Court asks Dube to explain source of R400,000 deposit for Merc

The court has asked former Mpumalanga head of human settlements David Dube to explain the source of R400,000 he used as a deposit for a Mercedes Benz AMG in 2011.  

Dube appeared in court on Thursday with former state security minister Bongani Bongo, Bongo’s ex-wife Sandile Nkosi, Robert Burwise, Patrick Donald Chirwa, Herrington Dlamini, Blessing Mduduzi Singwane, Vusi Willem Magagula, Bongani Louis Henry Sibiya, Elmon Lawrence Mdaka and Sibongile Mercy Mdaka. They face charges of fraud, theft and money laundering pertaining to the alleged inflating of prices during the sale of two farms to the state.

They are charged alongside four companies: The Little River Trading 156, Broad Market Trading 204, Bongiveli and Pfuka Afrika.   

They made an application to have their R74m case thrown out of court.

The charges emanate from alleged illegal land deals amounting to R74m, including the purchasing of the farm Naauwpoort in Emalahleni and another farm in Ermelo. There, the state paid R36m instead of R10.5m.

It is alleged that some of the accused misrepresented facts to the department regarding ownership and the true sale price of the farms. Early this year their lawyers filed an application in the Nelspruit Commercial Crimes Court to have their case struck off the roll. Delivering the judgment on Thursday, magistrate Deon van Rooyen threw out charges of contravention of the Public Finance Management Act (PFMA) against Dube.

However, he said Dube still had a case to answer regarding the R400,000 he used as a deposit on his car. The state alleges that Dube’s cash deposit for the Mercedes Benz AMG was money from proceeds of crime from the land deals. 

“On the charge of contravention of PFMA, accused number 7 [Dube] is discharged.

“However, the accused has a case to answer to on the R400,000 cash deposit he made to purchase a Mercedes Benz AMG,” said Van Rooyen.

Speaking to Sowetan outside court after his appearance, Dube said the R400,000 had not been proceeds of crime but money from the sale of his house.   

“I will come to the court and provide the deed of sale for my house which we sold with my wife. I still have the receipts and the deed of sale; that will not be a problem. However, I believe these charges are a political ploy to destroy our names.”

Van Rooyen also cleared Nsingwane Attorneys of fraud, corruption and money laundering charges, including misrepresentation. The company was a conveyancer in both land sales. Bongo and his wife will know their fate on May 10 where Van Rooyen will continue delivering his judgment.