AFU obtains preservation order to seize assets linked to lotteries grant funding

The Asset Forfeiture Unit (AFU) and Special Investigating Unit (SIU) have obtained a preservation order to protect four high-value properties and a vehicle amounting to R6.5 million linked to the siphoning of millions of rands from the National Lotteries Commission (NLC). 

It is alleged that grant funds allocated from the NLC to non-profit organisations including the South African Sport Association for the Intellectually Impaired (SASA-II) were used for personal gain between 2015 and 2017.

National Prosecuting Authority (NPA) regional spokesperson Lumka Mahanjana said the order, dated 24 July 2024, safeguards various assets acquired through the misappropriation of funds from the NLC to ensure that they are kept in reasonable condition until a forfeiture order has been granted

“The preservation order ensures that the identified assets remain secured and cannot be sold or otherwise disposed of while investigations continue.  The SIU and AFU are working closely to expedite the legal process to recover the misappropriated funds and bring those involved in these fraudulent activities to justice.”

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Secured assets

The preservation orders secure properties located in Lakefield, Ekurhuleni, the Sable Hills Waterfront Estate in  Pretoria, Ironsyde Agricultural Holdings in Gauteng and Louis Trichardt in Makhado Local Municipality.

The vehicle includes a  2016 Toyota Hilux Double Cab 2.4GD-6. The vehicle was registered under Preldon Construction.

Corruption linked to event for intellectually impaired athletes

In 2015, SASA-II received a R30 million grant from the National Lotteries Commission to host a sports event in Bloemfontein for intellectually impaired athletes. The funds were released in two tranches of R15 million each, with the final payment made on January 28, 2016.

Mahanjana said shortly after, SASA-II transferred over R3.9 million to Ironbridge Travel Agency and Events, a company directed by Karabo Charles Sithole, the cousin of NLC’s former COO, Philemon Letwaba.

“On February 5, 2016, Ironbridge transferred R2 million to Ndzhuku Trading, which then used R350,000 to purchase a property for R750,000, registered under the Malwandla Siweya Family Trust.”

Mahanjana said the preservation is part of implementing the anti-corruption strategy, which sees law enforcement agencies coming together to eradicate corruption in South Africa.

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