Special Tribunal Orders Montana Compliance in PRASA Corruption Case
The Special Tribunal has demanded compliance from former PRASA executive Lucky Montana regarding two multi-million-rand properties. Montana missed a hearing concerning a preservation order linked to alleged corrupt activities.
Key takeaways
- The Special Tribunal ordered former PRASA executive Lucky Montana to comply with directives regarding two multi-million-rand properties.
- Montana missed a hearing concerning an interim preservation order related to alleged corrupt acquisitions linked to PRASA.
- The order prevents Montana from dealing with the properties, valued at approximately R2.5 million and R13.5 million, while civil recovery proceedings continue.
- The tribunal extended the preservation order, which remains in effect pending further determination.
The Special Tribunal has issued an order compelling Lucky Tshepho Montana, former group chief executive officer of the Passenger Rail Agency of South Africa (PRASA), to adhere to its directives. This comes as Montana seeks to contest an interim preservation order affecting two properties in Pretoria and Johannesburg, valued collectively at approximately R16 million.
The existing preservation order prohibits Montana from selling, transferring, leasing, encumbering, or otherwise disposing of the properties while the Special Investigating Unit (SIU) pursues civil recovery proceedings. Montana was scheduled to appear before the tribunal on Tuesday to argue against making a July 8 interim preservation order final.
However, Montana did not attend the hearing, sending a legal representative instead. The SIU reported that Montana's lawyer informed the tribunal of insufficient time to prepare, having received instructions only 30 minutes before the session. The lawyer stated an inability to adequately address the SIU's application.
What Happened
The SIU alleges that the two properties under dispute were acquired with funds derived from corrupt activities associated with PRASA. One property, located in Waterkloof, Pretoria, is valued at around R2.5 million. The Johannesburg property has an estimated value of R13.5 million.
According to the SIU's investigation, Montana's documented income does not account for the acquisition of these properties. Funds used for their purchase were traced through companies connected to the TMM group and Precise Trade and Invest 02 (Pty) Ltd. The director of Precise Trade and Invest also served as legal representative for the TMM Group.
Specifically, the SIU found that Precise Trade and Invest received R1.85 million from ESS (Pty) Ltd and R4 million from TMM Holdings on June 18, 2014. Shortly thereafter, R2.25 million was transferred to attorneys, facilitating the purchase of the Pretoria property in Montana’s name. The acquisition of the Johannesburg property, located in Hurlingham, involved a series of transactions including Botswana-based Midtownbrace (Pty) Ltd and TMM Holdings.
Key Facts
- Former PRASA CEO Lucky Montana is involved in a legal dispute over two properties in Pretoria and Johannesburg.
- The Special Investigating Unit (SIU) has secured an interim preservation order against these properties, alleging they were acquired through corrupt activities linked to PRASA.
- One property in Waterkloof, Pretoria, is valued at approximately R2.5 million, and the Johannesburg property is valued at R13.5 million.
- Montana failed to appear at a tribunal hearing on Tuesday, sending a legal representative who claimed unpreparedness.
- The tribunal extended the interim preservation order, which will remain in effect until a future date is determined.
- Investigations traced funds for the properties through companies linked to the TMM group and Precise Trade and Invest 02 (Pty) Ltd.
What Happens Next
The Special Tribunal has extended the interim preservation order, initially granted on July 8, 2026. This order will continue to prevent any dealings with the properties until the tribunal sets a new date for further proceedings. The legal battle over the SIU's claims and Montana's opposition is ongoing, with the properties remaining under preservation.
Sources reviewed
Project Chintan independently synthesized and analyzed information cross-checked across the sources listed above.
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