SIU freezes luxury property linked to misuse of lottery fund
The Special Investigating Unit has obtained a preservation order from the National Lotteries Commission to freeze luxury property linked to funds misuse.
The order, by the Special Tribunal, interdicts businessman Solly Mathibe from selling or transferring the multi-million rand property in Midstream Estate in Gauteng.
In 2017, the NLC approved funding of R23 million to the SA Youth Movement NPC to build old-age homes in rural provinces.
However, the money was allegedly diverted to purchase the property.
According to the SIU, the SA Youth Movement paid R1.6 million to Smart Safety PPE, contributing R1.6 million to the property purchase.
Another NPC, Malusi We Sizwe, received R13 million for an agricultural project in KwaZulu-Natal but transferred R896,980 to Trizaflo (Pty) Ltd, which then paid R2.1 million towards the property.
The property was registered under Smart Safety PPE, with Mzwakhe Sigudhla as the director.
Sigudhla, cited in the Tribunal order, serves as the chairperson of the SA Youth Movement.
He allegedly signed the grant agreement in 2017 and diversion for an additional R7.5 million in 2019, despite a lack of proof of project delivery.
"In October 2018, he signed as a director of Smart Safety PPE in bank agreements and later remained an ‘interested party’ on the company's bank account after being replaced by another director," the SIU said on Wednesday.
"Additionally, he authorised payments amounting to R1.6 million from SA Youth Movement NPC to Smart Safety PPE, which were used to purchase the Midstream property, for which he signed the offer to purchase in 2019, on behalf of Smart Safety PPE."
This is the latest property the SIU has frozen in its broader investigation into corruption involving NLC grants intended for community development projects.
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