Pretoria High Court orders forfeiture of R1.8 million in fraud case
Pretoria High Court orders forfeiture of R1.8 million in fraud case! The North Gauteng High Court in Pretoria has ordered the forfeiture of over R1.8 million to the state following a fraudulent scheme that targeted Colliery Dust Control (Pty) Ltd, a well-established manufacturing company.
The scheme, which involved the unauthorized diversion of company funds, resulted in a significant financial loss for the business. However, due to swift legal and financial intervention, the stolen funds were recovered and are now set to be returned to their rightful owners.
How the Fraud Was Carried Out
The fraudulent activities first came to light in June 2024, when the Managing Director of Colliery Dust Control received a suspicious letter. The letter, allegedly from one of the company’s trusted service providers, Transvaal Electric Motors, instructed the company to redirect future payments to a new bank account.
Believing the request to be legitimate, Colliery Dust Control transferred a substantial sum of over R1.8 million into an Absa bank account belonging to Rodney Mokhabokhi. It later emerged that the letter was fraudulent and that Transvaal Electric Motors had not changed their banking details or issued any such request.
Pretoria High Court
This type of fraud, commonly referred to as business email compromise (BEC) fraud, involves cybercriminals impersonating legitimate businesses or suppliers to deceive companies into transferring funds into fraudulent accounts.
Fraud Exposed and Investigation Launched
Colliery Dust Control quickly realized that they had fallen victim to a scam when they contacted Transvaal Electric Motors for confirmation. Upon learning that the service provider had never changed its banking details, the company promptly reported the matter to law enforcement authorities.
The case was escalated to the Financial Intelligence Centre (FIC), which specializes in tracking and analyzing suspicious financial transactions. With the help of banking institutions, investigators were able to freeze Mokhabokhi’s bank account before the funds could be withdrawn or transferred further.
Legal Action and Asset Forfeiture Process
Following the investigation, the Pretoria Asset Forfeiture Unit (AFU), a division of the National Prosecuting Authority (NPA), took legal steps to secure the stolen funds.
According to Lumka Mahanjana, the regional spokesperson for the NPA in Gauteng, the AFU successfully applied for a preservation order in August 2024, preventing the withdrawal or movement of the money.
After thorough legal proceedings, the North Gauteng High Court granted a forfeiture order in March 2025, officially allowing the state to seize the funds. The next step will be ensuring that the recovered money is returned to Colliery Dust Control, restoring the company’s financial stability after the fraudulent loss.
Collaboration Between Crime-Fighting Agencies
This case highlights the effectiveness of cooperation between various crime-fighting agencies, including the NPA’s Asset Forfeiture Unit (AFU), the South African Police Service (SAPS), and the Financial Intelligence Centre (FIC). Their joint efforts played a crucial role in ensuring that justice was served and that businesses remain protected against fraudulent schemes.
Cybercrime and financial fraud cases have been on the rise in South Africa, prompting authorities to take stronger measures against individuals and criminal syndicates that engage in such deceptive activities.
Court Case Continues in April 2025
Although the funds have been secured, legal proceedings against Mokhabokhi are still ongoing. The case is set to return to court at the Springs Magistrate’s Court on April 15, 2025.
Authorities are expected to present more evidence regarding the fraudulent activities, including possible co-conspirators and the methods used to orchestrate the scam. If found guilty, Mokhabokhi could face serious charges, including fraud, theft, and financial misrepresentation.
Lessons for Businesses to Prevent Fraud
This case serves as a stark reminder of the importance of verifying banking details before processing large financial transactions. Businesses are urged to take the following steps to protect themselves from fraud:
- Double-check financial requests – Always verify payment changes directly with service providers via official contact methods before making transfers.
- Use multi-step verification – Implement additional approval processes for changing banking details.
- Educate employees – Train staff on recognizing suspicious emails, calls, and document requests.
- Monitor financial transactions – Regularly review company bank accounts for unusual activity.
- Report fraud immediately – If fraudulent activity is suspected, contact law enforcement and financial institutions without delay.
Conclusion
While Colliery Dust Control suffered a significant financial loss, the swift actions of investigators and legal authorities ensured that the stolen funds were recovered. This case demonstrates the growing sophistication of cybercriminals and the need for businesses to stay vigilant against fraudulent schemes.
As legal proceedings continue, more details may emerge regarding how the scam was executed and whether additional individuals were involved. The outcome of the April 2025 court proceedings will determine the legal consequences for Mokhabokhi and provide further insights into how businesses can strengthen their financial security.
