Amid an investigation into the embezzlement of National Lotteries Commission (NLC) funds, the Special Investigating Unit (SIU) has clamped down on an R3.7-million luxury property in Midstream Estate, Gauteng, after obtaining a Special Tribunal preservation order to freeze it.
Amidst civil proceedings, Israel Mathibe, Smart Safety PPE, and other parties are prohibited from selling, leasing, or altering the property.
The 2020 proclamation by President Cyril Ramaphosa prompted the SIU’s investigation, which revealed how money intended for community projects like agricultural development and elderly homes was diverted into an opulent residence.
“We’re determined to recover every rand stolen from vulnerable communities,” said SIU spokesperson Kaizer Kganyago.
Web of corruption
The probe revealed a web of non-profit companies (NPCs) and private entities diverting NLC grants.
Alfred Mzwakhe Sigudhla, the chair of the SA Youth Movement NPC, received R23-million for elderly homes in rural provinces but gave R1.6-million to Smart Safety PPE, which was used to purchase the Midstream property.
For a KwaZulu-Natal agricultural project, Malusi We Sizwe NPC received R13-million, giving R896 980 to Trizaflo (Pty) Ltd, which made an R2.1-million contribution to the acquisition.
Even though there was no evidence of project completion, Sigudhla, a key player, signed the 2017 SA Youth Movement grant agreement, the 2019 R7.5-million diversion, and the 2019 property purchase for Smart Safety PPE.
The SIU found Sigudhla authorised R1.6-million in payments from SA Youth Movement to Smart Safety PPE, where he was a director and later an “interested party” in the company’s bank account.
Property in custody of a curator
Under the preservation order, which is supported by the asset forfeiture unit of the National Prosecuting Authority (NPA), the property is kept in the custody of a curator until it is forfeited within 90 days.
If successful, it might be put up for auction to help the NLC recoup its losses. Additionally, the SIU has forwarded criminal activity evidence to the NPA for prosecution.
This freeze adds to the SIU’s haul, including R53-million in assets in 2023 and a R27-million Pretoria mansion in 2022.
“Corruption has robbed our communities of hope,” Kganyago said.
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