Second settlement secured as SIU closes in on R24 million NLC grant to Sascoc

The Special Investigating Unit (SIU) has recovered a second amount in one of its National Lotteries Commission investigations (NLC), but it represents only a fraction of what the entity is looking to recoup.

The SIU recently recovered R50 000 from a popular media personality and was this week granted an order for a similar amount from an events company in Gqeberha.

Irregular payments amounting to millions are in the SIU’s crosshairs, all related to an intended promotional campaign for the 2016 Rio Olympics paid for by the NLC.

Over R24 million still sought

Imbizo Events will be made to pay back R70 000, just over a month after a settlement was secured against Minnie Dlamini.

The events company will be allowed to repay the amount in two equal instalments, with the SIU confirming Dlamini had honoured her settlement.

The company at the centre of the investigation is the Mshandukani Foundation NPO which received a R24.9 million NLC grant from the South Africa Sports Confederation and Olympic Committee (Sascoc).

Other amounts being investigated include R15 million paid to Ironbridge Travel Agency, R3 million to Mosokodi Business Trust and direct payments to former NLC officials and associates.

Mshandukani Foundation NPO, which the SIU states was controlled by Mashudu Shandukani, was registered six months before receiving the grant.

“The grant was approved within six days of application by Sascoc on behalf of the foundation.

“Funds intended for Olympic awareness events were instead diverted to entities and individuals linked to former NLC officials and associates,” stated SIU spokesperson Kaizer Kganyago.

Application pending

The NLC, Sascoc, Shandukani and Dhlamini are among 17 respondents in the matter between them and the SIU.

A preservation order for the R24.9 million was secured last April, with the SIU having since frozen two luxury properties and a truck purchased with allegedly misappropriated funds.

In December, the SIU filed a review application that seeks to declare the NLC grant to Sascoc invalid, with the SIU still awaiting judgement.

“The application seeks an order directing all respondents in the matter to repay the full amount of R24.98 million unduly paid to them,” Kganyago concluded.

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