South African Prepaid Electricity Fraud Ring Faces R29M Asset Freeze by NPA

In a significant development, the Asset Forfeiture Unit (AFU) of the National Prosecuting Authority’s (NPA) has secured a court order to freeze assets linked to a syndicate that allegedly defrauded Eskom, South Africa's primary electricity supplier. The restraint order from the Pretoria High Court has immobilized properties and cash amounting to R29 million belonging to individuals connected to a prepaid electricity "ghost vending ring."

The accused, Mothelli Ben Theletsane, started the fraudulent scheme in 2012, utilizing his position within Eskom to generate illegal electricity vouchers for his own gain. Theletsane was employed by Eskom on a contractual basis and worked closely with the prepaid vending system, gaining in-depth knowledge and technical skill in manipulating the credit dispensing units (CDU). It is alleged that unbeknownst to Eskom, he also acquired a master vending unit capable of generating an unlimited number of prepaid electricity vouchers, which he hid following his departure from the company.

Mothelli's untimely death in 2017 led to the continuation of the scam by his family, with his widow Thandi Theletsane and sons Papi, Tebello, and Sibusiso Migal named as successors. The NPA explains that through Mothelli Theletsane Holdings and Investment, the family managed to purchase 27 movable and 39 immovable assets, collectively valued over R23 million, funded by the criminal enterprise. This large-scale operation expanded to all nine provinces of South Africa.

Moreover, the NPA has implicated additional accomplices in the scheme. Among those are Petrus Mohapi, Donald Rammusi, Victor Mdlalose, Joseph Mdlalose, Florence Mdlalose, Daniel Mapena Moleko, Xolani Dube, Lebohang Dennis Thabanyana, Raymond Balfour Mohapi, and Sebabatso Madibuseng Mbele, who allegedly acquired 17 movable and one immovable property via the proceeds of the fraudulent operation.

The suspects were taken into custody in July 2021 and have faced charges of fraud and theft in the Fochville magistrate's court. During the latest hearing on October 31, the case was postponed to November 15 to allow for one of the accused to apply for Legal Aid, stated the NPA.

The high-profile case highlights the efforts of South African authorities to clamp down on corruption and fraud, especially within state-owned enterprises. The successful freezing of assets sends a clear signal that the AFU is actively pursuing those who illicitly benefit at the expense of the South African public and its institutions.

As the case develops and the accused prepare for their defense, the AFU's decisive action stands as a testament to the ongoing fight against organized financial crime in the country.