Thokozile Mnguni
The SIU has secured preservation orders on two Pretoria properties linked to an ongoing investigation into alleged misuse of National Lotteries Commission grant funding.
The Special Investigating Unit (SIU) has obtained court orders to preserve two Pretoria properties linked to a R13 million National Lotteries Commission (NLC) grant intended for a community agricultural project in KwaZulu-Natal.
The preservation orders were granted by the Special Tribunal and affect properties in The Orchards and Soshanguve. The funding had been allocated to Malusi We Sizwe Non-Profit Company for a project in the Zululand District Municipality aimed at benefiting around 1,900 people, including unemployed youth and elderly residents.
According to the SIU, the funding process began in September 2018 when then NLC Grant Manager Marubini Ramatsekisa submitted a proposal for proactive funding. The proposal was approved on the same day by the then Chief Operating Officer, Philemon Letwaba.
Malusi We Sizwe NPC applied for nearly R15 million in October 2018. At the time, Sinqobile Khumalo, Margaret Sithole and Lawrence Malungwa were listed as directors. The NLC Adjudication Committee later approved R13 million.
The SIU said Nelisiwe Mahlangu was appointed as a director shortly after the grant agreement was signed, while the original directors resigned on the same day in November 2018.
The NLC paid R7 million in December 2018 and a further R6 million in March 2019. Investigators found the organisation had only R100 in its bank account before receiving the funds.
The SIU traced money transfers from the NPC account to several entities and property transactions. These included the purchase of a Soshanguve property for R345,000 in April 2019 and transfers amounting to R5.6 million to Trizaflo Pty Ltd.
Investigators said some of the funds were later used to purchase properties registered in the names of Mahlangu and Alfred Sigudhla, instead of being used for the agricultural project.
The preservation orders prevent the sale or disposal of the properties while civil proceedings continue. The matter forms part of the SIU’s broader investigation into corruption and maladministration involving NLC-funded projects.