/ 19 November 1999

Asset forfeiture unit to defend seizure

in court

Marianne Merten

Despite seven successful asset and cash forfeitures across the country recently, the asset forfeiture unit will be in court next Monday to defend its seizure of the homes, businesses, luxury cars, jewellery and cash of alleged Cape Town drug dealer Gavin Carolus.

Last week, it seized a Cape Flats tavern operated by Chris Patterson, alleged Cape Town Wonderkids gang boss and drug cartel The Firm member.

The unit sealed Patterson’s Kensington house because drugs and illegal liquor were sold there as far back as 1994, according to police records of drug- related arrests and convictions.

The unit is appealing in the Supreme Court of Appeal against a decision by the Cape High Court that it could not act against Carolus. The court ruled the forfeiture provisions of the Prevention of Organised Crime Act did not apply before January 21 this year, when the legislation was signed into law.

It was the first test case of the new law. Subsequently, other courts handed down similar judgments when the unit moved in on Durban organised crime head Pieter Meyer and apartheid-era chemical and biological warfare mastermind Wouter Basson.

Since then the Act was amended to explicitly apply before the date it was signed into law.

Asset forfeiture unit head Willie Hofmeyr says he is upbeat they will win the appeal next week. This would leave the way open to seize Carolus’s assets currently under curatorship.

However, Carolus’s lawyers are arguing the appeal should be denied because it would have no effect as the law has been changed. The constitutionality of the provisions could then be tested.

If the unit loses the appeal, it would still be possible to act against the Carolus because several family members, including his minor son, are charged with manufacturing crack cocaine at a flat rented by Carolus’s mistress.

Also under consideration is reinstituting proceedings against him under the amended law. Asset forfeiture is a civil proceeding unlikely to be affected by the criminal principle that one cannot be charged with the same offence twice.

While the unit is waiting for Patterson’s response to its actions, it is understood police are also probing his purchase of a R900 000 home in the prestigious northern suburb of Plattekloof. The house belonged to another key member of The Firm, Katie Ann Arendse, who was gunned down with her husband last year.

According to legal opinion, it is unlikely Patterson will challenge the seizure of the Kensington house as this would entail full disclosure of assets and liabilities to the court on which he could be questioned. Authorities are not certain what other assets the alleged drug king could have.

Patterson is being investigated by the South African Revenue Service. He filed his first tax return earlier this year with forms for the past five years. As a general dealer, he claimed to have a monthly income averaging R2 000. Yet when he applied for a bond for the Plattekloof house in March – for which repayments approximating R14 500 monthly have been made in cash – an accountant’s statement showed turnover at the Kensington tavern of almost R5-million, net assets of more than R2-million and a monthly income of R73 500.

Several other Cape Flats gang bosses believed to generate income from drug deals at shebeens are being probed.