SIU Nears Completion of R1.4 Billion National Lotteries Commission Probe

by Central News Reporter
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SIU

Special Investigating Unit (SIU)

The Special Investigating Unit (SIU) is nearing the completion of the second phase in a critical inquiry into the alleged corruption practices within the National Lotteries Commission (NLC). The unit stated on Wednesday that the investigation’s total value is approximately R1.4 billion, comprising funds the state and the NLC may have lost due to corruption within the integral institution.

The SIU broke down the financial significance of each phase as follows: Phase 1 is purportedly worth R279.7 million, Phase 2 has a value of R246.7 million, and Phase 3 is approximately R905.9 million.

The ongoing probe was a focal point during the SIU’s appearance before Parliament’s Portfolio Committee on Trade and Industry this Wednesday. It was here that the SIU revealed emerging details of their findings. Of particular note was the mention of award-winning actress Moitheri Pheto, who allegedly benefited improperly from NLC grant funding.

A case in point detailed by the SIU involves Zibisibix Non-Profit Company receiving R5 million NLC grant funding in December 2018 for a chicken farm venture. Subsequent financial transactions from the received funds are believed to have included payments to various entities and individuals, including Moitheri Pheto and her sister, which extended well beyond the farm’s purchase price.

“The evidence unveiled indicates that this farm was acquired expressly for the benefit of Dimakatso Pheto,” the SIU confirmed. “Civil litigation for recovery is underway, and criminal referrals are currently in preparation.”

The suspicious transactions are further complicated with the involvement of the former NLC board chairperson Professor Alfred Nevhutanda, who allegedly signed the offer to purchase the farm located in the Vaal region.

On a related note, the SIU has also uncovered financial irregularities tied to the South African Youth Movement’s (SAYM) application for grant funding in favor of the Presley Chweneyagae Foundation. The NLC approved a sizeable R15 million grant for an arts programme, only for a significant portion of these funds to be dispatched to companies associated with former NLC COO Phillemon Letwaba’s wife and Prof Nevhutanda’s son-in-law.

In a concerning insight into the misuse of NLC funds, the SIU cited a case where money intended to aid an NPO in Marikana on a chicken farming project was misappropriated. The investigation revealed that the project had been bought by Silverlite Trading, a shelf company with Advocate William Huma, an ex-NLC board member, as the current sole director. Despite the well-constructed state of the farm, the intended operations have ground to a halt and vandalism has taken place.

The SIU has taken decisive steps, making eight criminal referrals to the National Prosecuting Unit and initiating 11 disciplinary referrals to NLC officials.

The Proclamation R32 of 2020 granted by President Cyril Ramaphosa has empowered the SIU to probe into the allegations of corruption and mismanagement in the NLC. The SIU, under the Special Investigating Units and Special Tribunals Act, will continue to push for criminal charges and civil actions to correct the uncovered misconduct.

National Lotteries Commission (NLC)
National Lotteries Commission (NLC)

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