Lesotho and SA courts freeze assets in big clothing industry fraud case

The forfeiture of assets in Lesotho and South Africa bought with illicit proceeds diverted from one of Lesotho’s largest clothing companies is being hailed as a milestone by authorities for cross-border asset recovery.

Three months later, however, none of the assets covered by the forfeiture orders has been realised, as the respondents have lodged appeals.

In May, courts in Lesotho and South Africa delivered two related judgments within five days of each other.

The Lesotho Court of Appeal upheld the forfeiture of a Masowe property worth about M1.6 million (M1 = R1), as well as about M177 000 in cash, while the Free State High Court ordered the forfeiture of three Ladybrand properties worth R5.75 million.

Both courts found that the properties and cash were proceeds of criminal activity related to the criminal diversion of M700 million from CGM Group companies and its subsidiary, Presitex, one of Lesotho’s largest garment