Durban — Three people, along with their companies, have been charged with fraud after allegedly defrauding members of the public of more than R6 million by acting as agents that build houses.
Company sole directors Nosipho Mthembu of IHOMZ Civils (Pty) Ltd, Nondumiso Brightness Ngcobo of Big 10 Holdings (Pty) Ltd, and Muziwenhlanhla Elias Cele of House Plans Express (Pty) Ltd are facing 67 counts of theft and fraud involving more than R100 000 per count.
According to court documents, seen by the Daily News, the trio are charged with fraud, contravention of provisions of the Housing Consumers Protection Measures Act, receiving deposits in contravention of the Banks Act, and contravening the Prevention of Organised Crime Act.
Cele, who is in custody pending the outcome of an opposed bail application, appeared for a bail application at the Durban Commercial Crime Court on Wednesday.
His co-accused are out on bail and are expected back in court on August 25.
It is alleged that the trio advertised in the newspaper that their companies were building houses at a reasonable price. But they were not registered as home builders with the National Home Builders Registration Council.
According to a court document, the complainants would respond to an advertisement and be made to sign contracts after making a choice of homes and then deposit money in either one of the company accounts.
However, the houses were never built and the money was allegedly spent on personal effects.
According to the charge sheet, all three companies received deposits from members of the public from November 2012 to April 2021.
“The accused either directly, indirectly or in most cases via written agreements invited members of the public to deposit monies through their companies to have houses built for them.
“They all received and accepted funds or deposits from the general public for the building of houses. All accused were in control of the accounts and were responsible for the administration of funds and deposits received by their companies,” read the charge sheet.
It further stated that the accused utilised funds paid over by the complainants as their own and for their own purposes without building any houses while acting personally or through an agent or agents.
The charge sheet stated that Cele unlawfully acquired, used or possessed property to the amount of R1 043 500 while Mthembu and Ngcobo acquired R3 687 226.20.
The State said the trio intentionally stole money from the public with no intention to build them houses for the amounts of money deposited in their companies’ accounts.
“The accused unlawfully, falsely and with the intention to defraud through the means of misrepresentation caused the complainants to act to their prejudice, as a result thereof, paid the amounts to the accused bank accounts, and any other person linked to them.
“They were not registered. They were not capable of building houses, such amounts should not be paid into their accounts, they were not entitled and authorised to accept such deposits in the amounts.
“They conducted the business of a bank and, whilst the accused and property image were not public companies and were not registered as a bank,” read the charge sheet.
During the court proceeding on Wednesday, Cele kept on looking down and touching his head. This led the judge not to conclude the bail application.
Speaking to the Daily News outside court, Cele’s attorney Wesley Rogers said it had transpired that Cele suffered from a heart condition and diabetes.
Rogers said Cele’s medical situation had deteriorated and he required urgent medical treatment as it had become apparent that the prison was not providing him this treatment.
Cele’s bail application is expected to be concluded on August 23.
Daily News