Sophisticated building-hijacking syndicates have succeeded in invading about 1 200 buildings and 1 500 houses in Joburg's inner-city suburbs. Property owners and the City of Joburg are losing hundreds of millions of rands in unpaid service charges as a result.
William Pudkabekwa, the head of a new special investigations task team set up by the City of Joburg, said these syndicates were very well structured. They had on their payrolls attorneys, agents, staff at the Deeds Office and the SA Revenue Service, police who they bribed, and city officials who issued false clearance certificates. Even bank staff members were involved.
It is estimated that there are about 20 syndicates involved in various areas, including the inner city, Hillbrow, Yeoville, Rosettenville and Malvern.
Often they use their contacts in the Deeds Office and banks, which inform them of deceased estates and trust funds.
People who are in arrears with rates and services are also targeted.
The hijackers visit them at night, telling them that they are in arrears and forcing them to move out.
A lot of the houses that are being hijacked belong to older people living alone. "The syndicates are informed by their sources of their deaths and take immediate occupation, put their own people in and start collecting rent," he said.
Another tactic used is to tell people who are behind with bond repayments that they have purchased the property on auction. Syndicates produce false auction papers and force the people to move out.
Other syndicates attend genuine auction sales, put down a small deposit and rent a place out. But they don't take transfer. They collect rent for months before the banks step in and sell the properties on auction again. The same syndicate then sends one of its people into the auction and the process starts over again.
They also use false eviction papers with what looks like a High Court stamp. Some stamps are genuine because court officials are offered bribes in return for the stamp. A shop in Hillbrow is manufacturing fraudulent stamps.
Syndicates also use their contacts to find property owners who live abroad.
"It becomes very difficult, expensive and impossible to litigate if (owners) are far away," said Pudkabekwa.
Another modus operandi, which has now been stopped, was hijackers tapping in to the Companies and Intellectual Property Registration Office system and changing names.
One hijacker, who has been arrested, used this method to hijack 26 high-rise buildings in Hillbrow and Berea. He changed the names, nominating himself as a director and sold the buildings, claiming he had the authority to do so.
Many people learn only later that the building no longer belongs to them.
Another method syndicates use is forming different companies and placing the stolen buildings under different names.
Pudkabekwa said neglected buildings were vulnerable to hijacking. The syndicates went in and started inciting tenants not to pay rent. They then formed a committee, opened a bank account and collected the rent.
"Smart, clean and well-maintained buildings are less likely to be hijacked," he said.
"There is a lot of money being made by hijackers, and it is the ordinary person who loses out because they either don't understand the law, or most do not have the money to start legal action. There are people lying in hospital because they have lost all they possess and find themselves homeless. One man whose home was hijacked suffered a heart attack because of this," said Pudkabekwa.
But the City of Joburg is now determined to crack down on the hijacking of buildings because it is costing millions of rands in unpaid service accounts.
"Several of the buildings have bills of up R3 million that have never been paid. They step in and cut off water and electricity, but this does not help as they illegally reconnect themselves," said Pudkabekwa.
A special investigation unit comprising a team of investigators, prosecutors, Sars, the National Prosecuting Authority, the police and the Asset Forfeiture Unit was formed by the City of Joburg four months ago and has already managed to arrest 20 people.
"In the past, police often refused to act or would only take minor charges of trespassing and intimidation. They told complainants that it was a civil matter and that they could not help," Pudkabekwa said.
Now they were laying more serious charges of racketeering, theft and fraud.
"Many of these syndicates are involved in other serious crimes such as drug dealing, prostitution and theft. They are violent, dangerous people," he added.
Tenants should make sure that bodies corporate or owners have paid for services. The unit is encouraging anyone with information to contact a hotline that has been set up at 0860 111 381. Confidentiality and anonymity are guaranteed.
