Gold syndicate loses R6.2m assets

NPA granted forfeiture order after trial finally ends

The Bloemfontein High Court this week concluded a five-year trial of an 18-member gold syndicate and granted the National Prosecuting Authority (NPA) an order to confiscate their assets worth over R6.2-million.

Justice Johan Daffue gave the order on Monday after more than 80 witnesses testified in the matter.

The Msimango Syndicate named after the four brothers who led it – Sibusiso, 34, Andrew, 44, Rise, 31, and MacDonald, 28 – was involved in the refining and dealing in unwrought gold from 2000 until their arrest in 2008.
Unwrought gold is impure gold which needs further processing, mainly refining, before it can be used to manufacture other articles.

The syndicate was accused of racketeering and money laundering.

The lavish lifestyles led by some of the members who owned expensive cars and houses yet they were unemployed led to their arrest in 2008.

NPA spokesperson in the province, Phaladi Shuping, said the convicts have 30 days to come up with over R6-million to release or free up their properties in the form of houses, plots and cars confiscated by the NPA after their arrest.

“They have 12 properties in the form of plots, houses and cars. They also have investments that they have put in a trust. Due to the depreciation of value, the cars were sold. In total, their properties are worth over R6.2-million,” explained Phaladi.

One of the Msimango brothers, Sifelane, who was also standing trial, was killed in a road traffic accident early this year before the case could be finalised.

The brothers acted as managers of the syndicate and laundered money by depositing it into an account belonging to Tabana Trust.

They rented and owned farms and plots in Henneman, Wesselbron, Virginia, Welkom and Potchefstroom where they refined the unwrought gold.

The other accused were Silvester Mahamo, Clever Mthimkhulu, Mzala Sithole, Adoons Knight, Patrick Moahloli, Christian Lunga, Clement Nkhi, Tshediso Ramabele, Lucky Sithole, Ndumiso Dube, Rose Somhlahlo, Albertina Khabe and Patience Msimango.

The accused – who included the wives of some of the brothers – faced a total of 103 charges and the state was expected to call 194 witnesses.

This syndicate was also involved in theft of gold and smuggling of the precious metal.

The Msimango brothers, Sibusiso, Andrew and Rise, were each sentenced to an effective 15 years in jail after being convicted on charges of gold, theft, corruption and money laundering.

Sithole brothers Meshack, Mzala and Lucky as well as Lunga, Clement Nkhi, Ramabele and Dube were each sentenced to an effective 10 years behind bars.

Moahloli, Somhlahlo, Khabe and Patience received wholly suspended five-year terms for a period of five years.

Mahamo, Mthimkhulu and Knight were acquitted.