Asset Forfeiture Unit freezes R6.2m linked to Eastern Cape pirate streaming operation

The preservation order, related to funds held in a bank account, was granted by the Eastern Cape high court (Gqeberha) against Damian Grundlingh, a resident of Despatch. (Supp)

The National Prosecuting Authority’s (NPA) Asset Forfeiture Unit (AFU) has obtained a court order to preserve R6.2m belonging to a man who is allegedly involved in the unlawful distribution of copyrighted MultiChoice content.

The preservation order was granted on Tuesday by the Eastern Cape High Court in Gqeberha, in terms of the Prevention of Organised Crime Act (Poca), against Damian Grundlingh, a resident of Despatch. The order relates to funds held in his bank account.

NPA spokesperson Luxolo Tyali said the AFU, represented by Warren-Mark Myburgh SC, argued that the funds constituted proceeds of unlawful activities, including alleged fraud and cybercrime.

“According to evidence presented to the court, Grundlingh has allegedly been operating an illegal live-streaming service since at least October 2024 by unlawfully accessing and distributing copyrighted MultiChoice content without authorisation.”

Tyali said it is alleged Grundlingh pirated protected MultiChoice content and resold access to customers by providing access codes. Customers allegedly paid a monthly subscription fee, reportedly around R160, in exchange for access to the illicit streaming service.

Between January 2025 and April 2026, approximately 104,667 MultiChoice-related transactions were identified involving Grundlingh and his customers.

“At this stage, Grundlingh has neither been arrested nor charged, as the criminal investigation remains ongoing. He is being investigated for possible contraventions of the Cybercrimes Act of 2020 and the Copyright Act of 1978.”

Tyali said the preservation order was obtained without prior notice to Grundlingh and in the absence of an arrest.

“This is permitted under Poca, which allows the National Director of Public Prosecutions to approach the high court for the preservation of property suspected to be the proceeds of unlawful activities, even where criminal charges have not yet been instituted.”

Tyali said this process forms part of the non-conviction-based asset recovery regime, which enables the state to preserve and potentially recover assets linked to unlawful activities independently of a criminal conviction.

He said the preservation order and supporting application will now be served on Grundlingh.

“Should he choose not to oppose the proceedings, the NDPP may, within 90 days of the publication of the preservation order in the government gazette, apply to the high court for a forfeiture order.”

Tyali said if granted, the forfeiture order will result in the preserved funds being paid into the Criminal Assets Recovery Account, which supports law-enforcement initiatives and efforts to combat crime.

Eastern Cape acting director of public prosecutions Samkelo Mtwana welcomed the preservation order, describing it as an example of the effective use of the asset forfeiture regime to target the financial gains derived from unlawful activities.

“The preservation of these funds demonstrates that the NPA will not only pursue those suspected of engaging in unlawful activities but will also target the proceeds generated from such conduct,” he said.

Mtwana said the alleged large-scale piracy operation highlights the significant financial impact that cyber-enabled and intellectual property-related offences can have.

“Through the AFU, we will continue to use every lawful means available to deprive suspected offenders of the benefits of their unlawful activities.”

TimesLIVE



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