The Special Investigating Unit (SIU) has confirmed that it has secured a preservation order from the Special Tribunal to freeze the immovable property of portion 15 of the Farm Zandrivierspoort in Limpopo.
The move is part of an investigation into the misappropriation of funds from the National Lotteries Commission (NLC), which were intended for the construction of old-age homes.
The SIU’s probe of NLC-funded projects uncovered a sophisticated scheme involving the hijacking of legitimate non-profit organisations (NPOs), falsified grant applications, and the diversion of funds to private entities and individuals.
The investigation focused on three NPOs — Matieni Community Centre, Lethabong Old-Age Home, and War Against Rape and Abuse (WAR RNA), which together received more than R66-million under false pretences.
Matieni unaware of application
The SIU’s investigation uncovered the fraudulent revival of Matieni Community Centre, a defunct NPO, in order to apply for NLC funding.
The original members of the Matieni Community Centre were unaware of the application, and the individuals listed on the NLC application were not legitimate members.
The Lethabong Old-Age Home and WAR RNA similarly had their identities misused, with falsified documents and unauthorised individuals submitting applications.
Of the R23 million that Matieni received from the NLC, R5.975 million went to the Mbidzo Development Programme, which was connected to Collin Tshisimba, a person implicated in other NLC investigations.
Lethabong received R20-million, while R15-million was transferred to Mbidzo’s bank account. The remaining R6.2-million was paid to Wa Rothe Construction.
WAR RNA received R20-million, with R5 million transferred to Mbidzo.
Under the control of Tshisimba, Mbidzo transferred money to lawyers to buy the Louis Trichardt farm in Limpopo, which is registered under Promise Kharivhe, Tshisimba’s life partner.
Authority to file civil lawsuit
The Special Tribunal’s order is a component of implementing the findings of SIU investigations and managing their consequences in order to recoup monetary losses incurred by state institutions due to negligence or corruption.
The order is a component of a larger probe into corruption involving NLC grants meant for community development initiatives.
The SIU has the authority to file a civil lawsuit in a high court or Special Tribunal to address any misconduct brought to light by fraud, corruption, or poor management during investigations.
In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU refers any evidence pointing to criminal conduct it uncovers to the National Prosecuting Authority for further action.
