A charge sheet filed at the Bronkhorstspruit Magistrate’s Court last week shows how diamond dealer and alleged Ponzi scheme kingpin Louis Liebenberg used millions of rand in investors’ money to fund former president Jacob Zuma’s attempt to prosecute state prosecutor Billy Downer and journalist Karyn Maughan.
Almost R12m used to fund Zuma’s legal case
Bank statements included in the charge sheet show how hundreds of millions were deposited by investors in Liebenberg’s Tariomix and Forever Zircon accounts on the payment platform AE Switch.
R11.8 million of this was used towards Zuma’s failed attempt to prosecute Downer and Maughan, according to a report in City Press.
The charge sheet also reveals that R50 000 was sent to Rejoice Zuma, a family member of the former president. This money was allegedly used to pay for the accommodation of 20 guests at the Anta Boga Hotel in Bloemfontein in August 2022.
Was MK party funded by Liebenberg?
Last year, former police minister Bheki Cele told parliament’s ad hoc committee investigating police corruption that Zuma’s MK party was funded by Liebenberg.
He said Zuma had financially benefited from Liebenberg.
“There is a guy called LL – Louis Liebenberg. He’s a king of zama zamas. He cleans diamonds and everything. He has millions and millions. He funds the MK party,” Cele said during the hearing.
MK party spokesperson Nhlamulo Ndlela, however, dismissed the claims.
“Cele’s allegations are entirely baseless and malicious. As a former minister of police, Mr. Cele had both the authority and the responsibility to act on any such information if it were true. His failure to do so exposes these claims as nothing more than reckless political posturing intended to mislead the public.”
Carl Niehaus also benefited
Zuma, however, wasn’t the only high-profile figure that Liebenberg funded with his investors’ money.
EFF member Carl Niehaus, who has long been an ally of Zuma, received R600 000 from the alleged Ponzi scheme mastermind.
However, City Press reports that Niehaus got a lot more than the charge sheet states.
According to Kobus Senekal, an attorney acting on behalf of the liquidators of Liebenberg’s diamond scheme, Niehaus received R2.8 million. Senekal said they are in contact with Niehaus to recover this money. The EFF member is not accused of any criminal activity.
A senior police official, identified only as “General John” is also implicated. The state alleges that Liebenberg and his associates agreed to give the police official R800 000 in August 2022. The state added that R300 000 of this was given to the police official to provide information about investigations into Liebenberg.
Liebenberg’s bail application
Liebenberg, his wife Dezzi and seven other associates were arrested in October 2024 in connection with their alleged R4 billion diamond investment scam.
They face charges of fraud, money laundering, theft and racketeering.
This week, Liebenberg was in court again for his prolonged bail application.
The hearing was postponed again as he was told he will have to wait another month to be admitted to the Weskoppies Psychiatric Hospital for mental evaluation.
