Kamogelo Moichela|Published
Seven people have been granted bail after appearing in court over allegations of municipal land fraud involving R144 million and a separate housing scheme that allegedly caused the Social Housing Regulatory Authority (SHRA) financial losses exceeding R100 million.
The accused, Hendrik Smith, Petrus van der Merwe, Barbra van der Merwe, Sarel van Niekerk, Brian Moholo, Tshepiso Moholo and Reggie Mutsi, appeared before the Specialised Commercial Crime Court sitting at the Molopo Regional Court on Thursday and Friday.
They face 46 charges, including corruption, fraud, contraventions of the Municipal Finance Management Act and money laundering, according to a joint statement issued by the National Prosecuting Authority (NPA) and the Hawks on 24 October 2026.
“The agreement required the purchaser to pay the full purchase price. However, only R5 million was paid, leaving an outstanding balance of R139 million,” the statement read.
Investigators alleged that, between 2007 and 2009, the first two accused acted together to defraud the Mafikeng Local Municipality through an unlawful land sale agreement.
The authorities claim the municipality had neither authorised nor known about an arrangement under which the partial payment was allegedly used to amend the original agreement and reduce the purchase price.
In February 2009, the land was transferred after the first accused lodged an application with the Deeds Registry in Vryburg.
The transfer allegedly proceeded despite the unpaid balance and without the required municipal authorisation.
A second alleged scheme operated between 2011 and 2013, during which the second to seventh accused allegedly participated in obtaining more than R100 million in social housing funding using the land.
The funding was purportedly intended to build social housing units in Mafikeng.
However, investigators alleged the planned homes were never completed and that only structures were erected, allegedly to conceal the scheme's true purpose.
Brian Moholo, identified as the fifth accused, was the SHRA chief executive officer at the time and allegedly facilitated and authorised the funding process.
The alleged housing scheme left the regulatory authority facing financial prejudice of more than R100 million, according to the joint statement.
The allegations have yet to be tested in court.
The Hawks arrested the seven accused on October 22 and 23 following investigations by its Serious Corruption Investigation and Crimes Against the State units.
All seven were granted bail. Six received bail of R10,000 each, while Moholo was granted bail of R5,000.
The matter was postponed to December 7 for further investigations as the case proceeds.
kamogelo.moichela@iol.co.za
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