Read more
Lotto heist: SIU almost done with second phase of R1.4bn NLC corruption probe
The SIU has initiated 10 criminal referrals against NLC officials, non-profit organisations, and companies, which have been forwarded to the NPA.
Over R1.4 billion in fraudulent grants were made by the National Lotteries Commission. Picture: Raymond Joseph/GroundUp
The Special Investigating Unit (SIU) has reported that it has completed 90% of phase two in the National Lotteries Commission (NLC) investigations.
The investigation is worth about R1.4 billion, which the government and the NLC have allegedly lost due to corruption.
The breakdown of the investigation phases indicates that the first phase amounted to nearly R280 million, the second phase R246 million, while the next phase encompasses around R900 million.
ALSO READ: SIU recovers R737.9 million in Nsfas funds from higher learning institutions
On Wednesday, the SIU appeared before Parliament’s Portfolio Committee on Trade and Industry to give an update on the investigation.
To strengthen the management of SIU referrals, a memorandum of understanding (MoU) was entered into by the heads of the NPA, SAPS, DPCI and SIU.
“There is thus a special focus on the referrals of the SIU in order to prioritise the investigations of these matters,” said spokesperson Kaizer Kganyago.
The cases pertaining to the NLC are managed in accordance with the MoU, with 26 dockets currently registered and under investigation.
ALSO READ: Musician Arthur Mafokate fails to halt SIU seizure of luxury guesthouse
The SIU has initiated 10 criminal referrals against NLC officials, non-profit organisations, and companies, which have been forwarded to the NPA.
Additionally, the Asset Forfeiture Unit (AFU) secured three preservations in the NLC cases.
This was to recover funds not used for their purported purposes but rather to buy properties for the benefit of employees and members of NPOs that had applied for grants.
These include actor Terry Pheto, whose house was auctioned, and musician Arthur Mafokate.
The court recently ruled in favour of the SIU in the Mafokate matter, enabling further action for forfeiture.
ALSO READ: SIU freezes properties linked to ex-Lotteries boss, Kwaito legend Arthur Mafokate
Another preservation order, obtained on 4 November 2023 against former NLC chairperson Professor Alfred Ntshengedzeni Nevhutanda, amounted to R23.2 million.
This order was granted against four immovable properties and three luxury vehicles.
One vehicle, a Rolls Royce Phantom, was sold to an innocent party and has been excluded from the operation of the order.
The SIU evidence revealed that the cash purchases of R10 million were linked to grants allocated by the NLC to NPOs. The AFU has filed a forfeiture application.
ALSO READ: AFU freezes R29m assets linked to syndicate who stole from Eskom
