Johnathan Paoli
Head of the Special Investigating Unit (SIU), Andy Mothibi, has described the National Lotteries Commission as a criminal enterprise.
The SIU updated Parliament’s Trade and Industry Commission on Wednesday on the status of the investigation and said the more than three-year long investigation has revealed a web of corruption between lottery officials, former board members, lawyers and NPOs worth approximately R1.4 billion.
Implicated celebrities included actress Terry Pheto and music artist Arthur Mafokate, following the recent seizure of their properties in an attempt to recover embezzled funds.
Mothibi said that the NLC approved grant funding of R5 million to Zibisibix Non-Profit Company for a chicken farm in December 2018 and that after receiving the R5 million, money moved from the account.
In addition, the SIU presented to committee how the South African Youth Movement (SAYM) applied for grant funding on behalf of the Presley Chweneyagae Foundation, which belongs to award-winning actor, Presley Chweneyagae and that the main purpose of the application was for the Take Back the Future Musical, Documentary and Poetry Arts programme, with the commission approving a grant funding of an amount of R15 million.
From the R15 million, R2 999 967.00 was transferred to Iron Bridge Traveling Agency and Events in August 2016, which is owned by the former NLC CEO Phillemon Letwaba’s wife, Rebotile Malomane.
In May 2017, a further R950 190.00 was transferred to VNMM Consulting Engineers CC. VNMM Consulting Engineers is owned by former NLC board chair Alfred Nevhutanda’s son-in-law, Meshack Makhubela and an amount of R500 000 with a reference plot purchase being transferred to conveyancing attorneys.
Mothibi said that from the balance of R 450 190.00, Nevhutanda received R100 000.00 for a bus purchase and a further R60 000 for a funeral and debit orders for a car finance account.
The SIU investigation also revealed how an NPO was hijacked and funds meant to uplift poor women in Marikana and surrounding areas in the North West province on a chicken farming project were misused.
The application was adjudicated and the grant funding for the value of R13 million was awarded to an NPO and was to be paid in two tranches of R7 million and R6 million.
In November 2020,the hijacked NPO made an application for additional funding and received a further R3.5 million
The investigation revealed that a shelf company named Silverlite Trading bought the land in Marikana for this project for R400 000 and that William Huma, a former NLC board member is the current sole director of the shelf company.
Mothibi said that the SIU went on a site visit and found the farm was well-built and completed, containing a workers’ house, guard house, egg packaging and storehouse and chicken-egg production house and a borehole, but remained completely inoperable.
He said that it was being vandalised, and some of the electric cables and solar panels have been stolen from the farm.
The SIU has so far made eight criminal referrals to the NPA and 11 disciplinary referrals to NLC officials.
The unit confirmed it was now in the third phase of its investigation into the NLC with Mothibi saying it may be necessary to enter a fourth phase as the allegations continue to mount, with more names of implicated individuals pouring into the investigation’s scope.
The spokesperson said the organised crime nature of this required a meticulous assessment and investigation, and applications to fund creches had been used as a cover for getting funding that was then siphoned off to a variety of individuals and companies.
“All these monies that have been given to the NPOs and NPCs end up not being used for the purpose they were meant for and as a result, beneficiaries are suffering,” Mothibi said.
The unit is expected to submit an interim report to the President by the end of February.
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