Johannesburg: The Special Investigating Unit (SIU) has successfully obtained a court ruling that declares a R9 million grant from the National Lotteries Commission (NLC) to the Motheo Sports and Entertainment Foundation as unlawful and invalid. The grant was originally intended for the construction of a sports complex in Protea Glen, Soweto, which was never built.
According to South African Government News Agency, the Special Tribunal, which is tasked with recovering public funds lost to fraud and corruption, issued an order to invalidate the grant agreement. The SIU identified Jeremane Petrus Sedibe as the key orchestrator behind the scheme and ordered him, along with Motheo, former NLC officials, and related parties, to jointly and severally reimburse R6 million. The SIU's investigation found that funds meant for the sports complex were misappropriated for personal gain.
The NLC had released two tranches amounting to R6 million before the SIU's investigation exposed the diversion of funds and halted the release of the final tranche. The SIU's findings included falsified progress reports and irregular approvals, which prevented the justification of the additional payment.
The Tribunal also upheld a previous decision to freeze the pension fund of former NLC employee Sanele Dlamini until the full recovery of the misused funds. Dlamini was responsible for sanctioning the second funding tranche to the NPO.
The SIU's probe uncovered a complex web of collusion. Initially, Motheo's funding request for over R61.6 million was rejected, with only R70,000 approved, which the organization declined. However, months later, former NLC Grant Funding Projects Manager Marubini Ramatsekisa recommended a R9 million grant via the NLC's proactive funding process, which was subsequently approved by former Acting Chief Operations Officer Nkhesho Njoni.
On May 24, 2021, a grant agreement was signed by Tebogo Joseph Mohlala, Director of Motheo, and Nonhlanhla Matshazi, co-director of Londilox NPC. The funds were disbursed in three tranches. Following the first R3 million payment, significant amounts were transferred to various entities, including R950,000 to Sedibe's company PSKO (Pty) Ltd, R500,000 to Londilox NPC, and R400,000 to Synercon (Pty) Ltd. There were also numerous cash withdrawals and other transactions totaling substantial amounts.
The investigation revealed that a progress report prepared by Ziphozinhle Khoza of SRSQS Quantity Surveyors, and approved by her superior Marito Mabunda, falsely indicated construction progress and spending. Based on the evidence, the SIU found a prima facie case of fraud, theft, and corruption against Sedibe, Motheo, Matshazi, Khoza, and other involved parties.
The Special Tribunal has mandated that Motheo, Ramatsekisa, Njoni, Mohlala, Sedibe, Moadi, Dlamini, Matshazi, PSKO, and 2MC collectively repay the R6 million.