GAUTENG – Two brothers who fraudulently obtained R14 million from the National Lotteries Commission by claiming to build a cultural village that already existed have been ordered to repay the funds.
The Special Tribunal has declared the funding awarded to the Madumelani Community Project unlawful and invalid. Judge Margaret Victor, president of the Special Tribunal, found the scheme concocted by Tshimangadzo and Ndoweni Mukutu “clearly fraudulent”.
The brothers claimed they would build a cultural village in Hammanskraal, but the facility had already been established in 2015 with R300 000 in legitimate National Lotteries Commission funding by the Maubane Cultural Village and Community Arts Centre.
The Special Investigating Unit investigation found the original members of the Madumelani Community Project did not apply for funding and were unaware of the grant application. Tshimangadzo Mukutu fraudulently submitted the application, falsely claiming to be a director of the organisation.
Evidence revealed the brothers had approached the project’s members and obtained a copy of its constitution under the pretence of assisting with funding applications, then used it without authorisation. Several individuals listed as members confirmed they had no knowledge of the submission and their signatures had been forged.
The false takeover included appointing fictitious office bearers and opening a bank account through which the funds were disbursed in February 2018.
Between March and July 2018, the funds were channelled to various entities and relatives. Nine transactions totalling R3 070 000 went to RUM Management Consultancy, owned by Ndoweni Mukutu. Ndhava Management Consulting, owned by Tshisimba Collin Mukondoleli, received R4 999 000. Thwala Front, owned by Mukondoleli’s wife Kharivhe Fulufhelo Promise, was paid R1 400 000.
In April 2018, five payments totalling R4 650 000 were made, with R3 519 000 going to Mudonde Events and Investment owned by Ndoweni Mukutu. These included a payment of R3 million to a trust associated with advocate William Huma, a former National Lotteries Commission board member.
Last year, the Special Tribunal ordered Huma to reimburse R21 million in misused grant funds, and the Special Investigating Unit obtained a preservation order for R10 million from the sale of his luxury residence.
Dzata Accountants, identified by the Special Investigating Unit as one of five firms that assisted in the looting of National Lotteries Commission funds, allegedly prepared false financial statements for the grant application.
“In this case, the facts are such that the conduct of the antagonists is unconscionable, which justifies the piercing of the corporate veil. Money earmarked for a cultural village, a pride and joy of any community, has been lost to a fraudulent scheme,” Victor said.
The Special Investigating Unit said it refers any evidence of possible criminal conduct to the National Prosecuting Authority for further action.
