R9.5m Ferrari heads for sale after Hangwani Maumela loses court bid

SIU

Cape Town – The Gauteng High Court in Pretoria has cleared the way for the Special Investigating Unit (SIU) to sell a Ferrari SF90 Stradale linked to businessman Hangwani Maumela and its investigation into alleged corruption at Tembisa Hospital. 

The court dismissed an urgent application by Maumela and the trustees of the MHR Maumela Family Trust to stop the sale of the luxury sports car. 

According to eNCA, the court found that the Special Tribunal’s order authorising the sale was not automatically suspended by the appeal process. 

The court also found that Maumela and the trust had failed to establish a clear legal right to prevent the sale or show that they would suffer irreparable harm if the Ferrari was sold. 

The car has been valued at about R9.5 million and is one of several luxury vehicles preserved under a Special Tribunal order linked to the SIU’s investigation. 

The Ferrari was bought for about R11.1 million in April 2022 and has been kept at Ferrari South Africa under the preservation order. 

Why the Ferrari is being sold 

The Special Tribunal authorised the sale in August after the curator argued that keeping the vehicle was becoming costly. 

The Ferrari was incurring storage, insurance and maintenance expenses, including about R5,000 a month for storage and more than R8,000 a month in insurance. 

There were also costs of about R104,857 for battery replacement and an estimated R408,000 to reinstate its warranty. 

The Tribunal ruled that selling the vehicle and placing the proceeds into an interest-bearing trust account would better protect its value while the broader legal proceedings continue. 

The SIU has now welcomed the High Court ruling.

 

“The SIU welcomes the judgment as it affirms the principle that preserved assets may be managed in a practical manner that protects and preserves their value while legal proceedings continue,” SIU spokesperson Selby Makgotho said, according to EWN. 

He said ongoing storage, insurance and maintenance costs could erode the value of preserved assets, while the sale proceeds would remain protected. 

Sowetan reported that the Ferrari will be sold for no less than R9.5 million, with the proceeds placed in an interest-bearing account. 

Tembisa Hospital investigation 

The Ferrari forms part of a wider asset preservation process arising from the SIU’s investigation into alleged corruption and maladministration at Tembisa Hospital. 

The SIU says about R2 billion was allegedly looted through procurement processes at the hospital. 

The investigation was sparked by information uncovered by the late Gauteng health official Babita Deokaran, who had raised concerns about suspicious payments linked to Tembisa Hospital before she was assassinated in August 2021. 

The SIU has previously said forensic investigations found that 14 entities linked to the alleged Maumela syndicate benefited from contracts worth more than R400 million. 

Maumela and other parties implicated in the investigation have opposed the allegations. 

The SIU has also confirmed that evidence pointing to possible criminal conduct uncovered during the investigation has been referred to the National Prosecuting Authority for consideration. 

IOL reported that the High Court ruling follows the preservation of several luxury assets linked to the investigation, including high-value properties and vehicles. 

The latest ruling means the Ferrari can now be sold, while the proceeds will remain protected pending the outcome of the broader civil recovery proceedings.

Picture:  X/@RSASIU

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Compiled by Glaan Sibuyi

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