SIU freezes R2.7 million from NLC-linked divorce settlement

The Special Investigating Unit (SIU) has obtained a preservation order from the Special Tribunal to freeze R2.7 million linked to alleged abuse of National Lotteries Commission (NLC) grant funding, as part of its ongoing fight against fraud and corruption.

The funds, including accrued interest, are held by Tintswalo Patience Chauke and originate from the sale of land she received as part of her divorce settlement with her former husband, Alfred Muzwakhe Sigudla. The couple divorced in 2021.

SIU spokesperson Kaizer Kganyago said the order “prohibits Chauke from withdrawing or transferring the funds until the SIU completes a review application to cancel the grant funding that enabled the purchase of the land, thereby ensuring that the potentially misappropriated funds are secured.”

The investigation centres on grants awarded to the SA Youth Movement NPC, chaired by Sigudla, which received about R23 million from the NLC in 2018 to construct old-age homes in KwaZulu-Natal and the Free State.

Kganyago says evidence gathered by investigators shows that after the funds were disbursed, Sigudla redirected portions into his own companies’ bank accounts.

“Evidence collected by the SIU reveals that, after receiving these funds, Sigudla transferred a portion to his own companies’ bank accounts and subsequently used them to acquire two luxurious properties,” he said.

According to the SIU, the properties were located in Midstream Estate and Copperleaf Golf Estate. The Midstream Estate property has already been frozen pending the finalisation of a review application into the lawfulness of the grant funding.

Kganyago said the Copperleaf Golf Estate property, bought for about R800,000 using money intended for community development, was co-owned by Sigudla and Chauke in 2018 and later transferred to Chauke as part of their divorce settlement.

“Further investigations have revealed that the proceeds from the sale of this property, amounting to R2,550,000, currently reside in Chauke’s bank account,” Kganyago said.

He said the preservation order forms part of the SIU’s broader mandate to safeguard public resources.

“Protecting the public interest and assets through prevention measures and systemic investigations to eradicate fraud, maladministration, and corruption remains central to our work,” Kganyago said.

Kganyago added that the SIU’s primary objective is to recover money lost through unlawful conduct linked to NLC funding.

“The primary mission of the SIU is to recover proceeds from beneficiaries of NLC grant funding who are involved in unlawful activities, thereby restoring the State’s financial losses,” he said.

The investigation was authorised by President Cyril Ramaphosa through Proclamation R32 of 2020. Kganyago said this empowers the SIU to probe allegations of corruption and maladministration at the NLC and to recover losses suffered by the State.

“The order from the Special Tribunal represents an important step in the SIU’s ongoing efforts to combat corruption and ensure accountability and transparency in the management of public funds,” Kganyago said.

He added that the SIU is empowered to institute civil proceedings in the High Court or the Special Tribunal under the Special Investigating Units and Special Tribunals Act of 1996, and that “any evidence of criminal conduct uncovered during investigations will be referred to the National Prosecuting Authority for further legal action.”

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