Lesotho, SA courts freeze assets in M700m clothing industry fraud case
Appeals have delayed the implementation of two forfeiture judgments handed down in May
In May 2025, courts in Lesotho and South Africa issued judgments to freeze assets valued at over M700 million linked to a clothing industry fraud case. The Lesotho Court of Appeal upheld the forfeiture of a Masowe property worth about M1.6-million and M177,000 in cash, while the Free State High Court ordered the seizure of three Ladybrand properties valued at R5.75 million.
Both courts determined that the properties and cash were proceeds of criminal activity related to the diversion of M700 million from CGM Group companies and its subsidiary, Presitex, a major garment manufacturer in Lesotho. Presitex employs around 3,000 people. Whistleblower Eugenia Shi-Chang, a former shareholder of Presitex, had accused former CEO Madhav Vassant Dalvi of orchestrating a scheme to divert millions to entities controlled by him and his associates.
Dalvi, his wife Sushama and son Chaitanya, along with other accused individuals, fled the country before being apprehended. Extradition proceedings were initiated in February 2024, but South Africa has yet to respond to a request for mutual legal assistance. The judgments focus solely on the forfeiture of assets, not the broader criminal case.
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