The Special Investigating Unit (SIU) has unveiled shocking findings from its ongoing investigation into the National Lotteries Commission (NLC), revealing widespread corruption and mismanagement totaling approximately R1.4 billion. In a detailed presentation before Parliament’s Portfolio Committee on Trade and Industry, the SIU outlined the staggering extent of corruption and maladministration within the NLC, exposing a web of deceit and exploitation.

The investigation, conducted in three phases, has reached its second stage, with 90% completion. The SIU highlighted the value of each phase, indicating substantial financial losses incurred due to corruption:

– Phase 1: R279 710 409

– Phase 2: R246 659 310

– Phase 3: R905 901.910.04

Among the alarming revelations, the SIU exposed instances of prominent individuals, including award-winning actress Moitheri Pheto, unduly benefiting from NLC grant funding. In one case, the NLC approved a grant of R5 million to Zibisibix Non-Profit Company for a chicken farm, only for the funds to be siphoned off for personal gain, including payments to individuals and entities associated with Pheto.

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Furthermore, the investigation uncovered dubious transactions involving other public figures, such as award-winning actor Presley Chweneyagae, whose foundation received a grant of R15 million for a cultural arts program. Substantial portions of the grant were redirected to companies owned by former NLC officials and their associates, raising serious concerns about conflicts of interest and misuse of public funds.

Additionally, the SIU revealed instances where Non-Profit Organizations (NPOs) intended to uplift impoverished communities were hijacked, leading to the misappropriation of funds meant for development projects. The investigation identified the involvement of former NLC board members and their associates in orchestrating fraudulent schemes to exploit grant funding opportunities.

In response to its findings, the SIU has initiated criminal and disciplinary proceedings against implicated individuals, making eight criminal referrals to the National Prosecuting Authority and 11 disciplinary referrals to NLC officials. Moreover, the SIU is empowered to pursue civil action to recover financial losses incurred by the state as a result of corruption, fraud, or maladministration within the NLC.

The revelations from the SIU’s investigation underscore the urgent need for accountability and transparency within public institutions, particularly those entrusted with the distribution of public funds. As the investigation continues, the SIU remains committed to rooting out corruption and ensuring that those responsible are held accountable for their actions.

-SIU

-The VIP Team