By Akani Nkuna
In a move to clamp down on alleged corruption, the Special Investigating Unit (SIU) has obtained a preservation order from the Special Tribunal to freeze a high-value property in Midstream Estate, Gauteng.
The property is linked to Israel Mathibe, Smart Safety PPE and others implicated in a scandal involving the National Lotteries Commission funds.
The order prohibits any sale, lease, transfer or encumbrance of the asset pending the outcome of civil proceedings tied to the broader investigation into lottery corruption.
“The order of the Special Tribunal is part of implementing SIU investigation outcomes and consequence management to recover financial losses suffered by the state institutions because of corruption or negligence,” SIU spokesperson Kaizer Kganyago said in a statement on Wednesday.
“The order forms part of a broader investigation into corruption involving NLC grants intended for community development projects.”
The SIU investigation found that money meant for community upliftment projects, such as agricultural initiatives and old age homes, was allegedly siphoned off to buy the Midstream Estate property. Funds were allegedly funnelled through a web of non-profit organisations and private companies.
According to Kganyago, the SA Youth Movement NPC was granted R23 million for constructing old age homes in rural areas, but diverted R1.6 million to Smart Safety PPE, which used the funds towards purchasing the Midstream property.
Malusi We Sizwe NPC, which was allocated R13 million for a farming project in KwaZulu-Natal, transferred nearly R897,000 to Trizaflo (Pty) Ltd, which contributed R2.1 million. The property was registered under Smart Safety PPE and was signed off by its then-director Alfred Mzwakhe Sigudlha.
“Sigudlha, who is cited in the tribunal order, serves as the Chairperson of the SA Youth Movement NPC, which received R23 million from the NLC for old-age homes in rural provinces. He signed the grant agreement on September 17, 2027, and diversion for additional R7.5 million on 21 May 2019, despite a lack of proof of project delivery,” Kganyago added.
Additionally, Sigudlha signed bank statements as director of Smart Safety PPE in October 2018 and continued to be listed as an “interested party” on the company’s bank account even after being replaced.
He also authorised R1.6 million in payments from the SA Youth Movement to Smart Safety PPE, which were used to buy the Midstream property.
Sigudlha signed the offer to purchase the property on 23 October 2019 on behalf of Smart Safety PPE.
INSIDE POLITICS