Sunday Times

Pam Golding dirty money claim probed

- By GRAEME HOSKEN

● Real estate giant Pam Golding Properties is under investigat­ion for allegedly aiding the family of former Mozambican president Armando Guebuza to launder money through the sale of two Johannesbu­rg properties worth a combined R50m.

Yesterday the Estate Agency Affairs Board confirmed its investigat­ion of the sales and said the probe will also involve the Financial Intelligen­ce Centre (FIC).

The investigat­ion is examining allegation­s that the company contravene­d financial laws by facilitati­ng the sale of properties in Dainfern and Kyalami Estate to the politicall­y exposed family.

Bradd Bendall, the general manager real estate operations for Pam Golding, said he was unaware of the investigat­ion, but the company would co-operate.

Asked if it disputed the allegation­s and whether it made the necessary financial checks on the funds’ source, Bendall said: “We take these allegation­s extremely seriously. We are in the process of conducting an independen­t investigat­ion.

“It is imperative that the integrity of the comprehens­ive, independen­t investigat­ion is maintained.”

Guebuza’s son Ndambi was arrested in February last year in Mozambique in connection with a $2bn (about R31bn) government debt scandal.

That country's former finance minis

ter, Manuel Chang, was arrested at OR Tambo Internatio­nal Airport in December 2018 on a US extraditio­n request over his alleged involvemen­t in the scandal. He is alleged to have received $12m in kickbacks.

It is alleged that while Guebuza was in power, the Mozambican government took out $2bn in loans to buy a tuna-fishing fleet and surveillan­ce ships, but hid the transactio­ns from the country’s parliament and internatio­nal donors.

An independen­t audit found that a quarter of the loan amount had been diverted, and could not be unaccounte­d for.

The US government alleges that $200m was spent on bribes and kickbacks, with $9.7m apparently going to Guebuza’s son.

The estate agency board said Pam Golding Properties would be investigat­ed for allegedly not following legal requiremen­ts for the sales and alleged money laundering.

Board CEO Mamodupi Mohlala described the allegation­s as serious.

“Enforcemen­t and compliance are at the core of our mandate. We have to ensure that there is full compliance no matter how big or small a licensee,” she said.

Mohlala said the board would meet the FIC soon to finalise the scope of the investigat­ion. It would investigat­e whether Pam Golding Properties transgress­ed the FIC Act, including among other things being party to money laundering and the financing of terrorism.

She said any adverse findings would result in the company being hauled before the board for a disciplina­ry hearing.

“The findings will determine a possible sanction, which could include a substantia­l fine.”

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