Lenasia housing 'fraudsters' stay in jail

2013-04-09 22:34

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Johannesburg - Two men accused of selling government land illegally in Lenasia appeared in the Johannesburg Commercial Crime Court on Tuesday, the local government department said.

Richard Zikhali and Michael Magodola face 94 counts of fraud and money laundering, spokesperson Motsamai Motlhaolwa said in a statement.

The two allegedly operated in Lenasia and Ennerdale, south-west of Johannesburg.

"They posed as housing department officials and took prospective buyers to vacant government stands and offered to sell them.

They would then give out bank account details of two companies they operated where buyers would deposit the money."

The two allegedly issued the buyers with fraudulent deeds of sale which had the department's logo.

They were arrested in 2010 together with Zikhali's wife Hlengiwe Ximba after allegedly having made millions from the illegal sales.

Ximba pleaded guilty last year and was sentenced to six years in jail, three of which were suspended. She had since turned State witness.

Zikhali and Magodola had pleaded not guilty to the charges. They were expected to be back in court on 15 April.

They remained in custody, Motlhaolwa said.

Read more on:    johannesburg  |  housing

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