GAMING FOR AFRICA Gaming For Africa
Casino International’s Africa partner is the excellent Gaming For Africa magazine, bringing you the continent’s latest developments.
Massive Web of Corruption Uncovered Involving Ex-Lottery Boss & NLC Board Members
A shocking web of corruption, fraud, and money laundering has been unveiled in a recent investigation conducted by the Special Investigating Unit (SIU), which implicates former lottery board members, a senior National Lotteries Commission (NLC) offi cial, and their associates. The SIU’s fi ndings were presented to Parliament this week, and they paint a grim picture of misuse of funds that were meant for various charity projects. The SIU has already identifi ed R300 million in
misappropriated Lottery funds, and with just 12 of the 50 investigations nearing completion, there is an expectation that the fi nal fi gure will be considerably higher. The SIU plans to complete the fi rst phase of its investigation by the end of March, with a comprehensive report to be submitted to President Cyril Ramaphosa in April. Additionally, the evidence collected will be handed over to the National Prosecuting Authority for potential prosecution. The SIU’s fi ndings have been consistent with
previous reports by independent media outlet GroundUp, which has been investigating NLC corruption for several years. A Rolls-Royce Phantom, BMW G30 520d
Series Sedan, and BMW 7 Series Sedan M760Li xDrive – all worth R14m are just some of the luxury vehicles attached to a preservation order granted by the Pretoria high court. The vehicles belong to former National Lotteries Commission (NLC) board members, and senior employees accused of hijacking non-profi t organisations to apply for grants. The SIU is probing allegations of corruption and maladministration linked to former NLC chair Alfred Ntshengedzeni Nevhutanda and his colleagues. The unit, which obtained a preservation order alongside the National Prosecuting Authority’s Asset Forfeiture Unit to freeze assets worth millions, said there was no proper oversight of the projects as the management was allegedly involved in the theft. The order preserved the three high-end vehicles including four properties in Polokwane and Louis Trichardt in Limpopo. SIU Spokesperson Kaizer Kganyago said in some instances, existing NPOs were hijacked,
24 NOVEMBER 2023 Alfred Ntshengedzeni Nevhutanda
operation where funds allocated for projects were funneled through layers of trusts and companies to conceal their origins. Notably, several projects that received
substantial NLC grants, including an old age home in rural Limpopo, remained unfi nished despite the signifi cant funds allocated between 2017 and 2018. Instead of serving their intended purposes, the funds were misappropriated for personal gain. The SIU’s investigation also shed light on
several key fi ndings: • The methods used to syphon funds from the NLC through non-profi t organizations and companies.
and the original members were replaced by different members linked to NLC board members or senior staff. “The properties are preserved pending an
application for a forfeiture order and registered owners are interdicted from dealing in any manner with the frozen properties. “Previously, the AFU and SIU obtained two preservation orders related to the NLC investigation, which includes 14 immovable properties with an approximate value of R67m,” Kganyago
said.In its investigation, the SIU found alleged fraud and corruption at the NLC to the value of approximately R344m. The SIU initiated its investigation in November
2020 following a proclamation signed by President Cyril Ramaphosa, authorizing the probe into alleged corruption within the NLC. During the virtual presentation to Parliament’s Trade and Industry Portfolio Committee, the SIU disclosed its discoveries, which included the siphoning of over R300 million in grants allocated for projects. This money was instead diverted to fund luxury vehicles, high-end homes, and other unrelated expenses. While the SIU’s report did not name specifi c
individuals or entities involved in the corruption, it is now known that NLC chief operating offi cer Phillemon Letwaba, former board chairperson Alfred Nevhutanda, and William Huma, a former board member, were among those implicated. The SIU’s investigation revealed a complex
• Collusion between NLC offi cials and non-profi t companies.
• Collusion between certain board members and non-profi t companies.
• Abuses of non-profi t companies, including the hijacking of dormant organizations.
• Inadequate auditing of projects. • Maladministration in the approval of grants. • The misuse of the NLC’s proactive funding process, which may need revision. Regarding professionals, including lawyers, who used trust accounts to facilitate the misappropriation of Lottery funds, the SIU intends to provide the evidence to professional bodies for potential disciplinary action or prosecution. In response to the revelations, the NLC
expressed confi dence in its internal processes to ensure fair and equitable funding. The commission acknowledged certain inconsistencies in the SIU’s presentation and stressed the need to complete the investigations and await the fi nal report before drawing conclusions. The Democratic Alliance (DA) has called on the
Hawks and the National Prosecuting Authority to act swiftly in prosecuting those responsible for this massive theft of funds meant to benefi t the most vulnerable members of society. With the investigation ongoing, the extent of the misappropriation is expected to far exceed the initial estimate of R300 million.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76
