Special Tribunal Orders Sports Complex Fraudsters to Repay R6 Million NLC Grant
- The Special Tribunal found that R6 million from a Soweto sports complex grant was diverted, with no construction ever taking place
- Judge Andre Petersen declared the entire 2021 NLC grant to Motheo Sports and Education Foundation unlawful and invalid
- Bank records revealed over R1.6 million was withdrawn via ATMs and teller cash-outs by individuals named in the ruling
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The Special Tribunal has ruled that several individuals, their companies and former National Lotteries Commission (NLC) officials must jointly repay R6 million that was siphoned from a grant intended to fund the construction of a sports complex in Soweto, along with the Special Investigating Unit's (SIU) legal costs.
According to News24, Judge Andre Petersen presided over the matter. The NLC had originally approved R9 million for the Motheo Sports and Education Foundation to develop the facility, but withheld the final R3 million tranche after it became clear that no building work had been carried out at the site.
Entire 2021 grant declared unlawful
The tribunal went further than simply recovering the disbursed funds, declaring the full 2021 grant unlawful and invalid. The award had been processed under the NLC's so-called "proactive funding" policy, a mechanism the tribunal identified as central to widespread financial misconduct within the organisation.
An examination of Motheo's bank records showed that three individuals named in the ruling, Mohlala, Sedibe and Matshazi, collectively authorised more than R1.6 million in withdrawals. These transactions included ATM withdrawals, teller cash-outs and purchases, spread across both tranches of the grant payment. Judge Petersen found no evidence that any portion of those funds was directed towards construction activity, and held the three jointly liable for the diversion.
Companies that received payments also held liable
Two firms that received money channelled through Motheo were similarly ordered to repay their portions. Synercon and 2MC Consulting, both of which were paid from the grant proceeds passed on by Motheo, were included in the repayment order.
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The case forms part of a broader SIU investigation into NLC grant irregularities, with the proactive funding mechanism repeatedly surfacing as a vehicle through which public money was misappropriated rather than directed to legitimate community projects.
Source: Briefly News
