The Special Investigating Unit (SIU) has secured a judgment declaring unlawful and invalid a R9 million National Lotteries Commission (NLC) grant to non-profit organisation (NPO) Motheo Sports and Entertainment Foundation for a sports complex that was never constructed.
The order was handed down by the Special Tribunal, a specialised judicial forum, established to recover public funds lost to fraud, corruption and illicit money flows.
The judgment found that the NPO, together with former NLC officials and other individuals, diverted funds meant for a sports complex in Protea Glen in Soweto, for personal enrichment.
“The Tribunal set aside the grant agreement and ordered Jeremane Petrus Sedibe, whom the SIU identified as the mastermind behind the scheme, together with Motheo, former NLC officials, associated individuals and entities involved in the unlawful conduct, to jointly and severally repay R6 million.
“The first two tranches [total R6 million] were released [by the NLC], but the third tranche was withheld because the SIU investigation revealed that the funds had been diverted and the sports complex was never constructed. The falsified progress report and irregular approvals meant the NLC could not justify releasing the final tranche,” the SIU said in a statement.
Additionally, the Tribunal also upheld a previous decision to preserve the pension fund of former NLC employee Sanele Dlamini until the SIU recovers the misused funds in full.
Dlamini approved the second funding tranche for the NPO.
Web of collusion
The order follows an SIU investigation which revealed that Motheo’s original application for more than R61.6 million was unsuccessful after the NLC approved only R70 000, which the organisation declined.
However, some five months later, former NLC Grant Funding Projects Manager Marubini Ramatsekisa recommended that the NPO receive R9 million through the NLC proactive funding process.
“The recommendation was approved by former Acting Chief Operations Officer Nkhesho Njoni.
“On 24 May 2021, Tebogo Joseph Mohlala, the Director of Motheo, and Nonhlanhla Matshazi, co-director of Londilox NPC, signed a grant agreement with the NLC,” the statement read.
The funds were paid to be paid in three tranches and after the first R3 million payment:
- R950 000 was transferred to PSKO (Pty) Ltd, a company owned by Sedibe;
- R500 000 was transferred to Londilox NPC, co-directed by Matshazi;
- R400 000 was paid to Synercon (Pty) Ltd;
- Between June and August 2021, there were teller cash withdrawals totalling R750 000, ATM withdrawals totalling R282 850 and purchases, bank charges and other transfers totalling R117 150.
“The investigation further established that a progress report prepared by Ziphozinhle Khoza of SRSQS Quantity Surveyors and approved by her boss, Marito Mabunda, falsely portrayed construction progress and expenditure, covering 9 June 2021 to 30 November 2021. Based on the evidence, the SIU found a prima facie case of fraud, theft and corruption against Sedibe, Motheo, Matshazi, Khoza and others involved in the scheme.
“The Judge has since ordered Motheo, Ramatsekisa, Njoni, Mohlala, Sedibe, Moadi, Dlamini, Matshazi, PSKO and 2MC to jointly and severally repay the sum of R6 million,” the statement explained. – SAnews.gov.za
