The Special Investigating Unit (SIU) has recovered R3.2 million in lottery funds after uncovering a coordinated scheme in which grants meant for community upliftment were diverted to buy property and enrich individuals.
The recovered funds come from two separate grants awarded by the National Lotteries Commission to organisations that shared common directors and beneficiaries, exposing a pattern of abuse that saw public money flow into private pockets instead of serving communities.
In the first case, Todi Media Development Foundation NPC received R1.5 million in 2018 for a media project that was supposed to cover journalists’ accommodation, car hire, catering, equipment rental, guest speakers, marketing and security.
Instead, the SIU investigation found the money was diverted to Unscripted Communication, which received R550 000, and Black Dungaree, which received R900 000. Black Dungaree, directed by Daniel Matome Malatjie, used the funds to purchase a property in Bassonia Rock Extension, Johannesburg.
SIU spokesperson Selby Makgotho, said Khutso Makwela, director of Todi Media Development Foundation NPC, admitted to the misuse, signed an acknowledgement of debt and repaid the full R1.5 million on 30 March.
Makgotho said that the second case involved Zibsiflo NPC, which received R1.71 million between 2019 and 2020 for women’s soccer clinics in the Free State. The grant was intended to cover transport, accommodation, facilitators and publicity.
The SIU investigation revealed that Black Dungaree received R1.36 million from this grant, whilst Charles Malatji received R200 000. About R900 000 was used to acquire property in Bassonia under the names of Matlala Martha Malatji and Ngwako Moses Malatji.
Makwela, who was also director of Zibsiflo NPC, again admitted to the misuse, signed an acknowledgement of debt and repaid the full R1.71 million. The project was never implemented.
The investigation was conducted under Proclamation R.32 of 2020, which mandated the SIU to investigate maladministration in the affairs of the National Lotteries Commission.
Whilst repayment and settlement agreements have been secured, the SIU will refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority for further action, in line with the Special Investigating Units and Special Tribunals Act 74 of 1996.
The SIU is also authorised to initiate civil proceedings in the High Court or a Special Tribunal to correct wrongdoing and recover financial losses suffered by the state, including funds paid for services not rendered.
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