Pretoria - The net is closing on high profile individuals and companies who fleeced more than R1 billion from the National Lotteries Commission funds as more civil litigations and criminal prosecution looms.
This was revealed by the Special Investigating Unit’s (SIU’s) head advocate Andy Mothibi last week on progress on their investigations into fraud and corruption at commission.
Mothibi said more than 15 000 non-profit organisations and non-profit companies were under investigations for allegedly colluding with former executives of the commission to loot funds from the commission over the years.
But he confirmed, at the moment, his unit had put its primary focus on 100 of those companies and seizure and forfeiture of assets including arrests may take place in the next few days.
The latest investigations, according to Mothibi, were part of phase two of their investigations. The SIU had already completed phase one, which amounted to more than R279 million.
Phase one involved 12 grants valued at R279.7m, “corruptly syphoned out of the commission with assistance of former executive and board members”.
Earlier this year the SIU pounced on music producer and artist Arthur Mafokate who was linked to the National Lotteries Commission fraud in January. He is allegedly involved in the misappropriation of R56m in community development funds from the commission.
The National Prosecuting Authority’s Asset Forfeiture Unit (AFU) and the SIU obtained a preservation order from the high court in Pretoria to freeze three luxury properties, a plot and a portion of a farm linked to the alleged misappropriation of a lottery grant fund meant for community development projects. The SIU has also welcomed the move to freeze the possessions of the employees of the National Lotteries Commission.
The AFU received a preservation order from the Gauteng High Court, Pretoria on Friday to retain 12 properties.
Other high profile people linked to the lottery scandal were internationally renowned actors Terry Pheto and Presley Chweneyagae – known for their roles in the award-winning movie “Tsotsi”. Chweneyagae allegedly benefited from his close relationship with some members of the commission’s former executive and board through a R15m grant.
The SIU obtained a high court preservation order to freeze nine luxury properties in Gauteng, a BMW 420i and two Ocean Basket franchises on the East Rand linked to Pheto.
The move came after the SIU found evidence that officials working at the commission and members from some NPOs contravened the Lotteries Act.
The assets frozen by the AFU amount to R25m. At the time, SIU spokesperson, Kaizer Kganyago said the properties were bought with money meant to fund hospices.
Pretoria News