The National Lotteries Commission (NLC) R1.4 billion scandal has come back to the spotlight after law enforcement tasked to investigate the matter was granted a preservation order to seize high value properties.
The Special Investigation Unit (SIU) and the Asset Forfeiture Unit (AFU) announced on Wednesday after the High Court Gauteng Division, Pretoria, granted them an order to confiscate four properties and a vehicle worth R6.5 million related to the “fraudulent” grant funding.
The order, dated July 24, 2024, states that various assets acquired through the misappropriation of funds from the NLC should be kept in reasonable condition until a forfeiture order has been granted.
In terms of the High Court order and according to SIU spokesperson Kaizer Kganyago, the properties preserved include:
* ERF 697 Lakefield Ext 22, City of Ekurhuleni, Johannesburg
On 22 February 2016, Konani-Pfunzo Learning Centre NPO received R55 463 735 from the NLC. Within two days, Konani-Pfunzo transferred R55 250 000 to Tshikovha Graduate Academy (Tshikovha), which then diverted R2 641 898.88 to a law firm. This amount was used to facilitate the purchase of ERF 697 Extension Lakewood in Ekurhuleni by Mr Moudy Madzielwana and his wife, using funds fraudulently obtained from the NLC.
* ERF 210 Sable Hills Waterfront Estate in Pretoria where the SA Sports Association (SASA-II) for the Intellectually Impaired received a R30 million grant from the NLC to host a sports event in Bloemfontein for intellectually impaired athletes.
According to the SIU, the funds were released in two tranches of R15 million each, with the final payment made on January 28, 2016. Shortly after, SASA-II transferred over R3.9 million to Ironbridge Travelling Agency and Events, a company directed by Mr Karabo Charles Sithole, cousin to NLC’s former COO, Philemon Letwaba.
On February 5, 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.
* Holding 46 Ironsyde Agricultural Holdings, Gauteng Province:
Kganyago further said: On July 13, 2017, the Nunnovation Africa Foundation NPO received R23 720 000 from the NLC. On 25 July 2017, Nunnovation transferred R5 000 000 to Miss One 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.
* ERF 3129 Louis Trichardt Ext 9, Makhado Local Municipality.
On 5 October 2017, the NLC transferred R20 000 000 to Mushumo Wu Shavha Zwanda. Mushumo then funnelled R6 000 000 to Thwala Front, a company implicated in NLC corruption cases. The funds were used for personal gain, including the purchase of property by Mr Philemon Letwaba, without securing a loan from a financial institution.
* 2016 TOYOTA HILUX DC 2.4GD-6:
On 24 February 2016, Tshikovha transferred R1 000 000 to Shandukani Holdings, which was used to acquire a 2016 Toyota Hilux DC 2.4GD-6. The vehicle was registered under Preldon Construction, directed by Mrs 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 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,” added Kganyago.
The Star previously reported that the SIU was on the brink of solving the case that has been hogging headlines for the last few years.
Three years ago, the unit was tasked, under Proclamation 32 of 2020 – signed by President Cyril Ramaphosa – to investigate the fraudulent conduct of the NLC.
Some of those who have been subject of the investigations are former Hawks spokesperson Hangwani Mulaudzi.
Other high-profile subjects into the investigations include artist and businessman Arthur Mafokate and actress Terry Pheto, who won an Oscar for the movie, Tsotsi, and fashion designer Thula Sindi.
The Star