The Special Investigating Unit (SIU) has seized a luxury property owned by Vhutanda Investments, a private company whose sole director is Professor Alfred Ntshengedzeni Nevhutanda.
Vhutanda Investments is accused of purchasing the property valued at approximately R27 million in 2018, with money from the National Lotteries Commission (NLC).
At the time of the purchase, Nevhutanda served as both the director of Vhutanda Investments and the Chairman of the Board of the NLC.
The SIU investigation has revealed that the property was bought with money from non-profit organisations under the auspices of grant funding, from the NLC.
“The luxury property, therefore, constitutes proceeds of unlawful activities hence the application for a preservation order pending the final determination of the review application,” said the investigating body in a statement.
“NPOs War_Rna, Inqaba Yokulinda, Mushumo Ushava Zwanda, Simingaye Community Project NPO and Zibsilor NPO applied for grant funding at the NLC and were jointly funded to the tune of more than R100 million.”
Immediately after the funds were secured, the NPOs transferred a significant sum of that grant monies to a legal firm for the purchase, transfer and registration of the Wonderboom property, including the furniture.
Nevhutanda was a member of the adjudication committee that approved grant funding for some of the NPOs.
“The more than R100 million in grant funding was purported to be for the community empowerment projects like the construction of athletics tracks in Mpumalanga and North West provinces, old age homes in North West and Limpopo provinces, and a rehabilitation centre in Soshanguve township, Gauteng,” said the SIU.
Nevhutanda and Vhutanda Investments are now prohibited from selling, disposing of, leasing, transferring, donating, or dealing in any manner whatsoever with respect to the immovable property and the furniture.
The property is now under the care of a curator.
“The SIU will institute civil proceedings within 60 days, which seeks to review and set aside the decisions by the NLC to approve funding for War_Rna NPO, Inqaba Yokulinda, Mushumo Ushava Zwanda, Simingaye Community Project NPO and Zibsilor NPO, and recover financial losses suffered by the state,” it said.
The SIU is also instituting a civil case against Nevhutanda and Vhutanda Investments for the disgorgement of secret profits improperly earned during his tenure as NLC board chairperson.