Former Mahikeng Municipal Manager Henry Smit Faces Arrest for R144 Million Land Sale Scandal
A Mahikeng Municipality in Turmoil
In a surprising turn of events, the former municipal manager of Mahikeng local municipality, Henry Smit, has been taken into custody for his alleged involvement in the controversial sale of municipal land valued at a staggering R144 million. This arrest, following a thorough investigation, has sent shockwaves throughout the community and raised concerns about corruption in the region.
Arrest and Court Appearance
On a fateful Tuesday, Smit was apprehended and swiftly brought before the Molopo Magistrate’s Court in Mmabatho. During the court proceedings, he was granted bail, set at R150,000. However, his release on bail comes with stringent conditions that include refraining from interference with state witnesses and a mandate to inform the investigating officer of any plans to leave the Gauteng jurisdiction, where he currently resides.
A Deepening Scandal
The arrest of the 70-year-old Smit was orchestrated by the Directorate for Priority Crime Investigation, commonly known as the “Hawks.” This move was initiated by their Serious Corruption Investigation and Serious Commercial Crimes Investigation units, signalling the severity of the allegations against him.
Questionable Land Sale
The charges brought against Smit revolve around the controversial sale of municipal land with an estimated worth of R144 million. This transaction occurred without the necessary approval from the municipal council, raising serious allegations of impropriety.
Allegations Unveiled
The state alleges that Smit unlawfully reached an agreement with a company for the sale of the municipality’s stand on October 31, 2007. Shockingly, this company provided a mere R5 million as a deposit towards the land acquisition.
Shady Business Practices
Startlingly, it was discovered during investigations that the company ultimately went into liquidation in December 2011 without honouring its outstanding debt to the municipality. Even more astonishing, the assets of this insolvent company were subsequently sold off to another company through an auction, fetching a sum of R16 million. Intriguingly, the new owners of the ERF, in April 2012, altered the company name, and between 2013 and 2015, portions of the ERF were sold and transferred to five additional companies and a trust account.
Entwined Interests
The Hawks’ in-depth inquiry unveiled connections between the directors and shareholders of these companies and the now-defunct liquidated entity. They were alleged to have acted in common interest to illicitly profit from the municipally acquired erf, which raised eyebrows among investigators.
Failed Commitments
Furthermore, it was uncovered that the company that acquired the stand through the auction entered into an allegedly unlawful agreement with the Social Housing Regulatory Authority (SHRA) to construct 2,400 housing units valued at over R301 million. Intriguingly, an amount of R54 million was purportedly approved by the North West Department of Human Settlement to kickstart the project. However, the contract eventually failed to materialize as it had not been budgeted for by the SHRA.
Financial Irregularities
Complicating the situation, investigations led to the revelation that a gratification sum of over R550,000 was disbursed to an involved party, ultimately traced to the purchase of a residence for the accused’s daughter.
A Multitude of Charges: Corruption Galore
Smit now faces an array of charges, including fraud, theft, contravention of the Municipal Finance Management Act (MFMA), four charges of contravention 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).
Awaiting Justice
The gravity of these allegations has left the community, as well as the nation, anxiously awaiting further developments. According to Henry Mamothame, spokesperson for the National Prosecuting Authority in the North West division, additional arrests are anticipated as the investigation reaches its completion, ensuring that justice is served in this complex and far-reaching case.
