The Gauteng High Court has granted an order to freeze five properties linked to an ongoing investigation into fraud at the National Lotteries Commission.
The order grants the National Prosecuting Authority’s Asset Forfeiture Unit and the Special Investigating Unit permission to freeze three luxury properties, a plot, and a portion of a farm that are linked to siphoning off lotteries grant funding meant for community development projects.
“The SIU investigations in the affairs of the National Lotteries Commission have revealed that five non-profit organisations received grant funding of approximately R56.3 million for community development projects in South Africa.
“The NPOs are Taung Cultural Music and Arts Expo, the SA Art and Development Association, Dinosys, Matieni Community Centre, and Zibsicraft (Pty) Ltd,” explained SIU spokesperson Kaizer Kganyago.
He said the SA Art and Development Association, under the directorship of Arthur Mafokate, applied for grant funding to assist unemployed youth in poor and rural areas of the country to impart skills in music, business, video, film production, dance, and the business of radio in South Africa.
Kganyago said Dinosys applied to the NLC for grant funding to assist it with social hygiene projects in the Eastern Cape. Matieni applied for grant funding for home-based care in Mpumalanga province, while Zibsicraft applied for grant funding for the purposes of community development in the Northern Cape. Taung applied to the NLC for grant funding for the purpose of building a museum and library in Kuruman in the Northern Cape.
“The SIU investigations revealed that the acquisition of the preserved properties was funded by the NPOs with money they had received, under the auspices of grant funding, from the NLC. The properties therefore constitute the proceeds of unlawful activities, and hence the application for a preservation order pending the final determination of the application for final forfeiture,” Kganyago stated.
The SIU said that, in terms of the high court order granted in December last year, luxury properties in Midrand, Cape Town and Pretoria, as well as a portion of a farm in Rustenburg and a plot in Pretoria, had been prohibited and restrained from being sold, disposed of, leased, transferred, donated, or dealt with in any manner whatsoever with respect to the immovable properties.
"The SIU was, in terms of proclamation R32 of 2020, authorised by President Cyril Ramaphosa to investigate allegations of corruption and maladministration in the affairs of NLC and the conduct of NLC officials, and to recover any financial losses suffered by the state.
“The collaboration between the NPA’s AFU and SIU is part of the national anti-corruption strategy, which sees law enforcement agencies coming together to eradicate corruption in South Africa,” Kganyago said.
IOL