The net is closing in on those implicated in the National Lottery Commission fraud as more names are dropped. The Asset Forfeiture Unit (AFU) of the National Prosecuting Authority, in collaboration with the Special Investigating Unit (SIU), obtained a preservation order from the High Court of South Africa, Gauteng Division. The order is to preserve the sale of four high-value properties, financial transfers and a vehicle all linked to the syphoning of millions from the National Lotteries Commission (NLC).
ASSETS SECURED
SIU spokesperson, Kaizer Kganyago, said that the total value of preserved items amounts to approximately R 6.5 million. "The order, dated 24 July 2024, safeguards various assets acquired through the misappropriation of funds from the NLC to ensure that they are kept in reasonable condition until a forfeiture order has been granted. This decisive action is part of an ongoing investigation into the unlawful use of National Lotteries Commission (NLC) grant allocations meant to support community development projects, "said Kganyago.The assets that were preserved include a property in Ekurhuleni worth more than R2.6 million.
PROPERTIES BOUGHT WITH MONEY MEANT FOR SPORTS PROGRAMMES
According to SIU, Konani-Pfunzo Learning Centre NPO received more than R55m from the NLC in February 2016. Within two days, the money was to transferred Tshikovha Graduate Academy, which then diverted more than R2.6 million to a law firm to facilitate the purchase of the property. Tshikovha also transferred R1m to Mshandukani Holdings, which was used to purchase a 2016 Toyota Hilux DC 2.4GD-6.
Another property that has been preserved is erf 210 Sable Hills Waterfront Estate in Pretoria. The property was purchased in 2015 with the money meant to host a sports event in Bloemfontein for the intellectually impaired. The South African Sports Association for the Intellectually Impaired (SASA-II) received a R30 million grant released in two tranches of R15 million each. Shortly after, SASA-II transferred over R3.9 million to a company owned by Karabo Charles Sithole, cousin to NLC's former COO, Philemon Letwaba.
On 13 July 2017, Nunnovation Africa Foundation NPO received over R23 million from the NLC and two weeks later, the NPO transferred R5 million to another company, which subsequently funnelled R2.9 million to Upbrand Properties to purchase a farm in Gauteng for Tsotsi actor Terry Pheto's sister Dimakatso Pheto. The last property to have been preserved is erf 3129 in Louis Trichardt Ext 9, which was bought in October 2017. According to Kganyago, the NLC transferred R20m to Mushumo Wu Shavha Zwanda, which then funnelled R6m and the funds were used for personal gain, including the purchase of property by Letwaba, without securing a loan from a financial institution.
PROPERTIES TO BE SOLD AT AUCTION
Kganyago added that the preservation order is there to ensure that the identified assets remain secured and cannot be sold or disposed of while investigations continue. "The SIU and AFU are working closely to expedite the legal process to recover the misappropriated funds and bring those involved in these fraudulent activities to justice. All the properties mentioned above represent the proceeds of unlawful activity as provided for in the Prevention of Organised Crime Act. Once forfeited, the property will be sold at a public auction and the NLC will be compensated for its losses," Kganyago added.
