The National Lotteries Commission (NLC) has welcomed the Special Investigating Unit’s move to secure two Pretoria properties linked to an allegedly misused R13 million grant meant for a community agricultural project in KwaZulu-Natal.
Image: THOBILE MATHONSI Independent Newspapers Archives
The National Lotteries Commission (NLC) has applauded the Special Investigating Unit (SIU) for obtaining a preservation order against two Pretoria properties allegedly linked to the misuse of a R13 million lottery grant intended for a community agricultural project in KwaZulu-Natal.
The preservation order, granted by the Special Tribunal, targets properties located in The Orchards and Soshanguve and forms part of efforts to recover public funds allegedly diverted from their intended purpose.
The grant was approved by the NLC in November 2018 for an agricultural development project in the Zululand District Municipality. The initiative was expected to benefit about 1 900 people, including unemployed youth and elderly residents in the area.
NLC Commissioner Jodi Scholtz said the recovery action marked an important step in safeguarding public funds and holding those responsible accountable.
“We commend the Special Investigating Unit for obtaining a preservation order against properties linked to funds allocated by the NLC to Malusi We Sizwe Non-Profit Company,” Scholtz said.
She added that the commission remained committed to strengthening governance, restoring credibility and rebuilding public confidence in the institution.
NLC Board chairperson Professor Barney Pityana said the matter highlighted the devastating impact corruption has on vulnerable communities.
“This case highlights the human cost of corruption — funds intended to uplift vulnerable communities were misused, delaying real impact on the ground,” Pityana said.
He said the NLC was determined to ensure resources were protected and redirected to communities that were promised development opportunities.
The SIU has been investigating several allegations involving lottery funding and the misuse of grants allocated to non-profit organisations across South Africa.
Nelisiwe Mahlangu was appointed as a director of Malusi We Sizwe NPC on 26 November 2018, the same day the company’s existing directors resigned. The non-profit organisation later received more than R13 million from the National Lotteries Commission for agricultural projects in Zululand that never materialised, while funds were allegedly diverted to purchase properties registered in Mahlangu’s name and others linked to the NPC.
Image: Special Investigating Unit
“The preservation orders follow an SIU investigation, which revealed that on 14 September 2018, former NLC Grant Manager Marubini Ramatsekisa submitted an internal proposal for ‘proactive funding’ for the project, which was approved on the same day by former NLC Chief Operating Officer Philemon Letwaba.
“On 3 October 2018, Malusi We Sizwe NPC applied for funding of R14 976 796. At the time, Sinqobile Khumalo, Margaret Sithole, and Lawrence Malungwa were listed as directors of the organisation.
“The NLC Adjudication Committee approved R13 million for the project on 1 November 2018. Shortly after the grant approval and the signing of the grant agreement, Nelisiwe Mahlangu was appointed as a director of the NPC on 26 November 2018, while the existing directors resigned on the same day,” the SIU explained in a statement.
The first tranche of R7 million was paid by the NLC in December 2018 followed by a second tranche of R6 million in March the following year.
“Before receiving the NLC funding, the NPC had only R100 in its bank account,” the corruption busting unit noted.
The SIU also uncovered that monies began to flow from the NPC account to various entities and transactions linked to the acquisition of immovable properties.
These include:
“The investigation by the SIU showed that the properties in Soshanguve and The Orchards were purchased for Mahlangu’s benefit using NLC funds, rather than for an agricultural project in KwaZulu-Natal.
“The orders are intended to prevent the sale or disposal of the properties pending the finalisation of civil proceedings aimed at recovering misappropriated funds,” the SIU said.
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