Court orders seizure of Ngwenya's assets after R30 million Ingonyama Trust scandal
Former chairperson of KwaZulu-Natal Ingonyama Trust Board, Sipho Ngwenya to have his assets seized as Ingonyama Trust seeks to recover R30 million that he transfered to his lawyer.
Image: File
In pursuit of regaining R30 million of the Ingonyama Trust, a warrant of execution has been issued against the former chairperson of the Ingonyama Trust Board (ITB), Sipho Ngwenya’s assets.
This follows the September Pietermaritzburg High Court order, which instructed Ngwenya to repay the money transferred to his lawyer from Ingonyama Trust within 30 days.
Acting Judge Ranjiv Nirghin found that Ngwenya, the former judge, lacked the ITB's authorisation to transfer funds from a property sale between the eThekwini Municipality and the Ingonyama Trust. Ngwenya unlawfully transferred funds from Ingonyama Trust to his lawyer’s trust account, Jafta Incorporated.
According to court papers, Ngwenya's bank account with FNB was attached earlier this week. His immovable properties are yet to be attached.
“All respondent right title interest claim and demand in and to all monies held now or in future in all accounts held by First National Bank in the name of Sipho Jerome Ngwenya to the amount of R30510 265.66 and all costs. All monies to be paid to the acting sheriff,” read the papers.
Furthermore, Ngwenya had previously defied court orders from 2024 and 2025 requiring him to explain his authority for moving funds that should have remained in the Ingonyama Trust bank account. In arguments before court, managing director of Jafta Incorporated Philani Jafta, cited client privilege as a reason for not fully responding.
According to former ITB CEO Vela Mngwengwe, the Ingonyama Trust sold land in Hammarsdale to eThekwini Municipality on June 29, 2018. The deal was worth R31,172,000, which included money for occupational rental.
“The ITB had authorised the sale for R30,982,000. Mason Incorporated was appointed as the conveyancer for the property transfer,” Mngwengwe explained in his affidavit.
In October 2022, Ngwenya, acting on behalf of the ITB, instructed Mason in writing to pay R5 million into the Ingonyama Holdings bank account (a subsidiary of Ingonyama Trust) before the property transfer registration. Mason complied, but Mngwengwe stated that agreements clearly stipulated that the purchase price should be paid to the seller's bank accounts, not to Ingonyama Holdings.
He further emphasised that Ngwenya had no authority from the ITB to do this.
Subsequently, in December 2022, Ngwenya instructed Mason to pay the remaining balance of the purchase price into the trust bank account of Jafta Incorporated, which Mason did. Upon discovering these payments, Mngwengwe issued a letter of demand for repayment.
In June 2024, Strauss Daly Attorneys, representing ITB, requested Ngwenya to provide written authority for the fund transfers to Jafta's trust fund. Instead of responding to this, Ngwenya challenged the appointment of Strauss Daly and requested the law firm to satisfy Rule 7(1) by demonstrating their authority to act for both the Ingonyama Trust and its board, ITB.
In arguments, advocate Credo Mlaba said Ngwenya’s challenge of the appointment of the law firm was a delaying tactic to avoid accountability for funds.
nomonde.zondi@inl.co.za