SOWETO – For the families in Protea Glen, Soweto, the grand “sports complex” they were promised remains nothing more than a patch of undeveloped, open land. While the community waited for facilities that never came, R6 million in public funds was being siphoned into personal bank accounts and drained through ATM withdrawals.
The charade finally reached its end on 21 July 21, when Judge AH Petersen of the Special Tribunal delivered a scathing judgment, declaring the National Lotteries Commission‘s (NLC) R9 million grant to the Motheo Sports and Entertainment Foundation both unlawful and invalid.
In a move toward accountability, the tribunal has ordered the project’s “mastermind,” Petrus Sedibe, along with former NLC officials and several associated companies, to jointly and severally repay the R6 million that was disbursed before the fraud was uncovered.
‘Proactive funding’ flagrantly abused
The court heard that the scheme began in early 2021 through the NLC’s “proactive funding” model, a process that allows the commission to identify and support projects without waiting for an application.
The Special Investigating Unit (SIU) established that this process was flagrantly abused. Marubini Ramatsekisa, then the NLC’s grants funding projects manager, prepared a proposal for R9 million on 14 April 2021. This proposal was approved on the very same day by the acting chief operations officer, Nkhesho Njoni, despite a total lack of independent research, stakeholder consultation, or assessment of Motheo’s organisational capacity.
Investigation records revealed a prior attempt at legitimate funding had failed; Motheo had originally applied for over R61,6 million, but was offered a mere R70 000, which the foundation declined. Just five months later, the irregular R9 million proactive grant was fast-tracked.
The NLC entered into a grant agreement with Motheo on 31 May, with payments scheduled in three tranches. The first tranche of R3 million was paid on 9 June. Rather than being used for bricks and mortar, the SIU’s forensic analysis proved the money was immediately siphoned off.
According to the judgment, R950 000 was transferred to PSKO (Pty) Ltd, a company owned by Sedibe, while R500 000 went to Londilox NPC, and R400 000 was paid to Synercon (Pty) Ltd. Significant sums were also removed through teller and ATM cash withdrawals.
Fraudulent scheme continued
To secure the second tranche of R3 million, a falsified progress report was submitted in November 2021. The report, prepared by Ziphozinhle Khoza and approved by Marito Mabunda of SRSQS Quantity Surveyors, claimed construction was well underway. However, the SIU found the report contained “material inaccuracies” and falsified documentation.
The judgment placed Sanele Dlamini, a former NLC senior manager, at the centre of the second payment’s approval. Despite progress report photos showing open, undeveloped land that contradicted the narrative of “earthworks” and “fencing,” Dlamini authorised the second R3 million payment in February 2022.
Judge Petersen noted that Dlamini’s failure to visit the site or identify an obvious self-dealing arrangement, where invoices were payable to PSKO, an entity owned by the author of the payment request, constituted conduct that was, at minimum, reckless and dishonest. Consequently, the Tribunal upheld a preservation order on Dlamini’s pension fund, ensuring it remains frozen until the misused funds are recovered in full.
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The tribunal’s order is that the Motheo Foundation, Petrus Sedibe, Marubini Ramatsekisa, and others are liable for the full R6 million, PSKO is specifically liable for R950 000. Londilox NPC and its director must repay R500 000; while 2MC Consulting CC is ordered to return R382 205.
The third tranche was never paid, as the SIU intervened after a site visit in November 2022 confirmed that no construction had ever started.
