<\/p>\n
The Special Tribunal has ordered that the South African Sports Confederation and Olympics Committee (Sascoc), those behind the \u201chijacked NPO\u201d Mshandukani Foundation, and other entities linked to former National Lotteries Commission (NLC) officials repay almost R25 million that was \u201csiphoned\u201d from the NLC.<\/p>\n
The funding was meant for a 2016 Rio Olympics \u201croadshow\u201d send-off.<\/p>\n
Instead, it ended up in the bank accounts of entities linked to NLC officials, including former chief operating officer Phillemon Letwaba.<\/p>\n
Read:<\/p>\n
Former NLC executive loses bid for access to his R1.7m pension
\nLate Tsotsi star\u2019s house, bought with lottery funds, frozen by Special Tribunal<\/p>\n
Last year, the Special Investigating Unit (SIU) obtained a preservation order to freeze the assets of those involved in the scam.<\/p>\n
Last week, the Special Tribunal ruled that Sascoc, those involved in the Mshandukani Foundation, and others must repay the money.<\/p>\n
Tribunal Judge Brian Mashile also declared the award of the funding to be unlawful and set aside the decision.<\/p>\n
Read:<\/p>\n
Lottery corruption: SIU investigation hamstrung by red tape
\nSpecial Tribunal freezes luxury home of lottery \u2018kingpin\u2019
\nAuditor-General issues damning report on Lottery finances<\/p>\n
The matter has its roots in an SIU investigation which exposed a \u201cscheme\u201d in which non-profit organisations were used to steal money from the NLC. They did this by either hijacking the organisation or using fake documents and the identities of innocent people.<\/p>\n
Read the ruling here.<\/p>\n
The application for the funding was made by Sascoc on behalf of the foundation, which had only been registered for four months and had no track record.<\/p>\n
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The grant of R24.98 million was approved by the NLC within six days.<\/p>\n
In July 2026, Sascoc transferred all but R150 000 to the Mshandukani Foundation.<\/p>\n
Within days, most of that money had been diverted to entities linked to NLC officials, including more than R15 million to Ironbridge Travel Agency and R3 million to Mosokodi Business Trust, both with links to Letwaba.<\/p>\n
Letwaba also got R450 000 directly and Tsietsi Maselwa, who was manager of legal services, received R600 000.<\/p>\n
Judge Mashile said the Mshandukani respondents claimed ignorance of the Sascoc application or any scheme to siphon lottery funds.<\/p>\n
But, he said, this was \u201chard to swallow\u201d, given the uncontested evidence of two unwitting \u201cdirectors\u201d of the foundation that their identities had been \u201cstolen\u201d and used by the foundation to procure registration.<\/p>\n
Vinesh Maharaj, at that time Sascoc chief financial officer, told the tribunal that the chair of the NLC (then Alfred Nevhutanda) and the late chief executive officer of Sascoc, Tubby Reddy, were \u201ccentral to laying the groundwork for the process that culminated in the funding\u201d.<\/p>\n
Read:<\/p>\n
Pityana resigns as board chair of National Lotteries Commission
\nEx lottery board member to pay back R21m in stolen grant funds<\/p>\n
The judge said his evidence and that of other witnesses \u201cpoints compellingly to the chairperson of the [NLC] as being the instigator of the process\u201d and that he had identified an \u201celigible entity\u201d to receive the funding.<\/p>\n
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He said all the respondents (barring the two whose identities were stolen), must pay back the money.<\/p>\n
Imbizo Events and Minenhle Dlamini had already entered into settlement agreements with the SIU and had honoured their undertakings.<\/p>\n
\u201cThe grant was not used for the purpose for which it was awarded. Each of the respondents were complicit in the scheme,\u201d the judge said.<\/p>\n
He added that Sascoc had claimed it had been placed in an \u201cunenviable position\u201d in that it could not reject Nevhutanda\u2019s proposal that he would identify and handpick an NPO to facilitate the process because it relied on the NLC for funding.<\/p>\n
Read:<\/p>\n
ProEthics told to pay back lottery money
\nFormer lottery chair challenges Ramaphosa\u2019s investigation
\nHawks, SAPS snub parliament hearing on lottery corruption<\/p>\n
However, Sascoc conceded that it had kept R150 000 which had not been used for its intended purpose.<\/p>\n
\u201cAll things considered, there is evidence that Maharaj was aware that the process was potentially tainted by illegality \u2026 and he disregarded his fiduciary duties and he cannot evade accountability,\u201d Mashile said.<\/p>\n
He ruled that Maharaj and Sascoc be jointly and severally liable to repay R150 000 to the NLC and ordered the other respondents to jointly repay R24.83 million.<\/p>\n
\u00a9 2026 GroundUp. This article was first published here.<\/p>\n
#lottery #Olympic #scammers #pay #money<\/p>\n","protected":false},"excerpt":{"rendered":"
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