SIU granted order to freeze over R2M from lottery official and wife

The Special Investigating Unit (SIU) has been granted a preservation order to freeze approximately R2.4 million held in four bank accounts linked to National Lotteries Commission’s (NLC) official Sibonelo Vilakazi and his wife Nosipho Zanele in KwaZulu- Natal (KZN).

The order was granted by the Special Tribunal on Thursday, pending the final determination of a civil action to be brought by the SIU within 60 days.

According to the SIU, the money was paid into the accounts by non-profit organisations that received funding from the NLC to improve the conditions of ordinary South Africans but made its way into bank accounts for “self-enrichment.”

Court battles

NIU spokesperson Kaizer Kganyago said the order prohibits suspended Vilakazi, Zuma and 05 ZZET Enterprises (PTY) LTD, which is solely owned by Zuma, from dealing with funds held in the frozen bank accounts.

“In August 2023, the tribunal granted a similar order pending the intervention application by the SIU in a matter brought by Zuma against First National Bank (FNB) before the High Court of South Africa: Kwa-Zulu Natal Local Division in Durban.

FNB at the behest of the NLC froze the bank accounts of 05 ZZET, but Zuma took bank and the NLC to court to unfreeze her accounts.

Kganyago said the bank had frozen Zuma’s bank accounts through its own processes.

“The High Court granted the order in favour of Zuma. As a result, the SIU approached the Special Tribunal to vary the order so that it was not dependent on any other court process.”

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Investigations

An investigation by the SIU into the affairs of the NLC revealed Vilakazi allegedly approached daycare centres and football clubs in KZN to apply for grant funding.

After receiving funding, football clubs and care centres would allegedly transfer large sums of money into 05 ZZET bank account and those linked to Zuma and Vilakazi.

A report by the Financial Intelligence Centre alleged 05 ZZET received multiple electronic fund transfer payments from several care centres and football clubs of approximately R 32 259 707.  

Kganyago said their investigations have revealed more than 400 care centres and football clubs made payments to accounts linked to Vilakazi and Zuma from money received from the NLC between 2019 and 2023.

“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,” he said.

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