Bloemfontein – The Free State High Court has issued a R32 million preservation order against former Premier Ace Magashule and others implicated in the infamous asbestos corruption and money laundering scandal. The ruling, granted to the National Prosecuting Authority (NPA), includes the seizure of a luxury Mercedes-Benz G63 AMG, allegedly purchased for R2 million in cash — a glaring symbol of the illicit wealth allegedly amassed through government fraud.
The court’s decision represents a major development in the ongoing probe into the Free State Department of Human Settlements (FSDHS) asbestos project, which has long been mired in controversy and accusations of grand-scale corruption.
Lavish Assets and a Web of Crime
According to the NPA, the frozen assets are directly linked to a network of fraud, theft, corruption, and money laundering operations that bled millions from the FSDHS under the guise of asbestos removal contracts.
“The involved individuals, companies, and trusts are alleged to have engaged in a complex web of financial flows, designed to strip the FSDHS of its much-needed resources,” said NPA national spokesperson Mthunzi Mhaga.
The Asset Forfeiture Unit (AFU) revealed that the illicit funds were funneled through a maze of attorneys, property agents, and luxury car dealerships to disguise their criminal origins and fund extravagant lifestyles.
Previous Restraint Order and Escalating Legal Pressure
This preservation order builds on a R300 million restraint order issued by the High Court in September 2020, also related to the asbestos case. That order aimed to prevent the accused from dissipating assets that could eventually be forfeited to the state.
“This order will effectively put a freeze on and thwart any efforts to dissipate the very assets sought to be preserved,” read the NPA’s statement.
The latest move by the AFU strengthens the state’s hand in pursuing criminal prosecution and asset recovery.
Criminal Charges and Legal Consequences
The asbestos scandal revolves around a 2014 contract awarded to companies with political connections to audit and remove hazardous asbestos materials in Free State homes — a project that saw millions allegedly siphoned off without delivering tangible results.
The NPA has charged several individuals and entities in connection with the scheme. Charges include:
- Fraud
- Theft
- Corruption
- Money Laundering
- Contraventions of the Public Finance Management Act (PFMA)
- Violations of Asbestos Regulations
Magashule, a prominent ANC figure and former Secretary-General, has denied all allegations but remains at the center of the multi-million-rand scandal that continues to shake public trust in South Africa’s governance.
What Comes Next?
The preservation order is a precursor to forfeiture proceedings, which would see the seized assets permanently transferred to the state if proven to be the proceeds of crime. It also signals the NPA’s continued effort to clamp down on high-level corruption, particularly in public housing and infrastructure departments.
As legal proceedings advance, the Free State asbestos saga remains a powerful illustration of state capture, systemic abuse of public funds, and the urgent need for reform in procurement and oversight mechanisms.
