Unpacking the SIU investigation into the R1.4 billion National Lottery scam

Published Feb 15, 2024

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The Special Investigating Unit (SIU) said it was almost complete with the second phase of the investigation of the National Lotteries Commission (NLC) corruption case amounting to R1.4 billion.

SIU spokesperson Kaizer Kganyago said 90% of the second phase in its three-phased investigation was complete.

The first phase was worth approximately R280 million, the second phase R247 million and third phase around R900 million.

On Wednesday, the SIU appeared before the Parliament’s Portfolio Committee on Trade and Industry to give an update on the investigation.

The SIU told Parliament that it had so far made eight criminal referrals to the National Prosecuting Unit and 11 disciplinary referrals to NLC officials.

“In the presentation, SIU revealed new investigation findings. One of the findings is related to award winning actress, Moiteri Pheto, who unduly benefited once again from the NLC grant funding.”

Explaining the case Kganyago said the NLC approved grant funding of R5 million to Zibisibix Non-Profit Company for a chicken farm in December 2018.

“After receiving the R5 million payment were made to various people and companies.”

The findings alleged that the following payments were made to: Black Planet Trading director Thula Sindi for an amount of R140,000; Tsoseletso Director Moitheri Pheto of R253,000; Pheto Safe and Cleaning Director: Dimakatso Pheto for R124,000; Sunguti projects Director: Moitheri Pheto R2.8million; Moitheri Pheto’s personal bank account for R182,000; and Dimakatso Pheto (Moitheri’s sister) for R315,500.

The SIU said a vehicle dealership was paid R252,400 and over R200,000 was spent on agricultural supplies.

“The farm was purchased for R850,000 and the SIU found that the former chairperson of the NLC board Professor Alfred Nevhutanda signed the offer to purchase the farm in the Vaal area.”

Kganyago said evidence gathered by the SIU revealed that the farm was purchased for the benefit of Dimakatso Pheto.

“The case has been referred for civil litigation for recovery and criminal referrals are being prepared.”

In another case, the SIU also presented to Parliament how the South African Youth Movement (SAYM) applied for grant funding on behalf of the Presley Chweneyagae Foundation.

The foundation belongs to award winning actor, Presley Chweneyagae.

“The main purpose of the application was for the Take Back the Future Musical, Documentary and Poetry Arts programme. The NLC approved a grant funding of an amount of R15 million.”

Kganyago said from the R15 million, almost R3 million was transferred to Iron Bridge Travelling Agency and Events in August 2016.

“Iron Bridge Travelling Agency and Events is owned by the former NLC Chief Operating Officer, Phillemon Letwaba’s wife, Rebotile Malomane.”

Kganyago said the SIU investigation also revealed how a non-profit organisation (NPO) was hijacked and funds that were meant to uplift poor women in Marikana and surrounding areas in the North West province on a chicken farming project were misused.

“The application was adjudicated and the grant funding for the value of R13 million was awarded to an NPO and was to be paid in two tranches of R7 million and R6 million. In November 2020, the hijacked NPO made an application for additional funding and received a further R3.5 million.”

Kganyago said the SIU’s investigation revealed that a shelf company named Silverlite Trading bought the land in Marikana for this project for R400,000.

“Advocate William Huma, a former NLC board member is the current sole director of Silverlight.”

He said when they the SIU went on a site visit, they found the placed was being vandalised as it was not in use.

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