Four luxury homes and a Toyota Hilux have been seized after the court granted a preservation order to the Asset and Forfeiture Unit and Special Investigating Unit as part of ongoing investigations into the siphoning of millions from the National Lotteries Commission.
The National Prosecuting Authority on Wednesday confirmed that the total value of the preserved items amounts to around R6.5 million.
“Dated July 24, the order 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," the NPA's Lumka Mahanjana said.
“This decisive action is part of an ongoing investigation into the unlawful use of NLC grant allocations meant to support community development projects.”
The first property is situated in Lakefield in Gauteng where the Konani-Pfunzo Learning Centre NPO received R55,463,735 from the NLC.
Two days later, the money was transferred to the Tshikovha Graduate Academy with R2,641,898.88 then diverted to a law firm.
“This amount was used to facilitate the purchase of ERF 697 Extension Lakewood in Ekurhuleni by Moudy Madzielwana and his wife, using funds fraudulently obtained from the NLC,” Mahanjana said.
Another property, at the Sable Hills Waterfront Estate in Pretoria was reportedly purchased by a relative of the NLC’s former chief operating officer.
The NPA explained that in 2015, the South African Sports Association for the Intellectually Impaired received a R30 million grant from the NLC to host a sports event for disabled athletes in Bloemfontein.
The funds were released in two batches with the final payment made in January 2016.
“Shortly after, SASA-II transferred over R3.9 million to Ironbridge Travelling Agency and Events, a company directed by Karabo Charles Sithole, cousin to NLC’s former COO, Philemon Letwaba.
“In February 2016, Ironbridge transferred R2 million to Ndzhuku Trading, which then used R350,000 to purchase a property for R750,000, registered under the Malwandla Siweya Family Trust,” the NPA said.
The third property was acquired from the NLC through the Nunnovation Africa Foundation NPO which received R23,720,000 in July 2017.
According to the NPA, Nunnovation transferred R5,000,000 to Mishsone Trading, which subsequently funnelled R2,900,000 to Upbrand Properties, a company tied to prior NLC corruption. The funds were used to purchase Holding 46 Ironsyde Agricultural Holdings in Gauteng under the name of Dimakatso Pheto, sister of South African actress, Terry Pheto.
The fourth property in the Makhado Local Municipality was purchased by Philemon Letwaba. The NPA said R20,000,000 was transferred to Mushumo Wu Shavha Zwanda who then funnelled R6,000,000 to Thwala Front.
Mahanjana said the vehicle seized was purchased in February 2016.
She said Tshikovha transferred R1,000,000 to Mshandukani Holdings, which was used to purchase a 2016 Toyota Hilux DC 2.4GD-6.
“The vehicle was registered under Preldon Construction, directed by Pretty Shandukani, the wife of the company’s director, Mashudu Shandukani. This transaction was made possible through funds unlawfully transferred from the NLC grant,” the NPA said.
Mahanjana has said the preservation order ensures that the identified assets remain secured and cannot be sold or otherwise 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,” she said.
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