Why the Special Tribunal ordered the return of five luxury cars seized during ‘Maumela raid’ by SIU

The Special Tribunal has ruled that five luxury vehicles that were preserved in terms of an order sought by the Special Investigating Unit in connection with its investigation of alleged wrongdoing of the "Maumela syndicate" in the alleged Tembisa Hospital corruption scandal, must be released to the rightful owner.

The tribunal was hearing a matter regarding five vehicles that were preserved in terms of an order granted in September last year. The vehicles are:

• 2023 model Aston Martin
• 2023 model Aston Martin
• 2023 model Rolls Royce
• 2021 model Ferrari 812
• 2018 model Ferrari 488GTB

At issue in the present case was that the SIU had failed to disclose to the court, when it had applied for the preservation order, that the vehicles were registered in the name of Omar's Mobile Den CC trading as Omar's Motor Den and were not owned by Hangwani Morgan Maumela or his family trust.

It is alleged that Maumela was a leader of one of the syndicates in the Tembisa Hospital procurement scandal, which was first exposed by murdered whistleblower Babita Deokaran.

It has previously been reported that the SIU investigation which spanned 2018 to 2023, revealed a sprawling network of corruption, maladministration and procurement fraud at Tembisa Hospital, involving three major syndicates responsible for looting more than R2 billion of public funds. 

Omar's Motor Den, which brought the matter before the tribunal, had argued that the SIU had been aware that eNATIS (vehicle registration system) certificates showed that it owned the vehicles. It asked the tribunal to release the vehicles from the preservation orders.

The SIU had argued that the vehicles in question were bought with the proceeds or instruments of unlawful activity. The SIU said that the mere registration and alleged payments of the purchase price by the applicant for the vehicles is insufficient to disturb the preservation order at this stage.

The SIU further submitted that the continued preservation of the vehicles is necessary and justified as the underlying transactions passing ownership to the applicant are suspect.

The tribunal said the central issue for determination was whether the production of the eNATIS certificates reflecting ownership is sufficient proof of ownership even if the underlying transaction of transfer of ownership is challenged on the basis of a fraudulent scheme and whether a non-existent transferor can pass true ownership.

In its ruling, the tribunal said that at this stage there was no evidence of corruption against Omar's Motor Den. 

“There are suspicions as the applicant (Omar's Motor Den) purchased luxury vehicles without considering more carefully the authenticity of the purported owners of the vehicles and whether the sellers were indeed entitled to pass transfer. On a rough calculation, the applicant bought about R40 million worth of vehicles at a significantly discounted price in a matter of months in some instances. The evidential value of this discrepancy at this stage remains an allegation and not evidence.”

The tribunal also found that the SIU should have disclosed all material facts including the registered owners of the vehicles when it had sought the preservation order and ordered it to pay the costs of the application.

In terms of the order releasing the vehicles to Omar's Motor Den, the tribunal ruled that this was subject to certain conditions, including that Omar's Motor Den must put up security equivalent of the market value of each vehicle.

It also ruled that in the event that they wish to sell any of the vehicles, the curator bonis, responsible for the preserved items, must first agree to such intended sale based on factors such as purchase price, the details of the person or entity to whom the vehicle will be sold.

The order also states that the security shall remain in place and shall only be released or adjusted by an order of the Special Tribunal.

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