Special Investigating Unit freezes properties and vehicles associated with Liyabongeka Trading Enterprise CC
SIU granted order to freeze three properties and five vehicles linked to the construction of a library in KwaZulu-Natal
The Special Investigating Unit (SIU) has secured a provisional preservation order from the Special Tribunal, freezing three properties and five vehicles associated with Liyabongeka Trading Enterprise CC and its owner, Ms Thabile Jacqueline Xaba.
Xaba is a contractor appointed by the KwaZulu-Natal Department of Sports, Arts and Culture (KZNDSAC) to construct a modular library in Ntunjambili, located in the rural Maphumulo Local Municipality within the iLembe District Municipality.
The order interdicts and restricts Liyabongeka Trading Enterprise and Xaba, and anyone with knowledge of the order, from selling, leasing, donating, transferring, disposing of, tampering with, or otherwise dealing with the assets in a manner that could diminish their value.
The preserved assets consist of three properties two located in Pietermaritzburg, KwaZulu-Natal, and one in Ruimsig, Gauteng and five vehicles: a Ford Ranger Double Cab 2.2L 2WD HR, an Isuzu KB 200L, a Bell 315SL Backhoe Loader LTB 4X4, a Land Rover Evoque, and a Peugeot 305.
The preservation order follows an SIU investigation that uncovered procurement and contractual irregularities, including prohibited and undisclosed subcontracting, significant deviations from the approved specifications and Bill of Quantities (BOQ), and financial irregularities.
This followed KZNDSAC's entry into a service level agreement (SLA) with Liyabongeka Trading Enterprise on 28 February 2020, valued at R3,422,700.38, for the construction of the Ntunjambili Library. The contractor was appointed despite not achieving the highest evaluation score or submitting the most cost-effective bid.
facilities in underserved communities. The SLA required the contractor to construct and supply the library in accordance with the approved proposal, meet agreed timeframes, exercise due care and skill, and submit certified invoices with supporting documentation.
Construction halted after the national COVID-19 lockdown was announced, leaving the library unfinished. The provincial department subsequently approved an additional R641,541.14, which was paid on 22 July 2020, for an extension period and COVID-19-related expenditure. However, the SIU found that parts of the additional funding, which brought the total contract value to R4,064,151.52, were claimed through allegedly fraudulent invoices for goods and services that were not provided.
Evidence from a company that provided quotations and inspected work on the project further supported drawings and its standard technical specifications, were R1,708,385.95 for the modular library structure and R44,729.96 for a guard hut.
An independent technical forensic report also identified material non-compliance with the approved specifications, including reduced wall thickness, under-execution of fencing, non-compliant civil works and unjustified contingency claims. These findings resulted in quantifiable over-claiming.
The evidence obtained by the SIU indicates that the payments made by the KZNDSAC to Liyabongeka the public fiscus.
Liyabongeka Trading Enterprise and Xaba must, on 7 October 2026, convince the Special Tribunal why the preservation order must not be made permanent. The matter could not be heard on 4 September because the Sheriff could not locate some respondents.
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