In a stunning turn of events, Henny Smit (70), the former Municipal Manager of Mahikeng Local Municipality, appeared in the Molopo Magistrate's Court on Tuesday. Smit, a pensioner, faces a slew of charges related to the unlawful sale of municipal land to the value of a whopping R140 million. Smit's arrest and court appearance follow a lengthy investigation by the Hawks' Serious Corruption Investigation and Commercial Crime Investigation Units.
Smit, arrested on Tuesday, appeared in court on the same day and was granted R150,000 bail. He has been charged with fraud, theft, Contravention of the Municipal Finance Management Act (MFMA), four counts of the Prevention and Combating of Corruption Activities Act (PRECCA), two counts of corruption, money laundering, and Contravention of the Public Finance Management Act (PFMA). One of his bail conditions is that he should not interfere with the State's witnesses.
Furthermore, he must inform the investigating officer if he intends to travel outside the Gauteng jurisdiction, where he currently resides. The case has been postponed to December 8 to allow for the arrest of other suspects involved in the same R140m scandal. The charges against Smit stem from his alleged involvement in selling the municipality land without council approval and circumventing the competitive bidding process.
It is claimed that this illicit agreement dates back to October 31, 2007, when Smit, in his official capacity, agreed with a company to sell municipal land. The company paid a mere R5 million as a deposit for the land. Investigations have revealed that the company subsequently went into liquidation in December 2011 without settling the outstanding debt to the municipality.
Shockingly, the assets of this liquidated company were later auctioned off to another entity for R16 million. Following this, the new landowners, who had connections to the liquidated company, sold and transferred portions of the land to five other companies and a trust account between 2013 and 2015. The Hawks' investigation exposed that the directors and shareholders of these companies had common interests and acted concertedly to gain from the irregular acquisition of municipal land.
Moreover, the company that bought the land at auction entered into an unlawful agreement with the Social Housing Regulatory Authority (SHRA) to construct 2 400 housing units valued at over R301 million. An astounding R54 million was allegedly authorised by the North West Department of Human Settlement for this project, which ultimately failed to materialise as SHRA did not budget for it. Disturbingly, the investigation also revealed that an amount exceeding R550 000 was paid as gratification to one of the suspects, with further traces leading to purchasing a house linked to the accused's daughter.
The charges against Smit include fraud, theft, Contravention of the MFMA, four counts of the PRECCA, two counts of corruption, money laundering, and Contravention of the PFMA regarding the loss incurred by the Human Settlement department. Authorities anticipate additional arrests as the investigations unfold. Dr Rachel Makhari, the Director of Public Prosecutions in the North West, and Major General Patrick Mbotho, the Provincial Head of the Directorate for Priority Crime Investigation, praised the dedicated teams from their respective entities for their relentless pursuit of justice.
In response to these shocking allegations, the Maftown Revival Forum (MAREFO) issued a statement expressing deep concern over the latest developments and the arrest of Smit. Kgosietsile Sehularo, Chairperson of MAREFO, stated: "This case highlights the pressing need for transparency, accountability, and robust anti-corruption measures within our local government institutions. All those found guilty of corruption must face the full force of the law. We will continue to advocate for stronger mechanisms to prevent and combat corruption at all levels of government."
Sehularo continued, "This incident is a stark reminder that corruption and the looting of state resources are not confined to any particular political party or affiliation. It results from a criminal mindset, irrespective of colour or creed. It is indeed very shameful that a person entrusted with authority such as him would have found it necessary to defraud the residents of Mahikeng as he did by selling assets without council approval. It shows that this was a well-calculated plan to defraud the Mahikeng residents." MAREFO is, however, hopeful that the results will be something that the residents will rejoice on as the perpetrators are given appropriate sentences for crimes committed."
