Special Tribunal Freezes Assets Over R500m Free State Health Tenders
Brought to you by SAnews: Under the Special Investigating Units and Special Tribunals Act, No. 74 of 1996, the Special Tribunal has granted a preservation order to freeze a luxury residential property in Alberton linked to businessman Thapelo Samuel Buthelezi.
Acting under Proclamation No. R. 42 of 2019, the Special Investigating Unit (SIU) obtained the order to prevent the selling, transferring, mortgaging, or dealing with the property. This follows civil proceedings instituted by the SIU to review and set aside irregular contracts under which the Free State Department of Health paid R532,789,770.12 to four entities associated with Buthelezi.
The preservation order stems from a May 2025 Special Tribunal ruling that ordered Buthelezi’s companies to repay the undue benefits and submit audited financial statements. The required disclosures included:
- Detailed statements of expenses incurred under the tender and service contracts;
- Comprehensive records of all income received; and
- Net profits generated, supported by full verifying documentation.
Following persistent non-compliance and a subsequent judicial case management meeting on 12 September 2025, the SIU initiated contempt of court proceedings. Although Buthelezi cited financial constraints and lack of legal representation, the Special Tribunal proceeded to issue an interdict restraining Buthelezi EMS from alienating or encumbering an additional agricultural property (a farm in the Free State), culminating in the latest freezing order on the Alberton residential asset.
What this means for you, your business, or your clients
- For yourself: No direct individual compliance obligations arise from this asset forfeiture order, though professional advisors must note the judiciary’s strict approach to non-compliance with disclosure orders.
- For your business: Professional practices providing accounting, auditing, or legal services must ensure that clients facing SIU investigations strictly adhere to court-mandated deadlines for filing audited statements to avoid contempt proceedings and asset preservation orders.
- For your clients: Corporate clients contracting with state organs must maintain rigorous, auditable records of all project expenses and incomes, as the Special Tribunal holds wide powers under Act No. 74 of 1996 to demand full financial disclosure and freeze personal and corporate assets in the event of suspected tender irregularities.
Originally published at https://www.sanews.gov.za/south-africa/special-tribunal-grants-freezing-order-businessmans-luxury-home