Limpopo: The Special Investigating Unit (SIU) has successfully obtained a preservation order from the Special Tribunal to freeze the immovable property located at Portion 15 of the Farm Zandrivierspoort in Limpopo. This measure is part of a broader investigation into the alleged misappropriation of funds from the National Lotteries Commission (NLC), which were originally intended for the construction of old age homes, as stated by the SIU.
According to South African Government News Agency, the SIU’s investigation into projects funded by the NLC revealed a complex scheme involving the hijacking of legitimate non-profit organisations (NPOs), falsification of grant applications, and the redirection of funds to private entities and individuals. The investigation particularly focused on three NPOs: Matieni Community Centre, Lethabong Old Age Home, and War Against Rape and Abuse (WAR RNA), which collectively secured more than R66 million under false pretenses.
The SIU uncovered that Matieni Community Centre, a defunct NPO, was fraudulently reactivated to apply for NLC funding. The original members were not aware of the application process, and the individuals listed on the NLC application were not legitimate members. Similar fraudulent activities were discovered with Lethabong Old Age Home and WAR RNA, where false documents and unauthorized individuals were used to submit applications. Matieni received R23 million from the NLC, with significant portions misallocated to entities linked to Collin Tshisimba, a key figure in other NLC investigations.
Funds transferred from these NPOs included R5.975 million to the Mbidzo Development Programme, associated with Tshisimba, and R6.2 million to Wa Rothe Construction. Lethabong Old Age Home received R20 million, of which R15 million was funneled into Mbidzo’s account. WAR RNA received R20 million, with R5 million directed to Mbidzo. The funds were then used to purchase the Louis Trichardt Farm in Limpopo, registered under Promise Kharivhe, Tshisimba’s life partner.
The Special Tribunal’s order is part of the SIU’s efforts to implement investigation outcomes and enforce consequence management aimed at recovering financial losses incurred by state institutions due to corruption or negligence. This action is part of a wider investigation into corruption involving NLC grants intended for community development projects.
The SIU, authorized by the Special Investigating Units and Special Tribunals Act 74 of 1996, can initiate civil actions in the High Court or a Special Tribunal to address any wrongdoing uncovered during investigations related to corruption, fraud, or maladministration. The SIU is also responsible for referring any evidence of criminal activity to the National Prosecuting Authority (NPA) for further legal action.