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Johannesburg - Former National Youth Development Agency head Andile Lungisa appeared in the Johannesburg Specialised Commercial Crime Court on Friday for alleged fraud and money-laundering.
He appeared with Thabo Shogolo, Xolisile Guquza, and Ursula Sali for allegedly accepting and sharing among themselves R2.5 million paid by the arts and culture department for the Nelson Mandela Sports Day concert.
They allegedly promised that US singer R Kelly would perform at the concert, but he did not.
Lungisa and the other three were arrested after handing themselves over to the Hawks on Friday.
In their court appearance later in the day, Lungisa and Shogolo were granted bail of R10 000 each, Guquza was granted bail of R5000, and Sali was released on a warning.
They were instructed to surrender their passports to the investigating officer, and not to make contact with the State witnesses.
The case was postponed until October 30.
At the time of the concert, the department said it had entered into negotiations with the promoter of Kelly's recent tour to South Africa.
It was subsequently announced that the star was on the bill for a music concert that would follow the Nelson Mandela Day's sporting events.
However, it was discovered that R Kelly's management had been unaware of the agreement, and that he had left the country as planned.