Cape Town - An opulent house in one of the most sought-after and upmarket areas in Durbanville is set to become the object of a tug-of-war in the Western Cape High Court, amid allegations of diamond smuggling and foreign exchange control contraventions.
On the one side are two men – a Bulgarian and a Slovakian, and on the other is the Asset Forfeiture Unit (AFU), under the banner of the National Directorate of Public Prosecutions. Armed with the Prevention of Organised Crime Act, the AFU went to court and obtained a preservation order against the men, Asen Georgiev Ivanov (alias Alex Novak) and Jana Cipkalova.
But even though they have left SA, the men are prepared to put up a fight and, from outside the country’s borders, briefed attorney William Booth to get back the house.
Western Cape AFU head Gcobani Bam said in an affidavit before the High Court that the house was kept under surveillance during an operation by the police’s Directorate of Priority Crime Investigation, known as the Hawks, in February last year after they received information that Mandrax was being manufactured there.
After police obtained a search warrant, the premises were raided.
According to Bam, a 2m tunnel with built-in panels had been dug in the garage – which Novak claimed was preparation for the installation of a jacuzzi. Police were, however, of the opinion that Novak’s claim was unlikely.
Large amounts of SA cash and foreign currency were also found during the raid – in the main bedroom, Novak’s bedroom, a spare bedroom, and in an Audi Q7. The cash amounted to R2.3 million, and the foreign currency to more than R600 000.
“To me it seems very strange and indeed suspicious that people could reasonably keep such huge cash in a residence. I submit that, although on its own such conduct is not unlawful, in the circumstances under which it was seized and the subsequent investigations relating thereto, such conduct justifies reasonable suspicions that such cash is the proceeds of unlawful activities, such as the ones alleged herein, including the avoidance of the banking system to conceal its origin and retention, as well as tax evasion,” Bam said in an affidavit.
A false R200 note was also found on the floor, near the front door of the premises, he said.
“I understand the latter to be a fake note that could have been reproduced by what is known as a ‘black dollar’ scam, that refers to the manufacturing of fake notes by use of, among others, electronic equipment,” Bam said.
Further investigation established that the house was registered in Cipkalova’s name, and that the purchase price was paid through a jeweller who was allegedly involved in a diamond transaction with Cipkalova.
But the State, according to Bam, suspects that Novak bought the property and that “the registration thereof in the name of (Cipkalova) could have been a mere sham” aimed at concealing the origin of the money. Police believe the property was bought with the proceeds of diamond smuggling.
He said police also suspect the men were involved in the smuggling of foreign currency into SA, in contravention of the Customs and Excise Act and exchange control regulations, as well as money laundering.
The men have not yet been charged, the AFU does not need a criminal conviction in order to attach assets.
Booth told Weekend Argus this week his clients had not been criminally charged. He said that while this did not preclude the AFU from applying for a preservation order, the fact that they had not been prosecuted was a factor which could always be used in their defence. He added that the men intended to fight to get back the house, and had instructed him to file papers.
Booth also pointed out that the men were away for legitimate reasons, and have not fled because of the case.
Weekend Argus