The Special Investigating Unit has secured preservation orders on properties linked to a non-profit accused of misusing R13 million from the National Lotteries Commission intended for community upliftment in KwaZulu-Natal.
Image: THOBILE MATHONSI Independent Newspapers Archives
The Special Investigating Unit (SIU) has secured preservation orders against two properties in Pretoria suspected of having been purchased with funds intended for an agricultural project in the Zululand District Municipality in KwaZulu-Natal, which was meant to benefit hundreds of impoverished residents.
The action follows an investigation revealing that a non-profit company (NPC) allegedly embarked on a lavish property spending spree shortly after securing a multi-million-rand grant from the National Lotteries Commission (NLC).
The publication was unable to obtain comment from the NPC at the time of publication, and its name has therefore been withheld.
SIU spokesperson Selby Makgotho confirmed that the agency obtained preservation orders as part of the SIU’s ongoing investigation into allegations of corruption and mismanagement linked to projects funded by the NLC, conducted under Proclamation 32 of 2020 issued by President Cyril Ramaphosa.
“The SIU instituted civil proceedings under the Special Investigating Units and Special Tribunals Act 74 of 1996 as part of implementing SIU investigation outcomes and recovering financial losses suffered by State institutions because of corruption or negligence, including funds paid for services not rendered.
“The SIU remains committed to recovering public funds lost through corruption and ensuring accountability for those involved in the abuse of public resources, while protecting the public interest and assets through prevention measures and systemic investigations to eradicate fraud, maladministration and corruption,” Makgotho explained.
The NLC grant of R13 million was awarded to Malusi We Sizwe in November 2018 to establish a farming project aimed at uplifting poor communities in KwaZulu-Natal.
The initiative promised to benefit approximately 1,900 residents, including vulnerable groups such as unemployed youth and the elderly.
However, findings by the SIU suggested that the funds were instead diverted into allegedly questionable transactions, luxury property acquisitions and personal accounts, casting a dark shadow over the intentions of the NPC.
Records indicated that prior to receiving the substantial Lotto funding, the NPC reportedly had only R100 in its bank account.
This raised immediate red flags for investigators, who began scrutinising the financial activities of the NPC.
A key development emerged when a former NLC grant manager submitted a proposal for “proactive funding” for the project only days before the grant was approved by another former senior NLC official on the same day.
The SIU alleged that the properties, located in Soshanguve and The Orchards, were acquired for the personal benefit of an individual identified as Mahlangu, rather than contributing to the promised agricultural project aimed at supporting communities in Zululand.
The SIU subsequently approached the courts for preservation orders to prevent the sale of the properties and ensure they remain seized during ongoing civil proceedings intended to recover the allegedly misappropriated funds.
As the investigation continues, the SIU said it remains committed to referring evidence of criminal conduct to the National Prosecuting Authority (NPA) for possible prosecution.
DAILY NEWS