South Africa’s Special Investigating Unit (SIU) has frozen the assets of a large farm in the north of the country as part of an investigation into the alleged misuse of National Lottery funds.
A court order allowed the SIU to seize Portion 15 of the Farm Zandrivierspoort in Limpopo Province, South Africa’s most northernmost province on the border of Zimbabwe. The investigation relates to three non-profit organisations which authorities believe were fraudulently used to claim R66m in funds.
Matieni Community Centre is a defunct NPO which the SIU alleges was ‘fraudulently revived’ and used to apply for funding from the National Lottery Commission (NLC), the regulator of the South African National Lottery and distributor of good causes and charity funding generated by lottery ticket sales.
Two other NPOs, Lethabong Old Age Home and War against Rape and Abuse (WAR RNA) were also similarity misused. The SIU alleges that criminals had falsified documents relating to these charities to submit funding applications.
Investigators believe that R5.975m was subsequently transferred to the Mbidzo Development Programme, alongside R5m from WAR RNA and R15m from Lethabong Old Age Home. Mbidzo Development Programme is linked to an individual called Collin Tshisimba, who the SIU claims to have investigated previously.
The SIU’s statement reads: “Mbidzo, controlled by Mr. Tshisimba, channelled funds to attorneys for the purchase of the Louis Trichardt Farm, Limpopo, registered under Ms. Promise Kharivhe, Mr. Tshisimba’s life partner.
“The order of the Special Tribunal is part of implementing SIU investigation outcomes and consequence management to recover financial losses suffered by State institutions because of corruption or negligence.
“The order forms part of a broader investigation into corruption involving NLC grants intended for community development projects.”
The investigation comes amid wider scrutiny over lottery activity across South Africa against the backdrop of the NLC conducting the most recent tender for the next operator of the National Lottery.
Concerns have been raised throughout the tender process that the previous holder of the licence, Ithuba Holdings, accused of having close links with the government. The next eight year licence was ultimately awarded to Sizekhaya Holdings, though this decision still prompted some legal challenges.