A Ferrari bought for more than R11 million and linked to businessman Hangwani Morgan Maumela can now be sold after the Special Tribunal ruled that keeping the luxury vehicle under preservation was no longer financially prudent.

The Ferrari SF90 Stradale forms part of a collection of luxury assets preserved in connection with the Special Investigating Unit’s (SIU) investigation into alleged corruption and maladministration at Tembisa Hospital, where about R2 billion is alleged to have been looted through irregular procurement.

The Special Tribunal authorised curator Jacobus Gideon Louw Van Wyk to sell the Ferrari for no less than R9.5 million.

The money will be deposited into a special interest bearing trust account and may only be used, with SIU approval, to maintain other assets under the curator’s control.

The ruling is another step in the SIU’s efforts to preserve assets allegedly linked to the Tembisa Hospital investigation while the broader legal proceedings continue.

The Ferrari was bought for R11,126,662.22 in April 2022.

Two valuations subsequently placed its value at R10.2 million and R10.165 million. There were also offers of R10 million and R10,999,995 to purchase the vehicle.

Ferrari South Africa, where the car is being stored, offered R9.5 million.

While the Maumela respondents argued that the vehicle was not rapidly depreciating and could instead appreciate in value, the Tribunal found that the ongoing costs of keeping the Ferrari justified its sale.

Storage costs R5,000 a month, while insurance costs R8,333.33 a month. The vehicle also required a battery replacement costing R104,857, while warranty reinstatement and factory related costs were estimated at R408,000.

Special Tribunal President Judge Bernard Makgabo Ngoepe said there was insufficient evidence that any future appreciation in the Ferrari’s value would offset the continuing costs of preserving it.

The judge found that the proceeds could instead be invested and earn interest, helping to preserve and potentially enhance the value of the asset.

The application was opposed by what the SIU refers to as the “Maumela Syndicate”, including the MHR Maumela Family Trust and Maumela.

The respondents also launched a counterclaim seeking the removal of Van Wyk as curator.

That bid was dismissed with costs.

The Tribunal ordered the Maumela respondents to pay, jointly and severally, the costs of the curator’s condonation application, the Ferrari sale application and the counterclaim seeking his removal.

SIU spokesperson Selby Makgotho said the judgment reinforced the importance of actively managing assets subject to preservation orders.

He said the objective was to ensure assets allegedly linked to corruption did not lose value while legal proceedings were under way.

“The purpose of preservation is to protect the value of assets pending the finalisation of legal proceedings,” Makgotho said.

The Ferrari forms part of a wider asset preservation operation involving luxury vehicles and properties allegedly linked to the investigation.

The SIU has been authorised under Proclamation 136 of 2023 to investigate allegations of corruption and maladministration involving the Gauteng Department of Health and Tembisa Hospital.

The investigation has placed Maumela in the spotlight because of his alleged links to companies that benefited from contracts at Gauteng public hospitals.

Maumela has also been publicly described as President Cyril Ramaphosa’s nephew, although the Presidency has rejected that description.

Ramaphosa was previously married to Maumela’s aunt. The Presidency has maintained that the two men are not related and that the President has no personal relationship with Maumela.

The issue gained renewed attention amid the Tembisa Hospital investigation, with Ramaphosa having previously acknowledged that he had encountered Maumela but denied having any ongoing relationship with him.

The SIU has maintained that its investigation concerns alleged corruption and maladministration and that the preservation of assets is intended to prevent the dissipation of property while the legal process unfolds.

The unit has also referred evidence pointing to possible criminal conduct uncovered during its investigation to the National Prosecuting Authority for consideration and further action.

For now, the Ferrari will be converted from a luxury asset into cash, with the proceeds ring fenced under the Tribunal’s order.

The court’s decision means that the state does not have to continue carrying the mounting costs of storing, insuring and maintaining the vehicle while waiting for the main Tembisa Hospital matter to be finalised.