By Johnathan Paoli
The Special Investigating Unit (SIU) has intensified its crackdown on corruption linked to National Lotteries Commission (NLC) grant funding, securing both the repayment of irregularly disbursed funds from media personality Minenhle “Minnie” Dlamini and a preservation order freezing a Pretoria property linked to the late actor Presley Chweneyagae, as investigations into widespread abuse of public funds continue to widen.
In a statement issued by SIU spokesperson Kaizer Kganyago, the unit confirmed that Dlamini was one of several beneficiaries who received funds from the Mshandukani Foundation Non-Profit Organisation (NPO), which acted as a conduit for Lottery funding intended for the 2016 Rio Olympic Games Roadshow.
The SIU found that the money was not used for its approved purpose and was paid out in contravention of the grant agreement.
“In terms of the settlement agreement, Ms Dlamini has agreed to repay the full amount of R50 000 she received in 2016 from the Mshandukani Foundation NPO. Ms Dlamini has fully cooperated with the SIU investigation and has acknowledged that the funds were not lawfully due to her,” Kganyago said.
The SIU investigation revealed that the Mshandukani Foundation, acting through the South African Sports Confederation and Olympic Committee (SASCOC), received approximately R24.8 million from the NLC.
The funds were subsequently distributed to various individuals and entities without lawful justification or in breach of the conditions attached to the grant.
The watchdog stressed that the settlement with Dlamini forms part of a broader recovery strategy targeting all beneficiaries of irregular NLC payments, regardless of the amounts involved or the public profile of recipients.
“The repayment forms part of the SIU’s broader efforts to recover misappropriated public funds and hold all recipients of irregular payments accountable,” Kganyago said.
Dlamini, a 35-year-old actress and television presenter, reached the agreement with the SIU through an out-of-court settlement.
The SIU said the recovered funds would be returned to the NLC for redistribution to lawful beneficiaries in line with its mandate to support charitable and developmental causes.
Kganyago said civil and criminal proceedings remain underway against other individuals and entities implicated in the broader NLC grant scheme, including former Lottery officials, board members and additional beneficiaries of unlawful payments.
Kganyago said he 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.
The unit reiterated that settlements do not signal the end of accountability processes and warned that those who unduly benefited from public funds should expect sustained legal action as investigations continue.
This follows another case, in which the SIU obtained a preservation order from the Special Tribunal to freeze a residential property in Hesteapark, Pretoria, linked to Chweneyagae, his spouse and several co-respondents implicated in an ongoing NLC corruption investigation.
The order, granted earlier in the month, bars the sale, transfer, lease, encumbrance or disposal of the property pending the institution of civil proceedings by the SIU within 60 court days.
It is directed at Charlaine Chweneyagae, in her personal capacity and as executrix of her late husband’s estate, as well as Alfred Sigudla, the Southern African Youth Movement NPO, Domestic Baboon (Pty) Ltd and other respondents.
According to the SIU, the property was allegedly purchased using approximately R889 000 diverted from a R15 million NLC grant intended to support youth arts development programmes.
Investigators found that the grant was approved for the Southern African Youth Movement NPO, represented by Sigudla, and was subsequently channelled through Domestic Baboon (Pty) Ltd, a company solely owned by the late Chweneyagae, to acquire the private residence in Gauteng.
The SIU said the preservation order is aimed at safeguarding assets suspected to be the proceeds of unlawful conduct while civil litigation is prepared.
The unit stressed that freezing the property does not constitute a finding of guilt but is a precautionary measure to prevent the dissipation of assets linked to alleged corruption.
The action forms part of the SIU’s broader mandate to recover public funds lost through fraud and maladministration within the NLC.
The investigation was authorised by President Cyril Ramaphosa through Proclamation R32 of 2020, empowering the SIU to probe NLC grant allocations and recover losses suffered by the State.
The SIU confirmed that civil proceedings will follow and that any evidence of criminal conduct uncovered during the investigation will be referred to the National Prosecuting Authority (NPA) for further action.
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