The Special Tribunal has granted an order to the Special Investigating Unit (SIU), allowing the anti-corruption unit to freeze assets worth about R24.8m related to the alleged misappropriation of a National Lotteries Commission (NLC) grant.

According to the SIU, the order freezes two vehicles and a high-value Powerstar vehicle allegedly bought with money intended to fund the 2016 Rio Olympics ‘Roadshow Send-Off’ campaign.

“The judgment follows an SIU investigation that uncovered a co-ordinated scheme involving the Mshandukani Foundation NPO, registered just four months before receiving the grant.

“In July 2016, the South African Sports Confederation and Olympic Committee applied for funding on behalf of Mshandukani Foundation, claiming it would support Olympic awareness events nationwide. Despite the foundation’s lack of track record, the NLC approved R24.98m within six days,” the SIU said.

The money was then transferred to the NPO’s accounts in three tranches.

Within days, those funds were allegedly diverted to entities linked to NLC officials, including:

• R15.35m to Ironbridge Travel Agency, linked to former NLC COO Phillemon Letwaba, used for cars, goats, and personal expenses.
• R7.23m to Mshandukani Holdings, controlled by foundation member Mashudu Shandukani.
• Direct payments of R450 000 to Letwaba and R600 000 to former NLC legal manager Tsietsi Maselwa.

“The order of the Special Tribunal is part of implementing SIU investigation outcomes and consequence management to recover financial losses suffered by state institutions because of corruption or negligence.

“The SIU is empowered to institute a civil action in the High Court or a Special Tribunal to correct any wrongdoing uncovered during investigations caused by corruption, fraud, or maladministration.

“In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU refers any evidence pointing to criminal conduct it uncovers to the National Prosecuting Authority for further action,” the SIU said. – SAnews.gov.za

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