South African lottery grant beneficiaries ordered to surrender assets

South African lottery grant beneficiaries ordered to surrender assets

The beneficiaries of National Lotteries Commission (NLC) grant funding have been ordered by the Special Tribunal to surrender a residential property in Zwartkop and four luxury vehicles to the Special Investigating Unit (SIU) appointed curator, pending a review application for the final forfeiture to be instituted by the SIU within 30 days. The SIU believes that the assets are proceeds of unlawful activity and fall to be forfeited to the State.
The Special Tribunal order, handed down by Judge Lebogang Modiba on 14 February 2022, orders respondents, Buyisiwe Khoza, Tshepo Montsho, Jabulane Sibanda, Terence Magogodela, Indaba Yokulinda, Unicus Solu(IT)ons PTY LTD and Boitumelo Diutlwileng to surrender assets to the SIU appointed curator for control and administration.
All luxury vehicles, which include two Mercedes Benz AMG, Audi AU 335 A3 and Honda Jazz, have to be surrendered by respondents to the curator within seven days. In the event that a vehicle is not insured, the curator may obtain insurance at the cost of the respondent, the Special Tribunal ordered.
The SIU approached the Special Tribunal for a preservation order to freeze and respondents to surrender the assets to SIU appointed curator following an intensive investigation in the affairs of NLC and its employees, which revealed that Inqaba Yokulinda, a Non-Profit Organisation (NPO), received funding from the NLC in two tranches in the amount of R19 278 000.00 between February 2018 and September 2019 for the construction of athletic tracks in North West and Mpumalanga provinces.
SIU investigation into the NLC funding revealed that the granting of this fund was conducted in a manner contrary to the Lotteries Act, the Grant Funding Policies and as well as the relevant regulations.
Furthermore, SIU investigation in the funding revealed, prima facie, that there is evidence of collusion between employees of the NLC and Members of Inqaba Yokulinda, including unconnected third parties who partook in the scheme to obtain R19. 2 million in funding from the NLC for their own personal use. Only R4.2 million of the R19.2 million was used for its intended purpose.
The SIU wants the Special Tribunal to review and set aside the decision by the NLC to award grant funding to Inqaba Yokulinda and to recover financial losses suffered by NLC and the State through civil litigation.
The SIU was, in terms of Proclamation R32 of 2020, directed by President Cyril Ramaphosa to investigate allegations of corruption, maladministration, malpractice and payments made by the NLC together with the conducts of NLC employees. Investigations in the affairs of NLC are still ongoing. In line with SIU Act 74 of 1996, the SIU will refer evidence pointing to criminality to the National Prosecuting Authority for further action.
The outcome of this Special Tribunal application is a continuation of implementation of the SIU investigations outcomes and consequence management to recover financial losses suffered by State institutions.

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