Luck runs out for Lotteries Commission R19m beneficiaries

Thursday, February 17, 2022
SIU spokesperson Kaizer Kganyago.

The Special Tribunal has ordered beneficiaries of a R19 million National Lotteries Commission (NLC) grant to hand over assets to a curator, pending a decision on an asset forfeiture application instituted against them by the Special Investigating Unit.

The beneficiaries – through a non-profit organisation – allegedly pocketed at least R15 million of the NLC funding, which the organisation had said was earmarked for the construction of athletics tracks in two provinces.

SIU spokesperson, Kaizer Kganyago, said the order was granted following an investigation into the affairs of the NLC.

“[The investigation] revealed that Inqaba Yokulinda, a non-profit organisation (NPO), received funding from the NLC in two tranches in the amount of R19 278 000 between February 2018 and September 2019 for the construction of athletic tracks in the North West and Mpumalanga provinces.

“The investigation into the NLC funding revealed that the granting of this fund was conducted in a manner contrary to the Lotteries Act, the Grant Funding Policies and as well as the relevant regulations,” Kganyago said.

Assets to be handed over to the curator are two Mercedes Benz AMG vehicles, an Audi A3, a Honda Jazz and residential home in Zwartkop.

According to Kganyago, the investigation further uncovered evidence of complicity on the part of officials at the NLC.

“Furthermore, the SIU investigation in the funding revealed, prima facie, that there is evidence of collusion between employees of the NLC and Members of Inqaba Yokulinda, including unconnected third parties who partook in the scheme to obtain R19.2 million in funding from the NLC for their own personal use. Only R4.2 million of the R19.2 million was used for its intended purpose,” he said.

Kganyago said the corruption-busting unit is also seeking to have the awarding of the grant funding set aside and reviewed and “to recover financial losses suffered by NLC and the State through civil litigation”. – SAnews.gov.za