Montana runs out of luck: SIU freezes R16-million properties

The Special Tribunal has frozen former PRASA boss Lucky Montana’s R13.5-million property in Johannesburg and his R2.25-million property in Pretoria. Archive photo: Ashraf Hendricks

The Special Investigating Unit (SIU) has obtained an interim preservation order from the Special Tribunal, “freezing” two multi-million rand properties linked to Lucky Montana, former boss of the Passenger Rail Agency of South Africa (PRASA).

The order by tribunal Judge Bernard Ngoepe stops Montana from selling, transferring, leasing or dealing with a R13.5-million property in Hurlingham, Johannesburg, and another R2.25-million property in Waterkloof, Pretoria.

The tribunal directed that the Registrar of Deeds endorse the title deeds.

The order on 8 July came on the back of an SIU investigation which showed how the properties were bought with proceeds from a R5.6-billion PRASA contract for PA systems, access gates and electronic display boards.

This Integrated Security Access Management System contract was awarded to Siyangena Technologies, a subsidiary of TMM Holdings. It covered the installation, supply and maintenance of the system at various train stations – part of a pilot project aimed at upgrading specific stations for the 2010 FIFA World Cup.

PRASA awarded the first contract to Siyangena in April 2011 for almost R2-billion. Further contracts and extensions were granted, and by April 2016, the value had risen to R5.6-billion.

In a statement, the SIU said Montana’s “legitimate income” could not account for the purchase of the two properties, and that the money to pay for the properties was “directly connected to payments made by companies within the TMM group and Precise Trade and Invest 02 (Pty) Ltd.”

Bank records showed that Precise Trade and Invest received two payments on 18 June 2014, including R1.85-million from ESS (Pty) Ltd, which is part of the TMM group, and R4-million from TMM Holdings. “The director of Precise Trade and Invest was also the lawyer representing the TMM group,” the SIU said.

Precise Trade and Invest then transferred R2.25-million to conveyancing attorneys handling the sale of the Waterkloof property, which was then purchased in Montana’s name.

The SIU says the Hurlingham property was acquired through a “series of linked transactions”, also involving Precise Trade and Invest, TMM Holdings and Midtownbrace (Pty) Ltd, a company incorporated in Botswana.

The property was bought for R13.5-million in Montana’s name. He subsequently demolished the house on it.

The respondents, which include Montana and the various companies, have been given until 11 August to make representations if they want to lift the interim preservation order, failing which it will be made final.

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