Hamilton Ndlovu found in contempt of Special Tribunal forfeiture order

The Special Tribunal has found tenderpreneur Hamilton Ndlovu in contempt of a court order it made in 2022 which ordered that some of his properties be forfeited to the state.

The June 2022 order had declared that 19 personal protective equipment (PPE) tenders awarded to Ndlovu and associated companies were invalid and unlawful.

The tribunal had also ordered that Ndlovu and associated companies pay back R158m from those tenders with interest and that R42m in frozen funds and properties be forfeited to the state. The tribunal also ordered Ndlovu and an associated company to present the forfeited assets to a curator who was appointed by the tribunal in 2022.

The curator went to the tribunal to ask that Ndlovu and associated companies be declared in contempt of the 2022 order as they had failed to surrender several forfeited assets to him in terms of the forfeiture order.

The items in dispute were a Mercedes Benz G63 AMG, a 2020 Cartier gentlemen’s wristwatch, a 2020 Rolex Oyster perpetual gentleman’s wristwatch and Scania trucks.

The trucks are registered to a company known as Akanni Trading and Projects. The trucks were acquired by Akanni with funds paid to it by Shinjiro Group (Pty) Ltd, of which Ndlovu is the sole director.

In opposing the contempt application, Ndlovu and the associated companies alleged the curator did not have the necessary standing to seek an order of contempt because he had not been issued with letters of curatorship.

In turn Akanni and another company under the control of Ndlovu, known as Zaisan Kaihatsu, sought to rescind the forfeiture order to the extent that it related to them.

Akanni and Zaisan disputed that certain forfeited assets belonged to Ndlovu or any of the entities associated with him.

Ndlovu also contended he was unable to hand over the Scania trucks to the curator because they did not belong to him and he did not know their whereabouts.

In her judgment on Wednesday, the president of the tribunal, judge Lebogang Modiba, said the curator had the requisite authority to act in terms of the June 7 2022 order, including applying for an order declaring the respondents in contempt.

However Modiba said the curator had not established that the Mercedes-Benz and the watches were forfeited in terms of the June 2022 order.

On the issue of the trucks, Modiba found the trucks belonged to Ndlovu and he had acquired them through transactions which had been found to be unlawful.

“They therefore do not belong to Akanni. Mr Nldovu has not sustained the basis on which he refused to hand over the Scania trucks to the curator. I therefore find that Mr Nldovu has failed to comply with the forfeiture order.”

Modiba also found the curator had established beyond reasonable doubt that Ndlovu’s non­compliance with the forfeiture order was in bad faith.

Modiba said Ndlovu had not disputed that he made an undertaking to hand over or provide the location of the Scania trucks during a March 2023 meeting with the curator.

“It is clear from the issues he raises in these proceedings that he not only reneged on his undertaking, but he has also misled the curator and has no intention of complying with the forfeiture order to the extent it applies to the Scania trucks.”

Modiba said Ndlovu continued in his efforts to hide, conceal or dispose of assets as he was doing with the Scania trucks in breach of the order under which they were preserved.

The tribunal found that Zaisan, which owns four immovable properties that were forfeited to the state, was in wilful default of the forfeiture order.

She found Zaisan had failed to make a proper case for its delay in bringing the rescission application. She dismissed both rescission applications by Akanni and Zaihatsu with costs.

Modiba ordered that Ndlovu be committed to prison for 30 days.

“A warrant of arrest is authorised for the immediate arrest and committal of (Ndlovu).”

However, the tribunal suspended the incarceration order for 30 days to allow Ndlovu to comply with the Special Tribunal's order.

Ndlovu was ordered to pay the costs of the contempt application on the scale of attorney and client. 

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