Preservation order obtained for properties and luxury vehicles linked to NLC fraud

The Asset Forfeiture Unit (AFU) of the National Prosecuting Authority and the Special Investigating Unit (SIU) have obtained a preservation order to preserve properties and luxury vehicles linked to the siphoning off of millions of rands from the National Lotteries Commission (NLC).

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“The order (from the High Court in Pretoria) is to preserve four properties in Polokwane and Louis Trichardt and three luxury vehicles (Rolls-Royce Phantom, BMW G30 520d Series Sedan, and BMW 7 Series Sedan M760Li xDrive), with a combined value of R14 million,” said SIU spokesperson Kaizer Kganyago.

NLC investigations

Previously, the AFU and SIU obtained two preservation orders related to the NLC investigation, which includes 14 immovable properties with an approximate value of R67 million.

“The modus operandi used by the board members and senior employees was to use nonprofit organisations (NPOs) with ties to apply for NLC grant funding for certain projects.

“In some instances, existing NPOs were hijacked and the original members were replaced by different members linked to NLC board members or senior staff,” alleged Kganyago.

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“The project would be approved and very little of the funds would be spent on it. The offenders utilised the bulk of the funds to purchase fixed properties and expensive cars for their benefit. There would be no proper oversight as the management of the NLC was involved in the theft.”

In terms of the order, the following assets are preserved:

Office Park in Polokwane, Limpopo: This was purchased in November 2015 for R1 005 480. A total of R264 400 and R741 080 in stolen NLC funds were transferred to pay for it.

The stolen funds originated from grant funding of R80 million paid by the NLC to community development organisation Lulamisa for hosting the Commonwealth Games in Durban. The property was registered in the name of 2SP Investment Trust, a trust founded by Ntshengedzeni Alfred Nevhutanda, chair of the NLC board at the time.

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Portion of a farm in Brakspruit, Limpopo: This was purchased in September 2017 for R780 000. A total of R750 000 and R30 000 stolen NLC funds were transferred to pay for it. The stolen funds originated from grant funding of R9.5 million paid by the NLC to Limpopo Recreation Providers NPO for promoting cycling.

Erf 2580 Louis Trichardt Extension 11: This was purchased in September 2019 for R900 000. A total of R700 000 and R200 000 stolen NLC funds were used to pay for it. The stolen funds originated from grant funding of R10 million paid by the NLC to NPO Light Up Your World Foundation.

BMW G30 520d Series Sedan: The BMW was bought in July 2017 for R995 000. A total of R595 000 stolen NLC funds was transferred to BMW Finance to settle the balance. The stolen NLC funds originated from grant funding of R23 720 000 paid by the NLC to NPO Nunnovation.

Rolls-Royce Phantom: The Rolls-Royce was purchased in August 2016 by Nevhutanda for R6.3 million. The first payment of R1 million originated from an NLC grant payment of R55.4 million to Tshikovha Graduate Academy.

The second payment of R1 million originated from an NLC grant payment of R24.9 million to the SA Sport Confederation and Olympic Committee for promoting and developing high-performance sports.

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The third payment, R574 185.13, originated from an NLC grant payment of R25 million to Simba Community Development Foundation NPO for rebuilding a secondary school in Vuwani village.

The fourth and fifth R1 million payments originated from an NLC grant of R80 million to Lulamisa.

– news@citizen.co.za

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