The Special Investigating Unit (SIU) has secured a Special Tribunal judgment declaring unlawful a R9 million grant awarded by the National Lotteries Commission (NLC) to the Motheo Sports and Entertainment Foundation for a sports complex in Protea Glen, Soweto, that was never built.
The Tribunal ordered the foundation, former NLC officials and other individuals linked to the scheme to repay R6 million after investigations found that public funds were diverted through irregular payments, cash withdrawals and false progress reports. The SIU also confirmed that evidence of fraud, theft and corruption will be referred to the National Prosecuting Authority for possible criminal prosecution.
According to the SIU, the Motheo Foundation’s original application for more than R61.6 million was unsuccessful, with the NLC initially approving only R70,000. However, months later the organisation received a R9 million grant through the NLC’s proactive funding process. Investigators found that the first R6 million paid to the project was channelled to several companies and individuals instead of being used to build the sports complex.
The Tribunal also upheld an earlier preservation order preventing former NLC employee Sanele Dlamini from accessing his pension benefits until the misused funds have been recovered. The SIU said the ruling strengthens its efforts to recover money lost through corruption, hold those responsible accountable, and protect public resources intended to benefit communities.
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