1 February 2018

South Africa: Two Accused in the Dock for Fraud and Illegal Land Sales

press release

The Directorate for Priority Crime Investigation (Hawks) in Newcastle have arrested Busisiwe Mthethwa (53), and her accomplice Phathakahle Khumalo (70), in Vryheid on for rental fraud amounting to millions of rand.

Mthethwa, a widow to the late chief Jabulani Mdlalose of Othaka tribal community and Khumalo allegedly defrauded the Othaka Community Trust approximately R4 million.

During 2007, the Othaka community claimed and won portions of land situated in Abaqulusi area. A Community Trust Fund was formed the same year to oversee their business affairs.

Subsequently, Othaka community represented by Khumalo and the late chief Mdlalose entered into lease agreements with farmers who previously owned the same land and the proceeds thereof to pain into the community trust fund.

The two accused allegedly collected rental income from the farmers and used the money for their own benefits. They also sold some portions of land to the public and allegedly pocketed the profits.

On Tuesday, 30 January 2018, Khumalo and Mthethwa were charged for fraud. They appeared in the Vryheid Magistrate's Court today. Khumalo was granted R30 000.00 whilst Mthethwa was granted R20 000.00 bail. The case has been postponed to March 2 pending further investigations.

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