The Special Investigating Unit (SIU) is seeking to amend the proclamation issued four years ago to probe the affairs of the National Lotteries Commission (NLC) after it obtained fresh allegations.
On Thursday, the unit’s head, Andy Mothibi, said they recently concluded drafting of the motivation of a proclamation. “When we started with the investigation we received further allegations relating to procurement within the organization. That part was not covered by the initial proclamation,” Mothibi said.
He made the statement when he briefed the trade, industry and competition portfolio committee on the referrals the SIU made to the National Prosecuting Authority and Directorate of Priority Crime Investigation (DPCI).
President Cyril Ramaphosa authorised the SIU in 2020 to investigate maladministration in the investment of funds of the National Lotteries Distribution Trust Fund and allocation of money to beneficiaries who were not entitled between January 2014 and November 2020.
Mothibi said when they found further allegations, they were enjoined by law to apply for an amendment of the proclamation so that the allegations were included in the scope of investigation.
The motivation for the amendment to the proclamation will be submitted to the Department of Justice and Constitutional Development in due course.
This takes place as the SIU is gearing for legal battle with former NLC board chairperson Alfred Nevhutanda, who is challenging the issuance of the initial proclamation after the SIU preserved his assets to the value of R31 million.
SIU chief legal counsel Ntuthuzelo Vanara said Nevhutanda brought the application to review and set aside the proclamation on the basis that the NLC was not a state institution.
Vanara also said Nevhutanda wants the court to declare that the evidence collated during the investigation not be utilized by the SIU for criminal prosecution.
“The matter is being opposed by both the Presidency and ourselves on the basis that the NLC is a state institution and the investigation was lawfully authorised.
“This matter will be properly ventilated in court,” Vanara said.
Mothibi told the MPs that their investigation into the NLC was conducted in three phases with the last phase set to be concluded next month.
“The value of the contracts under investigation with potential civil litigation is about R2 billion.
“Some of these are in a legal process of being assessed and will ultimately end at the Special Tribunal to ensure there is recovery.”
The corruption-busting body said it found that accounting firms and auditors assisted certain NPOs to submit fraudulent financial statements to the NLC for purposes of grant funding.
The SIU said it has worked with the NPA’s Asset Forfeiture Unit in preserving some of the properties and assets belonging to “hijackers” of NPOs and those involved.
It secured preservation orders to the tune of more than R107.1m involving 33 properties, including pension monies of former COO Philemon Ledwaba.
There were 18 referrals made to the NPA against “hijacking kingpins” and other people involved, and 13 referrals to NLC for disciplinary proceedings.
Two referrals were made to the Law Practice Council while seven directors and 13 companies were referred to the Companies and Intellectual Property Commission to be declared delinquent.
“The directors, together with the companies, were utilised to launder money that was funded to non-profit companies and NPOs by the NLC.”
Cape Times