Eastern Cape man steals R3 million from family trust

The South African Police Services Directorate for Priority Crime Investigation ( Hawks) have arrested a 51-year-old said Siphiwo Enock Mngxali following allegations of siphoning R3 million from the Family Trust

It is alleged that the accused Siphiwo Mngxali who was in a process of a divorce handled by East London High Court was arrested on Friday on charges of theft. During the existence of their marriage, the couple reportedly bought properties for the purpose of conducting business thereon and creating income for the joint estate,” said Hawks spokesperson in the Eastern Cape, Captain Yolisa Mgolodela.

“They are reported to have created a family trust known as Mngxali family. The day to day administration of the trust was vested upon the accused (estranged husband). They bought four immovable properties, two in Mthatha and the other two in East London.

“The first property in Fortgale in Mthatha was turned into a Bed and Breakfast and the other property in Southrigde also in Mthatha was leased to various tenants including Walter Sisulu University. The money generated from the properties was deposited into the Trust account.

According to reports, Mngxali allegedly opened a personal FNB account and requested the tenants at the Southrigde and Walter Sisulu University to make payments due into that account.

”Investigation by the Hawks revealed that Mngxali unlawfully and intentionally misappropriated the monies of the trust to the value of more than R3 million for his own personal use hence his arrest on April 14.”

Mngxali is also facing charges of attempted murder and malicious injury to the property of the complainant