffirming its commitment to pursuing accountability.

The case dates back to 2017, when the standing committee on provincial public accounts sharply criticised the Mahikeng municipality for failing to investigate the illegal sale of land near Unit 3. The land meant for social housing development had been sold to a private company, despite glaring irregularities.

During oversight meetings, the municipality admitted it had not conducted any internal investigation against officials responsible for the unlawful transaction, even though a title deed had already been issued.

Then, acting municipal CFO Terrence Mathe revealed a company called Hawks Landing had purchased part of the land for R144m, paying only a R5m deposit.

Stolen land handed over to the Mahikeng municipality by the SIU. Photo supplied

“Although the company went bankrupt, and later, the land was auctioned and purchased by Marang Estates Development and Zastrofusion Pty. Ltd, the outstanding balance of R139m was never paid to the municipality, but a title deed was issued, and no internal investigation was conducted for such maladministration,” said Mathe.

Further complications arose from a failed housing project tied to the same land. In a presentation, then head of the local government department Ephraim Motoko, explained that in the 2013/14 financial year, the provincial government agreed with a developer to construct 612 housing units as part of a larger 2,400-unit plan.

“The amount was transferred to the developer where construction commenced until it was brought to a halt by the National Home Building Registration Council for noncompliance due to non-enrolment of the project in 2013/14,” said Motoko.

‘The municipality admitted it had not conducted any internal investigation 
against officials responsible for the unlawful transaction’

The project, funded with R54m in public money, was ultimately abandoned and left vulnerable to vandalism.

Scopa chairperson Mahlakeng Mahlakeng strongly condemned the municipality’s inaction, highlighting the scale of financial loss and lack of accountability.

“Responsible officials for the illegal granting of title deed when the purchaser only paid R5m should be strongly condemned. The municipality’s only excuse is that the Hawks and other state security agencies are investigating and that some documents were stolen.

“The government has lost over R54m of taxpayers’ money on a failed housing project, but there is no accountability. The unfinished project is vandalised,” said Mahlakeng.

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OFM News/Kekeletso Mosebetsi sm