By Lehlohonolo Lehana.
The Special Investigating Unit (SIU) has reported that it has completed 90% of phase two in the National Lotteries Commission (NLC) investigations.
The investigation in its totality is worth about R1.4 billion, which the government and the NLC have lost due to corruption.
The SIU broke down the financial significance of each phase as follows: Phase 1 is purportedly worth R279.7 million, Phase 2 has a value of R246.7 million, and Phase 3 is approximately R905.9 million.
SIU appeared before Parliament’s Portfolio Committee on Trade and Industry to give an update on the investigation.
Head of the Special Investigating Unit (SIU), Andy told Parliament that the more than three-year-long investigation had revealed a web of collusion between lottery officials, former board members, lawyers and non-profit organisations.
The SIU is now in the third phase of its investigation into corruption at the National Lotteries Commission.
Mothibi has described the NLC as a criminal enterprise and said it may be necessary to enter a fourth phase as the allegations continue to pour in.
“The organised crime nature of this requires a meticulous assessment and investigation.”
The SIU said that applications to fund creches had been used as a cover for getting funding that was then siphoned off to a variety of individuals and companies.
“All this monies that have been given to the NPOs and NPCs end up not being used for the purpose they were meant for and as a result, beneficiaries are suffering.”
The SIU has initiated 10 criminal referrals against NLC officials, non-profit organisations, and companies, which have been forwarded to the NPA.
Additionally, the Asset Forfeiture Unit (AFU) secured three preservations in the NLC cases.
This was to recover funds not used for their purported purposes but rather to buy properties for the benefit of employees and members of NPOs that had applied for grants.
These include actress Terry Pheto, whose house was auctioned, and musician Arthur Mafokate.
Another preservation order, obtained on 4 November 2023 against former NLC chairperson Professor Alfred Ntshengedzeni Nevhutanda, amounted to R23.2 million.
The SIU plans to submit an interim report to the president by the end of this month.
The SIU was, in terms of Proclamation R32 of 2020, authorised by President Cyril Ramaphosa to investigate allegations of corruption and maladministration in the affairs of NLC and the conduct of NLC officials and to recover any financial losses suffered by the State.
In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU will refer any evidence pointing to criminal conduct it uncovers during its investigations to the National Prosecuting Authority (NPA) for further action.