The Pretoria High Court has issued an order preventing certain Pretoria residents from disposing of their assets in relation to National Lotteries Commission (NLC) corruption.

Four properties and three high-performance vehicles have been frozen in pursuit of R344m in NLC grants apparently siphoned off by board members, senior employees, and their families.

Those implicated include a 70-year-old residing in Pretoria North, a 38-year-old in Pretoria East, and a 45-year-old and 43-year-old in Centurion.

The grants were intended for projects to assist impoverished communities, however, the implicated residents allegedly seized the money for personal gain.

The Special Investigating Unit (SIU) and Asset Forfeiture Unit (AFU) of the National Prosecuting Authority obtained the preservation order on September 28 for the Limpopo properties and vehicles.

The SIU seized the following:

• A Limpopo property of a 70-year-old 2SP Investment Trust trustee and Annlin, Pretoria North, resident
• A Rolls-Royce Phantom of a 48-year-old Meyersdal, Alberton, resident
• A Limpopo property of a 45-year-old Monavoni, Centurion, resident
• Two Limpopo properties and a BMW 5 series of a 43-year-old Monavoni, Centurion, resident
• A BMW 7 series of a 38-year-old Equestria, Pretoria East, resident.

Millions siphoned

SIU spokesperson Kaizer Kganyago welcomed the order and said the properties and luxury vehicles were linked to the siphoning of millions of rands from the NLC.

He said the four properties in Polokwane and Louis Trichardt, and three luxury vehicles were valued at R14 million.

Kganyago said the registered owners of the assets were interdicted from disposing of the frozen property.

He said the AFU and SIU obtained two preservation orders related to the NLC investigation, which included 14 immovable properties valued at R67 million.

“This order stems from serious maladministration and corruption at the NLC, uncovered by the SIU as authorised by President Cyril Ramaphosa to investigate.”

He said the conduct of the implicated NLC officials resulted in financial losses to the state.

“The SIU investigations found fraud and corruption at the NLC to the value of approximately R344m, where board members and senior employees and their family members and friends had enriched themselves with NLC grants.”

Kganyago said the alleged fraudsters used non-profit organisations (NPOs) to apply for NLC funding.

“In some instances, existing NPOs were hijacked, and the original members were replaced by members linked to NLC board members or senior staff.

“The project would be approved, and very little of the funds would be spent on the actual project. The offenders utilised the bulk of the funds to purchase fixed properties and expensive motor vehicles for their benefit.”

Kganyago said during these corrupt activities, there was no proper oversight of the project, as the management of the NLC was involved in the theft of the grant.

He said the seized assets included an office park in Polokwane, Limpopo, purchased in November 2015 for R1 005 480.

“A total of R264 400 and R741 080 stolen NLC funds were transferred to pay for the property. The stolen funds originated from grant funding of R80m paid by the NLC to Lulamisa community development organisation for hosting the Commonwealth Games in Durban.”

He added that Lulamisa was hijacked to apply for the grant and the property was registered in the name of 2SP Investment Trust.

According to Kganyago, vacant land in Louis Trichardt, Limpopo, was purchased in July 2017 for R750 000 after R600 000 and R20 961 in NLC funds were stolen then transferred to a conveyancing firm to pay for the property.

“The stolen funds originated from grant funding of R23 720 000 paid by the NLC to the Nunnovation Africa Foundation NPC, to facilitate sports tournaments.”

Kganyago said a farm in Brakspruit, Limpopo, was purchased in September 2017 for R780 000, funds stolen from an NLC grant of R9.5m to Limpopo Recreation Providers NPO.

“When the NLC followed up on the project, they could not find the NPO at the address supplied on the application form. The NPO was subsequently declared delinquent as they did not provide the NLC with progress reports.”

He said the property in Louis Trichardt extension 11 was purchased in September 2019 for R900 000 stolen from NLC funds.

“The stolen funds originated from grant funding of R10m to Light Up Your World Foundation NPO.

“Light Up was also hijacked to apply for an NLC grant.”

The Rolls-Royce Phantom was purchased in August 2016, and the other vehicles in 2017.

Kganyago said all the assets were proceeds of unlawful activity and would be sold by public auction, and the NLC be compensated for its losses.

“This preservation [order] is part of implementing the anti-corruption strategy, which sees law enforcement agencies coming together to eradicate corruption in South Africa.”

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