Nyhonyha N O and Others v National Director of Public Prosecutions

The National Director of Public Prosecutions (NDPP) brought restraint proceedings under Chapter 5 of the Prevention of Organised Crime Act 121 of 1998 (POCA) against directors of the Regiments Group, namely Dr Eric Wood, Mr Magandheran Pillay and Mr Litha Mveliso Nyhonyha, who were indicted on charges of corruption, fraud and money laundering linked to State Capture-related transactions involving Transnet and the Transnet Second Defined Benefit Fund. The NDPP alleged that proceeds of crime exceeding R1 billion flowed through the Regiments Group. The appellants, comprising family trusts, close corporations and subsidiary companies, were cited on the basis that they held property on behalf of Mr Pillay and Mr Nyhonyha. A provisional restraint order was granted, later discharged, but reinstated on appeal by a full court of the Gauteng Division. The present appeals to the Supreme Court of Appeal were limited to whether the appellants held ‘realisable property’ on behalf of Mr Pillay and Mr Nyhonyha as contemplated in s 14(1) of POCA.

All three appeals were dismissed with costs, including the costs of two counsel where employed. The provisional restraint orders against the appellants’ property were confirmed.

The judgment reinforces the broad and purposive interpretation of ‘realisable property’ and ‘holding’ under Chapter 5 of POCA. It confirms that trusts, close corporations and subsidiaries cannot shield assets from restraint where defendants exercise control or derive benefit, even without formal ownership. The case strengthens the NDPP’s ability to preserve assets linked to State Capture and organised crime pending criminal trials.