The Asset Forfeiture Unit (AFU) has secured a preservation order totalling more than R6.2m against a Despatch man suspected of running an illegal live-streaming operation by distributing copyrighted MultiChoice content.
The preservation order was granted in the Gqeberha high court on Tuesday in terms of Section 38 of the Prevention of Organised Crime Act (POCA).
The order relates to funds held in Damian Grundlingh’s bank account.
The AFU’s advocate, Warren Myburgh, argued that the funds constituted proceeds of unlawful activities, including alleged fraud and cybercrime.
According to evidence presented to the court, Grundlingh had allegedly been operating an illegal live-streaming service since about October 2024 by unlawfully accessing and distributing copyrighted MultiChoice content without authorisation.
It is alleged he pirated protected MultiChoice content and resold access to customers by providing access codes.
Customers allegedly paid a monthly subscription fee of about R160, in exchange for access to the illicit streaming service.
Between January 2025 and April 2026, about 104,667 MultiChoice-related transactions were identified allegedly involving Grundlingh and his customers.
Grundlingh has not yet been arrested or charged, as the criminal investigation is still ongoing.
National Prosecuting Authority (NPA) regional spokesperson Luxolo Tyali said Grundlingh was being investigated for possible contraventions of the Cybercrimes and Copyright Act.
“The preservation order was obtained without prior notice to Grundlingh — and in the absence of an arrest.
“This is permitted under POCA, which allows the national director of public prosecutions [NDPP] to approach the high court for the preservation of property suspected to be the proceeds of unlawful activities, even where criminal charges have not yet been instituted,” Tyali said.
“This process forms part of the non-conviction-based asset recovery regime, which enables the state to preserve and potentially recover assets linked to unlawful activities independently of a criminal conviction.
“The preservation order and supporting application will now be served on Grundlingh.”
Tyali said should he choose not to oppose the proceedings, the NDPP may, within 90 days of the publication of the preservation order in the Government Gazette, apply to court for a forfeiture order.
If granted, the forfeiture order will result in the preserved funds being paid into the Criminal Assets Recovery Account, which supports law-enforcement initiatives and efforts to combat crime.
Eastern Cape acting director of public prosecutions, advocate Samkelo Mtwana, welcomed the preservation order, describing it as an example of the effective use of the asset forfeiture regime to target the financial gains derived from alleged unlawful activities.
“The preservation of these funds demonstrates that the NPA will not only pursue those suspected of engaging in unlawful activities but will also target the proceeds generated from such conduct.
“The alleged large-scale piracy operation highlights the significant financial impact that cyber-enabled and intellectual property-related offences can have.
“Through the AFU, we will continue to use every lawful means available to deprive suspected offenders of the benefits of their unlawful activities,” Mtwana said.
The successful preservation proceedings resulted from the collaborative efforts of the Specialised Commercial Crime Unit, the Directorate for Priority Crime Investigation unit, the Financial Intelligence Centre and investigators from MultiChoice.
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